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Labor and Social Legislation AUF School of Law

THE LABOR CODE OF THE PHILIPPINES calculated to insure economic stability of all
component elements of society
Chapter 1
GENERAL PROVISIONS Constitutional provisions related to Labor:
 Art. II
Art. 1-2 o Sec. 9
Labor Code – took effect on November 1, 1974; “The State shall promote a just and
− charter of human rights and bill of dynamic social order that will ensure
obligation for every working man the prosperity and independence of
the nation and free the people from
Labor legislation – statutes, regulations and poverty through policies that provide
jurisprudence governing the relations between adequate social services, promote full
capital and labor, by providing certain standards employment, a rising standard of
and a legal framework for negotiating, adjusting living, and an improved quality of life
and administering those standards and other for all.”
incidents of employment.
• Labor standards – sets out the minimum o Sec. 10
terms, conditions and benefits of “The State shall promote social
employment that employers must comply justice in all phases of national
with development.”
o Minimum requirement required by
law and regulations relating to o Sec. 18
wages, hours of work, COLA, and “The State affirms labor as a
other monetary welfare benefits primary social economic force. It
including occupational safety and shall protect the rights of workers
health standards and promote their welfare.”
o Books 1 (Pre-Employment), Book
2 (Human Resources Development  Art. III, Sec. 8
Program), Book 3 (Conditions of “The right of the people, including
Employment),and Book 4 (Health, those employed in the public and
Safety & Social Welfare Benefits) of private sectors, to form unions,
the Labor Code associations, or societies for
• Labor relations – defines the status, rights purposes not contrary to law shall
and duties and the institutional not be abridged.”
mechanisms that govern the individual and
collective interactions of employers,  Art. VI
employees, or their representatives. Along with other sectors, labor is entitled to
o Book 5 (Labor Relations) and seats allotted to party-list representatives fro 3
consecutive terms after the ratification of the
Book 6 (Post-Employment)
Social legislation – includes laws that provide
 Art. IX-B, Sec 2[3], [5] and [6]
particular kinds of protection or benefits to society
“No officer or employee of the
or segments thereof in furtherance of social justice
civil service shall be removed or
(the aim of labor laws)
suspended except for cause
provided by law.”
social justice – the aim of labor laws; raison
“The right to self-organization
- promotion of the welfare of all the people, the
shall not be denied to government
adoption by the government of measures

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Labor and Social Legislation AUF School of Law

“Temporary employees of the making processes affecting their

Government shall be given such rights and benefits as may be
protection as may be provided by provided by law.
law.” The State shall promote
the principle of shared
 Art, XII, responsibility between workers
o Sec. 1 and employers and the
“The goals of the national preferential use of voluntary
economy are a more equitable modes in settling disputes,
distribution of opportunities, including conciliation, and shall
income, and wealth; a sustained enforce their mutual compliance
increase in the amount of goods therewith to foster industrial
and services produced by the peace.
nation for the benefit of the The State shall regulate
people; and an expanding the relations between workers
productivity as the key to raising and employers, recognizing the
the quality of life for all, especially right of labor to its just share in
the underprivileged. The State the fruits of production and the
shall promote industrialization right of enterprises to reasonable
and full employment based on returns on investments, and to
sound agricultural development expansion and growth.
and agrarian reform, through
industries that make full of Basic rights of workers guaranteed by the
efficient use of human and natural Constitution are the right to…
resources.”  organize themselves
 conduct CBA
o Sec. 15  engage in peaceful concerted
“The Congress shall create an activities
agency to promote the viability  enjoy security of tenure
and growth of cooperatives as  work under humane conditions
instruments for social justice and  receive a living wage
economic development.”  Participate in policy and
decision-making processes
 Art. XIII affecting their rights and
o Sec. 3 benefits as may be provided by
Section 3. The State shall law.
afford full protection to labor, local
and overseas, organized and o Sec. 4, 5, and 6
unorganized, and promote full Regular farmworkers shall have the
employment and equality of right to own directly or collectively the
employment opportunities for all. lands they till. Other farmworkers shall
It shall guarantee the rights of all receive a just share of the fruits of the
workers to self-organizations, and land they till. The state recognizes the
peaceful concerted activities, right of farmworkers, along with other
including the right to strike in groups to take part in the planning,
accordance with law. They shall organization, and management of
be entitled to security of tenure, agrarian reform program. Landless
humane conditions of work, and a farmworkers may be resettled by the
living wage. They shall also Government in it sown agricultural
participate in policy and decision- estates.

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o Sec. 9 responsibility between workers and

“The State shall, by law, and for employers.
the common good, undertake, in
cooperation with the private Police power is the basis of labor laws.
sector, a continuing program of Cases: PP vs. Pomar; Phil. Assoc. of
urban land reform and housing Service Exporters vs. Drilon
which will make available at
affordable cost, decent housing Birth of Labor Code:
and basic services to under-  Written in 1968 under the leadership of
privileged and homeless citizens Mr. Blas Ople (father of the Labor
in urban centers and resettlement Code)
areas. It shall also promote  Aim: consolidate the scattered labor
adequate employment laws & reorient these laws to the needs
opportunities to such citizens. In of economic development and justice.
the implementation of such
program the State shall respect 7 principles underlying the Code (see
the rights of small property pp. 14, The Labor Code with Comments
owners.” and Cases Vol. I, C.A. Azucena, 2004 ed.)

o Sec. 14 Other related laws:

“The State shall protect working  Civil Code
women by providing safe and o Art. 1700, Art. 1701, Art.
healthful working conditions, 1703, etc.
taking into account their maternal  Revised Penal Code
functions, and such facilities and o Art 289
opportunities that will enhance  Special Laws
their welfare and enable them to o SSS law, GSIS law,
realize their full potential in the Agrarian Reform Law, 13th
service of the nation.” month pay law, Magna
Carta for Public Heal
 Art. XVIII Workers
o Sec. 16
Career civil service employees separated from the ILO – International Labour Organization
service not for cause but as a result of the - UN specialized agency which seeks the
reorganization shall be entitled to appropriate promotion of social justice and internationally
separation pay and to retirement and other benefits recognized human and labour rights.
under existing laws. In lieu thereof, they may be - Created in 1919; Robert Owen of Wales &
considered for employment in the Government. Daniel Legrand of France
Those whose resignation has been accepted in - formulates international labor standards
line with the existing policy shall have this right. Art. 3
purpose: to place the workingman on an equal
o Sec. 18 plane with management with all its power and
“At the earliest possible time, the influence in negotiating for the advancement of his
Government shall increase the interests and the defenses of his rights.
salary scales of the other officials
and employees of the National

The constitution suggests shared

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Labor and Social Legislation AUF School of Law

Darvin vs. CA and PP
Art. 12 G.R. No. 125044 July 13, 1998
Employment problem is multi-faceted and the By themselves, procuring a passport, airline tickets and
foreign visa for another individual, without more, can
solution is the concern of not only one or two hardly qualify as recruitment activities.
government agencies but the concern of the entire
governmental system.
Art. 14
DOLE- the primary policy-making, programming, To pursue its responsibility to promote
coordinating, and administrative body of the employment opportunities, the DOLE carries out
Executive Branch programs for local and overseas employment.
Effective allocation of manpower resources in local
Purpose of Book One: employment is assigned to the BLE and to POEA
TO regulate the activities of agencies authorized for overseas employment.
to recruit and deploy workers for overseas
employment. The information or data obtained by the DOLE and
POEA will serve as guide in determining domestic
TITLE I labor needs.
Recruitment & Placement of Workers
An employer with at least 6 employees is required
Art. 13 to submit to the nearest public employment office
Art. 13 (b):this provision creates a presumption the ffg:
that the individual or entity is engaged in • list of existing job vacancies or opening
recruitment and placement whenever he is dealing • list of new employees, if any
with 2 or more persons to whom in consideration • termination, lay-off or retirement
of a fee, offer, or promise of employment is made • total number of employed workers for the
in the course of the canvassing, enlisting, period, and
contracting, transporting, utilizing, hiring, or • request for assistance, if needed, to fill the
procuring of workers' vacancies

PP vs Panis Art. 15
142 SCRA 664 (Bureau of Local Employment)
The number of persons dealt with is not an essential BLE & POEA were created by the mandate of
ingredient of the act of recruitment and placement of E.O. 797
workers. Any of the acts mentioned in the basic rule in
Article 13(b) will constitute recruitment and placement PESO
even if only one prospective worker is involved. The
proviso merely lays down a rule of evidence that where a • RA 8759; intended to serve as employment
fee is collected in consideration of a promise or offer of service and information center in its area of
employment to two or more prospective workers, the operation.
individual or entity dealing with them shall be deemed to • regularly obtains list of job vacancies from
be engaged in the act of recruitment and placement. The employers, publicizes them, invites and
words "shall be deemed" create that presumption.
evaluates applicants, and refers them for
probable hiring.
PP vs. Goce • Also provides training and educational
247 SCRA 780 guidance and employment counseling
There is illegal recruitment when one gives the impression services.
of having the ability to send a worker abroad such that the
latter were convinced to give her the money she
demanded in order to be so employed.

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Art. 16 other countries.

this provision sought to avoid commission of • EO 797 – aimed at streamlining operations
malpractice by fly-by-night or private recruiters in the overseas employment program;
against unsuspecting workers who intend to work OEDB & NSB were united in a single
locally or overseas. structure – the POEA.
• EO 247 – reorganization act of POEA,
authorized entities to recruit and place workers for strengthening of the worker's protection
local & overseas employment: and welfare and a tighter regulation of the
• public employment office private sector's recruitment activities
• private recruitment entities
• RA 8042 – “Migrant Workers and Overseas
• private employment agencies
Filipino Act of 1995”. institutes the policies
• shipping or manning agents or on overseas employment and establishes a
representatives higher standard o protection and promotion
• POEA of the welfare of migrant workers, their
• construction contractors if authorized to families, and of overseas Filipinos in
operate by DOLE and the Construction distress.
Industry Authority ◦ Requires certain guarantee of
• members of the diplomatic corps although protection for the overseas workers
hirings done by them have to be processed before they are deployed in countries
through POEA that meet some criteria
• other persons or entities as may be
authorized by the DOLE secretary POEA: Functions and Powers
• formulation, implementation, and
Art. 17 monitoring of the overseas employment of
(Overseas Employment Development Board) Filipino workers and the protection of their
rights to fair and equitable employment
the powers and functions of the OEDB were taken practices
over by the POEA • participates in the deployment of Filipino
workers through government-to-
composition of POEA government hiring
• the Governing Board • regulatory function:
◦ Sec. of DOLE - Chairman ◦ regulates the private sector
◦ Administrator participation in the recruitment and
◦ 3rd member (considered well-versed in overseas placement of workers through
the field of overseas employment, its licensing and registration system.
appointed by the Presodent for a term • adjudicatory function
of 2 years) original and exclusive jurisdiction to hear and
• Office of the Administrator decide the ffg. cases
• office of the Deputy Administrator ◦ recruitment violation and related cases
• Office of the Directors consisting of all preemployment cases
which are administrative in character,
legislative background of overseas involving or arising out of recruitment
employment: laws, rules and regulation, violations of
• Act. 2486 – provides for license issuance the conditions for issuance of license to
and license fee and welfare regulations. recruit workers
◦ Disciplinary action cases (warning,
• PD 442 – created the OEDB & NSB to
repatriation, suspension, or
implement a more systematic deployment
disqualification from the overseas
of and-based and sea-based workers to
employment program, or inclusion in

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the POEA blacklist) − The ffg. are originally functions of the

▪ grounds: POEA but were transferred to NLRC
• commission of a felony pursuant to RA 8042
punishable by Phil law or by ◦ employer-employee relations cases
laws of the host country consisting of all claims arising out of an
• drug addiction or possession or employer-employee relationship by
trafficking of prohibited drugs virtue of any law or contract involving
• desertion or abandonment Filipino workers in overseas
• drunkenness employment, such as but not limited to:
• gambling ▪ violation of the terms and
• initiating or joining a strike or conditions of employment
work stoppage where the laws ▪ disputes relating to the
of the host country prohibit the implementation and interpretation
same of employment contracts
• creating trouble at the worksite ▪ money claims of workers against
• embezzlement of company their employers and duly
funds authorized agents in the
• theft or robbery Philippines and vice versa
• prostitution ▪ claims for death, disability and
• vandalism or destroying of other benefits
company property ▪ violation of or non compliance with
• gunrunning or possession of any compromise agreement
deadly weapon entered into by and between the
• unjust refusal to depart for the parties in an overseas employment
worksite after all employment contract.
and travel documents have
been approved by the Migrant worker – anybody who is engaged, or to
appropriate government agency be engaged in a remunerated activity in a state of
• violation of the laws and sacred which he or she is not a legal resident; OFW
practices of the host country
and unjustified breach of To promote the efficient and economic delivery of
government-approved service, the POEA has the authority to set up
employment contract by a regional extension units. And their functions are:
worker. • execute policies, plans, programs in
regions outside Metro Manila
The POEA has no jurisdiction to hear and decide a • coordinate with loc gov officials in
claim for the enforcement of a foreign judgment. implementing overseas employment
The function with regard to jurisdiction over money • advise the central office of the needs of the
claims had been transferred to the NLRC pursuant region for particular welfare and regulatory
to RA 8042, Sec. 10. this law also expanded the programs
scope of such money claims involving Filipino • establish linkage with other allied gov't
workers for overseas employment. agencies in the pursuit of the objectives of
− RA 8042 allows claims for money or the overseas employment program
damages sustained during the period of • coordinate the anti-illegal recruitment
deployment or before departure for abroad. campaign in the regions
− RA 8042 also allows recovery of actual, • perform other functions as the POEA may
moral, exemplary and other forms of deem necessary

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Minimum employment conditions: employment is terminated when the contract expires.

• guaranteed wages for regular working Their employment is contractually fixed for a certain
hours and overtime pay (not lower than the period of time. They fall under the exception of Article 280
prescribed minimum wage [mw] in the host whose employment has been fixed for a specific project or
undertaking the completion or termination of which has
country, or mw standard set forth in been determined at the time of engagement of the
bilateral agreement, or mw in the Phil, employee or where the work or services to be performed
whichever is higher) is seasonal in nature and the employment is for the
• free transpo to and from worksite duration of the season.
• free emergency medical and dental
treatment and facilities On issue of Constitutionality of Sec. 10 of RA 8042
• free food or accomodation
Marsaman Manning Agency vs. NLRC
• just cause for termination (taking into
consideration the customs, traditions, G.R. No. 127195, August 25, 1999
norms, mores, practices, company policies, A plain reading of Sec. 10 clearly reveals that the choice
and the labor laws & soc. legislation of the of which amount to award an illegally dismissed overseas
contract worker, i.e., whether his salaries for the
host country)
unexpired portion of his employment contract or three (3)
• workmen's compensation benefits and war months' salary for every year of the unexpired term,
hazard protection whichever is less, comes into play only when the
• repatriation of worker's remains and employment contract concerned has a term of at least
properties in case of death to the point of one (1) year or more. This is evident from the words "for
every year of the unexpired term" which follows the words
"salaries . . . for three months." To follow petitioners'
• assistance on remittance of worker's thinking that private respondent is entitled to three (3)
salaries, allowances, allotment to his months salary only simply because it is the lesser amount
beneficiaries is to completely disregard and overlook some words used
There is freedom to stipulate other terms and in the statute while giving effect to some.
conditions provided the whole employment
package should be more beneficial to the worker
Serrano vs Gallant Maritime
than the minimum.
G.R. No. 167614March 24, 200
Upon cursory reading, the subject clause appears facially neutral,
In addition to the minimum requirements, the for it applies to all OFWs. However, a closer examination reveals
solidary liability of the employer and the that the subject clause has a discriminatory intent against, and an
recruitment agency for any and all claims shall be invidious impact on, OFWs x x x with employment contracts of
incorporated in the contract for overseas less than one year vis-à-vis OFWs with employment
employment and shall be a condition precedent for contracts of one year or more, or those among OFWs with
employment contracts or more than one year and OFWs
its approval. vis-à-vis local workers with fixed period employment," the
Court held.
The POEA is authorized to recruit and place xxx
workers primarily on government-to-government The subject clause “or for three months for every year
arrangements and thus service the hirings of of the unexpired term, whichever is less” in the 5th paragraph of
foreign government ministries and Section 10 of Republic Act No. 8042 is DECLARED

Millares & Lagda vs. NLRC Employer's nationality immaterial

G.R. No. 110524, July 29, 2002 Eastern Shipping Lines, Inc. vs. POEA
From the foregoing cases, it is clear that seafarers are G.R. No. 77828 February 8, 1989
considered contractual employees. They can not be The statute and the relevant regulations refer to
considered as regular employees under Article 280 of the employment of Filipino workers overseas, i.e., outside the
Labor Code. Their employment is governed by the Philippines. The statute and regulations do not limit their
contracts they sign everytime they are rehired and their coverage to non-Filipino employers. Filipinos working

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overseas share the same risks and burdens whether their affecting Filipino overseas.
employers be Filipino or foreign. • It also formulates an integrated program for
The underlying regulatory policy, as we see it, is that the promotion of the welfare of Filipinos
Filipino seamen working on ocean-going vessels should overseas for implementation by suitable
receive the same wages and benefits, without regard to
the nationality or nationalities of the vessels on which they
existing agencies.
serve. • Attached to the DFA
***superseded by BP 79
Art. 20
Basis of Compensation:
(National Seamen Board)
Dumez Co. vs. NLRC powers and duty:
G.R. No. 74495 July 11, 1996 • To provide free placement services for
It is proper for the POEA to have taken judicial notice of seamen;
foreign law applicable to a claim by a Filipino overseas • To regulate and supervise the activities of
contract worker. True, a foreign law, being a matter of agents or representatives of shipping
evidence, must be alleged and proved, in order to be companies in the hiring of seamen for
recognized and applied in a particular controversy
involving conflicts of laws, jurisprudence on this matter
overseas employment; and secure the best
was not meant to apply to cases before administrative or possible terms of employment for contract
quasi-judicial bodies in the light of the well-settled rule that seamen workers and secure compliance
administrative and quasi-judicial bodies are not bound therewith; and
strictly by technical rules • To maintain a complete registry of all
Filipino seamen.
Art. 18
(Ban on Direct Hiring ) − now the POEA
General rule; Direct hiring of Filipino workers by a − jurisdiction on money claims (Art. 20, (b))
foreign employer is not allowed. transferred to NLRC (RA 8042)
Except: by members of diplomatic corps and other
mentioned in Art. 13 and name hires An agreement that diminishes the employee's pay
and benefits in a POEA-approved contract is void,
name hiree – those individual workers who are unless such such subsequent agreement is
able to secure contract for overseas without the approved by POEA.
assitance or participation of an agency. Their hiring
nonetheless has to be processed through the Wallem Shipping Inc. vs. Ministry of Labor
G.R. No. L-50734-37 February 20, 1981
purpose of the law: to avoid diplomatic backlash. But even if there had been such a threat, respondents'
behavior should not be censured because it is but natural
To protect the good name of the country by
for them to employ some means of pressing their
carefully processing or worker;s papers, thus demands for petitioner, who refused to abide with the
eliminating the misfit, poorly trained and terms of the Special Agreement, to honor and respect the
incompetent workers same. They were only acting in the exercise of their
rights, and to deprive them of their freedom of expression
Art. 19 is contrary to law and public policy. There is no serious
misconduct to speak of in the case at bar which would
(Office of Emigrant Affairs) justify respondents' dismissal just because of their
• promote the well being of emigrants and firmness in their demand for the fulfillment by petitioner of
maintain their close link to the homeland its obligation it entered into without any coercion, specially
• abolished and its function was transferred on the part of private respondents.
to the Commission on Filipinos Overseas On the other hand, it is petitioner who is guilty of breach
(BP 79) of contract when they dismissed the respondents without
just cause and prior to the expiration of the employment
• CFO provides advice and assistance to the
contracts. As the records clearly show, petitioner
President and the Congress for the voluntarily entered into the Special Agreement with ITF
formulation of policies and measures

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Labor and Social Legislation AUF School of Law

and by virtue thereof the crew men were actually given workers.
their salary differentials in view of the new rates. It cannot − Formerly known as the Welfund
be said that it was because of respondents' fault that − has a role in repatriation of migrant workers
petitioner made a sudden turn-about and refused to honor
the special agreement.
Art. 22
(Mandatory Remittance of
Read: Vir-jen Shipping and Marine Services vs Foreign Exchange Earnings)
NLRC (115 SCRA 347 and 125 SCRA 577) purpose: to boost the Philippine foreign exchange
Art. 21 Mandatory remittance – amount or portion of the
(Foreign Service Role and Participation) basic salary of OFW required under existing laws
purpose: to inform the home country of the status and regulations to be remitted by the workers to
of workers employed in their respective areas of their beneficiaries in the Philippines and sold for
assignment. pesos to the Philippine banking system

4 gov't agencies tasked to promote the welfare and 50%-80% of the basic salary – prescribed
protect the rights of migrant workers. percentage of foreign exchange remittance (EO
• DFA 857)
◦ Legal Assistant for Migrant Workers
(LAMW) – tasked to provide and Art. 23. - repealed
coordinate all legal assistant services Art. 24. - repealed
to Filipinos in distress
▪ administers the Legal Assistance Chapter II
• OWWA Art. 25
(Private sector participation in the recruitment and
Migrant Workers and other Overseas Filipinos placement of workers)
Resource Center – in Philippine embassies where
there are more than 20,000 migrant workers The POEA was granted the “power of subordinate
− provides assistance to migrant workers legislation”
(health, welfare, conciliation of disputes
from employer-employee relationship) The regulations issued by the administrative
− managed by a Labor Attaché agencies have the force of law.

Re-placing & Monitoring Center – promotion Requirement of publication of the regulations

house for local employment of the returning issued by these administrative agencies is also
workers mandatory.
− expected to develop livelihood programs
for the returning workers and formulate a Requirements for securing a license:
computer-based information system on • certified true copy of Articles of
skilled Filipino migrant workers. Incorporation or of Partnership registered
with SEC or certificate of registration of the
OWWA firm or business name with the DTI
− intended to provide social and welfare • proof of financial capacity
services, including insurance coverage, • savings account certificate maintaining
legal assistance, placement assistance and balance not less than P500,000.00 with
remittance services to Filipino overseas authority to examine the same.

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• Proof of market capability. Art. 26

• NBI Clearance of all members of the BOD (Travel agencies prohibited to recruit)
• verified undertakings disqualified:
• individual ITRs of propritors, partners, • travel agencies and sales agencies of
stockholders, etc. airline companies
• proof of possession of AB/BS degree and 3 • officers or members of the board of any
years business experience corporation or members in a partnership
• list of all officials and personnels involved engaged in the business of a travel agency
in the recruitment and placement, together •
with their appointment • persons with derogatory records
• copy of contract of lease or proof of • any official or employee of DOLE, POEA,
building ownership (office address with at OWWA, DFA and other governent agencies
least 100sq.m office space) directly involved in the implementation of
• proof of publication of notice of the RA 8042
application • relatives of the preceding within the 4th civil
• certificate of attendance of owner in degree.
seminars conducted by the Administration
upon approval of the application, the applicant Art. 27
shall pay a license fee of P50,000.00. It shall (Citizenship requirement)
submit an Escrow Agreement in the amount of “Only Filipino citizens or corporations, partnerships
P1M and a surety bond of P100k or entities at least 75 percent of the authorized and
voting capital stock of which is owned and
provisional license controlled by Filipino citizens shall be permitted to
• valid for a limited period of 1 year participate in the recruitment and placement of
• to allow the applicant to comply with its workers, locally or overseas.”
undertaking to deploy 100 workers to its
new principal. Art. 28
An agency that fails to renew its license within 30 The required capitalization, accdg. to POEA Rules
calendar days from expiration thereof shall be of 2002 is a minimum of 2million pesos in case of a
deemed delisted and barred from engaging in single proprietorship or partnership and a minimum
recruitment and placement activities. paid-up capital of the same amount for a
Accreditation may be granted only when the
Purpose: to assure the public and the government
foreign signatory to the recruitment agreement with
that it is not a fly-by-night entity whose purpose of
the applicant agency is the direct employer of the
its being is to abuse and fool people.
workers to be recruited.
Art. 29
The accreditation of a principal may be transferred (Non-transferability of license or authority)
to another agency provided that the transfer does A license to operate a business enterprise is a
not involve any diminution of wage and benefits of privilege which could be reasonable regulated by
workers. the State by virtue of its inherent police power.
Full accreditation shall be valid for a maximum Limitations on the use of license:
period of 2 years from the date of the issuance,
• licensees or holders of authority or their
subject to renewal.
duly authorized representatives may, as a
rule, undertake recruitment and placement
Provisional accreditation may be granted for a activity only at their authorized official
period of 90 days

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addresses. • medical examination fees

• Personal in nature, thus it cannot be used
by any person other than one in whose The above-mentioned placement and
favor it was issued documentation costs are the only authorized
• intransferrable payments that may be collected from a hired
worker. No other charges in whatever form,
Art. 30 manner, or purpose, shall be imposed on and be
(Registration fees) paid by the worker without prior approval of the
“The Secretary of Labor and Employment shall POEA.
promulgate a schedule of fees for the registration
of all applicants for license or authority.” POEA has the power to order refund of illegally
collected fees
license – P50,000.00
Escrow Agreement – P1million Art. 33
surety bond – P100,000.00 Reports on employment status

Art. 31 the data obtained from these reports serves as

(Bond) guidelines in formulation of labor policies
POEA possesses the power to enforce liability
under cash or surety bonds. Art. 34
(Prohibited practices)
Bonds and escrow shall answer for all valid and these acts are not only grounds for suspension or
legal claims arising from violations of the cancellation of license, but they likewise constitute
conditions for the grant and use of the license, and/ illegal recruitment under RA 8042.
or accreditation and contracts of employment.
paragraph (a)
Should the bond/deposit in escrow or any part • 1st part:
thereof be garnished, the same should be ◦ prohibits the charging or accepting of
replenished within 15 calendar days from notice fees than that allowed by regulations.
from POEA ◦ “Fees shall be collected from a hired
Art. 32 worker only after he has obtained
(Fees to be paid by workers) employment through the facilities of the
chargeable fees: recruitment agency.”
to principals:
(Sec. 2, POEA Rules & Regulations)
• visa fee
• 2nd part:
• air fare ◦ deterrent to loan sharks who lend
money at usurious interests.
• POEA processing fee
• OWWA membership fee
Paragraph (b)
• includes the act of furnishing fake
to workers:
employment documents to a worker
(Sec. 3, POEA Rules & Regulations)
• includes the act of publishing false notice
• passport
or information in relation to recruitment or
• NBI/Police/Barangay Clearance
• Authentication
• Birth Certificate paragraph (d)
• Medicare • mere attempt to induce the worker to quit
• Trade test (if necessary) his employment for the purpose of offering
• inoculation him to another is sufficient to constitute the

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Labor and Social Legislation AUF School of Law

offense. agreement's termination was given to the

employee. (in pursuant to Art. 1921, Labor Code)
Paragraph (e)
• non-licensees cannot lawfully engage in Required Undertakings by Agent: (POEA Rules.
recruitment & placement of workers Part II, Rule II, Sec. f)
• they are likewise prohibited from • shall select only medically and technically
attempting to influence another not to qualified recruits
employ a worker. • assume full & complete responsibility for all
claims and liabilities which may arise in
Paragraph (i) connection with the use of license
• purpose: to protect both parties • assume joint and solidary liability with the
• the law empowers the POEA to approve employer for all claims and liabilities which
and verify a contract under this par. to may arise in connection with the
insure that the employee shall not thereby implementation of the contract; including
be placed in a disadvantageous position but not limited to payment of wages, health
and that the contract contains the minimum and disability compensation, and
standard of such employment contract set repatriation
by the POEA. • guarantee compliance with the existing
labor and social legislation of the Phil. and
The prohibitions under this article are designed to of the country of employment of recruited
regulate of not totally eliminate malpractice worker
regarding recruitment and placement. • assume full and complete responsibility for
all acts of its officials, employees, and
Art. 35 representatives done in connection with
(Suspension and/or cancellation recruitment and placement
of license or authority) • negotiate for the best terms and conditions
recruitment violations that may cause the of employment
imposition of administrative sanctions(including • disclose the full terms and conditions of
suspension and cancellation of licenses) employment to the applicant worker
• engaging in acts of misrepresentations for • deploy at least 100 workers to its new
the purpose of securing a license or markets within 1 year from the issuance of
renewal thereof. the license
• Engaging in the recruitment or placement • provide orientation on recruitment
of workers in jobs harmful to public health procedures, terms and conditions, and
or morality or dignity of the RP other relevant information to its workers
• charging of any fee before employment is and provide facilities therefor
obtained for an applicant worker • repatriate the deployed workers and his
• charging of any fee in amount exceeding personal belongings when the need arise
the allowable rate
• obstructing inspections by DOLE A foreign corporation which, through unlicensed
agents, recruits workers in the country may be
a recruitment agency is solidarily liable for the sued in and found liable by Philippine courts.
unpaid salaries of a worker it recruited for
employment with a foreign principal. RA 8042 envisions a phase out of POEA's
regulatory functions so that the migration of the
Even if the recruitment agency and the principal workers will become strictly a matter between the
had already severed their agency agreement at the worker and his employer.
time the worker was injured, the recruitment
agency may still be sued for violation of the
employment contract, if no notice of the agency

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Labor and Social Legislation AUF School of Law

Chapter III securing a license or authority under the

Art. 36 (d) To induce or attempt to induce a worker
(Regulatory power) already employed to quit his employment in
“The Secretary of Labor and Employment shall order to offer him another unless the transfer
have the power to restrict and regulate the is designed to liberate a worker from
recruitment and placement activities of all oppressive terms and conditions of
agencies within the coverage of this Title and is employment;
hereby authorized to issue orders and promulgate (e) To influence or attempt to influence any
rules and regulations to carry out the objectives person or entity not to employ any worker
and implement the provisions of this Title.” who has not applied for employment through
his agency;
Art. 37 (f) To engage in the recruitment or
(Visitorial Power) placement of workers in jobs harmful to
“The Secretary of Labor and Employment or his public health or morality or to the dignity of
duly authorized representatives may at any time the Republic of the Philippines as may be
inspect the premises, books of accounts and prohibited by law or duly constituted
records of any person or entity covered by this authority;
Title, require it to submit reports regularly on (g) To obstruct or attempt to obstruct
prescribed forms, and act on violations of any inspection by the Secretary of Labor and
provision of this Title.” Employment or by his/her duly authorized
Art. 38 (h) To fail to submit reports on the status of
(Illegal Recruitment) employment, placement vacancies,
RA 8042 made clear than even licensees or remittance of foreign exchange earnings,
holders of authority may be held guilty of illegal separation from jobs, departures and such
recruitment. other matters or information as may be
required by the Secretary of Labor and
Illegal recruitment - any act of canvassing, Employment under penalty of law;
enlisting, contracting, transporting, utilizing, hiring, (i) To substitute or alter to the prejudice of
or procuring workers and includes referring, the worker, employment contracts approved
contract services, promising or advertising for and verified by the DOLE from the time of
employment abroad, whether for profit or not, when actual signing thereof by the parties up to
undertaken by a non-licensee or non-holder of and including the period of the expiration of
authority contemplated under Article 13(f) of the the same without the approval of the DOLE;
Labor Code of the Philippines. (j) For an officer or agent of a recruitment or
It shall likewise include the ffg acts: placement agency to became officer or
(a) To charge or accept directly or indirectly member of the Board of any corporation
any amount Greater than the specified in the engaged in travel agency or to be engaged
schedule of allowable fees prescribed by the directly or indirectly in the management of a
Secretary of Labor and Employment, or to travel agency;
make a worker pay the recruiter or its agents (k) To withhold or deny travel documents
any amount greater than that actually loaned from applicant workers before departure for
or advanced to him; monetary or financial considerations other
(b) To furnish or publish any false notice or than those authorized under the Labor Code
information or document in relation to and its implementing rules and regulations;
recruitment or employment; (l) To fail to actually deploy without valid
(c) To give any false notice, testimony, reason as determined by the DOLE; and
information or document pr commit any act (m) To fail to reimburse expenses incurred
of misrepresentation for the purpose of by the worker in connection with his/her

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Labor and Social Legislation AUF School of Law

documentation and processing for purposes 20 years – for illegal recruitment cases involving
of deployment, in cases where the economic sabotage
deployment does not actually take place
without the workers fault. Title II
Employment Of Non-Resident Aliens
4 types of illegal recruitment Art. 40 – Art. 42
• simple Only non-resident aliens are required to secure
• non-licensee employment permit.
• syndicated - carried out by a group of 3 or
more conspiring with one another. Resident aliens & immigrants are required an Alien
• large scale - committed against 3 or more Employment Registration Certificate (AERC)
persons individually or as a group.
prohibitions on hiring foreigners:
If committed by a syndicate or in large scale shall • Anti Dummy Law
be considered an offense involving economic ◦ prohibits employment of aliens in
sabotage. entities that own or control a right,
franchise, privilege, property or
The POEA or the Sec. of Labor do not have the business whose exercise or enjoyment
power to issue a warrant of search and seizure. is reserved by law only to Filipinos or to
However, the power of the Secretary or his duly a corporation whose capital should be
authorized representatives to order the closure of at least 60% Filipino-owned
illegal recruitment establishments still subsists, the • Art. XVI, Sec. 11, Constitution
same being considered essentially administrative ◦ mass media enterprise can be owned
and regulatory in nature. or managed only by Filipinos or by a
corporation or associations wholly
Procedure to order the closure of an illegal owned or managed by them.
recruitment establishment (see VIII, Anti-Illegal • Omnibus Investment Code
Recruitment Programs, RA 8042) ◦ enterprises registered under this law
may employ foreign nationals in
Art. 39 technical, supervisory, or advisory
(Penalties) positions.
(see Section 7, RA 8042)
Department Order No. 12, Series of 2001
venue: RTC of the province where the crime was • Omnibus Guidelines for the Issuance of
committed, or where the offended party actually Employment Permits to Foreign Nationals
resides, ti the exclusion of other courts • prvides a
◦ list if individuals required to apply for
period for resolution:
Alien Employment Permit (AEP)
• 30 days from filing – termination of
◦ list of individuals exempt from the AEP
preliminary investigation
◦ list of bases of the issuance of AEP
filing of information
• 24 hours from termination of investigation –
permits shall be valid for a period of 1 year
if investigation was conducted by a
application for renewal shall be filed 15 days prior
• 48 hours from termination of investigation – to the expiration of the permit.
if investigation was conducted by a judge

5 years – prescriptive period of illegal recruitment


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BOOK TWO development on meeting the changing

HUMAN RESOURCES DEVELOPMENT demands for quality middle-level
Title I • Encourage critical and creative thinking by
National Manpower Development Program disseminating the scientific and technical
knowledge base of middle-level manpower
Chapter 1 development programs;
MACHINERY FOR THEIR IMPLEMENTATION complementary roles of public and private
institutions in technical education and skills
(Arts. 43-56 have been superseded development and training systems; and
by RA 7796 or the TESDA Law) • Inculcate desirable values through the
development of moral character with
TESDA took over the functions of: emphasis on work ethic, self-discipline,
• National Manpower and Youth Council self-reliance and nationalism.
• Bureau of Technical Skills and Vocational Powers and functions of the board
Education The Authority shall primarily be responsible
• regional offices of DECS in the field of for formulating, continuing, coordinated and fully
vocational education integrated technical education and skills
• apprenticeship program of the BLE of development policies, plans and programs taking
DOLE into consideration the following:
• The State policy declared herein of giving
composition: new direction and thrusts to efforts in
• TESDA board developing the quality of Filipino human
◦ The Secretary of DOLE – Chairperson resource through technical education and
◦ Secretary of DepEd – Co-Chairperson skills development;
◦ Secretary of DTI – Co-Chairperson • The implementation of the above-
◦ Secretary of DA – Member mentioned policy requires the coordination
◦ Secretary of DILG – Member and operation of policies, plans, and
◦ Director-General of the TESDA programs of different concerned sectors of
Secretariat – Member Philippine society;
• TESDA secretariat • Equal participation of representatives of
◦ headed by the Director General industry groups, trade associations,
employers, workers and government shall
Salient Features Of The TESDA Act be made the rule in order to ensure that
policy: urgent needs and recommendations are
to provide relevant, accessible, high quality, and readily addressed; and
efficient technical education and skills development • Improved linkages between industry, labor
in support of the development of high quality and government shall be given priority in
Filipino middle-level manpower responsive to and the formulation of any national-level plan.
in accordance with Philippine goals and priorities.
The Board, shall have the following powers:
Goals: • promulgate, after due consultation with
• Promote and strengthen the quality of industry groups, trade associations,
technical education and skills development employers, workers, policies, plans,
programs to attain international programs and guidelines as may be
competitiveness; necessary for the effective implementation
• Focus technical education and skills of this Act;

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Labor and Social Legislation AUF School of Law

• organize and constitute various standing • perform such other duties and functions
committees, subsidiary groups, or technical necessary to carry out the provisions of this
working groups for efficient integration, Act consistent with the purposes of the
coordination and monitoring technical creation of TESDA.
education and skills development programs
at the national, regional, and local levels; The Authority is mandated to establish Technical
• enter into, make, execute, perform and Skills Development Committees at the regional and
carry-out domestic and foreign contracts local levels to coordinate and monitor the delivery
subject to existing laws, rules and of skills development activities.
• restructure the entire sub-sector consisting Middle-level manpower – who have acquired
of all institutions and programs involved in practical skills and knowledge through formal or
the promotion and development of middle- non-formal education and training equivalent to at
level manpower through upgrading, merger least a secondary education but preferably at post-
and/or phase-out following a user-led secondary education with a corresponding degree
strategy; of diploma or skilled workers who have become
• approve trade skills standards and trade highly competent in their trade or craft as attested
tests as established and conducted by by industry
private industries;
• establish and administer a system of training – systematic development of the
accreditation of both public and private attitude/knowledge/skill behavior pattern required
institutions; for the adequate performance of a given task
• establish, develop and support institutions'
trainors' training and/or programs; Incentive Scheme
• lend support and encourage increasing • developed by the TESDA to encourage
utilization of the dual training system as industries and institutions to provide high-
provided for by Republic Act. No. 7686; quality technical education and skills
development opportunities.
• exact reasonable fees and charges for
such tests and trainings conducted and • In the form of an additional deduction from
retain such earnings for its own use, the taxable income which is equivalent to a
subject to guidelines promulgated by the certain percentage of the value of labor
Authority; training expenses incurred for development
• allocate resources, based on the
Secretariat's recommendations for the • conditions:
programs and subjects it shall undertake ◦ the apprenticeship program is
pursuant to approved National Technical recognized by the DOLE
Education and Skills Development Plan; ◦ apprentices should be paid the
• determine and approve systematic funding minimum wage; and
schemes such as the Levy and Grant ◦ the deduction shall not exceed 10% of
scheme for technical education and skills the total direct labor wage expended by
development purposes; the employer during the taxable year
• create, when deemed necessary, an
Advisory Committee which shall provide Title II
expert and technical advice to the Board to Training and Employment of Special Workers
be chosen from the academe and the Chapter 1
private sector: Provided, That in case the APPRENTICESHIP
Advisory Committee is created, the Board Art. 57-Art. 60
is hereby authorized to set aside a portion apprentice – worker who is covered by an
of its appropriation for its operation; and apprenticeship agreement with an individual
employer or any of the entities recognized under

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Labor and Social Legislation AUF School of Law

the law. years old

◦ Sec. 11, Rule Vi, Book II of the Rules
Apprenticeship Implementing the Labor Code provides
• arrangement and the period when an for 15 years old as apprenticeable age
upcoming worker undergoes hands-on ◦ 15 years old0age requirement is also in
training, more or less formal, to learn the accordance with Sec. 12 of RA 7610 as
ropes of a skilled job. amended by RA 9231
• be physically fit for the occupation in which
Previous laws on apprenticeship: he desires to be trained
• Minimum Wage Law (RA 602) • possess vocational aptitude and capacity
• National Apprenticeship Act of 1957 (RA for the particular occupation as established
1826 as amended by RA 2628) through appropriate tests
• possess the ability to comprehend and
Apprenticeship is significant as it fills the demand follow oral and written instructions
of employers for workers in certain trades or
occupations which require special skills. apprenticeable occupation – any trade, form of
employment or occupation which requires for
General rule: The organization of apprenticeship proficiency more than 3 months of practical training
programs is primarily a voluntary undertaking pf on the job with compulsory related theoretical
employers. instructions.
Exception: (compulsory apprenticeship)
• when the national security or particular Highly-technical industry – a trade, business,
requirements of economic development so enterprise, industry or other activity which utilizes
demand the application of advanced technology.
• where services of foreign technicians are Apprenticeship contract
utilized by private companies in • an agreement whereby an employer
apprenticeable trades, said companies are undertakes to train the apprentice and the
required to set up apprenticeship programs apprentice in turn accepts the terms of the
• The period of the apprenticeship contract
OJT – practical work experience through actual shall not exceed 6 months.
participation in productive activities given to or • A copy should be submitted to TESDA
acquired by the apprentice. within 5 working days from execution
• no person shall institute any action for the
OJT may be undertaken in: enforcement of the apprenticeship
• the plan, shop, or premises of the employer agreement or for damages for breach
or firm concerned if the apprenticeship thereof unless he has exhausted all the
program is organized by an individual administrative remedies.
employer or firm. • Valid causes for the termination of the
• In the premises of one or several firms apprenticeship agreement:
designated for the purposes by the ◦ by the employer:
organizer of the program if such organizer ▪ habitual absenteeism in the OJT
is an association of employers, civic group with compulsory theoretical
or the like instructions
• in the DOLE Training Center ▪ willful disobedience of company
rules or insubordination
Qualifications of an apprentice:
▪ poor physical condition or
• at least 15 years old prolonged illness which
◦ Art. 59 of the Labor Code provides 14 incapacitates the apprentice for

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Labor and Social Legislation AUF School of Law

work student is given real opportunities, including such

▪ theft or malicious destruction of facilities as may be reasonable and necessary to
company property and/or finish their chosen courses under such agreement.
▪ poor efficiency of performance Chapter 2
▪ engaging in violence or other forms LEARNERS
of gross misconduct inside the Art. 73-77
employer's premises
◦ by the employee learner – person hired as a trainee in semi-skilled
▪ substandard or deleterious working and other industrial occupations which are non-
conditions within the employer's apprenticeable
learnership & apprenticeship are similar because
▪ repeated violation by the employer
they both mean training periods for jobs requiring
of the terms of the contract
skills that can be acquired through actual work
▪ cruel of inhuman treatment by the
employer or his subordinates
▪ personal problems which in the
opinion of the apprentice shall Learnership Apprenticeship
prevent him from a satisfactory trains in a skilled job or Trains in a highly skilled
performance of his job in industrial occupations job or in a job found
▪ bad health or continuing illness that require training for only in a highly
The wage rate of the apprentice shall start at 75% less than 3 months technical industry
of the statutory minimum wage for the forst 6
Training need not be Theoretical instruction is
months; thereafter, he shall be paid with the full
supplemented by a a condition sine qua
minimum wage including the full COLA.
theoretical instruction non
An apprenticehip program need prior approval by Training period is Training period is longer
the DOLE. If employed without a pre-approved shorter because the job is not
apprenticeship program, the “apprentice” is not an easily learned
apprentice but a regular employee. (Nitto Ent. Vs Employer is committed Employer is NOT
NLRC, GR 114337) to hire the learner- committed to hire the
trainee as an employee learner-trainee as an
procedure in case of violation of apprenticeship after the training period employee after the
contract: training period
• investigation
• appeal to the Secretary of Labor Learnership agreement Employment of
do not need prior apprentice is legally
“doctrine of exhaustion of administrative approval by DOLE but allowed in highly
remedies” - requires that were an administrative are subject to DOLE's technical industries and
remedy is provided by law, relief must first be inspection. only in apprenticeable
sough by exhausting remedies before the court will occupations approved
act by DOLE
Learners employed in If training is prerequisite
There is no employer-employee relationship piece or incentive rate to graduation or a
between students on one hand, and academic jobs during the training requirement in taking
institutions on the other hand, where there is a period is paid in full for board exam, the hiring
written agreement between them under which the the work done of apprentices without
former agrees to work for the latter in exchange for compensation is
the privilege to study free of charge, provided the authorized

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Labor and Social Legislation AUF School of Law

The Secretary of Labor may cancel any learnership CONDITIONS OF EMPLOYMENT
program if upon inquiry, it is found that the
justification for the program no longer exists Title I
Working Conditions and Rest Periods
penalty for violation:
fine: P1, 000.00 – P10, 000.00 Chapter 1
range of imprisonment:3 months – 3 years HOURS OF WORK

Chapter 3 (Art. 82)

HANDICAPPED WORKERS Conditions of Employment
right of control test
handicapped worker – one whose earning • where the person for whom the services
capacity is impaired by age or physical or mental are performed reserves the right to control
deficiency or injury. not only the end to be achieved but also
the means to be used in reaching such
Disabled worker – one whose earning capacity is end.
impaired by mental, physical or sensory deficiency Four-fold test:
or injury. • selection and engagement of the employee
• payment of wages
RA 7277 • power of dismissal
• Magna Carta for Disabled Persons • control test
• insures equal opportunities for disabled not covered by Book 3, of Labor Code:
persons and prohibits discrimination • Government employees
against them. ◦ refers to those employed by the
• Fundamentally it provides that no disabled National Government or any of its
person shall be denied access to political subdivisions including those
opportunities for suitable employment. A employed in government-owned or
qualified disabled employee shall be controlled corporations
subject to the same terms and conditions
◦ the are governed by the Civil Service
of employment and the same
compensation, privileges, benefits,
◦ government owned or controlled
incentives or allowance as a qualified able-
bodied person.
▪ with original charter – governed by
Private entities that employ disabled persons who civil service law
meet the required skill or qualifications either as ▪ without original charter – governed
regular employee, apprentice, or learner, shall be by the Labor Code
entitled to an additional deduction from their gross
Income, equivalent to 25% of the total amount paid • Managerial employees
as salaries and wages to disabled persons. ◦ they refer to those who meet the ffg
Handicapped workers are eligible for employment ▪ their primary duty consists of the
as apprentices or learners if their handicap is such management of the establishment
that it does not impede the performance of ob in which they are employed or of a
operations in the particular trade or occupation department or subdivision thereof
which is the subject of the apprenticeship of ▪ they customarily and regularly
learnership agreement. direct the work of two or more
employees therein
▪ they have the authority to fire or

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Labor and Social Legislation AUF School of Law

hire other employees of lower rank employer's household

◦ they are employed b virtue of their
special training or expertise, • workers paid by result
experience or knowledge and for ◦ payment of this type of worker is
positions which require the exercise of determined by the results of the work
independent judgment and discretion. performed or the number of units
• officers and member of the managerial staff ▪ piece work
◦ they are exempted if they perform the ▪ task work
ffg duties and reponsibilities
▪ duties that consists in the (Art. 83)
performance of work directly Normal Hours of Work
related to management policies of day – workday of 24 hours beginning at the same
their employers time each calendar day
▪ they customarily exercise discretion
and independent judgment week – workweek of 168 consecutive hours; 7
▪ they regularly and directly assist a consecutive 24 hours; beginning at the same hour
proprietor or managerial employee and the same calendar day each calendar week.
▪ they do not devote more than 20%
of their hours in a workweek to The 8-hour work requirement does not preclude
activities which are not directly or the employer to produce the working hours,
closely related to the above- provided that there is no concomitant reduction in
mentioned pay.
◦ their powers are not subject to Purposes:
evaluation, review and final action by • protect the health of the workers
the department heads and other higher • assure adequate leisure to workers in order
executives of the company to enable them to lead richer and more
fruitful lives
• field personnel • spread employment
◦ refers to non-agricultural employees
who regularly perform their duties away shifts:
from the principal place of business or 1st shift – 8am to 4pm
branch office of the employer 2nd shift – 4pm to 12mn
3rd shift – 12mn to 8am
• members of the family of the employer who
are dependent on him for support effects of shorter working hours:
◦ includes husband and wife, parents • increase in work output
and children, other descendants and • improved health of workers
ascendants, brothers and sisters • decrease in the amount of voluntary
• domestic helpers and/or persons in the • reduce of rate and severity of industrial
personal service of another accidents
◦ those who performs services in he • increase mechanization and improved
employer's home which are usually methods
necessary or desirable for the • greater pressure for employees to be more
maintenance and enjoyment thereof productive and efficient
◦ minister to the personal comfort, • promotion of good citizenship
convenience, or safety of the employer • alleviating unemployment
as well as the members of his

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Labor and Social Legislation AUF School of Law

(Art. 84) provided with adequate breaks in the

compensable hours worked morning and afternoon
• all time during which an employee is
required to be on duty or to be at the (Art. 86)
employer's premises or to be at a Night Shift Differential
prescribed place
• all time during which an employee is Rationale of night shift differential:
suffered or permitted to work • night work cannot be regarded as
desirable, either from the point of view of
principles in determining hours worked: the employer or the wage earner.

(Art. 85) Burden of proof of payment for nigh shift

Meal periods differential rests on the employer.
General rule: Employees are entitled to at least 1
hour time-off regular meals which can be taken Night shift differential cannot be waived. It is
inside or outside company premises founded on public policy, hence cannot be waived
exception: (at least 20 minutes meal period)
• where the work is non-manual in nature (Art. 87)
• where an establishment regularly operates Overtime Work
not less than 16 hours a day
• in case of actual or impending overtime compensation
emergencies or there is urgent work to be • additional pay for service or work rendered
performed on machineries, installations, or or performed n excess of 8 hours a day by
equipments to avoid serious loss which the the employees in employment covered by
employer would otherwise suffer the 8-hour labor law.
• where the work is necessary to prevent • Computed my multiplying the overtime
serious loss of perishable goods hourly rate by the number of hours worked
in excess of eight hours.
coffee breaks (5 to 20mins.)are considered as • Amount equivalent to his regular wage plus
compensable working time. at least 25% thereof
• Rationale: to encourage employers to
Where the lunch period is spent predominantly for dispense with such works thus providing
the employer's benefit, and cannot be utilized in the employees an opportunity to satisfy
the employee's own intersts, such time constitutes their mental, moral, and spiritual needs.
work time. (31 Am. Jur. 881) • Entitlement to overtime pay must first be
established by sufficient proof that said
shortened meal period is not compensable. overtime work was actually /performed
before an employee may avail of said
conditions on arrangements on shorten meal time benefit.
at employee's request: • For seamen, the criterion in determining
• the employees voluntarily agree in writing Won they are entitled to overtime pay is
to a shortened meal period of 30 mins and that whether they actually rendered service
are willing to waive overtime pay for such in excess of said number of hours
shortened meal period • right to claim overtime compensation
• there will be no diminution whatsoever in cannot be waived because it is in the
the salary and other fringe benefits of the category of benefits and it is governed by
employees law not by agreement of the parties.
• the work of the employees does not involve • Principles of estoppel and laches are not
strenuous physical exertion and they re applicable

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Labor and Social Legislation AUF School of Law

• when the tour of duty of the employee is at the work started before the 8th hour is
night time, the receipt of overtime pay will necessary to prevent serious obstruction or
not preclude the right to night differential prejudice to the business or operations of
pay. The latter is payment for work done the employer.
while the other is payment for the excess of
the regular 8-hour work. If the worker willfully refuses to perform overtime
work in any of the instances specified by law, he
Chinese overtime – a system of overtime may be legally dismissed on the ground of
payment in which salaried employee's regular rate insubordination.
is calculated by dividing his salary by the total
number of hours he work. Thus, the greater the (Art. 90)
number of hours, the lower the rate of pay per hour Computation of Additional Compensation
unduly reducing the take home pay of the Regular wage
employee. “All payments which the parties have agreed shall
be received during the work week, including
Day – 24-hour period which commences from the piecework wages, differential payments for
time the employee starts to work. working at undesirable times, and the cost of
board and lodging customarily furnished the
(Art. 88) employee.” (NAWAS ruling)
Undertime not Offset by Overtime • said ruling was superseded in subsequent
decisions of the SC
purpose: allowing this would result to unfairness. “in the computation of overtime
• Employer: will be exempt from paying pay, the premium pay for work
additional pay for overtime work done on Sundays, holidays and at
• Employee: would be allowed to schedule night inclusing fringe benefits,
his working hours at will thereby destroying which are ocassionally and not
the regular working schedule. regularly received and not by all
employees SHOULD NOT be added
(Art. 89) to the basi pay. Such inclusion into
Emergency Overtime Work the regular or basic pay militates
compulsory overtime work: agaisnt the basic rationale of
• When the country is at war or when any overtime pay, which simply is the
other national or local emergency has been extra compensation for the
declared by Congress or the Chief additional work done beyond that
Executive; contemplated in the employment
• When it is necessary to prevent loss of life contract.
or property or in case of imminent danger • Regular wage DO Not include COLA,
to public safety due to an actual or longevity pay of other fringe benefits which
impending emergency in the locality item constitutes extra pay or additions to
caused by serious accidents, fire, flood, the regular or basic pay
typhoon, earthquake, epidemic or other
disaster or calamity; “regularity and continuity test” of the benefits
• When there is urgent work to be performed enjoyed by the employees – condition precedent
on machines, installation or equipment, in before such additional payments or benefits are
order to avoid serious loss or damage to taken into account. (NAWASA ruling, already
the employer or some other cause of superseded)
similar nature;
• When the work is necessary to prevent regular base pay – excludes money received by
loss or damage to perishable goods; an employee in different concepts, such as
Christmas bonus and other fringe benefits.
• Where the completion or continuation of

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Chapter 2 compensation for work performed on Sunday only

WEEKLY REST PERIODS when it is his established rest day.

(Art. 91) If the employee has no regular workday or regular

Right to Weekly Rest Period rest day, he shall be paid the additional
compensation of at least 30% of his regular wage
>not less that 24 consecutive hours after every six for work performed on Sundays and holidays.
consecutive normal days.
Special holiday + rest day = additional
The rest period is needed especially by a worker to compensation of at least 50% of his regular wage.
rejuvenate and revitalize his lost energy in order to
raise the rate of his output. Premium pay
• additional compensation granted to a
General rule: Employer shall determine and covered employee for services rendered on
schedule the weekly rest day of his employees. holidays or rest day.
Exception: the preference of the employee shall • refers to the additional compensation
be respected if the same is based on religious required by law for work performed within
grounds. Provided that he make known such eight (8) hours on non-working days, such
preference in writing at least 7days before the as rest days and special days. (No. III,
desired effectivity of the initial rest day so DOLE Handbook on Workers Statutory
preferred. Monetary Benefits).

(Art. 92)
When Employer may Require Work on a Rest Day Premium pay is not included in the computation of
13th month pay.
General rule: No employee shall be required
against his will to work on his scheduled rest day. Waiver of compensation for work on rest days and
Exceptions: holidays is not valid.
• in cases of actual or impending
emergencies Chapter 3
• in case of urgent work to be performed HOLIDAY: SERVICE INCENTIVE LEAVES AND
• in the event of abnormal pressure of work SERVICE CHARGES
due to special circumstances
• to prevent loss or damage to perishable (Art. 94)
goods Right to Holiday Pay
• nature of the work requires continuous
operations holiday – consecrated day, a religious festival, a
• other analogous circumstances day of exemption, that is cessation from work, a
day of festivity, recreation or amusement
when an employee volunteers to work on his rest
day, he shall express such desire in writing, subject legal holiday – day designated or set part by the
to the provision regarding additional compensation. legislature, for a purpose within the meaning of the
term holiday, in order to commemorate an
(Art. 93) important event.
Compensation for Rest day,
Sunday or Holiday Work Holiday pay
• premium given to employees pursuant to
additional compensation of at least 30% of his law even if he is not suffered to work on a
regular wage regular holiday.
An employee shall be entitled to additional • If worker did not work on regular holiday,

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he is entitled to 100% of his basic pay; of holiday pay benefits pursuant to the rule which
• If he worked, he is entitled to 200% thereof. excluded employees uniformly paid by the month
from the same, was in compliance with such
Regular Holidays presumably valid rule until it was declared null and
• New year’s Day-January 1 void.
• Maundy Thursday-Movable date
• Good Friday-Movable date Divisor which indicates that the 11 legal holidays
• Eidul Fitr-Movable date have already been included in the salary of
monthly paid employees
• Araw ng Kagitingan- April 9
6-day working schedule
(Bataaan and Corregidor Day)
• 314 divisor
• Labor Day- May 1
5-day working schedule
• Independence Day- June 12
• 261 divisor
• National Heroes Day-Last Sunday of
effects of absences on holiday pay
• Bonifacio Day- November 30
Conditions on day entitlement to
• Christmas Day-December 25
preceding the holiday holiday pay
• Rizal Day-December 30
On LOA with pay Yes
Nationwide Special Holidays On LOA without pay No
• Ninoy Aquino Day-August 21
• All Saints Day-November 1 Non-working day or rest Yes (provided he
• Last Day of the Year-December 31 day of the employee work on the day
preceding the non-
Regular Holiday Special Day working or rest day)
Covered employee who Covered employee who 2 successive regular holiday
does not report for work does not report for work
during regular holidays during special day is not if the employee absents Not entitled to holiday
is paid 100% of his entitled to any himself from work without pay for both holidays
regular wage compensation under the pay on the day
principle of “no work, no immediately preceding the
pay” 1st regular holiday
An employee who An employee who If he works on the 1st Yes, entitled to pay
reports for work on a reports for work on a holiday on the 2nd holiday
regular holiday is special day is entitled to
entitled to 200% of his an additional 30% of his Holiday pay of certain employees
regular wage basic pay. private school teachers – may not be paid for the
regular holidays during semestral vacations
Additional 50% if such
special day falls on his faculty member paid per lecture hour – not entitled
rest day. to holiday pay

Monthly paid employees are not excluded from the employees paid by result – their holiday pay shall
benefits of holiday pay. Provisions of Section 2, not be less than his average daily earnings for the
Rule IV, Book III of IRR and Policy Instruction No 9 last 7 working days preceding the regular holiday.
have been declared null and void in the case of Seasonal workers – may not be paid the required
IBAAEU vs Inciong et al (1984) holiday pay during off-season when they are not at
under the operative fact doctrine, the nonpayment

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workers with no regular working days – shall be • employees in establishments regularly

entitled to benefits. employing less than 10 employees.

Where a regular holiday falls on a Sunday, the Under RA 9262, victims of “violence against
following day shall be considered a special holiday women and children are entitled to take a paid
for purposes of the Labor Code, unless said day is leave of absence up to 10 days in addition to other
also a regular holiday. (Sec. 9, Rule IV, Book III, paid leaves under the Labor Code.
IRR Labor Code)
(Art. 96)
rule on 2 regular holidays falling on the same Service Charge
• If employee did not work: 200% of basic Service charges are distributed in accordance
pay; with the following percentage of sharing:
• If employee worked: 300% of basic pay. • eighty-five percent (85%) for the
employees to be distributed equally among
(Art. 95) them; and
Right to Service Incentive Leave • fifteen percent (15%) for the management
to answer for losses and breakages and
purpose of the law: distribution to managerial employees.
afford a laborer a chance to get a much needed
rest to replenish his worn out energies and acquire The shares shall be distributed to employees not
a new vitality to enable him to efficiently perform less often than once every 2 weeks or twice a
his duties, and not merely to give him additional month at intervals not exceeding 16 days.
salary or bounty.
If the employee unused the 5-days service leave WAGES
incentive, this benefit is convertible to cash
equivalent based on the salary rate at the date of Chapter 1

"one year of service" Wages Salaries

• service within twelve (12) months, whether
continuous or broken Compensation for Denotes of a larger and
• reckoned from the date the employee manual labor, skilled or more important service
started working, including authorized unskilled, paid at stated
absences and paid regular holidays, unless times and measured by
the number of working days in the the day, week, month or
establishment as a matter of practice or season
policy, or that provided in the employment Cannot be subject to Can be subject to
contract, is less than twelve (12) months, in garnishment or garnishment or
which case, said period shall be attachment attachment
considered as one (1) year for the purpose (Art. 1708, NCC)
of determining entitlement to the service
incentive leave. (Sec. 2 and 3, Rule V,
Book III, IRR of Labor Code)
Twin attributes of wage
exempted employees: • cash wage
• those enumerated in Art. 82, Labor Code ◦ ready money paid by the employer for
• those enjoying vacation leave with pay of services rendered by the employee
at least 5 days

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• facilities (Art. 98)

◦ articles or services customarily given Application of Title
for the benefit of the employee and are Title II, Book III of LC does not apply to ffg:
voluntarily accepted by him • farm tenancy or leasehold
◦ chargeable only to employees if: • domestic helpers
▪ there are proofs to show that such • persons in the personal service of another
facilities are customarily furnished • homeworkers engaged in needlework
by the trade
▪ the provision of deductible facilities Chapter II
is voluntarily accepted in writing by MINIMUM WAGE RATES
the employee
▪ facilities are charged at fair and The minimum wage rates for agricultural and non-
reasonable value agricultural workers and employees in every region
shall be those prescribed by the Regional Tripartite
supplements Wages and Productivity Boards (RTWPB) which
• extra remunerations or benefits given to an shall in no case be lower than the statutory
employee. minimum wage rates.
• Their value cannot be deducted from the
cash wage of an employee Standards:
• demand for living wage
Purpose of the grant is the controlling test to know • wage adjustment vis-a-vis consumer price
WON such grant is a facility or a supplement. or cost of living index
• cost of living and increase therein
Bonus • needs of workers and their families
• payment in excess of regular or • need to induce industries to invest in the
guaranteed wages countryside
• not a legally demandable and enforceable • improvements in the standards of living
obligation • prevailing wage levels
◦ except: • employer's capacity to pay
▪ if it is given without any condition • effects on employment generation and
▪ if it is a result of an agreement such family income
as CBA • equitable distribution of income and wealth
▪ if it is given on account of company along the imperatives of economic and
policy or practice social development
▪ grant is mandated by law
2 methods on determining wages
The statutory benefit of 13th month pay is • floor wage method
automatically vested in the employee who has at ◦ involves the fixing of a determinate
least worked for one month during the calendar amount that would be added to the
year, and such benefit may not be lost or forfeited prevailing statutory minimum wage
even in the event of the employee's subsequent • salary ceiling method
dismissal for cause without violating his property ◦ involves a wage adjustment applied to
rights. employees receiving a certain
denominated salary ceiling
The required 13th month pay shall be paid not later
than December 24 of each year.
2 methods of payment
• time wages
• production wages

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Chapter III
the minimum wage fixed by law is mandatory; thus PAYMENT OF WAGES
it is non-waivable and non-negotiable.
(Art. 102)
Wage order Forms of Payment
• Order promulgated by the Regional
Tripartite Wages and Productivity Board Under Art. 1705 of the Civil Code, it is mandated
(RTWPB) pursuant to its wage fixing that the laborer’s wages shall be paid in legal
authority. currency. Under the Labor Code and its
implementing rules, as a general rule, wages shall
Wage distortion be paid in legal tender and the use of tokens,
• a situation where an increase in prescribed promissory notes, vouchers, coupons or any other
wage rates results in the elimination or form alleged to represent legal tender is prohibited
severe contraction of intentional even when expressly requested by the employee.
quantitative differences in wage or salary
rates between and among employee Exceptions :
groups in an establishment as to effectively A. Payment through automated teller machine
obliterate the distinctions embodied in such (ATM) of banks provided the following conditions
wage structure based on skills, length of are met:
service, or other logical bases of 1. the ATM system of payment is with the
differentiation written consent of the employees concerned;
2. The employees are given reasonable time
(Art. 100) to withdraw their wages from the bank
Prohibition Against Elimination or facility which time, if done during working
Diminution of Benefits hours, shall be considered compensable
hours worked;
The principle of non-elimination or non-diminution 3. The system shall allow workers to receive
of benefits mandates that the reduction or their wages within the period or frequency
diminution or withdrawal by employers of any and in the amount prescribed under the
benefits, supplements or payments as provided in Labor Code, as amended;
existing laws, individual agreements or collective 4. There is a bank or ATM facility within a
bargaining agreements between workers and radius of one (1) kilometer to the place of
employers or voluntary employer practice or policy, work;
is not allowed. 5. Upon request of the concerned employee/
s, the employer shall issue a record of
(Art. 101) payment of wages, benefits and deductions
Payment by Results for a particular period;
6. There shall be n additional expenses and
the purpose of the law is to insure the payment of no diminution of benefits and privileges as a
fair and reasonable wage rate to worker paid by result of the ATM system of payment;
result who should be protected form unjust and 7. The employer shall assume
unfair employers. responsibility in case the wage protection
provisions of law and regulations are not
Wage rates of employees paid by result may be complied with under the arrangement.
determined through the use of time and motion (Explanatory Bulletin issued by DOLE
studies or consultation with representatives of Secretary Leonardo Quisumbing dated
employer's and worker's organization. November 25, 1996).

B. Payment by check or money order, (the

foregoing conditions on existence of bank facility

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and other factors should also concur). writing by the employee to pay his wages to
a member of his family;
Penalty: Arresto mayor or a fine ranging from 200 b. Where payment to another person of any
to 500 pesos (Art. 288, RPC) part of the employee’s wages is authorized
by existing law, including payments for the
(Art. 103) insurance premiums of the employee and
Time of Payment union dues where the right to check-off has
been recognized by the employer in
General rule: wages shall be paid not less often accordance with a collective agreement or
than once every two (2) weeks or twice a month at authorized in writing by the individual
intervals not exceeding sixteen (16) days. No employees concerned; or
employer shall make payment with less frequency c. In case of death of the employee, in
than once a month. which case, the same shall be paid to his
Exception: when payment cannot be made with heirs without necessity of intestate
such regularity due to force majeure or proceedings.
circumstances beyond the employer’s control, in
which case, the employer shall pay the wages (Art. 106)
immediately after such force majeure or Contractor or Subcontractor
circumstances have ceased.
Contracting or subcontracting - It refers to an
(Art. 104) arrangement whereby a principal agrees to put out
Place of Payment or farm out with a contractor or subcontractor the
performance or completion of a specific job, work
General rule: the place of payment shall be at or or service within a definite or predetermined
near the place of undertaking. period, regardless of whether such job, work or
Exceptions: service is to be performed or completed within or
• When payment cannot be effected at or outside the premises of the principal.
near the place of work by reason of the
deterioration of peace and order Labor-only contracting
conditions, or by reason of actual or • the contractor supplying workers to an
impending emergencies caused by fire, employer
flood, epidemic or other calamity rendering ◦ does not have substantial capital or
payment thereat impossible; investment to actually perform the job,
• When the employer provides free work or service under its own account
transportation to the employees back and and responsibility
forth; and ◦ the workers recruited, supplied, and
• Under any other analogous circumstances, placed by such contractors are
provided that the time spent by the performing activities which are directly
employees in collecting their wages shall related to the principal business of the
be considered as compensable hours employer.
worked. • The third person or the intermediary is
considered merely an agent of the
(Art. 105) employer.
Direct Payment of Wages • The employer is made responsible to the
employees of the “labor-only” contractor as
General rule: payment of wages shall be made if such employee had been directly
directly to the employee entitled thereto and to employed by the employer.
nobody else. • The law holds both the employer and the
Exceptions. “labor-only” contractor responsible to the
a. Where the employer is authorized in latter's employees for the more effective

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safeguarding of the employee's right under • refers only to one who is not a direct
the Labor Code (Ecal vs NLRC) employer under Art. 106

in house agency (Art. 108)

• refers to a contractor or subcontractor Posting of Bond
engaged in the supply of labor which:
◦ is owned, managed, or controlled by purpose of the law:
the principals, • protect workers from economic exploits by
◦ operates solely for the principal owning, unscrupulous contractors or sub-
managing, or controlling it. contractors who may declare at will that
• Contracting out a job, work or service they are losing due to financial difficulties;
through an in0house agency is contrary to thus, employees may not be paid their
law or public policy (Sec. 2&7 Rule VIII-A, wages.
Dept. Order No. 10)
Bond shall be equal to the cost of labor under
job contracting: contract and should the contractor or subcontractor
• allowed by law if the ffg conditions are met: fail to pay the wages due the employees, the bind
shall answer. (Sec. 7, Rule VIII, Book III, IRR LC)
◦ the contractor carries on an
independent business and undertakes
The employer who fails to require the contractor to
to contract work on his own account,
post a bond must answer for whatever liabilities the
under his own responsibility, etc.
contractor may have incurred to his employees.
◦ the contractor has substantial capital or
investment in the form of tools,
(Art. 109)
equipments, machineries, work
Solidary Liability
premises and other materials which are
necessary in the conduct of business.
in legitimate job contracting, the principal is jointly
• No employer-employee relationship exists and severally liable with the contractor for the
between the owner of the project and the payment of unpaid wages.
employees of the contractor
• the principal employer is considered only For purposes of determining the civil liability, the
an indirect employer. indirect employer or principal is considered as
direct employer.
(Art. 107)
Indirect Employer Correlate to Art. 1278 of the Civil Code
indirect employer purpose: to assure compliance of the provisions
• one who enters into a contract with an therein including the statutory minimum wage
independent contractor for the performance
of any work, task, job or project not directly Nothing in Art. 106 indicates that the insolvency or
related to the employer's business. unwillingness to pay by the contractor or direct
employer is a prerequisite for the joint and several
Independent contractor liability of the principal or indirect employer.
• those who exercise independent
employment, contracting to do a piece of Burden to prove that he/it has substantial capital,
work according to their own methods and investment, tools, etc. lies on the contractor.
without being subject to control of their
employer except as the result of their work. The indirect employer is solidarily liable with the
contractor. However, he can claim reimbursement
“Not being an employer” from the contractor who is the direct employer of

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the workers. Applies only to claims Creates a charge on a

which do not attach to specific property
(Art. 110) specific properties
Workers preference in case of bankruptcy
Not an interest in An interest in a property
purpose: property
“It is but humane and partakes the divine Cannot exist or operate May exists against the
that labor, as human beings, must be treated over except where the debtor property of a solvent
and above chattels, machineries, and other kinds is unable to pay his debtor
of properties and the interests of the employer who debts in full
can afford to survive the hardships of life better
than their workers.” Preferred creditor has Lienor has a right of
no cause of action action against any
this provision has been amended by RA 6715 and against any other person who takes the
its IRR. creditor property upon which he
has lien
A declaration of bankruptcy or a judicial liquidation
must be present before the worker's preference (Art. 111)
may be enforced. Art. 110 and its IRR cannot be Attorney's Fees
invoked absent a formal declaration of bankruptcy
or liquidation order. (DBP vs NLRC, 183 SCRA This provision envisions a situation where there is
328) a judicial or administrative proceedings for
recovery of wages.
Under Art. 110 of the LC, as amended, the unpaid
wages and other monetary claims of the workers Attorney's fees may be awarded only when the
should be paid in full before the claims of the withholding of wages is unlawful.
Government and other creditors. Thus, not even
tax claims could have preference over worker's Standards for payment of Attorney's fees
claim. • must be reasonable; must have a bearing
on the importance of the subject matter in
Claims for unpaid wages do not therefore fall at all controversy;
within the category of specially preferred claims • extent of the services rendered
established under Art. 2241 and 2241 of the Civil • the professional standing of the lawyer
Code, except to the extent that such claims for
unpaid wages are already covered by Art. 2241, the financial capacity and economic status of the
Number 6 or Art. 2242 number 3. clients can be taken into account in fixing the
reasonableness of the attorney's fees.
preference of credit
• Bestows upon the creditor an advantage of Cannot be awarded to non-members of the bar.
having his credit satisfied first before other
claims which may be established against CHAPTER IV

What this provision establishes is not a lien, but a (Art. 112)

reference of credit in favor of the employees. non-interference in disposal of wages

penalty (RPC): arresto mayor or a fine ranging

from 200 to 500 pesos.
(Art. 113)
Preference of credit Lien Wage Deductions

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be made
the evil sought to be prevented is to forestall the • the amount of the deduction is fair and
commission of unwarranted practices of employers reasonable and should not exceed the
by making unnecessary deductions without actual loss or damage
employee's knowledge or authorization. • the deduction should not exceed 20% of
the employee's wage in a week.
Wage deductions allowed:
• when they are authorized by law (Art. 116)
◦ insurance premiums Withholding of Wages and Kickbacks
◦ union dues
◦ facilities supplied withholding of wages and kickbacks are unlawful
◦ loss or damage to tools, materials, acts, be they direct or indirect, by means of force,
equipment supplied by the employer in stealth, intimidation, threat, or dismissal, or by any
a trade, occupation or business means whatsoever without the worker's consent.
◦ taxes withheld pursuant to NIRC
◦ SSS, Philhealth, and Pagibig premiums Kickback – compulsory withholding of a portion of
an employee's wages by the employer or his agent
◦ employee's compensation premiums
as a condition to maintain employment or as a
◦ demandable debt due
bribe for obtaining job.
◦ deductions made in case of judgment
• when they are with the written authorization Authorized withholding of wage:
of the employees for payment to a 3rd • debt that is due and demandable
person • execution or attachment for debts incurred
• when they are made pursuant to the order for food, shelter, clothing, medical
of the court (order of garnishment) attendance
• when deductions, as agency fees, are
made against the salary wage of a non- (Art. 117)
member of the union; provided he accepts Deduction to Ensure Employment
the benefits of the CBA
• when deductions are made for habitual this is also a form of kickback
tardiness or absence as a form of
disciplinary measures (docking) This is punishable under Art. 288 of the Labor
Code which can subject the employer to criminal
check-off liabilities
• system by which union dues and other
assessments are deducted from the (Art. 118)
employee's wage by the employer upon Retaliatory Measures
authorization from the worker or by
mandate of law. unlawful retaliatory acts include:
• Valid only as the employees remain • refusal to pay or reduction of wages and
members of the union concerned benefits due
• illegal dismissal
(Art. 114-115) • discriminating an employee
Deposits for Loss or Damages/Limitations
these can be treated as unfair labor practice under
Requisites: Art. 248 of the Labor Code.
• employee concern is clearly shown to be
responsible for the loss or damage Penalty: see Art. 288 of the Labor Code
• employee is given reasonable opportunity (Art. 119)
to show cause why deduction should not False Reporting

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records to be kept: • To act as the national consultative and

• payroll advisory body to the President of the
◦ length of time to be paid Philippines and Congress on matters
◦ rate of pay relating to wages, incomes and
◦ amount due for regular work productivity;
◦ amount due for OT • To formulate policies and guidelines on
◦ deductions from the wages wages, incomes and productivity
◦ amount actually paid improvement at the enterprise, industry
and national levels;
• time records
• To prescribe rules and guidelines for the
◦ through bundy clock
determination of appropriate minimum
◦ timekeeper
wage and productivity measures at the
◦ individual dtr regional, provincial or industry levels;
• To review regional wage levels set by the
Managerial employees, officers or members of the
Regional Tripartite Wages and Productivity
managerial staff, as well as non-agricultural field
Boards to determine if these are in
personnel need not be required to keep individual
accordance with prescribed guidelines and
DTRs, provided that a record of their daily
national development plans;
attendance is kept and maintained by the employer
• To undertake studies, researches and
surveys necessary for the attainment of its
for employees paid by result, the employer shall
functions and objectives, and to collect and
keep a copy of their production records.
compile data and periodically disseminate
information on wages and productivity and
Employment records shall be kept and maintained
other related information, including, but not
in or about the premises of the workplaces, and
limited to, employment, cost-of-living, labor
which shall be preserved for at least three (3)
costs, investments and returns;
years from entry in he records.
• To review plans and programs of the
regional Tripartite Wages and Productivity
Chapter V Boards to determine whether these are
WAGE STUDIES, WAGE AGREEMENTS AND consistent with national development
• To exercise technical and administrative
(Art. 120) supervision over the Regional Tripartite
Creation of National Wages and Productivity Wages and Productivity Boards;
Commission • To call, from time to time, a national
tripartite conference of representatives of
composition: government, workers, and employers for
• Sec of DOLE – ex-officio Chairman the consideration of measures to promote
• Dir. Gen of NEDA – ex-officio vice wage rationalization and productivity; and
Chairman • To exercise such powers and functions as
• 2 members form the workers and may be necessary to implement this Act.
employers sector – with term of 5 years
• executive Director of NWPC Secretariat – (Art. 122)
member Creation of regional Tripartite Wages and
Productivity Boards
The Regional Boards shall have the
following powers and functions in their respective
(Art. 121) territorial jurisdiction:
Powers and Functions of the Commission • To develop plans, programs and projects

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relative to wages, incomes and productivity

improvement for their respective regions; Wage order
• To determine and fix minimum wage rates • specify the region, province, or industry to
applicable in their respective regions, which the minimum wage rates prescribed
provinces or industries therein and to issue therein
the corresponding wage orders, subject to • may not be distributed for a period of 12
guidelines issued by the Commission; months from its effectivity, and no petition
• To undertake studies, researches, and for wage increase shall be entertained
surveys necessary for the attainment of within the said period
their functions, objectives and programs • shall take effect within 15days after its
and to collect and compile data on wages, complete publication
incomes, productivity and other related • may be appealed to the Commission by
information and periodically disseminate filing a verified appeal with the Board not
the same; later than 10 days from the date of
• To coordinate with the other Regional publication of the Order
Boards as may be necessary to attain the ◦ the Commission shall decide on the
policy and intention of this Code; appeal within 60 days from the filing
• To receive, process and act on applications thereof
for exemption from prescribed wage rates ◦ grounds for appeal
as may be provided by law or any Wage ▪ non-conformity with prescribed
Order; and guidelines or procedures
• To exercise such other powers and ▪ questions of law
functions as may be necessary to carry out ▪ grave abuse of discretion
their mandate under this Code.
The filing of the appeal does not operate to
Composition: stay the order unless the person appealing such
• Regional Director of DOLE – Chairman order shall file with the Commission, an
• Regional Directors of NEDA – vice Chair undertaking with a surety or sureties satisfactory to
• Regional Director of DTI – Vice Chair the Commission for the payment to the employees
• 2 members each from workers and affected by the order of the corresponding
employers sector increase, in the event such order is affirmed.

the Board is a tripartite body composed of Wage order issued by the Regional Wage Board
members from without the required public hearing or consultation,
• government and without publication in newspapers of general
• labor circulation should be struck down for violation of
• management Art, 123, LC. (Cagayan Milling Co vs Sec, of
the wage board system is a keystone to collective
bargaining. see RA 6727
punishment for non-compliance: fine of 25k – 100k
(Art. 123) or imprisonment of 2-4 years, or both
Wage Order
perosns convicted under RA 6727 are not entitled
Within 30 days after conclusion of the last hearing, to the benefits of the Probation Law.
the Board shall decide on the merits of the petition,
and when appropriate, issue a wage order Double indemnity
establishing the minimum wage rates to be paid by • payment to a concerned employee of the
employers in the region. prescribed increase or adjustment in the

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wage rate which was not paid by an service, or other logical bases of
employer in an amount equivalent to twice differentiation.
the unpaid benefits owing to such • Increase in the compensation of the lower
employee. pay class without a corresponding raise for
• Computation starts from the effectivity of high-level employees
the prescribed increases or adjustments as • elements:
indicated in the wage order ◦ existing hierarchy of positions with
corresponding salary rates
(Art. 124) ◦ significant change or increase in the
Standards/Criteria for Minimum Wage Fixing salary rate of a lower pay class without
a corresponding increase in the salary
considerations: of a higher one
• The demand for living wages; ◦ elimination of the distinction between
• Wage adjustment vis-a-vis the consumer the 2 groups or classes
price index; ◦ distortion exists in the same region of
• The cost of living and changes or increases the country.
therein; • Causes of wage distortion:
• The needs of workers and their families; ◦ government decreed increase
• The need to induce industries to invest in ◦ merger of 2 companies
the countryside; ◦ effectivity dates of wage increases
• Improvements in standards of living; given to each of the 2 classes of
• The prevailing wage levels; employees had not been synchronized
• Fair return of the capital invested and in their respective CBAs
capacity to pay of employers; • settlement of wage distortion
• Effects in employment generation and ◦ unionized establishments
family income; and ▪ negotiate to correct the distortions
• The equitable distribution of income and using the grievance machinery n
wealth along the imperatives of economic the CBA
and social development. ◦ non-unionized establishments
▪ NCMB; or
Disputes on wage distortions shall be referred to ▪ NLRC
the NCMB which shall decide on it within 10 days
• formula for distortion adjustment
from the time said dispute has been referred to
◦ minimum wage/actual salary - % x
voluntary arbitration
prescribed increase = distortion
if it remains unresolved, the matter shall be
referred to the NLRC which shall decide on it within • any issue involving wage distortion shall
20 days from the day the case has been referred to not be a ground for a strike or lockout
compulsory arbitration.
(Art. 125)
wage distortion Freedom to Bargain
when an employee may be paid a higher minimum
• a situation where an increase in prescribed
wage rates results in the elimination or
severe contraction of intentional • CBA
quantitative differences in wage or salary • voluntary or compulsory arbitration award
rates between and among employee • assumption of jurisdiction award
groups in an establishment as to effectively • company policy or practice
obliterate the distinctions embodied in such • productivity incentives
wage structure based on skills, length of

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(Art. 126) ◦ necessary conditions:

Prohibition against injunction ▪ employer-employee relationship
purpose: for the Commission or Board to perform ▪ findings of labor regulation officers
its powers and functions speedily without regard to or industrial safety engineers were
unnecessary interventions which may made in the course of inspection
tremendously affect the wage-fixing functions ▪ employer does not contest such
necessary to maintain peace and harmony in the findings which cannot be resolved
working world. without considering evidentiary
(Art. 127) ◦ limitations:
Non-diminution of benefits (the jurisdiction is vested on the NLRC)
▪ cannot apply to those who were no
any increase granted by the employer are over and
longer employed with the
above any increase that may be granted by law or
establishment at the time the
a wage order.
complaint was filed
▪ may not be exercised where the
employer questions the findings of
the labor enforcement officers and
raises issues which cannot be
(Art. 128)
determined without taking into
Visitorial and Enforcement Power
consideration evidentiary matters
2 complementary powers conferred upon
not verifiable in the normal course
Secretary of DOLE
of inspection
• visitorial power
◦ persons who obstructs, impedes,
◦ inspection power
delays or otherwise render ineffective
◦ access to employers' records and the exercise of the enforcement power
premises whenever work is being of the DOLE may be held criminally
undertaking therein liable under Art. 288 of the Labor Code
◦ right to copy therefrom ◦ government employees who violate Art.
◦ right to question any employee's right 128 of the LC shall be dismissed
to investigate any fact, condition or summarily from the service.
matter which may be necessary to ◦ Appealable to Secretary of Labor within
determine violation of labor standards 10 days
• enforcement power
◦ power to issue compliance orders to (Art. 129)
give effect to the labor standards Recovery of Wages, Simple Money Claims and
provisions of the Code Other benefits
◦ issue writs of execution to the
appropriate authority for the adjudicatory power of the Regional Director of
enforcement of their orders DOLE
◦ order stoppage of work or suspension • claim for recovery of wages, simple money
of operations of any unit or department claims, and other benefits
of an establishment when non- • requisites
compliance with the law or ◦ claim is filed by an employee or person
implementing rules and regulations employed in domestic or household
poses grave and imminent danger to service, or househelper
the health and safety of workers in the ◦ claim arises from employer-employee
workplace. relationship

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◦ claimant, no longer employees, does RA 8042

not seek reinstatement
◦ aggregate money claim does not (Art. 130-Art. 133)
exceed 5k
◦ decision appealable to the NLRC within Maternity Leave Under SSS Law (RA 1161)
5 calendar days “Section 14-A. Maternity Leave Benefit. - A
◦ grounds for appeal covered female employee who has paid at least
three monthly maternity contributions in the twelve-
▪ prima facie evidence of abuse pf month period preceding the semester of her
childbirth, abortion, or miscarriage and who is
▪ order/decision was secured through currently employed shall be paid a daily maternity
fraud, coercion, graft and corruption benefit equivalent to one hundred per cent of her
▪ pure question of law present basic salary, allowances and other benefits
▪ serious errors in the findings of fact, or the cash equivalents of such benefits for sixty
which if not corrected would cause days subject to the following conditions:
grave or irreparable damage or (a) That the employee shall have notified her
injury to the appellant employer of her pregnancy and the
• 3 years prescriptive period probable date of her childbirth which notice
shall be transmitted to the SSS in
Difference between Articles 128 and 129, LC: accordance with the rules and regulations it
Articles 128 and 129 both involve money may provide;
claims. In the former, the amount of claim is (b) That the payment shall be advanced by the
immaterial (there is no limit) while in the latter, the employer in two equal installments within
aggregate amount of the claim must not exceed thirty days from the filing of the maternity
P5,000.00. leave application;
In Art. 128, it is necessary that there is still (c) That in case of caesarian delivery, the
an employer-employee relationship, in Art. 129 the employees shall be paid the daily maternity
employer employee relationship is already severed benefit for seventy-eight days;
for the provision to apply. (d) That payment of daily maternity benefits
shall be a bar to the recovery of sickness
TITLE III benefits provided by this Act for the same
WORKING CONDITIONS FOR SPECIAL compensable period of sixty days for the
GROUPS OF EMPLOYEES same childbirth, abortion, or miscarriage;
(e) That the maternity benefits provided under
Chapter 1 this section shall be paid only for the first
Employment of Women four deliveries after March 13, 1973;
(f) That the SSS shall immediately reimburse
Sec. 14, Art. II, Constitution the employer of one hundred per cent of
Sec. 3, Art. XIII the amount of maternity benefits advanced
Sec. 14, Art. XIII to the employee by the employer upon
receipt of satisfactory proof of such
RA 6725 – expressly prohibits discrimination payment and legality thereof; and
against women with respect to terms and (g) That if an employee should give birth or
conditions of employment, promotion, and training suffer abortion or miscarriage without the
opportunities required contributions having been remitted
for her by her employer to the SSS, or
RA 6955 without the latter having been previously
RA 7192 notified by the employer of time of the
RA 7322 pregnancy, the employer shall pay to the
RA 7877 SSS damages equivalent to the benefits

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which said employee would otherwise have (d) Where the woman employee holds a
been entitled to, and the SSS shall in turn responsible position of managerial or
pay such amount to the employee technical nature, or where the woman
concerned.” employee has been engaged to provide
health and welfare services;
Qualifications for entitlement to maternity (e) Where the nature of the work requires
benefit: the manual skill and dexterity of women
• female member should be employed at the workers and the same cannot be performed
time of delivery, miscarriage, or abortion with equal efficiency by male workers;
• she must have given the required (f) Where the women employees are
notification to the SSS through her immediate members of the family operating
employer the establishment or undertaking; and
• her employer must have paid at least 3 (g) Under other analogous cases exempted
months of maternity contributions within by the Secretary of Labor and Employment
12month period immediately before the in appropriate regulations.
semester of contingency
required facilities for women
any pregnant woman whether married or Employers are required to:
unmarried is entitled to maternity leave (a) Provide seats proper for women and
permit them to use such seats when they
maternity benefit not included in the 13th month pay are free from work and during working
hours, provided they can perform their duties
Prohibition against nightwork: in this position without detriment to
General rule: Regardless of age, no woman shall efficiency;
be employed or permitted or suffered to work, with (b) To establish separate toilet rooms and
or without compensation: lavatories for men and women and provide
(a) In any industrial undertaking or branch at least a dressing room for women;
thereof between 10:00 o’clock at night and 6 (c) To establish a nursery in a workplace for
o’clock in the morning of the following day; the benefit of the women employees therein;
(b) In any commercial or non-industrial and
undertaking or branch thereof, other than (d) To determine appropriate minimum age
agricultural, between midnight and 6 o’clock and other standards for retirement or
in the morning of the following day; or termination in special occupations such as
(c) In any agricultural undertaking at those of flight attendants and the like.
nighttime unless she is given a period of rest (Art. 134-Art. 135)
of not less than nine (9) consecutive hours.
Exceptions:The nightwork prohibition shall not acts of discrimination under Art. 135:
apply in any of the following cases: • discrimination in pay: Payment of a lesser
(a) In cases of actual or impending compensation, including wage, salary or
emergencies caused by serious accident, other form of remuneration and fringe
fire, flood, typhoon, earthquake, epidemic or benefits, to a female employee as against
other disasters or calamity, to prevent loss of a male employee, for work of equal value;
life or property, or in cases of force majeure and
or imminent danger to public safety; • discrimination in employment opportunity:
(b) In case of urgent work to be performed Favoring a male employee over a female
on machineries, equipment or installation, to employee with respect to promotion,
avoid serious loss which the employer would training opportunities, study and
otherwise suffer; scholarship grant solely on account of their
(c) Where the work is necessary to prevent sexes.
serious loss of perishable goods; • Discrimination in hiring: favoring a male

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applicant with respect to hiring where the Prohibited acts

particular job can equally be handled by a
woman (HB 4198) unlawful acts against women
• Discrimination in dismissal: favoring a male • discharge any woman employed by him for
employee with respect to dismissal of the purpose of preventing such woman
personnel or the application of the last from enjoying the maternity leave, facilities
in/first out principle or other retrenchment and other benefits provided under the
policy of the employer. Code.
• Discharge such woman on account of her
RA 7192: pregnancy or while on leave or in
Sec. 2. Declaration of Policy. — The State confinement due to her pregnancy
recognizes the role of women in nation building and • discharge or refuse the admission of such
shall ensure the fundamental equality before the woman upon returning to her work for fear
law of women and men. The State shall provide that she may again be pregnant
women rights and opportunities equal to that of • discharge any woman or any other
men. employee for having filed a complaint of
To attain the foregoing policy: having testified or being about to testify
• A substantial portion of official development under the Code.
assistance funds received from foreign • Require as a condition for or continuation
governments and multilateral agencies and of employment that a woman employee
organizations shall be set aside and shall not get married or to stipulate
utilized by the agencies concerned to expressly or tacitly that upon getting
support programs and activities for women; married a woman employee shall be
• All government departments shall ensure deemed resigned or separated or to
that women benefit equally and participate actually dismiss, discharge, discriminate or
directly in the development programs and otherwise prejudice a woman employee
projects of said department, specifically merely by reason of her marriage.
those funded under official foreign • Deny any woman the benefits of
development assistance, to ensure the full employment or other statutory benefits
participation and involvement of women in under our laws by reason of her sex, age,
the development process; and ethnic origin or beliefs, or relations, either
• All government departments and agencies by affinity or consanguinity.
shall review and revise all their regulations,
circulars, issuances and procedures to RA 9262: “Anti-Violence Against Women and
remove gender bias therein. their Children Act of 2004”
• State's policy:
(Art. 136)
◦ The State values the dignity of women
Stipulation Against Marriage
and children and guarantees full
respect for human rights. The State
stipulations against marriages assaults good
also recognizes the need to protect the
morals and public policy, tending as it is to deprive
family and its members particularly
the woman the freedom to choose her status, a
women and children, from violence and
privilege that inheres in the individual as an
threats to their personal safety and
intangible and inalianable right. It may even be
security. (Sec. 2, RA 9262)
said that such regulations would indeed encourage
• violence against women and their children:
illicit or common-law relatons and subvert the
sacrament of marriage (PT &T Co. vs NLRC, 272 ◦ any act or series of acts committed by
SCRA 596) any person agaisnt a woman xxx or
against her child xxx which result in or
(Art. 137) is likely to result in physical, sexual,

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psycholigical harm or suffering, or conjugal community or property

economic abuse including threats of owned in common
such acts, battery, assault, coercion, ▪ destroying household property
harassment, or arbitrary deprivation of ▪ controlling the victim's own money
liberty. (Sec. 3, ibid) or properties or solely controlling
• physical violence the conjugal money or properties.
◦ acts that include bodily or physical • Battery
harm ◦ acts of inflicting physical harm upon the
• sexual violence woman or her child resulting to the
◦ rape, sexual harassment, acts of physical and psychological or
lasciviousness, treating the woman or emotional distress
her child a sex object, making • battered woman syndrome
demeanung and sexually suggestive ◦ scientifically defined pattern of
remarks, physically attacking the psychological and behavioral
sexual parts of the victim's body, symptoms found in women living in
forcingher to watch obscene battering relationship as a result of
publications and indecent shows or cumulative abuse.
forcing the woman or her child to do • dating relationship
indecent acts and/or make films ◦ refers to a situation wherein the parties
tehreof, forcing the wife or mistress to live as husband and wife without the
live in the conjugal home or sleep benefit of marriage or are romantically
together in the same room with the involved over time and on a continuing
abuser basis during the course of the
◦ acts causng or attempting to cause the relationship.
victim to engage in any sexual activity • acts of violence against women and their
by force, threat or force, physical or children
ther harm or threat of physical or other ◦ causing physical harm to the woman or
harm of coercion her child
◦ prostituting the woman or child ◦ threatening to cause the woman or her
• psychological violence child physical harm
◦ acts or omissions causing or likely to ◦ attempting to cause the woman or her
cause mental or emotional suffering of child physical harm
the victim such as but not limited to ◦ placing the woman or her child in fear
intimudation, harassment, stalking, of imminent physical harm
damage to property, public ridicule or
◦ attempting to compel or compelling the
humiliation, repeated verbal abuse and
woman or her child to engage in
mental infidelity.
conduct which the woman or her child
• economic abuse has the right to desist
◦ refers to act that make or attempt to ◦ causing or attempting to cause the
male a woman financially dependent woman or her child to engage in any
▪ withdrawal of financial support or sexual activity which does not
preventing the victim from engaging constitute rape
in any legitimate profession, ◦ engaging in purposeful, knowing or
occupation, business or activity; reckless conduct, personally or through
except on valid, serious, and moral another, that alarms or causes
grounds under Art. 73, Family Code substantial distress to the woman
▪ deprivation or threat of deprivation ◦ causing mental or emotional anguish
of financial resources and the right
to the use and enjoyment of the (Art. 138)

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Classification of Certain Women Workers • employment of child models in all

commercial promoting alcohol, beverages,
They shall be considered employees of the intoxicating drinks, tobacco and its by-
establishments mentioned in the article for products, and violence.
purposes of labor and social legislation if they are
under the effective control or supervision of the Rules governing the hours of work of a working
employer for a substantial period of time. child:
• below 15 y.o – not more than 20 hours a
Chapter 2 week, not more than 4 hours at any given
EMPLOYMENT OF MINORS day; no work between 8pm to 6 am in he
morning of the following day
(Art. 139) • 15-18 y.o – not more than 40 hours a week;
Minimum Employable Age not more than 8 hours a day; no work
between 10pm to 6am in the morning of
General rule: employment of children below 15 the following day
years of age is prohibited
Exceptions: the wages, salaries, earnings and other income of
• when the child works directly under the the working child shall belong to him/her I
responsibility of his/her parents or legal ownership and shall be set aside primarily for
guardians who employ his/her family his/her support, education, skills acquisition and
members only secondarily to the collective needs of the family.
◦ the employment does not endanger the Provided that not more than 20% of the child's
child's life, safety, health, and morals income may be used for the collective needs of the
◦ the employment does not impair the family.
child's normal development
◦ the employer-parent or legal guardian A trust fund of at least 30% of the child's earnings
provides the child with primary and/or and other income to at least 20k shall be set up
secondary education
• when the child's employment or (Art. 140)
participation in public entertainment is Prohibition against Child Discrimination
◦ the employment does not involve There is discrimination when one is denied
advertisements or commercials privileges given to the other under identical or
promoting alcohol, beverages, similar conditions.
intoxicating drinks, tobacco and its by-
products or exhibiting violence RA 9231:
◦ there is a written contract approved by state Policy:
the DOLE It is the policy of the State to provide
special protection to children from all forms of
The employer who engages a child for abuse, neglect, cruelty, exploitation and
employment under the above exceptions is discrimination and other conditions prejudicial to
required to first secure a work permit issued by the development including child labor and its worst
DOLE having jurisdiction over the workplace. forms.

Absolutely prohibited employment State acts as a parens patriae on behalf of the

• hazardous or deleterious in nature child
◦ one where the employee is exposed to • exempt from paying filing fees
any risk which constitutes an imminent • 'has the right to free legal, medical, and
danger to his safety and health psycho-social services to be provided by
the State.

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Minimum Cash Wage

Worst forms of labor
• all forms of slavery the employer is mandated by law to provides
• the use, procuring, offering or exposing of a househelpers with free lodging, food, and medical
child for prostitution, for the production of attendance (Art. 148 and 169, NCC)
pornography or for pornographic
performances services rendered shall no be more than ten hours
• the use, procuring or offering of a child for a day (Art. 1695, NCC)
illegal or illicit activities, including the
production and trafficking of dangerous the househelper is entitled to 4 days vacation each
drugs and volatile substances prohibited month with pay.
under existing laws
• work which is hazardous or likely to be (Art. 145)
harmful to the health, safety, or morals of Assignment to Non-Household Work
Househelpers may be assigned to work in a
Chapter 3 commercial, industrial or agricultural enterprise
EMPLOYMENT OF HOUSEHELPERS provided they receive a wage or salary rate
provided for agricultural and non-agricultural
(Art. 141) workers.
(Art. 146)
househelper – any person who renders services Opportunity for Education
in and about the employer's home and which
services are unusually necessary or desirable for relate to Art. 1691 of the Civil Code
the maintenance and enjoyment thereof and
include ministering to the personal comfort and (Art. 147)
convenience of the members of the employer's Treatment of Househelpers
the right to just and humane conditions of work is a
(Art. 142) constitutionally mandated right
Contract of Domestic Service (Sec. 3, Art. XIII, 1987 Constitution)
• the right to regular working hours
reiteration of Art. 1692, NCC • right to regular working days
• right to overtime work
the law requires no formality for the execution of an • right to weekly rest periods
employment contract of household service. Even if • right to additional compensation on
the term of the employment exceeds 1 year, the scheduled rest day/special holiday
statute of frauds will not apply. • right to compensation for holiday work
rules if househelper dies
(Art. 143) • Funeral expenses
Minimum Wage ◦ employer shall bear the funeral
expenses commensurate to the
any stipulation that household service is without standards of life of the deceased
compensation is void (Art. 1689, NCC) • disposition of househelper's body
◦ the transfer or use of the body of the
wages of househelpers shall be paid directly to the
househelper for purposes other than
househelper at least once a month.
burial is prohibited, unless so desired
by the househelper or by his guardian
(Art. 144)

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with court approval • it differs for regular factory production in

that it is ia decentralized form of production
(Art. 148) where there is ordinarily very little
Board, Lodging and Medical Attendance supervision or regulation of methods of
The medical attendance refers to medical
treatment of the injury or illness that arose out of Prohibition against homework
and in the course of employment, that is, an • explosives, fireworks or similar articles
ailment contracted by the househelper while he or
she is in the service of the employer. • drugs and poisons
Hospitalization is excluded from the coverage. • other articles, the processing of which
requires exposure to toxic substances
(Art. 149)
Indemnity for Unjust Termination of Services homeworker's organization acquire legal
personality upon issuance of the certificate of
The 15-day salary is awarded in the form of an registration.
indemnity due to unjust dismissal of a househelper,
hat is dismissal without just cause and notice (Art. 154)
before the lapse of the contract term, and the Regulations of the Secretary of Labor
amount is in addition to and not a substitute for the
househelper's salary for the unexpired portion of the Regional Director shall have the power to order
the contract. and administer compliance with the provisions of
law and regulations affecting the terms and
(Art. 150) conditions of employment of homeworkers.
Service of Termination Notice
If the money claim exceeds 5k, the NLRC shall
this provision seems to be in conflict with Art. 1698 have jurisdiction over such case.
of the Civil Code. The provision of the Labor Code
shall prevail I the light of the repealing clause in (Art. 155)
Art. 303 of the Labor Code. Distribution of Homework

(Art. 151-Art. 152) employer of homeworkers

Employment Certification - Employment Records • any person, natural or artificial, who for his
account or benefit, or on behalf of any
keeping of employment records is basically for the person residing outside the country, directly
safety and protection of the employers from or indirectly or through any employee,
househelpers with criminal motives agent, contractor, subcontractor, or any
other person. The employer delivers or
Chapter 4 sells goods, articles or materials to be
EMPLOYMENT OF HOMEWORKERS processed or fabricated in or about a home
and thereafter repurchases the finished
(Art. 153) products.
Regulation of Industrial Homeworkers
Contractor or subcontractor
industrial homework • any person who, for the account or benefit
• a system of production under which work of an employer, delivers or causes to be
for an employer or contractor is carried out delivered to a homeworker, goods or
by a homeworker at his home. articles to be processed in or about his
• Material may or may not be furnished by home and thereafter to be returned,
the employer or contractor disposed or, or distributed in accordance

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with the direction of the employer.

Immediately upon receipt of the finished goods, the

employer shall pay the homeworker or the
contractor or subcontractor, as the case may be,
for the work performed.

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