SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW

Any form of reproduction of this copy is strictly prohibited!!!
PRELIMINARY TITLE
CHAPTER I
GENERAL PROVISIONS
ART 1. NAME OF DECREE
LABOR LEGISLATION - Consists of
statutes, regulations and jurisprudence
governing the relations between capital and
labor, by providing for certain standards of terms
and conditions of employment or providing a
legal framework within which these terms and
conditions and the employment relationship may
be negotiated, adjusted and administered. It is
divided into labor standards and labor relations.
LABOR STANDARDS - Are the minimum
reuirements prescribed by e!isting laws,
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
other monetary and welfare benefits,
including occupational safety, and health
standards.
LABOR RELATIONS LAW - defines the
status, rights, and duties and the institutional
mechanisms that govern the individual and
collective interactions of employers, employees
or their representatives.
- "he law which
seeks to stabili#e the relation between employer
and employee, to forestall and thresh out their
differences through the encouragement of
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and
arbitration.
ART. 2. DATE OF EFFECTIVITY
"he $abor Code took effect on %ovember &,
&'() *si! months after its promulgation on +ay
&,&'(),

SEVEN (7) BASIC RIGHTS OF
WORKERS AS GARANTEED BY
THE CONSTITTION (OCESHLP)!
&. -ight to .rgani#e
/. -ight to Conduct Collective 0argaining
or %egotiation with +anagement
1. -ight to 2ngage in 3eaceful Concerted
Activities including strike in accordance
with law
). -ight to 2njoy 4ecurity of "enure
5.-ight to 6ork 7nder 8umane Conditions
9.-ight to -eceive a $iving 6age
(.-ight to 3articipate in 3olicy :
;ecision-+aking 3rocesses affecting
their rights and benefits as may be
provided by law
RELATED LAWS!
&. CI<I$ C.;2= see Arts. &(>>, &(>&and &(>1
/. -2<I42; 32%A$ C.;2= Art. /?'
3. ."82-4= 444 $aw, @4I4 $aw, Agrarian
-eform $aw, the &1
th
month pay law, the
+agna Carta for 3ublic 8ealth 6orkers, etc.
RATIONALE !
- "he raison dA etre of labor laws is the POLICE
POWER of the 4tate
ART ". DECLARATION OF BASIC
POLICY
"he 4tate shall afford protection to labor,
promote full employment, ensure eual work
opportunities regardless of se!, age or creed,
and regulate the relations between workers and
employers. "he 4tate shall assure the right of
workers to self-organi#ation, collective
bargaining, security of tenure, and just and
humane conditions of work.
EMPLOYER - one who employs the
services of othersB one for whom employees
work and who pays their wages or salaries.
EMPLOYEE - one who works for an
employerB a person working for salary or wages
ART #. CONSTRCTION IN FAVOR
OF LABOR
CONSTRCTION IN FAVOR OF
LABOR CLASE -this is with a view to apply
the Code to the greater number of employees to
enable them to avail of the benefits under the
law *Abella vs. %$-C,. "he working manAs
welfare should be the primordial consideration.
- "his rule is applicable i$ %&'(' i) * +,-.% as
to the meaning of the legal or contractual
provision. If the provision is clear and
unambiguous, it must be applied in
accordance with its e!press terms.
- "hese laws )&,-/+ .' in%'(0('%'+ 1i%& *
2i'1 %, %&' $*3% %&*% %&'4 *(' ('5'+i*/ in
n*%-(', they are enacted to better the lot
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Aneluz Torres, !heila !uli", Liezel DeLeon, Ana Marie Ga#os, Liza !a"o , Mac$Mac Romero, %ilmar Calle&o, !all# !il'a,
Jo# Me&ia, (o)ard Arzadon
SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!
and promote the welfare of the members of the
laboring class.
- R')'(2*%i,n ,$ '))'n%i*/ *%%(i.-%') ,$
),2'('i6n 0,1'( is read into contracts
as a postulate of the legal order.
- Courts *+,0% * /i.'(*/
*00(,*3& %&*% $*2,() %&' '7'(3i)' ,$
/*.,( (i6&%). "he mandate under Art. )
is simply to resolve doubt, i* an#, in favor
of labor. If there is no doubt in
implementing and interpreting the law,
labor will enjoy no built-in advantage
and the law will have to be applied as it
is.
MANAGEMENT RIGHTS! *CPST)
C -ight to conduct business
P -ight to prescribe rules
S -ight to select employees
T -ight to transfer or discharge employees

MANAGEMENT PREROGATIVE
2!cept as limited by special laws, an
employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including=
8I-I%@, 6.-C A44I@%+2%"4,
6.-CI%@ +2"8.;4, "I+2 3$AC2 A%;
+A%%2- .D 6.-C, "..$4 ". 02 742;,
3-.C24424 ". 02 D.$$.62;,
4732-<I4I.% .D 6.-C2-4, 6.-CI%@
-2@7$A"I.%4, "-A%4D2- .D 2+3$.E224,
6.-C 4732-<I4I.%, $AE-.DD .D
6.-C2-4, A%; ;I4CI3$I%2, ;I4+I44A$
A%; -2CA$$ .D 6.-C2-4. *HW8T2PLSD)
"hus, so long as management prerogatives
are e!ercised in good faith for
the advancement of the
employerAs interest and not for
the purpose of defeating or
circumventing the rights of
employees under special law or
under valid agreements, it shall
be upheld.
ART 8. RLES AND REGLATIONS
- "he rules and regulations issued by the ;.$2
shall become '$$'3%i2' 18 +*4) *$%'(
*nn,-n3'5'n% ,$ %&'i( *+,0%i,n in
n'1)0*0'() ,$ 6'n'(*/ 3i(3-/*%i,n.
ART 9. APPLICABILITY
AGRICLTRAL OR FARM WORKER -
one employed in an agricultural or farm
enterprise and assigned to perform tasks which
are directly related to the agricultural activities of
the employer, such as cultivation and tillage of
the soil, dairying, growing and harvesting of any
agricultural and horticultural commodities, the
raising of livestock or poultry, and any activities
performed by a farmer as an incident to or in
conjunction with such farming operations.
- "here may be in ,n' '50/,4'( .,%&
*6(i3-/%-(*/ *) 1'// *) in+-)%(i*/ 1,(:'().
- PRPOSE ,$ %&' 0(,2i)i,n! intended to
encourage workers to seek employment in
agricultural enterprises instead of migrating
to already overcrowded urban areas to find
work in industrial establishments
- "he $C applies to all workers, whether
agricultural or non-agricultural, including
employees in a 6,2'(n5'n% 3,(0,(*%i,n
in3,(0,(*%'+ -n+'( %&' C,(0,(*%i,n C,+'.
FARM
EMPLOYER-
FARM
WORKER
RELATIONSHI
P
TENANCY
RELATIONSHIP
- "he lease is one
of labor with the
agricultural laborer
as the lessor of his
services and the
farm employer as
the lessee
- It is the landowner
who is the lessor
and the tenant the
lessee of
agricultural land
- "he agricultural
worker works for
the farm employer
and for his labor he
receives a salary or
wage, regardless of
whether the
employer makes a
profit.
- "he tenant derives
his income from the
agricultural produce
or harvest
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Aneluz Torres, !heila !uli", Liezel DeLeon, Ana Marie Ga#os, Liza !a"o , Mac$Mac Romero, %ilmar Calle&o, !all# !il'a,
Jo# Me&ia, (o)ard Arzadon
Page 2 of 70
CHAPTER II
EMANCIPATION OF TENANTS
*%ote= not included as per 4C +emo,
ART 7-11
- S&*(' %'n*n34 &*) .''n *.,/i)&'+
placing in its stead leasehold system.
- 7nder Art. ?, the land covered by operation
land transfer 5-)% .' 0(i2*%' *6(i3-/%-(*/
/*n+; %'n*n%'+; 0(i5*(i/4 +'2,%'+ %, (i3'
*n+<,( 3,(n; *n+ 5,(' %&*n )'2'n
&'3%*(') in *('.
P(')'n% ('%'n%i,n /i5i%)!
- 5 hectares per landowner and 1 hectares
per child provided the child is=
&. Is at least &5 years of ageB and
/. Actually tilling the land or directly managing
the farm
E=CEPTIONS!
- those covered by homestead patents
- those covered by 3; /(
EMANCIPATION PATENT - is the title issued
to the tenant upon compliance with all the
reuirements of the government. It represents
the full emancipation pf the tenant from the
bondage of the soil.
PROHIBITION AGAINST ALIENATION
IS INTENDED TO!
&. 3reserve the landholding in the hands of the
owner-tiller and his heirsB
/. minimi#e land speculationB and
1. prevent a return to the regime of land
ownership by a few.
BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRITMENT AND PLACEMENT OF
WORKERS
CHAPTER I
GENERAL PROVISIONS
ART 1". DEFINITIONS
WORKER -any member of the labor force,
whether employed or unemployed
RECRITMENT AND PLACEMENT - any act
of canvassing, enlisting, contracting,
transporting, utili#ing, hiring or procuring
workers, and includes referrals, contract
services, promising or advertising for
employment, locally or abroad, whether for profit
or notB 3-.<I;2;, that any person or entity
which, in any manner, offers or promises for a
fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
*C2C-"7C3, *-C3A,
-"he number of persons dealt with is not
an essential ingredient of the act of recruitment
and placement of workers. "he proviso merely
creates the presumption.
ART 19. PRIVATE RECRITMENT
ENTITIES ATHORI>ED TO RECRIT
&. 3ublic employment offices
/. 3rivate recruitment entitiesB private
employment agencies
1. 4hipping or manning agents or
representatives
). "he 3.2A
5. Construction contractors if authori#ed by the
;.$2 and the Construction Industry
Authority
9. +embers of the diplomatic corps *but hirings
must also go thru 3.2A,
(. .ther persons or entities as may be
authori#ed by the ;.$2 secretary
DOCMENTATION OF WORKERS!
&. Contract 3rocessing F workers hired thru the
3.2A shall be issued the individual
employment contract and such other
documents as may be necessary for travel
/. 3assport ;ocumentation
1. <isa Arrangement
ART 17. (POEA)
- 3.2A has taken over the functions of the
.2;0
AD?DICATORY FNCTIONS OF THE
POEA !
a. All cases which are administrative in
character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entitiesB and
b. ;isciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting
partners and Dilipino +igrant 6orkers
?RISDICTION TRANSFERRED TO
THE LABOR ARBITERS OF THE NLRC !
a. claims arising out of an employer-employee
relationship or by virtue of any law or
contract involving Dilipino workers for
overseas deployment including claims for
actual, moral, e!emplary and other forms of
damages.
V'n-' @ +oney claims or claims for damages
should be filed before the -egional Arbitration
branch of the %$-C where the complainant
resides or where the principal office of the
respondentGemployer is situated, at the option of
the complainant.
C,50(,5i)' A6(''5'n% - Consistent with
the policy encouraging amicable settlement of
labor disputes, 4ec &>, -A ?>)/ allows
resolution by compromise of cases filed with the
%$-C.
PREMATRE TERMINATION OF
CONTRACT - 6here the workerAs employment
contract is terminated long before its agreed
termination date, and the termination is not
shown to be based on lawful or valid grounds,
the employer will be ordered to pay the workers
their salaries corresponding to the une!pired
portion of their employment contract. (Ti'((*
In%A/ C,n)%(-3%i,n C,(0. 2). NLRC).
8.62<2-, under -.A. ?>)/, if the illegal
dismissal %,,: 0/*3' ,n ,( *$%'( ?-/4 18; 1BB8,
the illegally dismissed ,2'()'*) worker shall be
'n%i%/'+ %, %&' $-// ('i5.-()'5'n% ,$ &i)
0/*3'5'n% $'' 1i%& in%'(')% *% %&' (*%' ,$ 12C
0'( *nn-5 0/-) )*/*(4 $,( %&' -n'70i('+
0,(%i,n ,$ &i) '50/,45'n% 3,n%(*3% ,( $,( "
5,). $,( '2'(4 4'*( ,$ %&' -n'70i('+ %'(5
1&i3&'2'( i) LESS.
- Claims for +'*%& *n+ .-(i*/ .'n'$i%)
in2,/2in6 )'*5'n OCW) 1&i3& %&' POEA
has jurisdiction *(' n,% %&' )*5' as the
3/*i5) *6*in)% %&' S%*%' In)-(*n3' F-n+
,$ %&' LC.
- "he basis for the award of backwages is the
partiesH employment contract, stipulating the
wages and benefits.
- T&' $*3% %&*% %&' '50/,4'' &*) )i6n'+ *
)*%i)$*3%i,n ('3'i0% +,') n,% (')-/% in
1*i2'(D %&' /*1 +,') n,% 3,n)i+'( *)
2*/i+ *n4 *6(''5'n% %, ('3'i2' /'))
3,50'n)*%i,n %&*n 1&*% %&' 1,(:'( i)
'n%i%/'+ %, ('3,2'(.
(MR Y*(+ C('1 ni,n 2). PNR)
ART 1E. BAN ON DIRECT-HIRING
Di('3% &i(in6 ,$ Fi/i0in, 1,(:'() .4 *
$,('i6n '50/,4'( i) n,% *//,1'+.
E=CEPTIONS !
the members of the diplomatic corpsB
international organi#ationsB
such other employers as may be allowed by the
;epartment of $abor and employment
1. n*5' &i('') F individual workers who are
able to secure contracts for overseas
employment on their own efforts and
representations without the assistance or
participation or any agency
RATIONALE OF THE PROHIBITION
- Fi/i0in, 1,(:'() &i('+ +i('3%/4 .4 *
$,('i6n '50/,4'(; 1i%&,-% 6,2'(n5'n%
in%'(2'n%i,n 5*4 n,% .' *))-('+ ,$ %&'
.')% 0,))i./' %'(5) *n+ 3,n+i%i,n) ,$
1,(:. "he foreign employer must also be
protected and may chance upon a Dilipino
worker who do not possess sufficient
knowledge for which he is employed.
MINIMM EMPLOYMENT
CONDITIONS OF OVERSEAS
EMPLOYMENT!
&. @uaranteed wages for regular
working hours and overtime pay for
services rendered beyond regular
working hours in accordance with
the standards established by the
Administration
/. Dree "ransportation from point of hire to site
of employment and returnB
1. Dree emergency medical and dental
treatment and facilitiesB
). Iust causes for termination of the contract or
of the services of the workersB
5. 6orkmenAs compensation benefits and war
ha#ard protectionB
9. -epatriation of workerAs remains and
properties in case of death to the point of
hire, or if this is not possible the possible
disposition thereof
(. Assistance on remittance of workerAs
salaries, allowances or allotments to his
beneficiariesB and
?. Dree and adeuate board and lodging
facilities or compensatory food allowance at
prevailing cost of living standards at the
jobsite.
ART 22. MANDATORY REMITTANCE
OF FOREIGN E=CHANGE EARNINGS
MANDATORY REMITTANCE
REFIREMENTS!
&. 4eamen or mariners= ?>J of the basic
salaryB
/. 6orkers for Dilipino Contractors and
Construction Companies= (>J of the basic
salaryB
1. ;octors, engineers, teachers, nurses, and
other professionals whose employment
contract provide for lodging facilities= same
as K/
). All other professionals without board and
lodging= 5>J of the basic salaryB
5. ;omestic and other service of workersB 5>J
of the basic salary.
ART 28. PRIVATE SECTOR
PARTICIPATION IN THE RECRITMENT
AND PLACEMENT OF WORKERS
FALIFICATIONS FOR
PARTICIPATION IN THE OVERSEAS
EMPLOYMENT PROGRAM!
&. Dilipino citi#ens, partnerships or corporations
at least (5J of the authori#ed and voting
capital stock of which is owned and
controlled by Dilipino citi#ensB
/. +inimum capitali#ation of &+ in case of
single proprietorship or partnership and a
minimum of &+ paid-up capital for
corporationsB
1. "hose not otherwise disualified by law or
these guidelines to engage in the
recruitment and placement of workers for
overseas employment
DISFALIFICATIONS!
&. "ravel agencies and sales agencies of
airline companiesB
/. .fficers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agencyB
1. Corporations and partnerships, when any of
its officers, members of the board or
partners, is also an officer, member of the
board or partner of a corporation engaged in
the business of a travel agency.
). 3ersons, partnerships, or corporations which
have derogatory recordsB
5. 3ersons employed in the ;epartment of
$abor or in other government agencies
directly involved in overseas employment
program and their relatives within the )
th
degree of consanguinity or affinityB or
9. "hose whose license has been previously
canceled or revoked.
CHAPTER II
REGLATIONS OF RECRITMENT
AND PLACEMENT ACTIVITIES
ART 2B. NON-TRANSFERABILITY OF
LICENSE OR ATHORITY
- N, /i3'n)' ,( *-%&,(i%4 )&*// .' -)'+
+i('3%/4 ,( in+i('3%/4 .4 *n4 0'(),n ,%&'(
%&*n %&' ,n' in 1&,)' $*2,( i% 1*) i))-'+
or at any place other than that stated in the
license or authority, nor may such license or
authority be transferred, conveyed or
assigned to any other person or entity.
- $icensees or holders of authority or their
duly authori#ed representatives may as a
rule, undertake recruitment and placement
activities ,n/4 *% %&'i( *-%&,(iG'+ ,$$i3i*/
*++('))').
- C&*n6' ,$ ,1n'()&i0 ,( ('/*%i,n)&i0 ,$
)in6/' 0(,0(i'%,()&i0 /i3'n)'+ to engage
in overseas employment shall cause the
*-%,5*%i3 ('2,3*%i,n ,$ %&' /i3'n)'.
- All ,2'()'*) /*n+.*)'+ 1,(:'() shall be
provided both /i$' *n+ 0'(),n*/ *33i+'n%
in)-(*n3'.
GRONDS FOR DISCIPLINARY
ACTION *7nder the MWA ,$ 1BB8, B
&. Commission of a felony punishable by the
laws of the 3hilippines or by the host
countryB
/. ;rug addiction or possession or trafficking of
prohibited drugsB
1. ;esertion or abandonmentB
). ;runkenness, especially where the laws of
the of the host country prohibit the sameB
5. @ambling, especially where the laws of the
host country prohibit the sameB
9. Initiating or joining a strike or work stoppage
where the laws of the host country prohibit
strikes or similar actionsB
(. Creating trouble at the worksite or in the
vesselB
?. 2mbe##lement of company funds or of
money an properties of a fellow worker
entrusted for delivery to kins or relatives in
the 3hilippinesB
'. "heft or robberyB
&>. 3rostitutionB
&&. <andalism or destroying company propertyB
&/. @unrunning or possession of deadly
weaponsB
&1. 7njust refusal to depart for the worksite after
all employment and travel documents have
been duly approved by the appropriate
government agencyB and
&). <iolation of the laws and sacred practices of
the host country and unjustified breach of
government approved employment contract
by a worker.
ART "1. BONDS

- C*)& .,n+ $i/'+ .4 *00/i3*n%) $,( /i3'n)'
,( *-%&,(i%4 i) n,% )-.H'3% %, 6*(ni)&5'n%
by judgment creditor of agency
ART "2. FEES TO BE PAID BY
WORKERS
- 4uspension or cancellation of licenses 5*4
in3/-+' *1*(+ ,$ +*5*6') to repair the
injury caused to its victims.
ART "#. PROHIBITED PRACTICES
- A )-00/'5'n%*(4 3,n%(*3% .'n'$i3i*/ %,
1,(:'( n,% 2i,/*%i2' ,$ 0(,%'3%i,n afforded
by the 4tate to workers.
ART "8. SSPENSION AND<OR
CANCELLATION OF LICENSE OR
ATHORITY
NON-LICENSEE OR NON-HOLDER OF
ATHORITY - any person, corporation or entity
which has not been issued a valid license or
authority to engage in recruitment and
placement by the 4ecretary of $abor, or whose
license or authority has been suspended,
revoked, or cancelled by the 3.2A and the
4ecretary.
CHAPTER III
MISCELLANEOS PROVISIONS
ART "E. ILLEGAL RECRITMENT (*)
0'( RA EI#2 ,%&'(1i)' :n,1n *) %&'
Mi6(*n% W,(:'()A A3% ,$ 1BB8)
ILLEGAL RECRITMENT - Any act of
canvassing, enlisting, contracting,
transporting, utili#ing, hiring or procuring
workers and includes referring contract
services, promising or advertising for
employment abroad, whether for profit or
not when undertaken by a non-licensee
or non-holder of authority.
3-.<I;2; that any such non-licensee
or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
to two or more persons shall be deemed so
engaged. It shall likewise include the
commission of prohibited acts whether
committed by a non-licensee or non-holder of
authority or a licensee or holder of authority.

PROHIBITED PRACTICES!
(CFGIIEOFSBWF)
C to charge or accept amount beyond
amount allowed by law
F to furnish or publish false notice or
information in relation to -ecruitment
and 3lacement
G to give any false notice and information
or commit any act of misrepresentation
to secure license or authority
I Induce or attempt to induce workers to
uit employment to offer him another
e!cept if the transfer is to liberate a
worker from oppressive terms and
conditions of employment *%."2= it is
not necessary that worker was actually
induced or did uit employment,
I to influence or attempt to influence any
person or entity not to employ any
worker who has not applied for
employment in his agency
E to engage in the recruitment or
placement of workers in jobs harmful to
public health or morality or to the dignity
of the 3hil.
O .bstruct or attempt to obstruct
inspection by 4ecretary
F Dail to file reports
S 4ubstitute or alter employment contracts
B 0ecome officer or 0oard member of
corporation engaged in travel agency
W 6ithhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authori#ed by the Code.
F Dailure to actually deploy without valid
reason as determined by the ;.$2
F Dailure to reimburse e!penses incurred
by the worker in connection with his
documentation and processing for
purposes of deployment, in cases where
the deployment does not actually take
place without the workerAs fault
THE FALIFYING CIRCMSTANCES
THAT WOLD MAKE ILLEGAL
RECRITMENT AS A CRIME
INVOLVING ECONOMIC SABOTAGE
ARE !
6hen committed by a SYNDICATE i+e+, if it is
carried out by a group of three *1, or more
persons conspiring and confederating with
one anotherB or
(a) 6hen committed in a LARGE SCALE
i+e+, if it is committed against three *1, or
more persons
VENE OF ACTIONS ON ILLEGAL
RECRITMENT!
&. -"C of the province or city where the
offense was committedB or
/. where the offended party resides at the time
of the commission of the offense
at the option of the complainant
- "hese circumstances only ualify. "hey do
not define the offense themselves
- R'3(-i%5'n% *n+ 0/*3'5'n% *3%i2i%i') of
agents or representatives appointed by a
licensee, whose appointments were n,%
0('2i,-)/4 *-%&,(iG'+ .4 %&' POEA shall
likewise 3,n)%i%-%' i//'6*/ ('3(-i%5'n%.
ART. "E ( 3 ) +'3/*('+ -n3,n)%i%-%i,n*/ since
only a judge may issue search
warrantG warrant of arrest. "he
4ec. .f $abor may only
recommend not issue. 8owever,
Closure of establishments of illegal
recruiters may still be ordered by
4ecretary of $abor, same being
essentially administrative and
regulatory in nature.(S*/*G*( 2).
A3&*3,), *n+ M*(J-'G)
PRESCRIPTIVE PERIOD
Illegal -ecruitment cases under -A ?>)/ shall
prescribe in $i2' (8) 4'*() Pro'ided, ho)e'er,
"hat illegal recruitment cases involving
'3,n,5i3 )*.,%*6' shall prescribe in %1'n%4
(2I) 4'*().
TITLE II
EMPLOYMENT OF NON-RESIDENT
ALIENS
ART #I. EMPLOYMENT PERMIT OF
NON-RESIDENT ALIENS
-Doreigners or domestic and foreign employers
desiring to employ aliens must secure
employment permit from the ;.$2 upon
determination of the non-availability of a person
in the 3hilippines who is competent, able and
willing at the time of the application to perform
the services for which the alien is desired.
- Doreigners may n,% .' '50/,4'+ in certain
n*%i,n*/iG'+ .-)in')).
- a n,n-(')i+'n% */i'n 1,(:'( and the
'50/,4'( shall bind themselves to %(*in *% /'*)%
2 Fi/i0in, -n+'()%-+i').
PROHIBITION AGAINST
EMPLOYMENT OF ALIENS
S'3%i,n 2-A ,$ %&' An%i-D-554 L*1 prohibits
the employment of aliens in establishment or
entities which have under their name or control a
right, franchise, privilege, property or business
the e!ercise or enjoyment of which property or
business the e!ercise or enjoyment of which is
e!pressly reserved by the Constitution or the
laws to citi#ens of the 3hilippines or to
corporations or associations at least 9>J of the
capital of which is owned by such citi#ens.
E=CEPTIONS TO THE
PROHIBITION!
a. where the 4ecretary of Iustice specifically
authori#es the employment of technical
personnelB or
b. where the aliens are elected members of
the board of directors or governing body of
corporations or association in proportion to
their allowable participation in the capital of
such entities.
BOOK TWO
HMAN RESORCES
DEVELOPMENT
TITLE I
NATIONAL MANPOWER
DEVELOPMENT PROGRAM
CHAPTER I
NATIONAL POLICIES AND
ADMINISTRATIVE MACHINERY FOR
THEIR IMPLELENTATION
ART #8. DEFINITIONS
MANPOWER - that portion of the nationAs
population which has actual or potential
capability to contribute directly to the production
of goods and services.
ENTREPRENERSHIP - training for self-
employment or assisting individual or small
industries within the purview of this the $C.
TITLE II
TRAINING AND EMPLOYMENT OF
SPECIAL WORKERS
CHAPTER I
APPRENTICES
T40') ,$ S0'3i*/ W,(:'()!
&. Apprentice
/. $earners
1. 8andicapped
ART 8E. DEFINITION OF TERMS
APPRENTICESHIP - practical training on the
job supplemented by related theoretical
instruction
APPRENTICE - worker who is covered by a
written apprenticeship agreement with an
individual employer or any of the entities
recogni#ed under this chapter
APPRENTICEABLE OCCPATION - any
trade, form of employment or occupation which
reuires more than 1 months of practical training
on the job supplemented by related theoretical
instruction
APPRENTICESHIP AGREEMENT - an
employment contract wherein the employer
binds himself to train the apprentice and the
apprentice in turn accepts the terms of training
ON-THE-?OB TRAINING F the practical
work e!perience through actual participation in
productive activities given to or acuired by an
apprentice
HIGHLY TECHNICAL INDSTRIES F trade,
business, enterprise, industry or other activity,
which is engaged in the application of advanced
technology
ART 8B. FALIFICATIONS OF
APPRENTICES
F-*/i$i3*%i,n) ,$ *n A00('n%i3'
&. at least &5 years of ageB provided those
who are at least &5 years of age but less
than eighteen may be eligible for
apprenticeship only in non-ha#ardous
occupations and the apprenticeship
agreement shall be signed in his behalf by
the parent or guardian or authori#ed
representative of ;.$2.
/. vocational aptitudeG capacity for appropriate
test
1. ability to comprehend and follow oral and
written instructions
ART 9I. EMPLOYMENT OF
APPRENTICES
- On/4 '50/,4'() in &i6&/4 %'3&ni3*/
in+-)%(i') may hire apprentices and ,n/4 in
*00('n%i3'*./' ,33-0*%i,n) as
determined by the 4ec. .f $abor
R'J-i)i%') $,( * VALID
APPRENTICESHIP
&. L7A$IDICA"I.%4 .D "82 A33-2%"IC2
/. A33-2%"IC248I3 A@-22+2%" ;7$E
2M2C7"2; A%; 4I@%2; 3-.<I;I%@ D.-
C.+32%4A"I.% %." $244 "8A% (5J .D
"82 A33$ICA0$2 +I%I+7+ 6A@2, 2MC23"
.%-"82-I.0 "-AI%I%@ *.I",
1.A33-2%"IC248I3 3-.@-A+ ;7$E
A33-.<2; 0E ;.$2
). 32-I.; .D A33-2%"IC248I3 48A$$ %."
2MC22; 9 +.%"84.
ART 71. DEDCTIBILITY OF TRAINING
COSTS
R'J-i)i%') $,( %*7 +'+-3%i,n) in 3*)'
'50/,4'() &*2' *00('n%i3')&i0
0(,6(*5)!
&. 3rogram duly recogni#ed by the ;epartment
of $abor
/. ;eduction shall not e!ceed &>J of direct
labor wage
1. 3ay his apprentices the minimum wage
ART 72. APPRENTICES WITHOT
COMPENSATION
A00('n%i3') 1&, 5*4 .' &i('+ 1i%&,-%
3,50'n)*%i,n!
&.those whose training on the job is
reuired by the schoolB
/."raining 3rogram CurriculumB
1.-euisite for @raduationB or
).A reuisite for 0oard 2!amination
CHAPTER II
LEARNERS
ART 7". LEARNERS DEFINED
LEARNERS - persons hired as trainees in
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be
learned thru practical training on the job in a
relatively short period of time which shall not
e!ceed 1 mos.
APPRENTICESHIP LEARNERSHIP
&. 3ractical training on
the job
supplemented by
related theoretical
instruction.
&. 8iring of persons
as trainees in
semi-skilled and
other industrial
occupations which
are non-
apprenticeable and
which may be
learned thru
practical training
on the job in a
relatively short
period of time.
/. %ot less than 1
months practical
training on the job
but not more than 9
months
/. 3ractical training
on the job not to
e!ceed 1 mos.
1. %o Commitment to
hire
1. 6ith Commitment
to employ the
learner as regular
employee if he
desires upon
completion of
learnership
). In case of
pretermination of
the apprenticeship
agreement, the
worker is not
considered as a
regular employee
). $earner is
considered as a
regular employee
in case of
pretermination of
contract after /
mos. of training
and the dismissal
is without fault of
learner
5. 8ighly technical
industries and only
in industrial
occupation
5. 4emi-skilled G
industrial
occupations
L'*(n'() in 0i'3'1,(:< in3'n%i2' - rate jobs
are to be paid in full for the work done.
CHAPTER III
HANDICAPPED WORKERS
ART 7E. DEFINITION
HANDICAPPED WORKERS - Are those
whose '*(nin6 3*0*3i%4 i) i50*i('+ by age or
physical or mental deficiency or injury.
- 4ubject to the provisions of the Code,
&*n+i3*00'+ 1,(:'() 5*4 .' &i('+ *)
('6-/*( 1,(:'(); *00('n%i3') ,( /'*(n'()
if their &*n+i3*0 i) n,% )-3& *) %,
'$$'3%i2'/4 i50'+' %&' 0'($,(5*n3' ,$ H,.
,0'(*%i,n) in the particular occupations for
which they were hired.
- ualified disabled employee shall be
)-.H'3% %, %&' )*5' %'(5) *n+ 3,n+i%i,n)
,$ '50/,45'n% and the same
compensation, privileges, benefits, fringe
benefits, incentives or allowances as a
ualified able-bodied person. 2ven a
handicapped worker 3*n *3J-i(' %&'
)%*%-) ,$ * ('6-/*( '50/,4''.
D-(*%i,n ,$ '50/,45'n% - no minimum, no
ma!imum. ;ependent on agreement but is
necessary that there is a specific duration
BOOK THREE
CONDITIONS OF EMPLOYMENT
TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HORS OF WORK
ART E2. COVERAGE
ELEMENTS OF EMPLOYER-
EMPLOYEE RELATIONSHIP!
&. selection and engagement of the
employee
/. the payment of wages
1. the power of dismissal
). the employerAs power to control the
employee *with respect to the means
and methods by which the work is to
be accomplished,
- "he last element as mentioned above is
what is known as the CONTROL TEST -
whether the employer controls or has
reserved the right to control the employee
not only as to the result of the work to be
done but also as to the means and methods
by which the same is to be accomplished.
"his last element is the most important inde!
of the e!istence of the relationship.
EMPLOYEE - A natural person who is hired,
directly or indirectly, by a natural or juridical
person to perform activities related to the
business of the NhirerH who, directly or
through an agent, supervises or controls
the work performance and pays the salary
or wage of the hire.
E50/,4'') E7'50% $(,5 %&' B'n'$i%)
,$ E-E R'/*%i,n)&i0
&. @overnment 2mployees
/. +anagerial 2mployees
1. Dield 3ersonnel
). Damily +embers dependent on the
employer for support
5. ;omestic 8elpers
9. 3ersons on the 3ersonal 4ervice of another
(. 6orkers 3aid by -esult
GOVERNMENT EMPLOYEES - -efers only
to employees of government agencies,
instrumentalities or political subdivisions
and of government corporations that are
no" incorporated under the Corporation
Code, meaning those which have original
charters.
MANAGERIAL EMPLOYEES - -efer 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 members
of the managerial staff
N,%'! ;efinition applies only to the ?-
hour $abor law
FIELD PERSONNEL - -efer to non-
agricultural employees who regularly
perform their duties away from the principal
place of business or branch office of the
employer and whose actual hours of work
in the field cannot be determined with
reasonable certainty.
WORKERS PAID BY RESLTS - +ethod of
computing compensation based on the
work completed and not on the time spent
in working.
PIECE-RATE METHOD - 6here pay is
dependent on unit of product finished, preferred
where the work process is repetitive and the out
put is standardi#ed and easily countable.
DOMESTIC HELPERS< PERSONS
RENDERING PERSONAL SERVICES - 3erform
services in the employers home which are
usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
to the personal comfort, convenience or safety of
the employer, as well as the members of the
employerAs household.
- "he e!istence of employment relationship is
+'%'(5in'+ .4 /*1 and not by contract.
- 6hether or not an employer-employee
relationship e!ists between the parties is a
J-')%i,n ,$ $*3%. T&' $in+in6) ,$ %&'
NLRC *(' *33,(+'+ n,% ,n/4 (')0'3% .-%
$in*/i%4 i$ )-00,(%'+ .4 )-.)%*n%i*/
'2i+'n3'.
MANAGEMENT PREROGATIVE - e!cept as
otherwise limited by special laws, an employer is
free to regulate, according to his own discretion
and judgment, all aspects of employment,
including hiring, work assignments, working
methods, time, place, and manner of work, tools
to be used, processes to be followed,
supervision of workers, working regulations,
transfer of employees, work supervision, lay-off
of workers and discipline, dismissal and recall of
workers.
- +anagement prerogative ('3,6niG') %&'
(i6&% ,$ %&' '50/,4'( %, *+2*n3' i%)
in%'(')% to prescribe standards of work and
impose reasonable uotas or work
assignments, and failure on the part of the
employees to meet the reuirement, impose
in good faith, constitutes a just cause for his
dismissal.
- N'1 ,1n'(<5*n*6'5'n% 6(,-0 has n,
,./i6*%i,n %, ('-'50/,4 1,(:'() 1&,
$(''/4 *n+ 2,/-n%*(i/4 *33'0%'+ %&'i(
)'0*(*%i,n 0*4 *n+ ,%&'( .'n'$i%). A
change of ownership in a business concern
is not proscribed by law.
ART E". NORMAL HORS OF WORK
- 4hall n,% '73''+ E &,-() in a regular working
day
PRPOSE
- to safeguard the health and welfare of the
laborer and in a way to minimi#e
unemployment by utili#ing different shifts
REGLAR WORKING DAYS! "he regular
working days of covered employees shall not be
more than five days in a workweek. "he
workweek may begin at any hour and on any
day, including 4aturday or 4unday, designated
by the employer.
ART E#. HORS WORKED
SHALL INCLDE!
&. All time during which an employee is
reuired to be on duty or to be at a
prescribed workplaceB and
/. All time during which an employee is
suffered or permitted to work
PRINCIPLES IN DETERMINING
HORS WORKED=
&. All hours are hours worked which the
employee is reuired to give to his
employer, regardless of whether or not such
hour are spent in productive labor or involve
physical or mental e!ertionB
/. An employee need not leave the premises of
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere
whether within or outside the premises of his
workplaceB
1. If the work performed was necessary, or it
benefited the employer, or the employee
could not abandon his work at the end of his
normal working hours because he had no
replacement, all time spent for such work
shall be considered as hours worked if the
work is with the knowledge of his employer
or immediate supervisor
). "he time during which an employee is
inactive by reason of interruptions in his
work beyond his control shall be considered
time either if the imminence of the
resumption of work reuires the employeeAs
presence at the place of work or if the
interval is too brief to be utili#ed effectively
and gainfully in the employeeAs own interest.
- .nly the ma!imum is prescribed, not minimum.
P*(%- %i5' 1,(: i) %&'('$,(' n,% 0(,&i.i%'+.
ENGAGED TO WAIT - when waiting is an
integral part of the job, it is compensable
WAITING TO BE ENGAGED - idle time is not
working time, not compensable
WHEN TRAVEL TIME
COMPENSABLE!
&. "ravel from home to work- refers to ordinary
work travel but where the worker is made to
work on an emergency call and travel is
necessary in proceeding to the workplace,
the time spent on travel is compensable
/. "ravel that is all in a dayAs work- time spent
by an employee in travel as part of his
principal activity, such as travel from jobsite
to jobsite during the workday, must be
counted as hours worked.
1. "ravel away from home- travel that keeps an
employee away from home overnight.
- W,(: &,-() ,$ )'*5'n are governed by
the same rules as land based employees.
"hus, they must )&,1 )-$$i3i'n% 0(,,$ that
said work is actually performed.
R')% P'(i,+) ,$ )&,(% +-(*%i,n +-(in6
1,(:in6 &,-() shall be considered as
&,-() 1,(:'+.
P('/i5in*(4 *3%i2i%i') 3,50'n)*./' when
controlled or reuired by employer and are
pursued necessarily and primarily for the
employerAs benefit,

ART E8. MEAL PERIODS
MEAL PERIODS
&. 4hould not be less than si!ty *9>, minutes,
and is time-offGnon-compensable
/. 7nder specified cases, may be less than
si!ty *9>, minutes, but should not be less
than twenty */>, minutes an must be with full
pay.
1. If less than twenty*/>, minutes, it becomes
only a rest period and is thus considered as
work time
NOTE= 2mployee must be 3,50/'%'/4
('/i'2'+ $(,5 +-%4. .therwise, it is
compensable as hours worked.
- +ealtime is n,% 3,50'n)*./' E=CEPT in
cases where the lunch period or meal time is
0('+,5in*n%/4 )0'n% $,( %&' '50/,4'(A)
.'n'$i% or 1&'(' i% i) /')) %&*n 9I
5in-%').
- 2mployees may reuest that their 5'*/
0'(i,+ .' )&,(%'n'+ so that they can leave
work earlier that the previously established
schedule.
REFISITES !
&. "he employees voluntarily agree in writing to
a shortened meal period and are willing to
waive the overtime pay for such shortened
meal periodB
/. %o diminution whatsoever in the salary and
other fringe benefits of the employees
e!isting before the effectivity of the
shortened meal periodB
1. 6ork does not involve strenuous physical
e!ertion and they are provided with
adeuate coffee breaksB
). "he value of benefits is eual with the
compensation due them for the shortened
meal period
5. ." pay will become due and demandable
after the new time scheduleB and
9. "he arrangement is of temporary duration.
ART E9. NIGHT SHIFT DIFFERENTIAL
NIGHT SHIFT DIFFERENTIAL -Additional
compensation of n,% /')) %&*n %'n 0'(3'n%
(1IC) of an employeeAs regular wage for every
hour of work done between 1I!II PM *n+ 9!II
AM, whether or not this period is part of the
workerAs regular shift.
- If work done between 1I PM *n+ 9 AM i)
,2'(%i5' 1,(:, then the &>J night shift
differential should be .*)'+ ,n &i)
,2'(%i5' (*%'.
RATIONALE
- it serves as an inducement of employment
ART E7. OVERTIME WORK
O VERTIME PAY - Additional compensation
for work performed beyond eight *?, hours
within the workerAs /)-hour workday.
1>J of &1>J if on a special holidayGrest day
&. /5J of regular wage if done on a regular
workday
/. 1>J of &5>J if on special holiday A%; rest
day
1. 1>J of />>J if on a regular holiday
RATIONALE
- employee is given ." pay because he is made
to work longer than what is commensurate with
his agreed compensation for the statutorily fi!ed
or voluntarily agreed hours of labor he is
supposed to do.
- As a rule, 3*nn,% .' 1*i2'+, as it is
intended to benefit laborers and employees.
0ut when the waiver is made in
consideration of benefits and privileges
which may even e!ceed the overtime pay,
the waiver may be permitted.
NOTE! ." pay will not preclude payment of
night shift differential pay.
- M'*/ 0'(i,+) +-(in6 ,2'(%i5' 1,(: i) n,%
6i2'n %, 1,(:'() 0'($,(5in6 ,2'(%i5' for
the reason that ." work is usually for a
short period ranging from one to three hours
and to deduct from the same one full hour
as meal period would reduce to nothing the
employeeAs ." work.
WORK DAY - the /)-hour period which
commences from the time the employee
regularly starts to work. e.g., if the worker starts
to work ? am today, the workday is from ?am
today up to ? am tom.
- "he minimum normal working hours fi!ed by
the Act n''+ n,% .' 3,n%in-,-) to
constitute the legal working day
- E70(')) *00(,2*/ .4 * )-0'(i,( i) n,% *
0('('J-i)i%' %, 5*:' ,2'(%i5' 1,(:
3,50'n)*./'. 8.62<2-, written
authority after office hours during rest days
and holidays are reuired for entitlement to
compensation.
- "he right to ." pay 3*nn,% .' 1*i2'+.
4uch waiver is contrary to law and public
policy.
E=CEPTIONS!
&. 6hen the waiver stipulates higher payment
or rate of ." payB or
/. 6here the contract of employment reuires
work for more than eight hours of work at
specified wage per day providing for a fi!ed
hourly rate or that the daily wages include
overtime pay.
COMPRESSED WORKWEEK -allowable
under the following conditions=
&. It is voluntary on the part of the worker
/. "here will be no diminution of the weekly or
monthly take-home pay and fringe benefits
of the employeesB
1. "he value of the benefits that will accrue to
the employees under the proposed schedule
is more than or at least commensurate with
the one-hour ." pay that is due them during
weekdays based on the employeeAs
uantification
). "he one-hour ." pay will become due and
payable if they are made or permitted to
work on a day not scheduled for work on the
compressed work week
5. "he work does not involve strenuous physical
e!ertion and employees must have
adeuate rest periods
5. "he arrangement is of temporary duration.
ART EE. NDERTIME NOT OFFSET BY
OVERTIME
n+'(%i5' 1,(: ,n *n4 0*(%i3-/*( +*4 )&*//
n,% .' ,$$)'% .4 ,2'(%i5' 1,(: ,n *n4
,%&'( +*4. 3ermission given to the
employee to go on leave on some other
day of the week shall not e!empt the
employer from paying the additional
compensation.
RATIONALE
- An employeeAs regular pay rate is lower than
the overtime rate. .ffsetting the undertime
hours against the overtime hours would
result in undue deprivation of the
employeeAs e!tra pay for overtime work.
ART EB. EMERGENCY OVERTIME
WORK
WHEN WORKER MAY BE REFIRED
TO RENDER OT!
(WNNCN)
W &. Country is at war or any other
nationalGlocal emergency has been
declared by the Chief
2!ecutiveGCongress
N /. %ecessary to prevent loss of
lifeGpropertyG in case of actualGimpending
emergency in the locality
1. "here is urgent work to be performed
on machines, installations, or euipment
in order to avoid serious lossGdamage to
the employer or some other causes of
similar nature
N ). 6ork is necessary to prevent
lossGdamage to perishable goodsB and
C 5. 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.
N 9. when it is necessary to avail of
favorable weather or environmental
conditions where performance or uality
of work is dependent thereon
ART BI. REGLAR WAGE
- include the cash wage only, without deduction
on account of facilities provided by the
employer
CHAPTER II
WEEKLY REST PERIOD
ART B1. RIGHT TO A WEEKLY REST
DAY
- 2mployees should be provided a rest period
of n,% /')) %&*n %1'n%4 $,-( (2#)
3,n)'3-%i2' &,-() *$%'( '2'(4 )i7 (9)
3,n)'3-%i2' n,(5*/ 1,(: +*4).
- 2mployer shall schedule the weekly rest day
of his employees subject to collective
bargaining agreement. 8owever, the
employer shall (')0'3% %&' 0('$'('n3' ,$
'50/,4'') *) %, %&'i( 1'':/4 (')% +*4
1&'n )-3& 0('$'('n3' i) .*)'+ ,n
('/i6i,-) 6(,-n+). 0ut when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employeeAs choice
for at least two */, days a month
ART B2. WHEN EMPLOYER MAY
REFIRE WORK ON A REST DAY
WHEN EMPLOYEE MAY BE
REFIRED TO RENDER WORK
ON A REST DAY!
&. In case of actual or impending emergencies
caused by serious accident, fire, flood
typhoon, earthuake epidemic or other
disaster or calamity, to prevent loss of life or
property or in cases of force majeure or
imminent danger to public safety
/. urgent work to be performed on the
machinery, euipment or installation to avoid
serious loss which the employer would
otherwise suffer
1. abnormal pressure of work due to special
circumstances, where the employer cannot
ordinarily be e!pected to resort to other
measures
). prevent serious loss of perishable goods
5. nature of work reuires continuous operation
for seven days a week
9. work is necessary to avail of favorable
weather or environmental conditions where
performance or uality of work depends
upon them
ART B". COMPENSATION FOR REST
DAY; SNDAY OR HOLIDAY WORK
- this article does not prohibit a stipulation in
the C0A for higher benefits
SPECIAL HOLIDAYS
&. All 4aintAs ;ay -%ovember &
/. $ast ;ay of the Eear-;ecember 1&
1. And all other days declared by law or
ordinances to be a special holiday or non-
working day
NOTE= 1,(:'+ O regular wage plus 1>J
premium pay
n,% 1,(:'+ O none
ADDITIONAL COMPENSATION FOR
WORK ON A REST DAY; SNDAY
OR HOLIDAY WORK!
&. 6ork on a scheduled rest day - 1>J of
regular wage
/. %o regular workdays and rest days -1>J of
regular wage for work on 4undays :
8olidays
1. 6ork on 4pecial 8olidays -1>J of regular
wage
). 8oliday 6ork falls on 4cheduled -est ;ay -
5>J of regular wage
CHAPTER III
HOLIDAYS; SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
ART B#. RIGHT TO HOLIDAY PAY
HOLIDAY PAY - A dayAs pay given by law to
an employee even if he does not work on a
regular holiday. It is limited to the ten *&>,
regular holidays listed by law.
- employee should not have been absent
without pay on the working day preceding the
regular holiday
A(%. B#(.) refers to regular holidays, special
holidays are taken care of under Art. '1.
PREMIM PAY - Additional compensation for
work performed on a scheduled rest day or
holiday.
REGLAR HOLIDAYS!
&. %ew EearAs ;ay -Ianuary &
/. +aundy "hursday -+ovable date
1. @ood Driday- +ovable date
). Araw ng Cagitingan -April '
5. $abor ;ay -+ay &
9. Independence ;ay -Iune &/
(. %ational 8eroes ;ayP-$ast 4unday of
August
?. 0onifacio ;ay-%ovember 1>
'. Christmas ;ay-;ecember /5
&>. -i#al ;ay-;ecember 1>
N,%'! C,50'n)*./' 1&'%&'( 1,(:'+ ,(
-n1,(:'+.
DOBLE HOLIDAY PAY
1. />>J of the basic wage pro'ided, he works
on that day and was present or on leave
with pay on the preceding workday. If
on leave without pay, rate still applies if
leave is authori#ed.
2. )>>J if he worked F as per ;.$2 +emo if
there are / regular holidays in one day eg.
April ' and @ood Driday. Pro'ided the
employee worked on the day prior to the
regular holiday or on leave with pay or on
authori#ed absence.
1. If there are two succeeding holidays eg.,
+aundy "hursday and @ood Driday, the
employee must be present the day before
the scheduled regular holiday to be entitled
to compensation to both otherwise, he must
work on the first holiday to be entitled to
holiday pay on the second regular holiday.
REGLAR
HOLIDAY
SPECIAL
HOLIDAY
- compensable even - not compensable if
if unworked subject
to certain conditions
unworked
- limited to the &>
enumerated by the
$C
- not e!clusive since
law may provide for
other special
holidays
- rate is twice the
regular rate if
worked
- rate is &1>J if
worked
ART B8. RIGHT TO SERVICE
INCENTIVE LEAVE
SERVICE INCENTIVE LEAVE (SIL) - Dive *5,
days leave with pay for every employee
who has rendered at least one *&, year of
service.
BT DOES NOT APPLY TO THOSE
WHO ARE=
already enjoying the said benefitsB or
enjoying vacation leave with pay for at least 5
days
those employed in establishments regularly
employing less than &> employees
those employed in establishments e!empted
from granting this benefit by the 4ecretary
of $abor.
ONE (1) YEAR OF SERVICE.- service within
&/ months, whether continuous or broken,
reckoned from the date the employee started
working including authori#ed absences and paid
regular holidays unless the number of working
day in the establishment as a matter of practice
or policy, or provided in the employment contract
is less than &/ mos.
- 4I$ is commutable i.e., 3,n2'(%i./' %,
3*)&- %&' 3*)& 'J-i2*/'n% is aimed
primarily at encouraging workers to work
continuously and with dedication to the
company.
ART B9. SERVICE CHARGES
TO BE DISTRIBTED TWICE A
MONTH AND AT THE RATE OF!
&. ?5J for all covered employees to be eually
distributed among them
/. &5J for management *may answer for
losses and breakages or distributed to
management,
- If collection of service charges is *.,/i)&'+,
the share of covered employees shall be
considered in%'6(*%'+ in %&'i( 1*6') on
the basis of the average monthly share of
each employee for the past &/ months
immediately preceding the abolition.
TITLE II
WAGES
CHAPTER I
PRELIMINARY MATTERS
ART B7. DEFINITION
WAGE - the remuneration or earnings,
however designated, capable of being
e!pressed in terms of money, whether fi!ed
or ascertained on a time, task, piece, or
commission basis or other method or
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 of board,
lodging, or other facilities customarily
furnished by the employer to the employee.
FAIR DAYAS WAGE FOR A FAIR DAYAS
LABOR - if there is no work performed by
the employee, there can be no wage or
pay unless the laborer was able, willing,
and ready to work but was prevented by
management or was illegally locked out,
suspended or dismissed.
WAGE SALARY
- compensation for
manual labor
- denotes higher
degree of
employment
- %ot subject to
e!ecution
- subject to e!ecution
*@aa vs. CA,
FACILITIES F shall include all articles or
services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
employer or necessary to the conduct of the
employerAs business.
FACILITIES SPPLEMENTS
- Are items of
e!pense necessary
for the laborerAs and
his familyAs
e!istence and
subsistence
- Constitute e!tra
remuneration or
special privileges or
benefits given to or
received by the
laborers over and
above their ordinary
earnings wages
- part of the wage - independent of the
wage
- deductible from the
wage
- not wage
deductible
ART. BE. APPLICATION OF TITLE

T&i) Ti%/' )&*// n,% *00/4 %, %&'
$,//,1in6!
&. household or domestic helpers
/. homeworkers engaged in needle-work
1. workers employed in any establishment
duly registered with the %ational Cottage
Industry
). 6orkers in any duly registered cooperatives
CHAPTER II
MINIMM WAGE RATES
ART 1II. PROHIBITION AGAINST
ELIMINATION OR DIMNITION OF
BENEFITS
LEGAL REFATS. BEFORE FACILITIES
CAN BE DEDCTED FROM THE
EMPLOYEESA WAGES!
&. 3roof that such facilities are customarily
furnished by the trade B
/. <oluntarily Accepted in writing by the
employee
1. Charged at Dair : -easonable <alue
THE NON-DIMINTION RLE -the benefits
being given to employees cannot be taken
back or reduced unilaterally by the
employer because the benefit has become
part of the employment contract, written or
unwritten.
T&' (-/' i) *00/i3*./' i$ i% i) )&,1n %&*%
%&' 6(*n% ,$ %&' .'n'$i% i)!
&. based on an e!press policy, or
/. has ripened into practice over a long period
of time, and the practice is consistent and
deliberate.
1. It is not due to an error in the
construction Gapplication of a doubtful or
difficult uestion of law.
- 0ut even in cases of error, it should be
shown that the correction is being done
soon after the discovery of the error.
BONS - A supplement or employment
benefit given under certain conditions, such
as success of the business or greater
production or output. As a rule, it is an
amount granted voluntarily to an employee
for his industry and loyalty which
contributed to the success and reali#ation
of profits of the employerAs business.
"herefore, from a legal point of view, it is
not a demandable and enforceable
obligation. ,nless, it was promised to be
given without any conditions imposed for its
payment, as such, it is deemed part of the
wage.
1"
TH
MONTH PAY (OR KITS EFIVALENTL)
-additional income based on wage reuired by
3.;. ?5& which is euivalent to &G&/ of the total
basic salary earned by an employee within a
calendar year.
- may be given anytime but not later than ;ec.
/)
COVERAGE!
- All rank-and-file employees regardless of their
designation or employment status and
irrespective of the method by which their wages
are paid, are entitled to this benefit, pro'ided,
that they have 1,(:'+ $,( *% /'*)% ,n' (1)
5,n%& +-(in6 %&' 3*/'n+*( 4'*(.
FORMS!
&. Christmas bonus
/. midyear bonus
1. profit sharing paymentsB and
). other cash bonuses amounting to not less
than &G&/ of its basic salary.
- ;ifference of opinion on how to compute the
&1
th
month pay does not justify a strike
- It must always be in the form of /'6*/ %'n+'(
. Dree rice, electricity cash and stock
dividends, C.$A not euivalent
ART 1I1. PAYMENT BY RESLTS
CATEGORIES OF PIECE-RATE
WORKERS!
&. those who are paid piece rates as
prescribed in 3iece -ate .rders by the
;.$2
/. "hose who are paid output rates which are
prescribed by the employer and are not yet
approved by the ;.$2
WORKERS PAID ON PIECE-RATE BASIS -
shall refer to those who are paid a standard
amount for every piece or unit of work produced
that is more or less regularly replicated, without
regard to the time spent in producing the same.
BENEFITS PAYABLE TO PIECE-RATE
WORKERS!
&. Applicable statutory minimum daily rateB
/. Eearly service incentive leave of five days
with payB
1. %ight shift differential pay
). 8oliday pay
5. +eal and rest periods
9. ." pay *conditional,
(. 3remium pay *conditional,
8. &1
th
month pay
'. other benefits granted by law, individual or
collective bargaining agreement or company
policy or practice.
CHAPTER III
PAYMENT OF WAGES
ART 1I2. FORMS OF PAYMENT
EMPLOYER CANNOT PAY HIS
WORKERS BY MEANS OF!
&. promissory notes
/. vouchers
1. coupons
). tokens
5. tickets
9. chits
(. or any object.
GENERAL RLE!
- payment by legal tender
E=CEPTIONS!
- checks or money orders may be paid if=
&. the same is customary on the date of
effectivity of the $CB
/. necessary because of special
circumstancesB or
1. as stipulated in the C0A
ART 1I". TIME OF PAYMENT
WHEN TO PAY!
- at least once every two */, weeks or twice a
month at intervals not e!ceeding si!teen
*&9, days
- $,(3' 5*H'-(' or ,%&'(
3i(3-5)%*n3') .'4,n+ %&'
'50/,4'(A) 3,n%(,/, payment must be
made immediately after such occurrence
have ceased.
ART.1I#. PLACE OF PAYMENT
WHERE TO PAY!
- 4hall be made at or near the place of
undertaking,
E=CEPTIONS!
&. 6hen payment cannot be effected at or near
the place of work by reason of deterioration
of peace and security
/. 6hen the employer provides for free
transportation to the employees back and
forthB
1. And under analogous circumstances
- payment of wages in bars, night or day
clubs, massage clinics or similar
establishments are prohibited e!cept for the
workers therein.
PAYMENT THR BANKS!
REFISITES !
&. "here must be written permission of the
majority of the employees concerned in an
establishmentB
/. "he establishment must have /5 or more
employeesB and
1. "he bank must be located within one
kilometer radius to the bank from the
location of the establishment
- payment through the A"+ is allowed
ART 1I8. DIRECT PAYMENT OF
WAGES
TO WHOM PAID
- wages shall be paid directly to the workers
to whom they are due.
E=CEPTIONS!
a. in case of force majeureGspecial
circumstances, payment may be made
through another person under written
authority where the worker has died, the
b. employer may pay the wages of the
deceased worker to the heirs of the latter,
through the 4ecretary of $abor or his
representative, without the necessity of
intestate proceedings, after the heirs have
e!ecuted an affidavit attesting to their
relationship to the deceased and the fact
that they are his heirs to the e!clusion of all
others
ART 1I9. CONTRACTOR OR
SBCONTRACTOR
LABOR ONLY CONTRACTING - where the
person supplying workers to an employer does
not have )-.)%*n%i*/ 3*0i%*/ ,( in2')%5'n% in
the form of tools, euipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
performing activities which are directly related to
the principal business of such employer.
INDEPENDENT CONTRACTOR - one who
e!ercises independent employment and
contracts to do a piece of work according to his
own methods and without being subject to
control of his employer e!cept as to the result
thereof.
- A 5'(' )%*%'5'n% in * 3,n%(*3% with a
company that laborers who are paid
according to the amount and uality of work
are independent contractors +,') n,%
3&*n6' %&'i( )%*%-) *) 5'(' '50/,4'')
in 3,n%'50/*%i,n ,$ /*.,( /*1).
REFISITES FOR A CONTRACTING
OR SBCONTRACTING TO BE !
&. where the contractor or subcontractor
carries on a distinct and independent
business and undertakes to perform the job
on his own account and under his own
responsibility, according to its own manner
and method and free from the control and
direction of the principal in all matters
connected with the performance of the work
e!cept as to the results thereofB
/. the contractor or subcontractor has
substantial capital or investmentB and
1. the agreement between the principal and
contractor or subcontractor assures the
contractual employees entitlement to all
labor and occupational safety and health
standards, free e!ercise of the right to self-
organi#ation, security of tenure and social
and welfare benefits.
- S-.)%*n%i*/ 3*0i%*/ n''+ n,% .' 3,-0/'+
1i%& in2')%5'n% in %,,/) ,( 'J-i05'n%.
"his is clear from the use of the conjunction
K,(L.
?OB
C
O
NT
R
A
CT
IN
G
LABOR ONLY
CONTRACTING
&. %o 2- 2
relationship e!ist
between
employer and the
contractorAs
employee e!cept
when the
contractor or
subcontractor
fails to pay the
wages of his
employees
&. 2mployer is treated
as direct employer
of the person
recruited in all
instances
/. liability is limited
to unpaid wages
and other labor
standards
violations
/. liable to all rights
duties and liabilities
under labor
standards laws
including the right to
self- organi#ation
1. 3ermissible 1. 3rohibited by law
). Contractor has
substantial capital
or investment
). Contractor has no
substantial capitalG
investment
WORKING CONDITIONS - -efers to the
terms and circumstances affecting the
employment of an employee, including
policies, programs and regulations
governing his employment status, work,
and work relationships. "hey are, as a rule,
determined by the employer.
ART. 11I. WORKER PREFERENCE IN
CASE OF BANKRPTCY
- "his Article did not sweep away the
overriding preference accorded under the
scheme of the Civil Code to ta! claims of the
government.
- just a preference, must yield to special
preferred credit, e.g. secured creditors
- "he $,(5*/ +'3/*(*%i,n ,$ in),/2'n34 ,(
.*n:(-0%34 ,( * H-+i3i*/ /iJ-i+*%i,n ,$ %&'
'50/,4'(A) .-)in')) is a condition sine
ua non to the operation of the preference
accorded to workers under Art. &&>.
CHAPTER IV
PROHIBITIONS REGARDING WAGES
ART 112. NON-INTERFERENCE IN
DISPOSAL OF WAGES
In ('/*%i,n %, %&' Ci2i/ C,+'!
A(%. 17I8. "he laborerAs wages shall be paid in
legal currency.
A(%. 17I9. 6ithholding of the wages e!cept for
a debt due, shall not be made by the employer
A(%. 17I7. "he laborerAs wages shall be a lien
on the goods manufactured or the work done.
A(%. 17IE. "he laborerAs wages shall not be
subject to e!ecution or attachment e!cept for
debts incurred for food, shelter, clothing, and
medical attendance.
A(%. 17IB. "he employer shall neither sei#e nor
retain any tool or other articles belonging to the
laborer.
PROHIBITIONS REGARDING WAGES!
&. 3ayment of wages with less freuency than
once *&, a month.
/. $imitationsGInterference by the employer
with the employees freedom to dispose of
his wages.
1. Dorcing, CompellingG.bliging employees to
purchase merchandise , commodities or
other properties from the employer or from
any other person, or to make use of any
store or service of such employer or any
other person
). 6ithholding of wages
5. ;eduction of wages as consideration of a
promise of employment or retention in
employment
9. -efusal to payG -eduction of wages and
benefits, dischargeG discrimination against
any employee as retaliatory measures
against any employee who has filed any
complaint or instituted any proceedings
against his employer
ART 11". WAGE DEDCTION
ALLOWABLE DEDCTIONS!
WITH EMPLOYEES CONSENT!
&. 444 3ayments
/. +2;ICA-2
1. Contributions to 3A@-I0I@ Dunds
). value of meals and others
5. payments to third persons with employees
consent
9. deduction of absences
W<OT EMPLOYEES CONSENT!
&. 6orkerAs insurance acuired by the employer
/. 7nion ;ues, where the right to check-off has
been recogni#ed by the employer
1. Cases where the employer is authori#ed by
law or regulations issued by the 4ecretary of
$abor
). debts of the employee to the employer which
have become due and demandable
ART 11#. DEPOSITS FOR LOSS OR
DAMAGE

- D'0,)i%) $,( L,)) ,( D*5*6' to tools,
materials and euipment supplied by the
employer )&*// n,% .' 5*+', E=CEPT
when the trade, occupation or businesses of
the employer recogni#es, or considers the
0(*3%i3' of making deductions or reuiring
deposits necessary or desirable.
REFISITES FOR DEDCTION FOR
LOSS OR DAMAGE !
&. employee clearly shown responsible
/. opportunity to show cause to show why
deduction should not be made
1. deduction is fair and reasonable and shall
not e!ceed the actual loss or damage
). does not e!ceed />J of the employees
wages in a week.
CHAPTER V
WAGE STDIES; WAGE
AGREEMENTS AND WAGE
DETERMINATION
ART 122. CREATION OF THE
REGIONAL TRIPARTITE WAGES AND
PRODCTIVITY BOARDS
WHO MAY SET MINIMM WAGE!
&. -egional "ripartite 6ages and 3roductivity
0oard
/. Congress
MINIMM WAGE - "he lowest wage rate fi!ed
by law that an employer can pay his
employees.
ART. 12" WAGE ORDER
WAGE ORDER F an order issued by the
-egional 0oard whenever the conditions in the
region so warrant after investigating and
studying all pertinent facts and based on the
standards and criteria prescribed by the $C, the
-egional 0oard proceeds to determine whether
to issue the same or not.
EFFECTIVITY ,$ * 1*6' O(+'( F it shall take
effect after &5 days from the its complete
publication in at least one newspaper of general
circulation in the region.
FREFENCY ,$ * 1*6' ,(+'( - 6age .rder
issued by the 0oard may not be disturbed for a
period of &/ months from its effectivity and no
petition for wage increase shall be entertained
during said period. E=CEPTION= 6hen
Congress itself issues a law increasing wages.
ART 12#. STANDARDS<CRITERIA FOR
MINIMM WAGE FI=ING
FACTORS FOR DETERMINING
REGIONAL MINIMM WAGE RATES
(DACNNIPFEE)
&. ;emand for living wagesB
/. 6age Adjustment vis-a vis the consumer
price inde!B
1. Cost of living and changes or increases
thereinB
). %eeds of workers and their familiesB
5. %eed to induce industries to invest in the
countrysideB
9. Improvements in standards of livingB
(. 3revailing wage levelsB
?. Dair -eturn of the capital invested and
capacity to pay of employersB
'. 2ffects on 2mployment @eneration and
Damily IncomeB
&>. 2uitable ;istribution of Income : 6ealth
along the imperatives of economic and
social development
WAGE DISTORTION - situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
uantitative 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.
CORRECTING WAGE DISTORTION
ni,niG'+ E)%*./i)&5'n%
&. %egotiate to correct the distortion.
/. Any dispute arising therefrom should be
resolved through grievance procedure under
their C0A.
1. If the dispute remains unresolved, through
voluntary arbitration.
E)%*./i)&5'n%) 1i%&,-% ni,n)
&. "he employers and workers shall endeavor
to correct the distortion.
/. Any dispute arising therefrom shall be
settled through the %C+0 and
1. If it remains unresolved after &> days of
conciliation, it shall be referred to the %$-C.
- W*6' +i)%,(%i,n i) n,n- )%(i:'*./'.
Is the employe le!"lly o#l$!e% to ty
& 'oe't " ("!e %$stot$o)*
I% *00'*() ),. A(%i3/' 12# ,$ %&' C,+'
provides that N the employer and the union shall
negotiate to correct the distortions.H If there is
no union, N the employer and the workers shall
endeavor to correct such distortions.
M+st the pe,$o+s p"y !"ps #e
estoe%*
6hile that is the aim, it need not
necessarily be restored to the last peso. An
*00('3i*./' +i$$'('n%i*/, a significant pay gap
should suffice as correction of the distortion.
CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
ART. 12E. VISITORIAL AND
ENFORCEMENT POWER
ART. 12B. RECOVERY OF WAGES;
SIMPLE MONEY CLAIMS AND OTHER
BENEFITS
- n+'( A(%. 12B , the -egional ;irector is
empowered through summary proceeding
and after due notice, to hear and decide
cases involving recovery of wages and other
monetary claims and benefits, including
legal interests.
REFISITES !
&. "he claim is presented by an employee or
person employed in domestic or household
service or househelperB
/. "he claim arises from employer-employee
relationsB
1. "he claimant does not seek reinstatementB
and
). "he aggregate money claim of each
employee or househelper does not e!ceed
35, >>>.>>
- A33')) %, '50/,4'(A) ('3,(+) *n+
0('5i)')
the dayGnight whenever work is being
undertaken therein
includes the right to copy therefrom,
to uestion any employee : investigate
any fact, condition or matter which may
be necessary to determine violations or
which may aid in the enforcement of the
Code and of any labor law, wage order,
or rules and regulations
- I))-' C,50/i*n3' O(+'() (ART. 12E)
based on the findings of labor
employment and enforcement officers or
industrial safety engineers made in the
course of inspection
- I))-' W(i%) ,$ E7'3-%i,n (ART. 12E)
for the enforcement of orders
e-'ept in cases where the employer
contests the findings of the said labor
officers and raises issues supported by
documentary proofs which were not
considered in the course of inspection.
- O(+'( W,(: S%,00*6'<S-)0'n)i,n ,$
O0'(*%i,n)
when non-compliance with the law or
implementing rules and regulations
poses grave : imminent danger to the
health and safety of the workers in the
workplace.
- C,n+-3% H'*(in6) 1i%&in 2# &,-()
to determine whether an order for
stoppage of workGsuspension of
operations shall be lifted or not.
employer shall pay the employees
concerned their salaries in case the
violation is attributable to his fault
- R'J-i(' '50/,4'() %, :''0 *n+ 5*in%*in
E50/,45'n% R'3,(+)
- as may be necessary in aid of his
visitorial and enforcement powers
ART 12E ART 12B
&. <isitorial and
enforcement
power of the
4ecretary of
$abor Ghis duly
authori#ed
representatives
e!ercised through
routine
inspections of
establishments
&. 3ower of the
-egional ;irector or
any duly authori#ed
hearing officers to
hear and decide
matters involving
the recovery of
wages, upon
complaint of any
interested party
/. reuires the
e!istence of 2-2
-elationship
/. 2-2 relationship not
necessary since it
should not include a
claim for
reinstatement
1. %o limit as to
amount of claim
1. Aggregate claim of
each complainant
does not e!ceed
35,>>>
). Appeal is with
4ec.of $abor B
period of appeal
is &> calendar
days
). Appeal with %$-CB
period of appeal is
5 calendar days
5. 3erson e!ercising
the power is the
4ec. .f $abor or
any of his duly
authori#ed
representatives
who may or may
not be a regional
director
5. "he power is
vested upon a
regional director or
any duly authori#ed
hearing officer of
the ;.$2.
TITLE III
WORKING CONDITIONS FOR
SPECIAL GROP OF EMPLOYEES
CHAPTER I
EMPLOYMENT OF WOMEN
ART 1"I. NIGHTWORK PROHIBITION
- N, 1,5*n , regardless of age, shall be
employed or permitted or suffered to work,
with or without compensation in any =
&. Industrial undertaking between &>3+-9A+
/. CommercialG%on-Industrial undertaking
between &/ +%-9A+
3. Agricultural undertaking at nighttime unless,
she is given a period of rest of not less than
' consecutive hours
ART 1"1. E=CEPTIONS
&. ActualGImpending 2mergencies
caused by serious accident, flood,
typhoon, 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
/. 7rgent work to be performed on
machineries, euipment or installation, to
avoid serious loss
1. 6ork is necessary to prevent serious loss of
perishable goods
). 6here she holds a responsible position of
managerialGtechnical natureGengaged to
provide health and welfare service
5. %ature of the work reuires the manual skill
and de!terity of women workers : cannot be
performed with eual efficiency by male
workers
9. 6here women workers are immediate family
members of the family operating the
establishment or undertaking
(. Analogous cases
ART 1"2. FACILITIES FOR WOMEN
"he 4ecretary of $abor may reuire
employers to=
&. 3rovide seats proper for women and permit
them to use the seats when they are free
from work or during office hours provided
the uality of the work will not be
compromisedB
/. "o establish separate toilet rooms and
lavatories for men and women and provide
at least a dressing room for womenB
1. "o establish a nursery in the establishmentB
). "o determine appropriate minimum age and
other standards for retirement or termination
in special occupations such as those of flight
attendants and the like
ART. 1"" MATERNITY LEAVE
BENEFITS
MATERNITY LEAVE NDER THE SSS
LAW
A female member, who need not be
legally married, who has paid for *% /'*)% %&(''
(") 5,n%&/4 3,n%(i.-%i,n) in the &/-month
period immediately preceding the semester of
her childbirth or miscarriage shall be paid a daily
maternity benefit euivalent to &>>J of her
average daily salary credit for 9> days or (?
days, in case of caesarian delivery.
REFISITES !
&. 2mployee notified her employer of her
pregnancy of the probable date of her
childbirth
/. Dull payment be advanced by the employer
within 1> days from the filing of the maternity
leave application
1. "hat payment of daily maternity benefits
shall be a bar to the recovery of sickness
benefits
). "hat the maternity benefits shall be paid
only for the first four *), deliveries or
miscarriages
5. "hat the 444 shall immediately reimburse
the employer of &>>J of the amount of
maternity benefits advanced to the
employee by the employer
9. "hat if an employee member should give
birth or suffer a miscarriage without the
reuired contributions having been remitted
for her by her employer to the 444, or
without the latter having been previously
notified by the employer of the time of the
pregnancy, the employer shall pay to the
444 damages euivalent to the benefits
which said employee member would
otherwise have been entitled to.
- ART 1"" (.) )-.)i)%) , i.e., the maternity
leave shall be e!tended 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 e!tended
leave may be charged.
LIMIT OF THE BENEFIT! Applies only for the
first four deliveries irrespective of who is the
father of the children, and may not be availed of
in addition to sickness benefit under the 4ocial
4ecurity program.
RA E1E7 (PATERNITY LEAVE)
- "his law grants paternity leave of )'2'n +*4
1i%& $-// 0*4 to all married male employees
in the private and public sectors.
- It is available only for the $i()% $,-(
+'/i2'(i') ,$ %&' /'6i%i5*%' )0,-)' with whom
the husband is cohabiting.
DELIVERY F includes childbirth, miscarriage, or
abortion.
P-(0,)'= to enable the husband to lend support
to his wife during the period of recovery andGor in
the nursing of the newly born child.
CONDITIONS !
&. he is an employee at he time of the delivery
of his childB
/. he is cohabiting with his spouse at the time
she gives birth or suffers a miscarriageB
1. he has applied for paternity leave B and
). his wife has given birth or suffered a
miscarriage
- 3aternity leave, if not availed of, is n,%
3,n2'(%i./' %, 3*)&.
WIFE - refers to the lawful wife which means the
woman who is legally married to the male
employee concerned.
- 6here the male employee is already
enjoying the paternity leave by reason of
any law, decree, e!ecutive orders or any
contract, agreement or policy between
employer and employee and the e!isting
paternity benefit is greater, %&' 6('*%'(
.'n'$i% )&*// 0('2*i/D i$ /'))'(; %&'
'7i)%in6 .'n'$i% )&*// .' *+H-)%'+ %, %&'
'7%'n% ,$ %&' +i$$'('n3'.
ART 1"8. 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 se!.
A3%) ,$ Di)3(i5in*%i,n!
a. 3ayment of a lesser compensation for work
of eual value.
b. Davoring a male employee over a female
employee solely on the account of their
se!es.
S'7-*/ H*(*))5'n% in * W,(:-R'/*%'+ ,(
E50/,45'n% En2i(,n5'n% !
&. the se!ual 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,
conditions, promotions, or privilegesB
or the refusal to grant the se!ual favor
results in limiting, segregating or
classifying the employee which in
anyway would discriminate, deprive or
diminish employment opportunities or
otherwise adversely affect said
employee
/. the above acts would impair the
employeeAs rights or privileges under
e!isting labor laws or
1. "he above acts would result in an
intimidating, hostile, or offensive
environment *4ec. 1QaR, -A %o. (?((,
ART 1"9. STIPLATION AGAINST
MARRIAGE
- it shall be unlawful for an employer to reuire
as a condition for employment or continuation of
employment that a woman employee shall not
get married, or to stipulate e!pressly 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 1"E. CLASSIFICATION OF
CERTAIN WOMEN WORKERS
- Any woman who is permitted to work or
suffered to work, with or without
compensation, in any night club, cocktail
lounge, massage clinic, bar or similar
establishment, under the effective control or
supervision of the employer for a substantial
period of time as determined by the
4ecretary of $abor, shall be considered as
an employee of such establishment for
purposes of labor and social legislation.
CHAPTER II
EMPLOYMENT OF MINORS
ART 1"B. MINIMM EMPLOYABLE
AGE
- Any person between ages &5 and &? may
be employed in any non ha#ardous work.
E73'0%i,n *n+ 3,n+i%i,n ,n %&'
'50/,45'n% ,$ * 3&i/+ .'/,1 18!
&. 6hen the child works directly under the sole
responsibility of hisGher parents or legal guardian
who employs members of hisGher family only
under the following conditions=
a. employment does not endanger the
childAs life, safety, health and morals
b. employment does not impair the childAs
normal development
c. the parentGlegal guardian provides the
child with the primary andGor secondary
education prescribed by ;2C4
/. 6here the childAs employment or participation
in public entertainment or information through
cinema, theater, radio, or television is essential,
provided that=
a. employment does not involve
advertisements or commercials
promoting alcoholic beverages,
into!icating drinks, tobacco and its by-
products or e!hibiting violenceB
b. "here is a written contract approved
by the ;.$2B and
c. "he conditions prescribed for the
employment of minors Sabove statedT
are met.

NONHA>ARDOS WORK OR NDERTAKING
F one where the employee is not e!posed to any
risk which constitutes an imminent danger to his
safety and health.
HA>ARDOS WORKPLACES!
&. 6here the nature of the work e!poses the
workers to dangerous environmental
elements, contaminants or work conditionsB
/. 6here the workers are engaged in
construction work, logging, fire-fighting,
mining, uarrying, blasting, stevedoring,
dock work, deep-sea fishing, and
mechani#ed farmingB
1. 6here the workers are engaged in the
manufacture or handling of e!plosives and
other pyrotechnic productsB
). 6here the workers use or are e!posed to
heavy or power-driven machinery or
euipmentB and
5. 6here the workers use or are e!posed to
power-driven tools,
CHAPTER III
EMPLOYMENT OF HOSEHELPERS
RIGHTS OF HOSEHELPERS!
&. minimum cash wage
/. non-assignment to non- household work
1. opportunity for education= if under &? *cause
of education part of compensation,
). boardG lodging, medical attendance
5. just and humane treatment
9. indemnity for unjust termination of services
(. just causes for termination
?. right not to be reuired to work more than &>
hours a day
'. for days vacation each month
&>. to regular wages if employed in industrial or
commercial or agricultural undertaking
&&. funeral e!penses must be paid by employer
if the househelper has no relatives with
sufficient means in the place where the head
of the family lives.
&/. at least elementary education
&1. employment certification
CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
INDSTRIAL HOMEWORK - a system of
production under which work for an employer or
contractor is carried out by a homeworker at his
home.
INDSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
BOOK FOR
HEALTH; SAFETY AND SOCIAL
WELFARE BENEFITS
TITLE I
MEDICAL; DENTAL AND
OCCPATIONAL SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
ART 189. FIRST-AID TREATMENT
FIRST-AID TREATMENT F adeuate,
immediate, and necessary medical and dental
attention or remedy given in case of injury or
illness suffered by a worker during employment,
irrespective of whether or not such injury or
illness is work-connected, before a more
e!tensive medical andGor dental treatment can
be secured.
FIRST AIDER F any person trained and duly
certified as ualified to administer first aid by the
3hil. %ational -ed Cross or by any other
organi#ation accredited by the former.
TITLE II
EMPLOYEESA COMPENSATION AND
STATE INSRANCE FND
WORKMENAS COMPENSATON- A general
and comprehensive term applied to those laws
providing for compensation for loss resulting
from the injury, disablement or death of a
workman through industrial accident, casualty or
disease.
COMPENSATION - +oney relief afforded
according to the scale established under the
statute as differentiated from compensatory
damages recoverable in an action at law for
breach of contract or for tort.
6.-C+2%A4
C.+32%4A"I.%
AC"
2+3$.E224
C.+32%4A"I.%
$A6
&. "here is a
presumption of
compensability
&. no presumption of
compensability
/. there is a
presumption of
aggravation
/. no presumption of
aggravation
1. there is a need for
the employer to
controvert the
claim within &)
days otherwise
he is deemed to
have waived the
right
1. no need for the
employer to
controvert
). payment of
compensation
made by the
employer
). payment of
compensation
made by 444G@4I4
through the 4tate
Insurance Dund
ART 19#. DEFINITION OF TERMS.
IN?RY - Any harmful change in the human
organism from any accident arising out of and in
the course of employment.
GRONDS FOR AN IN?RY TO BE
COMPENSABLE
&. the employee must have been injured at the
place where the work reuires him to be
/. the employee must have been performing
his official functions
1. if the injury is sustained elsewhere, the
employee must have been e!ecuting an
order for the employer
). the injury was not due to the employeeAs
into!ication, willful intention to injure or kill
himself or another, notorious negligence or
otherwise prohibited under this "itle.
SICKNESS - Any illness definitely accepted
as an occupational disease listed by the
Commission ,( any illness caused by
employment subject to proof that the risk of
contracting the same is increased by working
conditions.
C,n+i%i,n) $,( *n ,33-0*%i,n*/
+i)'*)' *n+ %&' (')-/%in6 +i)*.i/i%4 ,(
+'*%& %, .' 3,50'n)*./' !
&. "he employeeAs work must involve the risk
described therein
/. "he disease was contracted as a result of
the employeeAs e!posure to the described
risksB
1. "he disease was contracted within a period
of e!posure and under such other factors
necessary to contract itB
). "here was no notorious negligence on the
part of the employee
DEATH - $oss of life resulting from injury
or sickness
DISABILITY -$oss or impairment of a
physical or mental function resulting from injury
or sickness.
DIRECT PREMISES RLE @ as a general
rule, the accident should have occurred at the
place of work to be compensable

E=CEPTIONS TO THE DIRECT
PREMISES RLE
1. INGRESS- EGRESS< PRO=IMITY RLE-
when the employer is about to leave or
about to enter the premises of the employer
by way of the customary or e!clusive means
of ingress or egress.
2. GOING TO OR COMING FROM WORK-
when the injury occurred when the
employee is proceeding to or from his work
on the premises of the employer
must be * 3,n%in-in6 *3% and has not
diverted therefrom by any other activity
and he has not departed from his usual
route to or from his workplace and if the
employee is on a special errand, it must
have been official and in connection with
his work.
1. E=TRA-PREMISES RLE F *or the shuttle
bus rule, where the company provides the
means of transportation in going to or
coming from the place of work is liable to the
injury sustained by the employees while on
board said means of transportation.
). SPECIAL ERRAND RLE F injury
sustained outside the company premises is
compensable if his being out is covered by
an office order or a locator slip or a pass for
official business.
5. DAL PRPOSE DOCTRINE F allows
compensation where a special trip would
have to be made for the employer if the
employee had not combined the service for
the employer with his own going or coming
trip.
9. SPECIAL ENGAGEMENT RLE F covers
field trips, outings, intramurals and picnics
when initiated or sanctioned by the employer
(. POSITIONAL AND LOCAL RISKS
DOCTRINE F If an employee by reason of
his duties is e!posed to a special or peculiar
danger from the elements, that is, one
greater than that to which other persons in
the community are e!posed and an
une!pected injury occurs, the injury is
compensable
?. FORCE MA?ERE OR AN ACT OF GOD -
when one in the course of his employment is
reasonably reuired to be at a particular
place at a particular time and there meets an
accident although one which any other
person then and there present would have
met irrespective of his employment.
CHAPTER II
COVERAGE AND LIABILITY
ART 19E. COMPLSORY COVERAGE
- 2C$ applies to all employers, public or
private, and to all employees, public or
private including casual, emergency,
temporary, or substitute employees.
- 2very employee is covered who is not over
9> years over 9> years of age or over 9>
years of age if he had been paying
contributions prior to the age of 9>
ART 17I. EFFECTIVE DATE OF
COVERAGE
- "he employer is covered compulsorily from
first day of operation and the employee from
the first day of employment
ART 172. LIMITATIONS OF LIABILITY
- NO COMPENSATION can be obtained if the
injury, death or disability is * (')-/% ,$ %&'
'50/,4''A)=
&. Into!icationB
/. 6illful intention to injure or kill himself or
anotherB
1. %otorious negligenceB or
). 7nless otherwise provided by the $C
NOTORIOS NEGLIGENCE Fdeliberate act
of the employee to disregard his own personal
safety.
Is %e"th tho+!h s+$'$%e 'ompe)s"#le *
As a rule %.. 8owever as held in NAESS
2). NLRC, the supreme court ruled that a self
inflicted death could be compensable if =
&. by agreement of the parties
/. "he suicideGdeath is caused by a work
related or compensable illness or
disease.
ART 17". E=TENT OF LIABILITY
- Si5-/%*n',-) ('3,2'(4 under the $abor
Code and the Civil Code 3*nn,% .' 5*+'.
"he action is selective and the employee
may either choose to $i/' %&' 3/*i5 -n+'(
'i%&'(. 0ut once the election is made, the
claimant cannot opt for the other remedy.
- 4imultaneous recovery -n+'( %&' LC *n+
%&' SSS 3*n .' 5*+' as per an *+2i),(4
,0ini,n +*%'+ M*4 2"; 1BEB ,$ S'3. D(i/,n
)in3' PD 1B21 &*) /i$%'+ %&' .*n ,n
)i5-/%*n',-) ('3,2'(4.
STATE INSRANCE FND= all covered
employers are reuired to remit to a common
fund a monthly contribution euivalent to one
percent of the monthly salary credit of every
covered employee. "he employee pays no
contribution to the fund. Any agreement to the
contrary is prohibited.
CHAPTER VI
DISABILITY BENEFITS
DISABILITY CATEGORIES!
TEMPORARY TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period not e!ceeding &/> days
PERMANENT TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period e!ceeding &/> days
PERMANENT PARTIAL - if as a result of the
injury or sickness, the employee suffers a
permanent partial loss of the use of any part of
his body.
DEATH BENEFITS
- "he 4ystem shall pay to the primary
beneficiaries upon the death of the covered
employee an amount eual to his monthly
income benefit, plus ten percent thereof for
each dependent child, but not e!ceeding
five, beginning with the youngest and
without substitution. "he income benefit
shall be guaranteed for five years.
DEPENDENTS!
&. the legitimate, legitimated, legally adopted or
acknowledged natural child who is
unmarried, not gainfully employed and not
over /& years of age or over /& years of
age provided that he is incapable of self-
support due to a physical or mental defect
which is congenital or acuired during
minority
/. legitimate spouse living with the employee
1. the parents of said employee wholly
dependent upon him for regular support
BENEFITS
&. for life to the primary beneficiaries,
guaranteed for five years
/. for not more than 9> months to the
secondary beneficiaries in case there are no
primary beneficiaries
1. in no case shall the total benefit be less that
3 &5, >>>.>>
THE BENEFICIARIES ARE=
PRIMARY BENEFICIARIES
a. ;ependent spouse until he remarries
b. dependent children * legitimate, legitimated,
natural born or legally adopted,
SECONDARY BENEFICIARIES
a. Illegitimate children and legitimate
descendants
b. parents, grandparents, grandchildren
BOOK FIVE
LABOR RELATIONS
TITLE I
POLICY AND DEFINITIONS
ART 211. DECLARATION OF POLICY
LABOR RELATIONS LAW - Concerned with
the stabili#ation of relations of employer
and
employees and seeks to forestall and adjust
grievances through - the encouragement of
collective bargaining and the settlement of
labor disputes through conciliation,
mediation and arbitration.
- Absent an employer-employee relation,
there is no labor relations to speak of.
PARTIES TO LABOR RELATIONS
CASES!
&. "he employeeAs organi#ation,
/. management, and
1. the public
- "he public is always to be considered in
disputes between labor and capital, and it
ahas been held that the (i6&%) ,$ %&'
6'n'(*/ 0-./i3 *(' 0*(*5,-n%.
- L*.,( ('/*%i,n) 0,/i34 -n+'( %&' LC i)
'5.,+i'+ in S'3%i,n " A(%i3/' =III ,$ %&'
1BE7 Constitution which guarantees to all
workers their right among others to self-
organi#ation, collective bargaining and
negotiations, peaceful land concerted
activities including the right to strike in
accordance with law, and to participate in
policy and decision making processes
affecting their rights and benefits as may be
provided by law.
ART. 212. DEFINITIONS
LABOR DISPTE INCLDES!
&. any controversy or matter concerning terms
or conditions of employment or
/. the association or representation of persons
in negotiating, fi!ing, maintaining, charging
or arranging the terms and conditions of
employment, regardless of whether the
disputants stand in the pro!imate relation of
employer and employee.
EMPLOYEE- shall not be limited to the
employees of a particular employer.
- i% )&*// in3/-+' *n4 in+i2i+-*/ 1&,)'
1,(: &*) 3'*)'+! *) * (')-/% ,$ ,( in
3,nn'3%i,n 1i%& *n4 3-(('n% /*.,(
+i)0-%'D ,( .'3*-)' ,$ -n$*i( /*.,(
0(*3%i3'
- I$ &' &*) n,% ,.%*in'+ *n4 ,%&'(!
1. 4ubstantially euivalent *n+
/. 3ermanent employment