MNEMONICS IN LABOR LAWS AND SOCIAL

LEGISLATION

GENERAL CONSIDERATIONS

Labor Law body of statutes, rules and doctrines that:

D 1. defines State policies on labor and employment, and
G 2. governs the rights and duties of workers and employers respecting terms and
conditions of employment by:
a. prescribing certain standards therefor, or
b. establishing a legal framework,
T 3. in order to obtain better terms and conditions of work
through collective bargaining or other concerted activities.
KEY: D G sf T

Labor Laws Consist of:

1. Labor Policies principles or guidelines that define State
policies concerning labor and employment.
2. Labor Standards Law body of statutes, rules and doc
trines that governs rights and duties of workers and employ
ers respecting terms and conditions of employment by pre
scribing certain standards therefor.
3. Labor Relations Law body of statutes, rules, principles
and doctrines that governs rights and duties of workers and
employers by establishing a legal framework within which
better terms and conditions of work could be obtained through collective
bargaining or other concerted activity (Manalac, Labor Laws Comments and
Jurisprudence, Vol. I, p. 1).

Constitutional Provisions Concerning Labor:

Art II, Sec. 18 State affirms labor as a primary social economic force. It shall
protect the right of workers and promote their welfare.
Art. XII, Sec. 12 State shall promote preferential use of Filipino labor, domestic
materials and locally produced goods, and adopt measures that help make them more
competitive.
Art. XIII, Sec. 3 xxx, State shall promote the principle of
shared responsibility between workers and employers, and
the preferential use of voluntary modes in settling disputes,
 including conciliation, and shall enforce their mutual com
pliance therewith to foster industrial peace.
Art. XIII, Sec. 14 The State shall protect the working
women by providing safe and healthful working conditions,
taking into account their maternal functions, and provide
such facilities and opportunities that will enhance their wel
fare and enable them to realize their full potential in the
service of the nation.

Three Aggregate Powers Against Which Labor Needs Protection:

1. Collective Labor directed by the union;
2. Collective Capital directed by management;
3. Collective Bargaining Relationship (Benjamin Victoriano v. Elizalde Rope Workers
Union, et al., Sept. 12, 1974).
Key: LCB

Constructi on of Labor and Social Legislation Laws:

1. should be construed liberally in order to promote their purposes.
2. all doubts in the implementation and interpretation of the
provisions of the Labor Code, including i t s implementing

rules and regulations, shall be resolved in favor of labor (Art 4, Labor Code).
3. in case of doubt, all labor legislation and all labor contracts shall be construed in
favor of the safety and decent living for the laborer (Art. 1702, New Civil Code).
KEY: L L S

Tripartism participation and cooperation among government, labor and management

in the evolution and formulation of labor policies and standards.

PRE-EMPLOYMENT

State Policy on Pre-employment (Art. 12, Labor Code):

1. Promote and maintain a state of full employment through
improved manpower training, allocation and utilization;
2. Protect every citizen desiring to work locally or overseas by
securing for him the best possible terms and conditions
of employment;
3. Facilitate a free choice of available employment by per
sons seeking work in conformity with the national inter
est;
4. Facilitate and regulate the movement of workers in con
formity with the national interest;
5. Regulate the employment of Aliens, including the estab
lishment of registration and/or work permit system;
6. Strengthen the network of public employment offices and
rationalize the participation of the private sector in the re
cruitment and placement of workers, locally and overseas,
to serve national development objectives; and
7. Insure careful selection of Filipino workers for overseas em
ployment in order to protect the good name of the Philip
pines abroad.
Worker any member of the labor force, whether employed or unemployed.

Recruitment and placement any act of canvassing, enlisting, contracting,

transporting, utilizing, hiring or procuring workers and includes referrals, contract
services, promising or advertising for employment locally or abroad, whether for profit
or not. Provided, That any person or entity which, in any manner, offers or promises for a
fee employment to two or more persons shall be deemed engaged in recruitment and
placement.
private fee-charging employment agency any person or entity engaged in the
recruitment and placement of workers for a fee which is charged, directly or
indirectly, from the workers or employers or both.
License a document issued by the DOLE authorizing a person or entity to operate a
private employment agency.
Private recruitment entity any person or association engaged in the recruitment and
placement of workers locally or overseas, without charging directly or indirectly,
any fee from the workers or employers.
Authority a document issued by the DOLE authorizing a person or association to
engage in recruitment and placement activities as a private recruitment entity.
Seaman any person employed in a vessel engage in maritime
navigation.
Overseas employment employment of a worker outside the Phil-El ippines.
Emigrant any person, worker or otherwise, who emigrates to a foreign country by
virtue of an immigrant visa or resident permit or its equivalent in the country of
destination.

Original and Exclusive Jurisdiction under RA No. 8042:

1- all cases which are administrative in character, involving or arising out of
violations of rules and regulations relating to licensing and registration of
recruitment and employment agencies or entities; and
2. disciplinary action cases and other special cases which arc administrative in character,
involving employers, principals, contracting partners and Filipino migrant workers.

Grounds for Disciplinary Actions :

Commission by the worker of any of the offenses enumerated below or of similar
offenses while working overseas, shall be subject to appropriate actions as the POEA may
deem necessary:
 1. Commission of a felony punishable by Philippine laws
or by the laws of the host country;
2. Drug addiction or possession or trafficking of prohib
ited drugs;
3. Desertion or abandonment;
4. Drunkenness, specially where the laws of the host
country prohibit intoxicating drinks;
5. Gambling, specially where the laws of the host coun
try prohibit the same;
6. Initiating or joining a strike or work stoppage where
the laws of the host country prohibits strikes or simi
lar actions;
7. Creating trouble at the work site or in the vessel;
8. Embezzlement of company funds or of monies and
properties of a fellow worker entrusted for delivery
to kins or relatives in the Philippines;
9. Theft or robbery;
10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly weapons;
13. Unjust refusal to depart for the work site after all
employment and travel documents have been duly
approved by the appropriate government agency/ies;
and
14. Violation/s of the laws and sacred practices of the host
country and unjustified breach of government-approved employment contract by a
worker.
Ban on Direct-Hiring:
No employer may hire a Filipino worker for overseas
employment except through the boards and entities authorized by
the DOLE. Direct-hiring by members of the
diplomatic corps, international organizations and such
other employers as may be allowed by the DOLE is exempted from
this provision.

Jurisdiction o f the NLRC with respect to Migrant Workers and

Overseas Filipinos (RA No. 8042):
Money Claims Labor Arbiters of the NLRC shall have
the original and exclusive jurisdiction to hear and de
cide, within 90 calendar days after the filing of the com
plaint, the claims arising out of an employer-employee
relationship or by virtue of any law or contract involving
Filipino workers for overseas deployment including
 claims for actual, moral, exemplary, and other forms of
damages.
The liability of the principal/employer and the recruit
ment/placement agency for any and all claims under this
law shall be joint and several. This provision of law shall
be incorporated in the contract for overseas employment
and shall be a condition precedent for its approval. The
performance bond to be filed by the recruitment/place
ment agency, as provided by law, shall be answerable for
all money claims or damages that may be awarded to the
workers. If the recruitment/placement agency is a juridi
cal being, the corporate officers and directors and part
ners as the case may be, shall themselves be jointly and
solidarity liable with the corporation or partnership for
the said claims and damages.
Such liability shall continue during the entire period or
duration of the employment contract and shall not be
affected by any substitution, amendment, or modifica
tion made locally or in a foreign country of the said con
tract.

Minimum Employment Conditions:

The POEA minimum requirements of employment contracts-
1. Guaranteed wages for regular working hours and over
time pay for services rendered beyond regular working
hours in accordance with the standards established by
the administration;
2. Free transportation from point of hire to site of employ
ment and return;
3. Free emergency medical and dental treatment and fa
cilities;
4. Just causes for the termination of the contract or of the
services of the workers;
5. Workmen's compensation benefits and war hazard pro
tection;
6. Repatriation of worker's remains and property in cases
of death to the point of hire, or if this is not possible un
der the circumstances, the proper disposition thereof,
upon prior arrangement with the worker's next of kin
and the nearest Philippine embassy or consulate through
the office of the attaches;
7. Assistance on remittance of worker's salaries, allowances
or allotments to his beneficiaries; and
8. Free and adequate board and lodging facilities or com
pensatory food allowance at prevailing cost of living
standards at the job site.
Invalid Side Agreement agreement that diminishes the em ployees pay and benefits as
contained in a POEA-approved contract is void, unless such subsequent agreement is
approved by the POEA.

Prohibited Practices:
it shall be unlawful for any individual, entity, licensee, or holder of authority:
fa) To charge or accept, directly or indirectly, any amount greater than that
specified in the schedule of allowable
 fees prescribed by the Secretary of Labor, or to make a worker pay any amount
greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or
document in relation to recruitment or employment;
(c) To give any false notice, testimony, information or docu
ment or commit any act of misrepresentation for the pur
pose of securing a license or authority under this Code;
(d) To induce or attempt to induce a worker already employed
to quit his employment in order to offer him to another
unless the transfer is designed to liberate the worker from
oppressive terms and conditions of employment;
(e) To influence or to attempt to influence any person or en
tity not to employ any worker who has not applied for
employment through his agency;
(f) To engage in the recruitment or placement of workers in
jobs harmful to public health or morality or to the dig
nity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Sec
retary of Labor or by his duly authorized representatives;
(h) To fail to file reports on the status of employment, placement vacancies, remittance of
foreign exchange earnings, separation from jobs, departures and such other matters or
information as may be required by the Secretary of Labor;
(i) To substitute or alter employment contracts approved and verified by the Department of
Labor from the time of actual signing thereof by the parties up to and including the
periods of expiration of the same without the approval of the Secretary of Labor;
(j) To become an officer or member of the Board of any corporation engaged in travel
agency or to be engaged directly or indirectly in the management of a travel agency;
and
(k) To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under this Code and its
implementing rules and regulations.

Illegal Recruitment any act of canvassing, enlisting, contracting, transporting,

utilizing, hiring, or procuring workers and includes referring contract services,
promising or advertising for employment abroad, whether for profit or not when
undertaken by a non-licensee or non-holder of author ity contemplated under the
Labor Code. Provided, That any such non-licensee or non-holder who, in any manner,
offers or promises for a fee employment abroad to two or more per sons shall be
deemed so engaged. It shall likewise include the following acts, whether
committed by any person, whether a non-licensee, non-holder, licensee or holder of
authority:
1. Charge or accept directly or indirectly any amount
greater than that specified in the schedule of allowable
fees prescribed by the SOLE, or to make a worker pay
any amount greater than that actually received by him
as a loan or advance;
 2. Furnish or publish any false notice or information or
document in relation to recruitment or employment;
3. Give any false notice, testimony, information or docu
ment or commit any act of misrepresentation for the
purpose of securing a license or authority under the
Labor Code;
4. Induce or attempt to induce a worker already employed
to quit his employment in order to offer him another
unless the transfer is designed to liberate a worker from
oppressive terms and conditions of employment;
5. Influence or attempt to influence any person or entity
not to employ any worker who has not applied for em
ployment through his agency;
6. Engage in the recruitment or placement of workers in
jobs harmful to public health or morality or to the dig
nity of the Republic of the Philippines;
7. Obstruct or attempt to obstruct inspection by the SOLE
or by his duly authorized representative;
8. Fail to submit reports on the status of employment,
placement vacancies, remittance of foreign exchange
earning, separation from jobs, departures and such other matters or information
as may be required by the SOLE;
9. Substitute or alter to the prejudice of the worker, em ployment contracts approved and
verified by the DOLE from the time of actual signing thereof by the parties up to
and including the period of the expiration of the same without the approval of the
DOLE;
10. For an officer or agent of a recruitment or placement
agency to become an officer or member of the board of
any corporation engaged in travel agency or to be en
gaged directly or indirectly in the management of a
travel agency;
11. Withhold or deny travel documents from applicant work
ers before departure for monetary or financial consid
erations other than those authorized under the Labor
Code and its implementing rules and regulations;
12. Failure to actually deploy without valid reason as de
termined by the DOLE; and
13. Failure to reimburse expenses incurred by the worker
in connection with his documentation and processing
for purposes of deployment, in cases where the deploy
ment does not actually take place without the worker's
fault.
Illegal recruitment when committed by a syndicate or in large scale shall be considered an
offense involving economic sabotage.
Illegal recruitment is deemed commited by a syndicate if carried out by a group of three or
more persons conspiring or confederating with one another. It is deemed committed in
large scale if committed against three or more persons individually or as a group.
The persons criminally liable for the above offenses are the principals, accomplices,
accessories. In case of juridical persons, the officers having control, management or
direction of their business shall be liable.

State Policy on Human Resource Development (Art. 43 Labor Code):

develop human resources, establish training institutions, and formulate such plans and
programs, as will ensure efficient allocation, development and utilization of the
nation's manpower and thereby promote and accelerate economic and social growth.
Manpower shall mean that portion of the nation's population which has actual or
potential capability to contribute directly to the production of goods and services.
Entrepreneurship shall mean training for self-employment or assisting individual or
small industries within the purview of the Labor Code.

State Policy on Apprenticeship (Art. 57, Labor Code):

1. Help meet the demand of the economy for trained manpower;
2. Establish a national apprenticeship program through the
participation of employers, workers, and government and
non-government agencies;
3. Establish apprenticeship standards for the protection of ap
prentices.
Apprenticeship means practical training on the job supplemented by related
theoretical instruction.
Apprentice is a worker who is covered by a written apprenticeship agreement with an
individual employer or any of the entities recognized under this Chapter.
Apprenticeable Occupation means any trade, form of employment or occupation
which requires more than three (3) months of practical training on the job
supplemented by related theoretical instruction.
Apprenticeship agreement is an employment contract wherein the employer binds
himself to train the apprentice and the apprentice in turn accepts the terms of
training.
Qualifications of apprentice To qualify as an apprentice, a person shall:
(a) Be at least fourteen (14) years of age;
 (b) Possess vocational aptitude and capacity for appropriate tests; and

(c) Possess the ability to comprehend and follow oral and written instructions.

learners persons hired as trainees in semi-skilled and other industrial occupations

which are non-apprenticeable and which may be learned through practical
training on the job in a relatively short period of time which shall not exceed
three (3) months.
when learners may be hired Learners may be employed when no experienced workers
are available, the employment of learners is necessary to prevent curtailment of
employment opportunities, and the employment does not create unfair
competition in terms of labor costs or impair or lower working standards.
Handicapped Workers those whose earning capacity is impaired by age or
physical or mental deficiency or injury.
When employable: Handicapped workers may be employed when their employment is
necessary to prevent curtailment of employment opportunities and when it does
not create unfair competition in labor costs or impair or lower working standards.
Employment agreement: Any employer who employs handicapped workers shall enter
into an employment agreement with them, which agreement shall include:
a. The names and addresses of the handicapped workers to be employed;
b. The rate to be paid the handicapped workers which shall
not be less than seventy-five (75%) percent of the appli
cable legal minimum wage;
c. The duration of employment period; and
d. The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by the Secretary of Labor or his
duly authorized representative.

LABOR STANDARDS

Elements of Employer and Employee Relationship:

S 1. selection and engagement of the employee;
W 2. payment of wages; .
D 3. power of dismissal; and
C 4. power to control the employee with respect to the means and methods by which
the work is to be accomplished.
KEY: S W D C

refers to the minimum terms and conditions of employment

which employees are legally entitled to and employers must
comply with.
generally, employers and employees may provide for other
terms and conditions either by:
 (a) company policy;
(b) contract; or
(c) CBA, provided that such terms are above the minimum
prescribed by law.
guiding principle: whatever is beneficial to labor.

Conditions of Employment
Hours of Work (Art. 83, Labor Code)
Normal Hours of Work: not to exceed 8 hours = regular wage per day
Health Personnel in cities and municipalities with population of at least 1 million or in
hospitals and clinics with a bed capacity of at least 100 shall hold regular office
hours for eight hours a day for 5 days a week, or a total of 40 hours a week, exclusive
of time for meals, except where the exigencies of the service require that such
personnel work for 6 days or 48 hours, in which case they shall be entitled to an
additional compensation of at least 30% of their regular wages for work on the 6th day.
health Personnel resident physicians, nurses, nutritionists, dietitians, pharmacist,
social workers, laboratory technicians, paramedical technicians, psychologists,
midwives, attendants and all other hospitals or clinic personnel.

Excess considered overtime = overtime pay + overtime premium pay

Application of the Rule:
applies to employees in all establishments and undertaking, whether for profit or
not.
Except:
1. Government employees of the national government or any of its political
subdivisions; excluded because they are not covered by Labor Code but by the Civil
Service Law;
2. Managerial employees;
3. Field personnel non-agricultural workers who regularly perform their duties away
from the office or place of business of the employer, and whose actual work hours
in the field cannot be determined with reasonable certainty;
4. Domestic servants and persons in the personal service of another; and
5. Members of the family of the employer if they are dependent on employer for support.
KEY: G M D F2

computation of Hours Worked Hours of work shall include (Art. 84, Labor
Code)
1. all time during which an employee is required to be on
duty or to be at a prescribed work place; and
2, all time during which an employee is suffered or permit
ted to work.
need to be doing actual work; only required to be on duty regardless of whether or
not such hours are spent in productive labor or involve physical or mental exertion.
Waiting Time: compensable if waiting is an integral part of Work or required or engaged
by employer to wait.

Subject to Call: compensable if required to remain on call

in employer's premises or close thereto so that he cannot use
the time effectively and gainfully for his own purpose.
But not compensable when employee is kept "within reach"
through mobile telephone or other contact device such as pagers,
notwithstanding that they must remain within a certain
geographical area.
Meal Periods: compensable if not more than 60 minutes
and employee cannot leave work place (Art. 85, Labor Code).
Working while sleeping: sleeping time may be considered
working time if it is subject to serious interruption or takes
place under conditions substantially less desirable than
would be likely to exist at the employee's home.

Training Programs, Lectures, Meetings: not compensable if

attendance is outside of the employee's regular work
ing hours; attendance is voluntary; and employee does not
perform any productive work during attendance.
Brief Rest Period: compensable if intervals too brief to be
used effectively and gainfully in the interest of the employee.
Necessary work: compensable if necessary; benefited the
employer, or employee cannot abandon work because he had
no replacement provided with knowledge of employer or su
pervisor.
Travel Time: compensable if required by the employer or
taken for the employer's benefit.
Brownout/Work Interruptions: compensable if not exceed
ing 3 hours; employee cannot leave workplace and cannot
make use of his time for own purpose.
Grievance meeting: time spent in adjusting grievance
between employer and employees during the time the em
ployees are required by the employer to be on the premises
is hours worked.
Semestral Break: Regular full-time teachers are entitled
to salary and emergency cost-of-living-allowance during
semestral breaks.
overtime Pay

Consent of both employer or employee needed for rendition

overtime work.

Instances when employer may compel employee to render ove rtime work:
 W 1. when country is at war or when any other national or local emergency has
been declared by Congress or the President;
E 2. when it is necessary to prevent loss of life or property or in case of imminent
danger to public safety due to an actual or pending emergency in the locality
caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or
other disaster or calamity;
U 3. when there is urgent work to be performed on machines, installations, or
equipment, in order to avoid serious loss or damage to the employer or
some other cause of similar nature;
L 4. when the work is necessary to prevent loss or damage to perishable goods;
P 5. when the completion or continuation of the work started before the 8 hrs. is
necessary to prevent serious obstruction or prejudice to the business or
operations of the employer; and
W 6. where overtime work is necessary to avail of favorable weather or
environmental conditions where performance or quality of work is
dependent thereon (Art. 89, Labor Code).
KEY:LUPW 2 E

Employees not entitled to overtime pay:

G 1. Government employees in the civil service;
F 2. members of the family of the employer if there are dependent on employer for
support:
D 3. domestic servants and persons in the personal service of another;

M 4. managerial employees; F 5. field personnel;

and
R 6. workers who are paid by results (Art. 82, Labor Code).
KEY: G M D F2 R

Undertime not offset by overtime (Art. 88, Labor Code).

Regular wage includes cash wage only as far as computa tion of overtime pay
(Art. 90, Labor Code).
Nightshirt Differential (NSD)
not less than 10% of regular wage for each hour worked be
tween 10 o'clock P.M. and 6 o'clock A.M. the following day (Art.
86, Labor Code).
Employees not entitled to NSD:
G 1. Government employees in the civil service;
N 2. those of retail and service establishments regularly employing not more
than 5 workers;
D 3. domestic servants and persons in the personal service of another;
 M 4. managerial employees; F 5. field personnel.
KEY: G M D Fn
Retail Establishment one open to the general consuming public for the sale of goods
that are commonly bought by end-users for personal or household use.
Service Establishment one engaged predominantly in the sale of services to
individuals for their own or household use (Alcantara, Reviewer in Labor and Social
Legislation, 1995 ed., p. 128).

Weekly Rest Periods

it is the duty of every employer, whether operating for profit or not, to provide each of
his employees a rest period of not
less than 24 consecutive hours after every six consecutive normal work days.
employer has discretion on what will be employee's rest day but must respect the
latter's preference based on religious grounds (Art. 91, Labor Code).

work on Employee's Rest day

General Rule: employee cannot be compelled to render work on his rest day.
Except:
E 1. In case of actual or impending emergency caused by serious accidents,
fire, flood, typhoon, earthquake, epidemic or other disaster or calamity, to
prevent loss of life or property, or in case of force majeure or imminent
danger to public safety;
U 2. When there is urgent work to be performed on machines, installations, or
equipment, to avoid serious loss or damage to the employer;
A 3. In the event of abnormal pressure of work due to special circumstances,
where employer cannot ordinarily be expected to resort to other measures;
L 4. To prevent loss or damage to perishable goods;
C 5. Where the nature of the work is such that the employees have to work continuously
for 7 days in a week or more, as in the case of the crew members of a vessel to complete
a voyage and in other similar cases;
W 6. Where work is necessary to avail of favorable weather or environmental
conditions where performance or quality of work is dependent thereon
(Art. 92, Labor Code); and
A 7. Under other circumstances analogous or similar to the foregoing as
determined by the Secretary of Labor.
KEY: UCAELAW

Rest days are considered unpaid off-days.

Additional Compensation for Work on Rest Day (Art. 93, Labor Code)
1. regular work on rest day = 30% of regular wage;
1. work on rest day falling on national special day = 50% of
regular wage;
 2. work on rest day falling on regular holiday = 30% of his regular holiday pay based on
his regular wage rate.

Holiday Pay
Kinds of Holidays:
A. Regular Holidays
1. New Year's Day, 1/1
2. Maundy Thursday, movable date
3. Good Friday, movable date
4. Araw ng Kagitingan, 4/9
5. Labor Day, 5/1
6. Independence Day, 6/12
7. National Heroes' Day, last Sunday of August
8. Bonifacio Day, 11/30
9. Christmas Day, 12/25
10. Rizal Day, 12/30 (E.O. No. 203). B. Special National Days

1. All Saint's Day, 11/1
2. Last Day of the Year, 12/31 (LOI 814 as amended by
LOI 1087)

Regular Holidays are paid days, even if unworked.

If worked, employee is entitled to regular wage plus 100% of regular wage.
If worked and it falls on employee's rest day, he is entitled to regu
lar holiday pay (200%) plus 30% thereof.
general Rule: monthly paid employees are paid holiday pay, even
if unworked.
Exception: when paid for all days of the month whether worked
or unworked.
effect of Absences on Holiday Pay:
day before holiday employee is: worked unworked
on leave with pay 200% 100%
on leave without pay 200% No pay

(FLAG Primer on Labor Standards, 1994 ed.)

Pay in case of Two (2) Holidays in Same Day (Araw ng Kagitingan and Good
Friday, April 9):
1. 200% even if unworked for daily paid.
1. 100% or none for monthly paid if worked or unworked,
respectively.

Service Incentive Leave

employee who has rendered at least one year of service shall be entitled to a yearly
service incentive leave of five days with pay.

* Benefit applies to all except:

G 1. government employees in the civil service;
D 2. domestic servant or persons in the personal service of another;
M 3. managerial employees; F 4. field personnel;

E 5. those already enjoying such benefit;

V 6. those enjoying vacation leaves with pay of at least 5 days; and
L 7, those employed in firms regularly employing less than 10 employees (Art.
95, Labor Code).
KEY: G M D F V E L

Service incentive leave is commutable to its money equivalent if it is not used or exhausted
at the end of the year.

Paternity Leave Act of 1996 Republic Act No. 8187

 Every married male employee in the private and public sec
tors shall be entitled to a paternity leave of seven (7) days
with full pay for the first four (4) deliveries of the legiti
mate spouse with whom he is cohabiting. The male employee
applying for paternity leave shall notify his employer of the
pregnancy of his legitimate spouse and the expected date of
such delivery.
Delivery shall include childbirth or any miscarriage.
Paternity Leave refers to the benefits granted to a married male employee allowing him
not to report for work for seven (7) days but continues to earn the compensation
therefor, on the condition that his spouse has delivered a child or suffered a
miscarriage for purposes of enabling him to effectively lend support to his wife in her
period of recovery and/or in the nursing of the newly-born child.

Service Charges

all service charges collected by hotels, restaurants and similar establishments are to
be distributed at the rate of 85%
for the employees, and 15% for the management,
The employee's share shall be apportioned equally among
all employees, regardless of position or employment status.
The management share will answer for losses and break ages, or at his discretion, to
distribute this to employees receiving more than P2,000 a month (Art. 96, Labor Code)

In case service charge is abolished, share of employees shall be considered integrated in

their wages. This integration shall be based on the average monthly share of each
employee for the past twelve months immediately preceding the abolition.
To determine whether the compensation of employees in these establishment conform to
increases in the statutory minimum wages, only 50% of the credited service charges
shall be included. Where the credited amount is less than the increase prescribed by
a minimum wage law, the employer shall pay
the difference.

Wages
Wages remuneration or earnings, however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time, task, piece, or commission
basis, or other method of calculating the same, which is payable by an employer to
an employee under a written or unwritten contract of employment for work done
or to be done, or for
the services rendered or to be rendered (Art. 97 [j], Labor Code).
Basic Salary rate of pay for a standard work period exclusive of such additional
payments as bonuses and overtime (Boie-Takeda Chemicals, Inc. v. Dela Serna, 46
SCAD 690, Dec. 10, 1993).
Bonus amount granted and paid to an employee for his industry and loyalty which
contributed to the success of the employer's business and made possible the
realization of profits.

Elements of Wages:
 1- cash wage monetary currency paid by an employer to an employee for work or
services rendered.
2. facilities vital necessities, articles or services customarily given for the benefit of
the employee or his family, excluding tools of the trade or, articles or services
primarily for the benefit of the employer or necessary to the conduct of the
employers business. Reasonable value of the same may be deducted from the cash
wage (Sec. 5, Rule VII. Book III, Implementing Rules and Regulations).

Requisites before value of facilities can be deducted :

1. customarily given;
2. voluntarily accepted in writing by the employee;
3. they are charged at a fair and reasonable value; and
4. within limits set by the DOLE.

Circumstances Regarding Payment of Wages Forms of wages:

1. legal tender;
2. check or money order, provided:
a. customary;
b. provided in collective bargaining agreement; or
c. at the option of employer, provided, further, that:
(i) there is a bank or other facilities for encashment within a radius of 1
kilometer from the workplace;
(ii) the employer, or any of its agents or representatives, does not receive any
pecuniary benefit directly or indirectly from the arrangement;
(iii) the employees are given reasonable time during banking hours to
withdraw their wages from the bank, which time shall be considered as
compensable time if done during working hours; and
(iv) the check payment is with written consent of the employees concerned if
there is no collective agreement authorizing this manner of payment (Sec.
2. Rule VIII, Book III, Implementing Rules and Regulation).

Paym ent of Wages Thro ugh a Bank: (Conditions)

Upon written permission of the majority of the employees or workers concerned, all
private establishments, companies, business, and other entities with 25 or more
employees and located within 1 kilometer radius to a commercial, savings or rural
bank shall pay the wages and other benefits of their employees through any of said
banks and within the period of payment of wages fixed by the Labor Code (Sec. 7,
RA 6727).
The Labor Code prohibits payment of wages by means of:
1. promissory notes;
2. vouchers;
3. coupons;
4. tokens; 5. tickets; 6.. chits; or 7. any other objects other than
legal tender,
even if expressly requested by the employee.

Time of Payment
at least once every two weeks at intervals not exceeding 16 days.
In no case may employer pay wages with less frequency than once a month.
Payment of wages of employees engaged to perform a task which cannot be
completed in two weeks subject to the following conditions:
1. payments are made at intervals not exceeding 16 days,
in proportion to the amount of work completed;
2. final settlement is made upon completion of the work
(Art. 103, Labor Code).

place of Payment
General rule: at or near the place of undertaking.
exceptions:
E 1. when due to the deterioration of peace and order conditions, or by reason of actual
or impending emergencies caused by a calamity, payment at or near the
workplace is impossible;

T 2. when employer provides free transportation to the em ployees back and forth;
A 3. under any analogous circumstances, provided that time spent in collecting their
wages shall be compensable.
KEY: ETA

Prohibited places of payment :

1. bars, or night or day clubs;
2. drinking establishment;
3. massage clinics;
4. dance halls or similar places; and in
5. places where games are played with stakes of money or
things representing money;
Except: in the case of persons employed in said establishment (Sec. 4, Rule VIII, Book
III, Implementing Rules and Regulation).

Manner of Payment

General rule: wages are to be paid to the employee entitled thereto.

Exceptions:
W 1. where the employer is authorized in writing by the em ployee to pay his wages to
a member of his family;
2. where payment to another person of any part of employee's wage is:

p a. specifically provided by law, even without employee's consent, e.g.,

withholding tax, SSS and Medicare;
c b. authorized by law, with the employee's consent. e.g., insurance premiums
of the employee, union check offs, payments to a cooperative, deductions
for facilities;
 a c. authorized by law, even without the employee's
consent, e.g., deposits for loss and breakages, court judgments for
support.
D 3, in case of death of the employee, his wages may be paid to his heirs without the
necessity of intestate proceedings.
KEY: WD c a p

Wage Distortion a situation where an increase in prescribed wage rates results in

the elimination or severe contraction of intentional quantitative differences in wage
or salary rates between and among employee groups in an establishment
as to effectively obliterate the distinctions (Art. 124, Labor
Code).
Responsibility for Payment of Wages
employer is the person responsible for the payment of wages
of his employees.
Employer any person acting directly or indirectly in the interest of the employer in
relation to an employee.
Employee any individual employed by an employer.

Additional level of responsibility for payment of wages: contracting.

Contracting employer contracts with another person for former's work or who, not
being an employer, contracts with an independent contractor for performance of any
work, task, job or project, wherein principal is deemed an indirect employer.

in both cases, principal concerned is liable jointly and severally with his contractor or
sub-contractor to pay wages of latter's employees to the extent of work performed
under the contract, in the event of failure of contractor or sub-contractor to do so.

principal or indirect employer may require contractor or subcontractor to furnish bond

that will answer for the wages due to the employees in case of failure of contractor or
sub-IB? contractor to do so.

in addition to the liability for wages, direct and indirect employers are likewise
jointly and severally liable for violations of the Labor Code and unfair labor
practices.

Types of Contracting:
1. Job contracting contractor carries on an independent
business and undertakes the contract work on his own ac
count under his own responsibility, according to his own
manner and method, free from the control and direction of
his employer or principal in all matters connected with the
performance of the work except as to the result thereof, and
the contractor has substantial capital or investment neces
sary in the conduct of his business.
2. Labor-only contracting any person who undertakes to
supply workers to an employer shall be deemed to be en
gaged in labor-contracting where such person: (a) does not
have substantial capital and investment; and (b) the work
ers recruited and placed by such persons are performing ac
tivities directly related to the principal business or opera
tions of the employer in which employees are habitually
employed.
Job contracting is permissible by law; labor-only contracting is prohibited as contrary to
public policy to promote full employment.
Finding that a contractor is a labor-only contractor is equivalent to a finding that there
exists an employer-employee relationship between the owner of the project and the
employees of the labor-only contractor since that relationship is defined and
prescribed by the law itself.

Legal Relationships Created :

Type of Contractor Principal/ Pay

Contracting contractee liable

Job Contracting direct employer indirect employer Principal

Labor-only agent of principal direct employer both J & S
Contracting

Workers Preference in case of Bankruptcy

"x x x, such unpaid wages and monetary claims shall be paid in full before the
claims of the Government and other creditors may be paid (Art 110, Labor Code)."
Workers preference is still subject to the Civil Code provi
sion on concurrence and preference of credits such that Art.
110 does not create a lien, but only a preference which ap
plies to claims that do not create a charge on particular prop-
erty.
Hence, a mortgage is superior to worker preference, for a preference applies only
to claims which do not attach to specific property, whereas a mortgage creates a
lien or charge
Hi on a particular property.
Art. 110 cannot be invoked without a formal declaration of bankruptcy or a
liquidation order.

prohibited Acts Regarding Wages : I 1. Interference in the disposal

of wages;
No employer shall limit or otherwise interfere with the freedom of any
employee to dispose of his wages. He shall not in any manner force, compel,
or oblige his employees to purchase merchandise, commodities, or other
property from the employer or from other persons, or otherwise make use
of any store or service of such employer or any other person (Art. 112,
Labor Code).
 U 2. Unlawful deductions on wages, except:
a. specifically provided by law, even without employee's
consent, e.g., withholding tax, SSS and Medicare;
b. authorized by law, with the employee's consent, e.g., insurance premiums
of the employee, union check offs, payments to a cooperative, deductions
for facilities;
c. authorized by law, even without the employee's consent, e.g., deposits for loss and
breakages, court judg
ments for support.
d. when deductions are authorized by regulations issued by the Sec. of Labor;
D 3. Deposits for loss or damage, except:
employer engaged in such trade, occupation or busi ness where making
deductions or requiring deposits is a recognized practice, or is necessary or
desirable, subject to following conditions:
a. employee is clearly responsible for loss or dam
age;
b. reasonable opportunity is given to employee to
explain why deductions should not be made;
c. amount of deduction fair and reasonable, and
shall not exceed value of loss or damage;
d. deduction from wages does not exceed 20% of
weekly wage (Art. 114, Labor Code; Sec. 11, Rule
VIII, Book III, Implementing Rules and Regula
tion);
W 4. Withholding of wages and kickbacks It shall be un lawful for any person,
directly or indirectly, to withhold any amount from the wages of a worker or
induce him to give up any part of his wages by force, stealth, intimidation, threat
or by any other means whatsoever without the worker's consent;
E 5. Deduction to Ensure employment It shall be unlawful to make any deduction
from the wages of any employee for the benefit of the employer or his
representative or intermediary as consideration of a promise of employ ment or
retention in employment;
R 6. Retaliatory measures It shall be unlawful for an em ployer to refuse to pay or
reduce the wages and benefits, discharge or in any manner discriminate against
any employee who has filed any complaint or instituted any proceeding under
this Title or has testified or is about to testify in such proceedings;
F 7. False reporting It shall be unlawful for any person to make any statement,
report, or record filed or kept pur-
 suant to the provisions of this Code knowing such state-
, ment, report or record to be false in any material respect;
8. Compelling patronage.

administration and Enforcement Measures visitorial Power

Art. 37 SOLE or his duly authorized representative may, at any time, inspect
the premises, books of accounts and records of any person or entity engaged in
recruitment and placement, require it to submit reports regularly on pre scribed
forms, and act on violations of any provisions of the Code on recruitment and
placement.
Art. 128 SOLE or his duly authorized representative shall have access to employer's
records and premises to determine violations of or enforce the Code and any labor
law, wage order or rules and regulations issued pursuant thereto.
Art. 165 DOLE is empowered to conduct industrial safety (inspections of
establishments.
'Art. 274 SOLE or his duly authorized representative is empowered to inquire
into the financial activities of legitimate labor organizations and examine their books
of accounts upon the filing of a complaint under oath and duly supported by the
written consent of at least 20% of the total member ship of the labor organization.
Enforcement Power Art. 128 (b), as amended by RA 7730 (June 2, 1994)
notwithstanding the provisions of Art. 129 and Art. 217 of the Code to the contrary, and in
case where the relationship of employer-employee still exists, the SOLE or his duly
authorized representatives shall have the power to (Issue compliance orders to give effect
to the labor standards provisions of the Code and other labor legislation based on the
findings of labor employment and enforcement officers or industrial safety engineers
made in the course of inspection. The SOLE or his duly authorized representatives shall
issue writs of execution to the appropriate authority for the enforcement of their orders,
except in cases where the employer contests the findings of the labor employment and
enforcement officer and raises issues supported by documentary proofs which were
not considered in the course of inspection.
Any order issued by the duly authorized representaitve of the SOLE under this
article may be appealed to the latter. In case said order involves a monetry award, an
appeal by an employer may be perfected only upon the posting of a cash or surety bond
issued by a reputable bonding company duly accredited by the SOLE in the amount
equivalent to the monetary award in the order appealed from.
Recovery of Wages, Simple Money Claims (Recovery Power)
power of the Regional Director or any of the duly authorized hearing officers of the
department, xxx, that upon complaint of any interested party, through summary
proceedings and after due notice, to hear and decide any matter involving the
recovery of wages and other monetary claims and benefits, including legal interests,
owing to an employee or domestic servants, xxx, arising from employer/employee re-
lations; Provided, That each complaint does not include a claim for reinstatement:
Provided, further, That the aggregate money claim of each employee or house helper
does not exceed P5,000.

Requisites:

P 1. claim is presented by an employee or person employed in domestic service;

 A 2. claim arises from employer-employee relationship;
N 3. complaint does not include claim for reinstatement. If employer-employee
relationship no longer exists, and the claimant does not seek reinstatement,
it becomes a mere money claim cognizable by the Labor Arbiter, not by
Regional Director;
A 4. aggregate money claim including legal interest does not exceed P5,000.00.
KEY. P A N A

Pls note the procedure in NLRC:

compromise Agreement any compromise settlement, including those involving labor

standards laws, voluntarily agreed upon by the parties with the assistance of the BLR or
the Regional Office shall be final and binding upon the parties. The NLRC or any court
shall not assume jurisdiction over issues involved therein except in case of non-
compliance

thereof or if there is prima facie evidence that the settlement was obtained
through fraud, misrepresentation, or coercion.
Similarly, compromise agreements with respect to the visitorial power shall be
reduced in writing and signed by the parties in the presence of the Regional
Director or his duly authorized representative.

Emergency Cost of Living Allowance (ECOLA)

P.D. No. 1614 and E.O. No. 178 integrated the said allow
ances granted into the basic wages of employees covered.

13th Month Pay (PD 851)

year-end pay = 1/12 of the basic salary within a calendar year.
demandable as a legal obligation.
13th month pay in nature of wages not bonuses.
provided by law which cannot be denied to employees.
However, not included in computation of additional benefits.

Employers Exempted from Giving 13th Month Pay:

G 1. Government/political subdivisions/GOCC's, except corporations operating as
private subsidiaries of government;
D 2. Employers of domestic servants and persons in the personal service of another
in relation to such workers;
C 3. Employers of those paid on purely commission, boundary, or task basis, and
those paid a fixed amount for specific work, irrespective of time spent in
performance thereof, except where workers are paid on piece-rate basis in
which case employer shall grant required 13th month pay to such workers;
and
A 4. Employer already paying employees 13th month pay or more or equivalent.
KEY: C A D G
If no stipulation in CBA regarding treatment of bonuses which are equal to or more
than 13th month pay, treat bonuses as 13th month pay.
Minimum Wage Rates Provided in R.A. No. 6727
Changed scheme of prescribing minimum wages from national to regional basis.
Created Regional Tripartite Wages and Productivity Boards and promoted collective
bargaining and adjusting wage rates in fair and equitable manner under prevailing
conditions.

Minimum wage may be:

1. daily wage; or
2. monthly wage paid for all days of month = daily wage

basis in determining whether Minimum Wage is followed.

Monthly-paid Employee paid a fixed amount per month irrespective of the number
or working days therein and is considered paid during rest days or holidays even if
unworked.
Daily-paid Employee one who is paid only on the days he actually works, except
unworked regular holidays where he is paid his basic wage if he is present or on
leave of absence with pay on the working day immediately preceding the regular
holiday.
Floor Wage Method determined amount to be paid on top of all prevailing amounts.
Salary Ceiling Method fixed amount to be paid on top of specified wage range
(Alcantara, p. 160).
Wage Distortion shall mean a situation where an increase in prescribed wage rates
results in the elimination or severe contraction of intentional quantitative differences in
wage or salary rates between and among employee groups in an establishment as to
effectively obliterate the distinctions embodied in such wage structure based on skills,
length of service, or other logical bases of differentiation.

Labor Code Provisions Regarding Working Women: 1. Prohibition from

night work within certain hours;
industrial undertakings = 10:00 p.m. to 6:00 a.m. next
day
commercial undertaking not agricultural: 12:00 m.n. to
6:00 a.m. the next day
agricultural undertaking: night time unless given rest
period for not less than 9 hours
Exceptions:
a. actual emergencies to prevent loss of life or property;
b. urgent work to be done on machines;
c. to prevent serious loss to perishable goods;
d. managerial or technical/health services;
 e. nature of work requires manual dexterity; and
f. immediate members of the family (Art. 130, Labor
Code; Sec. 5, Rule XI, Book III, Implementing Rules
and Regulations).
2. Requirement of special facilities for women (Art. 132, Labor
Code);
3. Requirement of free family planning services for women (Art.
134, Labor Code);
4. Prohibition from sexual discrimination (Art. 135, Labor
Code);
Acts of Discrimination:
1. payment of lesser compensation;
2. favoring a male employee over a female employee
with respect to promotion, training opportunities,
study and scholarship grants solely on account of
their sexes.
5. Outlawing stipulations against marriage (Art. 136, Labor
Code); and
6. Specific prohibited acts of employer vis-a-vis women:
a. to discharge her to prevent availment of benefits;

b. to discharge on account of her pregnancy;

c. to refuse to admit for fear of further pregnancy; and
d. to discharge for having filed a complaint/testimony.
7. Stipulation against marriage:
It shall be unlawful for an employer to require as a condition of employment or
continuation of employment that a woman employee shall not get married, or to
stipulate expressly or tacitly that upon getting married, a woman employee shall
be deemed resigned or separated, or to actually dismiss, discharge,
discriminate or otherwise prejudice a woman employee merely by reason of
her marriage.
Maternity Benefits Act No. 7322 Republic Act No. 7322
AN ACT INCREASING MATERNITY BENEFITS IN FAVOR OF WOMEN WORKERS IN
THE PRIVATE SECTOR, AMENDING FOR THE PURPOSE SECTION 14-A OF
REPUBLIC ACT NO. 1161, AS AMENDED, AND FOR OTHER PUR-
POSES.
,, Maternity Leave Benefit. A covered female employee who has paid at least three
monthly maternity contributions in the twelve-month period preceding the
semester of her childbirth, abortion or miscarriage and who is currently employed
shall be paid a daily maternity benefit equivalent to one hundred percent (100%)
of her present basic salary, allowances and other benefits or the cash equivalent of
such benefits for sixty (60) days subject to the following conditions:
1. That the employee shall have notified her employer of
her pregnancy and the probable date of her childbirth
which notice shall be transmitted to the SSS in accord
ance with the rules and regulations it may provide;
 2. That the payment shall be advanced by the employer in
two equal installments within thirty (30) days from the
filing of the maternity leave application:
That in case of caesarian delivery, the employee shall be
paid the daily maternity benefit for seventy-eight (78)
days;

4. That payment of daily maternity benefits shall be a bar

to the recovery of sickness benefits provided by this Act
for the same compensable period of sixty (60) days for
the same childbirth, abortion, or miscarriage;
5. That the maternity benefits provided under this Section
shall be paid only for the first four deliveries after March
13, 1973;
6. That the SSS shall immediately reimburse the employer
of one hundred percent (100%) of the amount of mater
nity benefits advanced to the employee by the employer
upon receipt of satisfactory proof of such payment and
legality thereof; and
7. That if an employee should give birth or suffer abortion
or miscarriage without the required contributions hav
ing been remitted for her by her employer to the SSS, or
without the latter having been previously notified by the
employer of the time of the pregnancy, the employer shall
pay to the SSS damages equivalent to the benefits which
said employee would otherwise have been entitled to, and
the SSS shall in turn pay such amount to the employee
concerned.

Sexual Harassment Act of 1995 Republic Act No. 7877

Work, Education or Training-related Sexual Harassment

committed by an employer, employee, manager, supervisor, agent of the
employer, teacher, instructor, professor, coach, trainor, or by any other person who,
having authority, influence or moral ascendancy over another in a work or training
or education environment, demands, requests or otherwise requires any sexual
favor from the other, regardless of whether the demand, request or requirement for
submission is accepted by the subject of said act (Sec. 3, RA 7877).
Employment or Work-related Sexual Harassment (Sec. Sec. 3 [a]. RA 7877):
1. Sexual favor is made a condition in the hiring or in the employment, re-employment
or continued employment of said
 individual, or in granting said individual favorable compensation, terms, conditions,
promotions, or privileges, or the refusal to grant the sexual favor results in limiting,
segregating or classifying the employee which in any way would discriminate,
deprive, diminish employment opportunities or otherwise adversely affect said
employee;
2. The above acts would impair the employee's rights and privi
leges under existing labor laws; or
3. the above acts would result in an intimidating, hostile, or
offensive environment for the employee.

Duty of the Employer vis-a-vis the Prevention or Deterrence of the Commission of Acts
of Sexual Harassment (Sec. 4, RA 7877):
1. prevent or deter the commission of acts of sexual harass
ment and to provide the procedures for the resolution, set
tlement or prosecution of acts of sexual harassment;
2. promulgate appropriate rules and regulations prescribing the
procedure for the investigation of sexual harassment cases
and the administrative sanctions therefor; and
3. create a committee on decorum and investigation of cases of
sexual harassment.

Liability of Employer (Sec. 5, RA 7877):

Employer shall be solidarily liable for damages arising from the acts of sexual
harassment committed in the employment if the employer of head or office is
informed of such acts by the offended party and no immediate action is taken
thereon.

Penalties (Sec. 7, RA 7877):

Imprisonment of not less than 1 month nor more than 6 months, or a fine of not less
than P10,000.00 nor more than P20,000, or both, at the discretion of the court.
Prescriptive Period 3 years

Employment Of Minors Minimum employable age :

No child below fifteen (15) years of age shall be employed,
except when he works directly under the sole responsibility
of his parents or guardian, and his employment does not in
any way interfere with his schooling.
Any person between fifteen (15) and eighteen (18) years of
age may be employed for such number of hours and such
periods of the day as determined by the Secretary of Labor
and Employment in appropriate regulations.
The foregoing provisions shall in no case allow the employ
ment of a person below eighteen (18) years of age in an un
dertaking which is hazardous or deleterious in nature as de
termined by the Secretary of Labor and Employment.
The Following shall be Considered Hazardous Workplaces (Worker must be 18 and above) :
1. Where the nature of the work exposes the workers to
dangerous environmental elements, contaminations or work
conditions including ionizing radiations, chemicals, fire,
flammable substances, noxious components, and the like;
2. Where the workers are engaged in construction work, log
ging, fire-fighting, mining, quarrying, blasting, steve
doring, dockwork, deep-sea fishing, and mechanized
farming;
3. Where the workers are engaged in the manufacture or
handling of explosives and other pyrotechnic products;
4. Where the workers use or are exposed to heavy or power-
driven machinery or equipment; and
5. Where workers use or are exposed to power-driven tools.

R.A. No. 7658 Prohibits the employment of children below 15 years of age.

Exceptions and C onditions:

1. When the child works directly under the sole responsi b i l i t y of his/her parents
or legal guardian who employs
members of his/her family only, under the following conditions:
a. The employment does not endanger the child's life,
safety, health and morals;
b. The employment does not impair the child's normal
development; and
c. The employer parent or legal guardian provides the
child with the primary and/or secondary education
prescribed by the DECS.
2. Where the child's employment or participation in public entertainment or
information through cinema, theater, radio or television is essential, provided
that:
a. The employment does not involve advertisements for
commercials promoting alcoholic beverages, intoxi
cating drinks, tobacco and its by-products or exhibit
ing violence;
b. There is a written contract approved by the DOLE;
and
c. The conditions prescribed in RA 7658 are met.
Prohibition against child discrimination: No employer shall discriminate against
any person in respect to terms and conditions of employment on account of his
age.

Househelpers and Homeworkers

Domestic or Household Service service in the employer's home which is usually
necessary or desirable for the maintenance and enjoyment thereof and includes
 ministering to the personal comfort and convenience of the members of the
employer's household, including services of family drivers (Art. 141, Labor Code).

Minimum wage of house helpers_ (Art. 143, Labor Code):

In Metro Manila and other highly urbanized cities = P800.00
Other chartered cities and 1st class municipalities = P650.00
For those in other municipalities = P550.00.

Househelpers receiving at least Pl,000.00 shall be covered by the SSS and entitled to all
benefits therein.
Minimum Cash Wage basic cash wage which shall be paid to the househelpers in
addition to lodging, food and medical attendance (Art. 144, Labor Code).
If the househelper is under the age of 18 years, the employer shall give him/her an
opportunity for at least elementary education which shall be part of the househelper's
compensation, unless there is a stipulation to the contrary (Art. 146, Labor Code).
The employer shall treat the househelper in a just and humane manner. In no case shall
physical violence be used upon the househelper (Art. 147, Labor Code).
The employer shall furnish the househelper free of charge suitable and sanitary living
quarters as well as adequate food and medical attendance (Art. 148, Labor Code).
If the period of household service is fixed, neither the employer nor the househelper may
terminate the contract before the expiration of the term, except for a cause. If the
househelper is unjustly dismissed, he or she shall be paid the compensation already
earned plus that for 15 days by way of indemnity.
If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid
salary due him or her not exceeding 15 days (Art. 149, Labor Code).
Homeworker person who performs in or about his home any processing or fabrication
or of goods or materials, in whole or in part, which have been furnished directly or
indirectly, by an employer and thereafter sold or returned (Alcantara, p. 208).

Medical Benefits (Art. 165, Labor Code)

Medical and Dental services that employer must extend:
1. first aid medicines and equipment as nature and condi
tions of work require and to take steps for the training of
a sufficient number of employees in first-aid treatment;
2. furnish free medical and dental attendance and equip
ment; and
3. provide all necessary assistance to ensure adequate and immediate medical and
dental assistance and treatment to an injured or sick employee in case of emergency.
free Medical and Dental attendance and equipment com prised of (Sec. 4, Rule 1, Book
IV, Implementing Rules and Regulation):
1. no. of employees: 10-50
a. graduate first-aider, may be one of employees; and
b. first-aid materials.
2. more than 50 but less than 200:
a. full time registered nurse but may be graduate first-
aider in non-hazardous workplaces; and
b. first-aid materials.
3. more than 200 but less than 300:
a. full-time registered nurse;
b. part-time physician (2 hours/day at least and always
on call);
c. part-time dentist (2 hours/day at least and always
on call);
d. emergency clinic.
4. more than 300 and hazardous workplaces:
a. full-time registered nurse;
b. full-time physician (8 hours/day at least and always
on call);
c. full-time dentist (8 hours/day at least and always on
call);
d. dental clinic;
e. infirmary or emergency hospital (bed: 1/100 employ
ees).
5. more than 300 and non-hazardous workplaces:
a. full-time registered nurse;
b. part-time physician (2 hours/day at least and always
on call);

c. part-time dentist (2 hours/day at least and always

on call);
d. dental clinic;
e. infirmary or emergency hospital (bed: 1/100 employ
ees).
In workplaces having more than 1 working shift: graduate first aider per
shift.

LABOR RELATIONS
 refers to the interactions between employer and employees or their
representatives and the mechanism by which employment standards
are negotiated, adjusted and enforced.

State Policy on Collective Bargaining. Trade Unionism, and Other Matters

Concerning Labor Relations:
1. promote free collective bargaining, including voluntary
arbitration, as a mode of settling labor or industrial disputes;
2. promote free trade unionism as an agent of democracy, so
cial justice and development;
3. foster free and voluntary organization of a strong and
united labor movement;
4. promote the enlightenment of workers concerning their
rights and obligations as union members and as employees;
1. provide an adequate administrative machinery for the
expeditious settlement of labor and industrial disputes;
6. ensure a stable but dynamic and just industrial peace;
6. encourage representation of workers and employers in
policy-making bodies of the government (Tripartism).

Definitions:
Labor Organizations any union or association of employees which
exists in whole or in part for the purpose of collective bargaining or of
dealing with employers concerning terms and conditions of
employment.
employer includes any person acting in the interest of an employer, directly or
indirectly. The term shall not include
any labor organization or any of its officers or agents, except
when acting as employer.
employee any person in the employ of an employer. Term shall not be limited to
employees of a particular employer, except when Labor Code explicitly states. It
shall include any individual whose work has ceased as a result of or in connection
with any current labor dispute, or because of any unfair labor
if he has not obtained any other substantially equivalent and regular employment.
Legitimate Labor Organization any labor organization duly registered with the
DOLE, and includes any branch or local thereof.
Company Union any labor organization whose formation, . function or
administration has been assisted by any act defined as ULP by the Labor Code.
Bargaining Representative a legitimate labor organization or any officer or agent
of such organization whether or not employed by the employer.
, Labor Dispute any controversy or matter concerning terms
or conditions of employment or the association or representation of persons in
negotiating, fixing, maintaining, changing or arranging the terms and conditions of
employment, regardless of whether the disputants stand in the proximate relation
of employer or employee.
Managerial Employee one who is vested with powers or prerogatives to lay down
and execute management policies and/ or to hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees.
Characteristics of Managerial Employee:
1. he is not subject to the rigid observance of regular office

2. his work requires the consistent exercise of discretion

and judgment in its performance;
3. the output produced or the result accomplished cannot be standardized in
relation to a given period of time;

4. he manages a customarily recognized department or sub

division of the establishment, customarily and regularly
directing the work of other employees therein;
5. he either has the authority to hire or discharge other
employees or his suggestions and other recommendations
as to hiring and discharging, advancement and promo
tion and other change of status of other employees are
given particular weight; and
6. as a rule, he is not paid hourly wages nor subject to maxi
mum hours of work.

Supervisory Employee one who, in the interest of the employer, effectively

recommend such managerial actions if the . exercise of such authority is not merely
routinary or clerical in nature but requires the use of independent judgment.
Rank-and-file Employees all employees not falling within any of above
definitions.
Voluntary Arbitration any person accredited by the Board as such, any person
named or designated in the CBA by the parties to act as their voluntary arbitrator,
or one chosen, with or without the assistance of the NCMB, pursuant to a
selection procedure agreed upon in the CBA, or any official that may be authorized
by Secretary of DOLE to act as voluntary arbitrator upon written request and
agreement of the parties to a labor dispute.
Strike any temporary stoppage of work by the concerted action of employees as a
result of an industrial or labor dispute.
Picketing stationing of persons before the premises of an establishment involved in
labor dispute, generally accompanied by the carrying and display of signs, placards
or banners stating the issues involved in the dispute.
Lock-out temporary refusal of an employer to furnish work as a result of an
industrial or labor dispute.
Internal Union Dispute all disputes or grievances arising from any violation of or
disagreement over any provision of the constitution and by-laws of the union,
including any violation of the right and conditions of union membership provided
for in the Labor Code.
Strike-Breaker any person who obstructs, impedes, or interferes with by force,
violence, coercion, threats or intimidation any peaceful picketing by employees
during any labor controversy affecting wages, hours or conditions of work or in the
exercise of the right of self-organization or collective bargaining.
Strike Area establishment, warehouses, depots, plants or offices, including the sites
or premises used as runaway shops of the employer struck against, as well as the
immediate vicinity actually used by picketing strikers in moving to and fro before
all points of entrance to and exit from said establishment.
Bargaining Unit legal collectivity for collective bargaining purposes whose
members have substantially mutual bargaining interests in terms and conditions of
employment as will assure to all employees the exercise of their collective bar-
gaining rights.
Elements: 1. the will of the employees (Globe doctrine):
2. affinity and unity of employees' interests, such as similarities of duties and
working conditions;
3.. prior collective bargaining history; and
4.. employment status, positions and categories of work.
Collective Bargaining bargaining by a labor organization, in behalf of its
members, with the employer regarding terms and conditions of employment.

Kinds of Labor Disputes:

1. Labor Standards Disputes: a. Compensation - e.g.; under payment of
minimum wage, stringent output quota, illegal pay deductions;
b. Benefits e.g.: non-payment of holiday pay, overtime pay, or other benefits;
c. Working conditions e.g., unrectified work hazards-2. Labor Relations
Disputes:
a. Organizational right dispute/ULP
 Example: coercion, restraint or interference in unionization efforts, reprisal
or discrimination due to union activities, company unionism, ULP strike or
lockout, union members' complaint against union officers.
b. Representation disputes
Example: uncertainty as to which is the majority union, determination of
collective bargaining unit, contest for recognition by different sets of officers
of same union, ULP strike.
c. Bargaining disputes
Example: refusal to bargain (ULP), bargaining in bad faith, bargaining
deadlock, economic strike or lockout.
d. Contract administration or personnel policy disputes
Example: non-compliance with CBA provision (ULP if gross non-
compliance with economic provisions), disregard of grievance machinery, non-
observance or unwarranted use of union security clause, illegal or
unreasonable personnel management policies, violation of no-strike/no-
lockout agreement.
e. Employment tenure disputes
Example: non-regularization of employees, non-absorption of labor only-
contracting staff, illegal termination, non issuance of employment contract
(Azucena, The Labor Code with comments and cases), Vol. II, 1999 ed., p. 20).

Remedies in labor Disputes:

1. Grievance Procedure in-house adjustment of complaint-problem or dispute
following the steps prescribed in CBA or company policy;
2. Conciliation a process where a disinterested third
party meets with management and labor, at their request
or otherwise, during a labor dispute or in collective bar
gaining conferences, and by cooling tempers, aids in
reaching an agreement.
3. Mediation a third party studies each side of the dis
pute then makes proposals for the disputants to consider,
but a mediator cannot render an award. Conciliation and
mediation are done primarily by "conciliators-mediators"
of the National Conciliation and Mediation Board.
4. Enforcement or Compliance Order an act of the SOLE
in the exercise of his visitatorial or administrative author
ity to enforce labor laws, policies, plan, or programs, or
rules and regulations.

5. Certification of Bargaining Representatives Determination of which contending

unions shall represent em
ployees in collective bargaining. This is handled by "med-
arbiters" of the DOLE. Adjudication by med-arbiters of
inter-union or intra-union conflicts are appealable di
rectly to the SOLE.
6. Arbitration the submission of a dispute to an impar
tial person for determination on the basis of evidence and
arguments of the parties.
a. Voluntary if submission of the dispute is by agree
ment of the parties and the arbitrators or panel of
arbitrators is chosen by them. Voluntary arbitration
is done by "voluntary arbitrator."
b. Compulsory if submission of the dispute is by di
rective of law. Unlike a conciliator or a mediator, an
arbitrator is a judge, he makes decisions and awards
that the parties must accept. Compulsory arbitration
is done primarily by "labor arbiters" of the NLRC.
In VA, the award is final and unappealable, ex
cept through certiorari.
In CA, the decision is appealable to the NLRC,
then to the CA, through the special civil action of
certiorari.

7. Assumption of Jurisdiction an authority vested by law

to the SOLE or the President to decide a dispute causing
or likely to cause a strike or lockout in an industry indispensable to national interest.
8. Certification to NLRC an action of the SOLE empow
ering the NLRC to compulsorily arbitrate a dispute caus
ing or likely to cause a strike or lockout in an industry
indispensable to the national interest.
Either assumption or Certification automatically enjoins an on-going or
impending strike/lockout. A return to work order is issued to strikers, at the
same time the employer is ordered to immediately resume operations and
readmit all workers under the same terms and conditions prevailing before the
strike or lockout.
9. Injunction is an ordinary remedy and is not favored in labor law. As a general
rule, an injunction or restraining order to prevent or stop the doing of an act is
avoided in resolving a labor dispute because the State policy and aim are to
encourage the parties to use the non-judicial processes of negotiation and
compromise, mediation and arbitration.
A writ of injunction is issued to stop or restrain an actual or threatened
commission of prohibited or unlawful acts or to require the performance of an
act, which if not restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any decision in favor of
such party.
10. Judicial action complaint filed with the regular court
in cases falling under its jurisdiction.
11. Appeal the process by which an order, decision, or
award is elevated to a higher authority, on specified
grounds, so that the order, decision or award may be
modified or set-aside and a new one issued. In instances
where appeal is allowed, the administrative remedies
 should be availed of, as a rule, before the aggrieved party
may go to court.
12. Judicial Review no law allows appeal from a decision of the SOLE,
or of the NLRC, or of a voluntary arbitrator. In these cases the
"special civil action of certiorari, prohibition or mandamus" may be
lodged with the Court of Appeals.
R 13. Compromise agreement in any stage of any of these settlement
processes, the labor dispute may be resolved by the parties through a
compromise agreement, provided that the agreement is freely entered into
and is not contrary to law, morals, or public policy. A compromise agreement
is also subject to approval of the authority before whom the case is
pending. Even a labor standards case can be settled through a
compromise. But it has been
held that ULP cases are not subject to compromise.

Jurisdiction of the Labor Arbiters and the Commission:

Labor Arbiters shall have original and exclusive jurisdiction
to hear and decide, within thirty (30) calendar days after
the submission of the case by the parties for decision with-
out extension, even in the absence of stenographic notes, the
following cases involving all workers, whether agricultural
or non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
1. If accompanied with a claim for reinstatement, those
cases that workers may file involving wages, rates of pay,
hours of work and other terms and conditions of employ
ment;
4. Claims for actual, moral, exemplary and other forms of damages
arising from the employer-employee relations;
5. Cases arising from any violation of Article 264 of this
Code, including questions involving the legality of strikes
and lockouts; and
Except claims for Employees Compensation, Social Se
curity, Medicare and maternity benefits, all other claims
arising from employer-employee relations, including
those of persons in domestic or household service, involv
ing an amount exceeding Five thousand pesos (P5.000.00)

regardless of whether accompanied with a claim for reinstatement.

The Commission shall have exclusive appellate jurisdiction
over all cases decided by Labor Arbiters.
Cases arising from the interpretation or implementation of
collective bargaining agreements and those arising from the
interpretation or enforcement of company personnel policies
shall be disposed of by the Labor Arbiter by referring the
 same to the grievance machinery and voluntary arbitration
as may be provided in said agreements. (As amended by Sec
tion 9, Republic Act No. 6715, March 21, 1989).

Venue:
All cases which LA's have authority to hear and decide may
be filed in the Regional Arbitration Branch having jurisdic
tion over the work place of the complainant/petitioner.
For purposes of venue, workplace shall be understood as
the place or locality where the employee is regularly assigned
when the cause of action arose. It shall include the place
where the employee is supposed to report back after a tem
porary detail, assignment or travel. In the case of field em
ployees, as well as ambulant or itinerant workers, their
workplace is where They are regularly assigned or where they
are supposed to regularly receive their salaries/wages or work
instructions from and report the results of their assignment
to their employers.
Where two or more regional branches have jurisdiction over
the work place of the complainant or petitioner the branch
that shall first acquire jurisdiction over the case shall ex
clude the others.
When improper venue is not objected to before or at the time
of filing of position papers, such question shall be deemed
waived.
The venue of an action may be changed or transferred to a
different regional arbitration branch other than where the
complaint was filed by written agreement of the parties or
when the NLRC or LA before whom the case is pending so
orders, upon motion by the proper party in meritorious cases.
national Labor Relations Commission
attached to DOLE only for purposes of programs and policy
coordination. Composition: 1 Chairman and 14 members; 5 from labor; 5
from management and chairman and 4 from public sector.
May sit en bane or in 5 divisions, each composed of 3 mem-
bers.
Shall sit en banc only for promulgating rules and regulations governing the hearing
and disposition of cases before any of its divisions and regional branches and
formulating policies affecting its administration and operations.

Appointment and Qualifications 1. Chairman and

members:
a. members of the Bar;
b. engaged in the practice of law for at least 15 years;
c. with at least 5 years experience on labor-management
relations;
 d. preferably resident of the region where to hold office.
2. Executive Labor arbiters and labor arbiters:
; a. members of the Bar;
b. engaged in the practice of law for at least 7 years; c. with at least 3 years
experience on labor-management
relations; d. preferably resident of the region where to hold office.

'fingers of the NLRC:

1. Promulgate rules and regulations governing:
a. the hearing and disposition of cases before it and its re
gional branches;
b. those pertaining to its internal functions; and
c. rules and regulations as may be necessary to carry out
the purposes of the Labor Code.

2. Administer oaths, summon the parties to a controversy

issue subpoenas requiring the attendance and testimony
of witnesses or the production of such books, papers, con
tracts, records, statement of accounts, agreements, and oth
ers as may be material to a just determination of the matter
under investigation, and to testify in any investigation or
hearing conducted in pursuance of this Code;
3. Conduct investigation for the determination of a question
matter or controversy within its jurisdiction, proceed to hear
and determine the disputes in the absence of any party
thereto who has been summoned or served with notice to
appear, conduct its proceedings or any part thereof in public
or in private, adjourn its hearings to any time and place,
refer technical matters or accounts to an expert and to
accept his report as evidence after hearing of the parties upon
due notice, direct parties to be joined in or excluded from
the proceedings, correct, amend, or waive any error, defect
or irregularity whether in substance or in form, give all such
directions as it may deem necessary or expedient in the de
termination of the dispute before it, and dismiss any matter
or refrain from further hearing or from determining the dis
pute or part thereof, where it is trivial or where further pro
ceedings by the Commission are not necessary or desirable;
and
4. Hold any person in contempt directly or indirectly and im
pose appropriate penalties therefor in accordance with law.
5. Enjoin or restrain any:
a. actual or threatened commission of any or all prohibited
or unlawful acts; or
b. to require the performance of a particular action any labor
dispute which,
 if not restrained or performed forthwith, may cause grave or
irreparable damage to any party or render ineffectual any decision in
favor of such party.

* Requisite for issuance:

1. complaint made under oath;
2. hearing the testimony of witnesses in support
of the allegations thereof;
3. with opportunity for cross-examination;
4. hearing the testimony in opposition thereto,
if offered; and
5. only after a finding of fact by the Commis
sion, to the effect:
i. that prohibited or unlawful acts have been threatened and will be
committed and will be continued unless restrained;
Injunction Only Issued Against:
a. person or persons, association or
organization making the threat or
committing the prohibited or un
lawful act; or
b. person or persons, association or
organization actually authorizing
or ratifying the same after actual
knowledge thereof;
ii. that substantial and irreparable injury to complainant's property
will follow;
iii. that as to each item of relief to be granted, greater injury will be
inflicted upon complainant by the denial of relief than will be
inflicted upon defendants by the granting of relief;
iv. that complainant has no adequate remedy at law; and
v. that the public officers charged with the duty to protect
complainant's property are unable or unwilling to furnish
adequate protection.
Issuance_of_.a_Tgmporary Restraining Order (Requisites):
1. allegation in the complaint that unless a temporary
restraining order shall be issued without notice a substantial
and irreparable injury to complainant's property will be unavoidable;
2. testimony under oath, sufficient, if sustained, to
justify the Commission in issuing a temporary
injunction upon hearing after notice;
2. file an undertaking with adequate security
in an amount to be fixed by the Commission sufficient to recompense those
enjoined for:
 a. any loss, expense or damage caused by the
improvident or erroneous issuance of such
order or injunction, including;
b. all reasonable costs, together with a reason
able attorney's fee; and
c. expense of defense against the order or
against the granting of any injunctive relief
sought in the same proceeding and subse
quently denied by the Commission.
Such a temporary restraining order shall be effective for no longer than
twenty (20) days and shall become void at the expiration of said twenty
(20) days.
In any proceeding before the Commission or any of the
Labor Arbiters, the rules of evidence prevailing in
courts of law or equity shall not be controlling and
it is the spirit and intention of this Code that the Com
mission and its members and the Labor Arbiters shall
use every and all reasonable means to ascertain the
facts in each case speedily and objectively and
without regard to technicalities of law or proce
dure, all in the interest of due process (Quantum of
Evidence required: Substantial Evidence).
In any proceeding before the Commission or any Labor
Arbiter, the parties may be represented by legal counsel
but it shall be the duty of the Chairman, any Presid
ing Commissioner or Commissioner or any Labor
Arbiter to exercise complete control of the proceedings at all stages.
 Labor Arbiter shall exert all efforts towards the amicable settlement of a labor
dispute within his jurisdiction on or before the first hearing. The same rule shall
apply to the Commission in the exercise of its original jurisdiction.

Period to appeal from decision, awards, or orders of the LA to the NLRC: ten (10)
calendar days from receipt of such decisions, awards, or orders.

grounds:
a. If there is prima facie evidence of abuse of discretion on
the part of the Labor Arbiter;
b. If the decision, order or award was secured through fraud
or coercion, including graft and corruption;
c. If made purely on questions of law; and
d. If serious errors in the findings of facts are raised which
would cause grave or irreparable damage or injury to the
appellant.
In case of a judgment involving a monetary award, an appeal by the employer may be
perfected only upon the posting of a cash or surety bond issued by a reputable bond-
ing company duly accredited by the Commission in the amount equivalent to the
monetary award in the judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed or separated
employee, insofar as the reinstatement aspect is concerned, shall immediately be ex-
ecutory, even pending appeal. The employee shall either be admitted back to work
under the same terms and conditions prevailing prior to his dismissal or separation or, at
the option of the employer, merely reinstated in the payroll. The posting of a bond by
the employer shall not stay the execution for reinstatement provided herein.
In all cases, the appellant shall furnish a copy of the memorandum of appeal to
the other party who shall file an answer not later than ten (10) calendar
days from receipt thereof.
The Commission shall decide all cases within twenty (20) calendar days from
receipt of the answer of the appellee. The decision of the Commission shall be
final and executory after ten (10) calendar days from receipt thereof by the
parties.

Appeal from the NLRC:

None. But aggrieved party may avail of the special civil action of certiorari under
Section 4, Rule 65 of the 1997 Rules of Civil Procedure to the Court of Appeals
within 60 days from notice of judgment, order or resolution sought to be assailed.

Bureau of Labor Relations

The BLR and the Labor Relations Divisions in the regional offices of the Department
of Labor, shall have original and exclusive authority to act, at their own initiative or
upon request of either or both parties, on:
a. all inter-union and intra-union conflicts,
 b. all disputes, grievances or problems arising from or af
fecting labor-management relations in all
workplaces, whether agricultural or non-agricultural,
except those arising from the implementation or inter
pretation of collective bargaining agreements which
shall be the subject of grievance procedure and/or vol
untary arbitration.
The BLR shall have fifteen (15) working days to act on labor cases before it, subject to
extension by agreement of the parties.

[ntra-Union Dispute any conflict between and among union members, and includes
all disputes or grievances arising from any violation of or disagreement over any
provision of the constitution and by-laws of a union, including cases arising from
chartering or affiliation of labor organizations or from
 any violation of the rights and conditions of union member-inter-Union Dispute
any conflict between and among legitimate labor organizations involving
questions of representation for purposes of collective bargaining. It also includes all
other conflicts which legitimate labor organizations may have against each other
based on any violations of their rights as labor organizations.
If the issue involves the entire membership of the union, the complaint shall be
supported by at least 30% of the membership of the union.

Labor Organizations
Rjght of Self-Organization:
4 Constitutional provisions: The State shall guarantee the rights of all workers
to self-organization.
entitled to such right = all workers in:
C 1. commercial;
I 2. industrial;
A 3. agricultural enterprises;
R 4. religious;

M 5. medical; and
E 6. educational institution; whether for profit or not.

right to self-organize, form, assist or join labor union for purpose of collective
bargaining;
A 7. ambulant;
I 8. intermittent;
I 9. itinerant workers;
S 10. self-employed people;
R 11. rural workers; and
W 12. those without any definite employer.
KEY: MARI'CARSEW

Kinds of Labor Organizations:

1. Independent Labor Union possesses a registration of its
own;
2. Local or Chapter its legal personality is secured through
a charter from a national union;
3. Federation and National Unions any labor organization
with at least ten locals/chapters or affiliates each of which
must be a duly certified or recognized collective bargaining
agent;
4. Legitimate Labor Organization labor organization duly
registered with the DOLE, and includes any branch or local
thereof;
5. Industry Union any group of legitimate labor organiza
tions operating within an identified industry, organized for
collective bargaining or for dealing with employers concern
ing terms and conditions of employment within an industry,
or for participating in the formulation of social and employ
ment policies, standards and programs in such industry,
which is duly registered with the DOLE;
6. Company Union a labor organization which, in whole or
in part, is employer-controlled or employer-dominated. Un
ions of this type may be of any composition and the deter
mining factor is the absence or presence of persuasive em
ployer-influence or control. Prohibited by law;
Manifestations of Company-Dominated Union:
a. Initiation of company union idea;
b. Financial support of the union;
c. Employer encouragement and assistance; or
d. Supervisory assistance.
7. Trade Union Center or Associations any group of registered
national unions or federations organized for the mutual aid and protection
of its members, for assisting such
members in collective bargaining, or for participating in the
formulation of social and employment policies, standards and
programs, which is duly registered with the DOLE.

a * Alliance aggregation of unions existing in one line of industry, or in a

conglomerate, a group of franchisees, a geographical area, or an
industrial center; and
Craft Organization a labor union which is organized along trade or
guild lines, having within its jurisdiction all persons plying a given
trade or trades, without regard to the industry in which the particular
artisan is employed.

two Broad Purposes of Labor Organizations:

Collective bargaining; and Dealing with the
employer.
Registration of Labor Organizations: 1. fifty pesos
registration fee;
2. names of officers, their addresses, principal address of labor
organization, minutes of organizational meeting, and the list of
participants;
 3. names of members at least 20%; 4. annual
financial reports;
5. constitution and by laws; minutes of adoption and ratification;
;6. sworn statement that there is no certified bargaining agent; in case
there is an existing CBA, sworn statement that application is filed
during last 60 days of agreement; and
7 . application and all accompanying documents shall verified under
oath by Secretary or Treasurer as the case maybe and attested to by
the President.

If federation, plus:
a. proof of affiliation 10 locals in industry it operates in; and
b. names and addresses of companies where they operate.
significance of Registration as labor organization:
acquisition of legal personality;
represent its members for collective bargaining;

3. to be certified as exclusive representative of all employees

in appropriate bargaining unit for collective bargaining;
4. to be furnished by employer with annual audited financial
statements, and other similar records or documents;
5. to own property, real or personal, for the use and benefit of
the labor organization and its members;
3. to sue and be sued in its registered name; and
6. to undertake all other activities designed to benefit the or
ganization and its members including cooperatives, housing,
welfare and other projects not contrary to law.

Workers' Association :
Not necessarily a union. Defined as any association of work ers organized for the
mutual aid and protection of its members or for any legitimate purpose other than
collective bargaining.

Rights and Conditions of Union Membership :

1. No arbitrary or excessive initiation fees or fines and
forfeitures;
2. right to financial reports on transactions;
3. direct election of officers by secret ballot at intervals of 5
years;
4. right to participate through secret balloting in policy mak
ing;
 5. right against admission of subversives and engagement in
subversive activity;
6. right against election of persons convicted of crime involv
ing moral turpitude to elective and administrative posit ions:
7. right against collection and disbursement of money unless
authorized by its constitution and by-laws;
8. right to be issued receipts for fees, dues or contributions paid:
9. right against application of funds except when expressly pro
vided by constitution and by-laws or authorized by w r i t t e n
resolution of majority of members;
10. in all income to be recorded and all expenditures properly receipted;
11. officers only entitled to salaries and expenses due their positions as provided by
constitution and by-laws or authorized by written resolution of majority of
members;
12. accounting of all organizational funds;
13.
right to inspect books of accounts and other financial records;
14. right against special assessments and other fees unless au
thorized by written resolution of majority of members;
15. right against check-offs other than for mandatory activities
under the Labor Code;
16. right to be informed of the constitution and by-laws, CBA, prevailing labor
relations systems and all rights and obligations under existing labor laws.
Employees Entitled to Join Labor Unions: R 1. Rank-and-file
employees;
C 2. Government employees in Civil Service but not to members of AFP and PNP;
.. C 3. Employees of government corporations established under Corporation Code;
4. Supervisory employees but not to rank-and-file unions;
S 5. Security personnel; and
A 6. Aliens with valid employment permits but subject to pres
ence of reciprocity agreement between Philippines and
: his country.
KEY: C A R S2

employees NOT Entitled to Join Labor Unions:

1. Managerial employees;
2. Subversives or members of subversive organizations;

3. Employees of cooperatives who are at the same time members; and

4. Employees who may be excluded by a CBA which classifies union and non-union
members.

Grounds for Cancellation of Union Registration :

 1. misrepresentation in adoption, ratification of constitution,
false statement made in by-laws;
2. failure to submit documents of ratification of constitution;
3. misrepresentation }
4. false statement } in election of officers;
5. fraud )
6. failure to submit financial reports;
7. acting as labor contractor;
8. entering into CBA with conditions below minimum;
9. asking, accepting attorney's fees;
10. checking off assessment without authorization;
11. failure to submit list of members; and
12. failure to comply with requirements.

Rights of Legitimate Labor Organizations :

A legitimate labor organization shall have the right:
(a) To act as the representative of its members for the pur
pose of collective bargaining;
(b) To be certified as the exclusive representative of all the
employees in aa appropriate bargaining unit for purposes of
collective bargaining;
(c) To be furnished by the employer, upon written request,
with its annual audited financial statements, including
the balance sheet and the profit and loss statement, within
thirty (30) calendar days from the date of receipt of the re
quest, after the union has been duly recognized by the em
ployer or certified as the sole and exclusive bargaining rep
resentative of the employees in the bargaining unit, or within
sixty (60) calendar days before the expiration of the existing
collective bargaining agreement, or during the collective bar
gaining negotiation;
MA) To own property, real or personal, for the use and benefit of the labor
organization and its members;
e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its
members, including cooperative, housing, welfare and other projects not contrary
to law.
Notwithstanding any provision of a general or special law to the contrary, the
income and the properties of legitimate labor organizations, including grants,
endowments, gifts, donations and contributions they may receive from fraternal
and similar organizations, local or foreign, which are actually, directly and exclusively
used for their lawful purposes, shall be free from taxes, duties and other
assessments. The exemptions provided herein may be withdrawn only by a special
law expressly repealing this provision.

Unfair Labor Practice

Unfair Labor Practice violates the constitutional rights of workers and employees
to self-organization, are inimical to the legitimate interests of both labor and
management, including their rights to bargain collectively and otherwise deal with
each other in an atmosphere of freedom and mutual respect, disrupt industrial
peace and hinder the promotion of healthy and stable labor-management relations.
Unfair labor practices are not only violations of the civil rights of both labor and
management, but are also criminal offenses against the state, which shall be subject
to prosecution and punishment.

Unfair Labor Practices Committed By Employer:

1. to interfere, restrain, coerce right to organize;
2. require person not to join union or to withdraw from union;
3. contract out services of unionists;
4. initiate, dominate, assist union;
6. 5. discriminate in terms of employment to encourage/discour-I age dismiss,
discharge employee for having given testimony;
7. violate duty to bargain collectively;
8. pay negotiation or attorney's fees; as part of settlement; and
9. flagrant refusal to comply with economic terms of CBA.
Unfair Labor Practices Committed By Employee Union:
1. to restrain or coerce right to organization;
2. to cause employer to discriminate;
3. violate duty to bargain collectively;
4. cause employer to pay services not performed;
5. ask for negotiation or attorney's fees as part of settlement;
and
6. violate CBA.
 Featherbedding when a union cause or attempt to cause employer to pay for
services not performed.
Yellow Dog Contract it is a promise exacted from workers as a condition of
employment that they are not to belong to, or attempt to foster, a union during their
period of employment.
Runaway Shop ULP act whereby an industrial plant is moved by its owners from one
location to another to escape union labor regulations or state laws, or where the
plant was removed to a new location in order to discriminate against employees at
the old plant because of their union activities.
Blacklist list of persons marked out for special avoidance, antagonism or enmity on
the part of those who prepare the list, or those among whom it is intended to
circulate, as where a trade union "blacklists" workmen who refuse to conform to its
rules.

Certification Election
investigation of a non-adversary, fact-finding character to
determine the exclusive representative of employees in a bar
gaining unit for the purpose of collective bargaining.

labor organizations exist primarily for the purpose of collective bargaining or of

dealing with the employer concerning
terms and conditions of employment
consent election agreed one, purpose being merely to determine the issue of majority
representation of all workers in a bargaining unit. No more direct certification.

Rules Preventing Holding of Certification Election:

1.Contract Bar Rule that a valid and existing CBA is a bar to a petition for
certification election.
Exceptions:
a. if petition is made within 60 days before expiration of the CBA, known as the
Freedom period;
b. if the CBA is defective or inadequate in substance, as where it does not fulfill the
legal requirements of providing for grievance machinery or voluntary arbitration;
and
e. if it has not fulfilled the formal requirements of registration with the Bureau or the
Regional Office of the DOLE which requirements are held to be mandatory.
2. Certification-Year Rule within one year from date of ; issuance of final
certification result;
3. Deadlock Bar Rule where a bargaining deadlock to which an incumbent or
certified bargaining agent is a party has been submitted to conciliation or
arbitration, or has become the subject of a valid notice of strike or lockout
4. Negotiation Bar if the duly recognized or certified union has commenced
negotiation with the employer within the one year period and the negotiation is on-
going;
Charge of Company Unionism; and 6. Res Judicata.
 Petitions For Certification Elections: instances:
1, in case representation issue exists in an organized establishment;
. 2. in unorganized establishment, even without representation issue.

In Organized Establishments, requisites of petition :

a. verified petition questioning the majority status of in
cumbent;
b. filed within Freedom period;
c. supported by written consent of at least 25% of all em
ployees of bargaining unit.

Where no petition for certification election is filed at the_ expiration of the freedom
period, the employer shall continue to recognize the majority status of the
incumbent bargaining agent.

In Unorganized Establishments Where There Is No Certi fied Bargaining Agent:

a certification election shall automatically be conducted
by the Med-arbiter upon the filing of a petition by legiti
mate labor organization or by the employer in case there
was a demand for him to collectively bargain with his
employees.
requisite of petition: only a verified petition will suf
fice.

Participants in Certification Election :

as a rule, all employees in bargaining unit regardless of the
period or status of their employment.
exceptions:
1. Managerial employees;
2. Workers without employment relationship in establish
ment concerned; and
3. Employees of a cooperative who are also members of the
same.

Procedure in Certification Elections:

1. Election by secret balloting:
2. Conducted by Labor Relations Division of Regional office:
3. Representatives of contending unions have right to attend
balloting as inspectors;
 Notices to be posted in 2 conspicuous places of the establishment at least 5 working
days before election containing:
a. date of election;
b. names of contending parties;
c. description of bargaining unit; and
d. list of eligible voters;
5. Med-arbiter upon receipt of results and no protests filed, shall certify the winner;
6. For a valid election, at least majority of all eligible voters in the unit must have
cast their votes;
7. Labor union receiving majority of the valid votes cast shall V. be certified as the
exclusive bargaining agent of all the workers in the unit;
8. When an election which provides for 3 or more choices results in no choice receiving a
majority of the valid votes cast, a run-off election shall be conducted between labor
unions
receiving the two highest number of votes, provided that the total number of votes for
all contending unions is at least 50% of the number of votes cast; and
9. Any party to certification election may appeal from order on result of election as
determined by the Med-arbiter directly, to the SOLE on ground that rules and
regulations or parts thereof established by Secretary for the conduct of election have
been violated. Such appeal shall be decided within 15 calendar days.

requisites for Run-off Election:

1. A valid election took place because a majority of the CBU members voted;
2.- Election presented at least three choices, including no-union;
3. Not one of the choices obtained the majority of the valid votes:
4. Total votes for the unions is at least 50% of the votes cast; and

5. There is no unresolved challenge of voter or election protest Grounds for Dismissal

of Petition for Certification Election :

1. Petitioner is not listed by the Regional Office or BLR in its
registry of legitimate labor organizations, or that its legal
personality has been revoked or cancelled with finality;
2. Petition was filed before or after the freedom period of a duly
registered collective bargaining agreement; provided, that
the sixty-day freedom period based on the original collective
bargaining agreement shall not be affected by any amend
ment, extension or renewal of the collective bargaining agreement;
3. The petition was filed within one (1) year from a valid certi
fication, consent, or run-off election and no appeal on the
 results is pending thereon, or from recording of the fact of
voluntary recognition with the regional office;
4. A duly recognized or certified union has commenced nego
tiations with the employer in accordance with Art. 250 of
the Labor Code within the one-year period or there exists a
bargaining deadlock which had been submitted to concilia
tion or arbitration or had become the subject of a valid no
tice of strike or lockout to which an incumbent certified bar
gaining agent is a party;
5. In case of an organized establishment, failure to submit the
25% support requirement upon filing of the petition; or
6. Lack of interest or withdrawal on the part of the petitioner;
provided, that where a motion for intervention has been filed
during the freedom period, said motion shall be deemed and
disposed of as an independent petition for certification elec
tion if it complies with all the requisites for the filing of a
petition for certification election.

Collective Bargaining

Collective Bargaining right guaranteed by the Constitution to enable workers to

negotiate with the employer on the same level, and with more persuasiveness than
if they were to bargain individually and independently lor the improvement of their
respective conditions, duty to Bargain Collectively the law imposes this duty
on the parties and refusal to do so shall constitute ULP. Performance of a Mutual
Obligation To: a. meet and convene:
(i) promptly and expeditiously;
(ii) in good faith for the purpose of
b. negotiating an agreement with respect to: (i) wages, (ii) hours of work, (iii)
all other terms and conditions of employment, (iv) including proposals for
adjusting any grievances, or (v) questions arising under such agreement, and (vi)
executing a contract incorporating such agreement if requested by either party, c.
but such duty shall not compel any party to agree to a proposal or to make any
concession.

ULP's in Bargaining:
1- Failure or refusal to meet and convene; 2. Evading the mandatory subjects of
bargaining; 3. Bad faith in bargaining, including failure or refusal to execute the
collective agreement, if requested; and
4. Gross violation of the CBA.
Surface Bargaining sophisticated pretense in the form of apparent bargaining. Does
not satisfy the statutory duty to bargain.
matters considered Mandatory Subjects of Bargaining: w 1. Wages and other types of
compensation;
 H 2. Working hours and working days including work shift-
V 3. Vacations and holidays;
B 4. Bonuses;
P 5. Pensions and retirement plans;
S 6. Seniority;
T 7. Transfer;
L 8. Lay-offs;
W 9. Employee workloads;
R 10. Work rules and regulations;
R 11. Rent of company houses; and
S 12. Union Security arrangements.
KEY: S2 W R2 B L T P H V

Jurisdictional Preconditions of Collective Bargaining:

1. Possession of the status of majority representation of the
employees' representative in accordance with any of the
means of selection or designation provided for by the Labor
Code;
2. Proof of majority representation; and
3. A demand to bargain under Art. 250, par. (a) of the Labor
Code.

Please note the procedure in collective bargaining:

Union Security Arrangements

Kinds:
1. Agency Fee statutory right of bargaining union whereby employees of a
bargaining unit who are not members of the collective bargaining agent may be
assessed reasonable fee equivalent to the dues and other fees paid by members of
the bargaining agent, if such non-member accept the benefits under collective
agreement. Requisites:
a. he is a member of the bargaining unit as a rank-and-file
employee;
b. he avails of the benefits of existing CBA; and
c. not a member of any union.
2. Closed Shop form of union security whereby only union
members can be hired, and the workers must remain union
members as a condition of continued employment. It does
not apply to employees who are already members of another
union at time of signing of CBA.
 3. Union Shop union security stipulation which is but one
step less complete than a closed-shop. It does not require
membership as a condition for hiring but requires that those
already hired become union-members within a prescribed
period of time after hiring, or after effective date of contract
where the union shop agreement succeeds hiring in point of
time.
4. Modified Union Shop Agreement agreement with a
provision exempting certain groups of employees from its op
eration, such as old employees already with the company at
a designated date, key personnel, persons with religious scru
ples in joining labor unions.
5. Maintenance of Membership requires as a condition of
continued employment, membership in good standing in the
contracting union.
6. Exclusive Bargaining Shop the union is recognized as
the exclusive bargaining agent for all employees, whether
union members or not.
7. Bargaining for Members Only the union is recognized
as the bargaining agent only for its own members.

Points
Remember with Regard to Term of Collective Bargaining Agreement:
1. 5 years.
2. All other provisions of the CBA shall be renegotiated not later than 3 years after
its execution.
3.Any agreement on such other provisions entered into within (6 months from date of expiry
of term of such other provisions as fixed in the CBA, shall retroact to the day
immediately following such date.
4. If any such agreement is entered into beyond 6 months, the parties shall agree on
duration of retroactivity thereof.
5. In case of a deadlock in the renegotiation of the CBA, par ties may exercise their
rights under the Labor Code.
Substitutionary Doctrine employees cannot revoke the validly executed collective
bargaining contract with their employer by the simple expedient of changing their
bargaining agent.
Wiley Doctrine the disappearance by merger of a corporate employer which has
entered into a collective bargaining agreement with a union does not
automatically terminate all rights of the employees covered by the agreement,
even though the merger is for genuine business reasons.
'formal Requirements of Collective Bargaining Agreements :
Within 30 days from execution of a CBA, parties shall submit copies of the same
directly to the BLR or the regional office of the DOLE for registration accompanied
with verified proofs of its posting in 2 conspicuous places in the place of work and
ratification by the majority of all workers in the bargaining unit.
The BLR or the regional offices shall act upon the applica tion for registration of
such CBA within 5 calendar days from receipt.
Management Prerogative right of employer to regulate according to his own
discretion all aspects of employment including employment, hiring, time, tools, transfers of
employees, lay-off and discipline, dismissal and recall of employee.

Collective Bargaining Unit group of employees sharing mutual interests within a

given employer unit, comprised of all or less than all of the entire body of
employees in the employer unit or any specific occupational or geographical
grouping within such employer unit.

Test to Determine Appropriateness of Bargaining Unit: members' community of

interest.
Factors Manifesting Community of Interests :
1. Similarity in the scale and manner of determining earnings;
2. Similarity in employment benefits, hours work and other
terms and conditions of employment;
3. Similarity in the kinds of work performed;
3. Similarity in the qualifications, skills and training of the
employees;
4. Frequency of contact or interchange among employees;
5. Geographic proximity;
6. Continuity or integration of production processes;
4. Common supervision and determination of labor-relations
policy;
7. History of collective bargaining;
10. Desires of the affected employees (Globe Doctrine); or
11. Extent of union organization.
globe Doctrine Desires of the employees with respect to their inclusion in the
bargaining unit is not controlling, it is a factor which would be taken into
consideration in reaching a decision.

Strikes and Lockouts

characteristics of a strike.:

1. there must be employer-employee relationship between strikers and person or persons

against whom .strike is called;
 existence of industrial or labor dispute between parties, motivating the use by labor
of this economic weapon for persuasion and coercion; and

Despite the work stoppage, the employment relationship continues.

factors Affecting Legality of Strike:
1. when it is contrary to specific prohibition of law, illegal; 2. when it violates a
specific requirement of law; 3. when it is declared for an unlawful purpose; 4.
when it employs unlawful means in the pursuit of its objective;
5. when it is declared in violation of an existing injunction; or 6. when it is contrary
to an existing agreement.
Slowdown strike on the installment plan. It is the willful reduction in the rate of
work by concerted action of workers for the purpose of restricting the output of
the employer in relation to a labor dispute.
Important Factors In Strikes and Lockouts 1. Cause lawful
causes for strikes: -a. bargaining deadlocks;
b. ULP; and
c. Union-busting dismissal from employment of union-
officers duly elected in accordance with union constitu
tion and by-laws, where existence of the union is threat
ened.

No strike or lockout due to inter-union or intra-union dispute.

2. Party may be:
a. certified bargaining agent due to ULP and bargaining
deadlock;
b. employer (lockout) on same grounds;
c. legitimate labor organization due to ULP only
3. Notice in cases of:
a. bargaining deadlocks; notice of strike or lockout filed with
regional branch of NCMB at least 30 days before intended
date; copy served to other party;
b. ULP period of notice shall be 15 days; and
c. Union-busting the 15 day cooling-off period shall not
apply and the union may take action immediately after
strike vote is conducted and the results thereof submit
ted to the DOLE.
During cooling-off period, DOLE shall exert effort at mediation and conciliation
to effect a voluntary settlement. If dispute remains unsettled, union may
declare a strike or the employer may declare lockout.
4. Strike and Lockout Vote:
 a. strike approval by majority of the total membership
in bargaining unit concerned by secret ballot in meeting
called for that purpose.
b. lockout approval by majority of board of directors of
employer, corporation or association, or the partners in
a partnership by secret ballot in meeting called for that
purpose.

Conciliation Efforts
1. Improved offer balloting DOLE shall conduct a refer
endum by secret balloting on the improved offer of the em
ployer on or before the 30th day of the strike.
2. Reduced offer balloting DOLE shall likewise conduct
a referendum by secret balloting on the reduced offer of un
ion on or before the 30th day of the lockout.

Other Concerted Activities:

1. Collective letter to voice out grievances;
2. Publicity;
3. Placards and banners;
4. Speeches, music and broadcast;
I
5. Boycott a combination of many to cause a loss to one
person by causing others, against their will, to withdraw from him their
beneficial business intercourse through threats that unless others do so, the many
will cause similar loss to him or them;
6 Slowdown method by which, without seeking a complete stoppage of work,
retard production and distribution in an effort to compel compliance by the
employer with the labor demands made upon him.

prohibited Activities in Strike and Lockouts :

1. no strike/lockout without bargaining collectively, filed no tice, or strike/lockout vote

obtained and reported;
2. obstruct, impede peaceful picketing;
3. employer use strike-breaker or person act as strike-breaker;
4. public official/employee or members of AFP/PNP or other armed persons bring
in replacements; and
5. act of violence in picketing, obstruct ingress/egress.

liabilities of Striking Workers in an Illegal Strike :

1 Union officers who knowingly participates in illegal strike.
2. Worker or union officer who knowingly participates in the commission of illegal
acts;
maybe declared to have lost their employment status.
Employer who dismissed an employee on account of illegal
1 lockout, liable to reinstate and pay such employee back-

post-Employment
security of Tenure
Constitutional and statutory right of workers applies only to regular employees

Regular employees engaged to perform activities which are usually necessary or

desirable in the usual business or trade of employer (Art. 280, Labor Code).
Except:
1. Project employees employment fixed for specific project or undertaking,
completion or termination of which has been determined at the time of engagement.
Exception to the Exception: if project employee acquires regular status as when
a. There is a continuous rehiring of project employees even
after cessation of a project; and
b. The tasked performed by the alleged "project employee"
are vital, necessary and indispensable to the usual busi
ness or trade of the employer.
2. Seasonal employees work or service performed is seasonal, employment deemed
to last only for the duration of the season. Seasonal employees who are consistently
rehired after every season are considered merely on leaves of absence with pay.
Casual employees those not falling under regular employees.
however: considered regular to activity employed after 1
year of service, whether continuous or broken and em
ployment shall continue while activity exists (Art. 280,
Labor Code).
Probationary employees subject to probation not exceeding 6 months
services may be terminated with just cause or when failed
to qualify as regular in accordance with reasonable stand
ards previously set and made known to him beforehand.
Contractual employees hired by agreement for definite term.
deemed regular for the duration of the contract, provided:
a. activity usually and necessary to employer; and
b. on the job for more than 1 year.
just causes for Termination by Employer (Art. 282, Labor Code): serious misconduct,
willful disobedience; gross/habitual neglect of duty; fraud or willful breach of trust; 4.
commission of crime or offense; or 5- other analogous causes. KEY: M N F C O

Authorised Causes for Termination:

1. Reduction of Personnel due to installation of labor-saving devices (Art. 283, Labor
Code);
R 2. Reduction of Personnel due to redundancy;
L 3. ..Retrenchment to prevent loss;
C 4. Closure of establishment or cessation of operations; and
D 5. Disease (Art. 284, Labor Code). KEY: S R L C D

dismissal under authorized causes subject to :

1.Written notice to worker and DOLE at least 1 month before (Sec. 2, Rule XIV, Book V,
Implementing Rules and Regulations); and
2. Separation pay.
equal to at least 1 month pay or at least 1 month pay for every year of service,
whichever is higher.

In case of retrenchment, closures not due to serious business losses or financial

reverses: separation pay equal to
at least 1 month pay or at least 1/2 month pay for every
year of service, whichever is higher. fraction of at least 6 months
considered 1 year.

Termination due to disease, with separation pay but no prior notice.

Distinctions
Just Causes Authorized Causes
a. With separation pay
a. No separation pay b. Not subject to review but
b. Subject to review before must comply with the re-
labor arbiter in arbitration quirements
process

c. Provide due process to c. Just comply with the re-

worker quirements

Due Process Requirement in Case of Dismissal Due to Just

1. Employer shall furnish worker at least two (2) written no
tice containing statement of cause/s for dismissal;
2. Worker given ample opportunity to be heard and defend
self with the assistance of representative, if he so desires; and
3. Decision made by employer without prejudice to right to
contest validity or legality of dismissal by filing complaint
with the arbitration division of the regional office of the
NLRC.

Reliefs in Illegal Dismissal Cases:

Employee who is unjustly dismissed from work shall be entitled to reinstatement

without loss of seniority rights and
other privileges and to his full back wages, inclusive of
allowances and to his other benefits or their monetary
equivalent computed from the time his compensation was
withheld from him up to the time of actual reinstatement
Separation pay will be granted in lieu of reinstatement in
case relations between employer and employee is strained.
(Doctrine of Strained Relations)

constructive Dismissals an employee who quits his work because of the

employer's unreasonable, humiliating or demeaning actuations which render
continued work impossible is deemed to have been illegally dismissed.

just cause for Termination by Employee:

1. serious insult;
2. inhuman and unbearable treatment; 3. commission of a
crime or offense; or 4. other analogous causes. KEY: I2 C O
totality of Conduct doctrine whereby the culpability of an
employer's remarks are to be evaluated not only on the basis
of their implicit implication, but are to be appraised against

the background of and in conjunction

with collateral circumstances.

employment Not Deemed Terminated when:

1. bona fide suspension of the operations of a business or undertaking for a period of
not exceeding 6 months; and
2. fulfillment by employee of a military or civic duty. Retirement From Service primarily
Controlling Provisions: Pertinent provisions of the CBA; or Other applicable employment
contract. In both instances, retirement benefits shall not be less than or in the absence of
the above:
I. Retirable Age
 a. Optional: 60 years old or more but not beyond 65
and served for at least 5 years.
b. Compulsory: 65 years old.
c. For Underground Mine Workers.

i. Optional: 50 years old or more but not beyond 60 and served for at
least 5 years.
ii. Compulsory: 60 years old II. Benefits:
a. All retirement benefits as he may have earned
under existing laws and any collective bargain
ing agreement and other agreements;
b. Retirement pay equivalent to at least one-half
(1/2) month salary for every year of service with
a fraction of at least six (6) months being consid
ered one year.
Unless the parties provide for broader inclusions, term "one-half (1/2)
month salary" shall mean fifteen (15) days plus one-twelfth (1/12) of
the 13th month pay and the cash equivalent of not more than five (5)
days of service incentive leaves.
Retail, service and agricultural establishments or operations employing not more
than ten (10) employees or workers are exempted from the coverage.

SOCIAL LEGISLATION Employees' Compensation and

State Insurance Fund

Workmen's Compensation laws providing for compensation for loss resulting from the
injury, disablement, or death of workmen through industrial accident, casualty or
disease.
Employe means any person compulsorily covered by the GSIS under Commonwealth
Act Numbered One hundred eighty-six, as amended, including the members of the
Armed Forces of the Philippines, and any person employed as casual, emergency,
temporary, substitute or contractual, or any person compulsorily covered by the
SSS under Republic Act Numbered Eleven hundred sixty-one, as amended.
Dependent means the legitimate, legitimated or legally adopted or acknowledged
natural child who is unmarried, not gain-
 fully employed, and not over twenty-one (21) years of age or
over twenty-one (21) years of age provided he is incapaci-

tated and incapable of self-support due to a physical or mental defect which is congenital
or acquired during minority;
the legitimate spouse living with the employee and the par ents of said employee
wholly dependent upon him for regular support.
beneficiaries means the dependent spouse until he/she remarries and dependent children,
who are the primary beneficiaries. In their absence, the dependent parents and subject
III: to the restrictions imposed on dependent children, the ille gitimate children and
legitimate descendants, who are the secondary beneficiaries: Provided, That the
dependent acknowledged natural child shall be considered as a primary beneficiary
when there are no other dependent children who are qualified and eligible for monthly
income benefit.
Injury means any harmful change in the human organism from I any accident arising
out of and in the course of the employment.

Sickness means any illness definitely accepted as an occupational disease listed by

the ECC, or any illness caused by employment subject to proof that the risk of
contracting the same is increased by working conditions. For this purpose, the ECC is
empowered to determine and approve occupational diseases and work-related illnesses
that may be considered compensable based on peculiar hazards of employ ment.
death means loss of life resulting from injury or sickness.
Disability means loss or impairment of a physical or mental function resulting from
injury or sickness.
Compensation means all payments made under this Fund for income benefits and
medical or related benefits.

Extent, of liability:
Unless otherwise provided, the liability of the Fund shall be exclusive and in place
of all other liabilities of the employer to the employee, his dependents or anyone
otherwise entitled to receive damages on behalf of the employee or his dependents.
Liability of third party/ies :
When the disability or death is caused by circumstances cre
ating a legal liability against a third party, the disabled em
ployee or the dependents, in case of his death, shall be paid
by the Fund. In case benefit is paid, the Fund shall be sub rogate d to the rights
of t he di sa ble d employee or the
dependents, in case of his death, in accordance with the gen
eral law.
Where the Fund recovers from such third party damages in
excess of those paid or allowed, such excess shall be deliv
ered to the disabled employee or other persons entitled
thereto, after deducting the cost of proceedings and expenses
of the Fund.

Deprivation of the benefits :

Except as otherwise provided, no contract, regulation or de
vice whatsoever shall operate to deprive the employee or his
 dependents of any part of the income benefits and medical
or related services granted. Existing medical services being
provided by the employer shall be maintained and contin
ued to be enjoyed by their employees.

Employers' contributions :
Under such regulations as the Fund may prescribe, begin
ning as of the last day of the month when an employee's com
pulsory coverage takes effect and every month thereafter
during his employment, his employer shall prepare to re
mit to the Fund a contribution equivalent to one per
cent of his monthly salary credit.
Contributions under this Title shall be paid in their entirety
by the employer and any contract or device for the deduc
tions of any portion thereof from the wages or salaries of the
employees shall be null and void.
When a covered employee dies, becomes disabled or is separated from employment, h i s
employer's obligation to pay the'
monthly contribution arising from that employment shall
cease at the end of the month of contingency and during such
months that he is not receiving wages or salary.

government guarantee :

The Republic of the Philippines guarantees the benefits prescribed under

this Title, and accepts general responsibility for the solvency of the State
Insurance Fund. In case of any deficiency, the same shall be covered
by supplemental appropriations from the national government.

medical services :
Immediately after an employee contracts sickness or sustains an injury,
he shall be provided by the System during the subsequent period of his
disability with such medical services and appliances as the nature of
his sickness or injury and progress of his recovery may require,
subject to the expense limitation prescribed by the Commission.

Temporary total disability:

Any employee who sustains an injury or contracts sickness resulting
in temporary total disability shall, for each day ; of such a
disability or fraction thereof, be paid by the System an income benefit
equivalent to ninety percent of his average daily salary credit, subject
to the following conditions: the daily income benefit shall not be less than
Ten Pesos nor more than Ninety Pesos, nor paid for a continuous

period longer than one hundred twenty days, except as otherwise

provided for in the Rules, and the System shall be
notified of the injury or sickness.
permanent total disability :
Any employee who contracts sickness or sustains an injury
resulting in his permanent total disability shall, for each month
until his death, be paid during such a dis ability, an amount
equivalent to the monthly income benefit, plus ten percent thereof
for each dependent child. but not exceeding five, beginning with
the youngest and
without substitution: Provided. That the monthly income
benefit shall be the new amount of the monthly benefit
for a l l covered pensioners.

The monthly income benefit shall be guaranteed for five years, and shall be
suspended if the employee is gainfully employed, or recovers from his permanent
total disability, or fails to present himself for examination at least once a year
upon notice by the System.

The following Disabilities shall be Deemed Total and Permanent'

1. Temporary total disability lasting continuously for more than
one hundred twenty days, except as otherwise provided for
in the Rules;
2. Complete loss of sight of both eyes;
3. Loss of two limbs at or above the ankle or wrist;
4. Permanent complete paralysis of two limbs;
5. Brain injury resulting in incurable imbecility or insanity;
and
6. Such cases as determined by the Medical Director of the Sys
tem and approved by the Commission.

Permanent partial disability :

Any employee who contracts sickness or sustains an injury
resulting in permanent partial disability shall, for each
month not exceeding the period designated herein, be paid
by the System during such a disability an income benefit for
permanent total disability.
The benefit shall be paid for not more than the period desig
nated in the following schedules:

Complete and permanent No. of Months

loss of the use of
One thumb 10
One index finger 8
One middle finger 6
One ring finger 5
One little finger 3
One big toe 6

One toe 3
One arm 50
 One hand 39
One foot 31
One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
Sight of one eye 25

A loss of a wrist shall be considered as a loss of the hand, and a loss of an elbow shall be
considered as a loss of the arm. A loss of an ankle shall be considered as loss of a foot, and a
loss of a knee shall be considered as a loss of the leg. A loss of more than one joint shall be
considered as a loss of one-half of the whole finger or toe: Provided, That such a loss shall be
either the functional loss of the use or physical loss of the member.
In case of permanent partial disability less than the total loss of the member, the same
monthly income benefit shall be paid for a portion of the period established for the total
loss of the member in accordance with the proportion that the partial loss bears to the
total loss. If the result is a decimal fraction, the same shall be rounded off to the next
higher integer.
In cases of simultaneous loss of more than one member or a part thereof, the same monthly
income benefit shall be paid for a period equivalent to the sum of the periods established
for the loss of the member or the part thereof. If the result is a decimal fraction, the same
shall be rounded off to the next higher integer.
In cases of injuries or illnesses resulting in a permanent partial disability not listed in the
schedule, the benefit shall be an income benefit equivalent to the percentage of the per-
manent loss of the capacity to work.
The income benefit payable in case of permanent partial disability may be paid in monthly
pension or in lump sum if the period covered does not exceed one year. (As added by Section
7, Presidential, Decree No. 1368).

Death Benefits:
Pay to the primary beneficiaries upon the death of the covered employee an amount
equivalent to his monthly income benefit, plus ten percent thereof for each
dependent child but not exceeding five, beginning with the youngest and without
substitution, provided, however, that the monthly income benefit shall be guaranteed
for five years: provided, further, that if he has no primary beneficiary, the System
shall pay to his secondary beneficiaries the monthly income benefit but not to
exceed sixty months: Provided, finally, That the minimum death benefit shall not be
less than Fifteen thousand pesos.
Pay to the primary beneficiaries upon the death of a covered employee who is under
permanent total disability eighty percent of the monthly income benefit and his
dependents to the dependents' pension: Provided, That the marriage must have
been validly subsisting at the time of disability: Provided, further, That if he has no
primary beneficiary, the System shall pay to his secondary beneficiaries the
monthly pension excluding the dependents' pension, of the remaining balance of
the five-year guaranteed period: Provided, finally, That the minimum death benefit
shall not be less than Fifteen thousand pesos.
Funeral benefit:
A funeral benefit of Three thousand pesos (P3,000.00) shall
be paid upon the death of a covered employee or permanently
totally disabled pensioner.

Relationship and dependency:

All questions of relationship and dependency shall be deter
mined as of the time of death.

Second injuries:
If any employee under permanent partial disability suffers another injury which
results in a compensable disability greater than the previous injury, the State
Insurance Fund shall be liable for the income benefit of the new disability
Provided, That if the new disability is related to the previous disability, the System
shall be liable only for the difference in income benefits.

Assignment of benefits:
No claim for compensation is transferable or liable to tax, attachment,
garnishment, levy or seizure by or under any legal process whatsoever, either
before or after receipt by the person or persons entitled thereto, except to pay any
debt of the employee to the System.

Inscriptive period :
No claim for compensation shall be given due course unless said claim is filed
with the System within three (3) years from the time the cause of action accrued.

Bunkhouse Rule a rule in workmen's compensation which provides that, where the
employee is required to stay in the premises or quarters furnished by the employer,
injuries sustained therein are in the course of employment regardless of the time the
same occurred.

Going and Coming Rule (Street Peril Principle) in the absence of special
circumstances, an employee injured in going to and coming from his place of work
is excluded from benefits of the workmen's compensation act, except:
a. employee is proceeding to or from his work on the
premises of his employer;
b. employee is about to enter or about to leave the premises
of his employer by way of the exclusive or customary
means of ingress and egress;
c. employee is charged with a special errand; and
d. employer, as an incident to the employment, provides
means of transportation to and from the place of employ
ment.
increased Risk Theory disease is deemed compensable when the risk of contracting
the same is increased by the working.
 conditions which a laborer or employee is exposed, provided the disease is work
connected.
Personal Doctrine injuries occurring on the premises during a regular lunch hour
arise in the course of employment, even though the interval is technically outside the
regular hours of employment in the sense that the worker receives no pay for the time
and is no degree under the control of the employer, being free to go where he pleases
is compensable. Work Connected Rule injuries sustained by an employee while in the
course of his employment as a result of an assault by another employee, or by a third
person, no question of the injured employee's own culpability being involved, are
compensable where a rational mind is able to trace the injury to a cause set in motion
by the nature of the employment, or some other condition, obligation or incident
therein, and not by some other agency.

Social Security Act of 1997 Republic Act No. 8282

The Social Security System (SSS)

a corporate body, with principal place of business in Metro
Manila, Philippines.
directed and controlled by a Social Security Commission,
hereinafter referred to as 'Commission,' composed of:
1. Secretary of Labor and Employment or his duly desig
nated undersecretary;
2. SSS president; and
3. seven (7) appointive members, three (3) of whom shall
represent the workers' group, at least one of whom shall
be a woman; three (3), the employers' group, at least one
(1) of whom shall be a woman; and one (1), the general
public whose representative shall have adequate knowl
edge and experience regarding social security, to be ap
pointed by the President of the Philippines.
The six (6) members representing workers and employers shall be chosen from
among the nominees of workers' and employers' organizations, respectively.
The Chairman of the Commission shall be designated
by the President of the Philippines from among its
members.
The term of the appointive members shall be three
(3) years.

The general conduct of the operations and management functions of the SSS shall be
vested in the SSS President who shall serve as the chief executive officer
immediately responsible for carrying out the program of the SSS and the policies of
the Commission
He shall be appointed by the President.

Settlement of Disputes
 Any dispute arising with respect to coverage, benefits, con
tributions and penalties or any other matter related thereto,
shall be cognizable by the Commission, and any case filed
with respect thereto shall be heard by the Commission, or
any of its members, or by hearing officers' duly authorized
by the Commission and decided within twenty (20) days af
ter the submission of the evidence. The filing, determina
tion and settlement of disputes shall be governed by the rules
| and regulations promulgated by the Commission.
Appeal to Courts
Any decision of the Commission, in the absence of an appeal therefrom as herein
provided, shall become final and executory fifteen (15) days after the date of
notification, and judicial review thereof shall be permitted only after any party
claiming to be aggrieved thereby has exhausted his remedies before the
Commission. The Commission shall be deemed to be a party to any judicial action
involving any such decision, and may be represented by an attorney employed by
the Commission, or when requested by the Commission, by the Solicitor General
or any public prosecutors.
The decision of the Commission upon any disputed matter may be reviewed both
upon the law and the facts by the Court of Appeals. For the purpose of such
review, the procedure concerning appeals from the Regional Trial Court shall be
followed as far as practicable and consistent with the purposes of this Act. Appeal
from a decision of the Commission must be taken within fifteen (15) days from
notification of such decision. If the decision of the Commission involves only
questions of law, the same shall be reviewed by the Supreme Court.
Execution of Decisions. The Commission may, motu prop-rio or on motion of any
interested party, issue a writ of execution to enforce any of its decisions or awards,
after it has become final and executory, in the same manner as the decision of the
Regional Trial Court, by directing the city or provincial sheriff or the sheriff whom
it may appoint to enforce such final decision or execute such writ; and any person
who shall fail or refuse to comply with such decision, award or writ, after being
required to do so shall, upon application by the Commission pursuant to Rule 71 of
the Rules of Court, be punished for contempt.
Employer under SSS Law Any person, natural or juridical, domestic or foreign, who
carries on in the Philippines any trade, business, industry, undertaking, or activity of
any kind and uses the services of another person who is under his orders as regards
the employment, except the Government and any of its political subdivisions,
branches or instrumentalities, including corporations owned or controlled by the
Government: Provided, That a self-employed person shall be both employee and
employer at the same time.
Employee under the SSS Law Any person who performs services for an employer in which
either or both mental or physical efforts are used and who receives compensation for
such services, where there is an employer-employee relationship: provided, That a self-
employed person shall be both employee and employer at the same time.

Dependents:
(1) The legal spouse entitled by law to receive support from the member;
(2) The legitimate, legitimated or legally adopted, and illegitimate child who is
unmarried, not gainfully employed, and has not reached twenty-one (21) years of age,
 or if over twenty-one (21) years of age, he is congenitally or while still a minor has
been permanently incapacitated
and incapable of self-support, physically or mentally; and
';(3) The parent who is receiving regular support from the mem-
ber.
compensation All actual remuneration for employment, including the mandated cost-of-
living allowance, as well as the cash value of any remuneration paid in any medium
other than cash except that part of the remuneration in excess of the maximum
salary credit.
Monthly The period from one end of the last payroll period of the preceding month to the
end of the last payroll period of the current month if compensation is on hourly,
daily or weekly
basis; if on any other basis, 'monthly' shall mean a period of one (1) month.

Employment Any service performed by an employee for his employer except:

(1) Employment purely casual and not for the purpose of occupation or business of
the employer;
(2) Service performed on or in connection with an alien ves
sel by an employee if he is employed when such vessel is
outside the Philippines;
(3) Service performed in the employ of the Philippine Gov
ernment or instrumentality or agency thereof;
Service performed in the employ of a foreign government
or international organization, or their wholly-owned in
strumentality: Provided, however, That this exemption
notwithstanding, any foreign government, international
organization or their wholly-owned instrumentality em
ploying workers in the Philippines or employing Filipinos
outside of the Philippines, may enter into an agreement
with the Philippine Government for the inclusion of such
employees in the SSS except those already covered by their
respective civil service retirement systems: Provided,
further, That the terms of such agreement shall con form with the provisions
of this Act on coverage and amount of payment of contributions and benefits:
Provided, finally, That the provisions of this Act shall be supplementary to any
such agreement; and
(5) Such other services performed by temporary and other employees which may be
excluded by regulation of the Commission. Employees of bona fide independent
contractors shall not be deemed employees of the employer engaging the service
of said contractors.

Beneficiaries:
1. Dependent spouse until he or she remarries;
2. Dependent legitimate, legitimated or legally adopted, and
illegitimate children, who shall be the primary benefici
aries of the member: Provided, That the dependent ille
gitimate children shall be entitled to fifty percent (50%)
of the share of the legitimate, legitimated or legally
adopted children: Provided, further, That in the absence
 of the dependent legitimate, legitimated children of the
member, his/her dependent illegitimate children shall be
entitled to one hundred percent (100%) of the benefits.
3. In their absence, the dependent parents who shall be the
secondary beneficiaries of the member.
4. In the absence of all the foregoing, any other person des
ignated by the member as his/her secondary beneficiary.
Contingency The retirement, death, disability, injury or sickness and maternity of the
member.
Self-employed Any person whose income is not derived from employment.
Net earnings Net income before income taxes plus non-cash charges such as
depreciation and depletion appearing in the regular financial statement of the
issuing or assuming institution.
Coverage:
1. Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years
of age and their employers.
 In the case of domestic helpers, their monthly income shall not be less than One
thousand pesos (P1,000.00) a month:
Spouses who devote full time to managing the household and family affairs, unless
they are also engaged in other vocation or employment which is subject to
mandatory coverage, may be covered by the SSS on a voluntary basis.
4. Filipinos recruited by foreign-based employers for employment abroad may be
covered by the SSS on a voluntary ba-

compulsory Coverage of the self-employed:

Coverage in the SSS shall also be compulsory upon such
self-employed persons, including but not limited to the fol
lowing:
1. All self-employed professionals;
2. Partners and single proprietors of businesses;
Hi
3. Actors and actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of
the term "employee" in Section 8 (d) of this Act;
3. Professional athletes, coaches, trainers and jockeys; and
I 5. Individual farmers and fishermen.

Effective Date of Coverage:

Compulsory coverage of the employer shall take effect on the first day of his
operation and that of the employee on the day of his employment: Provided,
That the compulsory coverage of the self-employed person shall take effect upon
his registration with the SSS.

Effect of Separation from Employment:

When an employee under compulsory coverage is separated

from employment, his employer's contribution on his account
and his obligation to pay contributions arising from that
employment shall cease at the end of the month of separa
tion, but said employee shall be credited with all contribu
tions paid on his behalf and entitled to benefits according to the provisions of this
Act. He may, however, continue to pay the total contributions to maintain his
right to full benefit.

Effect of Interruption of Business or Professional Income :

If the self-employed realizes no income in any given month
he shall not be required to pay contributions for that month.'
He may, however, be allowed to continue paying contribu
tions under the same rules and regulations applicable to a
separated employee member: Provided, That no retroactive
payment of contributions shall be allowed other than as pre
scribed under Section Twenty-two-A hereof.
Monthly Pension :
The monthly pension shall be the highest of the following
amounts:
(1) The sum of the following:
(i) Three hundred pesos (P300.00); plus
(ii) Twenty percent (20%) of the average monthly salary credit; plus
(iii) Two percent (2%) of the average monthly salary credit for each credited
year of service in excess of ten (10) years; or
(2) Forty percent (40%) of the average monthly salary credit;
or
(3) One thousand pesos (P1,000.00): Provided, That the
monthly pension shall in no case be paid for an aggre
gate amount of less than sixty (60) months.
Notwithstanding the above, the minimum pension shall be
One thousand two hundred pesos (P1,200.00) for members
with at least ten (10) credited years of service and Two thou
sand four hundred pesos (P2,400.00) for those with twenty
(20) credited years of service.

Dependents' Pension :
Where monthly pension is payable on account of death, per
manent total disability or retirement, dependents' pension equivalent to ten percent
(10%) of the monthly pension or Two hundred fifty pesos (P250.00), whichever is
higher, shall also be paid for each dependent child conceived on or before the date of
the contingency but not exceeding five (5), beginning with the youngest and without
substitution: Provided, That where there are legitimate or illegitimate children, the
former shall be preferred.

retirement Benefits:
A member who has paid at least one hundred twenty (120)
monthly contributions prior to the semester of retirement and who:
1. has reached the age of sixty (60) years and is already
separated from employment or has ceased to be self-em
ployed; or
2. has reached the age of sixty-five (65) years, shall be en
titled for as long as he lives to the monthly pension: Pro
vided, That he shall have the option to receive his first
eighteen (18) monthly pensions in lump sum discounted
at a preferential rate of interest, to be determined by the
SSS.
A covered member who is sixty (60) years old at retirement and who does not
qualify for pension benefits under paragraph (a) above, shall be entitled to a lump
sum benefit equal to the total contributions paid by him and on his behalf: Pro-
vided, That he is separated from employment and is not continuing payment of
contributions to the SSS on his own.
 The monthly pension shall be suspended upon the reemployment or
resumption of self-employment of a retired member who is less than sixty-five
(65) years old.
Upon the death of the retired member, his primary benefici aries as of the date of
his retirement shall be entitled to receive the monthly pension: Provided, That if
he has no primary beneficiaries and he dies within sixty (60) months from the start
of his monthly pension, his secondary beneficiaries shall be entitled to a lump
sum benefit equivalent to the total monthly pensions corresponding to the
balance of the five-year guaranteed period, excluding the dependents' pension
The monthly pension of a member who retires after reach
ing age sixty (60) shall be the higher of either: (1) the monthly
pension computed at the earliest time he could have retired
had he been separated from employment or ceased to be self-
employed plus all adjustments thereto; or (2) the monthly
pension computed at the time when he actually retires.
Death Benefits:
Upon the death of a member who has paid at least thirty-six
(36) monthly contributions prior to the semester of death,
his primary beneficiaries shall be entitled to the monthly
pension: Provided, That if he has no primary beneficiaries,
his secondary beneficiaries shall be entitled to a lump sum
benefit equivalent to thirty-six (36) times the monthly pen
sion. If he has not paid the required thirty-six (36) monthly
contributions, his primary or secondary beneficiaries shall
be entitled to a lump sum benefit equivalent to the monthly
pension times the number of monthly contributions paid to
the SSS or twelve (12) times the monthly pension, which
ever is higher.

Permanent Disability Benefits:

Upon the permanent total disability of a member who has paid at least thirty-six
(36) monthly contributions prior to the semester of disability, he shall be
entitled to the monthly pension: Provided, That if he has not paid the required
thirty-six (36) monthly contributions, he shall be entitled to a lump sum benefit
equivalent to the monthly pension times the number of monthly contributions paid
to the SSS or twelve (12) times the monthly pension, whichever is higher. A
member who: (1) has received a lump sum benefit; and (2) is reemployed or has
resumed self-employment not earlier than one (1) year from the date of his dis-
ability shall again be subject to compulsory coverage and shall be considered a new
member.
The monthly pension and dependents' pension shall be suspended upon the
reemployment or resumption of self-employment or the recovery of the disabled
member from his permanent total disability or his failure to present himself for
examination at least once a year upon notice by the SSS.
Upon the death of the permanent total disability pensioner, his primary beneficiaries as
of the date of disability shall be entitled to receive the monthly pension: Provided, That if
he has no primary beneficiaries and he dies within sixty (60) months from the start of his
monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit
equivalent to the total monthly pensions corresponding to the balance of the five-year
guaranteed period excluding the dependents' pension.

The Following Disabilities Shall Be Deemed Permanent Total:

1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility or insan
ity; and
5. Such cases as determined and approved by the SSS.
If the disability is permanent partial, and such disability occurs before thirty-six (36)
monthly contributions have been paid prior to the semester of disability, the benefit shall
be such percentage of the lump sum benefit described in the preceding paragraph with
due regard to the degree of disability as the Commission may determine.
If the disability is permanent total and such disability occurs after thirty-six (36)
monthly contributions have been paid prior to the semester of disability, the benefit shall
be the monthly pension for permanent total disability payable not longer than the period
designated in the following schedule:

COMPLETE
AND PERMANENT NUMBER OF
LOSS OF USE OF MONTHS
One thumb 10
One index finger 8
One middle Finger 6
One ring finger 5

One little finger 3

One big toe 6
One hand 39
One arm 50
One foot 31
One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
Sight of one eye 25
The percentage degree of disability which is equivalent to the ratio that the
designated number of months of compensability bears to seventy-five (75), rounded
to the next higher integer, shall not be additive for distinct, separate and unrelated
 permanent partial disabilities, but shall be additive for deteriorating and related
permanent partial disabilities to a maximum of one hundred percent (100%), in
which case, the member shall be deemed as permanently totally disabled.
In case of permanent partial disability, the monthly pension
benefit shall be given in lump sum if it is payable for less
than twelve (12) months.
For the purpose of adjudicating retirement, death and per
manent total disability pension benefits, contributions shall
be deemed paid for the months during which the member
received partial disability pension: Provided, That such con
tributions shall be based on his last contribution prior to his
disability.
Should a member who is on partial disability pension retire
or die, his disability pension shall cease upon his retirement
or death.

Funeral Benefit:
A funeral grant equivalent to Twelve thousand pesos
(P12,000.00) shall be paid, in cash or in kind, to help defray
the cost of funeral expenses upon the death of a member,
including permanently totally disabled member or retiree.
sickness Benefit:
A member who has paid at least three (3) monthly contribu
tions in the twelve-month period immediately preceding the
semester of sickness or injury and is confined therefor for
more than three (3) days in a hospital or elsewhere with the
approval of the SSS, shall, for each day of compensable con
finement or a fraction thereof, be paid by his employer, or
the SSS, if such person is unemployed or self-employed, a
daily sickness benefit equivalent to ninety percent (90%) of
his average daily salary credit, subject to the following conditions:
(1) In no case shall the daily sickness benefit be paid longer
than one hundred twenty (120) days in one (1) calendar
year, nor shall any unused portion of the one hundred
twenty (120) days of sickness benefit granted under this
section be carried forward and added to the total number
of compensable days allowable in the subsequent year;
(2) The daily sickness benefit shall not be paid for more than
two hundred forty (240) days on account of the same con
finement; and
(3) The employee member shall notify his employer of the
fact of his sickness or injury within five (5) calendar days
after the start of his confinement unless such confine-
ment is in a hospital or the employee became sick or was injured while working or
within the premises of the employer in which case, notification to the employer is
necessary: Provided, That if the member is unemployed or self-employed, he shall
directly notify the SSS of his confinement within five (5) calendar days after the
start thereof unless such confinement is in a hospital in which case notification is
also not necessary: Provided, further, That in cases where notification is
 necessary, the confinement shall be deemed to have started not earlier than the
fifth day immediately preceding the date of notification.
* The compensable confinement shall begin on the first day of
sickness, and the payment of such allowances shall be
promptly made by the employer every regular payday or on
the fifteenth and last day of each month, and similarly in
the case of direct payment by the SSS, for as long as such allowances are due and
payable: Provided, That such allowance shall begin only after all sick leaves of
absence with full pay to the credit of the employee member shall have been exhausted.
One hundred percent (100%) of the daily benefits provided in the preceding paragraph
shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of
such payment and legality thereof: Provided, That the employer has notified the SSS
of the confinement within five (5) calendar days after receipt of the notification from the
employee member: Provided, further, That if the notification to the SSS is made by the
employer beyond five (5) calendar days after receipt of the notification from the
employee member, said employer shall be reimbursed only for each day of confinement
starting from the tenth calendar day immediately preceding the date of notification to
the SSS: Provided, finally, That the SSS shall reimburse the employer or pay the un-
employed member only for confinement within the one-year period immediately
preceeding the date the claim for benefit or reimbursement is received by the SSS,
except confinement in a hospital in which case the claim for benefit or reimbursement
must be filed within one (1) year from the last day of confinement.
Where the employee member has given the required notification but the employer fails
to notify the SSS of the confinement or to file the claim for reimbursement within the
period prescribed in this section resulting in the reduction of the benefit or denial of the
claim, such employer shall have no right to recover the corresponding daily allowance he
advanced to the employee member as required in this section. The claim of
reimbursement shall be adjudicated by the SSS within a period of two (2) months from
receipt thereof: Provided, That should no payment be received by the employer within
one (1) month after the period prescribed herein for adjudication, the reimbursement
shall thereafter earn simple interest of one percent (1%) per month until paid.
The provisions regarding the notification required of the member and the employer as
well as the period within which the claim for benefit or reimbursement may be filed
shall apply to all claims filed with the SSS.
maternity Leave Benefit:
A female member who has paid at least three (3) monthly contributions in the
twelve-month period immediately preceding the semester of her childbirth or
miscarriage shall be paid a daily maternity benefit equivalent to one hundred
percent (100%) of her average daily salary credit for sixty (60) days or seventy-eight
(78) days in case of caesarian delivery, subject to the following conditions:
(a) That the employee shall have notified her employer of her pregnancy and the
probable date of her childbirth, which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may provide;
(b) The full payment shall be advanced by the employer
within thirty (30) days from the filing of the maternity
leave application;
(c) That payment of daily maternity benefits shall be a bar
to the recovery of sickness benefits provided by this Act
for the same period for which daily maternity benefits
have been received;
(d) That the maternity benefits provided under this section
shall be paid only for the first four (4) deliveries or mis
carriages;
(e) That the SSS shall immediately reimburse the employer
of one hundred percent (100%) of the amount of mater
nity benefits advanced to the employee by the employer
upon receipt of satisfactory proof of such payment and
legality thereof; and
(f) That if an employee member should give birth or suffer
miscarriage without the required contributions having been remitted for her by her
employer to the SSS, or without the latter having been previously notified by the
employer of the time of the pregnancy, the employer shall pay to the SSS damages
equivalent to the benefits which said employee member would otherwise have been
entitled to.

non-Transferability of Benefits:
Such benefits are not transferable and no power of attorney or other document
executed by those entitled thereto in favor
of any agent, attorney or any other person for the collection thereof on their behalf
shall be recognized, except when they are physically unable to collect personally
such benefits-Provided, further, That in case of death benefits, if no beneficiary
qualifies under this Act, said benefits shall be paid to the legal heirs in accordance
with the law of succession.

Exemption from Tax. Legal Process and Lien :

All laws to the contrary notwithstanding, the SSS and all its assets and
properties, all contributions collected and all accruals thereto and
income or investment earnings therefrom as well as all supplies, equipment,
papers or documents shall be exempt from any tax, assessment, fee, charge, or
customs or import duty; and all benefit payments made by the SSS shall likewise
be exempt from all kinds of taxes, fees or charges, and shall not be liable to
attachments, garnishments, levy or seizure by or under any legal or
 equitable process whatsoever, either before or after receipt by the person or
persons entitled thereto, except to pay any debt of the member to the SSS.
No tax measure of whatever nature enacted shall apply to the SSS, unless it
expressly revokes the declared policy of the State in Section 2 hereof granting
tax-exemption to the SSS. Any tax assessment imposed against the SSS shall be null
and void.

Government Service Insurance System Act of 1997 Republic Act No. 8291

Employer under GSIS The national government, its political subdivisions, branches,
agencies or instrumentalities, including government-owned or -controlled
corporations, and financial institutions with original charters, the constitutional
commissions and the judiciary.
Employee or Member Any person receiving compensation while in the service of an
employer as defined herein, whether by election or appointment, irrespective of
status of appoint ment, including barangay and Sanggunian officials.

(a) the legitimate spouse dependent for support upon the member or pensioner;

(b) the legitimate, legitimated, legally adopted child, includ ing the illegitimate
child, who is unmarried, not gainfully employed, not over the age of majority,
or is over the age of majority but incapacitated and incapable of self-support
due to a mental or physical defect acquired prior to age of majority; and
(c) the parents dependent upon the member for support.

Primary beneficiaries The legal dependent spouse until he/she remarries and the
dependent children.
{Secondary beneficiaries The dependent parents and, subject to the restrictions on
dependent children, the legitimate descendants.
^Compensation The basic pay or salary received by an employee, pursuant to his
election/appointment, excluding per diems,
bonuses, overtime pay, honoraria, allowances and any other emoluments received in
addition to the basic pay which are not integrated into the basic pay under existing
laws.

pensioner Any person receiving old-age permanent total disability pension or any
person who has received the lump sum
excluding one receiving survivorship pension benefits.
Disability Any loss or impairment of the normal functions of the physical and/or mental
faculty of a member which reduces or eliminates his/her capacity to continue with
his/her current gainful occupation or engage in any other gainful occupation;
total Disability Complete incapacity to continue with his present employment or engage
in any gainful occupation due to the loss or impairment of the normal functions of the
physical and/or mental faculties of the member;
Permanent Total Disability Accrues or arises when recovery from the impairment is
medically remote;
Temporary Total Disability Accrues or arises when the impaired physical and/or mental
faculties can be rehabilitated and/or restored to their normal functions;

Permanent Partial Disability Accrues or arises upon the irrevocable loss or

impairment of certain portion/s of the physical faculties, despite which the
member is able to pursue a gainful occupation.
Compulsory Membership:
Membership in the GSIS shall be compulsory for all employees receiving
compensation who have not reached the compulsory retirement age,
irrespective of employment status, except members of the Armed Forces of the
Philippines and the Philippine National Police, subject to the condition that they
must settle first their financial obligation with the GSIS, and contractuals who
have no employer and employee relationship with the agencies they serve.
Except for the members of the judiciary and constitutional commissions who shall
have life insurance only, all members of the GSIS shall have life insurance,
retirement, and all other social security protections such as disability,
survivorship, separation, and unemployment benefits.
Effect of Separation from the Service:
A member separated from the service shall continue to be a
member, and shall be entitled to whatever benefits he has
qualified to in the event of any contingency compensable
under this Act.

Computation of the Basic Monthly Pension:

The basic monthly pension is equal to:
1) thirty-seven and one-half percent (37.5%) of the revalued
average monthly compensation; plus
2) two and one-half percent (2.5%) of said revalued average
monthly compensation for each year of service in excess
of (15) years: Provided, That the basic monthly pension
shall not exceed ninety percent (90%) of the average
monthly compensation.
Computation of Service:
The computation of service for the purpose of determining
the amount of benefits payable under this Act shall be from
 the date of original appointment/election, including periods of service at different
times under one or more employers, those performed overseas under the authority of
the Republic of the Philippines, and those that may be prescribed by the GSIS in
coordination with the Civil Service Commission.
All service credited for retirement, resignation or separa tion for which
corresponding benefits have been awarded under this Act or other laws shall be
excluded in the computation of service in case of reinstatement in the service of an
employer and subsequent retirement or separation which is compensable under this
Act.
The term service shall include full-time service with com pensation: Provided, That part-
time and other services with compensation may be included under such rules and
regulations as may be prescribed by the GSIS.

Separation Benefits :
The separation benefits shall consist of:
1. a cash payment equivalent to one hundred percent (100%)
of his average monthly compensation for each year of
service he paid contributions, but not less than Twelve
thousand pesos (P12,000) payable upon reaching sixty
(60) years of age upon separation, whichever comes later:
Provided, That the member resigns or separates from the
service after he has rendered at least three (3) years of
service but less than fifteen (15) years; or
2. a cash payment equivalent to eighteen (18) times his basic
monthly pension at the time of resignation or separa
tion, plus an old-age pension benefit equal to the basic
monthly pension payable monthly for life upon reaching
the age of sixty (60): Provided, That the member resigns
or separates from the service after he has rendered at
least fifteen (15) years of service and is below sixty (60)
years of age at the time of resignation or separation.

Unemployment or Involuntary Separation Benefits :

* Unemployment benefits in the form of monthly cash pay
ments equivalent to fifty percent (50%) of the average monthly compensation
shall be paid to a permanent employee who is involuntarily separated from the
service due to the abolition of his office or position usually resulting from reor-
ganization: Provided, That he has been paying integrated contributions for at least
one (1) year prior to separation.

Retirement Benefits :
Retirement benefits shall be:
(1) the lump sum payment as defined in this Act payable at
the time of retirement plus an old-age pension benefit
equal to the basic monthly pension payable monthly for
life, starting upon expiration of the five-year (5) guaran
teed period covered by the lump sum; or
 (2) cash payment equivalent to eighteen (18) months of his
basic monthly pension plus monthly pension for life pay
able immediately with no five-year (5) guarantee.
Conditions for Entitlement :
A member who retires from the service shall be entitled to the retirement
benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen years of service;
(2) he is at least sixty (60) years of age at the time of
retirement; and
(3) he is not receiving a monthly pension benefit from
permanent total disability.

Permanent Disability Benefits :

General Conditions for Entitlement : A member who suffers
permanent disability for reasons not due to his grave mis
conduct, notorious negligence, habitual intoxication, or
willful intention to kill himself or another, shall be entitled
to the benefits provided.
Permanent Total Disability Benefits. (a) If the permanent
disability is total, he shall receive a monthly income benefit
for life equal to the basic monthly pension effective from the
date of disability: Provided, That:
(1) he is in the service at the time of disability; or
(2) if separated from the service, he has paid at least thirty-
six (36) monthly contributions within the five (5) year
period immediately preceding disability, or has paid a
total of at least one hundred eighty (180) monthly con
tributions, prior to his disability: Provided, further, That
if at the time of disability, he was in the service and has
paid a total of at least one hundred eighty (180) monthly
contributions, in addition to the monthly income benefit,
he shall receive a cash payment equivalent to eighteen
(18) times his basic monthly pension: Provided, finally,
That a member cannot enjoy the monthly income benefit
for permanent disability and the old-age retirement si
multaneously.
If a member who suffers permanent total disability does not satisfy conditions (1) and (2)
in paragraph (a) of this section but has rendered at least three (3) years of service at the
time of his disability, he shall be advanced the cash payment equivalent to one hundred
percent (100%) of his average monthly compensation for each year of service he paid con-
tributions, but not less than Twelve thousand pesos (P12,000.00) which should have
been his separation benefit.
Unless the member has reached the minimum retirement age, disability benefit shall be
suspended when:
(1) he is reemployed; or
(2) he recovers from his disability as determined by the GSIS,
whose decision shall be final and binding; or
(3) he fails to present himself for medical examination when
required by the GSIS.

The following disabilit ies shall be deemed total and perma nent:
( 1) complete loss of sight of both eyes:
(2i loss of two (2) limbs at or above the ankle or wrist;
(3) permanent complete paralysis of two (2) limbs;
brain injury resulting in incurable imbecility or insan
ity: and
(5) such other cases as may be determined by the GSIS Permanent Partial
Disability Benefits :
If the disability is partial, he shall receive a cash payment in accordance with a
schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies
either conditions (1) or (2) for permanent total disability.
The following disabilities shall be deemed permanent p artial:
(1) complete and permanent loss of the use of:
(i) any finger;
(ii) any toe;
(iii) one arm;
(iv) one hand;
(v) one foot;
(vi) one leg;
(vii) one or both ears;
(viii) hearing of one or both ears; and
(ix) sight of both eyes.
(2) such other cases as my be determined by the GSIS. Temporary Disability
Benefits:
A member who suffers temporary total disability for reasons not due to any of the
conditions enumerated in Section 15 hereof, shall be entitled to seventy-five percent
(75%) of his current daily compensation for each day or fraction thereof of
temporary disability benefit not exceeding one hundred twenty (120) days in one
calendar year after exhausting all his sick leave credits and collective bargaining
agreement sick leave benefits, if any, but not earlier than the fourth day of his
temporary total disability: Provided, That:
(1) he is in the service at the time of his disability: or
(2) if separated, he has rendered at least three (3) years of
service and has paid at least six (6) monthly contribu
tions in the twelve-month period immediately preced
ing his disability.
 Provided, however, That a member cannot enjoy the temporary total disability benefit
and sick leave pay simultaneously: Provided, further, That if the disability requires
more extensive treatment that lasts beyond one hundred twenty (120) days, the
payment of the temporary total disability benefit may be extended by the GSIS but
not to exceed a total of two hundred forty (240) days.
The temporary total disability benefit shall in no case be less than Seventy pesos
(P70.00) a day.

survivorship Benefits:
When a member or pensioner dies, the beneficiaries shall be entitled to survivorship
benefits provided in Sections 21 and 22 hereunder subject to the conditions therein
provided for. The survivorship pension shall consist of: (1) the basic survivorship
pension which is fifty percent (50%) of the basic monthly pension; and (2) the
dependent children's pension not exceeding fifty percent (50%) of the basic monthly
pension.

death a Member: Upon the death of a member, the primary beneficiaries shall be
entitled to: (1) survivorship pension: Provided, That the deceased: (i) was in the
service at the time of his death; or (ii) if separated from the service, has at least
three (3) years of service at the time of his death and has paid thirty-six (36)
monthly contributions within the five-year period immediately preceding his
death; or has paid a total of at least one hundred eighty (180) monthly
contributions prior to his death;or
2) the survivorship pension plus a cash payment equivalent to one hundred percent
(100%) of his average monthly compensation for every year of service: Provided, That the
deceased was in the service at the time of his death with at least three (3) years of service;
or

(3) a cash payment equivalent to one hundred percent (100%) of his average
monthly compensation for each year of service he paid contributions, but not
less than Twelve thousand pesos (P12,000.00): Provided, That the deceased has
rendered at least three (3) years of service prior to his death but does not
qualify for the benefits under item (1) or (2) of this paragraph.

The survivorship pension shall be paid as follows :

1. when the dependent spouse is the only survivor, he/she
shall receive the basic survivorship pension for life or
until he/she remarries;
2. when only dependent children are the survivors, they
shall be entitled to the basic survivorship pension for
as long as they are qualified, plus the dependent chil
dren's pension equivalent to ten percent (10%) of the
basic monthly pension for every dependent child not
exceeding five (5), counted from the youngest and with
out substitution;
3. when the survivors are the dependent spouse and the
dependent children, the dependent spouse shall receive
 the basic survivorship pension for life or until he/she
remarries, and the dependent children shall receive the
dependent children's pension mentioned in the imme
diately preceding paragraph (2) hereof.
In the absence of primary beneficiaries, the secondary ben
eficiaries shall be entitled to :
(1) the cash payment equivalent to one hundred percent
(100%) of his average monthly compensation for each
year of service he paid contributions, but not less than
Twelve thousand pesos (P12,000.00): Provided, That the
member is in the service at the time of his death and
has at least three (3) years of service; or
(2) in the absence of secondary beneficiaries, the benefits
under this paragraph shall be paid to his legal heirs

Death of a Pensioner:
Upon the death of an old-age pensioner or a member receiv
ing the monthly income benefit for permanent disability, the qualified beneficiaries
shall be entitled to the survivorship pension defined in Section 20 of this Act, subject
to the provisions of paragraph (b) of Section 21 hereof. When the pensioner dies
within the period covered by the lump sum, the survivorship pension shall be
paid only after the expiration of the said period.

Funeral Benefits:
| The amount of the funeral benefits shall be determined and specified by the GSIS in
the rules and regulations but shall not be less than Twelve thousand pesos (P12,000.00):
Provided, That it shall be increased to at least Eighteen thousand pesos (P18,000.00)
after five (5) years and shall be paid upon the death of:
(a) an active member as defined under Section 2 (e) of this
Act; or
(b) a member who has been separated from the service, but
who may be entitled to future benefit pursuant to Sec-
tion 4 of this Act; or
(c) a pensioner, as defined in Section 2 (o) of this Act; or
(d) a retiree who at the time of his retirement was of pensionable age under this Act
but who opted to retire under Republic Act No. 1616.

Compulsory Life Insurance:

All employees except for Members of the Armed Forces of the Philippines (AFP) and
the Philippine National Police (PNP) shall, under such terms and conditions as may
be promulgated by the GSIS, be compulsorily covered with life
insurance, which shall automatically take effect as follows:
(1) for those employed after the effectivity of this Act, their
insurance shall take effect on the date of their employ
ment;
(2) for those whose insurance will mature after the
effectivity of this Act, their insurance shall be deemed
 renewed on the day following the maturity or expiry
date of their insurance;

(3) for those without any life insurance as of the effectivity of this Act, their
insurance shall take effect following said effectivity.

Adjudication Of Claims And Disputes Prescription:

Claims for benefits under this Act except for life and retire
ment shall prescribe after four (4) years from the date of
contingency.
Settlement of Disputes:
The GSIS shall have original and exclusive jurisdiction to
settle any disputes arising under the GSIS Law and any other
laws administered by the GSIS.

Appeals:
Appeals from any decision or award of the Board shall be governed by Rules 43 and
45 of the 1997 Rules of Civil Procedure. Provided that the appeal shall take
precedence over all other cases except criminal cases when the penalty of life
imprisonment or death or reclusion perpetua is imposable.
Administration Implementing Body:
The Government Service Insurance System as created under Commonwealth Act
No. 186 shall implement the provisions of the law.

National Health Insurance Act of 1995

Republic Act No. 7875
Guiding Principles of the National Health Insurance Program 1. Allocation of National
Resources for Health The Program shall underscore the importance for government to
give priority to health as a strategy for bringing about faster economic development
and improving quality of life;
2. Universality The Program shall provide all citizens with the mechanism to gain
financial access to health services, in combination with other government health
programs. The National Health Insurance Program shall give the highest priority to
achieving coverage of the entire population with at least a basic minimum package of
health insurance benefits;
3., Equity The Program shall provide for uniform basic benefits. Access to care must
be a function of a person's health ' needs rather than his ability to pay;
4. Responsiveness The Program shall adequately meet the needs for personal
health services at various stages of a member's life;

5, Social Solidarity The Program shall be guided by community spirit. It must

enhance risk-sharing among income
groups, age groups, and persons of differing health status,
and residing in different geographic areas;
6. Effectiveness The Program shall balance economical use
of resources with quality of care;

7. Innovation The Program shall adopt to changes in medical technology, health

service organizations, health care provider payments systems, scopes of professional
practice, and
other trends in the health sector. It must be cognizant of the appropriate roles and
respective strengths of the public and private sectors in health care, including
people's organizations and community-based health care organizations;
8. Devolution The Program shall be implemented in consul
tation with the local government units (LGUs), subject to
the over-all policy directions set by the National Government;
9. Fiduciary Responsibility The Program shall provide ef
fective stewardship, funds management, and maintenance
of reserves;
10. Informed Choice The Program shall encourage members to choose from among
accredited health care providers. The Corporation's local offices shall objectively apprise its
members of the full range of providers involved in the Program and of the services and
privileges to which they are entitled as members. This explanation, which the member
may use
as a guide in selecting the appropriate and most suitable provider, shall be given
in clear and simple Filipino and in the local language that is comprehensible to
the members-
11. Maximum Community Participation The Program shall
build on existing community initiatives for its organization
and human resource requirements;
12. Compulsory Coverage All citizens of the Philippines shall
be required to enroll in the National Health Insurance Pro
gram in order to avoid adverse selection and social inequity
13. Cost Sharing The Program shall continuously evaluate
its cost-sharing schedule to ensure that the costs borne by
the members are fair and equitable and that the charges by
health care providers are reasonable;
 14. Professional Responsibility of Health Care Providers The
Program shall assure that all participating health care pro
viders are responsible and accountable in all their dealings
with the Corporation and its members;
15. Public Health Services The Government shall be respon
sible for providing public health services for all groups such
as women, children, indigenous people, displaced communi
ties in environmentally endangered areas, while the Program
shall focus on the provision of personal health services. Pre
ventive and promotive public health services are essential
for reducing the need and spending for personal health serv
ices;
16. Quality of Services The Program shall promote the im
provement in the quality of health services provided through
the institutionalization of programs of quality assurance at
all levels of the health service delivery system. The satisfaction of the community, as
well as individual beneficiaries,
shall be a determinant of the quality of service delivery;
17. Cost Containment The Program shall incorporate features
of cost containment in its design and operations and provide
a viable means of helping the people pay for health can' services; and

18. Care for the Indigent -- The government shall be responsible for providing a basic
package of needed personal health
services to indigents through premium subsidy, or through direct service provision
until such time that the program is fully implemented.

general Objectives:
1 . provide all citizens of the Philippines with the mechanism to gain financial access
to health services;
2.. create the National Health Insurance Program, hereinafter referred to as the Program,
to serve as the means to help the people pay for health care services;
3. prioritize and accelerate the provisions of health services to all Filipinos, especially
that segment of the population who cannot afford such services; and
' 4. establish the Philippine Health Insurance Corporation, here inafter referred to as the
Corporation, that will administer the Program at central and local levels.

beneficiary Any person entitled to health care benefits under this Act.
Capitation A payment mechanism where a fixed rate, whether per person, family,
household, or group, is negotiated with the health care provider who shall be
responsible for delivering or arranging for the delivery of health services required by
the covered person under the conditions of a health provider contract.

)dependent :
The legal dependents of a member are:
1) the legitimate spouse who is not a member;
 1) the unmarried and unemployed legitimate, legitimated,
illegitimate, acknowledged children as appearing in the
birth certificate; legally adopted or stepchildren below
twenty-one (21) years of age;
3) children who are twenty-one (21) years old or above but
suffering from congenital disability, either physical or
mental, or any disability acquired that renders them to
tally dependent on the member for support;

4) the parents who are sixty (60) years old or above whose monthly income is below
an amount to be determined by the Corporation in accordance with the guiding
principles set forth.
Emergency An unforeseen combination of circumstances which calls for immediate
action to preserve the life of a person or to preserve the sight of one or both eyes;
the hearing of one or both ears; or one or two limbs at or above the ankle or wrist.
Employee under NHIA Any person who performs services for an employer in which
either or both mental and physical efforts are used and who receives compensation
for such services, where there is an employer-employee relationship.
Employer under NHIA A natural or juridical person who employs the services of an
employee.

Health Care Provider Refers to:

1. a health care institution, which is duly licensed and accredited and devoted
primarily to the maintenance and operation of facilities for health promotion,
prevention, diagnosis, treatment, and care of individuals suffering from illness,
disease, injury, disability or deformity, or in need of obstetrical or other medical
and nursing care. It shall also be construed as any institution, building, or place
where there are installed beds, cribs, or bassinets for twenty-four hour use or
longer by patients in the treatment of diseases, injuries, deformities, or abnormal
physical and mental states, maternity cases or sanitarial care; or infirmaries,
nurseries, dispensaries, and such other similar names by which they may be
designated; or
2. a health care professional, who is any doctor of medi
cine, nurse, midwife, dentist, or other health care pro
fessional or practitioner duly licensed to practice in the
Philippines and accredited by the Corporation; or
3. a health maintenance organization, which is an entity
that provides, offers, or arranges for coverage of desig
nated health services needed by plan members for a fixed
prepaid premium; or

4. a community-based health care organization, which is an association of

indigenous members of the community organized for the purpose of improving the
health status of that community through preventive, promotive and curative health
services. indigent A person who has no visible means of income, or whose income is
insufficient for the subsistence of his family, as identified by the Local Health
Insurance Office and based on specific criteria set by the Corporation in accordance
with the guiding principles set forth in Article I of this Act.
in patient Education Package A set of informational services made available to an
individual who is confined in a hospital to afford him with knowledge about his
 illness and its treatment, and of the means available, particularly lifestyle changes,
to prevent the recurrence or aggravation of such illness and to promote his health
in general.
Medicare The health insurance program currently being implemented by the
Philippine Medical Care Commission. It consists of:
1) Program I, which covers members of the SSS and GSIS,
including their legal dependents; and
2) Program II, which is intended for those not covered un
der Program I.
National Health Insurance Program The compulsory health insurance program of the
government, which shall provide universal health insurance coverage and ensure
affordable, acceptable, available and accessible health care services for all citizens
of the Philippines.

Coverage:
All citizens of the Philippines shall be covered by the Na tional Health Insurance
Program. In accordance with the principles of universality and compulsory coverage,
implementation of the Program shall, furthermore, be gradual and phased in over a
period of not more than fifteen (15) years: Provided, That the Program shall not be
made compulsory in certain provinces and cities until the Corporation shall be able
to ensure that members in such localities shall have reasonable access to adequate
and acceptable health care services.

Benefit Package :
The following categories of personal health services granted to the member or his
dependents as medically necessary or appropriate, shall include:
a) Inpatient hospital care:
1) room and board;
2) services of health care professionals;
3) diagnostic, laboratory, and other medical examina
tion services;
4) use of surgical or medical equipment and facilities;
5) prescription drugs and biologicals; subject to the limi
tations stated in Section 37 of this Act;
6) inpatient education packages;
b) Outpatient care:
1) services of health care professionals;
2) diagnostic, laboratory, and other medical examina
tion services;
3) personal preventive services; and
4) prescription drugs and biologicals, subject to the limi
tations described in Section 37 of this Act;
c) Emergency and transfer services; and
 c) Such other health care services that the Corporation shall
determine to be appropriate and cost-effective: Provided,
That the Program, during its initial phase of implemen
tation, which shall not be more than five (5) years, shall
provide a basic minimum package of benefits which shall
be defined according to the following guidelines:
1) the cost of providing said packages is such that the available national and
local government subsidies for premium payments of indigents are sufficient
to ex
tend coverage to the widest possible population.
2) the initial set of services shall not be less than half
of those provided under the current Medicare Program I in terms of overall
average cost of claims paid per beneficiary household per year.
3) the services included are prioritized, first, according
to its cost-effectiveness and, second, according to its
potential of providing maximum relief from the fi
nancial burden on the beneficiary: Provided, That,
in addition to the basic minimum package, the Pro
gram shall provide supplemental health benefit cov
erage to beneficiaries of contributory funds, taking
into consideration the availability of funds for the
purpose from said contributory funds: Provided, fur
ther, That the Program progressively expand the ba
sic minimum benefit package as the proportion of the
population covered reaches targeted milestone so that
the same benefits are extended to all members of the
Program within five (5) years after the implementa
tion of the NHIA. Such expansion will provide for the
gradual incorporation of supplementary health ben
efits previously extended only to some beneficiaries
into the basic minimum package extended to all ben
eficiaries: And Provided, finally, That in the phased
implementation the NHIA, there should be no reduc
tion or interruption in the benefits currently enjoyed
by present members of Medicare.

Excluded Personal Health Service :

The benefits granted shall not cover expenses for the serv ices enumerated
hereunder except when the Corporation, after actuarial studies, recommend their
inclusion subject to the approval of the Board:
a) non-prescription drugs and devices;
b) out-patient psychotherapy and counseling for mental dis
orders;
c) drug and alcohol abuse or dependency treatment

d) cosmetic surgery;
e) home and rehabilitation services;
f) optometric services;
 g) normal obstetrical delivery; and
h) cost ineffective procedures which shall be defined by the Corporation.

Entitlement to Benefits :
A member whose premium contributions for at least three
(3) months have been paid within six (6) months prior to the
first day of his or his availment, shall be entitled to the ben
efits of the Program: Provided, That such member can show
that he contributes thereto with sufficient regularity;

The following need not pay the monthly contributions to be entitled to the Program's
benefits :
a) Retirees and pensioners of the SSS and GSIS prior to
the effectivity of this Act;
b) Members who reach the age of retirement as provided
for by law and have paid at least one hundred twenty
(120) contributions; and
c) Enrolled indigents.

The Philippine Health Insurance Corporation :

The NHIA created a Philippine Health Insurance Corpora
tion, which shall have the status of a tax-exempt govern
ment corporation attached to the Department of Health for
policy coordination and guidance.

Quasi-Judicial Po wers:
The Corporation, to carry out its tasks more effectively, shall
be vested with the following powers, in addition to those enu
merated in the law:
a) to conduct investigations for the determination of a question, controversy,
complaint, or unresolved grievance brought to its attention, and render
decisions, orders, or resolutions thereon. It shall proceed to hear and determine
the case even in the absence of any party who has been properly served with
notice to appear. It shall conduct its proceedings or any part thereof in public or
in executive session; adjourn its hearings to any time and place; refer technical
matters or accounts to an expert and to accept his reports as evidence; direct
parties to be joined in or excluded from the proceedings; and give all such
directions as it may deem necessary or expedient in the determination of the
dispute before it;
b) to summon the parties to a controversy, issue subpoenas
requiring the attendance and testimony of witnesses or
the production of documents and other materials neces
sary to a just determination of the case under investiga
tion;
b) to suspend temporarily, revoke permanently, or restore
the accreditation of a health care provider or the right to benefits of a member
and/or impose fines after due notice and hearing. The decision shall immediately
 be executory, even pending appeal, when the public interest so requires and as
may be provided for in the implementing rules and regulations. Suspension of
accreditation shall not exceed twenty-four (24) months. Suspension of
the rights of the members shall not exceed six (6) months. The Corporation shall not be
bound by the technical rules of | evidence.

Health Care Providers

free Choice of Health Facility. Medical or Dental Practitioner :
Beneficiaries requiring treatment or confinement shall be free to choose from
accredited health care providers. Such choice shall, however, be subject to limitations
based on the area of jurisdiction of the concerned Office and on the appropriateness of
treatment in the facility chosen or by the desired provider.

Grounds for Grievances:

The following acts shall constitute valid grounds for grievance action:
1. any violation of the rights of the patients;
1. a willful neglect of duties of Program implementors that
results in the loss or non-enjoyment of benefits of mem
bers or their dependents;
2. unjustifiable delay in actions on claims;
2. delay in processing of claims that extends beyond the
period agreed upon; and
3. any other act or neglect that tends to undermine or de
feat the purposes of this Act.

Comprehensive Agrarian Reform Law of 1988 Republic Act No. 6657

Declaration of Principles and Policies :

It is the policy of the State to pursue a Comprehensive Agrar
ian Reform Program (CARP). The welfare of the landless
farmers and farm workers will receive the highest consid
eration to promote social justice and to move the nation to
wards sound rural development and industrialization, and
the establishment of owner cultivatorship of economic-sized
farms as the basis of Philippine agriculture.
To this end, a more equitable distribution and ownership of
land, with due regard to the rights of landowners to just com
pensation and to the ecological needs of the nation, shall be
undertaken to provide farmers and farm workers with the op
portunity to enhance their dignity and improve the quality of
their lives through greater productivity of agricultural lands.
The agrarian reform program is founded on the right of farm
ers and regular farm workers, who are landless, to own di
rectly or collectively the lands they till or, in the case of other
farm workers, to receive a share of the fruits thereof. To this
end, the State shall encourage the just distribution of all
agricultural lands, subject to the priorities and retention limits set forth in this Act,
having taken into account ecologi
 cal, developmental, and equity considerations, and subject
to the payment of just compensation. The State shall respect
the right of small landowners and shall provide incentives
for voluntary land-sharing.
The State shall recognize the right of farmers, farm workers and landowners, as well as
cooperatives and other independent farmers' organization, to participate in the planning,
organization, and management of the program, and shall pro vide support to agriculture
through appropriate technology and research, and adequate financial, production,
marketing and other support services.
The State shall apply the principles of agrarian reform or stewardship, whenever
applicable, in accordance with law, in the disposition or utilization of other natural
resources, including lands of the public domain, under lease or concession, suitable to
agriculture, subject to prior rights, homestead rights of small settlers and the rights of
indigenous communities to their ancestral lands.
The State may resettle landless farmers and farm workers in its own agricultural
estates, which shall be distributed to them in the manner provided by law.
By means of appropriate incentives, the State shall encour age the formation and
maintenance of economic-sized family farms to be constituted by individual beneficiaries
and small landowners.
The State shall protect the rights of subsistence fishermen, especially of local
communities, to the preferential use of communal marine and fishing resources, both inland
and offshore. It shall provide support to such fishermen through appropriate technology
and research, adequate financial, production and marketing assistance and other services,
The State shall also protect, develop and conserve such resources. The protection shall
extend to offshore fishing grounds of subsistence fishermen against foreign intrusion.
Fishworkers shall receive a just share from their labor in the utilization of marine and
fishing resources.
The State shall be guided by the principles that land has a social function and land
ownership has a social responsibility. Owners of agricultural land have the obligation to
cultivate directly or through labor administration the lands they own and thereby make
the land productive.
The State shall provide incentives to landowners to invest the proceeds of the
agrarian reform program to promote in dustrialization, employment and
privatization of public sector enterprises. Financial instruments used as payment
for lands shall contain features that shall enhance negotiabil ity and acceptability
in the marketplace.
The State may lease undeveloped lands of the public domain to qualified entities for
the development of capital-intensive farms, traditional and pioneering crops
especially those for exports subject to the prior rights of the beneficiaries under this
Act.

Agrarian Reform means the redistribution of lands, regardless of crops or fruits

produced, to farmers and regular farm workers who are landless, irrespective of
tenurial arrangement, to include the totality of factors and support services designed to
lift the economic status of the beneficiaries and all other arrangements alternative
to the physical redistribution of lands, such as production or profit-sharing, labor
administration, and the distribution of shares of stock which will allow beneficiaries
to receive a just share of the fruits of the lands they work.
Agriculture, Agricultural Enterprise or Agricultural Activity means the cultivation of
the soil, planting of crops, growing of fruit trees, including the harvesting of such
 farm products, and other farm activities and practices performed by a farmer in
conjunction with such farming operations done by persons whether natural of
juridical.
Agricultural Land refers to land devoted to agricultural activity as defined in the law
and not classified as mineral, forest, residential, commercial or industrial land.
Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether
leasehold, tenancy, stewardship or otherwise, over lands devoted to agriculture,
including disputes concerning farm workers' associations or representa tion of
persons in negotiating, fixing, maintaining, changing or seeking to arrange terms or
conditions of such tenurial arrangements.
It includes any controversy relating to compensation of lands acquired under this
Act and other terms and conditions of transfer of ownership from landowners to
farm workers, tenants and other agrarian reform beneficiaries, whether the
disputants stand in the proximate rela tion of farm operator and beneficiary,
landowner and ten-
ant, or lessor and lessee.
ldle or Abandoned Land refers to any agricultural land not cultivated, tilled or developed
to produce any crop nor devoted to any specific economic purpose continuously for a
period of three (3) years immediately prior to the receipt of notice of acquisition by
the government as provided under this Act, but does not include land that has
become permanently or regularly devoted to non-agricultural purposes. It does not
include land which has become unproductive by reason of force majeure or any
other fortuitous event: Provided, That prior to such event, such land was previously
used for agricultural or other economic purposes.
farmer refers to a natural person whose primary livelihood is cultivation of land or
the production of agricultural crops either by himself, or primarily with the
assistance of his immediate farm household, whether the land is owned by him, or
by another person under a leasehold or share ten ancy agreement or arrangement
with the owner thereof.
Farmworker is a natural person who renders service for value as an employee or laborer
in an agricultural enterprise or farm regardless of whether his compensation is
paid on a daily, weekly, monthly or "pakyaw" basis. The term includes an individual
whose work has ceased as a consequence of, or in connection with, a pending
agrarian dispute who has not obtained a substantially equivalent and regular farm
employment.
tegular Farmworker is a natural person who is employed on a permanent basis by an
agricultural enterprise or farm.
seasonal Farmworker is a natural person who is employed on a recurrent, periodic
or intermittent basis by an agricultural enterprise or farm, whether as a permanent
or a non-permanent laborer, such as "dumaan," "sacada," and the like.
Cooperatives shall refer to organizations composed primarily of small
agricultural producers, farmers, farm workers, or other agrarian reform
beneficiaries who voluntarily organize themselves for the purpose of pooling land,
human, technological, financial or other economic resources, and operated on the
principle of one member, one vote. A juridical person may be a member of a
cooperative, with the same rights and duties as a natural person.
Coverage
 Scope: The CARL shall cover, regardless of tenurial arrangement and commodity
produced, all public and private agricultural lands as provided in Proclamation No.
131 and Executive Order No. 229, including other lands of the public domain suitable
for agriculture.
More specifically, the following lands are covered by the CARP:
(a) All alienable and disposable lands of the public do
main devoted to or suitable for agriculture. No re-
classification of forest or mineral lands to agricul
tural lands shall be undertaken after the approval
of the CARL until Congress, taking into account eco
logical, developmental and equity considerations,
shall have determined by law, the specific limits of
the public domain;
(b) All lands of the public domain in excess to the spe
cific limits as determined by Congress in the pre
ceding paragraph;
(c) All other lands owned by the Government devoted
to or suitable for agriculture; and
(d) All private lands devoted to or suitable for agricul
ture regardless of the agricultural products raised
or that can be raised thereon.
Retention Limits:
No person may own or retain, directly, any public or private agricultural land, the size
of which shall vary according to factors governing a viable family-sized farm, such
as com" modify produced, terrain, infrastructure, and soil fertility. but in no case
shall the retention by the landowner exceed five (5) hectares. Three (3)
hectares may be awarded to each child of the landowner, subject to the
following qualifications:
(1) that he is at least fifteen (15) years of age; and
(2) that he is actually tilling the land or directly managing
the farm: Provided, That landowners whose lands have
been covered by PD No. 27 shall be allowed to keep the
area originally retained by them thereunder; Provided,
further, That original homestead grantees or direct com
pulsory heirs who still own the original homestead at
the time of the approval of this Act shall retain the same
areas as long as they continue to cultivate said home
stead.
The right to choose the area to be retained, which shall be compact or
contiguous, shall pertain, to the landowner: Provided, however, That in
case the area selected for retention by the landowner is tenanted, the
tenant shall have the option to choose whether to remain therein or be a
beneficiary in the same or another agricultural land with similar or com-
parable features. In case the tenant chooses to remain in the retained
area, he shall be considered a leaseholder and shall lose his right to be
a beneficiary under this Act. In case the tenant chooses to be a
beneficiary in another agricultural land, he loses his right as a
leaseholder to the land retained by the landowner. The tenant must
 exercise this option within a period of one (1) year from the time the
landowner manifests his choice of the area for retention.

Ancestral Lands:
Ancestral lands of each indigenous cultural community shall include,
but not be limited to, lands in the actual, continuous and open
possession and occupation of the community and its members:
Provided, That the Torrens System shall be respected.
The right of these communities to their ancestral lands shall be
protected to ensure their economic, social and cultural well-being. In
line with the other principles of self-determination and autonomy, the
systems of land ownership, land use, and the modes of settling land
disputes of all these communities must be recognized and respected.
The PARC may suspend the implementation of this Act with respect
to ancestral lands for the purpose of identifying and delineating such
lands: Provided, That in the autonomous regions, the respective legislatures may
enact their own laws on ancestral domain subject to the provisions of the Consti-
tution and the principles enunciated in this Act and other national laws.

Exemptions and Exclusions:

(a) Lands actually, directly and exclusively used for parks, wild
life, forest reserves, reforestation, fish sanctuaries and breed
ing grounds, watersheds and mangroves shall be exempt from
the coverage of this Act.
(b)Private lands actually, directly and exclusively used for prawn
farms and fishponds shall be exempt from the coverage of this
Act: Provided, That said prawn farms and fishponds have not
been distributed and Certificate of Land Ownership Award
(CLOA) issued under the Agrarian Reform Program.
In cases where the fishponds or prawn farms have been subjected to the
Comprehensive Agrarian Reform Law, by voluntary offer to sell, or
commercial farms deferment or notices of compulsory acquisition, a simple
and absolute majority of the actual regular workers or tenants must consent
to the exemption within one (1) year from the effectivity of this Act. When
the workers or tenants do not agree to this exemption, the fishponds or
prawn farms shall be distributed collectively to the worker-beneficiaries or
tenants who shall form cooperative or association to manage the same.
(c) Lands actually, directly and exclusively used and found to be necessary for national
defense, school sites and campuses, including experimental farm stations operated by
public or private schools for educational purposes, seeds and seedlings research and
pilot production center, church sites and convents appurtenant thereto, mosque sites
and Islamic centers appurtenant thereto, communal burial grounds and cemeteries,
penal colonies and penal farms actually worked by the inmates, government and
private research and quarantine centers and all lands with eighteen percent (18%)
slope and over, except those already developed, shall be exempt from the coverage of
this Act.
 commercial Farming :
Commercial farms which are private agricultural lands de voted to salt beds, fruit
farms, orchards, vegetable and cut-flower farms, and Cacao, coffee and rubber
plantations, shall be subject to immediate compulsory acquisition and distri bution
after ten (10) years from the effectivity of this Act. In the case of new farms, the ten-
year period shall begin from the first year of commercial production and operation,
as determined by the DAR. During the ten-year period, the Government shall initiate
steps necessary to acquire these lands, upon payment of just compensation for the
land and the improvements thereon, preferably in favor of organized coop eratives or
associations, which shall thereafter manage the said lands for the workers-
beneficiaries.

Land Acquisition
Procedure for Acquisition of Private Lands :
a. After having identified the land, the landowners and the
beneficiaries, the DAR shall send its notice to acquire
the land to the owners thereof, by personal delivery or registered mail, and post
the same in a conspicuous place in the municipal building and barangay hall of
the place where the property is located. Said notice shall contain the offer of the
DAR to pay a corresponding value in accordance with the valuation set forth in
Sections 17, 18, and other pertinent provisions hereof.
b. Within thirty (30) days from the date of receipt of writ
ten notice by personal delivery or registered mail, the
landowner, his administrator or representative shall in
form the DAR of his acceptance or rejection of the offer.
c. If the landowner accepts the offer of the DAR, the LBP
shall pay the landowner the purchase price of the land
within thirty (30) days after he executes and delivers a
deed of transfer in favor of the Government and surren
ders the Certificate of Title and other muniments of
title.
d. In case of rejection or failure to reply, the DAR shall con
duct .summary administrative proceedings to determine the compensation of the
land by requiring the landowner the LBP and other interested parties to submit
evidence as to the just compensation for the land, within fifteen (15) days from
the receipt of the notice. After the expiration of the above period, the matter is
deemed submitted for decision. The DAR shall decide the case within thirty (30)
days after it is submitted for decision.
e. Upon receipt by the landowner of the corresponding pay
ment or in case of rejection or no response from the land
owner, upon the deposit with an accessible bank desig
nated by the DAR of the compensation in cash or LBP
bonds in accordance with this Act, the DAR shall take
immediate possession of the land and shall request the
proper Register of Deeds to issue a Transfer Certificate
of Title (TCT) in the name of the Republic of the Philip
pines. The DAR shall thereafter proceed with the redis
tribution of the land to the qualified beneficiaries.
 f. Any party who disagrees with the decision may bring the
matter to the court of proper jurisdiction for final deter
mination of just compensation.

Compensation:
Determination of Just Compensation:
In determining just compensation, the cost of acquisition of
the land, the current value of like properties, its nature,
actual use and income, the sworn valuation by the owner,
the tax declarations, and the assessment made by govern
ment assessors, shall be considered. The social and economic
benefits contributed by the farmers and the farmworkers and
by government to the property as well as the non-payment
of taxes or loans secured from any government financing in
stitution on the said land shall be considered as additional
factors to determine its valuation.

Incentives for Voluntary Offers for Sale:

Landowners other than banks and other financial institu
tions who voluntarily offer their lands for sale shall be entitled to an additional five
percent (5%) cash payment.
land Redistribution qualified Beneficiaries:
The lands covered by the CARP shall be distributed as much as possible to landless
residents of the same barangay, or in

the absence thereof, landless residents of the same municipality in the following
order of priority:
(a) agricultural lessees and share tenants;
(b) regular farm workers;
(c) seasonal farm workers;
(d) other farm workers;
(e) actual tillers or occupants of public lands;
(f) collective or cooperatives of the above beneficiaries; and
(g) others directly working on the land.
Provided, however, That the children of landowners who are qualified shall be given
preference in the distribution of the land of their parents and: Provided, further, That
actual tenant-tillers in the landholding shall not be ejected or removed therefrom.
A basic qualification of a beneficiary shall be his willingness, aptitude and
ability to cultivate and make land as produc tive as possible.
If due to landowner's retention rights or to the number of tenants, lessees, or
workers on the land, there is not enough land to accommodate any or some of
them, they may be granted ownership of other lands available for distribution, at
the option of the beneficiaries.
Farmers already in place and those not accommodated in

the distribution of privately-owned lands will be given preferential rights in the

distribution of lands from the public
domain.
distribution Limit:
No qualified beneficiary may own more than three (3) hectares of agricultural land.

Payment by Beneficiaries :
Lands awarded pursuant to this Act shall be paid for by the
beneficiaries to the LBP in thirty (30) annual amortiza
tions at six percent (6%) interest per annum. The pay
ments for the first three (3) years after the award may be at
reduced amounts: Provided, That the first five (5) annual
payments may not be more than five percent (5%) of the value
of the annual gross production is paid. Should the scheduled
annual payments after the fifth year exceed ten percent (10)
of the annual gross production and the failure to produce
accordingly is not due to the beneficiary's fault, the LBP may
reduce the interest rate or reduce the principal obligation to
make the payment affordable.
 The LBP shall have a lien by way of mortgage on the land
awarded to beneficiary and this mortgage may be foreclosed
by the LBP for non-payment of an aggregate of three (3) an
nual amortizations. The LBP shall advise the DAR of such
proceedings and the latter shall subsequently award the for
feited landholding to other qualified beneficiaries. A benefi
ciary whose land as provided herein has been foreclosed shall
thereafter be permanently disqualified from becoming a ben
eficiary.

Transferabilitv of Awarded Lands :

Lands acquired by beneficiaries under this Act may not be
sold, transferred or conveyed except:
a. through hereditary succession,
b. to the government,
c. to the LBP, and
d. to other qualified beneficiaries.
for a period often (10) years: Provided, however, That the
children or the spouse of the transferor shall have a right to
repurchase the land from the government or LBP within a
period of two ( 2 ) years.
Due notice of the availability of the land shall be given by
the LBP to the Barangay Agrarian Reform Committee
(BARC) of the barangay where the land is situated. The
 Provincial Agrarian Coordinating Committee (PARCCOM), as herein provided, shall,
in turn, be given due notice thereof by the BARC.
If the land has not yet been fully paid by the beneficiary, the right to the land
may be transferred or conveyed, with prior approval of the DAR, to any heir of the
beneficiary or to any other beneficiary who, as a condition for such transfer or
conveyance, shall cultivate the land himself. Failing compliance herewith, the land
shall be transferred to the LBP which shall give due notice of the availability of the
land in the manner specified in the immediately preceding paragraph.
In the event of such transfer to the LBP, the latter shall compensate the
beneficiary in one lump sum for the amounts the latter has already paid, together with
the value of improvements he has made on the land.

Homelots and Farmlots for Members of Cooperatives :

The individual members of the cooperatives or corporations
shall be provided with homelots and small farmlots for their
family use, to be taken from the land owned by the coopera
tive or corporation.

Corporate Landowners :
Corporate landowners may voluntarily transfer ownership
over their agricultural landholdings to the Republic of the
Philippines or to qualified beneficiaries, as they may agree
upon, subject to confirmation by the DAR.
Upon certification by the DAR, corporations owning agricultural lands may give their
qualified beneficiaries the right to purchase such proportion of the capital stock of the
corporation that the agricultural land, actually devoted to agri cultural activities, bears in
relation to the company's total assets, under such terms and conditions as may be agreed
upon by them. In no case shall the compensation received by the workers at the time the
shares of stocks are distributed be reduced. The same principle shall be applied to
associations, with respect to their equity or participation.

Corporations or associations which voluntarily divest a proportion of

their capital stock, equity or participation in favor of their workers or
other qualified beneficiaries under this section shall be deemed to have
complied with the provisions of this Act: Provided, That the following
conditions are complied with:
a. In order to safeguard the right of beneficiaries who own
shares of stocks to dividends and other financial benefits,
the books of the corporation or association shall be sub
ject to periodic audit by certified public accountants cho
sen by the beneficiaries;
b. Irrespective of the value of their equity in the corpora
tion or association, the beneficiaries shall be assured of
at least one (1) representative in the board of directors,
or in a management or executive committee, if one ex
ists, of the corporation or association;
 c. Any shares acquired by such workers and beneficiaries
shall have the same rights and features as all other
shares; and
d. Any transfer of shares of stocks by the original benefici
aries shall be void ab initio unless said transaction is in
favor of a qualified and registered beneficiary within the
same corporation.

Special Areas of Concern:

(1) Subsistence Fishing. Small fisher folk, including seaweed
farmers, shall be assured of greater access to the utilization
of water resources;
(2) Logging and Mining concessions. Subject to the require
ment of a balanced ecology and conservation of water re
sources, suitable areas, as determined by the Department of
Environment and Natural Resources (DENR), in logging,
mining and pasture areas, must be opened up for agrarian
settlements whose beneficiaries will be required to under
take reforestation and conservation of products methods.
Subject to existing laws, rules and regulations, settlers and
members of tribal communities must be allowed to enjoy and
exploit the products of the forests other than timber within
the logging concessions.
3) Sparsely Occupied Public Agricultural lands. Sparsely occupied
agricultural lands of the public domain will be surveyed, proclaimed
and developed as farm settlements for qualified landless people based
on an organized program to ensure their orderly and early
development.
Agricultural land allocations will be made for ideal family-sized
farms. Pioneers and other settlers will be treated equally in every
respect.
Subject to the prior rights of qualified beneficiaries, uncultivated
lands of the public domain shall be made available on a lease basis to
interested and qualified parties. Parties who will engage in the
development of capital-intensive, traditional or pioneering crops will
be given priority.
The lease period, which shall not be more than a total of fifty (50)
years, shall be proportionate to the amount of investment and
production goals of the lessee. A system of evaluation and audit will
be instituted.
(4) Idle, abandoned, foreclosed and sequestered lands. Idle,
abandoned, foreclosed and sequestered lands shall be
planned for distribution as homelots and family-sized farm
lots to actual occupants. If land area permits, other landless
families will be accommodated in these lands.
(5) Rural Women. All qualified women members of the agri
cultural labor force must be guaranteed and assured equal
rights to ownership of the land, equal shares of the farm's
produce, and representation in advisory or appropriate deci
sion-making bodies.
(6) Veterans and Retirees. In accordance with Section 7 of
Article XVI of the Constitution, landless war veterans and
veterans of military campaigns, their surviving spouse and
orphans, retirees of the Armed Forces of the Philippines
(AFP) and the Integrated National Police (INP), returnees,
surrenderees, and similar beneficiaries shall be given due
consideration in the disposition of agricultural lands of the
public domain.
(7) Agriculture Graduates. Graduates of agricultural schools
who are landless shall be assisted by the government,
through the DAR, in their desire to own and till agricultural
lands.

Administrative Adjudication Quasi-Judicial Powers of the

PAR:
The DAR is hereby vested with primary jurisdiction to determine and adjudicate
agrarian reform matters and shall have exclusive original jurisdiction over
all matters involving the implementation of agrarian reform,
except those falling under the exclusive jurisdiction of the Department of
Agricultural (DA) and the Department of Environment and Natural Resources
(DENR).
 It shall not be bound by technical rules of procedure and evidence but shall
proceed to hear and decide all cases, disputes or controversies in a most
expeditious manner, employing all reasonable means to ascertain the facts of
every case in accordance with equity and the merits of the case. Toward this end,
it shall adopt a uniform rule of procedure to achieve a just, expeditious and
inexpensive determination of every action or proceeding before it.
It shall have the power to summon witnesses, administer oaths, take testimony,
require submission of reports, compel the production of books and documents and
answers to interrogatories and issue subpoena, and subpoena duces te-cum and to
enforce its writs through sheriffs or other duly deputized officers. It shall likewise
have the power to punish direct and indirect contempt in the same manner and
subject to the same penalties as provided in the Rules of Court.
Representatives of farmer leaders shall be allowed to represent themselves, their
fellow farmers or their organizations in any proceedings before the DAR: Provided,
however, That when there are two or more representatives for any individual or
group, the representatives should choose only one among themselves to represent
such party or group before any DAR proceedings.
Notwithstanding an appeal to the Court of Appeals, the de
cision of the DAR shall be immediately executory.
Finality of Determination. Any case or controversy before
it shall be decided within thirty (30) days after it is submit
ted for resolution. Only one (1) motion for consideration shall
be allowed. Any order, ruling or decision shall be final after the lapse of fifteen (15) days
from receipt of a copy thereof.
Certiorari. Any decision, order, award or ruling of the DAR on any agrarian dispute or
on any matter pertaining to the application, implementation, enforcement, or
interpretation of this Act and other pertinent laws on agrarian reform may be brought to
the Court of Appeals by certiorari except as otherwise provided in this Act within fifteen
(15) days from receipt of a copy thereof.
The findings of fact of the DAR shall be final and conclusive, if based on substantial
evidence.
No Restraining Order or Preliminary Injunction. No court in the Philippines shall have
jurisdiction to issue any restraining order or writ of preliminary injunction against
PARC or any of its duly authorized or designated agencies in any case, dispute or
controversy arising from, necessary to, or in connection with the application,
implementation, enforcement, or interpretation of this Act and other pertinent laws on
agrarian reform.
Special Agrarian Court. The Supreme Court shall des
ignate at least one (1) branch of the Regional Trial Court
(RTC) within each province to act as a Special Agrarian
Court.
The Special Agrarian Courts shall have original and ex
clusive jurisdiction over all petitions for the determi
nation of just compensation to landowners, and the
prosecution of all criminal offenses under this Act. The
Rules of Court shall apply to all proceedings before the
Special Agrarian Courts unless modified by this Act.
Appointment of Commissioners. The Special Agrar
ian Courts, upon their own initiative or at the instance
of any of the parties, may appoint one or more commis
sioners to examine, investigate and ascertain facts rel
evant to the dispute, including the valuation of proper
ties, and to file a written report thereof with the court.
Orders of the Special Agrarian Courts. No order of the
Special Agrarian Courts on any issue, question, matter
or incident raised before them shall be elevated to the

appellate courts until the hearing shall have been terminated and the case decided
on the merits.
Appeals. An appeal may be taken from the decision of the Special Agrarian Courts
by filing a petition for review with the Court of Appeals fifteen (15) days from receipt
of notice of the decision; otherwise, the decision shall become final.
An appeal from the decision of the Court of Appeals, or
from any order, ruling or decision of DAR, as the case
may be, shall be by a petition for review with the Su
preme Court within a non-extendible period of fifteen (15)
days from receipt of a copy of said decision.
Procedure on Review. Review by the Court of Appeals
or the Supreme Court, as the case may be, shall be gov
erned by the Rules of Court. The Court of Appeals, how
 ever, may require the parties to file simultaneous memo
randa within a period of fifteen (15) days from notice,
after which the case is deemed submitted for decision.
Preferential Attention in Courts. All courts in the Philippines, both trial and
appellate, are hereby enjoined to give preferential attention to all cases arising from
or in connection with the implementation of the provisions of this Act.