LABOR STANDARDS AZUCENA NOTES: • Labor laws are necessarily social legislation

Labor
Labor legisl
legislati
ation
on – statue
statues,
s, regul
regulati
ations
ons &
 jurisprudence
 jurisprudence governing relations
relations bet capital & Social Justice as te Ai!
labor,
labor, by provi
providin
ding
g for certai
certain
n standa
standard
rdss of 
terms & conditions of EENT or providing a legal %oci
%ocial
al just
justic
ice
e – uma
umani ni0a
0ati
tion
on of laws
laws & tete
framework w/in w/c tese terms & conditions & e)uali0ation of social & economic forces by te
te
te EENT
EENT relat
elatio
ions
nsi
ip
p may
may be negonegoti
tiat
ated
ed,, %tate
%tate so tat
tat socia
sociall justic
justice
e in its rationa
rationall &
adjusted & administered! objectively secular conception may at leas be
appro*imated
" #ivisions of Labor Legislation
( promotion of te welfare of te
$! Labor %tandards – sets out te minimum terms, ppl,
ppl, te adoption
adoption by te 1ovt of measur measures es
conditions & benets of EENT tat EE'% must calculat
calculateded to insure
insure economic stability
stability of all
provide or comply w/ & to w/c EE% are entitled te compon
component ent eleme
elements
nts of societ
societyy troug
troug 
as a matter of legal rigt! te maintenance of proper economic & social
e)ui
e)uili
libr
briu
ium
m in te te inte
interrrelation
tions
s of te te
( minimum re)uirements members
members of te community
community,, constitut
constitutiona
ionally,
lly,
prescribed by e*isting laws, rules & regulations tr
troug
oug te te adop
adoptition
on of measmeasurures
es lega
legall
lly
y
relating
relating to wages,
wages, rs of work,
work, cost(of(
cost(of(livi
living
ng  justiable, or e*tra(constitutionally,
e*tra(constitutionally, troug
allo
allowa
wanc
ncee and
and ote
oterr mone
monetatary
ry & welf
welfarare
e te
te e*erc ercise
ise of pow powers
ers unde
underl
rlyi
ying
ng tete
bene
benetts,
s, incl
includ
udin
ing
g occu
occupa
pati
tion
onal
al safe
safety
ty & e*istence of all govts!
ealt standards!
$234
$234 5onsti
5onsti66 prote
protects
cts te rigt
rigts
s of worke
workers
rs &
( mate
aterial or subs
ubstanc
tance
e to be promote teir welfare
processed
7asi
7asic
c rig
rigts
ts of work
worker
ers
s guar
guaran
ante
teed
ed by te
te
"! Labor 'elations
elations – denes
denes te status,
status, rigts & 5onstitution
duties and te institutional mecanisms, tat
govern
govern te indiv
indiv & collectiv
collective
e interact
interactions
ions of  $! to organi
organi0e
0e temse
temselve
lves
s
EE'%, EE%, or teir representatives! "! to conduct collective
bargaining/negotiation
bargaining/negotiation w/ mgt8
( mecan
mecanism
ism tat
tat proce
processe
sses
s te 9! to engage
engage in peacef
peaceful
ul concer
concerted
ted activ
activitie
ities,
s,
substance including to strike in accordance w/ law8
and
:! to partic
participa
ipate
te in policy
policy & decision
decision(ma
(makin
kingg
processes
processes a;ecting rigts & benets
Labo
Laborr – pys
pysicical
al toil
toil alt
altou
oug
g it does
does not
not
necess
necessar
arily
ily e*clu
e*clude
de te applic
applicati
ation
on of skill
skill <ter
ter 5on
5onsti prov
proviision
sions
s ta
tat prote
otect te
te
+tus skilled- & unskilled- labor. 's/promote te welfare of workers
%kill – te familiar knowledge of any art/science,
• ' to form unions, assocs or societies for
united w/ readiness & de*terity in
purposes not contrary to law
e*ecution/performance or in te application of 
te art/science to practical
practical purposes! • ' of selfelf(or
(org even forfor gov
govt EE%!E%!! No
o=ce
o=cer/r/Ee
Ee of te
te 5ivi
5ivill %erv
%ervic
icee sal
salll be
ork – +broader tan labor. – covers all forms of  removed/suspended  for cause!
pysical
pysical/ment
/mental
al e*erti
e*ertion,
on, or bot combined,
combined,  Temporary
 Temporary EE% of te 1ovt sall be given
for
for te
te atta
attain
inme
ment
nt of some
some obj
obj ote
oterr tan
tan suc protection as may be provided by law
recreation/amusement per se! • 'egular farmworkers sall ave te ' to
own directly/collectively
directly/collectively te lands tey till!
orker
orker – +broader
+broader tan EE. – may refer to self(self( Landless farmworkers
farmworkers may be resettled by
empl
employoyed
ed peop
people
le & tostosee work
workin
ing
g in te
te te govt in its own agri estates!
servi
ervic
ce & undunder te cont contrrol of anot
noteer, • 5ontinuing program of urban land reform
regardless of rank, title, or nature of work! & ousing
• >rotection for working women taking into
( any member of te labor force weter acct teir maternal functions, etc
employed/unemployed
• Labor sector is entitled to seats to party
Employee – a salaried person working for anoter list
wo controls or supervises te means, manner • 1oal
1oal66 mor
more e)ui
e)uita
tabl
blee dist
distri
ribu
buti
tion
on of 
or metod of doing te work! opportunities, income & wealt!
wealt!
• ?gency to promote te viability & growt
Labor Law & Social Legislation of cooperatives as instruments for social
 justice & economic
economic dev@t
%ocial
%ocial legislat
legislation
ion – includes
includes laws tat provide • 1ovt sall increase te salary scales of te
part
partic
icul
ular
ar kind
kinds
s of prote
protect
ctio
ion/
n/be
bene
net
ts
s to oter o=cials & EE%
society in furterance of social justice!

$
 • 5areer civil service
service EE% sall be entitled to 4! Ter
Tere
e sld
sld be popu
popula
larr part
partic
icip
ipat
atio
ion
n in
separation pay & retirement benets, <' nation
national
al policy
policy(ma
(makin
king
g troug
troug
 wat
wat is
may be consider
considereded for reempl
reemploymen
oymentt in now called tripartism!
te govt

5onsti – prol(labor, but recogn

ogni0es te
indi
indisp
spen
ensa
sabl
ble
e role
ole of te
te priv
privat
ate
e sect
sector
or,, %ome Labor Laws before te >assage of te 5ode
encourage
encourages s private
private enterpris
enterprisee and provide
provides
s
incentives to needed investments • ?ct F$34:6 EE'@% Liability ?ct,
• ?ct F"C:26 proibited payment of wages
"olice "ower as te Basis in non(cas form
• ?ct F"G4$6 proibiting slavery/involuntary
( te
te powe
powerr of te
te gov
govtt to ena
enact
ct la
laws,
ws, w/in
w/in servitude
5onstitutional limits to promote te order, • ' F$GC:6
F$GC:6 re)ui
re)uiri
ring
ng emerg
emergenc
ency y medic
medical al
safety, ealt, morals & general welfare of  treatmt for EE%
society • 5? F :::6 3(r labor law
( powe
powerr ine
inerrent
ent in govt
govt to prot
protec
ectt itse
itself
lf &
• 5? F$G9
F$G9 creat
created
ed te 5ourt
5ourt of Hndust
Hndustria
riall
all its constituents, & for tis purpose to
old te govt immune so far as necessary, 'elations +5H'.
from any limitatins imposed in te past! • >d F"$ created te NL'5 + to investigate,
( ?n impo
imposi
siti
tion
on of rest
restra
rain
intt upon
upon libe
libert
rty
y or decide & settle all disputes bet EE'% &
prope
property
rty in order
order to foster
foster te common
common EE%
good! • '? F 34C6 Te Hndustrial >eace ?ct +te
Bagna 5arta of Labor.
• '? F2:
F2:66 7lue
7lue %und
%unday
ay Law
Law – forbforbidids
s
commercial, industrial or agri enterprises
Birt o# te LC to open on any %unday, Imas #ay, New
 Jear@s
 Jear@s #ay, Koly Turs & 1ood Driday
Driday!!
7las <ple
<ple ( fater of te L5
• '? F$43
F$4346
46 Te
Te Termi
ermina
nati
tion
on >ay LawLaw –
L5 – designed to be a dynamic & growing body of  enumerated te just causes for
laws w/c will reAect continually te lessons of  terminating an EENT w/o a denite period
practical application & e*perience and allowed EE'% to separate an EE by
serving a $C(day notice per yr of service
$ "rinci%les Unerl'ing te coe or, by paying
paying an e)uiva
e)uivalen
lentt separ
separatiation
on
pay!
$! Labor relations must be made bot
responsive & responsible to national devt
"! Labor
Labor laws/la
laws/labor bor relat
relation
ionss during
during a period
period %ignicance of <ter Laws
of natio
nationa nall emerg
emergencencyy must
must substi
substitut
tute
e
ratio
rationa
nalit
lity
y for confr
confront
ontati
ation8
on8 strikes
strikes or $! Doreign #ecisions – numerous L5
lockouts give way to a rational process w/c provisions are substantially similar to te
is arbitration Hndustrial >eace ?ct
9! Laggard justice in te labor eld is "! Te
Te 5ivil
5ivil 5ode
5ode – descri
describe
bess te natur
naturee of 
injurious to te workers, te EE'% & te labor mgt relations6
public8 labor justice can be made Te relations bet capital & labor are not
e*peditious w/o sacricing due process! merely contractual! Tey are so impressed
impressed
:! Banpow
Banpower er devt
devt & EENTEENT must
must be rega
regard
rded
ed w/ publ
publicic inte
interrest
est tat
tat labo
laborr cont
contra
ract
cts
s
as a major dimension of labor policy, for must
must yield
yield to te common
common good! suc
tere can be no real e)uality of bargaining contracts are subj! to te special laws on
power
power under
under condit
condition
ions
s of sever
severee mass
mass labor unions, collective bargaining, strikes
unemployment! & lockouts, closed sop, wages, working
C! Tere
Tere is a global
global labor
labor mark
market
et availa
available
ble to conditions, rs of labor & similar subjs!- 
)ual
)uali
ied
ed Dilip ilipin
inos
os,, esp
esp tos
tose
e wo
wo areare ?rt $4GG
unemployed or wose EENT is tantamount Neite
iterr cap
capita
ital nor
nor lab
labor sasall act
to unemployment bco0 of teir very little oppressively against te oter, or impair
earnings! te interest or convenience of te public-
! Labor laws must command ade)uate –?rt $4G$!
resources & ac)uire a capable macinery 9! '>5 – punisunis
es te
te use
use of violiolenc
ence or
for e;ective & sustained implementation8 treats by eiter EE' or EE!
wen labor laws cannot be enforced, bot :! %pecial Laws – +%%% law, 1%H% law,
EE'% & te workers are penali0ed, & only ?grarian 'eform law, te $9 t(mont pay
a corrupt few +tose wo are in carge of  law,
law, te Bagna
Bagna 5arta
5arta for >ubli
>ublicc Kealt
Kealt
implementation. may get te reward tey orkers.
don@t deserve!

"
 • 5areer civil service
service EE% sall be entitled to 4! Ter
Tere
e sld
sld be popu
popula
larr part
partic
icip
ipat
atio
ion
n in
separation pay & retirement benets, <' nation
national
al policy
policy(ma
(makin
king
g troug
troug
 wat
wat is
may be consider
considereded for reempl
reemploymen
oymentt in now called tripartism!
te govt

5onsti – prol(labor, but recogn

ogni0es te
indi
indisp
spen
ensa
sabl
ble
e role
ole of te
te priv
privat
ate
e sect
sector
or,, %ome Labor Laws before te >assage of te 5ode
encourage
encourages s private
private enterpris
enterprisee and provide
provides
s
incentives to needed investments • ?ct F$34:6 EE'@% Liability ?ct,
• ?ct F"C:26 proibited payment of wages
"olice "ower as te Basis in non(cas form
• ?ct F"G4$6 proibiting slavery/involuntary
( te
te powe
powerr of te
te gov
govtt to ena
enact
ct la
laws,
ws, w/in
w/in servitude
5onstitutional limits to promote te order, • ' F$GC:6
F$GC:6 re)ui
re)uiri
ring
ng emerg
emergenc
ency y medic
medical al
safety, ealt, morals & general welfare of  treatmt for EE%
society • 5? F :::6 3(r labor law
( powe
powerr ine
inerrent
ent in govt
govt to prot
protec
ectt itse
itself
lf &
• 5? F$G9
F$G9 creat
created
ed te 5ourt
5ourt of Hndust
Hndustria
riall
all its constituents, & for tis purpose to
old te govt immune so far as necessary, 'elations +5H'.
from any limitatins imposed in te past! • >d F"$ created te NL'5 + to investigate,
( ?n impo
imposi
siti
tion
on of rest
restra
rain
intt upon
upon libe
libert
rty
y or decide & settle all disputes bet EE'% &
prope
property
rty in order
order to foster
foster te common
common EE%
good! • '? F 34C6 Te Hndustrial >eace ?ct +te
Bagna 5arta of Labor.
• '? F2:
F2:66 7lue
7lue %und
%unday
ay Law
Law – forbforbidids
s
commercial, industrial or agri enterprises
Birt o# te LC to open on any %unday, Imas #ay, New
 Jear@s
 Jear@s #ay, Koly Turs & 1ood Driday
Driday!!
7las <ple
<ple ( fater of te L5
• '? F$43
F$4346
46 Te
Te Termi
ermina
nati
tion
on >ay LawLaw –
L5 – designed to be a dynamic & growing body of  enumerated te just causes for
laws w/c will reAect continually te lessons of  terminating an EENT w/o a denite period
practical application & e*perience and allowed EE'% to separate an EE by
serving a $C(day notice per yr of service
$ "rinci%les Unerl'ing te coe or, by paying
paying an e)uiva
e)uivalen
lentt separ
separatiation
on
pay!
$! Labor relations must be made bot
responsive & responsible to national devt
"! Labor
Labor laws/la
laws/labor bor relat
relation
ionss during
during a period
period %ignicance of <ter Laws
of natio
nationa nall emerg
emergencencyy must
must substi
substitut
tute
e
ratio
rationa
nalit
lity
y for confr
confront
ontati
ation8
on8 strikes
strikes or $! Doreign #ecisions – numerous L5
lockouts give way to a rational process w/c provisions are substantially similar to te
is arbitration Hndustrial >eace ?ct
9! Laggard justice in te labor eld is "! Te
Te 5ivil
5ivil 5ode
5ode – descri
describe
bess te natur
naturee of 
injurious to te workers, te EE'% & te labor mgt relations6
public8 labor justice can be made Te relations bet capital & labor are not
e*peditious w/o sacricing due process! merely contractual! Tey are so impressed
impressed
:! Banpow
Banpower er devt
devt & EENTEENT must
must be rega
regard
rded
ed w/ publ
publicic inte
interrest
est tat
tat labo
laborr cont
contra
ract
cts
s
as a major dimension of labor policy, for must
must yield
yield to te common
common good! suc
tere can be no real e)uality of bargaining contracts are subj! to te special laws on
power
power under
under condit
condition
ions
s of sever
severee mass
mass labor unions, collective bargaining, strikes
unemployment! & lockouts, closed sop, wages, working
C! Tere
Tere is a global
global labor
labor mark
market
et availa
available
ble to conditions, rs of labor & similar subjs!- 
)ual
)uali
ied
ed Dilip ilipin
inos
os,, esp
esp tos
tose
e wo
wo areare ?rt $4GG
unemployed or wose EENT is tantamount Neite
iterr cap
capita
ital nor
nor lab
labor sasall act
to unemployment bco0 of teir very little oppressively against te oter, or impair
earnings! te interest or convenience of te public-
! Labor laws must command ade)uate –?rt $4G$!
resources & ac)uire a capable macinery 9! '>5 – punisunis
es te
te use
use of violiolenc
ence or
for e;ective & sustained implementation8 treats by eiter EE' or EE!
wen labor laws cannot be enforced, bot :! %pecial Laws – +%%% law, 1%H% law,
EE'% & te workers are penali0ed, & only ?grarian 'eform law, te $9 t(mont pay
a corrupt few +tose wo are in carge of  law,
law, te Bagna
Bagna 5arta
5arta for >ubli
>ublicc Kealt
Kealt
implementation. may get te reward tey orkers.
don@t deserve!

"
Art () *Declaration o# Basic "olici+ Te State wor
workers, wet
eter
er agric
gricu
ultu
ltural
ral or non(
on(
sall a,or %rotection to labor- %ro!ote agricultural!
#ull EENT- ensure e.ual wor/  
o%%ortunit
o%%ortunities
ies regarless
regarless o# se0- race or ( also app
applies
lies to a gov
govt corp
orp incor
ncorpo
pora
rate
ted
d
cree
cree-- an
an regul
regulat
ate
e te
te rela
relati
tion
ons
s bet
bet under te 5orporation 5ode!
wor/ers & EERS) Te State sall assure ( Test
est <N a govt(
govt(ow
owne
ned/
d/(c
(con
ontr
trol
olle
led
d corp
corp is
te rigts o# wor/ers to sel#1org- subj to 5% Law is te manner of its
collecti2e bargaining- securit' o# tenure- creat
creation
ion!! 1ovt
1ovt corps
corps crea
created
ted by specia
speciall
an 3ust & u!ane conitions o# wor/) carte
carterr are
are subj
subj to its provi
provisio
sions,
ns, wile
wile
tose
tose incorp
incorpora
orated
ted under
under te gen 5orp 5orp
Balance A%%roac – sared
Balance A%%roac sared responsibility
responsibility!! Law are not w/in te coverage of te 5%
orker & EE' sectors are interdependent! law!
• >N<5(E#5 – incorp under te 5orp Law 
subj to L5
• NK? – incorp
incorp under ?ct $:C2, te former
former
?rt:! M5onstruction in Davor of Labor ?ll doubts in
corp law  L5
te implem
implement
entat
ation
ion & interp
interpre
retat
tation
ion of te
provisions of tis 5ode, including its H''s, sall • 1ovt agencies – Ees covered by 5% Law
be resolved in favor of labor!

Hnterpretation
Hnterpretation & 5onstruction – policy is to e*tend
te decree@s applicability to a greater number
of EE% to enable tem to avail of te benets 5K! "6 EB?N5H>?TH<N <D TEN?NT%
under te law +Liberal approac is adopted.
?rt 4 M%tatement of <bjectives O it as become
5oncern
5oncern for te Lowly orker
orker – %5 rea=rm
rea=rms s its impe
impera
rati
tiv
ve to start
tart refor
eforma
mattion
ion w/ tete
concern for te lowly worker wo, often at is emancipation of te tiller of te soil from is
EE'@s mercy, must look up to te law for is bondage!
protection! +'eason6 te EE' stands on iger
foot
footin
ing
g tan
tan te
te EE6
EE6 +$,.
+$,. Ter
Tere
e is grea
greate
terr ?rt 36 MTran
MTransfer
sfer of Lands
Lands to Tenant(wo
enant(workrkers
ers O
supply tan demand for labor8 +". te need for tenant(farmers on private agri lands primarily
EEN
EENT by lab labor come
omes from
from vita
ital & even
even devoted to rice & corn under a sys of sare
desperate necessity!. crop
crop or lease
lease tenanc
tenancy y wete
weterr classi
classied
ed as
landed estate or not sall be deemed owner of 
Bgt 'igts – entitled to respect & enforcement in apportion constituting a family(si0e farm of C
te interest of simple fair play! ect
ectar
ares
es if not
not irr
irrigat
igated
ed & 9 ectectar
ares
es if 
irrigated!!
$! ' to manag
manage, e, contr
control,
ol, and
and use
use is propert
propertyy
& conduct business in a manner Hn all cases, te landowners may retain an
satisfactory to imself +just discrimination area
area of notnot mor
more tan
tan 4 ect
ectar
ares
es if suc
suc
in te rate of wages paid to te skillful & landowner is cultivating suc area or will now
to te unskillful, to te te e=cient & cultivate it!
ine=cient!.
"! ' to presc
prescri
ribe
be rules
rules +tey
+tey become
become part
part of  ?rt
?rt 2! M#et
M#eter
ermi
mina
nati
tion
on of Land
Land Palue
alue Dor te
te
te contract of EENT. purpose of determining te cost of te land to
9! ' to select EE% & to decide wen to be transferred to te tentant(farmer, te value
enga
engage
ge tem
tem,, e*ce
e*cept
pt as restr
estric
icte
ted
d by of te land sall be e)uivalent to " & Q times
stat
statut
utee or vali
valid
d cont
contra
ract
ct,, at a wage
wage & te
te aver
averag
age
e arv
arves
estt of 9 norm
normal
al crop
crop yrs
yrs
under conditions agreeable to tem! immediately preceding te promulgation of >#
:! ' to tran
transf
sfer
er & disc
disca
arrge EE% in orde
orderr to "4 +<5T "$, $24".!
minimi0e e*penses & to insure stability of 
te business & even to close te business,  Te total cost of te land, including
provided it is done in good fait & due to interest at te rate of R per annum, sall be
causes beyond control! pd by te tenant in $C yrs of $C e)ual annual
amorti0ations!
?rt C! M'ules & 'egulations te #<LE & oter
govt agencies carged w/ te administration
administration & Hn case of default, te amorti0ations due
enforcement of tis 5ode or any of its parts sall be pd by te farmers@ cooperative in w/c
sall promulgate te necessary H''s! %uc ''s te defaulting tenant(farmer is a member, w/
sall become e;ective $C days after te coop
coop aving
aving a rigt
rigt of recou
recourse
rse agains
againstt
annou
nnoun nceme
cement
nt of teir
eir adopti
option
on in te
te im!
newspapers of gen! circulation!
 Te govt sall guarantee suc
amorti0ations w/ sares of stock in govt(owned
& (controlled corps!
?rt ! M?pplicability ?ll 's & benets granted to
workers under tis 5ode sall, e*cept as may ?rt $G! M5onditions of <wnersip No title to te
oterwise be provided erein, apply alike to all land ac)uired by te tenant(farmer under >#
9
 "4 sall be actually issued to im unless & Komestead
Komestead ?ct – gives
gives a needy
needy citi0en
citi0en a
until e as become a full(Aedged member of  piec
iece of land
land were ere e may build uild a
a duly recogni0ed farmers@ coop! modest ouse for imself & family & plant
wat
wat is necess
necessar
ary
y for subsis
subsisten
tence
ce & for
 Title to te land ac)uired
ac)uired pursuant to ># te satisfaction of life@s oter needs!
"4 or te Land 'eform >rogram of te 1ovt ( superior over te rigts of 
sall not be transferable e*cept by ereditary tenants
succession or to te 1ovt in accdance w/ te
prov
provis
isio
ions
ns of ># "4,
"4, te
te 5ode
5ode of ?gra
?grari
rian
an "! 'esid
esiden
enti
tial
al %ubd
%ubdiv
ivis
isio
ions
ns – notnot cons
consid
ider
ered
ed
'eforms & oter e*isting laws & regulations! agricult
agricultural
ural!! ?n agricultu
agricultural
ral leaseo
leaseold
ld cannot
cannot
be establised on land w/c as ceased to be
?rt
?rt $$!
$$! MHmp
MHmple
leme
mentntin
ing
g ?gen
?gencycy Te
Te #ept
#ept of  devoted to cultivation or farming bco0 of its
?gra
?grarrian 'eforform sal
all prom
promul
ulga
gate
te te
te conversion into a residential subd!
necessar
necessary y rules
rules & regula
regulations
tions to implemen
implementt
te provisions of tis 5apter! 9! Livestock, poultry & %wine raising lands6 %ec "
of '? C4
C4 w/c includes
includes priva
private
te agri
agri lands
lands
SLand for te landless – battlecry dramati0ing te devote
devotedd to commer
commerciaciall lives
livestoc
tock,
k, poultr
poultry
y &
increasingly urgent demand of te swine raising- in te denition of commercial
dispossessed for a plot of eart as teir place farms
farms-- is inval
invalid!
id! Tey
Tey areare cover
covered
ed by te
under te sun! agrarian reform prog of te %tate!
S5?'>
S5?'> Law – signed
signed by 5ory,
5ory, declari
declaring
ng full land Te
Te 1rea
1reates
testt 7less
7lessing
ingOT
OTe
e orst
orst 5rime-
5rime- –
ownersip in favor of te beneciaries of te Drederick Taylor
># "4!
( an inc
incrrease
eased
d outpu
outputt invar
invaria
iabl
bly
y give
givess more
more
%are
%are tenancy
tenancy – abolise
abolised,d, put te agricultu
agricultural
ral work to more men, & never in te istory
lease
leaseold
old sys in its stead
stead,, geare
geared d towar
towards
ds of te world as it more tan temporarily,
eventual ownersip of land by its tillers and
and ten
ten for
for only
only a very
very sor
sortt time
time,,
diminised by te number of men at work
5onsti ( %tate sall undertake an ?grarian 'eform
'eform in any trade
>rogram, and encourage & undertake te just
dist
distri
ribu
buti
tion
on of all
all agri
agri land
lands,
s, subj
subj to suc
suc
priorities & reasonable retention limits as te
5ongress may prescribe,

5ompensation sceme6 %ec $3 of 5?'>6 Title to Te 1reatest E*ploiter- – 7las <ple
all e*propriated properties sall be transferred
to te
te %ta
%tate onl
only upon
upon full
full paym
paymenentt of  ( unem
unemplploy
oyme
ment
nt is
is te
te grea
greate
test
st e*p
e*plo
loit
iter
er of 
of 
compensation of teir respective owners! labor! Bass unemployment tends to leave
te
te EE'
EE' all(
all(po
powe
werf
rful
ul and
and tete work
workerer
'etention
'etention Limits – provided for by '? C4 6  as defenseless
oterwise provided!!
provided!! no person may own/retain
directly/indirectly, any public/private agri land, Bore 5apital Beans Bore obs- – ?dam %mit
te
te si0e
si0e of w/c
w/c sal
salll vary
vary accd
accdgg to fact
factor
ors
s
governing a viable family(si0ed farm, suc as ( " kind
kinds
s of fun
funds
ds66 +$.
+$. te
te 'ev
'even
enue
ue – w/c
w/c is
is
commodity produced, terrain, infrastructure,
infrastructure, & over & above wat is necessary for te
soil fertility as determined by te >residential maint
maintena
enance
nce88 and +". te %tock
%tock – w/c is
?grarian 'eform 5ouncil +>?'5.! over
over & above
above sat
sat is necess
necessarary
y for te
EENT of teir masters!
9 ectares – may be awarded to eac cild of  ( Te
Te dema
demand
nd for
for to
tose
se wo
wo liv
live
e by wag
wages
es
te landowner, subj to te ; )ualications6 +$!.  necessarily increases w/ te increase of 
e is at least $C y/o, and +". e is actually te revenue & stock of every country and
tilling te land or directly managing te farm8 canno
cannott incre
increas
asee w/o it! Te increincreas
ase
e of 
>rovide
>rovided,d, tat landowner
landowners s wose
wose lands
lands ave revenue & stock is te increase
increase of national
been covered b ># "4 sall be allowed to keep wealt!
te area originally retained by tem
ter
tereueund
nder
er88 >rovid
ovided
ed furt
furte
err, tat
tat orig
orig ?n E*ploited 5lass- – ! 'eynato >uno
omestead grantees or direct compulsory eirs
wo still own te org omestead at te time of  ( <ver
<verse
seas
as work
worker
ers
s const
constit
itut
ute
e an e*pl
e*ploi
oite
ted
d
te approval of tis ?ct sall retain te same clas
class!
s! Tei
Teirr unfo
unfort
rtun
unat
atee cir
circums
cumsta
tanc
ncee
areas as long as te continue to cultivate said makes tem easy prey to avaricious EE's!
omestead!  Tey will work under subuman conditions
& accept salaries below te minimum!
Lands not covered
2R of Dilipinos are 7ased <verseas-> %tar
$! Lands obtained troug
oug omestead
patent6 '? C4
C4 5omp
5omprreen
eensi
sive
ve ?gra
?grari
rian
an 'efor
eform
m
>rogram

:
?im6 ? more e)uitable distribution & ownersip of  pysical redistribution of lands +production
land, w/ due regard to te rigts of landowners
to just compensation & to te ecological needs
of te nation
7asis6 te ' of farmers & regular farm workers,
wo are landless, to own directly or collectively
te lands tey till or, in te case of oter farm
workers, to receive a sare of te fruits tereof  9! ?gricultural land – land devoted to
 Te %tate6
( sall respect te ' of small landowners &
sall provide incentives for voluntary land(
saring
( sall recogni0e te ' of farmers, farm
workers & landowners, as well as
cooperatives & oter independent farmers
org, to participate in te planning, org, &
mgt of te program & sall provide
support to agriculture toug tec &
researc & nancial, production,
marketing & oter support services
( may resettle landless farmers & farm
workers in its own agricultural estates
( sall encourage te formation
maintenance of economic(si0ed family
farms to be constituted by indiv
beneciaries & small landowners
( sall protect te 's of subsistence
sermen to te preferential use of 
communal marine & sing resources bot
inland & o;sore
( sall provide support to suc sermen
tru appropriate tec & researc,
ade)uate nancial, production
marketing assistance
( sall protect o;sore sing grounds of 
subsistence sermen against foreign
intrusion! Diserworkers sall redeive a
 just sare from teir labor in te utili0ation
of marine & sing resources
( owners of agri land ave te oblig to
cultivate directly or tru labor admin te
lands tey own & tereby make te land
productive!
( %all provide incentives to landowners to
invest te proceeds of te agrarian reform
prog to promote industriali0ation, EENT &
privati0ation of pub sector enterprises
( Bay lease undeveloped lands of pub
domain to )ualied entities for te devt of  im, or by anoter person under a leaseold or
capital(intensive farms, traditional &
pioneering crops esp tose for e*port
+subj! to 's of beneciaries.
#enitions
$! ?grarian 'eform – te redistribution of  employed on a permanent basis by an
lands, regardless of crops/fruits produced,
to farmers & regular farm workers wo are
landless, irrespective of tenurial
arrangemt, to include te totality of  intermittent basis by an agricultural enterprise
factors & support services designed to lift
te economic status of te beneciaries
and all oter arrangemts alternative to te
or prot(saring, labor admin, distribution
of sares of stock.
"! ?griculture, ?gricultural Enterprise or
?gricultural ?ctivity – te cultivation of te
soil, planting of crops, growing of fruit
trees, incl! te arvesting of suc farm
products, & oter farm activities
agricultural activity, and N<T classied as
mineral, forest, residential, commercial or
industrial land
:! ?grarian #ispute – any controversy
relating to tenurial arrangements, weter
leaseold, tenancy, stewardsip or
oterwise, over lands devoted to agri
( including disputes
concerning farm workers assocs, or
representation of persons in negotiating,
*ing, maintaining, canging or seeking to
arrange terms of conditions of suc
tenurial arrangements
( including controversy
& relating to compensation of lands ac)uired
under tis ?ct & oter terms & conditions
of transfer of ownersip from landowners
to farm workers, tenants & oter agrarian
reform beneciaries
C! Hdle / ?bandoned Land – any agricultural land
not cultivated, tilled or developed to produce
any crop nor devoted to any specic economic
purpose continuously for a period of 9 yrs
& immediately prior to te receipt of notice of 
ac)uisition by te govt
( but does N<T include land tat
as become permanently or regularly devoted to
non(agricultural purposes
( does N<T include land w/c as
become unproductive by reason of force majeure
or D event
! Darmer – a natural person wose primary
liveliood is cultivation of land or te
production of agri crops eiter by imself, or
primarily w/ te assistance of is immediate
farm ouseold, weter te land is owned by
tenancy agreement
4! Darmworker – a netural person wo renders
service for value as an EE or laborer in an
agricultural enterprise or farm
3! 'egular Darmworker – a natural person wo is
agricultural enterprise or farm
2! %eason Darmworker – a natural person wo is
employed on a recurrent, periodic or
or farm
C
! 5ooperatives – orgs composed primarily of  sall be null & void! >rovided, tat tose
small agri producers, farmers, farmworkers or
oter agrarian reform beneciaries wo
voluntarily organi0e temselves for te
purpose of pooling land, uman, tecnological,
nancial or oter economic resources &
operated on te principle of one member, one
vote! + a juridical person may be a member of  >residental ?grarian 'eform 5ouncil +>?'5. – sall
a coop, w/ te same 's & duties as a natural
person!
%cope6 all public & private agricultural lands, incl!
oter lands of te pub domain suitable for
agriculture
$! ?ll alienable & disposable lands of te pub
domain devoted to or suitable for
agriculture
"! ?ll lands of te pub domain in e*cess to
te specic limits as determined by
5ongress
9! ?ll oter lands owned by te 1ovt devoted
to or suitable for agri
:! ?ll private lands devoted to or suitable for
agri regardless of te agri products
raised/can be raised tereon
%cedule of Hmplementation6 w/in $G yrs from
e;ectivity
'etention Limits6 no person may own or retain,
directly, any pub or private agricultural land,
te si0e of w/c sall vary accdg to factors
governing a viable family(si0ed farm
( landowner may retain only C ectares!
( 9 ectares6 eac cild of landowner, tat
is $Cy/o, and is actually tilling te land or
directly managing te farm
( landowners wose lands ave been
covered by ># "4 sall be allowed to keep
te area originally retained by tem
tereunder
( te original omestead grantees or direct
compulsory eirs wo still own te orig
omestead sall retain te same areas as
long as tey continue to cultivate said
omestead
( te ' to coose te area to be retained
belongs to te landowner!  Kowever6 +a.
in case te area selected by landowner is
tenanted, te tenant sall ave te option
weter to remain terein, be a
beneciary of te same, or anoter agri
land w/ similar/comparable features8 +b. in
case te tenant cooses to remain in te
retained ares, e sall be considered a
leaseolder & sall lose is ' as a
leaseolder to te land retained by te
landowner! Te tenant must e*ercise tis
option w/in $ yr fr te time te landowner
manifests is coice of te area for
retention!
( Upon ?ct@s e;ectivity, any sale,
disposition, lease, mgt contract or transfer
of position of private lands e*ecuted by
te orig landowner in violation of tis ?ct
e*ecuted prior to tis ?ct sall be valid
only wen registered w te 'eg of #eeds
w/in 9 monts after e;ectivity!
provide te implementing rules
( upon recommendation by te
>rovincial ?grarian 'eform coordinating
5ommittee, may declare certain
provinces/regions as priority land reform areas
Bultinational 5orps – all lands of te pub domain
leased, eld, or possessed by multi corps or
assocs, and oter lands owned by te govt, or
govt(owned/(controlled corps, assocs,
institutions or entities, devoted to e*isting &
operational agribusiness or agro(industrial
enterprises, operated by multicorps sall be
programmed for ac)uisition & distribution
immediately upon e=ctivity
?ncestral Lands – sall include, but not limited to,
lands in te actual, continuous & open
possession & occupation of te community and
its members, provided tat te Torrens %ystem
sall be respected
( sall be protected to ensure teir
economic, social & cultural well(being
( in te autonomous regions, te respective
legislature may enact teir own laws on
ancestral domain subj to te provisions of 
te 5onsti, tis ?ct and oter national
laws!
E*emptions & E*clusions
$! Lands actually, directly & e*clusively used
for parks, wildlife, forest reserves,
reforestation, s sanctuaries and
breeding grounds, waterseds and
mangroves
"! >rivate lands actually, directly &
e*clusively used for prawn farms &
sponds +provided tat said prawn farms
& sponds ave not been distributed and
5ert of Land <wnersip ?ward issued to
?'>!
9! Lands actually, directly & e*clusively used
& found to be necessary for national
defense, scool sites & campuses, incl
e*perimental farm stations operated by
pub/private scools for educational
purposes, seeds and seedlings researc
and pilot production center, curc sites &
convents apputenat terety, mos)ue sites
& Hslamic centers appurtenant tereto,
communal burial grounds & cemeteries,
penal colonies & penal farms actually
worked by inmates, got & private researc
& )uarantine centers and all lands w/ $3R

 slope and over,  e*cept tose already
developed
>rocedure for ?c)uisition of >rivate Lands
$! ?fter aving identied te land, te
landowners & beneciaries, #?' sall
send its notice to ac)uire te land to te
owners8
"! w/in 9G days from date of receipt,
landowners sall inform te #?' of is
acceptance/rejection of te o;er8
a! if landowner accepts te o;er, te
L7> sall pay te landowner of te
purcase price of te land w/in 9G
days after e e*ecutes & delivers a
deed of transfer in favor of te
1ovt and surrenders te 5ert of 
 Title
b! in case of rejection or failure to
reply, #?' sall conduct summary
admin proceedings to determine
compensation of te land
9! upon receipt of te landowner of te
payment, or in case of rejection or no
response fr te landowner, upon te
deposit w/ an accessible bank or te
compensation, te #?' sall take
immediate possession of te land & sall
re)uest te 'egister of #eeds to issue a
 T5T in te name of te '>!
:! ?ny party wo disagrees w/ te decision
may bring te matter to te court
#etermination of ust 5ompensation
( cost of ac)uisition of te land
( current value of like properties,
( its nature, actual used and income
( te sworn valuation by te owner,
( ta* declarations
( assessment made by te govt assessors
Hncentives for voluntary o;ers of sale – addt@l CR
cas
>riority of Vualied 7eneciaries
$! ?gricultural lessees & sare tenants
"! 'egular farmworkers
9! %easonal farmworkers
:! <ter farm workers
C! ?ctual tillers/occupants of public lands
! 5ollective or cooperatives of te above
beneciaries
4! <ters directly working on te land
S>rovided6 cildren of landowners wo are
)ualied sall be given preference in te
distribution of te land of teir parents
S>rovided furter6 actual tenant(tillers in te
landolding sall not be ejected/removed
terefrom!
 Transferability of ?c)uired lands by beneciaries –
may not be sold, transferred or conveyed 
e*cept tru ereditary succession, or to te
govt, or to te L7>, or to oter )ualied
beneciaries for $G yrs
S>rovided, tat te cildren/spouse of te
transferor sall ave a ' to repurcase te
land fr te govt/L7> w/in " yrs
%tanding crops at te time of ac)uisition – sall
be retained by te landowner, #ar sall give a
reasonable time to arvest te same
5orporate Darms
( in case land cannot be divided directly,
sall be owned collectively by te worker(
beneciaries wo sall form a workers
cooperative or assoc w/c will deal w/ te
corp
( indiv members of te coop sall be
provided w/ omelots or small farmlots for
teir family use taken fr te land owned by
te coop
>roduction(saring ( pending nal land transfer
%upport %ervices
$! irrigation facilities
"! infrastructure devt & pub works projects
9! govt subsidies for te use of irrig facilities
'? 24GG – ?ct %trengtening te 5?'>, e*tending
te ac)uisition & distribution of all agricultural
lands, instituting necessary reforms, amending
for te purpose certain provisions of '? C4
( %tate sall protect Dilipino enterprises
against unfair foreign competition & trade
practices
( %tate recogni0es tat tere is not enoug
agricultural land to be divided &
distributed to eac farmer & regular
farmworker so tat eac one can own is
economic(si0e family farm!
( ?nswer6 simultaneous industriali0ation
aimed at developing a self(reliant &
independent national economy e;ectively
controlled by Dilipinos
( %tate may, in te interest of national
welfare or defense, establis & operate
vital industries
( Hmplementation of te prog sall be
community(based
( %tate sall recogni0e & enforce te 's of 
rural women to own & control land
4
 ( %tate sall provide incentives to
landowners to invest te proceeds of te
agrarian reform prog to promote
industriali0ation, EENT & privati0ation of  $234 kasulatan, te lands were sold by te
te pub sector enterprises
?dded #enition
$! 'ural women – women wo are engaged
directly/indirectly in farming and/or sing
as teir source of liveliood, weter paid
or unpaid, regular or seasonal, or in food
preparation, managing te ouseold,
caring for te cildren, & oter similar
activities
"! Landless beneciary – one wo owns less
tan 9 ectares of agri land
?dded E*ception to 'etention Limits
( >rovincial, city & mun govt units ac)uiring
private agri lands by e*propriation to be used
for actual, direct & e*clusive pub purposes,
suc as roads & bridges, pub markets, scool
sites, resettlement sites, local govt facilities,
pub parks & brgy pla0as or s)uares consistent
sall not be subj to te C(ectare retention
limit
<rder of >riority
( 9 ectares eac to te $st " beneciaries
( only wen tese beneciaries ave rcvd 9
ectares eac, sall te remaining portion
of te landolding, if any, be distributed to
oter beneciaries
>ayment by 7eneciaries – payable to L7> in 9G
annual amorti0ations at R interest per annum
%upport sall be e*tended e)ually to women &
men beneciaries
 Landico v %ia
Dacts6
• 9 parcels of land were originally owned by
te ?ragons, tenanted by te late ?rcadio
Landico from $2:2 until is deat in $24",
afterwic, is tenancy rigts were succeded
by is son, petitioner Drancisco Landico +te
oter petitioners were 7uenaventura
+Drancisco@s son., and Dederico +Drancisco@s
broter., elped im cultivate te land
• in $24, Drancisco voluntarily surrendered is
tenancy 's over te land to te ?ragons
troug a notari0ed kasulatan- for a
consideration of >$,GGG, but petitioners
continued cultivating te land until $234
wen Drancisco e*ecuted anoter notari0ed
kasulatan- tru w/c e surrendered is
tenancy rigts for a consideration of >9,GGG!
• <n te same day as te e*ecution of te
?ragons for >CG,GGG to respondent Deli* %ia,
wo in turn converted te same to a
residential subd w/o a #?' clearance and
ejected te petitioners terefrom!
• >eitioners led a protest before te #?'
alleging tat tey are te tenants of te
lands and claimed tat tey are entitled to a
disturbance compensation! Tey alleged tat
tey were fooled into signing over teir
tenancy rigts tru te macinations of te
?ragons!
•  Te respondents in teir answer, denied suc
allegation and added tat te petitioners are
barred by estoppel, laces and prescription
Hssue $6 <N petitioners are tenants of te land
Keld6 ? tenant is dened as a person wo, imself 
and w/ te aid available from w/in is
immediate farm ouseold, cultivates te land
belonging to, or possessed by anoter, w/ te
latter@s consent for purposes of production,
saring te produce w/ te landolder under
te sare tenancy system, or paying to te
landolder a price certain or ascertainable in
produce or in money or bot, under te
leaseold tenancy system
Dor a tenancy relationsip to e*ist, all of te ; 
essential re)uisites must be present6
$. te parties are te landowner & te tenant
". te subj matter is agricultural land
9. tere is consent bet te parties
:. te purpose is agricultural production
C. tere is personal cultivation by te tenant
. tere is saring of te arvests bet te
parties
Under te denition, only Drancisco possesses
te re)uisites of a tenant! >etitioners
Dederico and 7uenaventura are not tenants
because consent +F9. by te landowners is
lacking! Tey are merely farm elpers of 
Drancisco as part of is immediate farm
ouseold! Tere was also no evidence to
sow tat tey gave a sare of teir
arvest to te ?ragons +F.!
Hssue "6 <N te respondents took advantage of 
Drancisco@s old age & illiteracy and employed
fraudulent scemes in order to deceive im
into signing te Wasulatans
Keld6 ?s te legal tenant of te lands, Drancisco
ad voluntarily surrendered is tenancy rigts
wen e knowingly & freely e*ecuted te $234
Wasulatan! Tere was no sowing of foul play,
because te Wasulatan was in Dilipino, a
language spoken & understood by Drancisco
and was couced in plain and clear terms!
%uc kasulatan was also duly notari0ed and
are considered as public documents e*ecuted
3
 w/ all te legal formalities wic a;ord it te
legal presumption of regularity and legality
abent full, clear and convincing evidence to
te contrary!
Dinal ruling6 >etitioners ave no cause of action
and te same as prescribed!
 >ortugue0 v 1%H% Damily 7ank and 5?
Dacts6
• >etitioner was employed by te
respondent bank as utility clerk in $24$!
%ince ten, e ad been promoted
repeatedly up to $223 wen e was
temporarily assigned as caretaker of te
bank and designated as ?cting ?sst! P>
and <H5 in une of $223!
• 'espondent bank is a banking institution
originally known as 'oyal %avings 7ank! Hn
$239(3:, it underwent serious li)uidity
problems and was placed under
receiversip by te 5entral 7ank, wic
ordered its closure in uly of $23:! ?fter "
monts, te respondent bank was
reopened under te control & mgt of  separation was clearly establised, w/c te
5omsavings 7ank!
• Hn $234, te 1%H% ac)uired te interest of  of te voluntary retirement program! ?nd
te respondent bank and took over te
control & mgt of te bank and renamed it
as 1%H% Damily %avings 7ank!
•  Te designation of te petitioner as <H5 &
caretaker was recalled, owever is
appointment as ?cting ?sst P> was
retained!
• Hn line w/ its policy to attain nancial
stability, te respondent bank adopted
measures, one of w/c is an early
retirement program!
• Hn april of "GG$, petitioner opted to avail
imself of tis retirement package,
+supposedly under protest. & received te
amt of >$,9:"B as retirement pay!
• Hn july "GG", petitioner led a complaint
against resp bank for constructive
dismissal & underpayment of wages, $9 t
mont pay & retirement benets before
te Labor ?rbiter! Ke alleged
discrimination & unfair treatment, and
intense pressure on te part of te resp
bank forced im to retire at te prime of  conformity wit te national interest8
is life
Hssue $6 <N tere was constructive dismissal
Keld6 No!
5onstructive dismissal – )uitting because
continued EENT is rendered impossible,
unreasonable or unlikely, as an o;er involving
a demotion in rank & a dimunition in pay! Bay
also mean an act of clear discrimination,
insensibility or disdain by an EE' may become
so unbearable on te part of te EE so as to
foreclose any coice on is part e*cept to
resign
>etitioner claims e was discriminated against as
new ires were given iger salaries tan e
was receiving!
#iscrimination – failure to treat all persons
e)ually wen no reasonable distinction can be
found bet tose favored & tose not favored! Ht
must be clearly establised tat +$. tere is no
reasonable distinction for classication tat
can be obtained bet persons belonging to te
same class, and +". persons belonging to te
same class ave not been treated alike
>etitioner failed to establised tat e possessed
te same skills, competencies & e*pertise as
tose newly ired to eliminate te possibility of 
substantial distinction tat may warrant
une)ual treatment bet tem!
>etitioner contends tat in cases of constructive
dismissal, te burden of proof rests on te EE'
to sow tat te EE was dismissed on a valid &
 just cause! 7ut tis legal principle presupposes
tat tere is indeed an involuntary separation
from EENT & te facts attendant to suc forced
petitioner failed to do! Ht was im wo availed
absent te sowing of duress, te presumption
is tat it was done by im voluntarily!
ile te state promotes te utmost protection of 
labor against capital, it does not mean tat te
working class is upeld in all labor dispute! Te
law also recogni0es te rigts of management!
>'E(EB>L<JBENT
?rt $"! Ht is te policy of te %tate6
$! to promote and maintain a state of full
employment troug improved manpower
training, allocation and utili0ation8
"! to protect every citi0en desiring to work
locally/overseas by securing for im te
best possible terms and condition of 
employment8
9! to facilitate a free coice of available
employment by persons seeking work in
:! to facilitate & regulate te movement of 
workers in conformity w/ te national
interest8
C! to regulate te employment of aliens,
including te establisment of a
registration and/or work permit system8
! to strengten te network of public
employment o=ces and rationali0e te
participation of te private sector in te
recruitment and placement of workers,
locally and overseas, to serve national
development objectives8
2
 4! to insure careful selection of Dilipino
workers for overseas employment in order
to protect te good name of te >K
abroad!
 Te #<LE
( by ?dministrative 5ode of $234 +E< "2".
( te primary policy(making, programming,
coordinating and administrative entity of 
te E*ecutive branc of te govt in te
eld of labor and employment
Hts >rimary responsibilities6
$! Te promotion of gainful EENT
opportunities and te optimi0ation of te
devt & utili0ation of te country@s
manpower resources8
"! Te advancement of workers@ welfare by
providing for just and umane working
conditions and terms of EENT8
9! Te maintenance of industrial peace by
promoting armonious, e)uitable and
stable EENT, relations tat assure
protection for te 's of all concerned
parties!
'E5'UHTBENT & >L?5EBENT <D <'WE'%
?rt $9! #enitions
orker – any member of te labor force weter
employed or unemployed!
'ecruitment & placement – any act of canvassing,
enlisting, contracting, transporting, utili0ing,
iring, or procuring workers and includes
referrals, contract services, promising or
advertising for EENT, locally or abroad,
weter for prot or not6  provided, tat any
person or entity w/c, in any manner, o;ers or
promises for a fee EENT to "/more persons
sall be deemed engaged in recruitment &
placement
>rivate fee(carging EEnt ?gency – any person/
entity engaged in te recruitment & placement
of workers for a fee w/c is carged
directly/indirectly from te workers or
employers or bot
License – a document issued by te #<LE
autori0ing a person/entity to operate a
private EENT agency
>rivate recruitment entity – any person/assoc
engaged in te recruitment & placement of  and to secure te best possible terms &
workers, locally/overseas witout carging,
directly/indirectly any fee from te workers or
employers!
?utority – a document issued by te #<LE
autori0ing a person/assoc to engage in
recruitment & placement activities as a private
recruitment entity
%eaman – any person employed in a vessel
engaged in maritime navigation
<verseas EENT – EENT of a worker outside te >K
Emigrant – any person, worker or oterwise, wo
emigrates to a foreign country by virtue of an
immigrant visa or resident permit to its
e)uivalent in te country of destination
?rt $:! EB>L<JBENT >'<B<TH<N
 Te %ec of Labor sall ave te power &
autority6
$! to organi0e & establis new EENT o=ces
in addition to e*isting EENT o=ces under
te #<LE as te need arises8
"! to organi0e & establis a nationwide job
clearance & information system to inform
applicants registering w/ a particular EENT
o=ce of job opportunities in oter parts of 
te country as well as job opportunities
abroad8
9! to develop & organi0e a program tat will
facilitate occupational industrial and
geograpical mobility of labor and provide
assistance in te relocation of workers
from one area to anoter8 and
:! to re)uire any person, establisment, org,
or institution to submit suc EENT
information as may be prescribed by te
%ec of Labor!
7ureau of Local Employment +7LE. – assigned te
e;ective allocation of manpower resources in
local
> <verseas Employment ?dministration +><E?. –
for overseas employment
?rt $C! 7U'E?U <D EB>L<JBENT %E'PH5E% +now
7LE.
( primarily responsible for developing &
monitoring a compreensive EENT
program!
>owers & #uties6
$! To formulate & develop plans & programs
to implement te EENT promotion
objectives of tis Title8
"! To establis & maintain a registration
and/or licensing system to regulate private
sector participation in te recruitment &
placement of workers, locally & overseas,
conditions of EENT for Dilipino contract
workers and compliance terewit under
suc rules & regulations as may be issued
by te #<LE8
9! To formulate & develop EENT programs
designed to benet disadvantaged groups
& communities8
$G
 :! To establis & maintain a registration as olding of jobfairs,
and/or work permit system to regulate te liveliood and self(
EENT of aliens8 employment ba0aars
C! To develop a labor market information ( %pecial credit assistance for
system in aid of proper manpower and placed overseas workers
development planning8 ( %pecial program for EENT of 
! To develop a responsible vocational students +%>E%. during
guidance & testing system in aid of proper summer or semestral breaks
uman resources allocation8 and ( ork appreciation seminars
4! To maintain a central registry of skills, & conferences and
e*cept seamen ( Kiring of workers in
infrastructure projects
+KH>.
<riginal & E*clusive urisdiction of te • 'a 33C – created KH>, a program w/c
regional o=ces of #<LE re)uires te #>K and private contractors
to ire 9GR of skilled and CGR unskilled
( over all matters/cases involving EE(EE' labor re)uirements from te area were
relations including money claims, arising te project is being undertaken
out of or by virtue of any law or contracts
involving Dilipino workers for overseas
EENT  e*cept seamen6 Provided, tet te ?rt $! >'HP?TE 'E5'UHTBENT6
7ureau of Employment %ervices +7E%.
+now 7LE. may, in te case of te N5', 1'6 No person/entity oter tan te public EENT
e*ercise suc power, wenever te #<LE o=ces, sall engage in te recruitment &
deems it appropriate! placement of workers!
 Te decisions of te regional o=ces of te 6 E*ceptions
7E% if so autori0ed by te %ec of #<LE sall
be appealable to te NL'5 upon te same $! >ublic EEnt o=ces
grounds provided in ?rt "99 ereof! "! >rivate recruitment entities
9! >rivate EENT agencies
 Te decisions of te NL'5 sall be nal & :! %ipping or manning agents or
unappealable! representatives
C! Te ><E?
Binister of Labor – as te power to impose & ! 5onstruction contractors if autori0ed to
collect fees, based on rates recommended by operate by #<LE and te 5onstruction
te 7E%! %uc fees sall be deposited in te Hndustry ?utority
National Treasury as a special acct of te 4! Bembers of te diplomatic corps altoug
1eneral Dund, for te promotion of te irings done by tem ave to be
objectives of te 7E%, subj to te provisions of  processed troug te ><E?
%ec :G of ># $$44! 3! <ter persons/entities as may be
autori0ed by te %ec of #<LE
• ># 3CG – replaced 7E% w/ 7LE, and
created ><E?
• ?< $3 – made licensing of local
recruitment agencies and te issuance of  ?rt $4! <PE'%E?% EB>L<JBENT #EPT 7<?'#
work permits to non(resident aliens and
EENT registration certicates to resident ><E? – as taken over te functions of te
aliens a function of te regional o=ces of  <verseas Employment #evelopment 7oard
#<LE +<E#7. and te National %eamen 7oard +N%7.
• '? 342C – re)uired te establisment of a
<D – a Dilipino worker wo is to be engaged, is
>ublic Employment %ervice <=ce +>E%<.
engaged or as been engaged in a
in capital towns, cities and oter strategic
renumenerated activity in a country of wic
areas
e/see is not a legal resident
o >E%< ( serves as EENT service &
information center " 5lassications
( 'egularly obtains lists of job
vacancies from EE'%, $! Land(based – contract workers oter tan
publici0es tem, invites and a seaman including workers ingaged in
evaluates applicants, and o;sore activities wose occupation
refers tem for probable re)uires tat majority of is
iring working/gainful rs are spent on land
( >rovides training and "! %ea(based – tose employed in a vessel
educational guidance and engaged in maritime navigation
EENT counseling services
( ?lso renders special >rincipal Dunctions of te ><E?
services to te public suc
$$
 $! Dormulation, implementation and
monitoring of overseas employment of   judgment +must be brougt before te
Dilipino workers8
"! >rotection of teir rigts to fair and
e)uitable employment practices8
9! #eployment of Dilipino workers troug
govt(to(govt iring
'egulatory Dunctions
$! 'egulate private sector participation in te
recruitment & overseas placement of  "! #rug addiction/possession or tra=cking of
workers troug its licensing and
registration system8
"! Dormulate & implement, in coordination w/
appropriate entities concerned, wen
necessary, a system for promoting and
monitoring te overseas EEnt of Dilipino
workers taking into consideration teir
welfare and te domestic manpower
re)uirements8
9! Hnform migrant workers not only of teir
rigts as workers but also of teir rigts as
uman beings8
:! Hnstruct and guide te workers ow to
assert teir rigts and provide te
available mecanism to redress violation
of teir rigts8
C! Hn te recruitment & placement of workers
to service te re)uirements for trained
and competent Dilipino workers of foreign
govts and teir instrumentalities, and suc
oter employers as public interest may
re)uire, deploy only to countries6
a! ere te >K as concluded
7ilateral labor agreements or
arrangements8
b! <bserving and/or complying w/ te
international laws and standards of  practices of te ost country and
migrant workers8
c! 1uaranteeing to protect te rigts
of Dilipino migrant workers!
?djudicatory Dunctions
$! ?dministrative cases involving violations
of licensing rules & regulations and
registration of recruitment and EEnt
agencies/entities8 and
"! #isciplinary action cases and oter special
cases w/c are administrative in caracter,
involving employers, principals,
contracting partners and Dilipino migrant
workers!
 urisdiction of ><E?
$! all cases w/c are administrative in
caracter, involving or arising out of  prescribed pd sall be, or caused to be,
violations of rules & regulations relating to
licensing & registration of recruitment and
employment agencies/entities8 and
"! disciplinary action cases and oter special
cases w/c are administrative in caracter,
involving EE'%, principals, contracting
partners and Dilipino migrant workers
9! N< jurisdiction to enforce foreign
regular courts.! ><E? is an administrative
+not a court., e*ercising adjudicatory or
)uasi(judicial functions
:! N< jurisdiction over torts
1rounds for #isciplinary ?ction
$! 5ommission of a felony punisable by >
laws or by te laws of te ost country8
 
proibited drugs8
9! #esertion or abandonment8
:! #runkenness, esp were te laws of te
ost country proibit into*icating drinks8
C! 1ambling, esp were te laws of te ost
country proibits te same8
! Hnitiating/joining a strike or work stoppage
were telaws of te ost country proibit
strikes or similar actions8
4! 5reating trouble at te worksite or in te
vessel8
3! Embe00lement of company funds or of 
moneys and properties of a fellow worker
entrusted for delivery to kins or relatives
in te >K8
2! Teft/robbery8
$G! >rostitution8
$$! Pandalism or destroying company
property8
$"! 1unrunning or possession of deadly
weapons8
$9! Unjust refusal to depart for te worksite
after all employment and travel
documents ave been duly approved by
te approp govt agency/ies8 and
$:! Piolation/s of te laws and sacred
unjustied breac of govt(approved EENT
contract by a worker
5<B>'<BH%E ?1'EEBENT
(consistent w/ te policy encouraging amicable
settlement of labor disputes %ec $G of '? 3G:"
allows resolution by compromise of cases led w/
te NL'5
( any compromise agreement on money claims
inclusive of damages sall be paid w/in : monts
from te approval of te settlement
>enalties for Non(compliance of te
mandatory period for resolution of cases
$! Te salary of suc o=cial wo fails to
render is decision/resolution w/in te
witeld until suc o=cial complies
terewit8
"! %uspension for not more tan 2G days8
or
9! #ismissal w/ dis)ualication to old
any appointive public o=ce for C yrs
$"
EE'/EE 'elations 5ases
 Billares & Lagda v NL'56 %56 seafarers are
contractual EE%
>remature Termination of 5ontract
Hf EE is terminated before end of contract w/o just
cause, EE'% will be ordered to pay teir
salaries corresponding to te une*pired portion
of teir EENT contract
>retermination Under '? 3G:"
? worker dismissed from overseas EENT w/o just
cause as dened by law/contract is entitled to
full reimbursement of is placement fee w/
interest at $"R per annum, plus te salary for
te une*pired portion of teir EENT contract!
#ue >rocess re)uired to terminate employment
E*6 in case of seamen – must be given written
notice of te carges against im, and
a;orded a formal investigation were e can
defend imself or tru a representative before
e can be dismissed & disembarked! Te EE'
is re)uired to furnis im w/ " notices6 +$.
written notice of carge8 and +". written notice
of dismissal
5ontracted but not #eployed6 >erfected 5ontract
#eat benets of %eafarers
( entitled to deat and oter benets under
w/c ever is iger +foreign law or > law.
( entitled to deat benets if deat occurs
during te term of is contract of  – develops liveliood programs for te
employment, even if deat is not work(
related   deat is caused by teir own
doing
#isability – loss or impairment of a pysical or
mental function resulting from injury/sickness
>ermanent disability – te inability of a worker to
perform is job for more tan $"G days,
regardless of <N e loses te use of any part
of is body
 Total #isability – disablement of an EE to earn
wages in te same kind of work of similar
nature tat e was trained for or accustomed
to perform, or any kind of work w/c a person of  #<LE8 and
is mentality and attainments could do! Ht does
not mean absolute elplessness!
Hn disability compensation, it is not te injury w/c
is compensated, but rater it is te incapacity
to work resulting in te impairment of one@s
earning capacity
#isability benets by seamen – a matter
governed not only by medical ndings but by
law & contract
( sall be paid beginning on te $ st day of 
suc disability! Hf caused by an injury/sickness
it sall not be paid longer tan $"G consec
days  e*cept were suc injury/sickness still
re)uires medical attendance beyond $"G days
but not to e*ceed ":G days from onset of 
disability in w/c case benet for temporary
total disability sall be paid!
Hn case of di;ering medical assessment
a!. wen a seafarer sustains a work(related
illness/injury wile on board, is
tness/untness to work sall be
determined by te company(designated
pysician!
b!. Hf te pysician appointed by te seafarer
disagrees w/ te company(designated
pysician@s assessment, te opinion of a
9rd  doctor may be agreed jointly bet te
EE' and te seafarer to be te decision
nal and binding on tem
?gencies 1iven te #uty to promote te welfare
& rigts of migrant workers6
$! #D?
"! #<LE
9! ><E?
:! <? – <verseas orkers elfare
?dministration – provides social & welfare
services including insurance coverage,
legal assistance, placement assistance
and remittance services to Dilipino
overseas workers! Under '?3G:", it sall
provide te Dilipino migrant worker & is
faily assistance in te enforcement of 
contractual obligs by agencies, entities
and/or teir principals8
C! '>B ( 'e(>lacement and Bonitoring 5enter
returning workers to reintegrate te
returning migrant workers to te >
society8
! NL'5 – tasked w/ te
settlement/adjudication of labor disputes
?rt $36 7?N <N #H'E5T KH'HN1
1'6 #irect iring of Dilipino workers for overseas
EENT is not allowed
 E*ceptions6
$! Bembers of #iplomatic corps8
"! Hnternational organi0ations8
9! <ter employers as may be allowed by
:! Name ires – individual workers wo are
able to secure contracts for overseas EENT
on teir own e;orts and representations
w/o assistance/participation of any agency!
 Teir iring noneteless, sall pass
troug te ><E? for processing purposes
'ationale of te >roibition
$! To assure te best possible terms &
conditions of work to te EE8 and
"! To assure te foreign EE' tat e ires
only )ualied Dilipino workers
?rt $26 5<BBH%%H<N <N DHLH>HN< <PE'%E?%
$9
5D< – attaced to te #D?8 replaced te <=ce of  C! 5onstruction contractors w/ a duly issued
Emigrant ?;airs!
( assists in te formulation of policies
a;ecting Dilipinos overseas and formulates
an integrated program tat promotes te
welfare of Dilipinos overseas
?rt "$! D<'EH1N %E'PH5E '<LE ?N#
>?'TH5H>?TH<N
( necessary to monitor te status of <Ds
in teir respective areas of assignment
and insure tat tey are not e*ploited or
abused by teir foreign principal EE'%
?rt ""! B?N#?T<'J 'EBHTT?NE <D D<'EH1N
EI5K?N1E E?'NHN1%
( ?ll <Ds are re)uired to remit a portion of teir
foreign e*cange earnings ranging from CGR (
3GR depending on te worker@s kind of job, to
teir families, dependents, and/or
beneciaries!
%eamen/Bariners – 3GR
orkers for Dilipino 5ontractors & 5onstruction
companies – 4GR
>rofessionals wose EENT contract provide for
lodging facilities – 4GR
>rofessionals w/o 7oard & Lodging – CGR
#omestic and oter service workers – CGR
 E*ceptions to Bandatory 'emittance
$! Dil servicemen working in U% military
installations8
"! ere te worker@s immediate family
members, dependents, or beneciaries are
residing w/ im abroad8
9! Hmmigrants and Dil professionals and EEs
working w/ UN agencies or speciali0ed
bodies
E;ects of Dailure to 'emit
$! orkers wo fail to comply w/ te
mandatory remittance re)ment sall be
suspended/e*cluded from te list of  not
eligible workers for overseas EENT!
%ubse)uent violations sall warrant is
repatriation!
"! EE'% wo fail to comply sall be e*cluded
from te overseas EENT program! >rivate
EENT agencies/entities sall face
cancellation or revocation of teir licenses
or autority to recruit, w/o prejudice to
oter liabilities under e*isting laws and
regulations
5K "6 'E1UL?TH<N <D 'E5'UHTBENT & derogatory records, suc as but not
>L?5EBENT ?5THPHTHE%
?rt "C6 >'HP?TE %E5T<' >?'TH5H>?TH<N HN TKE
'E5'UHTBENT & >L?5EBENT <D <'WE'%
>rivate %ectors tat can participate
$! >rivate EENT agencies8
"! >rivate recruitment agencies8
9! %ipping or manning agencies8
:! %uc oter persons as may be autori0ed
by te %ec of #<LE8 and
autority to operate private recruitment
entities
Vualications for >articipation
$! 5iti0ensip re)uirement
a! Dilipino citi0ens8 or
b! 5orporations, partnersips or
entities at least 4CR of te
autori0ed and voting capital stock
of w/c is owned & controlled by
Dilipino citi0ens!
"! 5apitali0ation
a! >rivate EENT agency for local EENT
i! Dor single proprietorsip or
partnersip – minimum net
wort of "GGk pesos
ii! Dor corporations – a
minimum paid up capital of 
Cook pesos
b! >rivate recruitment or manning
agency for overseas EENT
i! Dor single proprietorsip or
partnersip – >"B minimum
capital
ii! Dor corps – >"B minimum
paid up capital, >rovided,
tat tose w/ e*isting
licenses sall, w/in : yrs
from e;ectivity ereof,
increase teir capitali0ation
or paid(up capital, as te
case may be, to >"B at te
rate of "CGW every yr!
9! Tose not oterwise dis)ualied by law or
oter govt regulations to engage in te
recruitment & placement of workers for
overseas EENT
#is)ualied from 'ecruitment & >lacement of 
orkers for <verseas EEnt weter for prot or
$! Travel agencies & sales agencies of airline
companies8
"! <=cers/members of te board of any corp
or members in a partnersip engaged in
te business of a travel agency8
9! 5orps & partnersips, wen any of its
o=cers, members of te board or
partners, is also an o=cer, member of te
board or partner of a corp or partnersip
engaged in te business of a travel agency
+interlocking o=cers.
:! >ersons, partnersips or corps wic ave
limited to6
a! Tose certied to ave derogatory
record/info by te N7H or by te
?nti(illegal 'ecruitment 7ranc of 
te ><E?8
b! Tose against wom probable
cause or prima facie nding of guilt
for illegal recruitment or oter
related cases e*ists8
c! Tose convicted of cases and/or
crimes involving moral turpitude8
$:
 d! Tose agencies wose licenses
ave been previously cancelled or
revoked by ><E? for violation of '?
3G:", ># ::" as amended and
teir H'' as well as te Labor
5ode@s H''
e! <=cials/EE% of te #<LE or oter
govt agencies directly involved in
overseas EENT program and teir
relatives w/in te : t degree of  illegally collected fees
consanguinity or a=nity8 and
f! Tose wose License ave been
previously cancelled o revoked
?rt "26 N<N(T'?N%DE'?7HLHTJ <D LH5EN%E
?UTK<'HTJ
$! Ht may be used only b te one in wose
favor it was issued8 ence, it cannot be
assigned, conveyed or transferred to any
oter person/entity!
"! Ht must be used only in te place stated in
te license! Tus, could only undertake
recruitment & placement activities in te
region were te license was granted!
9! Te recruitment & placement activities
must be undertaken at teir autori0ed
o=cial addresses!
:! >rovincial recruitment and/or job fairs may
be allowed only wen autori0ed by ><E?
in writing!
S 5ange of ownersip of single proprietorsip
licensed to engage in overseas EENT sall
cause te automatic revocation of te license!
?rt 9G6 7<N#%
 Te %ec of Labor sall promulgate a scedule of  secure a license or autority +false
fees for te registration of all applicants for
license or autority!
?rt 9$! 7<N#%
?ll applicants for license/autority sall post suc
cas and surety bonds as determined by te
%ec of Labor including escrow deposits!
>urposes6
$! To guarantee compliance w/ prescribed
recruitment procedures, rules & ! To engage in te recruitment/placement of
regulations, and terms & conditions of   jobs armful to public ealt, morality or
EENT8 and
"! To ensure prompt & e;ective recourse
against suc companies wen eld liable
for applicants/workers@ claim
E*emption from 1arnisment
• 5as bond led by applicants for
license/autority is not subj to
garnisment by a judgment creditor of te
agency!
• %ould te bond/deposit in escrow or any
part tereof be garnised, te same
sould be replenised by te agency w/in
$C days from notice from te ><E?! Dailure
to replenis te same w/in te said pd
sall cause te suspension of te license
Note6 ><E? as te power to enforce liability
under cas & surety bonds!
?rt 9"6 DEE% T< 7E >?H# 7J <'WE'%
•  Te applicant can be carged w/ fees only
after e as obtained EENT or as actually
commenced EENT
• Dees paid sall always be covered w/ te
approp receipt clearly sowing te amount
paid!
><E? as te power to6
$! %uspend/cancel te license8 and
"! <rder te refund/reimbursement of suc
>roibition on 5arging Dees
$! >lacement fees cannot be collected from a
ired worker until e as signed te EENT
contract & sall be covered by receipts
clearly sowing te amt paid
"! Banning agencies sall not carge any fee
from seafarer(applicants for its recruitment
& placement services! ?ll e*penses for
iring seamen sall be souldered by
foreign sipping principals!
9! No oter fees/carges, including
processing fees sall be imposed against
any worker!
?rt 9: & %ection  '? 3G:"6 >'<KH7HTE#
>'?5TH5E%6
Ht sall be unlawful for any indiv, entity, licensee
or older of autority6
$! To carge greater amt tan tat specied
in te scedule of allowable fees +illegal
e*action.8
"! To furnis any false info in relation to
recruitment/EENT +false information.8
9! To give any false notice, testimony, etc! or
commit any act of misrepresentation to
statements.8
:! To induce or attempt to induce a worker to
)uit is job in lieu of anoter o;er unless it
is designed to liberate te worker from
oppressive terms of EENT +pirating.8
C! To inAuence of attempt to inAuence any
person/entity no to employ any worker
wo as not applied for EENT troug is
agency +inAuencing not to employ.8
 
to te dignity of te >K +armful jobs.8
4! To obstruct or attempt to obstruct
inspection by te Labor %ec or is
autori0ed reps +obstruct inspection.8
3! To fail to le reports on te status of EENT,
placement, etc! and suc oter matters as
may be re)uired by te %ec of Labor
+failure to comply w/ rules & regulations.8
2! To substitute or alter EENT contracts w/o
te approval of te %ec of Labor
+alteration of contracts.8
$G! To become an o=cer or member of te
board of any corp engaged in te mgt of a
travel agency8 and
$$! To witold travel docs from applicant
workers before departure for unautori0ed
monetary considerations +witolding
documents.!
$C

?rt 9C6 %U%>EN%H<N ?N#/<' 5?N5ELL?TH<N <D
LH5EN%E <' ?UTK<'HTJ
Non License or Non(Kolder of ?utority – any
person/corp/entity w/c as not been issued a
valid license or autority to engage in
recruitment & placement by te %ec of Labor,
or wose license or autority as been
suspended, revoked or cancelled by te ><E?
and te %ecretary!
1rounds for 'evocation of License
$! Hncurring an accumulated 9 counts of  5K 96 BH%5ELL?NE<U% >'<PH%H<N% +as amended
suspension by an agency based on nal
and e*ecutor orders w/in te validity
period of its license8
"! Piolation/s of te conditions of license8
9! Engaging in acts of misrepresentation for
te purpose of securing a license or
renewal tereof8 and
:! Engaging in te recruitment or placement
of workers to jobs armful to te public
ealt or morality or to te dignity of te
'>
1rounds for %uspension/5ancellation of License
$! Te acts proibited under ?rt 9:8
"! 5arging a fee before te worker is
employed or in e*cess of te autori0ed
amt8
9! #oing recruitment in places outside its
autori0ed area8
:! #eploying workers w/o processing troug
te ><E?8 and
C! >ublising job announcements w/o ><E?@s
prior approval
 urisdiction
 Te #<LE %ec and te ><E? ?dmin ave
concurrent jurisdiction to suspend or cancel a
license
Liability of 'ecruitment ?gency
• %olidarily liable w/ te foreign principal for
unpaid salaries of a worker it recruited!
7efore recruiting, te agency is re)uired to
submit a doc containing its power to sue
and be sued jointly and solidarily w/ te
principal or foreign(based employer for
any of te violations of te recruitment
agreement, and te contracts of  representatives appointed by a
employment
Note6 Te recruitment agency may still be
sued even if agency agreement bet
recruitment agency & principal is already
severed if no notice of te termination was
given to te EE
E*ception to Liability of 'ecruitment agency
• en workers temselves insisted for te
recruitment agency to send tem back to
teir foreign EE' despite teir knowledge
of its inability to pay teir wages
5ontract by >rncipal
• Even if it was te principal of te manning
agency wo entered into contract w/ te
EE, te manning agent in te >K is jointly
& solidarily liable w/ te principal
%uability of Doreign 5orps
• ? foreign corp tat, tru unlicensed
agents, recruits workers in te country
may be suid in and found liable by >
courts
by '? 3G:".
Hllegal 'ecruitment – any act of +5ET5KU>.
canvassing, enlisting, transporting,
contracting, utili0ing, or procuring workers and
includes +5'?>. contract services, referrals, or
advertising, promising for employment abroad,
weter for prot or not, wen undertaken by
a non(licensee or non(older of autority8
>rovided tat any suc non(licensee or non(
older of autority wo in any manner, o;ers
or promises for a fee employment abroad to "
or more persons sall be deemed so engaged!
?lso includes te act of reprocessing workers
troug a job order tat pertains to
none*istent work, work di;erent from te
actual overseas work, or work w/ a di;erent
EE' weter registered or not w/ te ><E?
• Ht sall likewise include te commission of 
te ; proibited acts weter committed
by a non(licensee or non(older of 
autority or a licensee or a older of 
autority6
$! Tose proibited practices
under ?rt 9:8
"! Dailure to actually deploy w/o
valid reason as determined by
#<LE8
9! Dailure to reimburse e*penses
incurred by te worker in
connection w/ is
documentation & processing for
purposes of deployment, in
cases were te deployment
does not actually take place w/o
te worker@s fault8 and
:! 'ecruitment & placement
activities of agents or
licensee, wose appointments
were not previously authorized
by te ><E? sall likewise
constitute illegal recruitment!
Elements of Hllegal 'ecruitment
$! Te o;ender is a licensee/non(licensee or
older/non(older of autority engaged in
te recruitment & placement of workers8
and
$
 "! Te o;ender undertakes eiter any
recruitment activities devided under ?rt
$9 +b. or any proibited practices in ?rt 9:
%imple Hllegal 'ecruitment – ere a person6
$! undertakes any recruitment activity
dened under ?rt $9+b. or any proibited
practice enumerated under ?rts 9: & 93 of  positively sow troug teir respective
te L58 and
"! does not ave a license or autority to
lawfully engage in te recruitment &
placement of any workers!
Hllegal 'ecruitment in Large %cale – furter
re)uires a 9 rd element6
9! Te o;ense is committed against 9/more
persons, individually or as a group
Hllegal 'ecruitment as Economic %abotage6
$! en illegal recruitment is committed by
a syndicate +wen 9/more persons
conspire or confederate w/ one anoter in
carrying out an unlawful or illegal
transaction, enterprise or sceme.8
"! en illegal recruitment is committed in a
large scale +if committed against 9/more
persons individually or as a group
5onse)uences of 5onviction
$! ?utomatic revocation of license/autority8
"! Dorfeiture of te cas & surety bonds8
9! 5onviction for te crime of estafa, if found
guilty tereof  illegal recruitment establisments because
Hllegal 'ecruitment vs Estafa
• Hllegal recruitment is malum proibitum,
• wereas estafa is malum in se +criminal
intent necessary for conviction.
• a person may be carged & convicted for
bot
?cts 5onstituting Estafa
( te accused represented temselves to
complainants to ave te capacity to send
workers abroad altoug tey did not ave any
autority or license, enabling tem to obtain
placement fee
Penue of criminal action arising from Hllegal
'ecruitment
 Te complainant may, at is option le at te 'T5
of te province/city6
a!. were te o;ense was committed8 or
b!. were te o;ended party resides at te
time of te commission of te o;ense
>rescriptive >eriod Hmprisonment
Dine
%imple C yrs $"("G yrs
>$("B
Economic %abotage "G yrs Life
>"(CB
Note6 Ba* penalty if te person illegally recruited
is less tan $3 y/o or committed by a non(
licensee or non(older of autority
?bsence of receipts evidencing payment, not
fatal to prosecution@s case for illegal
recruitment – as long as te witnesses can
testimonies tat te accused is te one
involved in proibited recruitment
Liability of Local EEnt agency – solidarily liable w/
te foreig principal for unpaid salaries of a
worker recruited! 7efore recruiting, te agency
is re)uired to submit a doc containing its
power to sue and be sued jointly and solidarily
w/ te principal or foreign(based EE' for any of 
te violations of te recruitment agreement
and te contracts of EEnt
Liability of 5ompany Engaged in Hllegal
'ecruitment – may be eld as principal,
togeter is EE', if it is sown tat e actively 
& consciously   participated in illegal
recruitment 
Hssuance of searc warrant/warrant of arrest
• ?rt 93 is unconstitutional inasmuc as it
gives te %ec of Labor te power to issue
searc or arrest warrants
•  Te  e*ception is in cases of deportation
wom te >resident or te 5ommissioner
of Hmmigration may order arrested,
following a nal roder of deportation
Note6 te %ec of Labor may order closure of 
it is only administrative & regulatory in
nature
 THTLE "6 EB>L<JBENT <D N<N('E%H#ENT ?LHEN%
?lien Employment >ermit +?E>. – re)uired for
entry into te country for employment
purposes and is issued after determination of 
te non(availability of a person in te pK wo
is competent, able and willing at te time of 
application to perform te services for w/c te
alien is desired
• ?ll foreign nationals wo intend to engage
in gainful EENT in te >K sall apply for
?E>
Employment >ermit 'e)uired
$! all foreign nationals seeking admission to
te >K for te purpose of EENT8
"! all non(resident foreign nationals already
working in te >K8
9! non(resident foreign nationals admitted to
te >K on non(working visas and wo wis
to seek EENT8 and
:! missionaries or religious workers wo
intend to engage in gainful EENT!
Note6 ?E> sould be secured regardless  of te
source of compensation and duration of te
EENT, weter te EENT is part(time or
temp
?n ?E> is issued based on te ;6
$4
 $! 5ompliance by te applicant EE' or te
foreign national w/ te substantive &
documentary re)uirements8
"! #etermination of #<LE %ec tat tere is
no available Dilipino national wo is
competent, able and willing to do te job
for te EE'8 and
9! ?ssessment of te #<LE %ec tat te
EENT of te foreign national will redound
to national benet
Note6 Understudy Training >rogram is no
longer a re)uirement in te issuance of ?E>
and te EEr as now te option to
implement transfer of tecnology
'e)uisite for EENT of 'esident ?liens6
• Hmmigrants & resident aliens are not
re)uired to secure a working permit! Tey
are re)uired to secure teir ?lien
Employment 'egistration 5ert +?E'5.
E*emption from >ermit
$! ?ll members of te #iplomatic service and
foreign govt o=cials accredited by and w/
reciprocity arrangement w/ te > govt8
"! <=cers and sta; of international orgs of  >$GW for every year or a fraction tereof!
w/c te >K is a member, and teir
legitimate spouses desiring to work in te
>K8
9! Doreign nationals elected as members of  nationali0ed business!
1overning 7oard wo do not occupy any
oter position, but ave only voting rigts
in te corp8
:! ?ll foreign nationals granted e*emption by
law8
C! <wners & representatives of foreign
nationals wose companies are accredited
by te ><E? wo come to te >K for a
limited period and solely for te purpose
of interviewing Dilipino applicants for EENT
abroad8
! Doreign nationals wo come to te >K to
teac, present and/or conduct researc
studies in univs and colleges as visiting,
e*cange or adjunct professors under
formal agreements bet te univs or
colleges in te >K an foreign univs or
colleges8 or bet te > govt and foreign
govt8 provided tat te e*emption is on a
reciprocal basis8 and
4! 'esident foreign nationals!
1rounds for denial of ?pplication of ?E>
$! Bisrepresentation of facts in te
application8
"! %ubmission of falsied docs8
9! Te foreign national as a derogatory
record8 or
:! ?vailability of a Dil wo is competent, able
and willing to te job intended for te
alien!
1rounds for suspension of ?E>
$! Te continued stay of te foreign national
my result in damage to te interest of te
industry of te country8 and
"! te EENT of te alien is suspended by te
EE' or by te order of te court
1rounds for revocation of ?E>
$! Non(compliance w/ any of te
re)uirement/conditions for w/c te ?E>
was issued8
"! Bisrepresentation of facts in te
application8
9! %ubmission of falsied docs8
:! Beritorious objection or information
against te EENT of foreign national as
determined by te 'egional #ir8
C! Doreign national as a derogatory record8
and
! EE' as terminated te EENT of te
foreign national!
Palidity of EENT >ermit
• $ yr, unless te EENT contract,
consultancy services or oter modes of 
engagement provides oterwise, w/c sall
in no case e*ceed Cyrs
• ne for working w/o or wit an e*pired ?E>
'ule on Nationali0ed 7usiness
1'6 Doreigners may N<T be employed in certain
?nti(#ummy Law "(? proibits te EENT of 
aliens in entities engaged in business wose
e*ercise or enjoyment is reserved only to Dils
or to corporations or assocs wose capital
sould be at least GR Dil(owned
 E*ceptions6
$! ere te %ec of ustice specically
autori0es te EEnt of tecnical personnel8
"! ?liens wo are members of te 7oard of 
directors of corps in proportion to teir
allowable participation in te capital of 
suc entities8 and
9! Enterprises registered under te <mnibus
Hnvestment 5ode in case of tecnical,
supervisory or advisory positions, but for a
limited pd!
?rt :$! >'<KH7HTH<N ?1?HN%T T'?N%DE' <D EENT
$! ?liens sall not transfer to anoter job or
cange is EE' w/o prior approval of te
%ec of Labor8
"! Non(resident aliens sall not take up EENT
in violation of te provisions of te 5ode!
Note6 Piolations of te abovementioned acts
will subj te alien to te punisment in ?rt
"32 & "2G and to deportation after service
of sentence
7<<W "6 KUB?N 'E%<U'5E%
 THTLE $6 N?TH<N?L B?N><E' #EPT >'<1'?B
5K $6 N?TH<N?L ><LH5HE% & ?#BHNH%T'?THPE
B?5KHNE'J D<' TKEH' HB>LEBENT?TH<N
?rt :9(C TE5KNH5?L E#U5?TH<N ?N# %WHLL%
#EPT ?UTK<'HTJ +TE%#?.
( replaced te National Banpower & Jout 5ouncil
under '? 442
$3

%tatement of 1oals & <bjectives
$! To attain international competitiveness8
"! To meet demands for )uality middle(level
manpower8
9! To disseminate scientic & tecnical
knowledge base8
:! To recogni0e & encourage te
complementary roles of pub & private
institutions8 and
C! To inculcate desirable values!
Biddle(level Banpower
$! Tose wo ave ac)uired practical skills &
knowledge troug formal or non(formal
educ & training e)uivalent to at least a
secondary educ but preferably a post(
secondary educ w/ a corresponding
degree/diploma8 or
"! %killed workers wo ave become igly
competent in teir trade or craft as
attested by industry!
 THTLE "6 T'?HNHN1 & EB>L<JBENT <D %>E5H?L
<'WE'%
5K$6 TJ>E% <D %>E5H?L <'WE'%
$! ?pprentice
"! Learner
9! Kandicapped
?rt C4 %T?TEBENT <D <7E5THPE% D<' TKE
 T'?HNHN1 & EENT <D %>E5H?L <'WE'%
$! To elp meet te demand of te economy
for trained manpower8
"! To establis a national apprenticesip
program8 and
9! To establis apprenticesip standards for
te protection of apprentices!
?rt C36 #EDHNHTH<N <D TE'B%
?pprenticesip – practical training on te job
supplemented by related teoretical
instruction, for a igly skilled or tecnical
instruction for a period of 9( monts
?pprentice – a person undergoing training for an
approved apprenticeable occupation during an
establised period assured by an
apprenticesip agreemt
?pprenticeable <ccupation – an occupation
o=cially endorsed by a tripartite body and
approved for apprenticesip by te TE%#? +no
longer te %ec of Labor.
?pprenticesip ?greement – an EENT contract
werein te EE' binds imself to train te
apprentice and te apprentice in turn accepts
te terms of training
<n(te(job training – practical work e*perience
troug actual participation in productive
activities given to or ac)uired by an apprentice
Kigly tecnical industries – a trade, business,
enterprise, industry or oter activity, w/c is
engaged in te application of advanced
tecnology
?rt C26 VU?LHDH5?TH<N% <D ?>>'ENTH5E%
$! ?t least $C y/o, provided tat if below $3
y/o, e sall not be eligible for a0ardous
occupation8
"! >ysically t for te occupation in w/c e
desires to be trained8
9! >ossess vocational aptitude and capacity
for te particular occupation as
establised troug appropriate tests8 and
:! >ossess te ability to compreend and
follow oral & written instructions!
Note6 Total pysical tness is not re)uired of 
te apprentice(applicant unless it is
essential to te e*peditious and e;ective
learning of te occupation! <nly pysical
defects w/c constitute real impediments to
e;ective perf as determined by te plant
apprenticesip committee may disp)ualify
an applicant
?rt G6 EB>L<JBENT <D ?>>'ENTH5E%
Vualications to be met by EE'6
$! <nly EE'% in igly tecnical industries
may employ apprentices8 and
"! <nly in apprenticeable occupations as
determined by te TE%#?!
'e)uisites for a Palid apprenticesip
$! Vualications of apprentice are met8
"! ?pprentice earns not less tan 4CR of te
prescribed minimum salary8
9! ?pprenticesip agreemt duly e*ecuted &
signed8
:! ?pprenticesip program must be approved
by te TE%#?8 oterwise te apprentice
sall be deemed a regular EE8
C! >eriod of apprenticesip sall not e*ceed 
monts
Note6 at te termination of te apprenticesip,
te EE' is not re)uired to continue te
EENT
 Tere is no valid apprenticesip if6
$! Te agreemt submitted to te TE%#? was
made long after te workers started
undergoing apprenticesip8
"! Te work performed by te apprenticesip
was di;erent from tose allegedly
approved by TE%#?8
9! Te workers undergoing apprenticesip
are already skilled workers8
:! Te workers were re)uired to continue
undergoing apprenticesip beyond mos!
?rt $6 5<NTENT% <D ?>>'ENTH5E%KH>
?1'EEBENT
$! Dull name & address of te contracting
parties8
"! #ate of birt of te apprentice8
9! Name of trade, occupation or job in w/c
te apprentice sall be trained and te
dates on w/c suc training will begin and
will pro*imately end8
:! ?pprop number of rs of <T w/
compulsory teoretical instruction w/c te
apprentice sall undergo during is
training8
$2
 C! %cedule of te work processes of te
trade/occupation in w/c te apprentice
sall be trained and te appro*! time to be
spent on te job in eac process8
! 1raduated scale of wages to be paid to
te apprentice8
4! >robationary pd of te apprentice during
wc eiter party ay summarily terminate
teir agreemt8 and
3! ? clause tat if te EE' is unable to fulll
is training oblig, e may transfer te
agreemt, w/ te consent of te apprentice
to any oter EE' wo is willing to assume
suc oblig!
orking Krs – sall not e*ceed te ma* number
of rs prescribed by law, if any, for a worker of  working8
is age and se*! Time spent in compulsorily
teoretical instruction sall be considered rs
of work! ?n apprentice not oterwise barred by
law from working 3rs may be re)uisted by is
EE' to work overtime and paid accordingly!
?rt "6 %H1NHN1 <D ?>>'ENTH5E%KH> ?1'EEBENT
o signs6
$! Te apprentice, if of age, oterwise, by is
parent or guardian, or in te latter@s
absence, by an autori0ed rep of TE%#?8
and
"! EE' or is duly autori0ed rep
?rt 96 PENUE <D ?>>'ENTH5E%KH> >'<1'?B
$! itin te sponsoring rm, establisment
or entity8 or
"! itin a #<LE training center or oter
public training institutions8 or
9! Hnitial training in trade fundamentals in a
training center or oter institutions w/
subse)uent actual work participation w/in
te sponsoring rm or entity during te
nal stage of training!
?rt :6 %><N%<'HN1 <D ?>>'ENTH5E%KH>
>'<1'?B%
7J6
$! Te plant, sop or premises of te EE' or
rm concerned if te apprenticesip
program is organi0ed by an indiv EE' or
rm8
"! Te premises of one or several rms
designated for te purpose by te
organi0er of te program if suc organi0er
is an assoc of EE'%, civic group and te
like8 and
9! #<LE Training 5enter or oter public
training institutions w/ w/c te TE%#? as
made approp arrangements!
?rt C(46 PH<L?TH<N <D ?>>'ENTH5E%KH>
?1'EEBENT
?rt C6 Hnvestigation of violation of apprenticesip
agreement
$! Eiter party to an agreemt may terminate
te same after te probationary pd only
for a valid cause!
"! ?ction may be initiated upon complaint of 
any interested person or upon #<LE@s own
initiative!
Palid 5ause to terminate agreement
$! 7y te EE'6
a! Kabitual absenteeism in <T and
related teoretical instructions8
b! illful disobedience of company
rules or insubordination to lawful
order of a superior8
c! >oor pysical condition, permanent
disability or prolonged illness w/c
incapacitates te apprentice from
d! Teft or malicious destruction of 
company property and/or
e)uipment
e! >oor e=ciency or perf on te job or
in te classroom for a prolonged
period despite warnings duly given
to te apprentice8 and
f! Engaging in violence or oter forms
of gross misconduct inside te
EE'@s premises
"! 7y te apprentice6
a! %ubstandard or deleterious working
conditions w/in te EE'@s premises8
b! 'epeated violations by te EE' of 
te terms of te apprenticesip
agreemt8
c! 5ruel or inumane treatment by
te EE' or is subordinates8
d! >ersonal problem s/c in te opinion
of te apprentice sall prevent im
from a satisfactory perf of is job8
and
e! 7ad ealt or continuing illness!
?rt 6 ?ppeal
•  Te decision of an autori0ed agency of 
te #<LE may be appealed to te %ec of 
Labor w/in C days form rcpt of te adverse
decision!
•  Te decision of te %ec of Labor sall be
nal & e*ecutor!
?rt 4 E*austion of ?dministrative 'emedies
$! Te e*austion of administrative remedies
is a condition precedent to te institution
of action!
"! Te plant apprenticesip committee sall
ave initial responsibility for settling
di;erences arising out of apprenticesip
agreements!
?rt 36 ?>THTU#E TE%T%
?NT<NH< B! %E''?N<P%!1?LL?NT B?'HTHBE
%E'PH5E%, HN5!
D?5T%6
"G
>etitioner ?ntonio %errano was ired by
respondents 1allant Baritime %ervices, Hnc! and
Barlow Navigation 5o!, Hnc!, under a ><E?(
approved contract of employment for $" monts,
as 5ief <=cer, wit te basic montly salary of  particularly te recruitment and deployment of
U%X$,:GG, plus X4GG/mont overtime pay, and 4
days paid vacation leave per mont!
<n te date of is departure, %errano was
constrained to accept a downgraded employment
contract upon te assurance and representation
of respondents tat e would be 5ief <=cer by
te end of ?pril $223!
'espondents did not deliver on teir promise to
make %errano 5ief <=cer!
Kence, %errano refused to stay on as second
<=cer and was repatriated to te >ilippines,
serving only two monts and 4 days, leaving an
une*pired portion of nine monts and twenty(
tree days!
Upon complaint led by %errano before te Labor
?rbiter +L?., te dismissal was declared illegal!
<n appeal, te NL'5 modied te L? decision
based on te provision of '? 3G:"!
%errano led a Botion for >artial 'econsideration,
but tis time e )uestioned te constitutionality
of te last clause in te Ct paragrap of %ection
$G of '? 3G:"!
H%%UE%6
$! eter or not te subject clause violates
%ection $G, ?rticle HHH of te 5onstitution on non(
impairment of contracts8
"! eter or not te subject clause violate
%ection $, ?rticle HHH of te 5onstitution, and
%ection $3, ?rticle HH and %ection 9, ?rticle IHHH on
labor as a protected sector!
KEL#6
<n te rst issue!
 Te answer is in te negative! >etitioner@s claim
tat te subject clause unduly interferes wit te
stipulations in is contract on te term of is
employment and te *ed salary package e will
receive is not tenable!
 Te subject clause may not be declared
unconstitutional on te ground tat it impinges
on te impairment clause, for te law was
enacted in te e*ercise of te police power of te
%tate to regulate a business, profession or calling,
 
<Ds, wit te noble end in view of ensuring
respect for te dignity and well(being of <Ds
werever tey may be employed!
<n te second issue!
 Te answer is in te a=rmative!
 To Dilipino workers, te rigts guaranteed under
te foregoing constitutional provisions translate
to economic security and parity!
Upon cursory reading, te subject clause appears
facially neutral, for it applies to all <Ds!
Kowever, a closer e*amination reveals tat te
subject clause as a discriminatory intent
against, and an invidious impact on, <Ds at two
levels6
Dirst, <Ds wit employment contracts of less
tan one year vis(Y(vis <Ds wit employment
contracts of one year or more8
%econd, among <Ds wit employment contracts
of more tan one year8 and
 Tird, <Ds vis(Y(vis local workers wit *ed(
period employment8
 Te subject clause singles out one classication
of <Ds and burdens it wit a peculiar
disadvantage!
 Tus, te subject clause in te Ct paragrap of 
%ection $G of '!?! No! 3G:" is violative of te
rigt of petitioner and oter <Ds to e)ual
protection!
 Te subject clause or for tree monts for every
year of te une*pired term, wicever is less- in
te Ct paragrap of %ection $G of 'epublic ?ct
No! 3G:" is #E5L?'E# UN5<N%THTUTH<N?L!
"eo%le o# te "ili%%ines 4%etitioner5 2
 Ja!ilosa 4re%onent5
6R No) 789$8 Januar' ;(- ;$
Calle3o- Sr)-:
<ACTS:
%ometime in te monts of anuary to
Debruary, $22, representing to ave te
capacity, autority or license to contract, enlist
and deploy or transport workers for overseas
"$
employment, did ten and tere, willfully,
unlawfully and criminally recruit, contract and
promise to deploy, for a fee te erein
complainants, namely, Hmelda #! 7amba,
1eraldine B! Lagman and ?lma E! %ing, for work
or employment in Los ?ngeles, 5alifornia, U!%!?!
in Nursing Kome and 5are 5enter!
>rosecution presented tree witnesses,
namely Hmelda 7amba, 1eraldine Lagman and  
?lma %ing!
?ccording to 7amba, se met te
appellant on a bus! %e was on er way to %B
Nort Edsa were se was a company nurse!
?ppellant introduced imself as a recruiter of  )uarreled and separated!
workers for employment abroad! ?ppellant told
er e could elp er get employed as nurse!
?ppellant gave is pager number and instructed
er to contact im is se@s interested! %ometime
in anuary $22, appellant fetced er at er
o=ce, went to er ouse and gave im te
necessary documents and anded to appellant
te amount of U%X9GG!GG and te latter sowed
er a potocopy of er supposed U% visa!
Kowever, te appellant did not issue a receipt for
te said money! Tereafter, appellant told er to  
resign from er work because se was booked
wit Nortwest ?irlines and to leave for U%? on
Deb, $22! <n te sceduled departure, appellant
failed to sow up! Hnstead, called and informed
er tat e failed to give te passport and U%
visa because se ad to go to province because
is wife died! Trying to contact im to te
supposed residence and otel were e
temporarily resided, but to no avail!
iness Lagman testied tat se is a
registered nurse! Hn anuary $22, se went to %B
Nort Edsa to visit er cousin 7amba! ?t tat time
7amba informed er tat se was going to meet
to appellant! 7amba invited Lagman to go wit
er! Te appellant convinced tem of is ability to
send tem abroad! <n teir ne*t meeting,
Lagman anded to te latter te necessary
documents and an amount of U%X9GG!GG and "
bottles of black label witout any receipt issued
by te appellant! Dour days after teir meeting, a
telepone company called er because er
number was appearing in appellants cell pone
documents! Te caller is trying to locate im as
e was a swindler! %e became suspicious and
told 7amba about te matter! <ne week before
er sceduled Aigt, appellant told er e could
not meet tem because is moter passed away!
Lastly, ?lma %ing, wo is also a
registered nurse, declared tat se rst met te
appellant at %B Nort Edsa wen Hmelda 7amba
introduced te latter to er! ?ppellant told er
tat e is an undercover agent of D7H and e
could * er U% visa! <n teir ne*t meeting, se
gave all te pertinent documents! Tereafter, se
gave >$G,GGG to te appellant covering alf price
of er plane ticket! Tey paged te appellant
troug is beeper to set up anoter
appointment but te appellant avoided tem as
e ad many tings to do!
 Te accused amilosa testied on direct
e*amination tat e never told 7amba tat e
could get er a job in U%?, te trut being tat
se wanted to leave %B as company nurse
because se was aving a problem tereat!
7amba called im several times, seeking advices
from im! Ke started courting 7amba and went
out dating until latter became is girlfriend! Ke
met Lagman and %ing tru 7amba! ?s
complainants seeking advice on ow to apply for
jobs abroad, lest e be carged as a recruiter, e
made 7amba, Lagman and %ing sign separate
certications, all to e;ect tat e never recruited
tem and no money was involved! 7amba led an
illegal recruitment case against im because tey
'T5 rendered judgment nding accused
guilty beyond reasonable doubt of illegal
recruitment in large scale!
=SSUE: Hllegal 'ecruitment in a large scaleZ
>ELD: ?'ecruitment and placement[ refers to
any act of canvassing, enlisting, contracting,
transporting, utili0ing, iring, or procuring
workers, and includes referrals, contract services,
promising or advertising for employment, locally
or abroad, weter for prot or not! >rovided,
Tat any person or entity wic, in any manner,
o;ers or promises for a fee employment to two or
more persons sall be deemed engaged in
recruitment and placement!
Hllegal recruitment sall mean any act of 
canvassing, enlisting, contracting, transporting,
utili0ing, iring, or procuring workers and includes
referring, contract services, promising or
advertising for employment abroad, weter for
prot or not, wen undertaken by a non(licensee
or non(older of autority! >rovided, Tat any
suc non(licensee or non(older wo, in any
manner, o;ers or promises for a fee employment
abroad to two or more persons sall be deemed
so engaged!
 To prove illegal recruitment in large scale,
te prosecution is burdened to prove tree +9.
essential elements, to wit6 +$. te person carged
undertook a recruitment activity under ?rticle
$9+b. or any proibited practice under ?rticle 9:
of te Labor 5ode8 +". accused did not ave te
license or te autority to lawfully engage in te
recruitment and placement of workers8 and +9.
accused committed te same against tree or
more persons individually or as a group! ?s
gleaned from te collective testimonies of te
complaining witnesses wic te trial court and
te appellate court found to be credible and
deserving of full probative weigt, te
prosecution mustered te re)uisite )uantum of 
evidence to prove te guilt of accused beyond
reasonable doubt for te crime carged! Hndeed,
te ndings of te trial court, a=rmed on appeal
by te 5?, are conclusive on tis 5ourt absent
evidence tat te tribunals ignored,
misunderstood, or misapplied substantial fact or
oter circumstance!
 Te failure of te prosecution to adduce in
evidence any receipt or document signed by
appellant were e acknowledged to ave
received money and li)uor does not free im
from criminal liability! Even in te absence of 
""
 money or oter valuables given as
consideration for te [services[ of appellant,
te latter is considered as being engaged in
recruitment activities!
Ht can be gleaned from te language of  b!  in case of sermen
?rticle $9+b. of te Labor 5ode tat te act of  altoug performing non(
recruitment may be for prot or not! Ht is
su=cient tat te accused promises or o;ers
for a fee employment to warrant conviction for
illegal recruit
COND=T=ONS O< E@"LO@ENT
OR=N6 COND=T=ONS & REST "ER=ODS
Art ;) COERA6E
a! ?LL employees in all
establisments & undertakings
weter for prot or not
b! %uc standards apply only if tere
e*ists EE'(EE relationsip
 EI5E>TH<N% on 5onditions of EEnt
i! 1overnment employees
 EE% of govt agencies
& govt corps
ii! Banagerial employees –
tose wose primary duty
consists of te mgt of te
establisment in w/c tey
are employed or of a
dept/subd tereof, and to
oter o=cers/members of  compensation from is E' an uncertain &
te managerial sta;  variable amount depending upon te work
( under te direct supervision of te EE',
and assist in te planning, organi0ing,
sta=ng, directing controlling,
communicating and in making decisions in
attaining te company@s set goals &
objectives
a! Hncludes
supervisiors +only
as regards ?rt 3". –
likewise
responsible for te
e;ective & e=cient
operation of teir
respective depts
iii! Dield personnel – non(
agricultural employees
wo regularly perform
teir duties away from te
principal place of business
or branc o=ce of te
employer and wose
actual ours of work in te
eld cannot be
determined w/ reasonable
certainty
c! tose wose performance of teir
 job/service is not supervised by te E'
or is rep, te workplace being away
from te principal o=ce and wose
ours & days of work cannot be
determined w reasonable certainty8
ence tey are paid specic amount for
rendering specic service or performing
specic work!
a!  drivers tat are
re)uired to be at specic
places at specic times are
not eld personnel
agri work away from te
o=ce, te fact tat tey
ave no coice but to
remain on board te vessel,
tey are still under constant
supervision by te E' tru
te vessel@s patron/master
iv! Employer@s family
members wo are
dependent on im for
support
v! #omestic elpers
  ouse personnel ired by a ranking
company o=cial, a foreigner, but paid for
by te company itself, to maintain a sta; 
ouse provided for te o=cial regular EE
vi! >ersons in te personal
service of anoter
vii! orkers paid by result –
per piece/per task
( laborer/EE w/ no *ed salary, wag, or
renumeration but receiving a
done or te result of said work +piece
work., irrespective of te time employed
EE'(EE 'elationsip – is not dependent upon te
agreement of te parties! Te caracteri0ation
by law prevails over tat in te contract!  te
e*istence of an EE'(EE relsp is not a matter
of stipulation but a )uestion of law
d! depends on te facts of eac case
5ore/Non(core obs
e! EE'(EE relsip may comver
core/non(core activities of te
EE'@s business!
f! Te kind of work is not te
denitive test of weter te
worker is an EE or not!
Employer – any person, natural or juridical,
domestic or foreign, wo carries on in te >K
any trade, business, industry, undertaking or
activity of any kind and uses te services of 
anoter person wo is under is order as
regards employment
Employee – any person wo performs services for
an EE' in w/c eiter or bot mental & pysical
e;orts are used and wo receives
compensation for suc services, were tere is
an EE'(EE relationsip
 TE%T% <D EENT 'elsip6
i! 'igt of 5ontrol Test – were te
person for wim te services are
performed reserves a rigt to control
not only te end to be acieved but
"9
 also te means to be sued in reacing
suc end!
>lus6 te courts added te e*isting economic
conditions prevailing bet te parties +like
payrolls. in determining te e*istence of EE'(
EE 'elsip!
ELEBENT% <D EE(EE' 'EL%KH> +Dour(fold Test.
i! te selection  and engagement of te
EE8
ii! te payment of wages;
iii! te power of dismissal;
iv! te employer@s power to control te EE
w/ respect to te means & metods by
w/c te work is to be accomplised
+most important.
Hndependent contractors – can employ oters to
work & accomplis contemplated result w/o
consent of contractee, wile EE cannot
substitute anoter in is place w/o consent of  supplying people +proibited.!
is EE'!
"! Te Economic #ependence Test – observes te
need to consider te e*isting conditions bet
te parties
7est approac6 ?pply te two(tiered test
involving6
$! te putative employer@s power to control
te EE w/ respect to te means and
metods by w/c te work is to be
accomplised8 and
"!te underlying economic realities of te
activity or relationsip
a! te e*tent to w/c te services
performed are an integral part of  tools to be used, processes to be followed,
te employer@s business8
b! to te e*tent of te worker@s
investment in e)uipment and
facilities8
c! te nature and degree of control
e*ercised by te employer8
d! te worker@s opportunity for prot
and loss8
e! te amount of initiative, skill,
 judgment or foresigt re)uired for
te success of te claimed
independent enterprise8
f! te permanency and duration of  defeating/circumventing te 's of
te relationsip between te
worker and te employer8 and
g! te degree of dependency of te
worker upon te employer for is
continued employment in tat line
of business
%tandard of economic dependence – weter te
worker is dependent on te alleged employer
for is continued employment in tat line of  $! Teir primary duty consists of te
business
Evidence of employment
i! id card
ii! voucers of salaries
iii! sss registration
iv! memorandum
 ?bsence of EE@s name in payroll does not mean
e is not an EE
 Bode of 5ompensation – not a test of EEnt
status8 pakyaw basis does not mean workers
are independent contractors
Hndependent contractors( generally rely on teir
own resources
S Unions and unregistered associations can be
EE's of te persons wo work for tem
1'6 ?n employee is not a contractor8 a contractor
is not an employee!
1'6 ile EE(E' relationsip e*ists bet a job
contractor and te workers tat e ires, no
suc relationsip e*ists bet tose workers and
te job contractee, te contractor@s client!
 Labor(only contractor – serve as an agent of 
te true employer by merely recruiting &
5onditions of Employment – laid down by law or
by contract concluded individually w/ an EE or
collectively w/ a group
• may also arise from establised
practice in te enterprise
" Winds of Employment 5onditions
a! %tatutory – provided for by law
b! Poluntary – initiated by te E'
unilaterally or by contractual
stipulation
?n employer is free to regulate, accdg to is own
discretion & judgment, all aspects of EENT,
including iring, work assignments, working
metods, time, place and manner of work,
supervision of workers, working regulations,
transfer of EE%, work supervision, lay(o; of 
workers and discipline, dismissal and recall of 
workers!
• Employers ave te rigt to
e*ercise management prerogatives
to strengten is business
competitiveness   unlawful/
unjust/unfair8 so long as tey are
e*ercised in 1D for te
advancement of is interest and
not for te purpose of  
 
te EE%
a! Bay devise & implement
new salary scales applicable
only to future EE%! +salary
distortion.
Bembers/<=cers of te Banagerial %ta;6 #uties
& 'esponsibilities
performance of work directly related to
mgt policies of teir E'8
"! Tey customarily & regularly e*ercise
discretion and independent judgment8
9! Tey regularly & directly assist te
managerial EE wose primary duty
consists of te mgt of a dept of te
":
 establisment in w/c tey are
employed8
:! Tey e*ecute, under gen supervision,
work along speciali0ed/tecnical lines
re)uiring special training, e*perience
or knowledge8
C! Tey e*ecute, under gen supervision,
special assignments and tasks8 and
tey do not devote more tan "GR of  te workplace in order tat is rest
teir ours worked in a work(week to
activities w/c are not directly & clearly
related to te performance of teir
work
Art () NOR@AL >OURS O< OR  9! Hf te work performed was necessary,
• sall not e*ceed 3 rs/day
>urpose of 3(r Labor law – not only to safeguard
te ealt & welfare of te laborer/EE, but in a
way to minimi0e unemployment by forcing
E's, in cases were more tan 3(r operation
is necessary, to utili0e di;erent sifts to
laborers/EEs working only for 3 rs eac
>art(time ork – not proibited! +at te law
regulates is work e*ceeding 3rs.
1'6 age & benets of a part(timer are in
proportion to te number of rs worked!
ork rs of Kealt >ersonnel
Kealt personnel – sall include, but not limited
to, resident pysicians, nurses, nutritionists,
dieticians, parmacists, social workers, lab
tecnicians, paramedics, psycologists,
midwives, attendants, and all oter ospital &
clinic personnel like medical secretaries
'esident pysicians – customary practice to work
for ": rs a day violates te limitations in ?rt
39!  wen tey are under training
program/agreement bet te residents and te
ospital accredited by te govt
Kospital EEs – are entitled to a full weekly salary
w/ apid " days o; if tey ave completed te
:Gr/Cday workweek +4days pay for C days
work.
Kealt personnel in 1ovt service – covered by '?
49GC
$"(r orksift wit <vertime
( troug a contract freely entered into, worksift
may e*ceed 3rs w/ corresponding overtime
pay!
Art F) >OURS ORED sall inclue:
7) all ti!e uring wGc an EE is re.uire to be
on ut' or to be at a %rescribe
wor/%lace- an
;) all ti!e uring wGc an EE is su,ere or
%er!itte to wor/  1'6 EE must be completely relieved from duty for
Rest %erios o# sort uration uring wor/  time is not compensable if e is completely
rs sall be counte as ours wor/e
>rinciples in #etermining Kours rked
$! ?ll rs are rs worked w/c te EE is
re)uired to give to is E', regardless of 
<N suc rs are spent in productive
labor or involve pysical/mental
e*ertion8
"! ?n EE need not leave te premises of 
period sall not be counted, it being
enoug tat e stops working, may
rest completely and may leave is
workplace, to go elsewere, weter
w/in or outside te premises of is
workplace8
or it beneted te E', or te EE could
not abandon is work at te end of is
normal working rs because e ad no
replacement, all time spent for suc
work sall be considered as rs
worked, if te work was w/in te
knowledge of is E'/immediate
supervisor8
:! Te time during w/c an EE is inactive
by reason of interruptions in is work
beyond is control sall be considered
time eiter if te imminence of te
resumption of work re)uires te EE@s
presence at te place of work or if te
interval is too brief to be utili0ed
e;ectively & gainfully in te EE@s own
interest!
>re/>ostliminary ?ctivities
• >reliminary +before work. and
postliminary +after actual work.
activities are deemed performed
during working rs, were suc
activities are controlled/re)uired by
te E' and are pursued necessarily
& primarily for te E'@s benet
aiting Time
• weter waiting time constitutes working
time depends on te circumstances on
eac particular case
• controlling factor is <N time spent in
idleness is so spent predominantly for te
E'@s benet or for te EE@s
$! Engaged to ait – waiting time
spent by EE sall be considered
as working time if waiting is
considered an integral part of 
is work or if te EE is
re)uired/engaged by an E' to
wait
"! aiting to Engage – idle time is
not work time
orking ile Eating
te purpose of eating regular meals! Te meal
"C
 free from duties during is meal period even
toug e remains in te workplace!
 EE is not relieved if e is re)uired to perform
is duties weter active/inactive, wile eating
+e*! %tand(by for emergency work.
orking ile %leeping
1'6 %leeping time may be considered working
time if it is subj to serious interruption or takes
place under conditions substantially less
desirable tan would be likely to e*ist at te
EE@s ome!
 if tere is an opportunity for comparatively
uninterrupted sleep under fairly desirable
conditions, event toug EE is re)uired to
remain on or near te E'@s premises and must
old imself in readiness for a call to action
ENT!
• depends upon te e*press/implied
agreement of te parties, or in
absence of an agreement, upon te
nature of te service and its
relation to te working time!
<n 5all
•altoug EE can rest completely and may
not be actually at work, if tey are
re)uired to be in teir place of work
before/after te regular working rs and
w/in te call of teir E's, te time tey
stay in te place of work sould not be
discounted from teir working rs
•EE cannot use te time e;ectively for is
own purposes is working wile on call!
•Not on call6 EE is not re)uired to remain on
te E'@s premises but is merely re)uired
to leave work at is ome or w/ company
o=cials were e may be reaced
•>ublic ealt workers@ <n call status – refers
to a condition wen public ealt workers
are called upon to respond to urgent or
immediate need for ealt/medical
assistance or relief work during
emergencies suc tat e/se cannot
devote te time for is/er own use!
it 5ellular pone or <ter 5ontact #evice
• if EE is kept w/in reac- troug a
cell pone, e is N<T on call
 Travel Time – time spent walking, riding, or
traveling to/from place of work
a! Travel from ome to work – not
worktime  wen EE receives an
emergency call outside is regular
working rs and is re)uired to travel
to is regular place of business or
some oter worksiteworking time
b! Travel tat is all in a day@s work –
time spent by an EE in travel as part
of is principal activity rs worked
c! Travel away from ome – travel tat
keeps an EE away from ome
overnigt worktime wen it cuts
across te EE@s workday
Lectures, Beetings and Training >rograms – not
worktime if6
a! ?ttendance is outside of te EE@s
regular working rs8
b! ?ttendance is in fact voluntary8 and
c! Te EE does not perform any
productive work during suc
attendance!
S must meet all criteria
1rievance Beeting – time spent in adjusting
grievance bet E' & Ee during te time te EEs
are re)uired by te E' to be on te
premises rs worked
  if a bona de union is involved   depends
on te 57? or te custom practice under te
57?
%emestral 7reak – rs worked by teacers in
private scools
<'W K<U'% <D %E?BEN
• tey need not leave te boat in
order tat is rest period not be
counted
'e)uisites for non(counted rest period
a! e ceases to work
b! may rest completely
c! leave or may leave at is will te
spot were e actually stays wile
working, to go somewere else,
weter w/in or outside te sip
K<U'% <'WE#6 EPH#EN5E & #<U7T
1'6 en an E' alleges tat is EE works less
tan te normal rs of ENT as provided for in law,
e bears te burden of proving is allegation w/
clear & satisfactory evidence
Art H) @EAL "ER=ODS
• must be at least Gminutes time(
o; for regular meals
1'6 not compensable
E*ceptions6
$! were te lunc period or mealtime is
predominantly spent for te E'@s
benet +considered overtime. 8or
"! were it is less tan G minutes +but
not less tan "Gminutes. must be wit
full pay wen6
• were work is non(manual
+does not involve strenuous
pysical e*ertion.8
• were te establisment
regularly operates not less tan
$rs a day
9! in cases of actual or impending
emergencies or tere is urgent work to
be performed on macineries,
e)uipment or installations to avoid
serious loss w/c te E' would
oterwise su;er8
:! were te work is necessary to prevent
serious loss of perisable goods
"
 • Hf less tan "G minutes it
becomes only a rest period and
is tus considered work time
Note6 Beal periods during overtime work is not
given to workers performing <T bco0 <T is
usually for a sort period
%ortened Beal 7reak Upon EE@s re)uest
• EEs may re)uest tat teir meal pd
be sortened so tat tey can
leave work earlier not
compensable
'e)uisites
$! EEs voluntarily agree in writing and waive teir
<T pay8
"! No diminution in te salary and oter fringe
benets of te EEs already e*isting8
9! ork is not pysically strenuous and tey are
provided w/ ade)uate co;ee breaks in te
morning & afternoon8
:! Palue of benets is e)ual to te compensation
due tem8
C! <T pay will become due and demandable if  converted into its daily e)uivalent would
tey are permitted/made to work beyond :69G
pm8 and
! Te arrangement is of temporary duration!
Note6 Te 3(r work period does not include te
meal break! EE@s may leave te company
premises as long as tey return to teir posts
on time!
Art 8 N=6>T S>=<T D=<<ERENT=AL
( at least $GR of is regular wage for eac r
of work performed bet $G>B and ?B
( given as premium for working at a time for
sleep & rest
( in addition to te e*ceptions in ?rt 3",
N%# is n/a to EEs of retail and service
establisments regularly employing C
employees and below
(  if work done from $Gpm(am is <T work,
ten te $GR nigt sift di;erential sould
be based on te <T rate
( not waivable +founded on public policy.
( te receipt of <T pay will not preclude
payment of N%# pay
( burden of proof of payment of N%# ( E'
Art $) OERT=@E OR  work day
<vertime >ay – additional compensation for work
performed beyond 3rs w/in te worker@s ":(r
workday regardless weter te work covers "
calendar days
7asis – cas wage only, w/o any deduction
'ates
$!<T on a regular work day – at least "CR
tereof  after o=ce rs is re)uired for te EE to be
"!<T on a oliday or rest day – at least 9GR
tereof  • ? verbal instruction to render <T work
S 57? may stipulate iger <T pay rate
?ctual ork #ays as #ivisor
PALEA v PAL (19!" – >?LE? & >?L %upervisors
?ssoc +>?L%?., commenced an action v >?L in
te 5H' praying tat te latter be ordered to
revise te metod of computing te basic daily
& ourly rates of its montly(salaried EEs and
necessarily to pay tem teir accrued salary
di;erentials
>?L@s Dormula6
montly salary * $"/9C days in a yr \ 7asic
daily rate
basic daily rate/3 – 7asic ourly rate
>roposed Dormula6
Bontly salary * $"/actual working days \
7#'
7#'/3 \ 7K'
>aid Unworked days of a montly(paid EE
( E' may stipulate tat EE@s montly salary
constitutes payment for all te days of te
mont incl rest days & olidays if wen
still meet minimum wage legal
Kow work day- is counted
? day – te ":(r period w/c commences from te
time te EE regularly starts to work
( regardless of te day of te week or r of 
te day
( any work in e*cess of te 3rs w/in te ":(
r pd is considered as <T regardless of 
weter te work covers " calendar days
( any work in e*cess of 3 rs not falling w/in
te ":(r pd is not considered as <T work
a! 7roken Krs of ork – te minimum normal
working rs need not be continuous to
constitute as te legal working day of 3 rs as
long as te 3 rs is w/in a work day
b! ork in #i;erent %ifts in a ork day – work in
e*cess of 3rs w/in a work day is considered as
<T regardless of weter tis is performed in a
work sift oter tan at w/c te EE regularly
works
• EE@s sift is $Gpm(am! Ke is asked to take
a sift of anoter EE wo is absent from
"pm($Gpm +is regular work day would be
from $Gpm($Gpm.  te " nd sift is
considered <T because it is still w/in is
1'6 ?n e*press instruction from te E' to te EE
to render <T work is not re)uired for te EE to
be entitled to <T pay! Ht is su=cient tat te EE
is  permitted or su#ered to wor$% Neiter is an
e*press approval by a supervisor needed!
6 <n rest days & olidays, written authority 
entitled to compensation
prevails over a memorandum proibiting
suc work!
• <T claim is not justied for days were no
work was re)uired and no work could be
"4
 done +i!e! brownout, macine repair, lack
of rawmats.
<T ork of %eamen – weter or not te sailors
are entitled to <T pay is not weter tey were
on board and cannot leave sip beyond te
regular 3 working rs a day, but weter tey
actually rendered service  in e*cess of 3 rs
  <T work must be proven by factual & legal
basis
?ction to 'ecover 5ompensation
( estoppel & laces cannot be invoked
against EEs bco0 tat would be contrary to
te spirit of te 3(r Labor Law, under w/c
te laborers cannot waive teir ' to e*tra
compensation
( <T pay in arrears retroacts to te date wen
services were actually rendered
1'6 aiver or )uitclaim – not a waiver of <T pay!
?ny stipulation in te contract tat te laborer
sall work beyond te regular 3 rs w/o addtl
compensation for te e*tra rs is contrary to
law and null and void
aiver of <T >ay
1'6 <T pay cannot be waived e*pressly or
impliedly! ?ny contrary stipulation is null and
void!
 E*eptions
$! en te waiver is made in consideration of  'est day & legal oliday wage rate +"GR.
benets & privileges w/c may be more tan
wat will accrue to tem in <T pay8 and
"! 5ompressed workweek +5.– te number of  #ouble oliday wage rate +:GGR. ] 9GR
work days is reduced but te number of work
rs in a day is increased to more tan 3, but no
<T pay may be claimed!
'e)uisites of 5ompressed orkweek to be
valid6
$!Te sceme is e*pressly and voluntarily
supported by majority of te EEs a;ected8
"!Hn rms using substances, or operating in
conditions tat are a0ardous to ealt, a
certication is needed from an accredited
safety org or te rm@s safety committee
tat work beyond 3rs is w/in te
limits/levels of e*posure set by #<LE@s
occupational safety & ealt standards8
9!Te #<LE 'egional <=ce is notied!
E;ects of a 5ompressed orkweek
$! Unless tere is a ore favorable practice
e*isting in te rm, work beyond 3rs
will not be compensable by <T
premium, provided te total number of  ( alternative work arrangements or scedules
rs worked per day sall not e*ceed
$"rs! +ork performed beyond $"rs a
day or :3rs a week <T.
"! EE@s under a 5 sceme are entitled
to meal periods of at least G minutes!
 Te ' of EEs to restday, oliday pay,
rest day pay or leave in accdance w/
law/57?/company practice sall not be
impaired!
9! ?doption of te 5 sceme sall in no
case result in diminution of e*isting
benets! 'eversion to te normal 3(r
work day sall not constitute diminution
of benets! +'eversion is considered a
legitimate e*ercise of mgt prerogative,
provided tat te E' sall give te EEs
prior notice of suc reversion w/in a
reasonable period of time!
S EE may validly waive te ' to <T under a
5 program, provided e did so
voluntarily, w/ full understanding of wat
e was doing and in consideration for te
)uit claim is credible & reasonable!
Note6 EE@s promoted from rank(and(le to
supervisory lose teir <T pay and oter
benets under ?rt 3"(2
Hllustrations of <T 5omputations
$!'egular orkdays
'eg 7asic age ] "CR tereof 
"!Legal or 'egular Kolidays
Koliday age 'ate +"GGR. ] 9GR tereof 
9!'est #ays or %pecial Kolidays
'est day/%pecial Koliday wage rate
+$9GR. ] 9GR tereof 
:!%ceduled 'est #ay w/c is also a %pecial
Koliday
'est day & special oliday wage rate
+$CGR. ] 9GR tereof 
C!%ceduled rest day w/c is also a legal or
regular oliday
] 9GR tereof 
!#ouble oliday
tereof 
• EE will receive "GGR of is regular
daily wage wen bot regular
olidays fall on te same day and e
does not work +Law provides tat e
sall get is regular daily wage of 
eac regular oliday.
• $GGR of ?raw ng Wagitingan, $GGR
1ood Driday! Hf e works on tat day,
e gets :GGR
<T pay integrated in 7asic %alary –
+composite/package pay/all(inclusive salary. –
not illegal nor unusual for e*ecutives or
managers
 7ut for non(managerial EEs, tere must be6
$!? clear written agreement
"!?greed legal wage rate and <T pay
computed separately are e)ual or iger
tan te separate amounts legally due
DLEIH7LE <'W ?''?N1EBENT%
oter tan te traditional or standard work
rs, workdays or workweek! E's may
adopt tem after due consultation w/ EEs,
taking into acct te adverse conse)uence
of te situation on te performance and
nancial condition of te company!
( Hts e;ectivity and implementation sall be
temporary!
( %ould be tresed out by te E' and EE
( #<LE 'eg <fc must be notied prior to
implementation
"3
 ( Hn addition to 5, te D?s include6
$! 'eduction of workdays – were
normal workdays per week are
reduced but sould not last for
more tan  monts
"! 'otation of workers – were te
EEs are rotated/alternately
provided work w/in te workweek
9! Dorced leave – EEs are re)uired to
go on leave for several days or
weeks, utili0ing teir leave credits
if tere are any
:! 7roken(time scedule – te work
scedule is not continuous but te
number of rs w/in te day or
week is not reduced
C! Dle*i(oliday scedule – Ees agree
to avail temselves of te olidays
at some oter days, provided tat
tere is no diminution of e*isting
benets as a result of suc
arrangement
Art ) UNDERT=@E NOT O<<SET B  
OERT=@E
( eter on te same day or any oter day
is proibited by law
( >ermission given to te EE to go on leave o
some oter day of te week sall not
e*empt E' from paying te addtl
compensation
'eason6 EE@s ourly rate is not e)uivalent to
<T rate
>roper metod6 #educt te UT from te
accrued leave, if any
Art 9) E@ER6ENC OT OR  public safety8
1'6 EEs cannot be compelled to render <T work
against teir will
 E*ceptions6
$!Hn times of war or any national or local
emergency declared by 5ongress/5ief  C!Hn te event of abnormal pressure of work
E*ec8
"!To prevent loss or damage to life or property
due to emergencies and force majeure8
9!en tere is urgent work needed on
macines & e)uipment8
:!en work is necessary to preserve
perisable goods8
C!To prevent serious obstruction or prejudice
to te business or operations of te E'8
and
!en it is necessary to avail of favorable
weater or environmental conditions
were performance or )uality f work is
dependent tereon!
Art 9) CO@"UTAT=ON O< ADDTL
CO@"ENSAT=ON
cas wage- – e*cludes noncas value of facilities
( if only cas wage is te basis of <T rate, it
is unfair to te worker because as dened
in ?rt 24, wage- includes te value of  compensation for work rendered by te EE on
facilities, ence te value of facilities
sould not be e*cluded wen computing
<T pay
(  <T rate sould be based on te regular
wage- +include te value of facilities.
C) ; EEL REST "ER=ODS
Art 97) R=6>T TO EEL REST DA 
#uration6 at least ": consecutive rs after every
 consecutive normal work days
( all establisments & enterprises may operate or
open for business on %undays & olidays
provided tat te EEs are given te weekly rest
day & te benets provided under te law
o #etermines6 Te E' determines and
scedules te weekly rest period subj to te ;6
$!57?8
"!'ules & regulations issued by te %ec of 
Labor8 and
9!EE@s preference based on religious grounds!
+en suc preference will prejudice te
business of te E', and no oter remedial
measures are available, te weekly rest pd
may be sceduled to meed te EE@s coice
for at least " days a mont
Art 9;) >EN T>E ER @A REIU=RE OR 
ON A REST DA 
1'6 Te E' may not re)uire te EEs to work on a
rest day
6 E*ceptions
$!Hn cases of urgent work to be performed on
te macinery, e)uipment or installation8
"!To prevent loss or damage to perisable
goods8
9!Hn case of actual/impending emergencies
caused by force majeure to prevent loss of 
life and property, or imminent danger to
:!ere te nature of work re)uires
continuous operations and te stoppage of 
work may result in irreparable injury/loss
to te E'8
due to special circumstances, were te
E' cannot ordinarily be e*pected to resort
to oter measures8 and
!Under te circumstances analogous to te
foregoing as determined by te %ec of 
Labor!
Note6 Te failure to work during an EE@s rest day
does not justify disciplinary sanction of 
outrigt dismissal, more so wen justiable
grounds e*ist for te said failure!
Note6 en an EE volunteers to work on is rest
day under oter circumstances, e may be
allowed to do so, provided e e*presses suc
desire in writing and e is paid te addtl
compensation for working on is rest day
Art 9() CO@"ENSAT=ON <OR REST DA-
SUNDA OR >OL=DA OR 
>remium pay or #i;erential compensation – addtl
days wen normally e sould not be working
suc as special olidays and weekly rest days
"2
Note6 Tis article does not proibit a 57? ! Last #ay of te Jear
stipulation for iger benets
5! %pecial Koliday +for all scools.
Dormulas to 5ompute ages on Kolidays E#%? 'evolution ?nniversary
$!Dor 'E1UL?' K<LH#?J%
a! Hf it is an EE@s regular workday #! Local Koliday
i! Hf unworked – $GGR  Tose declared by law or ordinance
ii! Hf worked
$! $st 3rs – "GGR 'egular Koliday %pecial #ay
"! e*cess of 3rs – >lus 5ompensable even Not compensable if 
9GR of ourly rate of  if unworked subj to unworked
said day certain conditions
b! if it is an EE@s rest day Limited to te list Not e*clusive since
i! if unworked – $GGR enumeration a law or ordinance
ii! if worked may provide for
$! $st 3rs – plus 9GR of  oter special
"GGR olidays
"! e*cess of 3 rs – plus 9GR 'ate is "GGR of te 'ate is $9GR of te
of ourly rate of said day regular rate if   regular wage if  
"! Dor declared %>E5H?L #?J% suc as %pecial worked worked
Non(orking #ay, %pecial >ublic Koliday,
%pecial National Koliday and nationwide ?ddtl 5ompensation for ork on a 'est day,
special days %unday or Koliday
$! Hf unworked – no pay, unless #ay 'ate of ?ddtl
tere is a favorable company 5ompensation
policy, practice or 57? granting ork on a 9GR of regular wage
payment of wages on special sceduled rest day
days even if unworked No regular 9GR of regular wage
"! Hf worked workdays and no for work performed
a! $st 3rs – plus 9GR of  specic rest days on %undays &
te daily rate of $GGR olidays
b! e*cess of 3rs – plus ork on %unday 9GR
9GR of ourly rate on wen it is is
said day establised rest day
9! Dalling on te EE@s rest day and ork on special 9GR
if worked oliday
a! $st 3rs – plus CGR of 
ork on special CGR
te daily rate of $GGR
oliday falling on
b! e*cess of 3rs – plus
sceduled rest day
9GR of ourly rate on
ork on regular "GR of regular
said day
oliday falling on wage
9! Dor tose declared as %>E5H?L <'WHN1
sceduled rest day
K<LH#?J
( for work performed an EE is entitled only
to is basic rate
Art 9F) R=6>T TO >OL=DA "A 
List of %pecial #ays >roc! :C2 Koliday pay – a day@s pay given by law to an EE
even if e does not work on a regular oliday!
( Ht is limited to te regular/legal olidays
?! 'egular Kolidays
listed by law!
$! New Jear@s #ay
( EE sould not ave been absent w/o pay on
"! Baundy Tursday
te working day preceding te regular
9! 1ood Driday
:! ?raw ng Wagitingan oliday
Note6 Hn addition to te E*ceptions in ?rt 3",
C! Labor #ay
Koliday pay is n/a to EEs of retail and service
! Hndependence #ay
establisments regularly employing $G workers
4! National Keroes #ay
or less
3! 7onifacio #ay
2! 5ristmas #ay
$G! 'i0al #ay 'ule on 5ompensability – compensable weter
worked or unworked subj to certain conditions!
7! %pecial +Non(working.#ays • Legal oliday falling on a %unday does
$! 7lack %aturday not create an addtl oblig for te E' to
"! Ninoy ?)uino #ay pay e*tra, aside from te usual oliday
9! ?ll %aints #ay pay to its montly paid EEs
:! Nov "
C! #ec ": Koliday pay of Bontly paid EEs

9G
1'6 for te company w/ a (day working
scedule, te divisor 9$: already means tat
te legal olidays are included in te montly
pay of te EE! Te divisor is arrived at by
subtracting all %undays from te total number
of calendar days in a yr
1'6 for a company w/ a C(day working scedule,
te divisor "$ means tat te oliday pay is
already included in te montly salary of te EE
Koliday pay of Teacing >ersonnel >aid per
Lecture Kr
( not entitled to payment of oliday pay since
tey are paid by te rs worked8 and no
class days- means no work for tem
( entitled to teir regular ourly rate on days
declared as special olidays or wen
classes are called o; or sortened on acct
of typoons, Aoods rallies, and te like
#ouble Koliday >ay +?raw ng Wagitingan & 1ood
Driday on te same day.
$!"GGR of te basic wage
a! entitled even if said oliday is
unworked
b! to give EE only $GGR would reduce
te number of olidays under te
law
"!:GGR if e worked on " regular olidays
falling on te same day
9!C"GR if e worked on " regular olidays
falling on te same day and at te same
time falling on a sceduled rest day
%ingle Koliday 'ule6 provided tat te EE
$!worked8
"!was on leave w/ pay8 or
9!was on autori0ed absence on te day prior
to te regular oliday!
%uccessive 'egular Kolidays6 to be entitled to "
successive olidays, te EE must6
$!be present on te day immediately
preceding te rst oliday8 or
"!be on leave w/ pay!
• <terwise, e must work on te rst
oliday to be entitled to oliday pay on
te second regular oliday
E;ects of 7usiness 5losure on Koliday >ay
Hf regular oliday occurs during6
$!Temporary or periodic sutdown and
temporary cessation of work of an
establisment te regular olidays
falling w/in te period sall be
compensated!
"!5essation of operation of an enterprise due
to business reverses as autori0ed by te
%ec of Labor te regular oliday may not
be paid by E'
C 9H) R=6>T TO SER=CE =NCENT=E LEAE
4S=L5
5oncept6 C days leave w/ pay for every EE wo
as rendered at least $ yr of service
$ yr of service – service w/in $" monts, weter
continuous or broken, reckoned from te date
te EE started working including autori0ed
absences and paid regular olidays unless te
number of working days in te establisment
as a matter of practice/policy is less tan $"
monts
%HL is N/? to te ;6
$!EEs of te 1ovt
"!#omestic elpers and persons in te
personal service of anoter8
9!Banagerial EEs
:!Dield personnel wose performance is
unsupervised or tose wo are paid a
*ed amt for performing work irrespective
of te time consumed in te performance
tereof 
C!Tose already enjoying te said benets
!Tose already enjoying vacation leave w/
pay for at least C days8
4!Tose employed in establisments regularly
employing less tan $G EEs
S EEs engaged on task/contract basis or paid
purely commission basis are not automatically
e*empted from te %EL unless tey fall under
te classication of eld personnel!
5onversion to Bonetary E)uivalent
%HL is 5<BBUT?7LE or convertible to cas if not
used or e*austed at te end of te yr
7asis of conversion6 te salary rate at te date of 
commutation
?L%< Entitled to %HL
$!EE illegally dismissed
"!>art(time workers
9!>iece(rate workers6
a! orking inside te premises of E'
& tus are under direct supervision
of te E'  entitled
b! orking outside te premises of 
te E' wose ours of work cannot
be ascertained w/ reasonable
certainty and tus are not under
te direct supervision of te
E'not entitiled
EEs w/ salaries above Bin age6 te di;erence
bet te min wage and te actual salary
received by te EEs cannot be deemed as teir
$9t mont pay and %HL pay
Pacation & %ick Leave
( not statutorily re)uired but is a matter of 
management discretion or 57?
1'6 7enets are non(cumulative and non(
commutative8 must be enjoyed by te EE w/in
$yr oterwise forfeited
6 wen te labor law contract or te
establised practice of te E' provides
oterwise
%HL PL/%L
9$
 Bandatory ?rt 2C Poluntary grant ( in case te service carge is abolised, te
+E'@s policy or 57?. sare of te covered EEs sall be
Hntended to Hntended to a;ord a considered integrated in teir wages
alleviate te laborer a cance to ( te basis of te amt to be integrated sall
economic condition get a muc needed be te average sare of eac EE for te
of te workers for it rest to replenis is past $" monts immediately preceding
acts as replacement energy and renew te abolition
for regular income is e=ciency
tat would not be >ooled Tips
earned during suc ( were an establisment does not collect service
instance carges but as a practice/policy of pooling
5annot be waived Bust be demanded tips given voluntarily by its customers, te
in its opportune pooled tips sould be monitored, accounted for
time8 silence is and distributed in te same manner as te
waiver service carges
5ommutable Not commutable
Title ; A6ES
>arental +%olo(parent. Leave C 7
( not more tan 4 working days every yr Art 9$) Denitions
( rendered to an EE wo as rendered service >erson – an individual, partnersip, assoc, corp,
at least $yr business trust, legal rep, or any organi0ed
( no E' sall discriminate against any solo group of persons
parent EE w/ respect to terms & conditions Employer – any person acting directly/indirectly in
of ENT on acct of is/er status te interest of an E' in relation to an EE &
( a cange in te status/circ of te parent sall include te 1ovt & all its brances, subd,
claiming benets under tis ?ct suc tat & instrumentalities, all govt(owned/(controlled
e/se is no longer alone w/ responsibility corps & institutions, as well as non(prot
of parentood sall terminate is/er private institutions/orgs!
eligibility for tese benets Employee ( any indiv employed by an E'
( not convertible to cas unless oterwise ?griculture – includes farming in all its brances,
agreed and among oter tings, includes te
cultivation & tillage of soil, dairying, te
7attered woman leave production, cultivation, growing & arvesting
( female EE wo is a victim of violence is of any agricultural & orticultural commodities,
entitled to paid leave of $G days in te raising of livestock or poultry, and any
addition to oter paid leaves! practices performed by a famer on a farm as
( E*tendible wen necessity arises an incident to or in conjunction wit suc
( EE as to submit certication from te farming operations, but does not include te
punong brgy, kagawad, prosecutor or clerk manufacturing or processing of sugar,
of court tan an action under '? 2"" as coconuts, abaca, tobacco, pineapples or oter
been led and is pending farm products!
Employ – includes to su;er or permit to work
Baternity & >aternity Leave
age – paid to any EE8 sall mean te
renumeration or earnings, owever
Art 98) SER=CE C>AR6ES designated, capable of being e*pressed in
5oncept6 ?ll service carges collected by otels, terms of money, weter *ed or ascertained
restaurants, and similar establisments sall on a time, task, piece, or commission basis, or
be distributed as follows6 oter metod of calculating te same, w/c is
$!3CR for all covered EEs to be e)ually payable by and E' to an EE under a
distributed among tem written/unwritten contract of ENT for work
"!$CR for disposition by mgt to answer for done or to be done, or for services rendered
losses and breakages and distribution to and includes te fair and reasonable value, as
EEs receiving more tan >"k amont at determined by te %ec of Labor, of board,
te discretion of te mgt in te latter case lodging, or oter facilities customarily
5overage6 only to otels, restaurants, and similar furnised by te E' ro te EE!
( all EEs are covered, regardless of teir • Hncludes commissions – te
position, designation, ENT status, recompense compensation/reward of an
irrespective of te metod by w/c teir agent, salesman, e*ecutor, trustee,
wages are paid, e*cept managerial EEs receiver, factor, broker or bailee, wen
#istribution – distributed to paid EEs at least once te same is calculated as a percentage
every " weeks or "* a mont at interval of at on te amt of is transactions or on te
least $ days prot of te principal
'ule in case of abolition
 onco v 'L)6 ^uelig was made to
pay te terminated EE +due to
9"
 retrencment., separation pay based Dair & reasonable value – sall N<T include any
not only on te basic salary, but also on prot to te E' or to any person a=liated w/
te commissions, transpo & emergency te E'
living allowances! A6ES SALAR  
Even if commissions were in te form of  5ompensation for #enotes a iger
incentives or encouragement, still tese manual labor, degree of ENT, or a
commissions are direct renumerations skilled/unskilled, superior grade of 
for services rendered w/c contributed to paid at stated times, services, and
te increase of income of te E'! Te and measured by implies a position or
nature of work of a salesman & te te day, week, o=ce
reason for suc type of renumeration mont, or season
for services rendered demonstrate tat Hndicates %uggestive of a
commissions are part of teir wage or considerable pay for larger and more
salary! +%ome salesmen do not receive a lower and less permanent or *ed
any basic salary but depend on responsible compensation for
commissions & allowances or caracter of ENT more important
commissions alone, altoug an EE(E' service
relationsip e*ists.! Kas a less e*tensive 5ompensation of 
meaning tan clerks, o=cers of 
• Hncludes *acilities or commodities – fair salary8 being pub corps, and pub
& reasonable value of board, lodging, or ordinarily restricted o=ces
oter facilities customarily furnised by to sums paid as ire
te E' to te EE! or reward to
domestic or menial
?n E' may provide, for instance, food & servants and to
ousing to is EEs but e may deduct sums paid to
teir values from te EE%@ wages to be artisans, mecanics,
determined by te %ec of Labor! laborers, and oter
EEs of like class
Snac/s Hn many situations, owever, and as te
4GR ( deducted from wages +must be %5 states, tey are in essence
autori0ed in writing. synonymous
9GR ( subsidi0ed by te E'
<AC=L=T=ES SU""LE@ENTS
Loging #acilit' – te cost of   Hnclude articles or
operation & maintenance, including services for te
ade)uate depreciation plus amt of  benet of te EE or
capital invested by te E', provided is family but sall
tat if te total is more tan te *air  N<T include tools of 
rental value   + or te fair price of te te trade or articles
commodities or facilities o;ered for or service primarily
sale. for te benet of 
te E' or necessary
Dair rental value (sall be te to te conduct of 
reasonable cost of te operation & te E'@s business
maintenance! age(deductible Not wage(
deductible
'ate of depreciation & depreciated amt 7enet/privilege 7enet/privilege
– tose arrived at under good part of te laborer@s given to te EE w/c
accounting practices basic wages, constitutes an e*tra
renumeration above
1ood accounting practices – sall N<T & over is basic or
include accounting practices w/c ave ordinary earning or
been rejected by te 7H' for HT wage
purposes  Te distinction bet a facility & a
supplement is in te  purpose, +not te
#epreciation – sall include kind. of te item!
obsolescence
 tate +arine )orp & oyal Line, nc% v )e-u
 Hn order tat te cost of facilities
eamen.s Assoc, inc/  Te vessel crew were
furnised by te E' may be carged provided w/ free meals by te sip owners
against an EE, is acceptance of suc +petitioner., not part of teir wages but as a
facilities must be voluntary  necessary matter in te maintenance of te
• E*cludes allowances ( ealt & e=ciency of te crew during te
voyage! Tey sould not be deducted from

99
 teir wages! Te deductions sould be dislocation factor, and b. limited tenure! %56 Hf 
returned to tem! an E' accords EEs te same position & rank,
 Ato$0ig 2edge Assoc v Ato$0ig 2edge/ te presumption is tat tese EEs perform
%upplements constitute e*tra renumeration or e)ual work! Tere is no sowing tat foreign(
special privileges or wages, wile facilities on ires perform "CR more e=ciently or
te oter and, are items of e*pense e;ectively tan te local(ires! 7ot groups
necessary for te laborer@s & is family@s ave similar functions & responsibilities w/c
e*istence & substinence, so tat by e*press tey perform under similar working conditions!
provision of law, tey form part of te wage  Te dislocation factor- and limited tenure-
and wen furnised by te E' are deductible cannot serve as valid bases for te distinction
terefrom, since if tey are not so furnised, in salary rates, and are ade)uately
te laborer would spend and pay for tem just compensated by certain benets accorded
te same! tem w/c are not enjoyed by local(ires
+ousing, transpo, sipping, ta*es, ome leave
Re.uire!ents #or Deucting alue o#  allowance.!
<acilities
$! >roof must be sown tat suc facilities ?gricultural ork Hndustrial ork
are customarily furnised by te trade +e*! ork on te soil and en te arvests
5ompany policy or guideline sowing tat its arvests are processed into
te meal & lodging are part of te salary.8 nised product or
"! Te provision of deductible facilities must transformed to
be voluntarily accepted in writing by te anoter product
EE8 Lower rate Kiger rate
9! Dacilities must be carged at fair & +?gricultural EEs. +industrial EEs.
reasonable value!
Agricultural Acti2ities
+a-eza v 'L) 6 Te E' failed to meet any of  • >reparation of te soil, planting of 
te re)uirements! Bore signicantly, te food ramie stalks and transporting tem to
& lodging or te electricity & water consumed te stripping seds, stripping te bers
by te EE were not facilities, but supplements! w/ te use of decorticating macines
Kotel workers are re)uired to work di;erent run by electricity, drying te wet bers,
sifts and are e*pected to be available at passing tem troug te bruser to
various odd ours, teir ready availability is a cleanse tem of impurities and baling
necessary matter in te operations of  te ers for te market
respondent@s otel! • >lanting & arvesting sugar cane &
oter cores incidental to ordinary
1ratuity ( 1iven freely or w/o recompense8 a gift8 farming operations
someting voluntarily given in return for a
•  Tillage of te soil, raising of crops
favor or services8 a bounty8 a tip!
including discovery of plant pests and
( gratuity pay is not intended to pay a
teir eradication by means of  
worker for actual services rendered! Ht is a
insecticides
money benet given to te workers wose
purpose is to reward EEs wo ave • Dispond business
rendered satisfactory & e=cient service to •  farmands employed to cultivate te
te company!- vegetable garden of a non(agricultural
( Not mandatory &  not part of labor corp are not agricultural workers
standard law
Art 9) Tis title sall NOT a%%l' to:
? A fair day’s wage for fair day’s labor.” – if  7) <ar! tenanc' or leaseolK
tere is no work performed by te EE, tere ;) Do!estic ser2ice
can be no wage or pay unless te laborer () "ersons wor/ing in teir res%ecti2e
was able, willing and ready to work but was o!es in neele wor/ or
prevented by te mgt or was illegally locked F) =n an' cottage inustr' ul'
out, suspended or dismissed! registere in accorance wG law)

Equal pay for equal work.” – EEs working in

te >K, if tey are performing similar functions C ; @=N=@U@ A6E RATES
& responsibilities under similar working
conditions, sould be paid under te principle Art 99) Te !ini!u! wage rates #or
of e)ual pay for e)ual work! agricultural an non1agricultural EEs an
wor/ers in eac an e2er' region o# te
nternational chool Alliance o* Educators v  countr' sall be tose %rescribe b' te
3uisum-ing/ H% ires as members of te Regional Tri%artite ages an
faculty, $.foreign(ires and ". local(ires! Te "roucti2it' Boars
scool grants foreign(ires salary of "CR more
tan tat of local(ires due to a. te

9:
Statutor' @ini!u! age   – te lowest wage
rate *ed by law tat an E' can pay is
workers! 5ompensation w/c is less tan suc
minimum rate is considered an underpayment
tat violates te law!
( determined for eac region by te regional
wage boards
( provided w/ margin to take care of  security and ealt care benets! 7B7Es
contingencies, suc as increase of prices of  are also e*empt from income ta*!
commodities and increase in wants and to
provide means for a desirable improvement
in EE@s mode of living +? person@s needs
increase as is means increase!.
E,ects6
$! benets all wage earners by setting a
Aoor below w/c teir pay cannot fall
"! raises te standard of competition
among E's, since it would protect te
fair(minded E' from te competition of  plant and e)uipment are situated, sall
te E' wo pays is workers a wage
below subsistence8
9! is a prere) to te adoption of te %%%,
w/c re)uires contributions from EEs
temselves
Abilit' to %a' i!!aterial
( E' cannot e*empt imself from liability to
pay minimum wages because of poor
nancial condition of te company
( Lack of funds is not a valid defense
because te payment of minimum wage is
a mandatory statutory obligation
EEs not estopped to sue for di;erence in amount
of wages
( te acceptance by an EE of te wages paid im
w/o objection does not give rise to estoppel
precluding im from suing for te di;erence
bet te amt received and te amt e sould
ave received pursuant to a valid minimum
wage law
E0e!%tions to te co2erage o# te Rule on
!ini!u! wages
$! Kouseold or domestic elpers, including
family drivers and persons in te personal
service of anoter8
"! Komeworkers engaged in needle(work8
9! orkers employed in any establisment
duly registered w/ te National 5ottage
Hndustries and #evt ?utority in
accordance w/ '? 9:4G provided tat suc
workers perform te work in teir
respective omes8
:! orkers in any duly registered cooperative
wen so recommended by te 7ureau of  "! Te practice is consistent and deliberate8
5ooperative #evt and upon approval by
te %ec of #<LE,  provided however , tat
suc recommendation sall be given only
for te purpose of making te cooperative
viable and upon nding and certication of  unilaterally by te E'!
said 7ureau supported by ade)uate proof,
tat te cooperative cannot resort to oter
remedial measures w/o serious loss or
prejudice to its operation e*cept troug
its e*emption from te re)uirements of  drivers and conductors, aside from teir
te 'ules! Te e*emption sall be subj to
suc terms & conditions and for suc
period of time as te %ec of Labor may
prescribe!
C! 7arangay Bicro 7usiness Enterprises
+7B7E. +under '? 2$43/7B7E Law.,
provided tat all EEs covered under tis
?ct sall be entitled to te same benets
given to any regular EE suc as social
B@BE – any business entity or enterprise
engaged in te production, processing
or manufacturing of products or
commodities, including agro(
processing, trading and services, wose
total assets including tose arising from
loans but e*clusive of te land on w/c
te particular business entity@s o=ce,
not be more tan >9B! +comprises no
less tan 2GR of > E's.
! 'etail %ervice Establisments +by virtue of 
'? 4"4/age 'ationali0ation ?ct.
a! regularly employing not more tan
$G workers8 and
b! upon application w / and as
determined by te 'egional 7oard
in accordance w/ te ''s of te
5ommission!
Hf not granted, EEs sall receive te
approp compensation due tem ] $R
interest per mont retroactive to te
e;ectivity of te ?ct!
7urden of proving suc e*emption
rests on te E'!
4! <ter e*emptions by provisions of age
<rders by te 'egional Tripartite age &
>roductivity 7oard
Art 7) "RO>=B=T=ON A6A=NST
EL=@=NAT=ON OR D=@=NUT=ON O<
BENE<=TS
%o tat te rule against diminution of 
supplements/benets may apply, it must be
sown tat6
$! Te grant of te benet is founded on a
policy or as ripened into a practice over a
long period8
9! Te practice is not due to error in te
construction or application of a doubtful or
di=cult )uestion of law8 and
:! Te diminution or discontinuance is done
<ooG@eal Allowance
 )e-u Auto-us )o v 4nited )e-u Auto-us
EEs Assoc6 te company used to pay its
regular salary, a certain percentage of 
teir daily wage, as allowance for food!
9C
 #iscontinued by E' upon e;ectivity of  57?s, are not w/in te proibition of ?rt $GG
Binimum age Law! 5H'6
 company practice
Nonconributor' Retire!ent "lan
'estle P5 nc% v 'L) 6 Te fact tat te
retirement plan is noncontributory, does
not make it a nonissue in te 57?
negotiations! Te EEs ave a vested rigt
over te e*isting benets voluntarily
granted to tem by teir E'! Te latter
may not unilaterally witdraw, eliminate
or diminis suc benets!
@ontl' E!ergenc' Allowance
 % 6iangco & 7% 6iangco v 5on% Leogardo 6
E's, sing operator and sbroker,
discontinued paying te batillos +wo
work by unloading te s from te
vessels  dependent on arrival of te
vessels, ence tey work only a few days
a mont averaging : rs a day. a *ed
montly emergency allowance +wic
tey ad been paid as a matter of  allowance given for eac day wen
practice/verbal agreement.  illegal!
<ull 7(t !ont %a'
 Arco +etal Products v amahan ng
+anggagawa 6 E' cannot srink away
from its responsibility by merely claiming
tat its acts of giving full $9 t mont pay
to EEs wo ave not worked for te full
year is a mistake! Ht as become practice!
E0ce%tions to te Non1Di!inution Rule
$! 5orrection of error8
"! Negotiated benets8
9! age order compliance8
:! 7enets on reimbursement basis8
C! 'eclassication of position8
! 5ontingent benets or conditional bonus8
and
4! >roductivity incentives!
Not establise %racticeK @ista/e in
A%% o# Law
8lo-e +ac$ay v 'L)6 E' ad been
computing te 5<L? by multiplying
>9/day by 9G days! Upon e;ectivity of  7ut,
age <rder F, and in virtue tereof, it
used "" days or actual days of work!
Union disagreed and claimed 9G days
basis as company practice! %56 Not
voluntary company practice! To be
considered as suc, it sould ave been
practiced over a long pd of time, and
must be sown to ave been consistent
& deliberate and not merely an
erroneous application of te law!
amahang +anggagawa sa 6op orm v  allowances! %56 Tis reclassication is in
'L)/ 1ranted tat te E' ad granted
an across(te(board wage increase
pursuant to '? 4"4, tat single instance
may not be considered an establised
company practice!
• Negotiate benets  – benets initiated
troug negotiation bet E' & EEs, suc as
because, as products of bilateral contract,
tey can only be eliminated or diminised
bilaterally! at te law forbids is
elimination/modication done unilaterally
by te E'!
• age Orer Co!%liance – te giving of 
across(te(board salary increases so as to
rectify a salary distortion caused by
compliance w/ a wage order cannot be said
to ave ripened into a company practice!
Pag0asa teel 2or$s v )A 6 To ripen into a
company practice tat is demandable as a
matter of rigt, te giving of te increase
sould not only be by reason of a strict legal
+as age <rder. or contractual oblig +57?.,
but by reason of an act of liberality on te
part of te E'!
Benet on Rei!burse!ent Basis 
o >er diem allowance – a daily
an EE is away from is ome base8
intended to cover teir cost of 
lodging & subsistence wen on
duty outside of teir permanent
stationif te EE did not leave is
permanent station and spent
noting for meals & lodging outside
tereof, ten e is not entitled to
per diem as tere is noting to be
reimbursed
o Bontly ration of gas given to
certain managerial EEs is not part
of teir basic salary!  its
temporary revocation does not
constitute a diminution of te EE@s
fringe benets!
o  Te elimination of an e*isting
benet in e*cange for an e)ual or
better one does not violate ?rt $GG!
Reclassication o# "ositionK
"ro!otion
o from rank(and(le to supervisory (
te position olders lose <T pay
and oter benets but ?rt $GG is
not violated!
promotion & position
reclassication must be done in 1D!
 'ational ugar e:neries )orp v 'L
& ' 4nion6 E' implemented a ob
Evaluation program a;ecting all EEs!
'espondents were reclassied from rank(and(
le to supervisory/managerial positions!
7ecause of tat, tey lost teir <T, rest day &
oliday pay but it was also sown tat tey
received upward adjustments in basic pay &
essence a promotion w/c is one of te
 jurisprudentially recogni0ed e*clusive
prerogatives of mgt, provided in is done in 1D!
Union failed to prove 7D on te part of te E'!
>romotion – te advancement from one
position to anoter wit an increase in duties &
9
responsibilities as autori0ed by law and
usually accompanied by an increase in salary
ContingentGConitional BenetsK
Bonus
( ?rt $GG is n/a to a benet wose grant
depends on te e*istence of certain
conditions, so tat te benet is no
demandable if tose preconditions are
absent!
7onus – an amt granted & paid to an EE for is
industry & loyalty w/c contributed to te
success of te E'@s business and made
possible te reali0ation of prots! Ht is an act of  wereby a worker agrees to receive less
generosity!
( it is not a demandable and enforceable
oblig! 7UT_ Ht is so wen it is made a part of  cannot bar an EE from demanding benets
te wage/salary! Hn suc a case, te latter
would be a *ed amt and te former would be
a contingent one dependent upon te
reali0ation of prot
<N bonus forms part of wages6 depends on
te circs and conditions for its payment!
a! Hf it is an addt@l compensation w/c te
E' promised and agreed to give w/o
any conditions imposed for its payment,
suc as success of business or greater
production or output, ten it is  part o*  for its past generosity to its EEs!
the wage%
b! Hf it is paid only if prots are reali0ed on
a certain amt of productivity acieved,
it cannot be considered part of te
wages!
c! ere it is not payable to all but only to
laborers and only wen te laborer
becomes more e=cient or more
productive, it is only an inducement for
e=ciency, a pri0e terefor, not a part of  (
te wage!
Luzon tevedoring )orp case/ ?n E'
cannot be forced to distribute bonuses
w/c it can no longer a;ord to pay! To
old oterwise would be to penali0e te
E' for is past generosity!
 American 2ire & )a-le aily ated EEs
4nion v A2) )o nc & the )A/  Dor a bonus to
be enforceable, it must ave been promised by
te E' and e*pressly agreed by te parties, or
it must ave ad a *ed amt and ad been a
long and regular practice on te part of te E'!
E.uit' or Long "ractice as Basis o#  ( %5<>E6 all rank(and(le EEs, regardless or
Bonus
( Ph Education )o% nc v )/ even if a
bonus is not demandable for not being part
of te salary of te EE, te bonus may
neverteless be granted on e)uitable
consideration!
( +arcos v 'L)/if one enters into a
contract of ENT under an agreemt tat e
sall be paid a certain salary by te week
or some oter stated period and, in
addition, a bonus, in case e serves for a
specied lengt of time, tere is not reason
for refusing to enforce te promise to pay
te bonus, if te EE as served during te
stipulated time, on te ground tat it was a
promise of mere gratuity!
Ser2ices Renere as Basis o# Bonus
( EEs wose ENT as been terminated may
still demand paymt of service under
company policy and of te bonuses! Te '
is not defeated by a release & )uitclaim-
(   L8 +arcos v 'L) & nsular Li*e 6 Te
fact tat an EE as signed a satisfaction
receipt for is claims does not necessarily
result in te waiver tereof! Te law does
not consider as valid any agreement
compensation tan wat e is entitled to
recover! ? deed of release or )uitclaim
to w/c e is legally entitled!
No "rot- No Bonus
( 6raders oyal an$ v 'L)/   Te matter
of giving te EEs bonuses over & above
teir lawful salaries & allowances is entirely
dependent on te prots, if any, reali0ed by
te bank from its operations during te
past year! %ince te scal condition aving
declined, te bank may not be forced to
distribute bonuses w/c it can no longer
a;ord to pay and, in e;ect, be penali0ed
• >roductivity Hncentives ( bonus tat comes
from productivity gain, or improved output
witout increasing input
( '? 24$6 EE@s sare is in te nature of 
salary bonus proportionate to increases in
current productivity over te average for
te preceding 9 consecutive yrs
( Not gratuitous8 it is a benet claimable only
on te basis of predened output level
5ontingent/conditional8 if tey are not
given because te preconditions are
absent, ?rt $GG is not violated e*cept
peraps if tere is contractual commitment
to te contrary!
"D H7: 7(T> @ONT> "A 
( adds $(mont pay to te usual $"(mont
earnings! 7UT, does not cange te EE@s
basic wage! Kence, <T pay, restday pay,
%%% contributions & oter roll(up or add(on
payroll costs do not increase!
( 'e)uires at least $ mont service during
te calendar yr
salary rate!  managerial & supervisory
EEs
( EI5E>TH<N6 E's wo are already paying
teir EEs a $9 tB> or its e)uivalent- are
not covered by te decree! +te intent of 
te law was to grant addt@l income to EEs
not already rcving te same not to all EEs
but only to te unfortunate ones wo are
not paid a $9tmont salary or wat
amounts to it, by watever name called.
its E)uivalent - – sall include Imas bonus, mid(
year bonus, prot(saring payments and oter
cas bonuses amounting to not less tan $/$"
94
 of te basic salary! en an E' pays less tan
$/$" of te EE@s basic salary, te E' sall pay
te di;erence! ( ole P5 nc v Leogardo
 sall not include cas & stock dividends,
5<L?s, & all oter allowances regularly
enjoyed by te EEs, as well as nonmonetary
benets +food, free electricity, etc.
ramanlis arms nc% v +inister o* La-or/
%uc benets in te form of food or free
electricity are not te proper substitute for te
$9tB> re)uired by law! Neiter may year(end
rewards for loyalty & service be considered in
lieu of $9tB>
 Hf te bonus was included in or considered as
the e<uivalent   of te $9tB>, tere would be
no need for a specic provision of suc bonus
in te 57?! 7ut if te 57? did provide for a
bonus in graduated amts depending on te
lengt of service, for e*ample, te intention is
clear tat te bonus provided in te 57? was
meant to be in addition to te legal
re)uirement of $9tB>!
$9tB> – deemed incorporated in te 57?,
employment contract!   Te absence of an
e*press provision obligating te E' to pay
$9tB> to te EEs is immaterial
$:t B> – basically a bonus, and  gratuitous8
( mgt prerogative & cannot be forced upon
te E'8 not legally demandable
E0clusions in te Co!%utation o# 7( t @"
$9tB> \ $/$" of te -asic salary of te EE w/in a
calendar year
V6 at does =-asic salary>   includeZ
?6 7asic salary sall include all renumerations or
earnings paid by an E' to an EE for services
rendered
 Not included + *ringe -ene:ts"
• 5<L?s granted pursuant to ># C"C/L<H
$4:,
• prot(saring payments and all allowances
and
• monetary benets w/c are not considered
or integrated as part of te regular or basic
salary of te EE
• <T >ay
Dringe benets – all allowances & monetary
benets w/c are not considered/integrated
as part of te basic salary
  Te items e*cluded by te decree may be
included troug esta-lished practice or
agreement  binding on te E'
V6 ?re commissions included in te computationZ
?6 Ht depends!
$! Hf te commissions may properly be
considered part of te basic salary, tey
sould be included in computing te
$9 TKB>
Ph uplicators nc v 'L)/   te sales
commission earned by te sales men
constitute part of teir compensation,
considering tat te E' pays tem a
small *ed/guaranteed wage8 te
greater part being composed of te
sales/incentive commissions earned on
actual sales closed by tem
%ales commissions – are intimately related
or directly proportional to te e*tent or
energy of an EE@s endeavors8 paid upon te
specic results acieved by a salesman(EE8
it is a percentage of te sales closed by a
salesman & operates as an integral part of 
suc salesman@s bsic pay!
"! Hf tey are N<T integral part of te
basic salary, ten tey sld be
e*cluded!
oie06a$eda )ase6 te commissions
paid to medreps were e*cluded from
te term basic salary- because tese
were paid to tem as productivity
bonuses-! Tey are generally tied to te
productivity or capacity for revenue
production of a corp8 suc bonuses
closely resemble prot(saring
payments and ave no clear direct or
necessary relation to te amt of work
actually done by eac indiv EE!
 Te commissions pd by 7oie to its
medreps could not ave been sales
commissions! Bedreps are not
salesmen8 tey do not e;ect any sale of 
any article at all! Tey are EEs engaged
in te promotion of parmaceutical
products or med devices manufactured
by teir E'! Tey promote suc
products by visiting identied
pysicians & inform suc pysicians
orally/w/ te aid of brocures, of te
e*istence & cem composition of te
parma product! Te addt@s payments
given to tem were not in fact
commissions but rater in te nature of 
prot(saring bonuses!
1uaranteed wage/commission – EEs wose
income is guaranteed by way of wages and/or
commissions are entitled to a $9tB> based on
teir earnings tat include commissions!
 Ph Agricultural )ommercial & ndustrial
2or$ers 4nion v 'L)6 te bus drivers &
conductors of respondent transic co! +allegedly
paid on purely commission basis. are entitled
to $9tB> on bot teir *ed & guaranteed
wage and commission
 in te case of a bus conductor paid on
commission only as supported by is pay slips
w/c indicated te varying amount of 
93
 commissions e received eac trip not $! tose wose time & performance is
included in $9 TKB> supervised by te E'8
• piece(rate workers, esp wen tey
V6 Hs Teacers@ <verload >ay HncludedZ work in company premises +soes,
?6 Jes! Ht is considered part of teir basic pay for andicraft, garment.
te purposes of computing $9 tB> "! tose wose time & performance is
1'6 >ayments for overload work w/in 3 rs form unsupervised  by te E'!
part of te basic wage, & terefore are to be • >akyaw & takay basis – commonly
included in te computation of $9tB>! practiced in te agricultural industry
<verload – te load in e*cess of te normal load +planting, arvesting per ectare of 
of private scool teacers as prescribed by te land.
#E5% or te policies, rules & standard of  >akyaw >iece(rate
particular private scools! Bore aptly used 5ommon were te
Normal load( 3rs per working day wen te job/work output may easily
<verload work ` <vertime work to be performed is in be counted or
<vertime work <verload work bulk/volumes w/c measured
ork rendered in Bay be performed are di=cult to
e*cess of te eiter w/in or )uantify
normal working rs outside 3 rs in a
of 3 in a day day S>ayment by result is not determinative of EE(E'
'elsip! Ht is merely a metod of compensation
"ro%ortionate 7(t@" and does not dene te essence of te
( an EE wo as resigned or was dismissed relation!
at any time before te time for payment of 
te $9tB> is entitled to tis monetary Basis o# Out%ut RateK "rocess to set te
benet in proportion to the length o* time Stanar
he wor$ed during the year ! unless $! <n  petition of any interested party, or
oterwise stipulated in te 57? upon its initiative, te #<LE sall use all
available reps of E's & workers@ orgs, to
Distresse E!%lo'er – e*empted from paying determine weter te EEs in any
$9tB> upon prior  autori0ation from te %ec of  industry/enterprise are being
#<LE compensated in accordance w/ te min
wage re)mts
#i;erence of opinion in te computation of $9 tB> "! Te basis for te establisment of rates
is a nonstri$ea-le issue !  a strike eld on tis per pc, output or contract work sall be
ground is illegal% te performance of an ordinary worker of 
6o2t E!%lo'ees – not covered by $9 tB> min skill/ability!
Sea#arers  – not covered by $9 tB>8 because 9! ?n ordinary worker of min skill/ability is
tey are contractual, not regular EEs! Teir te average worker of te lowest
ENT is governed by teir 5ontract of  producing group representing CGR of te
Enlistment w/c was approved by te ><E?! Ht total F of EEs engaged in similar ENT in a
does not provide for $9 tB>! particular establisment, e*cluding
learners, apprentices & andicapped
workers employed terein!
:! ere te output rates establised by te
Art 77) "A@ENT B RESULTS 4"iecewor/5 E' do not conform w/ te standards
Te Sec o# Labor sall regulate te prescribed erein, or w/ te rates
%a'!ent o# wages b' results- incluing prescribed by te #<LE in an approp
%a/'ao- %iecewor/ an oter noonti!e order, te EEs sall be entitled to te di; 
wor/- in orer to ensure te %a'!ent o#  bet te amt to w/c tey are entitled to
#air & reasonable wage rates- %re#erabl' receive under suc prescribed
troug ti!e & !otion stuies or in standards/rates and tat actually paid
consultation wG re%s o# wor/ers & ERMs tem by te E'!
orgs)
B) As to Rate o# "a'!ent
orkers paid by results – workers wose pay is $! Tose wo are paid piece rates w/c are
calculated not on te basis of time spent on  prescri-ed in >iece 'ate <rders issued by
te job but of te )uantity & )uality or te kind #<LE
of work tey turn out! +nontime work.! F of pieces * rate per pc
( stress is placed on te unit of work ( tese workers are not covered by te 'ule
produced or te )uantity tereof  on Kours of ork +no premium & <T pay.
( a uniform amount is paid per unit
accomplised "! Tose wo are paid output rates w/c are
prescribed by te E' and are not yet
Categories o# "iece1rate wor/ers approved by te #<LE!
A) As to %resence o# control

92
 F of pcs * rate per pc as determined by
te E'!
a!. Hf te resulting amt is   tan te
statutory min daily rate in rel to te
F of rs worked, te worker will rcv
suc amt!
b!. 7UT, if te amt is less tan te
applicable legal rate, it is possible
tat te rates per pc are not in
accordance w/ te standards! Hn
tat case, te E' is re)uired by law
to pay te di;erence!
Entitle!ent o# "iece1Rate or/ers to NSD
an S=L
a! Unsupervised – no <T/%HL
b! %upervised – entitled to <T/%HL
( Te yearly commutation/cas conversion of te
%HL sould be based on teir average daily
earnings earned during te yr by te actual
number of working days or te statutory min
rate, wicever is iger!
1'6 te amt earned during te year may
e*clude 5<L?, <T pay, and premium pay,
oliday pay, N%# and company fringe benets
 tere is agreement to te contrary
Hllustration of te computation
 Total wages earned for $ yr  $" \ ave
montly earning
?BE  9GSSS \ #aily Earnings
#E * C \ ve(day incentive pay
SSS sould be te actual days of work in a
mont
Entitle!ent to >olia' "a'
( sall not be less tan is average daily
earnings for te last 4 actual working days
immediately preceding te regular oliday!
Provided however,  tat in no case sall te
oliday pay be less tan te applicable
statutory min wage rate
Entitle!ent to 7( t@"
1'6 ># 3C$ e*empts from payment of $9 tB> E's
of tose wo are paid a *ed amt for
performing specic work, irrespective of time
consumed in te perf tereof,
e*cept were te workers are paid on  piece0
wor$ -asis  +tose wo are paid a standard amt
for every pc/unit of work produced tat is
more/less regularly replicated, w/o regard to
te time spent in producing te same. in w/c
case te E' sall grant te $9 tB> to suc EEs!
 Te piece(rate worker sould ave rendered at
least $ mont work/service during te calendar
yr!
Not Entitle to >"-ND- S=L- 7( t@"
$! Dield personnel
"! Unsupervised employees
9! Engaged on task/contract basis
:! >urely commission basis
C! >aid a *ed amt for performing work
irrespective of te time consumed
Not Entitle to OT "a'
$! >aid on piece(work
"! >aid on takay
9! >aid on pakyaw
:! >aid on task basis i* their output rates are
in accordance w/ te standards under %ec
3 'ule 4 7ook 9, or were suc rates ave
been *ed by te %ec of Labor
Benets "a'able to "iece1Rate or/ers
$! %tatutory minimum wage +B.
"! Jearly service incentive leave of C days w/
pay +%HL.
9! Nigt sift di;erential +N#.
:! Koliday pay +K>.
C! Beal & rest periods +Beal/rest.
! <vertime pay +conditional. +<T.
4! >remium pay +conditional. +>>.
3! $9tBont pay +$9t.
2! oter benets granted by law, by
indiv/57? or company policy/practice
+57?.
BC 6uielines Su!!ar'
  Te rate(per(pc to be paid to a worker
sould be submitted to #<LE for approval!
 #<LE decides weter te outpu(and(pay
proposal of te E' fairly & reasonably
meets te legal B, based on te output
of ave! workers doing same products
under comparable conditions!
 Hf #<LE approves te proposal it becomes
te standard +)uota.! 7ecause te #<LE(
approved standard is presumed fair &
reasonable, a piece(rater wo does not
reac te )uota will earn less tan te
legal B and not w/ te pay formula! Hn
suc case te E' need not make up te
di; bet te legal B and te wage
actually earned!
 <n te oter and, if te outpu(and(pay
sceme as not been approved by #<LE,
or does not conform w/ #<LE(issued
orders, ten te E' may be re)uired to
pay te sortfall bet te actual earning
and te prescribed B!
  Te piece(rate pay formula needs #<LE@s
approval so ast to protect te worker@s
rigt to be paid or to earn at least te B,
and at te same time, to elp te E'
obtain te corresponding work ouput!
C ( "A@ENT O< A6ES
Art 7;) <OR@S O< "A@ENT
>roof of age payment – E' as burden of proof 
 Te H's re)uire every E' to keep a payroll! ?mong
oter tings, it must sow te lengt of time to
be paid, te pay rate, te amt actually paid,
and so on! ?N# te EE sould sign te payroll!
ER cannot %a' is wor/ers b' !eans o#:
$! >romissory notes
"! Poucers
9! 5oupons
:! Tokens
C! Tickets
! 5its
4! ?ny obj oter tan legal tender
:G
Even wen e*pressly re)uested by te EE!
6R: "a'!ent b' legal tener
: "a'!ent b' cec/ or !one' orer !a'
be allowe i# te sa!e is:
$! 5ustomary on te date of e;ectivity of te
L58
"! Necessary because of special circs as
determined by te %ec of Labor8
9! %tipulated in te 578 or
:! ere te ; conditions are met
a! Tere is a bank or oter facility for
encasment w/in $km radius8
b! Te E', or any of is agents or
reps, does not rcv any pecuniary
benet directly/indirectly from te
arrangement8
c! Te EEs are given reasonable time
during banking rs to witdraw
teir wages from te bank w/c time
sall be considered as
compensable ours worked if done
during working rs8 and
d! Te payment by ceck is w/ te
written consent of te EEs
concerned if tere is no 57?
autori0ing te payment of wages
by bank cecks!
Art 7() T=@E O< "A@ENT
1'6
$! ?t least once every " weeks8 or
"! Twice a mont at intervals not e*ceeding
$ days!
6
$! Hn case of force majeure or oter circs
beyond te E'@s control, payment must be
made immediately after suc occurrence
as ceased!
"! Hf engaged to perform a task w/c cannot
be completed in " weeks and in te
absence of 57? or arbitration award6
a! >ayment sall be made at intervals
not e*ceeding $ days, in
proportion to te amt of work
completed8
b! Tat nal settlement is made upon
completion of work!
Art 7F) "LACE O< "A@ENT
1'6 ?t or near te place of undertaking
6
$! en payment cannot be e;ected at or
near te place of work by reason of  union dues were te ' to ceck(
deterioration of peace & order conditions,
or by reason of actual or impending
emergencies caused by re, Aood or oter
calamity rendering paymt tereat
impossible8
"! en te E' provides for free transpo to
te EEs back and fort8 and
9! Under any oter analogous circs!
"roibition6 No E' sall pay is EEs in a bar,
nigt or day club, drinking establisment,
massage clinic, dance all or oter similar
places or in places were games are played w/
stakes of money or tins representing money
e*cept in te case of persons employed in
suc places!
Re.uisites #or "a'!ent tru Ban/s 4age
Rationaliation Act5
$! Tere must be written permission of te
majority of te EEs concerned in an
establisment8
"! Te establisment must ave "C/more
EEs8 and
9! Te establisment must be located w/in $
km radius to te bank
Re.uisites o# "a'!ent tru AT@
$! Te ?TB sys of paymt is w/ te written
consent of te EE concerned8
"! Te EEs are given reasonable time to
witdraw teir wages from te bank
facility w/c, if done during working rs,
sall be considered as compensable rs
worked8
9! Te sys sall allow te EE to rcv teir
wage w/in te period & te amt prescribed
under te L58
:! Tere is a bank/?TB facility w/in $km
radius from te workplace8
C! Upon te re)uest of te concerned EE, te
E' sall issue a record evidencing paymt
of wages, benets & deductions for a
particular pd8
! Te ?TB sys of paymt sall neiter result
in diminution of benets & privileges of 
te EE nor sall te latter incur addt@l
e*penses in te process8 and
4! Te E' sall assume full responsibility in
case te wage protection provisions of law
& regulations are not complied w/ under
te arrangemt
Art 7H) D=RECT "A@ENT O< A6ES
1'6 ages sall be paid directly to te workers to
wom tey are due!
6 E*ceptions
7) "a'!ent troug anoter %erson
a! Hn case of force majeure rendering
suc payment impossible provided
said person is under written
autority given by te worker for
te purpose8
b! en autori0ed under e*isting
law, including payments for
insurance premiums of te EE and
o; as been recogni0ed by te E'
in accordance w/ a 57? or
autori0ed in writing by te indiv
EEs concerned!
;) "a'!ent troug te eirs o# te
wor/er
( in case te worker as died, E' may pay
wages of te deceased worker to te eirs
of te latter w/o te necessity of intestate
proceedings!
:$
 "roceure
$. 5laimants sall e*ecute an a=davit
attesting teir relsp to te
deceased and te fact tat tey are
is eirs, to te e*clusion of all
oters +?=davit of Ne*t of Win.8
". Hn case of a minor eir, a=davit
sall be e*ecuted on is bealf by
is natural guardian or ne*t of kin8
9. ?=davit sall be presented to te
E' wo sall make paymt troug
te %ec of Labor or is rep8
:. Te rep sall act as referee in
dividing te amt paid among te
eirs8 and
C. >ayment of wages under tis ?rt
sall absolve te E' of any furter
liability w/ respect to te amt paid!
() "a'!ent troug a #a!il' !e!ber o#  $! Te sub/contractor carries on a distinct
te wor/ers #a!il'
( were te E' is autori0ed in writing by te
EE to pay is wages to a member of is family
Su!!ar' o# Legal "roibitions on ages
$. >ayment of wages in non(cas form8
". >ayment of wages in nigt and day clubs,
bars & oter similar places8
9. Non(diminution of wages8 and
:. Non(interference by te E's in te EE@s
disposition of teir wages!
Su!!ar' o# Rules on "a'!ent o# ages
at Legal Tender!
must be  promissory notes, voucers,
paid coupons, tokens, tickets, cits,
or any oter obj oter tan
legal tender
en <nce every " weeks, or
 Twice a mont at intervals of at
least $ days
ere ?t or near te place of   presumption tat te contractor is
undertaking
Kow #irectly to te EE
Art 78) CONTRACTOR OR SUBCONTRACTOR
T'%es o# Contractors uner te Law
7) Job Contracting or Subcontracting – an
arrangement wereby a principal agrees to put
out or farm out wit a contractor or
subcontractor te performance or completion
of a specic job, work or service w/in a denite
or predetermined period, regardless or
weter suc job, work, or service is t be
performed or completed w/in or outside te
premises of te principal
E0istence o# Trilateral Relationsi%
(under tis legitimate contracting te ;  Element.
CONTRACTS e*ist6
a! 5ontract for specic job, work or service
bet te principal & te
contractor/subcontractor8 and
b! 5ontract of ENT bet te
contractor/subcontractor and its workers!
Kence, te "ART=ES involved are6
$! >rincipal8
"! 5ontractor/subcontractor8 and
9! 5ontractual workers
Laws applicable between6
$! >rincipal & 5ontractor   5ivil 5ode &
pertinent commercial laws
"! 5ontractor & is EEs   Labor 5ode &
special labor laws
9! >rincipal & contractor@s EEs  no EE(E'
'elationsip
7UT E'(EE 'elsip will e*ist bet te
>rincipal & te orkers were te
contracting arrangement is not
legitimate, as in labor(only contracting
Ele!ents o# =ne%enent Contractor Job
Contracting
and independent  business and undertakes
to perform te job on is own account and
under is own responsibility, according to
its own manner and metod and free from
te control & direction of te principal in
all matters connected w/ te performance
of te work e*cept to te results tereof8
"! Te sub/contractor as su-stantial capital
or investment in tool, e)uipment and
macineries, work premises and oter
materials necessary in te conduct of is
business8
9! Te agreement  bet te principal and
sub/contractor assures te contractual EEs
entitlement to all labor & ealt
standards, free e*ercise of te ' to self(
org, security of tenure and social & welfare
benets8
:! Bust be properly registered as suc in
accordance w/ #< F$3(G"! +Te absence
of registration only gives rise to te
engaged in labor(only contracting a
presumption tat can be refuted!.
;) Labor1onl' Contracting – an arrangement
were te sub/contractor merely recruits,
supplies or places workers to perform a job,
work or service for a principal, and AN   of te
; ELE@ENTS is present6
a! Lack of substantial capital/investment
AND performance of activities directly
related to te principal@s business
+conrming element.8 or
b! Te contractor does not e*ercise te rigt
of control over te performance of te
contractual EE +conrming element.8
c! Te arrangement is merely to recruit,
supply or place workers to perform a job,
work, or service for a principal +Essential
• L<5 \ Essential Element ] eiter or bot
conrming element/s
Labor(only contracting is wrong & proibited bco0
it is an attempt to evade te obligs of an EEr6
:"
 a. To respect EE@s ' to unioni0e8 E'.
b. ' to ENT standards8  Te law creates an  Te statute creates
c. ' to security of tenure E'(EE relsp for a an E'(EE relsp for
limited purpose, i!e! a compreensive
to ensure tat te purpose, i!e! to
%ubstantial capital – capital stocks and EEs are paid teir prevent a
subscribed capitali0ation in te case of corps, wages circumvention of 
tools, e)uipment, implements, macineries labor laws
and work premises, actually & directly used by  Te principal  Te principal
te sub/contractor in te performance or becomes solidarily becomes solidarily
completion of te job, work or service liable w/ te liable w/ te
contracted out! contractor in te contractor not only
( te law does not re)uire bot substantial even te latter fails for unpaid wages
capital and investment in te form of tools, to pay te EEs but also for all te
e)uipment, macineries, etc! wages and for rigtful claims of 
violation of labor te EEs under te
'igt to control – refers to te rigt reserved to standard laws! Te L5 ?N# ?N5HLL?'J
te person for wom te service of te liability, owever L?%
contractual workers are performed, to does not e*tend to
determine not only te end to be acieved, but te paymt of  
also te manner & means to be used in backwages or
reacing tat end separation pay of 
EEs wo are illegally
nsular li*e v 'L)/  e*clusive servicing- dismissed
esp springing from a regulation issued by te >ermissible >roibited by law
Hnsurance 5ommission, and not from an >resence of   None
intention by te alleged E', does not substantial capital
necessarily mean being under te control or or investment
ENT of te entity being served! Te relsip Note6 Te principal sall be %<LH#?'HLJ liable w/
may still be classied as independent te contractor in te event of any violation of 
contractorsip because te element of control any provision of te L5, including failure to pay
is absent! wages! Tis will not prevent te principal from
claiming reimbursement from te contractor!
( EEs may resign from teir jobs to
become contractors to teir former E', but te Note6 Te principal sall be deemed te E' of te
latter sould cease controlling te means & contractual EE in any of te ; cases as
metod of doing te work allegedly declared by competent autority6
contracted, oterwise, te result is L<5! $! Labor(only contracting8 and
"! 5ontracting arrangement falling w/in te
proibitions
Su!!ar' o# "roibite Labor Contracting
$! Labor(only contracting8
"! 5ontracting tat terminates te ENT of  Art 7$) =ND=RECT ER  any person,
regular EEs, or reduces teir work rs, or partnersip, assoc or corp w/c not being n E',
reduces/splits a bargaining unit, if suc contracts w/ an independent contractor for te
contracting out is not done in 1D & not perf of any work, task, job or proj!
 justied by business e*igencies8
9! 5ontracting w/ a 5abo – person/s or labor F <eatures o# Legiti!ate Contracting
group w/c, in te guise of a labor org, $! >arties – a principal +contractee. enters
supplies workers to an E' w/ or w/o any into a contract w/ a contractor, or if te
monetary or oter consideration weter principal is imself a contractor, e enters
in te capacity of an agent of te E' or as into contact w/ a sub(contractor! ?
an ostensible independent contractor8 contracted job may be subcontracted,
:! 5ontracting w/ in(ouse agency8 partly or wolly, unless proibited in te
C! 5ontracting because of a strike/lockout8 contract!
! 5ontracting tat constitutes UL> under ?rt "! %pecic job – te contract calls for te
":3! performance or completion of a specic
 job, work or service8
 <7 5<NT'?5THN1 L?7<'(<NLJ 9! >eriod – suc job, work or service is to be
5<NT'?5THN1 performed or completed w/in a denite or
 Te E'/principal is  Te E'/principal is predetermined period8 and
merely an indirect treated as direct E' :! Location – te contracted job, work or
E', by operation of  of te contractor@s service may be performed or completed
law, of is EEs in all instances inside or outside te premises of te
contractor@s EEs +contractor is principal
deemed agen of te

:9
?n independent contractor is one wo e*ercises6
$! Hndependent ENT8
"! 5ontracts to do a pc of work accdg to is
own metods8 and
9! Hs not subj to control of E'  result
 Te labor contractor is legit if6
$! Ke is a job contractor8 and
"! Hs properly registered w/ #<LE as te
same
 udicial Notice of ob 5ontracting
( Te 5ourt as already taken judicial notice
of te general practice adopted in several
gort & private institutions and industries of  if e as paid te workers@ wage rate in
iring independent contractors to perform
special services! Tese services range from
 janitorial, security and even tecnical or
oter specic services! ile tese
services may be considered directly related
to te principal business of te E',
neverteless, tey are not necessary in te
conduct of te principal business of te E'!
 ? manpower company may be a L<5 in one
case but an independent contractor in anoter!
 )oca0cola ottlers Ph v 5ingpit/
Lipercon was adjudged to be a L<5 in a previous
case +1uarin v Lipercon., for lacking te
substantial capital! 7ut not so in te present case,
were it as been able to establis its caracted
as an independent contractor! ?side form iring
its own EEs and paying te workers teir salaries,
it also e*ercised supervision & control over tem,
w/c is te most important aspect in determining
E'(EE 'elsp!
Art 7) "OST=N6 O< BOND
( ?n E' or indirect E' may re)uire te
sub/contractor to furnis a bond e)ual to
te cost of labor under contract, on
condition tat te bond will answer for te
wages due te EEs sould te
sub/contractor, as te case may be fail to
pay te same!
( ere te E' fails to re)uire te contractor
to post a bond, te E' must answer for
watever liabilities te contractor may
ave incurred to is EEs! Tis is w/o
prejudice to its seeking reimbursement
from te contractor for watever amt it will
ave to pay te EEs!
Art 79) SOL=DAR L=AB=L=T  or oter benets derived from or
 Te provision of e*isting laws to te contrary
notwitstanding, every E' or indirect E' sall
be eld responsible w/ is sub/contractor for
any violation of any provision of te L5! Dor
purposes of determining te e*tent of teir
civil liability under tis 5, tey sall be
considered as direct E's!
 Te e*istence of E'(EE 'elsp is a precondition to
entitlement to labor standards & labor relatios
's!
E*tent of >rincipal@s Liability in Legitimate
5ontracting
( solidarily liable in te event of any violation
of any provisions of te L5
$! Dor wages and money claims – if te
sub/contractor fails to pay te wages of 
is EEs in accdance w/ te L5, te E'
sall be jointly & severally +solidarily.
liable w/ is contractor to suc EEs to
te e*tent of work performed under te
contract, in te same manner & e*tent
tat e is liable to EEs directly
employed by im!
Ke cannot escape tis liability even
accordance w/ te contract w/ te
contractor! Te EEs are not privy to te
contract! ?lso, te labor standard
legislations are considered written in
every contract! %imilarly, legislated
wage increases are deemed
amendments to te contract! Tus, E's
cannot ide beind teir contracts in
order to evade teir or teir
contractor@s liability for noncompliance
w/ te statutory min wage, w/o
prejudice to is ' to recover watever
amount e paid from te contractor!
"! a. 'eimbursement – te joint & several
liability of te contractor & te principal
under ?rts $G, $G4 & $G2 of te L5 is
mandated to assure compliance of te
provisions including te statutory min
wage! Te contractor is made liable by
virtue of is status as te direct E'8 and
te principal is made te indirect E' of 
te contractor@s EEs for purposes of 
paying te EEs teir wages sould te
contractor fail to do so!
( were no E'(EE 'elsp
e*ists bet te parties, as to
reimbursement bet te principal & te
contractor, te 'T5 as jurisdiction
b. >ayment before 'eimbursement –
but one may seek reimbursement only
?DTE' it as paid te EEs!
c. Dor <ter Piolations – )ualied or
limited liability8 if te liability is for
failure to pay te min wage, or te %HL,
provided for by law, te principal is
e)ually liable w/ te contractor as if te
principal were te direct E'!
7UT, if te liability is invested w/
punitive caracter, suc as an award for
backwages & separation pay because of 
an illegal dismissal of te contractor@s
EE, te liability sould be solel' tat
o# te contractor in absence of proof 
tat te principal conspired w/ te
contractor in te commission of te
illegal dismissal!
::
'igts of 5ontractual EEs +EEs of a legitimate
contractor.
$! %afe & ealtful working conditions8
"! Labor standards suc as %HL, rest days,
<T >ay, oliday pay, $9 tB>, &
separation pay8
9! %% & welfare benets8
:! %elf(orgs, 57 and peaceful concerted
action8 and
C! %ecurity of tenure!
5ertain conditions re)uired e*pressly stipulated in
te ENT 5ontract
$! %pecic description of te job, work or
service to be performed by te contractual
EE8
"! Te place of work and terms & conditions
of ENT, uncluding a statement of te wage
rate applicable to te indiv contractual EE8
and
9! Te term/duration of ENT, w/c sall be
coe*tensive w/ te contract of te
principal & contractor or w/ te specic
pase for w/c te contractual EE is
engaged, as te case may be!
 Te sub/contractor sall inform te
contractual EE of te foregoing terms &
conditions on or before te $ st  day of is
ENT!
%ecurity of Tenure6
a! in cases of termination of ENT prior to te
e*piration of te contract bet te principal
& te sub/contractor, te ' of te
contractual EE to separation pay or oter
related benets sall be governed by
applicable laws & jurisprudence on
termination of ENT!
b! ere te termination results from
e*piration of contract bet te principal &
te contractor, or from completion of te
pase of te job for w/c te EE is
engagednot entitled to separation pay!
 owever, tis sall be w/o prejudice to
completion bonuses or oter emoluments,
incl retirement pay as may be provided by
law/contract bet te principal & te
contractor!
%ecurity of tenure re)uires procedural due
process for termination of ENT!
No security of tenure for casual EEs!
'egistration of 5ontractors
'e)uirements6
$! %ubmission of annual reports
a! %worn undertaiking tat te sss,
Kome #evt Butual Dund,
>ilKealt, EEs 5ompensation
5ommission +E55., and 7H'
remittances
"! Tey are subj to routine inspection by te
#<LE
E;ect of Nonregistration6
1'6 Te absence of registration gives rise to te
presumption tat te contractor is engaged in
L<5,
  7ut, if te contractor directly supervises te
workers & imposes disciplinary action, e
)ualies as a legit contractor despite
nonregistration w/ #<LE!
Art) 77) ORER "RE<ERENCE =N CASE O<
BANRU"TC
( orkers sall enjoy rst %re#erence as
regards teir unpaid wages & oter
monetary claims, any provision of law to
te contrary notwitstanding!
( Unpaid wages earned by EEs before te
declaration of bankruptcy or judicial
li)uidation of te E'@s business sall be
given rst preference & sall be paid in full
before oter creditors may establis any
claim to sare in te assets of te
employer!
( Not only unpaid wages, but also oter
monetary claims to w/c even claims of te
govt must be deemed subordinate!
 n/a in case te E'(corp is under
reabilitation!
5onditions6
$! Dormal declaration of insolvency or
bankruptcy8
"! 1eneral judicial li)uidation proceedings of 
te E'@s business8 and
9! Diling of claims by workers!
Art 777) ATTORNEMS <EES
'ules6
$! Hn cases of unlawful witolding of wages,
te culpable party may be assessed atty@s
fees e)uivalent to $GR of te amt of 
wages recovered!
"! Ht sall be unlawful for any person to
demand or accept, in any judicial or admin
proceedings for te recovery of te wages,
atty@s fees w/c e*ceed $GR of te amt of 
wages recovered!
5oncepts of ?tty@s Dees
a! <rdinary – reasonable compensation paid
to a lawyer by is client for te legal
services e as rendered!
b! E*traordinary – indemnity for damages
ordered by te court to be paid by te
losing party in a litigation, and is not to be
paid to te lawyer but to te client, unless
tey ave agreed tat te award sall
pertain to te lawyer as an addtl
compensation or as a part tere of!
1'6 ?warded atty@s fee may not e*ceed $GR,
 but bet lawyer & client .uantu! !eruit  may
apply!
Vuantum meruit – as muc as e deserves!
7asis6
:C