Labor Law Book 1 3

Labor and Social Legislation
AUF School of Law
Minimum requirement required by

law and regulations relating to
wages, hours of work, COLA, and
other monetary welfare benefits
including occupational safety and
health standards
Books 1 (Pre-Employment), Book
2 (Human Resources Development
Program), Book 3 (Conditions of
Employment),and Book 4 (Health,
Safety & Social Welfare Benefits) of
the Labor Code
THE LABOR CODE OF THE PHILIPPINES

Chapter 1
GENERAL PROVISIONS
Art. 1-2
Labor Code took effect on November 1, 1974;
- charter of human rights and bill of
obligation for every working man
Labor legislation statutes, regulations and
jurisprudence governing the relations between
capital and labor, by providing certain standards
and a legal framework for negotiating, adjusting
and administering those standards and other
incidents of employment.
Labor standards sets out the minimum terms,
conditions and benefits of employment that

employers must comply with
full employment, a rising standard of

living, and an improved quality of life
for all.
calculated to insure economic stability of all

component elements of society
Constitutional provisions related to Labor:

Art. II
o 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
Sec. 18
The State affirms labor as a
primary social economic force. It
shall protect the rights of workers
and promote their welfare.
Art. III, 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.
Labor relations defines the status, rights

and
duties
and
the
institutional
mechanisms that govern the individual and
collective interactions of
employers,
employees, or their representatives.
Art. VI
Along with other sectors, labor is entitled to
seats allotted
to party-list representatives fro 3
consecutive terms after the ratification of the
Constitution
o Book 5 (Labor Relations) and

Book 6 (Post-Employment)
Social legislation includes laws that provide
particular kinds of protection or benefits to society
or segments thereof in furtherance of social justice
(the aim of labor laws)
Art. IX-B, Sec 2[3], [5] and [6]

No officer or employee of the
civil service shall be removed or
suspended except for
cause
provided by law.
social justice the aim of labor laws; raison

detre
- promotion of the welfare of all the people, the
adoption by the government of measures
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Sec. 10
The State shall promote social
justice in all phases of national
development.
The right to self-organization

shall not be denied to government
employees.
1st Semester/ A.Y. 2010-2011
Temporary employees of the

Government shall be given such
protection as may be provided by
law.
Art, XII,
o Sec. 1
The goals of the national
economy are a more equitable
distribution
of
opportunities,
income, and wealth; a sustained
increase in the amount of goods
and services produced by the
nation for the benefit of the
people; and an expanding
productivity as the key to raising
the quality of life for all, especially
the underprivileged. The State
shall promote industrialization
and full employment based on
sound agricultural development
and agrarian reform, through
industries that make full of
efficient use of human and
natural resources.
o
Sec. 15
The Congress shall create an
agency to promote the viability
and growth of cooperatives as
instruments for social justice and
economic development.
Art. XIII
o Sec. 3
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.
It shall guarantee the rights of all
workers to self-organizations,
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 decisionJmvdg
AUF School of Law
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 on investments, and to
expansion and growth.
Basic rights of workers guaranteed by the
Constitution are the right to
organize themselves
conduct CBA
engage in peaceful concerted
activities
enjoy security of tenure
work under humane conditions
receive a living wage
Participate in policy and
decision-making
processes
affecting their rights and
benefits as may be provided
by law.
o
Sec. 4, 5, and 6
Regular farmworkers shall have the
right to own directly or collectively the
lands they till. Other farmworkers shall
receive a just share of the fruits of the
land they till. The state recognizes the
right of farmworkers, along with other
groups to take part in the planning,
organization, and management of
agrarian reform program. Landless
farmworkers may be resettled by the
Government in it sown agricultural
estates.
AUF School of Law
Sec. 9
The State shall, by law, and for
the common good, undertake, in
cooperation with the private
sector, a continuing program of
urban land reform and housing
which will make available at
affordable cost, decent housing
and basic services to underprivileged and homeless citizens
in urban centers and resettlement
areas. It shall also promote
adequate
employment
opportunities to such citizens. In
the implementation of such
program the State shall respect
the rights of small property
owners.
responsibility between workers and

employers.
Police power is the basis of labor laws.
Cases: PP vs. Pomar; Phil. Assoc. of
Service Exporters vs. Drilon
Birth of Labor Code:
Written in 1968 under the leadership of
Mr. Blas Ople (father of the Labor
Code)
Aim: consolidate the scattered labor
laws & reorient these laws to the needs
of economic development and justice.
7 principles underlying the Code (see
pp. 14, The Labor Code with Comments
and Cases Vol. I, C.A. Azucena, 2004 ed.)
Sec. 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.
Other related laws:

Civil Code
o Art. 1700, Art. 1701, Art.
1703, etc.
Revised Penal Code
o Art 289
Special Laws
o SSS law, GSIS law,
Agrarian Reform Law, 13th
month pay law, Magna
Carta for Public Heal
Workers
Art. XVIII
o Sec. 16
Career civil service employees separated from the
service not for cause but as a result of the
reorganization shall be entitled to appropriate
separation pay and to retirement and other benefits
under existing laws. In lieu thereof, they may be
considered for employment in the Government.
Those whose resignation has been accepted in line
with the existing policy shall have this right.
o
The
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ILO International Labour Organization

- UN specialized agency which seeks the
promotion of social justice and internationally
recognized human and labour rights.
- Created in 1919; Robert Owen of Wales &
Daniel Legrand of France
- formulates international labor standards
Art. 3
purpose: to place the workingman on an equal
plane with management with all its power and
influence in negotiating for the advancement of
his interests and the defenses of his rights.
Sec. 18
At the earliest possible time, the
Government shall increase the
salary scales of the other officials
and employees of the National
Government.
constitution
suggests
shared
3
BOOK ONE
PRE-EMPLOYMENT
Art. 12
Employment problem is multi- faceted and the
solution is the concern of not only one or two
government agencies but the concern of the entire
governmental system.
DOLE- the primary policy-making, programming,
coordinating, and administrative body of the
Executive Branch
Purpose of Book One:
TO regulate the activities of agencies authorized
to recruit and deploy workers for overseas
employment.
TITLE I
Recruitment & Placement of Workers
Art. 13
Art. 13 (b):this provision creates a presumption
that the individual or entity is engaged in
recruitment and placement whenever he is dealing
with 2 or more persons to whom in consideration
of a fee, offer, or promise of employment is made
in the course of the canvassing, enlisting,
contracting, transporting, utilizing, hiring, or
procuring of workers'
PP vs Panis
142 SCRA 664
The number of persons dealt with is not an essential
ingredient of the act of recruitment and placement of
workers. Any of the acts mentioned in the basic rule in
Article 13(b) will constitute recruitment and placement
even if only one prospective worker is involved. The
proviso merely lays down a rule of evidence that where a
fee is collected in consideration of a promise or offer of
employment to two or more prospective workers, the
individual or entity dealing with them shall be deemed to
be engaged in the act of recruitment and placement. The
words "shall be deemed" create that presumption.
PP vs. Goce
247 SCRA 780
There is illegal recruitment when one gives the
impression of having the ability to send a worker abroad
such that the latter were convinced to give her the money
she demanded in order to be so employed.
AUF School of Law
Darvin vs. CA and PP G.R.

No. 125044 July 13, 1998
By themselves, procuring a passport, airline tickets and
foreign visa for another individual, without more, can
hardly qualify as recruitment activities.
Art. 14
To pursue its responsibility to promote employment
opportunities, the DOLE carries out programs for
local and overseas employment. Effective
allocation of manpower resources in local
employment is assigned to the BLE and to POEA
for overseas employment.
The information or data obtained by the DOLE and
POEA will serve as guide in determining domestic
labor needs.
An employer with at least 6 employees is required
to submit to the nearest public employment office
the ffg:
list of existing job vacancies or opening
list of new employees, if any
termination, lay-off or retirement
total number of employed workers for the
period, and
request for assistance, if needed, to fill the
vacancies
Art. 15
(Bureau of Local Employment)
BLE & POEA were created by the mandate of E.O.
797
PESO
RA 8759; intended to serve as employment
service and information center in its area of
operation.
regularly obtains list of job vacancies from
employers, publicizes them, invites and
evaluates applicants, and refers them for
probable hiring.
Also provides training and educational
guidance and employment counseling
services.
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AUF School of
Law

Art. 16
this provision sought to avoid commission
of
malpractice by fly-by-night or private recruiters
against unsuspecting workers who intend to work
locally or overseas.
authorized entities to recruit and place workers for

local & overseas employment:
public employment office
private recruitment entities
private employment agencies
shipping
or
manning
agents
or
representatives
POEA
construction contractors if authorized to
operate by DOLE and the Construction
Industry Authority
members of the diplomatic corps although
hirings done by them have to be processed
through POEA
other persons or entities as may be
authorized by the DOLE secretary
POEA: Functions and Powers

formulation,
implementation,
and
monitoring of the overseas employment of
Filipino workers and the protection of their
rights to fair and equitable employment
practices
participates in the deployment of Filipino
workers
through
government-togovernment hiring
regulatory function:
regulates
the
private
sector
participation in the recruitment and
overseas placement of workers through
its licensing and registration system.
adjudicatory function
original and exclusive jurisdiction to hear and
decide the ffg. cases
recruitment violation and related cases
consisting of all preemployment cases
which are administrative in character,
involving or arising out of recruitment
laws, rules and regulation, violations of
the conditions for issuance of license to
recruit workers
Disciplinary action cases (warning,
repatriation,
suspension,
or
disqualification from
the overseas
employment program, or inclusion in
Art. 17
(Overseas Employment Development Board)
the powers and functions of the OEDB were taken
over by the POEA
composition of POEA
the Governing Board
Sec. of DOLE - Chairman
Administrator
3rd member (considered well-versed in
the field of overseas employment,
appointed by the Presodent for a term
of 2 years)
Office of the Administrator
office of the Deputy Administrator
Office of the Directors
legislative
background
of
overseas
employment:
Act. 2486 provides for license issuance
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other countries.
EO 797 aimed at streamlining operations
in the overseas employment program;
OEDB & NSB were united in a single
structure the POEA.
EO 247 reorganization
act of POEA,
strengthening of the worker's protection
and welfare and a tighter regulation of the
private sector's recruitment activities
RA 8042 Migrant Workers and Overseas
Filipino Act of 1995. institutes the policies
on overseas employment and establishes a
higher standard o protection and promotion
of the welfare of migrant workers, their
families, and of overseas Filipinos in
distress.
Requires
certain
guarantee
of
protection for the overseas workers
before they are deployed in countries
that meet some criteria
and license fee and welfare regulations.

PD 442 created the OEDB & NSB to
implement a more systematic deployment
of and-based and sea-based workers to
AUF School of Law
the POEA blacklist)

grounds:
commission
of
a
felony
punishable by Phil law or by
laws of the host country
drug addiction or possession or
trafficking of prohibited drugs
desertion or abandonment
drunkenness
gambling
initiating or joining a strike or
work stoppage where the laws
of the host country prohibit the
same
creating trouble at the worksite
embezzlement of company
funds
theft or robbery
prostitution
vandalism or destroying of
company property
gunrunning or possession of
deadly weapon
unjust refusal to depart for the

worksite after all employment
and travel documents have been
approved by the appropriate
government agency
violation of the laws and sacred
practices of the host country
and unjustified breach of
government-approved
employment contract by a
worker.
Migrant worker anybody who is engaged, or to

be engaged in a remunerated activity in a state of
which he or she is not a legal resident; OFW
To promote the efficient and economic delivery of
service, the POEA has the authority to set up
regional extension units. And their functions are:
execute policies, plans, programs in
regions outside Metro Manila
coordinate with loc gov officials in
implementing
overseas
employment
programs
advise the central office of the needs of the
region for particular welfare and regulatory
programs
establish linkage with other allied gov't
agencies in the pursuit of the objectives of
the overseas employment program
coordinate the anti-illegal recruitment
campaign in the regions
perform other functions as the POEA may
deem necessary
The POEA has no jurisdiction to hear and decide a

claim for the enforcement of a foreign judgment.
The function with regard to jurisdiction over money
claims had been transferred to the NLRC pursuant
to RA 8042, Sec. 10. this law also expanded the
scope of such money claims involving Filipino
workers for overseas employment.
- RA 8042 allows claims for money or
damages sustained during the period of
deployment or before departure for abroad.
- RA 8042 also allows recovery of actual,
moral, exemplary and other forms of
damages.
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The ffg. are originally functions of the

POEA but were transferred to NLRC
pursuant to RA 8042
employer-employee relations cases
consisting of all claims arising out of
an employer-employee relationship by
virtue of any law or contract involving
Filipino
workers
in
overseas
employment, such as but not limited
to:
violation of the terms and
conditions of employment
disputes
relating
to
the
implementation and interpretation
of employment contracts
money claims of workers against
their
employers
and
duly
authorized
agents
in
the
Philippines and vice versa
claims for death, disability and
other benefits
violation of or non compliance with
any
compromise
agreement
entered into by and between the
parties in an overseas employment
contract.
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Minimum employment conditions:

guaranteed wages for regular working
hours and overtime pay (not lower than the
prescribed minimum wage [mw] in the host
country, or mw standard set forth in
bilateral agreement, or mw in the Phil,
whichever is higher)
free transpo to and from worksite
free emergency medical and dental
treatment and facilities
free food or accomodation
just cause for termination (taking into
consideration the customs, traditions,
norms, mores, practices, company policies,
and the labor laws & soc. legislation of the
host country)
workmen's compensation benefits and war
hazard protection
repatriation of worker's remains and
properties in case of death to the point of
hire
assistance on remittance of worker's
salaries, allowances, allotment to his
beneficiaries
There is freedom to stipulate other terms and
conditions provided the whole employment
package should be more beneficial to the worker
than the minimum.
employment is terminated when the contract expires.

Their employment is contractually fixed for a certain
period of time. They fall under the exception of Article 280
whose employment has been fixed for a specific project
or undertaking the completion or termination of which has
been determined at the time of engagement of the
employee or where the work or services to be performed
is seasonal in nature and the employment is for the
duration of the season.
On issue of Constitutionality of Sec. 10 of RA 8042

Marsaman Manning Agency vs. NLRC
G.R. No. 127195, August 25, 1999
A plain reading of Sec. 10 clearly reveals that the choice
of which amount to award an illegally dismissed overseas
contract worker, i.e., whether his salaries for the
unexpired portion of his employment contract or three (3)
months' salary for every year of the unexpired term,
whichever is less, comes into play only when the
employment contract concerned has a term of at least
one (1) year or more. This is evident from the words "for
every year of the unexpired term" which follows the words
"salaries . . . for three months." To follow petitioners'
thinking that private respondent is entitled to three (3)
months salary only simply because it is the lesser amount
is to completely disregard and overlook some words used
in the statute while giving effect to some.
Serrano vs Gallant Maritime

G.R. No. 167614March 24, 200
In addition to the minimum requirements, the

solidary liability of the employer and the
recruitment agency for any and all claims shall be
incorporated in the contract for overseas
employment and shall be a condition precedent for
its approval.
Upon cursory reading, the subject clause appears facially

neutral, for it applies to all OFWs. However, a closer
examination reveals that the subject clause has a
discriminatory intent against, and an invidious impact on,
OFWs x x x with employment contracts of less than one
year vis--vis OFWs with employment contracts of one
year or more, or those among OFWs with employment
contracts or more than one year and OFWs vis--vis local
workers with fixed period employment," the Court held.
xxx
The subject clause or for three months for every
year of the unexpired term, whichever is less in the 5th
paragraph of Section 10 of Republic Act No. 8042 is
DECLARED UNCONSTITUTIONAL;
The POEA is authorized to recruit and place

workers primarily on government-to-government
arrangements and thus service the hirings of
foreign
government
ministries
and
instrumentalities.
Millares & Lagda vs. NLRC
Employer's nationality immaterial

Eastern Shipping Lines, Inc. vs. POEA
G.R. No. 77828 February 8, 1989
G.R. No. 110524, July 29, 2002

From the foregoing cases, it is clear that seafarers are
considered contractual employees. They can not be
considered as regular employees under Article 280 of the
Labor Code. Their employment is governed by the
contracts they sign everytime they are rehired and their
Jmvdg
The statute and the relevant regulations refer to

employment of Filipino workers overseas, i.e., outside the
Philippines. The statute and regulations do not limit their
coverage to non-Filipino employers. Filipinos working
AUF School of Law
affecting Filipino overseas.

It also formulates an integrated program for
the promotion of the welfare of Filipinos
overseas for implementation by suitable
existing agencies.
Attached to the DFA
***superseded by BP 79
Art. 20
(National Seamen
Board) powers and duty:
To provide free placement services for
seamen;
To regulate and supervise the activities of
agents or representatives of shipping
companies in the hiring of seamen for
overseas employment; and secure the best
possible terms of employment for contract
seamen workers and secure compliance
therewith; and
To maintain a complete registry of all
Filipino seamen.
overseas share the same risks and burdens whether their

employers be Filipino or foreign.
The underlying regulatory policy, as we see it, is that
Filipino seamen working on ocean-going vessels should
receive the same wages and benefits, without regard to
the nationality or nationalities of the vessels on which
they serve.
Basis of Compensation:
Dumez Co. vs. NLRC
G.R. No. 74495 July 11, 1996
It is proper for the POEA to have taken judicial notice of
foreign law applicable to a claim by a Filipino overseas
contract worker. True, a foreign law, being a matter of
evidence, must be alleged and proved, in order to be
recognized and applied in a particular controversy
involving conflicts of laws, jurisprudence on this matter
was not meant to apply to cases before administrative or
quasi-judicial bodies in the light of the well-settled rule that
administrative and quasi-judicial bodies are not bound
strictly by technical rules
Art. 18
(Ban on Direct Hiring )
General rule; Direct hiring of Filipino workers by a
foreign employer is not allowed.
Except: by members of diplomatic corps and other
mentioned in Art. 13 and name hires
An agreement that diminishes the employee's pay

and benefits in a POEA-approved contract is void,
unless such such subsequent agreement is
approved by POEA.
name hiree those individual workers who are

able to secure contract for overseas without the
assitance or participation of an agency. Their hiring
nonetheless has to be processed through the
POEA.
Wallem Shipping Inc. vs. Ministry of Labor

G.R. No. L-50734-37 February 20, 1981
But even if there had been such a threat, respondents'
behavior should not be censured because it is but natural
for them to employ some means of pressing their
demands for petitioner, who refused to abide with the
terms of the Special Agreement, to honor and respect the
same. They were only acting in the exercise of their
rights, and to deprive them of their freedom of expression
is contrary to law and public policy. There is no serious
misconduct to speak of in the case at bar which would
justify respondents' dismissal just because of their
firmness in their demand for the fulfillment by petitioner of
its obligation it entered into without any coercion,
specially on the part of private respondents.
On the other hand, it is petitioner who is guilty of breach
of contract when they dismissed the respondents without
just cause and prior to the expiration of the employment
contracts. As the records clearly show, petitioner
voluntarily entered into the Special Agreement with ITF
purpose of the law: to avoid diplomatic backlash.

To protect the good name of the country by
carefully processing or worker;s papers, thus
eliminating the misfit, poorly trained and
incompetent workers
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now the POEA

jurisdiction on money claims (Art. 20, (b))
transferred to NLRC (RA 8042)
Art. 19
(Office of Emigrant Affairs)
promote the well being of emigrants and
maintain their close link to the homeland
abolished and its function was transferred
to the Commission on Filipinos Overseas
(BP 79)
CFO provides advice and assistance to the
President and the Congress for the
formulation of policies and measures
8
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and by virtue thereof the crew men were actually given

their salary differentials in view of the new rates. It cannot
be said that it was because of respondents' fault that
petitioner made a sudden turn-about and refused to honor
the special agreement.
Art. 22
(Mandatory Remittance of
Foreign Exchange Earnings)
purpose: to boost the Philippine foreign exchange
reserves.
Mandatory remittance amount or portion of the
basic salary of OFW required under existing laws
and regulations to be remitted by the workers to
their beneficiaries in the Philippines and sold for
pesos to the Philippine banking system
Read: Vir-jen Shipping and Marine Services vs

NLRC (115 SCRA 347 and 125 SCRA 577)
Art. 21
(Foreign Service Role and Participation)
purpose: to inform the home country of the status
of workers employed in their respective areas of
assignment.
50%-80% of the basic salary prescribed

percentage of foreign exchange remittance (EO
857)
4 gov't agencies tasked to promote the welfare and

protect the rights of migrant workers.
DFA
Legal Assistant for Migrant Workers
(LAMW) tasked to provide and
coordinate all legal assistant services
to Filipinos in distress
administers the Legal Assistance
Fund for Migrant Workers
DOLE
POEA
OWWA
Art. 23. - repealed

Art. 24. - repealed
Chapter II
REGULATION OF RECRUITMENT
ANDPLACEMENT ACTIVITIES
Art. 25
(Private sector participation in the recruitment
and placement of workers)
Migrant Workers and other Overseas Filipinos

Resource Center in Philippine embassies where
there are more than 20,000 migrant workers
- provides assistance to migrant workers
(health, welfare, conciliation of disputes
from employer-employee relationship)
- managed by a Labor Attach
The POEA was granted the power of subordinate

legislation
The regulations issued by the administrative
agencies have the force of law.
Re-placing & Monitoring Center promotion

house for local employment of the returning
workers
- expected to develop livelihood programs
for the returning workers and formulate a
computer-based information system on
skilled Filipino migrant workers.
Requirement of publication of the regulations

issued by these administrative agencies is also
mandatory.
Requirements for securing a license:
certified true copy of Articles of
Incorporation or of Partnership registered
with SEC or certificate of registration of the
firm or business name with the DTI
proof of financial capacity
savings account certificate maintaining
balance not less than P500,000.00 with
authority to examine the same.
OWWA
- intended to provide social and welfare
services, including insurance coverage,
legal assistance, placement assistance and
remittance services to Filipino overseas
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workers.
Formerly known as the Welfund
has a role in repatriation of migrant workers
AUF School of Law
Art. 26
(Travel agencies prohibited to
recruit) disqualified:
travel agencies and sales agencies of
airline companies
officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency
persons with derogatory records

any official or employee of DOLE, POEA,
OWWA, DFA and other governent
agencies
directly
involved
in
the
implementation of RA 8042
relatives of the preceding within the 4 th civil
degree.
Proof of market capability.

NBI Clearance of all members of the BOD
verified undertakings
individual ITRs of propritors, partners,
stockholders, etc.
proof of possession of AB/BS degree and 3
years business experience
list of all officials and personnels involved
in the recruitment and placement, together
with their appointment
copy of contract of lease or proof of
building ownership (office address with at
least 100sq.m office space)
proof of publication of notice of the
application
certificate of attendance of owner in
seminars conducted by the Administration
upon approval of the application, the applicant
shall pay a license fee of P50,000.00. It shall
submit an Escrow Agreement in the amount of
P1M and a surety bond of P100k
Art. 27
(Citizenship requirement)
Only Filipino citizens or corporations, partnerships

or entities at least 75 percent 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.
provisional license
valid for a limited period of 1 year
to allow the applicant to comply with its
undertaking to deploy 100 workers to its
new principal.
Art. 28
(Capitalization)
An agency that fails to renew its license within 30

calendar days from expiration thereof shall be
deemed delisted and barred from engaging in
recruitment and placement activities.
The required capitalization, accdg. to POEA Rules

of 2002 is a minimum of 2million pesos in case of a
single proprietorship or partnership and a minimum
paid-up capital of the same amount for a
corporation.
Accreditation may be granted only when the

foreign signatory to the recruitment agreement with
the applicant agency is the direct employer of the
workers to be recruited.
Purpose: to assure the public and the government

that it is not a fly-by-night entity whose purpose of
its being is to abuse and fool people.
The accreditation of a principal may be transferred

to another agency provided that the transfer does
not involve any diminution of wage and benefits of
workers.
Art. 29 (Nontransferability of license or authority)

A license to operate a business enterprise is a
privilege which could be reasonable regulated by
the State by virtue of its inherent police power.
Full accreditation shall be valid for a maximum

period of 2 years from the date of the issuance,
subject to renewal.
Limitations on the use of license:

licensees or holders of authority or their
duly authorized representatives may, as a
rule, undertake recruitment and placement
activity only at their authorized official
Provisional accreditation may be granted for a

period of 90 days
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10
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addresses.
Personal in nature, thus it cannot be used
by any person other than one in whose
favor it was issued
intransferrable
medical examination fees
The
above-mentioned
placement
and
documentation costs are the only authorized
payments that may be collected from a hired
worker. No other charges in whatever form,
manner, or purpose, shall be imposed on and be
paid by the worker without prior approval of the
POEA.
Art. 30
(Registration fees)
The Secretary of Labor and Employment shall
promulgate a schedule of fees for the registration
of all applicants for license or authority.
POEA has the power to order refund of illegally

collected fees
license P50,000.00
Escrow Agreement P1million
surety bond P100,000.00
Art. 33
Reports on employment status
Art. 31
(Bond)
POEA possesses the power to enforce liability
under cash or surety bonds.
the data obtained from these reports serves as

guidelines in formulation of labor policies
Bonds and escrow 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.
these acts are not only grounds for suspension or

cancellation of license, but they likewise constitute
illegal recruitment under RA 8042.
Art. 34
(Prohibited practices)
paragraph (a)
1st part:
prohibits the charging or accepting of
fees than that allowed by regulations.
Fees shall be collected from a hired
worker only after he has obtained
employment through the facilities of
the recruitment agency.
Should the bond/deposit in escrow or any part

thereof be garnished, the same should be
replenished within 15 calendar days from notice
from POEA
Art. 32
(Fees to be paid by workers)
chargeable fees:
to principals:
(Sec. 2, POEA Rules & Regulations)
visa fee
air fare
POEA processing fee
OWWA membership fee
Paragraph (b)
includes the act of furnishing fake
employment documents to a worker
includes the act of publishing false notice
or information in relation to recruitment or
employment
to workers:
(Sec. 3, POEA Rules & Regulations)
passport
NBI/Police/Barangay Clearance
Authentication
Birth Certificate
Medicare
Trade test (if necessary)
inoculation
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2nd part:
deterrent to loan sharks who lend
money at usurious interests.
paragraph (d)
mere attempt to induce the worker to quit
his employment for the purpose of offering
him to another is sufficient to constitute the
11
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Law

offense.
agreement's termination was given to the

employee. (in pursuant to Art. 1921, Labor Code)
Paragraph (e)
non-licensees cannot lawfully engage in Required Undertakings by Agent: (POEA Rules.
Part II, Rule II, Sec. f)
recruitment & placement of workers
shall select only medically and technically
they
are likewise
prohibited
from
qualified recruits
attempting to influence another not to
assume full & complete responsibility for all
employ a worker.
claims and liabilities which may arise in
Paragraph (i)
connection with the use of license
assume joint and solidary liability with the
purpose: to protect both parties
employer for all claims and liabilities which
the law empowers the POEA to approve
may arise in connection with the
and verify a contract under this par. to
implementation of the contract; including
insure that the employee shall not thereby
but not limited to payment of wages, health
be placed in a disadvantageous position
and
disability
compensation,
and
and that the contract contains the minimum
repatriation
standard of such employment contract set
guarantee compliance with the existing
by the POEA.
labor and social legislation of the Phil. and
The prohibitions under this article are designed to
of the country of employment of recruited
worker
regulate of not totally eliminate malpractice
assume full and complete responsibility for
regarding recruitment and placement.
all acts of its officials, employees, and
Art. 35
representatives done in connection with
(Suspension and/or cancellation
recruitment and placement
of license or authority)
negotiate for the best terms and conditions
recruitment violations that may cause the
of employment
imposition of administrative sanctions(including
disclose the full terms and conditions of
suspension and cancellation of licenses)
employment to the applicant worker
engaging in acts of misrepresentations for
deploy at least 100 workers to its new
the purpose of securing a license or
markets within 1 year from the issuance of
renewal thereof.
the license
Engaging in the recruitment or placement
provide
orientation
on
recruitment
of workers in jobs harmful to public health
procedures, terms and conditions, and
or morality or dignity of the RP
other relevant information to its workers
charging of any fee before employment is
and provide facilities therefor
obtained for an applicant worker
repatriate the deployed workers and his
charging of any fee in amount exceeding
personal belongings when the need arise
the allowable rate
obstructing inspections by DOLE
A foreign corporation which, through unlicensed
agents, recruits workers in the country may be
a recruitment agency is solidarily liable for the
sued in and found liable by Philippine courts.
unpaid salaries of a worker it recruited for
RA 8042 envisions a phase out of POEA's
employment with a foreign principal.
regulatory functions so that the migration of the
Even if the recruitment agency and the principal
workers will become strictly a matter between the
had already severed their agency agreement at the
worker and his employer.
time the worker was injured, the recruitment
agency may still be sued for violation of the
employment contract, if no notice of the agency
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12
Chapter III
MISCELLANEOUS PROVISIONS
Art. 36
(Regulatory power)
The Secretary of Labor and Employment 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.
Art. 37
(Visitorial Power)
The Secretary of Labor and Employment 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 violations of any
provision of this Title.
Art. 38
(Illegal Recruitment)
RA 8042 made clear than even licensees or
holders of authority may be held guilty of illegal
recruitment.
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 the
Labor Code of the Philippines.
It shall likewise include the ffg acts:
(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 the recruiter or its agents
any amount greater than that actually loaned
or advanced to him;
(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 pr commit any act
of misrepresentation for the purpose of
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13
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 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 as may
be prohibited by law or duly constituted authority;
(g) To obstruct or attempt to obstruct inspection by
the Secretary of Labor and Employment or by his/her
duly authorized representative;
(h) To fail to submit 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 and
Employment under penalty of law;
(i) To substitute or alter to the prejudice of the worker,
employment contracts approved and verified by the
DOLE 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 DOLE;
(j) For an officer or agent of a recruitment or placement
agency to became 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;
(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) To fail to actually deploy without valid reason as
determined by the DOLE; and
(m) To fail to reimburse expenses incurred by the
worker in connection with his/her
AUF School of Law
20 years for illegal recruitment cases involving

economic sabotage
documentation and processing for purposes

of deployment, in cases where the
deployment does not actually take place
without the workers fault.
Title II
Employment Of Non-Resident Aliens
Art. 40 Art. 42
Only non-resident aliens are required to secure
employment permit.
4 types of illegal recruitment

simple
non-licensee
syndicated - carried out by a group of 3 or
more conspiring with one another.
large scale - committed against 3 or more
persons individually or as a group.
Resident aliens & immigrants are required an Alien

Employment Registration Certificate (AERC)
prohibitions on hiring foreigners:
Anti Dummy Law
prohibits employment of aliens in
entities that own or control a right,
franchise,
privilege,
property
or
business whose exercise or enjoyment
is reserved by law only to Filipinos or to
a corporation whose capital should be
at least 60% Filipino-owned
Art. XVI, Sec. 11, Constitution
mass media enterprise can be owned
or managed only by Filipinos or by a
corporation or associations wholly
owned or managed by them.
Omnibus Investment Code
enterprises registered under this law
may employ foreign nationals in
technical, supervisory, or advisory
positions.
If committed by a syndicate or in large scale shall

be considered an offense involving economic
sabotage.
The POEA or the Sec. of Labor do not have the
power to issue a warrant of search and seizure.
However, the power of the Secretary or his duly
authorized representatives to order the closure of
illegal recruitment establishments still subsists, the
same being considered essentially administrative
and regulatory in nature.
Procedure to order the closure of an illegal
recruitment establishment (see VIII, Anti-Illegal
Recruitment Programs, RA 8042)
Art. 39
(Penalties)
(see Section 7, RA 8042)
Department Order No. 12, Series of 2001

Omnibus Guidelines for the Issuance of
Employment Permits to Foreign Nationals
prvides a
list if individuals required to apply for
Alien Employment Permit (AEP)
list of individuals exempt from the AEP
requirement
list of bases of the issuance of AEP
venue: RTC of the province where the crime was

committed, or where the offended party actually
resides, ti the exclusion of other courts
period for resolution:
30 days from filing termination of
preliminary investigation
filing of information
24 hours from termination of investigation
if investigation was conducted by a
prosecutor
48 hours from termination of investigation
if investigation was conducted by a judge
permits shall be valid for a period of 1 year

application for renewal shall be filed 15 days prior
to the expiration of the permit.
5 years prescriptive period of illegal recruitment

cases
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BOOK TWO
HUMAN RESOURCES DEVELOPMENT
Title I
National Manpower Development Program
Chapter 1
NATIONAL POLICIES AND ADMINISTRATIVE
MACHINERY FOR THEIR IMPLEMENTATION
(Arts. 43-56 have been superseded
by RA 7796 or the TESDA Law)
TESDA took over the functions of:

National Manpower and Youth Council
(NMYC)
Bureau of Technical Skills and Vocational
Education
regional offices of DECS in the field of
vocational education
apprenticeship program of the BLE of
DOLE
composition:
TESDA board
The Secretary of DOLE Chairperson
Secretary of DepEd Co-Chairperson
Secretary of DTI Co-Chairperson
Secretary of DA Member
Secretary of DILG Member
Director-General
of
the
TESDA Secretariat Member
TESDA secretariat
headed by the Director General
Salient Features Of The TESDA
Act policy:
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 goals and priorities.
Goals:
Promote and strengthen the quality of
technical education and skills development
programs
to
attain
international
competitiveness;
Focus technical education and skills
implementation of this Act;
development on meeting the changing

demands for quality middle-level
15
manpower;
Encourage critical and creative thinking
by disseminating the scientific and
technical knowledge base of middlelevel
manpower
development
programs;
Recognize
and
encourage
the
complementary roles of public and
private
institutions
in
technical
education and skills development and
training systems; and
Inculcate desirable values through the
development of moral character with
emphasis on work ethic, self-discipline,
self-reliance and nationalism.
Powers and functions of the board

The Authority shall primarily be
responsible
for
formulating,
continuing,
coordinated and fully integrated technical
education and skills development policies,
plans and programs taking into consideration
the following:
The State policy declared herein of
giving new direction and thrusts to
efforts in developing the quality of
Filipino human resource through
technical
education
and
skills
development;
The implementation of the abovementioned
policy
requires
the
coordination and operation of policies,
plans, and programs of different
concerned sectors of Philippine
society;
Equal participation of representatives
of industry groups, trade associations,
employers, workers and government
shall be made the rule in order to
ensure that urgent needs and
recommendations
are
readily
addressed; and
Improved linkages between industry,
labor and government shall be given
priority in the formulation of any
national-level plan.
The Board, shall have the following powers:
promulgate, after due consultation with
industry groups, trade associations,
employers, workers, policies, plans,
programs and guidelines as may be
necessary
for
the
effective
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organize and constitute various standing

committees, subsidiary groups, or technical
working groups for efficient integration,
coordination and monitoring technical
education
and
skills
development
programs at the national, regional, and
local levels;
enter into, make, execute, perform and
carry-out domestic and foreign contracts
subject to existing laws, rules and
regulations.
restructure the entire sub-sector consisting
of all institutions and programs involved in
the promotion and development of middlelevel manpower through upgrading, merger
and/or phase-out following a user-led
strategy;
approve trade skills standards and trade
tests as established and conducted by
private industries;
establish and administer a system of
accreditation of both public and private
institutions;
establish, develop and support institutions'
trainors' training and/or programs;
lend support and encourage increasing
utilization of the dual training system as
provided for by Republic Act. No. 7686;
exact reasonable fees and charges for
such tests and trainings conducted and
retain such earnings for its own use,
subject to guidelines promulgated by the
Authority;
allocate resources, based on the
Secretariat's recommendations for the
programs and subjects it shall undertake
pursuant to approved National Technical
Education and Skills Development Plan;
determine and approve systematic funding
schemes such as the Levy and Grant
scheme for technical education and skills
development purposes;
create, when deemed necessary, an
Advisory Committee which shall provide
expert and technical advice to the Board to
be chosen from the academe and the
private sector: Provided, That in case the
Advisory Committee is created, the Board
is hereby authorized to set aside a portion
of its appropriation for its operation; and
perform such other duties and 16

functions necessary to carry out the
provisions of this Act consistent with
the purposes of the creation of TESDA.
The Authority is mandated to establish

Technical Skills Development Committees at
the regional and local levels to coordinate and
monitor the delivery of skills development
activities.
Middle-level manpower who have acquired
practical skills and knowledge through formal
or non-formal education and training equivalent
to at least a secondary education but
preferably at post-secondary education with a
corresponding degree of diploma or skilled
workers who have become highly competent in
their trade or craft as attested by industry
training systematic development of the
attitude/knowledge/skill
behavior
pattern
required for the adequate performance of a
given task
Incentive Scheme
developed by the TESDA to encourage
industries and institutions to provide
high-quality technical education and
skills development opportunities.
In the form of an additional deduction
from the taxable income which is
equivalent to a certain percentage of
the value of labor training expenses
incurred for development programs
conditions:
the apprenticeship program is
recognized by the DOLE
apprentices should be paid the
minimum wage; and
the deduction shall not exceed 10%
of the total direct labor wage
expended by the employer during
the taxable year
Title II
Training and Employment of Special
Workers
Chapter 1
APPRENTICESHIP
Art. 57-Art. 60
apprentice worker who is covered by an
apprenticeship agreement with an individual
employer or any of the entities recognized
under
AUF School of Law
the law.
years old
Sec. 11, Rule Vi, Book II of the Rules
Implementing the Labor Code provides
for 15 years old as apprenticeable age
15 years old0age requirement is also in
accordance with Sec. 12 of RA 7610 as
amended by RA 9231
be 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
possess the ability to comprehend and
follow oral and written instructions
Apprenticeship
arrangement and the period when an
upcoming worker undergoes hands-on
training, more or less formal, to learn the
ropes of a skilled job.
Previous laws on apprenticeship:

Minimum Wage Law (RA 602)
National Apprenticeship Act of 1957 (RA
1826 as amended by RA 2628)
Apprenticeship is significant as it fills the demand

of employers for workers in certain trades or
occupations which require special skills.
apprenticeable occupation any trade, form of

employment or occupation which requires for
proficiency more than 3 months of practical training
on the job with compulsory related theoretical
instructions.
General rule: The organization of apprenticeship

programs is primarily a voluntary undertaking pf
employers.
Exception: (compulsory apprenticeship)
when the national security or particular Highly-technical industry a trade, business,
requirements of economic development so
enterprise, industry or other activity which utilizes
demand
the application of advanced technology.
Apprenticeship contract
where services of foreign technicians are
utilized
by
private
companies
in
an agreement whereby an employer
undertakes to train the apprentice and the
apprenticeable trades, said companies are
apprentice in turn accepts the terms of the
required to set up apprenticeship programs
training.
The period of the apprenticeship contract
OJT practical work experience through actual
shall not exceed 6 months.
participation in productive activities given to or
A copy should be submitted to TESDA
acquired by the apprentice.
within 5 working days from execution
no person shall institute any action for the
OJT may be undertaken in:
enforcement
of
the
apprenticeship
the plan, shop, or premises of the
agreement or for damages for breach
employer or firm concerned if the
thereof unless he has exhausted all the
apprenticeship program is organized by an
administrative remedies.
individual employer or firm.
Valid causes for the termination of the
In the premises of one or several firms
apprenticeship agreement:
designated for the purposes by the
by the employer:
organizer of the program if such organizer
habitual absenteeism in the OJT
is an association of employers, civic group
with
compulsory
theoretical
or the like
instructions
in the DOLE Training Center
willful disobedience of company
rules or insubordination
Qualifications of an apprentice:
poor
physical
condition
or
at least 15 years old
prolonged
illness
which
Art. 59 of the Labor Code provides 14
incapacitates the apprentice for
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17
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work
theft or malicious destruction of
company
property
and/or
equipment
poor efficiency of performance
engaging in violence or other forms
of gross misconduct inside the
employer's premises
by the employee
substandard or deleterious working
conditions within the employer's
premises
repeated violation by the employer
of the terms of the contract
cruel of inhuman 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
bad health or continuing illness The
wage rate of the apprentice shall start at 75% of
the statutory minimum wage for the forst 6 months;
thereafter, he shall be paid with the full minimum
wage including the full COLA.
student is given real opportunities, including such

facilities as may be reasonable and necessary to
finish their chosen courses under such agreement.
Chapter 2
LEARNERS
Art. 73-77
learner person hired as a trainee in semi-skilled
and other industrial occupations which are nonapprenticeable
learnership & apprenticeship are similar because
they both mean training periods for jobs requiring
skills that can be acquired through actual work
experience
Learnership
Apprenticeship
trains in a skilled job or Trains in a highly skilled
in industrial occupations job or in a job found
that require training for only
in
a
highly
less than 3 months
technical industry
Training need not be Theoretical instruction is
supplemented
by a a condition sine qua
theoretical instruction
non
Training
period
is Training period is longer
shorter
because the job is not
easily learned
Employer is committed Employer
is
NOT
to hire the learnercommitted to hire the
trainee as an employee learner-trainee as an
after the training period employee
after
the
training period
Learnership agreement
Employment
of
do not need
prior apprentice is
legally
approval by DOLE but allowed
in
highly
are subject to DOLE's technical industries and
inspection.
only
in apprenticeable
occupations
approved
by DOLE
Learners employed in If training is prerequisite
piece or
incentive rate to
graduation or
a
jobs during the training requirement in taking
period is paid in full for board exam,the hiring
the work done
of
apprentices without
compensation
is
authorized
An apprenticehip program need prior approval by

the DOLE. If employed without a pre- approved
apprenticeship program, the apprentice is not an
apprentice but a regular employee. (Nitto Ent. Vs
NLRC, GR 114337)
procedure in case of violation of apprenticeship
contract:
investigation
appeal to the Secretary of Labor
doctrine of exhaustion of administrative
remedies - requires that were an administrative
remedy is provided by law, relief must first be
sough by exhausting remedies before the court will
act
There is no employer-employee relationship
between students on one hand, and academic
institutions on the other hand, where there is a
written agreement between them under which the
former agrees to work for the latter in exchange for
the privilege to study free of charge, provided the
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BOOK THREE
CONDITIONS OF EMPLOYMENT
The Secretary of Labor may cancel any learnership

program if upon inquiry, it is found that the
justification for the program no longer exists
Title I
Working Conditions and Rest Periods
penalty for violation:

fine: P1, 000.00 P10, 000.00
range of imprisonment:3 months 3 years
Chapter 3
HANDICAPPED WORKERS
handicapped worker one whose earning
capacity is impaired by age or physical or mental
deficiency or injury.
Disabled worker one whose earning capacity is
impaired by mental, physical or sensory deficiency
or injury.
RA 7277
Magna Carta for Disabled Persons
insures equal opportunities for disabled
persons and prohibits discrimination
against them.
Fundamentally it provides that no disabled
person shall be denied access to
opportunities for suitable employment. A
qualified disabled employee shall be
subject to the same terms and conditions of
employment and the same compensation,
privileges, benefits, incentives or allowance
as a qualified able-bodied person.
Private entities that employ disabled persons who
meet the required skill or qualifications either as
regular employee, apprentice, or learner, shall be
entitled to an additional deduction from their gross
Income, equivalent to 25% of the total amount paid
as salaries and wages to disabled persons.
Handicapped workers are eligible for employment
as apprentices or learners if their handicap is such
that it does not impede the performance of ob
operations in the particular trade or occupation
which is the subject of the apprenticeship of
learnership agreement.
Chapter 1
HOURS OF WORK
(Art. 82)
Conditions of Employment
right of control test
where the person for whom the services
are performed reserves the right to control
not only the end to be achieved but also
the means to be used in reaching such
end.
Four-fold test:
selection and engagement of the employee
payment of wages
power of dismissal
control test
not covered by Book 3, of Labor Code:
Government employees
refers to those employed by the
National Government or any of its
political subdivisions including those
employed in government-owned or
controlled corporations
the are governed by the Civil Service
Law
government owned or controlled
coporations
with original charter governed by
civil service law
without original charter governed
by the Labor Code
Managerial employees
they refer to those who meet the ffg
conditions:
their primary duty consists of the
management of the establishment
in which they are employed or of a
department or subdivision thereof
they customarily and regularly
direct the work of two or more
employees therein
they have the authority to fire or
Jmvdg
19
officers and member of the managerial staff
hire other employees of lower rank

they are employed b virtue of their
special
training
or
expertise,
experience or knowledge and for
positions which require the exercise of
independent judgment and discretion.
they are exempted if they perform the
ffg duties and reponsibilities
duties that consists in the
performance of work directly
related to management policies of
their employers
they customarily exercise discretion
and independent judgment
they regularly and directly assist a
proprietor or managerial employee
they do not devote more than 20%
of their hours in a workweek to
activities which are not directly or
closely related to the abovementioned
their powers are not subject to
evaluation, review and final action by
the department heads and other higher
executives of the company
field personnel
refers to non-agricultural employees
who regularly perform their duties away
from the principal place of business or
branch office of the employer
members of the family of the employer who

are dependent on him for support
includes husband and wife, parents
and children, other descendants and
ascendants, brothers and sisters
domestic helpers and/or persons in the

personal service of another
those who performs services in he
employer's home which are usually
necessary or desirable for the
maintenance and enjoyment thereof
minister to the personal comfort,
convenience, or safety of the employer
as well as the members of his
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employer's household
workers paid by result

payment of this type of worker is
determined by the results of the work
performed or the number of units
produced
piece work
task work
(Art. 83)
Normal Hours of Work
day workday of 24 hours beginning at the same
time each calendar day
week workweek of 168 consecutive hours; 7
consecutive 24 hours; beginning at the same hour
and the same calendar day each calendar week.
The 8-hour work requirement does not preclude
the employer to produce the working hours,
provided that there is no concomitant reduction in
pay.
Purposes:
protect the health of the workers
assure adequate leisure to workers in order
to enable them to lead richer and more
fruitful lives
spread employment
shifts:
1st shift 8am to 4pm
2nd shift 4pm to 12mn
3rd shift 12mn to 8am
effects of shorter working hours:
increase in work output
improved health of workers
decrease in the amount of voluntary
absenteeism
reduce of rate and severity of industrial
accidents
increase mechanization and improved
methods
greater pressure for employees to be more
productive and efficient
promotion of good citizenship
alleviating unemployment
20
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(Art. 84)
compensable hours worked
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 place
all time during which an employee is
suffered or permitted to work
provided with adequate breaks in the

morning and afternoon
(Art. 86)
Night Shift Differential
Rationale of night shift differential:
night work cannot be regarded as
desirable, either from the point of view of
the employer or the wage earner.
principles in determining hours worked:
Burden of proof of payment for nigh shift

differential rests on the employer.
(Art. 85)
Meal periods
General rule: Employees are entitled to at least 1

hour time-off regular meals which can be taken
inside or outside company premises
exception: (at least 20 minutes meal period)
where the work is non-manual in nature
where an establishment regularly operates
not less than 16 hours a day
in case of actual or impending
emergencies or there is urgent work to be
performed on machineries, installations, or
equipments to avoid serious loss which the
employer would otherwise suffer
where the work is necessary to prevent
serious loss of perishable goods
Night shift differential cannot be waived. It is

founded on public policy, hence cannot be waived
(Art. 87)
Overtime Work
overtime compensation
additional pay for service or work rendered
or performed n excess of 8 hours a day by
the employees in employment covered by
the 8-hour labor law.
Computed my multiplying the overtime
hourly rate by the number of hours worked
in excess of eight hours.
Amount equivalent to his regular wage plus
at least 25% thereof
Rationale: to encourage employers to
dispense with such works thus providing
the employees an opportunity to satisfy
their mental, moral, and spiritual needs.
Entitlement to overtime pay must first be
established by sufficient proof that said
overtime work was actually /performed
before an employee may avail of said
benefit.
For seamen, the criterion in determining
Won they are entitled to overtime pay is
that whether they actually rendered service
in excess of said number of hours
right to claim overtime compensation
cannot be waived because it is in the
category of benefits and it is governed by
law not by agreement of the parties.
Principles of estoppel and laches are not
applicable
coffee breaks (5 to 20mins.)are considered as

compensable working time.
Where the lunch period is spent predominantly for
the employer's benefit, and cannot be utilized in
the employee's own intersts, such time constitutes
work time. (31 Am. Jur. 881)
shortened meal period is not compensable.
conditions on arrangements on shorten meal time
at employee's request:
the employees voluntarily agree in writing
to a shortened meal period of 30 mins and
are willing to waive overtime pay for such
shortened meal period
there will be no diminution whatsoever in
the salary and other fringe benefits of the
employees
the work of the employees does not involve
strenuous physical exertion and they re
Jmvdg
21
when the tour of duty of the employee is at

night time, the receipt of overtime pay will
not preclude the right to night differential
pay. The latter is payment for work done
while the other is payment for the excess of
the regular 8-hour work.
Chinese overtime a system of overtime

payment in which salaried employee's regular rate
is calculated by dividing his salary by the total
number of hours he work. Thus, the greater the
number of hours, the lower the rate of pay per hour
unduly reducing the take home pay of the
employee.
Day 24-hour period which commences from the
time the employee starts to work.
(Art. 88)
Undertime not Offset by Overtime
purpose: allowing this would result to unfairness.
Employer: will be exempt from paying
additional pay for overtime work
Employee: would be allowed to schedule
his working hours at will thereby destroying
the regular working schedule.
(Art. 89)
Emergency Overtime Work
compulsory overtime work:

When the country is at war or when any
other national or local emergency has been
declared by Congress or the Chief
Executive;
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;
When there is urgent work to be performed
on machines, installation or equipment, in
order to avoid serious loss or damage to
the employer or some other cause of
similar nature;
When the work is necessary to prevent
loss or damage to perishable goods;
Where the completion or continuation of
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the work started before the 8th hour is

necessary to prevent serious obstruction or
prejudice to the business or operations of
the employer.
If the worker willfully refuses to perform overtime
work in any of the instances specified by law, he
may be legally dismissed on the ground of
insubordination.
(Art. 90)
Computation of Additional Compensation
Regular wage
All payments which the parties have agreed shall
be received during the work week, including
piecework wages, differential payments for
working at undesirable times, and the cost of
board and lodging customarily furnished the
employee. (NAWAS ruling)
said ruling was superseded in subsequent
decisions of the SC
in the computation of overtime
pay, the premium pay for work
done on Sundays, holidays and at
night inclusing fringe benefits,
which are ocassionally and not
regularly received and not by all
employees SHOULD NOT be added
to the basi pay. Such inclusion into
the regular or basic pay militates
agaisnt the basic rationale of
overtime pay, which simply is the
extra
compensation
for
the
additional work done beyond that
contemplated in the employment
contract.
Regular wage DO Not include COLA,
longevity pay of other fringe benefits which
item constitutes extra pay or additions to
the regular or basic pay
regularity and continuity test of the benefits
enjoyed by the employees condition precedent
before such additional payments or benefits are
taken into account. (NAWASA ruling, already
superseded)
regular base pay excludes money received by
an employee in different concepts, such as
Christmas bonus and other fringe benefits.
22
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Jmvdg
Chapter 2
WEEKLY REST PERIODS
(Art. 91)
Right to Weekly Rest Period
>not less that 24 consecutive hours after every six
consecutive normal days.
The rest period is needed especially by a worker to
rejuvenate and revitalize his lost energy in order to
raise the rate of his output.
General rule: Employer shall determine and
schedule the weekly rest day of his employees.
Exception: the preference of the employee shall
be respected if the same is based on religious
grounds. Provided that he make known such
preference in writing at least 7days before the
desired effectivity of the initial rest day so
preferred.
(Art. 92)
When Employer may Require Work on a Rest Day
General rule: No employee shall be required
against his will to work on his scheduled rest day.
Exceptions:
in cases of actual or impending
emergencies
in case of urgent work to be performed
in the event of abnormal pressure of work
due to special circumstances
to prevent loss or damage to perishable
goods
nature of the work requires continuous
operations
other analogous circumstances
when an employee volunteers to work on his rest day,
he shall express such desire in writing, subject to the
provision regarding additional compensation.
(Art. 93)
Compensation for Rest day,
Sunday or Holiday Work

additional compensation of at least 30% of his
regular wage
An employee shall be entitled to additional
holiday,
compensation for work performed on Sunday
only when it is his established rest day.
23
If the employee has no regular workday or
regular rest day, he shall be paid the additional
compensation of at least 30% of his regular
wage for work performed on Sundays and
holidays.
Special holiday + rest day = additional
compensation of at least 50% of his regular
wage.
Premium pay
additional compensation granted to a
covered
employee
for
services
rendered on holidays or rest day.
refers to the additional compensation
required by law for work performed
within eight (8) hours on non-working
days, such as rest days and special
days. (No. III, DOLE Handbook on
Workers Statutory Monetary Benefits).
Premium
pay
is
not
included
in
the
th
computation of 13 month pay.

Waiver of compensation for work on rest days
and holidays is not valid.
Chapter 3
HOLIDAY: SERVICE INCENTIVE LEAVES
AND
SERVICE CHARGES
(Art. 94)
Right to Holiday
Pay
holiday consecrated day, a religious festival,
a day of exemption, that is cessation from
work, a day of festivity, recreation or
amusement
legal holiday day designated or set part by
the legislature, for a purpose within the
meaning of the term holiday, in order to
commemorate an important event.
Holiday pay
premium given to employees pursuant
to law even if he is not suffered to work
on a regular holiday.
If worker did not work on regular
AUF School of Law
he is entitled to 100% of his basic pay;

If he worked, he is entitled to 200% thereof.
of holiday pay benefits pursuant to the rule which

excluded employees uniformly paid by the month
from the same, was in compliance with such
presumably valid rule until it was declared null and
void.
Regular Holidays
New years Day-January 1
Maundy Thursday-Movable date
Good Friday-Movable date
Eidul Fitr-Movable date
Araw ng Kagitingan- April 9
(Bataaan and Corregidor Day)
Labor Day- May 1
Independence Day- June 12
National Heroes Day-Last Sunday
of August
Bonifacio Day- November 30
Christmas Day-December 25
Rizal Day-December 30
Divisor which indicates that the 11 legal holidays

have already been included in the salary of
monthly paid employees
6-day working schedule
314 divisor
5-day working schedule
261 divisor
effects of absences on holiday pay
Conditions on day
entitlement to
preceding the holiday
holiday pay
On LOA with pay
Nationwide Special Holidays

Ninoy Aquino Day-August 21
All Saints Day-November 1
Last Day of the Year-December 31
Regular Holiday
Covered employee who
does not report for work
during regular holidays
is paid 100% of his
regular wage
An employee who
reports for work on a
regular holiday is
entitled to 200% of his
regular wage
Yes
On LOA without pay

No
Non-working day or rest Yes
(provided
he
day of the employee
work on the
day
immediately
preceding the
nonworking or rest day)
Special Day
Covered employee who
does not report for work
during special day is not
entitled to any
compensation under the
principle of no work, no
pay
An employee who
reports for work on a
special day is entitled to
an additional 30% of his
basic pay.
2 successive regular holiday

if the employee absents Not entitled to holiday
himself from work without pay for both holidays
pay
on
the
day
immediately preceding the
1st regular holiday
If he works on the 1st
Yes, entitled to pay
on the 2nd holiday
holiday
Holiday pay of certain employees
private school teachers may not be paid for the
regular holidays during semestral vacations
Additional 50% if such

special day falls on his
rest day.
faculty member paid per lecture hour not entitled

to holiday pay
employees paid by result their holiday pay shall
not be less than his average daily earnings for the
last 7 working days preceding the regular holiday.
Seasonal workers may not be paid the required
holiday pay during off-season when they are not at
work
Monthly paid employees are not excluded from the

benefits of holiday pay. Provisions of Section 2, Rule
IV, Book III of IRR and Policy Instruction No 9 have
been declared null and void in the case of
IBAAEU vs Inciong et al (1984)

under the operative fact doctrine, the nonpayment
Jmvdg
24
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workers with no regular working days shall be

entitled to benefits.
Where a regular holiday falls on a Sunday, the

following day shall be considered a special holiday
for purposes of the Labor Code, unless said day is
also a regular holiday. (Sec. 9, Rule IV, Book III,
IRR Labor Code)
Under RA 9262, victims of violence against

women and children are entitled to take a paid
leave of absence up to 10 days in addition to other
paid leaves under the Labor Code.
(Art. 96)
Service Charge
rule on 2 regular holidays falling on the same

day
If employee did not work: 200% of
basic pay;
If employee worked: 300% of basic pay.
Service charges are distributed in accordance

with the following percentage of sharing:
eighty-five percent (85%) for the
employees to be distributed equally
among them; and
fifteen percent (15%) for the management
to answer for losses and breakages and
distribution to managerial employees.
(Art. 95)
Right to Service Incentive Leave
purpose of the law:
afford a laborer a chance to get a much needed
rest to replenish his worn out energies and acquire
a new vitality to enable him to efficiently perform
his duties, and not merely to give him additional
salary or bounty.
The shares shall be distributed to employees not

less often than once every 2 weeks or twice a
month at intervals not exceeding 16 days.
TITLE II
WAGES
If the employee unused the 5-days service leave

incentive, this benefit is convertible to cash
equivalent based on the salary rate at the date of
commutation.
Chapter 1
PRELIMINARY MATTERS
"one year of service"

service within twelve (12) months, whether
continuous or broken
reckoned from the date the employee
started working, including authorized
absences and paid regular holidays, unless
the number of working days in the
establishment as a matter of practice or
policy, or that provided in the employment
contract, is less than twelve (12) months, in
which case, said period shall be
considered as one (1) year for the purpose
of determining entitlement to the service
incentive leave. (Sec. 2 and 3, Rule V,
Book III, IRR of Labor Code)
Wages
Salaries
Compensation
for Denotes of a larger and
manual labor, skilled or more important service
unskilled, paid at stated
times and measured by
the day, week, month or
season
Cannot be subject
to Can be subject
to
garnishment
or garnishment
or
attachment
attachment
(Art. 1708, NCC)
Twin attributes of wage

cash wage
ready money paid by the employer for
services rendered by the employee
exempted employees:
those enumerated in Art. 82, Labor Code
those enjoying vacation leave with pay of
at least 5 days
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employees in establishments regularly

employing less than 10 employees.
25
facilities
articles or services customarily given
for the benefit of the employee and are
voluntarily accepted by him
chargeable only to employees if:
there are proofs to show that such
facilities are customarily furnished
by the trade
the provision of deductible facilities
is voluntarily accepted in writing by
the employee
facilities are charged at fair and
reasonable value
supplements
extra remunerations or benefits given to an
employee.
Their value cannot be deducted from the
cash wage of an employee
Purpose of the grant is the controlling test to know
WON such grant is a facility or a supplement.
Bonus
payment in excess of regular or
guaranteed wages
not a legally demandable and enforceable
obligation
except:
if it is given without any condition
if it is a result of an agreement such
as CBA
if it is given on account of company
policy or practice
grant is mandated by law
The statutory benefit of 13th month pay is
automatically vested in the employee who has at
least worked for one month during the calendar
year, and such benefit may not be lost or forfeited
even in the event of the employee's subsequent
dismissal for cause without violating his property
rights.
The required 13th month pay shall be paid not later
than December 24 of each year.
AUF School of Law
(Art. 98)
Application of Title
Title II, Book III of LC does not apply to ffg:

farm tenancy or leasehold
domestic helpers
persons in the personal service of another
homeworkers engaged in needlework
Chapter II
MINIMUM WAGE RATES
The minimum wage rates for agricultural and nonagricultural workers and employees in every region
shall be those prescribed by the Regional Tripartite
Wages and Productivity Boards (RTWPB) which
shall in no case be lower than the statutory
minimum wage rates.
Standards:
demand for living wage
wage adjustment vis-a-vis consumer price
or cost of living index
cost of living and increase therein
needs of workers and their families
need to induce industries to invest in the
countryside
improvements in the standards of living
prevailing wage levels
employer's capacity to pay
effects on employment generation and
family income
equitable distribution of income and wealth
along the imperatives of economic and
social development
2 methods on determining wages
floor wage method
involves the fixing of a determinate
amount that would be added to the
prevailing statutory minimum wage
salary ceiling method
involves a wage adjustment applied to
employees
receiving
a
certain
denominated salary ceiling
2 methods of payment
time wages
production wages
Jmvdg
26
the minimum wage fixed by law is mandatory; thus

it is non-waivable and non-negotiable.
Wage order
Order promulgated by the Regional
Tripartite Wages and Productivity Board
(RTWPB) pursuant to its wage fixing
authority.
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
(Art. 100) Prohibition
Against Elimination or
Diminution of Benefits
The principle of non-elimination or non-diminution
of benefits mandates that the reduction or
diminution or withdrawal by employers of any
benefits, supplements or payments as provided in
existing laws, individual agreements or collective
bargaining agreements between workers and
employers or voluntary employer practice or policy,
is not allowed.
(Art. 101)
Payment by Results
the purpose of the law is to insure the payment of
fair and reasonable wage rate to worker paid by
result who should be protected form unjust and
unfair employers.
Wage rates of employees paid by result may be
determined through the use of time and motion
studies or consultation with representatives of
employer's and worker's organization.
AUF School of Law
Chapter III
PAYMENT OF WAGES
(Art. 102)
Forms of Payment
Under Art. 1705 of the Civil Code, it is mandated
that the laborers wages shall be paid in legal
currency. Under the Labor Code and its
implementing rules, as a general rule, wages shall
be paid in legal tender and the use of tokens,
promissory notes, vouchers, coupons or any other
form alleged to represent legal tender is prohibited
even when expressly requested by the employee.
Exceptions :
A. Payment through automated teller machine
(ATM) of banks provided the following conditions
are met:
1. the ATM system of payment is with the
written consent of the employees concerned;
2. The employees are given reasonable time
to withdraw their wages from the bank
facility which time, if done during working
hours, shall be considered compensable
hours worked;
3. The system shall allow workers to receive
their wages within the period or frequency
and in the amount prescribed under the
Labor Code, as amended;
4. There is a bank or ATM facility within a
radius of one (1) kilometer to the place of
work;
5. Upon request of the concerned employee/
s, the employer shall issue a record of
payment of wages, benefits and deductions
for a particular period;
6. There shall be n additional expenses and
no diminution of benefits and privileges as a
result of the ATM system of payment;
7.
The
employer
shall
assume
responsibility in case the wage protection
provisions of law and regulations are not
complied with under the arrangement.
(Explanatory Bulletin issued by DOLE
Secretary Leonardo Quisumbing dated
November 25, 1996).
B. Payment by check or money order, (the
foregoing conditions on existence of bank facility
Jmvdg
27
and other factors should also concur).

Penalty: Arresto mayor or a fine ranging from 200
to 500 pesos (Art. 288, RPC)
(Art. 103)
Time of Payment
General rule: wages shall be paid not less often

than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. No
employer shall make payment with less frequency
than once a month.
Exception: when payment cannot be made with
such regularity due to force majeure or
circumstances beyond the employers control, in
which case, the employer shall pay the wages
immediately after such force majeure or
circumstances have ceased.
(Art. 104)
Place of Payment
General rule: the place of payment shall be at or

near the place of undertaking.
Exceptions:
When payment cannot be effected at or
near the place of work by reason of the
deterioration
of
peace
and
order
conditions, or by reason of actual or
impending emergencies caused by fire,
flood, epidemic or other calamity rendering
payment thereat impossible;
When the employer provides free
transportation to the employees back and
forth; and
Under any other analogous circumstances,
provided that the time spent by the
employees in collecting their wages shall
be considered as compensable hours
worked.
(Art. 105)
Direct Payment of Wages
General rule: payment of wages shall be made
directly to the employee entitled thereto and to
nobody else.
Exceptions.
a. Where the employer is authorized in
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AUF School of Law
writing by the employee to pay his wages to

a member of his family;
b. Where payment to another person of any
part of the employees wages is authorized
by existing law, including payments for the
insurance premiums of the employee and
union dues where the right to check-off has
been recognized by the employer in
accordance with a collective agreement or
authorized in writing by the individual
employees concerned; or
c.
In case of death of the employee, in
which case, the same shall be paid to his
heirs without necessity of intestate
proceedings.
(Art. 106)
Contractor or Subcontractor
Contracting or subcontracting - It refers to an
arrangement whereby a principal agrees to put out
or farm out with a contractor or subcontractor the
performance or completion of a specific job, work
or service within a definite or predetermined
period, regardless of whether such job, work or
service is to be performed or completed within or
outside the premises of the principal.
Labor-only contracting
the contractor supplying workers to an
employer
does not have substantial capital or
investment to actually perform the job,
work or service under its own account
and responsibility
the workers recruited, supplied, and
placed by such contractors are
performing activities which are directly
related to the principal business of the
employer.
The third person or the intermediary is
considered merely an agent of the
employer.
The employer is made responsible to the
employees of the labor-only contractor as
if such employee had been directly
employed by the employer.
The law holds both the employer and the
labor-only contractor responsible to the
latter's employees for the more effective
28
safeguarding of the employee's right under Jmvdg

the Labor Code (Ecal vs NLRC)
in house agency
refers to a contractor or subcontractor
engaged in the supply of labor which:
is owned, managed, or controlled by
the principals,
operates solely for the principal
owning, managing, or controlling it.
Contracting out a job, work or service
through an in0house agency is contrary to
law or public policy (Sec. 2&7 Rule VIII-A,
Dept. Order No. 10)
job contracting:
allowed by law if the ffg conditions are met:
the
contractor
carries
on
an
independent business and undertakes
to contract work on his own account,
under his own responsibility, etc.
the contractor has substantial capital or
investment in the form of tools,
equipments,
machineries,
work
premises and other materials which are
necessary in the conduct of business.
No employer-employee relationship exists
between the owner of the project and the
employees of the contractor
the principal employer is considered only
an indirect employer.
(Art. 107)
Indirect Employer
indirect employer
one who enters into a contract with an
independent
contractor
for
the
performance of any work, task, job or
project not directly related to the
employer's business.
Independent contractor
those
who
exercise
independent
employment, contracting to do a piece of
work according to their own methods and
without being subject to control of their
employer except as the result of their work.
Not being an employer
AUF School of Law
contractor.
refers only to one who is not a direct

employer under Art. 106
(Art.
108)
Posting of
Bond
purpose of the law:

protect workers from economic exploits
by unscrupulous contractors or subcontractors who may declare at will that
they are losing due to financial
difficulties; thus, employees may not be
paid their wages.
Bond shall be equal to the cost of labor under
contract and should the contractor or
subcontractor fail to pay the wages due the
employees, the bind shall answer. (Sec. 7,
Rule VIII, Book III, IRR LC)
The employer who fails to require the contractor
to post a bond must answer for whatever
liabilities the contractor may have incurred to his
employees.
(Art.
109)
Solidary
Liability
in legitimate job contracting, the principal is
jointly and severally liable with the contractor
for the payment of unpaid wages.
For purposes of determining the civil liability,
the indirect employer or principal is considered
as direct employer.
Correlate to Art. 1278 of the Civil Code
purpose: to assure compliance of the
provisions therein including the statutory
minimum wage
Nothing in Art. 106 indicates that the
insolvency or unwillingness to pay by the
contractor or direct employer is a prerequisite
for the joint and several liability of the principal
or indirect employer.
Burden to prove that he/it has substantial
capital, investment, tools, etc. lies on the
The indirect employer is solidarily liable with the

contractor. However, he can claim reimbursement
from the contractor who is the direct employer of
29
the workers.
(Art. 110)
Workers preference in case of bankruptcy
purpose:
It is but humane and partakes the divine
that labor, as human beings, must be treated over
and above chattels, machineries, and other kinds
of properties and the interests of the employer who
can afford to survive the hardships of life better
than their workers.
this provision has been amended by RA 6715 and
its IRR.
A declaration of bankruptcy or a judicial liquidation
must be present before the worker's preference
may be enforced. Art. 110 and its IRR cannot be
invoked absent a formal declaration of bankruptcy
or liquidation order. (DBP vs NLRC, 183 SCRA
328)
Under Art. 110 of the LC, as amended, the unpaid
wages and other monetary claims of the workers
should be paid in full before the claims of the
Government and other creditors. Thus, not even
tax claims could have preference over worker's
claim.
Claims for unpaid wages do not therefore fall at all
within the category of specially preferred claims
established under Art. 2241 and 2241 of the Civil
Code, except to the extent that such claims for
unpaid wages are already covered by Art. 2241,
Number 6 or Art. 2242 number 3.
preference of credit
Bestows upon the creditor an advantage of
having his credit satisfied first before other
claims which may be established against
the debtor
What this provision establishes is not a lien, but a
reference of credit in favor of the employees.
AUF School of Law
Applies only to claims Creates a charge on a

which do not attach to
specific property
specific properties
Not an interest
in An interest in a property
property
Cannot exist or operate May exists against the
except where the debtor property of
a solvent
is unable to pay his
debtor
debts in full
Preferred creditor has Lienor has a right of
no cause of
action action
against
any
against
any
other person who takes the
creditor
property upon which he
has lien
(Art. 111)
Attorney's Fees
This provision envisions a situation where there is
a judicial or administrative proceedings for
recovery of wages.
Attorney's fees may be awarded only when the
withholding of wages is unlawful.
Standards for payment of Attorney's fees
must be reasonable; must have a bearing
on the importance of the subject matter in
controversy;
extent of the services rendered
the professional standing of the lawyer
the financial capacity and economic status of the
clients can be taken into account in fixing the
reasonableness of the attorney's fees.
Cannot be awarded to non-members of the bar.
CHAPTER IV
PROHIBITIONS REGARDING WAGES
(Art. 112) noninterference in disposal of wages
penalty (RPC): arresto mayor or a fine ranging
from 200 to 500 pesos.
(Art. 113)
Preference of credit
Lien
Wage Deductions
Jmvdg
30
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the evil sought to be prevented is to forestall the

commission of unwarranted practices of employers
by making unnecessary deductions without
employee's knowledge or authorization.
Wage deductions allowed:
when they are authorized by law
insurance premiums
union dues
facilities supplied
loss or damage to tools, materials,
equipment supplied by the employer in
a trade, occupation or business
taxes withheld pursuant to NIRC
SSS, Philhealth, and Pagibig premiums
employee's compensation premiums
demandable debt due
deductions made in case of judgment
(Art. 116)
Withholding of Wages and Kickbacks
withholding of wages and kickbacks are unlawful
acts, be they direct or indirect, by means of force,
stealth, intimidation, threat, or dismissal, or by any
means whatsoever without the worker's consent.
Kickback compulsory withholding of a portion of
an employee's wages by the employer or his agent
as a condition to maintain employment or as a
bribe for obtaining job.
when they are with the written authorization Jmvdg

of the employees for payment to a 3 rd
person
when they are made pursuant to the order
of the court (order of garnishment)
when deductions, as agency fees, are
made against the salary wage of a nonmember of the union; provided he accepts
the benefits of the CBA
when deductions are made for habitual
tardiness or absence as a form of
disciplinary measures (docking)
check-off
system by which union dues and other
assessments are deducted from the
employee's wage by the employer upon
authorization from the worker or by
mandate of law.
Valid only as the employees remain
members of the union concerned
(Art. 114-115)
Deposits for Loss or Damages/Limitations
Requisites:
employee concern is clearly shown to be
responsible for the loss or damage
employee is given reasonable opportunity
to show cause why deduction should not
be made
the amount of the deduction is fair and
reasonable and should not exceed the
actual loss or damage
the deduction should not exceed 20% of
the employee's wage in a week.
Authorized withholding of wage:

debt that is due and demandable
execution or attachment for debts
incurred for food, shelter, clothing,
medical attendance
(Art. 117)
Deduction to Ensure Employment
this is also a form of kickback
This is punishable under Art. 288 of the Labor
Code which can subject the employer to
criminal liabilities
(Art. 118)
Retaliatory
Measures
unlawful retaliatory acts include:

refusal to pay or reduction of wages
and benefits due
illegal dismissal
discriminating an employee
these can be treated as unfair labor practice
under Art. 248 of the Labor Code.
Penalty: see Art. 288 of the Labor
Code (Art.
119)
False Reporting
31
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records to be kept:
payroll
length of time to be paid
rate of pay
amount due for regular work
amount due for OT
deductions from the wages
amount actually paid
time records
through bundy clock
timekeeper
individual dtr
Managerial employees, officers or members of the
managerial staff, as well as non-agricultural field
personnel need not be required to keep individual
DTRs, provided that a record of their daily
attendance is kept and maintained by the employer
for employees paid by result, the employer shall
keep a copy of their production records.
Employment records shall be kept and maintained
in or about the premises of the workplaces, and
which shall be preserved for at least three (3)
years from entry in he records.
Chapter V
WAGE STUDIES, WAGE AGREEMENTS AND
WAGE DETERMINATION
(Art. 120)
Creation of National Wages and Productivity
Commission
composition:
Sec of DOLE ex-officio Chairman
Dir. Gen of NEDA ex-officio vice
Chairman
2 members form the workers and
employers sector with term of 5 years
executive Director of NWPC Secretariat
member
(Art. 121)
Powers and Functions of the Commission
projects
To act as the national consultative and

advisory body to the President of the
Philippines and Congress on matters 32
relating to wages, incomes and
productivity;
To formulate policies and guidelines on
wages, incomes and productivity
improvement at the enterprise, industry
and national levels;
To prescribe rules and guidelines for
the determination of appropriate
minimum wage and productivity
measures at the regional, provincial or
industry levels;
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;
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;
To review plans and programs of the
regional
Tripartite
Wages
and
Productivity Boards to determine
whether these are consistent with
national development plans;
To
exercise
technical
and
administrative supervision over the
Regional
Tripartite
Wages
and
Productivity Boards;
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
To exercise such powers and functions
as may be necessary to implement this
Act.
(Art. 122)
Creation of regional Tripartite Wages
and Productivity Boards
The Regional Boards shall have the
following powers and functions in their
respective territorial jurisdiction:
To develop plans, programs and
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relative to wages, incomes and productivity

improvement for their respective regions;
To determine and fix minimum wage rates
applicable in their respective regions,
provinces or industries therein and to issue
the corresponding wage orders, subject to
guidelines issued by the Commission;
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;
To coordinate with the other Regional
Boards as may be necessary to attain the
policy and intention of this Code;
To receive, process and act on applications
for exemption from prescribed wage rates
as may be provided by law or any Wage
Order; and
To exercise such other powers and
functions as may be necessary to carry out
their mandate under this Code.
Wage order
specify the region, province, or industry to
which the minimum wage rates prescribed
therein
may not be distributed for a period of 12
months from its effectivity, and no petition
for wage increase shall be entertained
within the said period
shall take effect within 15days after its
complete publication
may be appealed to the Commission by
filing a verified appeal with the Board not
later than 10 days from the date of
publication of the Order
the Commission shall decide on the
appeal within 60 days from the filing
thereof
grounds for appeal
non-conformity with prescribed
guidelines or procedures
questions of law
grave abuse of discretion
Composition:
Regional Director of DOLE Chairman
Regional Directors of NEDA vice Chair
Regional Director of DTI Vice Chair
2 members each from workers and
employers sector
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.
the Board is a tripartite body composed of

members from
government
labor
management
Wage order issued by the Regional Wage Board

without the required public hearing or consultation,
and without publication in newspapers of general
circulation should be struck down for violation of
Art, 123, LC. (Cagayan Milling Co vs Sec, of
Labor)
the wage board system is a keystone to collective

bargaining.
see RA 6727
punishment for non-compliance: fine of 25k 100k
or imprisonment of 2-4 years, or both
(Art. 123)
Wage Order
perosns convicted under RA 6727 are not entitled

to the benefits of the Probation Law.
Within 30 days after conclusion of the last hearing,

the Board shall decide on the merits of the petition,
and when appropriate, issue a wage order
establishing the minimum wage rates to be paid by
employers in the region.
Jmvdg
Double indemnity
payment to a concerned employee of the
prescribed increase or adjustment in the
33
wage rate which was not paid by an

employer in an amount equivalent to twice
the unpaid benefits owing to such
employee.
Computation starts from the effectivity of
the prescribed increases or adjustments as
indicated in the wage order
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(Art. 124)
Standards/Criteria for Minimum Wage Fixing
considerations:
The demand for living wages;
Wage adjustment vis-a-vis the consumer
price index;
The cost of living and changes or increases
therein;
The needs of workers and their families;
The need to induce industries to invest in
the countryside;
Improvements in standards of living;
The prevailing wage levels;
Fair return of the capital invested and
capacity to pay of employers;
Effects in employment generation and
family income; and
The equitable distribution of income and
wealth along the imperatives of economic
and social development.
Disputes on wage distortions shall be referred to
the NCMB which shall decide on it within 10 days
from the time said dispute has been referred to
voluntary arbitration
if it remains unresolved, the matter shall be
referred to the NLRC which shall decide on it
within 20 days from the day the case has been
referred to compulsory arbitration.
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
Jmvdg
service, or other logical bases of

differentiation.
Increase in the compensation of the lower
pay class without a corresponding raise for
high-level employees
elements:
existing hierarchy of positions with
corresponding salary rates
significant change or increase in the
salary rate of a lower pay class without
a corresponding increase in the salary
of a higher one
elimination of the distinction between
the 2 groups or classes
distortion exists in the same region of
the country.
Causes of wage distortion:
government decreed increase
merger of 2 companies
effectivity dates of wage increases
given to each of the 2 classes of
employees had not been synchronized
in their respective CBAs
settlement of wage distortion
unionized establishments
negotiate to correct the distortions
using the grievance machinery n
the CBA
non-unionized establishments
NCMB; or
NLRC
formula for distortion adjustment
minimum wage/actual salary - % x
prescribed increase = distortion
adjustment
any issue involving wage distortion shall
not be a ground for a strike or lockout
(Art. 125)
Freedom to Bargain
when an employee may be paid a higher minimum
wage:
CBA
voluntary or compulsory arbitration award
assumption of jurisdiction award
company policy or practice
productivity incentives
34
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(Art. 126)
Prohibition against injunction
purpose: for the Commission or Board to perform

its powers and functions speedily without regard to
unnecessary
interventions
which
may
tremendously affect the wage-fixing functions
necessary to maintain peace and harmony in the
working world.
(Art. 127) Nondiminution of benefits
any increase granted by the employer are over and

above any increase that may be granted by law or
a wage order.
CHAPTER VI
ADMINISTRATION AND ENFORCEMENT
(Art. 128)
Visitorial and Enforcement Power
2 complementary powers conferred upon
Secretary of DOLE
visitorial power
inspection power
access to employers' records and
premises whenever work is being
undertaking therein
right to copy therefrom
right to question any employee's right
to investigate any fact, condition or
matter which may be necessary to
determine violation of labor standards
enforcement power
power to issue compliance orders to
give effect to the labor standards
provisions of the Code
issue writs of execution to the
appropriate
authority
for
the
enforcement of their orders
order stoppage of work or suspension
of operations of any unit or department
of an establishment when noncompliance
with
the
law
or
implementing rules and regulations
poses grave and imminent danger to
the health and safety of workers in the
workplace.
Jmvdg
necessary conditions:
employer-employee
relationship
exists
findings of labor regulation officers
or industrial safety engineers were
made in the course of inspection
employer does not contest such
findings which cannot be resolved
without considering evidentiary
matters
limitations:
(the jurisdiction is vested on the NLRC)
cannot apply to those who were no
longer
employed
with
the
establishment at the time the
complaint was filed
may not be exercised where the
employer questions the findings of
the labor enforcement officers and
raises issues which cannot be
determined without taking into
consideration evidentiary matters
not verifiable in the normal course
of inspection
persons who obstructs, impedes,
delays or otherwise render ineffective
the exercise of the enforcement power
of the DOLE may be held criminally
liable under Art. 288 of the Labor Code
government employees who violate Art.
128 of the LC shall be dismissed
summarily from the service.
Appealable to Secretary of Labor within
10 days
(Art. 129)
Recovery of Wages, Simple Money Claims and
Other benefits
adjudicatory power of the Regional Director of
DOLE
claim for recovery of wages, simple money
claims, and other benefits
requisites
claim is filed by an employee or person
employed in domestic or household
service, or househelper
claim arises from employer-employee
relationship
35
claimant, no longer employees, does

not seek reinstatement
aggregate money claim does not
exceed 5k
decision appealable to the NLRC within
5 calendar days
grounds for appeal
prima facie evidence of abuse pf
discretion
order/decision was secured through
fraud, coercion, graft and corruption
pure question of law
serious errors in the findings of
fact, which if not corrected would
cause grave or irreparable damage
or injury to the appellant
3 years prescriptive period
Difference between Articles 128 and 129, LC:

Articles 128 and 129 both involve money
claims. In the former, the amount of claim is
immaterial (there is no limit) while in the latter, the
aggregate amount of the claim must not exceed
P5,000.00.
In Art. 128, it is necessary that there is still
an employer-employee relationship, in Art. 129 the
employer employee relationship is already severed
for the provision to apply.
TITLE III
WORKING CONDITIONS FOR SPECIAL
GROUPS OF EMPLOYEES
Chapter 1
Employment of Women
Sec. 14, Art. II, Constitution
Sec. 3, Art. XIII
Sec. 14, Art. XIII
RA 6725 expressly prohibits discrimination
against women with respect to terms and
conditions of employment, promotion, and training
opportunities
RA 6955
RA 7192
RA 7322
RA 7877
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RA 8042
(Art. 130-Art. 133)
Maternity Leave Under SSS Law (RA 1161)
Section 14-A. Maternity Leave Benefit. - A
covered female employee who has paid at least
three monthly maternity contributions in the twelvemonth period preceding the semester of her
childbirth, abortion, or miscarriage and who is
currently employed shall be paid a daily maternity
benefit equivalent to one hundred per cent of her
present basic salary, allowances and other benefits
or the cash equivalents of such benefits for sixty
days subject to the following conditions:
(a) That the employee shall have notified her
employer of her pregnancy and the
probable date of her childbirth which notice
shall be transmitted to the SSS in
accordance with the rules and regulations it
may provide;
(b) That the payment shall be advanced by the
employer in two equal installments within
thirty days from the filing of the maternity
leave application;
(c) That in case of caesarian delivery, the
employees shall be paid the daily maternity
benefit for seventy-eight days;
(d) That payment of daily maternity benefits
shall be a bar to the recovery of sickness
benefits provided by this Act for the same
compensable period of sixty days for the
same childbirth, abortion, or miscarriage;
(e) That the maternity benefits provided under
this section shall be paid only for the first
four deliveries after March 13, 1973;
(f) That the SSS shall immediately reimburse
the employer of one hundred per cent of
the amount of maternity benefits advanced
to the employee by the employer upon
receipt of satisfactory proof of such
payment and legality thereof; and
(g) That if an employee should give birth or
suffer abortion or miscarriage without the
required
contributions
having
been
remitted for her by her employer to the
SSS, or without the latter having been
previously notified by the employer of time
of the pregnancy, the employer shall pay to
the SSS damages equivalent to the
benefits
36
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which said employee would otherwise have

been entitled to, and the SSS shall in turn
pay such amount to the employee
concerned.
Qualifications for entitlement to maternity
benefit:
female member should be employed at the
time of delivery, miscarriage, or abortion
she must have given the required
notification to the SSS through her
employer
her employer must have paid at least 3
months of maternity contributions within
12month period immediately before the
semester of contingency
any pregnant woman whether married
unmarried is entitled to maternity leave
or
maternity benefit not included in the 13th month pay
Prohibition against nightwork:

General rule: Regardless of age, no woman shall
be employed or permitted or suffered to work, with
or without compensation:
(a) In any industrial undertaking or branch
thereof between 10:00 oclock at night and 6
oclock in the morning of the following day;
(b) In any commercial or non-industrial
undertaking or branch thereof, other than
agricultural, between midnight and 6 oclock
in the morning of the following day; or
(c) In any agricultural undertaking at
nighttime unless she is given a period of rest
of not less than nine (9) consecutive hours.
Exceptions:The nightwork prohibition shall not
apply in any of the following cases:
(a) In cases of actual or impending
emergencies caused by serious accident,
fire, flood, typhoon, earthquake, epidemic or
other disasters or calamity, to prevent loss of
life or property, or in cases of force majeure
or imminent danger to public safety;
(b) In case of urgent work to be performed
on machineries, equipment or installation, to
avoid serious loss which the employer would
otherwise suffer;
(c) Where the work is necessary to prevent
serious loss of perishable goods;
37
(d) Where the woman employee holds

a responsible position of managerial or
technical nature, or where the woman
employee has been engaged to provide
health and welfare services;
(e) Where the nature of the work
requires the manual skill and dexterity of
women workers and the same cannot
be performed with equal efficiency by
male workers;
(f) Where the women employees are
immediate members of the family
operating
the
establishment
or
undertaking; and
(g) Under other analogous cases
exempted by the Secretary of Labor and
Employment in appropriate regulations.
required facilities for women
Employers are required to:
(a) Provide seats proper for women and
permit them to use such seats when
they are free from work and during
working hours, provided they can
perform their duties in this position
without detriment to efficiency;
(b) To establish separate toilet rooms
and lavatories for men and women and
provide at least a dressing room for
women;
(c) To establish a nursery in a workplace
for the benefit of the women employees
therein; and
(d) To determine appropriate minimum
age and other standards for retirement
or termination in special occupations
such as those of flight attendants and
the like.
(Art. 134-Art. 135)
acts of discrimination under Art. 135:
discrimination in pay: Payment of a
lesser compensation, including wage,
salary or other form of remuneration
and fringe benefits, to a female
employee as against a male employee,
for work of equal value; and
discrimination
in
employment
opportunity: Favoring a male employee
over a female employee with respect to
promotion, training opportunities, study
and scholarship grant solely on
account of their sexes.
Discrimination in hiring: favoring a male
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applicant with respect to hiring where the

particular job can equally be handled by a
woman (HB 4198)
Discrimination in dismissal: favoring a male
employee with respect to dismissal of
personnel or the application of the last
in/first out principle or other retrenchment
policy of the employer.
RA 7192:
Sec. 2. Declaration of Policy. The State
recognizes the role of women in nation building and
shall ensure the fundamental equality before the
law of women and men. The State shall provide
women rights and opportunities equal to that of
men.
To attain the foregoing policy:
A substantial portion of official development
assistance funds received from foreign
governments and multilateral agencies and
organizations shall be set aside and utilized
by the agencies concerned to support
programs and activities for women;
All government departments shall ensure
that women benefit equally and participate
directly in the development programs and
projects of said department, specifically
those funded under official foreign
development assistance, to ensure the full
participation and involvement of women in
the development process; and
All government departments and agencies
shall review and revise all their regulations,
circulars, issuances and procedures to
remove gender bias therein.
(Art. 136)
Stipulation Against Marriage
stipulations against marriages assaults good

morals and public policy, tending as it is to deprive
the woman the freedom to choose her status, a
privilege that inheres in the individual as an
intangible and inalianable right. It may even be
said that such regulations would indeed encourage
illicit or common-law relatons and subvert the
sacrament of marriage (PT &T Co. vs NLRC, 272
SCRA 596)
(Art. 137)
Prohibited acts
unlawful acts against women
discharge any woman employed by him
for the purpose of preventing such
woman from enjoying the maternity
leave, facilities and other benefits
provided under the Code.
Discharge such woman on account of
her pregnancy or while on leave or in
confinement due to her pregnancy
discharge or refuse the admission of
such woman upon returning to her work
for fear that she may again be pregnant
discharge any woman or any other
employee for having filed a complaint of
having testified or being about to testify
under the Code.
Require as a condition for or
continuation of employment that a
woman employee shall not get married
or to stipulate expressly or tacitly that
upon getting married a woman
employee shall be deemed resigned or
separated or to actually dismiss,
discharge, discriminate or otherwise
prejudice a woman employee merely by
reason of her marriage.
Deny any woman the benefits of
employment or other statutory benefits
under our laws by reason of her sex,
age, ethnic origin or beliefs, or
relations,
either
by
affinity
or
consanguinity.
RA 9262: Anti-Violence Against Women
and their Children Act of 2004
State's policy:
The State values the dignity of
women
and
children
and
guarantees full respect for human
rights. The State also recognizes
the need to protect the family and
its members particularly women
and children, from violence and
threats to their personal safety and
security. (Sec. 2, RA 9262)
violence against women and their
children:
any act or series of acts committed
by any person agaisnt a woman xxx
or against her child xxx which result
in or is likely to result in physical,
sexual,
38
psycholigical harm or suffering, or

economic abuse including threats of
such acts, battery, assault, coercion,
harassment, or arbitrary deprivation of
liberty. (Sec. 3, ibid)
physical violence
acts that include bodily or physical
harm
sexual violence
rape, sexual harassment, acts of
lasciviousness, treating the woman or
her child a sex object, making
demeanung and sexually suggestive
remarks, physically attacking the
sexual parts of the victim's body,
forcingher
to
watch
obscene
publications and indecent shows or
forcing the woman or her child to do
indecent acts and/or make films
tehreof, forcing the wife or mistress to
live in the conjugal home or sleep
together in the same room with the
abuser
acts causng or attempting to cause the
victim to engage in any sexual activity
by force, threat or force, physical or
ther harm or threat of physical or other
harm of coercion
prostituting the woman or child
psychological violence
acts or omissions causing or likely to
cause mental or emotional suffering of
the victim such as but not limited to
intimudation, harassment, stalking,
damage to property, public ridicule or
humiliation, repeated verbal abuse and
mental infidelity.
economic abuse
refers to act that make or attempt to
male a woman financially dependent
withdrawal of financial support or
preventing the victim from engaging
in
any
legitimate
profession,
occupation, business or activity;
except on valid, serious, and moral
grounds under Art. 73, Family Code
deprivation or threat of deprivation
of financial resources and the right
to the use and enjoyment of the
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39
conjugal community or property owned in

common
destroying household property
controlling the victim's own money or
properties or solely controlling the conjugal
money or properties.
Battery
acts of inflicting physical harm upon the woman
or her child resulting to the physical and
psychological or emotional distress
battered woman syndrome
scientifically defined pattern of psychological
and behavioral symptoms found in women
living in battering relationship as a result of
cumulative abuse.
dating relationship
refers to a situation wherein the parties live as
husband and wife without the benefit of
marriage or are romantically involved over time
and on a continuing basis during the course of
the relationship.
acts of violence against women and their children
causing physical harm to the woman or her
child
threatening to cause the woman or her child
physical harm
attempting to cause the woman or her child
physical harm
placing the woman or her child in fear of
imminent physical harm
attempting to compel or compelling the woman
or her child to engage in conduct which the
woman or her child has the right to desist
causing or attempting to cause the woman or
her child to engage in any sexual activity which
does not constitute rape
engaging in purposeful, knowing or reckless
conduct, personally or through another, that
alarms or causes substantial distress to the
woman
causing mental or emotional anguish
(Art. 138)
AUF School of Law
Classification of Certain Women Workers

They shall be considered employees of
establishments mentioned in the article
purposes of labor and social legislation if they
under the effective control or supervision of
employer for a substantial period of time.
the
for
are
the
Chapter 2
EMPLOYMENT OF MINORS
(Art. 139)
Minimum Employable Age
General rule: employment of children below 15
years of age is prohibited
Exceptions:
when the child works directly under the
responsibility of his/her parents or legal
guardians who employ his/her family
members only
the employment does not endanger the
child's life, safety, health, and morals
the employment does not impair the
child's normal development
the employer-parent or legal guardian
provides the child with primary and/or
secondary education
when
the
child's
employment
or
participation in public entertainment is
essential
the employment does not involve
advertisements
or
commercials
promoting
alcohol,
beverages,
intoxicating drinks, tobacco and its byproducts or exhibiting violence
there is a written contract approved by
the DOLE
The employer who engages a child for
employment under the above exceptions is
required to first secure a work permit issued by
DOLE having jurisdiction over the workplace.
Absolutely prohibited employment
hazardous or deleterious in nature
one where the employee is exposed to
any risk which constitutes an imminent
danger to his safety and health
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employment of child models in all

commercial promoting alcohol, beverages,
intoxicating drinks, tobacco and its byproducts, and violence.
Rules governing the hours of work of a

working child:
below 15 y.o not more than 20 hours a
week, not more than 4 hours at any given
day; no work between 8pm to 6 am in he
morning of the following day
15-18 y.o not more than 40 hours a
week; not more than 8 hours a day; no
work between 10pm to 6am in the morning
of the following day
the wages, salaries, earnings and other income of
the working child shall belong to him/her I
ownership and shall be set aside primarily for
his/her support, education, skills acquisition and
secondarily to the collective needs of the family.
Provided that not more than 20% of the child's
income may be used for the collective needs of the
family.
A trust fund of at least 30% of the child's earnings
and other income to at least 20k shall be set up
(Art. 140)
Prohibition against Child Discrimination
There is discrimination when one is denied
privileges given to the other under identical or
similar conditions.
RA 9231:
state Policy:
It is 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
the development including child labor and its worst
forms.
State acts as a parens patriae on behalf of the
child
exempt from paying filing fees
'has the right to free legal, medical, and
psycho-social services to be provided by
the State.
40
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Minimum Cash Wage

Worst forms of labor
all forms of slavery
the use, procuring, offering or exposing of
a child for prostitution, for the production of
pornography
or
for
pornographic
performances
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
work which is hazardous or likely to be
harmful to the health, safety, or morals of
children
Chapter 3
EMPLOYMENT OF HOUSEHELPERS
(Art. 141)
Coverage
househelper any person who renders services
in and about the employer's home and which
services are unusually necessary or desirable for
the maintenance and enjoyment thereof and
include ministering to the personal comfort and
convenience of the members of the employer's
household.
(Art. 142)
Contract of Domestic Service
reiteration of Art. 1692, NCC
the law requires no formality for the execution of
an employment contract of household service.
Even if the term of the employment exceeds 1
year, the statute of frauds will not apply.
(Art. 143)
Minimum Wage
any stipulation that household service is without

compensation is void (Art. 1689, NCC)
wages of househelpers shall be paid directly to the
househelper at least once a month.
(Art. 144)
Jmvdg
the employer is mandated by law to provides

househelpers with free lodging, food, and medical
attendance (Art. 148 and 169, NCC)
services rendered shall no be more than ten hours
a day (Art. 1695, NCC)
the househelper is entitled to 4 days vacation each
month with pay.
(Art. 145)
Assignment to Non-Household Work
Househelpers may be assigned to work in a
commercial, industrial or agricultural enterprise
provided they receive a wage or salary rate
provided for agricultural and non-agricultural
workers.
(Art. 146)
Opportunity for Education
relate to Art. 1691 of the Civil Code

(Art. 147)
Treatment of Househelpers
the right to just and humane conditions of work is a

constitutionally mandated right
(Sec. 3, Art. XIII, 1987 Constitution)
the right to regular working hours
right to regular working days
right to overtime work
right to weekly rest periods
right to additional compensation on
scheduled rest day/special holiday
right to compensation for holiday work
rules if househelper dies
Funeral expenses
employer shall bear the funeral
expenses commensurate to the
standards of life of the deceased
disposition of househelper's body
the transfer or use of the body of the
househelper for purposes other than
burial is prohibited, unless so desired
by the househelper or by his guardian
41
AUF School of Law
with court approval
(Art. 148)
Board, Lodging and Medical Attendance
The medical attendance refers to medical
treatment of the injury or illness that arose out of
and in the course of employment, that is, an
ailment contracted by the househelper while he or
she is in the service of the employer.
Hospitalization is excluded from the coverage.
Prohibition against homework

explosives, fireworks or similar articles
drugs and poisons
other articles, the processing of which
requires exposure to toxic substances
(Art. 149)
Indemnity for Unjust Termination of Services
homeworker's
organization
acquire
legal
personality upon issuance of the certificate of
registration.
The 15-day salary is awarded in the form of an

indemnity due to unjust dismissal of a househelper,
hat is dismissal without just cause and notice
before the lapse of the contract term, and the
amount is in addition to and not a substitute for the
househelper's salary for the unexpired portion of
the contract.
(Art. 154)
Regulations of the Secretary of Labor
the Regional Director shall have the power to order
and administer compliance with the provisions of
law and regulations affecting the terms and
conditions of employment of homeworkers.
(Art. 150)
Service of Termination Notice
If the money claim exceeds 5k, the NLRC shall

have jurisdiction over such case.
this provision seems to be in conflict with Art. 1698

of the Civil Code. The provision of the Labor Code
shall prevail I the light of the repealing clause in
Art. 303 of the Labor Code.
(Art. 155)
Distribution of Homework
employer of homeworkers
any person, natural or artificial, who for his
account or benefit, or on behalf of any
person residing outside the country, directly
or indirectly or through any employee,
agent, contractor, subcontractor, or any
other person. The employer delivers or
sells goods, articles or materials to be
processed or fabricated in or about a home
and thereafter repurchases the finished
products.
(Art. 151-Art. 152)

Employment Certification - Employment Records
keeping of employment records is basically for the
safety and protection of the employers from
househelpers with criminal motives
Chapter 4
EMPLOYMENT OF HOMEWORKERS
(Art. 153)
Regulation of Industrial Homeworkers
Contractor or subcontractor
any person who, for the account or benefit
of an employer, delivers or causes to be
delivered to a homeworker, goods or
articles to be processed in or about his
home and thereafter to be returned,
disposed or, or distributed in accordance
industrial homework
a system of production under which work
for an employer or contractor is carried out
by a homeworker at his home.
Material may or may not be furnished by
the employer or contractor
Jmvdg
it differs for regular factory production in

that it is ia decentralized form of production
where there is ordinarily very little
supervision or regulation of methods of
work.
42
AUF School of Law
with the direction of the employer.

Immediately upon receipt of the finished goods, the
employer shall pay the homeworker or the
contractor or subcontractor, as the case may be,
for the work performed.
Jmvdg
43

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Labor and Social Legislation

AUF School of Law

Minimum requirement required by

THE LABOR CODE OF THE PHILIPPINES

conditions and benefits of employment that

full employment, a rising standard of

calculated to insure economic stability of all

Constitutional provisions related to Labor:

Art. III, Sec. 8

Labor relations defines the status, rights

o Book 5 (Labor Relations) and

Art. IX-B, Sec 2[3], [5] and [6]

social justice the aim of labor laws; raison

The right to self-organization

1st Semester/ A.Y. 2010-2011

Labor and Social Legislation

Temporary employees of the

AUF School of Law

making processes affecting their

1st Semester/ A.Y. 2010-2011

Labor and Social Legislation

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responsibility between workers and

Other related laws:

ILO International Labour Organization

1st Semester/ A.Y. 2010-2011

Labor and Social Legislation

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Darvin vs. CA and PP G.R.

1st Semester/ A.Y. 2010-2011

Labor and Social Legislation

authorized entities to recruit and place workers for

POEA: Functions and Powers

and license fee and welfare regulations.

1st Semester/ A.Y. 2010-2011

Labor and Social Legislation

AUF School of Law

the POEA blacklist)

unjust refusal to depart for the

Migrant worker anybody who is engaged, or to

The POEA has no jurisdiction to hear and decide a

The ffg. are originally functions of the

1st Semester/ A.Y. 2010-2011

Labor and Social Legislation

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Minimum employment conditions:

employment is terminated when the contract expires.

On issue of Constitutionality of Sec. 10 of RA 8042

Serrano vs Gallant Maritime

In addition to the minimum requirements, the

Upon cursory reading, the subject clause appears facially

The POEA is authorized to recruit and place

Employer's nationality immaterial

G.R. No. 110524, July 29, 2002

The statute and the relevant regulations refer to

1st Semester/ A.Y. 2010-2011

Labor and Social Legislation

AUF School of Law

affecting Filipino overseas.

overseas share the same risks and burdens whether their

An agreement that diminishes the employee's pay

name hiree those individual workers who are

Wallem Shipping Inc. vs. Ministry of Labor