Art.

78 Definition
Handicapped workers are those whose earning capacity is impaired by age, or physical or mental
deficiency or injury.
Art. 79 When Employable
Handicapped workers may be employed when:
a.) their employment is necessary to prevent curtailment of employment opportunities; and
b.) it does not create unfair competition in labor costs or impair or lower working standards.
Art. 80 Employment Agreement
Any employer who employs handicapped workers shall enter into an employment agreement with
them, which agreement shall include:
a.) the names and addresses of the handicapped workers to be employed;
b.) the rate to be paid the handicapped workers to be employed which shall be not less than seventy-
five (75%) percent of the applicable legal minimum wage;
c.) the duration of the employment period; and
d.) the work to be performed by the handicapped workers.
The employment agreement shall be subject to inspection by the Secretary of Labor or his duly
authorized representatives.
Art. 81 Eligibility for Apprenticeship
Subject to the appropriate provisions of this Code, handicapped workers may be hired as apprentices or
learners if their handicap is not such as to effectively impede the performance of job operations in the
particular occupations for which they are hired.
The MAGNA CART FOR DISABLED PERSONS- Republic Act no. 7277, March 24, 1992 insures equal
opportunities for disabled persons and prohibits discrimination against them
Book 3
Conditions of Employment
Title I
Working Conditions and Rest Periods
Chapter 1
HOURS OF WORK
Art. 82 Coverage of Title 1
Employees in all establishments and undertakings whether for profit or not BUT NOT TO govt
employees, managerial employees [those whose primary duty consists of the management of the
establishment in which they are employed or of a dept or subdivision thereof, and to other officers or
members of the managerial staff], field personnel [refer to non-agricultural employees who regularly
perform their duties away from the principal place of business or branch office of the employer and whose
actual hours of work in the field cannot be determined with reasonable certainty], members of the family
who are dependent on him for support, domestic helpers, persons in the personal service of another,
workers who are paid by results
Employer-employee must exist; existence is determined by law, not by contract Elements of
employment relationship (4-fold test)(SEPP)
1. selection and engagement of the employee
2. payment of wages
3. power of dismissal
4. employers power to control the employee with respect to the means and methods by which the
work is to be accomplished aka control test

--evidence of employment: id, vouchers, SSS registration, memorandum, appointment letters, payrolls,
organization charts pakiao workers are considered employees as long as the employer exercises control
over the means by which such workers are to perform their work (Zamudio vs NLRC) mere fact that an
entity is a labor union does not mean that it cannot be considered an employer of the persons who
work for it; even unregistered association may be deemed an employer LC defines an employer as any
person who acts in the interest of an employer in/directly; the law does not require an employer to be
registered in order to be considered as an employer (Orlando Farm Growers vs NLRC) No employment
relationship job contracting or independent contractor Employer is free to regulate, accdg to his
own discretion and judgment, all aspects of employment, including hiring, work assignments, working
methods, time, place and manner of work, tools to be used, processes to be followed, supervision of
workers, dismissal and recall of workers so long as the they are exercised in good faith for the
advancement of the employers interest and not for the purpose of defeating or circumventing the
rights of the employees under special laws or under valid agreements
Excluded employees
1. govt employees governed by CSC rules EXCEPT govt employees of govt agencies and govt
corporations incorporated under the Corporation Code
2. managerial employees or staff
3. outside or field sales personnel
4. employers family members
5. domestic helpers
6. persons rendering personal service
7. workers paid by result
Art. 83 Normal Hours of Work
8-hour law prescribes the minimum
Art. 84 Hours worked
Prelim and postlim activities are deemed performed during working hours, where such activities are
controlled or required by the employer and are pursued necessarily and primarily for the employers
benefit
Whether waiting time constitutes working time depends on the circumstances of each case
whether it is spent predominantly for the employers benefit or for the emmployees; considered
as working time if waiting is an integral part of his work or if the employee is required or engaged by
an employer to wait
Working while eating not compensable if completely freed from duites even though he remains in
the workplace
Working while sleeping may be considered working if it is subject to interruption or takes place
under conditions substantially less desirable than would likely to exist at employees home
on call compensable; within reach through cellphone or other contact device not
compensable
Travel from home to work not worktime EXCEPT when employee receives an emergency call
outside of his regular working hours and is required to travel to his regular place of business or some
other work site, all of the time spent in such travel is working time
travel away from home travel that keeps an employee away from home overnight; worktime
attendance at lectures, meetings, training programs and other similar activities not considered
worktime if it is outside employees regular working hours, it is voluntary, and the employee does not
perform productive work during such attendance
time spent in grievence meetings considered worktime
regular full-time teachers are entitled to salary and emergency cost-of-living allowance during
semestral breaks (UPang Faculty Union vs UPANG)
a laborer need not leave the premises of the workplace in order that his rest period shall not be
counted; it is enough that he ceases to work (case in point: seamen)
hours worked: employer has burden of proof

Art. 85 Meal Periods

GR: not compensable
E: predominantly spent for employers benefit or where it is less than 60 minutes (but in no case shall
it be shorter than 20 minutes)
Continuous shifts
E to E: shortened break is upon employees request
Requisites:
1. agree in writing to a shortened meal break and waive overtime pay for such shortened period
2. no diminution in the salary and other fringe benefits
3. work does not involve strenuous physical exertion and are provided w/ coffee breaks
4. value of the benefits derived by the employees from the proposed work arrangement is equal to or
commensurate with the compensation due them
5. overtime pay of the employees will become due and demandable if ever they are permitted or made
to work beyond 4:30pm
6. effectivity of proposed working time arrangement shall be of temporary duration as determined by
DOLE
Art. 86 Night Shift Differential
not less than 10% of regular wage for each hour of work performed b/w 10pm to 6am
NSD not waivable since it is founded on public policy
Burden of proof of payment rests upon the employer
Art. 87 Overtime Work
Compensation for work rendered in excess of 8 hours a day
Multiply the overtime hourly rate by the number of hours worked in excess of 8
Receipt of overtime pay does not preclude right to NSD
Overtime rate based on regular wage (excludes money received in different concepts and other fringe
benefits)
How work day is counted 24-hour period which commences from the time the employee
regularly starts to work
Work in excess of 8 hours w/n a work day is considered as overtime regardless of whether this is
performed in a work shift other than at which employee regularly works
Estoppel and laches cannot be invoked against employees in an action for the recovery of
compensation for overtime work
Overtime pay in arrears retroacts to the date when services were actually rendered
GR: NO waiver or quitclaim of overtime pay
E: waiver is in exchange for certain benefits
Agreement that overtime pay will be integrated in basic salary is not per se illegal; however, there
should have been express agreement to that effect and that the mathematical result shows that the
agreed legal wage rate and the overtime pay,computed separately, are equal to or higher than the
separate amounts legally due

Compressed workweek (45 hours in 5 days) as an exception to the non-waiver of overtime pay if the
following requisites are present:
1. agree in writing to work 9 hours a day from Monday to Friday
2. no diminution in the salary and other fringe benefits
3. value of the benefits that will accrue to the employees under the proposed work schedule is more
than or at least commensurate with or equal to the one-hour overtime pay that is due them during
weekdays
4. overtime pay of the employees will become due and demandable if ever they are permitted or made
to work on weekend
5. work does not involve strenuous physical exertion and are provided w/ coffee breaks
6. effectivity of proposed working time arrangement shall be of temporary duration as determined by
DOLE
Art. 88 Undertime not offset by Overtime
Art. 89 Emergency Overtime Work
1. country is at war or when any national or local emergency has been declared by Congress or the
President
2. necessary to prevent loss of life or property or in case of imminent danger to public safety due to
impending emergency caused by accidents, fire, flood, typhoon, earthquake, epidemic, or other
disaster or calamity
3. urgent work to be performed on the machines, ect. In order to avoid loss or damage to employer
4. to prevent loss or damage to perishable goods
5. to prevent serious obstruction of prejudice to the business or operations of the employer
6. to avail of favorable weather or environmental conditions where performance or quality of work is
dependent thereon
Art. 90 Computation of Additional Compensation
regular wage shall include cash wage only, w/o deduction on account of facilities provided by
employer
Chapter II
WEEKLY REST PERIODS
Art. 91 Right to weekly rest day
rest period of not less than 24 hours after every 6 consecutive normal work days
Art. 92 When employer may require work on a rest day

1. necessary to prevent loss of life or property or in case of imminent danger to public safety due to
impending emergency caused by accidents, fire, flood, typhoon, earthquake, epidemic, or other
disaster or calamity
2. urgent work to be performed on the machines, ect. In order to avoid loss or damage to employer
3. abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be
expected to resort to other measures
4. prevent loss or damage to perishable goods
5. nature of work requires continuous operations and stoppage of work may result in irreparable injury
or loss to the employer
6. similar circumstances as determined by DOLE Sec.
Art. 93 Compensation for rest day, Sunday, or holiday work
at least 30% of regular wage
when such holiday falls on his rest day, addl compensation of at least 50%
CBA may stipulate higher premium pay
3 special days (holidays) Nov.1, Dec. 31, Aug. 21 30%
Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES, AND SERVICE CHARGES
Art. 94 Right to (Regular) Holiday
100% addl compensation
10 regular holidays
1. New Year (Jan.1)
2. Maundy Thursday
3. Good Friday
4. Araw ng Kagitingan (Apr 9)
5. Labor Day (May 1)
6. Independence Day (Jun 12)
7. National Heroes Day (Last Sunday of Aug)
8. Bonifacio Day (Nov 30)
9. Christmas Day (Dec 25)
10. Rizal Day (Dec 30)
11. Eidul Fitras - 1st day after 30-day fasting period
12. Eidul Adha regl holiday in the ARMM
Muslim Holidays
shall be observed in the provinces of Basilan, Lanao del Norte/ Sur, Maguindanao, North Cotabato,
Sultan Kudarat, Sulu, Tawi-tawi, Zamboanga del Norte/Sur, cities of Cotabato, Iligan, Marawi,
Pagadian, and Zamboanga, and in such other Muslim provinces and cities as may be created. Upon
proclamation by the President, Muslim holidays may also be officially observed in other provinces and
cities

PP 1198 all private corps, offices, and agencies operating within the provinces and cities
enumerated herein shall observe the legal holidays as proclaimed, provided, that all Muslim employees
working outside of the Muslim provinces and cities shall be excused from work during the observance of
Muslim holidays as recognized by law, without diminution of salary during said period
Both Muslim and Christian employees within the Muslim areas may not report for work on the
designated Muslim holidays
1. amun jadid (new year)
2. mauled-un-nabi (birthday of Mohammed)
3. lailatul isra wal mi rai (nocturnal journey and ascension of the Prophet Mohammed)
4. id-ul-fitr (hari raja pausa) end of fasting season
5. id-ul-adha (hari raha haji)
a legal holiday falling on a Sunday creates no legal
obligation for the employer to pay extra, aside from the usual holiday pay, to its monthly-paid
employees (Wellington Investment vs Trajano)
double holiday: 2 regular holidays on same day
if unworked covered employees are entitled to at least 200% of their basic wage even if said
holiday is unworked
if worked entitled to compensation equivalent to at least 300% of his basic wage
double holiday rule for monthly-paid employees if
worked, additional 100% of regular salary
successive regular holidays an employee may not
be paid for both holidays if he absents himself from work on the day immediately preceding the 1st
holiday, unless he works on the 1st holiday, in which case, he is entitled to his holiday pay on the 2nd
holiday
holiday pay of hourly-paid faculty members during
semestral break
employer-school is exempted from paying hourly paid faculty members their pay for regular
holidays, whether the same be during the regular semester or during semestral, Christmas, or Holy
Week vacations
employer-school must pay said faculty members their regular hourly rate on days declared as
special holidays or for some reason classes are called off or shortened for the hours they are supposed
to have taught, whether extension of class days be ordered or not; in case of extensions said faculty
mems shall likewise be paid their hourly rates should they teach during said extension (JRC vs NLRC)
field personnel not entitled to holiday pay

Art. 95 Right to Service Incentive Leave

coverage: every employer who has rendered at least
1 year of service shall be entitled to a yearly SIL of 5 days with pay
SIL not applicable to those already enjoying the
benefit herein provided, those enjoying vacation leave with pay of at least 5 days, and those employed
in establishments regularly employing less than 10 employees
1 year of service service within 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 provided ini the employment contract is less than 12 months, in
which case said period shall be considered as 1 year for the purpose of determining entitlement to the
SIL
SIL of part-time workers proportionate to the
daily work rendered and the regular salary, respectively (DOLE Explanatory Bulletin dated January 2,
1996)
on contract workers entitled to SIL
Commutation of SIL valid; basis of conversion shall
be the salary rate at the date of commutation; availment and commutation of the SIL benefit may be
on a pro-rata basis
SIL is mandatory
Vacation and sick leaves are voluntary benefits
Leave credits are normally converted into their cash
equivalent based on the last prevailing salary received by the employee
Paternity leave available only for the 1st four
deliveries of the legitimate spouse with whom the husband is cohabiting; delivery includes childbirth,
miscarriage, or abortion
shall not exceed 7 calendar days for each delivery
entitled to full pay
non-commutation of benefits
Requisites:
1. he is an employee at the time of delivery of his child
2. he is cohabiting with his spouse at the time she gives birth or suffers a miscarriage
3. he has applied for paternity leave
4. hi wife has given birth or suffered a miscarriage
Maternity leave see discussion under Art 133 of LC
Parental (Solo Parent) Leave not more than 7
working days each year
non-convertible to cash if unused
requisites:
1. has rendered at least 1 year of service
2. has notified employer of the availment thereof w/n a reasonable period of time
who is a solo parent?
1. woman gives birth as result of rape or crime against chastity, provided she keeps and raises the child
2. spouse has died
3. spouse is detained or is serving sentence for at least 1 year
4. legally separated or de facto separated for at least 1 year, provided s/he is entrusted with custody
5. physical/mental incapacity of spouse
6. abandoned by spouse for at least 1 year
7. unmarried mother/father
8. any other person who solely provides parental care and support to a child
9. any family mem who assumes the responsibility of head of family
Art. 96 Service Charges
covered employees except those receiving more
than P2,000 a month
in case service charge is abolished, the share of
covered employees shall be considered as integrated in their wages
basis shall be the average monthly share of each
employee for the past 12 months immediately preceding the abolition or withdrawal of such charges
pooled tips shall be monitored, accounted for, and
distributed in the same manner as service charge
Title II WAGES
Chapter 1 Preliminary Chapter
Art. 97 - Definitions:
a. person
b. employer
c. employee
d. agriculture
e. employ
f. wage
g. fair and reasonable value
WAGE applies to the compensation for manual labor, skilled or unskilled, paid at stated times,
and measured by the day, week, month, or season
- indicates inconsiderable pay for a lower and less responsible character of employment
- includes sales commissions
- includes facilities (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 primarily for the benefit of the employer or
necessary to the conduct of the employers business) or commodities (employer may provide