PD 442, as amended, LABOR CODE OF THE PHILIPPINES

I. INTRODUCTION

Signed into law on May 1, 1974

Took effect on November 1, 1974
The Father of the Labor Code is Sen. Blas Ople.
The Labor Code is the consolidation of almost all of the existing labor laws at that time.

Concept of Labor
In its general sense, it is the exertion of human being by his mental or physical effort towards production of
goods or services.
In its technical sense, it refers to the working class or workingmen.
LABOR
- physical toil although does not
necessarily exclude the application
of skill
- skilled and unskilled labor

SKILL
- familiar knowledge of any art or
science, untied with readiness and
dexterity in execution or
performance or in the application
of the art of science to practical
purposes

WORKER
- may refer to self-employed people and those
working in the service and under the control of
another, regardless of rank, title, or nature of work

WORK
- broder than labor
- covers all forms of physical or
mental exertion, or both
combined, for the attainment of
some object other than recreation
or amusement per se

EMPLOYEE
- salaried person working for another who controls or
supervises the means, manner or method of doing the
work

Four Systems of Labor

The ff. are the 4 systems of labor:
1. Slavery
2. Serfdom
3. Free Artisan
4. Wage System
Slavery refers to the extraction of work or services from any person by means of enticement, violence,
intimidation or threat, use of force or coercion, includi ng deprivation of freedom, abuse of authority or
moral ascendancy, debt bondage or deception. (DO 65-04 S2004)
Slavery is prohibited by:
1. Section 18(2) of the Constitution - No involuntary servitude in any form shall exist except as
a punishment for a crime whereof the party shall have been duly convicted.
2. Article 272, Revised Penal Code: Slavery - The penalty of prision mayor and a fine of not
exceeding 10,000 pesos shall be imposed upon anyone who shall purch ase, sell, kidnap or
detain a human being for the purpose of enslaving him.
3. Section 4(a) of RA9208, Acts of Trafficking in Persons - It shall be unlawful for any person,
natural or juridical, to commit any of the following acts:
(a) To recruit, transport, transfer; harbor, provide, or receive a person by any mea ns,
including those done under the pretext of domestic or overseas employment or training or
apprenticeship, for the purpose of prostitution, pornography, sexua l exploitation, forced labor,
slavery, involuntary servitude or debt bondage;

Serfdom refers to a system where the worker, by customary right to his Lord, owes certain service. It is
an enforced labor of serfs on the fields of the landown ers, in return for protection and the right to
work on their leased fields.
Serfdom is prohibited by:
1. Article 274 of the RPC, Services rendered under compulsion in payment of debt . - The
penalty of arresto mayor in its maximum period to prision correccional i n its minimum period
shall be imposed upon any person who, in order to require o r enforce the payment of a debt,
shall compel the debtor to work for him, agains t his will, as household servant or farm laborer.
2. Section 12-D, RA7610 as amended - No child shall be engaged in the worst form s of child
labor. The phrase "worst forms of child labor" shall refer to any of the following: (1) All forms
of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices similar to
slavery such as sale and trafficking of children, debt bondage and serfdom and forced or
compulsory labor, including recruitment of children for use in armed conflict;
Free artisan refers to a system where a free person offers his services to others subject to nobody's
will. It is the same with modern independent contractorship wherein an independent contractor is
engaged in a business separately distinct f rom the principal, the performed job, work or service, and
works according to hi s own means and methods, free from the control and direction of the principal
except as to the results thereof.
Wage system refers to a system where a person offers his services to another und er an employment contract
for which such service is paid by wages. It is the sam e with modern employer-employee system where there
is an employee under the cont rol and supervision of an employer as to the means, manner or method of
which th e work is to be accomplished including the result thereof and is paid for the wo rk done in terms of
wage.
Only the Free Artisanship and Wage System of labor are recognized in the Philipp ines.
Three Fields of Labor Law
The ff. are the 3 fields of labor law:
1. Labor standards
2. Labor relations
3. Social or welfare legislation
Labor standards set out the minimum terms, conditions, and benefits of employment that employers must
provide or comply with and to which workers are entitled as a matter of legal right. Examples are wages and
hours of work, on safety and health of employees, employment benefits, overtime pay, etc.
Sources of labor laws in relation to labor standards
1.
2.
3.
4.
5.
6.

Constitution
Statutes primarily the labor code and other special labor laws
Supreme Court decisions
Omnibus rules issued by the DOLE
Opinions of DOLE and other labor agencies
Decisions of foreign courts where our labor statutes are based or patterned

Omnibus Rules, as amended

Omnibus rules have the force and effect of laws. Provided, however, that these r ules and issuances
will not expand the law or strip the law. Otherwise, under the rules on statutory construction, these
will be considered void.

The DOLE, being the lead agency in enforcing labor laws, is the one who promulga te these rules
pursuant to their quasi-legislative power.
Supreme Court decisions (Art. 8, Civil Code)
Article 8 NCC: Judicial decisions applying or interpreting the laws or the Const itution shall form a
part of the legal system of the Philippines.
NOTE: Decisions of administrative bodies like the NLRC do not form part of the l egal system of the
Philippines. Only SC decisions set legal precedents.
Labor relations refer to the interactions between the employers and employees or their representatives, and
the institutional mechanism by which the employments tandards are negotiated, adjusted and enforced. It
processes the terms, benefits and conditions to improve the same through collective bargaining or
negotiation. Examples are unionization, negotiation, dispute settlements.
Sources of labor laws in relation to labor relations
Primary sources:
1. Constitution
2. Statutes
3. Jurisprudence
Secondary sources:
1. Employment contract
2. Memoranda
3. Rules and Regulations
4. CBA
Labor Standards Law is the material or substance of labor law;
Labor Relations Law is the mechanism or the processes on enforcing the substance.
Social legislation are those laws that provide particular kinds of protection or benefits to society or segments
thereof in the furtherance of social justice. Examples: labor laws, agrarian reform law, law providing for
social security system.
Basis in the Enactment of Labor Laws
The ff. are the basis in the enactment of labor laws:
1. Police power
2. Social justice
3. Protection to labor clause
4. Doctrine of incorporation
Police power is the inherent power of the state to enact legislations that may interfere with personal liberty
or property in order to promote the general welfare of the people. Having a job is a property right. An
example of a labor law using police power as a basis is the provision on hours of work.
Social justice can be aptly described as those who have less in life should have more in law or giving to
someone what is due to him. An example of a labor law using social justice as a basis is the retirement law.
The protection to labor clause is enshrined in Article XIII, Section 3 of the 1987 Constitution wherein it
states,
The State shall afford full protection to labor, local and overseas, organized
and unorganized, and promote full employment an d equality of employment
opportunities for all.

An example of a labor law using the protection to labor clause as a basis is the Migrant Worker s Act.
The doctrine of incorporation is enshrined in Article II, Section 2 of the 1987 Constitution wherein it states
that, The Philippines renounces war as an instrument of national policy, adopts the generally accepted
principles of international law as part of the law of the land, and adheres to the policy of peace, equality,
justice, freedom, cooperation, and amity with all nations.

Limitations in the Enactment of Labor Laws

The ff. are the limitations in the enactment of labor laws:
1. Non-impairment of contracts clause
4. Due process clause
2. Equal protection clause
5. Other constitutional provisions
3. Prohibition against involuntary servitude
The non-impairment clause is enshrined in Article III, Section 10 of the 1987 Co nstitution that, No law
impairing the obligation of contracts shall be passed. Thu s, Congress could not pass laws which would impair
the obligations of the partie s. However, it may be impaired by the exercise of police power.
The equal protection clause is enshrined in Article III, Section 1 of the 1987 C onstitution that, No person
shall be deprived of life, liberty, or property witho ut due process of law, nor shall any person be denied the
equal protection of th e laws. The equal protection clause simply means equality among equals.
The prohibition against involuntary servitude is enshrined in Article III, Secti on 18(2) of the Constitution
that, No involuntary servitude in any form shall exi st except as a punishment for a crime whereof the party
shall have been duly con victed.
The due process clause is enshrined in Article III, Section 1 of the 1987 Consti tution that, No person shall be
deprived of life, liberty, or property without du e process of law, nor shall any person be denied the equal
protection of the law s.
Effectivity of labor laws, rules and regulation (Art. 5 of the Labor Code, Art.
2 of the Civil Code, Sec. 18 of the Administrative Code)
Article 5 Labor Code: Rules and regulations. - The Department of Labor and other government
agencies charged with the administration and enforcement of this Cod e or any of its parts shall
promulgate the necessary implementing rules and regu lations. Such rules and regulations shall
become effective fifteen (15) days aft er announcement of their adoption in newspapers of general
circulation.
Article 2, NCC: Laws shall take effect after fifteen days following the completi on of their publication
either in the Official Gazette, or in a newspaper of gen eral circulation in the Philippines, unless it is
otherwise provided. (As amende d by EO 200).
Sec. 18, Administrative Code: When Laws Take Effect. - Laws shall take effect af ter fifteen (15) days
following the completion of their publication in the Offic ial Gazette or in a newspaper of general
circulation, unless it is otherwise pro vided.
NOTE: Publication is indispensable. Rules and regulations are still valid even i f no publication,
however, it is unenforceable.

Nature and character of DOLE issuances

DOLE issuances have the force and effect of laws. Provided, however, that these rules and issuances
will not expand the law or strip the law. Otherwise, under t he rules on statutory construction, these
will be considered void.
These issuances are promulgated by DOLE in its quasi-legislative power.
Rule in the implementation and interpretation of labor laws (Art. 4 of the Labor
Code)
Article 4, Labor Code. All doubts in the implementation and interpretation of th e provisions of this Code,
including its implementing rules and regulations, sha ll be resolved in favor of labor.
It is not always correct to think that the aim of the law is always to favor lab or. The mandate under Art 4 is
simply to resolve doubt, if any, in favor of labo r. If there is no doubt in implementing and interpreting the
law, labor will enj oy no built-in advantage and the law will have to be applied as it is.
See also Art. 1700 of the Civil Code (Relation between Capital and Labor )
Article 1700, NCC. The relation between capital and labor are not merely contrac tual.They are so
impressed with public interest that labor contracts must yield to th e common good. Therefore, such
contracts are subject to the special Laws on labo r unions, collective bargaining, strikes and lockouts,
closed shop, wages, worki ng conditions, hours of labor, and similar subjects.
Labor disputes also affect the state and the public at large if employees are en gaged in strike or other
concerted activities.
Arts. 1701 (Principle of Non-Oppression) and 1702 of the Civil Code Article 1701, NCC.
Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience
of the public.
Article 1702, NCC. In case of doubt, all labor legislations and all labor contracts shall be construed in favor of
the safety and decent living of the laborer.
Labor and chattel
Labor is not a chattel nor a commodity, but human, and must be dealt with from th e standpoint of human
interest. (Asufrin vs. San Miguel Corporation, G.R. No. 156 658. March 10, 2004)
Tripartism in decision and policy making bodies of government (Art. 275, as amended by RA 10395)
Section 1 of RA 10395. Article 275 of the Labor Code is hereby amended to read a s follows:
ART. 275. Tripartism, Tripartite Conferences, and Tripartite Industrial Peace Co uncils.
(a) Tripartism in labor relations is hereby declared a State policy. Towards this end, workers and employers
shall, as far as practicable, be represented in dec ision and policy-making bodies of the government.
(b) The Secretary of Labor and Employment or his duly authorized representatives may from time to time call
a national, regional, or industrial tripartite confe rence of representatives of government, workers and
employers, and other interes t groups as the case may be, for the consideration and adoption of voluntary cod
es of principles designed to promote industrial peace based on social justice or to align labor movement
relations with established priorities in economic and s ocial development. In calling such conference, the
Secretary of Labor and Employ ment may consult with accredited representatives of workers and employers.
(c) A National Tripartite Industrial Peace Council (NTIPC) shall be established, headed by the Secretary of
Labor and Employment, with twenty (20) representativ es each from the labor and employers sectors to be
designated by the President at regular intervals. For this purpose, a sectoral nomination, selection, and recall

process shall be established by the DOLE in consultation with the sectors obs erving the most representative
organization criteria of ILO Convention No. 144.
Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level s hall also be established with
representatives from government, workers and emplo yers to serve as a continuing forum for tripartite
advisement and consultation i n aid of streamlining the role of government, empowering workers and
employers org anizations, enhancing their respective rights, attaining industrial peace, and i mproving
productivity.
The TIPCs shall have the following functions:
(1) Monitor the full implementation and compliance of concerned sectors with the provisions of all tripartite
instruments, including international conventions a nd declarations, codes of conduct, and social accords;
(2) Participate in national, regional or industry-specific tripartite conference s which the President or the
Secretary of Labor and Employment may call from time to time;
(3) Review existing labor, economic and social policies and evaluate local and i nternational developments
affecting them;
(4) Formulate, for submission to the President or to Congress, tripartite views,
recommendations and proposals on labor, economic, and social concerns, includin g the presentation of
tripartite positions on relevant bills pending in Congress ;
(5) Advise the Secretary of Labor and Employment in the formulation or implement ation of policies and
legislation affecting labor and employment;
(6) Serve as a communication channel and a mechanism for undertaking joint progr ams among government,
workers, employers and their organizations toward enhancin g labor-management relations; and
(7) Adopt its own program of activities and rules, consistent with development o bjectives.
All TIPCs shall be an integral part of the organizational structure of the NTIPC .
The operations of all TIPCs shall be funded from the regular budget of the DOLE.
Tripartism refers to the representation of workers and employers sectors in deci sion and policy making
bodies of the government. Through tripartism, workers and employers on the one hand, representing their
respective interests, and the government on the other hand, representing the interest of the public, help
shape labor, social and economic policies and programs of the government.
Tripartism is in place in government agencies like the National Labor Relations Commission (NLRC), Employees
Compensation Commission (ECC), National Wages and P roductivity Commission (NWPC), Technical Education
and Skill Development Authori ty (TESDA), Social Security System (SSS), Government Service Insurance System
(G SIS), Philippine Overseas Employment Administration (POEA), Overseas Workers Welf are Administration
(OWWA) and Pag-ibig Home Development Funds (Pag-ibig).
Creation of National Tripartite Industrial Peace Council and Tripartite Industri al Peace Council at the regional
or industry level (see DOLE DO No. 140-14, S. 2 014 published on Oct. 26, 2014) See DOLE DO No. 140-14, S.
2014

Constitutional Rights of Workers

Article XIII, Section 3 of the Constitution. The State shall afford full protect ion to labor, local and overseas,
organized and unorganized, and promote full em ployment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective ba rgaining and negotiations, and
peaceful concerted activities, including the righ t 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 p olicy and
decision-making processes affecting their rights and benefits as may b e provided by law.
The State shall promote the principle of shared responsibility between workers a nd employers and the
preferential use of voluntary modes in settling disputes, i ncluding conciliation, and shall enforce their mutual
compliance therewith to fo ster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its
just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
In relation to Labor Standards:
1. Security of tenure
2. Humane working conditions
3. Livable wage
4. Just share in the fruits of
production

In relation to Labor Relations:

Constitutional rights of Employers
1. Organize
1. Right to ROI
2. Conduct CBA
2. Expansion and growth
3. Engage in peaceful concerted
activities, including strike in
accordance with law
4. Participate in policy-making and
decision making processes
affecting their rights and benefits
as may be provided

Statutory Rights of Workers

Security of tenure
-Workers cannot be dismissed without just and authorized causes
-Workers shall be made regular after 6 months probation unless a different perio d is agreed upon by the
worker and the employee
Hours of work
-Normal working hours of eight hours a day
-Meal and rest period: meal break of less than one hour shall be considered comp ensable working time
Wage and wage related benefits
-Minimum Wage
-Holiday Pay : one day for every regular holiday even if unworked subject to certa
in conditions
-Premium pay for work within 8 hours on:
-Special Rest Day - 30% of the basic daily rate
-Rest Day falling on a Special Day - plus 50%
-Rest day falling on a Regular Holiday - plus 30% of the 200% of the basic daily rate
Overtime pay
-Ordinary days: 25% of the basic hourly rate
-Special/rest/holiday: 30% of the regular hourly rate on said days
Night shift differential pay
-10% of the basic or regular rate between 10pm and 6am
Service incentive leave

-5 days with pay per year after one year of service

Service charges
-85 % (distribution to rank and file employees); 15% (losses, breakages, distrib ution to managerial employees)
Separation pay
-12 month pay for every year of service for authorized causes of separation 13th month pay
-1/12 of the total basic salary earned within the calendar year
Payment of wages
-Shall be paid in cash, legal tender, at
-May be made through a bank upon written establishments with 25 or more employees
-Shall be made direct to the employees
-Shall be given not less than once every not exceeding 16 days or near the place of work petition of majority
of the workers in and within one kilometer radius to a ba nk 2 weeks or twice within a month at inte rvals
-Proper illumination and ventilation, fire exits and extinguishers, occupational health personnel services,
family welfare or family planning services at the wo rkplace
Employment of Young Workers
-Minimum employable age is 15 age
-A worker below 15 should be directly under the sole responsibility of parents o r guardians; work does not
interfere with child s schooling and normal development
-No person below eighteen can be employed in hazardous or deleterious undertaking
Self-organization and collective bargaining
-Employees can form organizations such as union and welfare committees
-An employee can join a union on the very first day of his employment
-Collective Bargaining a contract between workers and employers on terms and cond itions of employment
which are OVER and ABOVE those mandated by law
Labor education through seminars, dialogues, and information, education and communication materials
Peaceful concerted activities in accordance with law
Participation in policy and decision-making processes affecting their rights and benefits
Free access to the courts and quasi-judicial bodies and speedy disposition of th eir cases
ECC benefits for work-related contingencies
-medical benefits for sickness and injuries
-disability benefits
-rehabilitation
-death and funeral
SSS Benefits
-maternity
-sickness
-disability
-retirement
-death
Labor-only contracting is prohibited and the person acting as contractor is mere ly an agent of the employer
Preference of workers money claims over government and other creditors in case o f bankruptcy or liquidation
of businessSafe and healthful conditions of work and welfare services

II. EMPLOYER EMPLOYEE RELATIONSHIP

Concept of Employer-Employee
An employer-employee relationship is the same as the wage system of labor where a person
offers his services to another under an employment contract for which s uch service is paid by
wages. The employee is under the control and supervision of an employer as to the means,
manner or method of which the work is to be accomplished including the result thereof and is
paid for the work done in terms of wage.
It is important to determine if an employer-employee relationship exists to determine jurisdiction of
labor tribunals.
ART. 97

ART. 212

EMPLOYER

- Includes any person acting directly or

indirectly in the interest of an employer in
relation to an employee and shall include the
government, all its branches and subdivisions
and instrumentalities, GOCCs and
institutions, as well as non-profit private
organizations

- Includes any person acting in the interest

of an employer directly or indirectly
- Is not any labor organization, or any of its
officers or agents except when acting as an
employer

EMPLOYEE

- Any individual employed by employer

- Any person in the employ of employer's

- Shall not be limited to employees of
particular employer unless the Code says so
- Includes any individual whose work has
ceased as a result of or in connection with
any current labor dispute or because of any
other substantially equivalent and regular
employment

Four-fold test in Determining Employer-Employee Relationship

The four-fold test are:
1. Selection and engagement of employees ;
2. Payment of wages ;
3. Power of dismissal ;
4. Power of control over employee's conduct and over the means and methods by whic h the work is to
be accomplished .
In the absence of power to control the ee with respect to the means and methods by
which his work was to be accomplised, THERE IS NO Er-Ee RELATIONSHIP.
Two-Tiered Test in Determining Employer-Employee Relationship
The two-tiered test are:
1. Power of control over employee s conduct and over the means and methods by whi ch the work is to
be accomplished ;
2. The underlying economic realities of the activity or relationship such that t he employee is
economically dependent for his continued employment to the employ er
The ff. are the indications that an employee is economically dependent:
1. Number of years in the company
2. Reported to SSS, good indicator of treating him as an employee.
3. Registered in the payroll
4. Identification card
5. Company uniform

Principal and Agent

Art 1868 NCC: By the contract of agency, a person binds himself to render some
service or to do something in representation or on behalf of another, with the co
nsent or authority of the latter .
It is the principal who selects the agent. An agent is compensated under the con tract of agency of services
rendered. He is disciplined by the principal as in t he case of an employee because the agent is under the
authority of the principal . The principal controls the means and methods of the work of an agent. In this
relationship, there is only one party. The agent is merely an extension of the principal. They are regarded as
one. So if there is a contractor relationship, it is not among three parties but is between the principal/agent
and the other par ty. Thus, to make a distinction between a principal-agent and employer-employee, the fourfold test will not be used because the agent is selected by the princi pal and is also compensated by the
principal and most oftentimes, the principal substitutes his own judgment for that of the agent.
Principal and Individual Independent Contractor (Free Artisan)
An individual contractor or free artisan carries a distinct and independent busi ness and undertakes to
perform the job, work, or service on its own account and under its own responsibility, according to its own
manner and method and free fr om the control and direction of the principal in all matters connected with
the performance of the work except as to the results thereof.
Chief characteristics of employee
Economic Dependence
Employee cannot bargain the terms and conditions of employment.
Subordination in Work Relation
Employer exercises control not only the means and methods but also the results thereof.

III. POWER TO HIRE

Strictly speaking, the employer has no right to hire a person as his employee. T he matter of
selecting a person as one s employee is more appropriately described as a prerogative. It is not
a right in which you can go to court and enforce the right to hire a person, otherwise it will
violate the constitutional provision against involuntary servitude, if one is compelled to be
another s employee. No pe rson can be compelled against his will to do an act whether legal or
illegal. Th us, an employer cannot go to court and get an injunction to compel a person to
become his employee. If at all, the employee can only exercise the prerogative to invite that
person and to hire him if he so desires. In that sense, the right t o hire is essentially a
management prerogative.
Legal limitations/prohibitions prior to hiring
(a) Labor Code Arts. 134, 137, and 259 (b)
Art. 136. Prohibition Against Stipulation of Marriage . It shall be unlawful for an employer to require as a
condition of employment or continuation of employment that a woman employee shall not get married or to
sti pulate expressly or tacitly that upon getting married, a woman employee shall be deemed separated, or to
actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her
marriage.
Art.137. Minimum Employable Age . a) No child below fifteen (15) years of age shall be employed, except
when he wo rks directly under the sole responsibility of his parents or guardian, and his e mployment does not
in any way interfere with his schooling. b) Any person between fifteen (15) and eighteen (18) yeas of age may
be employed for such number of hours and such periods of the day as determined by the Secre tary of Labor
and Employment in appropriate regulations. c) The foregoing provisions shall in no case allow the employment
of a person be low eighteen (18) years of age in an undertaking which is hazardous or deleterio us in nature as
determined by the Sec. of Labor.
Art. 138. Prohibition against child discrimination. No employer shall discriminate against any person in
respect to terms and conditions of employment on account of his age.
Art. 248. Unfair Labor Practices of Employers
It shall be unlawful for an employer to commit any of the following unfair labor
practice:
(b) To require as a condition of employment that a person or an employee shall n ot join a labor
organization or shall withdraw from one to which he belongs
Art. 254. Right of employees in the public service. Employees of government corporations established under
the Corporation Code shall have the right to organize and to bargain collectively with their respective
employers. All other employees in the civil service shall have the right to form associations for purposes not
contrary to law. (As amended by Executive Order No. 111, December 24, 1986)
(b) Special Laws:
Secs. 12 and 14, RA 7610, as amended by RA 7658 and RA 9231 (worst forms of chil d labor), DO No. 6504, S. 2004
RA 9231, Section 2. Section 12 of the same Act, as amended, is hereby further am ended to read as follows:
"Sec. 12. Employment of Children - Children below fifteen (15) years of age shal l not be employed except:
"1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where
only members of his/her family are employed: Provid ed, however, That his/her employment neither
endangers his/her life, safety, hea lth, and morals, nor impairs his/her normal development: Provided,
further, That the parent or legal guardian shall provide the said child with the prescribed p rimary and/or
secondary education; or
"2) Where a child's employment or participation in public entertainment or infor mation through cinema,

theater, radio, television or other forms of media is ess ential: Provided, That the employment contract is
concluded by the child's paren ts or legal guardian, with the express agreement of the child concerned, if
possible, and the approval of the Department of Labor and Employment: Provided, furt her, That the following
requirements in all instances are strictly complied with :
"(a) The employer shall ensure the protection, health, safety, morals and normal development
of the child;
"(b) The employer shall institute measures to prevent the child's exploitation o r discrimination
taking into account the system and level of remuneration, and t he duration and arrangement
of working time; and
"(c) The employer shall formulate and implement, subject to the approval and sup ervision of
competent authorities, a continuing program for training and skills acquisition of the child.
"In the above-exceptional cases where any such child may be employed, the employ er shall first secure,
before engaging such child, a work permit from the Depart ment of Labor and Employment which shall ensure
observance of the above requirem ents.
"For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age."
Section 5. Amending Sec. 14 Prohibition on the employment of children in certain advertisements. No child
shall be employed as a model in any advertisement, directly or indirectly, promoting alcoholic beverages,
intoxicating drinks, tobacco and its by-products, gambling or any form of violence or pornography.
Section 3. The same Act, as amended, is hereby further amended by adding new sec tions to be denominated
as Sections 12-A, 12-B, 12-C, and 12-D to read as follow s:
"Sec. 12-A. Hours of Work of a Working Child. - Under the exceptions provided in Section 12 of this Act, as
amended:
"(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a
week: Provided, That the work shall not be more than f our (4) hours at any given day;
"(2) A child fifteen (15) years of age but below eighteen (18) shall not be allo wed to work for more than eight
(8) hours a day, and in no case beyond forty (40 ) hours a week;"(3) No child below fifteen (15) years of age
shall be allowed to work between e ight o'clock in the evening and six o'clock in the morning of the following
day and no child fifteen (15) years of age but below eighteen (18) shall be allowed to work between ten
o'clock in the evening and six o'clock in the morning of the following day."
"Sec. 12-B. Ownership, Usage and Administration of the Working Child's Income. - The wages, salaries,
earnings and other income of the working child shall belon g to him/her in ownership and shall be set aside
primarily for his/her support, education or skills acquisition and secondarily to the collective needs of the
family: Provided, That not more than twenty percent (20%) of the child's income m ay be used for the
collective needs of the family. "The income of the working child and/or the property acquired through the
work o f the child shall be administered by both parents. In the absence or incapacity of either of the parents,
the other parent shall administer the same. In case bo th parents are absent or incapacitated, the order of
preference on parental auth ority as provided for under the Family Code shall apply.
"Sec. 12-C. Trust Fund to Preserve Part of the Working Child's Income. - The par ent or legal guardian of a
working child below eighteen (18) years of age shall set up a trust fund for at least thirty percent (30%) of the
earnings of the chi ld whose wages and salaries from work and other income amount to at least two hu ndred
thousand pesos (P200,000.00) annually, for which he/she shall render a sem i-annual accounting of the fund to
the Department of Labor and Employment, in co mpliance with the provisions of this Act. The child shall have
full control over the trust fund upon reaching the age of majority.
"Sec. 12-D. Prohibition Against Worst Forms of Child Labor. - No child shall be engaged in the worst forms of
child labor. The phrase "worst forms of child labo r" shall refer to any of the following:
"(1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices similar to
slavery such as sale and trafficking of child ren, debt bondage and serfdom and forced or compulsory labor,
including recruitm ent of children for use in armed conflict; or
"(2) The use, procuring, offering or exposing of a child for prostitution, for t he production of pornography or

for pornographic performances; or

"(3) The use, procuring or offering of a child for illegal or illicit activities , including the production and
trafficking of dangerous drugs and volatile subst ances prohibited under existing laws; or
"(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be
harmful to the health, safety or morals of children , such that it:
"a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
"b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically
or may prejudice morals; or
"c) Is performed underground, underwater or at dangerous heights; or
"d) Involves the use of dangerous machinery, equipment and tools such as power-d riven or explosive poweractuated tools; or
"e) Exposes the child to physical danger such as, but not limited to the dangero us feats of balancing, physical
strength or contortion, or which requires the ma nual transport of heavy loads; or
"f) Is performed in an unhealthy environment exposing the child to hazardous wor king conditions, elements,
substances, co-agents or processes involving ionizing , radiation, fire, flammable substances, noxious
components and the like, or to extreme temperatures, noise levels, or vibrations; or
"g) Is performed under particularly difficult conditions; or
"h) Exposes the child to biological agents such as bacteria, fungi, viruses, pro tozoans, nematodes and other
parasites; or"i) Involves the manufacture or handling of explosives and other pyrotechnic pro ducts."
RA 7877 (Anti-Sexual Harassment Act)
Sec. 3. Work, Education or Training-related Sexual Harassment Defined. Work, edu cation or training-related
sexual harassment is committed by an employee, manage r, supervisor, agent of the employer, teacher,
instructor, professor, coach, tra iner, or any other person who, having authority, influence or moral
ascendancy o ver another in a work or training or education environment, demands, requests or otherwise
requires any sexual favor from the other, regardless of whether the d emand, request or requirement for
submission is accepted by the object of said A ct.
(a) In a work-related or employment environment, sexual harassment is committed when:
(1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued
employment of said individual, or in granting said in dividual favorable compensation, terms, conditions,
promotions, or privileges; o r the refusal to grant the sexual favor results in limiting, segregating or clas
sifying the employee which in a way would discriminate, deprive or diminish empl oyment opportunities or
otherwise adversely affect said employee;
(2) The above acts would impair the employee s rights or privileges under existing labor laws; or
(3) The above acts would result in an intimidating, hostile, or offensive enviro nment for the employee.
Sec. 35, RA 8504 (Phil. Aids Prevention and Control Act of 1998)
SECTION 35. Discrimination in the Workplace - Discrimination in any from pre-emp loyment to postemployment, including hiring, promotion or assignment, based on the actual, perceived or suspected HIV
status of an individual is prohibited. Te rmination from work on the sole basis of actual, perceived or
suspected HIV stat us is deemed unlawful.
RA 9208 (Anti-Trafficking in Persons Act of 2003; Forced Labor)
Sec. 3(f). Forced labor and slavery- extraction of work or services from any person by means of enticement,
violence, intimidation or threat, use of force or coercion, including deprivation of freedom, abuse of
authority or moral ascendancy or deception, debt bondage;
Sec. 4. Acts of Trafficking in Persons. - It shall be unlawful for any person, n atural or juridical, to commit any
of the following acts:
(a) To recruit, transport, transfer; harbor, provide, or receive a person by any means, including those done
under the pretext of domestic or overseas employmen t or training or apprenticeship, for the purpose of
prostitution, pornography, s exual exploitation, forced labor, slavery, involuntary servitude or debt bondage ;
(b) To introduce or match for money, profit, or material, economic or other cons ideration, any person or, as
provided for under Republic Act No. 6955, any Filip ino woman to a foreign national, for marriage for the
purpose of acquiring, buyi ng, offering, selling or trading him/her to engage in prostitution, pornography,
sexual exploitation, forced labor, slavery, involuntary servitude or debt bonda ge;

Sec. 32, Title 3, Chap. 1, RA 7277 (Magna Carta for Disabled Person)
Sec. 4(l). QUALIFIED INDIVIDUAL WITH DISABILITY shall mean any individual with a disability who, with or
without reasonable accommodations, can perform essential functions of the employment position that such
individual holds or desires. However, consideration shall be given to the employers judgment as to what
functions of the job are essential and if an employer has prepared a written description before advertising or
interviewing the applicant for the job, his description shall be considered evidence of the essential functions
of the job.
Sec. 32. Discrimination on Employment. No entity, public or private, should disc riminate against qualified
disabled person in terms of job application procedure s, hiring, promotion, discharge, compensation and other
benefits.
Sec. 55.4, RA 8791 (Gen. Banking Laws of 2000)
Sec. 55.4. No bank shall employ casual or non-regular personnel or too lengthy p robationary personnel in the
conduct of its business involving deposits.
RA 10354, Sec. 23 (c) (Responsible Parenthood and Reproductive Health Act of 201 2)
Sec 23: Prohibited Acts, (c) Any employer who shall suggest, require, unduly inf luence or cause any applicant
for employment or an employee to submit himself/he rself to sterilization, use any modern methods of family
planning, or not use su ch methods as a condition for employment, continued employment, promotion or the
provision of employment benefits. Further, pregnancy or the number of children shall not be a ground for nonhiring or termination from employment.

Art. 1703, Civil Code (Involuntary Servitude)

(c) Others
Art. 1703. No contract which practically amounts to involuntary servitude, under any guise whatsoever, shall
be valid.
Revised Penal Code, Art. 272 (Slavery), Art. 273 (Exploitation of Child Labor), Art. 274 (Services Rendered
under Compulsion in Payment of Debts), Art. 278 (Exp loitation of Minors)
Art. 272. Slavery. The penalty of prision mayor and a fine of not exceeding 10,0 00 pesos shall be imposed
upon anyone who shall purchase, sell, kidnap or detain a human being for the purpose of enslaving him. If the
crime be committed for t he purpose of assigning the offended party to some immoral traffic, the penalty
shall be imposed in its maximum period.
Art. 273. Exploitation of child labor. The penalty of prision correcional minimum and medium periods and a
fine not exceeding 500 pesos upon anyone who, under the pretext of reimbursing himself of a debt incurred
by an ascendant, guardian or person entrusted with the custody of against the latter's will, retain him in his
service.
Art. 274. Services rendered under compulsion in payment of debt. The penalty of arresto mayor in its
maximum period to prision correccional in its minimum perio d shall be imposed upon any person who, in
order to require or enforce the payme nt of a debt, shall compel the debtor to work for him, against his will,
as household servant or farm laborer.
Art. 278. Exploitation of minors. The penalty of prision correccional in its min imum and medium periods and
a fine not exceeding 500 pesos shall be imposed upon :
a) Any person who shall cause any boy or girl under sixteen years of age to perf orm any dangerous feat of
balancing, physical strength, or contortion;
b) Any person who, being an acrobat, gymnast, rope-walker, diver, wild-animal ta mer or circus manager or
engaged in a similar calling, shall employ in exhibitio ns of these kinds children under sixteen years of age

who are not his children o r descendants;

c) Any person engaged in any of the callings enumerated in the next paragraph pr eceding who shall employ
any descendant of his under twelve years of age in such dangerous exhibitions;
d) Any ascendant, guardian, teacher or person entrusted in any capacity with th e care of a child under
sixteen years of age, who shall deliver such child gratui tously to any person following any of the callings
enumerated in paragraph 2 her eof, or to any habitual vagrant or beggar. If the delivery shall have been made
in consideration of any price, compensation , or promise, the penalty shall in every case be imposed in its
maximum period. In either case, the guardian or curator convicted shall also be removed from off ice as
guardian or curator; and in the case of the parents of the child, they ma y be deprived, temporarily or
perpetually, in the discretion of the court, of th eir parental authority.
e) Any person who shall induce any child under sixteen years of age to abandon t he home of its ascendants,
guardians, curators, or teachers to follow any person engaged in any of the callings mentioned in paragraph 2
hereof, or to accompany any habitual vagrant or beggar.
Employment in Hazardous Workplaces (DO No. 4, S. 1999, DOLE Memo. Cir. 2, S. 199 8, and DO No. 65-04
S. 2004)
DO No. 4, S. 1999.
SECTION 3. Coverage. - The following work and activities are hereby declared haz ardous to persons below 18
years of age without prejudice to Section 14, Article VIII of Republic Act No. 7610; to DOLE Memorandum
Circular No. 2, Series of 199 8 (Technical Guidelines for Classifying Hazardous and Non-Hazardous
Establishments, Workplaces and Work Processes) and to other work and activities that may sub sequently be
declared as such:
1. Work which exposes children to physical, psychological or sexual abuse, such as in:
-lewd shows (stripteasers, burlesque dancers, and the like)
-cabarets
-bars (KTV, karaoke bars)
-dance halls
-bath houses and massage clinics
-escort service
-gambling halls and places
2. Work underground, under water, at dangerous heights or at unguarded heights o f two meters and above, or
in confined places, such as in:
-mining
-deep sea fishing/diving
-installing and repairing of telephone, telegraph and electrical lines; cable fi tters
-painting buildings
-window cleaning
-fruit picking involving climbing
3. Work with dangerous machinery, equipment and tools, or which involves manual handling or transport of
heavy loads, such as in:
-logging
-construction
-quarrying
-operating agricultural machinery in mechanized farming
-metal work and welding
-driving or operating heavy equipment such as payloaders, backhoes, bulldozers, cranes, pile driving
equipment, trailers, road rollers, tractor lifting applianc es scaffold winches, hoists, excavators and
loading machines
-operating or setting motor-driven machines such as saws, presses, and wood -wor king machines
-operating power-driven tools such as drills and jack hammers
-stevedoring
-working in airport hangars
-working in warehouses
-working in docks
4. Work in unhealthy environment which may expose children to hazardous processe s, to temperatures, noise
levels or vibrations damaging to their health, to toxi c, corrosive, poisonous, noxious, explosive, flammable
and combustible substance s or composites, to harmful biological agents, or to other dangerous chemicals

including pharmaceuticals, such as in:-manufacture or handling of pyrotechnics

-tanning
-pesticide spraying
-blacksmithing, hammersmiths, forging
-extracting lard and oil
-tiling and greasing of heavy machinery
-fiber and plastic preparing
-bleaching, dyeing, and finishing of textiles using chemicals
-embalming and as undertakers
-painting and as finishers in metal craft industries
-applying of adhesive/solvent in footwear, handicraft, and woodwork industries
-rewing and distilling of alcoholic beverages
-recycling of batteries and containers or materials used or contaminated with ch emicals
-working in abattoirs or slaughterhouses
-garbage collecting
-handling of animal manure in poultry houses or as fertilizers (compost and othe r decaying matter
included) in farming
-working in hospitals or other health care facilities
-assisting in laboratories and x-ray work
-welding
-working in furnaces and kilns
-working in discotheques
-working in video arcades
5. Work under particularly difficult conditions such as work for long hours or d uring the night, or work where
the child is unreasonably confined to the premise s of the employer.
DOLE Memo. Cir. No. 2, S. 1998.
Section 3. Criteria for Classifying Hazardous Establishments or Workplaces. An e stablishment or workplace
may be classified as hazardous if any of the condition s provided under Rule 1013 of the OSHS has been
confirmed, as follows:
a) Where the nature of the work exposes the workers to dangerous environmental e lements, contaminants or
work conditions including ionizing radiation, chemicals , fire, flammable substances, noxious components and
the like;
b) Where the workers are engaged in construction work logging, fire fighting, mi ning, quarrying, blasting,
stevedoring, dock work, deep-sea fishing and mechaniz ed farming;
c) Where the workers are engaged in the manufacture or handling of explosives an d other pyrotechnics
products;
d) Where the workers use or are exposed to power-driven or explosive powder actu ated tools; and
e) Where the workers are exposed to biologic agents like bacteria, fungi, viruse s, protozoa, nematodes and
other parasites.
Section 4. Criteria for Classifying Hazardous Processes, Activities or Operation s. The following processes,
activities or operations may be classified as hazard ous:
a) Manufacture or handling of hazardous materials or substances, including explo sives and pyrotechnic
products; liquefied petroleum gas (LPG) and petrochemical products; toxic or corrosive chemicals or mixtures
or combination thereof; ferti lizers and pesticides (particularly those banned or restricted pursuant to FPA
Circular No. 04, Series of 1989); radioactive isotopes, substances, or materials , highly flammable and toxic
gases; flammable and combustible liquids (e.g., pai nts, thinners, alcohol); glass and other similar products;
combustible metals (e .g., magnesium, titanium) in large quantities; asbestos and other similar produc ts.
b) Hazardous work processes or operations, including productions of chemicals w hich may expose workers to
harmful levels of such chemicals; machining, hot welding and cutting operations; mining, quarrying, drilling,
blasting and other rela ted operations; construction and demolition works as defined by DOLE; logging an d
woodworking operations involving the use of power tools; metal milling, fabric ation, forming, cutting and
other similar processes; operations involving the u se of thermal equipment such as furnaces and induction
heaters used in the manuf acture of plastics or metal products; operation or use of pressurized equipment
or tools with operating pressures of 15 psig. or higher; and operations involv ing work in confined spaces
where there is probability of workers being exposed to oxygen-deficient, toxic or explosive atmosphere.

Section 5. Criteria for Classifying Exposure to Environmental Elements as Hazard ous. The following degrees or
types of exposure to particular environmental elem ents may be classified as hazardous:
a) Exposure to airborne contaminants, if the nature of regular or normal work pr ocess exposes an employee
to conditions over normal levels of intake of or expos ure to airborne contaminants, as provided for in Table 8
Threshold Limit Values for Airborne Contaminants of the OSHS;
b) Exposure to biologic agents in accordance with varying occupational condition s, taking into account the
biologic hazards to employees in terms of direct expo sure; the risk from prolonged or repeated exposure; and
the concentration level or dose of exposure;
c) Exposure or risk of exposure to ionizing radiation in doses exceeding 1 milli sievert per year
(mSv/yr.) or 100 milliRem per year (mRem/yr.) of ionizing radiation shall be cla ssified as hazardous (e.g.,
processes that involve the use of x-ray equipment an d other similar radiation sources);
d) Exposure to fields of radio-frequency (RF) and microwave (MW) radiation with power densities equal to or
greater than 5 milliwart per square centimeter (mW/c m 2) or an average specific absorption rate equal to 4
W/kg. or greater (e.g., i mmediate vicinity of radio and television transmission towers and antennas);
e) Exposure to infra-red radiation in doses of at least 10 mW/cm2 for more than five (5) minutes, such
workplace is considered hazardous (e.g., operations invo lving the use of infra-red light sources for the
protection of photosensitive ma terials and processes);
f) Exposure to ultraviolet (UV) radiation at an energy level of at least 6.0 mJ/ cm 2 (millijoule per square
centimeter) and wavelength above 300 nm. (nanometers ), or where the workers eyes are exposed to UV
radiation at an energy level og 4. 0 mJ/cm 2 (e.g., processes which involve the use of UV light in order to
enhanc e contrast as in fine embroidery work); and
g) Exposure to visible light radiation with a dose of 10 mJ/cm 2 (e.g., high int ensity lasers; activities such as
filming or shooting which employ the use of hi gh capacity lamps or light sources).
Section 6. Criteria for Classifying the Use of or Exposure to Power-Driven and S imilar Tools. The use of or
exposure to power-driven, pressure-driven or explosi ve powder-actuated tools may be classified as
hazardous, subject to the following conditions:
a) The presence of power tools in certain areas of an establishment shall not wa rrant automatic
classification of the entire establishment as hazardous. Such cl assification may be justified when the
normal operation of the tools has the pot ential of at least causing a disabling injury, or when the
tools are used in the course of regular operation or part of the regular production process. An
operation shall be considered regular if it is performed for the purpose of c ompleting a normal
production cycle;
b) An establishment or workplace using a power tool as part of regular processes or operations may be
considered as hazardous:
i. If the power tool has an exposed moving, cutting, shearing, boring, drilling , or sharp edge
and is capable of causing any form of disabling injury during it s normal operation;
ii. If it has heated or heat-producing parts which can come into contact with an employee's
body and has enough heat to cause at least first degree burns;
iii. If it has an exposed reciprocating, moving or percussion-actuated part bet ween which any
part of an employee s body may get caught, thereby causing any form of disabling injury.
iv. If it generates noise equal to or above the permissible noise level under Ru le 1074 of the
OSHS.
v. If it normally emits any airborne contaminant above the prescribed Threshold Limit Value
(TLV) of the OSHS.
vi. Where there is a strong possibility of contact with any energized part with a potential
difference of at least 50 volts AC or DC during the normal operation s of the tool;
vii. Where the part of the tool in contact with the worker s hand or body produces significant
vibrations; and
viii. If the tool is not provided with suitable and effective safety control mec hanism.
DO 65-04, S. 2004
SECTION 5. Prohibition on the Employment of Children in Worst Forms of Child Lab or No child shall be
engaged in the worst forms of child labor. The phrase worst forms of child labor shall refer to any of the
following:
(d) Work which, by its nature or the circumstances in which it is carried out, i s hazardous or likely to be

harmful to the health, safety or morals of children, such that it:

i. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
ii. Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful
psychologically or may prejudice morals; or
iii. Is performed underground, underwater or at dangerous heights; or
iv. Involves the use of dangerous machinery, equipment and tools such as power-d riven or explosive
power-actuated tools; or
v. Exposes the child to physical danger such as, but not limited to the dangerou s feats of balancing,
physical strength or contortion, or which requires the man ual transport of heavy loads; or
vi. Is performed in an unhealthy environment exposing the child to hazardous wor king conditions,
elements, substances, co-agents or processes involving ionizing , radiation, fire, flammable
substances, noxious components and the like, or to extreme temperatures, noise levels or vibrations;
or
vii. Is performed under particularly difficult conditions; or
viii. Exposes the child to biological agents such as bacteria, fungi, viruses, p rotozoa, nematodes and
other parasites; or
ix. Involves the manufacture or handling of explosives and other pyrotechnic pro ducts.
Compulsory Hiring of Employees
In relation with the Labor Code:
Art. 156. First-aid treatment. Every employer shall keep in his establishment such first-aid medicines and
equipment as the nature and conditions of work may require, in accordance with such regulations as the
Department of Labor and Employment shall prescribe. The employer shall take steps for the training of a
sufficient number of employees in first-aid treatment.
Art. 157. Emergency medical and dental services. It shall be the duty of every employer to furnish his
employees in any locality with free medical and dental attendance and facilities consisting of:
The services of a full-time registered nurse when the number of employees exceeds fifty (50) but not more
than two hundred (200) except when the employer does not maintain hazardous workplaces, in which case,
the services of a graduate first-aider shall be provided for the protection of workers, where no registered
nurse is available. The Secretary of Labor and Employment shall provide by appropriate regulations, the
services that shall be required where the number of employees does not exceed fifty (50) and shall determine
by appropriate order, hazardous workplaces for purposes of this Article;
The services of a full-time registered nurse, a part-time physician and dentist, and an emergency clinic, when
the number of employees exceeds two hundred (200) but not more than three hundred (300); and
The services of a full-time physician, dentist and a full-time registered nurse as well as a dental clinic and an
infirmary or emergency hospital with one bed capacity for every one hundred (100) employees when the
number of employees exceeds three hundred (300).
In cases of hazardous workplaces, no employer shall engage the services of a physician or a dentist who
cannot stay in the premises of the establishment for at least two (2) hours, in the case of those engaged on
part-time basis, and not less than eight (8) hours, in the case of those employed on full-time basis. Where the
undertaking is non-hazardous in nature, the physician and dentist may be engaged on retainer basis, subject
to such regulations as the Secretary of Labor and Employment may prescribe to insure immediate availability
of medical and dental treatment and attendance in case of emergency. (As amended by Presidential Decree
NO. 570-A, Section 26)
(a) RA 7920, Sec. 33 (b), Art. IV (New Electrical Engine ering Law)
SEC. 33. Personnel Required. Except as otherwise provided in this Act, every ele ctric plant, industrial plant or
factory, commercial establishment, institutiona l building, watercraft, electric locomotive or in any other
installation where p ersons and properties are exposed to electrical hazards shall not have less than the
following complement of professional electrical engineer, registered electr ical engineer, and registered

master electrician:
(b) Industrial plants or factories, commercial establishments, or institutional buildings having a connected kVA
load of any size and employing voltages of any standard rating -one (1) professional electrical engineer or one
(1) registered electrical engineer. However, for connected loads up to five hundred kilovolt amperes (500 kVA)
and employing voltages up to six hundred volts (600 V) one (1) r egistered master electrician;
(b) RA 8495, Sec. 34 (c), Art. IV (Phil. Mechanical Engineering Act of 1998)
Sec. 34. Personnel Required in Mechanical Plant. Every mechanical work project o r plant in operation shall
have not less than the following complement of reside nt licensed professional mechanical engineer,
mechanical engineer or certified p lant mechanic:
(a) 100 kw or over but not more than 300 kw: one (1) certified plant mechanic, o r more mechanical engineer
or one (1) professional mechanic engineer: Provided, That every mechanical work, project, or plant in this
category operating in more than one shift every twenty-four hours, shall have in addition to the minimum
personnel herein required, one (1) certified plant mechanical, or one (1) mechani cal engineer, or one (1)
professional mechanical engineer in-charge of each and every additional shift.
(b) 300 kw or over, but not more than 2000 kw: one (1) mechanical engineer or on e (1) professional
mechanical engineer or one (1) professional mechanical engine er: Provided, That every mechanical work,
project, or plant in this category ope rating in more than one shift every twenty-four (24) hours shall have, in
additi on to the minimum personnel herein required at least one (1) mechanical engineer , or one (1)
professional mechanical engineer in-charge of each and every additi onal shift.
(c) Over 2000 kw: one (1) professional mechanical engineer: Provided, That every mechanical work, project or
plant in this category operating in more than one s hift every twenty-four (24) hours shall have, in addition to
the minimum personn el herein required at least one (1) professional mechanical engineer in-charge o f each
and every additional shift.

IV. WAGES
Wage and Salary; Concept (Art. 98); Distinction/s
WAGE
-Applies to the compensation for manual labor, skilled
or unskilled, paid at sta ted times, and measured by
the day, week, month, or season.
-Indicates inconsiderable pay for a lower and less
responsible character of empl oyment.

SALARY
-Denotes a higher degree of employment or a superior
grade of services, and impl ies a position or office.
-Suggestive of a larger and more permanent or fixed
compensation for more import
ant service.

By some of the authorities, the word wages in its ordinary acceptance, has a less extensive meaning than the
word salary , wages being ordinarily restricted to sums pa id to artisans, mechanics, laborers, and other
employees of like class, as disti nguished from the compensation of clerks, officers of public corporations, and
p ublic offices. In many situations, however, the words wages and salary are SYNONYMOU S. (35 Am. Jur. Sec.
63, p. 496-497) Our SC reached the same conclusion, the wor ds wages and salary are in essence synonymous.
Labor Code, Article 98. Application of Title. This Title shall not apply to farm tenancy or leasehold, domestic
service and persons working in their respective homes in needlework or in any cottage industry duly registered
in accordance wit h law.
Article 97 (f). Definitions. As used in this Title:
f) "Wage" paid to any employee shall mean the remuneration or earnings, however undesignated, capable of
being expressed in terms of money, whether fixed or asc ertained on a time, task, piece, or commission basis,
or other method of calcula ting the same, which is payable by an employer to an employee under a written or
unwritten contract of employment for work done or to be done, or for services r endered or to be rendered
and includes the fair and reasonable value, as determi ned by the Secretary of Labor and Employment, of
board, lodging, or other facili ties customarily furnished by the employer to the employee. "Fair and
reasonable value" shall not include any profit to the employer, or to any person affiliate d with the employer.
Principles of Fair day's wage for a fair day's labor and Equal pay for equal work
A fair day s wage for a fair day s labor continues to govern the relation between la bor and capital and
remains a basic factor in determining employees wages. This doctrine/legal truism means that persons who
work with substantially equal qualification, skill, effort & responsibility, under similar conditions should b e
paid similar salaries, notwithstanding its international character. If an empl oyer accords employees the same
position and rank, the presumption is that these employees perform equal work.
Facilities vs. Supplement
DOLE DO No. 126-13, Sec 4. Definition of terms:
e) Facilities articles or services provided by the employer for the benefit of t he employee or his/her family
but shall not include tools of the trade of articl es or services primarily for the benefit of the employer or
necessary to the con duct of the employer s business. (Sec 5, Rule VII, Implementing Rules of Book III, Labor
Code) The term shall include:
1. Meals;
2. Housing for dwelling purposes;
3. Fuel including electricity, water, gas furnished for the non-commercial perso nal use of the
employee;
4. Transportation furnished to the employee between his home and work where trav el time does not
constitute hours worked compensable under the Labor Code and ot her laws;
5. School, recreation and sanitation when operated exclusively for the benefit o f the worker or his
family;
6. Medical and dental services rendered to the non-industrial cases; and
7. Other articles and services given primarily for the benefit of the worker or his family.
Atok-Big Wedge Assn v. Atok-Big Wedge Co. (97 Phil 294 )

FACILITIES are items of expense necessary for the laborer's and his family's existenc e and subsistence so that
by express provision of law, they form part of the wag e and when furnished by the employer are deductible
therefrom, since if they are not so furnished the laborer would spend and pay for them just the same .
REQUISITES FOR FACILITIES TO BE CONSIDERED AS AN INTEGRAL PART OF AN EMPLOYEE'S WA GE (deductibility)
1. Must be customarily furnished by the employer to the employee;
2. Must be charged at fair and reasonable value; and
3. The provision on deductible facilities must be voluntarily accepted by the em ployee in writing.
More significantly, the food and lodging, or the electricity and water consumed by the petitioner were not
facilities but supplements. A benefit or privilege gr anted to an employee for the convenience of the employer
is not facility. The cr iterion in making a distinction between the two not so much lies in the kind (fo od,
lodging) but the purpose. Considering therefore that hotel workers are required to work different shifts and
are expected to be available at various odd hou rs, their ready availability is a necessary matter in the
operations of a small hotel, such as the private respondent's hotel.
Art 97f of the Labor Code provides that wage includes the fair and reasonable valu e, as determined by the
Secretary of Labor, of board, lodging, or other faciliti es customarily furnished by the employer to the
employee. This means that an emp loyer may provide, for instance, food and housing to his employees but he
may de duct their values from the employees wages.
DOLE DO No. 126-13, Sec 4. Definition of terms:
i. Supplements extra remuneration or special privileges or benefits given to or received by laborers over and
above their ordinary earnings or wages. It include s:
1. Emergency medical and dental services furnished by the employer by virtue of the requirement of the
Labor Code, as amended and its Implementing Rules and Reg ulations.
2. Cost, rental and/or laundry of uniform where the nature of the business requi res the employees to wear a
uniform;
3. Transportation charges where such transportation is in incident to or necessa ry to the employment;
4. Shares of capital stock of the employee in an employer s company;
5. Paid vacation, sick and maternity leaves; and
6. Tools of the trade or articles of services primarily for the benefit of the e mployer or necessary to the
conduct of the employer s business. The classification of an item of expense as a facility or a supplement will
depe nds on the purpose and not on the kind. So, if it is principally or mainly for t he benefit of the
employee, classify as facilities, and the fair and reasonable value of that can be considered as deductible
from the employee s wage. An employe r can validly pay the employee in the form of cash or in kind. And that
kind ref
ers to facilities.
FACILITIES
-shall include articles or services for the benefit of
the employee or his family but shall not include tools
of the trade or articles or service prima rily for the
benefit of the employer or necessary to the conduct
of the employer's business
- Part of wage
- Deductible from wage

SUPPLEMENT
- Constitute extra remuneration or privileges or
benefits given to or received by the laborers over and
above their ordinary earnings wages which are
primarily for the benefit of the employer or necessary
to the conduct of the employer's business
- NOT part of wage
- NOT wage deductible

Different methods of fixing compensation

Mode of Compensation not a test of employment status; pakyaw basis does not mean workers are
independent contractors