LABOR LAW 1 (POST-MIDTERMS)
VELOSO
BOOK III: LABOR STANDARDS
TITLE I: WORKING CONDITIONS &
REST PERIODS
HOURS OF WORK
ART. 82. COVERAGE
The provisions of this Title shall apply to
employees in all establishments and undertakings
whether for profit or not, but not to government
employees, managerial employees, field personnel,
members of the family of the employer who are
dependent on him for support, domestic helpers,
persons in the personal service of another, and
workers who are paid by results as determined by
the Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to
those whose primary duty consists of the
management of the establishment in which they are
employed or of a department or subdivision
thereof, and to other officers or members of the
managerial staff.
"Field personnel" shall refer to non-agricultural
employees who regularly perform their duties
away from the principal place of business or branch
office of the employer and whose actual hours of
work in the field cannot be determined with
reasonable certainty.
Exempt:
Government employees
Managerial employees
Members of the employer’s family dependent
on him for support
Domestic Servants
Field personnel regularly performing duties
away from office
Managerial Employees
primary duty is management
customarily and regularly directing work of 2
or more employees
with authority to hire
suggestions given particular weight
include officers or members of the managerial
staff
Field Personnel
non agricultural employees who regularly
perform their duties away from the office and
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JUSTICE VICENTE S.E.
whose actual hours of work cannot be
estimated with certainty; this includes in its
scope “unsupervised employees” [Mercidar
Fishing Corporation v. NLRC, 297 SCRA 440
(1998)]
NOTES:
Field personnel exempt from coverage because
the actual time spent on work cannot be
determined with reasonable certainty.
Supervised employee cannot be considered as
field personnel.
Those paid by results, piece-work, pakyaw or task
basis – no longer under the same category as those
above (Labor Congress v. NLRC, 290 SCRA 509)
Benefits to which Piece-Rate Workers are entitled
to: (HANS MOTO)
Holiday Pay
Applicable Statutory Minimum Daily Rate
Night Differential Pay
Service Incentive Leave
Meal and Rest Periods
Overtime Pay
Thirteenth Month Pay
Other Benefits
NOTE: Coverage under Art. 82 refers only to the
benefits provided by Arts. 83 – 93.
ART. 83. NORMAL HOURS OF WORK.
The normal hours of work of any employee shall
not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a
population of at least one million (1,000,000) or in
hospitals and clinics with a 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,
exclusive of time for meals, except where the
exigencies of the service require that such personnel
work for six (6) days or forty-eight (48) hours, in
which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of
their regular wage for work on the sixth day. For
purposes of this Article, "health personnel" shall
include resident physicians, nurses, nutritionists,
dietitians, pharmacists, social workers, laboratory
technicians, paramedical technicians, psychologists,
midwives, attendants and all other hospital or clinic
personnel.
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LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

NOTES: Required to Kept w/in

Rationale: To safeguard the health and welfare remain on through cell

SUBJECT TO CALL
of the employee; also to minimize call in phones or other
unemployment employer’s contact devices
Parties can validly agree to 9 hours per day as premises or but must
the normal hours of work, but the employer close so that remain w/in a
must still give overtime pay for the extra 1 he cannot use certain
hour. the time geographical
If the agreed normal hours of work is 6 hours effectively for area
per day, work on the 7th hour entitles the his own
employee to overtime pay. purpose
Only employees paid on a daily basis are Subject to
entitled to 8-hour pay. serious
interruption

WORKING WHILE
ART. 84. HOURS WORKED. Takes place
Hours worked shall include (a) all time during

SLEEPING
under less
which an employee is required to be on duty or to desirable
be at a prescribed workplace; and (b) all time conditions
during which an employee is suffered or permitted than would
to work. be likely to
Rest periods of short duration during working exist at
hours shall be counted as hours worked. employee’s
home
ART. 85. MEAL PERIODS. Compensable Voluntary
Subject to such regulations as the Secretary of Labor
PROGRAMS,
TRAININGS,

Attendance
LECTURES,
MEETINGS
may prescribe, it shall be the duty of every Employee does
employer to give his employees not less than sixty not perform
(60) minutes time-off for their regular meals. any productive
work during
Compensable Hours: (DSWP) attendance
Employee has been on Duty Required by
Employee has been Suffered to work the employer
MEAL
TIME

Made to standby a particular Workplace Taken for the

Employee was Permitted to work employer’s
benefit
Meal Time
60 minutes and above: not counted as working ART. 87. OVERTIME WORK.
time Work may be performed beyond eight (8) hours a
Less than 60 minutes: counted as working time day provided that the employee is paid for the
• minimum 20 minutes overtime work, an additional compensation
equivalent to his regular wage plus at least twenty-
COUNTED AS EXCEPT five percent (25%) thereof. Work performed beyond
WORKING eight hours on a holiday or rest day shall be paid an
TIME IF additional compensation equivalent to the rate of
Integral part the first eight hours on a holiday or rest day plus at
WAITING

of work / least thirty percent (30%) thereof.

TIME

required
Engaged by ART. 88. UNDERTIME NOT OFFSET BY OVERTIME.
the employer Undertime work on any particular day shall not be
to wait offset by overtime work on any other day.
Permission given to the employee to go on leave on
some other day of the week shall not exempt the

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LABOR LAW 1 (POST-MIDTERMS)
employer from paying the additional compensation
required in this Chapter.
ART. 89. EMERGENCY OVERTIME WORK.
Any employee may be required by the employer to
perform overtime work in any of the following
cases:
(a) When the country is at war or when any other
national or local emergency has been declared by
the National Assembly or the Chief Executive;
(b) When it is necessary to prevent loss of life or
property or in case of imminent danger to public
safety due to an actual or impending emergency in
the locality caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster or
calamity;
(c) When there is urgent work to be performed on
machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or
some other cause of similar nature;
(d) When the work is necessary to prevent loss or
damage to perishable goods; and
(e) Where the completion or continuation of the
work started before the eighth hour is necessary to
prevent serious obstruction or prejudice to the
business or operations of the employer.
Any employee required to render overtime work
under this Article shall be paid the additional
compensation required in this Chapter.
ART. 90. COMPUTATION OF ADDITIONAL
COMPENSATION.
For purposes of computing overtime and other
additional remuneration as required by this
Chapter, the "regular wage" of an employee shall
include the cash wage only, without deduction on
account of facilities provided by the employer.
Overtime – work in excess of 8 hours
Premium rate for Overtime:
Normal 25% on top of hourly rate
Holiday/Rest Day 30%
Special Day 30%
GR: Overtime compensation cannot be waived
Exceptions:
When waiver is in consideration of benefits and
privileges which may be more than the OT pay
Voluntarily agrees to work 9 hours
No diminution in pay
Value of benefits equal to or greater than 1hr.
OT pay during weekdays
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JUSTICE VICENTE S.E. VELOSO
OT pay due and demandable even if permitted
to work Saturdays
Work doesn't involve strenuous physical
exertion
Temporary duration
Emergency OT Work allowed when:
1) Country at war/National or Local Emergency
2) Completion of work started before the 8th hour
and is necessary to prevent serious obstruction
or prejudice to the business
3) Urgent work to be performed on Machines to
avoid serious loss or damage to employer
4) Necessary to Prevent loss of life/property or
Imminent danger to public safety
5) Necessary to prevent loss or damage to
perishable goods
6) Necessary to avail of favorable weather or
environmental condition
In computing overtime pay, “regular wage”
includes cash wage only, without deduction of
facilities.
Q: Is a supervisor entitled to overtime pay? To
holiday pay?
A supervisor is part of the managerial staff and
therefore not entitled to overtime pay and other
benefits, as provided in Articles 83 to 96. (National
Sugar Refineries Corp. v. NLRC, 24 March 1993)
Undertime
The proper method should be to deduct the
undertime hours from the accrued leave but to pay
the employee the overtime compensation to which
he is entitled. Where the employee has exhausted
his leave credits, his undertime hours may simply
be deducted from his day’s wage, but he should
still be paid his overtime compensation for work in
excess of eight hours a day. (NWSA v. NWSA
Consolidated Union, 11 SCRA 766)
Computation of Work Days
Days in a year 365
Less: Saturdays (52)
Equals 313
Less: Sundays (52)
Equals 261
Add: 10 legal holidays 10
Total work days 271
Take note: Book III, Rule IV, Sec. 2 presumes that
you are working the whole year. Computes
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LABOR LAW 1 (POST-MIDTERMS)
monthly (365 / 12). So what happens is: 365 + 10 =
375 work days.
The SC nullified Sec. 2 in the IBAA case.
ART. 86. NIGHT SHIFT DIFFERENTIAL.
Every employee shall be paid a night shift
differential of not less than ten percent (10%) of his
regular wage for each hour of work performed
between ten o’clock in the evening and six o’clock
in the morning.
Night Shift Differential – work from 10pm-6am
At least 10% of regular wage
Does NOT apply to:
Government Employees
Retail Businesses with less than 5 workers
Domestic Helpers
Managerial Employees
Field Personnel
Rationale: Nighttime work cannot be considered
desirable for the employee or the employer. Social
life and family life are affected. There are also
health and safety considerations.
Overtime pay does NOT preclude payment of night
differential.
WEEKLY REST PERIODS
ART. 91. RIGHT TO WEEKLY REST DAY.
(a) It shall be the duty of every employer, whether
operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four
(24) consecutive hours after every six (6)
consecutive normal work days.
(b) The employer shall determine and schedule the
weekly rest day of his employees subject to
collective bargaining agreement and to such rules
and regulations as the Secretary of Labor and
Employment may provide. However, the employer
shall respect the preference of employees as to their
weekly rest day when such preference is based on
religious grounds.
ART. 92. WHEN EMPLOYER MAY REQUIRE WORK ON A
REST DAY.
The employer may require his employees to work
on any day:
(a) In case of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity
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JUSTICE VICENTE S.E. VELOSO
to prevent loss of life and property, or imminent
danger to public safety;
(b) In cases of urgent work to be performed on the
machinery, equipment, or installation, to avoid
serious loss which the employer would otherwise
suffer;
(c) In the event of abnormal pressure of work due
to special circumstances, where the employer
cannot ordinarily be expected to resort to other
measures;
(d) To prevent loss or damage to perishable goods;
(e) Where the nature of the work requires
continuous operations and the stoppage of work
may result in irreparable injury or loss to the
employer; and
(f) Under other circumstances analogous or similar
to the foregoing as determined by the Secretary of
Labor and Employment.
ART. 93. COMPENSATION FOR REST DAY, SUNDAY OR
HOLIDAY WORK.
(a) Where an employee is made or permitted to
work on his scheduled rest day, he shall be paid an
additional compensation of at least thirty percent
(30%) of his regular wage. An employee shall be
entitled to such additional compensation for work
performed on Sunday only when it is his
established rest day.
(b) When the nature of the work of the employee is
such that he has no regular workdays and no
regular rest days can be scheduled, he shall be paid
an additional compensation of at least thirty
percent (30%) of his regular wage for work
performed on Sundays and holidays.
(c) Work performed on any special holiday shall be
paid an additional compensation of at least thirty
percent (30%) of the regular wage of the employee.
Where such holiday work falls on the employee’s
scheduled rest day, he shall be entitled to an
additional compensation of at least fifty per cent
(50%) of his regular wage.
(d) Where the collective bargaining agreement or
other applicable employment contract stipulates the
payment of a higher premium pay than that
prescribed under this Article, the employer shall
pay such higher rate.
Premium Pay For Work On Rest Days / Special
Days
Rest Day - 30%
Special Day - 30% (Aug. 21, Nov.1 & Dec. 31)
Rest Day falls on Special Day - 50%
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LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

For special day: NO WORK, NO PAY Retail and Service Establishments regularly
employing less than 10
Authorized Work on a Rest Day allowed when: Domestic helpers
(UAAP NA) Managerial employees
Urgent work to be performed on machinery Field Personnel
Actual impending emergency Hourly Paid Faculty Members
Abnormal pressure or work
Prevent loss/damage to perishable goods Q: May a Christian not report for work on the
Nature of work requires continuous operations days designated by law as Muslim holidays?
Analogous situations What about a Muslim who is not working within
the Muslim area?
HOLIDAYS, SERVICE INCENTIVE LEAVES
Yes. Presidential Decree No. 1083 provides that
AND SERVICE CHARGES
Muslims and Christians working within the
ART. 94. RIGHT TO HOLIDAY PAY.
Muslim areas may not report for work on the days
(a) Every worker shall be paid his regular daily
designated by law as Muslim holidays.
wage during regular holidays, except in retail and
The law also provides that Muslim employees
service establishments regularly employing less
working outside the Muslim provinces and cities
than ten (10) workers;
shall be excused from reporting for work during the
(b) The employer may require an employee to work
observance of the Muslim holidays as recognized
on any holiday but such employee shall be paid a
by law, without diminution of salary or wages
compensation equivalent to twice his regular rate;
during the period.
and
(c) As used in this Article, "holiday" includes: New
Special holidays apply to all covered employees
Year’s Day, Maundy Thursday, Good Friday, the
within the area
ninth of April, the first of May, the twelfth of June,
San Miguel Corporation v. CA, G.R. No.
the fourth of July, the thirtieth of November, the
146775, January 30, 2002
twenty-fifth and thirtieth of December and the day
There should be no distinction between
designated by law for holding a general election.
Muslims and non-Muslims as regards payment
of benefits for Muslim holidays. Considering
Holiday Pay
that all private corporations, offices, agencies,
Unworked 100%
and entities or establishments operating within
Worked 200%
the designated Muslim provinces and cities are
- if also Rest day 230%
required to observe Muslim holidays, both
Muslim and Christians working within the
To avail of Holiday pay, employee should not have
Muslim areas may not report for work on the
been absent without pay on the working day
days designated by law as Muslim holidays.
preceding the holiday.
Q: What is the rule in successive regular holidays?
Legal/Regular Holidays:
Where there are two successive regular holidays, an
1. New Year's Day - January 1
employee may not be paid for both holidays if he
2. Maundy Thursday
absents himself from work on the day immediately
3. Good Friday
preceding the first holiday, unless he works on the
4. Araw ng Kagitingan - April 9
first holiday, in which case, he is entitled to his
5. Labor Day - May 1
holiday pay on the second holiday.
6. Independence Day - June 12
7. National Heroes Day - Last Sun of August
Asian Transmission Corp. v. CA, G.R. No. 144664,
8. Bonifacio Day - November 30 March 15, 2004
9. Christmas Day - December 25 Holiday pay is a legislated benefit. Its purpose
10. Rizal Day - December 30 is not merely to prevent diminution of the
monthly income of the workers on account of
Does NOT apply to: work interruptions. Although the worker is
Government employees forced to take a rest, he earns what he should

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LABOR LAW 1 (POST-MIDTERMS)
earn. It is also intended to enable the worker to
participate in the national celebrations held
during the days identified as with great
historical and cultural significance.
Art. 94 of the Labor Code affords a worker the
enjoyment of 10 paid regular holidays. The
provision is mandatory, regardless of whether
an employee is paid on a monthly or daily
basis. Unlike a bonus, which is a management
prerogative, holiday pay is a statutory benefit
demandable under the law.
Since a worker is entitled to the enjoyment of
ten paid regular holidays, the fact that two
holidays fall on the same date should not
operate to reduce to nine the ten holiday pay
benefits a worker is entitled to receive.
ART. 95. RIGHT TO SERVICE INCENTIVE LEAVE.
(a) Every employee who has rendered at least one
year of service shall be entitled to a yearly service
incentive leave of five days with pay.
(b) This provision shall not apply to those who are
already enjoying the benefit herein provided, those
enjoying vacation leave with pay of at least five
days and those employed in establishments
regularly employing less than ten employees or in
establishments exempted from granting this benefit
by the Secretary of Labor and Employment after
considering the viability or financial condition of
such establishment.
(c) The grant of benefit in excess of that provided
herein shall not be made a subject of arbitration or
any court or administrative action.
Service Incentive Leave
has worked for at least a year
5 days with pay
commutable to its money equivalent if it’s not
used or exhausted at the end of the year
Does NOT apply to: (GADAM FEW)
Government employees
Already enjoying benefit
Domestic Helpers and those in the personal
service of another
Already with vacation leave with pay of at least
5 days
Managerial Employees
Field Employees including those in Contract
basis
Employed in establishments regularly
employing less than 10 employees
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JUSTICE VICENTE S.E. VELOSO
Works in establishments exempted from
granting this benefit by the DOLE Secretary
considering the viability or financial condition
of such establishment.
Q: When does an employee’s claim for
accumulated service incentive leave prescribe?
If the employee wishes to accumulate his leave
credits and opts for its commutation upon his
resignation or separation from employment, his
cause of action to claim the whole amount of his
accumulated service incentive leave shall arise
when the employer fails to pay such amount at the
time of his resignation or separation from
employment.
Applying Art. 291 of the Labor Code in light of this
peculiarity of the service incentive leave, the 3-year
prescriptive period commences, not at the end of
the year when the employee becomes entitled to the
commutation of his service incentive leave, but
from the time when the employer refuses to pay its
monetary equivalent after demand of commutation
or upon termination of the employee’s services, as
the case may be. (Auto Bus Transport Systems, Inc. vs.
Antonio Bautista, 16 May 2005)
Auto Bus Transport Systems v. Bautista, G.R. No.
156367, May 16, 2005
The grant of service incentive leave has been
delimited by the Implementing Rules and
Regulations of the Labor Code to apply only to
those employees not explicitly excluded by
Section 1 of Rule V. According to the
Implementing Rules, Service Incentive Leave
shall not apply to employees classified as “field
personnel.”
The phrase “other employees whose
performance is unsupervised by the employer”
must not be understood as a separate
classification of employees to which service
incentive leave shall not be granted. Rather, it
serves as an amplification of the definition of
field personnel under the Labor Code as those
“whose actual hours of work in the field cannot
be determined with reasonable certainty.”
Employees engaged on task or contract basis or
paid on purely commission basis are not
automatically exempted from the grant of
service incentive leave, unless, they fall under
the classification of field personnel.
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LABOR LAW 1 (POST-MIDTERMS)
JPL Marketing Promotions v. CA, G.R. No. 151966,
July 8, 2005
Service incentive leave, as provided in Art. 95
of the Labor Code, is a yearly leave benefit of
five (5) days with pay, enjoyed by an employee
who has rendered at least one year of service.
Unless specifically excepted, all establishments
are required to grant service incentive leave to
their employees. The term “at least one year of
service” shall mean service within 12 months,
whether continuous or broken reckoned from
the date the employee started working.
VACATION/SICK LEAVE - not required by law,
but must be observed when stipulated in a CBA
BONUS – amount granted and paid to an
employee for his industry and loyalty, which
contributed to the success of the employer’s
business and made possible the realization of
profits.
GR : Act of Gratuity on the part of Employer; Can't
be demanded
Exceptions:
1. Given for a long period of time
2. Consistent & deliberate
3. Employer knew he was not required to give
benefit
4. Employer realizes profits – depends if nature of
benefit is dependent on profit
Producers Bank Of The Philippines v. NLRC, G.R. No.
100701, March 28, 2001
A bonus is an amount granted and paid to an
employee for his industry and loyalty which
contributed to the success of the employer's
business and made possible the realization of
profits. It is an act of generosity granted by an
enlightened employer to spur the employee to
greater efforts for the success of the business
and realization of bigger profits. The granting
of a bonus is a management prerogative,
something given in addition to what is
ordinarily received by or strictly due the
recipient. Thus, a bonus is not a demandable
and enforceable obligation except when it is
made part of the wage, salary or compensation
of the employee However, an employer cannot
be forced to distribute bonuses which it can no
longer afford to pay. To hold otherwise would
be to penalize the employer for his past
generosity.
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
To impose upon an employer already giving
his employees the equivalent of a 13th month
pay would be to penalize him for his liberality
and in all probability, the employer would react
by withdrawing the bonuses or resist further
voluntary grants for fear that if and when a law
is passed giving the same benefits, his prior
concessions might not be given due credit.
ART. 96. SERVICE CHARGES.
All service charges collected by hotels, restaurants
and similar establishments shall be distributed at
the rate of eighty-five percent (85%) for all covered
employees and fifteen percent (15%) for
management. The share of the employees shall be
equally distributed among them. In case the service
charge is abolished, the share of the covered
employees shall be considered integrated in their
wages.
85% to Covered Employees – equally
distributed among them, regardless of position or
employment status
15% to Management – may answer for the losses
and breakages, or may be distributed to managers.
How about the supervisors?
Supervisors share in the 15%. LC speaks of
“management,” and not “managerial employees.”
If the establishment does not impose service charge,
it is deemed integrated into the wages.
TITLE II: WAGES
PRELIMINARY MATTERS
ART. 97. DEFINITIONS.
As used in this Title:
(a) "Person" means an individual, partnership,
association, corporation, business trust, legal
representatives, or any organized group of persons.
(b) "Employer" includes any person acting directly
or indirectly in the interest of an employer in
relation to an employee and shall include the
government and all its branches, subdivisions and
instrumentalities, all government-owned or
controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
(c) "Employee" includes any individual employed
by an employer.
(d) "Agriculture" includes farming in all its
branches and, among other things, includes
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LABOR LAW 1 (POST-MIDTERMS)
cultivation and tillage of soil, dairying, the
production, cultivation, growing and harvesting of
any agricultural and horticultural commodities, the
raising of livestock or poultry, and any practices
performed by a farmer on a farm as an incident to
or in conjunction with such farming operations, but
does not include the manufacturing or processing
of sugar, coconuts, abaca, tobacco, pineapples or
other farm products.
(e) "Employ" includes to suffer or permit to work.
(f) "Wage" paid to any employee shall mean the
remuneration or earnings, however designated,
capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, piece,
or commission basis, or other method of calculating
the same, which is payable by an employer to an
employee under a written or unwritten contract of
employment for work done or to be done, or for
services rendered or to be rendered and includes
the fair and reasonable value, as determined by the
Secretary of Labor and Employment, of board,
lodging, or other facilities customarily furnished by
the employer to the employee. "Fair and reasonable
value" shall not include any profit to the employer,
or to any person affiliated with the employer.
ART. 98. APPLICATION OF TITLE.
This Title shall not apply to farm tenancy or
leasehold, domestic service and persons working in
their respective homes in needle work or in any
cottage industry duly registered in accordance with
law.
Wages
All kinds of remuneration
Commissions are considered wage (so in
determining EER, look at control)
Wages vs. Salaries
Wages – indicates considerable pay for a lower and
less responsible character of employment
Salaries – denotes a higher degree of employment,
or a superior grade of services and implies a
position or office
Why is it important to distinguish between salary
and wage?
Wage cannot be attached, while salaries can be
attached.
Facilities vs. Supplements
Supplements constitute extra remuneration or
special privileges or benefits given to or received by
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JUSTICE VICENTE S.E. VELOSO
the laborers over and above their ordinary earnings
or wages. (NOT WAGE DEDUCTIBLE)
Facilities, on the other hand, are items of expense
necessary for the laborer’s and his family’s
existence and subsistence, so that by express
provision of law, they form part of the wage and
when furnished by the employer are deductible
therefrom, since if not so furnished, the laborer
would spend and pay for them just the same.
(WAGE DEDUCTIBLE)
The benefit or privilege given to the employee
which constitutes extra remuneration over and
above his basic or ordinary earning or wage, is
supplement; and when said benefit or privilege is
part of the laborer’s basic wages, it is a facility.
Tests:
For the benefit of employee – facility
For the benefit of employer – supplement
Q: Can the employer immediately deduct the
value of facilities from employee’s wages?
NO. An employer must observe certain legal
requirements before deducting the value of
facilities from the employee’s wages. These
requirements are:
a. Proof must be shown that such facilities are
customarily furnished by the trade;
b. The provision of deductible facilities must be
voluntarily accepted in writing by the
employee; and
c. Facilities must be charged at a fair and
reasonable value.
This Title shall NOT apply to:
Farm tenancy or leasehold
Domestic service (including drivers)
Persons working in their respective homes in
needle work or in any cottage industry duly
registered
Workers in a duly registered cooperative
Abante v. Lamadrid Bearing & Parts Co., G.R. No.
159890, May 28, 2004
Under the control test, an employer-employee
relationship exists where the person for whom
the services are performed reserves the right to
control not only the end achieved, but also the
manner and means to be used in reaching that
end.
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LABOR LAW 1 (POST-MIDTERMS)
There could be no employer-employee
relationship where the element of control is
absent. Where a person who works for another
does so more or less at his own pleasure and is
not subject to definite hours or conditions of
work, and in turn is compensated according to
the result of his efforts and not the amount
thereof, no relationship of employer-employee
exists.
While the term “commission” under Article 97
of the Labor Code was construed as being
included in the definition of the term “wage”
available to employees, there is no categorical
pronouncement that the payment of
compensation on commission basis is
conclusive proof of the existence of an
employer-employee relationship. After all,
commission, as a form of remuneration, may be
availed of by both an employee or a non-
employee.
R Transport v. Ejandra, G.R. No. 148508, May 20, 2004
The fact that petitioner paid private respondent
on commission basis did not rule out the
presence of an employee-employer
relationship. Article 97(f) of the Labor Code
clearly provides that an employee’s wages can
be in the form of commissions.
MINIMUM WAGE RATES
ART. 99. REGIONAL MINIMUM WAGES.
The minimum wage rates for agricultural and non-
agricultural employees and workers in each and
every region of the country shall be those
prescribed by the Regional Tripartite Wages and
Productivity Boards. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989).
ART. 100. PROHIBITION AGAINST ELIMINATION OR
DIMINUTION OF BENEFITS.
Nothing in this Book shall be construed to eliminate
or in any way diminish supplements, or other
employee benefits being enjoyed at the time of
promulgation of this Code.
ART. 101. PAYMENT BY RESULTS.
The Secretary of Labor and Employment shall
regulate the payment of wages by results, including
pakyao, piecework, and other non-time work, in
order to ensure the payment of fair and reasonable
wage rates, preferably through time and motion
studies or in consultation with representatives of
workers’ and employers’ organizations.
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
Workers whose calculated pay is based not on the
amount of time spent, but on the quantity and
quality of the kind of work they do are paid by
results. They must still get minimum wage.
Q: In including non-basic benefits in the
computation of 13th month pay for 3 years, can the
employer plead mistake and reduce its
employees’ 13th month pay?
NO. This may be construed as a voluntary act on
the part of the employer. The latter cannot shift the
blame on its payroll personnel. A company practice
favorable to the employees had been established
and the payments made pursuant thereto, ripened
into benefits enjoyed by them. And any benefit
being enjoyed by the employees cannot be reduced,
diminished, discontinued or eliminated by the
employer, by virtue of Art. 100 of the Labor Code.
Mayon Hotel & Restaurant v. Adana, G.R. No. 157634,
May 16, 2005
The cost of meals and snacks purportedly
provided to respondents cannot be deducted as
part of respondents’ minimum wage.
Even granting that meals and snacks were
provided and indeed constituted facilities, such
facilities could not be deducted without
compliance with certain legal requirements.
The employer simply cannot deduct the value
from the employee's wages without satisfying
the following: (a) proof that such facilities are
customarily furnished by the trade; (b) the
provision of deductible facilities is voluntarily
accepted in writing by the employee; and (c)
the facilities are charged at fair and reasonable
value.
Food or snacks or other convenience provided
by the employers are deemed as supplements if
they are granted for the convenience of the
employer. The criterion in making a distinction
between a supplement and a facility does not so
much lie in the kind (food, lodging) but the
purpose.
C. Planas Commercial v. NLRC, G.R. No. 121696,
February 11, 1999
Retail/service establishments regularly
employing not more than 10 workers may be
exempted from the applicability of RA 6727
(Wage Rationalization Act) upon application
with and as determined by the appropriate
Regional Board in accordance with the
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LABOR LAW 1 (POST-MIDTERMS)
applicable rules and regulations issued by the
Commission.
Whenever an application for exemption has
been duly filed with the appropriate Regional
Board, action on any complaint for alleged non-
compliance with RA 6727 shall be deferred
pending resolution of the application for
exemption by the appropriate Regional Board.
In the event that applications for exemptions
are not granted, employees shall receive the
appropriate compensation due them as
provided for by this Act plus interest of one
percent (1%) per month retroactive to the
effectivity of the Act.
PAYMENT OF WAGES
ART. 102. FORMS OF PAYMENT.
No employer shall pay the wages of an employee
by means of promissory notes, vouchers, coupons,
tokens, tickets, chits, or any object other than legal
tender, even when expressly requested by the
employee.
Payment of wages by check or money order shall be
allowed when such manner of payment is
customary on the date of effectivity of this Code, or
is necessary because of special circumstances as
specified in appropriate regulations to be issued by
the Secretary of Labor and Employment or as
stipulated in a collective bargaining agreement.
Cash wage compared to Art. 97(f) which states
that facilities are part of wages. (Facilities are
not legal tender.) The law means that the
cash component of the wage be paid in legal
tender and not anything else.
Legal tender combined with some other form of
payment (like groceries) is violative of the LC.
The only instance where an employer can pay
wages in forms other than legal tender is by
checks or money order only when the
circumstances in the 2nd par. of Art. 102 are
present. (Congson v. NLRC)
ART. 103. TIME OF PAYMENT.
Wages shall be paid at least once every two (2)
weeks or twice a month at intervals not exceeding
sixteen (16) days. If on account of force majeure or
circumstances beyond the employer’s control,
payment of wages on or within the time herein
provided cannot be made, the employer shall pay
the wages immediately after such force majeure or
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
circumstances have ceased. No employer shall
make payment with less frequency than once a
month.
The payment of wages of employees engaged to
perform a task which cannot be completed in two
(2) weeks shall be subject to the following
conditions, in the absence of a collective bargaining
agreement or arbitration award:
(1) That payments are made at intervals not
exceeding sixteen (16) days, in proportion to the
amount of work completed;
(2) That final settlement is made upon completion
of the work.
ART. 104. PLACE OF PAYMENT.
Payment of wages shall be made at or near the
place of undertaking, except as otherwise provided
by such regulations as the Secretary of Labor and
Employment may prescribe under conditions to
ensure greater protection of wages.
Place of Payment
GR: It is not the employee’s responsibility to leave
his workplace in order to get his wages. Such
payment must be near or at the place of the
business.
Exceptions:
Free transportation provided by employer
There is deterioration of the peace and order
conditions in the workplace due to actual or
impending emergencies
Other analogous causes, but the time spent by
the employee in collecting his wages is
considered compensable time
ART. 105. DIRECT PAYMENT OF WAGES.
Wages shall be paid directly to the workers to
whom they are due, except:
(a) In cases of force majeure rendering such
payment impossible or under other special
circumstances to be determined by the Secretary of
Labor and Employment in appropriate regulations,
in which case, the worker may be paid through
another person under written authority given by
the worker for the purpose; or
(b) Where the worker has died, in which case, the
employer may pay the wages of the deceased
worker to the heirs of the latter without the
necessity of intestate proceedings. The claimants, if
they are all of age, shall execute an affidavit
attesting to their relationship to the deceased and
the fact that they are his heirs, to the exclusion of all
10
LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

other persons. If any of the heirs is a minor, the

affidavit shall be executed on his behalf by his
natural guardian or next-of-kin. The affidavit shall
be presented to the employer who shall make
payment through the Secretary of Labor and
Employment or his representative. The
representative of the Secretary of Labor and
Employment shall act as referee in dividing the
amount paid among the heirs. The payment of
wages under this Article shall absolve the employer
of any further liability with respect to the amount
paid.

ART. 106. CONTRACTOR OR SUBCONTRACTOR.

Whenever an employer enters into a contract with
another person for the performance of the former’s
work, the employees of the contractor and of the
latter’s subcontractor, if any, shall be paid in
accordance with the provisions of this Code.

In the event that the contractor or subcontractor

fails to pay the wages of his employees in
accordance with this Code, the employer shall be
jointly and severally liable with his contractor or
subcontractor to such employees to the extent of the
work performed under the contract, in the same
manner and extent that he is liable to employees Please see notes on Job Contracting and Labor-only
directly employed by him. Contracting in the midterms reviewer.

The Secretary of Labor and Employment may, by
appropriate regulations, restrict or prohibit the
contracting-out of labor to protect the rights of
workers established under this Code. In so
prohibiting or restricting, he may make appropriate
distinctions between labor-only contracting and job
contracting as well as differentiations within these
types of contracting and determine who among the
parties involved shall be considered the employer
for purposes of this Code, to prevent any violation
or circumvention of any provision of this Code.
There is "labor-only" contracting where the person
supplying workers to an employer does not have
substantial capital or investment in the form of
tools, equipment, machineries, work premises,
among others, and the workers recruited and
placed by such person are performing activities
which are directly related to the principal business
of such employer. In such cases, the person or
intermediary shall be considered merely as an
agent of the employer who shall be responsible to
the workers in the same manner and extent as if the
latter were directly employed by him.
Art. 109 applies to wages only; it is not
applicable to claims other than wages like
damages resulting from illegal dismissal.
The performance bond required in Art. 108 is
really for the contractor’s own protection due to
his potential solidary liability.
Meralco v. Benamira, G.R. No. 145271, July 14, 2005
The individual respondents can not be
considered as regular employees of the
MERALCO for, although security services are
necessary and desirable to the business of
MERALCO, it is not directly related to its
principal business and may even be considered
unnecessary in the conduct of MERALCO’s
principal business, which is the distribution of
electricity.
Manila Water District v. Pena, G.R. No. 158255, July 8,
2004
“Labor-only contracting” as defined in Section
5, Department Order No. 18-02, Rules
Implementing Articles 106-109 of the Labor Code
refers to an arrangement where the contractor

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LABOR LAW 1 (POST-MIDTERMS)
or subcontractor merely recruits, supplies or
places workers to perform job, work or service
for a principal. The fact that AGCI was not an
independent contractor is buttressed by the fact
that ACGI does not have substantial
capitalization or investment in the form of
tools, equipment, machineries, work premises,
and other materials, to qualify as an
independent contractor. While it has an
authorized capital stock of P1,000,000.00, only
P62,500.00 is actually paid-in, which cannot be
considered substantial capitalization.
Under this factual milieu, there is no doubt that
ACGI was engaged in labor-only contracting,
and as such, is considered merely an agent of
the petitioner. In labor-only contracting, the
statute creates an employer-employee
relationship for a comprehensive purpose: to
prevent a circumvention of labor laws. The
contractor is considered merely an agent of the
principal employer and the latter is responsible
to the employees of the labor-only contractor as
if such employees had been directly employed
by the principal employer.
ART. 110. WORKER PREFERENCE IN CASE OF
BANKRUPTCY.
In the event of bankruptcy or liquidation of an
employer’s business, his workers shall enjoy first
preference as regards their wages and other
monetary claims, any provisions of law to the
contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims
of the government and other creditors may be paid.
(As amended by Section 1, Republic Act No. 6715,
March 21, 1989).
The intent of the law is to place workers’ claims
above all other claims, including gov’t claims.
There should be a bankruptcy proceeding for
Art. 110 to apply. (as opposed to a
rehabilitation where the receiver takes hold of
the assets of the company for it to gain profit
and answer for company’s liabilities)
Barayoga v. Asset Privatization Trust, G.R. No. 160073,
October 24, 2005
This Court has ruled in a long line of cases that
under Articles 2241 and 2242 of the Civil Code,
a mortgage credit is a special preferred credit
that enjoys preference with respect to a
specific/determinate property of the debtor.
On the other hand, the worker’s preference
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
under Article 110 of the Labor Code is an
ordinary preferred credit.
While this provision raises the worker’s money
claim to first priority in the order of preference
established under Article 2244 of the Civil
Code, the claim has no preference over special
preferred credits. The right of employees to be
paid benefits due them from the properties of
their employer cannot have any preference over
the latter’s mortgage credit.
ART. 111. ATTORNEY’S FEES.
(a) In cases of unlawful withholding of wages, the
culpable party may be assessed attorney’s fees
equivalent to ten percent of the amount of wages
recovered.
(b) It shall be unlawful for any person to demand or
accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s
fees which exceed ten percent of the amount of
wages recovered.
Par. (a) – culpable party may be assessed
instead of the client
Par. (b) – 10% is the maximum; where no
attorney’s fees are awarded, employee will pay
(I think that’s why there’s a cap.)
Philippine Military Veterans Security and Investigation
Agency v. CA, G.R. No. 139159, January 31, 2006;
Premiere Development Bank v. Mantal, G.R. No.
167716, March 23, 2006
It is settled that in actions for recovery of wages
or where an employee was forced to litigate
and incur expenses to protect his rights and
interest, he is entitled to an award of attorney’s
fees.
San Miguel Corporation, v. Aballa, G.R. No. 149011,
June 28, 2005
With respect to attorney’s fees, in actions for
recovery of wages or where an employee was
forced to litigate and thus incurred expenses to
protect his rights and interests, a maximum of
ten percent (10%) of the total monetary award
by way of attorney’s fees is justifiable under
Article 111 of the Labor Code, Section 8, Rule
VIII, Book III of its Implementing Rules, and
paragraph 7, Article 2208 of the Civil Code.
Although an express finding of facts and law is
still necessary to prove the merit of the award,
there need not be any showing that the
employer acted maliciously or in bad faith
12
LABOR LAW 1 (POST-MIDTERMS)
when it withheld the wages. There need only
be a showing that the lawful wages were not
paid accordingly, as in this case.
Micro Sales Operation Network v. NLRC, G.R. No.
155279, October 11, 2005
The award of attorneys’ fees, though not prayed
for, is sanctioned by law and must be upheld.
PROHIBITIONS REGARDING WAGES
ART. 112. NON-INTERFERENCE IN DISPOSAL OF
WAGES.
No employer shall limit or otherwise interfere with
the freedom of any employee to dispose of his
wages. He shall not in any manner force, compel, or
oblige his employees to purchase merchandise,
commodities or other property from any other
person, or otherwise make use of any store or
services of such employer or any other person.
ART. 113. WAGE DEDUCTION.
No employer, in his own behalf or in behalf of any
person, shall make any deduction from the wages
of his employees, except:
(a) In cases where the worker is insured with his
consent by the employer, and the deduction is to
recompense the employer for the amount paid by
him as premium on the insurance;
(b) For union dues, in cases where the right of the
worker or his union to check-off has been
recognized by the employer or authorized in
writing by the individual worker concerned; and
(c) In cases where the employer is authorized by
law or regulations issued by the Secretary of Labor
and Employment.
ART. 114. DEPOSITS FOR LOSS OR DAMAGE.
No employer shall require his worker to make
deposits from which deductions shall be made for
the reimbursement of loss of or damage to tools,
materials, or equipment supplied by the employer,
except when the employer is engaged in such
trades, occupations or business where the practice
of making deductions or requiring deposits is a
recognized one, or is necessary or desirable as
determined by the Secretary of Labor and
Employment in appropriate rules and regulations.
ART. 115. LIMITATIONS.
No deduction from the deposits of an employee for
the actual amount of the loss or damage shall be
made unless the employee has been heard thereon,
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
and his responsibility has been clearly shown.
ART. 116. WITHHOLDING OF WAGES AND KICKBACKS
PROHIBITED.
It shall be unlawful for any person, directly or
indirectly, to withhold any amount from the wages
of a worker or induce him to give up any part of his
wages by force, stealth, intimidation, threat or by
any other means whatsoever without the worker’s
consent.
ART. 117. DEDUCTION TO ENSURE EMPLOYMENT.
It shall be unlawful to make any deduction from the
wages of any employee for the benefit of the
employer or his representative or intermediary as
consideration of a promise of employment or
retention in employment.
ART. 118. RETALIATORY MEASURES.
It shall be unlawful for an employer to refuse to pay
or reduce the wages and benefits, discharge or in
any manner discriminate against any employee
who has filed any complaint or instituted any
proceeding under this Title or has testified or is
about to testify in such proceedings.
ART. 119. FALSE REPORTING.
It shall be unlawful for any person to make any
statement, report, or record filed or kept pursuant
to the provisions of this Code knowing such
statement, report or record to be false in any
material respect.
Q: When is wage deduction by the employer on
the wages of the employee allowed?
As a general rule, no employer shall make any
deduction from the wages of his employees, except:
In cases where the worker is insured with his
consent by the employer, and the deduction is to
recompense the employer for the amount paid by
him as premium on the insurance;
For union dues, in cases where the right of the
worker or his union to check-off has been
recognized by the employer or authorized in
writing by the individual worker concerned; and
In cases where the employer is authorized by law
or regulations issued by the Secretary of Labor.
WAGE STUDIES, WAGE AGREEMENTS AND
WAGE DETERMINATION
ART. 120. CREATION OF NATIONAL WAGES AND
PRODUCTIVITY COMMISSION.
13
LABOR LAW 1 (POST-MIDTERMS)
There is hereby created a National Wages and
Productivity Commission, hereinafter referred to as
the Commission, which shall be attached to the
Department of Labor and Employment (DOLE) for
policy and program coordination. (As amended by
Republic Act No. 6727, June 9, 1989).
ART. 121. POWERS AND FUNCTIONS OF THE
COMMISSION.
The Commission shall have the following powers
and functions:
(a) To act as the national consultative and advisory
body to the President of the Philippines and
Congress on matters relating to wages, incomes and
productivity;
(b) To formulate policies and guidelines on wages,
incomes and productivity improvement at the
enterprise, industry and national levels;
(c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and
productivity measures at the regional, provincial,
or industry levels;
(d) To review regional wage levels set by the
Regional Tripartite Wages and Productivity Boards
to determine if these are in accordance with
prescribed guidelines and national development
plans;
(e) To undertake studies, researches and surveys
necessary for the attainment of its functions and
objectives, and to collect and compile data and
periodically disseminate information on wages and
productivity and other related information,
including, but not limited to, employment, cost-of-
living, labor costs, investments and returns;
(f) To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to
determine whether these are consistent with
national development plans;
(g) To exercise technical and administrative
supervision over the Regional Tripartite Wages and
Productivity Boards;
(h) To call, from time to time, a national tripartite
conference of representatives of government,
workers and employers for the consideration of
measures to promote wage rationalization and
productivity; and
(i) To exercise such powers and functions as may be
necessary to implement this Act.
The Commission shall be composed of the Secretary
of Labor and Employment as ex-officio chairman,
the Director-General of the National Economic and
Development Authority (NEDA) as ex-officio vice-
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
chairman, and two (2) members each from workers’
and employers’ sectors who shall be appointed by
the President of the Philippines upon
recommendation of the Secretary of Labor and
Employment to be made on the basis of the list of
nominees submitted by the workers’ and
employers’ sectors, respectively, and who shall
serve for a term of five (5) years. The Executive
Director of the Commission shall also be a member
of the Commission.
The Commission shall be assisted by a Secretariat to
be headed by an Executive Director and two (2)
Deputy Directors, who shall be appointed by the
President of the Philippines, upon the
recommendation of the Secretary of Labor and
Employment.
The Executive Director shall have the same rank,
salary, benefits and other emoluments as that of a
Department Assistant Secretary, while the Deputy
Directors shall have the same rank, salary, benefits
and other emoluments as that of a Bureau Director.
The members of the Commission representing labor
and management shall have the same rank,
emoluments, allowances and other benefits as those
prescribed by law for labor and management
representatives in the Employees’ Compensation
Commission. (As amended by Republic Act No.
6727, June 9, 1989).
ART. 122. CREATION OF REGIONAL TRIPARTITE
WAGES AND PRODUCTIVITY BOARDS.
There is hereby created Regional Tripartite Wages
and Productivity Boards, hereinafter referred to as
Regional Boards, in all regions, including
autonomous regions as may be established by law.
The Commission shall determine the
offices/headquarters of the respective Regional
Boards.
The Regional Boards shall have the following
powers and functions in their respective territorial
jurisdictions:
(a) To develop plans, programs and projects
relative to wages, incomes and productivity
improvement for their respective regions;
(b) To determine and fix minimum wage rates
applicable in their regions, provinces or industries
therein and to issue the corresponding wage orders,
subject to guidelines issued by the Commission;
(c) To undertake studies, researches, and surveys
necessary for the attainment of their functions,
14
LABOR LAW 1 (POST-MIDTERMS)
objectives and programs, and to collect and compile
data on wages, incomes, productivity and other
related information and periodically disseminate
the same;
(d) To coordinate with the other Regional Boards as
may be necessary to attain the policy and intention
of this Code;
(e) To receive, process and act on applications for
exemption from prescribed wage rates as may be
provided by law or any Wage Order; and
(f) To exercise such other powers and functions as
may be necessary to carry out their mandate under
this Code.
Implementation of the plans, programs, and
projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be
through the respective regional offices of the
Department of Labor and Employment within their
territorial jurisdiction; Provided, however, That the
Regional Boards shall have technical supervision
over the regional office of the Department of Labor
and Employment with respect to the
implementation of said plans, programs and
projects.
Each Regional Board shall be composed of the
Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of
the National Economic and Development Authority
and the Department of Trade and Industry as vice-
chairmen and two (2) members each from workers’
and employers’ sectors who shall be appointed by
the President of the Philippines, upon the
recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of
nominees submitted by the workers’ and
employers’ sectors, respectively, and who shall
serve for a term of five (5) years.
Each Regional Board to be headed by its chairman
shall be assisted by a Secretariat. (As amended by
Republic Act No. 6727, June 9, 1989).
Composition of the Commission
DOLE Secretary – Chair (ex officio)
Director-General of NEDA – Vice Chair (ex officio)
2 members from employers sector
2 members from workers sector
assisted by a Secretariat, headed by an Executive
Director and 2 Deputy Directors
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
Composition of the Wage Boards
DOLE Regional Director – Chair
Regional Director of NEDA and DTI – Vice Chairs
2 members from employers sector
2 members from workers sector
ART. 123. WAGE ORDER.
Whenever conditions in the region so warrant, the
Regional Board shall investigate and study all
pertinent facts; and based on the standards and
criteria herein prescribed, shall proceed to
determine whether a Wage Order should be issued.
Any such Wage Order shall take effect after fifteen
(15) days from its complete publication in at least
one (1) newspaper of general circulation in the
region.
In the performance of its wage-determining
functions, the Regional Board shall conduct public
hearings/consultations, giving notices to
employees’ and employers’ groups, provincial, city
and municipal officials and other interested parties.
Any party aggrieved by the Wage Order issued by
the Regional Board may appeal such order to the
Commission within 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).
Appeal of Wage Order
Appeal to the National Wages & Productivity
Commission (NWPC)
Within 10 days from the publication of the
order
Appeal DOES NOT stay the order, UNLESS the
person appealing files an undertaking with
surety for payment to employees affected by
the order of the corresponding increase, if it is
affirmed
Wage Creditability
15
LABOR LAW 1 (POST-MIDTERMS)
Wage increase agreed upon in a CBA can be
considered as compliance in the increase
mandated by a Wage Order
GR: Allowed
E: if it calls for an anniversary wage increase
E to E: if anniversary wage increase is allowed
in the CBA
Example:
Wage Order 302 – Php 25 increase
CBA provides for the following increases:
1st year – Php 50
2nd year – Php 50
3rd year – Php 30
Wage Order 303 – Php 25 increase
Here, the Php 50 increase in the CBA for the 1st year
is deemed as compliance with the subsequent wage
order.
However, this is not creditable because there is an
anniversary increase. But if the CBA allows the
anniversary increase, then it is creditable.
Q: Consider an independent contractor. If a Wage
Order mandates an increase by the principal, who
should the worker sue in case of non-compliance?
The worker must sue the contractor, and implead
the principal as co-respondent.
Remedies for non-compliance with Wage Order
Art. 128 – routine inspection
Art. 129 – file monetary claim with DOLE
Regional Director (claim not exceeding P5T)
Art. 217(a)(3) or (6) – Labor Arbiter
Double Indemnity
Non-compliance with a wage order is punishable
by a fine or imprisonment AND the employer must
pay the amount double the unpaid benefits.
Q: In sum, when is the employer required to pay
higher than minimum wage?
Wage Order (123)
CBA (125 / 155)
Voluntary Arbitration Award (261 / 262)
Compuldary Arbitration Award [263(g)]
Company Practice or Policy
Productivity Incentives Program (RA 6971)
NOTE: To be a company practice, an act must be
deliberate, consistent, voluntary, and the employer
must have given it aware that the employees were
not entitled to the benefit under existing laws.
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JUSTICE VICENTE S.E. VELOSO
ART. 124. STANDARDS/CRITERIA FOR MINIMUM
WAGE FIXING.
The regional minimum wages to be established by
the Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum
standards of living necessary for the health,
efficiency and general well-being of the employees
within the framework of the national economic and
social development program. In the determination
of such regional minimum wages, the Regional
Board shall, among other relevant factors, consider
the following:
(a) The demand for living wages;
(b) Wage adjustment vis-à-vis the consumer price
index;
(c) The cost of living and changes or increases
therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the
countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity
to pay of employers;
(i) Effects on employment generation and family
income; and
(j) The equitable distribution of income and wealth
along the imperatives of economic and social
development.
The wages prescribed in accordance with the
provisions of this Title shall be the standard
prevailing minimum wages in every region. These
wages shall include wages varying with industries,
provinces or localities if in the judgment of the
Regional Board, conditions make such local
differentiation proper and necessary to effectuate
the purpose of this Title.
Any person, company, corporation, partnership or
any other entity engaged in business shall file and
register annually with the appropriate Regional
Board, Commission and the National Statistics
Office, an itemized listing of their labor component,
specifying the names of their workers and
employees below the managerial level, including
learners, apprentices and disabled/handicapped
workers who were hired under the terms
prescribed in the employment contracts, and their
corresponding salaries and wages.
16
LABOR LAW 1 (POST-MIDTERMS)
Where the application of any prescribed wage
increase by virtue of a law or wage order issued by
any Regional Board results in distortions of the
wage structure within an establishment, the
employer and the union shall negotiate to correct
the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance
procedure under their collective bargaining
agreement and, if it remains unresolved, through
voluntary arbitration. Unless otherwise agreed by
the parties in writing, such dispute shall be decided
by the voluntary arbitrators within ten (10) calendar
days from the time said dispute was referred to
voluntary arbitration.
In cases where there are no collective agreements or
recognized labor unions, the employers and
workers shall endeavor to correct such distortions.
Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation
Board and, if it remains unresolved after ten (10)
calendar days of conciliation, shall be referred to
the appropriate branch of the National Labor
Relations Commission (NLRC). It shall be
mandatory for the NLRC to conduct continuous
hearings and decide the dispute within twenty (20)
calendar days from the time said dispute is
submitted for compulsory arbitration.
The pendency of a dispute arising from a wage
distortion shall not in any way delay the
applicability of any increase in prescribed wage
rates pursuant to the provisions of law or wage
order.
As used herein, a wage distortion shall mean a
situation where an increase in prescribed wage
rates results in the elimination or severe contraction
of intentional quantitative differences in wage or
salary rates between and among employee groups
in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation.
All workers paid by result, including those who are
paid on piecework, takay, pakyaw or task basis,
shall receive not less than the prescribed wage rates
per eight (8) hours of work a day, or a proportion
thereof for working less than eight (8) hours.
All recognized learnership and apprenticeship
agreements shall be considered automatically
modified insofar as their wage clauses are
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
concerned to reflect the prescribed wage rates. (As
amended by Republic Act No. 6727, June 9, 1989).
Wage Distortions
An increase in the prescribed wage rates, which
results in the elimination or severe contraction of
intentional quantitative differences in wage or
salary rates between and among employee groups
in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiations.
Procedure for correcting:
1. Organized establishment
- grievance procedure
- voluntary arbitration (decide w/in 10
days from referral)
2. Unorganized establishment
- Employer and workers will try to correct
the distortion
- NCMB (10 calendar days – conciliation if
unresolved)
- NLRC (decide w/in 20 days from
submission)
Bankard Employees Union v. NLRC, G.R. No. 140689,
February 17, 2004
Article 124 should be construed and correlated
in relation to minimum wage fixing, the
intention of the law being that in the event of
an increase in minimum wage, the distinctions
embodied in the wage structure based on skills,
length of service, or other logical bases of
differentiation will be preserved.
If the compulsory mandate under Article 124 to
correct “wage distortion” is applied to
voluntary and unilateral increases by the
employer in fixing hiring rates which is
inherently a business judgment prerogative,
then the hands of the employer would be
completely tied even in cases where an increase
in wages of a particular group is justified due to
a re-evaluation of the high productivity of a
particular group, or as in the present case, the
need to increase the competitiveness of
Bankard’s hiring rate. An employer would be
discouraged from adjusting the salary rates of a
particular group of employees for fear that it
would result to a demand by all employees for
a similar increase, especially if the financial
conditions of the business cannot address an
across-the-board increase.
17
LABOR LAW 1 (POST-MIDTERMS)
Wage distortion is a factual and economic
condition that may be brought about by
different causes. The mere factual existence of
wage distortion does not, however, ipso facto
result to an obligation to rectify it, absent a law
or other source of obligation which requires its
rectification. Unlike in Metro Transit then where
there existed a “company practice,” no such
management practice is herein alleged to
obligate Bankard to provide an across-the-
board increase to all its regular employees.
Mindanao Steel Corporation, v. Minsteel Free Workers
Organization, G.R. No. 130693, March 4, 2004
In this case, Section 3, Article VII of the CBA of
the Minsteel Free Workers Organization
provides: “It is hereby agreed that these salary
increases shall be exclusive of any wage
increase that may be provided by law as a
result of any economic change.”
The above provision is clear that the salary
increases, such as the P20.00 provided under
the CBA, shall not include any wage increase
that may be provided by law as a result of any
economic change. Hence, aside from the P20.00
CBA wage increase, respondent’s members are
also entitled to the ECOLA under the Interim
Wage Order. Thus, the P20.00 daily wage
increase can not be considered as a creditable
benefit or compliance with the Interim wage
Order.
ART. 125. FREEDOM TO BARGAIN.
No wage order shall be construed to prevent
workers in particular firms or enterprises or
industries from bargaining for higher wages with
their respective employers. (As amended by
Republic Act No. 6727, June 9, 1989).
Rationale: Law only sets the minimum
Wage Order vs. CBA
A wage order is an administrative issuance
which proceeds from a statute (RA 6727).
A CBA is not an ordinary contract. It can be
entered into only by an exclusive bargaining
unit / agent.
The wage order sets the minimum; better
benefits under the CBA entitles the employees
to the latter.
ART. 126. PROHIBITION AGAINST INJUNCTION.
No preliminary or permanent injunction or
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
temporary restraining order may be issued by any
court, tribunal or other entity against any
proceedings before the Commission or the Regional
Boards. (As amended by Republic Act No. 6727,
June 9, 1989).
ART. 127. NON-DIMINUTION OF BENEFITS.
No wage order issued by any regional board shall
provide for wage rates lower than the statutory
minimum wage rates prescribed by Congress. (As
amended by Republic Act No. 6727, June 9, 1989).
Can a Wage Board decrease a prevailing minimum
wage in a region?
YES. The “statutory minimum wage rate” referred
to in Art. 127 is that which was set during the time
when Congress was still the one which determines
minimum wage (i.e. before RA 6727).
ADMINISTRATION AND ENFORCEMENT
ART. 128. VISITORIAL AND ENFORCEMENT POWER.
(a) The Secretary of Labor and Employment or his
duly authorized representatives, including labor
regulation officers, shall have access to employer’s
records and premises at any time of the day or
night whenever work is being undertaken therein,
and the right to copy therefrom, to question any
employee and investigate any fact, condition or
matter which may be necessary to determine
violations or which may aid in the enforcement of
this Code and of any labor law, wage order or rules
and regulations issued pursuant thereto.
(b) Notwithstanding the provisions of Articles 129
and 217 of this Code to the contrary, and in cases
where the relationship of employer-employee still
exists, the Secretary of Labor and Employment or
his duly authorized representatives shall have the
power to issue compliance orders to give effect to
the labor standards provisions of this Code and
other labor legislation based on the findings of
labor employment and enforcement officers or
industrial safety engineers made in the course of
inspection. The Secretary or his duly authorized
representatives shall issue writs of execution to the
appropriate authority for the enforcement of their
orders, except in cases where the employer contests
the findings of the labor employment and
enforcement officer and raises issues supported by
documentary proofs which were not considered in
the course of inspection. (As amended by Republic
Act No. 7730, June 2, 1994).
18
LABOR LAW 1 (POST-MIDTERMS)
An order issued by the duly authorized
representative of the Secretary of Labor and
Employment under this Article may be appealed to
the latter. In case said order involves a monetary
award, an appeal by the employer may be perfected
only upon the posting of a cash or surety bond
issued by a reputable bonding company duly
accredited by the Secretary of Labor and
Employment in the amount equivalent to the
monetary award in the order appealed from. (As
amended by Republic Act No. 7730, June 2, 1994).
(c) The Secretary of Labor and Employment may
likewise order stoppage of work or suspension of
operations of any unit or department of an
establishment when non-compliance with the law
or implementing rules and regulations poses grave
and imminent danger to the health and safety of
workers in the workplace. Within twenty-four
hours, a hearing shall be conducted to determine
whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In
case the violation is attributable to the fault of the
employer, he shall pay the employees concerned
their salaries or wages during the period of such
stoppage of work or suspension of operation.
(d) It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives
issued pursuant to the authority granted under this
Article, and no inferior court or entity shall issue
temporary or permanent injunction or restraining
order or otherwise assume jurisdiction over any
case involving the enforcement orders issued in
accordance with this Article.
(e) Any government employee found guilty of
violation of, or abuse of authority, under this
Article shall, after appropriate administrative
investigation, be subject to summary dismissal from
the service.
(f) The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep
and maintain such employment records as may be
necessary in aid of his visitorial and enforcement
powers under this Code.
ART. 129. RECOVERY OF WAGES, SIMPLE MONEY
CLAIMS AND OTHER BENEFITS.
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
Upon complaint of any interested party, the
Regional Director of the Department of Labor and
Employment or any of the duly authorized hearing
officers of the Department is empowered, through
summary proceeding and after due notice, to hear
and decide any matter involving the recovery of
wages and other monetary claims and benefits,
including legal interest, owing to an employee or
person employed in domestic or household service
or househelper under this Code, arising from
employer-employee relations: Provided, That such
complaint does not include a claim for
reinstatement: Provided further, That the aggregate
money claims of each employee or househelper
does not exceed Five thousand pesos (P5,000.00).
The Regional Director or hearing officer shall
decide or resolve the complaint within thirty (30)
calendar days from the date of the filing of the
same. Any sum thus recovered on behalf of any
employee or househelper pursuant to this Article
shall be held in a special deposit account by, and
shall be paid on order of, the Secretary of Labor and
Employment or the Regional Director directly to
the employee or househelper concerned. Any such
sum not paid to the employee or househelper
because he cannot be located after diligent and
reasonable effort to locate him within a period of
three (3) years, shall be held as a special fund of the
Department of Labor and Employment to be used
exclusively for the amelioration and benefit of
workers.
Any decision or resolution of the Regional Director
or hearing officer pursuant to this provision may be
appealed on the same grounds provided in Article
223 of this Code, within five (5) calendar days from
receipt of a copy of said decision or resolution, to
the National Labor Relations Commission which
shall resolve the appeal within ten (10) calendar
days from the submission of the last pleading
required or allowed under its rules.
The Secretary of Labor and Employment or his duly
authorized representative may supervise the
payment of unpaid wages and other monetary
claims and benefits, including legal interest, found
owing to any employee or househelper under this
Code. (As amended by Section 2, Republic Act No.
6715, March 21, 1989).
Visitorial and Enforcement Power
19
LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

Secretary of Labor or duly authorized Claimant: Employee or person in domestic or

representative:
1. Access to employer's records and premises
2. Right to copy records
3. Right to question any employee
4. Investigate any fact, condition or matter which
may be necessary to determine violations, or
which may be necessary to aid in enforcement
of this code or any labor law or order.
5. Order and administer, after due notice and
hearing, compliance with the Labor Standards
provisions
6. Issue writs of execution to the appropriate
authority for enforcement of their orders
7. Order stoppage of work or suspension of
operations when non-compliance with law and
implementing regulations poses grave and
imminent danger to the health and safety of
workers in the workplace (only Secretary of
Labor has this power)
Hearing within 24 hours
Employer liable for salaries during suspension of
operations if found to have caused the
violation
NO TRO or Temporary/Permanent injunction may
be issued by an inferior court over any case
involving the enforcement orders issued
VISITORIAL & RECOVERY OF WAGES
ENFORCEMENT UNDER ARTICLE 129
POWER UNDER
ARTICLE 128
household service, Provided:
1. No claim for reinstatement
2. Aggregate claims of each employee or
househelper does not exceed P5,000
if the claim later exceeds P5,000, Regional
Director still retains jurisdiction based on
inspection's findings in the nature of
enforcement action – [Guico v. Secretary of
Labor 298 SCRA 666 (1998)]
3. Claims arise from EER
Notice and Hearing
Resolution of Complaint within 30 days from filing
(Appeal within 5 calendar days to NLRC)
NLRC to resolve appeal within 10 calendar days
from submission of last pleading
Not Included: Claims for Employee's
Compensation, Social Security benefits, Medicare
Benefits and Maternity Benefits
Regional Director cannot enforce results of
Visitorial Power when:
1. Employer contests the findings
2. Issues raised requires examination of
evidentiary matters
3. Such matters are not verifiable in the normal
course of inspection
Art. 128 Art. 129 Art. 217(a)
Orig: DOLE Original, Original,
Jurisdictional

Secretary Exclusive: Exclusive:

Authority

• Offshoot of inspection • Initiated by sworn Delegated DOLE Labor

complaints Authority: Regional Arbiter
• Labor legislation in • Limits proceedings to DOLE Director
general monetary claims Regional
which involve any Director
labor None Should not (3) – 5T and
• Inspection of • Adjudication through exceed Php below with
Amount Involved

establishments & the summary proceedings 5,000 claim for

issuance of order to after notice and reinst.
compel compliance hearing of employee’s (6) – beyond
with labor standards, claims for wages & 5T,
wage orders & other benefits regardless
labor law regulations of claim for
reinst.
RECOVERY of Wages, Simple Money Claims & Routine Complaint Adjudicatio
Nature

Other Benefits Inspection – Inspection – n

Jurisdiction: DOLE Regional Director (Summary normally done upon
Proceeding) done complaint

Ryan Quan 3C ’06-’07 20

LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

No EER no EER exists have been recognized as acceptable are (a)

dismissal longer exists and there is counsel’s reliance on the footnote of the notice
EER

yet. (EER but no claim a claim for of the decision of the Labor Arbiter that “the
exists) for reinst. reinst. aggrieved party may appeal …within ten (10)
working days;” (b) fundamental consideration
DOLE NLRC – NLRC – of substantial justice; (c) prevention of
Appeal

Secretary Art. 159 Art. 223 miscarriage of justice or of unjust enrichment,

(found in as where the tardy appeal is from a decision
Rules) granting separation pay which was already
Jurisdiction Not Necessary granted in an earlier final decision; and (d)
special circumstances of the case combined
Appeal

ally required to perfect an

Bond

required appeal (Art. with its legal merits or the amount and the
223) issue involved. A one-day delay in the
perfection of the appeal was excused in Pacific
Within 10 5 days 10 days Asia Overseas Shipping Corp. v. NLRC, Insular
Period to
Appeal

calendar (Art. 223) Life Assurance Co. v. NLRC, and City Fair
days (Rules) Corp. v. NLRC.

TITLE III: WORKING CONDITIONS FOR

Cirineo Bowling Plaza v. Sensing, G.R. No. 146572,
January 14, 2005
While it is true that under Articles 129 and 217
of the Labor Code, the Labor Arbiter has
jurisdiction to hear and decide cases where the
aggregate money claims of each employee
exceeds P5,000.00, said provisions of law do not
contemplate nor cover the visitorial and
enforcement powers of the Secretary of Labor
or his duly authorized representatives. Rather,
said powers are defined and set forth in Article
128 of the Labor Code (as amended by R.A. No.
7730).
The said provision explicitly excludes from its
coverage Articles 129 and 217 of the Labor
Code by the phrase “(N)otwithstanding the
provisions of Articles 129 and 217 of this Code
to the contrary . . .” thereby retaining and
further strengthening the power of the
Secretary of Labor or his duly authorized
representative to issue compliance orders to
give effect to the labor standards provisions of
said Code and other labor legislation based on
the findings of labor employment and
enforcement officers or industrial safety
engineers made in the course of inspection.
Southech Development Corp. v. NLRC, G.R. No.
149590, January 12, 2005
This Court has given imprimatur to the NLRC’s
disregard of procedural lapse in filing a belated
appeal where there is an “acceptable reason” to
excuse the tardiness. Among the reasons which
SPECIAL GROUPS OF EMPLOYEES
EMPLOYMENT OF WOMEN
ART. 130. NIGHTWORK PROHIBITION.
No woman, regardless of age, shall be employed or
permitted or suffered to work, with or without
compensation:
(a) In any industrial undertaking or branch thereof
between ten o’clock at night and six o’clock in the
morning of the following day; or
(b) In any commercial or non-industrial
undertaking or branch thereof, other than
agricultural, between midnight and six o’clock in
the morning of the following day; or
(c) In any agricultural undertaking at nighttime
unless she is given a period of rest of not less than
nine (9) consecutive hours.
ART. 131. EXCEPTIONS.
The prohibitions prescribed by the preceding
Article shall not apply in any of the following cases:
(a) In cases of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disasters or calamity,
to prevent loss of life or property, or in cases of
force majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on
machineries, equipment or installation, to avoid
serious loss which the employer would otherwise
suffer;
(c) Where the work is necessary to prevent serious
loss of perishable goods;
(d) Where the woman employee holds a responsible

Ryan Quan 3C ’06-’07 21

LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

position of managerial or technical nature, or where NOTES:

the woman employee has been engaged to provide In nightwork prohibition, consider the nature
health and welfare services; of the employee’s work; not the nature of the
(e) Where the nature of the work requires the business undertaking.
manual skill and dexterity of women workers and Ex: working in a fertilizer company (industrial)
the same cannot be performed with equal efficiency doing clerical work (commercial) in this case,
by male workers; the employee can work until 12mn
(f) Where the women employees are immediate Tiya Dely has a radio show in the graveyard
members of the family operating the establishment shift – can be considered technical because of
or undertaking; and the switches and gadgets that she must know
(g) Under other analogous cases exempted by the
Secretary of Labor and Employment in appropriate ART. 132. FACILITIES FOR WOMEN.
regulations. The Secretary of Labor and Employment shall
establish standards that will ensure the safety and
Nightwork Prohibition health of women employees. In appropriate cases,
a. Industrial 10pm-6am he shall, by regulations, require any employer to:
Undertaking (a) Provide seats proper for women and permit
b. Commercial or Non- 12am-6am them to use such seats when they are free from
industrial, or branch work and during working hours, provided they can
thereof, other than perform their duties in this position without
agricultural detriment to efficiency;
c. Agricultural Nighttime, unless given (b) To establish separate toilet rooms and lavatories
Undertaking a period of rest not for men and women and provide at least a dressing
less than 9 consecutive room for women;
hours (c) To establish a nursery in a workplace for the
benefit of the women employees therein; and
Exceptions: (d) To determine appropriate minimum age and
1. Actual or impending emergencies to prevent other standards for retirement or termination in
loss of life/property or force majeure or special occupations such as those of flight
imminent danger to public safety attendants and the like.
2. Urgent work to be performed to avoid serious
loss to employer Facilities for Women
3. Necessary to prevent serious loss of perishable a. Provide seats proper for women
goods b. Establish separate toilet rooms and lavatories
4. Holds a responsible position of managerial or and provide at least a dressing room for
technical nature or engaged to provide health women
or welfare service c. Establish a nursery in a workplace for the
5. Nature of work requires the manual skill and benefit of the women employees
dexterity of women workers and the same d. Determine appropriate minimum age and other
cannot be performed with equal efficiency by standards for retirement and termination in
male workers special cases
6. Immediate members of the family operating the
establishment or undertaking Why are there seats for women?
7. Other analogous cases To prevent varicose veins (accdg. to Veloso)

(FUNPEHM – Family members, urgent work;
necessary work; peculiarity of work; emergencies;
health and welfare employees; managerial
employees)
ART. 133. MATERNITY LEAVE BENEFITS.
(a) Every employer shall grant to any pregnant
woman employee who has rendered an aggregate
service of at least six (6) months for the last twelve
(12) months, maternity leave of at least two (2)
weeks prior to the expected date of delivery and
another four (4) weeks after normal delivery or
abortion with full pay based on her regular or

Ryan Quan 3C ’06-’07 22

LABOR LAW 1 (POST-MIDTERMS)
average weekly wages. The employer may require
from any woman employee applying for maternity
leave the production of a medical certificate stating
that delivery will probably take place within two
weeks.
(b) The maternity leave shall be extended without
pay on account of illness medically certified to arise
out of the pregnancy, delivery, abortion or
miscarriage, which renders the woman unfit for
work, unless she has earned unused leave credits
from which such 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.
Maternity Leave Benefits
Has paid at least 3 monthly contributions in the
12-mo. period immediately preceding the
semester of her childbirth or miscarriage
Paid only for the first 4 deliveries or
miscarriages
100% of average salary credit for 60 days if
normal or 78 days if caesarean
Woman employee may be married or
unmarried
Paternity Leave (RA 8187) – male employee entitled
to paternity leave of 7 calendar days with full pay
for the first 4 deliveries of the legitimate spouse
with whom he is cohabiting
ART. 134. FAMILY PLANNING SERVICES; INCENTIVES
FOR FAMILY PLANNING.
(a) Establishments which are required by law to
maintain a clinic or infirmary shall provide free
family planning services to their employees which
shall include, but not be limited to, the application
or use of contraceptive pills and intrauterine
devices.
(b) In coordination with other agencies of the
government engaged in the promotion of family
planning, the Department of Labor and
Employment shall develop and prescribe incentive
bonus schemes to encourage family planning
among female workers in any establishment or
enterprise.
Family Planning Services, Incentives For Family
Planning
Maintain clinic or infirmary which shall
provide for family planning service
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
Develop and prescribe incentive bonus schemes
to encourage family planning among female
workers in any establishment/enterprise
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.
The following are acts of discrimination:
(a) Payment of a lesser compensation, including
wage, salary or other form of remuneration and
fringe benefits, to a female employees as against a
male employee, for work of equal value; and
(b) Favoring a male employee over a female
employee with respect to promotion, training
opportunities, study and scholarship grants solely
on account of their sexes.
Criminal liability for the willful commission of any
unlawful act as provided in this Article or any
violation of the rules and 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 filing an entirely separate and
distinct action for money claims, which may
include claims for damages and other affirmative
reliefs. The actions hereby authorized shall proceed
independently of each other. (As amended by
Republic Act No. 6725, May 12, 1989).
ART. 136. STIPULATION AGAINST MARRIAGE.
It shall be unlawful for an employer to require as a
condition of employment or continuation of
employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that
upon getting married, a woman employee shall be
deemed resigned or separated, or to actually
dismiss, discharge, discriminate or otherwise
prejudice a woman employee merely by reason of
her marriage.
ART. 137. PROHIBITED ACTS.
(a) It shall be unlawful for any employer:
(1) To deny any woman employee the benefits
provided for in this Chapter or to discharge any
woman employed by him for the purpose of
preventing her from enjoying any of the benefits
provided under this Code.
(2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement due
to her pregnancy;
23
LABOR LAW 1 (POST-MIDTERMS)
(3) To discharge or refuse the admission of such
woman upon returning to her work for fear that she
may again be pregnant.
Discrimination Prohibited
Acts of Discrimination:
Payment of lesser compensation for work of
equal value
Favoring over promotion, training
opportunities, study and scholarship grants
solely on account of their sexes
Institution of any criminal action under this shall
not bar the aggrieved employee from filing an
entirely separate and distinct action for money
claims, which may include claims for damages and
other affirmative relief
Actions authorized shall proceed independently of
each other
Void Stipulations Against Marriage
Either as a condition for employment (pre) or
for continuing employment (post)
Prohibited Acts
Deny benefits or discharge any woman
employed to avoid giving benefits
Discharge such a woman on account of her
pregnancy or while on leave or in confinement
due to her pregnancy
Discharge or refuse the admission of such
woman upon returning to her work for fear she
may again be pregnant
Rationale: to prevent discrimination of women in
terms of employment
(MEMORIZE Art. 135, 136, 137)
ART. 138. CLASSIFICATION OF CERTAIN WOMEN
WORKERS.
Any woman who is permitted or suffered to work,
with or without compensation, in any night club,
cocktail lounge, massage clinic, bar or similar
establishments under the effective control or
supervision of the employer for a substantial period
of time as determined by the Secretary of Labor and
Employment, shall be considered as an employee of
such establishment for purposes of labor and social
legislation.
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
EMPLOYMENT OF MINORS
ART. 139. MINIMUM EMPLOYABLE AGE.
(a) No child below fifteen (15) years of age shall be
employed, except when he works directly under the
sole responsibility of his parents or guardian, and
his employment does not in any way interfere with
his schooling.
(b) Any person between fifteen (15) and eighteen
(18) years of age may be employed for such number
of hours and such periods of the day as determined
by the Secretary of Labor and Employment in
appropriate regulations.
(c) The foregoing provisions shall in no case allow
the employment of a person below eighteen (18)
years of age in an undertaking which is hazardous
or deleterious in nature as determined by the
Secretary of Labor and Employment.
ART. 140. PROHIBITION AGAINST CHILD
DISCRIMINATION.
No employer shall discriminate against any person
in respect to terms and conditions of employment
on account of his age.
Minimum Employable Age
Below Shall not be employed, except:
15 1)
Years - when working under under the sole
responsibility of his parents or guardian,
and
- where only members of the employer’s
family are employed and
- his employment does not endanger his
life, safety, health and morals, nor impair
his normal development, and
- the parent or legal guardian shall
provide said minor with the prescribed
primary and/or secondary education
2)
- child’s employment in public and
entertainment or information through
cinema, theater or radio or television is
essential,
- PROVIDED employment contract is
concluded by child’s parents or guardian
with express agreement of child and
DOLE if possible AND employer ensures
child’s protection, health,
safety and morals (RA 7610)
15- In undertakings which are NOT
below hazardous or deleterious
18
24
LABOR LAW 1 (POST-MIDTERMS)
18 No prohibition
Years
Hazardous or Deleterious:
exposes workers to dangerous environmental
elements, contaminations, or work conditions
including ionizing radiations, chemicals, fire,
flammable substances, noxious components
and the like
engaged in construction work, logging, fire-
fighting, mining, quarrying, blasting,
stevedoring, dock work, deep-sea fishing and
mechanized farming
engaged in the manufacture or handling of
explosives and other pyrotechnic products
exposed to or use of heavy or power-driven
machinery or equipment
use or are exposed to power-driven tools
EMPLOYMENT OF HOUSEHELPERS
ART. 141. COVERAGE.
This Chapter shall apply to all persons rendering
services in households for compensation.
"Domestic or household service" shall mean service
in the employer’s home which is usually necessary
or desirable for the maintenance and enjoyment
thereof and includes ministering to the personal
comfort and convenience of the members of the
employer’s household, including services of family
drivers.
ART. 142. CONTRACT OF DOMESTIC SERVICE.
The original contract of domestic service shall not
last for more than two (2) years but it may be
renewed for such periods as may be agreed upon
by the parties.
ART. 143. MINIMUM WAGE.
(a) Househelpers shall be paid the following
minimum wage rates:
(1) Eight hundred pesos (P800.00) a month for
househelpers in Manila, Quezon, Pasay, and
Caloocan cities and municipalities of Makati, San
Juan, Mandaluyong, Muntinlupa, Navotas,
Malabon, Parañaque, Las Piñas, Pasig, Marikina,
Valenzuela, Taguig and Pateros in Metro Manila
and in highly urbanized cities;
(2) Six hundred fifty pesos (P650.00) a month for
those in other chartered cities and first-class
municipalities; and
(3) Five hundred fifty pesos (P550.00) a month for
those in other municipalities.
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
Provided, That the employers shall review the
employment contracts of their househelpers every
three (3) years with the end in view of improving
the terms and conditions thereof.
Provided, further, That those househelpers who are
receiving at least One thousand pesos (P1,000.00)
shall be covered by the Social Security System (SSS)
and be entitled to all the benefits provided
thereunder. (As amended by Republic Act No.
7655, August 19, 1993).
ART. 144. MINIMUM CASH WAGE.
The minimum wage rates prescribed under this
Chapter shall be the basic cash wages which shall
be paid to the househelpers in addition to lodging,
food and medical attendance.
ART. 145. ASSIGNMENT TO NON-HOUSEHOLD WORK.
No househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at
a wage or salary rate lower than that provided for
agricultural or non-agricultural workers as
prescribed herein.
ART. 146. OPPORTUNITY FOR EDUCATION.
If the househelper is under the age of eighteen (18)
years, the employer shall give him or her an
opportunity for at least elementary education. The
cost of education shall be part of the househelper’s
compensation, unless there is a stipulation to the
contrary.
ART. 147. TREATMENT OF HOUSEHELPERS.
The employer shall treat the househelper in a just
and humane manner. In no case shall physical
violence be used upon the househelper.
ART. 148. BOARD, LODGING, AND MEDICAL
ATTENDANCE.
The employer shall furnish the househelper, free of
charge, suitable and sanitary living quarters as well
as adequate food and medical attendance.
ART. 149. INDEMNITY FOR UNJUST TERMINATION OF
SERVICES.
If the period of household service is fixed, neither
the employer nor the househelper may terminate
the contract before the expiration of the term,
except for a just cause. If the househelper is unjustly
dismissed, he or she shall be paid the compensation
already earned plus that for fifteen (15) days by
way of indemnity.
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LABOR LAW 1 (POST-MIDTERMS)
If the househelper leaves without justifiable reason,
he or she shall forfeit any unpaid salary due him or
her not exceeding fifteen (15) days.
ART. 150. SERVICE OF TERMINATION NOTICE.
If the duration of the household service is not
determined either in stipulation or by the nature of
the service, the employer or the househelper may
give notice to put an end to the relationship five (5)
days before the intended termination of the service.
ART. 151. EMPLOYMENT CERTIFICATION.
Upon the severance of the household service
relation, the employer shall give the househelper a
written statement of the nature and duration of the
service and his or her efficiency and conduct as
househelper.
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.
Househelper – engaged in the employer's home,
whose services are usually or desirable for the
maintenance and enjoyment thereof, and ministers
exclusively to the personal comfort and enjoyment
of the employer's family
Original Contract not more than 2 years but
may be renewed
If assigned to work in a commercial, industrial
or agricultural enterprise, must not be paid
lower than agricultural or non-agricultural
workers
If under 18 years of age, must be given
opportunity to finish at least elementary
schooling - cost of education shall be part of
compensation, unless stipulated otherwise
Treated in a just and humane manner; no
physical violence
Free : Sanitary and suitable living quarters
Adequate food
Medical attendance
(Veloso: What is adequate? no hard and fast
rule; common sense would tell you what is
right and wrong)
Indemnity for unjust termination if there is a
Fixed Period of Service
Compensation already earned + 15 days
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
If no fixed period, notice of termination must be
given at least 5 days prior
Domestic helper is not one who works for a staff
house / rest house; the criteria is that the helper
administers to the comfort of the family of the
employer in the home of said employer. [Apex
Mining Company,Inc. v. NLRC 196 SCRA 251 (1991)]
EMPLOYMENT OF HOMEWORKERS
ART. 153. REGULATION OF INDUSTRIAL
HOMEWORKERS.
The employment of industrial homeworkers and
field personnel shall be regulated by the
government through the appropriate regulations
issued by the Secretary of Labor and Employment
to ensure the general welfare and protection of
homeworkers and field personnel and the
industries employing them.
ART. 154. REGULATIONS OF SECRETARY OF LABOR.
The regulations or orders to be issued pursuant to
this Chapter shall be designed to assure the
minimum terms and conditions of employment
applicable to the industrial homeworkers or field
personnel involved.
ART. 155. DISTRIBUTION OF HOMEWORK.
For purposes of this Chapter, the "employer" of
homeworkers includes any person, natural or
artificial who, for his account or benefit, or on
behalf of any person residing outside the country,
directly or indirectly, or through an employee,
agent contractor, sub-contractor or any other
person:
(1) Delivers, or causes to be delivered, any goods,
articles or materials to be processed or fabricated in
or about a home and thereafter to be returned or to
be disposed of or distributed in accordance with his
directions; or
(2) Sells any goods, articles or materials to be
processed or fabricated in or about a home and then
rebuys them after such processing or fabrication,
either by himself or through some other person.
D.O. 5 (1992)
Applies to any person who performs industrial
homework for an employer, contractor or sub-
contractor.
26
LABOR LAW 1 (POST-MIDTERMS)
Industrial Homeworker
System of production under which work for an
employer or contractor is carried out by a
homeworker at his / her home. Materials may or
may not be furnished by the employer or
contractor.
Employer of a Homeworker
any person who delivers or causes to be
delivered any goods, articles or materials to be
processed or fabricated in or about a home and
thereafter to be returned or to be disposed of or
distributed in accordance with his direction; or
sells goods, articles for the purpose of having
such goods or articles processed in or about a
home and then repurchases them himself or
through another after such processing
NOTES:
Regulation under Art. 154 must be that would
make the homeworker receive the statutory
minimum wage for 8 hours of work.
For instance, it is illegal for an employer to pay
a homeworker P 50 for 10 pieces of materials
done in 8 hours of work.
The employment of homeworkers is one of the
exceptions to the four-fold test in determining
EER. There is no control since the employer
only supplies the materials and rebuys them.
But the law considers them as employees.
Q: Considering that a homeworker is not being
hired and cannot be fire, why is he considered an
employee?
A homeworker is considered an employee for him
to be entitled to the benefits accorded by the law.
Omnibus Implementing Rules provide:
Book III, Rule XIV, Sec. 6 – entitled to SSS,
MEDICARE, ECC benefits (employer required to
make such contributions)
Book III, Rule XIV, Sec. 4 – homeworkers have the
right to self-organization
PRESIDENTIAL DECREE NO. 851: REQUIRING
ALL EMPLOYERS TO PAY THEIR EMPLOYEES A
13TH-MONTH PAY
13th Month Pay
Demandable as a legal obligation
In the nature of wages, not bonuses
Provided by law
Not computed as additional benefits
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
Who are entitled?
1) All Rank & File employees who worked at least
1 month
2) Those with Multiple Employers (includes gov’t
employees with part time work in a private
company)
3) Paid by Result
4) Private School Teachers regardless of the
number of months taught
5) Resigned or Separated employees
(proportional)
NOT entitled:
1) Gov’t. employees
2) Household helpers
3) Those already being paid an equivalent at the
time of issuance of PD 851
4) Employees paid purely on commission, fixed,
boundary or task basis
Minimum Amount: Not less than 1/12 of total
basic salary earned within a calendar year
Basic Salary
For purposes of 13th mo. pay, shall include all
remunerations or earnings paid by his
employer for services rendered
But does NOT INCLUDE: allowances and
monetary benefits which are not considered or
integrated as part of the regular or basic salary
such as vacation and sick leave credits, OT
premium, night differential, holiday pay and
COLA
UNLESS by individual or collective agreement
or company practice or policy, they are treated
as basic salary.
NOTES:
Rationale of the requirement 1 month work
rendered to be entitled to 13th month pay:
what the law talks about is a 13th MONTH pay,
so the base is 1 month (not 1 day day or 1 week)
Example: worked for 29 days only, but entitled
to 2 months allowance, whether worked or
unworked not entitled to 13th month pay. Do
not consider the allowance for 2 months
because the employee did not work for those 2
months.
Supervisors are NOT entitled to 13th month pay
because they are not R&F employees.
Maternity benefits, like other benefits granted
by the SSS, are granted to employees in lieu of
27
LABOR LAW 1 (POST-MIDTERMS)
wages and is not included in computing the
employee’s thirteenth month pay for the
calendar year.
Those paid on commission, fixed, boundary or
task basis are exempted because there is no way
of ascertaining 13th month. BUT those paid on
a piece rate basis are entitled to 13th month
pay because you can quantify this. (E to E of
task basis)
Philippine Duplicators Inc. v. NLRC, 241 SCRA 380
Where the commission forms part of the basic
compensation for their services, comprising an
automatic increment to the monetary value
assigned to each unit of the work done, and the
fixed rate represents only a small percentage of
the earnings (15-30%), the commissions are part
of the basic wage structure. (included in
computing 13th month pay)
But where they are paid as productivity
bonuses tied to the productivity or capacity for
revenue production, they closely resemble
profit sharing and have no clear, direct, or
necessary relation to the work done by each
employee. It being a bonus, it is not
demandable as a matter of right. If an employer
cannot be compelled to pay a productivity
bonus, then that bonus is not within the basic
salary. (not included in computing 13th month)
Veloso’s discussion on Jurisprudence related to 13th
month pay:
Marcopper case: Benefits are either contractual or
statutory; the employer has to pay both kinds.
The 13th month pay in PD 851 is separate and
distinct from the pay given by the CBA. The
employer must pay both. (Veloso says this is an
ignorant ruling. It missed Sec. 2)
NFSW v. Ovajera (1981): Sec. 2 of PD 851
provides that those paying an equivalent of the
13th month pay are exempted from having to
pay the same. In this case, the employer under
the CBA is already paying a mid-year bonus
and a Christmas bonus. SC held that the mid-
year bonus in itself constituted a 13th month
pay already.
Dole v. Legardo: if the equivalent is less than the
required amount to be paid (i.e. less than 1/12),
pay the difference
Philippine Refining Company case (1985): The Sec.
2 equivalent exempts only those paying
bonuses, etc. at the time of the enactment of PD
851 in 1975. In this case, the CBA granting
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
Christmas bonus did not exist yet in 1975 so the
said bonus cannot be counted as compliance
with PD 851.
Universal Corn Products v. NLRC (21 August
1987): Bonus in the CBA is intended to be in
addition to PD 851, so pay both.
Tamayo Hotel v. NLRC: Opposite of Universal
Corn. Bonus is deemed as compliance so there
is no need to pay PD 851 benefits.
United CMC v. Valenzuela: Where the CBA
Christmas bonus is intended to be a longevity
bonus, it different from PD 851 pay. Pay both.
In this case, the purpose of the bonus is based
on the length of service.
PD 851 does not require the benefit to be
anchored on any qualifying factor (other than 1
month service and R&F requirement). If there is
any condition upon which payment of 13th
month pay is made to depend, then it would
not be deemed compliance with PD 851.
UST Faculty Union v. NLRC: Christmas gift is
not equivalent to a Christmas bonus. Thus, it
cannot be considered as 13th month pay.
FEU Employees Union case: Transportation paid
in the nature of a midyear bonus is considered
an equivalent.
REPUBLIC ACT NO. 7877: ANTI-SEXUAL
HARASSMENT ACT OF 1995
What venues are covered by this Act?
Work, education or training environment (WET)
Who are the persons who may be charged with
sexual harassment under this Act?
An employer, employee, manager, supervisor,
agent of the employer, teacher, instructor,
professor, coach, trainor, or any other person
having authority, influence or moral
ascendancy (AIM) over another in a work or
training or education environment (§3)
How is sexual harassment committed under this
Act?
When any of the persons enumerated above
demand, request or otherwise require any sexual
favor from another, regardless of whether the
demand, request or requirement for submission is
accepted by the object of said act (§3)
Describe sexual harassment in a work-related or
employment environment.
It is committed when:
28
LABOR LAW 1 (POST-MIDTERMS)
1. The sexual favor is made as a condition in the
hiring or in the employment, re-employment
or continued employment of said individual,
or in granting said individual favorable
compensation, terms of conditions, promotions,
or privileges; or the refusal to grant the sexual
favor results in limiting, segregating or
classifying the employee which in any way
would discriminate, deprive or diminish
employment opportunities or otherwise
adversely affect said employee;
2. The above acts would impair the employee's
rights or privileges under existing labor laws;
or
3. The above acts would result in an intimidating,
hostile, or offensive environment for the
employee (§3a)
Who can be a victim of sexual harassment in an
education or training environment?
It may be committed against:
1. One who is under the care, custody or
supervision of the offender; or
2. One whose education, training,
apprenticeship or tutorship is entrusted to the
offender (§3b)
What constitutes sexual harassment in an
education or training environment?
In cases when:
1. the sexual favor is made a condition to the
giving of a passing grade, or the granting of
honors and scholarships, or the payment of a
stipend, allowance or other benefits, privileges,
or consideration; or
2. the sexual advances result in an intimidating,
hostile or offensive environment for the
student, trainee or apprentice (§3b)
Who are the other persons who may be liable
under this Act?
Any person who directs or induces another to
commit any act of sexual harassment as herein
defined, or who cooperates in the commission
thereof by another without which it would not
have been committed (§3)
Duties of the employer or head of office in a
work-related, education or training environment:
1. to prevent or deter the commission of acts of
sexual harassment;
Ryan Quan 3C ’06-’07
JUSTICE VICENTE S.E. VELOSO
2. to provide the procedures for the
resolution, settlement or prosecution of acts of
sexual harassment;
3. Promulgate rules and regulations in
consultation with and jointly approved by the
employees or students or trainees, through
their duly designated representatives,
prescribing the procedure for the investigation
of sexual harassment cases and the
administrative sanctions therefor; and
4. Create a committee on decorum and
investigation of cases on sexual harassment
(§4)
5. disseminate or post a copy of this Act for the
information of all concerned (§4)
What should be contained in the rules and
regulations?
The said rules and regulations issued shall include,
among others, guidelines on proper decorum in the
workplace and educational or training institutions
(§4)
Functions of the committee:
1. conduct meetings, as the case may be, with
officers and employees, teachers, instructors,
professors, coaches, trainors, and students or
trainees to increase understanding and prevent
incidents of sexual harassment; and
2. conduct the investigation of alleged cases
constituting sexual harassment (§4)
Does the imposition of administrative sanctions
bar prosecution in the proper courts for unlawful
acts of sexual harassment?
No. the victim of work, education or training-
related sexual harassment is not precluded from
instituting a separate and independent action for
damages and other affirmative relief (§6)
Is there any case where the employer, head
of office, educational or training institution is
made liable?
Yes, they may be solidarily liable for damages
arising from the acts of sexual harassment
committed in the employment, education or
training environment if they had been informed of
such acts by the offended party and no immediate
action is taken (§5)
What is the prescriptive period for violation of
any of the provisions of this Act?
3 years (§7)
29
LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

SALIENT FEATURES OF THE SSS LAW AND GSIS LAW

Social Security Act of 1997 Government Service Insurance Act of

(RA 8282) 1997 (RA 8291)
Employer - Any person, natural or judicial, - The national government, its political
domestic or foreign who carries on in subdivisions, branches, agencies or
the Philippines any trade, business, instrumentalities, including GOCCs,
industry undertaking or activity of any and financial institutions with original
kind and uses the services of another charters, the constitutional
person who is under his orders as commissions and the judiciary
regards employment 8 (c)
- Exempt employer: government and
any of its political subdivisions,
branches and instrumentality,
including GOCCs
BENEFICIARIES a. Dependent Spouse until remarriage a. Legal, Dependent Spouse until
1. PRIMARY AND remarriage AND
b. Dependent Legitimate or Legitimated b. Dependent Children
or Legally Adopted and Illegitimate
Children

2. SECONDARY Dependent Parents Dependent Parents; AND

Legitimate descendants subject to
restrictions on dependent children,
legitimate descendants

3. OTHERS Absent primary and secondary

beneficiaries, any other person designated
by member as secondary beneficiary

As to DEATH BENEFITS, If no beneficiary

qualifies under the Act, benefits shall be
paid to Legal Heirs in accordance with
Law of Succession
BENEFITS Monthly Pension 1. ALL MEMBERS
Dependents Pension a. Life Insurance
Retirement b. Retirement
Death c. Disability
Permanent Disability d. Survivorship
Funeral e. Separation
Sickness f. Unemployment
Maternity (ONLY 1ST FOUR DELIVERIES
OR MISCARRIAGES) 2. JUDICIARY
A. Life Insurance ONLY
-ALL TAX EXEMPT
COVERAGE
1. Compulsory 1. All employees not over sixty (60) Compulsory for all employees receiving
years of age and their employers; compensation who have not reached
compulsory coverage of the employer compulsory retirement age, irrespective of
shall take effect on the first day of his employment status

Ryan Quan 3C ’06-’07 1

LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

operation and that of the employee on

the day of his employment
2. self-employed employees as may be
determined by the Commission under
such rules and regulations as it may
prescribe, including, but limited to: all
self-employed professionals; partners
and single-proprietors of business;
actors and actresses, directors,
scriptwriters and news
correspondents not employees;
professional athletes, coaches, trainers
and jockeys, and individual farmers
and fishermen; upon their registration
with the SSS.
3. Domestic helpers who are sixty years
of age and below with a monthloy
income of not less than P1,000 on the
date of their employment
4. individual farmers and fishermen
under SS rules and regulations

Voluntary:
1. Filipinos recruited by foreign-based
employers for employment abroad
2. Employee separated from
employment
3. Self-employed – realizes no income
4. Spouse who devotes full time
managing household and family
affairs unless specifically mandatorily
covered

By Arrangement:
1. any foreign government, international
organization or wholly owned
instrumentality employing workers in
the Philippines or employing Filipinos
outside the Philippines may enter
agreement with Philippines for
inclusion of such employees in SSS
EXCEPT those already covered by
their respective civil service retirement
system.
Exceptions (from 1. employment purely casual and not for 1. Members of the Armed Forces
coverage) purpose occupation, or business 2. Members of the PNP
employer
2. service performed on or in connection * members of judiciary and constitutional
with alien vessel, if employed when commissions: life insurance only
such vessel is outside of Philippines
3. employees of Philippine government
or instrumentality or agency thereof

Ryan Quan 3C ’06-’07 2

LABOR LAW 1 (POST-MIDTERMS) JUSTICE VICENTE S.E. VELOSO

4. service performed in the employee of a

foreign government, or international
organizations, of wholly owned
instrumentality employing workers in
the Philippines or employing Filipinos
outside of the Philippines
5. services performed by temporary and
other employees excluded by SSS
regulation; employees of bonafide
independent contractors shall not be
deemed employees of the employer
engaging the services of an
independent contractor
BASIS OF CLAIM Non-work connected disability, sickness, Work-connected exempt from liability
maternity, death and old age and other where permanent disability due to his
contingencies resulting in loss of income or grave misconduct, habitual intoxication, or
financial burden (Sec. 2) willful intention to kill himself or another
(Sec. 15-17)

Õ END OF REVIEWER Õ

This reviewer is based on the sequence of topics discussed by Justice Veloso in

class. Some, if not most, of the case titles are not accurate as they are the cases
being randomly cited by Justice Veloso in class. This is in no way complete.
Reading book/s in addition to this is highly recommended.

ACKNOWLEDGEMENTS

Parts of this reviewer were taken from the Labor Law Reviewers of the Ateneo
Central Bar Operations 2006 and from Doranne Lim’s reviewer for Justice
Veloso’s Labor Law Review class.

Thanks to Lea for helping do the case doctrines and

Cecille for her notes in class. ☺

God bless!

Ryan Quan 3C ’06-’07 3