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LABOR LAW 1

1
st
Semester, AY 2008-2009
Prof. E. (Leo) D. Battad
Coege of Law
Unversty of the Phppnes
SUGGESTED TEXTBOOK:
CA Azucena, The Labor Code wth Comments and
Cases (Latest Edton)
REFERENCES:
Samson S. Acantara, and Samson B. Acantara |r.,
Phppne Labor and Soca Legsaton Annotated
1987 Phppne Consttuton
The Labor Code of the Phppnes and ts
Impementng Rues &
Reguatons
Pertnent Internatona Human Rghts Instruments
and ILO Conventons, Recommendatons and Labor-
reated aws
Assgned Readngs
l. lNTRODUCTlON TO LABOR LAW
A. Labor as a Concept
1. Genera Sense
Labor! physca to athough t does not necessary
excude the appcaton of sk, thus there s sked
and unsked abor.
Sk! famar knowedge of any art or scencem
unted wth radness and dexterty n executon or
performance or n the appcaton of the art or
scence to practca purposes.
Work s broader than abor as work covers a forms
of physca or menta exerton, or both combned, for
the attanment of some ob|ect other than recreaton
or amusement per se.
2. Technca sense
Worker! broader than empoyee as workers may
refer to sef-empoyed peope, and those workng n
the servce and under the contro of another,
regardess of rank, tte, or nature of work.
Empoyee! saared person workng for another who
contros or supervses the means, manner or method
of dong the work.
B. Labor Law
1. Defnton
Labor egsaton ! abor standards + abor reatons
a. conssts of statutes, reguatons and
|ursprudence
b. governng the reatons between capta and
abor
c. by provdng for certan empoyment
standards and a ega framework
d. for negotatng, ad|ustng and admnsterng
those standards and other ncdents of
empoyment.
Labor standards: whch sets out the mnmum
terms, condtons, and benefts of empoyment that
empoyers must provde or compy wth and to whch
empoyees are entted as a matter of ega rght.
Labor relations law: whch defnes the status,
rghts and dutes and the nsttutona mechansms
that govern the ndvdua and coectve nteractons
of empoyers, empoyees or ther representatves.
SOCIAL LEGISLATION VS. LABOR LAWS
Soca egsaton: provdes partcuar knds of
protecton or benefts to socety or segments thereof
n furtherance of soca |ustce.
Labor aws are necessary soca egsaton. But to
dfferentate, abor aws drecty affect empoyment
whe soca egsaton governs effects of
empoyment.
Labor aws are soca egsaton but not a soca
egsaton are abor aws.
2. Soca |ustce, Const., Art. II, Sec. 10; Art.
XIII, Sec. 1-3
Section 10. The State shall promote social justice in
all phases of national development.
Section 1. The Congress shall give highest priority to
the enactment of measures that protect and enhance
the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing
wealth and political power for the common good.
To this end, the State shall regulate the acquisition,
ownership, use, and disposition of property and its
increments.
Section 2. The promotion of social justice shall
include the commitment to create economic
opportunities based on freedom of initiative and self-
reliance.
ARTCLE X LABOR
Section 3. The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment and
equality of employment opportunities for all.
t shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be entitled
to security of tenure, humane conditions of work, and
a living wage. They shall also participate in policy and
decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between
workers and employers, recognizing the right of labor
to its just share in the fruits of production and the right
of enterprises to reasonable returns to investments,
and to expansion and growth.
The am and the reason and, therefore, the
|ustfcaton of abor aws s soca |ustce.
Social ]ustice: |P Laure n Caaang! nether
communsm, nor despotsm, nor atomsm not
anarchy but the humanzaton of aws and the
equazaton of soca and economc forces by the
State so that |ustce n ts ratona and ob|ectvey
secuar concepton may at east be approxmated.
The promoton of the wefare of a the peope, the
adopton by the Government of measures cacuated
to nsure economc stabty of a the component
eements of socety through the mantenance of
proper economc and soca equbrum n the
nterreatons of the members of the communty,
consttutonaty, through the adopton of measures
egay |ustfabe, or extra-consttutonay, through
the exercse of powers underyng the exstence of a
governments, on the tme-honored prncpe of salus
populi est suprema lex.
Labor s the prmary soca economc force, thus the
State sha protect the rghts of workers and promote
ther wefare.
Constitutional Rights and Mandates
The State sha afford fu protecton to abor and ths
s found n the 1935, 1973, and 1987 Const. The
State affrms abor as a prmary soca economc
force thus, t sha protect the rght of the workers
and promote ther wefare.
Basc rghts of workers guaranteed by the const:
1. Rght to organze themseves
2. Conduct coectve barganng or
negotaton wth management
3. Engage n peacefu concerted
actvtes, ncudng to strke n
accordance wth aw
4. En|oy securty of tenure
5. Work under humane condtons
6. Receve a vng wage
7. Partcpate n pocy and decson-
makng processes affectng ther
rghts and benefts as may be
provded by aw. (Sec. 3, XIII).
Other provsons n the Const:
1) Rght to form unons, assocatons, socetes
for purposes not contrary to aw.
2) Rght to sef organzaton sha not be dened
to government empoyees.
3) Reguar farmworkers sha have the rght to
own drecty or coectvey the ands they
t.
4) The State sha by aw and for common
good, undertake n cooperaton wth the
prvate sector a contnung program of
urban and reform and housng.
5) The State sha protect workng women by
provdng safe and heathfu workng
condtons takng nto account ther
materna functons.
6) Labor s entted to seats aotted to party-
st representatves
7) The State sha promote ndustrazaton
and fu empoyment based on sound
agrcutura deveopment and agraran
reform.
8) Congress sha create an agency to promote
the vabty and growth of cooperatves.
9) The Govt sha ncrease saary scaes of the
other offcas and empoyees of the
Natona Government.
10) Career cv servce empoyees sha be
entted to approprate separaton pay and
to retrement and other benefts under
exstng aws.
a. Defnton/Baancng of Interest
Caaang v. Wams, 70 Ph. 726 (1940)
Social ]ustice: |P Laure n Caaang! nether
communsm, nor despotsm, nor atomsm not
anarchy but the humanzaton of aws and the
equazaton of soca and economc forces by the
State so that |ustce n ts ratona and ob|ectvey
secuar concepton may at east be approxmated.
Soca |ustce s the promoton of the wefare of a
the peope, the adopton by the Government of
measures cacuated to nsure economc stabty of
a the component eements of socety through the
mantenance of proper economc and soca
equbrum n the nterreatons of the members of
the communty, consttutonaty, through the
adopton of measures egay |ustfabe, or extra-
consttutonay, through the exercse of powers
underyng the exstence of a governments, on the
tme-honored prncpe of salus populi est suprema
lex.
Mana Eectrc Co. v. Sec. of Labor, 337 SCRA 90
(2000)
When w the CBA take effect?
<-o-------------------------------I x--------------------------!
CBA expraton 6 months
Secretary of Labor may determne the date of
retroactvty as part of hs dscretonary powers. But
ths dscretonary power sha ony be exercsed ony
when |ursdcton has been vested.
Assaed Resouton:
Artce 263(g) gves the Secretary |ursdcton. CBA
negotated wthn sx months after the expraton of
the exstng CBA retroacts to the day mmedatey
foowng such date and f agreed thereafter, the
effectvty depends on the agreement of the partes.
But the aw s sent as to the retroactvty of a CBA
arbtra award or that granted not by vrtue of the
mutua agreement of the partes but by nterventon
of the government. Despte the sence of the aw,
the Court rues heren that CBA arbtra awards
granted after sx months from the expraton of the
ast CBA sha retroact to such tme agreed upon by
both empoyer and the empoyees or ther unon.
Absent such an agreement as to retroactvty, the
award sha retroact to the frst day of the sx-month
perod foowng the expraton of the ast day of the
CBA shoud there be one. IN the absence of a CBA,
the Secs determnaton of the date of retroactvty as
part of hs dscretonary powers over arbtra awards
sha contro.
Hed: Where an arbtra award s granted beyond sx
months after the expraton of the exstng CBA, and
there s no agreement between the partes as to the
date of effectvty thereof, the arbtra award sha
retroact to the frst day after the sx-month perod
foowng the expraton of the ast day of the CBA.
But nstead of Dec 1, 1995 to Nov 30 1997 (CBA had
a 2-year appcabty perod), the Court modfed t to
|une 1, 1996 to May 31, 1998.
On social justice: "|T|hs Court cannot gnore the
enormous cost that pettoner w have to bear as a
consequence of the f retroacton of the arbtra
award to the date of the expry of the CBA and the
nevtabe effect that t woud have on the natona
economy. On the other hand, under the pocy of
soca |ustce, the aw bends over backward to
accommodate the nterests of the workng cass on
the humane |ustfcaton that those wth ess prvege
n fe shoud have more n aw. Baancng these two
contrastng nterests, ths Court turned to the
dctates of farness and equtabe |ustce and thus
arrved at a formua that woud address the concerns
of both sdes. Thus, Arbtra award must retroact to
the frst day AFTER the sx-month perod foowng
the ast day of the CBA.
Azucena:
Duman / Labor I / Prof. Battad / Page 2
The Constuton has not overooked the rghts of
capta. It provdes that, "the State recognzes the
ndspensabe roe of the prvate sector, encourages
prvate enterprse, and provdes ncentves to needed
nvestments (Art. II, Sec. 20).
Whe abor s entted to a |ust share n the fruts of
producton, the enterprse has an equay mportant
rght not ony to reasonabe returns on nvestment
but aso to expanson and growth.
Shared Responsbty between workers and
empoyers ! Preferenta use of vountary modes of
settng dsputes.
a. Foundaton: Poce Power and State
Protecton
Whe soca |ustce s the rason detre of abor aws,
ther bass or foundaton s the poce power of the
State.
a. State egsatures may enact aws for the
protecton of the safety and heath of
empoyees.
b. Rght of every person to pursue a busness,
occupaton, or professon s sub|ect to the
paramount rght of the government as a
part of ts poce power to mpose such
restrctons and reguatons as the
protecton of the pubc may requre.
Lega Cassfcaton: (dscussed n ght of the
suspenson of depoyment of women)
a. such cassfcaton rest on substanta
dstnctons
b. they are germane to the purpose of the aw
c. they are not confned to exstng condtons
d. they appy equay to a members of the
same cass
b. Foundaton: Poce Power and State Protecton
CMS Estate, Inc. v. Soca Securty System, 132 SCRA
108 (1984)
The case of two busnesses, one was n rea estate
and the other was n the oggng busness. One
owner was demandng for a refund from SSS and t
refused to subscrbe the empoyees of the 2
nd
busness to SSS because the busness has not been
n operaton for 2 years (whch was the requrement
of the aw) yet.
The Soca Securty Law was enacted pursuant to the
pocy of the government "to deveop, estabsh
graduay and perfect a soca securty system whch
sha be sutabe to the needs of the peope
throughout the Phppnes, and sha provde
protecton aganst the hazards of dsabty, sckness,
od age and death. lt is thus clear that said
enactment implements the general welfare
mandate of the Constitution and constitutes a
legitimate exercise of the police power of the
State.
It s the ntenton of the aw to cover as many
persons as possbe so as to promote the
consttutona ob|ectve of soca |ustce.
Compusory coverage of the empoyer sha take
effect on the frst day of hs operaton, and that of
the empoyee on the date of hs empoyment (RA
1161 as amended by RA 2658). The two year
prescrpton of the pror aw must be consdered
prevaed over by the ater aw and moreover, the
egsatve ntent must be gven effect.
c. Lmts of Use
PLDT v. NLRC, 164 SCRA 671 (1988)
PLDT empoyee promsed to factate the approva of
the companants appcatons for teephone
nstaaton and then receved from them an amount
of money n consderaton of her promse.
The rue emboded n the Labor Code s that a person
dsmssed for cause as defned theren s not entted
to separaton pay. The cases abovected (where
dfferent cases were cted provng that some
companes st aowed separaton pay despte the
degree of the ground upon whch the empoyees
were beng dsmssed for) consttute the excepton,
based upon consderatons of equty. Equty has been
defned as |ustce outsde aw, beng ethca rather
than |ura and beongng to the sphere of moras than
of aw. It s grounded on the precepts of conscence
and not on any sancton of postve aw. Hence, t
cannot preva aganst the expressed provson of the
abor aws aowng dsmssa of empoyees for cause
and wthout any provson for separaton pay.
Separaton pay sha be aowed as a measure of
soca |ustce ony n those nstances where the
empoyee s cady dsmssed for causes other than
serous msconduct or those refectng on hs mora
character. Where the reason for the vad dsmssa s,
for exampe, habtua ntoxcaton or an offense
nvovng mora turptude, fe theft or ct sexua
reatons wth a feow worker, the empoyer may not
be requred to gve the dsmssed empoyee
separaton pay or fnanca assstance, or whatever
other name t s caed on the ground of soca |ustce.
The pocy of soca |ustce s not ntended to
countenance wrongdong smpy because t s
commtted by the underprveged. At best t may
mtgate the penaty but t certany w not condone
the offense. Compasson for the poor s an
mperatve of every humane socety but ony when
the recpent s not a rasca camng an underserved
prvege. Soca |ustce cannot be permtted to be
refuge of scoundres any more than can equty be an
mpedment to the punshment of the guty. Those
who nvoke soca |ustve may do so ony f ther
hands are cean and ther motves bameess and not
smpy because they happen to be poor.
Agabon v. NLRC, 442 SCRA 573 (2004)
Empoyees were camng ega dsmssa. Empoyer
was assertng that there was abandonment.
Abandonment s the deberate and un|ustfed
refusa of an empoyee to resume hs empoyment. It
s a form of negect of duty, hence, a |ust cause for
termnaton of empoyment by the empoyer. For a
vad fndng of abandonment: (1) faure to report for
work or absence wthout vad or |ustfabe reason
(2) cear ntenton to server empoyer-empoyee
reatonshp wth the second as the more
determnatve factor whch s manfested by overt
acts from whch t may be deduced that the
empoyees has no more ntenton to work.
Wenphil or Belated Due Process Rule: where the
empoyer had a vad reason to dsmss an empoyee
but dd not foow the due process requrement, the
dsmssa may be uphed but the empoyer w be
penazed to pay an ndemnty to the empoyee.
But ths was re-examned n Serrano case wheren
the Court requred that the empoyer pay the fu
backwages from the tme of dsmssa unt the tme
the Court fnds the dsmssa was for a |ust or
authorzed cause. It was because of a sgnfcant
Duman / Labor I / Prof. Battad / Page 3
number of cases nvovng dsmssas wthout
requste notces.
In Agabon, the Court abandoned Serrano and
foowed Wenph ony that the sanctons mposed on
the empoyer must be stffer than those n Wenph.
An empoyee who s ceary guty of conduct
voatve of Artce 282 shoud not be protected by
the Soca |ustce Cause of the Consttuton. Soca
|ustce, as the terms suggests, shoud be used ony
to correct an n|ustce.
|P Laure, n Caaang: soca |ustce must be founded
on the recognton of the necessty of
nterdependence among dverse unts of a socety
and of the protecton that shoud be equay and
eveny extended to a groups as a combned forc e n
our soca and economc fe, consstent wth the
fundamenta and paramount ob|ectve of the state of
promotng the heath, comfort and quet of a
person, and of brngng about the greatest good to
the greatest number.
Soca |ustce s not based on rgd formuas set n
stone. It has to aow for changng tmes and
crcumstances.
5. Lega Bass
a. Internatona Conventons
Internatona Schoo Aance of Educators v.
Ousumbng, 333 SCRA 13 (2000)
Foregner teachers were gven more benefts than
the oca teachers.
Internatona aw, whch sprngs from genera
prncpe of aw, kewse proscrbes dscrmnaton.
Genera prncpes of aw ncude prncpes of equty
.e the genera prncpes of farness and |ustce,
based on the test of what s reasonabe.
The foowng embody the genera prncpe aganst
dscrmnaton, the very antthess of farness and
|ustce.
Unversa Decaraton of Human
Rghts
The Internatona Covenant on
Economc, Soca, and Cutura
Rghts
The Internatona Conventon on
the Emnaton of A Forms of
Raca Dscrmnaton
The Conventon aganst
Dscrmnaton n Educaton
The Conventon Concernng
Dscrmnaton n Respect of
Empoyment and Occupaton
Mentoned n the case:
Bargaining Unit: s a group of empoyees of a gven
empoyer, comprsed of a or ess than a of the
entre body of empoyees, consstent wth equty to
the empoyer ndcate to be the best suted to serve
the recproca rghts and dutes of the partes under
the coectve barganng provsons of the aw.
The factors determnng the approprate coectve
barganng unt are: (1) the w of the empoyees (2)
affnty and unty of the empoyees nterest, such as
substanta smarty of work and dutes, or smarty
of compensaton and workng condtons (3) pror
coectve barganng hstory (4) smarty of
empoyment status.
b. 1987 Consttuton, Art. II, Secs. 5, 9, 10, 13, 14, 18;
Art. XIII, Secs. 1, 3, 14
ART. II
Section 5. The maintenance of peace and order, the
protection of life, liberty, and property, and promotion
of the general welfare are essential for the enjoyment
by all the people of the blessings of democracy.
Section 9. The State shall promote a just and
dynamic social order that will ensure the prosperity
and independence of the nation and free the people
from poverty through policies that provide adequate
social services, promote full employment, a rising
standard of living, and an improved quality of life for
all.
Section 10. The State shall promote social justice in
all phases of national development.
Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social
well-being. t shall inculcate in the youth patriotism
and nationalism, and encourage their involvement in
public and civic affairs.
Section 14. The State recognizes the role of women
in nation-building, and shall ensure the fundamental
equality before the law of women and men.
Section 18. The State affirms labor as a primary
social economic force. t shall protect the rights of
workers and promote their welfare.
Art. XIII
Section 1. The Congress shall give highest priority to
the enactment of measures that protect and enhance
the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing
wealth and political power for the common good.
Section 3. The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment and
equality of employment opportunities for all.
t shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be entitled
to security of tenure, humane conditions of work, and
a living wage. They shall also participate in policy and
decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between
workers and employers, recognizing the right of labor
to its just share in the fruits of production and the right
Duman / Labor I / Prof. Battad / Page 4
of enterprises to reasonable returns to investments,
and to expansion and growth.
Section 14. The State shall protect working women
by providing safe and healthful working conditions,
taking into account their maternal functions, and such
facilities and opportunities that will enhance their
welfare and enable them to realize their full potential
in the service of the nation.
See aso: 1935 Const., Art. XIV, Sec., 6; 1973
Const., Art. II, Sec. 9
1935 Constitution, Art. XlV, Sec. 6
Section 6. The State shall afford protection to labor,
especially to working women, and minors, and shall
regulate the relations between the landowner and
tenant, and between labor and capital in industry and
in agriculture. The State may provide for compulsory
arbitration.
1973 Const. Art. II, Sec. 9
Section 9. The State shall afford protection to labor,
promote full employment and equality in employment,
ensure equal work opportunities regardless of sex,
race, or creed, and regulate the relation between
workers and employers. The State shall assure the
rights of workers to self-organization, collective
bargaining, security of tenure, and just and humane
conditions of work. The State may provide for
compulsory arbitration.
c. Labor Code (LC) and Omnbus Rues Impementng
the Labor Code
d. New Cv Code of the Phppnes (NCC), Arts. 19, 21,
1700-1701
Art. 19. Every person must, in the exercise of his
rights and in the performance of his duties, act with
justice, give everyone his due, and observe honesty
and good faith.
Art. 21. Any person who wilfully causes loss or injury
to another in a manner that is contrary to morals,
good customs or public policy shall compensate the
latter for the damage.
Art. 1700. The relations between capital and labor are
not merely contractual. They are so impressed with
public interest that labor contracts must yield to the
common good. Therefore, such contracts are subject
to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages,
working conditions, hours of labor and similar
subjects.
Art. 1701. Neither capital nor labor shall act
oppressively against the other, or impair the interest
or convenience of the public.
6. Sources of Law
a. Labor Code and Reated Speca Legsaton
(Impementng Rues)
b. Contract - Art. 1305-1306, New Cv Code
Art. 1305. A contract is a meeting of minds between
two persons whereby one binds himself, with respect
to the other, to give something or to render some
service. (1254a)
Art. 1306. The contracting parties may establish such
stipulations, clauses, terms and conditions as they
may deem convenient, provided they are not contrary
to law, morals, good customs, public order, or public
policy. (1255a)
c. Coectve Barganng Agreement
DOLE Phs. v. Paws ng Makabayang Obrero, 395
SCRA 112 (2003)
Interpretaton of the free meas provson n the CBA.
Is t after the empoyee has worked ony after more
than three hours of work or those who have rendered
exacty three hours of overtme work?
The dsputed provson of the CBA s cear and
unambguous. The terms of the CBA s not
susceptbe to any other nterpretaton. Hence the
tera meanng of "free meas after three (3) hours of
overtme work" sha preva, whch s smpy that an
empoyee sha be entted to a free mea f he has
rendered exacty, or no ess than, three hours of
overtme work, not "after more than" or "n excess
of" three hours overtme work.
Found n the case: Management prerogatve: The
exercse of management prerogatve s not unmted.
It s sub|ect to the mtatons found n aw, a
coectve barganng agreement or the genera
prncpes of far pay and |ustce. Ths stuaton
consttutes one of the mtatons. The CBA s the
norm of conduct between the pettoner and prvate
respondent and compance therewth s mandated
by the express pocy of the aw.
d. Past Practces
Davao Fruts Corporaton v. Assocated abor Unon,
225 SCRA 562 (1993)
Issue: WON n the computaton of the 13
th
month pay
gven by empoyers to ther empoyees under PD
851, payments for sck, vacaton and maternty
eaves, premums for work done rest days and
speca hodays and pay for reguar hodays may be
excuded n the computaton and payment thereof,
regardess of ong-standng company practce.
A company practice favorable to the employees
had indeed been established and the payments
made pursuant thereto, ripened into benefits
enjoyed by them. And any benefit and
supplement being enjoyed by the employees
cannot be reduced, diminished, discontinued
or eliminated by the employer, by virtue of Sec
10 of the Rules and Regulations lmplementing
PD 851 and Art 100 of the Labor Code which
prohibit the diminution or elimination b the
employer of the employees' existing benefits.
The consderabe ength of tme the questoned tems
had been ncuded by pettoner ndcates a unatera
and vountary act on ts part, suffcent n tsef to
negate any cam of mstake.
Samahang Manggagawa sa Top Form Manufacturng-
Unted Workers of the Ph. (SMTFM-UWP v. NLRC, 295
SCRA 171
(1998)
The case wheren the empoyer was charged as
havng commtted an unfar abor practce by
barganng n bad fath and dscrmnatng aganst n
Duman / Labor I / Prof. Battad / Page 5
empoyees by promsng at a coectve barganng
conference to mpement any government-mandated
wage ncreases on an across-the-board bass.
Past promses whch were wrtten n the mnutes of
the meetng. The proposa was never emboded n
the CBA, thus, the promse remaned |ust that, a
promse, the mpementaton whch cannot be vady
demanded under the aw.
The aw provdes remedes to the pettoner unon to
compe prv resp to ncorporate ths specfc
economc proposa n the CBA, whch they dd not do.
The CBA s the aw between the contractng partes-
the coectve barganng representatve and the
empoyer-company. Compance wth a CBA s
mandated by the expressed pocy to gve protecton
to abor. In the same ven, CBA provson shoud be
"construed beray rather than narrowy and
techncay, and the courts must pace a practca and
reastc constructon upon t, gvng due
consderaton to the context n whch t s negotated
and purpose whch t s ntended to serve. Ths s
founded on the dctum that a CBA s not an ordnary
contract but one mpressed wth pubc nterest. It
goes wthout sayng, however, that ony provsons
emboded n the CBA shoud be so nterpreted and
comped wth.
No benefts or prveges prevousy en|oyed by
pettoner unon and the other empoyees were
wthdrawn as a resut of the manner by whch prvate
resp mpemented the wage orders.
Amercan Wre and Cabe Day rated Empoyees
Unon Amercan Wre and Cabe co., Inc., 457 SCRA
684 (2005)
The company suddeny wthdrew and dened certan
benefts and enttements whch the empoyees have
ong en|oyed ke servce awards, 35% premum pay
of an empoyees basc pay for work rendered durng
Hoy Monday, Tuesday, Wednesday, December 23,
26, 27, 28, and 29, Chrstmas Party and Promotona
Increases.
It s crtca that a determnaton must be frst made
whether the benefts/enttements are n the nature
of a bonus or not, and assumng they are so, whether
they are demandabe and enforceabe obgatons.
Bonus: s an amount granted and pad to an
empoyee for hs ndustry and oyaty whch
contrbuted to the success of the empoyers
busness and made possbe the reazaton of profts.
It s an act of generosty granted by an enghtened
empoyer to spur the empoyee to greater efforts for
the success of the busness and reazaton of bgger
profts. The grantng of a bonus s a management
prerogatve, somethng gven n addton to what s
ordnary receved by or strcty due the recpent.
Thus, a bonus s not a demandabe and enforceabe
obgaton, except when t s made part of the wage,
saary or compensaton of the empoyee.
Issue: WON these bonuses can be consdered part of
the wage or saary or compensaton makng them
enforceabe obgatons.
Hed: No. For a bonus to be enforceabe, t must have
been promsed by the empoyer and expressy
agreed upon by the partes or t must have had a
fxed amount and had been a ong and reguar
practce on the part of the empoyer.
The benefts/enttements n queston were never
sub|ects of any express agreement between the
partes. They were never ncorporated n the CBA. As
observed by the VA, the records revea that these
benefts/enttements have not been sub|ects of any
express agreement between the unon and the
company, and have not yet been ncorporated n the
CBA.
Downtrend was cear n the servce award amount
and the partes venue were changed from pad
venues to one whch was free of charge.
To be considered a "regular practice", the
giving of the bonus should have been done
over a long period of time, and must be shown
to have been consistent and deliberate.
e. Company Poces
Chna Bankng Corporaton v. Borromeo, 440 SCRA 621
(2004)
The case of a manager who was consstenty
promoted because of a hghy satsfactory
performance whch anded hm at the AVP spot ony
to fnd out that he has done rreguartes n
approvng severa DAUD/BP n favor of one Manwan.
The Banks SOP provdes a resttuton/forfeture of
benefts provson.
It s we recognzed that company poces and
reguatons are, uness shown to be grossy
oppressve or contrary to aw, generay bndng, and
vad on the partes and must be comped wth unt
fnay revsed or amended unateray or preferaby
through negotaton or by competent authorty.
Moreover, management has the prerogatve to
dscpne ts empoyees and to mpose approprate
penates on errng workers pursuant to company
rues and reguatons. Wth more reason shoud these
trusms appy to the respondent, who, by reason of
hs poston, was requred to act |udcousy and to
exercse hs authorty n harmony wth company
poces.
Busness enterprses have a prerogatve to dscpne
ts empoyees and to mpose approprate penates
on errng workers pursuant to company rues and
reguatons whch must be respected. The aw, n
protectng the rghts of abor, authorzed nether
oppresson nor sef-destructon of an empoyer
company whch tsef s possessed of rghts that must
be entted to recognton and respect.
7. Cassfcaton
a. Labor Standards
b. Labor Reatons
c. Wefare Legsaton
ll. LABOR CODE OF THE PHlLlPPlNES
A. Brief History
B. General Provisions
1. 1. Decree Tte, Art. 1
ARTCLE 1. Name of Decree. - This Decree shall
be known as the "Labor Code of the Philippines".
2. Effectvty, Art. 2
ART. 2. Date of effectivity. - This Code shall take
effect six (6) months after its promulgation.
3. Pocy Decaraton, Art. 3
Duman / Labor I / Prof. Battad / Page 6
ART. 3. Declaration of basic policy. - The State
shall afford protection to labor, promote full
employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the
relations between workers and employers. The
State shall assure the rights of workers to self-
organization, collective bargaining, security of
tenure, and just and humane conditions of work.
4. Constructon n Favor of Labor, Art. 4
ART. 4. Construction in favor of labor. - All doubts
in the implementation and interpretation of the
provisions of this Code, including its
implementing rules and regulations, shall be
resolved in favor of labor.
Sanas |r. v. NLRC, 319 SCRA 54 (1999)
Reyes v. Court of Appeas, 409 SCRA 267 (2003)
G&M Phppnes, Inc. v. Rom Cuambot, GR No.
162308, Nov. 22, 2006
2. Rue Makng Power, Art. 5
ART. 5. Rules and regulations. - The Department
of Labor and other government agencies charged
with the administration and enforcement of this
Code or any of its parts shall promulgate the
necessary implementing rules and regulations.
Such rules and regulations shall become
effective fifteen (15) days after announcement of
their adoption in newspapers of general
circulation.
Kapsanan ng mga Manggagawang Pnagyakap v.
NLRC, 152 SCRA 6 (1987)
3. Technca Rues Not Bndng, Art. 221
ART. 221. Technical rules not binding and prior resort
to amicable settlement. - n any proceeding before the
Commission or any of the Labor Arbiters, the rules of
evidence prevailing in courts of law or equity shall not
be controlling and it is the spirit and intention of this
Code that the Commission and its members and the
Labor Arbiters shall use every and all reasonable
means to ascertain the facts in each case speedily
Duman / Labor I / Prof. Battad / Page 7
and objectively and without regard to technicalities of
law or procedure, all in the interest of due process. n
any proceeding before the Commission or any Labor
Arbiter, the parties may be represented by legal
counsel but it shall be the duty of the Chairman, any
Presiding Commissioner or Commissioner or any
Labor Arbiter to exercise complete control of the
proceedings at all stages.
Huntngton Stee Products, Inc. v. NLRC, 442 SCRA
551 (2004)
4. Appcabty, Art. 6, 276; Consttuton, Art. IX-B, Sec. 2(1)
ART. 6. Applicability. - All rights and benefits granted
to workers under this Code shall, except as may
otherwise be provided herein, apply alike to all
workers, whether agricultural or non-agricultural. (As
amended by Presidential Decree No. 570-A,
November 1, 1974).
ART. 276. Government employees. - The terms and
conditions of employment of all government
employees, including employees of government-
owned and controlled corporations, shall be governed
by the Civil Service Law, rules and regulations. Their
salaries shall be standardized by the National
Assembly as provided for in the New Constitution.
However, there shall be no reduction of existing
wages, benefits and other terms and conditions of
employment being enjoyed by them at the time of the
adoption of this Code.
Constitution, Art. lX-B, Sec. 2(1)
Section 2. (1) The civil service embraces all
branches, subdivisions, instrumentalities, and
agencies of the Government, including government-
owned or controlled corporations with original
charters.
5. Enforcement and Sanctons - Arts. 217 (a) (2), (3),
(4), (6); 128-129; 288-292; Const., Art III, Secs. 11
and 16
ART. 217. Jurisdiction of the Labor Arbiters and the
Commission. - (a) Except as otherwise provided
under this Code, the Labor Arbiters shall have original
and exclusive jurisdiction to hear and decide, within
thirty (30) calendar days after the submission of the
case by the parties for decision without extension,
even in the absence of stenographic notes, the
following cases involving all workers, whether
agricultural or non-agricultural:
2. Termination disputes;
3. f accompanied with a claim for
reinstatement, those cases that workers may
file involving wages, rates of pay, hours of
work and other terms and conditions of
employment;
4. Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;
6. Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other
claims arising from employer-employee relations,
including those of persons in domestic or household
service, involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.
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).
An order issued by the duly authorized representative
of the Secretary of Labor and Employment under this
Article may be appealed to the latter. n 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
Duman / Labor I / Prof. Battad / Page 8
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. n 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) t 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. - 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).
ART. 288. Penalties. - Except as otherwise provided
in this Code, or unless the acts complained of hinge
on a question of interpretation or implementation of
ambiguous provisions of an existing collective
bargaining agreement, any violation of the provisions
of this Code declared to be unlawful or penal in nature
shall be punished with a fine of not less than One
Thousand Pesos (P1,000.00) nor more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not
less than three months nor more than three years, or
both such fine and imprisonment at the discretion of
the court.
n addition to such penalty, any alien found guilty shall
be summarily deported upon completion of service of
sentence.
Any provision of law to the contrary notwithstanding,
any criminal offense punished in this Code, shall be
under the concurrent jurisdiction of the Municipal or
City Courts and the Courts of First nstance. (As
amended by Section 3, Batas Pambansa Bilang 70).
ART. 289. Who are liable when committed by other
than natural person. - f the offense is committed by a
corporation, trust, firm, partnership, association or any
other entity, the penalty shall be imposed upon the
guilty officer or officers of such corporation, trust, firm,
partnership, association or entity.
Title
PRESCRPTON OF OFFENSES AND CLAMS
ART. 290. Offenses. - Offenses penalized under this
Code and the rules and regulations issued pursuant
thereto shall prescribe in three (3) years.
All unfair labor practice arising from Book V shall be
filed with the appropriate agency within one (1) year
from accrual of such unfair labor practice; otherwise,
they shall be forever barred.
ART. 291. Money claims. - All money claims arising
from employer-employee relations accruing during the
effectivity of this Code shall be filed within three (3)
years from the time the cause of action accrued;
otherwise they shall be forever barred.
Duman / Labor I / Prof. Battad / Page 9
All money claims accruing prior to the effectivity of
this Code shall be filed with the appropriate entities
established under this Code within one (1) year from
the date of effectivity, and shall be processed or
determined in accordance with the implementing rules
and regulations of the Code; otherwise, they shall be
forever barred.
Workmen's compensation claims accruing prior to the
effectivity of this Code and during the period from
November 1, 1974 up to December 31, 1974, shall be
filed with the appropriate regional offices of the
Department of Labor not later than March 31, 1975;
otherwise, they shall forever be barred. The claims
shall be processed and adjudicated in accordance
with the law and rules at the time their causes of
action accrued.
ART. 292. Institution of money claims. - Money claims
specified in the immediately preceding Article shall be
filed before the appropriate entity independently of the
criminal action that may be instituted in the proper
courts.
Pending the final determination of the merits of money
claims filed with the appropriate entity, no civil action
arising from the same cause of action shall be filed
with any court. This provision shall not apply to
employees compensation case which shall be
processed and determined strictly in accordance with
the pertinent provisions of this Code.
ART. III, SEC. 11 AND 16, CONSTITUTION
Section 11. Free access to the courts and quasi-
judicial bodies and adequate legal assistance shall
not be denied to any person by reason of poverty.
Section 16. All persons shall have the right to a
speedy disposition of their cases before all judicial,
quasi-judicial, or administrative bodies.

C. Work Relationship
1. Empoyer and Empoyee Reatonshp
a. Defnton of Empoyer and Empoyee, Arts. 97 (a) (b)
(c), 167 (f)
(g) (h), 212 (e) (f)
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.
Art. 167. Definition of Terms.As used in this Title,
unless the context indicates otherwise:
(f) "Employer means any person, natural or juridical,
employing the services of the employee.
(g) "Employee means any person compulsorily
covered by the GSS under Commonwealth Act
Numbered One hundred eighty-six, as amended,
including the members of the Armed Forces of the
Philippines, and any person employed as casual,
emergency, temporary, substitute or contractual, or
any person compulsorily covered by the SSS under
Republic Act Numbered Eleven hundred sixty-one, as
amended.
(h) "Person means any individual, partnership, firm,
association, trust, corporation or legal representative
thereof.
Art. 212.
(e) "Employer" includes any person acting in the
interest of an employer, directly or indirectly. The term
shall not include any labor organization or any of its
officers or agents except when acting as employer.
(f) "Employee" includes any person in the employ of
an employer. The term shall not be limited to the
employees of a particular employer, unless the Code
so explicitly states. t shall include any individual
whose work has ceased as a result of or in
connection with any current labor dispute or because
of any unfair labor practice if he has not obtained any
other substantially equivalent and regular
employment.
b. Factors/Tests
Ruga v. NLRC, 181 SCRA 437 (1990)
Duman / Labor I / Prof. Battad / Page 10
Perpetua Hep Credt v. Faburada et a., 366
SCRA 693 (2001)
Vcente Sy v. Court of Appeas, 398 SCRA 301
(2003)
Chavez v. NLRC, 448 SCRA 478 (2005)
Angena Francsco v. NLRC, et a., GR No.
170087, Aug. 31, 2006
c. Percng the Corporate Ve
Pampona Pantatn Co., Inc. v. Tngh, 450 SCRA 421
(2005)
Duman / Labor I / Prof. Battad / Page 11
2. Independent Contractor and Labor-ony Contractor, Art.
106-107, 109; DO No. 18-02, S 2002
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.
n 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 directly employed by him.
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. n 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. n
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. 107. Indirect employer. - The provisions of the
immediately preceding article shall likewise apply to
any person, partnership, association or corporation
which, not being an employer, contracts with an
independent contractor for the performance of any
work, task, job or project.
DEPARTMENT ORDER NO. 18 - 02
(Series of 2002)
.
.
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED
.
.
By virtue of the power vested in the Secretary of
Labor and EmpIoyment under ArticIes 5 (RuIe-
making) and 106 (Contractor or Subcontractor) of
the Labor Code of the PhiIippines, as amended,
the foIIowing reguIations governing contracting
and subcontracting arrangements are hereby
issued:
Section 1. Guiding principles. - Contracting and
subcontracting arrangements are expressIy
aIIowed by Iaw and are subject to reguIation for
the promotion of empIoyment and the observance
of the rights of workers to just and humane
conditions of work, security of tenure, seIf-
organization, and coIIective bargaining. Labor-
onIy contracting as defined herein shaII be
prohibited.
Section 2 . Coverage. - These RuIes shaII appIy to
aII parties of contracting and subcontracting
arrangements where empIoyer-empIoyee
reIationship exists. PIacement activities through
private recruitment and pIacement agencies as
governed by ArticIes 25 to 39 of the Labor Code
are not covered by these RuIes.
Section 3. Trilateral Relationship in Contracting
Arrangements. - In Iegitimate contracting, there
exists a triIateraI reIationship under which there is
a contract for a specific job, work or service
between the principaI and the contractor or
subcontractor, and a contract of empIoyment
between the contractor or subcontractor and its
workers. Hence, there are three parties invoIved in
these arrangements, the principaI which decides
to farm out a job or service to a contractor or
subcontractor, the contractor or subcontractor
which has the capacity to independentIy
undertake the performance of the job, work or
service, and the contractuaI workers engaged by
the contractor or subcontractor to accompIish the
job work or service.
Section 4. Definition of Basic Terms. - The
foIIowing terms as used in these RuIes, shaII
mean:
(a) "Contracting" or "subcontracting" refers to an
arrangement whereby a principaI agrees to put
out or farm out with a contractor or subcontractor
the performance or compIetion of a specific job,
work or service within a definite or predetermined
Duman / Labor I / Prof. Battad / Page 12
period, regardIess of whether such job, work or
service is to be performed or compIeted within or
outside the premises of the principaI.
(b) "Contractor or subcontractor" refers to any
person or entity engaged in a Iegitimate
contracting or subcontracting arrangement.
(c) "Contractual employee" incIudes one
empIoyed by a contractor or subcontractor to
perform or compIete a job, work or service
pursuant to an arrangement between the Iatter
and a principaI.
(d) "Principal" refers to any empIoyer who puts
out or farms out a job, service or work to a
contractor or subcontractor.
Section 5. Prohibition against labor-only
contracting. - Labor-onIy contracting is hereby
decIared prohibited. For this purpose, Iabor-onIy
contracting shaII refer to an arrangement where
the contractor or subcontractor mereIy recruits,
suppIies or pIaces workers to perform a job, work
or service for a principaI, and any of the foIIowing
eIements are present:
(i) The contractor or subcontractor does not have
substantiaI capitaI or investment which reIates to
the job, work or service to be performed and the
empIoyees recruited, suppIied or pIaced by such
contractor or subcontractor are performing
activities which are directIy reIated to the main
business of the principaI; or
(ii) the contractor does not exercise the right to
controI over the performance of the work of the
contractuaI empIoyee.
The foregoing provisions shaII be without
prejudice to the appIication of ArticIe 248 (C ) of
the Labor Code, as amended.
"Substantial capital or investment" refers to
capitaI stocks and subscribed capitaIization in the
case of corporations, tooIs, equipment,
impIements, machineries and work premises,
actuaIIy and directIy used by the contractor or
subcontractor in the performance or compIetion
of the job, work or service contracted out.
The "right to control" shaII refer to the right
reserved to the person for whom the services of
the contractuaI workers are performed, to
determine not onIy the end to be achieved, but
aIso the manner and means to be used in
reaching that end.
Section 6. Prohibitions. - Notwithstanding Section
5 of these RuIes, the foIIowing are hereby
decIared prohibited for being contrary to Iaw or
pubIic poIicy:
(a) Contracting out of a job, work or service when
not done in good faith and not justified by the
exigencies of the business and the same resuIts
in the termination of reguIar empIoyees and
reduction of work hours or reduction or spIitting
of the bargaining unit;
(b) Contracting out of work with a "cabo" as
defined in Section 1 (ii), RuIe I, Book V of these
RuIes. "Cabo" refers to a person or group of
persons or to a Iabor group which, in the guise of
a Iabor organization, suppIies workers to an
empIoyer, with or without any monetary or other
consideration whether in the capacity of an agent
of the empIoyer or as an ostensibIe independent
contractor;
(c) Taking undue advantage of the economic
situation or Iack of bargaining strength of the
contractuaI empIoyee, or undermining his
security of tenure or basic rights, or
circumventing the provisions of reguIar
empIoyment, in any of the foIIowing instances:
(i) In addition to his assigned functions, requiring
the contractuaI empIoyee to perform functions
which are currentIy being performed by the
reguIar empIoyees of the principaI or of the
contractor or subcontractor;
(ii) Requiring him to sign, as a precondition to
empIoyment or continued empIoyment, an
antedated resignation Ietter; a bIank payroII; a
waiver of Iabor standards incIuding minimum
wages and sociaI or weIfare benefits; or a
quitcIaim reIeasing the principaI, contractor or
subcontractor from any IiabiIity as to payment of
future cIaims; and
(iii) Requiring him to sign a contract fixing the
period of empIoyment to a term shorter than the
term of the contract between the principaI and the
contractor or subcontractor, unIess the Iatter
contract is divisibIe into phases for which
substantiaIIy different skiIIs are required and this
is made known to the empIoyee at the time of
engagement;
(d) Contracting out of a job, work or service
through an in-house agency which refers to a
contractor or subcontractor engaged in the
suppIy of Iabor which is owned, managed or
controIIed by the principaI and which operates
soIeIy for the principaI;
(e) Contracting out of a job, work or service
directIy reIated to the business or operation of the
principaI by reason of a strike or Iockout whether
actuaI or imminent;
(f) Contracting out of a job, work or service being
performed by union members when such wiII
interfere with, restrain or coerce empIoyees in the
exercise of their rights to seIf organization as
provided in Art. 248 (c) of the Labor Code, as
amended.
Section 7. Existence of an employer-employee
relationship. - The contractor or subcontractor
shaII be considered the empIoyer of the
contractuaI empIoyee for purposes of enforcing
the provisions of the Labor Code and other sociaI
IegisIation. The principaI, however, shaII be
soIidariIy IiabIe with the contractor in the event of
any vioIation of any provision of the Labor Code,
incIuding the faiIure to pay wages.
Duman / Labor I / Prof. Battad / Page 13
The principaI shaII be deemed the empIoyer of the
contractuaI empIoyee in any of the foIIowing
cases as decIared by a competent authority:
(a) where there is Iabor-onIy contracting; or
(b) where the contracting arrangement faIIs within
the prohibitions provided in Section 6
(Prohibitions) hereof.
Section 8. Rights of Contractual Employees. -
Consistent with Section 7 of these RuIes, the
contractuaI empIoyee shaII be entitIed to aII the
rights and priviIeges due a reguIar empIoyee as
provided for in the Labor Code, as amended, to
incIude the foIIowing:
(a) Safe and heaIthfuI working conditions;
(b) Labor standards such as service incentive
Ieave, rest days, overtime pay, hoIiday pay, 13th
month pay and separation pay;
(c) SociaI security and weIfare benefits;
(d) SeIf-organization, coIIective bargaining and
peacefuI concerted action; and
(e) Security of tenure.
Section 9. Contract between contractor or
subcontractor and contractual employee. -
Notwithstanding oraI or written stipuIations to the
contrary, the contract between the contractor or
subcontractor and the contractuaI empIoyee,
which shaII be in writing, shaII incIude the
foIIowing terms and conditions:
(a) The specific description of the job, work or
service to be performed by the contractuaI
empIoyee;
(b) The pIace of work and terms and conditions of
empIoyment, incIuding a statement of the wage
rate appIicabIe to the individuaI contractuaI
empIoyee; and
(c) The term or duration of empIoyment, which
shaII be coextensive with the contract of the
principaI and subcontractor, or with the specific
phase for which the contractuaI empIoyee is
engaged, as the case may be.
The contractor or subcontractor shaII inform the
contractuaI empIoyee of the foregoing terms and
conditions on or before the first day of his
empIoyment.
Section 10. Effect of Termination of Contractual
Employment. - In cases of termination of
empIoyment prior to the expiration of the contract
between the principaI and the contractor or
subcontractor, the right of the contractuaI
empIoyee to separation pay or other reIated
benefits shaII be governed by the appIicabIe Iaws
and jurisprudence on termination of empIoyment.
Where the termination resuIts from the expiration
of the contract between the principaI and the
contractor or subcontractor, or from the
compIetion of the phase of the job, work or
service for which the contractuaI empIoyee is
engaged, the Iatter shaII not be entitIed to
separation pay. However, this shaII be without
prejudice to compIetion bonuses or other
emoIuments, incIuding retirement pay as may be
provided by Iaw or in the contract between the
principaI and the contractor or subcontractor.
Section 11. Registration of Contractors or
Subcontractors. - Consistent with the authority of
the Secretary of Labor and EmpIoyment to restrict
or prohibit the contracting out of Iabor through
appropriate reguIations, a registration system to
govern contracting arrangements and to be
impIemented by the RegionaI Offices is hereby
estabIished.
The registration of contractors and
subcontractors shaII be necessary for purposes
of estabIishing an effective Iabor market
information and monitoring.
FaiIure to register shaII give rise to the
presumption that the contractor is engaged in
Iabor-onIy contracting.
Section 12. Requirements for registration. - A
contractor or subcontractor shaII be Iisted in the
registry of contractors and subcontractors upon
compIetion of an appIication form to be provided
by the DOLE. The appIicant contractor or
subcontractor shaII provide in the appIication
form the foIIowing information:
(a) The name and business address of the
appIicant and the area or areas where it seeks to
operate;
(b) The names and addresses of officers, if the
appIicant is a corporation, partnership,
cooperative or union;
(c) The nature of the appIicant's business and the
industry or industries where the appIicant seeks
to operate;
(d) The number of reguIar workers; the Iist of
cIients, if any; the number of personneI assigned
to each cIient, if any and the services provided to
the cIient;
(e) The description of the phases of the contract
and the number of empIoyees covered in each
phase, where appropriate; and
(f) A copy of audited financiaI statements if the
appIicant is a corporation, partnership,
cooperative or a union, or copy of the Iatest ITR if
the appIicant is a soIe proprietorship.
The appIication shaII be supported by:
(a) A certified copy of a certificate of registration
of firm or business name from the Securities and
Exchange Commission (SEC), Department of
Trade and Industry (DTI), Cooperative
DeveIopment Authority (CDA), or from the DOLE if
the appIicant is a union; and
(b) A certified copy of the Iicense or business
permit issued by the IocaI government unit or
units where the contractor or subcontractor
operates.
Duman / Labor I / Prof. Battad / Page 14
The appIication shaII be verified and shaII incIude
an undertaking that the contractor or
subcontractor shaII abide by aII appIicabIe Iabor
Iaws and reguIations.
Section 13. Filing and processing of applications.
- The appIication and its supporting documents
shaII be fiIed in tripIicate in the RegionaI Offices
where the appIicant principaIIy operates. No
appIication for registration shaII be accepted
unIess aII the foregoing requirements are
compIied with. The contractor or subcontractor
shaII be deemed registered upon payment of a
registration fee of P100.00 to the RegionaI Office.
Where aII the supporting documents have been
submitted, the RegionaI Office shaII deny or
approve the appIication within seven (7) working
days after its fiIing.
Upon registration, the RegionaI Office shaII return
one set of the duIy-stamped appIication
documents to the appIicant, retain one set for its
fiIe, and transmit the remaining set to the Bureau
of LocaI EmpIoyment. The Bureau shaII devise the
necessary forms for the expeditious processing
of aII appIications for registration.
Section 14. Duty to produce copy of contract
between the principal and the contractor or
subcontractor. - The principaI or the contractor or
subcontractor shaII be under an obIigation to
produce a copy of the contract between the
principaI and the contractor in the ordinary
course of inspection. The contractor shaII
Iikewise be under an obIigation to produce a copy
of the contract of empIoyment of the contractuaI
worker when directed to do so by the RegionaI
Director or his authorized representative.
A copy of the contract between the contractuaI
empIoyee and the contractor or subcontractor
shaII be furnished the certified bargaining agent,
if there is any.
Section 15. Annual Reporting of Registered
Contractors. - The contractor or subcontractor
shaII submit in tripIicate its annuaI report using a
prescribed form to the appropriate RegionaI
Office not Iater than the 15th of January of the
foIIowing year. The report shaII incIude:
(a) A Iist of contracts entered with the principaI
during the subject reporting period;
(b) The number of workers covered by each
contract with the principaI;
(c) A sworn undertaking that the benefits from the
SociaI Security System (SSS), the Home
DeveIopment MutuaI Fund (HDMF), PhiIHeaIth,
EmpIoyees Compensation Commission (ECC),
and remittances to the Bureau of InternaI Revenue
(BIR) due its contractuaI empIoyees have been
made during the subject reporting period.
The RegionaI Office shaII return one set of the
duIy-stamped report to the contractor or
subcontractor, retain one set for its fiIe, and
transmit the remaining set to the Bureau of LocaI
EmpIoyment within five (5) days from receipt
thereof.
Section 16. Delisting of contractors or
subcontractors. - Subject to due process, the
RegionaI Director shaII canceI the registration of
contractors or subcontractors based on any of
the foIIowing grounds:
(a) Non-submission of contracts between the
principaI and the contractor or subcontractor
when required to do so;
(b) Non-submission of annuaI report;
(c) Findings through arbitration that the
contractor or subcontractor has engaged in Iabor-
onIy contracting and the prohibited activities as
provided in Section 6 (Prohibitions) hereof; and
(d) Non-compIiance with Iabor standards and
working conditions.
Section 17. Renewal of registration of contractors
or subcontractors. - AII registered contractors or
subcontractors may appIy for renewaI of
registration every three years. For this purpose,
the Tripartite IndustriaI Peace CounciI (TIPC) as
created under Executive Order No. 49, shaII serve
as the oversight committee to verify and monitor
the foIIowing:
(a) Engaging in aIIowabIe contracting activities;
and
(b) CompIiance with administrative reporting
requirements.
Section 18. Enforcement of Labor Standards and
Working Conditions. - Consistent with ArticIe 128
(VisitoriaI and Enforcement Power) of the Labor
Code, as amended, the RegionaI Director through
his duIy authorized representatives, incIuding
Iabor reguIation officers shaII have the authority
to conduct routine inspection of estabIishments
engaged in contracting or subcontracting and
shaII have access to empIoyer'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 empIoyee and
investigate any fact, condition or matter which
may be necessary to determine vioIations or
which may aid in the enforcement of the Labor
Code and of any Iabor Iaw, wage order, or ruIes
and reguIations issued pursuant thereto.
The findings of the duIy authorized representative
shaII be referred to the RegionaI Director for
appropriate action as provided for in ArticIe 128,
and shaII be furnished the coIIective bargaining
agent, if any.
Based on the visitoriaI and enforcement power of
the Secretary of Labor and EmpIoyment in ArticIe
128 (a), (b), (c) and (d), the RegionaI Director shaII
issue compIiance orders to give effect to the Iabor
Duman / Labor I / Prof. Battad / Page 15
standards provisions of the Labor Code, other
Iabor IegisIation and these guideIines.
Section 19. Solidary liability. - The principaI shaII
be deemed as the direct empIoyer of the
contractuaI empIoyees and therefore, soIidariIy
IiabIe with the contractor or subcontractor for
whatever monetary cIaims the contractuaI
empIoyees may have against the former in the
case of vioIations as provided for in Sections 5
(Labor-OnIy contracting), 6 (Prohibitions), 8
(Rights of ContractuaI EmpIoyees) and 16
(DeIisting) of these RuIes. In addition, the
principaI shaII aIso be soIidariIy IiabIe in case the
contract between the principaI and contractor or
subcontractor is preterminated for reasons not
attributabIe to the fauIt of the contractor or
subcontractor.
Section 20. Supersession. - AII ruIes and
reguIations issued by the Secretary of Labor and
EmpIoyment inconsistent with the provisions of
this RuIe are hereby superseded. Contracting or
subcontracting arrangements in the construction
industry, under the Iicensing coverage of the
PCAB and shaII not incIude shipbuiIding and ship
repairing works, however, shaII continue to be
governed by Department Order No. 19, series of
1993.
Section 21. Effectivity. - This Order shaII be
effective fifteen (15) days after compIetion of its
pubIication in two (2) newspapers of generaI
circuIation.
.
ManiIa, PhiIippines, 21 February 2002.
a. Requrements for Independent Contractor
San Mgue Corp v. NLRC & Maks, GR No.
147566, Dec. 6, 2006
LIIKHA-PMPB v. Burnggame corp., GR No.
162833, |une 15, 2007
b. Desrabe - Unnecessary
Coca-Coa Botters Ph., Inc. v. NLRC, 307 SCRA
131 (1999)
c. Labor Contractor Ony; Requstes and Prohbton
Mana Water Co., Inc. v. Pena, 434 SCRA 52
(2004)
Duman / Labor I / Prof. Battad / Page 16
d. Effect of Fndng
San Mgue Corporaton v. Abea, 461 SCRA 392
(2005)
3. Labty of Indrect Empoyer
Lanzaderas v. Amethyst Securty & Genera Servces,
Inc., supra
D. Pre-employment, Recruitment and Placement
of Workers
Reference: Arts. 12-42; POEA Rues; Book 1, Rues III-
VIII, Omnbus Rues; Mgrant Workers and Overseas
Fpnos Act of 1995 (RA 8042); Ant-Traffckng n
Persons Act 2003 (RA 9208) and Rues and
Reguatons Impementng RA 9208
1. Pre-empoyment Pocy - Statement of
Ob|ectves, Art. 12 (a) (f);
Const., Art. II, Sec. 9; RA 8042, Sec. 2, 4 & 5.
ART. 12. Statement of objectives. - t is the policy of
the State:
a) To promote and maintain a state of full
employment through improved manpower
training, allocation and utilization;
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;
1987 Constitution, Art , Sec. 9
The State shall promote a just and dynamic
social order that will ensure the prosperity
and independence of the nation and free the
people from poverty through policies that
provide adequate social services, promote
full employment, a rising standard of living,
and an improved quality of life for all.
REPUBLC ACT NO. 8042
SEC. 2. DECLARATON OF POLCES--
(a) n the pursuit of an independent foreign
policy and while considering national
sovereignty, territorial integrity, national
interest and the right to self-determination
paramount in its relations with other states,
the State shall, at all times, uphold the
dignity of its citizens whether in country or
Duman / Labor I / Prof. Battad / Page 17
overseas, in general, and Filipino migrant
workers, in particular.
(b) The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment
and equality of employment opportunities for
all. Towards this end, the State shall provide
adequate and timely social, economic and
legal services to Filipino migrant workers.
(c) While recognizing the significant
contribution of Filipino migrant workers to the
national economy through their foreign
exchange remittances, the State does not
promote overseas employment as a means
to sustain economic growth and achieve
national development. The existence of the
overseas employment program rests solely
on the assurance that the dignity and
fundamental human rights and freedoms of
the Filipino citizens shall not, at any time, be
compromised or violated. The State,
therefore, shall continuously create local
employment opportunities and promote the
equitable distribution of wealth and the
benefits of development.
(d) The State affirms the fundamental
equality before the law of women and men
and the significant role of women in nation-
building. Recognizing the contribution of
overseas migrant women workers and their
particular vulnerabilities, the State shall
apply gender sensitive criteria in the
formulation and implementation of policies
and programs affecting migrant workers and
the composition of bodies tasked for the
welfare of migrant workers.
(e) Free access to the courts and quasi-
judicial bodies and adequate legal
assistance shall not be denied to any
persons by reason of poverty. n this regard,
it is imperative that an effective mechanism
be instituted to ensure that the rights and
interest of distressed overseas Filipinos, in
general, and Filipino migrant workers, in
particular, documented or undocumented,
are adequately protected and safeguarded.
(f) The right of Filipino migrant workers and
all overseas Filipinos to participate in the
democratic decision-making processes of
the State and to be represented in
institutions relevant to overseas employment
is recognized and guaranteed.
(g) The State recognizes that the ultimate
protection to all migrant workers is the
possession of skills. Pursuant to this and as
soon as practicable, the government shall
deploy and/or allow the deployment only to
skilled Filipino workers.
(h) Non-governmental organizations, duly
recognized as legitimate, are partners of the
State in the protection of Filipino migrant
workers and in the promotion of their
welfare, the State shall cooperate with them
in a spirit of trust and mutual respect.
() Government fees and other administrative
costs of recruitment, introduction, placement
and assistance to migrant workers
shall be rendered free without prejudice to
the provision of Section 36 hereof.
Nonetheless, the deployment of Filipino
overseas workers, whether land-based or
sea-based by local service contractors and
manning agencies employing them shall be
encouraged. Appropriate incentives may be
extended to them.
. DEPLOYMENT
SEC. 4. Deployment of Migrant Workers -
The State shall deploy overseas Filipino
workers only in countries where the rights of
Filipino migrant workers are protected. The
government recognizes any of the following
as guarantee on the part of the receiving
country for the protection and the rights of
overseas Filipino workers:
(a) t has existing labor and social laws
protecting the rights of migrant workers;
(b) t is a signatory to multilateral
conventions, declaration or resolutions
relating to the protection of migrant workers;
(c) t has concluded a bilateral agreement or
arrangement with the government protecting
the rights of overseas Filipino workers; and
(d) t is taking positive, concrete measures to
protect the rights of migrant workers.
SEC. 5. TERMNATON OR BAN ON
DEPLOYMENT - Notwithstanding the
provisions of Section 4 hereof, the
government, in pursuit of the national
interest or when public welfare so requires,
may, at any time, terminate or impose a ban
on the deployment of migrant workers.
2. Prvate Sector - Agences and Enttes
a. Partes
1) Worker - Art. 13 (a)
ART. 13. Definitions. - (a) "Worker" means
any member of the labor force, whether employed or
unemployed.
2) Prvate Empoyment Agency - Arts. 13 (c) (d), 12
(f), 14 (a)
ART. 13. (c) "Private fee-charging
employment agency" means any person or
entity engaged in recruitment and placement
of workers for a fee which is charged,
directly or indirectly, from the workers or
employers or both.
(d) "License" means a document issued by
the Department of Labor authorizing a
person or entity to operate a private
employment agency.
ART. 12. Statement of objectives. - t is the
policy of the State:
Duman / Labor I / Prof. Battad / Page 18
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and
authority:
(a) To organize and establish new
employment offices in addition to the existing
employment offices under the Department of
Labor as the need arises;
3) Prvate Recrutment Entty - Arts. 13 (e) (f), 12 (f),
14 (a)
ART. 13. (e) "Private recruitment entity"
means any person or association engaged in
the recruitment and placement of workers,
locally or overseas, without charging, directly
or indirectly, any fee from the workers or
employers.
(f) "Authority" means a document issued by
the Department of Labor authorizing a
person or association to engage in
recruitment and placement activities as a
private recruitment entity.
ART. 12. Statement of objectives. - t is the
policy of the State:
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and
authority:
(a) To organize and establish new
employment offices in addition to the existing
employment offices under the Department of
Labor as the need arises;
b. Recrutment and Pacement
1) Loca Empoyment, Art. 13 (b)
(b) "Recruitment and placement" refers to
any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring
workers, and includes referrals, contract
services, promising or advertising for
employment, locally or abroad, whether for
profit or not: Provided, 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.
2) Overseas Empoyment, Sec. 6, RA 8042
Sec. 6. DEFNTONS. - For purposes of this
Act, illegal recruitment shall mean any act of
canvassing, enlisting, contracting,
transporting, utilizing, hiring, procuring
workers and includes referring, contact
services, promising or advertising for
employment abroad, whether for profit or
not, when undertaken by a non-license or
non-holder of authority contemplated under
Article 13(f) of Presidential Decree No. 442,
as amended, otherwise known as the Labor
Code of the Philippines. Provided, that such
non-license or non-holder, who, in any
manner, offers or promises for a fee
employment abroad to two or more persons
shall be deemed so engaged. t shall
likewise include the following acts, whether
committed by any persons, whether a non-
licensee, non-holder, licensee or holder of
authority.
(a) To charge or accept directly or indirectly
any amount greater than the specified in the
schedule of allowable fees prescribed by the
Secretary of Labor and Employment, or to
make a worker pay any amount greater than
that actually received by him as a loan or
advance;
(b) To furnish or publish any false notice or
information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony,
information or document or commit any act
of misrepresentation for the purpose of
securing a license or authority under the
Labor Code;
(d) To induce or attempt to induce a worker
already employed to quit his employment in
order to offer him another unless the transfer
is designed to liberate a worker from
oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any
persons or entity not to employ any worker
who has not applied for employment through
his agency;
(f) To engage in the recruitment of placement
of workers in jobs harmful to public health or
morality or to dignity of the Republic of the
Philippines;
(g) To obstruct or attempt to obstruct
inspection by the Secretary of Labor and
Employment or by his duly authorized
representative;
(h) To fail to submit reports on the status of
employment, placement vacancies,
remittances of foreign exchange earnings,
separations from jobs, departures and such
other matters or information as may be
required by the Secretary of Labor and
Employment;
Duman / Labor I / Prof. Battad / Page 19
(i) To substitute or alter to the prejudice of
the worker, employment contracts approved
and verified by the Department of Labor and
Employment from the time of actual signing
thereof by the parties up to and including the
period of the expiration of the same without
the approval of the Department of Labor and
Employment;
(j) For an officer or agent of a recruitment or
placement agency to become an officer or
member of the Board of any corporation
engaged in travel agency or to be engaged
directly on indirectly in the management of a
travel agency;
(k) To withhold or deny travel documents
from applicant workers before departure for
monetary or financial considerations other
than those authorized under the Labor Code
and its implementing rules and regulations;
(l) Failure to actually deploy without valid
reasons as determined by the Department of
Labor and Employment; and
(m) Failure to reimburse expenses incurred
by the workers in connection with his
documentation and processing for purposes
of deployment, in cases where the
deployment does not actually take place
without the worker's fault. llegal recruitment
when committed by a syndicate or in large
scale shall be considered as offense
involving economic sabotage.
llegal recruitment is deemed committed by a
syndicate carried out by a group of three (3)
or more persons conspiring or confederating
with one another. t is deemed committed in
large scale if committed against three (3) or
more persons individually or as a group.
The persons criminally liable for the above
offenses are the principals, accomplices and
accessories. n case of juridical persons, the
officers having control, management or
direction of their business shall be liable.
c. Aowed and Protected Enttes
1) Aowed Prvate Agences and Enttes, Arts. 16,
18, 25, 12 (f)
ART. 16. Private recruitment. - Except as
provided in Chapter of this Title, no person
or entity other than the public employment
offices, shall engage in the recruitment and
placement of workers.
ART. 18. Ban on direct-hiring. - No employer
may hire a Filipino worker for overseas
employment except through the Boards and
entities authorized by the Secretary of Labor.
Direct-hiring by members of the diplomatic
corps, international organizations and such
other employers as may be allowed by the
Secretary of Labor is exempted from this
provision.
ART. 25. Private sector participation in the
recruitment and placement of workers. -
Pursuant to national development objectives
and in order to harness and maximize the
use of private sector resources and initiative
in the development and implementation of a
comprehensive employment program, the
private employment sector shall participate
in the recruitment and placement of workers,
locally and overseas, under such guidelines,
rules and regulations as may be issued by
the Secretary of Labor.
ART. 12. Statement of objectives. - t is the
policy of the State:
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;
2) Prohbted Busness Agences and Enttes, Arts.
16, 18, 25, 26
ART. 16. Private recruitment. - Except as provided in
Chapter of this Title, no person or entity other than
the public employment offices, shall engage in the
recruitment and placement of workers.
ART. 18. Ban on direct-hiring. - No employer may hire
a Filipino worker for overseas employment except
through the Boards and entities authorized by the
Secretary of Labor. Direct-hiring by members of the
diplomatic corps, international organizations and such
other employers as may be allowed by the Secretary
of Labor is exempted from this provision.
ART. 25. Private sector participation in the recruitment
and placement of workers. - Pursuant to national
development objectives and in order to harness and
maximize the use of private sector resources and
initiative in the development and implementation of a
comprehensive employment program, the private
employment sector shall participate in the recruitment
and placement of workers, locally and overseas,
under such guidelines, rules and regulations as may
be issued by the Secretary of Labor.
ART. 26. Travel agencies prohibited to recruit. - Travel
agencies and sales agencies of airline companies are
prohibited from engaging in the business of
recruitment and placement of workers for overseas
employment whether for profit or not.
d. Government Technques of Reguaton - Prvate
Recrutment
1) Lcensng, Arts. 27, 28, 29, 30, 31, POEA rues and
Reguatons, Book II, Sec. 1 and Book II, Rue II
ART. 27. Citizenship requirement. - Only
Filipino citizens or corporations, partnerships
or entities at least seventy-five percent
(75%) of the authorized and voting capital
stock of which is owned and controlled by
Filipino citizens shall be permitted to
participate in the recruitment and placement
of workers, locally or overseas.
ART. 28. Capitalization. - All applicants for
authority to hire or renewal of license to
recruit are required to have such substantial
Duman / Labor I / Prof. Battad / Page 20
capitalization as determined by the Secretary
of Labor.
ART. 29. Non-transferability of license or
authority. - No license or authority shall be
used directly or indirectly by any person
other than the one in whose favor it was
issued or at any place other than that stated
in the license or authority be transferred,
conveyed or assigned to any other person or
entity. Any transfer of business address,
appointment or designation of any agent or
representative including the establishment of
additional offices anywhere shall be subject
to the prior approval of the Department of
Labor.
ART. 30. Registration fees. - The Secretary
of Labor shall promulgate a schedule of fees
for the registration of all applicants for
license or authority.
ART. 31. Bonds. - All applicants for license or
authority shall post such cash and surety
bonds as determined by the Secretary of
Labor to guarantee compliance with
prescribed recruitment procedures, rules and
regulations, and terms and conditions of
employment as may be appropriate.
POEA RuIes, Book II,
LICENSING AND REGULATION
RULE I
PARTICIPATION OF THE PRIVATE SECTOR IN THE
OVERSEAS EMPLOYMENT PROGRAM
Section 1. Qualifications. Only those who
possess the following qualifications may be
permitted to engage in the business of
recruitment and placement of Filipino
workers:
a. Filipino citizens, partnerships or
corporations at least seventy five percent
(75%) of the authorized capital stock of
which is owned and controlled by Filipino
citizens;
b. A minimum capitalization of Two Million
Pesos (P2,000,000.00) in case of a single
proprietorship or partnership and a minimum
paid-up capital of Two Million Pesos
(P2,000,000.00) in case of a corporation;
Provided that those with existing licenses
shall, within four years from effectivity
hereof, increase their capitalization or paid
up capital, as the case may be, to Two
Million Pesos (P2,000,000.00) at the rate of
Two Hundred Fifty Thousand Pesos
(P250,000.00) every year.
c. Those not otherwise disqualified by law or
other government regulations to engage in
the recruitment and placement of workers for
overseas employment.
RULE
SSUANCE OF LCENSE

Section 1. Requirements for Issuance of
License. - Every applicant for license to
operate a private employment agency or
manning agency shall submit a written
application together with the following
requirements:
a. A certified copy of the Articles of
ncorporation or of Partnership duly
registered with the Securities and Exchange
Commission (SEC), in the case of
corporation or partnership or Certificate of
Registration of firm or business name with
the Bureau of Domestic Trade (BDT) in the
case of a single proprietorship;
b. Proof of financial capacity: n the case of
a single proprietorship or partnership,
verified income tax returns for the past two
(2) years and a bank certificate of a cash
deposit of P250,000.00, provided that the
applicant should submit an authority to
examine such bank deposit.
n the case of a newly organized corporation,
submission of a bank certificate of a cash
deposit of at least P250,000.00 with authority
to examine the same. For an existing
corporation, submission of a verified financial
statement, corporate tax returns for the past
two (2) years and bank certification of a cash
deposit of at least P250,000.00 with the
corresponding authority to examine such
deposit.
c. Escrow agreement in the amount of
P200,000.00 with an accredited reputable
banking corporation to primarily answer for
valid and legal claims of recruited workers as
a result of recruitment violations or money
claims;
d. Clearance of all members of the Board of
Directors, partner, or proprietor of the
applicant agency from the National Bureau
of nvestigation (NB) and other government
agencies as the need may require, Fiscal's
clearance in case of persons with criminal
cases; provided that where the member or
partner concerned is a foreigner, clearance
from his country of origin shall be
acceptable;
e. Proof of marketing capability;

For land-based applicants:

An applicant with an actual principal/foreign
employer to be serviced, shall at the time of
application submit the following documents
for evaluation:

Duman / Labor I / Prof. Battad / Page 21
(1) A duly executed Special Power of
Attorney authenticated by the Philippine
Embassy/Consulate or Labor Attache in the
place where the principal/employers hold
their office; or

(2) A concluded service/recruitment
agreement authenticated by the Philippine
Embassy/Consulate, or Labor Attache in the
place where the project/job site is located;

(3) An authenticated manpower mobilization
request or visa approval of not less than fifty
(50) workers for deployment within a period
not exceeding six (6) months from issuance
of approved license;

An applicant who, at the time of application
is unable to present a foreign
principal/employer shall, upon compliance
with all other licensing requirements as
herein provided, be issued a provisional
license, subject to submission of a verified
undertaking to deploy at least fifty (50)
workers, exclusive of direct hired, within a
period not exceeding six (6) months from
date of issuance of provisional license. t is
understood that failure to comply with this
undertaking shall result in the automatic
revocation of the provisional license.

For manning applicants:
(1) A duly executed Special Power of
Attorney authenticated by the Philippine
Embassy/Consulate or Labor Attache in
place where the vessel
owners/operators/manager hold their
principal office; or

(2) A duly concluded manning agreement
authenticated by the Philippine Embassy,
Consulate, or Labor Attache in the place
where the vessel/owners/operators/
manager hold their principal office;

(3) A manpower mobilization request of not
less than fifty (50) seafarers for deployment
within a period not exceeding six (6) months
from issuance of approved license.
f. A verified undertaking stating that the
applicant:
(1) Shall select only medically and
technically qualified recruits;

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

(3) Shall assume joint and solidary liability
with the employer for all claims and liabilities
which may arise in connection with the
implementation of the contract, including but
not limited to payment of wages, death and
disability compensation and repatriation;

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

(5) Shall assume full and complete
responsibility for all acts of its officials,
employees and representatives done in
connection with recruitment and placement;
g. List of all officials and personnel involved
in the recruitment and placement, together
with their appointment, bio-data and two (2)
copies of their passport-size pictures.
h. Copy of contract of lease or proof of
building ownership together with office
address.
Section 2. Action on the Application. - Within
thirty (30) calendar days from receipt of
application or requirements including proof of
payment of a non-refundable filing fee of
P5,000.00, the Administration shall evaluate
pertinent documents of the applicant, inspect
the offices and equipment and recommend
to the Secretary the approval or denial of the
application.
Section 3. Issuance of License. - The
Administration shall recommend to the
Secretary issuance of the corresponding
license upon due evaluation and compliance
with licensing requirements and operational
standards.
Section 4. Payment of Fees and Posting of
Bonds. - Upon approval of the application,
the applicant shall pay a license fee of
P30,000.00. t shall also post a cash bond of
P100,000.00 and a surety bond of
P50,000.00 from a bonding company
acceptable to the Administration and duly
accredited by the nsurance Commission.
The bonds shall answer for all valid and legal
claims arising from violations of the
conditions for the grant and use of the
license, and/or accreditation and contracts of
employment. The bonds shall likewise
guarantee compliance with the provisions of
the Code and its implementing rules and
regulations relating to recruitment and
placement, the Rules of the Administration
and relevant issuances of the Department
and all liabilities which the Administration
may impose. The surety bonds shall include
the condition "that notice to the principal is
notice to the surety and that any judgment
against the principal in connection with
matters falling under POEA's jurisdiction
shall be binding and conclusive on the
surety. The surety bonds shall be co-
terminus with the validity period of the
license.
Section 5. Validity of License. - Every
license shall be valid for at least two (2)
years from the date of issuance unless
Duman / Labor I / Prof. Battad / Page 22
sooner cancelled or revoked by the
Secretary or suspended by the
Administration for violation of the Code and
its rules and relevant decrees, orders and
issuances and other rules and regulations of
the Department. Such license shall be valid
only at the place/s stated therein and when
used by the licensed person, partnership or
corporation.
Section 6. Non-Transferability of License. -
No license shall be transferred, conveyed or
assigned to any person, partnership or
corporation. t shall not be used directly or
indirectly by any person, partnership or
corporation other than the one in whose
favor it was issued. Violation shall cause
automatic revocation of license.
n case of death of the sole proprietor, and in
order to prevent disruption of operation and
so as not to prejudice the interest of
legitimate heirs, the licensed single
proprietorship may be allowed to continue
only for the purpose of winding up its
business operation.
Section 7. Change of
Ownership/Relationship of Single
Proprietorship or Partnership. - Transfer or
change of ownership of a single
proprietorship licensed to engage in
overseas employment shall cause the
automatic revocation of the license. The
new owner shall be required to apply for a
license in accordance with these Rules.
A change in the relationship of the partners
in a partnership duly licensed to engage in
overseas employment which materially
interrupts the course of the business or
results in the actual dissolution of the
partnership shall likewise cause the
automatic revocation of the license.
Section 8. Upgrading of Single
Proprietorship or Partnerships. - License
holders which are single proprietorships or
partnerships may, subject to the guidelines
of the Administration, convert into
corporation for purposes of upgrading or
raising their capabilities to respond
adequately to developments/changes in the
international labor market and to enable
them to better comply with their
responsibilities arising from the recruitment
and deployment of workers overseas.
The approval of merger, consolidation or
upgrading shall automatically revoke or
cancel the licenses of the single
proprietorships, partnerships or corporations
so merged, consolidated or upgraded.
Section 9. Change of Directors of
Corporation. - Every change in the
composition of the Board of Directors of a
corporation licensed to participate in
overseas employment shall be registered
with the Administration within thirty (30)
calendar days from the date the change was
decided or approved. The corporation shall
be required to submit to the Administration
the Minutes of Proceedings duly certified by
the SEC, the bio-data and clearances of the
new members of the Board from the
government agencies identified in Section 1
(e) of this Rule.
Section 10. Change of Other Officers and
Personnel. - Every change or termination of
appointment of officers, representatives and
personnel shall be registered with the
Administration within thirty (30) calendar
days from the date of such change.
The Administration reserves the right to deny
the appointment of officers and employees
who were directly involved in recruitment
irregularities.
Section 11. Appointment of
Representatives. - Every appointment of
representatives or agents of licensed agency
shall be subject to prior approval or authority
of the Administration.

The approval may be issued upon
submission of or compliance with the
following requirements:
a. Proposed appointment or special power of
attorney;

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

c. A sworn or verified statement by the
designating or appointing person or
company assuming full responsibility for all
acts of the agent or representative done in
connection with the recruitment and
placement of workers;
Section 12. Publication of Change of
Directors/Other Officers and Personnel/
Revocation or Amendment of Appointment
of Representatives. - n addition to the
requirement of registration with and
submission to the Administration, every
change in the membership of the Board of
Directors, resignation/termination of other
officers and personnel, revocation or
amendment of appointment of
representatives shall be published at least
once in a newspaper of general circulation,
in order to bind third parties. Proof of such
publication shall be submitted to the
Administration
Section 13. Transfer of Business Address
and Studio. - Any transfer of business
address shall be effected only with prior
authority or approval of the Administration.
The approval shall be issued only upon
formal notice of the intention to transfer with
the following attachments:
Duman / Labor I / Prof. Battad / Page 23
a. Copy of the company's notice to the BDT
or the SEC on the transfer of business
address;

b. n the case of a corporation, a Board
Resolution duly registered with the SEC
authorizing the transfer of business address;


c. n the case of a single proprietorship, a
copy of the BDT's acknowledgment of the
notice to transfer; and

d. Copy of the contract of lease or proof of
building ownership.
The new office shall be subject to the normal
ocular inspection procedures by duly
authorized representatives of the
Administration.
A notice to the public of the new address
shall be published in a newspaper of general
circulation.
Section 14. Establishment of Executive
Office. - The establishment of an executive
office outside of the registered address shall
be effected only with prior approval or
authority of the Administration. The approval
may be issued upon submission of an
affidavit of undertaking to the effect that no
recruitment activity whatsoever shall be
conducted thereat and that the agency has a
valid contract of lease or building ownership.
Section 15. Establishment of Branch and
Extension Offices. - Branch and extension
offices may be established in areas
approved by the Secretary, subject to
implementing guidelines.
Section 16. Conduct of Recruitment Outside
of Registered Office, Branch or Extension
Office. - No licensed agency shall conduct
any provincial recruitment, job fairs or
recruitment activities of any form outside of
the address stated in the license,
acknowledged Branch or Extension Office or
without first securing prior authority from the
Administration of the Center.
Section 17. Renewal of License. - An
agency shall submit an application for the
renewal thereof to the Administration. Such
application shall be supported by the
following documents:
a. Proof of foreign exchange earnings issued
by the Central Bank;

b. Surety bond duly renewed or revalidated;

c. Escrow agreement in the amount of
P200,000.00 with an accredited reputable
banking corporation to primarily answer for
valid and legal claims of recruited workers as
a result of recruitment violations or money
claims;

d. Replenishment of the cash bond in case
such or any part thereof is garnished;

e. Proof of financial capacity such as but not
limited to verified financial statements for the
past two (2) years, verified corporate or
individual tax returns with confirmation
receipts, and compliance with capitalization
requirements and infusion thereof as the
case may be, as certified by the Securities
and Exchange Commission;

f. Summary of deployment reports during the
validity of the license sought to be renewed;

g. Summary of payroll reports in case of
contractors and manning agencies during
the validity of the license sought to be
renewed; and

h. Other requirements as may be imposed
by the Administration.
Section 18. Non-expiration of License. -
Where the license holder has made timely
and sufficient application for renewal, the
existing license shall not expire until the
application shall have been finally
determined by the Administration.
Section 19. Action on Renewal of License. -
Within thirty (30) calendar days from receipt
of the application for renewal the
Administration shall undertake evaluation
and inspection and thereafter recommend to
the Secretary the grant or denial of the
application.
Section 20. Failure to Renew. - Any agency
which fails to obtain a renewal of its license
within thirty (30) calendar days from
expiration thereof, shall be immediately
deemed delisted and disallowed from
conducting recruitment and placement.
Section 21. Denial of Renewal of Licenses.
- Licenses of agencies which fail to conclude
a recruitment or manning agreement and/or
undertake minimum levels of worker
deployment and foreign exchange
generation or those which fail to meet the
minimum operational standards and
requirements set by the Administration, shall
not be renewed.
Section 22. When to Consider Cash
Bond/Deposit in Escrow Garnished. - As
soon as an Order of Garnishment is served
upon the Administration/Bank, and the same
is correspondingly earmarked, the cash
bond/deposit in escrow of an agency shall no
longer be considered sufficient. The
Administration shall forthwith serve upon the
agency a notice to replenish.
Section 23. Replenishment of Cash or
Surety Bonds/Deposit in Escrow. - Within
fifteen (15) calendar days from date of
receipt of notice from the Administration that
Duman / Labor I / Prof. Battad / Page 24
the bonds/deposit in escrow, or any part
thereof had been garnished, the agency
shall replenish the same. Failure to
replenish such bonds/deposit in escrow
within the said period shall cause the
suspension of the license.
Section 24. Refund of Cash Bond/Release
of Deposit in Escrow. - A licensed agency
which voluntarily surrenders its license shall
be entitled to the refund of its deposited cash
bond and release of the deposit in escrow,
only after posting a surety bond of similar
amount valid for four (4) years from
expiration of license.
Section 25. Evaluation of Performance of
Agencies. - The Administration shall
undertake the annual evaluation and rating
of the performance of licensed agencies to
determine the merits of their continued
participation in the overseas employment
program taking into consideration
compliance with laws and regulations and
such other criteria as it may deem proper.
Section 26. Classification and Ranking. -
The Administration may undertake the
classification and ranking of agencies. n
recognition of exemplary performance, it
may undertake schemes for incentives and
rewards.
2) Workers Fees, Art. 32
ART. 32. Fees to be paid by workers. - Any
person applying with a private fee-charging
employment agency for employment
assistance shall not be charged any fee until
he has obtained employment through its
efforts or has actually commenced
employment. Such fee shall be always
covered with the appropriate receipt clearly
showing the amount paid. The Secretary of
Labor shall promulgate a schedule of
allowable fees.
3) Reports/Empoyment Informaton, Arts. 33, 14 (d)
ART. 33. Reports on employment status. -
Whenever the public interest requires, the
Secretary of Labor may direct all persons or
entities within the coverage of this Title to
submit a report on the status of employment,
including job vacancies, details of job
requisitions, separation from jobs, wages,
other terms and conditions and other
employment data.
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and
authority:
(d) To require any person, establishment,
organization or institution to submit such
employment information as may be
prescribed by the Secretary of Labor.
4) Prohbted Practces, Art. 34
ART. 34. Prohibited practices. - t shall be
unlawful for any individual, entity, licensee,
or holder of authority:
(a) To charge or accept, directly or indirectly,
any amount greater than that specified in the
schedule of allowable fees prescribed by the
Secretary of Labor, or to make a worker pay
any amount greater than that actually
received by him as a loan or advance;
(b) To furnish or publish any false notice or
information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony,
information or document or commit any act
of misrepresentation for the purpose of
securing a license or authority under this
Code.
(d) To induce or attempt to induce a worker
already employed to quit his employment in
order to offer him to another unless the
transfer is designed to liberate the worker
from oppressive terms and conditions of
employment;
(e) To influence or to attempt to influence
any person or entity not to employ any
worker who has not applied for employment
through his agency;
(f) To engage in the recruitment or placement
of workers in jobs harmful to public health or
morality or to the dignity of the Republic of
the Philippines;
(g) To obstruct or attempt to obstruct
inspection by the Secretary of Labor or by
his duly authorized representatives;
(h) To fail to file reports on the status of
employment, placement vacancies,
remittance of foreign exchange earnings,
separation from jobs, departures and such
other matters or information as may be
required by the Secretary of Labor.
(i) To substitute or alter employment
contracts approved and verified by the
Department of Labor from the time of actual
signing thereof by the parties up to and
including the periods of expiration of the
same without the approval of the Secretary
of Labor;
(j) To become an officer or member of the
Board of any corporation engaged in travel
agency or to be engaged directly or indirectly
in the management of a travel agency; and
(k) To withhold or deny travel documents
from applicant workers before departure for
monetary or financial considerations other
than those authorized under this Code and
its implementing rules and regulations.
Duman / Labor I / Prof. Battad / Page 25
5) Iega Recrutment, Art. 38; Sec. 6, RA 8042
ART. 38. Illegal recruitment. - (a) Any
recruitment activities, including the prohibited
practices enumerated under Article 34 of this
Code, to be undertaken by non-licensees or
non-holders of authority, shall be deemed
illegal and punishable under Article 39 of this
Code. The Department of Labor and
Employment or any law enforcement officer
may initiate complaints under this Article.
(b) llegal recruitment when committed by a
syndicate or in large scale shall be
considered an offense involving economic
sabotage and shall be penalized in
accordance with Article 39 hereof.
llegal recruitment is deemed committed by a
syndicate if carried out by a group of three
(3) or more persons conspiring and/or
confederating with one another in carrying
out any unlawful or illegal transaction,
enterprise or scheme defined under the first
paragraph hereof. llegal recruitment is
deemed committed in large scale if
committed against three (3) or more persons
individually or as a group.
(c) The Secretary of Labor and Employment
or his duly authorized representatives shall
have the power to cause the arrest and
detention of such non-licensee or non-holder
of authority if after investigation it is
determined that his activities constitute a
danger to national security and public order
or will lead to further exploitation of job-
seekers. The Secretary shall order the
search of the office or premises and seizure
of documents, paraphernalia, properties and
other implements used in illegal recruitment
activities and the closure of companies,
establishments and entities found to be
engaged in the recruitment of workers for
overseas employment, without having been
licensed or authorized to do so.
6) Enforcement
a) Reguatory Power, Art. 36
ART. 36. Regulatory power. - The Secretary
of Labor shall have the power to restrict and
regulate the recruitment and placement
activities of all agencies within the coverage
of this Title and is hereby authorized to issue
orders and promulgate rules and regulations
to carry out the objectives and implement the
provisions of this Title.
b) Rue-Makng Power, Art. 36
c) Vstora Power, Art. 37
ART. 37. Visitorial Power. - The Secretary of
Labor or his duly authorized representatives
may, at any time, inspect the premises,
books of accounts and records of any person
or entity covered by this Title, require it to
submit reports regularly on prescribed forms,
and act on violation of any provisions of this
Title.
7) |ont and Severa Labty of Agent and Prncpa,
POEA Rues, Book II, Rue II, Sec. 1 (f)
Section 1. Requirements for Issuance of
License. - Every applicant for license to
operate a private employment agency or
manning agency shall submit a written
application together with the following
requirements:
f. A verified undertaking stating that the
applicant:
(1) Shall select only medically and technically
qualified recruits;

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

(3) Shall assume joint and solidary liability with the
employer for all claims and liabilities which may
arise in connection with the implementation of the
contract, including but not limited to payment of
wages, death and disability compensation and
repatriation;

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

(5) Shall assume full and complete responsibility for
all acts of its officials, employees and
representatives done in connection with recruitment
and placement;
e. |ursdcton
1) RTC over Crmna Acton arsng from Iega
Recrutment, RA No. 8042, Sec. 9
SEC. 9. VENUE. - A criminal action arising from illegal
recruitment as defined herein shall be filed with the
Regional Trial Court of the province or city where the
offense was committed or where the offended party
actually resides at the same time of the commission
of the offense: Provided, That the court where the
criminal action is first filed shall acquire jurisdiction to
the exclusion of other courts. Provided, however, That
the aforestated provisions shall also apply to those
criminal actions that have already been filed in court
at the time of the effectivity of this Act.
2) LA over Money Cams, RA 8042, Sec. 10
SEC. 10. MONEY CLAMS. -
Botwithstanding any provision of law to the
contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall
have the priginal and exclusive jurisdiction to
hear and decide, within ninety (90) calendar
days after filing of the complaint, the claims
Duman / Labor I / Prof. Battad / Page 26
arising out of an employer-employee
relationship or by virtue of any law or
contract involving Filipino workers for
overseas deployment including claims for
actual, moral, exemplary and other forms of
damages.
The liability of the
principal/employer and the
recruitment/placement agency for any and all
claims under this section shall be joint and
several. This provisions shall be
incorporated in the contract for overseas
employment and shall be a condition
precedent for its approval. The performance
bond to be filed by the
recruitment/placement agency, as provided
by law, shall be answerable for all money
claims or damages that may be awarded to
the workers. f the recruitment/placement
agency is a juridical being, the corporate
officers and directors and partners as the
case may be, shall themselves be jointly and
solidarily liable with the corporation or
partnership for the aforesaid claims and
damages.
Such liabilities shall continue
during the entire period or duration of the
employment contract and shall not be
affected by any substitution, amendment or
modification made locally or in a foreign
country of the said contract.
Any compromise/amicable
settlement or voluntary agreement on money
claims inclusive of damages under this
section shall be paid within four (4) months
from the approval of the settlement by the
appropriate authority.
n case of termination of overseas
employment without just, valid or authorized
cause as defined by law or contract, the
workers shall be entitled to the full
reimbursement of his placement fee with
interest of twelve percent (12%) per annum,
plus his salaries for the unexpired portion of
his employment contract or for three (3)
months for every year of the unexpired term,
whichever is less.
Non-compliance with the
mandatory periods for resolutions of cases
provided under this section shall subject the
responsible officials to any or all of the
following penalties:
(a) The salary of any such official
who fails to render his decision or resolutions
within the prescribed period shall be, or
caused to be, withheld until the said official
complies therewith;
(b) Suspension for not more than
ninety (90) days; or
(c) Dismissal from the service with
disqualifications to hold any appointive public
office for five (5) years.
Provided, however, that the
penalties herein provided shall be without
prejudice to any liability which any such
official may have incurred under other
existing laws or rules and regulations as a
consequence of violating the provisions of
this paragraph.
3) POEA over Admnstratve Cases
a) Pre-empoyment Cases, Omnbus rues Imp.
RA No. 8042, Sec. 28 (a)
Sec. 28. Jurisdiction of the POEA. - The
POEA shaII exercise originaI and
excIusive jurisdiction to hear and decide:
(a) aII cases, which are administrative in
character, invoIving or arising out of vioIations of
ruIes and reguIations reIating to Iicensing and
registration of recruitment and empIoyment
agencies or entities; and
b) Dscpnary Cases, Sec. 28 (b)
(b) discipIinary action cases and other
speciaI cases, which are administrative in
character, invoIving empIoyers,
principaIs, contracting partners and
FiIipino migrant workers.
3. Pubc Sector Agences - Empoyment Offces, Art. 12
(f); 14 (a); Sec. 3, Reorganzng POEA (EO No. 247);
POEA Rues
ART. 12. Statement of objectives. - t is the policy of
the State:
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers, locally
and overseas, to serve national development
objectives;
ART. 14. Employment promotion. - The Secretary of
Labor shall have the power and authority:
(a) To organize and establish new
employment offices in addition to the existing
employment offices under the Department of
Labor as the need arises;
EO No. 247, Sec. 3. Powers and Functions. - n the
pursuit of its mandate, the Administration shall have
the following powers and functions:
(a) Regulate private sector participation in
the recruitment and overseas
placement of workers by setting up a
licensing and registration system;

(b) Formulate and implement, in
coordination with appropriate entities
concerned, when necessary, a system
for promoting and monitoring the
overseas employment of Filipino
workers taking into consideration their
welfare and the domestic manpower
requirements;

(c) Protect the rights of Filipino workers
for overseas employment to fair and
equitable recruitment and employment
practices and ensure their welfare;

(d) Exercise original and exclusive
Duman / Labor I / Prof. Battad / Page 27
jurisdiction to hear and decide all claims
arising out of an employer-employee
relationship or by virtue of any law or
contract involving Filipino workers for
overseas employment including the
disciplinary cases; and all pre-
employment cases which are
administrative in character involving or
arising out of violation or requirement
laws, rules and regulations including
money claims arising therefrom, or
violation of the conditions for issuance
of license or authority to recruit workers.

All prohibited recruitment activities and
practices which are penal in character
as enumerated and defined under and
by virtue of existing laws, shall be
prosecuted in the regular courts in
close coordination with the appropriate
Departments and agencies concerned;

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

(f) Recruit and place workers to service
the requirements for trained and
competent Filipino workers by foreign
governments and their instrumentalities
and such other employers as public
interest may require;

(g) Promote the development of skills
and careful selection of Filipino
workers;

(h) Undertake overseas market
development activities for placement of
Filipino workers;

(i) Secure the best terms and conditions
of employment of Filipino contract
workers and ensure compliance
therewith;

(j) Promote and protect the well-being
of Filipino workers overseas;

(k) Develop and implement programs
for the effective monitoring of returning
contract workers, promoting their re-
training and re-employment or their
smooth re-integration into the
mainstream of national economy in
coordination with other government
agencies;

(l) nstitute a system for ensuring fair
and speedy disposition of cases
involving violation or recruitment rules
and regulations as well as violation of
terms and conditions of overseas
employment;

(m) Establish a system for speedy and
efficient enforcement of decisions laid
down through the exercise of its
adjudicatory function;

(n) Establish and maintain close
relationship and enter into joint projects
with the Department of Foreign Affairs,
Philippine Tourism Authority, Manila
nternational Airport Authority,
Department of Justice, Department of
Budget and Management and other
relevant government entities, in the
pursuit of its objectives. The
Administration shall also establish and
maintain joint projects with private
organizations, domestic or foreign, in
the furtherance of its objectives.
4. Sanctons, Arts. 35, 39 (a) (b) (c) (d) (e); RA
8042, Secs. 6 , 7, 10
ART. 35. Suspension and/or cancellation of
license or authority. - The Minister of Labor
shall have the power to suspend or cancel
any license or authority to recruit employees
for overseas employment for violation of
rules and regulations issued by the Ministry
of Labor, the Overseas Employment
Development Board, or for violation of the
provisions of this and other applicable laws,
General Orders and Letters of nstructions.
ART. 39. Penalties. - (a) The penalty of life
imprisonment and a fine of One Hundred
Thousand Pesos (P1000,000.00) shall be
imposed if illegal recruitment constitutes
economic sabotage as defined herein;
(b) Any licensee or holder of authority found
violating or causing another to violate any
provision of this Title or its implementing
rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of
not less than two years nor more than five
years or a fine of not less than P10,000 nor
more than P50,000, or both such
imprisonment and fine, at the discretion of
the court;
(c) Any person who is neither a licensee nor
a holder of authority under this Title found
violating any provision thereof or its
implementing rules and regulations shall,
upon conviction thereof, suffer the penalty of
imprisonment of not less than four years nor
more than eight years or a fine of not less
than P20,000 nor more than P100,000 or
both such imprisonment and fine, at the
discretion of the court;
(d) f the offender is a corporation,
partnership, association or entity, the penalty
shall be imposed upon the officer or officers
of the corporation, partnership, association
or entity responsible for violation; and if such
officer is an alien, he shall, in addition to the
penalties herein prescribed, be deported
without further proceedings;
(e) n every case, conviction shall cause and
carry the automatic revocation of the license
or authority and all the permits and privileges
granted to such person or entity under this
Title, and the forfeiture of the cash and
Duman / Labor I / Prof. Battad / Page 28
surety bonds in favor of the Overseas
Employment Development Board or the
National Seamen Board, as the case may
be, both of which are authorized to use the
same exclusively to promote their objectives.
a. Loca Empoyment, Art. 39
(SEE ABOVE)
b. Overseas Empoyment, Art. 35; RA 8042, Sec. 7
(SEE ABOVE FOR ART. 35)
Sec. 6. DEFNTONS. - For purposes of this Act,
illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring,
procuring workers and includes referring, contact
services, promising or advertising for employment
abroad, whether for profit or not, when undertaken by
a non-license or non-holder of authority contemplated
under Article 13(f) of Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the
Philippines. Provided, that such non-license or non-
holder, who, in any manner, offers or promises for a
fee employment abroad to two or more persons shall
be deemed so engaged. t shall likewise include the
following acts, whether committed by any persons,
whether a non-licensee, non-holder, licensee or
holder of authority.
(a) To charge or accept directly or indirectly any
amount greater than the specified in the schedule of
allowable fees prescribed by the Secretary of Labor
and Employment, or to make a worker pay any
amount greater than that actually received by him as
a loan or advance;
(b) To furnish or publish any false notice or
information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or
document or commit any act of misrepresentation for
the purpose of securing a license or authority under
the Labor Code;
(d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a
worker from oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any persons or
entity not to employ any worker who has not applied
for employment through his agency;
(f) To engage in the recruitment of placement of
workers in jobs harmful to public health or morality or
to dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the
Secretary of Labor and Employment or by his duly
authorized representative;
(h) To fail to submit reports on the status of
employment, placement vacancies, remittances of
foreign exchange earnings, separations from jobs,
departures and such other matters or information as
may be required by the Secretary of Labor and
Employment;
(i) To substitute or alter to the prejudice of the worker,
employment contracts approved and verified by the
Department of Labor and Employment from the time
of actual signing thereof by the parties up to and
including the period of the expiration of the same
without the approval of the Department of Labor and
Employment;
(j) For an officer or agent of a recruitment or
placement agency to become an officer or member of
the Board of any corporation engaged in travel
agency or to be engaged directly on indirectly in the
management of a travel agency;
(k) To withhold or deny travel documents from
applicant workers before departure for monetary or
financial considerations other than those authorized
under the Labor Code and its implementing rules and
regulations;
(l) Failure to actually deploy without valid reasons as
determined by the Department of Labor and
Employment; and
(m) Failure to reimburse expenses incurred by the
workers in connection with his documentation and
processing for purposes of deployment, in cases
where the deployment does not actually take place
without the worker's fault. llegal recruitment when
committed by a syndicate or in large scale shall be
considered as offense involving economic sabotage.
llegal recruitment is deemed committed by a
syndicate carried out by a group of three (3) or more
persons conspiring or confederating with one another.
t is deemed committed in large scale if committed
against three (3) or more persons individually or as a
group.
The persons criminally liable for the above offenses
are the principals, accomplices and accessories. n
case of juridical persons, the officers having control,
management or direction of their business shall be
liable.
SEC. 7. PENALTES -
(a) Any person found guilty of illegal recruitment shall
suffer the penalty of imprisonment of not less than six
(6) years and one (1) day but not more than twelve
(12) years and a fine not less than two hundred
thousand pesos (P200,000.00) nor more than five
hundred thousand pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of not
less than five hundred thousand pesos (P500,000.00)
nor more than one million pesos (P1,000,000.00)
shall be imposed if illegal recruitment constitutes
economic sabotage as defined herein.
Provided, however, that the maximum penalty shall
be imposed if the person illegally recruited is less than
eighteen (18) years of age or committed by a non-
licensee or non-holder of authority.
SEC. 10. MONEY CLAMS. - Notwithstanding any
provision of law to the contrary, the Labor Arbiters of
the National Labor Relations Commission (NLRC)
shall have the priginal and exclusive jurisdiction to
hear and decide, within ninety (90) calendar days
after filing of the complaint, the claims arising out of
an employer-employee relationship or by virtue of any
law or contract involving Filipino workers for overseas
deployment including claims for actual, moral,
exemplary and other forms of damages.
The liability of the principal/employer and
the recruitment/placement agency for any and all
claims under this section shall be joint and several.
This provisions shall be incorporated in the contract
Duman / Labor I / Prof. Battad / Page 29
for overseas employment and shall be a condition
precedent for its approval. The performance bond to
be filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money
claims or damages that may be awarded to the
workers. f the recruitment/placement agency is a
juridical being, the corporate officers and directors
and partners as the case may be, shall themselves be
jointly and solidarily liable with the corporation or
partnership for the aforesaid claims and damages.
Such liabilities shall continue during the
entire period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in a
foreign country of the said contract.
Any compromise/amicable settlement or
voluntary agreement on money claims inclusive of
damages under this section shall be paid within four
(4) months from the approval of the settlement by the
appropriate authority.
n case of termination of overseas
employment without just, valid or authorized cause as
defined by law or contract, the workers shall be
entitled to the full reimbursement of his placement fee
with interest of twelve percent (12%) per annum, plus
his salaries for the unexpired portion of his
employment contract or for three (3) months for every
year of the unexpired term, whichever is less.
Non-compliance with the mandatory periods
for resolutions of cases provided under this section
shall subject the responsible officials to any or all of
the following penalties:
(a) The salary of any such official who fails
to render his decision or resolutions within the
prescribed period shall be, or caused to be, withheld
until the said official complies therewith;
(b) Suspension for not more than ninety
(90) days; or
(c) Dismissal from the service with
disqualifications to hold any appointive public office
for five (5) years.
Provided, however, that the penalties herein
provided shall be without prejudice to any liability
which any such official may have incurred under other
existing laws or rules and regulations as a
consequence of violating the provisions of this
paragraph.
5. Issues and Ouestons on Overseas
Empoyment
Readngs:
Sorano, Ma. Teresa M., lmplications of lnternational
Migration, A
Focus on the Philippine Experience , PLR, Vo 20. No. 2
(1996)
Kng, Amea M., 5ocial and Economic 8enefits and
Costs , PLR, Vo. 9, No. 1 (1985).
Lcuanan, Patrca B. latas ng 5audi, a closer ook.
PLR Vo. 9, No. 1 (1985).
6. Traffckng n Persons, RA 9208 and Rues and
Reguatons Impementng RA 9208
RepubIic of the PhiIippines
Congress of the PhiIippines
Metro Manila
TweIfth Congress
Second ReguIar Session
Begun held in Metro Manila on Monday, the
twenty-second day of July, two thousand two
RepubIic Act No. 9208 May 26, 2003
AN ACT TO INSTITUTE POLICIES TO
ELIMINATE TRAFFICKING IN PERSONS
ESPECIALLY WOMEN AND CHILDREN,
ESTABLISHING THE NECESSARY
INSTITUTIONAL MECHANISMS FOR THE
PROTECTION AND SUPPORT OF
TRAFFICKED PERSONS, PROVIDING
PENALTIES FOR ITS VIOLATIONS, AND FOR
OTHER
Be it enacted by the Senate and the House of
Representatives of the Philippines in Congress
assembled:
Section 1. Title. This Act shall be known as the
"Anti-Trafficking in Persons Act of 2003".
Section 2. Declaration of Policy. ! t is hereby
declared that the State values the dignity of
every human person and guarantees the respect
of individual rights. n pursuit of this policy, the
State shall give highest priority to the enactment
of measures and development of programs that
will promote human dignity, protect the people
from any threat of violence and exploitation,
eliminate trafficking in persons, and mitigate
pressures for involuntary migration and
Duman / Labor I / Prof. Battad / Page 30
servitude of persons, not only to support
trafficked persons but more importantly, to
ensure their recovery, rehabilitation and
reintegration into the mainstream of society.
t shall be a State policy to recognize the equal
rights and inherent human dignity of women and
men as enshrined in the United Nations
Universal Declaration on Human Rights, United
Nations Convention on the Rights of the Child,
United Nations Convention on the Protection of
Migrant Workers and their Families. United
Nations Convention Against Transnational
Organized Crime ncluding its Protocol to
Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children and
all other relevant and universally accepted
human rights instruments and other international
conventions to which the Philippines is a
signatory.
Section 3. Definition of Terms. - As used in this
Act:
(a) Trafficking in Persons - refers to the
recruitment, transportation, transfer or
harboring, or receipt of persons with or
without the victim's consent or
knowledge, within or across national
borders by means of threat or use of
force, or other forms of coercion,
abduction, fraud, deception, abuse of
power or of position, taking advantage
of the vulnerability of the person, or, the
giving or receiving of payments or
benefits to achieve the consent of a
person having control over another
person for the purpose of exploitation
which includes at a minimum, the
exploitation or the prostitution of others
or other forms of sexual exploitation,
forced labor or services, slavery,
servitude or the removal or sale of
organs.
The recruitment, transportation, transfer,
harboring or receipt of a child for the
purpose of exploitation shall also be
considered as "trafficking in persons"
even if it does not involve any of the
means set forth in the preceding
paragraph.
(b) Child - refers to a person below
eighteen (18) years of age or one who is
over eighteen (18) but is unable to fully
take care of or protect himself/herself
from abuse, neglect, cruelty,
exploitation, or discrimination because
of a physical or mental disability or
condition.
(c) Prostitution - refers to any act,
transaction, scheme or design involving
the use of a person by another, for
sexual intercourse or lascivious conduct
in exchange for money, profit or any
other consideration.
(d) Forced Labor and Slavery - refer to
the extraction of work or services from
any person by means of enticement,
violence, intimidation or threat, use of
force or coercion, including deprivation
of freedom, abuse of authority or moral
ascendancy, debt-bondage or
deception.
(e) Sex Tourism - refers to a program
organized by travel and tourism-related
establishments and individuals which
consists of tourism packages or
activities, utilizing and offering escort
and sexual services as enticement for
tourists. This includes sexual services
and practices offered during rest and
recreation periods for members of the
military.
(f) Sexual Exploitation - refers to
participation by a person in prostitution
or the production of pornographic
materials as a result of being subjected
to a threat, deception, coercion,
abduction, force, abuse of authority,
debt bondage, fraud or through abuse of
a victim's vulnerability.
(g) Debt Bondage - refers to the
pledging by the debtor of his/her
personal services or labor or those of a
person under his/her control as security
or payment for a debt, when the length
and nature of services is not clearly
defined or when the value of the
services as reasonably assessed is not
applied toward the liquidation of the
debt.
(h) Pornography - refers to any
representation, through publication,
exhibition, cinematography, indecent
shows, information technology, or by
whatever means, of a person engaged
in real or simulated explicit sexual
activities or any representation of the
sexual parts of a person for primarily
sexual purposes.
(i) Council - shall mean the nter-Agency
Council Against Trafficking created
under Section 20 of this Act.
Duman / Labor I / Prof. Battad / Page 31
Section 4. Acts of Trafficking in Persons. - t
shall be unlawful for any person, natural or
juridical, to commit any of the following acts:
(a) To recruit, transport, transfer; harbor,
provide, or receive a person by any
means, including those done under the
pretext of domestic or overseas
employment or training or
apprenticeship, for the purpose of
prostitution, pornography, sexual
exploitation, forced labor, slavery,
involuntary servitude or debt bondage;
(b) To introduce or match for money,
profit, or material, economic or other
consideration, any person or, as
provided for under Republic Act No.
6955, any Filipino woman to a foreign
national, for marriage for the purpose of
acquiring, buying, offering, selling or
trading him/her to engage in prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(c) To offer or contract marriage, real or
simulated, for the purpose of acquiring,
buying, offering, selling, or trading them
to engage in prostitution, pornography,
sexual exploitation, forced labor or
slavery, involuntary servitude or debt
bondage;
(d) To undertake or organize tours and
travel plans consisting of tourism
packages or activities for the purpose of
utilizing and offering persons for
prostitution, pornography or sexual
exploitation;
(e) To maintain or hire a person to
engage in prostitution or pornography;
(f) To adopt or facilitate the adoption of
persons for the purpose of prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(g) To recruit, hire, adopt, transport or
abduct a person, by means of threat or
use of force, fraud, deceit, violence,
coercion, or intimidation for the purpose
of removal or sale of organs of said
person; and
(h) To recruit, transport or adopt a child
to engage in armed activities in the
Philippines or abroad.
Section 5. Acts that Promote Trafficking in
Persons. - The following acts which promote or
facilitate trafficking in persons, shall be unlawful:
(a) To knowingly lease or sublease, use
or allow to be used any house, building
or establishment for the purpose of
promoting trafficking in persons;
(b) To produce, print and issue or
distribute unissued, tampered or fake
counseling certificates, registration
stickers and certificates of any
government agency which issues these
certificates and stickers as proof of
compliance with government regulatory
and pre-departure requirements for the
purpose of promoting trafficking in
persons;
(c) To advertise, publish, print, broadcast
or distribute, or cause the
advertisement, publication, printing,
broadcasting or distribution by any
means, including the use of information
technology and the internet, of any
brochure, flyer, or any propaganda
material that promotes trafficking in
persons;
(d) To assist in the conduct of
misrepresentation or fraud for purposes
of facilitating the acquisition of
clearances and necessary exit
documents from government agencies
that are mandated to provide pre-
departure registration and services for
departing persons for the purpose of
promoting trafficking in persons;
(e) To facilitate, assist or help in the exit
and entry of persons from/to the country
at international and local airports,
territorial boundaries and seaports who
are in possession of unissued, tampered
or fraudulent travel documents for the
purpose of promoting trafficking in
persons;
(f) To confiscate, conceal, or destroy the
passport, travel documents, or personal
documents or belongings of trafficked
persons in furtherance of trafficking or to
prevent them from leaving the country or
seeking redress from the government or
appropriate agencies; and
(g) To knowingly benefit from, financial
or otherwise, or make use of, the labor
or services of a person held to a
condition of involuntary servitude, forced
labor, or slavery.
Duman / Labor I / Prof. Battad / Page 32
Section 6. Qualified Trafficking in Persons. -
The following are considered as qualified
trafficking:
(a) When the trafficked person is a child;
(b) When the adoption is effected
through Republic Act No. 8043,
otherwise known as the "nter-Country
Adoption Act of 1995" and said adoption
is for the purpose of prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(c) When the crime is committed by a
syndicate, or in large scale. Trafficking is
deemed committed by a syndicate if
carried out by a group of three (3) or
more persons conspiring or
confederating with one another. t is
deemed committed in large scale if
committed against three (3) or more
persons, individually or as a group;
(d) When the offender is an ascendant,
parent, sibling, guardian or a person
who exercises authority over the
trafficked person or when the offense is
committed by a public officer or
employee;
(e) When the trafficked person is
recruited to engage in prostitution with
any member of the military or law
enforcement agencies;
(f) When the offender is a member of the
military or law enforcement agencies;
and
(g) When by reason or on occasion of
the act of trafficking in persons, the
offended party dies, becomes insane,
suffers mutilation or is afflicted with
Human mmunodeficiency Virus (HV) or
the Acquired mmune Deficiency
Syndrome (ADS).
Section 6. Confidentiality. - At any stage of the
investigation, prosecution and trial of an offense
under this Act, law enforcement officers,
prosecutors, judges, court personnel and
medical practitioners, as well as parties to the
case, shall recognize the right to privacy of the
trafficked person and the accused. Towards this
end, law enforcement officers, prosecutors and
judges to whom the complaint has been referred
may, whenever necessary to ensure a fair and
impartial proceeding, and after considering all
circumstances for the best interest of the parties,
order a closed-door investigation, prosecution or
trial. The name and personal circumstances of
the trafficked person or of the accused, or any
other information tending to establish their
identities and such circumstances or information
shall not be disclosed to the public.
n cases when prosecution or trial is conducted
behind closed-doors, it shall be unlawful for any
editor, publisher, and reporter or columnist in
case of printed materials, announcer or producer
in case of television and radio, producer and
director of a film in case of the movie industry, or
any person utilizing tri-media facilities or
information technology to cause publicity of any
case of trafficking in persons.
Section 8. Prosecution of Cases. - Any person
who has personal knowledge of the commission
of any offense under this Act, the trafficked
person, the parents, spouse, siblings, children or
legal guardian may file a complaint for
trafficking.
Section 9. Venue. - A criminal action arising
from violation of this Act shall be filed where the
offense was committed, or where any of its
elements occurred, or where the trafficked
person actually resides at the time of the
commission of the offense: Provided, That the
court where the criminal action is first filed shall
acquire jurisdiction to the exclusion of other
courts.
Section 10. Penalties and Sanctions. - The
following penalties and sanctions are hereby
established for the offenses enumerated in this
Act:
(a) Any person found guilty of
committing any of the acts enumerated
in Section 4 shall suffer the penalty of
imprisonment of twenty (20) years and a
fine of not less than One million pesos
(P1,000,000.00) but not more than Two
million pesos (P2,000,000.00);
(b) Any person found guilty of
committing any of the acts enumerated
in Section 5 shall suffer the penalty of
imprisonment of fifteen (15) years and a
fine of not less than Five hundred
thousand pesos (P500,000.00) but not
more than One million pesos
(P1,000,000.00);
(c) Any person found guilty of qualified
trafficking under Section 6 shall suffer
the penalty of life imprisonment and a
fine of not less than Two million pesos
(P2,000,000.00) but not more than Five
million pesos (P5,000,000.00);
(d) Any person who violates Section 7
hereof shall suffer the penalty of
Duman / Labor I / Prof. Battad / Page 33
imprisonment of six (6) years and a fine
of not less than Five hundred thousand
pesos (P500,000.00) but not more than
One million pesos (P1,000,000.00);
(e) f the offender is a corporation,
partnership, association, club,
establishment or any juridical person,
the penalty shall be imposed upon the
owner, president, partner, manager,
and/or any responsible officer who
participated in the commission of the
crime or who shall have knowingly
permitted or failed to prevent its
commission;
(f) The registration with the Securities
and Exchange Commission (SEC) and
license to operate of the erring agency,
corporation, association, religious group,
tour or travel agent, club or
establishment, or any place of
entertainment shall be cancelled and
revoked permanently. The owner,
president, partner or manager thereof
shall not be allowed to operate similar
establishments in a different name;
(g) f the offender is a foreigner, he shall
be immediately deported after serving
his sentence and be barred permanently
from entering the country;
(h) Any employee or official of
government agencies who shall issue or
approve the issuance of travel exit
clearances, passports, registration
certificates, counseling certificates,
marriage license, and other similar
documents to persons, whether juridical
or natural, recruitment agencies,
establishments or other individuals or
groups, who fail to observe the
prescribed procedures and the
requirement as provided for by laws,
rules and regulations, shall be held
administratively liable, without prejudice
to criminal liability under this Act. The
concerned government official or
employee shall, upon conviction, be
dismissed from the service and be
barred permanently to hold public office.
His/her retirement and other benefits
shall likewise be forfeited; and
(i) Conviction by final judgment of the
adopter for any offense under this Act
shall result in the immediate rescission
of the decree of adoption.
Section 11. Use of Trafficked Persons. - Any
person who buys or engages the services of
trafficked persons for prostitution shall be
penalized as follows:
(a) First offense - six (6) months of
community service as may be
determined by the court and a fine of
Fifty thousand pesos (P50,000.00); and
(b) Second and subsequent offenses -
imprisonment of one (1) year and a fine
of One hundred thousand pesos
(P100,000.00).
Section 12. Prescriptive Period. - Trafficking
cases under this Act shall prescribe in ten (10)
years: Provided, however, That trafficking cases
committed by a syndicate or in a large scale as
defined under Section 6 shall prescribe in twenty
(20) years.
The prescriptive period shall commence to run
from the day on which the trafficked person is
delivered or released from the conditions of
bondage and shall be interrupted by the filing of
the complaint or information and shall
commence to run again when such proceedings
terminate without the accused being convicted
or acquitted or are unjustifiably stopped for any
reason not imputable to the accused.
Section 13. Exemption from Filing Fees. - When
the trafficked person institutes a separate civil
action for the recovery of civil damages, he/she
shall be exempt from the payment of filing fees.
Section 14. Confiscation and Forfeiture of the
Proceeds and Instruments Derived from
Trafficking in Persons. - n addition to the
penalty imposed for the violation of this Act, the
court shall order the confiscation and forfeiture,
in favor of the government, of all the proceeds
and properties derived from the commission of
the crime, unless they are the property of a third
person not liable for the unlawful act; Provided,
however, That all awards for damages shall be
taken from the personal and separate properties
of the offender; Provided, further, That if such
properties are insufficient, the balance shall be
taken from the confiscated and forfeited
properties.
When the proceeds, properties and instruments
of the offense have been destroyed, diminished
in value or otherwise rendered worthless by any
act or omission, directly or indirectly, of the
offender, or it has been concealed, removed,
converted or transferred to prevent the same
from being found or to avoid forfeiture or
confiscation, the offender shall be ordered to
pay the amount equal to the value of the
proceeds, property or instruments of the offense.
Duman / Labor I / Prof. Battad / Page 34
Section 15. Trust Fund. - All fines imposed
under this Act and the proceeds and properties
forfeited and confiscated pursuant to Section 14
hereof shall accrue to a Trust Fund to be
administered and managed by the Council to be
used exclusively for programs that will prevent
acts of trafficking and protect, rehabilitate,
reintegrate trafficked persons into the
mainstream of society. Such programs shall
include, but not limited to, the following:
(a) Provision for mandatory services set
forth in Section 23 of this Act;
(b) Sponsorship of a national research
program on trafficking and
establishment of a data collection
system for monitoring and evaluation
purposes;
(c) Provision of necessary technical and
material support services to appropriate
government agencies and non-
government organizations (NGOs);
(d) Sponsorship of conferences and
seminars to provide venue for
consensus building amongst the public,
the academe, government, NGOs and
international organizations; and
(e) Promotion of information and
education campaign on trafficking.
Section 16. Programs that Address Trafficking
in Persons. - The government shall establish
and implement preventive, protective and
rehabilitative programs for trafficked persons.
For this purpose, the following agencies are
hereby mandated to implement the following
programs;
(a) Department of Foreign Affairs (DFA)
- shall make available its resources and
facilities overseas for trafficked persons
regardless of their manner of entry to
the receiving country, and explore
means to further enhance its assistance
in eliminating trafficking activities
through closer networking with
government agencies in the country and
overseas, particularly in the formulation
of policies and implementation of
relevant programs.
The DFA shall take necessary measures
for the efficient implementation of the
Machine Readable Passports to protect
the integrity of Philippine passports,
visas and other travel documents to
reduce the incidence of trafficking
through the use of fraudulent
identification documents.
t shall establish and implement a pre-
marriage, on-site and pre-departure
counseling program on intermarriages.
(b) Department of Social Welfare and
Development (DSWD) - shall implement
rehabilitative and protective programs
for trafficked persons. t shall provide
counseling and temporary shelter to
trafficked persons and develop a system
for accreditation among NGOs for
purposes of establishing centers and
programs for intervention in various
levels of the community.
(c) Department of Labor and
Employment (DOLE) - shall ensure the
strict implementation and compliance
with the rules and guidelines relative to
the employment of persons locally and
overseas. t shall likewise monitor,
document and report cases of trafficking
in persons involving employers and
labor recruiters.
(d) Department of Justice (DOJ) - shall
ensure the prosecution of persons
accused of trafficking and designate and
train special prosecutors who shall
handle and prosecute cases of
trafficking. t shall also establish a
mechanism for free legal assistance for
trafficked persons, in coordination with
the DSWD, ntegrated Bar of the
Philippines (BP) and other NGOs and
volunteer groups.
(e) National Commission on the Role of
Filipino Women (NCRFW) - shall
actively participate and coordinate in the
formulation and monitoring of policies
addressing the issue of trafficking in
persons in coordination with relevant
government agencies. t shall likewise
advocate for the inclusion of the issue of
trafficking in persons in both its local and
international advocacy for women's
issues.
(f) Bureau of mmigration (B) - shall
strictly administer and enforce
immigration and alien administration
laws. t shall adopt measures for the
apprehension of suspected traffickers
both at the place of arrival and
departure and shall ensure compliance
by the Filipino fiancs/fiances and
spouses of foreign nationals with the
guidance and counseling requirement
as provided for in this Act.
(g) Philippine National Police (PNP) -
shall be the primary law enforcement
Duman / Labor I / Prof. Battad / Page 35
agency to undertake surveillance,
investigation and arrest of individuals or
persons suspected to be engaged in
trafficking. t shall closely coordinate
with various law enforcement agencies
to secure concerted efforts for effective
investigation and apprehension of
suspected traffickers. t shall also
establish a system to receive complaints
and calls to assist trafficked persons and
conduct rescue operations.
(h) Philippine Overseas Employment
Administration (POEA) - shall implement
an effective pre-employment orientation
seminars and pre-departure counseling
programs to applicants for overseas
employment. t shall likewise formulate a
system of providing free legal
assistance to trafficked persons.
(i) Department of the nterior and Local
Government (DLG) - shall institute a
systematic information and prevention
campaign and likewise maintain a
databank for the effective monitoring,
documentation and prosecution of cases
on trafficking in persons.
(j) Local government units (LGUs) - shall
monitor and document cases of
trafficking in persons in their areas of
jurisdiction, effect the cancellation of
licenses of establishments which violate
the provisions of this Act and ensure
effective prosecution of such cases.
They shall also undertake an
information campaign against trafficking
in persons through the establishment of
the Migrants Advisory and nformation
Network (MAN) desks in municipalities
or provinces in coordination with DLG,
Philippine nformation Agency (PA),
Commission on Filipinos Overseas
(CFO), NGOs and other concerned
agencies. They shall encourage and
support community based initiatives
which address the trafficking in persons.
n implementing this Act, the agencies
concerned may seek and enlist the
assistance of NGOs, people's
organizations (Pos), civic organizations
and other volunteer groups.
Section 17. Legal Protection to Trafficked
Persons. - Trafficked persons shall be
recognized as victims of the act or acts of
trafficking and as such shall not be penalized for
crimes directly related to the acts of trafficking
enumerated in this Act or in obedience to the
order made by the trafficker in relation thereto.
n this regard, the consent of a trafficked person
to the intended exploitation set forth in this Act
shall be irrelevant.
Section 18. Preferential Entitlement Under the
Witness Protection Program. - Any provision of
Republic Act No. 6981 to the contrary
notwithstanding, any trafficked person shall be
entitled to the witness protection program
provided therein.
Section 19. Trafficked Persons Who are
Foreign Nationals. - Subject to the guidelines
issued by the Council, trafficked persons in the
Philippines who are nationals of a foreign
country shall also be entitled to appropriate
protection, assistance and services available to
trafficked persons under this Act: Provided, That
they shall be permitted continued presence in
the Philippines for a length of time prescribed by
the Council as necessary to effect the
prosecution of offenders.
Section 20. Inter-Agency Council Against
Trafficking. - There is hereby established an
nter-Agency Council Against Trafficking, to be
composed of the Secretary of the Department of
Justice as Chairperson and the Secretary of the
Department of Social Welfare and Development
as Co-Chairperson and shall have the following
as members:
(a) Secretary, Department of Foreign
Affairs;
(b) Secretary, Department of Labor and
Employment;
(c) Administrator, Philippine Overseas
Employment Administration;
(d) Commissioner, Bureau of
mmigration;
(e) Director-General, Philippine National
Police;
(f) Chairperson, National Commission
on the Role of Filipino Women; and
(g) Three (3) representatives from
NGOs, who shall be composed of one
(1) representative each from among the
sectors representing women, overseas
Filipino workers (OFWs) and children,
with a proven record of involvement in
the prevention and suppression of
trafficking in persons. These
representatives shall be nominated by
the government agency representatives
of the Council, for appointment by the
President for a term of three (3) years.
Duman / Labor I / Prof. Battad / Page 36
The members of the Council may
designate their permanent
representatives who shall have a rank
not lower than an assistant secretary or
its equivalent to meetings, and shall
receive emoluments as may be
determined by the Council in
accordance with existing budget and
accounting, rules and regulations.
Section 21. Functions of the Council. - The
Council shall have the following powers and
functions:
(a) Formulate a comprehensive and
integrated program to prevent and
suppress the trafficking in persons;
(b) Promulgate rules and regulations as
may be necessary for the effective
implementation of this Act;
(c) Monitor and oversee the strict
implementation of this Act;
(d) Coordinate the programs and
projects of the various member
agencies to effectively address the
issues and problems attendant to
trafficking in persons;
(e) Coordinate the conduct of massive
information dissemination and campaign
on the existence of the law and the
various issues and problems attendant
to trafficking through the LGUs,
concerned agencies, and NGOs;
(f) Direct other agencies to immediately
respond to the problems brought to their
attention and report to the Council on
action taken;
(g) Assist in filing of cases against
individuals, agencies, institutions or
establishments that violate the
provisions of this Act;
(h) Formulate a program for the
reintegration of trafficked persons in
cooperation with DOLE, DSWD,
Technical Education and Skills
Development Authority (TESDA),
Commission on Higher Education
(CHED), LGUs and NGOs;
(i) Secure from any department, bureau,
office, agency, or instrumentality of the
government or from NGOs and other
civic organizations such assistance as
may be needed to effectively implement
this Act;
(j) Complement the shared government
information system for migration
established under Republic Act No.
8042, otherwise known as the "Migrant
Workers and Overseas Filipinos Act of
1995" with data on cases of trafficking in
persons, and ensure that the proper
agencies conduct a continuing research
and study on the patterns and scheme
of trafficking in persons which shall form
the basis for policy formulation and
program direction;
(k) Develop the mechanism to ensure
the timely, coordinated, and effective
response to cases of trafficking in
persons;
(l) Recommend measures to enhance
cooperative efforts and mutual
assistance among foreign countries
through bilateral and/or multilateral
arrangements to prevent and suppress
international trafficking in persons;
(m) Coordinate with the Department of
Transportation and Communications
(DOTC), Department of Trade and
ndustry (DT), and other NGOs in
monitoring the promotion of
advertisement of trafficking in the
internet;
(n) Adopt measures and policies to
protect the rights and needs of trafficked
persons who are foreign nationals in the
Philippines;
(o) nitiate training programs in
identifying and providing the necessary
intervention or assistance to trafficked
persons; and
(p) Exercise all the powers and perform
such other functions necessary to attain
the purposes and objectives of this Act.
Section 22. Secretariat to the Council. - The
Department of Justice shall establish the
necessary Secretariat for the Council.
Section 23. Mandatory Services to Trafficked
Persons. - To ensure recovery, rehabilitation and
reintegration into the mainstream of society,
concerned government agencies shall make
available the following services to trafficked
persons:
(a) Emergency shelter or appropriate
housing;
(b) Counseling;
Duman / Labor I / Prof. Battad / Page 37
(c) Free legal services which shall
include information about the victims'
rights and the procedure for filing
complaints, claiming compensation and
such other legal remedies available to
them, in a language understood by the
trafficked person;
(d) Medical or psychological services;
(e) Livelihood and skills training; and
(f) Educational assistance to a trafficked
child.
Sustained supervision and follow through
mechanism that will track the progress of
recovery, rehabilitation and reintegration of the
trafficked persons shall be adopted and carried
out.
Section 24. Other Services for Trafficked
Persons. -
(a) Legal Assistance. - Trafficked
persons shall be considered under the
category "Overseas Filipino in Distress"
and may avail of the legal assistance
created by Republic Act No. 8042,
subject to the guidelines as provided by
law.
(b) Overseas Filipino Resource Centers.
- The services available to overseas
Filipinos as provided for by Republic Act
No. 8042 shall also be extended to
trafficked persons regardless of their
immigration status in the host country.
(c) The Country Team Approach. - The
country team approach under Executive
Order No. 74 of 1993, shall be the
operational scheme under which
Philippine embassies abroad shall
provide protection to trafficked persons
insofar as the promotion of their welfare,
dignity and fundamental rights are
concerned.
Section 25. Repatriation of Trafficked Persons. -
The DFA, in coordination with DOLE and other
appropriate agencies, shall have the primary
responsibility for the repatriation of trafficked
persons, regardless of whether they are
documented or undocumented.
f, however, the repatriation of the trafficked
persons shall expose the victims to greater risks,
the DFA shall make representation with the host
government for the extension of appropriate
residency permits and protection, as may be
legally permissible in the host country.
Section 26. Extradition. - The DOJ, in
consultation with DFA, shall endeavor to include
offenses of trafficking in persons among
extraditable offenses.
Section 27. Reporting Requirements. - The
Council shall submit to the President of the
Philippines and to Congress an annual report of
the policies, programs and activities relative to
the implementation of this Act.
Section 28. Funding. - The heads of the
departments and agencies concerned shall
immediately include in their programs and issue
such rules and regulations to implement the
provisions of this Act, the funding of which shall
be included in the annual General
Appropriations Act.
Section 29. Implementing Rules and
Regulations. - The Council shall promulgate the
necessary implementing rules and regulations
within sixty (60) days from the effectivity of this
Act.
Section 30. Non-restriction of Freedom of
Speech and of Association, Religion and the
Right to Travel. - Nothing in this Act shall be
interpreted as a restriction of the freedom of
speech and of association, religion and the right
to travel for purposes not contrary to law as
guaranteed by the Constitution.
Section 31. Separability Clause. - f, for any
reason, any section or provision of this Act is
held unconstitutional or invalid, the other
sections or provisions hereof shall not be
affected thereby.
Section 32. Repealing clause. - All laws,
presidential decrees, executive orders and rules
and regulations, or parts thereof, inconsistent
with the provisions of this Act are hereby
repealed or modified accordingly: Provided, That
this Act shall not in any way amend or repeal the
provision of Republic Act No. 7610, otherwise
known as the "Special Protection of Children
Against Child Abuse, Exploitation and
Discrimination Act".
Section 33. Effectivity. - This Act shall take
effect fifteen (15) days from the date of its
complete publication in at least two (2)
newspapers of general circulation.
RULES AND REGULATIONS
IMPLEMENTING REPUBLIC ACT NO.
9208, OTHERWISE KNOWN AS THE
"ANTI-TRAFFICKING IN PERSONS ACT
OF 2003"
Pursuant to the authority of the nter-Agency
Council Against Trafficking (ACAT) under
Duman / Labor I / Prof. Battad / Page 38
Section 29 of Republic Act No. 9208 otherwise
known as the "Anti-Trafficking in Persons Act of
2003, the following
rules and regulations are hereby promulgated to
implement the provisions of said Act:
ArticIe I
GENERAL PROVISIONS
Sec. 1. Title. These rules and regulations shall
be known and cited as "The Rules and
Regulations mplementing the Anti-Trafficking in
Persons Act of 2003.
Sec. 2. Purpose. These rules and regulations
are hereby promulgated to institute policies,
establish the institutional mechanism for the
support and protection of trafficked persons and
prescribe the procedures and guidelines for the
implementation of Republic Act No. 9208 in
order to facilitate compliance therewith and
achieve the objectives thereof.
Sec. 3. Declaration of State Policy. The State
values the dignity of every human person and
guarantees the respect for individual rights.
Towards this end, the State shall give the
highest priority to the enactment of measures
and development of programs that will promote
human dignity, protect the people from any
threat of violence and exploitation, eliminate
trafficking in persons, and mitigate pressures for
involuntary migration and servitude of persons,
not only to support trafficked persons but more
importantly, to ensure
their recovery, rehabilitation and reintegration
into the mainstream of society.
The State also recognizes the equal rights and
inherent human dignity of women and men, as
well as the rights of children, as enshrined and
guaranteed in the following international
instruments:
(i) Universal Declaration on Human
Rights;
(ii) Convention for the Suppression of
the Traffic in Persons and
Exploitation of the Prostitution of
Others;
(iii) Convention on the Elimination of All
Forms of Discrimination Against
Women;
(iv) Convention on the Rights of the
Child and itsOptional Protocols;
(v) Convention on the Protection of
Migrant Workers and Members of
their Families;
(vi) Convention Against Transnational
OrganizedCrimes including its
Protocol to Prevent,Suppress and
Punish Trafficking in Persons,
Especially Women and Children;
(vii) LO Convention No. 182
(Convention Concerning the
Prohibition and mmediate Action for
the Elimination of the Worst Forms
of Child Labor); and
(viii) All other relevant and universally
accepted human rights instruments
and other international conventions
to which the Philippines is a State
Party. n all actions concerning
children, their best interests shall be
the paramount consideration.
Sec. 4. Construction. These rules and
regulations shall be liberally construed in favor
of the trafficked persons to promote their human
dignity; ensure their recovery, rehabilitation and
reintegration into the mainstream of society;
eliminate trafficking in persons; and achieve the
objectives of the Act.
ArticIe II
DEFINITION OF TERMS
Sec. 5. Definition of Terms. As used in these
rules and regulations, unless the context
otherwise requires, the following terms shall be
understood to mean:
(a) Act refers to Republic Act No. 9208,
otherwise
known as the "Anti-Trafficking in Persons Act of
2003;
(b) Council refers to the nter-Agency Council
Against Trafficking (ACAT) created under
Section 20 of the Act;
(c) Trafficking in Persons refers to the
recruitment, transportation, transfer or harboring,
or receipt of persons, with or without the victim's
consent or knowledge, within or across national
borders by means of threat or use of force, or
other forms of coercion, abduction, fraud,
deception, abuse of power or of position, taking
advantage of the vulnerability of the person, or,
the giving or receiving of payments or benefits to
achieve the consent of a person having control
over another person for the purpose of
exploitation which includes at a minimum, the
exploitation or the prostitution of others or other
forms of sexual exploitation, forced labor or
services, slavery, servitude or the removal or
sale of organs.
The recruitment, transportation, transfer,
harboring or receipt of a child for the purpose of
exploitation
shall also be considered as "trafficking in
persons even if it does not involve any of the
means set forth in the preceding paragraph.
(d) Child refers to a person below eighteen
(18) years of age or one who is over eighteen
(18) but is unable to fully take care of or protect
himself/herself from abuse, neglect, cruelty,
Duman / Labor I / Prof. Battad / Page 39
exploitation, or discrimination because of a
physical or mental disability or condition;
(e) Prostitution refers to any act, transaction,
scheme or design involving the use of a person
by another, for sexual intercourse or lascivious
conduct in exchange for money, profit or any
other consideration;
(f) Forced Labor and Slavery refer to the
extraction of work or services from any person
by means of enticement, violence, intimidation
or threat, use of force or coercion, including
deprivation of freedom, abuse of authority or
moral ascendancy, debt-bondage or deception;
(g) Sex Tourism refers to a program
organized by travel and tourism-related
establishments and individuals which consists
of tourism packages or activities, utilizing and
offering escort and sexual services as
enticement for tourists. This includes sexual
services and practices offered during rest and
recreation periods for members of the military;
(h) Sexual Exploitation refers to participation
by a person in prostitution or the production of
pornographic
materials as a result of being subjected to a
threat, deception, coercion, abduction, force,
abuse of authority, debt bondage, fraud or
through abuse of a victim's vulnerability;
(i) Debt Bondage refers to the pledging by the
debtor of his/her personal services or labor or
those of a person under his/her control as
security or payment for a debt, when the length
and nature of services is not clearly defined or
when the value of the services as reasonably
assessed is not applied toward the liquidation of
the debt;
(j) Pornography refers to any representation,
through publication, exhibition, cinematography,
indecent
shows, information technology, or by whatever
means, of a person engaged in real or simulated
explicit sexual activities or any representation of
the sexual parts of a person primarily for sexual
purposes; and
(k) Involuntary Servitude refers to a condition
of enforced, compulsory service induced by
means of any scheme, plan or pattern, intended
to cause a person to believe that, if the person
did not enter into or continue in such condition,
that person or another person would suffer
serious harm or other forms of abuse or physical
restraint, or the abuse or threatened abuse of
the legal process.
ArticIe III
THE INTER-AGENCY COUNCIL
AGAINST TRAFFICKING (IACAT)
Sec. 6. Creation. The nter-Agency Council
Against Trafficking (ACAT) shall be established
which shall be primarily tasked to coordinate,
monitor and oversee the implementation of the
Act.
Sec. 7. Composition. The Council shall be
composed of the following:
(a) Secretary, Department of Justice (DOJ) as
Chairperson;
(b) Secretary, Department of Social Welfare and
Development (DSWD) as Co-Chairperson;
(c) Secretary, Department of Foreign Affairs
(DFA) as Member;
(d) Secretary, Department of Labor and
Employment
(DOLE) as Member;
(e) Administrator, Philippine Overseas
Employment
Administration (POEA) as Member;
(f) Commissioner, Bureau of mmigration (B) as
Member;
(g) Director-General, Philippine National Police
(PNP) as Member;
(h) Chairperson, National Commission on the
Role of Filipino Women (NCRFW) as Member;
(i) One (1) representative from an NGO
representingthe women sector as Member;
(j) One (1) representative from an NGO
representing he Overseas Filipino Workers
(OFWs) sector as Member; and
(k) One (1) representative from an NGO
representing he children sector as Member.
The members of the Council may designate their
permanent representatives who shall have a
rank not lower than an Assistant Secretary or its
equivalent to attend the meetings of the Council.
Sec. 8. Qualifications, Selection and
Appointment of NGO and its
Representatives. The NGOs, with national and
international networks, and its representatives to
the Council must have a proven track record of
involvement in the prevention and suppression
of trafficking in persons. They shall be
nominated by any
of the government agency representatives of the
Council and shall be selected by majority vote
thereof and endorsed to the President. They
shall be appointed by the President for a term of
three (3) years.
Sec. 9. Functions of the Council. The Council
shall have the following powers and functions:
(a) Formulate a comprehensive and integrated
program to prevent and suppress the trafficking
in persons;
(b) Promulgate rules and regulations as may be
necessary for the effective implementation of the
Act;
Duman / Labor I / Prof. Battad / Page 40
(c) Monitor and oversee the strict
implementation of the Act;
(d) Coordinate the programs and projects of the
various member agencies to effectively address
the issues and problems attendant to trafficking
in persons;
(e) Coordinate the conduct of massive
information dissemination and campaign on the
existence of the law and the various issues and
problems attendant to trafficking through the
local government units (LGUs), concerned
agencies, and NGOs;
(f) Direct other agencies to immediately respond
to the problems brought to their attention and
report to the Council on action taken;
(g) Assist in filing of cases against individuals,
agencies, institutions or establishments that
violate the
provisions of the Act;
(h) Formulate a program for the reintegration of
trafficked persons in cooperation with DOLE,
DSWD, Technical Education and Skills
Development Authority (TESDA), Commission
on Higher Education (CHED), LGUs and NGOs;
(i) Secure from any department, bureau, office,
agency, or instrumentality of the government or
from NGOs
and other civic organizations such assistance as
may be needed to effectively implement the Act;
(j) Complement the shared government
information system for migration established
under Republic Act No. 8042, otherwise known
as the "Migrant Workers and Overseas Filipinos
Act of 1995 with data on cases of trafficking in
persons, and ensure that the proper agencies
conduct a continuing research and study on the
patterns and scheme of trafficking in persons
which shall form the basis for policy formulation
and program direction;
(k) Develop the mechanism to ensure the timely
coordinated and effective response to cases of
trafficking in
persons;
(l) Recommend measures to enhance
cooperative efforts and mutual assistance
among foreign countries through bilateral and/or
multilateral arrangements to prevent and
suppress international trafficking in persons;
(m) Coordinate with the Department of
Transportation and Communications (DOTC),
Department of Trade and ndustry (DT), and
other NGOs in monitoring the promotion of
advertisement of trafficking in the nternet;
(n) Adopt measures and policies to protect the
rights and needs of trafficked persons who are
foreign nationals in the Philippines;
(o) nitiate training programs in identifying and
roviding the necessary intervention or
assistance to trafficked
persons; and
(p) Exercise all the powers and perform such
other functions necessary to attain the purposes
and objectives of the Act.
Sec. 10. Reportorial Function. Within sixty (60)
days after the closing of each calendar year, the
Council shall submit to the Office of the
President a comprehensive report on the actions
and programs
taken by the Council relative to and concerning
the implementation of the Act.
Sec. 11. Meetings of the Council. The Council
shall meet regularly at least once a month.
Special meetings may be called by the Chair as
the need arises. Majority of the members of the
Council
shall constitute a quorum to transact business.
Sec. 12. Honoraria or Emoluments. The
Members of the Council or their designated
permanent representatives shall receive
honoraria or emoluments as may be determined
by the Council in
accordance with existing budget and accounting
rules and regulations.
Sec. 13. Implementation of the Law at Sub-
National and Local Levels. The Council shall,
as far as practicable, develop mechanisms to
ensure the implementation of the law and these
rules and regulations at the sub-national and
local levels
ArticIe IV
SECRETARIAT
SEC. 14. Organization. The Department of
Justice shall establish a Secretariat to assist the
Council in the performance of its functions. The
Secretary of Justice shall determine the
organizational structure and staffing pattern of
the Secretariat.
Sec. 15. Functions. The Secretariat shall have
the following functions:
(a) Coordinate and monitor, under the direction
of the Council, the implementation of the policies
and guidelines promulgated by the Council;
(b) Establish, maintain and manage a central
database on trafficking in persons;
(c) Provide secretariat, records keeping and
other services to the Council; and
(d) Perform such other functions as may be
directed by the Council.
ArticIe V
ROLES AND RESPONSIBILITIES
Sec. 16. Common Roles and Responsibilities
of Council Member Agencies. All member
government agencies of the Council shall have
the following common roles and responsibilities:
(a) Develop policies and programs supportive of
and consistent with the objectives of the Act;
(b) Enhance the capability of its officers and
personnel involved in trafficking issues and
Duman / Labor I / Prof. Battad / Page 41
concerns through appropriate training and staff
support programs;
(c) Undertake information, education and
advocacy campaigns against trafficking in
persons;
(d) Maintain a databank on trafficking in persons
to be shared among relevant agencies and
complement the central databank to be
established by the Council; and
(e) Document good practices as bases for policy
formulation and program development.
Sec. 17. Specific Roles and Responsibilities
of National Government Agencies which are
Members of the Council. The following national
government agencies, which are member
agencies of the Council, shall have, but not
limited to, the following roles and responsibilities
in the prevention and suppression of trafficking
in persons:
(a) Department of Justice (DOJ)
(i) Ensure the prosecution of persons for
violations of the Act;
(ii) Designate and train special prosecutors who
shall investigate and prosecute cases of
trafficking;
(iii) Establish a mechanism for free legal
assistance for trafficked persons, in coordination
with the DSWD, Commission on Human Rights
(CHR), ntegrated Bar of the Philippines (BP)
and other NGOs and volunteer groups;
(iv) Provide, witness protection to trafficked
victims and their witnesses;
(v) Conduct training and continuing education
program on investigation and prosecution for
trafficking in
persons and other related offenses for
prosecutors and law enforcement officers;
(vi) Receive, evaluate, process and investigate
claims for compensation by trafficked victims,
when applicable, pursuant to Republic Act No.
7309 (Victims Compensation
Act);
(vii) Review and recommend policies and
measures to enhance protection against
trafficking in persons;
(viii) Recommend the negotiation of mutual legal
assistance and extradition treaties with other
countries in
coordination with the DFA; and
(ix) Coordinate with and/or provide assistance to
the Anti-Money Laundering Council (AMLC) on
cases of
trafficking in persons with possible money
laundering underpinnings.
(b) Department of Social Welfare and
Development (DSWD)
(i) Provide psycho-social counseling, temporary
shelter and other support services to
victims/survivors of
trafficking and their families;
(ii) Make available skills training and livelihood
services to victims/survivors of trafficking;
(iii) Develop program and other support
interventions to facilitate the recovery and
reintegration of
trafficked victims into their families and
communities;
(iv) Provide social welfare services to Filipino
victims of trafficking in other countries through
the DSWD
Social Welfare Attach and social workers
posted in foreign countries, which may include
but not limited to stress management,
repatriation and other appropriate psychosocial
interventions for their protection and welfare;
(v) Conduct technical assistance and capability
building activities for social welfare
officers/social workers
of LGUs and NGOs;
(vi) Accredit NGOs that provide programs and
services to ensure that they meet the standards
set by the
Department; and
(vii) Provide temporary shelter and psycho-
social services to foreign nationals who are
victims of trafficking
in persons as confirmed by the Bureau of
mmigration.
(c) Department of Foreign Affairs (DFA)
(i) Make available its resources and facilities
overseas and to provide services for trafficked
persons
regardless of the manner of their entry to the
receiving country;
(ii) Explore means to further enhance its
assistance in eliminating trafficking activities
through closer
networking with government agencies in the
country and overseas, particularly in the
formulation of policies and implementation of
relevant programs;
(iii) Actively participate in bilateral, regional and
international initiatives and cooperative
arrangements
aimed at suppressing trafficking in persons and
protecting and assisting victims of trafficking to
include monitoring of inter-country adoption
cases.
(iv) Take necessary measures for the efficient
implementation of the Machine Readable
Passports and
Visas to protect the integrity of Philippine
passports, visas, and other travel documents to
reduce the incidence of trafficking in persons
through the use of fraudulent identification
documents;
(v) Establish and implement pre-marriage, on-
site and pre-departure counseling program on
inter-marriages.
Duman / Labor I / Prof. Battad / Page 42
For this purpose, the DFA shall promulgate the
necessary guidelines to implement the said
program; and
(vi) ntegrate into the pre-departure orientation
seminars for foreign service personnel a training
module on
trafficking in persons.
(d) Department of Labor and Employment
(DOLE)
(i) Ensure the strict implementation of and
compliance with rules and guidelines relative to
the
employment of persons locally and overseas;
and
(ii) Monitor, document and report cases of
trafficking in persons involving employers and
labor
recruiters;
(iii) Make available existing resources such as
employment and livelihood programs as part of
the
government's measure to suppress trafficking in
persons; and
(iv) Conduct public awareness programs and
activities to prevent victimization.
(e) Philippine Overseas Employment
Administration (POEA)
(i) mplement an effective pre-employment
orientation seminar and pre-departure
counseling program
to applicants for overseas employment;
(ii) Formulate a system providing free legal
assistance to trafficked persons which shall
include the
following:
(a) Provision of legal assistance to victims of
trafficking in persons by means of, or in the
guise of,
recruitment for overseas employment, as
defined in Section 6 of R.A. No. 8042, such as
free legal advice, assistance in the preparation
and filing of administrative and criminal actions
for trafficking as defined in the Act, without
prejudice to the filing of administrative and/or
criminal actions for illegal recruitment, as
defined in R.A.No. 8042, when proper;
(b) Assistance in the prosecution of persons who
engage in, promote and facilitate trafficking in
persons
by means of, or in the guise of, recruitment for
overseas employment, as defined in Section 6 of
R.A. 8042;
n this connection, the POEA shall likewise
adopt a policy of confidentiality in all cases
referred to it involving
possible violations of the Act.
(iii) Adopt policies and procedures, prepare and
implement programs geared towards the
eradication of
trafficking in persons as well as acts that
promote trafficking in persons such as, but not
limited to, the following:
(a) Comprehensive and ntegrated Education
Program on overseas employment which shall
be undertaken in partnership with other relevant
organizations and government entities. Such
education program shall cover all stages of
recruitment and employment and shall provide
information useful for overseas workers
including a module on anti-trafficking program
and measures;
(b) Nationwide multi-media and sustainable
grassroots information campaign to create
publicawareness on the realities of overseas
employment and dangers of becoming victims of
illegal trafficking activities;
(c) Conduct special operations, complementary
to the power of the PNP, on persons and entities
engaged
in recruitment for overseas employment reported
to be violating the provisions of the Act for the
purpose of
effecting closure of said establishments
pursuant to the provisions of R.A. No. 8042; and
(d) Database of cases involving, and
personalities involved in, trafficking persons
separate and distinct from its illegal Recruitment
cases for monitoring purposes;
(iv) n cases of repatriation involving workers
recruited and deployed by licensed agencies,
the POEA shall
notify the agency concerned to provide a plane
ticket or Prepaid Travel Advice (PTA) and shall
impose sanctions on said agencies for failure to
cooperate in providing welfare assistance to
OFWs they have deployed; and
(v) Continue to regulate private sector
participation in the recruitment and overseas
placement of
workers through its licensing and registration
system pursuant to its rules and regulation on
overseas
employment. t shall formulate and implement, in
coordination with appropriate entities concerned,
when
necessary, a system of promoting and
monitoring the overseas employment of Filipino
workers, taking into
consideration their welfare and protection from
the dangers and risks inherent in overseas
employment, including illegal trafficking.
(f) Bureau of mmigration (B)
(i) Strictly administer and enforce immigration
and alien registration laws;
Duman / Labor I / Prof. Battad / Page 43
(ii) Adopt measures for the apprehension of
suspected traffickers both at the place of arrival
and
departure;
(iii) Ensure compliance by the Filipino fiancs/
fiances and spouses of foreign nationals with
the predeparture and counseling program
requirement of the Act;
(iv) Strictly implement the requirement for a
parental travel authority duly processed by the
DSWD for
minors traveling abroad unaccompanied by one
parent, and the travel clearance for minors
traveling abroad
unaccompanied by both parents;
(v) Ensure compliance by Overseas Filipino
Workers of the departure requirements of the
POEA;
(vi) Conduct periodic training and seminar on
fraudulent document detection and passenger
assessment
to enhance the level of skill and competence of
all its immigration officers and agents in
document fraud detection;
(vii) Conduct periodic study of the trends, routes
and modus operandi employed by the traffickers
including
its recruitment base, transit countries and
country of destination;
(viii) Establish a network with other law
enforcement agencies and immigration
counterparts of
source, transit and destination countries to
facilitate exchange and sharing of information on
the activities of
trafficking syndicates;
(ix) Establish network with LGUs for the effective
apprehension of suspected traffickers and their
cohorts;
(x) Develop a program for the procurement and
installation of nternational Civil Aviation
Organization
(CAO) compliant machine readers and fraud
detection equipment at all international airports
and seaports in the country to deter trafficking in
persons; and
(xi) Develop and distribute materials containing
advisory and other pertinent information to
enhance
awareness against trafficking in persons.
(g) Philippine National Police (PNP)
(i) Undertake surveillance, investigation and
arrest of individuals or persons suspected to be
engaged in
trafficking;
(ii) Coordinate closely with various law
enforcement agencies to secure concerted
efforts for effective
investigation and apprehension of suspected
traffickers. For this purpose, it shall also:
(a) Pursue the detection and investigation of
suspected or alleged trafficking activities at
airports
through its Aviation Security Group, at seaports
and/or harbors through its Maritime Group, and
at land
transportation terminals through its police station
and when proper, file the appropriate charges
against traffickers in the proper court;
(b) Coordinate with the Philippine Ports Authority
(PPA) which may have initially processed
complaints at their "Balay Silungan sa
Daungan"; and
(c) Coordinate with local and barangay officials
with respect to the apprehension and/or arrest of
traffickers.
(iii) Establish a system to receive complaints and
calls to assist trafficked persons, and the
conduct of rescue operations;
(iv) Direct and supervise the enforcement of its
andate under the Act and its rules and
regulations;
(v) Supervise the conduct of investigations
relating to apprehension occurring at land
transportation
terminals, domestic seaports and airports and
monitor the filing of appropriate cases against
traffickers;
(vi) Formulate plans and programs for the
prevention and/or reduction of trafficking in
persons;
(vii) ntegrate in the program of instruction
comprehensive, gender sensitive and child-
friendly
investigation and handling of cases of trafficking
in persons in the Philippine National Police
Academy (PNPA), Philippine Public Safety
College (PPSC) and other training schools
operated and managed by the PNP; and
(viii) Establish anti-trafficking section under the
Women and Children Complaint Desk (WCCD)
in all city
and municipal police stations.
(h) National Commission on the Role of Filipino
Women (NCRFW)
(i) Actively advocate and participate in
international and regional discussion and
initiatives in
trafficking in women and include the same in all
of its international commitments and policy
pronouncements. Where possible and
appropriate, work with the Department of
Foreign Affairs in forging bilateral and
multilateral collaborative projects on trafficking;
(ii) Assist the Council in the formulation and
monitoring of policies addressing the issue of
trafficking in
persons in coordination with relevant
government agencies;
Duman / Labor I / Prof. Battad / Page 44
(iii) Assist the Council in the conduct of
information dissemination and training to
frontline government
agencies, NGOs and the general public;
(iv) Assist in the development of gender
responsive documentation system in
coordination with other agencies and the
National Statistical Coordination Board (NSCB)
through its monitoring of the situation of women
particularly on violence against women;
(v) Assist the Council in the formulation of
prevention and reintegration programs for
victims of
trafficking including the demand side; and (vi)
Conduct studies on the root causes, magnitude
and forms of trafficking in women and document
best practices in prevention programs.
Sec. 18. Roles and Responsibilities of Other
Relevant National Government Agencies.
Consistent with their mandates under existing
laws, the following agencies shall integrate
human trafficking issues in their strategy and
program formulation and implement programs
and services for the prevention and suppression
of trafficking and for the protection of trafficked
victims.
They shall likewise have the following roles and
responsibilities:
(a) Department of the nterior and Local
Government (DLG)
(i) Conduct a systematic information
dissemination/advocacy and prevention
campaign against trafficking in persons;
(ii) Maintain a databank for the effective
monitoring, documentation and prosecution of
cases on
trafficking in persons;
(iii) ssue directives to the LGUs and barangays
to institutionalize recruiter-monitoring
mechanisms and
increase public awareness regarding trafficking
in persons;
(iv) Promote family and community
empowerment to prevent trafficking in persons;
and
(v) Strengthen, activate and mobilize existing
committees, councils, similar organizations and
special
bodies at the local level to prevent and suppress
trafficking in persons.
(b) Department of Tourism (DOT)
(i) Formulate and implement preventive
measures to stop sex tourism packages and
other activities of tourism establishments which
might contribute to the trafficking in persons in
coordination with local governmentunits; and
(ii) Provide training to tourist security officers on
surveillance, investigation and rescue operation
strategies.
(c) Department of Education (DepEd)
(i) ntegrate in the appropriate subject areas
core messages on migration and trafficking in
the elementary
and secondary levels by providing lesson with
emphasis on their implications and social costs
to persons and country;
(ii) Provide opportunities for trafficked persons in
the educational mainstream through the basic
education
and non-formal education curricula; and
(iii) Provide education and raise consciousness
of boys/men in schools and communities in
order to discourage the "demand side or the
use/buying of trafficked women
and children.
(d) Department of Health (DOH)
(i) Make available its resources and facilities in
providing health care to victims of trafficking
which shall,
at all times, be held confidential.
(e) Department of Transportation and
Communication (DOTC)
(i) Provide guidelines for the land, sea and air
transport providers to train their personnel in
trafficking
in persons;
(ii) Standardize guidelines for monitoring
trafficking in persons in every port; and
(iii) Monitor the promotion of advertisement of
trafficking in the nternet.
(f) Commission on Human Rights (CHR)
(i) Conduct advocacy and training programs
relating to anti-trafficking;
(ii) nvestigate and recommend for prosecution
violations of the Act;
(iii) Provide legal and financial assistance to
victims of trafficking; and
(iv) ntegrate anti-trafficking efforts in the
Barangay Human Rights Action Center
(BHRAC); and
(v) Monitor government compliance to
international human rights treaty obligations
related to the
suppression/elimination of trafficking, particularly
the Convention for the Suppression of Traffic in
Persons and Exploitation of the Prostitution of
Others, the Convention on the Elimination of All
Forms of Discrimination Against Women, the
Convention on the Rights of the Child, the
Convention on the Protection of Migrant
Workers and Members of Their Families, and
the UN Convention Against Transnational
Organized Crimes including its Protocol to
Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children.
Duman / Labor I / Prof. Battad / Page 45
(g) National Bureau of nvestigation (NB)
(i) Conduct surveillance, monitor and investigate
recruiters, travel agencies, hotels and other
establishments
suspected to be engaged in trafficking in
persons;
(ii) Coordinate closely with all the Council
member agencies for effective detection and
investigation of suspected traffickers;
(iii) Formulate plans and programs for the
detection and prevention of trafficking, and the
arrest and
prosecution of suspected traffickers;
(iv) Share intelligence information on suspected
traffickers to all Council member agencies when
necessary;
and
(v) Foster cooperation and coordination with the
law enforcement agencies of other countries and
the
NTERPOL in the investigation and
apprehension of suspected traffickers.
(h) Philippine Center on Transnational Crime
(PCTC)
(i) Continue to function in accordance with its
mandate pursuant to Executive Order No. 62, s.
1999, on
matters concerning trafficking in persons with
transnational dimension;
(ii) Undertake strategic researches on the
structure and dynamics of trafficking in persons
with transnational crime dimension, predict
trends and analyze given factors for the
formulation of individual and collective
strategies for the prevention and detection of
trafficking in persons and the apprehension of
criminal elements involved;
(iii) Conduct case operations in coordination with
other law enforcement agencies; and
(iv) Serve as the focal point in international law
enforcement coordination on trafficking in
persons
particularly with the NTERPOL.
(i) Overseas Workers Welfare Administration
(OWWA)
(i) Assist in the information and advocacy
campaign among OFWs to prevent trafficking in
persons;
(ii) Assist in the documentation of cases of
trafficking and ensure the provision of its
programs and
services to OFWs and their families; and (iii)
nclude a module on anti-trafficking to its
predeparture
seminar.
(j) Council for the Welfare of Children (CWC)
(i) ntegrate in its development and strategic
frameworks issues and concerns affecting
trafficking in
children and ensure the adoption of such
frameworks by the LGUs and other
stakeholders;
(ii) Vigorously advocate against trafficking of
children;
(iii) mprove data on trafficking in children
through integration of critical and relevant
indicators into the
monitoring system for children;
(iv) Adopt policies and measures that will protect
and promote the rights and welfare of children
victims of
trafficking and coordinate and monitor their
implementation; and
(v) Address issues on trafficking of children
through policy and program interventions.
(k) Philippine nformation Agency (PA)
(i) Enhance public awareness on trafficking in
persons, pertinent laws and possible actions to
prevent
victimization and re-victimization by developing
public advocacy program as well as printing and
distributing
appropriate information materials.
(l) Technical Education and Skills Development
Authority (TESDA)
(i) Provide skills and entrepreneurial training to
trafficked victims; and
(ii) Formulate a special program to ensure the
provision of appropriate skills training for
trafficked victims.
Sec. 19. Roles and Responsibilities of Local
Government Units (LGUs). The LGUs shall
have the following roles and responsibilities:
(a) Monitor and document cases of trafficked
persons in their areas of jurisdiction;
(b) Effect the cancellation of licenses of
establishments which violate the provisions of
the Act and
ensure its effective prosecution;
(c) Undertake an information campaign against
trafficking in persons through the establishment
of the Migrants Advisory and nformation
Network (MAN) desks in municipalities and
provinces in coordination with the DLG, PA,
Commission on Filipino Overseas (CFO), NGOs
and other concerned agencies;
(d) Encourage and support community based
initiatives which address trafficking in persons;
(e) Provide basic social services for the
prevention, rescue, recovery, rehabilitation and
reintegration/after care support services to
victims of trafficking in persons and their
families;
Duman / Labor I / Prof. Battad / Page 46
(f) Enact ordinances or issuances aimed at
providing protection and support to trafficked
persons and adopt measures to prevent and
suppress trafficking in persons; and
(g) Strengthen, activate and mobilize existing
committees, councils, similar organizations and
special bodies
at the provincial, city, municipal and barangay
levels to prevent and suppress trafficking in
persons.
Sec. 20. Roles and Responsibilities of Non-
Government Organizations which are
Members of the Council. The NGO members
of the Council shall have the following roles and
responsibilities:
(a) Assist government agencies in formulating
and implementing policies, programs and EC
campaign against trafficking;
(b) Assist in capability-building activities of
government personnel and share their
experiences and
expertise in handling trafficking cases;
(c) Coordinate with concerned government
agencies, LGUs and other NGOs in reporting
alleged perpetrators, rescuing victims of
trafficking, and conducting investigation/
surveillance, if indicated;
(d) Undertake programs and activities for the
prevention, rescue, recovery and reintegration of
the victims of
trafficking and other support services for their
families;
(e) Document and/or assist in the documentation
of cases of trafficking;
(f) Disseminate guidelines to all its network
members, local and international, on policies
and programs
addressing issues on trafficking in persons;
(g) Formulate educational module to address
thedemand side of trafficking; and
(h) Perform such other tasks as may be agreed
upon by the Council.
Sec. 21. Assistance of Other Agencies and
Institutions. n implementing the Act and these
rules and regulations, the agencies concerned
may seek and enlist the assistance of NGOs,
people's
organizations (POs), civic organizations and
other volunteer groups, which will all likewise be
encouraged to assume the same roles and
responsibilities enumerated in the preceding
Section.
ArticIe VI
REPORTING OF SUSPECTED/ ALLEGED
TRAFFICKING INCIDENT
Sec. 22. Who May and To Whom to Report.
Any person who has any knowledge or learns of
facts or circumstances that give rise to a
reasonable belief that a person will be, or may
be, or has been trafficked shall immediately
report the same, either orally, in writing or
through other means, to any member of the
Council, the barangay authorities, the nearest
police or other law enforcement agency, the
local social welfare and development office or
the local Council for the Protection of Children.
n the case of trafficking cases abroad, the
report shall be made to the Philippine
Embassy/Consulate which has jurisdiction over
the place where the trafficking occurred or
where the trafficked person is
found.
Sec. 23. Action on the Report. The agency,
entity or person
to whom the report is made shall immediately
act as soon as the report is received in
coordination with other relevant government
agency for appropriate intervention. For this
purpose, the Council shall develop a mechanism
to ensure the timely, coordinated and effective
response to cases of trafficking in persons.
ArticIe VII
INTERCEPTION, ARREST AND
INVESTIGATION OF TRAFFICKERS
Sec. 24. Procedure in the Interception, Arrest
and Investigation of Traffickers in Persons at
International Airport or Seaport. When an
offense punishable under the Act or any other
offense in relation thereto or in furtherance
thereof has been committed, or is actually being
committed in the presence of an immigration
officer assigned at the international airport or
seaport,
he/she shall immediately cause the interception
and/or arrest of the persons involved for
investigation. The DOJ Task Force Against
Trafficking shall cause the filing of appropriate
case in court when
evidence warrants. f the person arrested is a
foreigner, the concerned B..
investigating unit shall take full custody over the
arrested person, conduct the investigation
proper motu proprio and endorse the complaint
and supporting documents to the prosecutor for
inquest or MTC Judge for appropriate
proceedings.
Sec. 25. Procedure in the Interception, Arrest
and Investigation of Traffickers in Persons at
Local Airport, Seaport and Land
Transportation Terminals. n cases where the
violation is committed at local seaport, airport or
in land transportation terminals, the members of
the law enforcement agency shall
immediately cause the interception and/or arrest
of the suspected traffickers. Thereafter, the
investigation shall be conducted by the law
enforcement agency on the person/s
intercepted/arrested, and
Duman / Labor I / Prof. Battad / Page 47
referred to the Prosecutor's Office of the place
where the offense was committed or to the DOJ
Task Force Against Trafficking in Persons or
Task Force on Passport rregularities or
Municipal Trial Court of
the place where the crime was committed in
case of municipalities and non-chartered cities
for purposes of inquest or preliminary
investigation as the case may be.
Sec. 26. Creation of a Joint Task Force
Against Trafficking in Persons. For the
purpose of the above provisions, there shall be
created a Joint Task Force Against Trafficking in
Persons to be assigned at airports composed of
Prosecution, B, PNP, and NB personnel and
another Task Force at land transportation
terminals and local seaports and airports to be
composed of Prosecution, PNP, B, PPA, and
PCG personnel. The DOJ National Task Force
Against Trafficking in Persons shall issue the
necessary
operational guidelines for the effective
coordination, apprehension, investigation and
prosecution of violations of the Act. The DOJ
Task Force assigned at local seaports, airports
and land transportation
terminals shall cooperate or coordinate with the
local authorities, local social welfare and
development officers or active NGOs concerned
with trafficking in persons in the locality.
Sec. 27. Rights of the Person Arrested,
Investigated or Detained. n all cases, the
rights of the person arrested, investigated or
detained as provided by the Philippine
Constitution and under Republic Act No. 7438
(An Act Defining Certain Rights of Persons
Arrested, Detained or Under Custodial
nvestigation As Well As The Duties of the
Arresting, Detaining and nvestigating Officers,
and Providing Penalties For Violations Thereof)
shall, at all times, be respected.
ArticIe VIII
RESCUE/RECOVERY AND REPATRIATION
OF VICTIMS
Sec. 28. The Country Team Approach. The
country team approach under Executive Order
No. 74, series of 1993 and further enunciated in
Republic Act No. 8042 shall be the operational
scheme under which Philippine embassies
abroad shall provide protection to trafficked
persons regardless of their immigration status.
Under the Country Team Approach, all officers,
representatives and personnel of the Philippine
government posted abroad regardless of their
mother agencies shall, on a per country basis,
act as one-country team with mission under the
leadership of the Ambassador or the head of
mission.
Sec. 29. Rescue at the Country of
Destination.
(a) Procedure. When the victim is a Filipino
national and at the time of rescue is residing
abroad, the embassy or consulate which has
jurisdiction over the place where the victim is
residing shall verify the veracity of the report of
incidence of trafficking and inquire about the
condition of the victim.
Consistent with the country team approach, the
Post concerned shall send a team composed of
a consular officer and personnel from the
Philippine Overseas Labor Office (POLO) or the
Filipino Workers Resource Center (FWRC), the
Office of the Social Welfare Attach as the case
may be, to conduct a visit to the jail,
establishment, work site or residence of the
victim. n the case of Posts without attached
services, the team
will be composed of a consular officer and
personnel from the Assistance-to-Nationals
section.
The Post shall make representations with the
police authorities or other relevant law
enforcement agencies with respect to the
conduct of rescue operations.
Rescue operation shall also be made in
cooperation and close coordination with some
NGO's, local contacts or private individuals
when necessary.
n countries and areas where the services of the
FWRC is not accessible, a mobile type of
services shall be extended by the country team
members to trafficked persons regardless of
their status in the host country.
Thereafter, the victim will be encouraged to
execute a sworn statement, recounting among
others, the people/establishment involved in the
recruitment/transfer and deployment, the modus
operandi employed to recruit, transport and
deploy the victim, and other pertinent
information which could provide a lead in the
investigation and eventual prosecution of the
perpetrators.
(b) Assistance to Trafficked Persons. The
trafficked person shall be provided with
temporary shelter and other forms of assistance.
n countries where there is an Filipino Workers
Resource Center, the services available to
overseas Filipinos as provided for in Republic
Act No. 8042 shall also be extended to trafficked
persons regardless of their status in the host
country.
(c) Legal Assistance Fund. Trafficked persons
shall be considered under the category
"Overseas Filipinos in
Distress and may avail of the Legal Assistance
Fund created by Republic Act No. 8042, subject
Duman / Labor I / Prof. Battad / Page 48
to the guidelines as provided by law, including
rules and regulations issued by the DFA as
to its utilization and disbursement.
Sec. 30. Repatriation of Trafficked Persons.
The DFA, in coordination with DOLE and other
appropriate agencies, shall have the primary
responsibility for the repatriation of trafficked
persons, regardless of whether they are
documented or undocumented.
f, however, the repatriation of trafficked persons
shall expose the victims to greater risks, the DFA
shall make representation with the host
government for the extension of appropriate
residency permits
and protection, as may be legally permissible in
the host country.
Sec. 31. Procedure for Repatriation. n
accordance with existing rules and regulations
on the use and disbursement of Assistance-to-
Nationals Fund of the DFA for the repatriation of
distressed OFWs, the Post shall immediately
request the DFA, through the Office of the
Undersecretary for Migrant Workers' Affairs
(OUMWA), allocation of funds for the repatriation
of the victim. n appropriate cases and to avoid
re-victimization, the Post may withdraw the
passport of the victim and forward it to the DFA
and in
its place issue a Travel Document (FA Form
79(B)) valid for direct travel to the Philippines.
The Post concerned shall report to the DFA,
through the OUMWA, copy furnished the Office
of Consular Affairs, the actual date of
repatriation and other pertinent information and
submit a copy of the sworn statement and other
relevant documents.
n appropriate cases, especially when the victim
is suffering from mental illness, has suffered
physical or sexual abuse or has received serious
threats to his or her life and safety, the victim will
be
met upon arrival in the Philippines by DSWD
personnel, in coordination with the Joint Task
Force Against Trafficking in Persons and other
government agencies such as OWWA, B and
DOH. n the case of mentally ill patients, minors,
and other persons requiring special care, the
Post shall designate a duly authorized individual
to escort said victims to the Philippines.
The victim will be encouraged, if he or she has
not done so before, to execute a sworn
statement with the view of filing the appropriate
charges against the suspected trafficker in the
Philippines. Should the victim request the
assistance of DFA, OUMWA shall interview the
victim and make recommendations for
investigation with law enforcement agencies
such as the PNP and the NB. n cases where
recruitment agencies are involved, the case
shall also be referred to the POEA for
appropriate action. The report shall also be
forwarded to the B for case build up. The victim
may be referred to the DSWD/Local Social
Welfare
And Development Office or to the NB One-Stop
Shop for psychosocial interventions,
psychological and medical examination and
follow-through therapy sessions. Protective
custody and emergency shelter shall also be
provided to the victim, in appropriate cases.
Sec. 32. Rescue Within the Country. Rescue
operations within the country shall be primarily
undertaken by the law enforcement agencies in
coordination with LGUs, DOLE, DSWD and
DOH. Upon receipt of a report of a suspected or
alleged trafficking ncident or activity, the law
enforcement agency to which the report is made
shall conduct rescue operations of trafficked
persons. At the minimum, rescue operations
shall be guided by the following:
(a) Conduct of rescue operation of trafficked
persons shall be properly coordinated with the
concerned agencies particularly DSWD/local
social welfare and development officer;
(b) The rescue team shall ensure full protection
of the rights of the trafficked person as well as
the traffickers while under its custody and
control;
(c) After the rescue operation, the investigation
of the case shall be referred to the Women and
Children Complaint Desk (WCCD) desk of PNP,
the Violence Against Women and Children
Division (VAWCD) of the NB or other similar
units or desks;
(d) After the completion of the necessary
documents for the filing of cases, the rescue
team shall effect the appropriate and immediate
turn-over of the trafficked person to DSWD/local
social welfare and development officer; and
(e) n the course of investigation of the trafficked
person, the investigator handling the case shall
ensure that
the victim shall be accorded with proper
treatment and investigated in a child-friendly and
gender-sensitive
environment. n the conduct of investigative
interviews on children, the law enforcers shall
likewise be guided by the Rule on the
Examination of a Child Witness promulgated by
Supreme Court, as may be applicable. For this
purpose, the investigators shall be properly
trained in the handling of cases of trafficked
persons.
ArticIe IX
REHABILITATION AND
REINTEGRATION OF VICTIMS
Sec. 33. Comprehensive Program. The
DSWD, LGUs and other concerned agencies
shall provide a comprehensive, gendersensitive
Duman / Labor I / Prof. Battad / Page 49
and child friendly program for the recovery,
rehabilitation
and reintegration of victims/survivors of
trafficking, such as but not limited to the
following:
(a) mplementation of residential care, child
placement, educational assistance, livelihood
and skills training
and other community-based services must be
responsive to the specific needs and problems
of the victims/survivors and their families;
(b) Active involvement and participation of the
victims/survivors in the rehabilitation and
reintegration process shall be encouraged. n
order to empower them and to prevent their re-
victimization, capability building programs must
be provided; and Law, Rules and Local
nstruments 5 3
(c) Active cooperation and coordination with
NGOs and other members of the civil society
including the business community, tourism-
related industries as well as the media in the
rehabilitation and reintegration of
victims/survivors shall be undertaken.
Sec. 34 Procedure. The following procedure
shall be undertaken in implementing a
comprehensive program for the recovery,
rehabilitation and reintegration of
victims/survivors of trafficking:
(a) The victim/survivor of trafficking may go to
the nearest DSWD/LGU Social Welfare and
Development Office for assistance;
(b) Upon referral/interview the DSWD/Local
Government Social Worker shall conduct an
intake assessment
to determine appropriate intervention with the
victim/survivor;
(c) The social worker shall prepare a social case
study report/case summary for the
victim/survivor's admission to a residential
facility for temporary shelter or community-
based services;
(d) Provide services/interventions based on the
rehabilitation plan in coordination with
appropriate agencies,
e.g. counseling, legal, medical and educational
assistance; livelihood and/or skills training; as
well as appropriate services to the family of the
trafficked victim/survivor; and
(e) Monitor implementation and periodically
evaluate/update the rehabilitation plan until the
victim/ survivor has been reintegrated with
his/her family and community.
Sec. 35. Capability Building of Service
Providers. The frontline agencies and the
service providers must undergo training and
other capability building activities to enhance
their knowledge and skills in handling cases of
trafficking to prevent exacerbation of traumatic
stress and facilitate more effective crisis
interventions, healing and reintegration services.
Sec. 36. Documentation. Data banking,
research and documentation of best practices in
rehabilitation and reintegration programs shall
be conducted to identify efficient and effective
measures and services for the victims of
trafficking and their families.
ArticIe X
PROSECUTION, CIVIL FORFEITURE AND
RECOVERY OF CIVIL DAMAGES
Sec. 37. Who May File a Complaint.
Complaints for violations of the Act may be filed
by the following:
(a) Any person who has personal knowledge of
the commission of the offense;
(b) The trafficked person or the offended party;
(c) Parents or legal guardians;
(d) Spouse;
(e) Siblings; or
(f) Children.
The foregoing persons may also seek the
assistance of the Council in the filing of
complaint.
Sec. 38. Institution of Criminal Action; Effect.
The institution of the criminal action before the
Office of the Prosecutor or the court, as the case
may be, for purposes of preliminary investigation
shall interrupt the running of the period for
prescription of the offense charged. The
prescriptive period shall commence to run again
when such proceedings terminate without the
accused being convicted or acquitted or are
unjustifiably stopped for any reason not
imputable to the accused.
Sec. 39. Institution of Criminal and Civil
Actions. Pursuant to the Revised Rules on
Criminal Procedure, when a criminal action is
instituted, the civil action arising from the offense
charged shall be deemed instituted with the
criminal action unless the offended party waives
the civil action, reserves the right to institute it
separately or institutes the civil action prior to
the criminal action.
Sec. 40. Exemption from Filing Fees. When
the trafficked person institutes a separate civil
action for the recovery of civil damages, he/she
shall be exempt from the payment of filing fees.
Sec. 41. Venue. The offenses punishable under
the Act shall be considered as a continuing
offense and may be filed in the place where the
Duman / Labor I / Prof. Battad / Page 50
offense was committed or where any of its
elements occurred or where the trafficked
person actually resides at the time of the
commission of the offense. Provided, that the
court where the criminal action is first filed shall
acquire jurisdiction to the exclusion of other
courts.
Sec. 42. Forfeiture of the Proceeds and
Instruments Derived from Trafficking in
Persons.
(a) After conviction, all proceeds and
instruments, including any real or personal
property used in the commission of the offense,
shall be ordered confiscated and forfeited in
favor of the State unless the owner thereof can
prove the lack of knowledge of the use of such
property in the said illegal activity. Any award for
damages arising from the commission of the
offense may be satisfied and charged against
the personal and
separate properties of the offender and if the
same is insufficient to satisfy the claim, the
balance shall be taken from the forfeited
properties as may be ordered by the court.
(b) During the pendency of the criminal action,
no property or income used or derived therefrom
which are subject to confiscation and forfeiture,
shall be disposed, alienated or transferred and
the same shall be in custodia legis and no bond
shall be admitted for the release of the same.
(c) The trial prosecutor shall avail of the
provisional remedies in criminal cases to ensure
the confiscation,
preservation and forfeiture of the said properties.
(d) f the offender is a public officer or employee,
the forfeiture of his/her property found to be
unlawfully acquired shall be governed by
Republic Act No. 1379 otherwise known as "An
Act Declaring Forfeiture in Favor of the State
Any Property Found to Have Been Unlawfully
Acquired by Any Public Officer or Employee and
Providing for the Proceedings Therefore.
ArticIe XI
LEGAL PROTECTION AND OTHER
SERVICES
Sec. 43. Legal Protection. Trafficked persons
shall be recognized as victims of the act or acts
of trafficking. As such, they shall not be
penalized for crimes directly related to the acts
of trafficking enumerated under the Act or in
obedience to the order made by the trafficker in
relation thereto. n this regard, the consent of the
trafficked person to the intended exploitation set
forth in the Act shall be irrelevant.
Sec. 44. Preferential Entitlement under the
Witness Protection Program. Any provision of
Republic Act No. 6981 to the contrary
notwithstanding, any trafficked person shall be
entitled to the witness protection program
provided therein.
Sec. 45. Immunity from Criminal
Prosecution. Any person who has personal
knowledge in the commission of any of the
offenses penalized under the Act and who
voluntarily gives material information relative
thereto and willingly testifies against the offender
shall be exempt from prosecution for the offense
with reference to which his information and
testimony were given, subject to the following
conditions:
(a) The information and testimony are necessary
for the conviction of the accused; and
(b) Such information and testimony are not yet in
the possession of the state.
Sec. 46. Mandatory Services. To ensure
recovery, rehabilitation and reintegration into the
mainstream of society, concerned government
agencies shall make available the following
services to trafficked persons:
(a) Emergency shelter or appropriate housing;
(b) Counseling;
(c) Free legal services which shall include
information about the victims' rights and the
procedure for filing complaints, claiming
compensation and such other legal remedies
available to them, in a language understood by
the trafficked person;
(d) Medical or psychological services;
(e) Livelihood and skills training; and
(f) Educational assistance to a trafficked child.
Sustained supervision and follow through
mechanism that will track the progress of
recovery, rehabilitation and reintegration of the
trafficked persons shall be adopted and carried
out.
Sec. 47. Legal Protection of Trafficked
Persons Who are Foreign Nationals.
Trafficked persons in the Philippines who are
nationals of a foreign country shall be entitled to
appropriate protection, assistance and services
available to the trafficked persons and shall be
allowed to continued presence in the Philippines
for a period of fifty-nine (59) days to enable them
to effect the prosecution of the offenders. Such
period may be renewed upon showing of proof
by the trial prosecutor that their further testimony
is essential to the prosecution of the case. The
trial prosecutor shall course his request for
extension to the Council which shall accordingly
act upon the same. f such request is granted,
the registration and immigration fees of
such foreign nationals shall be waived. The
Council, for this purpose, shall develop
additional
guidelines to implement this provision.
ArticIe XII
TRUST FUND
Duman / Labor I / Prof. Battad / Page 51
Sec. 48. Trust Fund; Sources. All fines
imposed under the Act and the proceeds and
properties forfeited and confiscated pursuant to
Section 14 of the Act and Article X, Section 5 of
these rules and
regulations shall accrue to a Trust Fund to be
administered and managed by the Council.
Sec. 49. Utilization. The Trust Fund shall be
used exclusively for programs that will prevent
acts of trafficking and protect, rehabilitate,
reintegrate trafficked persons into the
mainstream of society. Such programs shall
include, but not limited to the following:
(a) Provision for mandatory services set forth in
Section 23 of the Act; and Section 47 of these
Rules and
Regulations.
(b) Sponsorship of a national research program
on trafficking and establishment of a data
collection system for monitoring and evaluation
purposes;
(c) Provision of necessary technical and material
support services to appropriate government
agencies and nongovernment organizations
(NGOs);
(d) Sponsorship of conferences and seminars to
provide venue for consensus building among the
public, the academe, government, NGOs and
international organizations; and
(e) Promotion of information and education
campaign on trafficking.
The Trust Fund may also be used to support the
operations of the Secretariat.
Sec. 50. Use and Disbursement of Trust
Fund. The use and disbursement of the trust
fund shall be subject to the approval of at least
two-thirds (2/3) of the members of the Council
and shall be
governed by existing government accounting
and auditing rules and regulations.
ArticIe XIII
INTERNATIONAL COOPERATION
Sec. 51. International Cooperation. The
Council, in close coordination with the DFA and
other concerned agencies, shall promote
cooperation, technical assistance and
partnership among governments and regional
and international organizations on the following
aspects:
(a) Prevention, protection, prosecution,
repatriation and reintegration aspects of
trafficking in persons, especially women and
children;
(b) Systematic exchange of information and
good practices among law enforcement and
immigration authorities;
(c) Prevention, detection, investigation and
prosecution of trafficking in persons, including
the protection
of victims through exchanges and joint training
at the bilateral, regional and international levels,
between and among relevant officials including
police, judges, prosecutors, immigration officers,
other law enforcement agents as well as
consular authorities; and
(d) Repatriation of victims of trafficking with due
regard to their safety and in consideration of
humanitarian
and compassionate factors.
ArticIe XIV
CONFIDENTIALITY
Sec. 52. Confidentiality. At any stage of the
investigation, prosecution and trial of an offense
under this Act, law enforcement officers,
prosecutors, judges, court personnel and
medical practitioners, as well as parties to the
case, shall recognize the right to privacy of the
trafficked person and the accused. Towards this
end, law enforcement officers, prosecutors and
judges to whom the complaint has been referred
may, whenever necessary to ensure a fair and
impartial proceeding, and after considering all
circumstances for the best interest of the parties,
order a closed-door investigation, prosecution or
trial. The name and personal circumstances of
the trafficked person or of the accused, or any
other information tending to establish their
identities and such circumstances or information
shall not be disclosed to the public. n case
when the prosecution or trial is conducted
behind closed doors, it shall be unlawful for any
editor, publisher, reporter or columnist in case of
printed materials, announcer or producer in case
of television and radio, producer and director of
a film in case of the movie industry, or any
person utilizing tri-media or information
technology to cause publicity of and case of
trafficking in persons.
ArticIe XV
OFFENSES AND PENALTIES
Sec. 53. Acts of Trafficking in Persons. Any
person, natural or juridical, who commits any of
the following acts shall suffer the penalty of
imprisonment of twenty (20) years and a fine of
not less than One million pesos (P1,000,000.00)
but not more than Two million pesos
(P2,000,000.00):
(a) To recruit, transport, transfer, harbor, provide,
or receive a person by any means, including
those done under the pretext of domestic or
overseas employment or training or
apprenticeship, for the purpose of prostitution,
Duman / Labor I / Prof. Battad / Page 52
pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
(b) To introduce or match for money, profit or
material, economic or other consideration, any
person or, as
provided for under Republic Act No. 6955, any
Filipino woman with a foreign national, for
marriage for the purpose of acquiring, buying,
offering, selling or trading him/her to engage in
prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or
debt bondage;
(c) To offer or contract marriage, real or
simulated, for the purpose of acquiring, buying,
offering, selling, or trading them to engage in
prostitution, pornography, sexual exploitation,
forced labor or slavery, involuntary servitude or
debt bondage;
(d) To undertake or organize tours and travel
plans consisting tourism packages or activities
for the purpose of utilizing and offering persons
for prostitution, pornography or sexual
exploitation;
(e) To maintain or hire a person to engage in
prostitution or pornography;
(f) To adopt or facilitate the adoption of persons
for the purpose of prostitution, pornography,
sexual exploitation,forced labor, slavery,
involuntary servitude or debt bondage;
(g) To recruit, hire, adopt, transport or abduct a
person, by means of threat or use of force,
fraud, deceit, violence, coercion, or intimidation
for the purpose of removal or sale of organs of
said person; and
(h) To recruit, transport or adopt a child to
engage in armed activities in the Philippines or
abroad.
Sec. 54. Acts that Promote Trafficking in
Persons. Any person, natural or juridical, who
shall commit the following acts which promote or
facilitate trafficking in persons, shall be
penalized with the penalty of imprisonment of
fifteen (15) years and a fine of not less than Five
hundred thousand pesos (P500,000.00) but not
more than One million pesos (P1,000,000.00):
(a) To knowingly lease or sublease, use or allow
to used any house, building or establishment for
the purpose of promoting trafficking in persons;
(b) To produce, print and issue or distribute
unissued, tampered or fake counseling
certificates, registration stickers and certificates
of any government agency which issues these
certificates and stickers as proof of compliance
with government regulatory and pre-departure
requirements for the purpose of promoting
trafficking in persons;
(c) To advertise, publish, print, broadcast or
distribute, or cause the advertisement,
publication, printing,
broadcasting or distribution by any means,
including the use of information technology and
the internet of any brochure, flyer, or any
propaganda material that promotes trafficking in
persons;
(d) To assist in the conduct of misrepresentation
or fraud for purposes of facilitating the
acquisition of clearances and necessary exit
documents from government agencies that are
mandated to provide pre-departure registration
and services for departing persons for the
purpose of promoting trafficking
in persons;
(e) To facilitate, assist or help in the exit and
entry of persons from/to the country at
international and local airports, territorial
boundaries and seaports who are in possession
of unissued, tampered or fraudulent and travel
documents for the purpose of promoting
trafficking in persons;
(f) To confiscate, conceal, or destroy the
passport, travel documents, or personal
documents or belongings of trafficked persons in
furtherance of trafficking or to prevent them from
leaving the country or seeking redress from the
government or appropriate agencies; and
(g) To knowingly benefit from, financial or
otherwise or make use of, the labor or services
of a person held to a condition of involuntary
servitude, forced labor , or slavery.
Sec. 55. Qualified Trafficking in Persons. The
following are considered as qualified trafficking
and shall be penalized with the penalty of life
imprisonment and a fine of not less than Two
million pesos (2,000,000.00) but not more than
Five million pesos (5,000,000.00);
(a) When the trafficked person is a child;
(b) When the adoption is effected through
Republic Act No. 8043, otherwise known as the
"nter-Country Adoption Act of 1995 and said
adoption is for the purpose of prostitution,
pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
(c) When the crime is committed by a syndicate ,
or in large scale. Trafficking is deemed
committed by a syndicate if carried out by a
group of three (3) or more persons conspiring or
confederating with one another. t is deemed
committed in large scale if committed against
three (3) or more persons ,
individually or as a group;
(d) When the offender is an ascendant, parent,
sibling, guardian or a person who exercises
authority over the trafficked person or when the
offense is committed by a public officer or
employee;
(e) When the trafficked person is recruited to
engage in prostitution with any member of the
military or law
enforcement agencies;
(f) When the offender is a member of the military
orlaw enforcement agencies; and
(g) When by reason or on occasion of the act of
trafficking in persons, the offended party dies,
becomes insane, suffers mutilation or is afflicted
Duman / Labor I / Prof. Battad / Page 53
with Human mmunodeficiency Virus HV or the
Acquired mmune Deficiency Syndrome (ADS).
Sec. 56. Violation of Confidentiality
Provisions. Any person who violates Section 7
of the Act and Section 52, Article XV hereof
shall suffer the penalty of imprisonment of six (6)
years and a fine not less than Five hundred
thousand pesos (P500,000.00) but not more
than One million pesos (P1,000,000.00).
Sec. 57. Application of Penalties and Other
Sanctions. The following shall be applied in the
imposition of penalties:
(a) f the offender is a corporation, partnership,
association, club, establishment or any judicial
person, the
penalty shall be imposed upon the owner,
president, partner, manager, and/or any
responsible officer who participated in the
commission of the crime or who shall have
knowingly permitted or failed to prevent its
commission;
(b) The registration with the Securities and
exchange Commission (SEC) and license to
operate of the erring agency, corporation,
association, religious group, tour or travel agent,
club or establishment, or any place or
entertainment shall be cancelled and revoked
permanently. The owner, president, partner or
manager thereof shall not be allowed to operate
similar establishment in a different name;
(c) f the offender is a foreigner, he shall be
immediately deported after serving his sentence
and be barred
permanently from entering the country;
(d) Any employee or official of government
agencies who shall issue or approve the
issuance of travel exit clearances, passports,
registration certificates, counseling certificates,
marriage license, and other similar documents to
persons, whether judicial or natural, recruitment
agencies, establishments or other individuals or
groups, who fail to observe the prescribed
procedures and the requirement as provided for
by laws, rules and regulations, shall be held
administratively liable, without prejudice to
criminal liability under the Act. The concerned
government official or employee shall, upon
conviction, be dismissed from the service and be
barred permanently to hold public office. His/her
retirement and other benefits shall likewise be
forfeited; and
(e) Conviction by final judgment of the adopter
for any offense under this Act shall result in the
immediate
rescission of the decree of adoption.
Sec. 58. Use of Trafficked Persons. Any
person who buys or engages the services of
trafficked persons for prostitution shall be
penalized as follows:
(a) First offense six (6) months of community
service as may be determined by the court and
a fine of Fifty thousand pesos (P50,000.00); and
(b) Second and subsequent offenses
imprisonment of one year (1) year and a fine of
One hundred thousand pesos (P100,000.00).
The Council shall coordinate with the Supreme
Court through the Office of the Court
Administrator for the issuance of appropriate
guidelines and measures for the judiciary to
implement this provision particularly on the
aspect of implementing the penalty of
community service.
ArticIe XV
FUNDING
Sec. 59. Inclusion in Agency Appropriations.
The heads of departments and agencies
concerned shall immediately include in their
annual appropriations the funding necessary to
implement programs and services required by
the Act and these regulations.
n the interim, the funding necessary to carry out
their mandate under the law may be charged
against their Gender and Development (GAD)
budget.
ArticIe XVII
FINAL PROVISIONS
Sec. 60. Non-Restriction of Freedom of
Speech and of Association, Religion and the
Right to Travel. Nothing in these rules and
regulations shall be interpreted as a restriction of
the freedom and of association, religion and the
right to travel for purposes not contrary to law as
guaranteed by the Constitution.
Sec. 61. Saving Clause. The provisions of
Republic Act No. 7610, otherwise known as the
"Special Protection of Children Against Child
Abuse, Exploitation and Discrimination Act shall
remain applicable and shall not in any way be
amended or repealed by the provisions of the
Act and these rules and regulations.
Sec. 62. Separability Clause. The declaration
of invalidity of any provision of these rules and
regulations or part thereof shall not affect the
validity of the remaining provisions.
Sec. 63. Repealing Clause. Pertinent
provisions of all laws, presidential decrees,
executive orders and rules and regulations, or
parts thereof, contrary to or inconsistent with the
provisions of the Act and these rules and
regulations are hereby repealed or modified
accordingly.
Duman / Labor I / Prof. Battad / Page 54
Sec. 64. Effectivity. These rules and regulations
shall take effect fifteen (15) days after its
complete publication in at least two (2)
newspapers of general circulation.
7. Aen Empoyment Reguaton
Reference: Arts. 12 (e), 40-42; Omnbus Rues, Book
I, Rue XIV, DO 12, 16 Nov. 2001; Omnbus Gudenes
for Issuance of Empoyment Permts to Foregn
Natonas); Const., Art. XII, Sec. 12
a. Coverage
Amode v. NLRC, 223 SCRA 341 (1993)
b. Condtons for grant of Permt, Omnbus Gudenes,
Rue III. 1, 2, 3
RULE III. Revocation/CanceIIation of EmpIoyment
Permits Issued
1. The permits issued may, motu proprio or
upon a petition, be cancelled or revoked
based on any of the following grounds:
1.1 Misrepresentation of facts or falsification
of the documents submitted;
1.2 The foreign national has been declared
as an undesirable alien by competent
authorities;
1.3 Non-compliance with the conditions for
which the AEP was issued;
1.4 Failure to renew AEP within one (1) year
after its expiration.
2. Petitions for cancellation or revocation of
permits issued shall be resolved within thirty
(30) calendars from receipt thereof.
3. Any aggrieved party may file a Motion for
Reconsideration and/or Appeal and the
same shall be resolved based on Paragraph
4 of this Rule.
Genera Mng Corp. v. Torres, 196 SCRA 215 (1991)
c. Vadty of AEP, Omnbus Rues, Rue II.7
7. Validity of Permits - The validity of permits shall
be as follows:
7.1 As a general rule, the validity of permits
shall be for a period of one (1) year, unless
the employment contract, consultancy
services, or other modes of engagement or
term of office for elective officers, provides
for a longer period.
7.2 The effectivity of the renewal shall be on
the day after the expiration of the previous
permit, regardless of whether or not the
renewal is granted before or after the
expiration of the previous permit.
7.3 As a general rule, the permits shall be
Duman / Labor I / Prof. Battad / Page 55
valid only for the position and the employer
for which it was issued, except in case of
foreign nationals who are holders of multiple
positions in one corporation, where one AEP
shall be valid for such multiple positions.
7.4 The permits of resident foreign nationals
shall be valid for multiple employers,
regardless of the nature and duration of their
employment, provided that they shall report
changes in their employment status and the
identity of their employers to the DOLE
Regional Office which has issued the permit.
d. Revocaton/Canceaton/Grounds, Omnbus
Gudenes, Rue III.1
RULE III. Revocation/CanceIIation of EmpIoyment
Permits Issued
1. The permits issued may, motu proprio or upon a
petition, be cancelled or revoked based on any of
the following grounds:
1.1 Misrepresentation of facts or falsification of the
documents submitted;
1.2 The foreign national has been declared as
an undesirable alien by competent authorities;
1.3 Non-compliance with the conditions for
which the AEP was issued;
1.4 Failure to renew AEP within one (1) year
after its expiration.
E. Human Resources Development
Reference: Arts. 57-81; Technca Educaton and
Sks Deveopment Authorty Act of 1994 (TESDA)
(RA 7796); Dua Tranng Systems Act of 1994 (RA
7686); Magna Carta for Dsabed Persons (RA 7277)
1. Pocy Ob|ectves, RA 7796, Secs. 2-3
SEC. 2. Declaration of Policy. - t is hereby declared
the policy of the State to provide relevant, accessible,
high quality and efficient technical education and skills
development in support of the development of high
quality Filipino middle-level manpower responsive to
and in accordance with Philippine development goals
and priorities.
The State shall encourage active participation of
various concerned sectors, particularly private
enterprises, being direct participants in and immediate
beneficiaries of a trained and skilled workforce, in
providing technical education and skills development
opportunities.
SEC. 3. Statement of Goals and Objectives. - t is the
goal and objective of this Act to:
Promote and strengthen the quality of technical
education and skills development programs to attain
international competitiveness;
Focus technical education and skills development on
meeting the changing demands for quality middle-level
manpower;

Encourage critical and creative thinking by disseminating
the scientific and technical knowledge base of middle-level
manpower development programs;

Recognize and encourage the complementary roles of
public and private institutions in technical education and
skills development and training systems; and

nculcate desirable values through the development of
moral character with emphasis on work ethic, self-discipline,
self-reliance and nationalism.
2. Apprentce
a. Defnton, RA 7796, Sec. 4 (|)
"Apprentice" is a person undergoing training for an
approved apprenticeable occupation during an
apprenticeship agreement;
b. Apprentceabe Occupaton, RA 7796, Sec. 4 (m)
(m) "Apprenticeable Occupation" is an occupation
officially endorsed by a tripartite body and approved
for apprenticeship by the authority;
c. Ouafcaton, RA 7610, as amended by RA 7658, Sec.
12
REPUBLIC ACT NO. 7658
AN ACT PROHBTNG THE EMPLOYMENT OF
CHLDREN BELOW 15 YEARS OF AGE N PUBLC
AND PRVATE UNDERTAKNGS, AMENDNG FOR
THS PURPOSE SECTON 12, ARTCLE V OF R.
A. 7610.
Section 1. Section 12, ArticIe VIII of R. A. No. 7610
otherwise known as the "SpeciaI Protection of
ChiIdren Against ChiId Abuse, ExpIoitation and
Discrimination Act" is hereby amended to read as
foIIows:
"Sec. 12. EmpIoyment of ChiIdren. - ChiIdren
beIow fifteen (15) years of age shaII not be
empIoyed except:
(1) When a chiId works directIy under the soIe
responsibiIity of his parents or IegaI guardian and
where onIy members of the empIoyer's famiIy are
empIoyed: Provided, however, That his
empIoyment neither endangers his Iife, safety,
heaIth and moraIs, nor impairs his normaI
deveIopment; Provided, further, That the parent or
IegaI guardian shaII provide the said minor chiId
with the prescribed primary and/or secondary
education; or
(2) Where a chiId's empIoyment or participation in
pubIic entertainment or information through
cinema, theater, radio or teIevision is essentiaI:
Provided, The empIoyment contract is concIuded
by the chiId's parents or IegaI guardian, with the
express agreement of the chiId concerned, if
possibIe, and the approvaI of the Department of
Labor and EmpIoyment: and Provided, That the
Duman / Labor I / Prof. Battad / Page 56
foIIowing requirements in aII instances are strictIy
compIied with:
(a) The empIoyer shaII ensure the protection,
heaIth, safety, moraIs and normaI deveIopment of
the chiId;
(b) The empIoyer shaII institute measures to
prevent the chiId's expIoitation or discrimination
taking into account the system and IeveI of
remuneration, and the duration and arrangement
of working time; and
(c) The empIoyer shaII formuIate and impIement,
subject to the approvaI and supervision of
competent authorities, a continuing program for
training and skiIIs acquisition of the chiId.
In the above exceptionaI cases where any such
chiId may be empIoyed, the empIoyer shaII first
secure, before engaging such chiId, a work permit
from the Department of Labor and EmpIoyment
which shaII ensure observance of the above
requirements.
The Department of Labor and EmpIoyment shaII
promuIgate ruIes and reguIations necessary for
the effective impIementation of this Section."

Sec. 2. AII Iaws, decrees, executive orders, ruIes
and reguIations or parts thereof contrary to, or
inconsistent with this Act are hereby modified or
repeaIed accordingIy.
Sec. 3. This Act shaII take effect fifteen (15) days
after its compIete pubIication in the OfficiaI
Gazette or in at Ieast two (2) nationaI newspapers
or generaI circuIation whichever comes earIier.

Approved: November 9, 1993
d. Aowed Empoyment; Requrement Program Approva
Ntto Enterprses v. NLRC, 258 SCRA 654 (1995)
e. Terms and Condtons of Empoyment, Art. 61, 72
ART. 61. Contents of apprenticeship agreements. -
Apprenticeship agreements, including the wage rates
of apprentices, shall conform to the rules issued by
the Secretary of Labor and Employment. The period
of apprenticeship shall not exceed six months.
Apprenticeship agreements providing for wage rates
below the legal minimum wage, which in no case shall
start below 75 percent of the applicable minimum
wage, may be entered into only in accordance with
apprenticeship programs duly approved by the
Secretary of Labor and Employment. The Department
shall develop standard model programs of
apprenticeship. (As amended by Section 1, Executive
Order No. 111, December 24, 1986).
ART. 72. Apprentices without compensation. - The
Secretary of Labor and Employment may authorize
the hiring of apprentices without compensation whose
training on the job is required by the school or training
program curriculum or as requisite for graduation or
board examination.
3. Costs, Art. 71
ART. 71. Deductibility of training costs. - An additional
deduction from taxable income of one-half (1/2) of the
value of labor training expenses incurred for developing
the productivity and efficiency of apprentices shall be
granted to the person or enterprise organizing an
apprenticeship program: Provided, That such program is
duly recognized by the Department of Labor and
Employment: Provided, further, That such deduction shall
not exceed ten (10%) percent of direct labor wage: and
Provided, finally, That the person or enterprise who wishes
to avail himself or itself of this incentive should pay his
apprentices the minimum wage.
4. Enforcement, Arts. 65, 66, 67
ART. 65. Investigation of violation of apprenticeship
agreement. - Upon complaint of any interested person
or upon its own initiative, the appropriate agency of
the Department of Labor and Employment or its
authorized representative shall investigate any
violation of an apprenticeship agreement pursuant to
such rules and regulations as may be prescribed by
the Secretary of Labor and Employment.
ART. 66. Appeal to the Secretary of Labor and
Employment. - The decision of the authorized agency
of the Department of Labor and Employment may be
appealed by any aggrieved person to the Secretary of
Labor and Employment within five (5) days from
receipt of the decision. The decision of the Secretary
of Labor and Employment shall be final and
executory.
ART. 67. Exhaustion of administrative remedies. - No
person shall institute any action for the enforcement
of any apprenticeship agreement or damages for
breach of any such agreement, unless he has
exhausted all available administrative remedies.
5. Learners
a. Defnton, RA 7796, Sec. 4
(n) "Learners" refer to persons hired as trainees in semi-
skills and other industrial occupations which are non-
Duman / Labor I / Prof. Battad / Page 57
apprenticeable. Learnersship programs must be approved
by the Authority;
b. Aowed Empoyment, Art. 74 (b)
ART. 74. When learners may be hired. - Learners may be
employed when no experienced workers are available, the
employment of learners is necessary to prevent
curtailment of employment opportunities, and the
employment does not create unfair competition in terms of
labor costs or impair or lower working standards.
c. Terms and Condtons of Empoyment, Arts. 75, 76
ART. 75. Learnership agreement. - Any employer
desiring to employ learners shall enter into a
learnership agreement with them, which agreement
shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which
shall not exceed three (3) months;
(c) The wages or salary rates of the learners which
shall begin at not less than seventy-five percent
(75%) of the applicable minimum wage; and
(d) A commitment to employ the learners if they so
desire, as regular employees upon completion of
the learnership. All learners who have been allowed
or suffered to work during the first two (2) months
shall be deemed regular employees if training is
terminated by the employer before the end of the
stipulated period through no fault of the learners.
The learnership agreement shall be subject to
inspection by the Secretary of Labor and
Employment or his duly authorized representative.
ART. 76. Learners in piecework. - Learners
employed in piece or incentive-rate jobs during the
training period shall be paid in full for the work
done.
6. Dfferenty-Abed Worker (Handcapped), RA 7277
a. Defnton, RA 7277, Sec. 4 (a) (b) (c) (d)
Sec. 4. Definition of Terms. - For purposes of
this Act, these terms are defined as foIIows:
(a) DisabIed persons are those suffering from
restriction or different abiIities, as a resuIt of a
mentaI, physicaI or sensory impairment, to
perform an activity in the manner or within the
range considered normaI for a human being;

(b) Impairment is any Ioss, diminution or
aberration of psychoIogicaI, physioIogicaI, or
anatomicaI structure or function;
(c) DisabiIity shaII mean 1) a physicaI or mentaI
impairment that substantiaIIy Iimits one or more
psychoIogicaI, physioIogicaI or anatomicaI
function of an individuaI or activities of such
individuaI; 2) a record of such an impairment; or
3) being regarded as having such an impairment;
(d) Handicap refers to a disadvantage for a given
individuaI, resuIting from an impairment or a
disabiIity, that Iimits or prevents the function or
activity, that is considered normaI given the age
and sex of the individuaI;
b. Pocy Decaraton, RA 7277, Sec. 2
Sec. 2. DecIaration of PoIicy - The grant of the
rights and priviIeges for disabIed persons shaII be
guided by the foIIowing principIes:
(a) DisabIed persons are part of PhiIippine
society, thus the State shaII give fuII support to
the improvement of the totaI weII-being of
disabIed persons and their integration into the
mainstream of society. Toward this end, the State
shaII adopt poIicies ensuring the rehabiIitation,
seIf-deveIopment and seIf-reIiance of disabIed
persons. It shaII deveIop their skiIIs and potentiaIs
to enabIe them to compete favorabIy for avaiIabIe
opportunities.

(b) DisabIed persons have the same rights as
other peopIe to take their proper pIace in society.
They shouId be abIe to Iive freeIy and as
independentIy as possibIe. This must be the
concern of everyone - the famiIy, community and
aII government and nongovernment
organizations. DisabIed persons' rights must
never be perceived as weIfare services by the
Government.
(c) The rehabiIitation of the disabIed persons shaII
be the concern of the Government in order to
foster their capacity to attain a more meaningfuI,
productive and satisfying Iife. To reach out to a
greater number of disabIed persons, the
rehabiIitation services and benefits shaII be
expanded beyond the traditionaI urban-based
centers to community based programs, that wiII
ensure fuII participation of different sectors as
supported by nationaI and IocaI government
agencies.
(d) The State aIso recognizes the roIe of the
private sector in promoting the weIfare of
disabIed persons and shaII encourage partnership
in programs that address their needs and
concerns.
(e) To faciIitate integration of disabIed persons
into the mainstream of society, the State shaII
advocate for and encourage respect for disabIed
persons. The State shaII exert aII efforts to
remove aII sociaI, cuIturaI, economic,
environmentaI and attitudinaI barriers that are
prejudiciaI to disabIed persons.
c. Coverage, RA 7277, Sec. 3
Sec. 3. Coverage. - This Act shaII cover aII disabIed
persons and, to the extent herein provided,
departments, offices and agencies of the NationaI
Government or nongovernment organizations
invoIved in the attainment of the objectives of this
Act.
d. Rghts and Prveges, RA 7277, Secs. 5, 6, 7
Duman / Labor I / Prof. Battad / Page 58
Sec. 5. EquaI Opportunity for EmpIoyment. - No
disabIe person shaII be denied access to
opportunities for suitabIe empIoyment. A quaIified
disabIed empIoyee shaII be subject to the same
terms and conditions of empIoyment and the
same compensation, priviIeges, benefits, fringe
benefits, incentives or aIIowances as a quaIified
abIe bodied person.
Five percent (5%) of aII casuaI emergency and
contractuaI positions in the Departments of SociaI
WeIfare and DeveIopment; HeaIth; Education,
CuIture and Sports; and other government
agencies, offices or corporations engaged in
sociaI deveIopment shaII be reserved for disabIed
persons.
Sec. 6. SheItered EmpIoyment - If suitabIe
empIoyment for disabIed persons cannot be
found through open empIoyment as provided in
the immediateIy preceding Section, the State shaII
endeavor to provide it by means of sheItered
empIoyment. In the pIacement of disabIed
persons in sheItered empIoyment, it shaII accord
due regard to the individuaI quaIities, vocationaI
goaIs and incIinations to ensure a good working
atmosphere and efficient production.
Sec. 7. Apprenticeship. - Subject to the
provisions of the Labor Code as amended,
disabIed persons shaII be eIigibIe as apprentices
or Iearners: Provided, That their handicap is not
as much as to effectiveIy impede the performance
of job operations in the particuIar occupation for
which they are hired; Provided, further, That after
the Iapse of the period of apprenticeship, if found
satisfactory in the job performance, they shaII be
eIigibIe for empIoyment.
Bernardo v. NLRC & FEBTC, 310 SCRA 186 (1999)
e. Dscrmnaton, RA 7277, Secs. 32, 33
Sec. 32. Discrimination on EmpIoyment. - No
entity, whether pubIic or private, shaII
discriminate against a quaIified disabIed person
by reason of disabiIity in regard to job appIication
procedures, the hiring, promotion, or discharge of
empIoyees, empIoyee compensation, job training,
and other terms, conditions, and priviIeges of
empIoyment. The foIIowing constitute acts of
discrimination:
(a) Limiting, segregating or cIassifying a disabIed
job appIicant in such a manner that adverseIy
affects his work opportunities;

(b) Using quaIification standards, empIoyment
tests or other seIection criteria that screen out or
tend to screen out a disabIed person unIess such
standards, tests or other seIection criteria are
shown to be job-reIated for the position in
question and are consistent with business
necessity;
(c) UtiIizing standards, criteria, or methods of
administration that:
(1) have the effect of discrimination on the basis
of disabiIity; or

(2) perpetuate the discrimination of others who
are subject to common administrative controI.
(d) Providing Iess compensation, such as saIary,
wage or other forms of remuneration and fringe
benefits, to a quaIified disabIed empIoyee, by
reason of his disabiIity, than the amount to which
a non-disabIed person performing the same work
is entitIed;

(e) Favoring a non-disabIed empIoyee over a
quaIified disabIed empIoyee with respect to
promotion, training opportunities, study and
schoIarship grants, soIeIy on account of the
Iatter's disabiIity;
(f) Re-assigning or transferring a disabIed
empIoyee to a job or position he cannot perform
by reason of his disabiIity;
(g) Dismissing or terminating the services of a
disabIed empIoyee by reason of his disabiIity
unIess the empIoyer can prove that he impairs the
satisfactory performance of the work invoIved to
the prejudice of the business entity: Provided,
however, That the empIoyer first sought to
provide reasonabIe accommodations for disabIed
persons;
(h) FaiIing to seIect or administer in the most
effective manner empIoyment tests which
accurateIy refIect the skiIIs, aptitude or other
factor of the disabIed appIicant or empIoyee that
such tests purports to measure, rather than the
impaired sensory, manuaI or speaking skiIIs of
such appIicant or empIoyee, if any; and
(i) ExcIuding disabIed persons from membership
in Iabor unions or simiIar organizations.
Duman / Labor I / Prof. Battad / Page 59
Sec. 33. EmpIoyment Entrance Examination. -
Upon an offer of empIoyment, a disabIed
appIicant may be subjected to medicaI
examination, on the foIIowing occasions:
(a) aII entering empIoyees are subjected to such
an examination regardIess of disabiIity;

(b) information obtained during the medicaI
condition or history of the appIicant is coIIected
and maintained on separate forms and in separate
medicaI fiIes and is treated as a confidentiaI
medicaI record; Provided, however, That:
(1) supervisors and managers may be informed
regarding necessary restrictions on the work or
duties of the empIoyees and necessary
accommodations;

(2) first aid and safety personneI may be informed,
when appropriate, if the disabiIity may require
emergency treatment;
(3) government officiaIs investigating compIiance
with this Act shaII be provided reIevant
information on request; and
(4) the resuIts of such examination are used onIy
in accordance with this Act.
f. Enforcement, Secs. 44, 45, 46
Sec. 44. Enforcement by the Secretary of Justice.
-
(a) DeniaI of Right
(1) Duty to Investigate - the Secretary of Justice
shaII investigate aIIeged vioIations of this Act, and
shaII undertake periodic reviews of compIiance of
covered entities under this Act.
(b) PotentiaI VioIations - If the Secretary of
Justice has reasonabIe cause to beIieve that -
(1) any person or group of persons is engaged in
a pattern or practice of discrimination under this
Act; or

(2) any person or group or persons has been
discriminated against under this Act and such
discrimination raises an issue of generaI pubIic
importance, the Secretary of Justice may
commence a IegaI action in any appropriate
court.
Sec. 45. Authority of Court. - The court may
grant any equitabIe reIief that such court
considers to be appropriate, incIuding, to the
extent required by this Act:
(a) granting temporary, preIiminary or permanent
reIief;

(b) providing an auxiIiary aid or service,
modification of poIicy, practice or procedure, or
aIternative method; and
(c) making faciIities readiIy accessibIe to and
usabIe by individuaIs with disabiIities.
Sec. 46. PenaI CIause. - (a) Any person who
vioIates any provision of this Act shaII suffer the
foIIowing penaIties:
(1) for the first vioIation, a fine of not Iess than
Fifty thousand pesos (P50,000.00) but not
exceeding One hundred thousand pesos
(P100,000.00) or imprisonment of not Iess than six
(6) months but not more than two (2) years, or
both at the discretion of the court; and

(2) for any subsequent vioIation, a fine of not Iess
than One hundred thousand pesos (P100,000.00)
but not exceeding Two hundred thousand pesos
(P200,000.00) or imprisonment for not Iess than
two (2) years but not more than six (6) years, or
both at the discretion of the court.
(b) Any person who abuses the priviIeges granted
herein shaII be punished with imprisonment of not
Iess than six (6) months or a fine of not Iess than
Five thousand pesos (P5,000.00), but not more
than Fifty thousand pesos (P50,000.00), or both, at
the discretion of the court.

(c) If the vioIator is a corporation, organization or
any simiIar entity, the officiaIs thereof directIy
invoIved shaII be IiabIe therefor.
(d) If the vioIator is an aIien or a foreigner, he shaII
be deported immediateIy after service of sentence
without further deportation proceedings.
NOTES:
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Habol:
Aen Empoyment Reguaton
Reference: Arts. 12 (e), 40-42; Omnbus Rues, Book
I, Rue XIV, DO 12, 16 Nov. 2001; Omnbus Gudenes
for Issuance of Empoyment Permts to Foregn
Natonas); Const., Art. XII, Sec. 12
Labor Code
Art. 12 (e) To reguate the empoyment of aens,
ncudng the estabshment of a regstraton and/or
work permt system;
ART. 40. Employment permit of non-resident aliens. -
Any aen seekng admsson to the Phppnes for
empoyment purposes and any domestc or foregn
empoyer who desres to engage an aen for
empoyment n the Phppnes sha obtan an
empoyment permt from the Department of Labor.
The empoyment permt may be ssued to a non-
resdent aen or to the appcant empoyer after a
determnaton of the non-avaabty of a person n
the Phppnes who s competent, abe and wng at
the tme of appcaton to perform the servces for
whch the aen s desred.
For an enterprse regstered n preferred areas of
nvestments, sad empoyment permt may be ssued
upon recommendaton of the government agency
charged wth the supervson of sad regstered
enterprse.
ART. 41. Prohibition against transfer of employment.
- (a) After the ssuance of an empoyment permt, the
aen sha not transfer to another |ob or change hs
empoyer wthout pror approva of the Secretary of
Labor.
(b) Any non-resdent aen who sha take up
empoyment n voaton of the provson of ths Tte
and ts mpementng rues and reguatons sha be
punshed n accordance wth the provsons of
Artces 289 and 290 of the Labor Code.
In addton, the aen worker sha be sub|ect to
deportaton after servce of hs sentence.
ART. 42. 5ubmission of list. - Any empoyer
empoyng non-resdent foregn natonas on the
effectve date of ths Code sha submt a st of such
natonas to the Secretary of Labor wthn thrty (30)
days after such date ndcatng ther names,
ctzenshp, foregn and oca addresses, nature of
empoyment and status of stay n the country. The
Secretary of Labor sha then determne f they are
entted to an empoyment permt.
Omnibus Rules, Book l, Rule XlV
RULE XIV
Empoyment of Aens
SECTION 1. Coverage. - Ths Rue sha appy to a
aens empoyed or seekng empoyment n the
Phppnes, and ther present or prospectve
empoyers.
SECTION 2. Submsson of st. - A empoyers
empoyng foregn natonas, whether resdent or
non-resdent sha submt a st of such natonas to
the Bureau ndcatng ther names, ctzenshp,
foregn and oca addresses; nature of empoyment
and status of stay n the Phppnes.
SECTION 3. Regstraton of resdent aens. - A
empoyed resdent aens sha regster wth the
Bureau under such gudenes as may be ssued by t.
SECTION 4. Empoyment permt requred for entry. -
No aen seekng empoyment, whether on resdent or
non-resdent status, may enter the Phppnes
wthout frst securng an empoyment permt from
the Department of Labor and Empoyment. If an aen
enters the country under a non-workng vsa and
wshes to be empoyed thereafter, he may ony be
aowed to be empoyed upon presentaton of a duy
approved empoyment permt.
SECTION 5. Requrements for empoyment permt
appcaton. - The appcaton for an empoyment
permt sha be accompaned by the foowng:
(a) Currcuum vtae duy sgned by the appcant
ndcatng hs educatona background, hs work
experence and other data showng that he
possesses hgh technca sks n hs trade or
professon;
(b) Contract of empoyment between the empoyer
and the prncpa whch sha embody the foowng,
among others:
(1) That the non-resdent aen worker sha compy
wth a appcabe aws and rues and reguatons of
the Phppnes;
(2) That the non-resdent aen worker and the
empoyer sha bnd themseves to tran at east two
(2) Fpno understudes for a perod to be
determned by the Secretary of Labor and
Empoyment; and
(3) That he sha not engage n any ganfu
empoyment other than that for whch he was ssued
a permt.
(c) A desgnaton by the empoyer of at east two (2)
understudes for every aen worker. Such
understudes must be the most rankng reguar
empoyees n the secton or department for whch
the expatrates are beng hred to ensure the actua
transfer of technoogy.
SECTION 6. Issuances of empoyment permt. - The
Secretary of Labor and Empoyment may ssue an
empoyment permt to the appcant based on:
a) Compance by the appcant and hs empoyer
wth the requrements of Secton 2 hereof;
b) Report of the Bureau Drector as to the avaabty
or non-avaabty of any person n the Phppnes
who s competent, abe, and wng to do the |ob for
whch the servces of the appcant are desred;
c) Hs assessment as to whether or not the
empoyment of the appcant w redound to the
natona nterest;
Duman / Labor I / Prof. Battad / Page 61
d) Admssbty of the aen as certfed by the
Commsson on Immgraton and Deportaton;
e) The recommendaton of the Board of Investments
or other approprate government agences f the
appcant w be empoyed n preferred areas of
nvestments or n accordance wth mperatves of
economc deveopments; and
f) Payments of a P100.00 fee.
SECTION 7. Duraton of empoyment permt. -
Sub|ect to renewa upon showng of good cause, the
empoyment permt sha be vad for a mnmum
perod of one (1) year startng from the date of ts
ssuance uness sooner revoked by the Secretary of
Labor and Empoyment for voaton of any provsons
of the Code or of these Rues.
SECTION 8. Advce to Commsson on Immgraton
and Deportaton. - The Bureau sha advce the
Commsson on Immgraton and Deportaton on the
ssuance of an empoyment permt to an appcant.
SECTION 9. Understudy Tranng Program. - The
empoyer sha submt a tranng program for hs
understudes to the Bureau wthn thrty (30) days
upon arrva of the aen workers. The supervson of
the tranng program sha be the responsbty of the
Bureau and sha be n accordance wth standards
estabshed by the Secretary of Labor and
Empoyment.
Omnibus Guidelines for lssuance of
Employment Permits to Foreign Nationals -DO
12, November 12, 2001.
DEPARTMENT ORDER NO. 12
(Series of 2001)
.
.
OMNIBUS GUIDELINES FOR THE ISSUANCE OF
EMPLOYMENT PERMITS TO FOREIGN
NATIONALS.
.
.
Pursuant to the provisions of ArticIes 5 and 40 of
P. D. 442, as amended, the provisions of RuIe XIV,
Book I of its ImpIementing RuIes and ReguIations,
Section 17(5), Chapter 4, TitIe VII of the
Administrative Code of 1987, the foIIowing
Omnibus GuideIines for the issuance of
EmpIoyment Permits are hereby promuIgated:

Rule I
Coverage and Exemption

1. The following shall apply for Alien Employment
Permit (AEP):
1.1. AII foreign nationaIs seeking admission to the
PhiIippines for the purpose of empIoyment;

1.2. Missionaries or reIigious workers who intend
to engage in gainfuI empIoyment;

1.3. HoIders of SpeciaI Investors Resident Visa
(SIRV), SpeciaI Retirees Resident Visa (SRRV),
Treaty Traders Visa (9d) or SpeciaI Non-immigrant
Visa (47(a)2), who occupy any executive, advisory,
supervisory, or technicaI position in any
estabIishment;

1.4. Agencies, organizations or individuaIs
whether pubIic or private, who secure the
services of foreign professionaIs to practice their
professions in the PhiIippines in the PhiIippines
under reciprocity and other internationaI
agreements;

1.5. Non-Indo-Chinese Refugees who are asyIum
seekers and given refugee status by the United
Nations High Commissioner on Refugees
(UNHCR) or the Department of Justice under DOJ
Department Order No. 94, series of 1998;

1.6. Resident foreign nationaIs seeking
empIoyment in the PhiIippines.
2. Exemption. The foIIowing categories of foreign
nationaIs are exempt from securing an
empIoyment permit in order to work in the
PhiIippines.
2.1 AII members of the dipIomatic services and
foreign government officiaIs accredited by the
PhiIippine Government;
2.2 Officers and staff of internationaI
organizations of which the PhiIippine government
is a cooperating member, and their Iegitimate
spouse desiring to work in the PhiIippines;
2.3 Foreign nationaIs eIected as members of the
Governing board who do not occupy any other
position, but have onIy voting rights in the
corporation; and
2.4 AII foreign nationaIs granted exemption by
speciaI Iaws and aII other Iaws that may be
promuIgated by the Congress.
Rule II
Procedures in the Processing of Applications for
AEP

1. AII foreign nationaIs seeking empIoyment in the
PhiIippines under RuIe 1 hereof or their
prospective empIoyers, shaII fiIe their
appIications with the DOLE RegionaI Office
having jurisdiction over the intended pIace of
work.
2. Fees - The appIicant shaII pay fiIing, pubIication
and permit fees in the amount of Eight thousand
pesos (P8,000.00) for each appIication for AEP
with a vaIidity of one (1) year. Three thousand
pesos (P3,000.00) shaII be charged for every
additionaI year of vaIidity or a fraction thereof.
3. An AEP shaII be issued based on the foIIowing:
3.1. CompIiance bye the appIicant empIoyer or the
foreign nationaI with the substantive and
documentary requirements;

3.2. Determination of the DOLE Secretary that
there is no FiIipino nationaI who is competent,
abIe and wiIIing to do the job for which the
services of the appIicant is desired;

3.3. Assessment of the DOLE Secretary that the
empIoyment of the foreign nationaI wiII redound
to nationaI benefit;
4. Denial of Application for AEP - An appIication
for AEP may be denied based on the ground of
non-compIiance with any of the requirements for
issuance of AEP or for misrepresentation of facts
in the appIication or submission of faIsified or
tampered documents.
Duman / Labor I / Prof. Battad / Page 62
Foreign nationaIs whose appIications have been
denied shaII not be aIIowed to re-appIy in any of
the DOLE RegionaI Offices.
5. Renewal of Permit - An appIication for renewaI
of AEP shaII be fiIed at Ieast fifteen (15) days
before its expiration. For eIective officers,
appIications for renewaI shaII be fiIed upon
eIection or at Ieast thirty (30) days before the
effectivity of the appIicant's term of office if the
succeeding term of office is ascertained.

FaiIure to fiIe the appIication for renewaI of permit
within the prescribed period shaII be subject to
fines of Five Thousand Pesos (5,000.00), if fiIed
within six (6) months after the prescribed period
and Ten Thousand Pesos (10,000.00), if fiIed after
six (6) months. FaiIure to renew the AEP within
one (1) year after its expiration shaII be a cause
for its revocation or canceIIation.
6. The empIoyer shaII notify the DOLE-RO which
issued the permit of the date of the assumption to
duty of the foreign nationaI within thirty (30) days
from issuance of the permit.
7. Validity of Permits - The vaIidity of permits shaII
be as foIIows:
7.1. As a generaI ruIe, the vaIidity of permits shaII
be for a period of one (1) year, unIess the
empIoyment contract, consuItancy services, or
other modes of engagement or term of office for
eIective officers, provides for a Ionger period.

7.2. The effectivity of the renewaI shaII be on the
day after the expiration of the previous permit,
regardIess of whether or not the renewaI is
granted before or after the expiration of the
previous permit.

7.3. As a generaI ruIe, the permits shaII be vaIid
onIy for the position and the empIoyer for which it
was issued, except in case of foreign nationaIs
who are hoIders of muItipIe positions in one
corporation, where one AEP shaII be vaIid for
such muItipIe positions.

7.4. The permits of resident foreign nationaIs shaII
be vaIid for muItipIe empIoyers, regardIess of the
nature and duration of their empIoyment,
provided that they shaII report changes in their
empIoyment status and the identity of their
empIoyers to the DOLE RegionaI Office which has
issued the permit.
Rule III
Revocation/Cancellation of Employment Permits
Issued

1. The permits issued may, motu proprio or upon
a petition, be canceIIed or revoked based on any
of the foIIowing grounds:
1.1 Misrepresentation of facts or faIsification of
the documents submitted;

1.2 The foreign nationaI has been decIared as an
undesirabIe aIien by competent authorities;

1.3 Non-compIiance with the conditions for which
the AEP was issued;

1.4 FaiIure to renew AEP within one (1) year after
its expiration.
2. Petitions for canceIIation or revocation of
permits issued shaII be resoIved within thirty (30)
caIendars from receipt thereof.
3. Any aggrieved party may fiIe a Motion for
Reconsideration and/or AppeaI and the same shaII
be resoIved based on Paragraph 4 of this RuIe.
4. Remedies in Case of Denial or Cancellation - A
Motion for Reconsideration maybe fiIed by an
aggrieved party within seven (7) caIendar days
after receipt of the Order of DeniaI/CanceIIation.
The DOLE RegionaI Director shaII resoIve the said
Motion for Reconsideration within ten (10)
caIendar days from receipt thereof.
A motion for Reconsideration fiIed after the period
of seven (7) caIendar days but within ten (10)
caIendar days after receipt of the deniaI shaII be
treated as an appeaI.
An appeaI from the decision of the DOLE RegionaI
Director may be fiIed with the Secretary of Iabor
and EmpIoyment within ten (10) caIendar days
from receipt of an Order from the DOLE RegionaI
Director. The decision of the Secretary of Labor
and EmpIoyment shaII be finaI and unappeaIabIe.

Rule IV
Penal and Transitory Provisions

1. The DOLE RegionaI Directors, after due notice
and hearing, shaII have the power to order and
impose a fine of Five Thousand Pesos (P5,000.00)
on foreign nationaIs found working without an
AEP for Iess than one (1) year and Ten Thousand
Pesos (P10,000.00) for more than one (1) year.
2. AII appIications for empIoyment
permit/certificates pending at the DOLE-RO upon
the effectivity of these GuideIines shaII be
covered and processed under the provisions of
these GuideIines.
3. HoIders of provisionaI and extended AEPs
issued under Memorandum dated 24 August 2001
regarding AIternative Interim Measures for the
Issuance of AIien EmpIoyment Permits, shaII
appIy for an AEP pursuant to these GuideIines on
or before the expiration of the provisionaI and
extended AEP.
4. Foreign nationaIs who are aIready working in
the country and who have not yet secured the
requisite empIoyment permit shaII have ninety
(90) days from the effectivity of these GuideIines
to secure the said empIoyment permit without
penaIty.
Rule V
Miscellaneous Provisions

1. Manual of Operations. - The Bureau of LocaI
Duman / Labor I / Prof. Battad / Page 63
EmpIoyment shaII issue a ManuaI of Operations to
impIement the provisions of these GuideIines.
2. Separability Clause. - If any provision or part of
this Department Order or the appIication thereof
to any person or circumstance is heId invaIid by
the Courts, the remaining vaIid provisions of this
Department Order shaII not be affected.
3. Repealing Clause. - AII guideIines, ruIes and
reguIations and agreements inconsistent herewith
are hereby repeaIed or modified accordingIy.
4. Effectivity. - These guideIines shaII take effect
fifteen (15) days after its pubIication in two (2)
newspapers of generaI circuIation.
Constitution, Art. Xll, Sec. 12
Section 12. The State shall promote the preferential
use of Filipino labor, domestic materials and locally
produced goods, and adopt measures that help make
them competitive.
F. Conditions of Work
Reference: Arts. 82-90; Omnbus Rues, Book III,
Rues , A,
Title
WORKNG CONDTONS
AND REST PERODS

Chapter
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.
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.
ART. 84. Hours worked. - Hours worked shall include
(a) all time during which an employee is required to
be on duty or to be at a prescribed workplace; and (b)
all time during which an employee is suffered or
permitted to work.
Rest periods of short duration during working hours
shall be counted as hours worked.
ART. 85. Meal periods. - Subject to such regulations
as the Secretary of Labor may prescribe, it shall be
the duty of every employer to give his employees not
less than sixty (60) minutes time-off for their regular
meals.
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.
ART. 87. Overtime work. - Work may be performed
beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an additional
compensation equivalent to his regular wage plus at
least twenty-five percent (25%) thereof. Work
performed beyond eight hours on a holiday or rest
day shall be paid an additional compensation
equivalent to the rate of the first eight hours on a
holiday or rest day plus at least thirty percent (30%)
thereof.
ART. 88. Undertime not offset by overtime. -
Undertime work on any particular day shall not be
offset by overtime work on any other day. Permission
given to the employee to go on leave on some other
day of the week shall not exempt the employer from
paying the additional compensation required in this
Chapter.
ART. 89. Emergency overtime work. - Any employee
may be required by the employer to perform overtime
work in any of the following cases:chan robles virtual
law library
(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
Duman / Labor I / Prof. Battad / Page 64
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.
BOOK THREE
Conditions of Employment
RULE
Hours of Work
SECTON 1. General statement on coverage. The
provisions of this Rule shall apply to all employees in
all establishments and undertakings, whether
operated for profit or not, except to those specifically
exempted under Section 2 hereof.
SECTON 2. Exemption. The provisions of this
Rule shall not apply to the following persons if they
qualify for exemption under the conditions set forth
herein:
(a) Government employees whether employed by the
National Government or any of its political
subdivision, including those employed in government-
owned and/or controlled corporations;
(b) Managerial employees, if they meet all of the
following conditions:
(1) Their primary duty consists of the management of
the establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of
two or more employees therein.
(3) They have the authority to hire or fire employees
of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the
promotion or any other change of status of other
employees, are given particular weight.
(c) Officers or members of a managerial staff if they
perform the following duties and responsibilities:
(1) The primary duty consists of the performance of
work directly related to management policies of their
employer;
(2) Customarily and regularly exercise discretion and
independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or
technical lines requiring special training, experience,
or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
(4) Who do not devote more than 20 percent of their
hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3)
above.
(d) Domestic servants and persons in the personal
service of another if they perform such services in the
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household.
(e) Workers who are paid by results, including those
who are paid on piece-work, "takay," "pakiao" or task
basis, and other non-time work if their output rates are
in accordance with the standards prescribed under
Section 8, Rule V, Book Three of these regulations,
or where such rates have been fixed by the Secretary
of Labor and Employment in accordance with the
aforesaid Section.
(f) Non-agricultural field personnel if they regularly
perform their duties away from the principal or branch
office or place of business of the employer and whose
actual hours of work in the field cannot be determined
with reasonable certainty.
SECTON 3. Hours worked. The following shall be
considered as compensable hours worked:
(a) All time during which an employee is required to
be on duty or to be at the employer's premises or to
be at a prescribed work place; and
(b) All time during which an employee is suffered or
permitted to work.
SECTON 4. Principles in determining hours worked.
The following general principles shall govern in
determining whether the time spent by an employee is
considered hours worked for purposes of this Rule:
(a) All hours are hours worked which the employee is
required to give his employer, regardless of whether
or not such hours are spent in productive labor or
involve physical or mental exertion.
(b) An employee need not leave the premises of the
work place in order that his rest period shall not be
counted, it being enough that he stops working, may
rest completely and may leave his work place, to go
elsewhere, whether within or outside the premises of
his work place.
Duman / Labor I / Prof. Battad / Page 65
(c) f 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 was with the knowledge of his employer or
immediate supervisor.
(d) The time during which an employee is inactive by
reason of interruptions in his work beyond his control
shall be considered working time either if the
imminence of the resumption of work requires the
employee's presence at the place of work or if the
interval is too brief to be utilized effectively and
gainfully in the employee's own interest.
SECTON 5. Waiting time. (a) Waiting time spent
by an employee shall be considered as working time if
waiting is an integral part of his work or the employee
is required or engaged by the employer to wait.
(b) An employee who is required to remain on call in
the employer's premises or so close thereto that he
cannot use the time effectively and gainfully for his
own purpose shall be considered as working while on
call. An employee who is not required to leave word at
his home or with company officials where he may be
reached is not working while on call.
SECTON 6. Lectures, meetings, training programs.
Attendance at lectures, meetings, training
programs, and other similar activities shall not be
counted as working time if all of the following
conditions are met:
(a) Attendance is outside of the employee's regular
working hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive
work during such attendance.
SECTON 7. Meal and Rest Periods. Every
employer shall give his employees, regardless of sex,
not less than one (1) hour time-off for regular meals,
except in the following cases when a meal period of
not less than twenty (20) minutes may be given by the
employer provided that such shorter meal period is
credited as compensable hours worked of the
employee:
(a) Where the work is non-manual work in nature or
does not involve strenuous physical exertion;
(b) Where the establishment regularly operates not
less than sixteen (16) hours a day;
(c) n case of actual or impending emergencies or
there is urgent work to be performed on machineries,
equipment or installations to avoid serious loss which
the employer would otherwise suffer; and
(d) Where the work is necessary to prevent serious
loss of perishable goods.
Rest periods or coffee breaks running from five (5) to
twenty (20) minutes shall be considered as
compensable working time.
SECTON 8. Overtime pay. Any employee covered
by this Rule who is permitted or required to work
beyond eight (8) hours on ordinary working days shall
be paid an additional compensation for the overtime
work in the amount equivalent to his regular wage
plus at least twenty-five percent (25%) thereof.
SECTON 9. Premium and overtime pay for holiday
and rest day work. (a) Except employees referred
to under Section 2 of this Rule, an employee who is
permitted or suffered to work on special holidays or
on his designated rest days not falling on regular
holidays, shall be paid with an additional
compensation as premium pay of not less than thirty
percent (30%) of his regular wage. For work
performed in excess of eight (8) hours on special
holidays and rest days not falling on regular holidays,
an employee shall be paid an additional
compensation for the overtime work equivalent to his
rate for the first eight hours on a special holiday or
rest day plus at least thirty percent (30%) thereof.
(b) Employees of public utility enterprises as well as
those employed in non-profit institutions and
organizations shall be entitled to the premium and
overtime pay provided herein, unless they are
specifically excluded from the coverage of this Rule
as provided in Section 2 hereof.
(c) The payment of additional compensation for work
performed on regular holidays shall be governed by
Rule V, Book Three, of these Rules.
SECTON 10. Compulsory overtime work. n any of
the following cases, an employer may require any of
his employees to work beyond eight (8) hours a day,
provided that the employee required to render
overtime work is paid the additional compensation
required by these regulations:
(a) When the country is at war or when any other
national or local emergency has been declared by
Congress or the Chief Executive;
(b) When overtime work is necessary to prevent loss
of life or property, or in case of imminent danger to
public safety due to actual or impending emergency in
the locality caused by serious accident, fire, floods,
typhoons, earthquake, epidemic or other disaster or
calamities;
(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 causes of similar nature;
(d) When the work is necessary to prevent loss or
damage to perishable goods;
(e) When the completion or continuation of work
started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or
operations of the employer; or
Duman / Labor I / Prof. Battad / Page 66
(f) When overtime work is necessary to avail of
favorable weather or environmental conditions where
performance or quality of work is dependent thereon.
n cases not falling within any of these enumerated in
this Section, no employee may be made to work
beyond eight hours a day against his will.
RULE -A
Hours of Work of Hospital and Clinic Personnel
SECTON 1. General statement on coverage. This
Rule shall apply to:
(a) All hospitals and clinics, including those with a bed
capacity of less than one hundred (100) which are
situated in cities or municipalities with a population of
one million or more; and
(b) All hospitals and clinics with a bed capacity of at
least one hundred (100), irrespective of the size of the
population of the city or municipality where they may
be situated.
SECTON 2. Hospitals or clinics within the meaning of
this Rule. The terms "hospitals" and "clinics" as
used in this Rule shall mean a place devoted primarily
to the maintenance and operation of facilities for the
diagnosis, treatment and care of individuals suffering
from illness, disease, injury, or deformity, or in need of
obstetrical or other medical and nursing care. Either
term shall also be construed as any institution,
building, or place where there are installed beds, or
cribs, or bassinets for twenty-four (24) hours use or
longer by patients in the treatment of disease, injuries,
deformities, or abnormal physical and mental states,
maternity cases or sanitorial care; or infirmaries,
nurseries, dispensaries, and such other similar names
by which they may be designated.
SECTON 3. Determination of bed capacity and
population. (a) For purposes of determining the
applicability of this Rule, the actual bed capacity of
the hospital or clinic at the time of such determination
shall be considered, regardless of the actual or bed
occupancy. The bed capacity of hospital or clinic as
determined by the Bureau of Medical Services
pursuant to Republic Act No. 4226, otherwise known
as the Hospital Licensure Act, shall prima facie be
considered as the actual bed capacity of such hospital
or clinic.
(b) The size of the population of the city or
municipality shall be determined from the latest official
census issued by the Bureau of the Census and
Statistics.
SECTON 4. Personnel covered by this Rule. This
Rule applies to all persons employed by any private
or public hospital or clinic mentioned in Section 1
hereof, and shall include, but not limited to, resident
physicians, nurses, nutritionists, dieticians,
pharmacists, social workers, laboratory technicians
paramedical technicians, psychologists, midwives,
and attendants.
SECTON 5. Regular working hours. The regular
working hours of any person covered by this Rule
shall not be more than eight (8) hours in any one day
nor more than forty (40) hours in any one week.
For purposes of this Rule a "day" shall mean a work
day of twenty-four (24) consecutive hours beginning
at the same time each calendar year. A "week" shall
mean the work of 168 consecutive hours, or seven
consecutive 24-hour work days, beginning at the
same hour and on the same calendar day each
calendar week.
SECTON 6. Regular working days. The regular
working days of covered employees shall not be more
than five days in a work week. The work week may
begin at any hour and on any day, including Saturday
or Sunday, designated by the employer.
Employers are not precluded from changing the time
at which the work day or work week begins, provided
that the change is not intended to evade the
requirements of this Rule.
SECTON 7. Overtime work. Where the exigencies
of the service so require as determined by the
employer, any employee covered by this Rule may be
scheduled to work for more than five (5) days or forty
(40) hours a week, provided that the employee is paid
for the overtime work an additional compensation
equivalent to his regular wage plus at least thirty
percent (30%) thereof, subject to the provisions of this
Book on the payment of additional compensation for
work performed on special and regular holidays and
on rest days.
SECTON 8. Hours worked. n determining the
compensable hours of work of hospital and clinic
personnel covered by this Rule, the pertinent
provisions of Rule 1 of this Book shall apply.
SECTON 9. Additional compensation. Hospital
and clinic personnel covered by this Rule, with the
exception of those employed by the Government,
shall be entitled to an additional compensation for
work performed on regular and special holidays and
rest days as provided in this Book. Such employees
shall also be entitled to overtime pay for services
rendered in excess of forty hours a week, or in excess
of eight hours a day, whichever will yield the higher
additional compensation to the employee in the work
week.
SECTON 10. Relation to Rule . All provisions of
Rule of this Book which are not inconsistent with this
Rule shall be deemed applicable to hospital and clinic
personnel.
RULE
Night Shift Differential
SECTON 1. Coverage. This Rule shall apply to all
employees except:
(a) Those of the government and any of its political
subdivisions, including government-owned and/or
controlled corporations;
(b) Those of retail and service establishments
regularly employing not more than five (5) workers;
Duman / Labor I / Prof. Battad / Page 67
(c) Domestic helpers and persons in the personal
service of another;
(d) Managerial employees as defined in Book Three
of this Code;
(e) Field personnel and other employees whose time
and performance is unsupervised by the employer
including those who are engaged on task or contract
basis, purely commission basis, or those who are paid
a fixed amount for performing work irrespective of the
time consumed in the performance thereof.
SECTON 2. Night shift differential. An employee
shall be paid night shift differential of no less than ten
per cent (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.
SECTON 3. Additional compensation. Where an
employee is permitted or suffered to work on the
period covered after his work schedule, he shall be
entitled to his regular wage plus at least twenty-five
per cent (25%) and an additional amount of no less
than ten per cent (10%) of such overtime rate for each
hour or work performed between 10 p.m. to 6 a.m.
SECTON 4. Additional compensation on scheduled
rest day/special holiday. An employee who is
required or permitted to work on the period covered
during rest days and/or special holidays not falling on
regular holidays, shall be paid a compensation
equivalent to his regular wage plus at least thirty
(30%) per cent and an additional amount of not less
than ten (10%) per cent of such premium pay rate for
each hour of work performed.
SECTON 5. Additional compensation on regular
holidays. For work on the period covered during
regular holidays, an employee shall be entitled to his
regular wage during these days plus an additional
compensation of no less than ten (10%) per cent of
such premium rate for each hour of work performed.
SECTON 6. Relation to agreements. Nothing in
this Rule shall justify an employer in withdrawing or
reducing any benefits, supplements or payments as
provided in existing individual or collective
agreements or employer practice or policy.
1. Hours of Work
a. Reguaton; Ratonae
Mana Termna Co. Inc. v. CIR, 91 Ph. 625 (1952)
b. Coverage/Exemptons, Art. 82, 276; Rue , Sec.s 1-4
(See Above)
1) Government Empoyees, Const., Art. IX-B,
Sec. 2(1)
ARTCLE X B. THE CVL SERVCE
COMMSSON
Section 2. (1) The civil service embraces all
branches, subdivisions, instrumentalities, and
agencies of the Government, including government-
owned or controlled corporations with original
charters.
2) Managera Empoyees, Art. 82; Rue I, Sec.
2 (b)
(c)
(b) Managerial employees, if they meet all of the
following conditions:
(1) Their primary duty consists of the management of
the establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of
two or more employees therein.
(3) They have the authority to hire or fire employees
of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the
promotion or any other change of status of other
employees, are given particular weight.
(c) Officers or members of a managerial staff if they
perform the following duties and responsibilities:
(1) The primary duty consists of the performance of
work directly related to management policies of their
employer;
(2) Customarily and regularly exercise discretion and
independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or
technical lines requiring special training, experience,
Duman / Labor I / Prof. Battad / Page 68
or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
(4) Who do not devote more than 20 percent of their
hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3)
above.
Asa Pacfc Chrstenng, Inc. v. Faroan, 393 SCRA 454
(2004)
Charto Peranda v. Baganga Pywood Corp., et a.,
G.R. 159577, May 3, 2006
3) Fed Personne, Art. 82; Rue I, Sec. 2 (f)
Merdcar Fshng Corp v. NLRC, 297 SCRA 440 (1998)
Auto Bus Transport Systems, Inc. v. Bautsta, 458
SCRA 578 (2005)
Duman / Labor I / Prof. Battad / Page 69
4) Dependent Famy Members
5) Domestc Hepers, Art. 141, 145; Rue I, Sec. 2 (d)
Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 141. Coverage. - Ths Chapter sha appy to a
persons renderng servces n househods for
compensaton.
"Domestic or household service" sha mean servce
n the empoyers home whch s usuay necessary or
desrabe for the mantenance and en|oyment thereof
and ncudes mnsterng to the persona comfort and
convenence of the members of the empoyers
househod, ncudng servces of famy drvers.
ART. 145. Assignment to non-household work. - No
househeper sha be assgned to work n a
commerca, ndustra or agrcutura enterprse at a
wage or saary rate ower than that provded for
agrcutura or non-agrcutura workers as prescrbed
heren.
(d) Domestic servants and persons in the personal
service of another if they perform such services in the
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household.
6) Persons n the Persona Servce of Another, Rue I,
Sec. 2 (d)
(d) Domestic servants and persons in the personal
service of another if they perform such services in the
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household.
7) Pece Workers, Rue I, Sec. 2 (e)
(e) Workers who are paid by results, including those
who are paid on piece-work, "takay," "pakiao" or task
basis, and other non-time work if their output rates are
in accordance with the standards prescribed under
Section 8, Rule V, Book Three of these regulations,
or where such rates have been fixed by the Secretary
of Labor and Employment in accordance with the
aforesaid Section.
Labor Congress v. NLRC, 290 SCRA 509 (1998)
c. Norma Hours of Work, Art. 83
ART. 83. Normal hours of work. - The norma hours of
work of any empoyee sha not exceed eght (8)
hours a day.
Heath personne n ctes and muncpates wth a
popuaton of at east one mon (1,000,000) or n
hosptas and cncs wth a bed capacty of at east
one hundred (100) sha hod reguar offce hours for
eght (8) hours a day, for fve (5) days a week,
excusve of tme for meas, except where the
exgences of the servce requre that such personne
work for sx (6) days or forty-eght (48) hours, n
whch case, they sha be entted to an addtona
compensaton of at east thrty percent (30%) of ther
reguar wage for work on the sxth day. For purposes
of ths Artce, "health personnel" sha ncude
resdent physcans, nurses, nutrtonsts, dettans,
pharmacsts, soca workers, aboratory techncans,
paramedca techncans, psychoogsts, mdwves,
attendants and a other hospta or cnc personne.
d. Compensabe Hours of Work - In genera
1) On Duty, Art. 84 (a); Rue I, Sec. 3 (a), Sec. 4
(a)
ART. 84. Hours worked. - Hours worked sha ncude
(a) a tme durng whch an empoyee s requred to
be on duty or to be at a prescrbed workpace; and
(b) a tme durng whch an empoyee s suffered or
permtted to work.
Rest perods of short duraton durng workng hours
sha be counted as hours worked.
SECTON 3. Hours worked. The following shall be
considered as compensable hours worked:
(a) All time during which an employee is required to
be on duty or to be at the employer's premises or to
be at a prescribed work place; and
SECTON 4. Principles in determining hours worked.
The following general principles shall govern in
determining whether the time spent by an employee is
considered hours worked for purposes of this Rule:
(a) All hours are hours worked which the employee is
required to give his employer, regardless of whether
or not such hours are spent in productive labor or
involve physical or mental exertion.
Duman / Labor I / Prof. Battad / Page 70
3) At Work, Art. 84 (b); Rue I, Sec. 3 (b)
ART. 84. Hours worked. - Hours worked sha ncude
(a) a tme durng whch an empoyee s requred to
be on duty or to be at a prescrbed workpace; and
(b) a tme durng whch an empoyee s suffered or
permtted to work.
Sec. 3(b) All time during which an employee is
suffered or permitted to work.
e. Specfc Rues
1) Rest Perod
a) Short Duraton or "Coffee Break", Art. 84, 2
nd
par.;
Book III, Rue I, Sec. 7, 2
nd
par.
Rest perods of short duraton durng workng hours
sha be counted as hours worked.
SECTION 7. Mea and Rest Perods. - Every empoyer
sha gve hs empoyees, regardess of sex, not ess
than one (1) hour tme-off for reguar meas, except
n the foowng cases when a mea perod of not ess
than twenty (20) mnutes may be gven by the
empoyer provded that such shorter mea perod s
credted as compensabe hours worked of the
empoyee:
Rest perods or coffee breaks runnng from fve (5) to
twenty (20) mnutes sha be consdered as
compensabe workng tme.
b) More than 20 mn., Rues I, Sec. 4 (b)
SECTION 4. Prncpes n determnng hours
worked. - The foowng genera prncpes sha
govern n determnng whether the tme spent by an
empoyee s consdered hours worked for purposes of
ths Rue:
(b) An empoyee need not eave the premses of
the work pace n order that hs rest perod sha not
be counted, t beng enough that he stops workng,
may rest competey and may eave hs work pace,
to go esewhere, whether wthn or outsde the
premses of hs work pace.
2) Mea Perod
a) Reguar Mea Perod (One Hour), Art. 85; Rue I, Sec. 7,
1
st
par.
ART. 85. Meal periods. - Sub|ect to such reguatons
as the Secretary of Labor may prescrbe, t sha be
the duty of every empoyer to gve hs empoyees not
ess than sxty (60) mnutes tme-off for ther reguar
meas.
SECTION 7. Mea and Rest Perods. - Every empoyer
sha gve hs empoyees, regardess of sex, not ess
than one (1) hour tme-off for reguar meas, except
n the foowng cases when a mea perod of not ess
than twenty (20) mnutes may be gven by the
empoyer provded that such shorter mea perod s
credted as compensabe hours worked of the
empoyee:
Phppne Arnes, Inc. v. NLRC, 302 SCRA 582 (1999)
b) Shorter Mea Perod (Less than One Hour, but Not
Less than 20 mn.), Rue I, Sec. 7, 1
st
par.
(See Above)
4) Watng Tme, Rue I, Sec. 5 (a)
SECTION 5. Watng tme. - (a) Watng tme spent by
an empoyee sha be consdered as workng tme f
watng s an ntegra part of hs work or the
empoyee s requred or engaged by the empoyer to
wat.
Arca v. NLRC, 170 SCRA 776 (1989)
4) On Ca, Rue I, Sec. 5 (b)
b) An empoyee who s requred to reman on ca n
the empoyer's premses or so cose thereto that he
cannot use the tme effectvey and ganfuy for hs
own purpose sha be consdered as workng whe on
ca. An empoyee who s not requred to eave word
at hs home or wth company offcas where he may
be reached s not workng whe on ca.
5) Inactve due to Work Interruptons, Book III, Rue
I, Sec. 4 (d)
SECTION 4. Prncpes n determnng hours worked.
- The foowng genera prncpes sha govern n
Duman / Labor I / Prof. Battad / Page 71
determnng whether the tme spent by an empoyee
s consdered hours worked for purposes of ths Rue:
(d) The tme durng whch an empoyee s nactve by
reason of nterruptons n hs work beyond hs contro
sha be consdered workng tme ether f the
mmnence of the resumpton of work requres the
empoyee's presence at the pace of work or f the
nterva s too bref to be utzed effectvey and
ganfuy n the empoyee's own nterest.
Unversty of Pangasnan Facuty Unon v. Unversty
of Pangasnan, 127 SCRA 691 (1984)
6) Work after Norma Hours, Rue I, Sec. 4 (c)
(c) If the work performed was necessary, or t
benefted the empoyer, or the empoyee coud not
abandon hs work at the end of hs norma workng
hours because he had no repacement, a tme spent
for such work sha be consdered as hours worked, f
the work was wth the knowedge of hs empoyer or
mmedate supervsor.
7) Lectures, Meetngs, Tranng Programs, Rue I, Sec.
6
SECTION 6. Lectures, meetngs, tranng programs. -
Attendance at ectures, meetngs, tranng programs,
and other smar actvtes sha not be counted as
workng tme f a of the foowng condtons are
met:
(a) Attendance s outsde of the empoyee's reguar
workng hours;
(b) Attendance s n fact vountary; and
(c) The empoyee does not perform any productve
work durng such attendance.
8) Trave Tme
Rada v. NLRC, 205 SCRA 69 (1992)
f. Overtme Work Pay, Arts. 87-90; Rue I, Secs. 8-11
ART. 87. Overtime work. - Work may be performed
beyond eght (8) hours a day provded that the
empoyee s pad for the overtme work, an
addtona compensaton equvaent to hs reguar
wage pus at east twenty-fve percent (25%)
thereof. Work performed beyond eght hours on a
hoday or rest day sha be pad an addtona
compensaton equvaent to the rate of the frst
eght hours on a hoday or rest day pus at east
thrty percent (30%) thereof.
ART. 88. Undertime not offset by overtime. -
Undertme work on any partcuar day sha not be
offset by overtme work on any other day.
Permsson gven to the empoyee to go on eave
on some other day of the week sha not exempt
the empoyer from payng the addtona
compensaton requred n ths Chapter.
ART. 89. Emergency overtime work. - Any
empoyee may be requred by the empoyer to
perform overtme work n any of the foowng
cases:chan robes vrtua aw brary
(a) When the country s at war or when any other
natona or oca emergency has been decared by
the Natona Assemby or the Chef Executve;
(b) When t s necessary to prevent oss of fe or
property or n case of mmnent danger to pubc
safety due to an actua or mpendng emergency n
the ocaty caused by serous accdents, fre, food,
typhoon, earthquake, epdemc, or other dsaster
or caamty;
(c) When there s urgent work to be performed on
machnes, nstaatons, or equpment, n order to
avod serous oss or damage to the empoyer or
some other cause of smar nature;
(d) When the work s necessary to prevent oss or
damage to pershabe goods; and
(e) Where the competon or contnuaton of the
work started before the eghth hour s necessary to
prevent serous obstructon or pre|udce to the
busness or operatons of the empoyer.
Any empoyee requred to render overtme work
under ths Artce sha be pad the addtona
compensaton requred n ths Chapter.
ART. 90. Computation of additional compensation. -
For purposes of computng overtme and other
addtona remuneraton as requred by ths
Chapter, the "regular wage" of an empoyee sha
ncude the cash wage ony, wthout deducton on
account of factes provded by the empoyer.
RULE I
SECTION 8. Overtme pay. - Any empoyee covered
by ths Rue who s permtted or requred to work
beyond eght (8) hours on ordnary workng days
sha be pad an addtona compensaton for the
overtme work n the amount equvaent to hs
Duman / Labor I / Prof. Battad / Page 72
reguar wage pus at east twenty-fve percent (25%)
thereof.
SECTION 9. Premum and overtme pay for hoday
and rest day work. - (a) Except empoyees referred
to under Secton 2 of ths Rue, an empoyee who s
permtted or suffered to work on speca hodays or
on hs desgnated rest days not fang on reguar
hodays, sha be pad wth an addtona
compensaton as premum pay of not ess than thrty
percent (30%) of hs reguar wage. For work
performed n excess of eght (8) hours on speca
hodays and rest days not fang on reguar hodays,
an empoyee sha be pad an addtona
compensaton for the overtme work equvaent to hs
rate for the frst eght hours on a speca hoday or
rest day pus at east thrty percent (30%) thereof.
(b) Empoyees of pubc utty enterprses as we as
those empoyed n non-proft nsttutons and
organzatons sha be entted to the premum and
overtme pay provded heren, uness they are
specfcay excuded from the coverage of ths Rue
as provded n Secton 2 hereof.
(c) The payment of addtona compensaton for work
performed on reguar hodays sha be governed by
Rue IV, Book Three, of these Rues.
SECTION 10. Compusory overtme work. - In any of
the foowng cases, an empoyer may requre any of
hs empoyees to work beyond eght (8) hours a day,
provded that the empoyee requred to render
overtme work s pad the addtona compensaton
requred by these reguatons:
(a) When the country s at war or when any other
natona or oca emergency has been decared by
Congress or the Chef Executve;
(b) When overtme work s necessary to prevent oss
of fe or property, or n case of mmnent danger to
pubc safety due to actua or mpendng emergency
n the ocaty caused by serous accdent, fre, foods,
typhoons, earthquake, epdemc or other dsaster or
caamtes;
(c) When there s urgent work to be performed on
machnes, nstaatons, or equpment, n order to
avod serous oss or damage to the empoyer or
some other causes of smar nature;
(d) When the work s necessary to prevent oss or
damage to pershabe goods;
(e) When the competon or contnuaton of work
started before the 8th hour s necessary to prevent
serous obstructon or pre|udce to the busness or
operatons of the empoyer; or
(f) When overtme work s necessary to ava of
favorabe weather or envronmenta condtons where
performance or quaty of work s dependent thereon.
In cases not fang wthn any of these enumerated n
ths Secton, no empoyee may be made to work
beyond eght hours a day aganst hs w.
1) Overtme n Ordnary Workng Day, Art. 87;
Rue I, Sec. 8
2) Emergency or Compusory Overtme Work,
Art. 89
3) Undertme Work/Leave, Art. 88
4) Addtona Compensaton, Art. 87
5) No Computaton Formua Basc Contract
Mana Termna Co., Inc. v. CIR, supra
6) Proof of Work/Empoyer Obgaton
Soca Securty System v. Court of Appeas, 348 SCRA
1 (2000)
g. Nghtwork, Art. 86; Rue II, Secs. 1-6
ART. 86. Night shift differential. - Every empoyee
sha be pad a nght shft dfferenta of not ess than
ten percent (10%) of hs reguar wage for each hour
of work performed between ten ocock n the
evenng and sx ocock n the mornng.
SECTION 1. Genera statement on coverage. - Ths
Rue sha appy to a empoyers whether operatng
for proft or not, ncudng pubc uttes operated by
prvate persons.
Duman / Labor I / Prof. Battad / Page 73
SECTION 2. Busness on Sundays/Hodays. - A
estabshments and enterprses may operate or open
for busness on Sundays and hodays provded that
the empoyees are gven the weeky rest day and the
benefts as provded n ths Rue.
SECTION 3. Weeky rest day. - Every empoyer sha
gve hs empoyees a rest perod of not ess than
twenty-four (24) consecutve hours after every sx
consecutve norma work days.
SECTION 4. Preference of empoyee. - The
preference of the empoyee as to hs weeky day of
rest sha be respected by the empoyer f the same
s based on regous grounds. The empoyee sha
make known hs preference to the empoyer n
wrtng at east seven (7) days before the desred
effectvty of the nta rest day so preferred.
Where, however, the choce of the empoyee as to
hs rest day based on regous grounds w nevtaby
resut n serous pre|udce or obstructon to the
operatons of the undertakng and the empoyer
cannot normay be expected to resort to other
remeda measures, the empoyer may so schedue
the weeky rest day of hs choce for at east two (2)
days n a month.
SECTION 5. Schedue of rest day. - (a) Where the
weeky rest s gven to a empoyees smutaneousy,
the empoyer sha make known such rest perod by
means of a wrtten notce posted conspcuousy n
the work pace at east one week before t becomes
effectve.
(b) Where the rest perod s not granted to a
empoyees smutaneousy and coectvey, the
empoyer sha make known to the empoyees ther
respectve schedues of weeky rest through wrtten
notces posted conspcuousy n the work pace at
east one week before they become effectve.
SECTION 6. When work on rest day authorzed. - An
empoyer may requre any of hs empoyees to work
on hs schedued rest day for the duraton of the
foowng emergences and exceptona condtons:
(a) In case of actua or mpendng emergences
caused by serous accdent, fre, food, typhoon,
earthquake, epdemc or other dsaster or caamty,
to prevent oss of fe or property, or n cases of force
ma|eure or mmnent danger to pubc safety;
(b) In case of urgent work to be performed on
machneres, equpment or nstaatons to avod
serous oss whch the empoyer woud otherwse
suffer;
(c) In the event of abnorma pressure of work due to
speca crcumstances, where the empoyer cannot
ordnary be expected to resort to other measures;
(d) To prevent serous oss of pershabe goods;
(e) Where the nature of the work s such that the
empoyees have to work contnuousy for seven (7)
days n a week or more, as n the case of the crew
members of a vesse to compete a voyage and n
other smar cases; and
(f) When the work s necessary to ava of favorabe
weather or envronmenta condtons where
performance or quaty of work s dependent thereon.
No empoyee sha be requred aganst hs w to
work on hs schedued rest day except under
crcumstances provded n ths Secton: Provded,
However, that where an empoyee vounteers to work
on hs rest day under other crcumstances, he sha
express such desre n wrtng, sub|ect to the
provsons of Secton 7 hereof regardng addtona
compensaton.
1) Coverage/Excuson, Rue II, Sec. 1
2) Addtona Compensaton, Art. 86
She O Co. of the Phppnes, Ltd. v. Natona Labor
Unon, 81 Ph. 315 (1948)
2. Weeky rest Perods
Reference: Arts. 91-93; Omnbus Rues,
Book III, Rue III, Secs. 1-9
Chapter II
WEEKLY REST PERIODS
ART. 91. Right to weekly rest day. - (a) It sha be the
duty of every empoyer, whether operatng for proft
or not, to provde each of hs empoyees a rest perod
of not ess than twenty-four (24) consecutve hours
after every sx (6) consecutve norma work days.
(b) The empoyer sha determne and schedue the
weeky rest day of hs empoyees sub|ect to
coectve barganng agreement and to such rues
and reguatons as the Secretary of Labor and
Empoyment may provde. However, the empoyer
sha respect the preference of empoyees as to ther
weeky rest day when such preference s based on
regous grounds.
ART. 92. When employer may require work on a rest
day. - The empoyer may requre hs empoyees to
work on any day:
(a) In case of actua or mpendng emergences
caused by serous accdent, fre, food, typhoon,
earthquake, epdemc or other dsaster or caamty to
prevent oss of fe and property, or mmnent danger
to pubc safety;
(b) In cases of urgent work to be performed on the
machnery, equpment, or nstaaton, to avod
serous oss whch the empoyer woud otherwse
suffer;
(c) In the event of abnorma pressure of work due to
speca crcumstances, where the empoyer cannot
ordnary be expected to resort to other measures;
(d) To prevent oss or damage to pershabe goods;
Duman / Labor I / Prof. Battad / Page 74
(e) Where the nature of the work requres contnuous
operatons and the stoppage of work may resut n
rreparabe n|ury or oss to the empoyer; and
(f) Under other crcumstances anaogous or smar to
the foregong as determned by the Secretary of
Labor and Empoyment.
ART. 93. Compensation for rest day, 5unday or
holiday work. - (a) Where an empoyee s made or
permtted to work on hs schedued rest day, he sha
be pad an addtona compensaton of at east thrty
percent (30%) of hs reguar wage. An empoyee sha
be entted to such addtona compensaton for work
performed on Sunday ony when t s hs estabshed
rest day.chan robes vrtua aw brary
(b) When the nature of the work of the empoyee s
such that he has no reguar workdays and no reguar
rest days can be schedued, he sha be pad an
addtona compensaton of at east thrty percent
(30%) of hs reguar wage for work performed on
Sundays and hodays.
(c) Work performed on any speca hoday sha be
pad an addtona compensaton of at east thrty
percent (30%) of the reguar wage of the empoyee.
Where such hoday work fas on the empoyees
schedued rest day, he sha be entted to an
addtona compensaton of at east ffty per cent
(50%) of hs reguar wage.
(d) Where the coectve barganng agreement or
other appcabe empoyment contract stpuates the
payment of a hgher premum pay than that
prescrbed under ths Artce, the empoyer sha pay
such hgher rate.
Weeky Rest Perods
SECTION 1. Genera statement on coverage. - Ths
Rue sha appy to a empoyers whether operatng
for proft or not, ncudng pubc uttes operated by
prvate persons.
SECTION 2. Busness on Sundays/Hodays. - A
estabshments and enterprses may operate or open
for busness on Sundays and hodays provded that
the empoyees are gven the weeky rest day and the
benefts as provded n ths Rue.
SECTION 3. Weeky rest day. - Every empoyer sha
gve hs empoyees a rest perod of not ess than
twenty-four (24) consecutve hours after every sx
consecutve norma work days.
SECTION 4. Preference of empoyee. - The
preference of the empoyee as to hs weeky day of
rest sha be respected by the empoyer f the same
s based on regous grounds. The empoyee sha
make known hs preference to the empoyer n
wrtng at east seven (7) days before the desred
effectvty of the nta rest day so preferred.
Where, however, the choce of the empoyee as to
hs rest day based on regous grounds w nevtaby
resut n serous pre|udce or obstructon to the
operatons of the undertakng and the empoyer
cannot normay be expected to resort to other
remeda measures, the empoyer may so schedue
the weeky rest day of hs choce for at east two (2)
days n a month.
SECTION 5. Schedue of rest day. - (a) Where the
weeky rest s gven to a empoyees smutaneousy,
the empoyer sha make known such rest perod by
means of a wrtten notce posted conspcuousy n
the work pace at east one week before t becomes
effectve.
(b) Where the rest perod s not granted to a
empoyees smutaneousy and coectvey, the
empoyer sha make known to the empoyees ther
respectve schedues of weeky rest through wrtten
notces posted conspcuousy n the work pace at
east one week before they become effectve.
SECTION 6. When work on rest day authorzed. - An
empoyer may requre any of hs empoyees to work
on hs schedued rest day for the duraton of the
foowng emergences and exceptona condtons:
(a) In case of actua or mpendng emergences
caused by serous accdent, fre, food, typhoon,
earthquake, epdemc or other dsaster or caamty,
to prevent oss of fe or property, or n cases of force
ma|eure or mmnent danger to pubc safety;
(b) In case of urgent work to be performed on
machneres, equpment or nstaatons to avod
serous oss whch the empoyer woud otherwse
suffer;
(c) In the event of abnorma pressure of work due to
speca crcumstances, where the empoyer cannot
ordnary be expected to resort to other measures;
(d) To prevent serous oss of pershabe goods;
(e) Where the nature of the work s such that the
empoyees have to work contnuousy for seven (7)
days n a week or more, as n the case of the crew
members of a vesse to compete a voyage and n
other smar cases; and
(f) When the work s necessary to ava of favorabe
weather or envronmenta condtons where
performance or quaty of work s dependent thereon.
No empoyee sha be requred aganst hs w to
work on hs schedued rest day except under
crcumstances provded n ths Secton: Provded,
However, that where an empoyee vounteers to work
on hs rest day under other crcumstances, he sha
express such desre n wrtng, sub|ect to the
provsons of Secton 7 hereof regardng addtona
compensaton.
SECTION 7. Compensaton on rest
day/Sunday/hoday. - (a) Except those empoyees
referred to under Secton 2, Rue I, Book Three, an
empoyee who s made or permtted to work on hs
schedued rest day sha be pad wth an addtona
compensaton of at east 30% of hs reguar wage. An
empoyee sha be entted to such addtona
compensaton for work performed on a Sunday ony
when t s hs estabshed rest day.
(b) Where the nature of the work of the empoyee s
such that he has no reguar work days and no reguar
rest days can be schedued, he sha be pad an
addtona compensaton of at east 30% of hs
reguar wage for work performed on Sundays and
hodays.
(c) Work performed on any speca hoday sha be
pad wth an addtona compensaton of at east 30%
Duman / Labor I / Prof. Battad / Page 75
of the reguar wage of the empoyees. Where such
hoday work fas on the empoyee's schedued rest
day, he sha be entted to addtona compensaton
of at east 50% of hs reguar wage.
(d) The payment of addtona compensaton for work
performed on reguar hoday sha be governed by
Rue IV, Book Three, of these reguatons.
(e) Where the coectve barganng agreement or
other appcabe empoyment contract stpuates the
payment of a hgher premum pay than that
prescrbed under ths Secton, the empoyer sha pay
such hgher rate.
SECTION 8. Pad-off days. - Nothng n ths Rue sha
|ustfy an empoyer n reducng the compensaton of
hs empoyees for the unworked Sundays, hodays,
or other rest days whch are consdered pad-off days
or hodays by agreement or practce subsstng upon
the effectvty of the Code.
SECTION 9. Reaton to agreements. - Nothng
heren sha prevent the empoyer and hs empoyees
or ther representatves n enterng nto any
agreement wth terms more favorabe to the
empoyees than those provded heren, or be used to
dmnsh any beneft granted to the empoyees under
exstng aws, agreements, and vountary empoyer
practces.
a. Coverage, Art. 82, 91; Rue III, Sec. 1
ART. 82. Coverage. - The provsons of ths Tte sha
appy to empoyees n a estabshments and
undertakngs whether for proft or not, but not to
government empoyees, managera empoyees, fed
personne, members of the famy of the empoyer
who are dependent on hm for support, domestc
hepers, persons n the persona servce of another,
and workers who are pad by resuts as determned
by the Secretary of Labor n approprate reguatons.
As used heren, "managerial employees" refer to
those whose prmary duty conssts of the
management of the estabshment n whch they are
empoyed or of a department or subdvson thereof,
and to other offcers or members of the managera
staff.
"Field personnel" sha refer to non-agrcutura
empoyees who reguary perform ther dutes away
from the prncpa pace of busness or branch offce
of the empoyer and whose actua hours of work n
the fed cannot be determned wth reasonabe
certanty.
b. Determnaton; compusory Work; Compensaton,
Arts. 91, 92
Mana Eectrc Co. v. Pubc Uttes Empoyees Assn,
79 Ph. 409
c. Premum Pay, Art. 93 9a) (b) (c)
d. CBA on Hgher Premum Pay, Art. 93 (d)
3. Hodays
Reference: art. 94; Executve Order 203 (1987);
Omnbus Rues, Book III, Rue IV
Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES
AND SERVICE CHARGES
ART. 94. Right to holiday pay. - (a) Every worker sha
be pad hs reguar day wage durng reguar
hodays, except n reta and servce estabshments
reguary empoyng ess than ten (10) workers;
(b) The empoyer may requre an empoyee to work
on any hoday but such empoyee sha be pad a
compensaton equvaent to twce hs reguar rate;
and
(c) As used n ths Artce, "holiday" ncudes: New
Years Day, Maundy Thursday, Good Frday, the nnth
of Apr, the frst of May, the twefth of |une, the
fourth of |uy, the thrteth of November, the twenty-
ffth and thrteth of December and the day
desgnated by aw for hodng a genera eecton.
EXECUTIVE ORDER NO. 203 June 30, 1987
PROVIDING A LIST OF REGULAR HOLIDAYS AND
SPECIAL DAYS TO BE OBSERVED THROUGHOUT
THE PHILIPPINES AND FOR OTHER PURPOSES
WHEREAS, a Cabinet Assistance Secretariat
Committee was constituted to review all existing
public holidays;
WHEREAS, there are too many holidays being
observed which has caused confusion among the
public.
NOW, THEREFORE, , CORAZON C. AQUNO,
President of the Philippines, do hereby order:
Duman / Labor I / Prof. Battad / Page 76
Sec. 1. Unless otherwise modified by law, order or
proclamation, the following regular holidays and
special days shall be observed in this country:
A. Regular Holidays
New Year's Day January
Maundy Thursday Movable date
Good Friday Movable date
Araw ng Kagitingan
(Bataan and Corregidor
Day)
April 9
Labor Day May 1
ndependence Day June 12
National Heroes Day Last Sunday of
August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
B. Nationwide Special Days
All Saints Day November 1
Last Day of the Year December 31
Sec. 2. Henceforth, the terms "legal or regular
holiday" and "special holiday", as used in laws,
orders, rules and regulations or other issuances shall
now be referred to as "regular holiday" and "special
day", respectively.
Sec. 3. All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified
accordingly.
Sec. 4. This Executive Order shall take effect
immediately.
Done in the City of Manila, this 30th day of June, in
the year of Our Lord, nineteen hundred and eighty-
seven.
RULE IV
Hodays wth Pay
SECTION 1. Coverage. - Ths rue sha appy to a
empoyees except:
(a) Those of the government and any of the potca
subdvson, ncudng government-owned and
controed corporaton;
(b) Those of reta and servce estabshments
reguary empoyng ess than ten (10) workers;
(c) Domestc hepers and persons n the persona
servce of another;
(d) Managera empoyees as defned n Book Three
of the Code;
(e) Fed personne and other empoyees whose tme
and performance s unsupervsed by the empoyer
ncudng those who are engaged on task or contract
bass, purey commsson bass, or those who are
pad a fxed amount for performng work rrespectve
of the tme consumed n the performance thereof.
SECTION 2. Status of empoyees pad by the month.
- Empoyees who are unformy pad by the month,
rrespectve of the number of workng days theren,
wth a saary of not ess than the statutory or
estabshed mnmum wage sha be pad for a days
n the month whether worked or not.
For ths purpose, the monthy mnmum wage sha
not be ess than the statutory mnmum wage
mutped by 365 days dvded by tweve.
SECTION 3. Hoday Pay. - Every empoyer sha pay
hs empoyees ther reguar day wage for any
worked reguar hodays.
As used n the rue, the term 'reguar hoday' sha
excusvey refer to: New Year's Day, Maundy
Thursday, Good Frday, the nnth of Apr, the frst of
May, the twefth of |une, the ast Sunday of August,
the thrteth of November, the twenty-ffth and
thrteth of December. Natonwde speca days sha
ncude the frst of November and the ast day of
December.
As used n ths Rue ega or reguar hoday and
speca hoday sha now be referred to as 'reguar
hoday' and 'speca day', respectvey.
SECTION 4. Compensaton for hoday work. - Any
empoyee who s permtted or suffered to work on
any reguar hoday, not exceedng eght (8) hours,
sha be pad at east two hundred percent (200%) of
hs reguar day wage. If the hoday work fas on the
schedued rest day of the empoyee, he sha be
entted to an addtona premum pay of at east 30%
of hs reguar hoday rate of 200% based on hs
reguar wage rate.
SECTION 5. Overtme pay for hoday work. - For
work performed n excess of eght hours on a reguar
hoday, an empoyee sha be pad an addtona
compensaton for the overtme work equvaent to hs
rate for the frst eght hours on such hoday work
pus at east 30% thereof.
Where the reguar hoday work exceedng eght
hours fas on the schedued rest day of the
empoyee, he sha be pad an addtona
compensaton for the overtme work equvaent to hs
reguar hoday-rest day for the frst 8 hours pus 30%
thereof. The reguar hoday rest day rate of an
empoyee sha consst of 200% of hs reguar day
wage rate pus 30% thereof.
SECTION 6. Absences. - (a) A covered empoyees
sha be entted to the beneft provded heren when
they are on eave of absence wth pay. Empoyees
who are on eave of absence wthout pay on the day
mmedatey precedng a reguar hoday may not be
pad the requred hoday pay f he has not worked on
such reguar hoday.
(b) Empoyees sha grant the same percentage of
the hoday pay as the beneft granted by competent
authorty n the form of empoyee's compensaton or
soca securty payment, whchever s hgher, f they
are not reportng for work whe on such benefts.
(c) Where the day mmedatey precedng the hoday
s a non-workng day n the estabshment or the
schedued rest day of the empoyee, he sha not be
deemed to be on eave of absence on that day, n
whch case he sha be entted to the hoday pay f
he worked on the day mmedatey precedng the
non-workng day or rest day.
Duman / Labor I / Prof. Battad / Page 77
SECTION 7. Temporary or perodc shutdown and
temporary cessaton of work. - (a) In cases of
temporary or perodc shutdown and temporary
cessaton of work of an estabshment, as when a
yeary nventory or when the repar or ceanng of
machneres and equpment s undertaken, the
reguar hodays fang wthn the perod sha be
compensated n accordance wth ths Rue.
(b) The reguar hoday durng the cessaton of
operaton of an enterprse due to busness reverses
as authorzed by the Secretary of Labor and
Empoyment may not be pad by the empoyer.
SECTION 8. Hoday pay of certan empoyees. - (a)
Prvate schoo teachers, ncudng facuty members of
coeges and unverstes, may not be pad for the
reguar hodays durng semestra vacatons. They
sha, however, be pad for the reguar hodays
durng Chrstmas vacaton;
(b) Where a covered empoyee, s pad by resuts or
output, such as payment on pece work, hs hoday
pay sha not be ess than hs average day earnngs
for the ast seven (7) actua workng days precedng
the reguar hoday; Provded, However, that n no
case sha the hoday pay be ess than the appcabe
statutory mnmum wage rate.
(c) Seasona workers may not be pad the requred
hoday pay durng off-season when they are not at
work.
(d) Workers who have no reguar workng days sha
be entted to the benefts provded n ths Rue.
SECTION 9. Reguar hoday fang on rest days or
Sundays. - (a) A reguar hoday fang on the
empoyee's rest day sha be compensated
accordngy.
(b) Where a reguar hoday fas on a Sunday, the
foowng day sha be consdered a speca hoday
for purposes of the Labor Code, uness sad day s
aso a reguar hoday.
SECTION 10. Successve reguar hodays. - Where
there are two (2) successve reguar hodays, ke
Hoy Thursday and Good Frday, an empoyee may
not be pad for both hodays f he absents hmsef
from work on the day mmedatey precedng the frst
hoday, uness he works on the frst hoday, n whch
case he s entted to hs hoday pay on the second
hoday.
SECTION 11. Reaton to agreements. - Nothng n
ths Rue sha |ustfy an empoyer n wthdrawng or
reducng any benefts, suppements or payments for
unworked hodays as provded n exstng ndvdua
or coectve agreement or empoyer practce or
pocy.
a. Defnton
1) Reta Estabshments, Rue Imp. RA 6727,
par. F
f) "Reta Estabshment" s one prncpay engaged
n the sae of goods to end-users for persona or
househod use;
2) Servce Estabshment, Rue Imp. RA 6727,
par. g
g) "Servce Estabshment" s one prncpay
engaged n the sae of servce to ndvduas for ther
own or househod use and s generay recognzed as
such;
b. Coverage/Excusons, Art. 94 (a)
ART. 94. Right to holiday pay. - (a) Every worker sha
be pad hs reguar day wage durng reguar
hodays, except n reta and servce estabshments
reguary empoyng ess than ten (10) workers;
Mantrade/FMMC Dvson Empoyees and Workers
Unon v. Bacungan, 144 SCRA 510 (1986)
Crneo Bowng Paza, Inc. v. Gerry Sensng, et a.,
448 SCRA 175 (2005)
Duman / Labor I / Prof. Battad / Page 78
c. Hoday Pay, Art. 94 (b)
(b) The empoyer may requre an empoyee to work
on any hoday but such empoyee sha be pad a
compensaton equvaent to twce hs reguar rate;
and
1) Facuty n Prvate Schoo, Rue IV, Sec. 8 (a)
SECTION 8. Hoday pay of certan empoyees. - (a)
Prvate schoo teachers, ncudng facuty members of
coeges and unverstes, may not be pad for the
reguar hodays durng semestra vacatons. They
sha, however, be pad for the reguar hodays
durng Chrstmas vacaton;
6) Dvsor as Factor
Trans-Asa Ph. Empoyees Assocaton v. NLRC, 320
SCRA 347 (1999)
7) Sunday, Art. 93 9a), 2
nd
Sentence; Rue III, Sec. 2
ART. 93. Compensation for rest day, 5unday or
holiday work. - (a) Where an empoyee s made or
permtted to work on hs schedued rest day, he sha
be pad an addtona compensaton of at east thrty
percent (30%) of hs reguar wage. An empoyee sha
be entted to such addtona compensaton for work
performed on Sunday ony when t s hs estabshed
rest day.
SECTION 2. Busness on Sundays/Hodays. - A
estabshments and enterprses may operate or open
for busness on Sundays and hodays provded that
the empoyees are gven the weeky rest day and the
benefts as provded n ths Rue.
Wengton Investment Inc. v. Tra|ano, 245 SCRA
561 (1995)
8) Musm Hoday, Art. 169-172; PD 1083 (Feb. 1977)
BOOK FlVE
MlSCELLANEOUS AND TRANSlTORY
PROVlSlONS
TlTLE l
MUSLlM HOLlDAYS
Article 169. Official Muslim holidays. The foowng
are hereby recognzed as ega Musm hodays:
(a) 'Amun |add (New Year), whch fas on
the frst day of the frst unar month of
Muharram;
(b) Maud-un-Nab (Brthday of the Prophet
Muhammad), whch fas on the twefth day
of the thrd unar month of Rab-u-Awwa;
(c) Laatu Isra Wa M'ra| (Nocturna |ourney
and Ascenson of the Prophet Muhammad),
whch fas on the twenty-seventh day of the
seventh unar month of Ra|ab;
(d) 'Id-u-Ftr (Har Raya Pausa), whch fas
on the frst day of the tenth unar month of
Shawwa, commemoratng the end of the
fastng season; and
(e) 'Id-u-Adha (Har Ra|a Ha|), whch fas on
the tenth day of the twefth unar month of
Dhu 1-H||a.
Article 170. Provinces and cities where officially
observed.
(1) Musm hodays sha be offcay
observed n the Provnces of Basan, Lanao
de Norte, Lanao de Sur, Magundanao,
North Cotabato, Sutan Kudarat, Suu, Taw-
Taw, Zamboanga de Norte and Zamboanga
de Sur, and n the Ctes of Cotabato, Igan,
Maraw, Pagadan, and Zamboanga and n
such other Musm provnces and ctes as
may hereafter be created.
(2) Upon procamaton by the Presdent of
the Phppnes, Musm hodays may aso be
offcay observed n other provnces and
ctes.
Duman / Labor I / Prof. Battad / Page 79
Article 171. Dates of observance. The dates of
Musm hodays sha be determned by the Offce of
the Presdent of the Phppnes n accordance wth
the Musm Lunar Caendar (H|ra).
Article 172. Observance of Muslim employees.
(1) A Musm government offcas and
empoyees n paces other than those
enumerated under Artce 170 sha aso be
excused from reportng to offce n order
that they may be abe to observe Musm
hodays.
(2) The Presdent of the Phppnes may, by
procamaton, requre prvate offces,
agences or estabshments to excuse ther
Musm empoyees from reportng for work
durng a Musm hoday wthout reducton n
ther usua compensaton.
San Mgue Corp. v. Court of Appeas, 375 SCRA 311
(2002)
d. Absences, Rue V, Secs. 6 (a), 10
SECTION 6. Absences. - (a) A covered empoyees
sha be entted to the beneft provded heren when
they are on eave of absence wth pay. Empoyees
who are on eave of absence wthout pay on the day
mmedatey precedng a reguar hoday may not be
pad the requred hoday pay f he has not worked on
such reguar hoday.
SECTION 10. Successve reguar hodays. - Where
there are two (2) successve reguar hodays, ke
Hoy Thursday and Good Frday, an empoyee may
not be pad for both hodays f he absents hmsef
from work on the day mmedatey precedng the frst
hoday, uness he works on the frst hoday, n whch
case he s entted to hs hoday pay on the second
hoday.
e. Non-Workng/Schedue of Rest Day, Rue IV, Sec. 6 (c)
(c) Where the day mmedatey precedng the hoday
s a non-workng day n the estabshment or the
schedued rest day of the empoyee, he sha not be
deemed to be on eave of absence on that day, n
whch case he sha be entted to the hoday pay f
he worked on the day mmedatey precedng the
non-workng day or rest day.
4. Servce Incentve Leave
Reference: Art. 95; Omnbus Rues, Book III, Rue
V
ART. 95. Right to service incentive leave. - (a) Every
empoyee who has rendered at east one year of
servce sha be entted to a yeary servce ncentve
eave of fve days wth pay.
(b) Ths provson sha not appy to those who are
aready en|oyng the beneft heren provded, those
en|oyng vacaton eave wth pay of at east fve days
and those empoyed n estabshments reguary
empoyng ess than ten empoyees or n
estabshments exempted from grantng ths beneft
by the Secretary of Labor and Empoyment after
consderng the vabty or fnanca condton of such
estabshment.
(c) The grant of beneft n excess of that provded
heren sha not be made a sub|ect of arbtraton or
any court or admnstratve acton.
a. Coverage, Art. 95 (a) (b)
Makat Haberdashery Inc. N. NLRC, 179 SCRA 449
(1989)
Labor Congress v. NLRC, supra
b. Computaton and Labty
Sentne Securty Agency, Inc. v. NLRC, 295 SCRA
123 1998)
Duman / Labor I / Prof. Battad / Page 80
Auto Bus Transport Systems, Inc. v. Bautsta,
supra
5. Paternty Leave, Paternty Leave of 1996 (RA 8187),
Secs. 1-6; Imp. Rues
REPUBLIC ACT NO. 8187

AN ACT GRANTING PATERNITY LEAVE OF
SEVEN (7) DAYS WITH FULL PAY TO ALL
MARRIED MALE EMPLOYEES IN THE PRIVATE
AND PUBLIC SECTORS FOR THE FIRST FOUR (4)
DELIVERIES OF THE LEGITIMATE SPOUSE WITH
WHOM HE IS COHABITING AND FOR OTHER
PURPOSES.


Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled:

SECTON 1. Short Title. - This Act shall be known
as the "Paternity Leave Act of 1996".

SECTON 2. Notwithstanding any law, rules and
regulations to the contrary, every married male
employee in the private and public sectors shall be
entitled to a paternity leave of seven (7) days with full
pay for the first four (4) deliveries of the legitimate
spouse with whom he is cohabiting. The male
employee applying for paternity leave shall notify his
employer of the pregnancy of his legitimate spouse
and the expected date of such delivery.

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

SECTON 3. Definition of Term. - For purposes of
this Act, Paternity Leave refers to the benefits
granted to a married male employee allowing him not
to report for work for seven (7)
days but continues to earn the compensation therefor,
on the condition that his spouse has delivered a child
or suffered a miscarriage for purposes of enabling
him to effectively lend
support to his wife in her period of recovery and/or in
the nursing of the newly-born child.

SECTON 4. The Secretary of Labor and
Employment, the Chairman of the Civil Service
Commission and the Secretary of Health shall, within
thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary
for the proper implementation of the provisions
hereof.

SECTON 5. Any person, corporation, trust, firm,
partnership, association or entity found violating this
Act or the rules and regulations promulgated
thereunder shall be punished by a fine not exceeding
Twenty-five thousand pesos (P25,000) or
imprisonment of not less than thirty (30)days nor more
than six (6) months.

f the violation is committed by a corporation, trust
or firm, partnership, association or any other entity,
the penalty of imprisonment shall be imposed on the
entity's responsible officers, including, but not limited
to, the president, vice-president, chief executive
officer, general manager, managing director or
partner directly responsible therefor.

SECTON 6. Nondiminution Clause. - Nothing in
this Act shall be construed to reduce any existing
benefits of any form granted under existing laws,
decrees, executive orders, or any
contract agreement or policy between employer and
employee.

SECTON 7. Repealing Clause. - All laws,
ordinances, rules, regulations, issuances, or parts
thereof which are inconsistent with this Act are
hereby repealed or modified accordingly.

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

Approved:

(SGD.) NEPTAL A. GONZALES
President of the Senate

(SGD.) JOSE DE VENECA, JR.
Speaker of the House of Representatives

This Act, which is a consolidation of Senate Bill
No. 1032 and House Bill No. 7134 was finally passed
by the Senate and the House of Representatives on
June 8, 1996.
1. Parenta Leave, Soo Parents Wefare Act of 2000 (RA
8972); Imp. Rues
REPUBLIC ACT NO. 8972
AN ACT PROVIDING FOR BENEFITS AND
PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of
Representatives of the Philippines Congress
assembled:
Section 1. Title. - This Act shall be known as the
"Solo Parents' Welfare Act of 2000."
Duman / Labor I / Prof. Battad / Page 81
Section 2. Declaration of Policy. - t is the policy of
the State to promote the family as the foundation of
the nation, strengthen its solidarity and ensure its total
development. Towards this end, it shall develop a
comprehensive program of services for solo parents
and their children to be carried out by the Department
of Social Welfare and Development (DSWD), the
Department of Health (DOH), the Department of
Education, Culture and Sports (DECS), the
Department of the nterior and Local Government
(DLG), the Commission on Higher Education
(CHED), the Technical Education and Skills
Development Authority (TESDA), the National
Housing Authority (NHA), the Department of Labor
and Employment (DOLE) and other related
government and nongovernment agencies.
Section 3. Definition of Terms. - Whenever used in
this Act, the following terms shall mean as follows:
(a) "Solo parent" - any individual who falls
under any of the following categories:
(1) A woman who gives birth as a
result of rape and other crimes
against chastity even without a final
conviction of the offender: Provided,
That the mother keeps and raises
the child;
(2) Parent left solo or alone with the
responsibility of parenthood due to
death of spouse;
(3) Parent left solo or alone with the
responsibility of parenthood while
the spouse is detained or is serving
sentence for a criminal conviction
for at least one (1) year;
(4) Parent left solo or alone with the
responsibility of parenthood due to
physical and/or mental incapacity of
spouse as certified by a public
medical practitioner;
(5) Parent left solo or alone with the
responsibility of parenthood due to
legal separation or de facto
separation from spouse for at least
one (1) year, as long as he/she is
entrusted with the custody of the
children;
(6) Parent left solo or alone with the
responsibility of parenthood due to
declaration of nullity or annulment
of marriage as decreed by a court
or by a church as long as he/she is
entrusted with the custody of the
children;
(7) Parent left solo or alone with the
responsibility of parenthood due to
abandonment of spouse for at least
one (1) year;
(8) Unmarried mother/father who
has preferred to keep and rear
her/his child/children instead of
having others care for them or give
them up to a welfare institution;
(9) Any other person who solely
provides parental care and support
to a child or children;
(10) Any family member who
assumes the responsibility of head
of family as a result of the death,
abandonment, disappearance or
prolonged absence of the parents
or solo parent.
A change in the status or
circumstance of the parent claiming
benefits under this Act, such that
he/she is no longer left alone with
the responsibility of parenthood,
shall terminate his/her eligibility for
these benefits.
(b) "Children" - refer to those living with and
dependent upon the solo parent for support
who are unmarried, unemployed and not
more than eighteen (18) years of age, or
even over eighteen (18) years but are
incapable of self-support because of mental
and/or physical defect/disability.
(c) "Parental responsibility" - with respect to
their minor children shall refer to the rights
and duties of the parents as defined in Article
220 of Executive Order No. 209, as
amended, otherwise known as the "Family
Code of the Philippines."
(d) "Parental leave" - shall mean leave
benefits granted to a solo parent to enable
him/her to perform parental duties and
responsibilities where physical presence is
required.
(e) "Flexible work schedule" - is the right
granted to a solo parent employee to vary
his/her arrival and departure time without
affecting the core work hours as defined by
the employer.
Section 4. Criteria for Support. - Any solo parent
whose income in the place of domicile falls below the
poverty threshold as set by the National Economic
and Development Authority (NEDA) and subject to the
assessment of the DSWD worker in the area shall be
eligible for assistance: Provided, however, That any
solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in
Sections 6, 7 and 8 of this Act.
Section 5. Comprehensive Package of Social
Development and Welfare Services. - A
comprehensive package of social development and
welfare services for solo parents and their families will
be developed by the DSWD, DOH, DECS, CHED,
TESDA, DOLE, NHA and DLG, in coordination with
Duman / Labor I / Prof. Battad / Page 82
local government units and a nongovernmental
organization with proven track record in providing
services for solo parents.
The DSWD shall coordinate with concerned agencies
the implementation of the comprehensive package of
social development and welfare services for solo
parents and their families. The package will initially
include:
(a) Livelihood development services which
include trainings on livelihood skills, basic
business management, value orientation and
the provision of seed capital or job
placement.
(b) Counseling services which include
individual, peer group or family counseling.
This will focus on the resolution of personal
relationship and role conflicts.
(c) Parent effectiveness services which
include the provision and expansion of
knowledge and skills of the solo parent on
early childhood development, behavior
management, health care, rights and duties
of parents and children.
(d) Critical incidence stress debriefing which
includes preventive stress management
strategy designed to assist solo parents in
coping with crisis situations and cases of
abuse.
(e) Special projects for individuals in need of
protection which include temporary shelter,
counseling, legal assistance, medical care,
self-concept or ego-building, crisis
management and spiritual enrichment.
Section 6. Flexible Work Schedule. - The employer
shall provide for a flexible working schedule for solo
parents: Provided, That the same shall not affect
individual and company productivity: Provided,
further, That any employer may request exemption
from the above requirements from the DOLE on
certain meritorious grounds.
Section 7. Work Discrimination. - No employer shall
discriminate against any solo parent employee with
respect to terms and conditions of employment on
account of his/her status.
Section 8. Parental Leave. - n addition to leave
privileges under existing laws, parental leave of not
more than seven (7) working days every year shall be
granted to any solo parent employee who has
rendered service of at least one (1) year.
Section 9. Educational Benefits. - The DECS, CHED
and TESDA shall provide the following benefits and
privileges:
(1) Scholarship programs for qualified solo
parents and their children in institutions of
basic, tertiary and technical/skills education;
and
(2) Nonformal education programs
appropriate for solo parents and their
children.
The DECS, CHED and TESDA shall promulgate rules
and regulations for the proper implementation of this
program.
Section 10. Housing Benefits. - Solo parents shall be
given allocation in housing projects and shall be
provided with liberal terms of payment on said
government low-cost housing projects in accordance
with housing law provisions prioritizing applicants
below the poverty line as declared by the NEDA.
Section 11. Medical Assistance. - The DOH shall
develop a comprehensive health care program for
solo parents and their children. The program shall be
implemented by the DOH through their retained
hospitals and medical centers and the local
government units (LGUs) through their
provincial/district/city/municipal hospitals and rural
health units (RHUs).
Section 12. Additional Powers and Functions of the
DSWD. ! The DSWD shall perform the following
additional powers and functions relative to the welfare
of solo parents and their families:
(a) Conduct research necessary to: (1)
develop a new body of knowledge on solo
parents; (2) define executive and legislative
measures needed to promote and protect
the interest of solo parents and their
children; and (3) assess the effectiveness of
programs designed for disadvantaged solo
parents and their children;
(b) Coordinate the activities of various
governmental and nongovernmental
organizations engaged in promoting and
protecting the interests of solo parents and
their children; and
(c) Monitor the implementation of the
provisions of this Act and suggest
mechanisms by which such provisions are
effectively implemented.
Section 13. Implementing Rules and Regulations. -
An interagency committee headed by the DSWD, in
coordination with the DOH, DECS, CHED, TESDA,
DOLE, NHA, and DLG is hereby established which
shall formulate, within ninety (90) days upon the
effectivity of this Act, the implementing rules and
regulations in consultation with the local government
units, nongovernment organizations and people's
organizations.
Section 14. Appropriations. - The amount necessary
to carry out the provisions of this Act shall be included
in the budget of concerned government agencies in
the General Appropriations Act of the year following
its enactment into law and thereafter.1awphil.net
Section 15. Repealing Clause. - All laws, decrees,
executive orders, administrative orders or parts
Duman / Labor I / Prof. Battad / Page 83
thereof inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.
Section 16. Separability Clause. - f any provision of
this Act is held invalid or unconstitutional, other
provisions not affected thereby shall continue to be in
full force and effect.
Section 17. Effectivity Clause. - This Act shall take
effect fifteen (15) days following its complete
publication in the Official Gazette or in at least two (2)
newspaper of general circulation.
Approved.
(Sgd.)
JOSEPH EJERCITO ESTRADA
President of the Philippines
Republic of the Philippines
National Economic Development Authority
SOCIAL DEVELOPMENT COMMITTEE (SDC)
Resolution No.2 (Series 2002)
APPROVING THE IMPLEMENTING RULES AND
REGULATIONS (IRR)
OF REPUBLIC ACT 8972 PROVIDING FOR
BENEFITS AND PRIVILEGES
TO SOLO PARENTS AND THEIR CHILDREN
WHEREAS, it is the policy of the State to promote the
family as the foundation of the nation, strengthen its
solidarity and ensure its total development;
WHEREAS, in support of this State policy, R.A. 8972,
otherwise known as the Solo Parents' Welfare Act of
2000, has been enacted to develop a comprehensive
program for social development and welfare services
for solo parents and their children;
WHEREAS, to ensure the implementation of the Act,
the Department of Social Welfare and Development
was tasked to coordinate with concerned agencies
and perform additional functions relative to the
welfare and development of solo parents and their
children;
WHEREAS, an interagency committee headed by
DSWD and participated in by the Departments of
Health (DOH), Education (DepEd), Labor and
Employment (DOLE), and nterior and Local
Government (DLG), Commission on Higher
Education (CHED), Technical Education and Skills
Development Authority (TESDA), and National
Housing Authority (NHA) drafted the RR in
consultation with the local government units, non-
government organizations and people's organizations;
WHEREAS, the draft IRR was deliberated upon and
approved by the members of the SDC-Cabinet level
subject to the incorporation of certain comments
during its meeting on the 10
th
day of April 2002;
NOW, THEREFORE, BE IT RESOLVED, AS IT IS
HEREBY RESOLVED, by the Chairman and
members of the NEDA Board's Social Development
Committee-Cabinet level, to approve the RR of R.A.
8972.
RESOLVED FURTHER, that this IRR shall be
published at least in one newspaper of general
circulation.
Adopted, this 10 day of April in the year of our Lord,
Two Thousand and Two, Pasig City.
RULES AND REGULATIONS IN THE
IMPLEMENTATION OF REPUBLIC ACT NO. 8972,
AN ACT PROVIDING FOR BENEFITS AND
PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES
ARTCLE
TTLE, PURPOSE AND CONSTRUCTON
Section 1. Title These rules shall be known and
cited as the Rules and Regulations mplementing
Republic Act No. 8972, more commonly known as the
SoIo Parents' WeIfare Act of 2000.
Section 2. Purpose These Rules are promulgated to
prescribe the procedure and guidelines for the
implementation of the Solo Parents' Welfare Act of
2000 in order to facilitate the compliance therewith
and to achieve the objectives thereof.
Section 3. Construction These Rules shall be
IiberaIIy construed in favor of the soIo parent and
applied in accordance with and in furtherance of the
policy and objectives of the law. n case of conflict
and/or ambiguity, which may arise in the
implementation of these Rules, the concerned
agencies shall issue the necessary clarification.
ARTCLE
DECLARATON OF POLCES AND OBJECTVES
Section 4. Declaration of Policy t is the policy of the
State to promote the family as the foundation of the
nation, strengthen its solidarity and ensure its total
development. Towards this end, it shall develop a
comprehensive program of services for solo parents
and their children to be carried out by the Department
of Social Welfare and Development (DSWD), the
Department of Health (DOH), the Department of
Education (DepEd), the Department of the nterior
and Local Government (DLG), the Commission on
Higher Education (CHED), the Technical Education
and Skills Development Authority (TESDA), the
National Housing Authority (NHA), the Department of
Labor and Employment (DOLE) and other related
government agencies and non-government
organizations or civil society.
Section 5. Objective These Rules and Regulations
seek to clarify the scope and application of the Act in
order that the proper parties may avail of its benefits.
ARTCLE
DEFNTON OF TERMS
Section 6. Definition of terms As used in these
Rules, the following terms shall mean as follows:
(a) "Act the Solo Parents' Welfare Act of
2000;
(b) "Solo Parent any individual who falls
under any of the following categories:
(1) A woman who gives birth as a
result of rape or crimes against chastity,
even without a final conviction of the
offender: Provided, that the mother keeps
and raises the child;
(2) Parent left solo or alone with the
responsibility of parenthood due to death of
spouse;
(3) Parent left solo or alone with the
responsibility of parenthood while the spouse
is detained, or is serving sentence for a
criminal conviction for at least one (1) year;
The law applies to the spouses of prisoners, whether
or not a final judgement has been rendered, provided
Duman / Labor I / Prof. Battad / Page 84
they are in detention for a minimum period of one (1)
year;
(4) Parent left solo or alone with the
responsibility of parenthood due to physical
and/or mental incapacity of spouse as
certified by a public medical practitioner;
(5) Parent left solo or alone with the
responsibility of parenthood due to legal
separation or de facto separation from
spouse for at least one (1) year: Provided,
that he or she is entrusted with the custody
of the children;
(6) Parent left solo or alone with the
responsibility of parenthood due to
declaration of nullity or annulment of
marrriage as decreed by a court or by a
church: Provided, that he/she is entrusted
with the custody of the children;
(7) Parent left solo or alone with the
responsibility of parenthood due to
abandonment of spouse for at least one (1)
year;
(8) Unmarried mother/father who
has preferred to keep and rear his/her
child/children instead of having others care
for them or give them up to a welfare
institution;
(9) Any other person who solely
provides parental care and support to a child
or children provided he/she is duly licensed
as a foster parent by the DSWD or duly
appointed legal guardian by the court;
(10) Any family member who
assumes the responsibility of head of family
as a result of the death, abandonment,
disappearance, or absence lasts for at least
one (1) year.
A change in the status or circumstance of the parent
claiming benefits under the Act, such that he/she is no
longer left alone with the responsibility of parenthood,
shall terminate his/her eligibility for these benefits;
(c) "Family shall refer to the Solo Parent
and his/her child/children; Provided, however, that the
family member referred to in Section 3, paragraph
(a)(10) of these Rules shall include any relative by
consanguinity up to the fourth civil degree. These
persons shall include, but are not limited to, any
uncle, aunt, grandfather, grandmother, niece, nephew,
or cousin;
(d) "Social Worker a person who is a
graduate of Social Work and duly registered pursuant
to Republic Act 4373 and employed with the Social
Welfare and Development Office of the local
government unit where the solo parent resides;
(e) "Children refer to those living with and
dependent upon the solo parent for support who are
unmarried, unemployed and beIow eighteen (18)
years of age, or even eighteen (18) years and
above but are incapable of self-support and/or
mentally and/or physically challenged;
(f) "Parental responsibility with respect to
their minor children shall refer to the rights and duties
of the parents as defined in Article 220 of Executive
Order No. 209, as amended, otherwise known as the
"Family Code of the Philippines, and hereunder
enumerated as follows:
(1) To keep them in their company,
to support, educate and instruct them by
right precept and good example and to
provide for their upbringing in keeping with
their means;
(2) To give them love and affection,
advice and counsel, companionship and
understanding;
(3) To provide them with moral and
spiritual guidance, inculcate in them honesty,
integrity, self-discipline, self-reliance,
industry and thrift, stimulate their interest in
civic affairs, and inspire in them compliance
with the duties of citizenship;
(4) To furnish them with good and
wholesome educational materials, supervise
their activities, recreation and association
with others, protect them from bad company,
and prevent them from acquiring habits
detrimental to their health, studies and
morals;
(5) To represent them in all matters
affecting their interest;
(6) To demand from them respect
and obedience;
(7) To mpose discipline on them as
may be required under the circumstances;
and
(8) To perform such other duties as
are imposed by law and upon parents and
guardians;
(g) "Parental leave shall mean leave
benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where
physical presence is required;
(h) "Flexible work schedule is the right
granted to a solo parent employee to vary his/her
arrival and departure time without affecting the core
work hours as defined by the employer;
(i) "DSWD shall refer to the Department of
Social Welfare and Development;
(j) "DOH shall refer to the Department of
Health;
(k) "DOLE shall refer to the Department of
Labor and Employment;
(l) "DepEd shall refer to the Department of
Education;
(m) "DLG shall refer to the Department of
the nterior and Local Government;
(n) "CHED shall refer to the Commission
on Higher Education;
Duman / Labor I / Prof. Battad / Page 85
(o) "NHA shall refer to the National
Housing Authority;
(p) "TESDA shall refer to the Technical
Education and Skills Development Authority;
(q) "NEDA shall refer to the National
Economic and Development Authority;
(r) "NSCB shall refer to the National
Statistical Coordination Board, an attached agency of
NEDA and responsible for determining the regional
poverty threshold.
ARTCLE V
CRTERA FOR SUPPORT
Section 7. Criteria for Support Any solo parent
whose income in the place of domicile faIIs equaI to
or beIow the poverty threshoId as set by the NSCB
and subject to the assessment of the duly appointed
or designated social worker in the area shall be
eligible for assistance: Provided, however, That any
solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in
Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of
domicile shall refer to the residence mentioned in
Section 8(a) of these Rules.
Section 8. Qualifications of Solo Parent A solo
parent seeking benefits other than those provided for
under Sections 16, 17, 18, 19, 20, 21 and 23 of these
Rules shall be qualified on the basis of the following:
(a) A resident of the area where the
assistance is sought, as certified by
the barangay captain; Provided, that
if the soIo parent is a transferee from
another barangay, he/she is required
to secure a cIearance from his/her
previous barangay, indicating
whether or not he/she has avaiIed of
any benefits for soIo parents, and
the nature of such benefits.
(b) With an income level equal to or below
the poverty threshold as set forth by
NSCB and assessed by a social worker
as provided for under Section 7 of
these Rules.
Duman / Labor I / Prof. Battad / Page 86
Section 9. Assessment an applicant who manifests
the need for assistance under the Act is subject to
assessment by a social worker at the city/municipal
Social Welfare and Development Office. The
assessment shall cover, but not be limited to, the
following:
(a) Determination of the applicant's category
as enumerated in Article Section 6
paragraph (b) of these Rules;
(b) Evaluation of the needs of the applicant
and his/her children as basis for
provision of the appropriate service and
intervention;
(c) dentification of the level of readiness of
the applicant to receive a particular
service/assistance, which shall serve as
basis for the conduct of social
preparation activities prior to the
provision of such service/assistance;
and
(d) dentification of existing and potentially
available resources that may support
the applicant and his/her children.
Section 10. Procedure in Accessing Services for Solo
Parents - A person who needs assistance under this
Act shall comply with the following process;
(a) Visit the Social Welfare and Development
Office of the city or municipality of
her/his residence to manifest her/his
need for assistance;
(b) Fill up application form for the assistance,
indicating but not limited to, the
following information:
1. Name
2. Age
3. Address/Area of Domicile
4. ncome per month
5. Source/s of income
6. Number of children
7. Circumstances of being solo;
(c) Undergo the necessary assessment
process as stipulated in Section 9
Article V of these Rules;
(d) A Social Case Study Report shall be
prepared by the social worker based on
the information/data provided for by the
applicant, as well as his/her
assessment of said applicant, indicating
therein the appropriate services
needed.
(e) The Social Case Study Report, together
with a referral letter prepared by the
social worker, shall be forwarded by the
Office of the City/Municipal Social
Welfare and Development Office to the
agency concerned providing the
appropriate assistance/service.
(f) The social worker shall inform the solo
parent of the status of his/her
application within thirty (30) working
days from the filing of such and shall
require him/her to visit the
agency/institution providing the
assistance. n case the applicant is not
qualified for services under this Act,
he/she will be referred to the
appropriate agency/program for
assistance.
(g) Upon the favorable evaluation of the
social worker, a Solo Parent
dentification Card shall be issued on
the solo parent within 30 days upon
application duly signed by the
city/municipal Social Welfare Officer
and the city/municipal mayor. The Solo
Parent dentification Card is necessary
for the availment of benefits under the
Act and these Rules. Such dentification
Card shall be valid for only one (1) year,
but may be renewed subject to a new
assessment and evaluation;
(h) For the public's information and
guidance, a list of persons who applied
and those who were able to avail of the
benefits under this Act shall be made
available by the concerned
city/municipal social welfare and
development office which processed
their applications.
Section 11. Procedure for Application of Benefits An
applicant who was determined by a social worker to
be eligible for assistance may apply for benefits under
this Act through the following;
(a) The solo parent may go to the agency
providing such benefit bringing with
her/him the dentification Card issued
by the Municipal/City Social Welfare
and Development Office;
(b) Undergo the necessary qualifying
activities required by the agency as
prescribed by these Rules; and
(c) Comply with the requirements set forth by
the agency providing the service for the
duration of the assistance (e.g.
schooling, housing) subject to existing
rules of the agencies concerned.
Section 12. Procedure for Termination of Benefits
(a) A solo parent shall manifest to the Social
Welfare Office his/her intention to
withdraw the availment of the benefits
under this Act.
(b) f the solo parent does not voluntarily
manifest his/her intention to terminate
the provision of benefits and services
before the Iapse of one year from the
issuance of the SoIo Parent I.D., the
Social Worker, based on a report by the
Duman / Labor I / Prof. Battad / Page 87
employer or any interested person shall
conduct the necessary
assessment/evaluation to ascertain if
grounds for termination and withdrawal
of benefits exist. The dentification Card
shall cease to be effective upon the
lapse of one year from issuance, unless
renewed based on a new assessment
and evaluation. FaiIure to renew wiII
mean that he/she has changed
his/her status as a soIo parent.
(c) The solo parent shall be informed of the
result of the assessment/evaluation and
termination of the service, if warranted,
through written notice. The termination
shall take effect 30 days from the
receipt of the notice of termination. n
cases when the service cannot be
terminated in a period of one month,
e.g. schooling, the service shall be
completed until its due time.
The NHA and other participating housing agencies
shall issue the guidelines in the termination of housing
benefits provided in sections 23 and 24 of these
Rules.
(d) The solo parent and his/her children shall
undergo psychosocial counseling with
the social worker to prepare them for
independent living.
Section 13. Relocation of the Family n the event a
solo parent decides to relocate his/her family, he/she
shall inform the city/municipal Social Welfare and
Development Office. Said office shall thereupon
transmit the records to the city/municipal Social
Welfare and Development Office of the place of
relocation.
Section 14. Duty to Monitor t shall be the duty of
the city/municipal Social Welfare Officer who receives
said records, to assign a social worker to monitor the
status of the relocated solo parent and his/her family.
Moreover, it shall also be the duty of said officer to
coordinate with the concerned agencies of any
changes in the status of the solo parent receiving
benefits from said agencies.
ARTCLE V
BENEFTS
Section 15. Comprehensive Package of Social
Development and Welfare Services A
comprehensive package of social development and
welfare services for solo parents and their families will
be developed by the DSWD, DOH, DepEd, CHED,
TESDA, DOLE, NHA and DLG, in coordination with
local government units and non-governmental
organizations with proven track record in providing
services for solo parents.
The DSWD shall coordinate with concerned agencies
the implementation of the comprehensive package of
social development and welfare services for solo
parents and their families. The package will initially
include:
(a) Livelihood development services, which
include training on livelihood skills,
basic business management, value
orientation and the provision of seed
capital or job placement.
The criteria and procedure for evaluation of
beneficiaries for the purposes of availing of the
benefits of this item shall be provided for by the DOLE
and TESDA; the provision of seed capital shall be
guided by the credit policy of the National Credit
Council as contained in E.O. No. 138, "Rationalization
of Government Directed Credit Program, passed in
1999.
(b) Counseling services, which include
individual, peer group or family
counseling. These will focus on the
resolution of personal relationship and
role conflicts.
The criteria and procedure for evaluation of
beneficiaries for the purposes of availing of the
benefits of this item shall be provided for by the
DSWD;
(c) Parent effectiveness services which
include the provision and expansion of
knowledge and skills of the solo parent
on early childhood development,
behavior management, health care and
proper nutrition, rights and duties of
parents and children;
(d) Critical incidence stress debriefing, which
includes preventive stress management
strategy designed to assist solo parents
in coping with crisis situations and
cases of abuse;
(e) Special projects for individuals in need of
protection which include temporary
shelter, counseling, legal assistance,
medical care, self-concept or ego-
building, crisis management and
spiritual enrichment.
Section 16. Flexible Work Schedule The employer
shall provide for a flexible work schedule for solo
parents: Provided, That the same shall not affect
individual and company productivity: Provided further,
That any employer may request exemption from the
above requirements from the DOLE on certain
meritorious grounds.
n the case of employees in the government service,
flexible working hours will be subject to the discretion
of the head of the agency. n no case shall the weekly
working hours be reduced in the event the agency
adopts the flexible working hours schedule format
(flexi-time). n the adoption of flexi-time, the core
working hours shall be prescribed taking into
consideration the needs of the service..
Section 17. Work Discrimination No
employer shall discriminate against any solo parent
employee with respect to terms and conditions of
employment on account of his/her status.
Section 18. Parental Leave n addition to leave
privileges under existing laws, parental leave of not
more than seven (7) working days every year shall be
granted to any solo parent employee who has
rendered service of at least one (1) year. The seven-
day parental leave shall be non-cumulative.
Section 19. Conditions for Entitlement of Parental
Leave A solo parent shall be entitled to parental
leave provided that:
(a) He/She has rendered at least one (1)
year of service whether continuous or
broken at the time of the affectivity of
the Act;
Duman / Labor I / Prof. Battad / Page 88
(b) He/She has notified his/her employer of
the availment thereof within a
reasonable time period; and
(c) He/She has presented a Solo Parent
dentification Card to his/her employer.
Section 20. Non-conversion of Parental Leave n
the event that the parental leave is not availed of, said
leave shall not be convertible to cash unless
specifically agreed upon previously. However, if said
leave were denied an employee as a result of non-
compliance with the provisions of these Rules by an
employer, the aforementioned leave may be used a
basis for the computation of damages.
Section 21. Crediting of Existing Leave f there is an
existing or similar benefit under a company policy, or
a collective bargaining agreement or collective
negotiation agreement the same shall be credited as
such. f the same is greater than the seven (7) days
provided for in the Act, the greater benefit shall
prevail.
Emergency or contingency leave provided under a
company policy or a collective bargaining agreement
shall not be credited as compliance with the parental
leave provided for under the Act and these Rules.
Section 22. Educational Benefits The DepEd, CHED
and TESDA shall provide the following benefits and
privileges:
(a) Scholarship programs for qualified solo
parents and their children in
institutions of basic, tertiary and
technical/skills education;
(b) Non-formal education programs
appropriate for solo parents and their
children.
Application Procedure:
1. Applicant must secure application form
from either DepEd, CHED and TESDA
depending on their need;
2. Submit the duly accomplished application
form together with the required
documents to the appropriate agency.
The following are the documents required to be
attached with the application:
1. Solo Parent dentification Card
2. Barangay Clearance
3. Birth Certificate
4. Notice of admission from the
school
5. Original or Certified True Copy of
the transcript of record, or the
Report Care of the last year the
applicant attended school.
Section 23. Housing Benefits Solo parents who
meet the eligibility criteria for housing assistance
under R.A. No. 7279 (Urban Development and
Housing Act of 1992) and other related rules and
regulations of participating housing agencies shall be
provided with liberal terms of payment on government
low-cost housing projects, in accordance with housing
law provisions, prioritizing applicants below the
poverty line as declared by the NSCB.
Section24. The NHA shall make available housing
units to solo parents in its housing projects subject to
existing disposition policies or may refer them to other
housing projects, as appropriate, provided that:
(a) The identified solo parent must be eligible
for assistance under the provisions of
this Act;
(b) Solo parents applying for housing
benefits must meet the qualification
criteria for housing assistance under
Republic Act 7279, or the Urban
Development and Housing Act
(UDHA) and other NHA eligibility
criteria under existing policies, rules
and regulations; and
(c) Eligible solo parents shall file their
application for housing unit directly
with the concerned NHA Project
Offices.
Upon written request, the NHA shall provide the
DSWD a listing of NHA projects with available
housing units for disposition. This list shall be updated
and provided semi-annually.
Section 25. Medical Assistance The DOH shall
develop a comprehensive health care program for
solo parents and their children. The program shall be
implemented by the DOH through their retained
hospitals and medical centers and the local
government units (LGUs) through their
provincial/district/city/municipal hospitals and rural
health units (RHUs).
Section 26. Essential Health Packages To ensure
the state of well-being of the solo parent and his/her
family, healthy/medical services shall be made
available at all times, in all levels of health care
delivery system as mentioned in the previous section.
These health/medical services shall be part of the
regular essential health packages being provided at
various stages of life.
ARTCLE V
ADDTONAL POWERS AND FUNCTONS OF THE
DSWD
Section 27. Additional Powers and Functions of the
DSWD The DSWD shall perform the following
additional powers and functions relative to the welfare
and development of solo parents and their families:
(a) Conduct research necessary to:
(1) develop a new body of knowledge
on solo parents;
(2) Define executive and legislative
measures needed to promote and
protect the interest of solo parents
and their children; and
(3) Assess the effectiveness of policies
and programs designed for solo
parents and their children;
Duman / Labor I / Prof. Battad / Page 89
The commissioning or contracting out for the conduct
of said research shall be inherent in the performance
of herein function;
(b) Coordinate the activities of various
government agencies, LGUs, and non-
government organizations engaged in
promoting and protecting the interests
of solo parents and their children;
(c) Coordinate the dissemination of
information concerning the benefits of
the Act and these Rules, as well as
other advocacy activities; and
(d) Monitor the implementation of the
provisions of this Act and suggest
mechanisms by which such provisions
are efficiently and effectively
implemented.
Section 28. Review Committee A special review
committee comprised of members from the DSWD,
DOH, DepEd, DILG, CHED, TESDA, NHA, DOLE
and other reIated government agencies and non-
government organizations or civil society involved in
the implementation of the provisions of the Act shall
be created and headed by the DSWD for the purpose
of evaluating the efficacy and relevancy of the
provisions of the Act to the present situation.
The duties and responsibilities of the members of this
Review Committee shall be considered as part of their
regular functions.
ARTCLE V
FNAL PROVSONS
Section 29. Appropriations The amount necessary
to carry out the provisions of the Act shall be included
in the budget of concerned government agencies in
the General Appropriations Act of the year following
its enactment into law and thereafter.
Section 30. Repealing Clause All laws, decrees,
executive orders, administrative orders or parts
thereof inconsistent with the provisions of the Act are
hereby repealed, amended or modified accordingly.
Section 31. Separability Clause f any provision of
the Act is held invalid or unconstitutional, other
provisions not affected thereby shall continue to be in
full force and effect.
Section 32. Effectivity Clause These mplementing
Rules and Regulations shall take effect fifteen (15)
days following its publication in one (1) national
newspaper of general circulation.
7. Servce Charges
Reference: Art. 96; Omnbus Rues, Book III, Rue VI
ART. 96. 5ervice charges. - A servce charges
coected by hotes, restaurants and smar
estabshments sha be dstrbuted at the rate of
eghty-fve percent (85%) for a covered empoyees
and ffteen percent (15%) for management. The
share of the empoyees sha be equay dstrbuted
among them. In case the servce charge s aboshed,
the share of the covered empoyees sha be
consdered ntegrated n ther wages.

RULE VI
Servce Charges
SECTION 1. Coverage. - Ths rue sha appy ony to
estabshments coectng servce charges such as
hotes, restaurants, odgng houses, nght cubs,
cockta ounge, massage cncs, bars, casnos and
gambng houses, and smar enterprses, ncudng
those enttes operatng prmary as prvate
subsdares of the Government.
SECTION 2. Empoyees covered. - Ths rue sha
appy to a empoyees of covered empoyers,
regardess of ther postons, desgnatons or
empoyment status, and rrespectve of the method
by whch ther wages are pad except to managera
empoyees.
As used heren, a "managera empoyee" sha mean
one who s vested wth powers or prerogatves to ay
down and execute management poces and/or to
hre, transfer, suspend, ay-off, reca, dscharge,
assgn, or dscpne empoyees or to effectvey
recommend such managera actons. A empoyees
not fang wthn ths defnton sha be consdered
rank-and-fe empoyees.
SECTION 3. Dstrbuton of servce charges. - A
servce charges coected by covered empoyers sha
be dstrbuted at the rate of 85% for the empoyees
and 15% for the management. The 85% sha be
dstrbuted equay among the covered empoyees.
The 15% sha be for the dsposton by management
to answer for osses and breakages and dstrbuton
to managera empoyees at the dscreton of the
management n the atter case.
SECTION 4. Frequency of dstrbuton. - The shares
referred to heren sha be dstrbuted and pad to the
empoyees not ess than once every two (2) weeks or
twce a month at ntervas not exceedng sxteen (16)
days.
SECTION 5. Integraton of servce charges. - In case
the servce charges s aboshed the share of covered
empoyees sha be consdered ntegrated n ther
wages. The bass of the amount to be ntegrated
sha be the average monthy share of each
empoyee for the past tweve (12) months
mmedatey precedng the aboton of wthdrawa of
such charges.
SECTION 6. Reaton to agreements. - Nothng n ths
Rue sha prevent the empoyer and hs empoyees
from enterng nto any agreement wth terms more
favorabe to the empoyees than those provded
heren, or be used to dmnsh any beneft granted to
the empoyees under exstng aws, agreement and
vountary empoyer practce.
SECTION 7. Ths rue sha be wthout pre|udce to
exstng, future coectve barganng agreements.
Nothng n ths rue sha be construed to |ustfy the
reducton or dmnuton of any beneft beng en|oyed
by any empoyee at the tme of effectvty of ths
rue.
a. Covered Empoyees, Art. 96
b. Sharng, Art. 96
Duman / Labor I / Prof. Battad / Page 90
G. Minimum Wages and Wage Fixing Machinery
Reference: Art. 96; Omnbus Rues, Book III, Rues
VII-VIII
ART. 99. Regional minimum wages. - The mnmum
wage rates for agrcutura and non-agrcutura
empoyees and workers n each and every regon of
the country sha be those prescrbed by the Regona
Trpartte Wages and Productvty Boards. (As
amended by Secton 3, Repubc Act No. 6727, |une
9, 1989).
Art XIII, Secton 3. The State sha afford fu
protecton to abor, oca and overseas, organzed
and unorganzed, and promote fu empoyment and
equaty of empoyment opportuntes for a.
It sha guarantee the rghts of a workers to sef-
organzaton, coectve barganng and negotatons,
and peacefu concerted actvtes, ncudng the rght
to strke n accordance wth aw. They sha be
entted to securty of tenure, humane condtons of
work, and a vng wage. They sha aso partcpate n
pocy and decson-makng processes affectng ther
rghts and benefts as may be provded by aw.
The State sha promote the prncpe of shared
responsbty between workers and empoyers and
the preferenta use of vountary modes n settng
dsputes, ncudng concaton, and sha enforce
ther mutua compance therewth to foster ndustra
peace.
The State sha reguate the reatons between
workers and empoyers, recognzng the rght of abor
to ts |ust share n the fruts of producton and the
rght of enterprses to reasonabe returns to
nvestments, and to expanson and growth.
RULE VII
Wages
SECTION 1. Defnton of Terms. As used n ths Rues
-
a) "Act" means Repubc Act No. 6727;
b) "Commsson" means the Natona Wages and
Productvty Commsson;
c) "Board" means the Regona Trpartte Wages and
Productvty Board;
d) "Agrcuture" refers to a farmng actvtes n a
ts branches and ncudes among others, the
cutvaton and tage of the so, producton,
cutvaton, growng and harvestng of any
agrcutura or hortcutura commodtes, daryng,
rasng of vestock or poutry, the cuture of fsh and
other aquatc products n farms or ponds, and any
actvtes performed by a farmer or on a farm as an
ncdent to or n con|uncton wth such farmng
operatons, but does not ncude the manufacturng
and/or processng of sugar, coconut, abaca, tobacco,
pneappe, aquatc or other farm products;
e) "Pantaton Agrcutura Enterprse" s one engaged
n agrcuture wthn an area of more than 24
hectares n a ocaty and/or whch empoys at east
20 workers. Any other agrcutura enterprse sha be
consdered as "Non-Pantaton Agrcutura
Enterprses";
f) "Reta Estabshment" s one prncpay engaged n
the sae of goods to end-users for persona or
househod use;
g) "Servce Estabshment" s one prmary engaged
n the sae of servce to ndvduas for ther own or
househod use and s generay recognzed as such;
h) "Cottage/Handcraft Estabshment" s one
engaged n an economc endeavor n whch the
products are prmary done n the home or such
other paces for proft whch requres manua
dexterty and craftsmanshp and whose captazaton
does not exceed P500,000, regardess of prevous
regstraton wth the defunct NACIDA;
) "Natona Capta Regon" covers the ctes of
Kaookan, Mana, Pasay and Ouezon and the
muncpates of Las Pas, Makat, Maabon,
Mandauyong, Markna, Muntnupa, Navotas,
Paraaque, Pasg, Pateros, San |uan, Tagug and
Vaenzuea;
|) "Regon III" covers the provnces of Bataan,
Buacan, Nueva Ec|a, Pampanga, Tarac, and
Zambaes and the ctes of Angees, Cabanatuan,
Oongapo, Paayan and San |ose;
k) "Regon IV" covers the provnces of Aurora,
Batangas, Cavte, Laguna, Marnduque, Occdenta
Mndoro, Paawan, Ouezon, Rza and Rombon and
the ctes of Batangas, Cavte, Lpa, Lucena, Puerto
Prncesa, San Pabo, Tagaytay and Trece Martres;
) "Department" refers to the Department of Labor
and Empoyment;
m) "Secretary" means the Secretary of Labor and
Empoyment;
n) "Basc Wage" means a remuneraton or earnngs
pad by an empoyer to a worker for servces
rendered on norma workng days and hours but does
not ncude cost-of-vng aowances, proft sharng
payments, premum payments, 13th month pay or
other monetary benefts whch are not consdered as
part of or ntegrated nto the reguar saary of the
workers on the date the Act became effectve."
o) "Statutory Mnmum Wage" s the owest wage
fxed by aw that an empoyer can pay hs workers;
p) "Wage Dstorton" means a stuaton where an
ncrease n prescrbed wage rates resuts n the
emnaton or severe contracton of ntentona
quanttatve dfferences n wage or saary rates
between and among empoyee groups n an
estabshment as to effectvey obterate the
dstnctons emboded n such wage structure based
on sks, ength of servce, or other ogca bases of
dfferentaton;
q) "Captazaton" means pad-up capta, n the case
of a corporaton, and tota nvested capta, n the
case of a partnershp or snge propretorshp.
CHAPTER I
Wage Increase
SECTION 1. Coverage. - The wage ncrease
prescrbed under the Act sha appy to a workers
and empoyees n the prvate sector regardess of
Duman / Labor I / Prof. Battad / Page 91
ther poston, desgnaton or status, and rrespectve
of the method by whch ther wages are pad, except:
a) Househod or domestc hepers, ncudng famy
drvers and workers n the persona servce of
another;
b) Workers and empoyees n reta/servce
estabshments reguary empoyng not more than
10 workers, when exempted from compance wth
the Act, for a perod fxed by the Commsson/Boards
n accordance wth Secton 4 (c) of the Act and
Secton 15, Chapter 1 of these Rues;
c) Workers and empoyees n new busness
enterprses outsde the Natona Capta Regon and
export processng zones for a perod of not more
than two or three years, as the case may be, from
the start of operatons when exempted n accordance
wth Secton 5 of the Act and Secton 15, Chapter I of
these Rues;
d) Workers and empoyees recevng a basc wage of
more than P100.00 per day.
SECTION 2. Effectvty. - The Act takes effect on |uy
1, 1989, 15 days foowng ts compete pubcaton n
two newspapers of genera crcuaton on |une 15,
1989 pursuant to Secton 15 thereof.
SECTION 3. Amount of Mnmum Wage Increase. -
Effectve |uy 1, 1989, the day statutory mnmum
wage rates of covered workers and empoyees sha
be ncreased as foows:
a) P25.00 for those n the Natona Capta Regon;
b) P25.00 for those outsde the Natona Capta
Regon, except for the foowng:
P20.00 for those n pantaton agrcutura enterprses
wth an annua gross saes of ess than P5 mon n
the fsca year mmedatey precedng the effectvty
of the Act;
P15.00 for those n the foowng enterprses:
1. Non-pantaton agrcuture
2. Cottage/handcraft
3. Reta/Servce reguary empoyng not more than
10 workers
4. Busness enterprses wth a captazaton of not
more than P500,000 and empoyng not more than
20 workers.
SECTION 4. When Wage Increase Due Other Workers.
- a) A workers and empoyees who, pror to |uy 1,
1989, were aready recevng a basc wage above the
statutory mnmum wage rates provded under
Repubc Act 6640 but not over P100.00 per day sha
receve a wage ncrease equvaent to that provded
n the precedng Secton.
b) Those recevng not more than the foowng
monthy basc wage rates pror to |uy 1, 1989 sha
be deemed covered by the precedng subsecton:
() P3,257.50 - where the workers and empoyees
work everyday, ncudng premum payments for
Sundays or rest days, speca days and reguar
hodays.
() P3,041.67 - where the workers and empoyees
do not work but consdered pad on rest days, speca
days and reguar hodays.
() P2,616.67 - where the workers and empoyees
do not work and are not consdered pad on Sundays
or rest days.
(v) P2,183.33 - where the workers and empoyees
do not work and are not consdered pad on
Saturdays and Sundays or rest days.
c) Workers and empoyees who, pror to |uy 1, 1989,
were recevng a basc wage of more than P100.00
per day or ts monthy equvaent, are not by aw
entted to the wage ncrease provded under the Act.
They may however, receve wage ncreases through
the correcton of wage dstortons n accordance wth
Secton 16, Chapter I of these Rues.
SECTION 5. Day Statutory Mnmum Wage Rates. -
The day mnmum wage rates of workers and
empoyees sha be as foows:
Sector/Industry Under Under
R. A. 6640 R. A. 6727
(Effectve (Effectve
Dec. 14, |uy 1,
1987) 1989)
A. NATIONAL CAPITAL REGION
Non-Agrcuture P64.00 P89.00
Agrcuture
Pantaton 54.00 79.00
Non-Pantaton 43.50 68.50
Cottage/Handcraft
Empoyng more than 30
workers 52.00 77.00
Empoyng not more than
30 workers 50.00 75.00
Prvate Hosptas
Wth bed capacty of more
than 100 64.00 89.00
Wth bed capacty of 100
or ess 60.00 85.00
Reta/Servce
Empoyng more than 15
workers 64.00 89.00
Empoyng 11 to 15
workers 60.00 85.00
Empoyng not more than
10 workers 43.00 68.00
B. OUTSIDE NATIONAL CAPITAL REGION
Duman / Labor I / Prof. Battad / Page 92
Non-Agrcuture 64.00 89.00
Agrcuture
Pantaton wth annua gross
saes of P5M or more 54.00 79.00
Pantaton wth annua gross
saes of ess than P5M 54.00 74.00
Non-pantaton 43.50 58.50
Cottage/Handcraft
Empoyng more than
30 workers 52.00 67.00
Empoyng not more
than 30 workers 50.00 65.00
Prvate Hosptas 60.00 85.00
Reta/Servce
Ctes w/ popuaton of more
than 150,000
Empoyng more than
15 workers 64.00 89.00
Empoyng 11 to 15 workers 60.00 85.00
Empoyng not more than
10 workers 43.00 58.00
Sugar Ms
Agrcuture
Pantaton w/ annua gross
saes of P5M or more 48.50 73.50
Pantaton w/ annua gross
saes of ess than P5M 48.50 68.50
Non-pantaton 43.50 58.50
Busness Enterprses w/ Captazaton
of not more than P500,000 and
empoyng not more than 20 workers
Non-Agrcuture 64.00 79.00
Agrcuture Pantaton
Products Other than Sugar 54.00 69.00
Sugar 48.50
63.50
Prvate Hosptas 60.00 75.00
Reta/Servce
Ctes w/ popuaton of more
than 150,000
Empoyng more than
15 workers 64.00
79.00
Empoyng 11 to 15 workers 60.00 75.00
Muncpates and Ctes
w/ popuaton of not more
than 150,000
Empoyng more than 10
workers 60.00
75.00
SECTION 6. Suggested Formua n Determnng the
Equvaent Monthy Statutory Mnmum Wage Rates.
- Wthout pre|udce to exstng company practces,
agreements or poces, the foowng formua may be
used as gudes n determnng the equvaent
monthy statutory mnmum wage rates:
a) For those who are requred to work everyday
ncudng Sundays or rest days, speca days and
reguar hodays:
Equvaent Appcabe day wage rate (ADR) x 390.90
days
Monthy = -------------------
Rate (EMR) 12
Where 390.90 days =
302 days Ordnary workng days
20 days 10 reguar hodays x 200%
66.30 days 51 rest days x 130%
2.60 days 2 speca days x 130%
390.90 days Tota equvaent number of days.
b) For those who do not work but consdered pad on
rest days, speca days and reguar hodays:
ADR x 365 days
EMR = --------
12
Where 365 days =
302 days Ordnary workng days
51 days Rest days
10 days Reguar hodays
2 days Speca days
365 days Tota equvaent number of days
c) For those who do not work and are not consdered
pad on Sundays or rest days:
ADR x 314 days
EMR = -------
12
Where 314 days =
Duman / Labor I / Prof. Battad / Page 93
302 days Ordnary workng days
10 days Reguar hodays
2 days Speca days (If consdered
pad; If actuay worked,
ths s equvaent to 2.6 days)
314 days Tota equvaent number of days
d) For those who do not work and are not consdered
pad on Saturdays or rest days:
ADR x 262 days
EMR = -------
12
Where 262 days =
250 days Ordnary workng days
10 days Reguar hodays
2 days Speca days (If consdered pad; If actuay
worked, ths s equvaent to 2.6 days)
262 days Tota equvaent number of days
Note: For workers whose rest days fall on 5undays,
the number of rest days in a year is reduced from 52
to 5J days, the last 5unday of August being a regular
holiday under Executive Order No. 20J. For purposes
of computation, said holiday, although still a rest day
for them, is included in the ten regular holidays. For
workers whose rest days do not fall on 5undays, the
number of rest days is 52 days, as there are 52
weeks in a year.
Nothng heren sha be consdered as authorzng the
reducton of benefts granted under exstng
agreements or empoyer practces/poces.
SECTION 7. Bass of Mnmum Wages Rates. - The
statutory mnmum wage rues prescrbed under the
Act sha be for the norma workng hours, whch sha
not exceed eght hours work a day.
SECTION 8. Credtabe Wage Increase. -
a) No wage ncrease sha be credted as compance
wth the ncreases prescrbed under the Act uness
expressy provded under coectve barganng
agreements; and, such wage ncrease was granted
not earer than Apr 1, 1989 but not ater than |uy
1, 1989. Where the wage ncrease granted s ess
than the prescrbed ncrease under the Act, the
empoyer sha pay the dfference.
b) Annversary wage ncrease provded n coectve
agreements, mert wage ncrease, and those
resutng from the reguarzaton or promoton of
empoyees sha not be credted as compance
thereto.
SECTION 9. Workers Pad by Resuts. -
a) A workers pad by resuts, ncudng those who
are pad on pecework, takay, pakyaw, or task bass,
sha receve not ess than the appcabe statutory
mnmum wage rates prescrbed under the Act for
the norma workng hours whch sha not exceed
eght hours work a day, or a proporton thereof for
work of ess than the norma workng hours.
The ad|usted mnmum wage rates for workers pad
by resuts sha be computed n accordance wth the
foowng steps:
1) Amount of ncrease n AMW - Prevous AMW x 100
= % Increase;
2) Exstng rate/pece x % ncrease = ncrease n
rate/pece;
3) Exstng rate/pece + ncrease n rate/pece =
Ad|usted rate/pece.
Where AMW s the appcabe mnmum wage rate.
b) The wage rates of workers who are pad by resuts
sha contnue to be estabshed n accordance wth
Artce 101 of the Labor Code, as amended and ts
mpementng reguatons.
SECTION 10. Wages of Speca Groups of Workers. -
Wages of apprentces, earners and handcapped
workers sha n no case be ess than 75 percent of
the appcabe statutory mnmum wage rates.
A recognzed earnershp and apprentceshp
agreements entered nto before |uy 1, 1989 sha be
consdered as automatcay modfed nsofar as ther
wage causes are concerned to refect the ncreases
prescrbed under the Act.
SECTION 11. Appcaton to Contractors. - In the
case of contracts for constructon pro|ects and for
securty, |antora and smar servces, the
prescrbed wage ncreases sha be borne by the
prncpas or cents of the constructon/servce
contractors and the contract sha be deemed
amended accordngy. In the event, however, that the
prncpa or cent fas to pay the prescrbed wage
rates, the constructon/servce contractor sha be
|onty and severay abe wth hs prncpa or cent.
SECTION 12. Appcaton to Prvate Educatona
Insttuton. - Prvate educatona nsttutons whch
ncreased tuton fees begnnng schoo year 1989-
1990 sha compy wth the P25.00 per day wage
ncrease prescrbed under the Act effectve as
foows:
a) In cases where the tuton fee ncrease was
effected before the effectvty of the Act, the wage
ncrease sha take effect ony |uy 1, 1989.
b) In cases where the tuton fee ncrease was
effected on or after the effectvty of the Act, the
wage ncrease sha take effect not ater than the
date the schoo actuay ncreased tuton but n the
atter case, such wage ncrease may not be made
retroactve n |uy 1, 1989.
Begnnng schoo year 1990-1991, a schoos sha
mpement the wage ncrease regardess of whether
or not they have actuay ncreased tuton fees.
Duman / Labor I / Prof. Battad / Page 94
SECTION 13. Mobe and Branch Workers. - The
statutory mnmum wage rates of workers, who by
the nature of ther work have to trave, sha be those
appcabe n the domce or head offce of the
empoyer.
The mnmum wage rates of workers workng n
branches or agences of estabshments n or outsde
the Natona Capta Regon sha be those appcabe
n the pace where they are statoned.
SECTION 14. Transfer of Personne. - The transfer of
personne to areas outsde the Natona Capta
Regon sha not be a vad ground for the reducton
of the wage rates beng en|oyed by the workers pror
to such transfer. The workers transferred to the
Natona Capta Regon sha be entted to the
mnmum wage rate appcabe theren.
SECTION 15. Exemptons. -
a) The foowng estabshments may be exempted
from compance wth the wage ncrease prescrbed
under the Act:
1) Reta/Servce estabshments reguary empoyng
not more than 10 workers upon appcaton wth and
as determned by the approprate Board n
accordance wth appcabe gudenes to be ssued
by the Commsson.
2) New busness enterprses that may be estabshed
outsde the Natona Capta Regon and export
processng zones from |uy 1, 1989 to |une 30, 1993,
whose operaton or nvestments need nta
assstance may be exempted for not more than three
years from the start of operatons, sub|ect to
gudenes to be ssued by the Secretary n
consutaton wth the Department of Trade and
Industry and the Department of Agrcuture.
New busness enterprses n Regon III (Centra
Luzon) and Regon IV (Southern Tagaog) may be
exempted for two years ony from start of operatons,
except those that may be estabshed n the
provnces of Paawan, Orenta Mndoro, Occdenta
Mndoro, Marnduque, Rombon, Ouezon and Aurora,
whch may aso be exempted for not more than three
years from the start of operatons.
b) Whenever an appcaton for exempton has been
duy fed wth the approprate offce n the
Department/Board, acton by the Regona Offce of
the Department on any compants for aeged non-
compance wth the Act sha be deferred pendng
resouton of the appcant for exempton.
c) In the event that the appcaton for exempton s
not granted, the workers and empoyees sha
receve the approprate compensaton due them as
provded for under the Act pus nterest of one
percent per month retroactve to |uy 1, 1989 or the
start of operatons whchever s appcabe.
SECTION 16. Effects on Exstng Wage Structure. -
Where the appcaton of the wage ncrease
prescrbed heren resuts n dstortons n the wage
structure wthn an estabshment whch gves rse to
a dspute theren, such dspute sha frst be setted
vountary between the partes. In the event of a
deadock, such dspute sha be fnay resoved
through compusory arbtraton by the regona
arbtraton branch of the Natona Labor Reatons
Commsson (NLRC) havng |ursdcton over the
workpace.
The NLRC sha conduct contnuous hearngs and
decde any dspute arsng from wage dstortons
wthn twenty caendar days from the tme sad
dspute s formay submtted to t for arbtraton. The
pendency of a dspute arsng from a wage dstorton
sha not n any way deay the appcabty of the
ncreases n the wage rates prescrbed under the Act.
Any ssue nvovng wage dstorton sha not be a
ground for a strke/ockout.
SECTION 17. Compants for Non-Compance. -
Compants for non-compance wth the wage
ncreases prescrbed under the Act sha be fed wth
the Regona Offces of the Department havng
|ursdcton over the workpace and sha be the
sub|ect of enforcement proceedngs under Artces
128 and 129 of the Labor Code, as amended.
SECTION 18. Conduct of nspecton by the
Department. - The Department sha conduct
nspectons of estabshments, as often as necessary,
to determne whether the workers are pad the
prescrbed wage rates and other benefts granted by
aw or any Wage Order. In the conduct of nspecton
n unonzed companes, Department nspectors sha
aways be accompaned by the presdent or other
responsbe offcer of the recognzed barganng unt
or of any nterested unon. In the case of non-
unonzed estabshments, a worker representng the
workers n the sad company sha accompany the
nspector.
The worker's representatve sha have the rght to
submt hs own fndngs to the Department and to
testfy on the same f he does not concur wth the
fndngs of the abor nspector.
SECTION 19. Payment of Wages. - Upon wrtten
petton of the ma|orty of the workers and
empoyees concerned, a prvate estabshments,
companes, busnesses and other enttes wth at
east twenty workers and ocated wthn one
kometer radus to a commerca, savngs or rura
bank, sha pay the wages and other benefts of ther
workers through any of sad banks, wthn the perod
and n the manner and form prescrbed under the
Labor Code as amended.
SECTION 20. Duty of Bank. - Whenever appcabe
and upon request of concerned worker or unon, the
bank through whch wages and other benefts are
pad ssue a certfcaton of the record of payment of
sad wages and benefts of a partcuar worker or
workers for a partcuar payro perod.
CHAPTER II
The Natona Wages and Productvty Commsson
and Regona Trpartte Wages and Productvty
Boards
SECTION 1. Commsson. - The Natona Wages and
Productvty Commsson created under the Act sha
hod offce n the Natona Capta Regon. The
Commsson sha be attached to the Department for
pocy and program coordnaton.
SECTION 2. Powers and Functons of the Commsson.
- The Commsson sha have the foowng powers
and functons:
a) To act as the natona consutatve and advsory
body to the Presdent of the Phppnes and Congress
on matters reatng to wages, ncomes and
productvty;
Duman / Labor I / Prof. Battad / Page 95
b) To formuate poces and gudenes on wages,
ncomes and productvty mprovement at the
enterprse, ndustry and natona eves;
c) To prescrbe rues and gudenes for the
determnaton of approprate mnmum wage and
productvty measures at the regona, provnca or
ndustry eves;
d) To revew regona wage eves set by the Regona
Trpartte Wages and Productvty Board to determne
f these are n accordance wth prescrbed gudenes
and natona deveopment pans;
e) To undertake studes, researches and surveys
necessary for the attanment of ts functons and
ob|ectves, and to coect and compe data and
perodcay dssemnate nformaton on wages and
productvty and other reated nformaton, ncudng,
but not mted to, empoyment, cost-of-vng, abor
costs, nvestments and returns;
f) To revew pans and programs of the Regona
Trpartte Wages and Productvty Boards to
determne whether these are consstent wth natona
deveopment pans;
g) To exercse technca and admnstratve
supervson over the Regona Trpartte Wages and
Productvty Boards;
h) To ca, from tme to tme, a natona trpartte
conference of representatves of government,
workers and empoyers for the consderaton of
measures to promote wage ratonazaton and
productvty; and
) To exercse such powers and functons as may be
necessary to mpement ths Act.
SECTION 3. Composton of the Commsson. - The
Commsson sha be composed of the Secretary as
ex-offco Charman, the Drector Genera of the
Natona Economc and Deveopment Authorty
(NEDA) as ex-offco Vce-Charman and two
members each from workers and empoyers sectors
who sha be apponted by the Presdent for a term of
fve years upon recommendaton of the Secretary.
The recommendees sha be seected from the sts of
nomnees submtted by the workers' and empoyers'
sectors. The Executve Drector of the Commsson
Secretarat sha be aso a member of the
Commsson.
The members of the Commsson representng abor
and management sha have the same rank,
emouments, aowances and other benefts as those
prescrbed by aw for abor and management
representatves n the Empoyees' Compensaton
Commsson.
SECTION 4. Commsson Secretarat. - The
Commsson sha be asssted by a Secretarat to be
headed by an Executve Drector and two Deputy
Drectors who sha be apponted by the Presdent
upon recommendaton of the Secretary.
The Executve Drector sha have the rank of a
Department Assstant Secretary, whe the Deputy
Drectors that of a Bureau Drector. The Executve
Drector and Deputy Drectors sha receve the
correspondng saary, benefts and other emouments
of the postons.
SECTION 5. Regona Trpartte Wages and
Productvty Boards. - The Regona Wages and
Productvty Boards created under the Act n a
regons, ncudng autonomous regons as may be
estabshed by aw, sha hod offces n areas where
the Regona Offces of the Department are ocated.
SECTION 6. Powers and Functons of the Boards. -
The Boards sha have the foowng powers and
functons:
a) To deveop pans, programs and pro|ects reatve
to wages, ncomes and productvty mprovement for
ther respectve regons;
b) To determne and fx mnmum wage rates
appcabe n ther regon, provnces or ndustres
theren and to ssue the correspondng wage orders,
sub|ect to gudenes ssued by the Commsson;
c) To undertake studes, researches, and surveys
necessary for the attanment of ther functons,
ob|ectves and programs, and to coect and compe
data on wages, ncomes, productvty and other
reated nformaton and perodcay dssemnate the
same;
d) To coordnate wth the other Boards as may be
necessary to attan the pocy and ntenton of the
Labor Code;
e) To receve, process and act on appcatons for
exempton from prescrbed wage rates as may be
provded by aw or any Wage Order; and
f) To exercse such other powers and functons as
may be necessary to carry out ther mandate under
the Labor Code.
Impementaton of the pans, programs and pro|ects
of the Boards sha be through the respectve
Regona Offces of the Department, provded,
however, that the Boards sha have technca
supervson over the Regona Offce of the
Department wth respect to the mpementaton of
these pans, programs and pro|ects.
SECTION 7. Compostons of the Boards. - Each
Board sha be composed of the Regona Drector of
the Department as Charman, the Regona Drectors
of the Natona Economc and Deveopment Authorty
(NEDA) and Department of Trade and Industry (DTI)
as Vce-Charmen and two members each of workers
and empoyers sectors who sha be apponted by the
Presdent for a term of fve years upon the
recommendaton of the Secretary. The
recommendees sha be seected from the st of
nomnees submtted by the workers and empoyers
sectors.
Each Board sha be asssted by a Secretarat.
SECTION 8. Authorty to Organze and Appont
Personne. - The Charman of the Commsson sha
organze such unts and appont the necessary
personne of the Commsson and Board Secretares,
sub|ect to pertnent aws, rues and reguatons.
CHAPTER III
Mnmum Wage Determnaton
SECTION 1. Regona Mnmum Wages. - The
mnmum wage rates for agrcutura and non-
Duman / Labor I / Prof. Battad / Page 96
agrcutura workers and empoyees n every regon
sha be those prescrbed by the Boards whch sha n
no case be ower than the statutory mnmum wage
rates. These wage rates may ncude wages by
ndustry, provnce or ocaty as may be deemed
necessary by the Boards.
SECTION 2. Standards/Crtera for Mnmum Wage
Fxng. - The regona mnmum wages to be
estabshed by the Boards sha be as neary
adequate as s economcay feasbe to mantan the
mnmum standards of vng necessary for the
heath, effcency and genera we-beng of the
workers wthn the framework of the natona
economc and soca deveopment programs. In the
determnaton of regona mnmum wages, the
Boards, sha, among other reevant factors, consder
the foowng:
a) The demand for vng wages;
b) Wage ad|ustment vs-a-vs the consumer prce
ndex;
c) The cost of vng and changes or ncreases
theren;
d) The needs of workers and ther fames;
e) The need to nduce ndustres to nvest n
countrysde;
f) Improvements n standards of vng;
g) The prevang wage eves;
h) Far return of the capta nvested and capacty to
pay of empoyers;
) Effects on empoyment generaton and famy
ncome; and
|) The equtabe dstrbuton of ncome and weath
aong the mperatves of economc and soca
deveopment.
SECTION 3. Wage Order. - Whenever condtons n
the regon so warrant, the Board sha nvestgate
and study a pertnent facts; and, based on
standards and crtera prescrbed heren, sha
determne whether a Wage Order shoud be ssued.
In the performance of ts wage determnng
functons, the Board sha conduct pubc hearngs
and consutatons gvng notces to empoyees' and
empoyers' groups, provnca, cty and muncpa
offcas and other nterested partes.
SECTION 4. Effectvty of Wage Order. - Any Wage
Order ssued by the Board sha take effect 15 days
after ts compete pubcaton n at east one
newspaper of genera crcuaton n the regon.
SECTION 5. Appea to the Commsson. - Any party
aggreved by the Wage Order ssued by the Board
may fe an appea wth the Commsson wthn ten
caendar days from the pubcaton of the Order. The
Commsson sha decde the appea wthn sxty
caendar days from the date of fng.
SECTION 6. Effect of Appea. - The fng of the
appea sha not suspend the effectvty of the Wage
Order uness the person appeang such order fes
wth the Commsson an undertakng wth a surety or
suretes n such amount as may be fxed by the
Commsson.
SECTION 7. Wage Dstortons. - Where the
appcaton of any wage ncrease resutng from a
Wage Order ssued by any Board resuts n dstortons
n the wage structure wthn an estabshment, the
empoyer and the unon sha negotate to correct the
dstortons usng the grevance procedure under ther
coectve barganng agreement. If t remans
unresoved, t sha be decded through vountary
arbtraton ten caendar days from the tme the
dspute was referred for vountary arbtraton, uness
otherwse agreed by the partes n wrtng.
Where there are no coectve agreements or
recognzed abor unons, the empoyer and workers
sha endeavor to correct the wage dstorton. Any
dspute arsng therefrom sha be setted through the
Natona Concaton and Medaton Board and f t
remans unresoved after ten caendar days of
concaton, t sha be referred to the approprate
branch of the Natona Labor Reatons Commsson
(NLRC). The NLRC sha conduct contnuous hearngs
and decde the dspute wthn twenty caendar days
from the tme sad dspute s submtted for
compusory arbtraton.
The pendency of a dspute arsng from a wage
dstorton sha not n any way deay the appcabty
of any wage ncrease prescrbed pursuant to the
provsons of aw or Wage Order.
SECTION 8. Non-Dmnuton of Benefts. - Nothng n
the Act and n these Rues sha be construed to
reduce any exstng aws, decrees, ssuances,
executve orders, and/or under any contract or
agreement between the workers and empoyers.
SECTION 9. Prohbton Aganst In|uncton. - No
premnary or permanent n|uncton or temporary
restranng order may be ssued by any court,
trbuna or other entty aganst any proceedngs
before the Commsson or Boards.
SECTION 10. Pena Provsons. - Any person,
corporaton trust, frm, partnershp, assocaton or
entty whch refuses or fas to pay any of the
prescrbed ncreases or ad|ustments n the wage
rates made n accordance wth the Act sha be
punshed by a fne not exceedng P25,000 and/or
mprsonment of not ess than one year nor more
than two years: Provded, that any person convcted
under the Act sha not be entted to the benefts
provded for under the Probaton Law.
If the voaton s commtted by a corporaton, trust or
frm, partnershp, assocaton or any other entty, the
penaty of mprsonment sha be mposed upon the
entty's responsbe offcers, ncudng, but not mted
to, the presdent, vce-presdent, chef executve
offcer, genera manager, managng drector or
partner.
SECTION 11. Regstraton/Reportng Requrement. -
Any person, company, corporaton, partnershp or
any other entty engaged n busness sha submt
annuay a verfed temzed stng of ther abor
component to the approprate Board and the Natona
Statstcs Offce not ater than |anuary 31 of each
year, startng on |anuary 31, 1990 n accordance wth
the form to be prescrbed by the Commsson. The
stng sha specfy the names, saares and wages of
ther workers and empoyees beow the managera
Duman / Labor I / Prof. Battad / Page 97
eve ncudng earners, apprentces and
dsabed/handcapped workers.
CHAPTER IV
Transtory Provsons
SECTION 1. Aboton of the Natona Wages Counc
and the Natona Productvty Commsson. - The
Natona Wages Counc created under Executve
Order No. 614 and the Natona Productvty
Commsson created under Executve Order No. 615
are aboshed. A propertes, records, equpment,
budngs, factes, and other assets, abtes and
appropratons of and beongng to the
abovementoned offces, as we as other matters
pendng heren, sha be transferred to the
Commsson. A personne of the above aboshed
offces sha contnue to functon n a hod-over
capacty and sha be preferentay consdered for
appontments to or pacements n the
Commsson/Boards.
Any offca or empoyee separated from the servce
as a resut of the aboton of offces pursuant to the
Act sha be entted to approprate separaton pay of
one month saary for every year of servce and/or
retrement and other benefts accrung to them under
exstng aws. In eu thereof, at the opton of the
empoyee, he sha be preferentay consdered for
empoyment n the government or n any of ts
subdvsons, nstrumentates, or agences, ncudng
government owned or controed corporatons and
ther subsdares.
SECTION 2. Interm Processng of Appcatons for
Exempton and Submsson of Reports. - Pendng the
operatonazaton of the Commsson and Boards, the
Natona Wages Counc sha, n the nterm, receve
and process appcatons for exempton sub|ect to
gudenes to be ssued by the Secretary, n
accordance wth Secton 11 of the Act.
Reports of estabshments on ther abor component,
ncudng wages and saares of ther workers
prescrbed under the Act, sha be submtted to the
Natona Wages Counc through the Regona Offces
of the Department.
SECTION 3. Fundng Requrement. - The funds
necessary to carry out the provsons of the Act sha
be taken from the Compensaton and Organzaton
Ad|ustment Fund, the Contngent Fund, and other
savngs under Repubc Act No. 6688, otherwse
known as the Genera Appropratons Act of 1989, or
from any unapproprated funds of the Natona
Treasury; Provded, that the fundng requrements
necessary to mpement the Act sha be ncuded n
the annua Genera Appropratons Act for the
succeedng years.
SECTION 4. Repeang Cause. - A aws, orders,
ssuances, rues and reguatons or parts thereof
nconsstent wth the provsons of the Act and ths
Rues are hereby repeaed, amended or modfed
accordngy. If any provson or part of the Act and
ths Rues, or the appcaton thereof to any person or
crcumstance s hed nvad or unconsttutona, the
remander of the Act and these Rues or the
appcaton of such provson or part thereof to other
persons or crcumstance sha not be affected
thereby.
SECTION 5. Effectvty. - These rues sha take effect
on |uy 1, 1989.
RULE VIII
Payment of Wages
SECTION 1. Manner of wage payment. - As a
genera rue, wages sha be pad n ega tender and
the use of tokens, promssory notes, vouchers,
coupons, or any other form aeged to represent ega
tender s absoutey prohbted even when expressy
requested by the empoyee.
SECTION 2. Payment by check. - Payment of wages
by bank checks, posta checks or money orders s
aowed where such manner of wage payment s
customary on the date of the effectvty of the Code,
where t s so stpuated n a coectve agreement, or
where a of the foowng condtons are met:
(a) There s a bank or other facty for encashment
wthn a radus of one (1) kometer from the
workpace;
(b) The empoyer or any of hs agents or
representatves does not receve any pecunary
beneft drecty or ndrecty from the arrangement;
(c) The empoyees are gven reasonabe tme durng
bankng hours to wthdraw ther wages from the bank
whch tme sha be consdered as compensabe
hours worked f done durng workng hours; and
(d) The payment by check s wth the wrtten consent
of the empoyees concerned f there s no coectve
agreement authorzng the payment of wages by
bank checks.
SECTION 3. Tme of payment. - (a) Wages sha be
pad not ess than once every two (2) weeks or twce
a month at ntervas not exceedng sxteen (16) days,
uness payment cannot be made wth such reguarty
due to force ma|eure or crcumstances beyond the
empoyer's contro n whch case the empoyer sha
pay the wages mmedatey after such force ma|eure
or crcumstances have ceased.
(b) In case of payment of wages by resuts nvovng
work whch cannot be fnshed n two (2) weeks,
payment sha be made at ntervas not exceedng
sxteen days n proporton to the amount of work
competed. Fna settement sha be made
mmedatey upon competon of the work.
SECTION 4. Pace of payment. - As a genera rue,
the pace of payment sha be at or near the pace of
undertakng. Payment n a pace other than the work
pace sha be permssbe ony under the foowng
crcumstances:
(a) When payment cannot be effected at or near the
pace of work by reason of the deteroraton of peace
and order condtons, or by reason of actua or
mpendng emergences caused by fre, food,
epdemc or other caamty renderng payment
thereat mpossbe;
(b) When the empoyer provdes free transportaton
to the empoyees back and forth; and
(c) Under any other anaogous crcumstances;
Provded, That the tme spent by the empoyees n
coectng ther wages sha be consdered as
compensabe hours worked;
Duman / Labor I / Prof. Battad / Page 98
(d) No empoyer sha pay hs empoyees n any bar,
nght or day cub, drnkng estabshment, massage
cnc, dance ha, or other smar paces or n paces
where games are payed wth stakes of money or
thngs representng money except n the case of
persons empoyed n sad paces.
SECTION 5. Drect payment of wages. - Payment of
wages sha be made drect to the empoyee entted
thereto except n the foowng cases:
(a) Where the empoyer s authorzed n wrtng by
the empoyee to pay hs wages to a member of hs
famy;
(b) Where payment to another person of any part of
the empoyee's wages s authorzed by exstng aw,
ncudng payments for the nsurance premums of
the empoyee and unon dues where the rght to
check-off has been recognzed by the empoyer n
accordance wth a coectve agreement or
authorzed n wrtng by the ndvdua empoyees
concerned; or
(c) In case of death of the empoyee as provded n
the succeedng Secton.
SECTION 6. Wages of deceased empoyee. - The
payment of the wages of a deceased empoyee sha
be made to hs hers wthout the necessty of
ntestate proceedngs. When the hers are of age,
they sha execute an affdavt attestng to ther
reatonshp to the deceased and the fact that they
are hs hers to the excuson of a other persons. In
case any of the hers s a mnor, such affdavt sha
be executed n hs behaf by hs natura guardan or
next of kn. Upon presentaton of the affdavt to the
empoyer, he sha make payment to the hers as
representatve of the Secretary of Labor and
Empoyment.
SECTION 7. Cv abty of empoyer and contractors.
- Every empoyer or ndrect empoyer sha be
|onty and severay abe wth hs contractor or sub-
contractor for the unpad wages of the empoyees of
the atter. Such empoyer or ndrect empoyer may
requre the contractor or sub-contractor to furnsh a
bond equa to the cost of abor under contract on
condton that the bond w answer for the wages
due the empoyees shoud the contractor or
subcontractor, as the case may be, fa to pay the
same.
SECTION 8. |ob Contractng. - There s |ob
contractng permssbe under the Code f the
foowng condtons are met:
(a) The contractor carres on an ndependent
busness and undertakes the contract work on hs
own account under hs own responsbty accordng
to hs own manner and method, free from the contro
and drecton of hs empoyer or prncpa n a
matters connected wth the performance of the work
except as to the resuts thereof; and
(b) The contractor has substanta capta or
nvestment n the form of toos, equpment,
machneres, work premses, and other materas
whch are necessary n the conduct of hs busness.
SECTION 9. Labor-ony contractng. - (a) Any person
who undertakes to suppy workers to an empoyer
sha be deemed to be engaged n abor-ony
contractng where such person:
(1) Does not have substanta capta or nvestment
n the form of toos, equpment, machneres, work
premses and other materas; and
(2) The workers recruted and paced by such person
are performng actvtes whch are drecty reated to
the prncpa busness or operatons of the empoyer
n whch workers are habtuay empoyed.
(b) Labor-ony contractng as defned heren s hereby
prohbted and the person actng as contractor sha
be consdered merey as an agent or ntermedary of
the empoyer who sha be responsbe to the workers
n the same manner and extent as f the atter were
drecty empoyed by hm.
(c) For cases not fang under ths Rue, the Secretary
of Labor and Empoyment sha determne through
approprate orders whether or not the contractng
out of abor s permssbe n the ght of the
crcumstances of each case and after consderng the
operatng needs of the empoyer and the rghts of
the workers nvoved. In such case, he may prescrbe
condtons and restrctons to nsure the protecton
and wefare of the workers.
SECTION 10. Payment of wages n case of
bankruptcy. - Unpad wages earned by the
empoyees before the decaraton of bankruptcy or
|udca qudaton of the empoyer's busness sha
be gven frst preference and sha be pad n fu
before other credtors may estabsh any cam to a
share n the assets of the empoyer.
SECTION 11. Attorney's fees. - Attorney's fees n
any |udca or admnstratve proceedngs for the
recovery of wages sha not exceed 10 percent of the
amount awarded. The fees may be deducted from
the tota amount due the wnnng party.
SECTION 12. Non-nterference n dsposa of wages.
- No empoyer sha mt or otherwse nterfere wth
the freedom of any empoyee to dspose of hs wages
and no empoyer sha n any manner obge any of
hs empoyees to patronze any store or ava of the
servces offered by any person.
SECTION 13. Wages deducton. - Deductons from
the wages of the empoyees may be made by the
empoyer n any of the foowng cases:
(a) When the deductons are authorzed by aw,
ncudng deductons for the nsurance premums
advanced by the empoyer n behaf of the empoyee
as we as unon dues where the rght to check-off
has been recognzed by the empoyer or authorzed
n wrtng by the ndvdua empoyee hmsef.
(b) When the deductons are wth the wrtten
authorzaton of the empoyees for payment to the
thrd person and the empoyer agrees to do so;
Provded, That the atter does not receve any
pecunary beneft, drecty or ndrecty, from the
transacton.
SECTION 14. Deducton for oss or damage. - Where
the empoyer s engaged n a trade, occupaton or
busness where the practce of makng deductons or
requrng deposts s recognzed to answer for the
rembursement of oss or damage to toos, materas,
or equpment supped by the empoyer to the
empoyee, the empoyer may make wage deductons
or requre the empoyees to make deposts from
whch deductons sha be made, sub|ect to the
foowng condtons:
Duman / Labor I / Prof. Battad / Page 99
(a) That the empoyee concerned s ceary shown to
be responsbe for the oss or damage;
(b) That the empoyee s gven reasonabe
opportunty to show cause why deducton shoud not
be made;
(c) That the amount of such deducton s far and
reasonabe and sha not exceed the actua oss or
damage; and
(d) That the deducton from the wages of the
empoyee does not exceed 20 percent of the
empoyee's wages n a week.
1. Mnmum Wage, Art. 99; Const., Art. XIII,
Sec. 3
MINIMUM WAGE RATES
ART. 99. Regional minimum wages. - The mnmum
wage rates for agrcutura and non-agrcutura
empoyees and workers n each and every regon of
the country sha be those prescrbed by the Regona
Trpartte Wages and Productvty Boards. (As
amended by Secton 3, Repubc Act No. 6727, |une
9, 1989).
Art XIII, Secton 3. The State sha afford fu
protecton to abor, oca and overseas, organzed
and unorganzed, and promote fu empoyment and
equaty of empoyment opportuntes for a.
It sha guarantee the rghts of a workers to sef-
organzaton, coectve barganng and negotatons,
and peacefu concerted actvtes, ncudng the rght
to strke n accordance wth aw. They sha be
entted to securty of tenure, humane condtons of
work, and a vng wage. They sha aso partcpate n
pocy and decson-makng processes affectng ther
rghts and benefts as may be provded by aw.
The State sha promote the prncpe of shared
responsbty between workers and empoyers and
the preferenta use of vountary modes n settng
dsputes, ncudng concaton, and sha enforce
ther mutua compance therewth to foster ndustra
peace.
The State sha reguate the reatons between
workers and empoyers, recognzng the rght of abor
to ts |ust share n the fruts of producton and the
rght of enterprses to reasonabe returns to
nvestments, and to expanson and growth.
a. Coverage, Arts. 97 (b) (c) (e), 98
ART. 97. Definitions. - As used n ths Tte:
(b) "Employer" ncudes any person actng drecty
or ndrecty n the nterest of an empoyer n
reaton to an empoyee and sha ncude the
government and a ts branches, subdvsons and
nstrumentates, a government-owned or
controed corporatons and nsttutons, as we as
non-proft prvate nsttutons, or organzatons.
(c) "Employee" ncudes any ndvdua empoyed by
an empoyer.
e) "Employ" ncudes to suffer or permt to work.
ART. 98. Application of Title. - Ths Tte sha not
appy to farm tenancy or easehod, domestc
servce and persons workng n ther respectve
homes n neede work or n any cottage ndustry
duy regstered n accordance wth aw.
Phppne Fsheres Deveopment Authorty v.
NLRC, 213 SCRA 621 (1992)
b. Rues
1) Defnton
Chavez v. NLRC, supra
2) No Work, No Pay (A far days wage for a far
days abor)
Akan Eectrc Corp., Inc. v. NLRC, 323 SCRA 259
(2000)
3) Equa Pay for Work of Equa Vaue
Internatona Schoo Aance of Educators v.
Ousumbng, supra
Duman / Labor I / Prof. Battad / Page 100
Bankard Empoyers Unon v. NLRC, 423 SCRA
148 (2004)
4) Form: Agreement for
Compensaton of Servces
Arms Tax v. NLRC, 219 SCRA 306 (1993)
c. Mnmum Wage
1) Determnaton of Compance wth Mnmum
Wage
Iran v. NLRC, 289 SCRA 433 (1998)
2) Factes and
Suppements/Aowances
Mares v. NLRC & PICOP, 305 SCRA 500 (1999)
3) Cash Wage/Commsson
Songco v. NLRC, 183 SCRA 610 (1990)
Duman / Labor I / Prof. Battad / Page 101
Boe Takeda v. De a Serna, 228 SCRA 329 (1993)
Phppne Dupcators v. NLRC, 241 SCRA 380
(1995)
4) Gratuty and Saary/Wages,
Dfference
Pastc Town Center corp. v. NLRC, 172 SCRA 580
(1989)
5) Effect on Benefts
Davao Fruts Corporaton v. Assocated Labor
Unon, 225 SCRA 562 (1993)
Duman / Labor I / Prof. Battad / Page 102
2. Wage Fxng Machnery
Reference: Wage Ratonazaton Act (RA
6727); Art. 120-127; Omnbus Rues, Book III, Rue IX
RepubIic of the PhiIippines
Congress of the PhiIippines
Metro ManiIa
Second Regular Session
Begun and held in Metro Manila, on Monday, the
twenty-
fifth day of July, nineteen hundred and eighty-eight
[REPUBLIC ACT NO. 6727]
AN ACT TO RATONALZE WAGE POLCY
DETERMNATON BY ESTABLSHNG THE
MECHANSM AND PROPER STANDARDS
THEREFOR, AMENDNG FOR THE PURPOSE
ARTCLE 99 OF, AND NCORPORATNG ARTCLES
120, 121, 122, 123, 124, 126 AND 127 NTO,
PRESDENTAL DECREE NO. 442, AS AMENDED,
OTHERWSE KNOWN AS THE LABOR CODE OF
THE PHLPPNES, FXNG NEW WAGE RATES,
PROVDNG WAGE NCENTVES FOR NDUSTRAL
DSPERSAL TO THE COUNTRYSDE, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled:
Sec. 1. This Act shall be known as the "Wage
Rationalization Act."
Sec. 2. t is hereby declared the policy of the State
to rationalize the fixing of minimum wages and to
promote productivity-improvement and gain-sharing
measures to ensure a decent standard of living for the
workers and their families; to guarantee the rights of
labor to its just share in the fruits of production; to
enhance employment generation in the countryside
through industry dispersal; and to allow business and
industry reasonable returns on investment, expansion
and growth.
The State shall promote collective bargaining as
the primary mode of setting wages and other terms
and conditions of employment; and, whenever
necessary, the minimum wage rates shall be adjusted
in a fair and equitable manner, considering existing
regional disparities in the cost of living and other
socio-economic factors and the national economic
and social development plans.
Sec. 3. n line with the declared policy under this
Act, Article 99 of Presidential Decree No. 442, as
amended, is hereby amended and Articles 120, 121,
122, 123, 124, 126 and 127 are hereby incorporated
into Presidential Decree No. 442, as amended, to
read as follows:
"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."
"Art. 120. Creation of the National Wages and
Productivity Commission. - There is hereby created a
National Wages and Productivity Commission,
hereinafter referred to as the Commission, which shall
be attached to the Department of Labor and
Employment (DOLE) for policy and program
coordination."
"Art. 121. Powers and Functions of the
Commission. - The Commission 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.
Duman / Labor I / Prof. Battad / Page 103
"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-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 Secretariat 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 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."
"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
jurisdiction:
(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 region, 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,
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.
"mplementation 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 Department of Trade and ndustry as vice-
chairmen 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.
"Each Regional Board to be headed by its chairman
shall be assisted by a Secretariat."
"Art. 123. Wage Order. - Whenever conditions in
the region so warrant, 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
(l) newspaper of general circulation in the region.
"n 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 (l0) calendar days from the
publication of such order. t 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 operate to 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."
Duman / Labor I / Prof. Battad / Page 104
"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. n 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--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) mprovements 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.
"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 arbitrator or
panel of voluntary arbitrators within ten (10) calendar
days from the time said dispute was referred to
voluntary arbitration.
"n 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). t 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 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 concerned
to reflect the prescribed wage rates."
"Art. 126. Prohibition Against njunction. - No
preliminary or permanent injunction or temporary
restraining order may be issued by any court, tribunal
or other entity against any proceedings before the
Commission or the Regional Boards."
"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."
Sec. 4. (a) Upon the effectivity of this Act, the
statutory minimum wage rates of all workers and
employees in the private sector, whether agricultural
or non-agricultural, shall be increased by twenty-five
pesos (P25.00) per day, except that workers and
employees in plantation agricultural enterprises
outside of the National Capital Region (NCR) with an
annual gross sales of less than five million pesos
(P5,000,000.00) in the preceding year shall be paid
an increase of twenty pesos (P20.00), and except
further that workers and employees of
cottage/handicraft industries, non-plantation
agricultural enterprises, retail/service establishments
regularly employing not more than ten (10) workers,
and business enterprises with a capitalization of not
more than five hundred thousand pesos
Duman / Labor I / Prof. Battad / Page 105
(P500,000.00) and employing not more than twenty
(20) employees, which are located or operating
outside the NCR, shall be paid only an increase of
fifteen pesos (P15.00): Provided, That those already
receiving above the minimum wage rates up to one
hundred pesos (P100.00) shall also receive an
increase of twenty-five pesos (P25.00) per day, and
except that the workers and employees mentioned in
the first exception clause of this section shall also be
paid only an increase of twenty-pesos (P20.00), and
except further that those employees enumerated in
the second exception clause of this Section shall also
be paid only an increase of fifteen pesos (P15.00):
Provide, further, That the appropriate Regional Board
is hereby authorized to grant additional increases to
the workers and employees mentioned in the
exception clauses of this Section if, on the basis of its
determination pursuant to Article 124 of the Labor
Code such increases are necessary.
(b) The increase of twenty-five pesos (P25.00)
prescribed under this Section shall apply to all
workers and employees entitled to the same in private
educational institutions as soon as they have
increased or are granted authority to increase their
tuition fees during school year 1989-1990. Otherwise,
such increase shall be so applicable not later than the
opening of the next school year beginning 1990.
(c) Exempted from the provisions of this Act are
household or domestic helpers and persons
employed in the personal service of another, including
family drivers.
Retail/service establishments regularly employing
not more than ten (10) workers may be exempted
from the applicability of this Act upon application with
and as determined by the appropriate Regional Board
in accordance with the applicable rules and
regulations issued by the Commission. Whenever an
application for exemption has been duly filed with the
appropriate Regional Board, action on any complaint
for alleged non-compliance with this Act shall be
deferred pending resolution of the application for
exemption by the appropriate Regional Board.
n 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 this Act.
(d) f expressly provided for and agreed upon in the
collective bargaining agreements, all increases in the
daily basic wage rates granted by the employers three
(3) months before the effectivity of this Act shall be
credited as compliance with the increases in the wage
rates prescribed herein, provided that, where such
increases are less than the prescribed increases in
the wage rates under this Act, the employer shall pay
the difference. Such increases shall not include
anniversary wage increases, merit wage increases
and those resulting from the regularization or
promotion of employees.
Where the application of the increases in the wage
rate under this Section results in distortions as
defined under existing laws in the wage structure
within an establishment and gives rise to a dispute
therein, such dispute shall first be settled voluntarily
between the parties and in the event of a deadlock,
the same shall be finally resolved through compulsory
arbitration by the regional arbitration branch of the
National Labor Relations Commission (NLRC) having
jurisdiction over the workplace.
t shall be mandatory for the NLRC to conduct
continuous hearings and decide any dispute arising
under this Section within twenty(20) calendar days
from the time said dispute is formally submitted to it
for arbitration. The pendency of a dispute arising from
a wage distortion shall not in any way delay the
applicability of the increases in the wage rates
prescribed under this Section.
Sec. 5. Within a period of four (4) years from the
effectivity of this Act and without prejudice to
collective bargaining negotiations or agreements or
other employment contracts between employers and
workers, new business enterprises that may be
established outside the NCR and export processing
zones whose operation or investments need initial
assistance as may be determined by the Department
of Labor and Employment in consultation with the
Department of Trade and ndustry or the Department
of Agriculture, as the case may be shall be exempt
from the application of this Act for not more than three
(3) years from the start of their operations: Provided,
That such new business enterprises established in
Region (Central Luzon) and Region V (Southern
Tagalog) shall be exempt from such increases only for
two (2) years from the start of their operations, except
those established in the Provinces of Palawan,
Oriental Mindoro, Occidental Mindoro, Marinduque,
Romblon, Quezon and Aurora, which shall enjoy such
exemption for not more than three (3) years from the
start of their operations.
Sec. 6. n the case of contracts for construction
projects and for security, janitorial and similar
services, the prescribed increases in the wage rates
of the workers shall be borne by the principals or
clients of the construction/service contractors and the
contract shall be deemed amended accordingly. n the
event, however, that the principal or client fails to pay
the prescribed wage rates, the construction/service
contractor shall be jointly and severally liable with his
principal or client.
Sec. 7. Upon written petition of the majority of the
employees or workers concerned, all private
establishments, companies, businesses, and other
entities with twenty five (25) or more employees and
located within one (1) kilometer radius to a
commercial, savings or rural bank shall pay the
wages and other benefits of their employees through
any of said banks and within the period for payment of
wages fixed by Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the
Philippines.
Sec. 8. Whenever applicable and upon request of a
concerned worker or union, the bank shall issue a
certification of the record of payment of wages of a
particular worker or workers for a particular payroll
period.
Sec. 9. The Department of Labor and Employment
shall conduct inspections as often as possible within
its manpower constraint of the payroll and other
Duman / Labor I / Prof. Battad / Page 106
financial records kept by the company or business to
determine whether the workers are paid the
prescribed wage rates and other benefits granted by
law or any Wage Order. n unionized companies, the
Department of Labor and Employment inspectors
shall always be accompanied by the president or any
responsible officer of the recognized bargaining unit
of any interested union in the conduct of the
inspection. n non-unionized companies,
establishments or businesses, the inspection shall be
carried out in the presence of a worker representing
the workers in the said company. The workers'
representative shall have the right to submit his own
findings to the Department of Labor and Employment
and to testify on the same if he cannot concur with the
findings of the labor inspector.
Sec. 10. The funds necessary to carry out the
provisions of this Act shall be taken from the
Compensation and Organizational Adjustment Fund,
the Contingent Fund, and other savings under
Republic Act No. 6688, otherwise known as the
General Appropriations Act of 1989, or from any
unappropriated funds of the National Treasury:
Provided, That the funding requirements necessary to
implement this Act shall be included in the annual
General Appropriations Act for the succeeding years.
Sec. 11. The National Wages Council created
under Executive Order No. 614 and the National
Productivity Commission created under Executive
Order No. 615 are hereby abolished. All properties,
records, equipment, buildings, facilities, and other
assets, liabilities and appropriations of and belonging
to the abovementioned offices, as well as other
matters pending therein, shall be transferred to the
Commission. All personnel of the above abolished
offices shall continue to function in a holdover
capacity and shall be preferentially considered for
appointments to or placement in the Commission.
Any official or employee separated from the service
as a result of the abolition of offices pursuant to this
Act shall be entitled to appropriate separation pay and
retirement and other benefits accruing to them under
existing laws. n lieu thereof, at the option of the
employee, he shall be preferentially considered for
employment in the government or in any of its
subdivisions, instrumentalities, or agencies, including
government-owned or controlled corporations and
their subsidiaries.
Sec. 12. Any person, corporation, trust, firm,
partnership, association or entity which refuses or
fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance
with this Act shall be punished by a fine not exceeding
twenty-five thousand pesos (P25,000.00) and/or
imprisonment of not less than one (1) year nor more
than two (2) years: Provided, That any person
convicted under this Act shall not be entitled to the
benefits provided for under the Probation Law.
f the violation is committed by a corporation, trust
or firm, partnership, association or any other entity,
the penalty of imprisonment shall be imposed upon
the entity's responsible officers, including, but not
limited to, the president, vice president, chief
executive officer, general manager, managing director
or partner.
Sec. 13. The Secretary of Labor and Employment
shall promulgate the necessary rules and regulations
to implement the provisions of this Act.
Sec. 14. All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed, amended
or modified accordingly. n any provision or part of this
Act, or the application thereof to any person or
circumstance, is held invalid or unconstitutional, the
remainder of this Act or the application of such
provision or part thereof to other persons or
circumstances shall not be affected thereby.
Nothing in this Act shall be construed to reduce any
existing wage rates, allowances and benefits of any
form under existing laws, decrees, issuances,
executive orders, and/or under any contract or
agreement between the workers and employers.
Sec. 15. This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or
in at least two (2) national newspapers of general
circulation, whichever comes earlier.
WAGE STUDIES, WAGE
AGREEMENTS
AND WAGE DETERMINATION
ART. 120. Creation of National Wages and
Productivity Commission. - There s hereby created a
Natona Wages and Productvty Commsson,
herenafter referred to as the Commsson, whch
sha be attached to the Department of Labor and
Empoyment (DOLE) for pocy and program
coordnaton. (As amended by Repubc Act No. 6727,
|une 9, 1989).
ART. 121. Powers and functions of the Commission. -
The Commsson sha have the foowng powers and
functons:
(a) To act as the natona consutatve and advsory
body to the Presdent of the Phppnes and Congress
on matters reatng to wages, ncomes and
productvty;
(b) To formuate poces and gudenes on wages,
ncomes and productvty mprovement at the
enterprse, ndustry and natona eves;
(c) To prescrbe rues and gudenes for the
determnaton of approprate mnmum wage and
productvty measures at the regona, provnca, or
ndustry eves;
(d) To revew regona wage eves set by the Regona
Trpartte Wages and Productvty Boards to
determne f these are n accordance wth prescrbed
gudenes and natona deveopment pans;
(e) To undertake studes, researches and surveys
necessary for the attanment of ts functons and
ob|ectves, and to coect and compe data and
perodcay dssemnate nformaton on wages and
productvty and other reated nformaton, ncudng,
but not mted to, empoyment, cost-of-vng, abor
costs, nvestments and returns;
(f) To revew pans and programs of the Regona
Trpartte Wages and Productvty Boards to
Duman / Labor I / Prof. Battad / Page 107
determne whether these are consstent wth natona
deveopment pans;
(g) To exercse technca and admnstratve
supervson over the Regona Trpartte Wages and
Productvty Boards;chan robes vrtua aw brary
(h) To ca, from tme to tme, a natona trpartte
conference of representatves of government,
workers and empoyers for the consderaton of
measures to promote wage ratonazaton and
productvty; and
() To exercse such powers and functons as may be
necessary to mpement ths Act.
The Commsson sha be composed of the Secretary
of Labor and Empoyment as ex-officio charman, the
Drector-Genera of the Natona Economc and
Deveopment Authorty (NEDA) as ex-officio vce-
charman, and two (2) members each from workers
and empoyers sectors who sha be apponted by
the Presdent of the Phppnes upon
recommendaton of the Secretary of Labor and
Empoyment to be made on the bass of the st of
nomnees submtted by the workers and empoyers
sectors, respectvey, and who sha serve for a term
of fve (5) years. The Executve Drector of the
Commsson sha aso be a member of the
Commsson.
The Commsson sha be asssted by a Secretarat to
be headed by an Executve Drector and two (2)
Deputy Drectors, who sha be apponted by the
Presdent of the Phppnes, upon the
recommendaton of the Secretary of Labor and
Empoyment.
The Executve Drector sha have the same rank,
saary, benefts and other emouments as that of a
Department Assstant Secretary, whe the Deputy
Drectors sha have the same rank, saary, benefts
and other emouments as that of a Bureau Drector.
The members of the Commsson representng abor
and management sha have the same rank,
emouments, aowances and other benefts as those
prescrbed by aw for abor and management
representatves n the Empoyees Compensaton
Commsson. (As amended by Repubc Act No. 6727,
|une 9, 1989).
ART. 122. Creation of Regional Tripartite Wages and
Productivity 8oards. - There s hereby created
Regona Trpartte Wages and Productvty Boards,
herenafter referred to as Regona Boards, n a
regons, ncudng autonomous regons as may be
estabshed by aw. The Commsson sha determne
the offces/headquarters of the respectve Regona
Boards.
The Regona Boards sha have the foowng powers
and functons n ther respectve terrtora
|ursdctons:
(a) To deveop pans, programs and pro|ects reatve
to wages, ncomes and productvty mprovement for
ther respectve regons;
(b) To determne and fx mnmum wage rates
appcabe n ther regons, provnces or ndustres
theren and to ssue the correspondng wage orders,
sub|ect to gudenes ssued by the Commsson;
(c) To undertake studes, researches, and surveys
necessary for the attanment of ther functons,
ob|ectves and programs, and to coect and compe
data on wages, ncomes, productvty and other
reated nformaton and perodcay dssemnate the
same;
(d) To coordnate wth the other Regona Boards as
may be necessary to attan the pocy and ntenton
of ths Code;
(e) To receve, process and act on appcatons for
exempton from prescrbed wage rates as may be
provded by aw or any Wage Order; and
(f) To exercse such other powers and functons as
may be necessary to carry out ther mandate under
ths Code.
Impementaton of the pans, programs, and pro|ects
of the Regona Boards referred to n the second
paragraph, etter (a) of ths Artce, sha be through
the respectve regona offces of the Department of
Labor and Empoyment wthn ther terrtora
|ursdcton; Provided, however, That the Regona
Boards sha have technca supervson over the
regona offce of the Department of Labor and
Empoyment wth respect to the mpementaton of
sad pans, programs and pro|ects.
Each Regona Board sha be composed of the
Regona Drector of the Department of Labor and
Empoyment as charman, the Regona Drectors of
the Natona Economc and Deveopment Authorty
and the Department of Trade and Industry as vce-
charmen and two (2) members each from workers
and empoyers sectors who sha be apponted by
the Presdent of the Phppnes, upon the
recommendaton of the Secretary of Labor and
Empoyment, to be made on the bass of the st of
nomnees submtted by the workers and empoyers
sectors, respectvey, and who sha serve for a term
of fve (5) years.
Each Regona Board to be headed by ts charman
sha be asssted by a Secretarat. (As amended by
Repubc Act No. 6727, |une 9, 1989).
ART. 123. Wage Order. - Whenever condtons n the
regon so warrant, the Regona Board sha
nvestgate and study a pertnent facts; and based
on the standards and crtera heren prescrbed, sha
proceed to determne whether a Wage Order shoud
be ssued. Any such Wage Order sha take effect
after ffteen (15) days from ts compete pubcaton
n at east one (1) newspaper of genera crcuaton n
the regon.
In the performance of ts wage-determnng
functons, the Regona Board sha conduct pubc
hearngs/consutatons, gvng notces to empoyees
and empoyers groups, provnca, cty and muncpa
offcas and other nterested partes.
Any party aggreved by the Wage Order ssued by
the Regona Board may appea such order to the
Commsson wthn ten (10) caendar days from the
pubcaton of such order. It sha be mandatory for
the Commsson to decde such appea wthn sxty
(60) caendar days from the fng thereof.
The fng of the appea does not stay the order
uness the person appeang such order sha fe wth
the Commsson, an undertakng wth a surety or
suretes satsfactory to the Commsson for the
Duman / Labor I / Prof. Battad / Page 108
payment to the empoyees affected by the order of
the correspondng ncrease, n the event such order
s affrmed. (As amended by Repubc Act No. 6727,
|une 9, 1989).
ART. 124. 5tandards/Criteria for minimum wage
fixing. - The regona mnmum wages to be
estabshed by the Regona Board sha be as neary
adequate as s economcay feasbe to mantan the
mnmum standards of vng necessary for the
heath, effcency and genera we-beng of the
empoyees wthn the framework of the natona
economc and soca deveopment program. In the
determnaton of such regona mnmum wages, the
Regona Board sha, among other reevant factors,
consder the foowng:

(a) The demand for vng wages;
(b) Wage ad|ustment vis--vis the consumer prce
ndex;
(c) The cost of vng and changes or ncreases
theren;
(d) The needs of workers and ther fames;
(e) The need to nduce ndustres to nvest n the
countrysde;
(f) Improvements n standards of vng;
(g) The prevang wage eves;
(h) Far return of the capta nvested and capacty to
pay of empoyers;
() Effects on empoyment generaton and famy
ncome; and
(|) The equtabe dstrbuton of ncome and weath
aong the mperatves of economc and soca
deveopment.

The wages prescrbed n accordance wth the
provsons of ths Tte sha be the standard
prevang mnmum wages n every regon. These
wages sha ncude wages varyng wth ndustres,
provnces or ocates f n the |udgment of the
Regona Board, condtons make such oca
dfferentaton proper and necessary to effectuate
the purpose of ths Tte.
Any person, company, corporaton, partnershp or
any other entty engaged n busness sha fe and
regster annuay wth the approprate Regona
Board, Commsson and the Natona Statstcs Offce,
an temzed stng of ther abor component,
specfyng the names of ther workers and empoyees
beow the managera eve, ncudng earners,
apprentces and dsabed/handcapped workers who
were hred under the terms prescrbed n the
empoyment contracts, and ther correspondng
saares and wages.
Where the appcaton of any prescrbed wage
ncrease by vrtue of a aw or wage order ssued by
any Regona Board resuts n dstortons of the wage
structure wthn an estabshment, the empoyer and
the unon sha negotate to correct the dstortons.
Any dspute arsng from wage dstortons sha be
resoved through the grevance procedure under
ther coectve barganng agreement and, f t
remans unresoved, through vountary arbtraton.
Uness otherwse agreed by the partes n wrtng,
such dspute sha be decded by the vountary
arbtrators wthn ten (10) caendar days from the
tme sad dspute was referred to vountary
arbtraton.
In cases where there are no coectve agreements or
recognzed abor unons, the empoyers and workers
sha endeavor to correct such dstortons. Any
dspute arsng therefrom sha be setted through the
Natona Concaton and Medaton Board and, f t
remans unresoved after ten (10) caendar days of
concaton, sha be referred to the approprate
branch of the Natona Labor Reatons Commsson
(NLRC). It sha be mandatory for the NLRC to
conduct contnuous hearngs and decde the dspute
wthn twenty (20) caendar days from the tme sad
dspute s submtted for compusory arbtraton.
The pendency of a dspute arsng from a wage
dstorton sha not n any way deay the appcabty
of any ncrease n prescrbed wage rates pursuant to
the provsons of aw or wage order.
As used heren, a wage dstorton sha mean a
stuaton where an ncrease n prescrbed wage rates
resuts n the emnaton or severe contracton of
ntentona quanttatve dfferences n wage or saary
rates between and among empoyee groups n an
estabshment as to effectvey obterate the
dstnctons emboded n such wage structure based
on sks, ength of servce, or other ogca bases of
dfferentaton.
A workers pad by resut, ncudng those who are
pad on pecework, takay, pakyaw or task bass, sha
receve not ess than the prescrbed wage rates per
eght (8) hours of work a day, or a proporton thereof
for workng ess than eght (8) hours.
A recognzed earnershp and apprentceshp
agreements sha be consdered automatcay
modfed nsofar as ther wage causes are concerned
to refect the prescrbed wage rates. (As amended by
Repubc Act No. 6727, |une 9, 1989).
ART. 125. Freedom to bargain. - No wage order sha
be construed to prevent workers n partcuar frms or
enterprses or ndustres from barganng for hgher
wages wth ther respectve empoyers. (As amended
by Repubc Act No. 6727, |une 9, 1989).
ART. 126. Prohibition against injunction. - No
premnary or permanent n|uncton or temporary
restranng order may be ssued by any court,
trbuna or other entty aganst any proceedngs
before the Commsson or the Regona Boards. (As
amended by Repubc Act No. 6727, |une 9, 1989).
ART. 127. Non-diminution of benefits. - No wage order
ssued by any regona board sha provde for wage
rates ower than the statutory mnmum wage rates
prescrbed by Congress. (As amended by Repubc
Act No. 6727, |une 9, 1989).
RULE IX
Wage Studes and Determnaton
SECTION 1. Defnton of terms. - (a) "Industry" sha
mean any dentfabe group of productve unts or
Duman / Labor I / Prof. Battad / Page 109
enterprses, whether operated for proft or not,
engaged n smar or aed economc actvtes n
whch ndvduas are ganfuy empoyed.
(b) A "branch" of an ndustry s a work, product or
servce groupng thereof whch can be consdered a
dstnct dvson for wage-fxng purposes.
(c) "Substanta number" sha mean such an
apprecabe number of empoyees n an ndustry as,
n the Commsson's opnon, consderng a reevant
facts, may requre acton under Art. 121 of the Code
to effectuate the purposes of wage determnaton,
regardess of the proporton of such empoyees to the
tota number of empoyees n the ndustry.
SECTION 2. Wage studes. - The Natona Wages
Counc sha conduct a contnung study of wage
rates and other economc condtons n a ndustres,
agrcutura and non-agrcutura. The resuts of such
study sha be perodcay dssemnated to the
government, abor and management sectors for ther
nformaton and gudance.
SECTION 3. Wages recommendaton. - If after such
study, the Commsson s of the opnon that a
substanta number of empoyees n any gven
ndustry or branch thereof are recevng wages,
whch athough compyng wth the mnmum
provded by aw, are ess than suffcent to mantan
them n heath, effcency and genera we-beng,
takng nto account, among others, the pecuar
crcumstances of the ndustry and ts geographca
ocaton, the Commsson sha, wth the approva of
the Secretary of Labor and Empoyment, proceed to
determne whether a wage recommendaton shoud
be ssued.
SECTION 4. Crtera for wage fxng. - (a) In addton
to the crtera estabshed by Art. 123 of the Code for
mnmum wage fxng, the Commsson sha
consder, among other factors, soca servces and
benefts gven free to workers and the possbe effect
of a gven ncrease n the mnmum wage on prces,
money suppy, empoyment, abor mobty and
productvty, abor organzaton effcacy, domestc
and foregn trade, and other reevant ndcators of
soca and economc deveopment.
(b) Where a far return to capta nvested cannot be
reasonaby determned, or where the ndustry
concerned s not operated for proft, ts capacty to
pay, takng nto account a resources avaabe to t,
sha be consdered.
SECTION 5. Ouorum. - Three (3) members of the
Commsson, ncudng ts Charman, sha consttute
a quorum to transact the Commsson's busness.
SECTION 6. Commsson actons, number of votes
requred. - The votes of at east three (3) members
of the Commsson sha be necessary to effect any
decson or recommendaton t s authorzed to ssue
under the Code and ths rue: Provded, That n the
nterna reguaton and drecton of the functons of
the Commsson's staff ncudng the conduct of
admnstratve processes and the mantenance of
proper ason and coordnaton wth other
organzatons, the Charman sha not need the
consent of the Commsson or any member thereof.
SECTION 7. Outsde assstance. - The Commsson
may ca upon the assstance and cooperaton of any
government agency or offca, and may nvte any
prvate person or organzaton to furnsh nformaton
n connecton wth ndustry studes and wage fxng
hearngs or n ad of the Commsson's deberatons.
SECTION 8. Schedue of hearngs and notces. - The
Commsson sha prepare a schedue of hearngs for
the recepton of evdence necessary for wage fxng
n an ndustry, ncudng a st of wtnesses that t w
nvte and the date, tme and pace of the hearngs. A
notce thereof to a sectors of the ndustry sha be
gven n the most expedtous manner. It may have
pror consutatons wth abor and management
eaders n the ndustry for the above purpose.
SECTION 9. Unsocted testmony. - Persons who
offer to testfy before the Commsson sha be heard
ony after the Commsson s satsfed, upon bref
premnary examnaton, that they are n possesson
of facts reevant to the sub|ect of nqury. The
Charman, or n other cases, the person conductng
the hearng, sha revse the schedue of hearngs
whenever necessary to acheve ogca sequence of
testmony.
SECTION 10. Compusory processes. - Recourse to
compusory processes under the Revsed
Admnstratve Code to ensure the attendance of
wtnesses and/or the producton of reevant
documentary evdence sha be used ony on
occasons of extreme mportance and after other
means sha have faed, sub|ect to the approva of
the Secretary of Labor and Empoyment.
SECTION 11. Hearngs; where, by whom conducted.
- Commsson hearngs may be conducted by the
Commsson en banc, or, when authorzed by the
Commsson, by any member or hearng offcer
desgnated by the Charman. The hearngs may be
hed wherever the ndustry or branches thereof are
stuated; otherwse they sha be hed n the Greater
Mana Area. The hearngs sha be open to the
pubc.
SECTION 12. Hearngs before snge member or
hearng offcer. - Hearngs conducted by a duy
authorzed member or hearng offcer sha be
consdered as hearngs before the Commsson. The
records of such hearngs sha be submtted to the
Commsson as soon as they are competed,
ndcatng the tme and pace of the hearngs and the
appearances thereat, together wth a bref statement
of the fndngs and recommendatons of the member
or hearng offcer concerned.
SECTION 13. Testmony under oath. - The testmony
of a wtnesses sha be made under oath or
affrmaton and sha be taken down and transcrbed
by a duy apponted stenographc reporter.
SECTION 14. Non-appcabty of technca rues. -
The technca rues of evdence apped by the courts
n proceedngs at aw or equty sha not strcty appy
n any proceedngs conducted before the
Commsson.
SECTION 15. Stpuaton of fact. - Stpuatons of fact
may be admtted wth respect to any matter at ssue
n the proceedngs.
SECTION 16. Documentary evdence. - Wrtten
evdence submtted to the Commsson or any
member or hearng offcer sha be propery marked
to factate dentfcaton.
SECTION 17. Submsson of ndustry-report. - Wthn
sxty (60) workng days from the date of the frst
Duman / Labor I / Prof. Battad / Page 110
hearng, the Commsson sha submt to the
Secretary of Labor and Empoyment an "Industry
Report" whch sha reate n bref the operatons that
ed thereto, the basc fndngs of economc facts
about the ndustry and the recommendatons made
on the bass thereof.
SECTION 18. Acton by the Secretary of Labor and
Empoyment. - Wthn thrty (30) workng days after
the submsson of the "Industry Report," the
Secretary of Labor and Empoyment sha ether
re|ect or approve the recommendaton of the
Commsson n accordance wth Art. 122 of the Code.
If he approves the recommendaton, he sha ssue a
Wage Order adoptng the same, sub|ect to the
approva of the Presdent of the Phppnes,
prescrbng the mnmum wage or wages for the
ndustry concerned.
SECTION 19. Wage Order. - The Wage Order sha
specfy the ndustry or branch to whch the mnmum
wages prescrbed theren sha appy; Provded, That
no defnte rates sha be prescrbed for specfc |ob
ttes n the ndustry.
SECTION 20. Varyng mnmum wages. - To |ustfy
dfferent mnmum wages for dfferent ocates, the
economc and other condtons found n a partcuar
ocaty must not ony be more or ess unform theren
but aso dfferent from those prevang n other
ocates.
SECTION 21. Pubcaton of Wage Order. - Ony such
portons of a Wage Order sha be pubshed as sha
effectvey gve notce to a nterested partes that
such an Order has been ssued, the ndustry affected,
the mnmum wages prescrbed and the date of ts
effectvty.
SECTION 22. Effectvty. - A Wage Order sha
become effectve after ffteen (15) days from ts
pubcaton as provded n Artce 124 of the Code.
SECTION 23. Interna rues of the Commsson. -
Sub|ect to the approva of the Secretary of Labor and
Empoyment, the Natona Wages Counc may ssue
rues and reguatons governng ts nterna
procedure.
a. Ratonae for Wage Ratonazaton, RA 6727,
Sec. 2
Sec. 2. It s hereby decared the pocy of the State to
ratonaze the fxng of mnmum wages and to
promote productvty-mprovement and gan-sharng
measures to ensure a decent standard of vng for
the workers and ther fames; to guarantee the
rghts of abor to ts |ust share n the fruts of
producton; to enhance empoyment generaton n
the countrysde through ndustry dspersa; and to
aow busness and ndustry reasonabe returns on
nvestment, expanson and growth.
The State sha promote coectve barganng as the
prmary mode of settng wages and other terms and
condtons of empoyment; and, whenever necessary,
the mnmum wage rates sha be ad|usted n a far
and equtabe manner, consderng exstng regona
dspartes n the cost of vng and other soco-
economc factors and the natona economc and
soca deveopment pans.
b. Agences n Wage Fxng Machnery
1) Natona Wages and Productvty
Commsson, RA 6727, Sec. 3; Arts. 120, 121, 126
2) Regona Trpartte Wages and Productvty
Board, RA 6727, Sec. 3; Arts. 122, 126
Naspt Lumber Co. v. NLRC, 289 SCRA 667
(1998)
c. Standards/Crtera for Mnmum Wage Fxng, RA
6727, Sec. 3; Art. 124
d. Wage Order, Arts. 123, 124
1) Methods of Fxng
a) Foor Wage method
b) Saary - Ceng Method
Empoyers Confederaton of the Ph. V. Natona
Wage and Productvty Commsson, 201 SCRA
759 (1991)
Duman / Labor I / Prof. Battad / Page 111
2) Vadty
Cagayan Sugar Mng Co. v. Secretary, DOLE,
284 SCRA 150 (1998)
3) Wage Dstorton
Prubankers Assocaton v. Prudenta Bank &
Trust Co., 302 SCRA 74 (1999)
3. Wage Payment and Protecton
a. Form of Payment, Art. 202; Cv Code, Art.
1705; Rue VIII, Secs. 1, 2
ART. 202. Erroneous payment. - (a) If the System n
good fath pays ncome beneft to a dependent who
s nferor n rght to another dependent or wth
whom another dependent s entted to share, such
payments sha dscharge the System from abty,
uness and unt such other dependent notfes the
System of hs cam pror to the payments.
(b) In case of doubt as to the respectve rghts of
rva camants, the System s hereby empowered to
determne as to whom payments shoud be made n
accordance wth such reguatons as the Commsson
may approve. If the money s payabe to a mnor or
ncompetent, payment sha be made by the System
to such person or persons as t may consder to be
best quafed to take care and dspose of the mnors
or ncompetents property for hs beneft.
NCC Art. 1705. The aborer's wages sha be pad n
ega currency.
SECTION 1. Manner of wage payment. - As a
genera rue, wages sha be pad n ega tender and
the use of tokens, promssory notes, vouchers,
coupons, or any other form aeged to represent ega
tender s absoutey prohbted even when expressy
requested by the empoyee.
SECTION 2. Payment by check. - Payment of wages
by bank checks, posta checks or money orders s
aowed where such manner of wage payment s
customary on the date of the effectvty of the Code,
where t s so stpuated n a coectve agreement, or
where a of the foowng condtons are met:
(a) There s a bank or other facty for encashment
wthn a radus of one (1) kometer from the
workpace;
(b) The empoyer or any of hs agents or
representatves does not receve any pecunary
beneft drecty or ndrecty from the arrangement;
(c) The empoyees are gven reasonabe tme durng
bankng hours to wthdraw ther wages from the bank
whch tme sha be consdered as compensabe
hours worked f done durng workng hours; and
(d) The payment by check s wth the wrtten consent
of the empoyees concerned f there s no coectve
agreement authorzng the payment of wages by
bank checks.
Congson v. NLRC, 243 SCRA 260 (1995)
Duman / Labor I / Prof. Battad / Page 112
b. Tme of Payment, Art. 103, Sec. 3
ART. 103. Time of payment. - Wages sha be pad at
east once every two (2) weeks or twce a month at
ntervas not exceedng sxteen (16) days. If on
account of force majeure or crcumstances beyond
the empoyers contro, payment of wages on or
wthn the tme heren provded cannot be made, the
empoyer sha pay the wages mmedatey after such
force majeure or crcumstances have ceased. No
empoyer sha make payment wth ess frequency
than once a month.
The payment of wages of empoyees engaged to
perform a task whch cannot be competed n two (2)
weeks sha be sub|ect to the foowng condtons, n
the absence of a coectve barganng agreement or
arbtraton award:
(1) That payments are made at ntervas not
exceedng sxteen (16) days, n proporton to the
amount of work competed;
(2) That fna settement s made upon competon of
the work.
SECTION 3. Tme of payment. - (a) Wages sha be
pad not ess than once every two (2) weeks or twce
a month at ntervas not exceedng sxteen (16) days,
uness payment cannot be made wth such reguarty
due to force ma|eure or crcumstances beyond the
empoyer's contro n whch case the empoyer sha
pay the wages mmedatey after such force ma|eure
or crcumstances have ceased.
(b) In case of payment of wages by resuts nvovng
work whch cannot be fnshed n two (2) weeks,
payment sha be made at ntervas not exceedng
sxteen days n proporton to the amount of work
competed. Fna settement sha be made
mmedatey upon competon of the work.
c. Pace of Payment, Art. 104, Sec. 4
SECTION 4. Pace of payment. - As a genera rue,
the pace of payment sha be at or near the pace of
undertakng. Payment n a pace other than the work
pace sha be permssbe ony under the foowng
crcumstances:
(a) When payment cannot be effected at or near the
pace of work by reason of the deteroraton of peace
and order condtons, or by reason of actua or
mpendng emergences caused by fre, food,
epdemc or other caamty renderng payment
thereat mpossbe;
(b) When the empoyer provdes free transportaton
to the empoyees back and forth; and
(c) Under any other anaogous crcumstances;
Provded, That the tme spent by the empoyees n
coectng ther wages sha be consdered as
compensabe hours worked;
(d) No empoyer sha pay hs empoyees n any bar,
nght or day cub, drnkng estabshment, massage
cnc, dance ha, or other smar paces or n paces
where games are payed wth stakes of money or
thngs representng money except n the case of
persons empoyed n sad paces.
LC ART. 104. Place of payment. - Payment of wages
sha be made at or near the pace of undertakng,
except as otherwse provded by such reguatons as
the Secretary of Labor and Empoyment may
prescrbe under condtons to ensure greater
protecton of wages.
See: Labor Advsory on Payment of Saares Thru
Automated Teer Machnes (ATM)
d. Person to Pay, Art. 105, Secs. 5, 6
SECTION 5. Drect payment of wages. - Payment of
wages sha be made drect to the empoyee entted
thereto except n the foowng cases:
(a) Where the empoyer s authorzed n wrtng by
the empoyee to pay hs wages to a member of hs
famy;
(b) Where payment to another person of any part of
the empoyee's wages s authorzed by exstng aw,
ncudng payments for the nsurance premums of
the empoyee and unon dues where the rght to
check-off has been recognzed by the empoyer n
accordance wth a coectve agreement or
authorzed n wrtng by the ndvdua empoyees
concerned; or
(c) In case of death of the empoyee as provded n
the succeedng Secton.
SECTION 6. Wages of deceased empoyee. - The
payment of the wages of a deceased empoyee sha
be made to hs hers wthout the necessty of
ntestate proceedngs. When the hers are of age,
they sha execute an affdavt attestng to ther
reatonshp to the deceased and the fact that they
are hs hers to the excuson of a other persons. In
case any of the hers s a mnor, such affdavt sha
be executed n hs behaf by hs natura guardan or
next of kn. Upon presentaton of the affdavt to the
empoyer, he sha make payment to the hers as
representatve of the Secretary of Labor and
Empoyment.
ART. 105. Direct payment of wages. - Wages sha be
pad drecty to the workers to whom they are due,
except:
(a) In cases of force majeure renderng such payment
mpossbe or under other speca crcumstances to
be determned by the Secretary of Labor and
Empoyment n approprate reguatons, n whch
case, the worker may be pad through another
person under wrtten authorty gven by the worker
for the purpose; or
Duman / Labor I / Prof. Battad / Page 113
(b) Where the worker has ded, n whch case, the
empoyer may pay the wages of the deceased worker
to the hers of the atter wthout the necessty of
ntestate proceedngs. The camants, f they are a
of age, sha execute an affdavt attestng to ther
reatonshp to the deceased and the fact that they
are hs hers, to the excuson of a other persons. If
any of the hers s a mnor, the affdavt sha be
executed on hs behaf by hs natura guardan or
next-of-kn. The affdavt sha be presented to the
empoyer who sha make payment through the
Secretary of Labor and Empoyment or hs
representatve. The representatve of the Secretary
of Labor and Empoyment sha act as referee n
dvdng the amount pad among the hers. The
payment of wages under ths Artce sha absove the
empoyer of any further abty wth respect to the
amount pad.
Bermso v. Escano, Inc., 105 Ph. 231 (1959)
4. Wage Prohbtons
a. Wage Interference n Dsposa of Wages, Art.
112; Rue VIII, Sec. 9
a. Wage Interference n Dsposa of Wages,
Art. 112; Rue VIII, Sec. 9
ART. 112. Non-interference in disposal of wages. - No
empoyer sha mt or otherwse nterfere wth the
freedom of any empoyee to dspose of hs wages. He
sha not n any manner force, compe, or obge hs
empoyees to purchase merchandse, commodtes or
other property from any other person, or otherwse
make use of any store or servces of such empoyer
or any other person.
SECTION 9. Labor-ony contractng. - (a) Any person
who undertakes to suppy workers to an empoyer
sha be deemed to be engaged n abor-ony
contractng where such person:
(1) Does not have substanta capta or nvestment
n the form of toos, equpment, machneres, work
premses and other materas; and
(2) The workers recruted and paced by such person
are performng actvtes whch are drecty reated to
the prncpa busness or operatons of the empoyer
n whch workers are habtuay empoyed.
(b) Labor-ony contractng as defned heren s hereby
prohbted and the person actng as contractor sha
be consdered merey as an agent or ntermedary of
the empoyer who sha be responsbe to the workers
n the same manner and extent as f the atter were
drecty empoyed by hm.
(c) For cases not fang under ths Rue, the Secretary
of Labor and Empoyment sha determne through
approprate orders whether or not the contractng
out of abor s permssbe n the ght of the
crcumstances of each case and after consderng the
operatng needs of the empoyer and the rghts of
the workers nvoved. In such case, he may prescrbe
condtons and restrctons to nsure the protecton
and wefare of the workers.
b. Wage Deducton, Art. 113; Rue VIII, Sec. 10
ART. 113. Wage deduction. - No empoyer, n hs own
behaf or n behaf of any person, sha make any
deducton from the wages of hs empoyees, except:
(a) In cases where the worker s nsured wth hs
consent by the empoyer, and the deducton s to
recompense the empoyer for the amount pad by
hm as premum on the nsurance;
(b) For unon dues, n cases where the rght of the
worker or hs unon to check-off has been recognzed
by the empoyer or authorzed n wrtng by the
ndvdua worker concerned; and
(c) In cases where the empoyer s authorzed by aw
or reguatons ssued by the Secretary of Labor and
Empoyment.
SECTION 10. Payment of wages n case of
bankruptcy. - Unpad wages earned by the
empoyees before the decaraton of bankruptcy or
|udca qudaton of the empoyer's busness sha
be gven frst preference and sha be pad n fu
before other credtors may estabsh any cam to a
share n the assets of the empoyer.
Apodaca v. NLRC, 172 SCRA 442 (1989)
c. Requrement to make Deposts for Loss or
Damage, Art. Arts. 114, 115; Rue VIII, Sec. 11
ART. 114. Deposits for loss or damage. - No
empoyer sha requre hs worker to make deposts
from whch deductons sha be made for the
rembursement of oss of or damage to toos,
materas, or equpment supped by the empoyer,
except when the empoyer s engaged n such
trades, occupatons or busness where the practce
Duman / Labor I / Prof. Battad / Page 114
of makng deductons or requrng deposts s a
recognzed one, or s necessary or desrabe as
determned by the Secretary of Labor and
Empoyment n approprate rues and reguatons.
ART. 115. Limitations. - No deducton from the
deposts of an empoyee for the actua amount of
the oss or damage sha be made uness the
empoyee has been heard thereon, and hs
SECTION 11. Attorney's fees. - Attorney's fees n
any |udca or admnstratve proceedngs for the
recovery of wages sha not exceed 10 percent of
the amount awarded. The fees may be deducted
from the tota amount due the wnnng party
responsbty has been ceary shown.
Dentech Manufacturng Corp. NLRC, 172 SCRA
588 (1989)
Fve | Tax v. NLRC, 235 SCRA 556 (1994)
e. Wthhodng of Wages, Art. 116; Cv Code, Art.
1706
ART. 116. Withholding of wages and kickbacks
prohibited. - It sha be unawfu for any person,
drecty or ndrecty, to wthhod any amount from
the wages of a worker or nduce hm to gve up any
part of hs wages by force, steath, ntmdaton,
threat or by any other means whatsoever wthout
the workers consent.
NCC Art. 1706. Wthhodng of the wages, except
for a debt due, sha not be made by the empoyer.
I. Deducton to Ensure Empoyment, Art. 117
ART. 117. Deduction to ensure employment. - It sha
be unawfu to make any deducton from the wages
of any empoyee for the beneft of the empoyer or
hs representatve or ntermedary as consderaton of
a promse of empoyment or retenton n
empoyment.
g. Retaatory Measures, Art. 118
ART. 118. Retaliatory measures. - It sha be unawfu
for an empoyer to refuse to pay or reduce the wages
and benefts, dscharge or n any manner
dscrmnate aganst any empoyee who has fed any
compant or nsttuted any proceedng under ths
Tte or has testfed or s about to testfy n such
proceedngs.
h. Fase Reportng, Art. 119; Rue X, Sec. 13
ART. 119. False reporting. - It sha be unawfu for
any person to make any statement, report, or record
fed or kept pursuant to the provsons of ths Code
knowng such statement, report or record to be fase
n any matera respect.
SECTION 13. Fase reportng. - It sha be unawfu
for any empoyer or any person to make any fase
statement, report or record on matters requred to be
kept or mantaned pursuant to the provsons of ths
Rue.
. Keepng of Empoyees Records n a Pace other
than the Workpace
South Motorsts Enterprses v. Tosoc, 181 SCRA
386 (1990)
j. Garnshment/Executon, Cv Code, Art. 1708
NCC Art. 1708. The aborer's wages sha not be
sub|ect to executon or attachment, except for debts
ncurred for food, sheter, cothng and medca
attendance.
Duman / Labor I / Prof. Battad / Page 115
GAA v. Court of Appeas, 140 SCRA 304 (1985)
Speca Stee Corp. v. Varea, 434 SCRA 19
(2004)
5. Work Preference n the Event of Bankruptcy,
Art. 110; Book III, Rue VIII, Sec. 7; cv Code, Arts.
1207, 2241 (6), 2242 (3), 2244 (2)
LC ART. 110. Worker preference in case of
bankruptcy. - In the event of bankruptcy or
qudaton of an empoyers busness, hs workers
sha en|oy frst preference as regards ther wages
and other monetary cams, any provsons of aw to
the contrary notwthstandng. Such unpad wages
and monetary cams sha be pad n fu before
cams of the government and other credtors may be
pad. (As amended by Secton 1, Repubc Act No.
6715, March 21, 1989).
IRR SECTION 7. Cv abty of empoyer and
contractors. - Every empoyer or ndrect empoyer
sha be |onty and severay abe wth hs
contractor or sub-contractor for the unpad wages of
the empoyees of the atter. Such empoyer or
ndrect empoyer may requre the contractor or sub-
contractor to furnsh a bond equa to the cost of abor
under contract on condton that the bond w answer
for the wages due the empoyees shoud the
contractor or subcontractor, as the case may be, fa
to pay the same.
NCC Art. 2241. Wth reference to specfc movabe
property of the debtor, the foowng cams or ens
sha be preferred:
(6) Cams for aborers' wages, on the goods
manufactured or the work done; xxx
Art. 2242. Wth reference to specfc mmovabe
property and rea rghts of the debtor, the foowng
cams, mortgages and ens sha be preferred, and
sha consttute an encumbrance on the mmovabe
or rea rght:
(3) Cams of aborers, masons, mechancs and other
workmen, as we as of archtects, engneers and
contractors, engaged n the constructon,
reconstructon or repar of budngs, canas or other
works, upon sad budngs, canas or other works;
xxx
Art. 2244. Wth reference to other property, rea and
persona, of the debtor, the foowng cams or
credts sha be preferred n the order named:
(2) Credts for servces rendered the nsovent by
empoyees, aborers, or househod hepers for one
year precedng the commencement of the
proceedngs n nsovency; xxx
Art. 1207. The concurrence of two or more credtors
or of two or more debtors n one and the same
obgaton does not mpy that each one of the former
has a rght to demand, or that each one of the atter
s bound to render, entre compance wth the
prestaton. There s a sodary abty ony when the
obgaton expressy so states, or when the aw or the
nature of the obgaton requres sodarty. (1137a)
Repubc v. Perata, 150 SCRA 37 (1987)
Mana Bankng Corp. v. NLRC, 279 SCRA 602,
621-642 (1997)
Duman / Labor I / Prof. Battad / Page 116
6. Wage Recovery/|ursdcton, arts. 128, 129,
217, 111; Book III, Rue X, Secs. 1-5
ART. 128. Visitorial and enforcement power. - (a) The
Secretary of Labor and Empoyment or hs duy
authorzed representatves, ncudng abor reguaton
offcers, sha have access to empoyers records and
premses at any tme of the day or nght whenever
work s beng undertaken theren, and the rght to
copy therefrom, to queston any empoyee and
nvestgate any fact, condton or matter whch may
be necessary to determne voatons or whch may
ad n the enforcement of ths Code and of any abor
aw, wage order or rues and reguatons ssued
pursuant thereto.
(b) Notwthstandng the provsons of Artces 129
and 217 of ths Code to the contrary, and n cases
where the reatonshp of empoyer-empoyee st
exsts, the Secretary of Labor and Empoyment or hs
duy authorzed representatves sha have the power
to ssue compance orders to gve effect to the abor
standards provsons of ths Code and other abor
egsaton based on the fndngs of abor
empoyment and enforcement offcers or ndustra
safety engneers made n the course of nspecton.
The Secretary or hs duy authorzed representatves
sha ssue wrts of executon to the approprate
authorty for the enforcement of ther orders, except
n cases where the empoyer contests the fndngs of
the abor empoyment and enforcement offcer and
rases ssues supported by documentary proofs whch
were not consdered n the course of nspecton. (As
amended by Repubc Act No. 7730, |une 2, 1994).
An order ssued by the duy authorzed
representatve of the Secretary of Labor and
Empoyment under ths Artce may be appeaed to
the atter. In case sad order nvoves a monetary
award, an appea by the empoyer may be perfected
ony upon the postng of a cash or surety bond ssued
by a reputabe bondng company duy accredted by
the Secretary of Labor and Empoyment n the
amount equvaent to the monetary award n the
order appeaed from. (As amended by Repubc Act
No. 7730, |une 2, 1994).
(c) The Secretary of Labor and Empoyment may
kewse order stoppage of work or suspenson of
operatons of any unt or department of an
estabshment when non-compance wth the aw or
mpementng rues and reguatons poses grave and
mmnent danger to the heath and safety of workers
n the workpace. Wthn twenty-four hours, a hearng
sha be conducted to determne whether an order for
the stoppage of work or suspenson of operatons
sha be fted or not. In case the voaton s
attrbutabe to the faut of the empoyer, he sha pay
the empoyees concerned ther saares or wages
durng the perod of such stoppage of work or
suspenson of operaton.
(d) It sha be unawfu for any person or entty to
obstruct, mpede, deay or otherwse render
neffectve the orders of the Secretary of Labor and
Empoyment or hs duy authorzed representatves
ssued pursuant to the authorty granted under ths
Artce, and no nferor court or entty sha ssue
temporary or permanent n|uncton or restranng
order or otherwse assume |ursdcton over any case
nvovng the enforcement orders ssued n
accordance wth ths Artce.
(e) Any government empoyee found guty of
voaton of, or abuse of authorty, under ths Artce
sha, after approprate admnstratve nvestgaton,
be sub|ect to summary dsmssa from the servce.
(f) The Secretary of Labor and Empoyment may, by
approprate reguatons, requre empoyers to keep
and mantan such empoyment records as may be
necessary n ad of hs vstora and enforcement
powers under ths Code.
ART. 129. Recovery of wages, simple money claims
and other benefits. - Upon compant of any
nterested party, the Regona Drector of the
Department of Labor and Empoyment or any of the
duy authorzed hearng offcers of the Department s
empowered, through summary proceedng and after
due notce, to hear and decde any matter nvovng
the recovery of wages and other monetary cams
and benefts, ncudng ega nterest, owng to an
empoyee or person empoyed n domestc or
househod servce or househeper under ths Code,
arsng from empoyer-empoyee reatons: Provded,
That such compant does not ncude a cam for
renstatement: Provded further, That the aggregate
money cams of each empoyee or househeper does
not exceed Fve thousand pesos (P5,000.00). The
Regona Drector or hearng offcer sha decde or
resove the compant wthn thrty (30) caendar days
from the date of the fng of the same. Any sum thus
recovered on behaf of any empoyee or househeper
pursuant to ths Artce sha be hed n a speca
depost account by, and sha be pad on order of, the
Secretary of Labor and Empoyment or the Regona
Drector drecty to the empoyee or househeper
concerned. Any such sum not pad to the empoyee
or househeper because he cannot be ocated after
dgent and reasonabe effort to ocate hm wthn a
perod of three (3) years, sha be hed as a speca
fund of the Department of Labor and Empoyment to
be used excusvey for the ameoraton and beneft
of workers.
Any decson or resouton of the Regona Drector or
hearng offcer pursuant to ths provson may be
appeaed on the same grounds provded n Artce
223 of ths Code, wthn fve (5) caendar days from
recept of a copy of sad decson or resouton, to the
Natona Labor Reatons Commsson whch sha
resove the appea wthn ten (10) caendar days from
the submsson of the ast peadng requred or
aowed under ts rues.chan robes vrtua aw brary
Duman / Labor I / Prof. Battad / Page 117
The Secretary of Labor and Empoyment or hs duy
authorzed representatve may supervse the
payment of unpad wages and other monetary cams
and benefts, ncudng ega nterest, found owng to
any empoyee or househeper under ths Code. (As
amended by Secton 2, Repubc Act No. 6715, March
21, 1989).
ART. 217. jurisdiction of the Labor Arbiters and the
Commission. - (a) Except as otherwse provded
under ths Code, the Labor Arbters sha have
orgna and excusve |ursdcton to hear and decde,
wthn thrty (30) caendar days after the submsson
of the case by the partes for decson wthout
extenson, even n the absence of stenographc
notes, the foowng cases nvovng a workers,
whether agrcutura or non-agrcutura:
1. Unfar abor practce cases;
2. Termnaton dsputes;
3. If accompaned wth a cam for renstatement,
those cases that workers may fe nvovng wages,
rates of pay, hours of work and other terms and
condtons of empoyment;
4. Cams for actua, mora, exempary and other
forms of damages arsng from the empoyer-
empoyee reatons;
5. Cases arsng from any voaton of Artce 264 of
ths Code, ncudng questons nvovng the egaty
of strkes and ockouts; and
6. Except cams for Empoyees Compensaton, Soca
Securty, Medcare and maternty benefts, a other
cams arsng from empoyer-empoyee reatons,
ncudng those of persons n domestc or househod
servce, nvovng an amount exceedng fve
thousand pesos (P5,000.00) regardess of whether
accompaned wth a cam for renstatement.
(b) The Commission shall have exclusive appellate jurisdiction
over all cases decided by Labor Arbiters.
(c) Cases arsng from the nterpretaton or
mpementaton of coectve barganng agreements
and those arsng from the nterpretaton or
enforcement of company personne poces sha be
dsposed of by the Labor Arbter by referrng the
same to the grevance machnery and vountary
arbtraton as may be provded n sad agreements.
(As amended by Secton 9, Repubc Act No. 6715,
March 21, 1989).
ART. 111. Attorneys fees. - (a) In cases of unawfu
wthhodng of wages, the cupabe party may be
assessed attorneys fees equvaent to ten percent of
the amount of wages recovered.
SECTION 1. Vstora power. - The Secretary of
Labor and Empoyment or hs duy authorzed
representatves, ncudng Labor Reguatons Offcers
or Industra Safety Engneers, sha have access to
empoyer's records and premses at any tme of the
day or nght whenever work s beng undertaken
theren, and rght to copy therefrom, to queston any
empoyee, and to nvestgate any fact, condton or
matter reevant to the enforcement of any provson
of the Code and of any abor aw, wage order or rues
and reguatons ssued pursuant thereto.
SECTION 2. Enforcement power. - (a) The Regona
Drector n cases where empoyer reatons sha
exst, sha have the power to order and admnster,
after due notce and hearng, compance wth the
abor standards provsons of the Code and other
abor egsatons based on the fndngs of the Labor
Reguaton Offcers or Industra Safety Engneers
(Labor Standard and Wefare Offcer) and made n the
course of nspecton, and to ssue wrts of executon
to the approprate authorty of the enforcement of hs
order. In ne wth the provsons of Artce 128 n
reaton to Artces 289 and 290 of the Labor Code as
amended n cases, however, where the empoyer
contests the fndngs of the Labor Standards and
Wefare Offcers and rases ssues whch cannot be
resoved wthout consderng evdentary matters
that are not verfabe n the norma course of
nspecton, the Regona Drector concerned sha
ndorse the case to the approprate arbtraton
branch of the Natona Labor Reatons Commsson
for ad|udcaton.
(b) The Regona Drector sha gve the empoyer
ffteen (15) days wthn whch to compy wth hs
order before ssung a wrt of executon. Copy of such
order or wrt of executon sha mmedatey be
furnshed the Secretary of Labor and Empoyment.
SECTION 3. Enforcement power on heath and safety
of workers. - (a) The Regona Drector may kewse
order stoppage of work or suspenson of operatons
of any unt or department of an estabshment when
non-compance wth the aw, safety order or
mpementng rues and reguatons poses grave and
mmnent danger to the heath and safety of workers
n the workpace.
(b) Wthn 24 hours from ssuance of the order of
stoppage or suspenson, a hearng sha be
conducted to determne whether the order for the
stoppage of work or suspenson of operaton sha be
fted or not. The proceedngs sha be termnated
wthn seventy-two (72) hours and a copy of such
order or resouton sha be mmedatey furnshed
the Secretary of Labor and Empoyment. In case the
voaton s attrbutabe to the faut of the empoyer,
he sha pay the empoyees concerned ther saares
or wages durng the perod of such stoppage of work
or suspenson of operaton.
SECTION 4. Power to revew. - (a) The Secretary of
Labor and Empoyment, at hs own ntatve or upon
request of the empoyer and/or empoyee, may
revew the order of the Regona Drector. The order
of the Regona Drector sha be mmedatey fna
and executory uness stayed by the Secretary of
Labor and Empoyment upon postng by the
empoyer of a reasonabe cash or surety bond as
fxed by the Regona Drector.
(b) In ad of hs power of revew, the Secretary of
Labor and Empoyment may drect the Bureau of
Workng Condtons to evauate the fndngs or orders
of the Regona Drector. The decson of the
Secretary of Labor and Empoyment sha be fna and
executory.
SECTION 5. Interference and n|unctons prohbted.
- It sha be unawfu for any person or entty to
obstruct, mpede, deay or otherwse render
neffectve the exercse of the enforcement power of
the Secretary of Labor and Empoyment, Regona
Drector or ther duy authorzed representatves
pursuant to the authorty granted by the Code and ts
mpementng rues and reguatons, and no nferor
court or entty sha ssue temporary or permanent
n|uncton or restranng order or otherwse assume
Duman / Labor I / Prof. Battad / Page 118
|ursdcton over any case nvovng the enforcement
orders ssued n accordance wth the Code. In
addton to the penates provded for by the Labor
Code, any government empoyees found guty of
voaton or abuse of authorty, sha be sub|ect to the
provsons of Presdenta Decree No. 6.
Crneo Bowng Paza v. Gerry Sensng, supra
San Mgue Corporaton v. Court of Appeas,
supra
Guco v. Sec. of Labor, 298 SCRA 667 (1998)
H. Thirteenth Month Pay
1. Hstory of the Law
Dentech Mfg. Corp. v. NLRC, supra
2. Coverage
Arches Manufacturng Corp. v, NLRC, 244 SCRA
750 (1995)
Utra Va Food Haus v. Genston, 309 SCRA 17
(1999)
3. Ratonae, PD 851, Whereas
Causes and LImtatons
WHEREA5, t s necessary to further protect the eve
of rea wages from the ravage of wordwde nfaton;

WHEREA5, there has been no ncrease n the ega
mnmum wage rates snce 1970;

WHEREA5, the Chrstmas season s an opportune
tme for socety to show ts concern for the pght of
the workng masses so they may propery ceebrate
Chrstmas and New Year.

Secton 1. A empoyers are hereby requred to pay
a ther empoyees recevng a basc saary of not
more than P1,000 a month, regardess of the nature
of ther empoyment, a 13th-month pay not ater
than December 24 of every year.

Sec. 2. Empoyers aready payng ther empoyees a
13th-month pay or ts equvaent are not covered by
ths Decree.
Duman / Labor I / Prof. Battad / Page 119
4. Amount and Date of Payment
a. Basc Wage/Commssons
Boe Takeda v. Dea Serna, 5upra
Iran v. NLRC, supra
Honda Phppnes Inc. v. Samahan ng Maayang
Manggagawa sa Honda, 460 SCRA 186 (2005)
b. Substtute Payment
Framans Farms, Inc. v. NLRC, 171 SCRA 87
(1989)
c. 14
th
Month Pay
Kamaya Port Hote v. NLRC, 177 SCRA 160
(1989)
d. Dmnuton
Davao Fruts Corp. v. Assocated Labor Unons,
supra
l. Bonus
1. Nature
Phppne Dupcators Inc. v. NLRC, 241 SCRA
380 (1995)
2. Defnton; When Demandabe
Marcos v. NLRC, 248 SCRA 146 (1995)
Duman / Labor I / Prof. Battad / Page 120
Busness Informaton Systems and Servces, Inc.
v. NLRC, 221 SCRA 9 (1993)Phppne Appance
Corp. v. Court of Appeas, 430 SCRA 525 (2004)
Amercan Wre and Cabe Day Rated Empoyees
Unon v. Amercan Wre and Cabe Co., Inc., 457
SCRA 684 (2005)
]. Working Conditions for Special Group
of Workers
1. Women, Arts. 130-138; Omnbus Rues, Book
III, Rue XII, Sec. 1; Consttuton, Arts. II, Sec. 13 &
XIII, Sec. 14; Conventon on the Emnaton of A
Forms of Dscrmnaton Aganst Women (CEDAW),
Arts. 11-13; ILO Conventon Nos. 100 & 111
Chapter I
EMPLOYMENT OF WOMEN
ART. 130. Nightwork prohibition. - No woman,
regardess of age, sha be empoyed or permtted or
suffered to work, wth or wthout compensaton:
(a) In any ndustra undertakng or branch thereof
between ten ocock at nght and sx ocock n the
mornng of the foowng day; or
(b) In any commerca or non-ndustra undertakng
or branch thereof, other than agrcutura, between
mdnght and sx ocock n the mornng of the
foowng day; or
(c) In any agrcutura undertakng at nghttme
uness she s gven a perod of rest of not ess than
nne (9) consecutve hours.
ART. 131. Exceptions. - The prohbtons prescrbed by
the precedng Artce sha not appy n any of the
foowng cases:
(a) In cases of actua or mpendng emergences
caused by serous accdent, fre, food, typhoon,
earthquake, epdemc or other dsasters or caamty,
to prevent oss of fe or property, or n cases of force
majeure or mmnent danger to pubc safety;
(b) In case of urgent work to be performed on
machneres, equpment or nstaaton, to avod
serous oss whch the empoyer woud otherwse
suffer;
(c) Where the work s necessary to prevent serous
oss of pershabe goods;
(d) Where the woman empoyee hods a responsbe
poston of managera or technca nature, or where
the woman empoyee has been engaged to provde
heath and wefare servces;
(e) Where the nature of the work requres the manua
sk and dexterty of women workers and the same
cannot be performed wth equa effcency by mae
workers;
(f) Where the women empoyees are mmedate
members of the famy operatng the estabshment
or undertakng; and
(g) Under other anaogous cases exempted by the
Secretary of Labor and Empoyment n approprate
reguatons.
ART. 132. Facilities for women. - The Secretary of
Labor and Empoyment sha estabsh standards that
w ensure the safety and heath of women
empoyees. In approprate cases, he sha, by
reguatons, requre any empoyer to:
(a) Provde seats proper for women and permt them
to use such seats when they are free from work and
durng workng hours, provded they can perform
ther dutes n ths poston wthout detrment to
effcency;
(b) To estabsh separate toet rooms and avatores
for men and women and provde at east a dressng
room for women;
(c) To estabsh a nursery n a workpace for the
beneft of the women empoyees theren; and
(d) To determne approprate mnmum age and other
standards for retrement or termnaton n speca
occupatons such as those of fght attendants and
the ke.
ART. 133. Maternity leave benefits. - (a) Every
empoyer sha grant to any pregnant woman
empoyee who has rendered an aggregate servce of
at east sx (6) months for the ast tweve (12)
months, maternty eave of at east two (2) weeks
pror to the expected date of devery and another
four (4) weeks after norma devery or aborton wth
fu pay based on her reguar or average weeky
wages. The empoyer may requre from any woman
Duman / Labor I / Prof. Battad / Page 121
empoyee appyng for maternty eave the
producton of a medca certfcate statng that
devery w probaby take pace wthn two weeks.
(b) The maternty eave sha be extended wthout
pay on account of ness medcay certfed to arse
out of the pregnancy, devery, aborton or
mscarrage, whch renders the woman unft for work,
uness she has earned unused eave credts from
whch such extended eave may be charged.
(c) The maternty eave provded n ths Artce sha
be pad by the empoyer ony for the frst four (4)
deveres by a woman empoyee after the effectvty
of ths Code.
ART. 134. Family planning services; incentives for
family planning. - (a) Estabshments whch are
requred by aw to mantan a cnc or nfrmary sha
provde free famy pannng servces to ther
empoyees whch sha ncude, but not be mted to,
the appcaton or use of contraceptve ps and
ntrauterne devces.
(b) In coordnaton wth other agences of the
government engaged n the promoton of famy
pannng, the Department of Labor and Empoyment
sha deveop and prescrbe ncentve bonus schemes
to encourage famy pannng among femae workers
n any estabshment or enterprse.
ART. 135. Discrimination prohibited. - It sha be
unawfu for any empoyer to dscrmnate aganst
any woman empoyee wth respect to terms and
condtons of empoyment soey on account of her
sex.
The foowng are acts of dscrmnaton:
(a) Payment of a esser compensaton, ncudng
wage, saary or other form of remuneraton and
frnge benefts, to a femae empoyees as aganst a
mae empoyee, for work of equa vaue; and
(b) Favorng a mae empoyee over a femae
empoyee wth respect to promoton, tranng
opportuntes, study and schoarshp grants soey on
account of ther sexes.
Crmna abty for the wfu commsson of any
unawfu act as provded n ths Artce or any
voaton of the rues and reguatons ssued pursuant
to Secton 2 hereof sha be penazed as provded n
Artces 288 and 289 of ths Code: Provded, That the
nsttuton of any crmna acton under ths provson
sha not bar the aggreved empoyee from fng an
entrey separate and dstnct acton for money
cams, whch may ncude cams for damages and
other affrmatve reefs. The actons hereby
authorzed sha proceed ndependenty of each
other. (As amended by Repubc Act No. 6725, May
12, 1989).
ART. 136. 5tipulation against marriage. - It sha be
unawfu for an empoyer to requre as a condton of
empoyment or contnuaton of empoyment that a
woman empoyee sha not get marred, or to
stpuate expressy or tacty that upon gettng
marred, a woman empoyee sha be deemed
resgned or separated, or to actuay dsmss,
dscharge, dscrmnate or otherwse pre|udce a
woman empoyee merey by reason of her marrage.
ART. 137. Prohibited acts. - (a) It sha be unawfu for
any empoyer:
(1) To deny any woman empoyee the benefts
provded for n ths Chapter or to dscharge any
woman empoyed by hm for the purpose of
preventng her from en|oyng any of the benefts
provded under ths Code.
(2) To dscharge such woman on account of her
pregnancy, or whe on eave or n confnement due
to her pregnancy;
(3) To dscharge or refuse the admsson of such
woman upon returnng to her work for fear that she
may agan be pregnant.
ART. 138. Classification of certain women workers . -
Any woman who s permtted or suffered to work,
wth or wthout compensaton, n any nght cub,
cockta ounge, massage cnc, bar or smar
estabshments under the effectve contro or
supervson of the empoyer for a substanta perod
of tme as determned by the Secretary of Labor and
Empoyment, sha be consdered as an empoyee of
such estabshment for purposes of abor and soca
egsaton.
RULE XII
Empoyment of Women and Mnors
SECTION 1. Genera statement on coverage. - Ths
Rue sha appy to a empoyers, whether operatng
for proft or not, ncudng educatona, regous and
chartabe nsttutons, except to the Government and
to government-owned or controed corporatons and
to empoyers of househod hepers and persons n
ther persona servce nsofar as such workers are
concerned.
Constitution Art. II, Section 13. The State
recognizes the vital role of the youth in nation-building
and shall promote and protect their physical, moral,
spiritual, intellectual, and social well-being. t shall
inculcate in the youth patriotism and nationalism, and
encourage their involvement in public and civic affairs.
ARTCLE X WOMEN
Section 14. The State shall protect working women
by providing safe and healthful working conditions,
taking into account their maternal functions, and such
facilities and opportunities that will enhance their
welfare and enable them to realize their full potential
in the service of the nation.
CEDAW
Article 11
1. States Parties shall take all appropriate measures
to eliminate discrimination against women in the field
of employment in order to ensure, on a basis of
equality of men and women, the same rights, in
particular:
(a) The right to work as an inalienable right of all
human beings;
Duman / Labor I / Prof. Battad / Page 122
(b) The right to the same employment opportunities,
including the application of the same criteria for
selection in matters of employment;
(c) The right to free choice of profession and
employment, the right to promotion, job security and
all benefits and conditions of service and the right to
receive vocational training and retraining, including
apprenticeships, advanced vocational training and
recurrent training;
(d) The right to equal remuneration, including
benefits, and to equal treatment in respect of work of
equal value, as well as equality of treatment in the
evaluation of the quality of work;
(e) The right to social security, particularly in cases of
retirement, unemployment, sickness, invalidity and old
age and other incapacity to work, as well as the right
to paid leave;
(f) The right to protection of health and to safety in
working conditions, including the safeguarding of the
function of reproduction.
2. n order to prevent discrimination against women
on the grounds of marriage or maternity and to ensure
their effective right to work, States Parties shall take
appropriate measures:
(a) To prohibit, subject to the imposition of sanctions,
dismissal on the grounds of pregnancy or of maternity
leave and discrimination in dismissals on the basis of
marital status;
(b) To introduce maternity leave with pay or with
comparable social benefits without loss of former
employment, seniority or social allowances;
(c) To encourage the provision of the necessary
supporting social services to enable parents to
combine family obligations with work responsibilities
and participation in public life, in particular through
promoting the establishment and development of a
network of child-care facilities;
(d) To provide special protection to women during
pregnancy in types of work proved to be harmful to
them.
3. Protective legislation relating to matters covered in
this article shall be reviewed periodically in the light of
scientific and technological knowledge and shall be
revised, repealed or extended as necessary.
Article 12
1. States Parties shall take all appropriate measures
to eliminate discrimination against women in the field
of health care in order to ensure, on a basis of
equality of men and women, access to health care
services, including those related to family planning.
2. Notwithstanding the provisions of paragraph of
this article, States Parties shall ensure to women
appropriate services in connection with pregnancy,
confinement and the post-natal period, granting free
services where necessary, as well as adequate
nutrition during pregnancy and lactation.
Article 13
States Parties shall take all appropriate measures to
eliminate discrimination against women in other areas
of economic and social life in order to ensure, on a
basis of equality of men and women, the same rights,
in particular:
(a) The right to family benefits;
(b) The right to bank loans, mortgages and other
forms of financial credit;
(c) The right to participate in recreational activities,
sports and all aspects of cultural life.
C100 Equal Remuneration Convention, 1951
Conventon concernng Equa Remuneraton for Men
and Women Workers for Work of Equa Vaue (Note:
Date of comng nto force: 23:05:1953.)
Conventon:C100
Pace:Geneva
Sesson of the Conference:34
Date of adopton:29:06:1951
Sub|ect cassfcaton: Equa Remuneraton
Sub|ect cassfcaton: Women
Sub|ect: Equality of Opportunity and Treatment
The Genera Conference of the Internatona Labour
Organsaton,
Havng been convened at Geneva by the Governng
Body of the Internatona Labour Offce, and havng
met n ts Thrty-fourth Sesson on 6 |une 1951, and
Havng decded upon the adopton of certan
proposas wth regard to the prncpe of equa
remuneraton for men and women workers for work
of equa vaue, whch s the seventh tem on the
agenda of the sesson, and
Havng determned that these proposas sha take
the form of an nternatona Conventon,
adopts ths twenty-nnth day of |une of the year one
thousand nne hundred and ffty-one the foowng
Conventon, whch may be cted as the Equa
Remuneraton Conventon, 1951:
Artce 1
For the purpose of ths Conventon--
(a) the term !"#$%"!&'()% ncudes the ordnary,
basc or mnmum wage or saary and any addtona
emouments whatsoever payabe drecty or
ndrecty, whether n cash or n knd, by the
empoyer to the worker and arsng out of the
worker's empoyment;
(b) the term "+$&, !"#$%"!&'()% -)! #"% &%.
/)#"% /)!0"!1 -)! /)!0 )- "+$&, 2&,$" refers to
rates of remuneraton estabshed wthout
dscrmnaton based on sex.
Artce 2
1. Each Member sha, by means approprate to the
methods n operaton for determnng rates of
Duman / Labor I / Prof. Battad / Page 123
remuneraton, promote and, n so far as s consstent
wth such methods, ensure the appcaton to a
workers of the prncpe of equa remuneraton for
men and women workers for work of equa vaue.
2. Ths prncpe may be apped by means of--
(a) natona aws or reguatons;
(b) egay estabshed or recognsed machnery for
wage determnaton;
(c) coectve agreements between empoyers and
workers; or
(d) a combnaton of these varous means.
Artce 3
1. Where such acton w assst n gvng effect to the
provsons of ths Conventon measures sha be
taken to promote ob|ectve apprasa of |obs on the
bass of the work to be performed.
2. The methods to be foowed n ths apprasa may
be decded upon by the authortes responsbe for
the determnaton of rates of remuneraton, or, where
such rates are determned by coectve agreements,
by the partes thereto.
3. Dfferenta rates between workers whch
correspond, wthout regard to sex, to dfferences, as
determned by such ob|ectve apprasa, n the work
to be performed sha not be consdered as beng
contrary to the prncpe of equa remuneraton for
men and women workers for work of equa vaue.
Artce 4
Each Member sha co-operate as approprate wth
the empoyers' and workers' organsatons concerned
for the purpose of gvng effect to the provsons of
ths Conventon.
Artce 5
The forma ratfcatons of ths Conventon sha be
communcated to the Drector-Genera of the
Internatona Labour Offce for regstraton.
Artce 6
1. Ths Conventon sha be bndng ony upon those
Members of the Internatona Labour Organsaton
whose ratfcatons have been regstered wth the
Drector-Genera.
2. It sha come nto force tweve months after the
date on whch the ratfcatons of two Members have
been regstered wth the Drector-Genera.
3. Thereafter, ths Conventon sha come nto force
for any Member tweve months after the date on
whch ts ratfcaton has been regstered.
Artce 7
1. Decaratons communcated to the Drector-
Genera of the Internatona Labour Offce n
accordance wth paragraph 2 of Artce 35 of the
Consttuton of the Internatona Labour Organsaton
sha ndcate --
a) the terrtores n respect of whch the Member
concerned undertakes that the provsons of the
Conventon sha be apped wthout modfcaton;
b) the terrtores n respect of whch t undertakes
that the provsons of the Conventon sha be apped
sub|ect to modfcatons, together wth detas of the
sad modfcatons;
c) the terrtores n respect of whch the Conventon
s nappcabe and n such cases the grounds on
whch t s nappcabe;
d) the terrtores n respect of whch t reserves ts
decson pendng further consderaton of the
poston.
2. The undertakngs referred to n subparagraphs (a)
and (b) of paragraph 1 of ths Artce sha be deemed
to be an ntegra part of the ratfcaton and sha
have the force of ratfcaton.
3. Any Member may at any tme by a subsequent
decaraton cance n whoe or n part any reservaton
made n ts orgna decaraton n vrtue of
subparagraph (b), (c) or (d) of paragraph 1 of ths
Artce.
4. Any Member may, at any tme at whch the
Conventon s sub|ect to denuncaton n accordance
wth the provsons of Artce 9, communcate to the
Drector-Genera a decaraton modfyng n any other
respect the terms of any former decaraton and
statng the present poston n respect of such
terrtores as t may specfy.
Artce 8
1. Decaratons communcated to the Drector-
Genera of the Internatona Labour Offce n
accordance wth paragraph 4 or 5 of Artce 35 of the
Consttuton of the Internatona Labour Organsaton
sha ndcate whether the provsons of the
Conventon w be apped n the terrtory concerned
wthout modfcaton or sub|ect to modfcatons;
when the decaraton ndcates that the provsons of
the Conventon w be apped sub|ect to
modfcatons, t sha gve detas of the sad
modfcatons.
2. The Member, Members or nternatona authorty
concerned may at any tme by a subsequent
decaraton renounce n whoe or n part the rght to
have recourse to any modfcaton ndcated n any
former decaraton.
3. The Member, Members or nternatona authorty
concerned may, at any tme at whch ths Conventon
s sub|ect to denuncaton n accordance wth the
provsons of Artce 9, communcate to the Drector-
Genera a decaraton modfyng n any other respect
the terms of any former decaraton and statng the
present poston n respect of the appcaton of the
Conventon.
Artce 9
1. A Member whch has ratfed ths Conventon may
denounce t after the expraton of ten years from the
date on whch the Conventon frst comes nto force,
Duman / Labor I / Prof. Battad / Page 124
by an act communcated to the Drector-Genera of
the Internatona Labour Offce for regstraton. Such
denuncaton sha not take effect unt one year after
the date on whch t s regstered.
2. Each Member whch has ratfed ths Conventon
and whch does not, wthn the year foowng the
expraton of the perod of ten years mentoned n the
precedng paragraph, exercse the rght of
denuncaton provded for n ths Artce, w be
bound for another perod of ten years and,
thereafter, may denounce ths Conventon at the
expraton of each perod of ten years under the
terms provded for n ths Artce.
Artce 10
1. The Drector-Genera of the Internatona Labour
Offce sha notfy a Members of the Internatona
Labour Organsaton of the regstraton of a
ratfcatons, decaratons and denuncatons
communcated to hm by the Members of the
Organsaton.
2. When notfyng the Members of the Organsaton of
the regstraton of the second ratfcaton
communcated to hm, the Drector-Genera sha
draw the attenton of the Members of the
Organsaton to the date upon whch the Conventon
w come nto force.
Artce 11
The Drector-Genera of the Internatona Labour
Offce sha communcate to the Secretary-Genera of
the Unted Natons for regstraton n accordance wth
Artce 102 of the Charter of the Unted Natons fu
partcuars of a ratfcatons, decaratons and acts
of denuncaton regstered by hm n accordance wth
the provsons of the precedng artces.
Artce 12
At such tmes as may consder necessary the
Governng Body of the Internatona Labour Offce
sha present to the Genera Conference a report on
the workng of ths Conventon and sha examne the
desrabty of pacng on the agenda of the
Conference the queston of ts revson n whoe or n
part.
Artce 13
1. Shoud the Conference adopt a new Conventon
revsng ths Conventon n whoe or n part, then,
uness the new Conventon otherwse provdes--
a) the ratfcaton by a Member of the new revsng
Conventon sha pso |ure nvove the mmedate
denuncaton of ths Conventon, notwthstandng the
provsons of Artce 9 above, f and when the new
revsng Conventon sha have come nto force;
b) as from the date when the new revsng
Conventon comes nto force ths Conventon sha
cease to be open to ratfcaton by the Members.
2. Ths Conventon sha n any case reman n force
n ts actua form and content for those Members
whch have ratfed t but have not ratfed the
revsng Conventon.
Artce 14
The Engsh and French versons of the text of ths
Conventon are equay authortatve.
C111 Discrimination (Employment and
Occupation) Convention, 1958
Conventon concernng Dscrmnaton n Respect of
Empoyment and Occupaton (Note: Date of comng
nto force: 15:06:1960.)
Conventon:C111
Pace:Geneva
Sesson of the Conference:42
Date of adopton:25:06:1958
Sub|ect cassfcaton: Non-dscrmnaton
(Empoyment and Occupaton)
Sub|ect cassfcaton: Women
Sub|ect: Equality of Opportunity and Treatment

The Genera Conference of the Internatona Labour
Organsaton,
Havng been convened at Geneva by the Governng
Body of the Internatona Labour Offce, and havng
met n ts Forty-second Sesson on 4 |une 1958, and
Havng decded upon the adopton of certan
proposas wth regard to dscrmnaton n the fed of
empoyment and occupaton, whch s the fourth tem
on the agenda of the sesson, and
Havng determned that these proposas sha take
the form of an nternatona Conventon, and
Consderng that the Decaraton of Phadepha
affrms that a human bengs, rrespectve of race,
creed or sex, have the rght to pursue both ther
matera we-beng and ther sprtua deveopment n
condtons of freedom and dgnty, of economc
securty and equa opportunty, and
Consderng further that dscrmnaton consttutes a
voaton of rghts enuncated by the Unversa
Decaraton of Human Rghts,
adopts ths twenty-ffth day of |une of the year one
thousand nne hundred and ffty-eght the foowng
Conventon, whch may be cted as the
Dscrmnaton (Empoyment and Occupaton)
Conventon, 1958:
Artce 1
1. For the purpose of ths Conventon the term
.(13!(#(%&'()% ncudes--
(a) any dstncton, excuson or preference made on
the bass of race, coour, sex, regon, potca
opnon, natona extracton or soca orgn, whch
has the effect of nufyng or mparng equaty of
opportunty or treatment n empoyment or
occupaton;
(b) such other dstncton, excuson or preference
whch has the effect of nufyng or mparng
equaty of opportunty or treatment n empoyment
or occupaton as may be determned by the Member
concerned after consutaton wth representatve
empoyers' and workers' organsatons, where such
exst, and wth other approprate bodes.
Duman / Labor I / Prof. Battad / Page 125
2. Any dstncton, excuson or preference n respect
of a partcuar |ob based on the nherent
requrements thereof sha not be deemed to be
dscrmnaton.
3. For the purpose of ths Conventon the terms
"#4,)5#"%' and )33$4&'()% ncude access to
vocatona tranng, access to empoyment and to
partcuar occupatons, and terms and condtons of
empoyment.
Artce 2
Each Member for whch ths Conventon s n force
undertakes to decare and pursue a natona pocy
desgned to promote, by methods approprate to
natona condtons and practce, equaty of
opportunty and treatment n respect of empoyment
and occupaton, wth a vew to emnatng any
dscrmnaton n respect thereof.
Artce 3
Each Member for whch ths Conventon s n force
undertakes, by methods approprate to natona
condtons and practce--
(a) to seek the co-operaton of empoyers' and
workers' organsatons and other approprate bodes
n promotng the acceptance and observance of ths
pocy;
(b) to enact such egsaton and to promote such
educatona programmes as may be cacuated to
secure the acceptance and observance of the pocy;
(c) to repea any statutory provsons and modfy any
admnstratve nstructons or practces whch are
nconsstent wth the pocy;
(d) to pursue the pocy n respect of empoyment
under the drect contro of a natona authorty;
(e) to ensure observance of the pocy n the
actvtes of vocatona gudance, vocatona tranng
and pacement servces under the drecton of a
natona authorty;
(f) to ndcate n ts annua reports on the appcaton
of the Conventon the acton taken n pursuance of
the pocy and the resuts secured by such acton.
Artce 4
Any measures affectng an ndvdua who s
|ustfaby suspected of, or engaged n, actvtes
pre|udca to the securty of the State sha not be
deemed to be dscrmnaton, provded that the
ndvdua concerned sha have the rght to appea to
a competent body estabshed n accordance wth
natona practce.
Artce 5
1. Speca measures of protecton or assstance
provded for n other Conventons or
Recommendatons adopted by the Internatona
Labour Conference sha not be deemed to be
dscrmnaton.
2. Any Member may, after consutaton wth
representatve empoyers' and workers'
organsatons, where such exst, determne that other
speca measures desgned to meet the partcuar
requrements of persons who, for reasons such as
sex, age, dsabement, famy responsbtes or
soca or cutura status, are generay recognsed to
requre speca protecton or assstance, sha not be
deemed to be dscrmnaton.
Artce 6
Each Member whch ratfes ths Conventon
undertakes to appy t to non-metropotan terrtores
n accordance wth the provsons of the Consttuton
of the Internatona Labour Organsaton.
Artce 7
The forma ratfcatons of ths Conventon sha be
communcated to the Drector-Genera of the
Internatona Labour Offce for regstraton.
Artce 8
1. Ths Conventon sha be bndng ony upon those
Members of the Internatona Labour Organsaton
whose ratfcatons have been regstered wth the
Drector-Genera.
2. It sha come nto force tweve months after the
date on whch the ratfcatons of two Members have
been regstered wth the Drector-Genera.
3. Thereafter, ths Conventon sha come nto force
for any Member tweve months after the date on
whch ts ratfcaton has been regstered.
Artce 9
1. A Member whch has ratfed ths Conventon may
denounce t after the expraton of ten years from the
date on whch the Conventon frst comes nto force,
by an act communcated to the Drector-Genera of
the Internatona Labour Offce for regstraton. Such
denuncaton sha not take effect unt one year after
the date on whch t s regstered.
2. Each Member whch has ratfed ths Conventon
and whch does not, wthn the year foowng the
expraton of the perod of ten years mentoned n the
precedng paragraph, exercse the rght of
denuncaton provded for n ths Artce, w be
bound for another perod of ten years and,
thereafter, may denounce ths Conventon at the
expraton of each perod of ten years under the
terms provded for n ths Artce.
Artce 10
1. The Drector-Genera of the Internatona Labour
Offce sha notfy a Members of the Internatona
Labour Organsaton of the regstraton of a
ratfcatons and denuncatons communcated to hm
by the Members of the Organsaton.
2. When notfyng the Members of the Organsaton of
the regstraton of the second ratfcaton
communcated to hm, the Drector-Genera sha
draw the attenton of the Members of the
Organsaton to the date upon whch the Conventon
w come nto force.
Artce 11
Duman / Labor I / Prof. Battad / Page 126
The Drector-Genera of the Internatona Labour
Offce sha communcate to the Secretary-Genera of
the Unted Natons for regstraton n accordance wth
Artce 102 of the Charter of the Unted Natons fu
partcuars of a ratfcatons and acts of
denuncaton regstered by hm n accordance wth
the provsons of the precedng Artces.
Artce 12
At such tmes as t may consder necessary the
Governng Body of the Internatona Labour Offce
sha present to the Genera Conference a report on
the workng of ths Conventon and sha examne the
desrabty of pacng on the agenda of the
Conference the queston of ts revson n whoe or n
part.
Artce 13
1. Shoud the Conference adopt a new Conventon
revsng ths Conventon n whoe or n part, then,
uness the new Conventon otherwse provdes:
a) the ratfcaton by a Member of the new revsng
Conventon sha pso |ure nvove the mmedate
denuncaton of ths Conventon, notwthstandng the
provsons of Artce 9 above, f and when the new
revsng Conventon sha have come nto force;
b) as from the date when the new revsng
Conventon comes nto force, ths Conventon sha
cease to be open to ratfcaton by the Members.
2. Ths Conventon sha n any case reman n force
n ts actua form and content for those Members
whch have ratfed t but have not ratfed the
revsng Conventon.
Artce 14
The Engsh and French versons of the text of ths
Conventon are equay authortatve.
a. Equaty: Forma Equaty vs. Substantve
Equaty
Readngs:
Bartett, Katharne, Cender Law , n Duke |ourna
of Gender Law and Pocy (1994)
Formal Equality and 5ubstantive Equality n the
Textbook on Gender and the Law by Angea
Harrs
Badoz, Rosanda, job discrimination against
women in the work environment: the Philippine
setting, PLR, Vol. 24, No. J (2000).
b. Women under the Consttuton, Art. II, Sec. 14;
Art XIII, Sec 14
Phppne Assocaton of Servce Exporters v.
Dron, 163 SCRA 386 (1988)
Ph. Teegraph and Teephone Co. v. NLRC, 272
SCRA 596 (1997)
c. Coverage, Rue XII, Sec. I
Empoyment of Women and Mnors
SECTION 1. Genera statement on coverage. - Ths
Rue sha appy to a empoyers, whether operatng
for proft or not, ncudng educatona, regous and
chartabe nsttutons, except to the Government and
to government-owned or controed corporatons and
to empoyers of househod hepers and persons n
ther persona servce nsofar as such workers are
concerned.
Duman / Labor I / Prof. Battad / Page 127
d. Prohbted Acts
1) Nght Work/Excepton, Art. 130-131
ART. 130. Nightwork prohibition. - No woman,
regardess of age, sha be empoyed or permtted or
suffered to work, wth or wthout compensaton:
(a) In any ndustra undertakng or branch thereof
between ten ocock at nght and sx ocock n the
mornng of the foowng day; or
(b) In any commerca or non-ndustra undertakng
or branch thereof, other than agrcutura, between
mdnght and sx ocock n the mornng of the
foowng day; or
(c) In any agrcutura undertakng at nghttme
uness she s gven a perod of rest of not ess than
nne (9) consecutve hours.
ART. 131. Exceptions. - The prohbtons prescrbed by
the precedng Artce sha not appy n any of the
foowng cases:
(a) In cases of actua or mpendng emergences
caused by serous accdent, fre, food, typhoon,
earthquake, epdemc or other dsasters or caamty,
to prevent oss of fe or property, or n cases of force
majeure or mmnent danger to pubc safety;
(b) In case of urgent work to be performed on
machneres, equpment or nstaaton, to avod
serous oss whch the empoyer woud otherwse
suffer;
(c) Where the work s necessary to prevent serous
oss of pershabe goods;
(d) Where the woman empoyee hods a responsbe
poston of managera or technca nature, or where
the woman empoyee has been engaged to provde
heath and wefare servces;
(e) Where the nature of the work requres the manua
sk and dexterty of women workers and the same
cannot be performed wth equa effcency by mae
workers;
(f) Where the women empoyees are mmedate
members of the famy operatng the estabshment
or undertakng; and
(g) Under other anaogous cases exempted by the
Secretary of Labor and Empoyment n approprate
reguatons.
9) Dscrmnaton, Art. 135
ART. 135. Discrimination prohibited. - It sha be
unawfu for any empoyer to dscrmnate aganst
any woman empoyee wth respect to terms and
condtons of empoyment soey on account of her
sex.
The foowng are acts of dscrmnaton:
(a) Payment of a esser compensaton, ncudng
wage, saary or other form of remuneraton and
frnge benefts, to a femae empoyees as aganst a
mae empoyee, for work of equa vaue; and
(b) Favorng a mae empoyee over a femae
empoyee wth respect to promoton, tranng
opportuntes, study and schoarshp grants soey on
account of ther sexes.
Crmna abty for the wfu commsson of any
unawfu act as provded n ths Artce or any
voaton of the rues and reguatons ssued pursuant
to Secton 2 hereof sha be penazed as provded n
Artces 288 and 289 of ths Code: Provded, That the
nsttuton of any crmna acton under ths provson
sha not bar the aggreved empoyee from fng an
entrey separate and dstnct acton for money
cams, whch may ncude cams for damages and
other affrmatve reefs. The actons hereby
authorzed sha proceed ndependenty of each
other. (As amended by Repubc Act No. 6725, May
12, 1989).
10) Stpuaton Aganst Marrage, Art. 136
ART. 136. 5tipulation against marriage. - It sha be
unawfu for an empoyer to requre as a condton of
empoyment or contnuaton of empoyment that a
woman empoyee sha not get marred, or to
stpuate expressy or tacty that upon gettng
marred, a woman empoyee sha be deemed
resgned or separated, or to actuay dsmss,
dscharge, dscrmnate or otherwse pre|udce a
woman empoyee merey by reason of her marrage.
Duncan Assocaton of Detaman - PTGWO v.
Gaxo Wecome Phppnes, Inc., 438 SCRA 343
(2004)
11) Dscharge on Account of Pregnancy, Art. 137
ART. 137. Prohibited acts. - (a) It sha be unawfu for
any empoyer:
(1) To deny any woman empoyee the benefts
provded for n ths Chapter or to dscharge any
woman empoyed by hm for the purpose of
preventng her from en|oyng any of the benefts
provded under ths Code.
Duman / Labor I / Prof. Battad / Page 128
(2) To dscharge such woman on account of her
pregnancy, or whe on eave or n confnement due
to her pregnancy;
(3) To dscharge or refuse the admsson of such
woman upon returnng to her work for fear that she
may agan be pregnant.
d. Factes, Art. 132, 134
ART. 132. Facilities for women. - The Secretary of
Labor and Empoyment sha estabsh standards that
w ensure the safety and heath of women
empoyees. In approprate cases, he sha, by
reguatons, requre any empoyer to:
(a) Provde seats proper for women and permt them
to use such seats when they are free from work and
durng workng hours, provded they can perform
ther dutes n ths poston wthout detrment to
effcency;
(b) To estabsh separate toet rooms and avatores
for men and women and provde at east a dressng
room for women;
(c) To estabsh a nursery n a workpace for the
beneft of the women empoyees theren; and
(d) To determne approprate mnmum age and other
standards for retrement or termnaton n speca
occupatons such as those of fght attendants and
the ke.
ART. 134. Family planning services; incentives for
family planning. - (a) Estabshments whch are
requred by aw to mantan a cnc or nfrmary sha
provde free famy pannng servces to ther
empoyees whch sha ncude, but not be mted to,
the appcaton or use of contraceptve ps and
ntrauterne devces.
(b) In coordnaton wth other agences of the
government engaged n the promoton of famy
pannng, the Department of Labor and Empoyment
sha deveop and prescrbe ncentve bonus schemes
to encourage famy pannng among femae workers
n any estabshment or enterprse.
e. Speca Women Workers, 138
ART. 138. Classification of certain women workers . -
Any woman who s permtted or suffered to work,
wth or wthout compensaton, n any nght cub,
cockta ounge, massage cnc, bar or smar
estabshments under the effectve contro or
supervson of the empoyer for a substanta perod
of tme as determned by the Secretary of Labor and
Empoyment, sha be consdered as an empoyee of
such estabshment for purposes of abor and soca
egsaton.
I. Maternty Leave, Soca Securty Law of 1997 (RA
1161, as amended by RA 8282), Sec. 14-A, RA
828
"SEC. 14-A. Maternity Leave 8enefit. - A femae
member who has pad at east three (3) monthy
contrbutons n the tweve-month perod
mmedatey precedng the semester of her chdbrth
or mscarrage sha be pad a day maternty beneft
equvaent to one hundred percent (100%) of her
average day saary credt for sxty (60) days or
seventy-eght (78) days n case of caesaran devery,
sub|ect to the foowng condtons:
"(a) That the empoyee sha have notfed her
empoyer of her pregnancy and the probabe date of
her chdbrth, whch notce sha be transmtted to
the SSS n accordance wth the rues and reguatons
t may provde;
"(b) The fu payment sha be advanced by the
empoyer wthn thrty (30) days from the fng of the
maternty eave appcaton;
"(c) That payment of day maternty benefts sha be
a bar to the recovery of sckness benefts provded
by ths Act for the same perod for whch day
maternty benefts have been receved;
"(d) That the maternty benefts provded under ths
secton sha be pad ony for the frst four (4)
deveres or mscarrages;
"(e) That the SSS sha mmedatey remburse the
empoyer of one hundred percent (100%) of the
amount of maternty benefts advanced to the
empoyee by the empoyer upon recept of
satsfactory proof of such payment and egaty
thereof; and
"(f) That f an empoyee member shoud gve brth or
suffer mscarrage wthout the requred contrbutons
havng been remtted for her by her empoyer to the
SSS, or wthout the atter havng been prevousy
notfed by the empoyer of the tme of the
pregnancy, the empoyer sha pay to the SSS
damages equvaent to the benefts whch sad
empoyee member woud otherwse have been
entted to.
g. Sexua Harassment (RA 7877)
REPUBLIC ACT NO. 7877
AN ACT DECLARING SEXUAL HARASSMENT
UNLAWFUL IN THE EMPLOYMENT, EDUACATION
OR TRAINING ENVIRONMENT, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled:
Section 1. Title. This Act shall be known as the
"Anti-Sexual Harassment Act of 1995."
Sec. 2. Declaration of Policy. The State shall
value the dignity of every individual, enhance the
development of it human resources, guarantee full
respect for human rights, and uphold the dignity of
workers, employees, applicants for employment,
students or those undergoing training, instruction or
education. Towards this end, all forms of sexual
harassment in the employment, education or training
environment are hereby declared unlawful.
Duman / Labor I / Prof. Battad / Page 129
Sec. 3. Work, Education or Training-related
Sexual Harassment Defined. Work, education or
training-related sexual harassment is committed by an
employee, manager, supervisor, agent of the
employer, teacher, instructor, professor, coach,
trainor, or any other person who, having authority,
influence or moral ascendancy over another in a work
or training or education environment, demands,
requests or otherwise requires any sexual favor from
the other, regardless of whether the demand, request
or requirement for submission is accepted by the
object of said Act.
(a) n a work-related or employment
environment, sexual harassment is committed when:
(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, conditions, promotions, or privileges; or the
refusal to grant the sexual favor results in limiting,
segregating or classifying the employee which in a
way would discriminate, deprive or diminish
employment opportunities or otherwise 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.
(b) n an education or training environment,
sexual harassment is committed:
(1) Against one who is under the care,
custody or supervision of the offender;
(2) Against one whose education, training,
apprenticeship or tutorship is entrusted to the
offender;
(3) When 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
considerations; or
(4) When the sexual advances result in an
intimidating, hostile or offensive environment for the
student, trainee or apprentice.
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, shall also be held liable under this
Act.
Sec.4. Duty of the Employer or Head of Office in
a Work-related, Education or Training Environment.
t shall be the duty of the employer or the head of the
work-related, educational or training environment or
institution, to prevent or deter the commission of acts
of sexual harassment and to provide the procedures
for the resolution, settlement or prosecution of acts of
sexual harassment. Towards this end, the employer or
head of office shall:
(a) Promulgate appropriate rules and
regulations in consultation with the jointly approved by
the employees or students or trainees, through their
duly designated representatives, prescribing the
procedure for the investigation or sexual harassment
cases and the administrative sanctions therefor.
Administrative sanctions shall not be a bar to
prosecution in the proper courts for unlawful acts of
sexual harassment.
The said rules and regulations issued pursuant
to this section (a) shall include, among others,
guidelines on proper decorum in the workplace and
educational or training institutions.
(c) Create a committee on decorum and
investigation of cases on sexual harassment. The
committee shall conduct meetings, as the case may
be, with other officers and employees, teachers,
instructors, professors, coaches, trainors and
students or trainees to increase understanding and
prevent incidents of sexual harassment. t shall also
conduct the investigation of the alleged cases
constituting sexual harassment.
n the case of a work-related environment, the
committee shall be composed of at least one (1)
representative each from the management, the union,
if any, the employees from the supervisory rank, and
from the rank and file employees.
n the case of the educational or training
institution, the committee shall be composed of at
least one (1) representative from the administration,
the trainors, teachers, instructors, professors or
coaches and students or trainees, as the case maybe.
"The employer or head of office, educational or
training institution shall disseminate or post a copy of
this Act for the information of all concerned.
Sec. 5. Liability of the Employer, Head of Office,
Educational or Training Institution. The employer or
head of office, educational training institution shall be
solidarily liable for damage arising from the acts of
sexual harassment committed in the employment,
education or training environment if the employer or
head of office, educational or training institution is
informed of such acts by the offended party and no
immediate action is taken thereon.
Sec. 6. Independent Action for Damages.
Nothing in this Act shall preclude the victim of work,
education or training-related sexual harassment from
instituting a separate and independent action for
damages and other affirmative relief.
Sec. 7. Penalties. Any person who violates the
provisions of this Act shall, upon conviction, be
penalized by imprisonment of not less than one (1)
month nor more than six (6) months, or a fine of not
less than Ten thousand pesos (P10,000) nor more
Duman / Labor I / Prof. Battad / Page 130
than Twenty thousand pesos (P20,000), or both such
fine and imprisonment at the discretion of the court.
Any action arising from the violation of the
provision of this Act shall prescribe in three (3) years.
Sec. 8. Separability Clause f any portion or
provision of this Act is declared void and
unconstitutional, the remaining portions or provisions
hereof shall not be affected by such declaration.
Sec.9. Repealing Clause. All laws, decrees,
orders, rules and regulations, other issuances, or
parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.
Sec.10. Effectivity Clause. This Act shall take
effect fifteen (15) days after its complete publication in
at least two (2) national newspaper of general
circulation.
Lbres v. NLRC, 307 SCRA 675 (1999)
Phppne Aeous Automotve Unted Corp. v.
NLRC, 331SCRA 237 (2000)
Renato S. Gatbonton v. NLRC, et a., 479 SCRA
416 (2006)
2. Mnors
Reference: Art.s 139-140; Omnbus Rues,
Book III, Rue XII, Secs. 2-3; Speca Protecton of
Chdren Act of 2003 (RA 7610, as amended by RA
9231); ILO Conventon No.182 and ILO
Recommendaton No. 190
EMPLOYMENT OF MINORS
ART. 139. Minimum employable age. - (a) No chd
beow ffteen (15) years of age sha be empoyed,
except when he works drecty under the soe
responsbty of hs parents or guardan, and hs
empoyment does not n any way nterfere wth hs
schoong.
(b) Any person between ffteen (15) and eghteen
(18) years of age may be empoyed for such number
of hours and such perods of the day as determned
by the Secretary of Labor and Empoyment n
approprate reguatons.
(c) The foregong provsons sha n no case aow the
empoyment of a person beow eghteen (18) years
of age n an undertakng whch s hazardous or
deeterous n nature as determned by the Secretary
of Labor and Empoyment.
Duman / Labor I / Prof. Battad / Page 131
ART. 140. Prohibition against child discrimination. -
No empoyer sha dscrmnate aganst any person n
respect to terms and condtons of empoyment on
account of hs age.
SECTION 2. Empoyabe age. - Chdren beow ffteen
(15) years of age may be aowed to work under the
drect responsbty of ther parents or guardans n
any non-hazardous undertakng where the work w
not n any way nterfere wth ther schoong. In such
cases, the chdren sha not be consdered as
empoyees of the empoyers or ther parents or
guardans.
SECTION 3. Egbty for empoyment. - Any person
of ether sex, between 15 and 18 years of age, may
be empoyed n any non-hazardous work. No
empoyer sha dscrmnate aganst such person n
regard to terms and condtons of empoyment on
account of hs age.
For purposes of ths Rue, a non-hazardous work or
undertakng sha mean any work or actvty n whch
the empoyee s not exposed to any rsk whch
consttutes an mmnent danger to hs safety and
heath. The Secretary of Labor and Empoyment sha
from tme to tme pubsh a st of hazardous work
and actvtes n whch persons 18 years of age and
beow cannot be empoyed.
RepubIic of the PhiIippines
Congress of the PhiIippines
Metro Manila
TweIfth Congress
Third ReguIar Session
Begun and held in Metro Manila, on Monday, the
twenty-eighth day of July, two thousand three.
RepubIic Act No. 9231 December 19, 2003
AN ACT PROVIDING FOR THE ELIMINATION OF
THE WORST FORMS OF CHILD LABOR AND
AFFORDING STRONGER PROTECTION FOR THE
WORKING CHILD, AMENDING FOR THIS
PURPOSE REPUBLIC ACTNO. 7610, AS
AMENDED, OTHERWISE KNOWN AS THE
"SPECIAL PROTECTION OF CHILDREN AGAINST
CHILD ABUSE, EXPLOITATION AND
DISCRIMINATION ACT"
Be it enacted by the Senate and the House of
Representatives of the Philippines in Congress
assembled:
Section 1. Section 2 of Republic Act No. 7610, as
amended, otherwise known as the "Special Protection
of Children Against Child Abuse, Exploitation and
Discrimination Act", is hereby amended to read as
follows:
"Sec. 2. Declaration of State Policy and Principles. - t
is hereby declared to be the policy of the State to
provide special protection to children from all forms of
abuse, neglect, cruelty, exploitation and
discrimination, and other conditions prejudicial to their
development including child labor and its worst forms;
provide sanctions for their commission and carry out a
program for prevention and deterrence of and crisis
intervention in situations of child abuse, exploitation
and discrimination. The State shall intervene on
behalf of the child when the parent, guardian, teacher
or person having care or custody of the child fails or is
unable to protect the child against abuse, exploitation
and discrimination or when such acts against the child
are committed by the said parent, guardian, teacher
or person having care and custody of the same.
"t shall be the policy of the State to protect and
rehabilitate children gravely threatened or
endangered by circumstances which affect or will
affect their survival and normal development and over
which they have no control.
"The best interests of children shall be the paramount
consideration in all actions concerning them, whether
undertaken by public or private social welfare
institutions, courts of law, administrative authorities,
and legislative bodies, consistent with the principle of
First Call for Children as enunciated in the United
Nations Convention on the Rights of the Child. Every
effort shall be exerted to promote the welfare of
children and enhance their opportunities for a useful
and happy life."
Section 2. Section 12 of the same Act, as amended,
is hereby further amended to read as follows:
"Sec. 2. Employment of Children - Children below
fifteen (15) years of age shall not be employed
except:
"1) When a child works directly under the sole
responsibility of his/her parents or legal guardian and
where only members of his/her family are employed:
Provided, however, That his/her employment neither
endangers his/her life, safety, health, and morals, nor
impairs his/her normal development: Provided,
further, That the parent or legal guardian shall provide
the said child with the prescribed primary and/or
secondary education; or
"2) Where a child's employment or participation in
public entertainment or information through cinema,
theater, radio, television or other forms of media is
essential: Provided, That the employment contract is
concluded by the child's parents or legal guardian,
with the express agreement of the child concerned, if
possible, and the approval of the Department of Labor
and Employment: Provided, further, That the following
requirements in all instances are strictly complied
with:
"(a) The employer shall ensure the protection, health,
safety, morals and normal development of the child;
"(b) The employer shall institute measures to prevent
the child's exploitation or discrimination taking into
account the system and level of remuneration, and
the duration and arrangement of working time; and
"(c) The employer shall formulate and implement,
subject to the approval and supervision of competent
authorities, a continuing program for training and skills
acquisition of the child.
Duman / Labor I / Prof. Battad / Page 132
"n the above-exceptional cases where any such child
may be employed, the employer shall first secure,
before engaging such child, a work permit from the
Department of Labor and Employment which shall
ensure observance of the above requirements.
"For purposes of this Article, the term "child" shall
apply to all persons under eighteen (18) years of
age."
Section 3. The same Act, as amended, is hereby
further amended by adding new sections to be
denominated as Sections 12-A, 12-B, 12-C, and 12-D
to read as follows:
"Sec. 2-A. Hours of Work of a Working Child. - Under
the exceptions provided in Section 12 of this Act, as
amended:
"(1) A child below fifteen (15) years of age may be
allowed to work for not more than twenty (20) hours a
week: Provided, That the work shall not be more than
four (4) hours at any given day;
"(2) A child fifteen (15) years of age but below
eighteen (18) shall not be allowed to work for more
than eight (8) hours a day, and in no case beyond
forty (40) hours a week;
"(3) No child below fifteen (15) years of age shall be
allowed to work between eight o'clock in the evening
and six o'clock in the morning of the following day and
no child fifteen (15) years of age but below eighteen
(18) shall be allowed to work between ten o'clock in
the evening and six o'clock in the morning of the
following day."
"Sec. 12-B. Ownership, Usage and Administration of
the Working Child's Income. - The wages, salaries,
earnings and other income of the working child shall
belong to him/her in ownership and shall be set aside
primarily for his/her support, education or skills
acquisition and secondarily to the collective needs of
the family: Provided, That not more than twenty
percent (20%) of the child's income may be used for
the collective needs of the family.
"The income of the working child and/or the property
acquired through the work of the child shall be
administered by both parents. n the absence or
incapacity of either of the parents, the other parent
shall administer the same. n case both parents are
absent or incapacitated, the order of preference on
parental authority as provided for under the Family
Code shall apply.
"Sec. 12-C. Trust Fund to Preserve Part of the
Working Child's Income. - The parent or legal
guardian of a working child below eighteen (18) years
of age shall set up a trust fund for at least thirty
percent (30%) of the earnings of the child whose
wages and salaries from work and other income
amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render
a semi-annual accounting of the fund to the
Department of Labor and Employment, in compliance
with the provisions of this Act. The child shall have full
control over the trust fund upon reaching the age of
majority.
"Sec. 12-D. Prohibition Against Worst Forms of Child
Labor. - No child shall be engaged in the worst forms
of child labor. The phrase "worst forms of child labor"
shall refer to any of the following:
"(1) All forms of slavery, as defined under the "Anti-
trafficking in Persons Act of 2003", or practices similar
to slavery such as sale and trafficking of children,
debt bondage and serfdom and forced or compulsory
labor, including recruitment of children for use in
armed conflict; or
"(2) The use, procuring, offering or exposing of a child
for prostitution, for the production of pornography or
for pornographic performances; or
"(3) The use, procuring or offering of a child for illegal
or illicit activities, including the production and
trafficking of dangerous drugs and volatile substances
prohibited under existing laws; or
"(4) Work which, by its nature or the circumstances in
which it is carried out, is hazardous or likely to be
harmful to the health, safety or morals of children,
such that it:
"a) Debases, degrades or demeans the intrinsic worth
and dignity of a child as a human being; or
"b) Exposes the child to physical, emotional or sexual
abuse, or is found to be highly stressful
psychologically or may prejudice morals; or
"c) s performed underground, underwater or at
dangerous heights; or
"d) nvolves the use of dangerous machinery,
equipment and tools such as power-driven or
explosive power-actuated tools; or
"e) Exposes the child to physical danger such as, but
not limited to the dangerous feats of balancing,
physical strength or contortion, or which requires the
manual transport of heavy loads; or
"f) s performed in an unhealthy environment
exposing the child to hazardous working conditions,
elements, substances, co-agents or processes
involving ionizing, radiation, fire, flammable
substances, noxious components and the like, or to
extreme temperatures, noise levels, or vibrations; or
"g) s performed under particularly difficult conditions;
or
"h) Exposes the child to biological agents such as
bacteria, fungi, viruses, protozoans, nematodes and
other parasites; or
"i) nvolves the manufacture or handling of explosives
and other pyrotechnic products."
Duman / Labor I / Prof. Battad / Page 133
Section 4. Section 13 of the same Act is hereby
amended to read as follows:
"Sec. 13. Access to Education and Training for
Working Children - "a) No child shall be deprived of
formal or non-formal education. n all cases of
employment allowed in this Act, the employer shall
provide a working child with access to at least primary
and secondary education.
"b) To ensure and guarantee the access of the
working child to education and training, the
Department of Education (DEPED) shall: (1)
formulate, promulgate, and implement relevant and
effective course designs and educational programs;
(2) conduct the necessary training for the
implementation of the appropriate curriculum for the
purpose; (3) ensure the availability of the needed
educational facilities and materials; and (4) conduct
continuing research and development program for the
necessary and relevant alternative education of the
working child.
"c) The DEPED shall promulgate a course design
under its non-formal education program aimed at
promoting the intellectual, moral and vocational
efficiency of working children who have not
undergone or finished elementary or secondary
education. Such course design shall integrate the
learning process deemed most effective under given
circumstances."
Section 5. Section 14 of the same Act is hereby
amended to read as follows:
"Sec. 14. Prohibition on the Employment of Children
in Certain Advertisements. - No child shall be
employed as a model in any advertisement directly or
indirectly promoting alcoholic beverages, intoxicating
drinks, tobacco and its byproducts, gambling or any
form of violence or pornography."
Section 6. Section 16 of the same Act, is hereby
amended to read as follows:
"Sec. 16. Penal Provisions -
"a) Any employer who violates Sections 12, 12-A, and
Section 14 of this act, as amended, shall be penalized
by imprisonment of six (6) months and one (1) day to
six (6) years or a fine of not less than Fifty thousand
pesos (P50,000.00) but not more than Three hundred
thousand pesos (P300,000.00) or both at the
discretion of the court.
"b) Any person who violates the provision of Section
12-D of this act or the employer of the subcontractor
who employs, or the one who facilitates the
employment of a child in hazardous work, shall suffer
the penalty of a fine of not less than One hundred
thousand pesos (P100,000.00) but not more than One
million pesos (P1,000,000.00), or imprisonment of not
less than twelve (12) years and one (1) day to twenty
(20) years, or both such fine and imprisonment at the
discretion of the court.
"c) Any person who violates Sections 12-D(1) and 12-
D(2) shall be prosecuted and penalized in accordance
with the penalty provided for by R. A. 9208 otherwise
known as the "Anti-trafficking in Persons Act of 2003":
Provided, That Such penalty shall be imposed in its
maximum period.
"d) Any person who violates Section 12-D (3) shall be
prosecuted and penalized in accordance with R.A.
9165, otherwise known as the "Comprehensive
Dangerous Drugs Act of 2002"; Provided, That such
penalty shall be imposed in its maximum period.
"e) f a corporation commits any of the violations
aforecited, the board of directors/trustees and officers,
which include the president, treasurer and secretary
of the said corporation who participated in or
knowingly allowed the violation, shall be penalized
accordingly as provided for under this Section.
"f) Parents, biological or by legal fiction, and legal
guardians found to be violating Sections 12, 12-A, 12-
B and 12-C of this Act shall pay a fine of not less than
Ten thousand pesos (P10,000.00) but not more than
One hundred thousand pesos (P100,000.00), or be
required to render community service for not less than
thirty (30) days but not more than one (1) year, or
both such fine and community service at the
discretion of the court: Provided, That the maximum
length of community service shall be imposed on
parents or legal guardians who have violated the
provisions of this Act three (3) times; Provided,
further, That in addition to the community service, the
penalty of imprisonment of thirty (30) days but not
more than one (1) year or both at the discretion of the
court, shall be imposed on the parents or legal
guardians who have violated the provisions of this Act
more than three (3) times.
"g) The Secretary, of Labor and Employment or
his/her duly authorized representative may, after due
notice and hearing, order the closure of any business
firm or establishment found to have violated any of
the provisions of this Act more than three (3) times.
He/she shall likewise order the immediate closure of
such firm or establishment if:
"(1) The violation of any provision of this Act has
resulted in the death, insanity or serious physical
injury of a child employed in such establishment; or
"(2) Such firm or establishment is engaged or
employed in prostitution or in obscene or lewd shows.
"h) n case of such closure, the employer shall be
required to pay the employee(s) the separation pay
and other monetary benefits provided for by law."
Section 7. The same Act is hereby further amended
by adding a new section to be denominated as
Section 16-A, to read as follows:
"Sec. 16-A. Trust Fund from Fines and Penalties -
The fine imposed by the court shall be treated as a
Trust Fund, administered by the Department of Labor
and Employment and disbursed exclusively for the
needs, including the costs of rehabilitation and
reintegration into the mainstream of society of the
working children who are victims of the violations of
Duman / Labor I / Prof. Battad / Page 134
this Act, and for the programs and projects that will
prevent acts of child labor."
Section 8. Section 27 of the same Act is hereby
amended to read as follows:
"Sec. 27. Who May File a Complaint - Complaints on
cases of unlawful acts committed against children as
enumerated herein may be filed by the following:
"(a) Offended party;
"(b) Parents or guardians;
"(c) Ascendant or collateral relative within the third
degree of consanguinity;
"(d) Officer, social worker or representative of a
licensed child-caring institution;
"(e) Officer or social worker of the Department of
Social Welfare and Development;
"(f) Barangay chairman of the place where the
violation occurred, where the child is residing or
employed; or
"(g) At least three (3) concerned, responsible citizens
where the violation occurred."
Section 9. The same Act is hereby further amended
by adding new sections to Section 16 to be
denominated as Sections 16-A, 16-B and 16-C to
read as follows:
"Sec. 16-A. Jurisdiction - The family courts shall have
original jurisdiction over all cases involving offenses
punishable under this Act: Provided, That in cities or
provinces where there are no family courts yet, the
regional trial courts and the municipal trial courts shall
have concurrent jurisdiction depending on the
penalties prescribed for the offense charged.
"The preliminary investigation of cases filed under this
Act shall be terminated within a period of thirty (30)
days from the date of filing.
"f the preliminary investigation establishes a prima
facie case, then the corresponding information shall
be filed in court within forty eight (48) hours from the
termination of the investigation.
"Trial of cases under this Act shall be terminated by
the court not later than ninety (90) days from the date
of filing of information. Decision on said cases shall
be rendered within a period of fifteen (15) days from
the date of submission of the case.
"Sec. 15. Exemptions from Filing Fees. - When the
victim of child labor institutes a separate civil action
for the recovery of civil damages, he/she shall be
exempt from payment of filing fees.
"Sec. 16-C. Access to Immediate Legal, Medical and
Psycho-Social Services - The working child shall have
the right to free legal, medical and psycho-social
services to be provided by the State."
Section 10. Implementing Rules and Regulations -
The Secretary of Labor and Employment, in
coordination with the Committees on Labor and
Employment of both Houses of Congress, shall issue
the necessary mplementing Rules and Regulations
(RR) to effectively implement the provisions of this
Act, in consultation with concerned public and private
sectors, within sixty (60) days from the effectivity of
this Act.
Such rules and regulations shall take effect upon their
publication in two (2) national newspapers of general
circulation.
Section 11. Separability Clause. - f any provision of
this Act is declared invalid or unconstitutional, the
validity of the remaining provisions hereof shall
remain in full force and effect.
Section 12. Repealing Clause. - All laws, decrees, or
rules inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.
Section 13. Effectivity. - This Act shall take effect
fifteen (15) days from the date of its complete
publication in the Official Gazette or in at least two (2)
national newspapers of general circulation.
C182 Worst Forms of ChiId Labour Convention,
1999
Convention concerning the Prohibition and mmediate
Action for the Elimination of the Worst Forms of Child
Labour (Note: Date of coming into force: 19:11:2000)
Convention:C182
Place:Geneva
Session of the Conference:87
Date of adoption:17:06:1999
Subject classification: Elimination of Child Labour
Subject classification: Children and Young Persons
Subject: EIimination of ChiId Labour and
Protection of ChiIdren and Young Persons
The General Conference of the nternational Labour
Organization,
Having been convened at Geneva by the Governing
Body of the nternational Labour Office, and having
met in its 87th Session on 1 June 1999, and
Considering the need to adopt new instruments for
the prohibition and elimination of the worst forms of
child labour, as the main priority for national and
international action, including international
cooperation and assistance, to complement the
Convention and the Recommendation concerning
Minimum Age for Admission to Employment, 1973,
which remain fundamental instruments on child
labour, and
Considering that the effective elimination of the worst
forms of child labour requires immediate and
comprehensive action, taking into account the
Duman / Labor I / Prof. Battad / Page 135
importance of free basic education and the need to
remove the children concerned from all such work
and to provide for their rehabilitation and social
integration while addressing the needs of their
families, and
Recalling the resolution concerning the elimination of
child labour adopted by the nternational Labour
Conference at its 83rd Session in 1996, and
Recognizing that child labour is to a great extent
caused by poverty and that the long-term solution lies
in sustained economic growth leading to social
progress, in particular poverty alleviation and
universal education, and
Recalling the Convention on the Rights of the Child
adopted by the United Nations General Assembly on
20 November 1989, and
Recalling the LO Declaration on Fundamental
Principles and Rights at Work and its Follow-up,
adopted by the nternational Labour Conference at its
86th Session in 1998, and
Recalling that some of the worst forms of child labour
are covered by other international instruments, in
particular the Forced Labour Convention, 1930, and
the United Nations Supplementary Convention on the
Abolition of Slavery, the Slave Trade, and nstitutions
and Practices Similar to Slavery, 1956, and
Having decided upon the adoption of certain
proposals with regard to child labour, which is the
fourth item on the agenda of the session, and
Having determined that these proposals shall take the
form of an international Convention;
adopts this seventeenth day of June of the year one
thousand nine hundred and ninety-nine the following
Convention, which may be cited as the Worst Forms
of Child Labour Convention, 1999.
Article 1
Each Member which ratifies this Convention shall take
immediate and effective measures to secure the
prohibition and elimination of the worst forms of child
labour as a matter of urgency.
Article 2
For the purposes of this Convention, the term child
shall apply to all persons under the age of 18.
Article 3
For the purposes of this Convention, the term the
worst forms of child labour comprises:
(a) all forms of slavery or practices similar to slavery,
such as the sale and trafficking of children, debt
bondage and serfdom and forced or compulsory
labour, including forced or compulsory recruitment of
children for use in armed conflict;
(b) the use, procuring or offering of a child for
prostitution, for the production of pornography or for
pornographic performances;
(c) the use, procuring or offering of a child for illicit
activities, in particular for the production and
trafficking of drugs as defined in the relevant
international treaties;
(d) work which, by its nature or the circumstances in
which it is carried out, is likely to harm the health,
safety or morals of children.
Article 4
1. The types of work referred to under Article 3(d)
shall be determined by national laws or regulations or
by the competent authority, after consultation with the
organizations of employers and workers concerned,
taking into consideration relevant international
standards, in particular Paragraphs 3 and 4 of the
Worst Forms of Child Labour Recommendation, 1999.
2. The competent authority, after consultation with the
organizations of employers and workers concerned,
shall identify where the types of work so determined
exist.
3. The list of the types of work determined under
paragraph 1 of this Article shall be periodically
examined and revised as necessary, in consultation
with the organizations of employers and workers
concerned.
Article 5
Each Member shall, after consultation with employers'
and workers' organizations, establish or designate
appropriate mechanisms to monitor the
implementation of the provisions giving effect to this
Convention.
Article 6
1. Each Member shall design and implement
programmes of action to eliminate as a priority the
worst forms of child labour.
2. Such programmes of action shall be designed and
implemented in consultation with relevant government
institutions and employers' and workers'
organizations, taking into consideration the views of
other concerned groups as appropriate.
Article 7
1. Each Member shall take all necessary measures to
ensure the effective implementation and enforcement
of the provisions giving effect to this Convention
including the provision and application of penal
sanctions or, as appropriate, other sanctions.
2. Each Member shall, taking into account the
importance of education in eliminating child labour,
take effective and time-bound measures to:
Duman / Labor I / Prof. Battad / Page 136
(a) prevent the engagement of children in the worst
forms of child labour;
(b) provide the necessary and appropriate direct
assistance for the removal of children from the worst
forms of child labour and for their rehabilitation and
social integration;
(c) ensure access to free basic education, and,
wherever possible and appropriate, vocational
training, for all children removed from the worst forms
of child labour;
(d) identify and reach out to children at special risk;
and
(e) take account of the special situation of girls.
3. Each Member shall designate the competent
authority responsible for the implementation of the
provisions giving effect to this Convention.
Article 8
Members shall take appropriate steps to assist one
another in giving effect to the provisions of this
Convention through enhanced international
cooperation and/or assistance including support for
social and economic development, poverty
eradication programmes and universal education.
Article 9
The formal ratifications of this Convention shall be
communicated to the Director-General of the
nternational Labour Office for registration.
Article 10
1. This Convention shall be binding only upon those
Members of the nternational Labour Organization
whose ratifications have been registered with the
Director-General of the nternational Labour Office.
2. t shall come into force 12 months after the date on
which the ratifications of two Members have been
registered with the Director-General.
3. Thereafter, this Convention shall come into force
for any Member 12 months after the date on which its
ratification has been registered.
Article 11
1. A Member which has ratified this Convention may
denounce it after the expiration of ten years from the
date on which the Convention first comes into force,
by an act communicated to the Director-General of
the nternational Labour Office for registration. Such
denunciation shall not take effect until one year after
the date on which it is registered.
2. Each Member which has ratified this Convention
and which does not, within the year following the
expiration of the period of ten years mentioned in the
preceding paragraph, exercise the right of
denunciation provided for in this Article, will be bound
for another period of ten years and, thereafter, may
denounce this Convention at the expiration of each
period of ten years under the terms provided for in
this Article.
Article 12
1. The Director-General of the nternational Labour
Office shall notify all Members of the nternational
Labour Organization of the registration of all
ratifications and acts of denunciation communicated
by the Members of the Organization.
2. When notifying the Members of the Organization of
the registration of the second ratification, the Director-
General shall draw the attention of the Members of
the Organization to the date upon which the
Convention shall come into force.
Article 13
The Director-General of the nternational Labour
Office shall communicate to the Secretary-General of
the United Nations, for registration in accordance with
article 102 of the Charter of the United Nations, full
particulars of all ratifications and acts of denunciation
registered by the Director-General in accordance with
the provisions of the preceding Articles.
Article 14
At such times as it may consider necessary, the
Governing Body of the nternational Labour Office
shall present to the General Conference a report on
the working of this Convention and shall examine the
desirability of placing on the agenda of the
Conference the question of its revision in whole or in
part.
Article 15
1. Should the Conference adopt a new Convention
revising this Convention in whole or in part, then,
unless the new Convention otherwise provides --
(a) the ratification by a Member of the new revising
Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
provisions of Article 11 above, if and when the new
revising Convention shall have come into force;
(b) as from the date when the new revising
Convention comes into force, this Convention shall
cease to be open to ratification by the Members.
2. This Convention shall in any case remain in force in
its actual form and content for those Members which
have ratified it but have not ratified the revising
Convention.
Article 16
The English and French versions of the text of this
Convention are equally authoritative.
Duman / Labor I / Prof. Battad / Page 137
R190 Worst Forms of ChiId Labour
Recommendation, 1999
Recommendation concerning the prohibition and
immediate action for the elimination of the worst forms
of child labour
Place:Geneva
Session of the Conference:87
Date of adoption:17:06:1999
Subject classification: Elimination of Child Labour
Subject classification: Children and Young Persons
Subject: EIimination of ChiId Labour and
Protection of ChiIdren and Young Persons
The General Conference of the nternational Labour
Organization,
Having been convened at Geneva by the Governing
Body of the nternational Labour Office, and having
met in its Eighty-seventh Session on 1 June 1999,
and
Having adopted the Worst Forms of Child Labour
Convention, 1999, and
Having decided upon the adoption of certain
proposals with regard to child labour, which is the
fourth item on the agenda of the session, and
Having determined that these proposals shall take the
form of a Recommendation supplementing the Worst
Forms of Child Labour Convention, 1999;
adopts this seventeenth day of June of the year one
thousand nine hundred and ninety-nine the following
Recommendation, which may be cited as the Worst
Forms of Child Labour Recommendation, 1999.
1. The provisions of this Recommendation
supplement those of the Worst Forms of Child Labour
Convention, 1999 (hereafter referred to as "the
Convention"), and should be applied in conjunction
with them.
. Programmes of action
2. The programmes of action referred to in Article 6 of
the Convention should be designed and implemented
as a matter of urgency, in consultation with relevant
government institutions and employers' and workers'
organizations, taking into consideration the views of
the children directly affected by the worst forms of
child labour, their families and, as appropriate, other
concerned groups committed to the aims of the
Convention and this Recommendation. Such
programmes should aim at, inter alia:
(a) identifying and denouncing the worst forms of child
labour;
(b) preventing the engagement of children in or
removing them from the worst forms of child labour,
protecting them from reprisals and providing for their
rehabilitation and social integration through measures
which address their educational, physical and
psychological needs;
(c) giving special attention to:
(i) younger children;
(ii) the girl child;
(iii) the problem of hidden work situations, in which
girls are at special risk;
(iv) other groups of children with special vulnerabilities
or needs;
(d) identifying, reaching out to and working with
communities where children are at special risk;
(e) informing, sensitizing and mobilizing public opinion
and concerned groups, including children and their
families.
. Hazardous work
3. n determining the types of work referred to under
Article 3(d) of the Convention, and in identifying
where they exist, consideration should be given, inter
alia, to:
(a) work which exposes children to physical,
psychological or sexual abuse;
(b) work underground, under water, at dangerous
heights or in confined spaces;
(c) work with dangerous machinery, equipment and
tools, or which involves the manual handling or
transport of heavy loads;
(d) work in an unhealthy environment which may, for
example, expose children to hazardous substances,
agents or processes, or to temperatures, noise levels,
or vibrations damaging to their health;
(e) work under particularly difficult conditions such as
work for long hours or during the night or work where
the child is unreasonably confined to the premises of
the employer.
4. For the types of work referred to under Article 3(d)
of the Convention and Paragraph 3 above, national
laws or regulations or the competent authority could,
after consultation with the workers' and employers'
organizations concerned, authorize employment or
work as from the age of 16 on condition that the
health, safety and morals of the children concerned
are fully protected, and that the children have
received adequate specific instruction or vocational
training in the relevant branch of activity.
. mplementation
5. (1) Detailed information and statistical data on the
nature and extent of child labour should be compiled
and kept up to date to serve as a basis for
determining priorities for national action for the
abolition of child labour, in particular for the prohibition
and elimination of its worst forms as a matter of
urgency.
Duman / Labor I / Prof. Battad / Page 138
(2) As far as possible, such information and statistical
data should include data disaggregated by sex, age
group, occupation, branch of economic activity, status
in employment, school attendance and geographical
location. The importance of an effective system of
birth registration, including the issuing of birth
certificates, should be taken into account.
(3) Relevant data concerning violations of national
provisions for the prohibition and elimination of the
worst forms of child labour should be compiled and
kept up to date.
6. The compilation and processing of the information
and data referred to in Paragraph 5 above should be
carried out with due regard for the right to privacy.
7. The information compiled under Paragraph 5 above
should be communicated to the nternational Labour
Office on a regular basis.
8. Members should establish or designate appropriate
national mechanisms to monitor the implementation of
national provisions for the prohibition and elimination
of the worst forms of child labour, after consultation
with employers' and workers' organizations.
9. Members should ensure that the competent
authorities which have responsibilities for
implementing national provisions for the prohibition
and elimination of the worst forms of child labour
cooperate with each other and coordinate their
activities.
10. National laws or regulations or the competent
authority should determine the persons to be held
responsible in the event of non-compliance with
national provisions for the prohibition and elimination
of the worst forms of child labour.
11. Members should, in so far as it is compatible with
national law, cooperate with international efforts
aimed at the prohibition and elimination of the worst
forms of child labour as a matter of urgency by:
(a) gathering and exchanging information concerning
criminal offences, including those involving
international networks;
(b) detecting and prosecuting those involved in the
sale and trafficking of children, or in the use,
procuring or offering of children for illicit activities, for
prostitution, for the production of pornography or for
pornographic performances;
(c) registering perpetrators of such offences.
12. Members should provide that the following worst
forms of child labour are criminal offences:
(a) all forms of slavery or practices similar to slavery,
such as the sale and trafficking of children, debt
bondage and serfdom and forced or compulsory
labour, including forced or compulsory recruitment of
children for use in armed conflict;
(b) the use, procuring or offering of a child for
prostitution, for the production of pornography or for
pornographic performances; and
(c) the use, procuring or offering of a child for illicit
activities, in particular for the production and
trafficking of drugs as defined in the relevant
international treaties, or for activities which involve the
unlawful carrying or use of firearms or other weapons.
13. Members should ensure that penalties including,
where appropriate, criminal penalties are applied for
violations of the national provisions for the prohibition
and elimination of any type of work referred to in
Article 3(d) of the Convention.
14. Members should also provide as a matter of
urgency for other criminal, civil or administrative
remedies, where appropriate, to ensure the effective
enforcement of national provisions for the prohibition
and elimination of the worst forms of child labour,
such as special supervision of enterprises which have
used the worst forms of child labour, and, in cases of
persistent violation, consideration of temporary or
permanent revoking of permits to operate.
15. Other measures aimed at the prohibition and
elimination of the worst forms of child labour might
include the following:
(a) informing, sensitizing and mobilizing the general
public, including national and local political leaders,
parliamentarians and the judiciary;
(b) involving and training employers' and workers'
organizations and civic organizations;
(c) providing appropriate training for the government
officials concerned, especially inspectors and law
enforcement officials, and for other relevant
professionals;
(d) providing for the prosecution in their own country
of the Member's nationals who commit offences under
its national provisions for the prohibition and
immediate elimination of the worst forms of child
labour even when these offences are committed in
another country;
(e) simplifying legal and administrative procedures
and ensuring that they are appropriate and prompt;
(f) encouraging the development of policies by
undertakings to promote the aims of the Convention;
(g) monitoring and giving publicity to best practices on
the elimination of child labour;
(h) giving publicity to legal or other provisions on child
labour in the different languages or dialects;
(i) establishing special complaints procedures and
making provisions to protect from discrimination and
reprisals those who legitimately expose violations of
the provisions of the Convention, as well as
establishing helplines or points of contact and
ombudspersons;
Duman / Labor I / Prof. Battad / Page 139
(j) adopting appropriate measures to improve the
educational infrastructure and the training of teachers
to meet the needs of boys and girls;
(k) as far as possible, taking into account in national
programmes of action:
(i) the need for job creation and vocational training for
the parents and adults in the families of children
working in the conditions covered by the Convention;
and
(ii) the need for sensitizing parents to the problem of
children working in such conditions.
16. Enhanced international cooperation and/or
assistance among Members for the prohibition and
effective elimination of the worst forms of child labour
should complement national efforts and may, as
appropriate, be developed and implemented in
consultation with employers' and workers'
organizations. Such international cooperation and/or
assistance should include:
(a) mobilizing resources for national or international
programmes;
(b) mutual legal assistance;
(c) technical assistance including the exchange of
information;
(d) support for social and economic development,
poverty eradication programmes and universal
education.
a. Mnors under the Consttuton, Art. II, Sec. 13
Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social
well-being. t shall inculcate in the youth patriotism
and nationalism, and encourage their involvement in
public and civic affairs.
b. Coverage, RA 9231, Sec. 2, par. 3 on Sec. 12;
Book III, Rue XII, Sec. 1
(See Above)
c. Empoyment of Chdren, Art. 139; RA 7610, Sec.
12-16; DOLE Memo Circular No. 2, S 1998
Re; Hazardous and Non-Hazardous
Establishments
RA 7610
ARTICLE VIII
Working ChiIdren
Section 12. Employment of Children. - Children
below fifteen (15) years of age may be employed
except:
(1) When a child works directly under the
sole responsibility of his parents or legal
guardian and where only members of the
employer's family are employed: Provided,
however, That his employment neither
endangers his life, safety and health and
morals, nor impairs his normal development:
Provided, further, That the parent or legal
guardian shall provide the said minor child
with the prescribed primary and/or
secondary education; or
(2) When a child's employment or
participation in public & entertainment or
information through cinema, theater, radio or
television is essential: Provided, The
employment contract concluded by the
child's parent or guardian, with the express
agreement of the child concerned, if
possible, and the approval of the Department
of Labor and Employment: Provided, That
the following requirements in all instances
are strictly complied with:
(a) The employer shall ensure the protection,
health, safety and morals of the child;
(b) the employer shall institute measures to
prevent the child's exploitation or
discrimination taking into account the system
and level of remuneration, and the duration
and arrangement of working time; and;
(c) The employer shall formulate and
implement, subject to the approval and
supervision of competent authorities, a
continuing program for training and skill
acquisition of the child.
n the above exceptional cases where any such child
may be employed, the employer shall first secure,
before engaging such child, a work permit from the
Department of Labor and Employment which shall
ensure observance of the above requirement.
The Department of Labor Employment shall
promulgate rules and regulations necessary for the
effective implementation of this Section.
Section 13. Non-formal Education for Working
Children. - The Department of Education, Culture and
Sports shall promulgate a course design under its
non-formal education program aimed at promoting the
intellectual, moral and vocational efficiency of working
children who have not undergone or finished
elementary or secondary education. Such course
design shall integrate the learning process deemed
most effective under given circumstances.
Section 14. Prohibition on the Employment of
Children in Certain Advertisements. - No person shall
employ child models in all commercials or
advertisements promoting alcoholic beverages,
intoxicating drinks, tobacco and its byproducts and
violence.
Section 15. Duty of Employer. - Every employer shall
comply with the duties provided for in Articles 108 and
109 of Presidential Decree No. 603.
Section 16. Penalties. - Any person who shall violate
any provision of this Article shall suffer the penalty of
Duman / Labor I / Prof. Battad / Page 140
a fine of not less than One thousand pesos (P1,000)
but not more than Ten thousand pesos (P10,000) or
imprisonment of not less than three (3) months but
not more than three (3) years, or both at the discretion
of the court; Provided, That, in case of repeated
violations of the provisions of this Article, the
offender's license to operate shall be revoked.
d. Hours of Work, RA 9231, Sec. 3 on Sec. 12-a
e. Prohbtons Aganst Worst Forms of Chd Labor,
Sec. 3 on Sec. 12-d; Sec 5 on sec. 14
I. Dscrmnaton, Art. 140
g. |ursdcton, Sec. 9 on Sec. 16-A
Readng:
De Rosaro and Bonga, lssues and Caps
Coverning Child Labor, n Chd Labor n the
Phppnes, A Revew of Seected Studes and
Pocy Papers, pp. 178-183 (2000).
3. Househepers/Caregvers
Reference: Arts. 141-152; Omnbus Rues, Book III,
Rue XIII
Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 141. Coverage. - Ths Chapter sha appy to a
persons renderng servces n househods for
compensaton.
"Domestic or household service" sha mean servce
n the empoyers home whch s usuay necessary or
desrabe for the mantenance and en|oyment thereof
and ncudes mnsterng to the persona comfort and
convenence of the members of the empoyers
househod, ncudng servces of famy drvers.
ART. 142. Contract of domestic service. - The orgna
contract of domestc servce sha not ast for more
than two (2) years but t may be renewed for such
perods as may be agreed upon by the partes.
ART. 143. Minimum wage. - (a) Househepers sha be
pad the foowng mnmum wage rates:
(1) Eght hundred pesos (P800.00) a month for
househepers n Mana, Ouezon, Pasay, and Caoocan
ctes and muncpates of Makat, San |uan,
Mandauyong, Muntnupa, Navotas, Maabon,
Paraaque, Las Pas, Pasg, Markna, Vaenzuea,
Tagug and Pateros n Metro Mana and n hghy
urbanzed ctes;
(2) Sx hundred ffty pesos (P650.00) a month for
those n other chartered ctes and frst-cass
muncpates; and
(3) Fve hundred ffty pesos (P550.00) a month for
those n other muncpates.
Provded, That the empoyers sha revew the
empoyment contracts of ther househepers every
three (3) years wth the end n vew of mprovng the
terms and condtons thereof.
Provded, further, That those househepers who are
recevng at east One thousand pesos (P1,000.00)
sha be covered by the Soca Securty System (SSS)
and be entted to a the benefts provded
thereunder. (As amended by Repubc Act No. 7655,
August 19, 1993).
ART. 144. Minimum cash wage. - The mnmum wage
rates prescrbed under ths Chapter sha be the basc
cash wages whch sha be pad to the househepers
n addton to odgng, food and medca attendance.
ART. 145. Assignment to non-household work. - No
househeper sha be assgned to work n a
commerca, ndustra or agrcutura enterprse at a
wage or saary rate ower than that provded for
agrcutura or non-agrcutura workers as prescrbed
heren.
ART. 146. Opportunity for education. - If the
househeper s under the age of eghteen (18) years,
the empoyer sha gve hm or her an opportunty for
at east eementary educaton. The cost of educaton
sha be part of the househepers compensaton,
uness there s a stpuaton to the contrary.
ART. 147. Treatment of househelpers. - The empoyer
sha treat the househeper n a |ust and humane
manner. In no case sha physca voence be used
upon the househeper.
ART. 148. 8oard, lodging, and medical attendance. -
The empoyer sha furnsh the househeper, free of
charge, sutabe and santary vng quarters as we
as adequate food and medca attendance.
ART. 149. lndemnity for unjust termination of
services. - If the perod of househod servce s fxed,
nether the empoyer nor the househeper may
termnate the contract before the expraton of the
term, except for a |ust cause. If the househeper s
un|usty dsmssed, he or she sha be pad the
compensaton aready earned pus that for ffteen
(15) days by way of ndemnty.
If the househeper eaves wthout |ustfabe reason,
he or she sha forfet any unpad saary due hm or
her not exceedng ffteen (15) days.
Duman / Labor I / Prof. Battad / Page 141
ART. 150. 5ervice of termination notice. - If the
duraton of the househod servce s not determned
ether n stpuaton or by the nature of the servce,
the empoyer or the househeper may gve notce to
put an end to the reatonshp fve (5) days before the
ntended termnaton of the servce.
ART. 151. Employment certification. - Upon the
severance of the househod servce reaton, the
empoyer sha gve the househeper a wrtten
statement of the nature and duraton of the servce
and hs or her effcency and conduct as househeper.
ART. 152. Employment record. - The empoyer may
keep such records as he may deem necessary to
refect the actua terms and condtons of
empoyment of hs househeper, whch the atter
sha authentcate by sgnature or thumbmark upon
request of the empoyer.
RULE XIII
Empoyment of Househepers
SECTION 1. Genera statement on coverage. - (a)
The provsons of ths Rue sha appy to a
househepers whether empoyed on fu or part-tme
bass.
(b) The term "househeper" as used heren s
synonymous to the term "domestc servant" and
sha refer to any person, whether mae or femae,
who renders servces n and about the empoyer's
home and whch servces are usuay necessary or
desrabe for the mantenance and en|oyment
thereof, and mnsters excusvey to the persona
comfort and en|oyment of the empoyer's famy.
SECTION 2. Method of payment not determnant. -
The provsons of ths Rue sha appy rrespectve of
the method of payment of wages agreed upon by the
empoyer and househeper, whether t be houry,
day, weeky, or monthy, or by pece or output
bass.
SECTION 3. Chdren of househepers. - The chdren
and reatves of a househeper who ve under the
empoyer's roof and who share the accommodatons
provded for the househepers by the empoyer sha
not be deemed as househepers f they are not
otherwse engaged as such and are not requred to
perform any substanta househod work.
SECTION 4. Empoyment contract. - The nta
contract for househod servce sha not ast for more
than two (2) years. However, such contract may be
renewed from year to year.
SECTION 5. Mnmum monthy wage. - The mnmum
compensaton of househepers sha not be ess than
the foowng rates:
(a) Sxty pesos (P60.00) a month for those empoyed
n the ctes of Mana, Ouezon, Pasay and Caoocan,
and n the muncpates of Makat, San |uan,
Mandauyong, Muntnupa, Navotas, Maabon,
Paraaque, Las Pas, Pasg and Markna, n the
Provnce of Rza.
(b) Forty-fve pesos (P45.00) a month for those
empoyed n other chartered ctes and frst cass
muncpates; and
(c) Thrty pesos (P30.00) a month for those n other
muncpates.
SECTION 6. Equvaent day rate. - The equvaent
mnmum day wage rate of househepers sha be
determned by dvdng the appcabe mnmum
monthy rate by thrty (30) days.
SECTION 7. Payment by resuts. - Where the method
of payment of wages agreed upon by the empoyer
and the househeper s by pece or output bass, the
pece or output rates sha be such as w assure the
househeper of the mnmum monthy or the
equvaent day rate as provded n ths ssuance.
SECTION 8. Mnmum cash wage. - The mnmum
wage rates prescrbed under ths Rue sha be basc
cash wages whch sha be pad to the househepers
n addton to odgng, food and medca attendance.
SECTION 9. Tme and manner of payment. - Wages
sha be pad drecty to the househeper to whom
they are due at east once a month. No deductons
therefrom sha be made by the empoyer uness
authorzed by the househeper hmsef or by exstng
aws.
SECTION 10. Assgnment to non-househod work. -
No househeper sha be assgned to work n a
commerca, ndustra or agrcutura enterprse at a
wage or saary rate ower than that provded for
agrcutura and non-agrcutura workers.
SECTION 11. Opportunty for educaton. - If the
househeper s under the age of eghteen (18) years,
the empoyer sha gve hm or her an opportunty for
at east eementary educaton. The cost of such
educaton sha be part of the househeper's
compensaton, uness there s a stpuaton to the
contrary.
SECTION 12. Treatment of househepers. - The
empoyer sha treat the househeper n a |ust and
humane manner. In no case sha physca voence
be nfcted upon the househeper.
SECTION 13. Board, odgng and medca attendance.
- The empoyer sha furnsh the househeper free
sutabe and santary vng quarters as we as
adequate food and medca attendance.
SECTION 14. Indemnty for un|ust termnaton of
servce. - If the perod for househod servce s fxed,
nether the empoyer nor the househeper may
termnate the contract before the expraton of the
term, except for a |ust cause. If the househeper s
un|usty dsmssed, he or she sha be pad the
compensaton aready earned pus that for ffteen
(15) days by way of ndemnty.
If the househeper eaves wthout |ustfabe reason,
he or she sha forfet any unpad saary due hm or
her not exceedng ffteen (15) days.
SECTION 15. Empoyment certfcaton. - Upon the
severance of the househod servce reatonshp, the
househeper may demand from the empoyer a
wrtten statement of the nature and duraton of the
servce and hs or her effcency and conduct as
househeper.
Duman / Labor I / Prof. Battad / Page 142
SECTION 16. Funera expenses. - In case of death of
the househeper, the empoyer sha bear the funera
expenses commensurate to the standards of fe of
the deceased.
SECTION 17. Dsposton of the househeper's body.
- Uness so desred by the househeper or by hs or
her guardan wth court approva, the transfer or use
of the body of the deceased househeper for
purposes other than bura s prohbted. When so
authorzed by the househeper, the transfer, use and
dsposton of the body sha be n accordance wth
the provsons of Repubc Act No. 349.
SECTION 18. Empoyment records. - The empoyer
may keep such records as he may deem necessary to
refect the actua terms and condtons of
empoyment of hs househeper whch the atter sha
authentcate by sgnature or thumbmark upon
request of the empoyer.
SECTION 19. Prohbted reducton of pay. - When the
compensaton of the househeper before the
promugaton of these reguatons s hgher than that
prescrbed n the Code and n ths ssuance, the same
sha not be reduced or dmnshed by the empoyer
on or after sad date.
SECTION 20. Reaton to other aws and agreements.
- Nothng n ths Rue sha deprve a househeper of
the rght to seek hgher wages, shorter workng hours
and better workng condtons than those prescrbed
heren, nor |ustfy an empoyer n reducng any
beneft or prvege granted to the househeper under
exstng aws, agreements or vountary empoyer
practces wth terms more favorabe to the
househepers than those prescrbed n ths Rue.
a. Defnton, Rue XIII, Sec. 1 (b)
(b) The term "househeper" as used heren s
synonymous to the term "domestc servant" and
sha refer to any person, whether mae or femae,
who renders servces n and about the empoyer's
home and whch servces are usuay necessary or
desrabe for the mantenance and en|oyment
thereof, and mnsters excusvey to the persona
comfort and en|oyment of the empoyer's famy.
b. Coverage, Art. 141
ART. 141. Coverage. - Ths Chapter sha appy to a
persons renderng servces n househods for
compensaton.
"Domestic or household service" sha mean servce
n the empoyers home whch s usuay necessary or
desrabe for the mantenance and en|oyment thereof
and ncudes mnsterng to the persona comfort and
convenence of the members of the empoyers
househod, ncudng servces of famy drvers.
c. Non-Househod Work, Art. 145
ART. 145. Assignment to non-household work. - No
househeper sha be assgned to work n a
commerca, ndustra or agrcutura enterprse at a
wage or saary rate ower than that provded for
agrcutura or non-agrcutura workers as prescrbed
heren.
Apex Mnng Co. NLRC, 196 SCRA 251 (1991)
e. Condtons of Empoyment, Arts. 121-152; Cv
Code, Arts. 1689-1699
ART. 151. Employment certification. - Upon the
severance of the househod servce reaton, the
empoyer sha gve the househeper a wrtten
statement of the nature and duraton of the servce
and hs or her effcency and conduct as househeper.
ART. 152. Employment record. - The empoyer may
keep such records as he may deem necessary to
refect the actua terms and condtons of
empoyment of hs househeper, whch the atter
sha authentcate by sgnature or thumbmark upon
request of the empoyer.
CIVIL CODE
Art. 1689. Househod servce sha aways be
reasonaby compensated. Any stpuaton that
househod servce s wthout compensaton sha be
vod. Such compensaton sha be n addton to the
house heper's odgng, food, and medca
attendance.
Art. 1690. The head of the famy sha furnsh, free of
charge, to the house heper, sutabe and santary
quarters as we as adequate food and medca
attendance.
Art. 1691. If the house heper s under the age of
eghteen years, the head of the famy sha gve an
opportunty to the house heper for at east
eementary educaton. The cost of such educaton
sha be a part of the house heper's compensaton,
uness there s a stpuaton to the contrary.
Art. 1692. No contract for househod servce sha ast
for more than two years. However, such contract
may be renewed from year to year.
Art. 1693. The house heper's cothes sha be sub|ect
to stpuaton. However, any contract for househod
servce sha be vod f thereby the house heper
cannot afford to acqure sutabe cothng.
Art. 1694. The head of the famy sha treat the
house heper n a |ust and humane manner. In no
case sha physca voence be used upon the house
heper.
Duman / Labor I / Prof. Battad / Page 143
Art. 1695. House heper sha not be requred to work
more than ten hours a day. Every house heper sha
be aowed four days' vacaton each month, wth pay.
Art. 1696. In case of death of the house heper, the
head of the famy sha bear the funera expenses f
the house heper has no reatves n the pace where
the head of the famy ves, wth suffcent means
therefor.
Art. 1697. If the perod for househod servce s fxed
nether the head of the famy nor the house heper
may termnate the contract before the expraton of
the term, except for a |ust cause. If the house heper
s un|usty dsmssed, he sha be pad the
compensaton aready earned pus that for ffteen
days by way of ndemnty. If the house heper eaves
wthout |ustfabe reason, he sha forfet any saary
due hm and unpad, for not exceedng ffteen days.
Art. 1698. If the duraton of the househod servce s
not determned ether by stpuaton or by the nature
of the servce, the head of the famy or the house
heper may gve notce to put an end to the servce
reaton, accordng to the foowng rues:
(1) If the compensaton s pad by the day,
notce may be gven on any day that the
servce sha end at the cose of the
foowng day;
(2) If the compensaton s pad by the week,
notce may be gven, at the atest on the
frst busness day of the week, that the
servce sha be termnated at the end of the
seventh day from the begnnng of the
week;
(3) If the compensaton s pad by the
month, notce may be gven, at the atest,
on the ffth day of the month, that the
servce sha cease at the end of the month.
Art. 1699. Upon the extngushment of the servce
reaton, the house heper may demand from the
head of the famy a wrtten statement on the nature
and duraton of the servce and the effcency and
conduct of the house heper.

3. Homeworkers
a. Coverage and Reguaton, Arts. 153-155; DO
5, DOLE, 4 Feb. 1992, now Book III, Rue XIV
ART. 153. Regulation of industrial homeworkers. - The
empoyment of ndustra homeworkers and fed
personne sha be reguated by the government
through the approprate reguatons ssued by the
Secretary of Labor and Empoyment to ensure the
genera wefare and protecton of homeworkers and
fed personne and the ndustres empoyng them.
ART. 154. Regulations of 5ecretary
of Labor. - The reguatons or orders
to be ssued pursuant to ths
Chapter sha be desgned to
assure the mnmum terms and
condtons of empoyment
appcabe to the ndustra
homeworkers or fed personne
nvoved.
ART. 155. Distribution of
homework. - For purposes of ths
Chapter, the "employer" of
homeworkers ncudes any person,
natura or artfca who, for hs
account or beneft, or on behaf of
any person resdng outsde the
country, drecty or ndrecty, or
through an empoyee, agent
contractor, sub-contractor or any
other person:
(1) Devers, or causes to be
devered, any goods, artces or
materas to be processed or
fabrcated n or about a home and
thereafter to be returned or to be
dsposed of or dstrbuted n
accordance wth hs drectons; or
(2) Ses any goods, artces or materas to be
processed or fabrcated n or about a home and then
rebuys them after such processng or fabrcaton,
ether by hmsef or through some other person.
RULE XIV
Empoyment of Homeworkers
SECTION 1. Genera statement on coverage. - Ths
Rue sha appy to any homeworker who performs n
or about hs home any processng of goods or
materas, n whoe or n part, whch have been
furnshed drecty or ndrecty by an empoyer and
thereafter to be returned to the atter.
SECTION 2. Defntons. - As used n ths Rue, the
foowng terms sha have the meanngs ndcated
hereunder:
(a) "Home" means any room, house, apartment, or
other premses used reguary, n whoe or n part, as
a dweng pace, except those stuated wthn the
premses or compound of an empoyer, contractor,
and the work performed theren s under the actve
or persona supervson by, or for, the atter.
(b) "Empoyer" means any natura or artfca person
who, for hs own account or beneft, or on behaf of
any person resdng outsde the Phppnes, drecty
or ndrecty, or through any empoyee, agent,
contractor, sub-contractor; or any other person:
(1) Devers or causes to be devered any goods or
artces to be processed n or about a home and
thereafter to be returned or to be dsposed of or
dstrbuted n accordance wth hs drecton; or
(2) Ses any goods or artces for the purpose of
havng such goods or artces processed n or about a
home and then repurchases them hmsef or through
another after such processng.
(c) "Contractor" or "sub-contractor" means any
person who, for the account or beneft of an
empoyer, devers or caused to be devered to a
homeworker goods or artces to be processed n or
about hs home and thereafter to be returned,
dsposed of or dstrbuted n accordance wth the
drecton of the empoyer.
(d) "Processng" means manufacturng, fabrcatng,
fnshng, reparng, aterng, packng, wrappng or
handng any matera.
SECTION 3. Payment for work. - (a) Immedatey
upon recept of the fnshed goods or artces, the
Duman / Labor I / Prof. Battad / Page 144
empoyer sha pay the homeworker or the contractor
or sub-contractor, as the case may be, for the work
performed; Provded, However, that where payment
s made to a contractor or sub-contractor, the
homeworker sha be pad wthn the week after the
contractor or sub-contractor has coected the goods
or artces from the homeworkers.
(b) The Secretary of Labor and Empoyment sha
from tme to tme estabsh the standard mnmum
pece or output rate n approprate orders for the
partcuar work or processng to be performed by the
homeworkers.
SECTION 4. Deductons. - No empoyee, contractor,
or sub-contractor sha make any deducton from the
homeworker's earnngs for the vaue of materas
whch have been ost, destroyed, soed or otherwse
damaged uness the foowng condtons are met:
(a) The homeworker concerned s ceary shown to be
responsbe for the oss or damage;
(b) The empoyee s gven reasonabe opportunty to
show cause why deductons shoud not be made;
(c) The amount of such deducton s far and
reasonabe and sha not exceed the actua oss or
damages; and
(d) The deducton s made at such rate that the
amount deducted does not exceed 20% of the
homeworker's earnngs n a week.
SECTION 5. Condtons for payment of work. - (a)
The empoyer may requre the homeworker to re-do
work whch has been mpropery executed wthout
havng to pay the stpuated rate more than once.
(b) An empoyer, contractor, or sub-contractor need
not pay the homeworker for any work whch has
been done on goods and artces whch have been
returned for reasons attrbutabe to the faut of the
homeworker.
SECTION 6. Dsagreement between homeworkers and
empoyer. - In cases of dsagreement between the
homeworker and the empoyer, contractor or sub-
contractor on matters fang under Secton 4 (a), 5
and 6 of ths Rue, ether party may refer the case to
the Regona Offce havng |ursdcton over the
homeworker. The Regona Offce sha decde the
case wthn ten (10) workng days from recept of the
case. Its decson sha be fna and unappeaabe.
SECTION 7. Labty of empoyer and contractor. -
Whenever an empoyer sha contract wth another
for the performance of the empoyer's work, t sha
be the duty of such empoyer to provde n such
contract that the empoyees or homeworkers of the
contractor and the atter's sub-contractor sha be
pad n accordance wth the provsons of ths Rue. In
the event that such contractor or sub-contractor fas
to pay the wages or earnngs of hs empoyees or
homeworkers as specfed n ths Rue, such empoyer
sha be |onty and severay abe wth the
contractor or sub-contractor to the workers of the
atter, to the extent that such work s performed
under such contract, n the same manner as f the
empoyees or homeworkers were drecty engaged by
the empoyer.
b. Defnton, DO 5, Sec. 2, DO 5
c. Regstraton, Secs. 4-6
d. Condtons of Empoyment/Deductons, Secs.
6-9
I. |ont and Severa Labty of
Empoyer/Contractor, Sec. 11
g. Prohbtons, Sec. 13
h. Enforcement, Sec. 10
NOTES:
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Duman / Labor I / Prof. Battad / Page 146
K. Mental, Dental and Occupational Safety
Reference: Art. 156-165; Omnbus Rues,
Book IV, Rue I, Secs. 1-10; Rue II, Secs. 1-!0
1. Coverage, Rue I, Sec. 1
2. Frst Ad Treatment, Art. 156
3. Emergency Medca and Denta
Servces
a. When Requred, Art. 157
b. When Not Requred, Art. 158
4. Empoyer assstance, Art. 161
5. Occupatona Safety and Heath
Standards, Tranng of
Supervsor/Techncan
a. When Requred, Rue II, Secs. 5 (a) (d)
b. When Not Requred, Rue II, Sec. 5 (e)
6. Enforcement/DOLE Obgatons,
Arts. 162-165
Note: Arts. 166-208: repeaed by SSS Law
of 1997 (RA 1161, as amended); Re: Art. 209, see
Natona Heath Insurance act of 1995 (RA 7875);
Book IV, Rue II, Sec. 8
L. Employee Classification
1. Coverage, Art. 278
2. Empoyer Recognton
Phppne Federaton of Credt Cooperatves, Inc.
v. NLRC, 300 SCRA 72 (1998)
Pangnan v. Genera Mng corp., 434 SCRA 159
(2004)
3. Empoyer Determnaton/Desgnaton
De Leon v. NLRC, 176 SCRA 615 (1989)
Voeta v. NLRC, 280 SCRA 520 (1997)
San Mgue Corporaton v. NLRC, 297 SCRA 277
(1998)
4. Management Prerogatve
Mana Eectrc Co. v. NLRC, 263 SCRA 531
(1996)
PAL, Inc. v. Pascua, 409 SCRA 195 (2003)
Coca-coa Botters Ph., Inc. Saes Force Unon-
PTGWO-BALAIS v. Coca-coa Botters Ph., Inc.,
GR No. 155651, 464 SCRA 507 (2005)
5. Knds of Empoyee
a. Reguar Empoyees, art. 280, 1
st
par.; 280,
2
nd
par.; 281, ast sentence; 75(d); Omnbus rues,
Book VI, Rue 1, Secs. 5(a), (b) and 6.
1) Type
Pangnan v. Genera Mng Corporaton., 434
SCRA 159 (2004)
2) Nature of Work
Perpetua Hep Credt Corp., Inc. v. Faburada, et
a., 366 SCRA 693 ( 2001)
Magsan v. Natona Organzaton of Workng
Men, 403 SCRA 199 (2003)
Hacenda Fatma v. Natona Federaton of
Sugarcane Workers Food and Genera Trade, 396
SCRA 518 (2003)
Pentagon Internatona Shppng, Inc. v.
Adeantar, 235 SCRA 342 (2004)
Lopez v. Metropotan Waterworks and Sewerage
System, 462 SCRA 428 (2005)
3) Extended Perod
Andon Eectrc co., Inc. v. NLRC, 308 SCRA 340
(1999)
4) Repeated Renewa of Contract

Maragunot v. NLRC, 284 SCRA 539 (1998)
Unversa Pastc Corp. v. Catapang, 473 SCRA
189 (2005)
b. Pro|ect Empoyee, art. 280, 1
st
par.
1) Defnton
Imbudo v. NLRC, 329 SCRA 357 (2000)
Assocaton of Trade Unon v. Comm. Abea, 323
SCRA 50 (2005)
2) Pro|ect Empoyees
Sandova Shpyards, Inc. v. NLRC, 136 SCRA 674
(1985)
Va v. NLRC, 284 SCRA 105 (1998)
Chua v. Court of Appeas, 440 SCRA 121 (2004)
3) Workpoo Empoyees

Aguar Corp. v. NLRC, 269 SCRA 596 (1997)
Maragunot v. NLRC, supra
Casua, Art. 280, 2
nd
par.; Omnbus rues,
Book VI, Rue 1, Sec. 5 (b)
1) Nature of Work
A.M. Oreta and Co. Inc. v. NLRC, 176 SCRA 218
(1989)
2) One Year Servce
Kmbery v. Dron, 185 SCRA 190 (1990)
Integrated Contractor and Pumbng Works, Inc.
v. Court of Appeas, 464 SCRA 544 (2005)
San Mgue Corp. v. Abea, supra
c. Fxed-Term
Brent Schoo v. Zamora, 181 SCRA 702 (1990)
Paomares v. NLRC, 277 SCRA 439 (1997)
Phps Semconductor etc. v. Fadrquea, 422
SCRA 408 (2004)
d. Seasona
Ph. Tobacco Fue-curng & Redryng Corp. v.
NLRC, 300 SCRA 37 (1998)
Hacenda Bno v. Cuenca, 456 SCRA 300 (2005)
e. Probatonary
1) Defnton
Duman / Labor I / Prof. Battad / Page 147
Phppne Federaton of Credt Cooperatves, Inc.
v. NLRC, supra
Cebu Marne Beach Resort v. NLRC, 414 SCRA
173 (2003)
2) Empoyer Rght to Set Perod/Obgaton
Orent Express Pacement Phppnes v. NLRC,
273 SCRA 256 1997)
3) Duraton/Excepton
A Prme Securty Servces, Inv. V. NLRC, 322
SCRA 283 (2000)
Mtsubsh Motors v. NLRC, 226 SCRA 417 (1993)
4) Crtera Reguarzaton
Acra v. NLRC, 431 SCRA 508 (2004)
5) Extenson of Contract
Marwasa Manufacturng, Inc. v. Leogardo, 169
SCRA 465 (1989)
6) Absorbed Empoyees
Cebu Stevedorng Co. Inc. v. Regona Drector,
168 SCRA 315 (1988)
7) Rue on Prvate Schoo Teachers
Escorpzo v. Unv. of Baguo, 306 SCRA 497
(1999)
La Consoacon Coege v. NLRC, 366 SCRA 226
(2001)
Chang Ka Sheck Coege v. Court of Appeas,
437 SCRA 171 (2004)
l. Termination of Employment
1. Coverage, Art. 278; Book VI, Rue 1, Sec. 1
2. Securty of Tenure, Art 279; 277 (b)
a. Nature/Ratonae
Losa Tan v. Sahs Internatona Hote, 181
SCRA 738 (1990)
Sonza v. ABS-CBN Broadcastng Corp., 431 SCRA
381 (2004)
Metro Eye Securty, Inc. v. |ue V. Sosona, GR
No. 167637, Sept. 28, 2007
b. Coverage
Laba|o v. Ae|andro, 165 SCRA 747 (1988)
Skhword Management and marketng
Corporaton v. NLRC, 186 SCRA 465 (1990)
Interorent Martme Enterprses Inc. v. NLRC,
235 SCRA 268 (1994)
c. Management Prerogatve
Phppne Amercan Lfe & Genera Insurance Co.
v. Gramaze, 442 SCRA 274 (2004)
d. Requstes for Lawfu Dsmssa
Perpetua Hep Credt Corp., Inc. v. Faburada,
supra
e. Burden of Proof
Azcor Manufacturng v. NLRC, 303 SCRA 26
(1999)
Chavez v. NLRC, supra
f. Measure of Penaty
Farro v. Court of Appeas, 435 SCRA 543 (2000)
Vaao v. Court of Appeas, 435 SCRA 543 (2004)
Etcuban v. Supco Lnes, Inc. 448 SCRA 516
(2005)
g. Factors
Assocated Labor Unon v. NLRC, 302 SCRA 708
(1999)
Phppne Long dstance Teephone C. Inc. v.
NLRC, 303 SCRA 9 (1999)
3. Termnaton of Empoyment by Empoyee
a. Resgnaton
Chenver Deco Prnt v. NLRC, 325 SCRA 758
(2000)
Chna Bankng Corp. v. Borromeo, supra
W Hahn Enterprses v. Maghuyo, 447 SCRA
349 (2004)
BMG Records (Phs.), Inc. et a. v. Ada C.
Apareco, et a., GR 153290, Sept. 5, 2007
1) |ust Causes, Art. 285 (b)
2) Wthout |ust Cause - Requstes, Art. 285 (a);
Const. Art. III, Sec. 18 (2)
Pascua v. NLRC, 287 SCRA 554 (1998)
Azcor v. NLRC, supra
Ph. Wreess Inc. v. NLRC, 310 SCRA 653 (1999)
A Prme Securty Servces, Inc. v. NLRC, supra
b. Performance of Mtary or Cvc duty, Art.
286, Book VI, Rue I, Sec. 12
4. Termnaton of Empoyment by Empoyer
a. Bass of Rght and Requrements, Arts. 282-284;
277 (b)
1) Bass
PLDT v. Toentno, 438 SCRA 555 (2004)
2) Substantve and Procedura Due Process
Phppne Natona Bank v. Cabanag, 460 SCRA
514 (2005)
Duman / Labor I / Prof. Battad / Page 148
b. |ust Causes - Substantve Due Process
1) Serous Msconduct/Wfu Dsobedence
(Insubordnaton)
Vaao v. Court of Appeas, supra
Vamor Gof Cub v. Ph, 472 SCRA 36 (2005)
Coca-Coa Botters, Ph., Inc. v. Kapsanan ng
Maayang Manggagawa sa Coca-Coa, 452 SCRA
480 (2005)
R Transport Corp. v. E|anera, 428 SCRA 725
(2004)
Mcro Saes Operaton Network v. NLRC, 472
SCRA 328 (2005)
2) Gross and Habtua Negect of Dutes
Cebu Fveneer Corporaton v. NLRC, 286 SCRA
556 (1998)
Reyes v. Maxms Tea House, 398 SCRA 288
(2003)
Chua v. NLRC, 453 SCRA 244 (2005)
3) Fraud or Wfu Breach of Trust
Santos v. San Mgue Corp., 399 SCRA 172
(2003)
Dea Cruz , NLRC, 416 SCRA 226 (2003)
Ph. Natona Constructon Corp. v. Matas, 395
SCRA 720 (2003)
4) Commsson of Crme, Art. 282 (d)
Sampaguta Garments Corporaton v. NLRC, 233
SCRA 260 (1994)
5) Anaogous, Art. 282 (e)
Cathedra Schoo of Technoogy v. NLRC, 214
SCRA 551, 559 (1992)

6) Others - |ust Causes Camed by Empoyer
a) Abandonment
Nueva Ec|a Eectrc Cooperatve v. NLRC, 461
SCRA169 (2005)
Chavez v. NLRC, supra
Foren Hote v. NLRC, 456 SCRA 128 (2005)
b) Courtesy Resgnaton
Batongbaca v. Assocated Bank, 168 SCRA 600
(1988)
c) Change of Ownershp
Manmos v. NLRC, 242 SCRA 145 (1995)
d) Habtua Absenteesm
Unon Motor Corp. v. NLRC, 445 SCRA 683 (2004)
e) Fxed-Term Empoyment
Magsan v. Natona Organzaton of Workng
Men, supra
f) Past offenses
La Carota Panters Assn. v. NLRC, 298 SCRA 252
(1998)
Ramoran v. |ardne CMG, Inc. 326 SCRA 208
(2000)
g) Habtua Infractons
Gusto v. Wyeth Ph., Inc., 440 SCRA 67 (2004)
h) Immoraty
Santos v. NLRC, 287 SCRA 117 (1998)
) Convcton of Crme
Sampaguta Garments Corp. v. NLRC, 233 SCRA
260 1994)
|) Ouafcaton Requrements
Lanzaderas v. Amethyst Securty & Genera
Servces, Inc., supra
7) Constructve Dsmssa
Phppne Amercan Lfe v. Grama|e, 442 SCRA
274 (2003)
Dngasan v. Atenza, 433 SCRA 263 (2004)
Dust Hote Nkko v. Natona Unon n Hote,
Restaurant and Aed Industres, 466 SCRA 374
(2005)
Angena Francsco v. NLRC, et a., supra
8) Transfer
OSS Securty and Aed Servces Inc. v. NLRC,
325 SCRA 157 (2000)
Lanzaderas v. Amethyst Securty and Genera
Servces, Inc., supra
Mendoza v, Rura Bank, etc., 433 SCRA 756
(2004)
9) Promoton
Ph. Teegraph & Teephone Corp. v. Court of
Appeas, 412 SCRA 263 (2003)
10) Preventve Suspenson
Phppne Arnes, Inc. v. NLRC, 292 SCRA 40
(1998)
11) Resdency Tranng
Fex v. Buenaseda, 240 SCRA 139 (1995)
c. Substantve Requrements - Busness
Reated Causes, Art. 283
1) Bass
Edge Appare Inc. v. NLRC, 286 SCRA 302 (1998)
2) Busness Reated or Authorzed Causes
a) Instaaton of Labor Savng Devces, Art. 283
Compex Eectroncs Empoyees Assn. v. NLRC,
310 SCRA 403 (1999)
b) Retrenchment to Prevent Losses, Art. 283
Duman / Labor I / Prof. Battad / Page 149
Asan Acoho Corp. v. NLRC, 305 SCRA 415
(1999)
NDC-Guthre Pantatons, Inc. v. NLRC, 362 SCRA
416.(2001)
Composte Enterprses, Inc. v. Emo M.
Caparoso, et a., GR No. 159919, Aug. 8, 2007
c) Redundancy, Art. 283
Asufrn v. San Mgue Corp., 425 SCRA 270
(2004)
Goden Tread Knttng Industres, Inc. v. NLRC,
304 SCRA 568
Lopez Sugar Corp. v. Franco, 458 SCRA 515
(2005)
d) Cosure of Busness, Art. 283
Mac Adams Meta Engneerng Workers Unon-
Independent v. Mac Adams Meta Engneerng,
414 SCRA 411 (2003)
SSS v. Hon. Chaves, 440 SCRA 269 (2004)
ME-SHURN Corporaton v. ME-SHURN Workers
Unon-FSM, 448 SCRA 41 (2005)
e) Temporary Cosure, Art. 286
Vadez v. NLRC, 286 SCRA 87 (1998)
3) Dsease, Art 284
Vcente Sy v. Court of Appeas, supra
d. Procedura Requrements, Art. 277 (b); Book
VI, Rue I, Secs. 1-3 Omnbus Rues
1) In Genera/Labty for Non-Compance wth
Procedura Requrements
Serrano v. NLRC, 323 SCRA 445 (2000)
Santos v. San Mgue Corp., supra
Agabon v. NLRC, supra
2) Rght to Counse
Saaw v. NLRC, 202 SCRA 7, 12-15 (1991)
3) Notce
Agabon v. NLRC, supra
Cangat v. NLRC, 453 SCRA 142 (2005)
4) Hearng
a) Hearng
Permex, Inc. v. NLRC, 323 SCRA 121 (2000)
Arboeda v. NLRC, 303 SCRA 39 (1999)
b) Use of Poston Paper
Shoppes Mana, Inc. v. NLRC, 419 SCRA 354
(2004)
5) Decson/Award - Const., Art. VIII, Sec. 14
Peps-Coa Products Ph., Inc. v. Court of
Appeas, 443 SCRA 580 (2004)
6) Burden of Proof
Equtabe PCIBank v. Caguoa, 466 SCRA 658
(2005)
7) Degree of Proof/Substanta Evdence
Phtread Tre & Tubber Corp. v. Vcente, 441
SCRA 574 (2004)
Etcuban v. Supco Lnes, Inc., supra
8) Prescrpton
Savador v. Ph. Mnng servce Corp., 395 SCRA
729 (2003)
9) Dsmssa of Case, Purey on Technca Ground
Ountano v. NLRC, 446 SCRA 195 (2004)
10) Crmna Cases
Ouambao v. NLRC, 254 SCRA 211 (1996)
5. Reefs/Remedes n Iega Dsmssa, Art.
279; 223
a. In Genera; Twn Remedes
Nueva Ec|a Eectrc Cooperatve v. NLRC, supra
Mt. Carme Coege v. |oceyn Resuena, et a., GR
No. 173076, October 10, 2007
Lorenzo Ma. D.G. Aguar v. Burger Machne
Hodngs Corp., et a., GR 172062, Feb. 21, 2007
1) Renstatement
a) Defnton
PNOC-EDC, et a. v. Abea, 448 SCRA 549 (2005)
Pheschem Industra Corp. v. Modez, 458 SCRA
339 (2005)
b) Effect of Faure to Ask Reef
Pheschem Industra Corp. v. Modez, supra
c) Exceptons
) Cosure of Busness
) Economc Busness Condtons
Unon of Supervsors (RB) NATU, etc. v. Sec. of
Labor, 128 SCRA 442 (1984)
) Empoyees Unsutabty
Dvne Word Hgh Schoo v. NLRC, 143 SCRA 346
(1986)
v) Empoyees Retrement/Overage
Espe|o v. NLRC, 255 SCRA 430 (1996)
v) Antpathy and Antagonsm -
Straned Reatons
Aceste Corp. v. NLRC, 449 SCRA 360 (2005)
BPI Empoyees Unon v. BPI, 454 SCRA 357
(2005)
Sagum v. Court of Appeas, 459 SCRA 223 (2005)
v) Not Feasbe
Duman / Labor I / Prof. Battad / Page 150
Bustamante v. NLRC, 265 SCRA 1 (1996)
c) Offer to Renstate
Ranara v. NLRC, 212 SCRA 631 (1992)
2) Backwages
a) Effect of Faure to Cam
De La Cruz v. NLRC, 299 SCRA 1 (1998)
b) Effect of Faure to Order
Aurora Land etc. v. NLRC, 212 SCRA 48 (1997)
St. Mchaes Inst. v. Santos, 371 SCRA 383
(2001)
b) Computaton
Mercury Drug Co. Inc. v. CIR, 56 SCRA 694
(1974)
Bustamante v. NLRC, supra
Torres v. NLRC, 330 SCRA 311 (2000)
Kay Products, Inc. v. CA464 SCRA 544 (2005)
Standard Eectrc Manufacturng Corp. v.
Standard Eectrc Empoyees Unon, 468 SCRA
316 (2005)
BPI Empoyees Unon v. BPI, supra
c) Frnge Beneft
Aurora Land etc. v. NLRC, supra
b. Damages
Coego de San |uan de Letran-Caamba v. Vas,
399 SCRA 550 (2003)
Toosa v. NLRC, 401 SCRA 391 (2003)
Magung v. Ph. Tubercuoss Socety, Inc. 450
SCRA 465 (2005)
Aceste Corp v. NLRC, supra
Sagum v. Court of Appeas, 459 SCRA 223 (2005)
Centra Luzon Conference v. CA, 466 SCRA 711
(04)

c. Separaton Pay
1) When - As Aternatve
Coca-Coa Botters Phs. Inc. v. Vta, 438 SCRA
278 (2004)
Natona Federaton of Labor v. Court of Appeas,
440 SCRA 604 (2004)
Etcuban |r. v. Supco Lnes, Inc., supra
Composte enterprses, Inc. v. Emo M.
Caparoso, et a., supra
2) Computaton/Ratonae
Busness Day Informaton Systems and Servces,
Inc. v. NLRC, 221 SCRA 9 (1993)
Mares v. NLRC, 305 SCRA 500 (1999)
3) Effect of Recept
Arno v. NLRC, 290 SCRA 489 (1998)
c. Fnanca Assstance
1) When Aowed
Phppne Long Dstance Teephone Co. v. NLRC,
164 SCRA 671 (1988)
Pnero v. NLRC, 437 SCRA 112 (2004)
2) When Not Aowed
Ph. Constructon Corp. v. NLRC, 170 SCRA 207
(1989)
Chua v. NLRC, 218 SCRA 545 (1993)
e. Indemnty
Arms Tax v. NLRC, supra
Serrano v. NLRC, supra
f. Labty of Corporate Offcers
Aceste Corp. v. NLRC, supra
]. Retirement, Art. 287; Book VI, Rue II,
Omnbus Rues; RA No. 7641; RA No. 8558 (1998) ;
Labor Advsory on Retrement Pay (Oct. 1999)
1. Retrement
a. Types of Retrement Pan
PAL v. Arne Pots Assocaton of the Ph., 373
SCRA 302 (2002)
Nagut v. NLRC, 408 SCRA 617 (2003)
Sta. Catana Coege v. NLRC, 416 SCRA 233
(2003)
Gerach v. Reuters Ltd., Ph. 448 SCRA 535
(2005)
1) Bass
Gamogamo v. PNOC shppng and Transport
Corp., 381 SCRA 742 (2002)
2) Interpretaton
Lopez v. Natona Stee Corp., 423 SCRA 109
(2004)
Soomon v. Assocaton of Internatona Shppng
Lnes, Inc., 457 SCRA 254 (2005)
4) Egbty
Bron v. South Ph. Unon Msson of the Seventh
Day Adventst Church, 307 SCRA 497 (1999)
REMlNDERS:
1. Vountary rectaton w be graded generousy.
The professor however reserves the rght to ca
on students for rectaton.
2. The 20% rue on absences w be strcty
observed. Three tmes of tardness w be
consdered absent. A those who come between
15 to 30 mnutes after the cass w be marked
"ate"; after 30 mns, "absent".
3. No make-up md-term examnaton w be gven.
REUlREMENT:
Attendance/Rectaton/Assgned Work -
30%
Duman / Labor I / Prof. Battad / Page 151
Md-Term Examnaton -
30%
Fna Examnaton -
30%
Duman / Labor I / Prof. Battad / Page 152