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LABOR STANDARDS REVIEWER 1

LABOR STANDARDS o Learners


o Handicapped
I. LABOR STANDARDS • Termination of employment
o Substantive due process
What is labor standards? o Procedural due process
• Giving what is due to the worker o Compliance with the two notice requirement
• Minimum terms and conditions of employment that an 1. Notice of the violation
employer must provide to the workers 2. Notice of termination
• Labor standards are fluid. What may be true now may not
be true in the future When can labor laws on standards apply? Labor laws can only
• LABOR STANDARDS are those labor statutes that prescribe apply when there is an employer-employee relationship
standards relating to terms and conditions of
employment for compliance by employers When is there EMPLOYER-EMPLOYEE Relationship?
o like the laws on hours of work, weekly rest • Jeepney driver and owners
periods, holiday pay, wages, and laws dealing o The boundary system is only the mode of
with women, minors, house-helpers, and compensation
industrial home-workers. o The owners of the jeepney still exercise control over
the drivers in determining the route
Purpose of Labor standards (APIR) • There is NO employer-employee relationship in:
1. Alleviate the plight of workers o Company and agent of company paid in commission –
2. Protection to workers against injustices the company does not have control over the agent
3. Impose sanctions on those who violate o Resident physician and the training hospital – residency
4. Redress for violation of basic employee rights is simply a continuation of their medical course. It is a
pursuit of further education on a specific discipline.
Coverage of labor laws on standards
• Wages How to determine the existence of the employer-employee
relationship:
• Working conditions and rest periods
o Hours of work
The 4-Fold Test: When there is –
o Weekly rest periods
1. Selection and engagement of employees
o Holiday, service incentive leaves and service charge 2. Payment of wages
o 13th month pay 3. Power of dismissal
• Working conditions for special groups of employees 4. Power to control the employees conduct
o Women a. Control of employees conduct is the most crucial and
o Minors determinative indicator of the existence of the
o Househelpers employer-employee relationship
o Homeworkers
o Apprentices The 2-Tiered Test for EMPLOYER-EMPLOYEE RELATIONSHIP –
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LABOR STANDARDS REVIEWER 2

Economic reality test: o Position of the employee is such that it would be


• Find the employee if he is economically dependent on the presumed that if he transfers to a competing
other, then there is employer-employee relationship. employer, what he knows can be used by the
• Orosco v. 5th Division of the Court of Appeals competitor against the previous employer.
o Orosco was terminated. His case for illegal dismisal (trade secrets)
was dismissed. • Consulta v. Court of Appeals
 Court held that he was an independent o The appointment of the complainant provided that she
contractor. must represent the company on an exclusive basis and
 Petitioner’s main occupation is not a columnist. must not directly or indirectly engage with other
She herself admits that she contributes articles companies that compete against her employer.
to other publications. Thus she not fully o Restriction was considered reasonable because it only
dependent on Philippine Daily Inquirer. limited transactions with other companies that
o Orosco was considered as a freelance writer. Economic competed with that of her employer.
reality test was applied. o What is prohibited is an encompassing
• Sonsa v. NLRC restriction.
 In another case, although the restriction was
Contract of employment broad, it was held to be reasonable because it
• Not an ordinary contract. It is also endowed with public was only for a limited time and place. (Del
interest. Castillo v. Richmond)
• Chavez v. NLRC
o Can a contract between an employer and Retainership agreement – a work for hire contract. It falls between
employee be determinative of an employer- a one-time contract and full-time employment. Its distinguishing
employee relationship. feature is that the employer pays in advance for work to
o The contract stated that Chavez was not an employee. be specified later. Additional contracts regarding the
o Other provisions of the contract showed that it was a performance of this work may also apply.
contract of employment between an employer and • Coca-Cola Bottlers, Phil. v. Climaco
employee. o Whether employer-employee relationship exists under
o Court held that existence of an employer- a retainership agreement.
employee relationship cannot be repudiated o Court held that the company lacked the power of
in an employment contract when the facts control over the performance of the respondent by his
clearly showed otherwise. duties. Dr. Climaco was declared not an employee for
being udner a retainership agreement.
o Employment status is defined by law and not
o Dr. Climaco was not told how to conduct his physical
what the parties say it should be. examination. What is important is that the control
The exclusivity provision
refers to how the work should be done.
• Generally invalid, EXCEPT when:

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LABOR STANDARDS REVIEWER 3

General rule when it comes to resident physicians: there is • All benefits of the employee under the CBA
employee-employer relationship. EXCEPT WHEN: o Severance pay
• When there is a training agreement. o Unpaid salaries for work done
The training program is duly accredited or approved by the
government agency The following determines the amount of wages:
1. Collective bargaining agreement – provided that what the
LABOR-ONLY CONTRACTING JOB-ONLY CONTRACTING wage prescribed is more than what is under the law.
When there is no sufficient The person is in an independent 2. employment contract – provided that what the wage
capital and equipment. Can only business BUT the capital and prescribed is more than what is under the law.
supply labor facilities belongs to the principal 3. Law
No relationship between Carries on an independent
contractor and employee. The business and undertakes work Note: Collective bargaining agreement determines the rights of the
relationship is between the on his own account employees. When there is a CBA, this becomes the law between the
employee and the principal employer and employee provided that it does not violate law or
employer public morals
Example: agencies who hire
people and assign them to Facilities
companies • articles or services for the benefit of the employee or
*An independent contractor has all the facilities. The person his family
transacting with the independent contractor only has control • Items of expense necessary for the laborer’s and his family’s
over the result of the work of the independent contractor. existence

II. WAGES To allow deduction in the value of facilities from the


employer’s wages
A. Wages a. proof that such facilities are customarily furnished by the
• Wages are defined as: trade
1. Renumeration or earnings
2. expressed in terms of money b. provision of deductible facilities is voluntarily accepted in
3. fixed or acscertained on a: writing by the employee
a. time
b. task c. facilities are charged at fair and reasonable value
c. piece or
d. commission basis Mere availment is not sufficient to allow deductions from
4. payable by an employer to an employee employee’s wages.
5. under a written or unwritten contract
6. for work done or to be done. Food or snacks: supplements not facilities

What are considered to be part of wages? Supplements

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LABOR STANDARDS REVIEWER 4

• constitute extra remuneration or special privileges or benefits c. workers employed in cottage industries duly registered in
given to or received by the laborers over and above their accordance with law and who perform work in their homes
ordinary earnings or wages.
• Independent of the wage and not deductible d. workers duly registered cooperatives as recommended by the
• For the benefit of the employer bureau of cooperative development and approved by the
Secretary of Labor
What an employee has worked for, his employer must pay.
e. Farm Tenancy of lease hold
WAGES SALARIES
paid to blue collar workers, paid to white collar workers. Equal Pay for Equal Work
for skilled or unskilled manual denotes a higher grade of • Persons who work with substantially equal
labor paid at stated daily, employment, a superior grade qualifications, skill, effort and responsibility, under
weekly, monthly or seasonal of services and a position of similar conditions should be paid similar salaries.
periods. office.
• If an employer accords employees the same position and rank,
NOT subject to execution or excluded in the computation of the presumption is that these employees perform equal work.
attachment except for debts basic salary
incurred for food, shelther, • sick, vacation and o Presumption: Same position and rank, equal
clothing and, medical maternity leaves work
attendance (Rosario Gaa v • nigh differentials
Court of Appeals) • regular holiday pay
• premiums for work done B. Minimum Wage Rates
on rest days and special • Lowest basic wage rate fixed by law that an employer can pay
holidays his employees (statutory minimum wage)

Living wage
• economically feasible to maintain the minimum standards of RA 6727 (Wage Rationalization Act)
living necessary for the health and efficiency and general well- • Mandates the fixing of the statutory minimum wages
being of the employees within the framework of the national applicable to different industrial sectors, namely, non-
economic and social development program. agricultural, agricultural plantation and non- plantation,
cottage/handicraft, and retail/service, depending on the
number of workers or capitalization or annual gross sales in
Exclusions from coverage some sectors
a. persons in the personal service of another
• Established the Regional Tripartite Wages and Productivity
b. homeworkers engaged in needlework Boards which has the authority to fix the wage rates

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LABOR STANDARDS REVIEWER 5

Coverage financial condition of the company; the payment of


• Wage increases apply to all private sector workers and minimum wages is not dependent on the employer’s ability to
employees regardless of their position, designation, or status, pay.
and irrespective of the method by which their wages are paid
Non Diminution
Exclusions
1. Househelpers, family drivers and workers in the personal General Rule: Nothing in the Labor Code shall be construed to
service of another eliminate or in any way diminish supplements, or other employee
benefits being enjoyed at the time of the promulgation of this Code.
2. Workers and employees Benefits being given to employees cannot be taken back or
reduced unilaterally by the employer because the benefit has
o In retail service establishments regularly employing not become part of the employment contract, written or
more than 10 unwritten.

o Distressed establishments Exception: To correct and error, otherwise, if the error is left
uncorrected for a reasonable period of time, it ripens into a company
o Other firms or employers as determined by the board, policy and employees can demand for it as a matter of right.
when specifically exempted from compliance for a
period fixed by the board. Bonuses does not form part of salary. Generally, they are not
demandable. However, the following are demandable
3. Workers of registered Barangay Micro Business Enterprises bonuses:
with Certificates of Authority issued by the Office of the 1. When given with condition
Municipal or City Treasurer
2. 13th month salary
a. 14th or more are no longer demandable
Minimum wage of workers paid by results is determined 3. When it forms part of the contract
through: 4. When given as company policy for at least 6 months,
a. Time and motion studies customary or voluntary employer practice
a. Requisites for voluntary employer practice such
b. Consultation with representatives of employers and workers that the same cannot be unilaterally withdrawn
organizations in a tripartite conference called by the DOLE anymore:
Secretary i. Practiced over a long period of time
ii. Consistent and deliberate

Ability to Pay is Immaterial Four Elements of Wage distortion


• Serious business losses is not a defense to payment of labor a. Existing hierarchy of positions with corresponding salary
standards benefits. Employer cannot exempt himself form rates
liability to pay minimum wages because of poor

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LABOR STANDARDS REVIEWER 6

b. Significant change in the salary rate of a lower pay class facility for encashment employee to receive their
with a concomitant increase in the salary rate of a higher one within a radius of 1 wage within the period and in
kilometer from the the amount prescribed under
c. Elimination of the distinction between the two levels workplace the Labor Code
o The employer, or any of
d. Existence of the distortion in the same region of the his agents or • There is a bank or ATM facility
country representative, does not within a radius of 1 km
receive any pecuniary
benefit, directly or • Employer shall issue a
C. Payment of Wages indirectly, from the evidencing payment of wages,
arrangement. benefits and deductions for a
Art. 102 Forms of payment – An employee may only be paid by o The employees are given particular period upon request
legal tender by the employer Art 1705 of the Civil Code – laborer’s reasonable time during of the concerned employee
wages shall be paid in legal currency. banking hours to withdraw
their wages from the bank • ATM system of payment will
Promissory notes, vouchers, tokens, tickets, chits, or any object other which time shall be not result in diminution of
than legal tender, even when expressly requested by the employee considered as benefits and privileges of the
are not allowed. compensable hours worked employee and neither the
if done during working latter incurs additional
Legal tender – that currency sufficient under the law to effect hours expenses in the process
payment of a debt or obligation (Sibal, Phil. Legal Encyclopedia, 608) o The payment by is with
the written consent of the • Employer shall assume full
All notes, coins, currencies issued by the Central Bank are legal employees concerned if responsibility in case the
tender for all debts, public and private. A check is not legal tender. there is no collective wage protection provisions of
WHEN PAYMENT OF CHECK WHEN PAYMENT THROUGH agreement authorizing the law and regulations are not
OR MONEY IS ALLOWED ATM IS ALLOWED payment of wages by bank complied with under the
• When such manner of • With the written consent of checks. arrangement
payment is customary on the the employee
date of effectivity of this Code
• Because of special • Employees are given Penalty for Violation – Art 288 of the RPC imposes a penalty of
circumstances in appropriate reasonable time to withdraw arresto mayor or a fine ranging from 200-500 pesos or both to any
regulations issued by the their wages from the bank person who shall pay the wages due a laborer employed by him by
Secretary of Labor and facility, and if done during means of tokens or objects other than legal currency of the
Employment working hours, shall be Philippines.
• When stipulated in the CBA or considered as compensable
where all these conditions are hours worked Art. 103 Time of payment – wages shall be paid at least once
met: every two weeks or twice a month at intervals not exceeding
o There is a bank or other • System shall allow the sixteen days.

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Exceptions: places or in places where games are played with stakes of money or
thing reperesenting money except in the case of persons employed in
1. Force majeure or circumstances beyond the employer’s said places.
control provided that he pays the wages immediately after
Art. 105 Direct Payment of Wages Wages shall be paid directly to
2. Wages of employees engaged to perform tasks that the workers to who they are due
cannot be completed in two weeks. In the absence of a
CBA or arbitration award: Exceptions:

a. Payments are made at intervals not exceeding sixteen a. Force Majeure – during which case the wages may be paid to
days , in proportion to the amount of work completed another person under a written authority given by the
worker.
b. Final settlement shall be made upon completion of
work b. When the worker has died – payment to the heirs without
need for intestate proceedings. Claimants shall execute an
affidavit attesting to their relationship to the deceasese.
Art. 104 Place of Payment – Payment of wages shall be made at or
near the place of undertaking except as otherwise provided by such c. In case of conflicting claims over the uncollected wages of
regulations Secretary of Labor and Employment may prescribe under deceased employee:” It should be borne in mind that in cases
conditions to ensure greater protection of wages where the second wife had in good faith contracted marriage
with the decedent notwithstanding the existence of his
Rule VIII, Section 4 marriage with the first wife, the court has generally sought
and applied a just and equitable solution and division of the
a. As a general rule, the place of payment shall be at or near the decedent’s estate among the two innocent parties”.
place of undertaking unless:
1. Reason of the deterioration of peace and order
conditions or of actual or impending emergencies Payment through Contractor
caused by fire, flood, epidemic or other calamity
rendering payment impossible The leader who a contracted a stevedoring work may receive
payment of wages for the workers. The wages was undertaken by not
2. Employer provides free transportation back and forth in their individual capacities but as a group through their leader-
contractor.
3. Time spent by the employees in collecting wages shall
be considered compensable hours Contractor or subcontractor

Art106 – When an employer enters into a contract for the


b. No employer shall pay his employees in any bar, night or day club, performance of its work, the employees of the contractor and of the
drinking establishment, massage clinic, dance hall or other similar latter’s subcontractor shall be paid in accordance with the provisions
of this Code. In the event that the contractor or subcontractor
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LABOR STANDARDS REVIEWER 8

fails to pay the wages of his employees in accordance with In house agency – a contractor or subcontractor engaged in the
this Code, the employer shall be jointly and severally liable supply of labor which is: a.)owned and controlled by the principal:
with his contractor or subcontractor to such employees to the and b.) operates solely for the principal owning managing, or
extent of the work performed under the contract, in the same manner controlling it. This is contrary to law public policy.
and extent that he is liable to employees directly employed by him.
The Secretary of Labor and Employment may, by appropriate Job contracting – allowed by law if:
regulations, restrict or prohibit the contracting-out of labor to protect a. Contractor carries out an independent business and
the rights of workers. undertakes the contract work on his own account, under his
own responsibility, according to his own manner and method,
There is "labor-only" contracting where the person supplying from the contorl and direction of his employer or principal in
workers to an employer does not have substantial capital or all matters connected with the performance of work except as
investment in the form of tools, equipment, machineries, work to results;
premises, among others, and the workers recruited and placed by
such person are performing activities which are directly related to the b. The contract has substantial capital or investment in the form
principal business of such employer. In such cases, the person or of tools, equipment, machineries, work premises and other
intermediary shall be considered merely as an agent of the employer materials which are necessary in the conduct of his business.
who shall be responsible to the workers in the same manner and
extent as if the latter were directly employed by him.
There is no employer-employee relationship between contractors,
Purpose of the law – to protect the workers from some employees and the principal. However, when a contractor fails to pay
unscrupulous employers. Thus, the law creates an employer- the wages of his employees, he becomes obliged to do so as though
employee relationship between the employer and the contractor’s he were the employer, but only for this purpose.
workers.
Indirect employer – one who contracts with an independent
Directly related activities and activities necessary or contractor for the performance of any work, task, job or project nor
desirable in the usual business or trade directly related to the employer’s business.

Directly related activities – those which are directly related to the Posting of bond – An employer or indirect employer may require
principal business of the employer – covered by Art 106 the contractor or subcontractor to furnish a bond equal to the cost
of labor under contract, on condition that the bond will answer for the
Activities necessary or desirable in the usual business or trade – wages due the employees should the contractor or subcontractor, as
covered by Article 280 the case may be, fail to pay the same.

Legal effect of a finding that the contractor is merely a “labor Solidary liability – Other provisions of the law notwithstanding,
only” contractor – employer is responsible to the employee of every employer or indirect employer shall be held responsible
the the labor only contractor as though they were directly with his contractor or subcontractor for any violation of any
employed by him provision of this Code. For purposes of determining the extent of
their civil liability under this Chapter, they shall be considered as
direct employers.
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LABOR STANDARDS REVIEWER 9

wages of the employee. [Apodaca vs. NLRC, 172 SCRA 442


Worker preference in case of bankruptcy – In the event of (1989)].
bankruptcy or liquidation of an employer’s business, his o Deductions to ensure employment – deductions in
workers shall enjoy first preference as regards their wages consideration of employment or retention in employment.
and other monetary claims, any provisions of law to the o Retaliatory measures – refusal to pay, or to reduce wages and
contrary notwithstanding. Such unpaid wages and monetary benefits, discharge or in any manner discriminate against an
claims shall be paid in full before claims of the government and other employee who has filed any complaint or instituted any
creditors may be paid. (As amended by Section 1, Republic Act No. proceeding under this title or has testified or is about to testify
6715, March 21, 1989). in such proceedings. (P. D. 850).

Attorney’s fees – (a) In cases of unlawful withholding of wages, the Exceptions:


culpable party may be assessed attorney’s fees equivalent to ten 1. To recompense employer for payment of premiums in case
percent of the amount of wages recovered; (b) It shall be unlawful for employee is insured by the employer with his consent;
any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s fees which exceed 2. For union dues where the right of the worker or his union to
ten percent of the amount of wages recovered. check off is recognized by the employer and authorized by the
individual worker;

D. Prohibitions Regarding Wages 3. In other cases where the deduction is authorized by law or
regulation issued by the Secretary of Labor, ex.: taxes
o No employer shall limit or otherwise interfere with the freedom of (withholding taxes); SSS contributions; Philhealth contributions;
any employee to dispose of his wages; agency fees; Abad -deduction from employees’ wages of
o Oblige any of his employees to patronize any store or avail of the debt due the employer. Art. 1706, Civil Code, vs. Art. 114,
services offered by any person. Labor Code.
o Wage Deductions: No employer on his behalf or on behalf
of any person make any deductions from the wages of his 4. Illegal Deposits – [Five J Taxi vs. NLRC, 235 SCRA 556 (1994)]
employees. It was held that the P15 daily deposit made by taxi drivers to
defray shortage in their “boundary” is covered by the general
Note: Article 1706 allows deduction for a debt due the employer. prohibition under Art. 114 of the Labor Code.  not an
Which law shall prevail? exception
o Deduction from employee’s salary as the company’s share for
job procurement, even if based on a contract in writing; 5. Where the deductions are for the payment to a third person
[Commando Security Agency vs. NLRC, 211 SCRA 645 (1992)]. and the employer agrees to do so, provided that the latter does
The contract is void ab initio being contrary to law and public not receive any pecuniary benefit, directly or indirectly from the
policy. [Mercury Drug Co., Inc., vs. Dayao, 117 SCRA 99, 166 transaction;
(1982)];
o An employee’s obligations arising from non-payment of stock 6. Deductions to answer for loss of damage, under these
subscription to the corporation cannot be deducted from the conditions:
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LABOR STANDARDS REVIEWER 10

1. Absent without proper permission.


a) Employer is engaged in a trade, occupation or business
where the practice is recognized, to answer for loss or damage 2. When on duty left without proper permission.
to tools, materials, or equipment supplied by the employer to
the employee; 3. While in office but refused to perform duties.
In cases of such wilful and unauthorised absence from work, the
b) The employee is shown to be responsible for the loss or leave sanctioning authority may decide and order that the
damage; days on which the work is not performed be treated as dies
non on the principle of no work no pay. This will be without
c) That the amount of such deductions is fair and prejudice to any other action that the competent authority might take
reasonable shall not exceed the actual loss or damage; against the persons resorting to such practises.

d) The deduction does not exceed 20% of the employee’s Lawyer hired on contingent basis – A lawyer dismissed by the
wages in a week. clients because he refused to represent them in an out-of-court
settlement has no right to interfere in the implementation of their
No Work-No Pay Principle claims in his efforts to collect attorney’s fees not due him. (Chua vs.
o The age-old principle governing the relations between labor NLRC 190 SCRA 558).
and capital, that is, a fair day’s work for a fair days’ labor
remains as the basis in determining employees’ wages. The financial capacity and economic status of the clients can be
(Aklan Electric Coop., Inc., vs. NLRC, 323 SCRA 258).If there is taken into account in fixing the reasonableness of the attorney’s fees.
no work performed by the employee, there can be no wage However, where the clients are mere janitors whose fees are so low,
paid unless the worker is able and willing to work but was the equivalent of 50% is excessive. (Atty. Taganas vs. NLRC, 64 SCAD
illegally dismissed or locked-out or illegally prevented from 226, G. R. No.118746, 7Sept. 1995).
working.
o The doctrine of "no-work-no-pay" is a fundamental axiom When the issues are so simple, neither novel nor difficult, award of
10% attorney’s fees may be considered excessive. The Court may
in industrial relations. The philosophy is very simple. When a
reduce the same. (D. M. Consunji vs. NLRC, 143 SCR 204).
person is employed, it is expected that the work assigned will
be carried out. When this work is not done, the employee is
Attorney’s Fees Deleted – Where the award of moral and
not eligible for payment of any salary. Even when a general
exemplary damages was eliminated, so to was the award of
strike or countrywide ban disrupts public transport systems,
attorney’s fees. (Audion Electric Co., Inc., vs. NLRC, G.R. No. 106648,
and consequently employees are unable to reach their
17 June 1999).
workplaces, the same principle prevails. Even die-hard trade
union leaders respect this principle of equity and natural
justice. "No work, no pay" lays a strong foundation to
III. WORKING CONDITIONS AND REST PERIODS
industrial peace and harmony in the long run.[5]

A person can be marked dies-non, if: A. Working Hours

Coverage
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• This shall apply to all employees in all establishments or a. Since they work away from his employer’s place of
undertakings, whether operated for profit or not. business, hence not subject to personal supervision of
employer. Employer has no knowledge of how many
Exemptions hours he works per day.
1. Government employees, including those employed in 5. Family members
government-owned and/or controlled corporations 6. Domestic helpers and persons in the personal service of
2. Managerial employees another
a. one who can lay down management policies, or who 7. Workers paid by results
can fire, hire, demote or promote or who can a. Because they are paid by fixed amount for work done,
effectively recommend the fore going courses of regardless of the time spent in accomplishing the work
action.
b. Rationale: such workers are not usually employed for Hours of Work
evey hour of work but their compensation is • Normal hours of work shall not exceed 8 hours a day.
determined considering their special training, • Health personnel in cities and municipalities with a population
experience or knowledge which requires the exercise of of at least 1 million or in hospitals and clinics with a bed
discretion and independent judgment, or perform work capacity of at least 100 shall hold regular office hours for 8
related to management policies. hours a day for 5 days a week, exclusive for time of meals.
c. they are not feasibile to provide a fixed hourly rate of o If exigencies of their service require that personnel
pay or maximum hours of labor. work for 6 days or 48 hrs, they shall be entitled to 30^
3. Managerial Staff – vested with powers or perogatives % of their regular wage for work on the sixth day.
to lay down and execute management policies • Who are health personnel?
a. primary duty consists of the performance of work o resident physicians, nurses, nutritionists, dietitians,
directly related to management policies of their pharmacists, social workers, laboratory technicians,
employer paramedical technicians, psychologists, midwives,
b. customarily and regularly exercise discretion and attendants and all other hospital or clinic personnel.
independent judgment
c. regularly and directly assist the managerial employee Hours worked shall include:
d. they execute work along specialized or technical lines
requiring special training, experience of knowledge
• all time during which an employee is required to be on
duty or to be at a prescribed workplace; and
e. they execute special tasks and assignments
f. they do not devote more than 20% of their hours • all time during which an employee is suffered or
worked in a work-week activities permitted to work.
g. A supervisor is deemed a member of the managerial o Rest period of short duration during working hours shall
staff because he oversees the operation of the be counted as hours worked.
business of the company and performance of the
workers, which require discretion and independent Meal Break
judgment. • It shall be the duty of every employer to give his employees
4. Field Personnel not less than 60 mins time-off for their regular meals.

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LABOR STANDARDS REVIEWER 12

• If meal/rest period is less than 20 mins, it is credited as a working hours IF:


compensable hours worked. a. employees can leave their workplace or go elsewhere
• If work is continuous, mealtime breaks should be counted as b. employees can use their time effectively for their own
working time for purposes of computing overtime interest
compensation. c. Here, employers can extend working hours
• Meal break of more than one hour is part of hours worked. outside the regular schedule without being liable
for overtime pay.
• Employees on call – meal break is part of hours worked.
o When the laborers are required to standby for
Working time aboard a vessel
emergency work or where such meal hour is not one
complete rest, it is considered overtime. • Since seamen are required to stay on board their vessels by
o This happens when employees are told to hurry up the nature of their duties, the correct criterion for determining
eating to perform work during emergency work. whether they are entitled to overtime pay is NOT whether they
were on board and cannot leave ship beyond the regular 8 hrs
When idle time not counted as working time: a day BUT whether they actually rendered service in
excess of the said 8 hrs.
• The idle time that an employee may spend for resting and
when he may leave the spot or place of work is not counted as
Commuting time
working time when the work is broken or not continuous.
• Normally, it is not hours of work.
• Even if laborers did not leave the premises, it being enough
that he cease to work and rest completely, rest would not be • However, it is compensated as working hours if employee is
counted as working hours. required to perform substantial work under the control and
supervision of the employer.
Waiting time
Travel time
• It is compensable if the employee is subject to the absolute
• Official travel away from the workplace is counted as working
control of the employer such that the employee is
hours if:
effectively deprived of the time to attend to other
o within the regular scheduled administrative workweek
personal pursuits.
o outside the hours of the employee’s regularly
• If waiting is an integral part of his work or he is required by the
scheduled administrative workweek and meets one of
employer to wait, it shall be considered as working time.
the four conditions:
• An employee who is not required to leave word at his home or
with company officials where he may be reached is not  involves the performance or work (e.g.
working while on call. driving a loaded truck)
 incident to travel that involves
Work interruption due to brownouts performance or work while traveling (e.g.
According to Policy Instruction No. 36 of DOLE: driving an empty truck back)
1. Brownouts not exceeding 20 mins shall be treated as  carried out under arduous and unusual
compensable working hours conditions (travel on rough terrain/ severe
2. Brownouts more than 20 mins may not be treated as weather)

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LABOR STANDARDS REVIEWER 13

 results from an uncontrollable event (job- adoption of the scheme.


related court appearance required by court o Effects of CWW:
subpoena)  Work beyond 8 hours is not compensable by
overtime premium unless there is a more
Overtime Work – work performed beyond 8hrs a day favorable practice in the firm.
• Rationale: he puts in more effort and is delayed in going home  Reversion to the normal 8 hour workday shall
to his family to enjoy the comfort, and might miss important not constitute a diminution of benefits.
prearranged engagement.
• should be paid additional compensation equivalent to his Emergency overtime work – every employee required to
regular wage plus at least 25% render overtime work shall be paid additional compensation
• during holidays or rest day – additional compensation • When the country is at war or when there is any national or
equivalent to his regular wage plus at least 30% local emergency declared by congress or chief executive
• Undertime on a particular day is not offset by overtime • Imminent danger to public safety due to accidents, fire
on any other day. ,flood, typhoon, etc
• General Rule: Overtime pay cannot be waived. • When there is urgent work to be performed on machines,
o Any quitclaim that a worker agrees to forego such installations, or equipment to avoid further damage to the
payment is null and void employer
• Exception: • When work is necessary to prevent loss or damage to
o Built-in overtime pay – Non-payment of overtime pay is perishable goods
valid here because it was already provided in the • Where the completion or continuation of the work started
written contract with a “built-in” overtime pay and before the eighth hour is necessary to prevent serious
signed by Director of the Bureau of Employment obstruction or prejudice to the business or operations of
Services and enforced by the employer. the employer.
o Adoption of Compressed workweek (CWW) on • Claim of overtime pay is not justified if without written
voluntary basis. authority to render overtime after office hours during
 Conditions of CWW scheme recognized by Sundays and holidays.
DOLE: • Proof of Overtime claim
• undertaken as a result of an express and o Presentation of payrolls, daily time records and similar
voluntary agreement of majority of the documents
covered employees. o In cases of OFWs, they should allege overtime pay with
• In firms hazardous to one’s health (use of particularity. If n006Ft, the local recruitment agency
chemicals or other substances), there who deployed the OFWs to the foreign principal could
must be a certification from an have obtained the records from the principal to refute
accredited health and safety the claim for overtime pay. The local recruitment
organization that work beyond 8 hours is agency is solidarily liable with the foreign principal for
tolerable. the overtime pay claims of the complainants.
• The employer shall notify DOLE of the • CBA provision may oblige the workers to work beyond eight
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LABOR STANDARDS REVIEWER 14

hours • Actual or impending emergencies caused by disasters or


o Working hours may be changed at the discretion of the calamities to prevent loss of life, property or imminent danger
company if the change is necessary for its operations. • Urgent work to be performed on machinery to avoid loss
o If employees assented to this arrangement, they are that employer might suffer
deemed to have waived the normal 8-hour schedule. • Abnormal pressure of work due to special circumstances
• Prevent loss on perishable goods
Night shift/ Night differential – work staring from 10pm to
6am • When the nature of work requires continuous operations and
stoppage may result in irreparable injury or loss to the
• every employee shall be paid of not less than 10% of his
employer
regular wage for each hour of work.
• Under similar circumstances determined by Sec of Labor and
• Based on public policy, hence it CANNOT BE WAIVED.
Employment
B. Weekly Rest Periods • no employee may be compelled against his will to work
for more than 8 hrs
Right to Weekly rest day
Compensation for rest day, Sunday or holiday work
• It is the duty of the employer, whether for profit or not, to
• When required to work on a rest day
provide each employees a rest period of not less than 24
o Additional compensation of at least 30% of his regular
consecutive hours after every 6 consecutive normal
wage. An employee is entitled to such for work
work days.
performed on Sunday only when it is his established
• Employer shall determine and schedule the weekly rest day
rest day.
subject to CBA and the rules and regulations of Sec. of Labor
• When the nature of work has no regular workdays and no
and Employment.
regular rest days can be scheduled
o Additional compensation of at least 30% of his regular
Preference of Employee
wage performed on Sundays and holidays.
• Employee shall make known his preferred weekly day rest to
his employer in writing at least 7 days before the desired • Work performed on special holiday
effectivity of the initial rest day. o Additional compensation of at least 30% of his regular
• If preferred schedule of rest day based on religious grounds wage. If such holiday work is his scheduled rest day,
that is in conflict with the operations, the employer may the worker is entitled to an additional compensation of
schedule the weekly rest day of his choice for at least 2 days 50% of his regular wage.
in a month. • Where CBA agreement or other employment contract
stipulates higher premium pay than the prescribed one,
Schedule of rest day – made known through written notice by employer shall pay such higher rate
the employer posted in the work place one week before it
becomes effective Holidays
• Every employee covered by Holiday pay rule is entitled to
When employer may require work on a rest day: his/her daily basic wage and ECOLA. Hence, employee is
entitled to at least 100% of his/her basic wage (plus
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LABOR STANDARDS REVIEWER 15

ECOLA) even if he did not report for work, PROVIDED he his rate for the first 8 hours on such holiday work plus at least
is present or is on leave of absence with pay on the work day 30%.
immediately preceding the holiday. • When overtime work falls on his scheduled rest day, he is
entitled to an additional compensation for the overtime work
Right to holiday pay equivalent to his regular holiday rest day for the first 8 hours
• Shall apply to all employees EXCEPT: plus at least 30%.it shall consist of 200% of his regular daily
o retail service establishments regularly employing less wage rate plus 30%.
than (10) workers
o government and any of political subdivision, including Divisors
GOCC • Divisor assumes an important role in determining W/N holiday
o domestic helpers and persons in the personal service pay is already included in the monthly paid employee’s salary.
o managerial employees • General Rule:
o field personnel o A company with a 6-day working schedule, divisor 314
What are covered by holidays? The term ‘regular holiday’ shall means that legal holidays are already included in the
exclusively refer to: monthly pay of the employee
1. New Year’s Day, o for company with a 5-day working schedule, divisor
2. Maundy Thursday, 261 means that the holiday pay is already included in
3. Good Friday, the monthly salary.
4. the ninth of April, • If two regular holidays fall on the same date, the
5. the First of May, worker should be paid for both days
6. the twelfth of June, • Art 94 affords workers the enjoyment of paid regular holidays.
7. the last Sunday of August, It is mandatory regardless whether an employee is paid on a
8. the thirtieth of November, monthly or daily basis.
9. the twenty-fifth and thirtieth of December.
10. Nationwide special days(special holiday) shall include the first Service incentive leaves
of November and the last day of December • Coverage – This shall apply to all employees EXCEPT:
o government and any of its political subdivisions
Compensation for holiday work o domestic helpers and in the personal service of another
• Any employee permitted to work on any regular holiday, not o managerial employees
exceeding 8 hours, shall be paid at least 200% of his o field personnel or any other employees whose
regular daily wage. performance is unsupervised by employer including
• If the holiday work falls on his scheduled rest day, he shall be task or contract basis, purely commission basis and
entitled to an additional premium pay of at least 30% of his those paid in fixed amount
regular holiday rate of 200% based on his regular wage o those who are already enjoying this benefit
rate. o those enjoying vacation leave with pay if at least five
days
Overtime pay for holiday work: o those employed in establishments regularly employing
• Additional compensation for the overtime work equivalent to
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LABOR STANDARDS REVIEWER 16

less than 10 employees  Payment shall be advanced by the employer in


o All employees who have rendered at least one two equal instalments within 30 days from
year of service shall be entitled to a yearly the filing of the application
service incentive leave of five days with pay.  In case of caesarean delivery, employee shall be
 “at least one year” shall mean service for not paid the daily maternity benefit for 78 days
less than 12 months whether continuous or  Payment of daily maternal benefits is a bar to
broken reckoned from the date the employee recovery of sickness benefits for 60 days
started working  Maternity benefit shall only be for the first four
o it is demandable after 1 yr of service deliveries
 SSS shall immediately reimburse the employer
Commutation of unused service incentive leave credit 100% of the advanced payment to the
• The employee may choose to either use his leave credits or employee upon proving of such payment
commute it to its monetary equivalent if not used at the end  If an employee should give birth or suffer
of the year abortion or miscarriage without the
• If he does not use or commute it, he is entitled upon contributions remitted to them by the employer
resignation or separation to its commutation to the SSS, without SSS being notified by the
employer, the employer shall pay to SSS
Other leave benefits: damages equivalent to the benefits which the
• Vacation and Sick Leave employee should have been entitled to, and the
o not mandated by law SSS shall pay such amount to the employee
o once granted as a practice and policy, they can no concerned.
longer be withdrawn • Paternity Leave
o it must be demanded in its opportune time. If not, he o RA 8187
waives it o Coverage – shall apply to every male employee in the
• Maternity Leave private sector
o RA 7322 – increased maternity benefits o Paternity leave benefits for 7 days with full pay for the
o "Maternity Leave Benefit. - A covered female first 4 deliveries by his lawful spouse
employee who has paid at least three monthly o Conditions for entitlement
maternity contributions in the twelve-month period  he is an employee at the time of the delivery of
preceding the semester of her childbirth, abortion or the child
miscarriage and who is currently employed shall be  he is cohabiting with his spouse at the time of
paid a daily maternity benefit equivalent to one birth or miscarriage
hundred percent (100%) of her present basic salary,  the wife has given birth or suffer miscarriage
allowances and other benefits or the cash equivalent of
such benefits for sixty (60) days subject to the Application for leave
following conditions:
• shall apply within a reasonable period of time (walangsinabi
 Employee should inform of her pregnancy and kung ilan)
the probable date of her childbirth
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LABOR STANDARDS REVIEWER 17

• apply within such period provided by CBA  Physical/mental incapacity of spouse certified
by a public medical practitioner
When availed  Legal separation or de facto separation for 1 yr
• after delivery by his wife provided that he/she is entrusted of the children
• total number of days shall not exceed 7 days for each delivery  Declaration of nullity/ annulment of marriage
• It shall be full pay consisting of basic salary for the provided that he/she is entrusted the custody of
seven days he is not allowed not to report for work children
• It is not convertible to cash in case it is not availed.  Abandonment of spouse for at least 1 yr
Parental Leave  Unmarried father/mother
• Granted to solo parents  Any other person who provides solely the
• Solo Parents Welfare Act – enacted on Nov 7 2000 parental care and support to children provided
o To promote the family as the foundation of the nation, that he/she duly licensed as foster parent by
strengthen its solidarity and ensure its total DSWD or by court
development  Any family member who assumes responsibility
o Covers the ff: of head of the family due to the death,
 seven working days leave privilege for every abandonment, disappearance or prolonged
year for every solo parents absence of parents for 1 yr
 flexible work schedule o Conditions for entitlement
 prohibition against discrimination of solo parent  he/she has rendered 1 yr of service whether
employee with respect to the terms and continuous or broken
conditions of employment on account of his/her  he/she notified the employer within a
status reasonable period of time
o Solo parent  he/she presented to the employer a Solo Parent
 Defined to include :any unmarried mother or Identification Card w/c may be obtained from
father who has preferred to keep and rear DSWD
her/his children instead of having others care for o If not availed, it shall not be convertible to cash unless
them or give them up to a welfare institution” specifically agreed.
• The Handbook on Workers’ Statutory Monetary Benefits of the o If there is a similar benefit under company policy or
Bureau of Working Conditions of DOLE (2006) provides CBA, it shall be considered. If it is greater than 7 days,
guidelines on Parental Leave for Solo parents: then the greater benefit shall prevail.
o Coverage – granted to any solo parent who is left with o Emergency or contingency leave provided in the
the responsibility of parenthood due to: company policy or CBA is not credited as parental
 Giving birth because of rape, or other crimes leave under RA 8972
against chasitity o If a change of status occurs, such that he is no longer
 Death of spouse left alone with the sole responsibility of parenthood, his
 Spouse is detained for criminal convicton for at eligibility to the benefit is TERMINATED.
least 1 yr • Leave for victims of violence against women and their children

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LABOR STANDARDS REVIEWER 18

(RA 9262) • All service charge collected by establishments shall be


o pertains to any act/s committed by any person against distributed at the rate of 85% equally for all covered
a woman, his wife, former wife, or against a woman employees and 15% for the management.
with whom the person has or had a sexual or dating • Shares hall be distributed and paid to the employees not less
relationship than once every two weeks or twice a month at intervals not
o Covers private women sector employees who are exceeding 16 days
victims defined in RA9262 (preceeding • If the company stopped collecting service fees, the average
paragraph) share previously enjoyed for the past 12 months immediately
o Leave benefits shall cover the days that the woman preceding such stoppage shall be integrated into their basic
employee has to attend to medical and legal concerns wages.
o To be entitled:
 To be entitled, victim-employee to present to IV. THIRTEENTH MONTH PAY
her employer a certification from the Punong
Barangay or prosecutor or the clerk of court A. Purpose
• Under PD 851 which was enacted on Dec. 16, 1975, it
Benefit required employers to pay a 13th month pay, it was issued
• Shall be entitled up to ten days with full pay. It shall be to protect the level of real wages from inflation.
extended when the need arises. • To alleviate the plight of the workers and to help them cope
• if not availed, it cannot be converted into cash. with the increases in the cost of living.
o It is an additional income based on wage but not part
Military Leave of wage.
• Under PD 183 – any employee with annual gross business of • It is exempted from income tax.
not less than P250,000 and with a personnel force of at least
20 employees, who is called to undergo refresher training, or B. Time of payment
mobilization or assembly test, or training in the AFP shall not • It is paid not later than dec. 24 of each year.
lose his position due to absence in the fulfilment of military o But employer may give ½ of the required 13th month
obligation provided that the employer shall be entitled to pay before the opening of the regular school year and
claim the salaries paid to the employee during such training as the other half on Dec. 24.
a deductible item in its income tax return.
• The frequency may be the subject of agreement between the
• Under Labor Code – The fulfilment by the employee of a employer and the recognized agent of the employees.
military or civic duty shall not terminate employment
• In such cases, employer shall reinstate the employee to his C. Coverage
former position without loss of seniority rights if he indicates • Only the rank and file employees are entitled to the 13th
to resume his work not later than 1 month from relief month pay provided that they have worked for at least
from the military or civic duty 1month during the calendar year.
o Rank and file employees – those who are not vested
Service charges with powers or prerogative to lay down and execute

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LABOR STANDARDS REVIEWER 19

management policies and/or to hire, transfer, suspend, employee within a calendar year.
layoff, recall, discharge, assign or discipline employees. • The basic salary of an employee is used as the basis. Any
o Simply those who are not managerial employees. compensation or remuneration not part of basic salary is
• Piece-rate workers are entitled also since they’re employees excluded as basis.
and not independent contractors. • Basic salary – all remuneration or earnings paid by his
• Those paid a fixed or guaranteed wage plus commission, employer for his services rendered but does not include
based on their earnings during the calendar year. allowances and monetary benefits.
• Employees with multiple workers. o Commissions are included in the basis salary for
o Government employees working part time in priv. purposes of computing 13th month pay.
enterprises, including private educational institutions o Profit –sharing/productivity bonuses are not part of the
whether on full or part-time basis. 13th pay should be computation for basic salary.
given to them by their private employers regardless of The minimum amount required by law shall not be less than 1/12 of
their total earnings from each of all their employers. the total basic salary earned by an employee within a calendar year.

D. Not covered F. Pro-rated 13th month pay


• Managerial employees but company policy or established • The pro-ration of 13th month pay is applied in cases of
practice may cover them. resignation or separation from work.
• Sea-farers are not entitled since they are contractual • The computation should be based on the length of service
employees. PD 851 contemplates the situation of land- and not on the actual wage earned by the worker.
based workers and not sea-farers who earn more than • EXCEPTION – Employees, who are paid a guaranteed
the former. minimum wage or commission earned, whichever is higher,
• The following employers are not covered: entitled to the 13th month pay based on total earnings.
o government and any of its political subdivisions,
government – owned and controlled corporations G. Equivalents of 13th month pay
except corporations operating essentially as privates • Mid-year bonus and Christmas bonus.
subsidiaries of the government • Bonus must be at least equal to the 13th month pay due the
o Employers already paying 13th month pay or more in a employee; otherwise, the employer shall pay the difference
calendar year or its equivalent
o Employers of household helpers or persons in the Benefits in form of food or free electricity are not proper
personal service of another substitute for 13th month pay including year-end rewards for
o Those paid purely on commission, boundary or task loyalty and service.
basis and those who are paid a fixed amount for BONUS UNDER CBA 13th month pay
performing specific work, irrespective of the time Source: Contract between the Source: PD851.
consumed in the performance of it management and the employees.
It is an obligation created from It is mandated by law.
E. Computation the contact.
• It is 1/12 of the total basic salary earned by an Gives higher reward to the senior Based only on the length of work

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LABOR STANDARDS REVIEWER 20

employees. within the calendar year. (c) To prevent serious loss of perishable goods.
(d) Woman employee holds managerial or technical position, or
H. Bonus where she has been engaged to provide health and welfare
• It is given out of gratuity of the employer but it is demandable services.
or enforceable obligation when it is made part of the (e) The work requires the manual skill and dexterity of women.
wage/salary of the employee. (f) The women employees are immediate members of the family
• If it is additional compensation which employer promised and operating the establishment.
agreed to give without any conditions imposed for its payment (g) Other analogous cases exempted by the Secretary of Labor.
it is part of wages. (CONDITIONS: success of business,
production output) What are the facilities for women employees that an
o Simply: If it is stated in the employees contact, then it employer should provide?
is mandatory. (a) Proper seats which they can use when they are free from work
and during working hours, provided they are still efficient in this
I. Non-inclusion in regular wage position.
(b) Separate toilet room, lavatory and dressing room.
The mandated 13th month pay need not be credited as part of (c) Nursery
regular wage for purpose of determining overtime and (d) Standards for retirement or termination in special occupation.
premium payments, fringe benefits as well as SS, Medicare
and private retirement plans. ART. 133. MATERNITY LEAVE BENEFITS
(a) Any pregnant women employee who has rendered an aggregate
V. WORKING CONDITIONS FOR SPECIAL GROUPS OF service of at least six months for the last twelve months is entitled to
EMPLOYEES maternity leave benefits of at least two weeks prior to the
expected date of delivery and another four weeks after normal
A. Employment of Women delivery or abortion with full pay based on her regular or
average weekly rates.
ART. 130. NIGHTWORK PROHIBITION (b) The maternity leave shall be extended without pay on account of
No woman, regardless of age, shall be employed or permitted or illness medically certified to arise out of the pregnancy, delivery,
suffered to work, with or without compensation: abortion, or miscarriage.
(a) Industrial undertaking – between 10:00pm to 6:00pm (c) Maternity leave is applicable only for the first four deliveries by a
(b) Commercial or non-industrial undertaking – between 10:00pm woman employee.
to 6:00pm
(c) Agricultural undertaking – at nighttime unless she is given a MATERNITY LEAVE UNDER SSS LAW
period of rest of not less than nine consecutive hours. Qualifications:
1. The female member should be employed at the time of the
Exceptions on nightwork prohibition of women: delivery, miscarriage, or abortion.
(a) Disaster or force majeure, in order to prevent loss of life or 2. She must have given the required notification to the SSS thru her
property. employer.
(b) Urgent work on machineries to avoid serious loss.
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LABOR STANDARDS REVIEWER 21

3. Her employer must have paid at least three months of maternity or to actually dismiss, discharge, discriminate or otherwise prejudice
contributions within the twelve-month period immediately before the a woman employee merely by reason of marriage.
semester of contingency.
Any woman who is (1) permitted or suffered to work with or without
How much is the maternity benefit under SSS Law? compensation (2) in any night club, cocktail lounge, massage clinic,
100% of her average daily salary credit for 60 days or 78 days in case bar or similar establishment (3) under the effective control or
of caesarian delivery. supervision of the employer for a substantial period of time as
determined by DOLE Secretary, is deemed an employee of such
Every pregnant women in the private sector, whether married or establishment.
unmarried, is entitled to the maternity leave benefits. (No. XI, DOLE
Handbook on Worker’s Statutory Benefits)

ART. 134. FAMILY PLANNING SERVICES; INCENTIVES FOR


FAMILY PLANNING B. Employment of Minors
(a) Establishments which are required by law to maintain a clinic or
infirmary shall provide free family planning services to their MINIMUM EMPLOYABLE AGE
employees which shall include but not be limited to, the application
or use of contraceptive pills and intrauterine devices. The minimum employable age is 15.
(b) DOLE shall develop bonus schemes to encourage family planning
among female workers in any establishment. Discrimination of A child below 15 years of age may be allowed to work for not more
women employee is prohibited. than 4 hours at any given day, nor more than 20 hours a week.

What are considered acts of discrimination? A child 15 years of age but below 18 shall not be allowed to work for
1. Payment of a lesser compensation to a female employee as more than 8 hours a day, and in no case beyond 40 hours a week.
against a male employee for work of equal value. (R.A. 7610)
2. Favoring a male employee over a female employee with respect to
promotion, training opportunities, study and scholarship grants. No child below 15 years of age shall be employed, except
3. To deny or discharge any women employee the benefits provided • when he works under the sole responsibility of his
under the Labor Code. parents or guardian, and
4. To discharge a woman employee because of her pregnancy. • his employment does not in any way interfere with his
5. To refuse the admission of such woman employee upon getting to schooling.
her work for fear that she may again be pregnant.
C. Employment of Househelp
ART. 136. STIPULATION AGAINST MARRIAGE
It shall be unlawful for an employer to require as a condition of Domestic or household service shall mean services in the
employment or continuation of employment that women employees employer’s home which is usually necessary or desirable for
shall not get married, or be deemed resigned upon getting married, the maintenance and enjoyment thereof and includes ministering

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LABOR STANDARDS REVIEWER 22

to the personal comfort and convenience of the members of the the applicable legal minimum wage.
employer’s household, including services of family drivers. Trains in a semi-skilled job or Trains in a highly skilled job
industrial occupations that or in a job found only in a
The contract of domestic service shall not last for more than 2 years require training for less than highly technical industry
but may be renewed for such periods as may be agreed upon by the three months. hence training period
parties. exceeds three months.
Learnership is allowed even for Employment of apprentices is
A househelper shall not be assigned to non-household work. non-technical jobs. legally allowed only in highly
technical industries.
If the period of household service is fixed, neither the employer nor Involves theoretical
the househelper may terminate the contract before expiration of the perspective.
term except for just cause. If unjustly dismissed, he or she shall be
A learner is not an apprentice, but an apprentice is
paid the compensation already earned plus that for 15 days by way of
conceptually also a learner.
indemnity. If he/she leaves without justifiable reason, he/she shall
forfeit any unpaid salary due him/her not exceeding 15days.
Qualifications:
If there is no contract, the employer or househelper may give notice 1. At least 15 but less than 18, only in nonhazardous
to put an end to the relationship 5 days before the intended occupations
termination of service. 2. Physically fit (need not be physically fit unless it is essential
D. Apprentices to the expeditious and effective learning of the occupation.)
3. Possess vocational attitude.
Apprenticeship is the arrangement and the period when an upcoming 4. Ability to comprehend and follow oral and written
worker undergoes hands-on training, more or less formal, to instructions.
learn the ropes of a skilled job.

Objectives: • Apprenticeship period shall not exceed six months.


1. To help the demand of the economy for trained manpower. • Hours of work – 8 hours.
2. To establish a national apprenticeship program through o Time spent in a theoretical instructions shall be
the participation of employers, workers and government and considered as hours of work and shall be reckoned
non-government agencies. jointly with on-the-job training time in computing in the
3. To establish apprenticeship standards for the protection agreement the appropriate periods for giving wage
of apprentices. increases to the apprentice.
o An apprentice may be allowed to work overtime
LEARNERSHIP APPRENTICESHIP provided there are no available regular workers
to do the job, which overtime shall be credited to
Both mean training periods for jobs requiring skills that can be
his training time.
acquired through actual work experience.
Because both learner and apprentice are not as fully productive • Previous training or experience shall be given due credit
as regular workers, they receive paid wages 25% lower than therefor.

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LABOR STANDARDS REVIEWER 23

• Parties to the agreement – Partnership agreement shall be


signed by the employer or his duly authorized representative Coverage – This rule applies to all establishments, undertakings,
and by the apprentice. If minor, it shall be signed by his parent whether operated for profit or not, including educational, medical,
or guardian, or by an authorized representative of the DOLE. charitable and religious institutions and organizations, in cases of
• Ratio of theoretical and on-the-job training – 100 hours of regular employment with the exception of the Government and it
theoretical instructions for every 2000 hours of practical or on- political subdivisions including government owned or controlled
the-job training corporations.
• Wages – Shall start at 75% of the statutory minimum
wage for the first 6 months. Thereafter, he shall be Termination of employees:
paid the full minimum.
REGULAR EMPLOYEE PROBATIONARY EMPLOYEE
E. Learners Just cause Just cause
Authorized cause provided by Authorized cause provided by law
Learner is a person hired as a trainee in industrial occupations which law
are nonapprenticeable and which may be learned through practical Failure to qualify in accordance
training on the job for a period not exceeding 3 months. with standards of the employer
made known to him at the start of
• Wages – not exceeding 6 months. Thereafter he becomes employment.
regular worker.
• Minor below 15 cannot be employed as learner. Those below
18 may only be employed in nonhazardous occupations. JUST CAUSE AUTHORIZED CAUSE TERMINATION
BY EMPLOYEE
F. Handicapped Workers W/O JUST CAUSE
Neglect of duties Redundancy Serious insult by
• Those whose earning capacity is impaired by age or Disobedience Retrenchment the employer
physical or mental deficiency or injury. Attempt against the Installation of labor Inhuman or
• They may be employed when their employment is necessary life of the employer saving devices unbearable
to prevent curtailment of employment opportunities and when Breach of trust Closure of business treatment
it does not create unfair competition in labor costs or impair Other analogous Commission of
working standards. crime against the
• Wage shall at least 75% of the minimum wage. employee
• They shall not be precluded from employment if their Other analogous
handicap is not such as to effectively impede in the Separation pay, as a Separation pay
performance of job operations in the particular trade or rule, will NOT be paid required
occupation.
Types of employment:
VI. TERMINATION OF EMPLOYMENT
1. Regular employment - when an employee has been engaged to
Block 2
LABOR STANDARDS REVIEWER 24

perform activities which are usually necessary or desirable in the for a just cause or authorized cause, or when he fails to qualify as
usual business or trade of the employer except: a regular employee in accordance with the reasonable standards
a. where the employment has been fixed for a specific prescribed by the employer; and
project or undertaking the completion or termination of d. In all cases involving probationary employees, the employer shall
which has been determined at the time of the engagement make known the standards under which he will qualify as a
of the employee; or regular employee at the time of his engagement.
b. where the work or service to be performed is seasonal in
nature and the employment is for the duration of the Employees covered by contracting or subcontracting
season. arrangement may NOT be dismissed prior to the expiration of
c. a probationary employee who is allowed to work beyond the contract between the principal and the contractor or
the probationary period shall be considered a regular subcontractor as defined in Rule VIII-A, Book III.
employee.
NOTE: Trilateral Relationship in Contracting Arrangements – In a
2. Casual employment - Employment shall be deemed casual in legitimate contracting there exists a trilateral relationship under
nature if it is not covered by the preceding paragraph which there is:
a. a contract for a specific job, work or service between the
UNLESS the employee has rendered at least one year (six principal and the contractor or subcontractor;
months) of service whether such service is continuous or not, with b. an employment contract between the contractor or
regard to the activity in which he is employed and his subcontractor and its workers.
employment shall continue while such activity exists.
Parties
3. Probationary employment - There is probationary employment 1. The principal which decides to farm out a job or service to a
where the employee, upon employment is made to undergo a contractor;
trial period during which the employer determines his 2. The contractor or subcontractor which has the capacity to
fitness to qualify for regular employment, based on independently undertake the performance of the job, work, or
reasonable standards made known to him at the time of service; and
engagement. 3. The contractual workers engaged by the contractor or
subcontracot to accomplish the job, work or service.
Rules on probationary employment:
a. Where the work for which the employee was engaged is Exceptions:
learnable or apprenticeable, in accordance with the standards • for just and authorized causes;
prescribed by the DOLE, the probationary period shall be • completion of the phase of the contract for which the
limited to the authorized learnership or apprenticeship employee was engaged.
period, whichever is applicable;
b. Where the work is neither learnable or apprenticeable, the BUT – subject to the requirements of due process and notice.
probationary period shall not exceed six (6) months
reckoned from the date the employee actually started; IN ALL CASES, the standards of due process shall be observed:
c. The services of a probationary employee may be terminated only • A written notice served on the employee specifying the
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LABOR STANDARDS REVIEWER 25

ground or grounds for termination, and giving said


employee reasonable opportunity within which to explain his Requirement: Service of formal notice to the employees
side; affected and the Department of Labor and Employment at least
• A hearing or conference during which the employee one (1) month before intended date of closure or cessation of
concerned, with the assistance of counsel if he so desires, is operation.
given opportunity to respond to the charge, present his
evidence, or rebut the evidence presented against him; and, Separation pay for terminated employees as to the cause:
• A written notice of termination served on the employee REDUNDANCY OR
CLOSURES OR TERMINATION DUE
indicating that upon due consideration of all circumstances, LABOR SAVING
RETRENCHMENT TO DISEASE
grounds have been established to justify his termination. DEVICES
at least one (1) one (1) month pay or one (1) month pay or
For probationary employees – due to completion of a contract or month pay or to at at least one-half at least one-half
phase thereof - notice of failure to meet standards of the company least one (1/2) (1/2) month pay for (1/2) month pay for
within a reasonable time before effectivity of termination. month pay for every every year of every year of
year of service, service, whichever is service, whichever is
The following are just causes for termination of employment: whichever is higher. higher. higher.
1. Serious misconduct or wilful disobedience by the A fraction of at least six (6) months shall be considered one (1) whole
employee of the lawful orders of his employer or year. (BP Blg. 130).
representative in connection with his work;
2. Gross and habitual neglect by the employee of his duties; Art. 284 Disease as ground for termination - An employee who
has been found to be suffering from any disease and whose
3. Fraud or wilful breach by the employee of the trust
continued employment is prohibited by law or is prejudicial to his
reposed in him by his employer his duly authorized
health as well as to the health of his co-employees.
representative;
4. Commission of a crime or offense by the employee against Book VI Rule I Sec. 8. – The employer shall not terminate the
the person of his employer or any immediate member of his employment unless there is a certification issued by a
family or his duly authorized representative; and, competent public health authority that the disease is of such
5. Other causes analogous to the foregoing. (Batas Pambansa nature or at such stage that it cannot be cured within a
Blg. 130) period of six (6) months even with proper medical treatment.

Art. 283 Closure of establishment and reduction of personnel If the ailment can be cured within the period, the employee shall not
Termination due to: be terminated. Instead, the employer shall ask him to take leave, to
• the installation of labor-saving devices, redundancy; be reinstated later to his former position immediately upon
• retrenchment to prevent losses; restoration of his normal health.
• closing or cessation of operation of the establishment or
undertaking Basis of termination pay – The last salary of the employee unless it
o UNLESS the same is for the purpose of circumventing was reduced by the employer to defeat the law in which case the
the provisions of this Title. salary before the reduction shall be the basis.

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LABOR STANDARDS REVIEWER 26

refusal of the employee to resume his employment. (Nueva


Art. 285 Termination by employee – An employee may Ecija Electric Cooperative vs. Minister of Labor, 184 SCRA 25
terminate without just cause the employer-employee relationship [1990]), coupled with a clear absence of any intention of returning
by serving a written notice at least a month in advance. Without such to his or her work (C. Planas Commercial vs. NLRC, 303 SCRA 49
notice, the employer may hold the employee liable for damages. [1999]).
a. Filing of a complaint for illegal dismissal negates
No notice is required under the following circumstances: employer’s theory of abandonment. – (Rizada vs. NLRC
1. Serious insult by the employer or his representative on the 315 SCRA 316 [1999])
honor and person of the employee;
2. Inhuman and unbearable treatment accorded the An employee entitled to immediate reinstatement per Labor Arbiter’s
employee by the employer or his representative; order but refuses the reinstatement, not deemed to have abandoned
3. Commission of a crime or offense by the employer or his job. – (Jardin Davis vs. NLRC, 225 SCRA 757 [1993])
representative against the person of the employee or
any of the immediate members of his family; and, When closure is due to serious business losses or financial reverses,
4. Other causes analogous to any of the foregoing. financial bankruptcy, not obliged to pay separation pay. (North Davao
Mining & Development Corporation vs. NLRC, 254 SCRA 721 [1996])
Art. 286 When employment not deemed terminated –
1. Bona fide suspension of the operation of a business or Distinction between Redundancy and Retrenchment –
undertaking for a period not exceeding 6 months; Burden of proof upon employer to show compliance with the twin
2. Fulfilment by the employee of a military or civic duty. requirements of notices and hearing. (Viola Cruz vs. NLRC, 324
SCRA770 [2000]) Farrol v. Court of Appeals, 325 SCRA 331 [2000]};
In all such cases the employer shall reinstate the employee to his Savellana vs. I.T. [International] Corporation, 356 SCRA 451 [2001].
former position without loss of seniority rights if he indicates his
desire to resume his work not later than one month from the
resumption of operations OR from his relief from the military or civic
duty.

Notes: Substantive and Procedural due process –


• Legality of the ground as provided under Art. 282;
SOCIAL LEGISLATION
• Legality of the manner of dismissal – observance of the
procedural requirements. (due process).(Aurelio vs. NLRC, 221
RA 9710 MAGNA CARTA FOR WOMEN
SCRA 432 [1993]); Shoemart, vs. NLRC 176 scra 385 [1989])
What is discrimination against women? The Magna Carta of
3. Failure to qualify as regular employee –International Catholic Women defines discrimination against women as:
Migration Committee vs. NLRC, 169 SCRA 606 [1989])
• any gender-based distinction, exclusion, or
restriction which has the effect or purpose of impairing
4. Abandonment as ground for termination – to constitute a or nullifying the recognition, enjoyment, or exercise by
valid cause for termination must be a deliberate unjustified
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LABOR STANDARDS REVIEWER 27

women, irrespective of their marital status, on a basis of The Magna Carta of Women also spells out every woman's
equality of men and women, of human rights and fundamental right to:
freedoms in the political, economic, social, cultural, civil or any • Protection from all forms of violence, including those
other field; committed by the State.
• any act or omission, including by law, policy, administrative • Protection and security in times of disaster, calamities and
measure, or practice, that directly or indirectly excludes other crisis situations, especially in all phases of relief,
or restricts women in the recognition and promotion of recovery, rehabilitation and construction efforts, including
their rights and their access to and enjoyment of protection from sexual exploitation and other sexual and
opportunities, benefits, or privileges; gender-based violence.
• a measure or practice of general application that fails to • Participation and representation, including undertaking
provide for mechanisms to offset or address sex or temporary special measures and affirmative actions to
gender-based disadvantages or limitations of women, accelerate and ensure women's equitable participation and
as a result of which women are denied or restricted in the representation in the third level civil service, development
recognition and protection of their rights and in their access to councils and planning bodies, as well as political parties and
and enjoyment of opportunities, benefits, or privileges; or international bodies, including the private sector.
women, more than men are shown to have suffered the • Equal treatment before the law, including the State's review
greater adverse effects of those measures or practices; and and when necessary amendment or repeal of existing laws
• discrimination compounded by or intersecting with other that are discriminatory to women;
grounds, status, or condition, such as ethnicity, age, poverty, • Equal access and elimination of discrimination against women
or religion. in education, scholarships and training.
o This includes revising educational materials and
Principles of human rights and rights of women curricula to remove gender stereotypes and images,
Human rights are: and outlawing the expulsion, non-readmission,
1. universal and inalienable prohibiting enrollment and other related discrimination
2. indivisible against women students and faculty due to pregnancy
3. inherent to the dignity of every human being outside of marriage;
4. interdependent and interrelated • Equal participation in sports.
o This includes measures to ensure that gender-based
What are the rights of women guaranteed under the Magna
discrimination in competitive and non-competitive
Carta of Women?
sports is removed so that women and girls can benefit
• All rights in the Philippine Constitution and those rights from sports development;
recognized under international instruments duly signed and
• Non-discrimination in employment in the field of military,
ratified by the Philippines, in consonance with Philippine laws.
police and other similar services.
These rights shall be enjoyed without discrimination since the
o This includes according the same promotional
law prohibits discrimination against women, whether done by
privileges and opportunities as their men counterpart,
public and private entities or individuals.
including pay increases, additional benefits, and
awards, based on competency and quality of
performance.
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LABOR STANDARDS REVIEWER 28

• Non-discriminatory and non-derogatory portrayal of women in • Recognition and preservation of cultural identity and integrity
media and film to raise the consciousness of the general provided that these cultural systems and practices are not
public in recognizing the dignity of women and the role and discriminatory to women;
contribution of women in family, community, and the society • Inclusion in discussions on peace and development;
through the strategic use of mass media; • Services and interventions for women in especially difficult
• Comprehensive health services and health information and circumstances or WEDC;
education covering all stages of a woman's life cycle. • Protection of girl-children against all forms of discrimination in
• Leave benefits of two (2) months with full pay based on gross education, health and nutrition, and skills development; and
monthly compensation, for women employees who undergo • Protection of women senior citizens.
surgery caused by gynecological disorders, provided that they
have rendered continuous aggregate employment service of Marginalized refers to the disadvantaged or vulnerable persons or
at least six (6) months for the last twelve (12) months; groups who are mostly living in poverty and have little or no access
• Equal rights in all matters relating to marriage and family to land and other resources, basic social and economic services.
relations.
o The State shall ensure the same rights of women and These include but not limited to women in the following sectors and
men to: enter into and leave marriages, freely choose a groups: (SFU-WWM-IMC-SDS)
spouse, decide on the number and spacing of their • Small farmers and rural workers,
children, enjoy personal rights including the choice of a • Fisherfolk,
profession, own, acquire, and administer their property, • Urban poor,
and acquire, change, or retain their nationality. • Workers in the formal economy, Workers in the informal
economy,
The Magna Carta of Women also guarantees the civil, political • Migrant workers,
and economic rights of women in the marginalized sectors,
• Indigenous Peoples,
particularly their right to:
• Moro, Children, Senior citizens,
• Food security and resources for food production, including
• Disabled persons
equal rights in the titling of the land and issuance of
stewardship contracts and patents; • Solo parents
• Localized, accessible, secure and affordable housing;
Who’s primary duty is it to implement and give force and
• Employment, livelihood, credit, capital and technology;
effect to the magna carta of women?
• Skills training, scholarships, especially in research and
• The State, the private sector, society in general, and all
development aimed towards women friendly farm technology;
individuals shall contribute to the recognition, respect and
• Representation and participation in policy-making or decision- promotion of the rights of women defined and guaranteed in
making bodies in the regional, national, and international the Magna Carta of Women.
levels;
• Access to information regarding policies on women, including What are the specific duties of government under the magna
programs, projects and funding outlays that affect them; carta of women?
• Social protection;

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LABOR STANDARDS REVIEWER 29

• The Philippine Government shall be the primary duty-bearer in MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
implementing the said law. This means that all government (RA 8042) AS AMENDED AND FURTHER AMENDED BY RA 10022
offices, including local government units and government-
owned and controlled corporations shall be responsible to Date of effectivity: August 13, 2010
implement the provisions of Magna Carta of Women that falls
within their mandate, particularly those that guarantee rights Overseas Filipino Worker (OFW)
of women that require specific action from the State. • Interchangeably used with migrant workers
• As the primary duty-bearer, the Government is tasked to: • Person who is (1) to be engaged, (2) is engaged or (3) has
o refrain from discriminating against women and been engaged in a remunerated activity in a state of which he
violating their rights; is not a citizen.
o protect women against discrimination and from • Person who works on a vessel navigating the foreign seas
violation of their rights by private corporations, entities, o except: government ship used for military or non-
and individuals; commercial purposes.
o promote and fulfill the rights of women in all spheres,
• Person working on an installation located offshore or on the
including their rights to substantive equality and non-
high seas
discrimination.
• The Government shall fulfill these duties through the Deployment of Migrant Workers
development and implementation of laws, policies,
regulatory instruments, administrative guidelines, and
• State may only allow deployment of migrant workers only in
countries where the rights of the Filipino Migrant
other appropriate measures, including temporary special
Workers are protected.
measures. It shall also establish mechanisms to promote the
coherent and integrated implementation of the Magna Carta • The following are considered as sufficient guarantees for
of Women and other related laws and policies to effectively the protection of the OFWs:
stop discrimination against Filipino women. 1. Has existing labor and social laws
2. Signatory to multilateral conventions, declarations or
Pura’s tips: resolutions relating to the protection of OFWs
3. Concluded a bilateral agreement with the government
The MCW focuses on providing equal opportunities for men and 4. Taking positive and concrete measures to protect the
women. rights of the OFWs
• See Chapter 1, Sec. 2 of RA 9710
Note: no permit for deployment shall be issued by the POEA in the
• The MCW is also in compliance with the CEDAW
absence of a clear showing that any of the mentioned guarantees
exists. In the case of MWs, the employment contract has to be
Implications on Labor Laws:
approved by the POEA.
• Sec, 13
• Sec. 17 The State shall also allow the deployment of overseas Filipino
• Right to decent work standards for women workers to:
1. Vessels navigating on the foreign seas or to installations

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LABOR STANDARDS REVIEWER 30

located offshore whose owners or employers are compliant • Furnish or publish any false notice or information or document
with internationalo laws. in relation to recruitment or employment.
2. Companies and contractors with international operations • Give any flase notice, testimony, information or document or
a. Provided that they are compliant with standards, commit any act of misrepresentation for the purpose of
conditions and requirements as embodied in the securing a license or authority under the Labor Code or for the
employment contracts prescribed by the POEA. purpose of documenting hired workers with the POEA.
• Induce or attempt to induce a worker already employed to quit
Termination or Ban on Deployment
his employment.
• The POEA may impose a ban or termination of deployment to
o Unless the transfer will liberate the worker from
countries that may be found not complying with the
oppresive terms and conditions of employment.
aformentioned conditions and guarantees.
• Influence or attempt to influence any person or entity not to
• In pursuit of national interest or when public welfare so employ any worker who has not applied for employment
requires. through his agency.
• Engage in the recruitment or placement of workers in jobs
What is illegal recruitment?
harmful to public health or morality.
• Art. 38 of RA 10022 defines such as;
o Any act of: (CECTUHP) Who are liable?
 Canvassing • Principals, accomplices and accessories
 Enlisting • In case of juridical persons, the officers who has
 Transporting ownership, control, management or direction of the
 Contracting business who are responsible for the commission of the
 Hiring offense and the responsible employees/agents.
 Utilizing
 Procuring workers
o Including SYNDICATED ILLEGAL LARGE SCALE ILLEGAL
 Referring contract services RECRUITMENT RECRUITMENT
 Promising or Carried out by (3) or more Committed against (3) or
 Advertising for employment persons conspiring or more persons individually or as a
o Whether for profit or not, when undertaken by non- confederating with one another. group.
licensee or non-holder of authority. Look at the number of the people Look at the number of people
who committed. who were victimized.
The following are prohibited acts:
• Charge or accept directly or indirectly any amount greater Jurisdiction
than that specified in the schedule of allowable fees 1. Labor Arbiter (NLRC) has original and exclusive
prescribed by the Secretary of Labor and Employment or to jurisdiction over:
make a worker pay or acknowledge any amount greater than a. Money claims arising out of an ER-EE relationship
that actually received by him as a loan or advance. b. By virtue of any law or contract involving Filipino

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LABOR STANDARDS REVIEWER 31

workers for overseas deployment including claims for Declaration of policy:


actual, moral, exemplary and other forms of damages. • It is the policy of the RP to establish a sound and viable social
2. POEA – responsible for promoting overseas employment and security service
protect rights. • Promote social justice to members and prevent hazards
a. Retains original and exclusive jurisdiction to hear and • Resulting in loss of income or financial burden
decide: • The main beneficiaries of the law are the workers and
i. Administrative cases involving violation of rules subsidiary beneficiaries.
and regulations relating to licensing and
registration of recruitment and employment Powers and duties of SSS – Sec. 4
agencies or entities; • Proprietary powers. It is a juridical person that’s why it has the
ii. Disciplinary action cases and other special power and right to acquire properties through its semi
cases which are administrative in character facilities.
involving employers, principals, contracting
• They can project how much they should be collecting and how
partners and Filipino MWs.
much they can provide to their members through their
Pura’s tip: the regulatory functions of the POEA will be faced
actuary.
out within 5 years.
Settlement of disputes – Sec. 5
3. RTC
a. Criminal action arising from illegal recruitment shall be • Because of the functions of SSS, it is not a remote possibility
filed with the RTC of the province or city where the that somehow it will be involved in disputes; or its members
offense was committed or where the offended party be involved in one dispute or another.
actually resides at the time of the commission of the • These disputes arising under this act, with respect to
offense. coverage, shall be cognizable by the comission.
b. Once the RTC acquires jurisdiction, other courts are • These disputes may be heard either by the comission or by
excluded. any of its members
o They also have a legal department.
Effects of termination of overseas employment WITHOUT • The decision of the comission shall be appealable to the Court
JUST, VALID OR AUTHORIZED CAUSE of Appeals.
• Worker shall be entitled to the following: o Same procedure as if the decision was from a trial
o Full reimbursement of his placement fee court.
o Deductions made with interest at 12% per annum
o Salaries for the unexpired portion of his employment Definition of terms – Sec. 8
contract or for the three months for every year of the • Dependents – the following are considered to be dependents:
unexpired term, whichever is less. o Legal spouse entitled by law to receive support from
the member
SOCIAL SECURITY SYSTEM (RA 1161 AS AMENDED BY RA o Legitimate, legitimated, legally adopted child
8282) o Illegitimate child
 Unmarried
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LABOR STANDARDS REVIEWER 32

 Not employed o That the dependent illegitimate children shall be


 Has not reached 21 y/o entitled to 50% of the share of the legitimate,
 If over 21 y/o, he is congenitally or while still a legitimated or legally adopted children.
minor has been permanently incapacitated and o In the absence of the legitimate, legitiamated or legally
incapable of self-support, physically or mentally adopted children, illegitimate children shall be entitled
o Parent who is receiving regular support to 100% of the benefits
• Monthly salary credit – compensation base for contributions o In their absence, the dependent parents shall be the
and benefits as indicated in the schedule secondary beneficiaries
o If for example, you have 2 employers and you have a o In the absence of all the foregoing, any person
salary under the monthly salaray credit for both jobs. designated by the employee as their secondary
Under the law, there is only 1 membership entitiled per beneficiary.
person. • Contingency – the retirement, death, disability, injury or
o 1ER = P6,000 and 2ER = P6,000 sickness and maternity of the member.
o The member shall use the same SS number. The 2E
shall only pay for the contribution proportional to that RA 7875 AN ACT INSTITUTING A NATIONAL HEALTH
of the salary he is paying. INSURANCE PROGRAM FOR ALL FILIPINOS AND ESTABLISHING
o If the 2ER shall pay a salary that will exceed the THE PHILIPPINE HEALTH INSURANCE CORPORATION FOR THE
monthly maximum salary credit, the 2ER shall only pay PURPOSE.
for the salary up to the amount that meets the monthly
maximum salary credit. Dependents – legal dependents of a member are:
• Remittance of contribution • Legitimate spouse WHO IS NOT A MEMBER
o If the employer fails to remit on time, they shall pay for • Legitimate, legitimated, illegitemate, legally adopted children
additional 3% o Provided acknowledged with evidence
o If the employer habitually fails to remit, an estafa o Under 21 years
case may be filed against the employer o If over 21, must be suffering from a disability rendering
 This is estafa because of the contributions that him totally dependent for support
should be yours. • Parents who are 60 y/o or above whose monthly income is
• Coverage of SSS below or above P5,000
o Compulsory upon all employees not over 60 years of
age and their employers Benefit package
o Spouses may be covered on a voluntary basis • The following categeries:
o Filipinos recruited by foreign-based employers for employment o In patient hospital care
abroad may be covered by the SSS on a voluntary basis. o Out patient hospital care
• Beneficiaries – the dependent spouse until he or she
remarries, the dependent legitimate, legitimated or legally Entitlement to benefits
adopted and illegitimate children who shall be the primary • A member whose premium contributions for at least 3 months
beneficiaries: have been paid within 6 months prior to the 1st day of
Block 2
LABOR STANDARDS REVIEWER 33

availment shall be entitled to the benefits of the program. shall be entitled to security of tenure, humane conditions of work,
Provided that he pays contributions with sufficient regularity. and a living wage. They shall also participate in policy and decision-
o Provided further the he is not currently subject to legal making processes affecting their rights and benefits as may be
penalties. provided by law.
o “sufficient regularity” pertains to the history of the
payment of premiums. The State shall promote the principle of shared responsibility
• At least 3 months contribution between workers and employers and the preferential use of voluntary
• 6 months prior to availment/ confinement modes in settling disputes, including conciliation, and shall enforce
• You have to be employed for 6 months prior to confinement their mutual compliance therewith to foster industrial peace.
and you have at least 3 months contribution to avail.
The State shall regulate the relations between workers and
Quasi judicial powers employers, recognizing the right of labor to its just share in the fruits
of production and the right of enterprises to reasonable returns to
• Render deicisions
investments, and to expansion and growth.
• Shall conduct proceedings or any part thereof in public or
executive manner depending on the case
3 parts of the provision
• They are more of an administrative body with regard to
• Economic
procedure. But they have a quasi judicial function.
o Full protection to labor:
 Local
RA 9241 AN ACT AMENDING REPUBLIC ACT NO. 7875,
OTHERWISE KNOWN AS “AN ACT INSTITUTING A NATIONAL  Overseas
HEALTH INSURANCE PROGRAM FOR ALL FILIPINOS AND  Organized
ESTABLISHING THE PHILIPPINE HEALTH INSURANCE  Unorganized
CORPORATION FOR THE PURPOSE.” o Promote full employment and equality of employment
opportunities
• In the old law, those suffering from congenital diseases were o Guarantee the rights of workers:
not included.  Self-organization
• Provisions are almost just the same with RA7875  Collective bargaining and negotiations
 Peaceful concerted activities
1987 CONSTITUTION  Right to strike
ARTICLE XIII, Section 3 o Entitlement to:
 Security of tenure
Section 3. The State shall afford full protection to labor, local and  Humane conditions of work
overseas, organized and unorganized, and promote full employment  Living wage
and equality of employment opportunities for all. • Dispute settlement
It shall guarantee the rights of all workers to self-organization, o Promote principle of share resposibility between
collective bargaining and negotiations, and peaceful concerted
workers and employers
activities, including the right to strike in accordance with law. They
o Preferential use of voluntary modes of settling disputes
Block 2
LABOR STANDARDS REVIEWER 34

o Enforce mutual compliance to foster industrial peace amounting to NOT MORE


• State regulation of employee-employer relationship THAN P5,000
o Recognize the right of labor to its just share in the Contempt cases
fruits of production
o Right of enterprises to reasonable returns on
investments, expansion and growth CHAPTER II: POWERS AND DUTIES
Art. 217: JURISDICTION OF LABOR ARBITERS AND THE
COMMISSION
NATIONAL LABOR RELATIONS COMMISSION
AS AMENDED BY RA 9347 Exclusive and original jurisdiction of Labor Arbiters – the
following cases involving all workers, whether agricultural or non-
CHAPTER I: CREATION AND COMPOSITION agricultural
ART. 213: NATIONAL LABOR RELATIONS COMMISSION (UTR-DVO-DCDO)
(as amended by RA 9347) 1. ULP casses
2. Termination disputes
National Labor Relations Commission (NLRC) 3. Claim for reinstatement that workers (including overseas
• an administrative body with quasi-judicial functions and workers) file involving the following:
the principal government agency that heards and decides a. Wages
labor management disputes. b. Rates of pay
• attached to the DOLE for program and policy coordination c. Hours of work
only. d. Other terms and conditions of employment
• Composed of the following: This is limited only to those arising from statutes or
o 1 chairman contracts other than the CBA.
o 23 members 4. Claims for damages arising from ER-EE relations
a. Actual
Jurisdiction of the NLRC b. Moral
EXCLUSIVE AND ORIGINAL EXCLUSIVE APPELLATE c. Exemplary
Certified cases – cases certified Cases decided by Labor Arbiters d. Other forms
to it for compulsory arbitration by under Art. 217(b) of the Labor 5. Cases arising out of violation of Art. 264, including questions
the Secretary of Labor under Art. Code and Sec. 10 of RA8042 involving legality of strikes and lockouts
263 or the President under Art. (Migrant Workers Act) 6. Monetary claims of overseas contract workers arising from ER-
264 EE relations under the Migrant Workers Act
Injunction cases under Art. 218 Cases decided by the Regional 7. Wage distortion disputes in unorganized establishments not
and 264 Offices of DOLE in the exercise of voluntarily settled by the parties
its adjudicatory function under 8. Enforcement of compromise agreements when there is non-
Art. 129 of the Labor Code over compliance by any of the parties
monetary claims of workers 9. Other cases as provided by law

Block 2
LABOR STANDARDS REVIEWER 35

2. Where 2 or more RABs have jurisdiction over the workplace,


Note: Although the provision speaks of exclusive and original the first to acquire jurisdiction shall exclude others.
jurisdiction of Labor Arbiters, the cases enumerated may be 3. Improper venue when not objected to before filing of position
submitted to a voluntary arbitrator by agreement of parties under papers shall be deemed waived.
Art. 262. THE LAW PREFERS VOLUNTARY OVER COMPULSORY 4. Venue may be changed by written agreement of the parties or
ARBITRATION. when there Commission or Labor Arbiter so orders, upon
motion by the proper party in meritorious cases.
The Labor Arbiters has jurisdiction over controversies involving 5. For overseas contract workers, where the complainant resides
employers and employees only if there is a REASONABLE or where the principal office of the respondent employer office
CAUSAL CONNECTION BETWEEN THE CLAIM ASSERTED AND is located, at the option of the complainant.
THE ER-EE RELATIONSHIP. Without such link, the complaint is
cognizable by the regular court. Pura’s tip: When you file a case for illegal dismissal, always include
backwages. Always pray for reinstatement. So that if the dismissal is
The following cases must be disposed of the Labor Arbiter by ruled as illegal, there is reinstatement. As long as there is no ruling,
referring the same to the greivance machinery and voluntary the backwages shall continue to accrue.
arbitration:
• Disputes over the interpration or implementation of the On the complaint:
CBA • Look into how the labor standards are being violated? Does
• Disputes over the interpretation or enforcement of the the employer observe the minimum standards of
company personnel policies employment?
o Are they being paid holiday pay?
2005 NLRC Rules of Procedure on Venue of Filing Cases o Are they being paid their night differential?
1. All cases which Labor Arbiters have authority to decide may
be filed in the Regional Arbitration Branch (RAB) having The Labor Arbiter will schedule the case for compulsory concillation.
jurisdiction over the workplace of the complainant/petitioner. Efforts will be exerted to settle the case amicably.
a. WORKPLACE is understood to be the place or locality
where the employee is regularly assigned when the Section 4. Prohibited pleadings
cause of action arose. 1. Motion to dismiss the case
i. In case of field employees, ambulant or itinerant 2. Bill of particulars
workers, their workplace is: 3. Relief for new judgement
1. Where they are regularly assigned 4. Motion for new trial
2. Where they are supposed to regularly 5. Petition for review from judgement
receive their salaries and wages 6. Certiorari, mandamus or prohibition
3. Where they receive their work
instructions from When the decision is adverse to you, file a notice of appeal with a
4. Where they report the results of their memorandum of appeal within 10 days with the NLRC. The employer
assignments to their employers also files a bond.

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LABOR STANDARDS REVIEWER 36

Art. 221: TECHNICAL RULES NOT BINDING AND


PRIOR RESORT TO AMICABLE SETTLEMENT Note: No motion for reconsideration is available in questioning the
Labor Arbiter’s decision.
Quasi-judicial bodies like the NLRC are not bound by technical rules of
procedure of adjudication of cases. Period for appeal is NOT EXTENDIBLE – the perfection of an
appeal within the statutory/reglementary period is not only
The following are prohibited pleadings and motions under 2005 mandatory but also jurisdictional. Failure to do so renders the
NLRC Rules of Procedure questioned decision final and executory as to deprive the appellate
1. Motion to dismiss, except: court of jurisdiction to alter the final judgement of the Regional
a. on the ground of lack of jurisdiction over the subject Directors and Labor Arbiters.
matter
b. Improper venue Requisites for the perfection of an appeal to the NLRC:
c. Res judicata 1. Verified memorandum of appeal
d. Prescription and forum shopping a. Containing the grounds, issues raised and arguments
2. Motion for bill of particulars propounded and reliefs sought within the required
3. Petition for relief from judgement when filed with the labor period of appeal
arbiter b. Statement of the date appellant received the appealed
4. Petition for Certiorari, Prohibition and Mandamus decisio, order or resolution
5. Motion to declare respondent in default 2. In (3) legibly typewritten or printed copies
6. Motion for reconsideration or appeal from any interlocutory 3. Proof of payment of the required appeal fee
order 4. In case of monetary award, an appeal by the employer may be
perfected only by the posting of a bond (appeal bond).
Amicable settlement – the Labor Arbiter shall exert all efforts to 5. Proof of service upon the other parties
arrive at an amicable settlement of a labor dispute within its 6. Certificate of non-forum shopping
jurisdiction on or before its first hearing or during the mandatory
conferences set for the purpose.

CHAPTER III; APPEAL TO THE NLRC


Art. 223: appeal

Grounds for an appeal (FLEP):


• If the discussion, order or award was secured through
Fraud or coercion, including graft and corruption
• If made purely on questions of Law
• If serious Errors in the findings of facts are raised which
would cause grave or irrepairable damage to the appellant
• If there is Prima facie evidence of abuse of discretion on
the part of the Labor Arbiter
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