TERMINATION OF CONTRACT OF MIGRANT WORKER
WITHOUT JUST OR VALID CAUSE
Can an OFW acquire regularity of employment?
No. The prevailing rule is that OFWs are contractual
(fixed-term only), not regular, employees. In fact, they
can never attain regularity of employment. Theirs is
always fixed-term in nature.
 1. Indefinite period of employment of OFWs is
not valid as it contravenes the explicit
provision of the POEA Rules and Regulations
on fixed-period employment.
 2. OFWs do not become regular employees by
reason of nature of work, that is, that they are
made to perform work that is usually necessary
and desirable in the usual business or trade of
the employer. The exigencies of their work
necessitate that they be employed on a
contractual basis. This notwithstanding the
fact that they have rendered more than twenty
(20) years of service.
 3. Regular employment does not result from
the series of re-hiring of OFWs.
 4. The fixed-period employment of OFWs is not
discriminatory against them nor does it favor
foreign employers. It is for the mutual interest
of both the seafarer and the employer why the
employment status must be contractual only
or for a certain period of time. Seafarers spend
most of their time at sea and understandably,
they cannot stay for a long and an indefinite
period of time at sea. Limited access to shore
society during the employment will have an
adverse impact on the seafarer. The national,
cultural and lingual diversity among the crew
during the contract of employment is a reality
that necessitates the limitation of its period.
 5. The expiration of the employment contracts
of OFWs marks its ending.
Due Process for Seafarers /OFWs?
For a workers dismissal to be considered valid, it must
comply with both procedural and substantive due
process. The legality of the manner of dismissal
constitutes procedural due process, while the legality
of the act of dismissal constitutes substantive due
process.
Procedural due process in dismissal cases consists of
the twin requirements of notice and hearing. The
employer must furnish the employee with two written
notices before the termination of employment can be
effected: (1) the first notice apprises the employee of
the particular acts or omissions for which his dismissal
is sought; and (2) the second notice informs the
employee of the employers decision to dismiss him.
Before the issuance of the second notice, the
requirement of a hearing must be complied with by
giving the worker an opportunity to be heard. It is not
necessary that an actual hearing be conducted.57
Substantive due process, on the other hand, requires
that dismissal by the employer be made under a just
or authorized cause under Articles 282 to 284 of the
Labor Code. (Skippers United)
In this case, there was no written notice furnished to
De Gracia, et al. regarding the cause of their dismissal.
Cosmoship furnished a written notice (telex) to
Skippers, the local manning agency, claiming that De
Gracia, et al. were repatriated because the latter
voluntarily pre-terminated their contracts. This telex
was given credibility and weight by the Labor Arbiter
and NLRC in deciding that there was pre-termination
of the employment contract akin to resignation and no
illegal dismissal.
However, as correctly ruled by the CA, the telex
message is a biased and self-serving document that
does not satisfy the requirement of substantial
evidence. If, indeed, De Gracia, et al. voluntarily pre-
terminated their contracts, then De Gracia, et al.
should have submitted their written resignations.
(Skippers )
What is the effect of hiring a seafarer for overseas
employment but assigning him to local vessel?
An employment contract, like any other contract, is
perfected at the moment (1) the parties come to agree
upon its terms; and (2) concur in the essential
elements thereof: (a) consent of the contracting
parties, (b) object certain which is the subject matter
of the contract and (c) cause of the obligation.
Based on the perfected contract, Private Respondent
Guerrero complied with his obligations thereunder
and rendered his services on board the vessel.
Contrary to petitioners contention, the contract had
an object, which was the rendition of service by
private respondent on board the vessel. The non-
deployment of the ship overseas did not affect the
validity of the perfected employment contract. After
all, the decision to use the vessel for coastwise
shipping was made by petitioner only and did not bear
the written conformity of private respondent. A
contract cannot be novated by the will of only one
party.
Petitioner, as manning agent, is jointly and severally
liable with its principal,PC-SASCO, for private
respondents claim
This must be so, because the obligations covenanted
in the [manning] agreement between the local agent
and its foreign principal are not coterminus with the
term of such agreement so that if either or both of the
parties decide to end the agreement, the
responsibilities of such parties towards the contracted
employees under the agreement do not at all end, but
the same extends up to and until the expiration of the,
employment contracts of the employees recruited and
employed pursuant to the said recruitment
agreement. Otherwise, this will render nugatory the
very purpose for which the law governing the
employment of workers for foreign jobs abroad was
enacted (OSM Shipping).
What is the effect of non-deployment of OFW to
overseas employment?
Whether the seafarer, who was prevented from
leaving the port of Manila and refused deployment
without valid reason but whose POEA-approved
employment contract provides that the employer-
employee relationship shall commence only upon the
seafarer’s actual departure from the port in the point
of hire, is entitled to relief? (Santiago v CF sharp)
However, a distinction must be made between the
perfection of the employment contract and the
commencement of the employer-employee
relationship. The perfection of the contract, which in
this case coincided with the date of execution thereof,
occurred when petitioner and respondent agreed on
the object and the cause, as well as the rest of the
terms and conditions therein. The commencement of
the employer-employee relationship, as earlier
discussed, would have taken place had petitioner been
actually deployed from the point of hire. Thus, even
before the start of any employer-employee
relationship, contemporaneous with the perfection of
the employment contract was the birth of certain
rights and obligations, the breach of which may give
rise to a cause of action against the erring party.
(santiago v CF sharp)
Respondent’s act of preventing petitioner from
departing the port of Manila and boarding "MSV
Seaspread" constitutes a breach of contract, giving
rise to petitioner’s cause of action. Respondent
unilaterally and unreasonably reneged on its
obligation to deploy petitioner and must therefore
answer for the actual damages he suffered. (Santiago)
Despite the absence of an employer-employee
relationship between petitioner and respondent, the
Court rules that the NLRC has jurisdiction over
petitioner’s complaint. The jurisdiction of labor
arbiters is not limited to claims arising from
employer-employee relationships. Section 10 of R.A.
No. 8042 (Migrant Workers Act), provides that:
Sec. 10. Money Claims. – Notwithstanding any
provision of law to the contrary, the Labor Arbiters of
the National Labor Relations Commission (NLRC) shall
have the original and exclusive jurisdiction to hear and
decide, within ninety (90) calendar days after the filing
of the complaint, the claims arising out of an
employer-employee relationship or by virtue of any
law or contract involving Filipino workers for overseas
deployment including claims for actual, moral,
exemplary and other forms of damages. x x x
[Emphasis supplied]
Since the present petition involves the employment
contract entered into by petitioner for overseas
employment, his claims are cognizable by the labor
arbiters of the NLRC. (supra)
• What is the doctrine of processual presumption?
“Presumed-identity approach” or “processual
presumption” is an International Law doctrine which
dictates that where a foreign law is not pleaded or,
even if pleaded, is not proved, the presumption is that
foreign law
is the same as Philippine law. Thus, under this
situation, Philippine labor laws should apply in
determining the issues presented in a case.
• Is due process under Philippine law applicable to
termination of employment of OFWs?
Yes. In the absence of proof of applicable foreign law,
OFWs are entitled to due process in accordance with
Philippine laws.
• Is the Agabon doctrine applicable to OFWs who are
dismissed for cause but without due process?
Yes. The Agabon doctrine of awarding indemnity in the
form of nominal damages in cases of valid termination
for just or authorized cause but without procedural
due process also applies to termination of OFWs.
• Who has the burden of proof to show that the
dismissal of the OFW is legal?
Burden of proof devolves on both recruitment agency
and its foreign principal.
• Are OFWs entitled to the reliefs under the Labor
Code?
No. They are not entitled to such reliefs under Article
279(?) as reinstatement or separation pay in lieu of
reinstatement or full backwages.
• What are the reliefs to which OFWs are entitled?
They are entitled to the reliefs provided under Section
10 of R.A. No. 8042, as amended, to wit:
(1) All salaries for the unexpired portion of the
contract;
(2) Full reimbursement of placement fees and
deductions made with interest at 12% per annum.
All the reliefs available to an illegally dismissed OFW
are always monetary in nature.
It must be noted that under the 2009 Serrano
doctrine, (Serrano v. Gallant Maritime Services, Inc.,),1
an illegally dismissed OFW is now entitled to all the
salaries for the entire unexpired portion of their
employment contracts, irrespective of the stipulated
term or duration thereof.
However, R.A. No. 10022 (March 8, 2010), which
amended R.A. No. 8042 (Migrant Workers and
Overseas Filipinos Act of 1995), has replicated and re-
enacted the same unconstitutional provision exactly
as above quoted.
RE: Sameer Overseas Placement Agency, Inc. v. Joy C.
Cabiles
Sameer Overseas Placement Agency failed to show
that there was just cause for causing Joy’s dismissal.
The employer, Wacoal, also failed to accord her due
process of law.
Employees are not stripped of their security of tenure
when they move to work in a different jurisdiction.
With respect to the rights of overseas Filipino workers,
we follow the principle of lex loci contractus.
The provisions of the Constitution as well as the Labor
Code which afford protection to labor apply to Filipino
employees whether working within the Philippines or
abroad. Moreover, the principle of lex loci contractus
(the law of the place where the contract is made)
governs in this jurisdiction
In case of termination of overseas employment
without just, valid or authorized cause as defined by
law or contract, the workers shall be entitled to the full
reimbursement of his placement fee with interest of
twelve (12%) per annum, plus his salaries for the
unexpired portion of his employment contract or for
three (3) months for every year of the unexpired term,
whichever is less.
In Serrano v. Gallant Maritime Services, Inc. and
Marlow Navigation Co., Inc., this court ruled that the
clause "or for three (3) months for every year of the
unexpired term, whichever is less" is unconstitutional
for violating the equal protection clause and
substantive due process.
In the hierarchy of laws, the Constitution is supreme.
No branch or office of the government may exercise
its powers in any manner inconsistent with the
Constitution, regardless of the existence of any law
that supports such exercise. The Constitution cannot
be trumped by any other law. All laws must be read in
light of the Constitution. Any law that is inconsistent
with it is a nullity.
We observe that the reinstated clause, this time as
provided in Republic Act. No. 10022, violates the
constitutional rights to equal protection and due
process. (Sameer)
Some principles in regard to monetary awards to
OFWs?
1. Monetary award to OFW is not in the nature of
separation pay or backwages but a form of indemnity.
2. Only salaries are to be included in the computation
of the amount due for the unexpired portion of the
contract. Overtime, holiday and leave pay and
allowances are not included. However, this rule on
exclusion of allowance does not apply in case it is
encapsulated in the basic salary clause.
3. Entitlement to overtime pay of OFWs. - As far as
entitlement to overtime pay is concerned, the correct
criterion in determining whether or not sailors are
entitled to overtime pay is not whether they were on
board and cannot leave ship beyond the regular eight
(8) working hours a day, but whether they actually
rendered service in excess of said number of hours.
An OFW is not entitled to overtime pay, even if
guaranteed, if he failed to present any evidence to
prove that he rendered service in excess of the regular
eight (8) working hours a day.
4. In case of unauthorized deductions from OFW’s
salary, he shall be entitled to the full reimbursement
of the deductions made with interest at 12% per
annum. This is in addition to the full reimbursement of
his placement fee with the same interest of 12% per
annum plus his salaries for the unexpired portion of
his employment contract if he is terminated without
just, valid or authorized cause as defined by law or
contract.
CLAIMS FOR DISABILITY AND DEATH BENEFITS OF
OFW’S
In this respect and in the context of the present case,
Article 192(c)(1) of the Labor Code provides that:
The rule referred to – Rule X, Section 2 of the Rules
and Regulations implementing Book IV of the Labor
Code – states:
These provisions are to be read hand in hand with the
POEA Standard Employment Contract whose Section
20 (3) states:
As these provisions operate, the seafarer, upon sign-
off from his vessel, must report to the company-
designated physician within three (3) days from arrival
for diagnosis and treatment. For the duration of the
treatment but in no case to exceed 120 days, the
seaman is on temporary total disability as he is
totally unable to work. He receives his basic wage
during this period until he is declared fit to work or his
temporary disability is acknowledged by the company
to be permanent, either partially or totally, as his
condition is defined under the POEA Standard
Employment Contract and by applicable Philippine
laws.
If the 120 days initial period is exceeded and no such
declaration is made because the seafarer requires
further medical attention, then the temporary total
disability period may be extended up to a maximum of
240 days, subject to the right of the employer to
declare within this period that a permanent partial or
total disability already exists. The seaman may of
course also be declared fit to work at any time such
declaration is justified by his medical condition.
The POEA Standard Employment Contract and the CBA
clearly provide that when a seafarer sustains a work-
related illness or injury while on board the vessel, his
fitness or unfitness for work shall be determined by
the company-designated physician. If the physician
appointed by the seafarer disagrees with the
company-designated physician’s assessment, the
opinion of a third doctor may be agreed jointly
between the employer and the seafarer to be the
decision final and binding on them.
• Which/Who has jurisdiction over an OFW’s claims
for disability and death benefits?
a) The Labor Arbiter/s, NOT the SSS, have jurisdiction
over claims for disability, death and other benefits of
OFWs.
b) Labor Arbiters have jurisdiction even if the case is
filed by the heirs of the deceased OFW.
• Is the Labor Code’s concept of permanent total
disability similar to that of OFWs?
Yes. The concept of this kind of disability under Article
192 of the Labor Code is applicable to them as
reiterated lately in the 2013 case of Kestrel Shipping
Co., Inc. v. Munar.
• What are the requisites for compensability of injury
or illness of seafarers?
1. It should be work-related; and
2. The injury or illness existed during the term of the
seafarer’s employment contract.
1
What is direct hiring?
“Direct Hiring” refers to the process of directly hiring
workers by employers for overseas employment as
authorized by the DOLE Secretary and processed by
the POEA, including:
1. Those hired by international organizations;
2. Those hired by members of the diplomatic corps;
3. Name hires or workers who are able to secure
overseas employment opportunity with an employer
without the assistance or participation of any agency.
Does the POEA Administrator or the DOLE Secretary or
DOLE Regional Director have the power to issue
closure order?
Yes. If upon preliminary examination or surveillance,
the DOLE Secretary, the POEA Administrator or DOLE
Regional Director is satisfied that such danger or
exploitation exists, a written order may be issued for
the closure of the establishment being used for illegal
recruitment activity.
Does the DOLE Secretary have the power to issue
warrant of arrest and search and seizure orders?
No. Salazar v. Achacoso, declared that the exercise by
the DOLE Secretary of his twin powers to issue arrest
warrant and search and seizure orders provided under
Article 38[c] of the Labor Code is unconstitutional.
Only regular courts can issue such orders.
Remittance of foreign exchange earnings by OFWs
mandatory:
Requirement: All overseas Filipino workers are
required to remit a portion of their foreign exchange
earnings ranging from 50% to 80%, depending on the
worker’s kind of job, to their families, dependents
and/or beneficiaries (Rule VIII, Book III, POEA Rules)
Seamen or Merchants – 80%
Workers for Filipino Contractors and Construction
companies – 70%
Professionals whose Employment Contract provided
for Lodging Facilities- 70%
Professional without Board and Lodging- 50%
Domestic and other Service Workers- 50%
All other workers- 50%
EMPLOYMENT OF NON-RESIDENT ALIENS
What is an ALIEN EMPLOYMENT PERMIT (AEP)?
AEP - a document issued by the DOLE Secretary
through the DOLE-Regional Director who has
jurisdiction over the intended place of work of the
foreign national, authorizing the foreign national to
work in the Philippines.
Who are required to procure AEP?
All foreign nationals who intend to engage in gainful
employment in the Philippines are required to apply
for AEP.
“Gainful employment” refers to a state or condition
that creates an employer-employee relationship
between the Philippine-based company and the
foreign national where the former has the power to
hire or dismiss the foreign national from employment,
pays the salaries or wages thereof and has authority
to control the performance or conduct of the tasks and
duties.
What are the categories of foreign nationals
EXEMPTED from securing AEP?
a) All members of the diplomatic service and foreign
government officials accredited by and with
reciprocity arrangement with the Philippine
government;
b) Officers and staff of international organizations of
which the Philippine government is a member, and
their legitimate spouses desiring to work in the
Philippines;
c) All foreign nationals granted exemption by law;
d) Owners and representatives of foreign principals
whose companies are accredited by the POEA, who
come to the Philippines for a limited period and solely
for the purpose of interviewing Filipino applicants for
employment abroad;
e) Foreign nationals who come to the Philippines to
teach, present and/or conduct research studies in
universities and colleges as visiting, exchange or
adjunct professors under formal agreements between
the universities or colleges in the Philippines and
foreign universities or colleges; or between the
Philippine government and foreign government:
provided that the exemption is on a reciprocal basis;
and
f) Permanent resident foreign nationals and
probationary or temporary resident visa holders under
Section 13 of the Philippine Immigration Act of 1940.
What are the categories of foreign nationals
EXCLUDED from securing AEP?
a) Members of the governing board with voting rights
only and do not intervene in the management of the
corporation or in the day-to-day operation of the
enterprise.
b) Corporate officers as provided under the
Corporation Code of the Philippines, Articles of
Incorporation, and By-laws of the Corporation such as
President, Secretary and Treasurer.
c) Those providing consultancy services who do not
have employers in the Philippines.
d) Intra-corporate transferee who is a manager,
executive or specialist as defined below in accordance
with Trade Agreements and an employee of the
foreign service supplier for at least one (1) year prior
to deployment to a branch, subsidiary, affiliate or
representative office in the Philippines:
(i) an EXECUTIVE: a natural person within the
organization who primarily directs the management of
the organization and exercises wide latitude in
decision making and receives only general supervision
or direction from higher level executives, the board of
directors or stockholders of the business; an executive
would not directly perform tasks related to the actual
provision of the service or services of he organization;
(ii) a MANAGER: a natural person within the
organization who primarily directs the organization/
department/ subdivision and exercises supervisory
and control functions over other supervisory,
managerial or professional staff; does not include first-
line supervisors unless employees supervised are
professionals; does not include employees who
primarily perform tasks necessary for the provision of
the service; or
(iii) a SPECIALIST: a natural person within the
organization who possesses knowledge at an
advanced level of expertise essential to the
establishment/provision of the service and/or
possesses proprietary knowledge of the organization's
service, research equipment, techniques or
management; may include, but is not limited to,
members of a licensed profession.
e) Contractual service supplier who is a manager,
executive or specialist and an employee of a foreign
service supplier which has no commercial presence in
the Philippines:
(i) who enters the Philippines temporarily to supply a
service pursuant to a contract between his/her
employer and a service consumer in the Philippines;
(ii) must possess the appropriate educational and
professional qualifications; and
(iii) must be employed by the foreign service supplier
for at least one (1) year prior to the supply of service
in the Philippines.
What is the validity of an AEP?
One (1) year is the validity of an AEP.
Exception: When employment contract provides
otherwise but not to exceed three (3) years.
The AEP may be renewed subject to the conditions
imposed by law.
TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
APPRENTICES AND LEARNERS
• What are the distinctions between learnership and
apprenticeship?
The following are the distinctions:
1. Practical training. Both learnership and
apprenticeship involve practical training on-the-job.
2. Training agreement. Learnership is governed by a
learnership agreement; while apprenticeship is
governed by an apprenticeship agreement.
2. Occupation. Learnership involves learnable
occupations consisting of semi-skilled and other
industrial occupations which are non-apprenticeable;
while apprenticeship concerns apprenticeable
occupations or any trade, form of employment or
occupation approved for apprenticeship by the DOLE
Secretary.
3. Theoretical instructions. Learnership may or may
not be supplemented by related theoretical
instructions; while apprenticeship should always be
supplemented by related theoretical instructions.
4. Ratio of theoretical instructions and on-the-job
training. For both learnership and apprenticeship, the
normal ratio is one hundred (100) hours of theoretical
instructions for every two thousand (2,000) hours of
practical or on-the-job training. Theoretical instruction
time for occupations requiring less than twothousand
(2,000) hours for proficiency should be computed on
the basis of such ratio.
5. Competency-based system. Unlike in
apprenticeship, it is required in learnership that it be
implemented based on the TESDA-approved
competency-based system.
6. Duration of training. Learnership involves practical
training on the job for a period not exceeding three (3)
months; while apprenticeship requires for proficiency,
more than three (3) months but not over six (6)
months of practical training on the job.
7. Qualifications. The law does not expressly mention
any qualifications for learners; while the following
qualifications are required to be met by apprentices
under Article 59 of the Labor Code:
(a) Be at least fourteen (14) years of age;
(b) Possess vocational aptitude and capacity for
appropriate tests; and
(c) Possess the ability to comprehend and follow oral
and written instructions.
8. Circumstances justifying hiring of trainees. Unlike in
apprenticeship, in learnership, the law, Article 74 of
the Labor Code, expressly prescribes the pre-
requisites before learners may be validly employed, to
wit:
(a) When no experienced workers are available; (b)
The employment of learners is necessary to prevent
curtailment of employment opportunities; and (c) The
employment does not create unfair competition in
terms of labor costs or impair or lower working
standards.
9. Limitation on the number of trainees. In learnership,
a participating enterprise is allowed to take in learners
only up to a maximum of twenty percent (20%) of its
total regular workforce. No similar cap is imposed in
the case of apprenticeship.
10. Option to employ. In learnership, the enterprise is
obliged to hire the learner after the lapse of the
learnership period; while in apprenticeship, the
enterprise is given only an “option” to hire the
apprentice as an employee.
11. Wage rate. The wage rate of a learner or an
apprentice is set at seventy-five percent (75%) of the
statutory minimum wage.
CONFLICT IN THE AGE REQUIREMENT FOR
APPRENTICES:
Under the Labor Code as stated above – 14 years of
age
Under the Labor Code’s Implementing Rules – “Be at
least 15 years of age, provided those who are at least
15 years of age but less than 18 may be eligible for
apprenticeship only in non-hazardous CONFLICT,
HOW RESOLVED:
It should be 15 years of age but the more appropriate
basis is not the Labor Code’s Implementing Rules
(which cannot amend the Labor Code) but another
law, R.A. No. 9231, (“AN ACT PROVIDING FOR THE
ELIMINATION OF THE WORST FORMS OF CHILD LABOR
AND AFFORDING STRONGER PROTECTION FOR THE
WORKING CHILD“) where it is provided that:
(1) All persons under eighteen (18) years of age shall
be considered as a “child”; and
(2) Children below fifteen (15) years of age shall not be
employed EXCEPT if he/she falls under any of the
exceptions mentioned and enumerated in the law.
DISABLED WORKERS
(PERSONS WITH DISABILITY)
(R.A. No. 7277, as Amended by R.A. No. 9442)
• Who are persons with disability (PWDs)?
“Persons with Disability” are those suffering from
restriction or different abilities, as a result of a mental,
physical or sensory impairment, to perform an activity
in the manner or within the range considered normal
for a human being.
• What is impairment?
“Impairment” refers to any loss, diminution or
aberration of psychological, physiological, or
anatomical structure or function.
• What is disability?
“Disability” means (1) a physical or mental impairment
that substantially limits one or more psychological,
physiological or anatomical functions of an individual
or activities of such individual; (2) a record of such an
impairment; or (3) being regarded as having such an
impairment.
What is handicap?
“Handicap” refers to a disadvantage for a given
individual, resulting from an impairment or a disability
that limits or prevents the function or activity that is
considered normal given the age and sex of the
individual.
What are the rights of PWDs?
Under the law, PWDs are entitled to equal opportunity
for employment. Consequently, no PWD shall be
denied access to opportunities for suitable
employment. A qualified employee with disability shall
be subject to the same terms and conditions of
employment and the same compensation, privileges,
benefits, fringe benefits, incentives or allowances as a
qualified able-bodied person.
What is the wage rate of PWDs?
The wage rate of PWDs is 100% of the applicable
minimum wage.
• What is the wage rate of PWD if hired as apprentice
or learner?
A PWD hired as an apprentice or learner shall be paid
not less than seventy-five percent (75%) of the
applicable minimum wage.
What is the rule on discrimination against
employment of PWDs?
No entity, whether public or private, shall discriminate
against a qualified PWD by reason of disability in
regard to job application procedures, the hiring,
promotion, or discharge of employees, employee
compensation, job training, and other terms,
conditions and privileges of employment. The
following constitute acts of discrimination:
(a) Limiting, segregating or classifying a job applicant
with disability in such a manner that adversely affects
his work opportunities;
(b) Using qualification standards, employment tests or
other selection criteria that screen out or tend to
screen out a PWD unless such standards, tests or other
selection criteria are shown to be job-related for the
position in question and are consistent with business
necessity;
(c) Utilizing standards, criteria, or methods of
administration that: (1) have the effect of
discrimination on the basis of disability; or (2)
perpetuate the discrimination of others who are
subject to common administrative control.
(d) Providing less compensation, such as salary, wage
or other forms of remuneration and fringe benefits, to
a qualified employee with disability, by reason of his
disability, than the amount to which a nondisabled
person performing the same work is entitled;(e)
Favoring a non-disabled employee over a qualified
employee with disability with respect to promotion,
training opportunities, study and scholarship grants,
solely on account of the latter’s disability;
(f) Re-assigning or transferring an employee with a
disability to a job or position he cannot perform by
reason of his disability;
(g) Dismissing or terminating the services of an
employee with disability by reason of his disability
unless the employer can prove that he impairs the
satisfactory performance of the work involved to the
prejudice of the business entity; provided, however,
that the employer first sought to provide reasonable
accommodations for persons with disability;
(h) Failing to select or administer in the most effective
manner employment tests which accurately reflect
the skills, aptitude or other factor of the applicant or
employee with disability that such tests purports to
measure, rather than the impaired sensory, manual or
speaking skills of such applicant or employee, if any;
and(i) Excluding PWD from membership in labor
unions or similar organizations.
DISCRIMINATORY ACTS AND POLICIES
SEC. 35. Discrimination in the Workplace. –
Discrimination in any form from pre-employment to
post-employment, including hiring, promotion or
assignment, based on the actual, perceived or
suspected HIV status of an individual is prohibited.
Termination from work on the sole basis of actual,
perceived or suspected HIV status is deemed unlawful.
(RA 8504)
Section 7.Employment of women. —
(a) No women shall be employed in any shop
factory, commercial or industrial establishment or
other place of labor —
(1) to perform work which requires the
employee to work always standing or which involves
the lifting of heavy objects; or
(2) to work between ten o'clock at night and
six o'clock in the morning of the following day.
An employer may be exempted from the requirement
of paragraph (2) of subsection (a) of this section —
(1) in case of force majeure causing an
interruption in the work which was not foreseen and
which is not of a recurring character; or
(2) by the Secretary of Labor, if he finds,
after proper investigation, that the work has to do
with raw materials or materials in the course of
treatment which are subject to rapid deterioration
and night work is necessary to preserve such materials
from loss.
(b) In any shop, factory, commercial, industrial, or
agricultural establishment or other place of labor
where men and women are employed, the employer
shall not discriminate against any woman in respect to
terms and conditions of employment on account of
her sex, and shall pay equal remuneration for work of
equal value for both men and women employees.
(Republic Act 679, AN ACT TO REGULATE THE
EMPLOYMENT OF WOMEN AND CHILDREN)
Republic Act 6725
AN ACT STRENGTHENING THE PROHIBITION ON
DISCRIMINATION AGAINST WOMEN WITH RESPECT
TO TERMS AND CONDITIONS OF EMPLOYMENT (see
:Art 135 (133) LC)
CONDITIONS OF EMPLOYMENT
Who are covered by the labor standards provisions of
the Labor Code?
Employees in ALL establishments, whether operated
for profit or not, are covered by the law on labor
standards.
• Who are excluded?
The following are excluded from the coverage of the
law on labor standards:
a. Government employees; 8. National heroes day - Last Monday of August
b. Managerial employees; 9. Bonifacio day - Monday nearest November
30
c. Other officers or members of a managerial staff;
10. Christmas day - December 25
d. Domestic workers or kasambahay and persons in
the personal service of another; 11. Rizal day - Monday nearest December
30
e. Workers paid by results;
Nationwide Special Holidays
f. Non-agricultural field personnel; and
1. All Saints Day - November 1
g. Members of the family of the employer.
2. Last Day of the Year - December 31
3. Ninoy Aquino Day - Monday nearest August 21
LABOR STANDARDS
• If required to work on reg. holidays = regular rate x
Refers to the minimum requirements prescribed by
existing laws, rules and regulations and other • To receive holiday pay, the EE should not have been
issuances relating wages, hours of work, cost of living absent without pay on the working day preceding the
allowances and other monetary and welfare benefits, regular holiday. (Azucena)
including those set by occupational safety and health • A legal holiday falling on a Sunday creates no legal
standards. obligation for the ER to pay extra to the EE who does
not work on that day, aside from the usual holiday pay,
1. 8 Hour Work (shall not exceed) to its monthly-paid employee. (Wellington vs. Trajano)
Hours worked shall include: 4. Premium Pay
Is additional compensation for work rendered by the
1. All time during which an employee is required to employee on days normally he should not be working.
be on duty to be at a prescribed workplace and
2. All time during which an employee is suffered or 5. Weekly Rest Period
permitted to work. • It shall be for the duty of every employer, whether
operating for profit or not, to provide employee a rest
“Fair day’s wage for a fair day’s labor,” remains the period of not less than 24 consecutive hours after
basic factor in determining the employees’ every 6 consecutive normal working days.
wages and backwages.
• The employer shall determine and schedule the
b
weekly rest day of his employees, however, the
• Rest periods of short duration during working hours employer shall respect the preference of employees as
shall be counted as hours worked. to their weekly rest day when such preference is based
2. Meal Pay on religion grounds.

3. Holiday Pay Where however the choice of the employees as to

their rest day based on religious grounds will
Except: Retail and service establishments regularly inevitably result in serious prejudice or obstruction to
employing less than 10 workers the operation of the undertaking, the employer may
Includes: Employee who is paid by results and she so schedule the weekday rest day of their choice at
works in a service establishment employing more than least 2 days in a month. (Sec. 4, Rule III, Book III, IRR’s)
10 persons shall be paid holiday pay. (Sec. 8(b), Rule When ER may require Work on rest day [D U A - P N A]
IV, Book III, IRR’s) (Art. 92)
Regular Holidays a. In case of actual or impending emergency caused
1. New Years day - January 1 by serious accident, fire, flood, typhoon, earthquake,
epidemic, or other Disaster or calamity to prevent loss
2. Maundy Thursday - Movable Date of life, or imminent danger to public safety.
3. Good Friday - Movable Date b. In case of Urgent work, to avoid serious loss which
4. Eidul Fitr - Movable Date the ER would otherwise suffer;
5. Araw ng Kagitingan - Movable Date nearest April c. In the event of Abnormal pressure of work due to
9 special circumstances, where the ER cannot ordinarily
be expected to resort to other measures;
6. Labor day - Monday nearest May 1
d. To prevent or damage to Perishable goods;
7. Independence day - Monday nearest June 12
e. Where the Nature of work requires continuous
operations and stoppage of the work may result in
irreparable injury or loss to the ER; and
f. Analogous (avail of favorable weather) or similar
circumstances
How much is a worker entitled if he works on a rest
day?
§ Scheduled rest day – additional compensation of
at least 30% of his regular wage.
§ Scheduled rest day which is a non-working holiday
– entitled to additional compensation of at least 50%
of his regular wage.
§ Scheduled rest day which is a regular holiday –
entitled to additional compensation of at least 30% of
his regular holiday rate of 200% based on his regular
wage rate. (Sec. 4, Rule III, Book I, IRR’s)
6. Service Incentive Leave
Except :
a. Those enjoying vacation leave with pay of at least 5
days.
b. Those employed in establishments regularly
employing less than 10 workers
c. Exempt establishments.
• can be converted to cash
• 5 days incentive leaves with pay for at least 1 year
of service.
The term ‘at least 1 year of service’ shall mean service
within 12 months, whether continuous or broken,
reckoned from the date the EE started working,
including authorized absences and paid regular
holidays unless the working days in the establishment
as a matter of practice or policy, or that provided in
the employment contract are less than 12 months, in
which case said period shall be considered as 1 year.
(Sec. 3, Rule V, Book III, IRR’s)
7. Night Shift Deferential
Every EE shall be paid night shift differential of not less
than 10% of his regular wage for each hour of work
performed between 10:00 p.m. and 6:00 a.m. (Art. 86)
Except: Employer with not more than 5 employees
8. Overtime Pay
• Is additional compensation for work done beyond
the normal work hours on ordinary working days.
• Regular work day – plus 25% basic hourly rate
• Special days, holiday or rest day – plus 30% of the
regular hourly rate on said days.
Emergency Overtime Work - Any EE may be required
by the ER to perform overtime work in any of the
following cases: [WED-UPS]
a. When the country is at War
b. When any other national or local Emergency has
been declared
d. When it is necessary to prevent loss of life or
property or in case of imminent Danger to the 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.
e. When there is Urgent work to be performed on
machines and installations in order to avoid serious
loss or damage to the ER or some other cause of
similar nature.
f. When the work is necessary to prevent loss or
damage to Perishable goods.
g. Where the completion or continuation of the work
started before the 8th hour is necessary to prevent
Serious obstruction or prejudice to the business
operations of the ER.
The EE’s refusal to obey the order of the EE constitutes
insubordination for which he may be subjected to
disciplinary action. (Alcantara)
• Undertime work in any particular day shall not be
offset by overtime work on another day BUT not on
someday.
§ Permission given to the EE to go on leave on some
other day of the week shall not exempt the ER from
paying the additional compensation required. (Art. 88)
• For purposes of computing overtime and other
additional remuneration as required by this Chapter
the “regular wage” of an EE shall include the cash
wage only, without deduction on account of facilities
provided by the ER. (Art. 90)
COVERAGE OF LABOR STANDARD
Applies to ALL employees in all establishments and
undertakings whether for profit or not.
Except the following: (MOM –GF – WPD)
M – Managerial Employees
a. Their primary duty consists of the management of
the establishment in which they are employed or of a
department or sub-division thereof;
b. Customarily or regularly direct the work of 2 or
more employees therein;
c. Has the authority to hire or fire other employees of
lower rank; or their suggestions and
recommendations as to the hiring and firing and as to
the promotion or any change of status of other
employees are given particular weight. [Sec 2(b), Rule
I, Book III]
O – Other Offices or Members of a Managerial Staff
a. Primary duty consists of the performance of work
directly related to management policies of the
employer;
b. Customarily and regularly, exercise discretion and
independent judgment;
c. Regularly directly assist a proprietor or managerial
employee or execute under general supervision work
along specialized or technical lines requiring special
training, experience or knowledge; or execute under
general supervision special assignment and tasks; and
d. Do not devote more than 20% of their hours
worked to activities which are not directly and closely
related to the performance of the work described in
the preceding paragraphs.
M – Members of the Family of the Employer who are
dependent of him for support
It refers not only to the real “immediate” members of
he family of the employer but also to those who are
considered as family members in its loose sense, that
is, those who are living with the employer and
dependent on him for support
G – Government Employee
Whether employed by the National Government or
any of its political subdivisions, including those
employed in GOCC’s with original charters. (Sec. 2,
Rule I, Book III, IRR’s)
F – Field Employee
Non-agricultural EE’s who regularly perform their
duties away from the principal place of business or
branch office of the ER whose actual hours of work in
the field cannot be determined with reasonable
certainty (Art. 82)
W – Workers Paid by Result
Compensation computed on the basis of work
accomplished and not on time spent in accomplishing
the work.
a. Paid by Task (wholesale) – those who are
compensated on the basis of the completion or
accomplishment of a certain specified task.
b. Paid by Piece – those who are compensated on the
basis of units or piece of work they produced and
accomplished. The work process involved is usually
repetitive and the compensation is uniform per unit or
per piece.
c. Paid Purely on Commission
P – Persons in the personal service of another
Same as the Domestic Helper but includes not only
domestic servants or house helpers but drivers, valets
and bodyguards as well.
D – Domestic Helpers
Perform such services:
a. In the ER’s home which are usually necessary or
desirable for the maintenance or enjoyment thereof;
b. Or minister to the personal comfort, convenience,
or safety of the ER as well as the members of his ER’s
household (Sec. 2, Rule I, Book III, IRR’s)
However, house personnel hired by a ranking
company official, but paid for by the company itself, to
maintain a staff house provided for the official, are not
the latter’s domestic helpers but regular EE’s of the
company. (Cadiz vs. Philippine Sinter)
13TH MONTH PAY
All land-based employers are required to pay all their
rank-and- file employees a 13th month pay not later
than December 24 of every year.
o 1/12 of the total basic salary earned by an EE within
a calendar year.
o To be paid only to rank-and file employees
regardless of the amount of their basic salary.
o Paid not later than December 24.
§ To be entitled to the 13th month pay benefit, it is
imposed as a minimum service requirement that
employees, regardless of their designation or
employment status and irrespective of the method by
which their wages are paid, should have worked r at
for least one (1) month during the calendar year.
§ It is possible that ½ of the payment of 13th month
pay be given to employees before the opening of the
regular school year and the other half on or before
24th day of December of every year. The frequency of
the payment of this monetary benefit may be subject
of agreement between the employer and the
recognized CBA of the employees.
§ OFW is no entitled to 13th month pay in the
absence of any provision in his employment contract
granting the payment thereof (Petroleum Shipping
Limited v. NLRC, G.R. No. 148130, June 16, 2006)
§ An employee who has resigned or whose services
were terminated at any time before the time for
payment of the 13th month pay is entitled to this
monetary benefit proportion to the length of time he
worked during the year, reckoned from the time he
started working during the calendar year up to the
time of his resignation or termination of service.
(Monthly Salary x # of months he worked during he
year) / 12
Basic Salary (For purposes of computing the 13th
month pay)
Ø include remuneration or earnings paid by this ER for
services rendered
Ø but does not include allowances and monetary
benefits which are not considered or integrated as
part of the regular or basic salary, such as the cash
equivalent or unused vacation and sick leave credits,
overtime, premium, night-differential and holiday pay,
and cost-of-living allowances.
• However, these salary-related benefits should be
included as part of the basic salary in the computation
of the 13th month pay if the individual or collective
agreement, company practice or policy, the same are
treated as part of the basic salary of the EE’s.
The following are not entitled to 13th month pay:
(WPD – G – MES)
W – Workers Paid by Result
Except: Paid by Piece Employee
D – Domestic Helpers
P – Persons in the personal service of another
G – Government Employee
The government and any of its political subdivisions,
including GOCC’s, except those corporations operating
essentially as private subsidiaries of the government.
M – Managerial Employees
E – Employee being paid equivalent of 13th month pay
ER’s already paying their EE’s a 13th month pay or
more in a calendar year or its equivalent at the time of
this issuance.
The term “its equivalent” … shall include Christmas
bonus, mid-year bonus, cash bonuses and other
payments but shall not include cash and stock
dividends, cost of living allowances and other
allowances regularly enjoyed by the EE, as well as non-
monetary benefits. Where an ER pays less than
required 1/12th of the EE’s basic salary, the ER shall
pay the differences.
S – Supervisory Employee
Have the following duties and functions:
a. Assist the department superintendent in various
aspects of management such as in the planning of
systems and procedures;
b. Recommends disciplinary action against erring
subordinates or promotion of deserving personnel,
train and guide subordinates;
c. Communicate and coordinate with other
supervisors;
d. Recommend measures to improve work method;
and
e. Other related tasks as may be assigned by his
immediate superior.
They discharge duties and responsibilities which
qualify them as members of the managerial staff.
A distressed ER may qualify for exemption for the 13th
month pay if there is prior authorization from the
DOLE. (Dentech vs. NLRC)
5. Weekly Rest Period
• It shall be for the duty of every employer, whether
operating for profit or not, to provide employee a rest
period of not less than 24 consecutive hours after
every 6 consecutive normal working days.
• The employer shall determine and schedule the
weekly rest day of his employees, however, the
employer shall respect the preference of employees as
to their weekly rest day when such preference is based
on religion grounds.
Where however the choice of the employees as to
their rest day based on religious grounds will
inevitably result in serious prejudice or obstruction to
the operation of the undertaking, the employer may
so schedule the weekday rest day of their choice at
least 2 days in a month. (Sec. 4, Rule III, Book III, IRR’s)
When ER may require Work on rest day [D U A - P N A]
(Art. 92)
a. In case of actual or impending emergency caused
by serious accident, fire, flood, typhoon, earthquake,
epidemic, or other Disaster or calamity to prevent loss
of life, or imminent danger to public safety.
b. In case of Urgent work, to avoid serious loss which
the ER would otherwise suffer;
c. In the event of Abnormal pressure of work due to
special circumstances, where the ER cannot ordinarily
be expected to resort to other measures;
d. To prevent or damage to Perishable goods;
e. Where the Nature of work requires continuous
operations and stoppage of the work may result in
irreparable injury or loss to the ER; and
f. Analogous (avail of favorable weather) or similar
circumstances
How much is a worker entitled if he works on a rest
day?
§ Scheduled rest day – additional compensation of
at least 30% of his regular wage.
§ Scheduled rest day which is a non-working holiday
– entitled to additional compensation of at least 50%
of his regular wage.
§ Scheduled rest day which is a regular holiday –
entitled to additional compensation of at least 30% of
his regular holiday rate of 200% based on his regular
wage rate. (Sec. 4, Rule III, Book I, IRR’s)
6. Service Incentive Leave
Except :
a. Those enjoying vacation leave with pay of at least 5
days.
b. Those employed in establishments regularly
employing less than 10 workers
c. Exempt establishments.
• can be converted to cash
• 5 days incentive leaves with pay for at least 1 year
of service.
The term ‘at least 1 year of service’ shall mean service
within 12 months, whether continuous or broken,
reckoned from the date the EE started working,
including authorized absences and paid regular
holidays unless the working days in the establishment
as a matter of practice or policy, or that provided in
the employment contract are less than 12 months, in
which case said period shall be considered as 1 year.
(Sec. 3, Rule V, Book III, IRR’s)
7. Night Shift Deferential
Every EE shall be paid night shift differential of not less
than 10% of his regular wage for each hour of work
performed between 10:00 p.m. and 6:00 a.m. (Art. 86)
Except: Employer with not more than 5 employees
8. Overtime Pay
• Is additional compensation for work done beyond
the normal work hours on ordinary working days.
• Regular work day – plus 25% basic hourly rate
• Special days, holiday or rest day – plus 30% of the
regular hourly rate on said days.
Emergency Overtime Work - Any EE may be required
by the ER to perform overtime work in any of the
following cases: [WED-UPS]
a. When the country is at War
b. When any other national or local Emergency has
been declared
d. When it is necessary to prevent loss of life or
property or in case of imminent Danger to the 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.
e. When there is Urgent work to be performed on
machines and installations in order to avoid serious
loss or damage to the ER or some other cause of
similar nature.
f. When the work is necessary to prevent loss or
damage to Perishable goods.
g. Where the completion or continuation of the work
started before the 8th hour is necessary to prevent
Serious obstruction or prejudice to the business
operations of the ER.
The EE’s refusal to obey the order of the EE constitutes
insubordination for which he may be subjected to
disciplinary action. (Alcantara)
• Undertime work in any particular day shall not be
offset by overtime work on another day BUT not on
someday.
§ Permission given to the EE to go on leave on some
other day of the week shall not exempt the ER from
paying the additional compensation required. (Art. 88)
• For purposes of computing overtime and other
additional remuneration as required by this Chapter
the “regular wage” of an EE shall include the cash
wage only, without deduction on account of facilities
provided by the ER. (Art. 90)
COVERAGE OF LABOR STANDARD
Applies to ALL employees in all establishments and
undertakings whether for profit or not.
Except the following: (MOM –GF – WPD)
M – Managerial Employees
a. Their primary duty consists of the management of
the establishment in which they are employed or of a
department or sub-division thereof;
b. Customarily or regularly direct the work of 2 or
more employees therein;
c. Has the authority to hire or fire other employees of
lower rank; or their suggestions and
recommendations as to the hiring and firing and as to
the promotion or any change of status of other
employees are given particular weight. [Sec 2(b), Rule
I, Book III]
O – Other Offices or Members of a Managerial Staff
a. Primary duty consists of the performance of work
directly related to management policies of the
employer;
b. Customarily and regularly, exercise discretion and
independent judgment;
c. Regularly directly assist a proprietor or managerial
employee or execute under general supervision work
along specialized or technical lines requiring special
training, experience or knowledge; or execute under
general supervision special assignment and tasks; and
d. Do not devote more than 20% of their hours
worked to activities which are not directly and closely
related to the performance of the work described in
the preceding paragraphs.
M – Members of the Family of the Employer who are
dependent of him for support
It refers not only to the real “immediate” members of
he family of the employer but also to those who are
considered as family members in its loose sense, that
is, those who are living with the employer and
dependent on him for support
G – Government Employee
Whether employed by the National Government or
any of its political subdivisions, including those
employed in GOCC’s with original charters. (Sec. 2,
Rule I, Book III, IRR’s)
F – Field Employee
Non-agricultural EE’s who regularly perform their
duties away from the principal place of business or
branch office of the ER whose actual hours of work in
the field cannot be determined with reasonable
certainty (Art. 82)
W – Workers Paid by Result
Compensation computed on the basis of work
accomplished and not on time spent in accomplishing
the work.
a. Paid by Task (wholesale) – those who are
compensated on the basis of the completion or
accomplishment of a certain specified task.
b. Paid by Piece – those who are compensated on the
basis of units or piece of work they produced and
accomplished. The work process involved is usually
repetitive and the compensation is uniform per unit or
per piece.
c. Paid Purely on Commission
P – Persons in the personal service of another
Same as the Domestic Helper but includes not only
domestic servants or house helpers but drivers, valets
and bodyguards as well.
D – Domestic Helpers
Perform such services:
a. In the ER’s home which are usually necessary or
desirable for the maintenance or enjoyment thereof;
b. Or minister to the personal comfort, convenience,
or safety of the ER as well as the members of his ER’s
household (Sec. 2, Rule I, Book III, IRR’s)
However, house personnel hired by a ranking
company official, but paid for by the company itself, to
maintain a staff house provided for the official, are not
the latter’s domestic helpers but regular EE’s of the
company. (Cadiz vs. Philippine Sinter)
13TH MONTH PAY
All land-based employers are required to pay all their
rank-and- file employees a 13th month pay not later
than December 24 of every year.
o 1/12 of the total basic salary earned by an EE within
a calendar year.
o To be paid only to rank-and file employees
regardless of the amount of their basic salary.
o Paid not later than December 24.
§ To be entitled to the 13th month pay benefit, it is
imposed as a minimum service requirement that
employees, regardless of their designation or
employment status and irrespective of the method by
which their wages are paid, should have worked r at
for least one (1) month during the calendar year.
§ It is possible that ½ of the payment of 13th month
pay be given to employees before the opening of the
regular school year and the other half on or before
24th day of December of every year. The frequency of
the payment of this monetary benefit may be subject
of agreement between the employer and the
recognized CBA of the employees.
§ OFW is no entitled to 13th month pay in the
absence of any provision in his employment contract
granting the payment thereof (Petroleum Shipping
Limited v. NLRC, G.R. No. 148130, June 16, 2006)
§ An employee who has resigned or whose services
were terminated at any time before the time for
payment of the 13th month pay is entitled to this
monetary benefit proportion to the length of time he
worked during the year, reckoned from the time he
started working during the calendar year up to the
time of his resignation or termination of service.
(Monthly Salary x # of months he worked during he
year) / 12
Basic Salary (For purposes of computing the 13th
month pay)
Ø include remuneration or earnings paid by this ER for
services rendered
Ø but does not include allowances and monetary
benefits which are not considered or integrated as
part of the regular or basic salary, such as the cash
equivalent or unused vacation and sick leave credits,
overtime, premium, night-differential and holiday pay,
and cost-of-living allowances.
• However, these salary-related benefits should be
included as part of the basic salary in the computation
of the 13th month pay if the individual or collective
agreement, company practice or policy, the same are
treated as part of the basic salary of the EE’s.
The following are not entitled to 13th month pay:
(WPD – G – MES)
W – Workers Paid by Result
Except: Paid by Piece Employee
D – Domestic Helpers
P – Persons in the personal service of another
G – Government Employee
The government and any of its political subdivisions,
including GOCC’s, except those corporations operating
essentially as private subsidiaries of the government.
M – Managerial Employees
E – Employee being paid equivalent of 13th month pay
ER’s already paying their EE’s a 13th month pay or
more in a calendar year or its equivalent at the time of
this issuance.
The term “its equivalent” … shall include Christmas
bonus, mid-year bonus, cash bonuses and other
payments but shall not include cash and stock
dividends, cost of living allowances and other
allowances regularly enjoyed by the EE, as well as non-
monetary benefits. Where an ER pays less than
required 1/12th of the EE’s basic salary, the ER shall
pay the differences.
S – Supervisory Employee
Have the following duties and functions:
a. Assist the department superintendent in various
aspects of management such as in the planning of
systems and procedures;
b. Recommends disciplinary action against erring
subordinates or promotion of deserving personnel,
train and guide subordinates;
c. Communicate and coordinate with other
supervisors;
d. Recommend measures to improve work method;
and
e. Other related tasks as may be assigned by his
immediate superior.
They discharge duties and responsibilities which
qualify them as members of the managerial staff.
A distressed ER may qualify for exemption for the 13th
month pay if there is prior authorization from the
DOLE. (Dentech vs. NLRC)
Regional Updates
New Wage Order for workers in CALABARZON
Minimum wage earners in private establishments in
CALABARZON received a basic wage increase of P9.00
to P24.50 upon effectivity of Wage Order No. IVA-18
on April 28, 2018. This brings the new minimum wage
to a range of P317 to P400 in non-agriculture; P303 to
P372 in agriculture sector; and P303 in retail/service
establishments regularly employing not more than 10
workers.
The new wage order brought all the minimum wage
rates to levels not lower than the region’s 2015
poverty threshold. Further, there will only be one rate
for the agriculture sector in each area and the
remaining tranches under Wage Order IVA-17 will also
be given to minimum wage earners by 2020.
Wage Order No. RB IVA-18, which was published on
April 15, 2018 in The Philippine Star, allows exemption
for distressed establishments and establishments
adversely affected by natural and human-induced
calamities