Labor Law Slides

Labor Law Review
Preliminary
Discussions
Constitutional Mandates on
Labor, Labor Law
Labor Legislation, Social
Legislation
What is Labor?
As an act: Exertion by human beings of
physical or mental efforts, or both, towards
the production of goods and services.
As a sector of society: That sector or group
in a society, which derives its livelihood
chiefly from rendition of work or services in
exchange for compensation under
managerial direction (Mendoza, 2001).
Refers to workers, whether agricultural or
non-agricultural
Labor
The State shall protect and promote the interests of the
Filipino Laborer:
Art. II, 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 improved quality of life for all.
Art. II, Sec. 18. The State affirms labor as a primary
social economic force. It shall protect the rights, of
workers and promote their welfare.
Labor
The State shall protect and promote the interests of the
Filipino Laborer:
Art. XII, Sec. 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.
Art XIII, Sec. 14. The State shall protect 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.
Art. XV, Sec. 8. The State shall, from time to time, review to
upgrade the pensions and other benefits due to retirees of
Labor
Rights of Workers
Art. Ill, Sec. 8. The right of the people, including
those employed in the public and private sectors,
to form unions, associations, or societies for
purposes not contrary to law, shall not be abridged.
(formation of labor organizations)
Art. Ill, Sec. 18(2). No involuntary servitude in
any form shall exist except as a punishment for a
crime whereof the party shall have been duly
convicted.
Labor
Protection to Labor Clause
Art. XIII, Sec. 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.
It 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
process affecting their rights and benefits as may be provided by law.
Labor
Protection to Labor Clause
Art. XIII, Sec. 3 , cont.
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 of investments, and to expansion and growth.
Commit Art. XIII, Sec. 3 to

memory!
Defines rights of workers under Labor Standards and
Labor Relations:
Under Labor Standards

Security of Tenure;
Living wage;
Share in the fruits of
production; and
Humane conditions of
work.
Under Labor Relations

Self-Organization
Collective bargaining
and negotiations
Peaceful concerted
activities, including
strike;
Participation in policy
and decision-making
processes.
Social, Labor and Welfare

Legislation
Constitutional provisions on labor are not self-executory, hence the need for Social
Legislation, Labor Legislation and Welfare Legislation
Social Legislation - Laws that provide particular kinds of protection or benefits to
society or segments thereof in furtherance of social justice.
Labor Legislation - Statutes, regulations and jurisprudence governing the relations
between capital and labor. It provides for certain employment standards and a legal
framework for negotiating, adjusting and administering those standards and other
incidents of employment.
Welfare Legislation - Provides for the minimum economic security, of the worker and
his family in case, of loss of earnings due to death, old age, disability, dismissal, injury
or disease.
Social Legislation and Labor

Legislation, Distinguished
Labor Legislation
Social Legislation
Effect to
Employment
Directly affects
employment
Governs the effects of

employment
Purpose
Designed to meet the daily

needs of workers
Involves long range benefits
Coverage
Covers employment for

profit or gain
Covers employment for

profit and non-profit
Effect to Employee Affects work of employee

Payor
Benefits are paid by the

workers employer
Affects life of employee

Benefits are paid by
government agencies
Social legislation encompasses labor legislation, thus is broader in

scope than the latter. All labor laws are social legislations but not all
social legislations are labor laws.
Labor Law, defined.
The law governing the rights and duties of

employers and employees with respect to Labor
Standards and Labor Relations.
Labor Standards Law deals with the minimum
standards as to wages, hours of work and other
terms and conditions of employment that
employers must provide their employees.
Labor Relations Law defines the status, rights
and duties as well as the institutional
mechanisms that govern the individual and
collective interactions between employers,
employees and their representatives.
The Philippine Labor Code, and

Other Laws
Presidential Decree No. 442
Deals with Labor Standards and Labor Relations

Became effective November 1, 1974
Special Laws:
Laws on Social Security (SSS Law, GSIS Law, Limited Portability Law (RA
7699)
National Health Insurance Act
Paternity Leave Act
Retirement Pay Law
Home Mutual Development Fund Law
Anti-Sexual Harassment Act
Anti-Child Labor Act
13th Month Pay Law
Migrant Workers and Overseas Filipinos Act of 1995 (R.A. No. 8042, as
amended by RA 10151)
Expanded Comprehensive Agrarian Reform Law
Magna Carta for Public Health Workers

Other Laws
Labor-related provisions in Other Laws
Civil Code
Art. 1700. The relation 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.
Art. 1702. In case of doubt, all labor legislations and all labor contracts shall be
construed in favor of the safety and decent living for the laborer.
Art. 1703. No contract which practically amounts to involuntary servitude, under
any guise whatsoever, shall be valid.

Other Laws
Labor-related provisions in Other Laws
Revised Penal Code
Art. 289. Formation, maintenance and prohibition of

combination of capital or labor through violence or threats.
The penalty of arresto mayor and a fine not exceeding 300
pesos shall be imposed upon any person who, for the purpose
of organizing, maintaining or preventing coalitions of capital
or labor, strike of laborers or lock-out of employees, shall
employ violence or threats in such a degree as to compel or
force the laborers or employers in the free and legal exercise
of their industry or work, if the act shall not constitute a more
serious offense in accordance with the provisions of this Code.
The Aim and Basis of Labor

Laws
Attainment of Social Justice
Balance the interest of labor and capital

(eliminate oppression)
Labor is afforded a greater measure of
protection
There is greater supply of labor than demand for

their services;
Those who have less in life should have more in
law;
The need for employment by labor comes from
vital, and even desperate necessity (survival);
Basic Principles
Preliminary Discussions on
the Labor Code
What are the basic principles in

the constitution and labor-related
laws on protection to labor?
The state shall afford full protection to labor,

promote full employment, equal work
opportunities without bias or discrimination,
regulate the relations of employers and
employees, and assure workers rights (refer to
protection to labor clause Art. XIII, Sec. 3, 1987
Const. & Art. 3, Labor Code);
The relation of capital and labor are impressed
with public interest, hence employment
contracts are not ordinary contracts (Art. 1700,
NCC);
What are the basic principles in

the constitution and labor-related
laws on protection to labor?
In case of doubt or ambiguity, labor laws and rules are to

be construed in favor of labor (Art. 4, Labor Code, Art.
1702, Civil Code)
IF THERE IS DOUBT as to the meaning of the legal and contractual

provision, the above-mentioned applies.
IF THE PROVISION IS CLEAR AND UNAMBIGUOUS, it must be
applied in accordance with its express terms. (Meralco v. NLRC,
GR No. 78763, July 12, 1989).
The law also recognizes that management has rights which are
also entitled to respect and enforcement in the interest of fair play
(St. Luke's Medical Center Employee's Assoc, v. NLRC, GR No.
162053, March 7, 2007).
Why the preference for labor

over capital?
Comes from acknowledgement that capital
wields more power than labor;
(Sanchez v. Harry Lyons Construction Inc.,
GR No. L-2779, October 18, 1950).
There is greater supply than demand for labor;

Those who have less in life should have more in
law; and
The need for employment by labor comes from
vital, and even desperate necessity (survival)
To whom does the Labor Code

apply?
General Rule: The Code applies to all workers, whether agricultural or
non-agricultural, including employees in a government corporation
incorporated under the corporation code;
Exceptions:
1. Government employees;
2. Employees of government Corporations created by special or
original charter;
3. Foreign governments;
4. International Agencies, employees of intergovernmental or
international organizations;
5. Corporate officers/Intra-corporate disputes which fall under PD
902-A and now fall under the jurisdiction of, the Regular Courts
pursuant to the Securities Regulation Code; and
6. Local water districts except where NLRC jurisdiction is invoked.
Protection to labor should not

come at the expense of
oppressing capital!
Law recognizes management rights. The

employer has the right to
Conduct business;
Prescribe rules;
Select and hire employees;
Transfer or discharge employees;
Discipline of employees, and
Return of investment and expansion of business.
Management Prerogatives
(Rural Bank of Cantilan . v. Julve, GR No. 169750, February

27, 2007).
Under the doctrine of management prerogative, every employer has

the inherent right to regulate, according to his own discretion and
judgment, all aspects of employment, including hiring, work"
assignments, working methods, the time, place and manner of work,
work supervision, transfer of employees, lay-off of workers, and
discipline, dismissal, and recall of employees
(Mendoza v. Rural Bank of Lucban, GR No. 155421, July 7,

2004).
Management prerogatives, however, are subject to limitations

provided by
law,
contract or collective bargaining agreements and
general principles of fair play and justice
Pre-Employment
Preliminary Discussions on
the Labor Code
State Policy on
Employment
Article 12, Labor Code
Promote and maintain a state of full

employment through improved manpower
training, allocation and utilization;
Protect every citizen by securing for him the
best possible terms and condition of
employment;
Facilitate a free choice of available employment
by persons seeking work in conformity with the
national interest;
Facilitate and regulate the movement of workers
in conformity with the national interest;
State Policy on
Employment
Article 12, Labor Code
Regulate the employment of aliens, including

the establishment of a registration and/or permit
system;
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; and
Insure careful selection of Filipino workers for
overseas employment in order to protect the
good name of the Philippines abroad.
Recruitment
Article 13(b) of theLabor Code, defines

recruitment and placement as 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.
Entities Authorized to Engage in

Recruitment
Public employment offices;

POEA;
Private recruitment entities;
Private (fee-charging) employment agencies;
Shipping or manning agents or representatives;
Construction contractors if authorized by the DOLE and the
Construction Industry Authority
Members of the diplomatic- corps ("but hiring must also go through
POEA);
Other persons or entities as may be authorized by the DOLE
Secretary; and
Name hirees.
Direct Hiring for overseas employment is not allowed (Article 18, LC)
Employment Abroad
Overseas Filipino Worker a person who is to be engaged, is engaged or has been engaged in a remunerated
activity in a state of which he or she is not a citizen or on board a vessel navigating the foreign seas other than a
government ship used for military or non-commercial purposes or on an installation located offshore or on the
high seas, to be used interchangeably with migrant worker. (RA 8042 as amended by RA 10022)
Seaman - any person employed in a vessel engaged in maritime navigation.
Overseas Employment - employment of a worker outside the Philippines covered by a valid contract. (POEA Rules
and Regulations Governing the Recruitment and Employment of Land Based Overseas Workers, Feb. 4, 2002).
Note: A person to be engaged in a remunerated activity refers to an applicant worker who has been promised or assured of
employment overseas and acting on such promise or assurance sustains damage and/or injury.
Emigrant any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or
resident permit or its equivalent in the country of destination.
The POEA
Philippine Overseas Employment
Administration assumes functions of OEDB
& NSB
Principal Functions:
Formulation, implementation, and monitoring

of overseas employment of Filipino workers;
Protection of worker rights to fair and
equitable employment practices
Deployment of Filipino workers through
government-to-government hiring.
The POEA
Salient Regulatory Functions
Regulate private sector participation in the

recruitment and overseas placement of workers;
Formulate and implement a system for
promoting and monitoring the overseas
employment of Filipino workers, considering
worker welfare and the domestic manpower
requirements;
Inform migrant workers of their rights as
workers and also as human beings;
The POEA
Salient Regulatory Functions
Instruct and guide the workers how to assert

their rights and provide the available
mechanism to redress violation of their rights;
Service the requirements for trained and
competent Filipino workers of foreign
governments and their instrumentalities, and
such other employers as public interest may
require;
The POEA
Deployment of workers shall be sanctioned

by the POEA only
Where the Philippines has concluded Bilateral

labor agreements or arrangements;
When an accommodating state observes and/or
complies with the international laws and
standards for migrant workers;
Where there is a guarantee from the
accommodating state to protect the rights of
Filipino migrant workers.
The POEA
Adjudicatory Functions
Administrative cases involving violations of licensing rules

and regulations and registration of recruitment and
employment agencies or entities;
POEA has the power to:
Suspend or cancel license; and

Order the refund or reimbursement of such illegally collected
fees (Eastern Assurance and Surety Corp. v. Sec. of Labor, GR
Nos. 79436-50, January 17, 1990)
Disciplinary action cases and other special cases which are

administrative in character, involving employers, principals,
contracting partners and Filipino migrant workers.
Other General Provisions
Mandatory Remittance (Article 22)

Exceptions
Filipino servicemen working in U.S. military

Installations;
Where the worker's immediate family members,
dependents, or beneficiaries are residing with him
abroad; and
Immigrants and
Filipino professionals and employees working with
United Nations agencies or specialized bodies
(Resolution No. 1-83, Inter-Agency Committee for
Implementation of E.G. 857).
What if an OFW fails/refuses to

remit?
Worker shall be suspended or excluded from the

list of eligible workers for overseas employment.
Subsequent violations shall warrant his
repatriation.
Employers who fail to comply shall be excluded
from the overseas employment program.
Private employment agencies or entities shall face
cancellation or revocation of their licenses or
authority to recruit, without prejudice to other
liabilities under existing laws and regulations
Recruitment and Placement Agencies (private)
Art. 27, LC: Filipino citizens, or Corporations,

partnerships or entities at least 75% of the
authorized and voting capital stock of which is
owned and controlled by Filipino citizens.
Art. 28, LC:
Private employment agency for local employment
For single proprietorship or partnership minimum

net worth of two (2) hundred thousand pesos.
For corporations a minimum paid up capital of five
(5) hundred thousand pesos.
Recruitment and Placement Agencies (private)
Art. 28, LC:
Private recruitment or manning agency for overseas

employment
For single proprietorship or partnership minimum

capitalization of two (2) million pesos.
For corporations minimum paid up capital of two (2) million
pesos;
increase capitalization or paid-up capital to two (2) million

pesos at the rate of two hundred fifty thousand pesos
(P250,000) every year.
Those not otherwise disqualified by law or other

government regulations to engage in the
recruitment and placement of workers for overseas
employment.
Entities disqualified from

participating as a recruitment
entity
Officials or employees of the DOLE or other

government agencies directly involved in
overseas employment program and their
relatives within the 4th degree of
consanguinity or affinity;
Travel agencies and sales agencies of airline
companies (Art. 26, LC).

entity
Officers or members of the board of any

corporation or members in a partnership
engaged in the business of a travel agency;
Corporations and partnerships, when any of
its officers, members of the board, or
partners, is also an officer, member of the
board, or partner of a corporation or
partnership engaged in the business of a
travel agency (interlocking officers);

entity
Persons, partnerships or corporations which

have derogatory records
Those whose Licenses have been previously
cancelled or revoked (Sec. 2, Rule I, 2002
Rules and Regulations on the Recruitment
and Employment of Land-Based Workers).
License or Authority:
Limitations
Used only by the person or entity in whose favor

it was issued;
Used only in the Place stated in the license.
Recruitment and placement must be
undertaken at their authorized official
addresses.
Provincial recruitment and/or job fairs may be
allowed only when authorized by POEA in
writing.
- ART. 29, Labor Code.
Recruitment Agencies, Bond

All applicants for license or authority shall
post such cash and surety bonds as
determined by the Secretary of Labor,
including escrow deposits.
- ART. 31: BONDS
Purpose of Bond:
To guarantee compliance with prescribed

recruitment procedures, rules and
regulations, and terms and conditions of
employment;
The surety bond required of recruitment agenciesis

intended for the protection of our citizens who are engaged
for overseas employment by foreign companies. The
purpose is to insure that if the rights of these
overseas workers are violated by their employers,
recourse would still be available to them against the
local companies that recruited them for the foreign
principal. The foreign principal is outside the jurisdiction of
our courts and would probably have no properties in this
country against which an adverse judgment can be
enforced. This difficulty is corrected by the bond, which can
be proceeded against to satisfy that judgment.
(STRONGHOLD INSURANCE COMPANY, INC. vs. CA and
ADRIANO URTESUELA, G.R. No. 88050, January 30, 1992)
Exemption from Garnishment
Cash bond filed by applicants for license or authority is

not subject to garnishment by a judgment creditor of the
agency.
Should the bond/deposit in escrow or any part thereof be
garnished, the same should be replenished by the agency
within 15 days from notice from the POEA. Failure to
replenish the same within the said period shall cause the
suspension of the license (Sec. 22, Rule II, Book II, Rules
and Regulations on the Recruitment and Employment of
Land-based Workers).
POEA has the power to enforce liability under cash

or surety bonds.
Solidary Liability of Recruitment

Agencies
The recruitment agency is SOLIDARILY LIABLE with the foreign principal

for unpaid salaries of a worker it recruited. Before recruiting, the agency is
required to submit a document containing its power to sue and be sued
jointly and solidarily with the principal or foreign-based employer for any of
the violations of the recruitment agreement, and the contracts of
employment (Sec. 10, Rule V, Book I, Implementing Regulations of LC).
The recruitment agency may still be sued even if agency agreement

between recruitment agency and principal is already severed if no notice of
the termination was given to the employee based on Art. 1921 of the New
Civil Code (Catan v. NLRC, GR No. 77297, April 15, 1988).
Solidary Liability of Recruitment

Agencies
Exemption: Where the workers themselves insisted for the

recruitment agency to send them back to their foreign employer
despite their knowledge of its inability to pay their wages, the
Court absolved the agency from liability (Feagle Construction
Corp. v. Gayda, GR No. 82310, June 18, 1990).
Contract by Principal: Even if it was the principal of the

manning agency who entered into contract with the employee,
the manning agent in the Philippines is jointly and solidarily
liable with the principal (Seagull Maritime Corp. v. Balatongan,
GR Nos. 83635-53, February 28, 1989).
What fees will a worker pay, and

when?
ART. 32, LC
Charging of fees only after employment obtained or

actual commencement of employment.
All fees paid shall be covered with appropriate receipt.
POEAs authority
Suspend or cancel license; and

Order the refund or reimbursement of such illegally
collected fees (Eastern Assurance and Surety Corp. v.
Sec. of Labor, GR Nos. 79436-50, January 17, 1990).
What fees will a worker pay, and

when?
Placement fees cannot be collected from a hired
worker until he has signed the employment
contract and shall be covered by receipts clearly
showing the amount paid (Sec. 2[a], Rule V, Book II,
Rules and Regulations Governing Overseas
Employment).
Manning agencies shall not charge any fee from
seafarer-applicants for its recruitment and placement
services.
No other fees or charges including processing
fees shall be imposed against any worker.
Recruitment Agencies,
Prohibited Acts
1.
2.
3.
4.
5.
Charge greater amount than that specified in the schedule

of allowable fees;
Furnish any false information in relation to recruitment or
employment;
Give any false notice, testimony etc. or commit any act of
misrepresentation to secure a license or authority;
Induce or attempt to induce a worker to quit his job in lieu
of another offer unless it is designed to liberate the worker
from oppressive terms of employment;
Influence or attempt to influence any person or entity not
to employ any worker who has not applied for employment
through his agency;
Recruitment Agencies,
Prohibited Acts
6.
7.
8.
9.
10.
11.
Engage in recruitment or placement of jobs harmful to

public health, morality or to the dignity of the Philippines;
Obstruct or attempt to obstruct inspection by the Labor
Secretary or his authorized representatives;
Fail to file reports, on the status of employment,
placement etc. and such other matters as may be
required by the SOLE;
Substitute
or alter employment contracts without
the approval of the Secretary of Labor;
Become an officer or member of the Board of any
corporation engaged in the management of a travel
agency;
Withhold travel documents from applicant workers before
departure for unauthorized monetary considerations.
Recruitment Agencies, Suspension,

Cancellation, Revocation
Suspension or Cancellation
Prohibited acts (Art. 34);

Charging a fee before the worker is employed
or in excess of the authorized amount;
Recruitment activities in places outside the
authorized area;
Deploying workers without processing through
the POEA; and
Advertisements (job announcements) without
POEA's prior approval (Sec.4, Rule II, Book IV,
POEA Rules).
Recruitment Agencies, Suspension,

Cancellation, Revocation
Grounds for Revocation of License (IVEE)
Accumulated three counts of suspension by an agency

based on final and executory orders within the validity
period of its license;
Violation of the conditions of license;
Engaging in acts of misrepresentation for the purpose of
securing a license or renewal thereof; and
Engaging in the recruitment or placement of workers to
jobs harmful to the public health or morality or to the
dignity of the Republic of the Philippines (Sec.3, Rule I,
Book VI, Rules and Regulations Governing Overseas
Employment).
Illegal Recruitment
Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring,

or procuring workers and includes referring, contract services, promising or
advertising for employment abroad, whether for profit or not, when
undertaken by a non-licensee or non-holder of authority contemplated under
Article 13(f) of Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines. Provided, that any such non-licensee 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.
Includes prohibited acts under Article 34, LC, whether committed by any
person, whether a non-licensee, nonholder, licensee or holder of authority.
Illegal Recruitment
Other Acts of Illegal Recruitment
Failure to actually deploy without valid reason as
determined by DOLE;
Failure to reimburse expenses incurred by the
worker in connection with his documentation and
processing for purposes of deployment, in cases
where the deployment does not actually take
place without the worker's fault; and
Recruitment and placement activities of agents or
representatives appointed by a licensee, whose
appointments were not previously authorized by
the POEA.
Illegal Recruitment,
Elements
1.
2.
The offender is a licensee/non-licensee or

holder/non-holder of authority engaged in
the recruitment and placement of workers;
and
The offender undertakes either any
recruitment activities defined under Article
13 (b), or any prohibited practices
enumerated under Art. 34 (People v.
Sadiosa, GR No. 107084, May 15, 1998;
Sec. 10, R.A. 8042).
Illegal Recruitment as an Offense Involving

Economic Sabotage
Qualifying Circumstances
When illegal recruitment is committed by a SYNDICATE, i.e., if it is carried out by

three (3) or more persons conspiring and/or confederating with one another; or
When illegal recruitment is committed in a LARGE SCALE, i.e., if it is committed
against three (3) or more persons individually or as a group.
Persons convicted will suffer the following sanctions
Automatic revocation of the license or authority (Art. 39[e], LC);

Forfeiture of the cash and surety bonds (Art. 39[e], LC); and
Conviction of the crime of estafa, if found guilty thereof (People v. Calonzo, GR Nos.
115150-55, September 27, 1996).
Why distinguish Illegal

Recruitment?
Because of distinctions as to:
Prescriptive Period
Penalties
Simple
Economic
Sabotage
Prescriptive
Period
5 Years
20 Years
Imprisonment
Prision mayor
Life imprisonment
Fine
P200,000-P500,000
P500,000-P1M
Pp. vs. Tuguinay

RTC Br. 60, Baguio City
three elements of illegal recruitment in large scale
a) the offender has no valid license or authority required by

law to enable him to lawfully engage in recruitment and
placement of workers;
b) the offender undertakes any of the activities within the
meaning of recruitment and placement under Article 13(b)
of the Labor Code, or any of the prohibited practices
enumerated under Article 34 of the said Code (now Section 6
of Republic Act No. 8042); and
c) the offender committed the same against three or more
persons, individually or as a group, are present in this case.
Pp. vs. Tuguinay
The two elements of estafa
that the accused defrauded another by abuse of

confidence or by means of deceit, and
that damage or prejudice capable of pecuniary
estimation is caused to the offended party or
third person. The prosecution evidence duly
proved that due to the appellants false
representations of overseas jobs, the
complainants paid placement fees to the
appellant who failed to secure the promised
overseas jobs.
Alien Employment Permit
An Alien Employment Permit is a document

issued by the Department of Labor and
Employment which authorizes a foreign
national to work in the Philippines.
Alien Employment
Permit required for entry of aliens into the country for

employment purposes, subject to Non-availability of any person
in the Philippines who is competent, able and willing at the time
of the application to perform the services for which the alien is
desired, including:
All foreign nationals seeking admission to the Philippines for

the purpose of employment
All NON-RESIDENT foreign nationals already working in the

Philippines. Immigrants and resident aliens are not required
to secure a working permit. Instead, they need to secure an
Alien Employment Registration Certificate (AERC)
Alien Employment
Non-resident foreign nationals admitted to the Philippines on

non-working visas and who wish to seek employment, and
Missionaries of religious workers who intend to engage in
gainful employment
Foreign professionals who are allowed to practice their
profession in the Philippines under reciprocity and other
international agreements and in consultancy services
pursuant to Section 7(j) of the PRC Modernization Act of 2000.
Holders of Special Investors Resident Visa (SIRV), Special
Retirees Resident Visa (SRRV), Treaty Traders Visa (9d) or
Special Non-Immigrant Visa (47(a)2) for as long as they
occupy any executive, advisory, supervisory, or technical
position in any establishment.
AEP, Basis for Issuance
Basis for issuance
Compliance by the applicant or employer or

the foreign national with the substantive
and documentary requirements.
Determination of the DOLE Secretary that

there is no available Filipino national who is
competent, able and willing to do the job
for the employer.
Assessment of the DOLE Secretary that the

employment of the foreign national will
redound to national benefit.
AEP, When Unnecessary
All members of diplomatic service and

foreign government officials accredited by
and with reciprocity arrangement with the
Philippine government;
Officers and staff of international
organizations of which the Philippines is a
cooperating member, and their legitimate
spouses desiring to work in the Philippines;
Foreign nationals elected as members of
the Governing Board who do not occupy any
other position, but have only voting rights in
the corporation;
All foreign nationals granted exemption by law;

Foreign nationals who come to the Philippines to teach,
present and/or conduct Foreign nationals who come to
the Philippines to teach, present and/or conduct
research studies in universities and colleges as visiting,
exchange or adjunct professors under formal
agreements between the universities or colleges in the
Philippines and foreign universities or colleges; or
between the Philippine government and foreign
government; provided that the exemption is on a
reciprocal basis;
Owners and representatives of foreign

nationals whose companies are accredited
by the POEA who come to the Philippines
for a limited period and solely for the
purpose of interviewing Filipino applicants
for employment abroad;
Resident foreign nationals and temporary
or probationary resident visa holders
employed or seeking employment in the
Philippines.
AEP, Validiy
One year or
Co-terminus with the duration of employment, consultancy
services or other modes of employment or term of office,
which in no case shall exceed five years. Said AEP is valid for
the position/s and company for which it was issued.
In case of assignment in the companys subsidiaries, branch
offices and joint ventures and those assigned in the
headquarters with oversight function in any of the branch
offices, operation or projects in the country, one AEP shall be
required and valid for all the said assignments irrespective of
their place/s.
Grounds for the denial of AEP

Misrepresentation of facts in the
application;
Submission of falsified documents;
Derogatory record of foreign national;
Availability of a Filipino who is competent,
able and willing to do the job intended for
the foreign national.
Grounds for suspension of AEP

The continued stay of the foreign national
may result in damage to the interest of
the industry or the country;
The employment of the foreign national is
suspended by the employer or by order of
the Court.
Grounds for revocation/cancellation of AEP
Non-compliance with any of the requirements

or conditions for which the AEP was issued;
Misrepresentation of facts in the application;
Submission of falsified or tampered
documents;
Meritorious objection or information against
the employment of the foreign national as
determined by the Regional Director;
Foreign national has a derogatory record; or
Employer terminated the employment of the
foreign national.
Appeal and Penalties

Appeal maybe filed by any aggrieved party
with the Secretary of Labor and Employment
within 10 days after receipt of the Order of
denial/cancellation or revocation.
If a foreign national is found to have worked
without or with expired AEP prior to
application, a penalty of Ten Thousand Pesos
(P10,000.00) shall be imposed for working
without an AEP for one (1) year or fraction
thereof.
Human Resource
Development
The TESDA
Training and Development of
Special Workers
The TESDA
Read Articles 43-56, Labor Code

The Technical Education and Skills Development
Authority (TESDA) was created under R.A 7796 and
replaced the NMYC.
Statement of Goals and Objectives
To attain international competitiveness;

To meet demands for quality middle-level manpower;
To disseminate scientific and technical knowledge base;
To recognize and encourage the complementary roles of public
and private institutions; and
To inculcate desirable values.
Middle-Level Manpower
refers to those:
Who have acquired practical skills and

knowledge through formal or non-formal
education and training equivalent to at least a
secondary education but preferably a
post-secondary education with a corresponding
degree or diploma;
Skilled workers who have become highly
competent in their trade or craft as attested by
industry.
Special Workers
Types of Special Workers
Apprentice
Learner
Handicapped
Objectives for Training and Employment
To help meet the demand of the economy for trained

manpower;
To establish a national apprenticeship program; and
To establish apprenticeship standards for the protection
of apprentices.
Key Terms, defined.
Apprenticeship - practical training on the job

supplemented by related theoretical instruction,
for a highly skilled or technical occupation for a
period of not less than three months but not more
than six months.
Apprentice - a worker who is covered by a
written apprenticeship agreement with an
individual employer or any of the entities
recognized under this chapter, with an
apprenticeship program duly approved by the
DOLE.
Apprenticeable Occupation - any trade, form
of employment or occupation which requires
more than 3 months of practical training on the
Key Terms, defined.

Apprenticeship Agreement an employment
contract wherein the employer binds himself to train
the apprentice and the apprentice in turn accepts the
terms of training.
On-the-job-training practical work experience
through actual participation in productive activities
given to or acquired by an apprentice.
Highly Technical Industries a trade, business,
enterprise, industry or other activity which is engaged
in the application of advanced technology.
Apprentice, qualifications.
At least 15 years of age (as amended by Sec.

12, RA 7610), provided that if below 18 years,
he shall not be eligible for hazardous
occupations.
Physically fit for the occupation in which he
desires to be trained;
Possess vocational aptitude and capacity for
the particular occupation as established
through appropriate tests; and
Possess the ability to comprehend and follow
oral and written instructions.
Apprentice, qualifications.
Total physical fitness is not required of an
apprentice-applicant unless it is essential to
the expeditious and effective learning of the
occupation. Only physical defects which
constitute real impediments to effective
performance as determined by the plant
apprenticeship^ committee may disqualify
an applicant. (Sec 13, Rule VI, Book II, Rules
implementing the Labor Code)

Employment of
Apprentices
Employer may employ apprentices when
They are classified as highly technical industries; and

The task to be performed is an apprenticeable occupation as determined
by the Secretary of Labor.
Requisites for a Valid Apprenticeship
Qualified under Article 59;

Apprentice earns not less than 75% of the prescribed minimum salary;
(Sec 13, Rule VI, Book II, Rules Implementing the Labor Code)
Apprenticeship agreement duly executed and signed;
Apprenticeship program must be approved by the Secretary of Labor;
otherwise, the apprentice shall be deemed a regular employee (Nitto
Enterprises v. NLRC, GR No. 114337, September 29, 1995); and
Period of apprenticeship shall not exceed six (6) months (Sec. 19, Rule VI,
Book II, Rules Implementing the Labor Code).
Apprenticeship Agreement
Content
Full name and address of the contracting

parties;
Date of birth of the apprentice;
Name of trade, occupation or job in which the
apprentice shall be trained and the dates on
which such training will begin and will
proximately end;
Approximate number of hours of on-the-job
training with compulsory theoretical instructions
which the apprentice shall undergo during his
training;
Apprenticeship Agreement
Content
Schedule of the work processes of the trade/

occupation in which the apprentice shall be trained
& the approximate time to be spent on the job in
each process;
Graduated scale of wages to be paid to the
apprentice;
Probationary period of the apprentice during which
either party may summarily terminate their
agreement; and
An Apprenticeship Transfer Clause (Sec. 18, Rule VI,
Book II, Rules Implementing the Labor Code).
Apprenticeship Program,
venue
Within the sponsoring firm, establishment or
entity; OR
Within a DOLE training center or other
public training institutions; OR
Initial training in trade fundamentals in a
training center or other institutions with
subsequent actual work participation within
the sponsoring firm or entity during the final
stage of training.
Violations, Apprenticeship
Agreements
Investigation of Violation of
Apprenticeship Agreement (Art. 65)
Either party to an agreement may terminate

the same after the probationary period only
for a valid cause.
Action may be initiated upon complaint of any
interested person or upon DOLE'S own
initiative.
Valid Causes to Terminate

Apprenticeship Agreements
By the employer
Habitual absenteeism in on-the-job training and related

theoretical instructions;
Willful disobedience of company rules or insubordination
to lawful order of a superior:
Poor physical condition, permanent disability or prolonged
illness which incapacitates the apprentice from working;
Theft or malicious destruction of company property and/or
equipment;
Poor efficiency or performance on the job or in the
classroom for a prolonged period despite warnings duly
given to the apprentice; and
Engaging in violence or other forms of gross misconduct
inside the employer's premises.
Valid Causes to Terminate

Apprenticeship Agreements
By the apprentice
Substandard or deleterious working conditions

within the employer's premises:
Repeated violations by the employer of the terms
of the apprenticeship agreement;
Cruel or inhumane treatment by the employer or
his subordinates;
Personal problems which in the opinion of the
apprentice shall prevent him from a satisfactory
performance of his job; and
Bad health or continuing illness. (Sec 25, Rule VI,
Book II, Rules Implementing the Labor Code)
Appeal & EAR
Appeal (Art. 66)
The decision of an authorized agency of the Department of Labor may

be appealed to the Secretary of Labor, within 5 days from receipt of the
adverse decision.
The decision of the Secretary of Labor shall be final and executory.
Exhaustion of Administrative Remedies (Art. 67)
The exhaustion of administrative remedies is a condition precedent to

the institution of action.
The plant apprenticeship committee shall have initial responsibility for
settling differences arising out of apprenticeship agreements (Sec. 32b,
Rule VI, Book II, Rules Implementing the Labor Code).
Organization of Apprenticeship
Programs
ART. 70: The organization of apprenticeship program shall be primarily a voluntary
undertaking of employers, except as provided for in Article 72.
Exceptions: (Art. 72)
When grave national emergencies, particularly those involving the security of the state,
arise or particular requirements of economic development so demand, the Secretary of
Labor and Employment may recommend to the President of the Philippines the compulsory
training of apprentices required in certain trades, occupations, jobs, or employment levels
where shortage of trained manpower is deemed critical.
Where services of foreign technicians are utilized by private companies in apprenticeable
trades said companies are required to set up appropriate apprenticeship programs. (Sec.
41, Rule VI, Book II, Rules Implementing the Labor Code)
Employer Privileges
An additional deduction from taxable income of 1/2

of the value of labor training expenses incurred for
developing the productivity and efficiency of
apprentices are granted to the person or enterprise
organizing an apprenticeship program, provided
Apprenticeship program must be duly recognized by the

Department of Labor;
Deduction shall not exceed 10% of direct labor wage,
and
Employer must pay his apprentices the minimum wage.
Apprentices without
compensation
Required by the school;
Required by the training program
Curriculum;
A requisite for graduation; or
A requisite for board examination. (Sec.
40, Rule VI, Book II, Rules Implementing
the Labor Code)
Apprentices without
compensation
Rules on Working Scholar
There is NO employer-employee relationship where there is agreement between
them
The agreement shows that the student/scholar agrees to work for the
college/university in exchange for the privilege to study free of charge,
provided the students are given real opportunities, including such facilities as may
be reasonable and necessary to finish their chosen courses under such agreement
The student/scholar is not considered an employee. But if he causes injury or
damage to a third person, the school may be held liable under Art. 2180 of the
Civil Code (Filamer Christian Institute v. IAC, GR No. 75112, August 17, 1992).
Apprenticeship agreement;
validity.
Atlanta Industries, Inc. and/or Robert Chan vs.

Aprilito R. Sebolino, et al., G.R. No. 187320, Jan.
2011. The apprenticeship agreements did not indicate the
trade or occupation in which the apprentice would be
trained; neither was the apprenticeship program approved
by the Technical Education and Skills Development
Authority (TESDA). These were defective as they were
executed in violation of the law and the rules. Moreover,
with the expiration of the first agreement and the retention
of the employees, the employer, to all intents and
purposes, recognized the completion of their training and
their acquisition of a regular employee status. To foist upon
them the second apprenticeship agreement for a second
skill which was not even mentioned in the agreement itself,
is a violation of the Labor Codes implementing rules and is
an act manifestly unfair to the employees.
Learners
Learners - persons hired as trainees in
semiskilled and other industrial occupations
which are non-apprenticeable and which
may be learned through practical training
on the job in a relatively short period of time
which shall not exceed 3 months.
Learnership Agreement - employment
and training contract entered into between
the employer and the learner.
No requirement for theoretical instruction
When Learners May be

Hired
No experienced workers are available;

The employment of learners being necessary to prevent
curtailment of employment opportunities; and
The employment will neither create unfair competition
in terms of labor costs nor impair working standards.
Employment of minors as learners
A minor below fifteen (15) years of age shall not be
eligible for employment as a learner. Those below
eighteen (18) years of age may only be employed in
non-hazardous occupations.
Learnership Agreement
It shall include:
The names and addresses of the employer and the learner;

The occupation to be learned and the duration of the training period
which shall not exceed three (3) months;
The wage of learner which shall be at least 75% of the applicable
minimum wage; and
A commitment to employ the learner, if he so desires, as a regular
employee upon completion of training.
A learner who has worked during the first two months shall be
deemed a regular employee if training is terminated by the
employer before the end of the stipulated period through no
fault of the learner
Distinctions
Apprenticeship
Learnership
Duration
Not less than 3 months practical training on

the job but not more than 6 months
Practical training on the job not to exceed 3 months
Concept
Practical training on the job supplemented by

related theoretical instruction
Hiring of persons as trainees in semi-skilled and

other industrial occupations which are
non-apprenticeable and which may be learned
through practical training on the job in a relatively
short period of time
ERs Commitment to Hire

With a commitment to employ the learner as regular
employee if he desires upon completion of
learnership
No commitment to hire
Effect of Pretermination
Worker is not considered an employee
Learner is considered regular employee after 2

months of training and dismissal is without fault of
learner
Focus of Training
Highly-skilled or technical industries and in
Semi-skilled/industrial occupation
industrial occupation
(non-apprentriceable)
Approval
Requires DOLE approval for validity
Not required
Exhaustion of Administrative in case of Breach of Contract
Precondition for filing action
Not required
Preliminary Discussions
Employees Not Covered by Provisions on

Working Conditions:
Government Employees
Managerial Employees
Officers and members of a managerial staff
Domestic Servants and Persons in the Personal
Service of Another
Workers Paid by Results
Non-Agri Field Personnel
Members of an employers Family
Definitions
Normal hours of work - Eight hours per work
day
Work day 24 consecutive-hour period
which commences from the time the
employee regularly starts to work
Work week a week consisting of 168
consecutive hours or 7 consecutive work
days beginning at the same hour and on the
same calendar day each calendar week.
Policies regarding hours of work

Reduction of eight-hour working day is not
prohibited, provided there is no reduction in
workers pay
Payment of wages of part-time workers
should be in proportion only to the hours
worked.
Management has the prerogative, whenever
exigencies of the service so require, to
change the working hours of its employees.
Policies regarding hours of work
Workdays may be reduced on account of

losses where the losses sought to be
prevented are caused by factors outside of
the employers control.
Allowed by the DOLE as it is more humane to

keep workers employed rather than cause the
outright termination of their services
Compressed Work Week

Six-day work week may be compressed to five days
Subject to conditions imposed by the DOLE:
Employees voluntarily agree to work extended hours

No diminution in take-home pay and fringe benefits
Value of benefits that will accrue to the employees is more than
or at least commensurate with the overtime pay that is due
them
Work does not involve strenuous physical exertion and with rest
periods
Temporary arrangement only, as determined by DOLE
Compressed Work Week
Effect of reduction of workdays on wages

and allowances
The employer may deduct the wages and living

allowances corresponding to the days taken off
from the work week, in the absence of an
agreement specifically providing that a
reduction in the number of workdays will not
adversely affect the remuneration of the
employees.
Situations Contemplated Within

Hours Worked
All time during which an employee is
required to be on duty or to be at the
employers premises or to be at a
prescribed workplace, and
All time during which an employee is
suffered or permitted to work

Hours Worked
Coffee breaks and rest periods of short duration
Waiting time, if waiting is integral part of employees work,
or he is engaged by employer to wait
Sleeping while on duty, if work allows sleeping without
interrupting or prejudicing work, or when there is an
express agreement between employer and employee
Employee is required to remain on call in the employers
premises that he cannot use the time effectively and
gainfully for his own purpose.

Hours Worked
Traveling
Seminars, training, meetings, lectures
From home to work not compensable

Traveling that is all in a days work
compensable
Travel away from home compensable
Must be sanctioned by employer to be
compensable
CBA Negotiations or grievance meeting
Meal Period
One hour time off for regular meals
Not compensable, except if employee is

required to work while eating (even if employer
pays for meal)
If reduced to less than 20 minutes, considered
as a break; compensable
Employee may do anything he wants, and

leave premises provided he returns on time
Night Shift Differential and

Overtime Work
NSD: 10% of employees regular wage for
each hour of work performed between 10:00
PM and 6:00 AM the next day.
OT: Work rendered after normal eight hours of
work
Distinctions: When the work of an employee
falls at night time, the receipt of overtime pay
shall not preclude the right to receive night
differential pay. NSD is for work done at night,
OT is for work done beyond normal hours of
work.
OT, Definition of Terms

Premium pay additional compensation
required by law for work performed within 8
hours on non-working days such as rest
days and special days
Overtime pay additional compensation for
work performed beyond eight hours
Regular wage or basic salary means cash
wage only without deduction for facilities
provided by employer
OT, Computation
OT on ordinary day: Plus 25% of Basic
Hourly Rate (BHR)
OT on rest day or special day: Plus 30% of
(BHRx1.3) (Article 93(a))
OT on rest day and special day: Plus 30% of
(BHRx1.5) (Article 93(c))
OT on regular holiday: Plus 30% of (BHRx2)
(Article 94(b))
OT on rest day and regular holiday: Plus 30
of (BHR x 2.6)
Offsetting of Undertime by
Overtime
If an employee work for only 7 hours on any
given day (under time assuming his regular
working period is eight hours daily), he cannot
be compelled to make up for his time
deficiency by requiring him to render work for
an additional one hour on another day. Article
87 of the Labor Code, reads:
Article 87. Undertime not offset by
overtime.Undertime work on any particular
day shall not be offset by overtime work on
any other day. x x x
Offsetting of Undertime by
Overtime
Offsetting under-time against overtime

would deprive the employee of the
additional compensation for the overtime
work he has rendered. Undertime is
covered only by the regular hourly rate
whereas overtime is subject to additional
overtime rate. If the two are to be offset,
the employee loses overtime pay to which
he is entitled.
Emergency Overtime Work

As a general rule, employees may not be
compelled to work in excess of eight hours
or to render overtime work on any given
day against his will.
The exception to this rule is found in Article
89 of the Labor Code. Under the said article,
employees may be compelled to perform
overtime work.
Emergency Overtime Work
Country is at war or under any national or local emergency;

Necessary to prevent loss of life or property, or in case of
imminent danger to public safety;
Urgent work to be performed on machines, etc., in order to
avoid serious loss or damage to theemployer;
Work is necessary to prevent loss or damage to perishable
goods;
Completion or continuation of work is necessary to prevent
serious obstruction or prejudice to the business; or
Necessary to avail of favorable weather or environmental
conditions.
Managerial Employees not

Entitled to Overtime Pay
Article 82: The provisions of the Labor Code
on working conditions and rest periods shall
not apply to managerial employees. This
includes overtime pay for overtime work.
Supervisory employees are considered as
officers or members of the managerial staff
(for purposes of LABOR STANDARDS), and
hence are not entitled to overtime, rest day
and holiday pay. (
Natl Sugar Refineries Corp. vs. NLRC, G.R. N
o. 101761. March 24, 1993
).
Holidays and Special Days

Republic Act 9492 amended Section 26,
Chapter 7, Book I of EO 292, also known
as the Administrative Code of 1987,
declaring certain days (specific or
movable) as special or regular holidays;
RA 9849: Eidul Adha shall be celebrated as
a national holiday;

Regular Holidays
New Years Day
Maundy Thursday
Good Friday
Araw ng Kagitingan April 9
Labor Day May 1
Independence Day June 12
National Heroes Day Last Monday of August
Bonifacio Day - November 30
Christmas Day December 25
Rizal Day December 30
Eid al Fitr Movable
Eidl Adha Movable

Special (Non-Working) Days
Ninoy Aquino Day - August 21
All Saints Day November 1
Last Day of the Year December 31
Special Day (for all schools)
EDSA Revolution Anniversary February 25
Applicable Rules on Holiday Pay

Every employer covered by the Holiday Pay Rule
is entitled to his/her daily wage rate. This means
that the employee is entitled to 100% of the daily
wage rate, even if the worker did not report for
work, provided that the worker is present or is on
leave with pay on the work day immediately
preceding the holiday.
Covered employees on leave with pay on the day
prior to the holiday are entitled to holiday pay.
The same is true for employees whose rest day
falls on the day prior the holiday.

Those who are on leave without pay or are
absent on the day prior the holiday may
not be paid the holiday pay if he did not
work on the regular holiday.
Work performed or rendered on the
holiday itself entitles the employee to at
least twice the latters daily rate.

Where the holiday falls on the scheduled rest day
of the employee, work performed shall be paid at
an additional 30% of the regular holiday rate, or
at least 260%
In cases where there are two successive holidays
(usually Maundy Thursday and Good Friday), the
employee who absents himself from work on the
day immediately preceding the first holiday is not
entitled to be paid for both holidays, EXCEPT if he
works on the first holiday, in which case he is
entitled to his holiday pay on the second holiday.
Premium Pay
Premium PayDefinition. additional

compensation required by law to be paid to
employees for work performed on non-working
days, such as rest days and special days.
No Work, No PayRule.
During rest and special days, the principle of no work,

no pay applies. Workers who were not required or
permitted to work on those days are not by law entitled
to any compensation.
This is consistent with the definition above that
premium pay is to be paid for workperformed.
Performance of work is necessary for entitlement to
premium pay.
Premium Pay for Rest Days
As a general rule, where anemployeeis

made or permitted to work on his scheduled
rest day, whether it is a regular day or a
holiday, he shall be paid an additional
compensation of at least 30% of his regular
wagefor that day. The rule is different for
work performed on a rest day which is also
a special day, in which case, 50% of the
regular daily rate is added, instead of 30%
of the daily rate for special day.
Premium Pay for Rest Days
In sum, thepremium pay ratesfor rest days

are as follows:
For work performed on rest days, an additional

30% of the daily rate or a total of 130%;
For work performed on a rest day which is also a
special day, an additional of 50% of the daily
rate or a total of 150%; and
For work performed on a regular holiday which is
also the employees rest day, an additional 30%
of the regular holiday rate of 200% or a total of
260%.
Computations
Work on a Rest Day
Premium pay = 30% of
Basic pay
= 30% of P300.00
= 0.3 x P300.00
= P90.00
Rate on Rest day = Basic pay

+ Premium pay
= P300.00 + P90.00
= P390.00
Computations
Work on a Holiday Falling on a Rest
Day
Daily rate on holiday
Daily rate on holiday =
200% of Basic pay
=P300.00x 2
=P600.00
Premium pay = 0.3 x Daily
rate on holiday
= 0.3 x P600.00
= P180.00
Rate on Rest Day falling on a

Holiday = Daily rate on
holiday + Premium pay
= P600.00 + P180.00
= P780.00
Or,
Rate = 260% of Basic pay
= 2.6 x P300.00
= P780.00
Computations
Work on a Special Day
Basic pay
= 30% of P300.00
= 0.3 x P300.00
= P90.00
Rate on Special Day = Basic

pay + Premium pay
= P300.00 + P90.00
= P390.00
Computations
Work on a Special Day Falling on a Rest
Day
Basic pay
= 50% of P300.00
= 0.5 x P300.00
= P150.00
Rate on Special Day on a Rest

day = Basic pay + Premium
pay
= P300.00 + P150.00
= P450.00
Premium Pay, no regular workdays and

scheduled rest days
Where the nature of the work of the

employee is such that he has no regular
workdays and no regular rest days can be
scheduled, he shall be paid an additional
compensation of at least 30% of his regular
wage for work performed on Sundays and
holidays.
Comparison of Premium Pay and

Holiday Pay
Using the definition ofpremium pay, holiday
pay is not a premium pay because it does
not require performance of workby the
employee. In case of holiday pay, the
employee is entitled payment even if he
does not work. The same cannot be said of
premium pay.
Thus, unlike in premium pay, the principle
no work, no pay does not similarly apply
to holiday pay.
Thirteenth Month Pay
PD 851, Thirteenth Month Pay Law, as amended

by Memorandum Order No. 28, requires all
employers to pay their employees a 13th month
pay not later than December 24 of every year.
Originally, PD 851required payment of 13th month
pay to employees receiving not more than P1,000
a month. MO 28 (1987), removed the salary
ceiling, and all rank and file employees became
entitled to a 13th month pay regardless of the
amount of their monthly basic salary
Employees Covered by 13th

Month Pay Law
All rank-and-file employees, regardless of their designation or
employment status, and irrespective of the method by which
their wages are paid, who have worked at least one month
during the calendar year are entitled to 13th month pay.
Managerial employees are excluded from the coverage of the
law.
The Labor Code distinguishes a rank-and-file employee from a
managerial employee. It provides that a managerial employee
is one who is vested with powers of prerogatives to lay down
and execute management policies and/or to hire, transfer,
suspend, lay-off, recall discharge, assign or discipline
employees, or to effectively recommend such managerial
actions.
All employees not falling within this definition are considered
rank-and-file employees.
13th Month, Amount

Not less than 1/12 of the totalbasic salaryearned by
the employee within the calendar year.
Only basic salary is included in the computation of 13th
month pay.
Excludes allowances and monetary benefits which are
not considered or integrated as part of the regular or
basic salary.
However, salary-related benefits should be included as
part of the basic salary in the computation of the 13th
month pay if by individual or collective agreement,
company practice or policy, the same are treated as
part of the basic salary of the employees.
Employees excluded from

coverage of 13th month pay law
Managerial employees;
Those covered under the civil service law;
Those already receiving 13th month pay or its
equivalent. Christmas bonus, mid-year bonus,
cash bonuses and other payments amounting
to not less than 1/12 of the basic salary are
treated as equivalent of 13th month pay;
Those paid on purely commission, boundary, or
task basis, and those who are paid fixed
amount for performing specific work except
those paid on a piece-rate basis.
Employees paid
commissions
Not entitled to 13th month pay if purely on
commission basis.
Employees paid on partly commission basis,
i.e., those guaranteed with a fixed wage
aside from the commission, are entitled to
13th month pay.
Employees paid
commissions
Types of commission:
Commission as an incentives or encouragement

to ensure productivity, i.e., productivity bonus
does not form part of basic salary, not to be
included in computation (Boie Takeka case, 1993
.)
Commission as a direct remuneration for service
rendered forms part of basic salary. (see
Philippine Duplicators v. NLRC, 1993.)
13th Month Pay of Employees

with Multiple Employers.
Employees with multiple employers are
entitled to 13th month pay from all their
private employers.
If employee works in two or more private
firms, he is entitled to the pay from both or
all of them. If he is a government employee,
but works part time in a private enterprise,
he is entitled to 13th month pay from the
private enterprise.
13th Month Pay of Private

School Teachers.
Private school teachers are entitled to 13th

month pay regardless of the numbers of
months they work in a year, provided it is at
least one month.
13th Month Pay, resigned or

separated employees
Employees who resigned or were separated
during the calendar year shall be entitled to
13th month pay in proportion to the length
of time he worked during the year, provided
it is at least one month.
The payment may be demanded by the
employee upon the cessation of
employment.
Cases
For 2 to 3 years, Sevilla Trading, allegedly by

mistake, added the night premium,
maternity leave pay, etc., in the computation
13th month pay. The court ruled that the
inclusion may no longer be withdrawn if it
has already ripened into a company
practice.Nota bene:There is no specific rule
as to how many years are necessary to
constitute company practice. (Sevilla
Trading v. AVA Tomas, GR No. 152456.)
Cases
Employees paid according to boundary

system are not entitled to 13th mo pay.
Boundary system is where the employees
do not receive fixed wages, but retain only
those sums in excess of the boundary or
fee they pay to the owners or operators of
their vehicles. They are akin to employees
paid on purely commission basis. (
R&E Transport v. Latag, G.R. No. 155214.)
Cases
Drivers who are paid on commission basis,

but with guaranteed minimum wage in case
their commission be less than their basic
minimum, are entitled to 13th month pay. (
PACIWU v. NLRC, GR No 107994.)
Service Incentive Leave

Basis
Article 95 (Book Three, Title I) of the Labor
Code provides the basis of the grant of
Service Incentive Leave to qualified
employees. Its implementation is covered
by Section 2, Rule V, Book III of the Omnibus
Rules.

Employees entitled to SIL
Everyemployee(subject to the exceptions
below)who has rendered at least one year
of serviceis entitled to yearly service
incentive leave of five days with pay.

At least one year of service
The term at least one-year service means
service for not less than 12 months,
whether continuous or broken.
At least one year of service

The 12-month period shall be reckoned from the
date the employee started working, including
authorized absences and paid regular holidays.
The only instance when service shall be deemed
as one year even when the employee serves less
than that period is when the operation of the
establishment is less than 12 months as a matter
of practice or policy, or is so provided in the
employment contract
Employees not covered,

SIL
The following employees are excluded from entitlement to
SIL under the Labor Code (but they may be entitled to the
same or similar benefits if so provided under other laws, or
collective bargaining agreement or employment contract):
Those of the government and any of its political
subdivisions, including government-owned and controlled
corporations;
Domestic helpers and persons in the personal service of
another;
Managerial employees as defined in Book Three of the
Labor Code;

SIL
Field personnel and other employees whose
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;
Those who are already enjoying the benefit
herein provided;

SIL
Those enjoying vacation leave with pay of at
least five days; and
Those employed in establishments regularly
employing less than ten employees.
(Omnibus Rules)
Manner of Availment
The service incentive leave may be used for

sick and vacation leave purposes. And, at
the end of the year, the unused SIL may be
commuted to cash.
Commutability to Cash
Under the Omnibus Rules, the unused

service incentive leave is commutable to its
money equivalent at the end of the year.
[N.B. Not found in the LC.]
Accumulation of Leave
Credits
Instead of using up SIL, the employee may
accumulate it and opt for its commutation
to cash upon his resignation or separation
from employment.
Computation of SIL
In computing SIL, the basis shall be the
salary rate at the date of commutation. The
availment and commutation of this benefit
may be on a pro rata basis. (DOLE
Handbook)
Illustration
An employee was hired on January 1, 1997,
and resigned on March 1, 1998. Assuming
he has not used or commuted any of his SIL
credits, he is entitled upon his resignation to
the commutation of his accumulated SIL as
follows:
SIL earned as of Dec. 31, 1997 = 5 days
Proportionate SIL for Jan. and Feb. 1998 =
(2/12) x 5 days = 0.833 day
Total as of March 1, 1998 = 5.833 days
Part-time workers
Are part-time workers entitled to the full five
days SIL, or should the entitlement be on
pro-rata basis? Part-time workers are
entitled to full five days SIL. (BWC Advisory
Opinion)
The reason is that the Labor Code speaks of
number of months worked in a year, not
number of hours worked in a day, as basis
for entitlement.
Vacation and Sick Leave

The Labor Code treats vacation leave and
sick leave under the same category as
Service Incentive Leave or leave with pay.
Thus, the grant of vacation or sick leave
with pay of at least five days may be
credited as compliance with SIL. For
example, if a company is giving its
employees 15 days vacation leave, five
days of which is with pay, the five-days paid
vacation leave may be credited as SIL.
Cases
Petitioner CIT claimed that teachers are not

entitled to SIL because they are engaged by
the school on contractual basis. The claim
was not sustained. It was held that the
phrase those who are engaged on task or
contract basis as mentioned in the
Omnibus Rules should be read in relation to
field personnel. Teachers, not being field
personnel, are entitled to SIL. (CIT vs. Ople,
1987.)
Cases
Applying Article 291 of the Labor Code in light of this

peculiarity of the service incentive leave, we can
conclude that the three (3)-year prescriptive period
commences, not at the end of the year when the
employee becomes entitled to the commutation of his
service incentive leave, but from the time when the
employer refuses to pay its monetary equivalent after
demand of commutation or upon termination of the
employees services, as the case may be. (
Auto Bus Transport, Inc. vs. Bautista, 2005)
Cases
Petitioners contention that respondent is

not entitled to the grant of service incentive
leave just because he was paid on purely
commission basis is misplaced. What must
be ascertained in order to resolve the issue
of propriety of the grant of service incentive
leave to respondent is whether or not he is
a field personnel. (
Auto Bus Transport, Inc. vs. Bautista, 2005)
Cases
Exemptions.To claim exemption from payment

of service incentive leave pay, it is the employers
duty to prove that it is covered under the
exemption. Thus, where the employer claims that
the employee is not entitled to service incentive
leave pay inasmuch as establishment employing
less than ten (10) employees are exempted from
paying service incentive leave pay, it has the duty
to prove that there were less than ten employees
in the company. (C. Planas
Commercial, et al. vs. NLRC, G.R. No. 144619, N
ovember 11, 2005
.)
Maternity Leave
Basis: Maternity leave benefits are found under the

Article 133 of the Labor Codeand Section 14-A of
Social Security Act of 1997 (Republic Act No. 8282).
Checklist for Availment of Maternity Benefits under Social
Security Act
The pregnant womanemployeemust have paid at least three

monthly contributions within the 12-month period immediately
preceding the semester of her childbirth or miscarriage.
She has given the required notification of her pregnancy through
heremployer if employed, or to the SSS if separated, voluntary or
self-employed member.
Wages
Attributes
Minimum Wage
Wages
Definitions (Article 97)
Person An individual, partnership, association or corporation,

business trust, legal representative or any organized groups of persons.
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 and controlled corporations
and institutions as well as non-profit private institutions, or
organizations.
Employee Any individual employed by an employer; one who is
suffered or permitted to work in exchange for payment.
Wage, Definition
Compensation paid to the employee for

work or services rendered. The regular
wage of an employee has the following
components: (1) Cash wages, which must
be in legal tender, and (2) facilities
provided by the employer.
Wage, Attributes
Remuneration or earnings, however designated,
Capable of being expressed in terms of money, whether
fixed or ascertained on a time, task, piece or commission
basis, or other method of calculating the same,
Payable by an employer to an employee under a written or
unwritten contract of employment
For work done or to be done, or for services rendered or to
be rendered
Includes the fair and reasonable value, as determined by the
DOLE Secretary of board, lodging, or other facilities
customarily furnished by the employer to the employee.
Fair and Reasonable Value
The phrase shall not include any profit to

the employer, or to any person affiliated
with the employer (see discussion on
facilities).
Facilities
Articles or services for the benefit of the employee or his

family
Shall not include tools of the trade or articles or services
primarily for the benefit of the employer or necessary to
the conduct of the employers business.
Facilities may be deducted from what is reflected as wages
to derive cash wages, provided:
They are customarily given, and;

The deduction must be with (a) voluntary acceptance and (b)
the written consent of the employee.
Charged at a fair and reasonable value
This is relevant in determining rates for computing

overtime and premium pay.
Value of Facilities
Fair and reasonable value of board, lodging and

other facilities customarily furnished by an
employer both in agri and non-agri enterprises
Supplements
Supplements. refer to extra

remuneration or special privileges or
benefits given to or received by
laborers over and above their ordinary
earnings or wages.
Facilities vs. Supplements

Both are not part of the CASH COMPONENT
of wages;
A facility is given for the benefit of the
employee. If necessary in order to maintain
health, efficiency of workers during work,
supplement
The distinction lies not in the type of benefit
given (food, accommodations, sick leave,
use of facilities) but its purpose;
Deductibility of Facilities or
Supplements from Wages
State Marine Cooperation and Royal Line, Inc. vs. Cebu
Seamens Association, L-12444, Feb. 1963:
Facilities may be charged to or deducted from wages.

Supplements on the other hand may not be so charged. Thus,
when meals are freely given to crew members of a vessel while
they were on the high seas, not as part of their wages but as a
necessary matter in the maintenance of the health and efficiency of
the crew personnel during the voyage, the deductions made
therefrom for the meals should be returned to them, and the
operatorshould continue giving the same benefit.
Deductibility of Facilities or
Supplements from Wages
Mayon Hotel & Restaurant vs. Adana (GR No.
157634, May 2005), citing Mabeza
Food or snacks or other convenience provided by the
employers are deemed as supplements if they are
granted for the convenience of the employer.
Consideringthat hotel workers are required to work
different shifts and are expected to be available at
various odd hours, their ready availability is a
necessary matter in the operations of a small hotel
The deduction of the cost of meals from respondents
wages, therefore should be removed.
Gratuity, Allowances and

Bonuses
Gratuity. Is a gift freely given by the employer in appreciation of
certain favors or services rendered. It is not part of wages since it is not
intended as compensation for actual work. It is not demandable as a
matter of right.
Allowance, RATA (DBM vs. Olivia Leones, GR No. 169726, March
18, 2010). Statutory law, as implemented by administrative issuances
and interpreted in decisions has consistently treated RATA as distinct
from salary. Unlike salary, which is paid for services rendered, RATA
belongs to a basket of allowances to defray expenses deemed
unavoidable in the discharge of office.
Gratuity, Allowances and

Bonuses
Bonus (Lepanto Ceramics, Inc. vs. Lepanto Ceramics Employees Association, GR No.
180866, March 2, 2010). A bonus is a gratuity or act of liberality of the giver. It is
something given in addition to what is ordinarily received by or strictly due the recipient. A
bonus is granted and paid to an employee for his industry and loyalty which contributed to the
success of the employers business and made possible the realization of profits. A bonus is also
granted by an enlightened employer to spur the employee to greater efforts for the success of
the business and realization of bigger profits.
In the same case, the Supreme Court ruled that a bonus is not a demandable and enforceable
obligation, except if it was promised by the employer and agreed upon by the parties (as when
it is included in the CBA)
Minimum Wage, Concept

Minimum wage represents the lowest
possible wage that an employer can
legally pay its employees.
Aim of establishing minimum wage is
To even out the distribution of income,

and;
Effectively increase the standard of living
of workers.
Minimum Wage
Article 99: Minimum wage rates in every region of
the country for agricultural and non-agricultural
employees and workers shall be prescribed by the
RTWPBs. (Read this in relation to Section 3, RA
6727).
Republic Act No. 6727, also known as the "Wage
Rationalization Act" established a new mechanism
for minimum wage determination through the
creation of the National Wages and Productivity
Commission ( NWPC) and the Regional Tripartite
Wages and Productivity Boards (RTWPBs) in all
regions of the country.
Minimum Wage
Basis for computing minimum wage. The basis of
computation of minimum wage shall be the normal
working hours which shall not be more than eight
hours a day.
Wage Orders. The RTWPB promulgates WAGE
ORDERS pursuant to its wage-fixing authority.
Whenever conditions in a particular region so warrant,
the RTWPB shall investigate and study all pertinent
facts and based on the standards and criteria
prescribed by RA 6727.
Criteria for Fixing Minimum

Wage
The RTWPB shall consider the following in

determining minimum wage:
The demand for living wages

Wage adjustments vis--vis the Consumer Price Index
Cost of living, and changes or increases therein
Needs of workers and their families
Need to induce industries to invest in the countryside
Improvement of standards of living
Prevailing wage levels
Fair return of the capital invested and employers capacity to
pay
Effects on employment generation and family income
Equitable distribution of income and wealth along the
imperatives of economic and social development
Wage Distortion
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.
Payment by Results
ARTICLE 101. Payment by results. - (a) The

Secretary of Labor and Employment shall
regulate the payment of wages by results,
including pakyao, piecework, and other
non-time work, in order to ensure the
payment of fair and reasonable wage
rates, preferably through time and motion
studies or in consultation with
representatives of workers and
employers organizations.
Payment by Results
Avelino Lambo & Vicente Belocura vs. NLRC & J.C.

Tailor/Johnny Co, GR No. 111042, October 26, 1999. There are two categories of employees paid by results:
Those whose time and performance are supervised by the

employer. (Here there is an element of control and supervision over the
manner as to how the work is to be performed. A piece-rate worker
belongs to this category especially if he performs his work in the
company premises.); and
Those whose time and performance are unsupervised (here, the
employers control is over the result of the work. Workers on pakyaw
and takay basis belong to this group).
Pakyao
Pakyao. A system where a group of workers (1)
define their own work time and methods, (2) share
among themselves the wages (3) commensurate
to the results of their work.
The wages earned by an individual in a particular
day may not be equal to the wage of a regular
worker. For this reason, the DOLE must ensure
that payment of wages by pakyao or piece rate
will be FAIR and REASONABLE, considering the
circumstances.
Non-Diminution of Benefits
Prohibition against elimination or
diminution of benefits.
Nothing in the Labor Code shall be
construed to eliminate or in any way
diminish supplements, or other employee
benefits being enjoyed at the time of
promulgation of this Code. Article 100,
Labor Code.
Non-Diminution of Benefits,
Concept
The principle of non-diminution of benefits states that: any
benefit and supplement being enjoyed by employees
cannot be reduced, diminished, discontinued or eliminated
by theemployer.
The Constitution mandates the state to protect the rights
of workers and promote their welfare, and to afford labor
full protection. This is the basis of Article 4 of the Labor
Code which states that all doubts in the implementation
and interpretation of this Code, including its implementing
rules and regulations shall be rendered in favor of labor.
Benefits & Supplements,

Defined
Employeebenefits are compensation given to employees in
addition to regular salaries or wages. They may be
required by law such as social security benefits, PhilHealth,
retirement benefits, maternity benefits,
service incentive leave, etc., or voluntarily offered by the
employer as an incentive to attract and retain employees
as well as increase employee morale and improve job
performance.
Supplements include those benefits or privileges granted to
an employee for the convenience of the employer, e.g.,
board and lodging within the company premises.
Common Application
In employment setting, the principle of

non-diminution of benefits finds
application when a change initiated by the
employer to existing company policies,
specially matters concerning employee
benefits, results in reduction, diminution
or withdrawal of some or all of the benefits
already enjoyed by the employees.
Manifestation of
Diminution
TSPIC corporation vs. TSPIC Employees

Union (FFW), et al., GR No. 163419, Feb. 13,
2008. Diminution is manifested when:
The grant or benefit is founded on a policy, or has

ripened into a practice over a long period of time;
The practice is consistent and deliberate;
The practice is not due to error in the construction or
application of a doubtful or difficult question of law,
and;
The diminution or discontinuance is done unilaterally
by the employer.
Length of Time of Company

Practices
With regard to the length of time the company practice should have been exercised to constitute voluntary employer practice which cannot be
unilaterally withdrawn by the employer, the Court has not laid down any rule requiring a specific minimum number of years.
In the case ofDavao Fruits Corporation vs Associated Labor Unions(G.R. No. 85073, August 24, 1993), the company practice lasted for six years.
InDavao Integrated Port Stevedoring Services vs. Abarquez(G.R. No. 102132, March 19, 1993), the employer, for three years and nine months,
approved the commutation to cash of the unenjoyed portion of the sick leave with pay benefits of its Intermittent workers.
InTiangco vs Leogardo, Jr. (G.R. No. L-57636, May 16, 1983), the employer carried on the practice of giving a fixed monthly emergency allowance
from November 1976 to February 1980, or three years and four months.
In the case ofSevilla Trading Company vs Semana, ibid., the employer kept the practice of including non-basic benefits such as paid leaves for
unused sick leave and vacation in the computation of their 13th-month pay for at least two (2) years.
In all these cases, the grant of benefits has been held to have ripened into company practice or policy which cannot be peremptorily withdrawn.
Integration of Monetary Benefits to the Basic Pay
Payment of Wages
ARTICLE 102. Forms of payment. - No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets,
chits, or any object other than legal tender, even when expressly requested by the employee le or under other special circumstances to be determined
by the Secretary of Labor and Employment in appropriate regulations, in which case, the worker may be paid through another person under written
authority given by the worker for the purpose; or (b) Where the worker has died, in which case, the employer may pay the wages of the deceased worker
to the heirs of the latter without the necessity of intestate proceedings. The claimants, if they are all of age, shall execute an affidavit attesting to their
relationship to the deceased and the fact that they are his heirs, to the exclusion of all other persons. If any of the heirs is a minor, the affidavit shall be
executed on his behalf by his natural guardian or next-of-kin.
The affidavit shall be presented to the employer who shall make payment through the Secretary of Labor and Employment or his representative. The
representative of the Secretary of Labor and Employment shall act as referee in dividing the amount paid among the heirs. The payment of wages under
this Article shall absolve the employer of any further liability with respect to the amount paid.

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Labor Law Review

Art XIII, Sec. 14. The State shall protect women by

It shall guarantee the rights of all workers to self-organization,

Commit Art. XIII, Sec. 3 to

Under Labor Standards

Under Labor Relations

Social, Labor and Welfare

Social Legislation and Labor

Governs the effects of

Designed to meet the daily

Involves long range benefits

Covers employment for

Covers employment for

Effect to Employee Affects work of employee

Benefits are paid by the

Affects life of employee

Social legislation encompasses labor legislation, thus is broader in

Labor Law, defined.

The law governing the rights and duties of

The Philippine Labor Code, and

Presidential Decree No. 442

Deals with Labor Standards and Labor Relations

The Philippine Labor Code, and

Labor-related provisions in Other Laws

The Philippine Labor Code, and

Labor-related provisions in Other Laws

Revised Penal Code

Art. 289. Formation, maintenance and prohibition of

The Aim and Basis of Labor

Attainment of Social Justice

Balance the interest of labor and capital

There is greater supply of labor than demand for

What are the basic principles in

The state shall afford full protection to labor,

What are the basic principles in

In case of doubt or ambiguity, labor laws and rules are to

IF THERE IS DOUBT as to the meaning of the legal and contractual

Why the preference for labor

There is greater supply than demand for labor;

To whom does the Labor Code

Protection to labor should not

Law recognizes management rights. The

(Rural Bank of Cantilan . v. Julve, GR No. 169750, February

Under the doctrine of management prerogative, every employer has

(Mendoza v. Rural Bank of Lucban, GR No. 155421, July 7,

Management prerogatives, however, are subject to limitations

Article 12, Labor Code

Promote and maintain a state of full

Article 12, Labor Code

Regulate the employment of aliens, including

Article 13(b) of theLabor Code, defines

Entities Authorized to Engage in

Public employment offices;

Formulation, implementation, and monitoring

Salient Regulatory Functions

Regulate private sector participation in the

Salient Regulatory Functions

Instruct and guide the workers how to assert

Deployment of workers shall be sanctioned

Where the Philippines has concluded Bilateral

Administrative cases involving violations of licensing rules

Suspend or cancel license; and

Disciplinary action cases and other special cases which are

Other General Provisions