CA AZUCENA NOTES ON LABOR STANDARDS Abigail Bautista Anzia

Labor legislation statues, regulations & jurisprudence governing relations bet capital & labor, by providing for certain standards of terms & conditions of EENT or providing a legal framework w/in w/c these terms & conditions & the EENT relationship may be negotiated, adjusted & administered. 2 Divisions of Labor Legislation 1. Labor Standards sets out the minimum terms, conditions & benefits of EENT that EERS must provide or comply w/ & to w/c EES are entitled as a matter of legal right. - minimum requirements prescribed by existing laws, rules & regulations relating to wages, hrs of work, cost-of-living allowance and other monetary & welfare benefits, including occupational safety & health standards. - material or substance to be processed 2. Labor Relations defines the status, rights & duties and the institutional mechanisms, that govern the indiv & collective interactions of EERS, EES, or their representatives. - mechanism that processes the substance Labor physical toil although it does not necessarily exclude the application of skill (thus skilled & unskilled labor) Skill the familiar knowledge of any art/science, united w/ readiness & dexterity in execution/performance or in the application of the art/science to practical purposes. Work (broader than labor) covers all forms of physical/mental exertion, or both combined, for the attainment of some obj other than recreation/amusement per se. Worker (broader than EE) may refer to self-employed people & those working in the service & under the control of another, regardless of rank, title, or nature of work. - any member of the labor force whether employed/unemployed

Employee a salaried person working for another who controls or supervises the means, manner or method of doing the work. Social legislation includes laws that provide particular kinds of protection/benefits to society in furtherance of social justice. are necessarily social legislation Social justice humanization of laws & the equalization of social & economic forces by the State so that social justice in its rational & objectively secular conception may at least be approximated - promotion of the welfare of the ppl, the adoption by the Govt of measures calculated to insure economic stability of all the component elements of society through the maintenance of proper economic & social equilibrium in the interrelations of the members of the community, constitutionally, through the adoption of measures legally justifiable, or extra-constitutionally, through the exercise of powers underlying the existence of all govts. 1987 Consti: protects the rights of workers & promote their welfare Basic rights of workers guaranteed by the Constitution 1. to organize themselves 2. to conduct collective bargaining/negotiation w/ mgt; 3. to engage in peaceful concerted activities, including to strike in accordance w/ law; 4. to participate in policy & decision-making processes affecting rights & benefits Other Consti provisions that protect the Rs/promote the welfare of workers -org even for govt EES.. No officer/Ee of the Civil Service shall be removed/suspended xcpt for a cause. Temporary EES of the Govt shall be given such protection as may be provided by law Landless farmworkers may be resettled by the govt in its own agri estates.

of opportunities, income & wealth.

justice & economic devt ed to separation pay & retirement benefits, OR may be considered for reemployment in the govt Consti pro-labor, but recognizes the indispensable role of the private sector, encourages private enterprise and provides incentives to needed investments Police Power as the Basis - the power of the govt to enact laws, w/in Constitutional limits to promote the order, safety, health, morals & general welfare of society - power inherent in govt to protect itself & all its constituents, & for this purpose to hold the govt immune so far as necessary, from any limitations imposed in the past. - An imposition of restraint upon liberty or property in order to foster the common good. Labor Code designed to be a dynamic & growing body of laws w/c will reflect continually the lessons of practical application & experience 7 Principles Underlying the code 1. Labor relations must be made both responsive & responsible to national devt 2. Labor laws/labor relations during a period of national emergency must substitute arbitration 3. Laggard justice in the labor field is injurious to the workers, the EERS & the public; labor justice can be made expeditious w/o sacrificing due process. 4. Manpower devt & EENT must be regarded as a major dimension of labor policy, for there can be no real equality of bargaining power under conditions of severe mass unemployment. 5. There is a global labor market available to qualified Filipinos, esp those who are unemployed or whose EENT is tantamount to unemployment bcoz of their very little earnings. 6. Labor laws must command adequate resources & acquire a capable machinery for effective & sustained implementation; when labor laws cannot be enforced, both EERS

& the workers are penalized, & only a corrupt few (those who are in charge of implementation) may get the reward they dont deserve. 7. There shld be popular participation in national policy-making through what is now called tripartism. Art 3. [Declaration of Basic Policies] The State shall afford protection to labor, promote full EENT, ensure equal work opportunities regardless of sex, race or creed, and regulate the relations bet workers & EERS. The State shall assure the rights of workers to self-org, collective bargaining, security of tenure, and just & humane conditions of work. Balanced Approach shared responsibility. Worker & EER sectors are interdependent. Basic policy is to balance or to coordinate the rights and interests of both workers and employers because both sectors need each other; they are interdependent Art4. [Construction in Favor of Labor] All doubts in the implementation & interpretation of the provisions of this Code, including its IRRs, shall be resolved in favor of labor. Interpretation & Construction policy is to extend the decrees applicability to a greater number of EES to enable them to avail of the benefits under the law (Liberal approach is adopted) Concern for the Lowly Worker SC reaffirms its concern for the lowly worker who, often at his EERs mercy, must look up to the law for his protection. ( Reason: the EER stands on higher footing than the EE: (1,) There is greater supply than demand for labor; (2) the need for EENT by labor comes from vital & even desperate necessity.) Mgt Rights entitled to respect & enforcement in the interest of simple fair play. 1. R to manage, control, and use his property & conduct business in a manner satisfactory to himself (just discrimination in the rate of wages paid to the skillful & to the unskillful, to the efficient & inefficient.) 2. R to prescribe rules (they become part of the contract of EENT) 3. R to select EES & to decide when to engage them, except as restricted by statute or valid contract, at a wage & under conditions agreeable to them.

4. R to transfer & discharge EES in order to minimize expenses & to insure stability of the business & even to close the business, provided it is done in good faith & due to causes beyond control. Mgt Prerogative: Rights of the employer to return of investments and to make profit The employer is allowed to control the variables in business operations, to enhance the chances of making a profit. The Supreme Court have held in various cases that management is free to regulate, according to its own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, layoff of workers and discipline, dismissal and recall of workers. Management prerogative is justified, provided that the following are exercised: a. b. c. In good faith For the advancement of the employers interest Not to circumvent the rights of the employees

Art 5. [Rules & Regulations] the DOLE & other govt agencies charged w/ the administration & enforcement of this Code or any of its parts shall promulgate the necessary IRRs. Such RRs shall become effective 15 days after announcement of their adoption in the newspapers of gen. circulation. -administrative regulations and policies enacted by administrative bodies have the force of law and are entitled to great respect Art 6. [Applicability] All Rs & benefits granted to workers under this Code shall, except as may otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural. - also applies to a govt corp incorporated under the Corporation Code. - Test: WON a govt-owned/-controlled corp is subj to CS Law is the manner of its creation. Govt corps created by special charter are subj to its provisions, while those incorporated under the gen Corp Law are not w/in the coverage of the CS law. -EDC Ees covered by CS Law

CH. 2: EMANCIPATION OF TENANTS Art 7 [Statement of Objectives] it has become imperative to start reformation w/ the emancipation of the tiller of the soil from his bondage. Art 8: [Transfer of Lands to Tenant-workers] tenant-farmers on private agri lands primarily devoted to rice & corn under a sys of share crop or lease tenancy whether classified as landed estate or not shall be deemed owner of apportion constituting a family-size farm of 5 hectares if not irrigated & 3 hectares if irrigated.. In all cases, the landowners may retain an area of not more than 7 hectares if such landowner is cultivating such area or will now cultivate it. Art 9. [Determination of Land Value] For the purpose of determining the cost of the land to be transferred to the tentant-farmer, the value of the land shall be equivalent to 2 & times the average harvest of 3 normal crop yrs immediately preceding the promulgation of PD 27 (OCT 21, 1972). -The total cost of the land, including interest at the rate of 6% per annum, shall be pd by the tenant in 15 yrs of 15 equal annual amortizations. -In case of default, the amortizations due shall be pd by the farmers cooperative in w/c the defaulting tenant-farmer is a member, w/ the coop having a right of recourse against him. -The govt shall guarantee such amortizations w/ shares of stock in govt-owned & controlled corps. Art 10. [Conditions of Ownership] No title to the land acquired by the tenant-farmer under PD 27 shall be actually issued to him unless & until he has become a fullfledged member of a duly recognized farmers coop. Title to the land acquired pursuant to PD 27 or the Land Reform Program of the Govt shall not be transferable except by hereditary succession or to the Govt in accdance w/ the provisions of PD 27, the Code of Agrarian Reforms & other existing laws & regulations. Art 11. [Implementing Agency] The Dept of Agrarian Reform shall promulgate the necessary rules & regulations to implement the provisions of this Chapter.

*Land for the landless battlecry dramatizing the increasingly urgent demand of the dispossessed for a plot of earth as their place under the sun. *CARP Law signed by Cory, declaring full land ownership in favor of the beneficiaries of the PD 27. *Share tenancy abolished, put the agricultural leasehold sys in its stead, geared towards eventual ownership of land by its tillers *Consti - State shall undertake an Agrarian Reform Program, and encourage & undertake the just distribution of all agri lands, subj to such priorities & reasonable retention limits as the Congress may prescribe, *Compensation scheme: Sec 18 of CARP: Title to all expropriated properties shall be transferred to the State only upon full payment of compensation of their respective owners. *Retention Limits may own/retain directly/indirectly, any public/private agri land, the size of w/c shall vary accdg to factors governing a viable family-sized farm, such as commodity produced, terrain, infrastructure, & soil fertility as determined by the Presidential Agrarian Reform Council (PARC). *3 hectares may be awarded to each child of the landowner, subj to the ff qualifications: (1.) he is at least 15 y/o, and (2) he is actually tilling the land or directly managing the farm; Provided, that landowners whose lands have been covered b PD 27 shall be allowed to keep the area originally retained by them thereunder; Provided further, that orig homestead grantees or direct compulsory heirs who still own the org homestead at the time of the approval of this Act shall retain the same areas as long as the continue to cultivate said homestead. Lands not covered: 1. Lands obtained through homestead patent: Homestead Act gives a needy citizen a piece of land where he may build a modest house for himself & family & plant what is necessary for subsistence & for the satisfaction of lifes other needs. - superior over the rights of tenants 2. Residential Subdivisions not considered agricultural. An agricultural leasehold cannot be established on land w/c has ceased to be devoted to cultivation or farming bcoz of its conversion into a residential subd. 3. Livestock, poultry & Swine raising lands: Sec 2 of RA 6657 w/c includes private agri lands devoted to commercial livestock, poultry & swine raising in the definition

of commercial farms is invalid. They are covered by the agrarian reform prog of the State. PRE-EMPLOYMENT Art 12. It is the policy of the State: 1. to promote and maintain a state of full employment through improved manpower training, allocation and utilization; 2. to protect every citizen desiring to work locally/overseas by securing for him the best possible terms and condition of employment; 3. to facilitate a free choice of available employment by persons seeking work in conformity with the national interest; 4. to facilitate & regulate the movement of workers in conformity w/ the national interest; 5. to regulate the employment of aliens, including the establishment of a registration and/or work permit system; 6. to strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and placement of workers, locally and overseas, to serve national development objectives; 7. to insure careful selection of Filipino workers for overseas employment in order to protect the good name of the PH abroad. The DOLE - by Administrative Code of 1987 (EO 292) - the primary policy-making, programming, coordinating and administrative entity of the Executive branch of the govt in the field of labor and employment Its Primary responsibilities: 1. The promotion of gainful EENT opportunities and the optimization of the devt & utilization of the countrys manpower resources; 2. The advancement of workers welfare by providing for just and humane working conditions and terms of EENT; 3. The maintenance of industrial peace by promoting harmonious, equitable and stable EENT, relations that assure protection for the Rs of all concerned parties. RECRUITMENT & PLACEMENT OF WORKERS Art 13. Definitions

Worker any member of the labor force whether employed or unemployed. Recruitment & placement any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referrals, contract services, promising or advertising for EENT, locally or abroad, whether for profit or not: provided, that any person or entity w/c, in any manner, offers or promises for a fee EENT to 2/more persons shall be deemed engaged in recruitment & placement Private fee-charging EEnt Agency any person/ entity engaged in the recruitment & placement of workers for a fee w/c is charged directly/indirectly from the workers or employers or both License a document issued by the DOLE authorizing a person/entity to operate a private EENT agency Private recruitment entity any person/assoc engaged in the recruitment & placement of workers, locally/overseas without charging, directly/indirectly any fee from the workers or employers. Authority a document issued by the DOLE authorizing a person/assoc to engage in recruitment & placement activities as a private recruitment entity Seaman any person employed in a vessel engaged in maritime navigation Overseas EENT EENT of a worker outside the PH Emigrant any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident permit to its equivalent in the country of destination Art 14. EMPLOYMENT PROMOTION The Sec of Labor shall have the power & authority: 1. to organize & establish new EENT offices in addition to existing EENT offices under the DOLE as the need arises; 2. to organize & establish a nationwide job clearance & information system to inform applicants registering w/ a particular EENT office of job opportunities in other parts of the country as well as job opportunities abroad; 3. to develop & organize a program that will facilitate occupational industrial and geographical mobility of labor and provide assistance in the relocation of workers from one area to another; and 4. to require any person, establishment, org, or institution to submit such EENT information as may be prescribed by the Sec of Labor. Art 15. BUREAU OF EMPLOYMENT SERVICES (now BLE)

- primarily responsible for developing & monitoring a comprehensive EENT program. Powers & Duties: 1. To formulate & develop plans & programs to implement the EENT promotion objectives of this Title; 2. To establish & maintain a registration and/or licensing system to regulate private sector participation in the recruitment & placement of workers, locally & overseas, and to secure the best possible terms & conditions of EENT for Filipino contract workers and compliance therewith under such rules & regulations as may be issued by the DOLE; 3. To formulate & develop EENT programs designed to benefit disadvantaged groups & communities; 4. To establish & maintain a registration and/or work permit system to regulate the EENT of aliens; 5. To develop a labor market information system in aid of proper manpower and development planning; 6. To develop a responsible vocational guidance & testing system in aid of proper human resources allocation; and 7. To maintain a central registry of skills, except seamen *PESO - serves as EENT service & information center - Regularly obtains lists of job vacancies from EERS, publicizes them, invites and evaluates applicants, and refers them for probable hiring - Provides training and educational guidance and EENT counseling services - Also renders special services to the public such as holding of jobfairs, livelihood and self-employment bazaars - Special credit assistance for placed overseas workers - Special program for EENT of students (SPES) during summer or semestral breaks - Work appreciation seminars & conferences and - Hiring of workers in infrastructure projects (WHIP) created WHIP, a program w/c requires the DPWH and private contractors to hire 30% of skilled and 50% unskilled labor requirements from the area where the project is being undertaken Art 16. PRIVATE RECRUITMENT: GR: No person/entity other than the public EENT offices, shall engage in the recruitment & placement of workers.

Exceptions 1. Public EEnt offices 2. Private recruitment entities 3. Private EENT agencies 4. Shipping or manning agents or representatives 5. The POEA 6. Construction contractors if authorized to operate by DOLE and the Construction Industry Authority 7. Members of the diplomatic corps although hirings done by them have to be processed through the POEA 8. Other persons/entities as may be authorized by the Sec of DOLE Art 17. PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION (POEA) *POEA has taken over the functions of the Overseas Employment Development Board (OEDB) and the National Seamen Board (NSB) OFW a Filipino worker who is to be engaged, is engaged or has been engaged in a renumenerated activity in a country of which he/she is not a legal resident whether: 1. Land-based contract workers other than a seaman including workers Engaged in offshore activities whose occupation requires that majority of his working/gainful hrs are spent on land 2. Sea-based those employed in a vessel engaged in maritime navigation Principal Functions of the POEA 1. Formulation, implementation and monitoring of overseas employment of Filipino workers; 2. Protection of their rights to fair and equitable employment practices; 3. Deployment of Filipino workers through govt-to-govt hiring Regulatory Functions 1. Regulate private sector participation in the recruitment & overseas placement of workers through its licensing and registration system; 2. Formulate & implement, in coordination w/ appropriate entities concerned, when necessary, a system for promoting and monitoring the overseas EEnt of Filipino

workers taking into consideration their welfare and the domestic manpower requirements; 3. Inform migrant workers not only of their rights as workers but also of their rights as human beings; 4. Instruct and guide the workers how to assert their rights and provide the available mechanism to redress violation of their rights; 5. In the recruitment & placement of workers to service the requirements for trained and competent Filipino workers of foreign govts and their instrumentalities, and such other employers as public interest may require, deploy only to countries: a. Where the PH has concluded Bilateral labor agreements or arrangements; b. Observing and/or complying w/ the international laws and standards of migrant workers; c. Guaranteeing to protect the rights of Filipino migrant workers. Adjudicatory Functions 1. Administrative cases involving violations of licensing rules & regulations and registration of recruitment and EEnt agencies/entities; and 2. Disciplinary action cases and other special cases w/c are administrative in character, involving employers, principals, contracting partners and Filipino migrant workers. Jurisdiction of POEA 1. all cases w/c are administrative in character, involving or arising out of violations of rules & regulations relating to licensing & registration of recruitment and employment agencies/entities; and 2. disciplinary action cases and other special cases w/c are administrative in character, involving EERS, principals, contracting partners and Filipino migrant workers 3. NO jurisdiction to enforce foreign judgment (must be brought before the regular courts). POEA is an administrative (not a court), exercising adjudicatory or quasijudicial functions 4. NO jurisdiction over torts *Jurisdiction over EER-EE cases were transferred to NLRC by virtue of RA 10022 (Migrant Workers Act as amended)

Grounds for Disciplinary Action 1. Commission of a felony punishable by Ph laws or by the laws of the host country; 2. Drug addiction/possession or trafficking of prohibited drugs; 3. Desertion or abandonment; 4. Drunkenness, esp where the laws of the host country prohibit intoxicating drinks; 5. Gambling, esp where the laws of the host country prohibits the same; 6. Initiating/joining a strike or work stoppage where thelaws of the host country prohibit strikes or similar actions; 7. Creating trouble at the worksite or in the vessel; 8. Embezzlement of company funds or of moneys and properties of a fellow worker entrusted for delivery to kins or relatives in the PH; 9. Theft/robbery; 10. Prostitution; 11. Vandalism or destroying company property; 12. Gunrunning or possession of deadly weapons; 13. Unjust refusal to depart for the worksite after all employment and travel documents have been duly approved by the approp govt agency/ies; and 14. Violation/s of the laws and sacred practices of the host country and unjustified breach of govt-approved EENT contract by a worker COMPROMISE AGREEMENT -consistent w/ the policy encouraging amicable settlement of labor disputes Sec 10 of RA 8042 allows resolution by compromise of cases filed w/ the NLRC - any compromise agreement on money claims inclusive of damages shall be paid w/in 4 months from the approval of the settlement Penalties for Non-compliance of the mandatory period for resolution of cases 1. The salary of such official who fails to render his decision/resolution w/in the prescribed pd shall be, or caused to be, withheld until such official complies therewith; 2. Suspension for not more than 90 days; or 3. Dismissal w/ disqualification to hold any appointive public office for 5 yrs EER/EE Relations Cases a. Millares & Lagda v NLRC: SC: seafarers are contractual EES b. Premature Termination of Contract

If EE is terminated before end of contract w/o just cause, EERS will be ordered to pay their salaries corresponding to the unexpired portion of their EENT contract c. Pretermination Under RA 8042 A worker dismissed from overseas EENT w/o just cause as defined by law/contract is entitled to full reimbursement of his placement fee w/ interest at 12% per annum, plus the salary for the unexpired portion of their EENT contract. (Serrano vs Gallant) -the clause whichever is less is declared unconstitutional by RA 8042 as it violates equal protection of the law and substantive due process Due Process required to terminate employment Ex: in case of seamen must be given written notice of the charges against him, and afforded a formal investigation where he can defend himself or thru a representative before he can be dismissed & disembarked. The EER is required to furnish him w/ 2 notices: (1) written notice of charge; and (2) written notice of dismissal Contracted but not Deployed: Perfected Contract -agreement on the object and the cause, as well as the terms and conditions of the contract Death benefits of Seafarers - entitled to death and other benefits under w/c ever is higher (foreign law or Ph law) - entitled to death benefits if death occurs during the term of his contract of employment, even if death is not workinjury/sickness *Permanent disability the inability of a worker to perform his job for more than 120 days, regardless of WON he loses the use of any part of his body *Total Disability disablement of an EE to earn wages in the same kind of work of similar nature that he was trained for or accustomed to perform, or any kind of work w/c a person of his mentality and attainments could do. It does not mean absolute helplessness. In disability compensation, it is not the injury w/c is compensated, but rather it is the incapacity to work resulting in the impairment of ones earning capacity eir own doing *Disability loss or impairment of a physical or mental function resulting from

*Disability benefits by seamen a matter governed not only by medical findings but by law & contract - shall be paid beginning on the 1st day of such disability. If caused by an injury/sickness still requires medical attendance beyond 120 days but not to exceed 240 days from onset of disability in w/c case benefit for temporary total disability shall be paid. In case of differing medical assessment a.) when a seafarer sustains a work-related illness/injury while on board, his fitness/unfitness to work shall be determined by the company-designated physician. b.) If the physician appointed by the seafarer disagrees w/ the company-designated physicians assessment, the opinion of a 3rd doctor may be agreed jointly bet the EER and the seafarer to be the decision final and binding on them Agencies Given the Duty to promote the welfare & rights of migrant workers: 1. DFA 2. DOLE 3. POEA 4. OWWA Overseas Workers Welfare Administration provides social & welfare services including insurance coverage, legal assistance, placement assistance and remittance services to Filipino overseas workers. Under RA8042, it shall provide the Filipino migrant worker & his faily assistance in the enforcement of contractual obligs by agencies, entities and/or their principals; 5. RPM - Re-Placement and Monitoring Center develops livelihood programs for the returning workers to reintegrate the returning migrant workers to the Ph society; 6. NLRC tasked w/ the settlement/adjudication of labor disputes Art 18: BAN ON DIRECT HIRING GR: Direct hiring of Filipino workers for overseas EENT is not allowed 1. Members of Diplomatic corps; 2. International organizations; 3. Other employers as may be allowed by DOLE; and

4. Name hires individual workers who are able to secure contracts for overseas EENT on their own efforts and representations w/o assistance/participation of any agency. Their hiring nonetheless, shall pass through the POEA for processing purposes Rationale of the Prohibition: 1. To assure the best possible terms & conditions of work to the EE; and 2. To assure the foreign EER that he hires only qualified Filipino workers Art 19: COMMISSION ON FILIPINO OVERSEAS (BP 79) CFO attached to the DFA; replaced the Office of Emigrant Affairs. - assists in the formulation of policies affecting Filipinos overseas and formulates an integrated program that promotes the welfare of Filipinos overseas ART 20: NSB now POEA Art 21. FOREIGN SERVICE ROLE AND PARTICIPATION - necessary to monitor the status of OFWs in their respective areas of assignment and insure that they are not exploited or abused by their foreign principal EERS Art 22. MANDATORY REMITTANCE OF FOREIGN EXCHANGE EARNINGS - All OFWs are required to remit a portion of their foreign exchange earnings ranging from 50% - 80% depending on the workers kind of job, to their families, dependents, and/or beneficiaries. Seamen/Mariners 80% Workers for Filipino Contractors & Construction companies 70% Professionals whose EENT contract provide for lodging facilities 70% Professionals w/o Board & Lodging 50% Domestic and other service workers 50% 1. Fil servicemen working in US military installations; 2. Where the workers immediate family members, dependents, or beneficiaries are residing w/ him abroad; 3. Immigrants and Fil professionals and EEs working w/ UN agencies or specialized bodies

Effects of Failure to Remit 1. Workers who fail to comply w/ the mandatory remittance reqment shall be suspended/excluded from the list of eligible workers for overseas EENT. Subsequent violations shall warrant his repatriation. 2. EERS who fail to comply shall be excluded from the overseas EENT program. Private EENT agencies/entities shall face cancellation or revocation of their licenses or authority to recruit, w/o prejudice to other liabilities under existing laws and regulations ART 23-24: POEA COMPOSITION OF BOARDS TO ISSUE RULES AND COLLECT FEES CH 2: REGULATION OF RECRUITMENT & PLACEMENT ACTIVITIES Art 25: PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT & PLACEMENT OF WORKERS Private Sectors that can participate 1. Private EENT agencies; 2. Private recruitment agencies; 3. Shipping or manning agencies; 4. Such other persons as may be authorized by the Sec of DOLE; and 5. Construction contractors w/ a duly issued authority to operate private recruitment entities Qualifications for Participation 1. Citizenship requirement a. Filipino citizens; or b. Corporations, partnerships or entities at least 75% of the authorized and voting capital stock of w/c is owned & controlled by Filipino citizens. 2. Capitalization a. Private EENT agency for local EENT i. For single proprietorship or partnership minimum net worth of 200k pesos ii. For corporations a minimum paid up capital of 5ook pesos b. Private recruitment or manning agency for overseas EENT i. For single proprietorship or partnership P2M minimum capital

ii. For corps P2M minimum paid up capital, Provided, that those w/ existing licenses shall, w/in 4 yrs from effectivity hereof, increase their capitalization or paid-up capital, as the case may be, to P2M at the rate of 250K every yr. 3. Those not otherwise disqualified by law or other govt regulations to engage in the recruitment & placement of workers for overseas EENT Disqualified from Recruitment & Placement of Workers for Overseas EEnt whether for profit or not 1. Travel agencies & sales agencies of airline companies; 2. Officers/members of the board of any corp or members in a partnership engaged in the business of a travel agency; 3. Corps & partnerships, when any of its officers, members of the board or partners, is also an officer, member of the board or partner of a corp or partnership engaged in the business of a travel agency (interlocking officers) 4. Persons, partnerships or corps which have derogatory records, such as but not limited to: a. Those certified to have derogatory record/info by the NBI or by the Anti-illegal Recruitment Branch of the POEA; b. Those against whom probable cause or prima facie finding of guilt for illegal recruitment or other related cases exists; c. Those convicted of cases and/or crimes involving moral turpitude; d. Those agencies whose licenses have been previously cancelled or revoked by POEA for violation of RA 8042, PD 442 as amended and their IRR as well as the Labor Codes IRR e. Officials/EES of the DOLE or other govt agencies directly involved in overseas EENT program and their relatives w/in the 4th degree of consanguinity or affinity; and f. Those whose License have been previously cancelled o revoked Art 29: NON-TRANSFERABILITY OF LICENSE AUTHORITY 1. It may be used only to the one in whose favor it was issued; hence, it cannot be assigned, conveyed or transferred to any other person/entity. 2. It must be used only in the place stated in the license. Thus, could only undertake recruitment & placement activities in the region where the license was granted.

3. The recruitment & placement activities must be undertaken at their authorized official addresses. 4. Provincial recruitment and/or job fairs may be allowed only when authorized by POEA in writing. * Change of ownership of single proprietorship licensed to engage in overseas EENT shall cause the automatic revocation of the license. Art 30: REGISTRATION FEES: The Sec of Labor shall promulgate a schedule of fees for the registration of all applicants for license or authority. Art 31. BONDS All applicants for license/authority shall post such cash and surety bonds as determined by the Sec of Labor including escrow deposits. Purposes: 1. To guarantee compliance w/ prescribed recruitment procedures, rules & regulations, and terms & conditions of EENT; and 2. To ensure prompt & effective recourse against such companies when held liable for applicants/workers claim Exemption from Garnishment judgment creditor of the agency. should be replenished by the agency w/in 15 days from notice from the POEA. Failure to replenish the same w/in the said pd shall cause the suspension of the license Note: POEA has the power to enforce liability under cash & surety bonds. Art 32: FEES TO BE PAID BY WORKERS actually commenced EENT approp receipt clearly showing the amount paid. POEA has the power to:

1. Suspend/cancel the license; and 2. Order the refund/reimbursement of such illegally collected fees Prohibition on Charging Fees 1. Placement fees cannot be collected from a hired worker until he has signed the EENT contract & shall be covered by receipts clearly showing the amt paid 2. Manning agencies shall not charge any fee from seafarer-applicants for its recruitment & placement services. All expenses for hiring seamen shall be shouldered by foreign shipping principals. 3. No other fees/charges, including processing fees shall be imposed against any worker. ART 33: REPORTS ON EMPLOYMENT STATUS -DOLE secretary may direct all persons or entities to report on the status of employment including job vacancies, details of job requisitions, separation form jobs, wages, other terms and conditions and employment data Art 34 & Section 5 RA 10022 (amended RA 8042) PROHIBITED PRACTICES: It shall be unlawful for any indiv, entity, licensee or holder of authority: (a) 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 and Employment, or to make a worker pay or acknowledge 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 document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the purpose of documenting hired workers with the POEA, which include the act of reprocessing workers through a job order that pertains to nonexistent work, work different from the actual overseas work, or work with a different employer whether registered or not with the POEA; (d) To include 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;

(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency or who has formed, joined or supported, or has contacted or is supported by any union or workers' organization; (f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines; (h) To fail to submit 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 and Employment; (i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the Department of Labor and Employment 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 Department of Labor and Employment; (j) 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 engaged directly or indirectly in the management of travel agency; (k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing rules and regulations; (l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment; (m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment 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; and (n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency. Art 35: SUSPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY *Non License or Non-Holder of Authority any person/corp/entity w/c has not been issued a valid license or authority to engage in recruitment & placement by the Sec of

Labor, or whose license or authority has been suspended, revoked or cancelled by the POEA and the Secretary. Grounds for Revocation of License 1. Incurring an accumulated 3 counts of suspension by an agency based on final and executor orders w/in the validity period of its license; 2. Violation/s of the conditions of license; 3. Engaging in acts of misrepresentation for the purpose of securing a license or renewal thereof; and 4. Engaging in the recruitment or placement of workers to jobs harmful to the public health or morality or to the dignity of the RP Grounds for Suspension/Cancellation of License 1. The acts prohibited under Art 34; 2. Charging a fee before the worker is employed or in excess of the authorized amt; 3. Doing recruitment in places outside its authorized area; 4. Deploying workers w/o processing through the POEA; and 5. Publishing job announcements w/o POEAs prior approval Jurisdiction The DOLE Sec and the POEA Admin have concurrent jurisdiction to suspend or cancel a license Liability of Recruitment Agency Before recruiting, the agency is required to submit a doc containing its power to sue and be sued jointly and solidarily w/ the principal or foreign-based employer for any of the violations of the recruitment agreement, and the contracts of employment *Note: The recruitment agency may still be sued even if agency agreement bet recruitment agency & principal is already severed if no notice of the termination was given to the EE Exception to Liability of Recruitment agency their foreign EER despite their knowledge of its inability to pay their wages

Contract by Prncipal the EE, the manning agent in the PH is jointly & solidarily liable w/ the principal Suability of Foreign Corps n corp that, thru unlicensed agents, recruits workers in the country may be suid in and found liable by Ph courts CH 3: MISCELLANEOUS PROVISIONS (as amended by RA 10022) ART 36-37: REGULATORY AND VISITORIAL POWERS OF THE DOLE SECRETARY ART 38-39: ILLEGAL RECRUITMENT and PENALTIES (as amended by RA 10022) Illegal Recruitment any act of (CETCHUP) canvassing, enlisting, transporting, contracting, hiring, utilizing, or procuring workers and includes (CRAP) contract services, referrals, or advertising, promising for employment abroad, whether for profit or not, when undertaken by a non-licensee or non-holder of authority; Provided that any such non-licensee or non-holder of authority who in any manner, offers or promises for a fee employment abroad to 2 or more persons shall be deemed so engaged. by a non-licensee or non-holder of authority or a licensee or a holder of authority: 1. Those prohibited practices under Art 34; 2. Failure to actually deploy w/o valid reason as determined by DOLE; 3. Failure to reimburse expenses incurred by the worker in connection w/ his documentation & processing for purposes of deployment, in cases where the deployment does not actually take place w/o the workers fault; and 4. Recruitment & placement activities of agents or representatives appointed by a licensee, whose appointments were not previously authorized by the POEA shall likewise constitute illegal recruitment. Elements of Illegal Recruitment 1. The offender is a licensee/non-licensee or holder/non-holder of authority engaged in the recruitment & placement of workers; and 2. The offender undertakes either any recruitment activities devided under Art 13 (b) or any prohibited practices in Art 34 Simple Illegal Recruitment Where a person:

1. undertakes any recruitment activity defined under Art 13(b) or any prohibited practice enumerated under Arts 34 & 38 of the LC; and 2. does not have a license or authority to lawfully engage in the recruitment & placement of any workers. Illegal Recruitment in Large Scale further requires a 3rd element: 3. The offense is committed against 3/more persons, individually or as a group Illegal Recruitment as Economic Sabotage: 1. When illegal recruitment is committed by a syndicate (when 3/more persons conspire or confederate w/ one another in carrying out an unlawful or illegal transaction, enterprise or scheme); 2. When illegal recruitment is committed in a large scale (if committed against 3/more persons individually or as a group Consequences of Conviction 1. Automatic revocation of license/authority; 2. Forfeiture of the cash & surety bonds; 3. Conviction for the crime of estafa, if found guilty thereof Illegal Recruitment vs Estafa egal recruitment is malum prohibitum,

Acts Constituting Estafa - the accused represented themselves to complainants to have the capacity to send workers abroad although they did not have any authority or license, enabling them to obtain placement fee Venue of criminal action arising from Illegal Recruitment The complainant may, at his option file at the RTC of the province/city: a.) where the offense was committed; or b.) where the offended party resides at the time of the commission of the offense Penalties

(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than twelve (12) years and one (1) day but not more than twenty (20) years and a fine of not less than One million pesos (P1,000,000.00) nor more than Two million pesos (P2,000,000.00). (b) The penalty of life imprisonment and a fine of not less than Two million pesos (P2,000,000.00) nor more than Five million pesos (P5,000,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as defined therein. Provided, however, That the maximum penalty shall be imposed if the person illegally recruited is less than eighteen (18) years of age or committed by a non-licensee or non-holder of authority. (c) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less than Five hundred thousand pesos (P500,000.00) nor more than One million pesos (P1,000,000.00). If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported without further proceedings. In every case, conviction shall cause and carry the automatic revocation of the license or registration of the recruitment/manning agency, lending institutions, training school or medical clinic." Absence of receipts evidencing payment, not fatal to prosecutions case for illegal recruitment as long as the witnesses can positively show through their respective testimonies that the accused is the one involved in prohibited recruitment Liability of Local EEnt agency solidarily liable w/ the foreigh principal for unpaid salaries of a worker recruited. Before recruiting, the agency is required to submit a doc containing its power to sue and be sued jointly and solidarily w/ the principal or foreign-based EER for any of the violations of the recruitment agreement and the contracts of EEnt

Liability of Company Engaged in Illegal Recruitment may be held as principal, together his EER, if it is shown that he actively & consciously participated in illegal recruitment Issuance of search warrant/warrant of arrest

search or arrest warrants however, since it has been considered administrative and regulatory in nature, it may still do so 1. 2. By virtue of a judicial warrant issued by the RTC, MTC judge (Sec 2 Article 3 of the 1987 Constitution) Without judicial warrant by virtue of Sec 5 Rule 113 of the Rules of Criminal Procedure (warrantless arrest) exception is in cases of deportation whom the President or the Commissioner of Immigration may order arrested, following a final order of deportation TITLE 2: EMPLOYMENT OF NON-RESIDENT ALIENS *Alien Employment Permit (AEP) required for entry into the country for employment purposes and is issued after determination of the non-availability of a person in the pH who is competent, able and willing at the time of application to perform the services for w/c the alien is desired AEP Employment Permit Required 1. all foreign nationals seeking admission to the PH for the purpose of EENT; 2. all non-resident foreign nationals already working in the PH; 3. non-resident foreign nationals admitted to the PH on non-working visas and who wish to seek EENT; and 4. missionaries or religious workers who intend to engage in gainful EENT. *Note: AEP should be secured regardless of the source of compensation and duration of the EENT, whether the EENT is part-time or temp An AEP is issued based on the ff: 1. Compliance by the applicant EER or the foreign national w/ the substantive & documentary requirements;

2. Determination of DOLE Sec that there is no available Filipino national who is competent, able and willing to do the job for the EER; and 3. Assessment of the DOLE Sec that the EENT of the foreign national will redound to national benefit *Note: Understudy Training Program is no longer a requirement in the issuance of AEP and the EEr has now the option to implement transfer of technology Requisite for EENT of Resident Aliens: required to secure their Alien Employment Registration Cert (AERC) Exemption from Permit 1. All members of the Diplomatic service and foreign govt officials accredited by and w/ reciprocity arrangement w/ the Ph govt; 2. Officers and staff of international orgs of w/c the PH is a member, and their legitimate spouses desiring to work in the PH; 3. Foreign nationals elected as members of Governing Board who do not occupy any other position, but have only voting rights in the corp; 4. All foreign nationals granted exemption by law; 5. Owners & representatives of foreign nationals whose companies are accredited by the POEA who come to the PH for a limited period and solely for the purpose of interviewing Filipino applicants for EENT abroad; 6. Foreign nationals who come to the PH to teach, present and/or conduct research studies in univs and colleges as visiting, exchange or adjunct professors under formal agreements bet the univs or colleges in the PH an foreign univs or colleges; or bet the Ph govt and foreign govt; provided that the exemption is on a reciprocal basis; and 7. Resident foreign nationals. Grounds for denial of Application of AEP 1. Misrepresentation of facts in the application; 2. Submission of falsified docs; 3. The foreign national has a derogatory record; or 4. Availability of a Fil who is competent, able and willing to the job intended for the alien.

Grounds for suspension of AEP 1. The continued stay of the foreign national my result in damage to the interest of the industry of the country; and 2. the EENT of the alien is suspended by the EER or by the order of the court Grounds for revocation of AEP 1. Non-compliance w/ any of the requirement/conditions for w/c the AEP was issued; 2. Misrepresentation of facts in the application; 3. Submission of falsified docs; 4. Meritorious objection or information against the EENT of foreign national as determined by the Regional Dir; 5. Foreign national has a derogatory record; and 6. EER has terminated the EENT of the foreign national. Validity of EENT Permit provides otherwise, w/c shall in no case exceed 5yrs thereof. Rule on Nationalized Business GR: Foreigners may NOT be employed in certain nationalized business. Anti-Dummy Law 2-A prohibits the EENT of aliens in entities engaged in business whose exercise or enjoyment is reserved only to Fils or to corporations or assocs whose capital should be at least 60% Fil-owned 1. Where the Sec of Justice specifically authorizes the EEnt of technical personnel; 2. Aliens who are members of the Board of directors of corps in proportion to their allowable participation in the capital of such entities; and 3. Enterprises registered under the Omnibus Investment Code in case of technical, supervisory or advisory positions, but for a limited pd. Art 41. PROHIBITION AGAINST TRANSFER OF EENT

1. Aliens shall not transfer to another job or change his EER w/o prior approval of the Sec of Labor; 2. Non-resident aliens shall not take up EENT in violation of the provisions of the Code. Note: Violations of the abovementioned acts will subj the alien to the punishment in Art 289 & 290 and to deportation after service of sentence BOOK 2: HUMAN RESOURCES TITLE 1: TECHNICAL EDUCATION AND SKILLS DEVT AUTHORITY Art 43-56 TESDA - replaced the National Manpower & Youth Council under RA 7796 Statement of Goals & Objectives 1. To attain international competitiveness; 2. To meet demands for quality middle-level manpower; 3. To disseminate scientific & technical knowledge base; 4. To recognize & encourage the complementary roles of pub & private institutions; and 5. To inculcate desirable values. Middle-level Manpower 1. Those who have acquired practical skills & knowledge through formal or nonformal educ & training equivalent to at least a secondary educ but preferably a postsecondary educ w/ a corresponding degree/diploma; or 2. Skilled workers who have become highly competent in their trade or craft as attested by industry. TITLE 2: TRAINING & EMPLOYMENT OF SPECIAL WORKERS CH1: APPRENTICES Art 57 STATEMENT OF OBJECTIVES FOR THE TRAINING & EENT OF SPECIAL WORKERS 1. To help meet the demand of the economy for trained manpower; 2. To establish a national apprenticeship program; and 3. To establish apprenticeship standards for the protection of apprentices. Art 58: DEFINITION OF TERMS

Apprenticeship practical training on the job supplemented by related theoretical instruction, for a highly skilled or technical instruction for a period of 3-6 months Apprentice a person undergoing training for an approved apprenticeable occupation during an established period assured by an apprenticeship agreemt Apprenticeable Occupation an occupation officially endorsed by a tripartite body and approved for apprenticeship by the TESDA (no longer the Sec of Labor) Apprenticeship Agreement an EENT contract wherein the EER binds himself to train the apprentice and the apprentice in turn accepts the terms of training On-the-job training practical work experience through actual participation in productive activities given to or acquired by an apprentice Highly technical industries a trade, business, enterprise, industry or other activity, w/c is engaged in the application of advanced technology Art 59: QUALIFICATIONS OF APPRENTICES 1. At least 15 y/o, provided that if below 18 y/o, he shall not be eligible for hazardous occupation; 2. Physically fit for the occupation in w/c he desires to be trained; 3. Possess vocational aptitude and capacity for the particular occupation as established through appropriate tests; and 4. Possess the ability to comprehend and follow oral & written instructions. Note: Total physical fitness is not required of the apprentice-applicant unless it is essential to the expeditious and effective learning of the occupation. Only physical defects w/c constitute real impediments to effective perf as determined by the plant apprenticeship committee may dispqualify an applicant Art 60: EMPLOYMENT OF APPRENTICES Qualifications to be met by EER: 1. Only EERS in highly technical industries may employ apprentices; and 2. Only in apprenticeable occupations as determined by the TESDA. Requisites for a Valid apprenticeship 1. Qualifications of apprentice are met; 2. Apprentice earns not less than 75% of the prescribed minimum salary; 3. Apprenticeship agreemt duly executed & signed;

4. Apprenticeship program must be approved by the TESDA; otherwise the apprentice shall be deemed a regular EE; 5. Period of apprenticeship shall not exceed 6 months Note: at the termination of the apprenticeship, the EER is not required to continue the EENT There is no valid apprenticeship if: 1. The agreement submitted to the TESDA was made long after the workers started undergoing apprenticeship; 2. The work performed by the apprenticeship was different from those allegedly approved by TESDA; 3. The workers undergoing apprenticeship are already skilled workers; 4. The workers were required to continue undergoing apprenticeship beyond 6mos. Art 61: CONTENTS OF APPRENTICESHIP AGREEMENT 1. Full name & address of the contracting parties; 2. Date of birth of the apprentice; 3. Name of trade, occupation or job in w/c the apprentice shall be trained and the dates on w/c such training will begin and will proximately end; 4. Approx number of hrs of OJT w/ compulsory theoretical instruction w/c the apprentice shall undergo during his training; 5. Schedule of the work processes of the trade/occupation in w/c the apprentice shall be trained and the approx. time to be spent on the job in each process; 6. Graduated scale of wages to be paid to the apprentice; 7. Probationary pd of the apprentice during wc either party ay summarily terminate their agreemt; and 8. A clause that if the EER is unable to fulfill his training oblig, he may transfer the agreemt, w/ the consent of the apprentice to any other EER who is willing to assume such oblig. *Working Hrs shall not exceed the max number of hrs prescribed by law, if any, for a worker of his age and sex. Time spent in compulsorily theoretical instruction shall be considered hrs of work. An apprentice not otherwise barred by law from working 8hrs may be requisted by his EER to work overtime and paid accordingly. Art 62: SIGNING OF APPRENTICESHIP AGREEMENT

Who signs: 1. The apprentice, if of age, otherwise, by his parent or guardian, or in the latters absence, by an authorized rep of TESDA; and 2. EER or his duly authorized rep Art 63: VENUE OF APPRENTICESHIP PROGRAM 1. Within the sponsoring firm, establishment or entity; or 2. Within a DOLE training center or other public training institutions; or 3. Initial training in trade fundamentals in a training center or other institutions w/ subsequent actual work participation w/in the sponsoring firm or entity during the final stage of training. Art 64: SPONSORING OF APPRENTICESHIP PROGRAMS BY: 1. The plant, shop or premises of the EER or firm concerned if the apprenticeship program is organized by an indiv EER or firm; 2. The premises of one or several firms designated for the purpose by the organizer of the program if such organizer is an assoc of EERS, civic group and the like; and 3. DOLE Training Center or other public training institutions w/ w/c the TESDA has made approp arrangements. Art 65-67: VIOLATION OF APPRENTICESHIP AGREEMENT Art 65: Investigation of violation of apprenticeship agreement 1. Either party to an agreemt may terminate the same after the probationary pd only for a valid cause. 2. Action may be initiated upon complaint of any interested person or upon DOLEs own initiative. Valid Cause to terminate agreement 1. By the EER: a. Habitual absenteeism in OJT and related theoretical instructions; b. Willful disobedience of company rules or insubordination to lawful order of a superior; c. Poor physical condition, permanent disability or prolonged illness w/c incapacitates the apprentice from working; d. Theft or malicious destruction of company property and/or equipment

e. Poor efficiency or perf on the job or in the classroom for a prolonged period despite warnings duly given to the apprentice; and f. Engaging in violence or other forms of gross misconduct inside the EERs premises 2. By the apprentice: a. Substandard or deleterious working conditions w/in the EERs premises; b. Repeated violations by the EER of the terms of the apprenticeship agreemt; c. Cruel or inhumane treatment by the EER or his subordinates; d. Personal problem s/c in the opinion of the apprentice shall prevent him from a satisfactory perf of his job; and e. Bad health or continuing illness. Art 66: Appeal Labor w/in 5 days form rcpt of the adverse decision. inal & executor. Art 67 Exhaustion of Administrative Remedies 1. The exhaustion of administrative remedies is a condition precedent to the institution of action. 2. The plant apprenticeship committee shall have initial responsibility for settling differences arising out of apprenticeship agreements. Art 68: APTITUDE TESTS -employers/entities with duly recognized apprenticeship agreements shall provide the aptitude tests or the DOLE (service free of charge) if without adequate facilities for the purpose Art 69: THEORETICAL INSTRUCTION -done by the employer or of not prepared to assume responsibility, may be delegated to an appropriate govt agency Art 70: Exemptions: Voluntary Organizations of Apprenticeship Progs a. AP is a voluntary undertaking f EErs b. President may require compulsory training of apprentices in certain trades when natl security so demands

c. Services of private companies in apprenticeable trades utilized by foreign technicians are required to setup apprenticeship programs Art 72: APPRENTICES WITHOUT COMPENSATION -those whose OJT is required by the school or a training prog curriculum -as a requirement for graduation or board exam *Note: Working Scholar: Liability of School (Filamer Christian Institute vs IAC, GR 75112, Aug 17, 1992) CH2: LEARNERS Art 73. Learners are 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. Art 74. 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. Art 75. Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include: a. b. c. The names and addresses of the learners; The duration of the learnership period, which shall not exceed three (3) months; The wages or salary rates of the learners which shall begin at not less than seventy-five percent (75%) of the applicable minimum wage; and *A commitment to employ the learners if they so desire, as regular employees upon completion of the learnership. All learners who have been allowed or suffered to work during the first two (2) months shall be deemed regular employees if training is terminated by the employer before the end of the stipulated period through no fault of the learners. *The learnership agreement shall be subject to inspection by the Secretary of Labor and Employment or his duly authorized representative.

Art 76. Learners employed in piece or incentive-rate jobs during the training period shall be paid in full for the work done. *Learnership and Apprenticeship Similarity: 1. Both are training periods for jobs requiring skills that can be acquired through actual work experience 2. Paid wages 25% lower than the minimum wage Differences: 1. Learner trains in a semi-skilled job, not more than 3mos; Apprentice trains in a highly skilled job in highly technical industries, not more than 6mos 2. Learners are hired by employers; apprentices are not hired by the employers 3. Learners allowed even for nontechnical jobs; apprentices allowed only in highly technical industries and only in apprenticeable occupations approved by DOLE CH3: HANDICAPPED WORKERS ART 78. Handicapped workers are those whose earning capacity is impaired by age or physical or mental deficiency or injury. ART 79. 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. ART 80. 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 applicable legal minimum wage; c. The duration of employment period; and d. The work to be performed by handicapped workers. e. The employment agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representative.

ART 81. Subject to the appropriate provisions of this Code, handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they are hired. *Magna Carta for Disabled Persons ensures equal opportunities for disabled persons and prohibits discrimination against them *qualified disabled persons may become regular employees CONDITIONS OF EMPLOYMENT WORKING CONDITIONS & REST PERIODS Art 82. COVERAGE Applied to ALL employees in all establishments & undertakings whether for profit or not EXCEPT: i. Government employees - EES of govt agencies & govt corps governed by the CSC rules and regulations ii. Managerial employees those whose primary duty consists of the mgt of the establishment in w/c they are employed or of a dept/subd thereof, and to other officers/members of the managerial staff Members/Officers of the Managerial Staff: Duties & Responsibilities 1. Their primary duty consists of the performance of work directly related to mgt policies of their ER; 2. They customarily & regularly exercise discretion and independent judgment; 3. They regularly & directly assist the managerial EE whose primary duty consists of the mgt of a dept of the establishment in w/c they are employed; 4. They execute, under gen supervision, work along specialized/technical lines requiring special training, experience or knowledge; 5. They execute, under gen supervision, special assignments and tasks; and they do not devote more than 20% of their hours worked in a work-week to activities w/c are not directly & clearly related to the performance of their work iii. Field personnel

 non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined w/ reasonable certainty -employees whose time and performance is unsupervised by the employer including those engaged in task contract basis, purely commission basis, or those paid on a fixed amount for performing work irrespective of time consumed iv. Employers family members who are dependent on him for support v. Domestic helpers vi. Persons in the personal service of another -if services are performed in the employers home which are usually necessary in the maintenance or enjoyment thereof vii. Workers paid by result per piece/per task - laborer/EE w/ no fixed salary, wage, or remuneration but receiving a compensation from his ER an uncertain & variable amount depending upon the work done or the result of said work (piece work), irrespective of the time employed *EER-EE Relationship is not dependent upon the agreement of the parties. The characterization by law prevails over that in the contract. -EE relshp is not a matter of stipulation but a question of law d. depends on the facts of each case *EER-EE relship may cover core/non-core activities of the EERs business; the kind of work is not the definitive test of whether the worker is an EE or not. Employer any person, natural or juridical, domestic or foreign, who carries on in the PH any trade, business, industry, undertaking or activity of any kind and uses the services of another person who is under his order as regards employment Employee any person who performs services for an EER in w/c either or both mental & physical efforts are used and who receives compensation for such services, where there is an EER-EE relationship ELEMENTS OF EE-EER RELSHIP (Four-fold Test) i. the selection and engagement of the EE; ii. the payment of wages; iii. the power of dismissal;

iv. the employers power to control the EE w/ respect to the means & methods by w/c the work is to be accomplished (most important) Independent contractors can employ others to work & accomplish contemplated result w/o consent of contractee, while EE cannot substitute another in his place w/o consent of his EER. TESTS OF EENT Relship: 1. Right of Control Test where the person for whim the services are performed reserves a right to control not only the end to be achieved but also the means to be sued in reaching such end. Plus: the courts added the existing economic conditions prevailing bet the parties (like payrolls) in determining the existence of EER-EE Relship. 2. The Economic Dependence Test observes the need to consider the existing conditions bet the parties Best approach: Apply the two-tiered test involving: 1. the putative employers power to control the EE w/ respect to the means and methods by w/c the work is to be accomplished; and 2. the underlying economic realities of the activity or relationship Circumstances: a. the extent to w/c the services performed are an integral part of the employers business; b. to the extent of the workers investment in equipment and facilities; c. the nature and degree of control exercised by the employer; d. the workers opportunity for profit and loss; e. the amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise; f. the permanency and duration of the relationship between the worker and the employer; and g. the degree of dependency of the worker upon the employer for his continued employment in that line of business Standard of economic dependence whether the worker is dependent on the alleged employer for his continued employment in that line of business

Evidence of employment (substantial evidence) i. id card ii. vouchers of salaries iii. sss registration iv. memorandum not a test of EEnt status; pakyaw basis does not mean workers are independent contractors *Independent contractors- generally rely on their own resources * Unions and unregistered associations can be EERs of the persons who work for them *Existence of Employee Relationship Determined by law not by Contract When Employment relationship present: a. salaried insurance agent b. school teachers c. jeepney driver; taxi driver; barber; boundary-hulog; truck driver d. piece-rate workers e. street-hired cargadores f. workers in movie projects *Labor Union or Unregistered Associations may be considered employers -they transact business and perform and carry out activities as employers even if without legal personality of its own When Emlpoyment relationship absent: GR: An employee is not a contractor; a contractor is not an employee. GR: While EE-ER relationship exists bet a job contractor and the workers that he hires, no such relationship exists bet those workers and the job contractee, the contractors client. enters into contract to render job or service; ER-EE relationship b/w the contractor and the people he hires -only contractor does not enter into contract to render job or service but serve as an agent of the true employer by merely recruiting & supplying people; ER-

EE relationship b/w workers and the enterprise to which they are supplied (prohibited by law) a. b. does not have substantial capital or investment (tools, equipment, machineries) which relates to the job or work to be performed does not have a right of control over the employees in the performance of the work *Conditions of Employment laid down by law or by contract concluded individually w/ an EE or collectively w/ a group 2 Kinds of Employment Conditions a. Statutory provided for by law b. Voluntary initiated by the ER unilaterally or by contractual stipulation Art 83. NORMAL HOURS OF WORK shall not exceed 8 hrs/day Purpose of 8-hr Labor law: a. to safeguard the health & welfare of the laborer/EE b. to minimize unemployment by forcing ERs, in cases where more than 8-hr operation is necessary, to utilize different shifts to laborers/EEs working only for 8 hrs each *Part-time Work not prohibited. (What the law regulates is work exceeding 8hrs) GR: Wage & benefits of a part-timer are in proportion to the number of hrs worked. Work hrs of Health Personnel Health personnel shall include, but not limited to, resident physicians, nurses, nutritionists, dieticians, pharmacists, social workers, lab technicians, paramedics, psychologists, midwives, attendants, and all other hospital & clinic personnel like medical secretaries - 40-hour workweek not applicable if there is a training agreement (duly approved by appropriate govt agency) between the resident physician and the hospital - 8hrs a day for 5 days; on the 6th day addtl 30% on top of regular wage -health personnel in govt service not included; covered by RA 7305

12-hr Workshift with Overtime - through a contract freely entered into, workshift may exceed 8hrs w/ corresponding overtime pay. Art 84. HOURS WORKED shall include: 1. all time during w/c an EE is required to be on duty or to be at a prescribed workplace, and 2. all time during w/c an EE is suffered or permitted to work Rest periods of short duration during work hrs shall be counted as hours worked Principles in Determining Hours Wrked 1. All hrs are hrs worked w/c the EE is required to give to his ER, regardless of WON such hrs are spent in productive labor or involve physical/mental exertion; 2. An EE need not leave the premises of the workplace in order that his rest period shall not be counted, it being enough that he stops working, may rest completely and may leave his workplace, to go elsewhere, whether w/in or outside the premises of his workplace; 3. If the work performed was necessary, or it benefited the ER, or the EE could not abandon his work at the end of his normal working hrs because he had no replacement, all time spent for such work shall be considered as hrs worked, if the work was w/in the knowledge of his ER/immediate supervisor; 4. The time during w/c an EE is inactive by reason of interruptions in his work beyond his control shall be considered time either if the imminence of the resumption of work requires the EEs presence at the place of work or if the interval is too brief to be utilized effectively & gainfully in the EEs own interest. Pre/Postliminary Activities - deemed performed during working hrs, where such activities are controlled/required by the ER and are pursued necessarily & primarily for the ERs benefit Waiting Time

- controlling factor is WON time spent in idleness is so spent predominantly for the ERs benefit or for the EEs 1. Engaged to Wait waiting time spent by EE shall be considered as working time if waiting is considered an integral part of his work or if the EE is required/engaged by an ER to wait 2. Waiting to Engage idle time is not work time Working While Eating GR: EE must be completely relieved from duty for the purpose of eating regular meals. *The meal time is not compensable if he is completely free from duties during his meal period even though he remains in the workplace. while eating (ex. Stand-by for emergency work) - considered overtime if 1hr meal period is reduced Working While Sleeping GR: 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 EEs home. irly desirable conditions, even though EE is required to remain on or near the ERs premises and must hold himself in readiness for a call to action EeNT, it is not working time On Call - although EE can rest completely and may not be actually at work, if they are required to be in their place of work before/after the regular working hrs and w/in the call of their ERs, the time they stay in the place of work should not be discounted from their working hrs - EE cannot use the time effectively for his own purposes is working while on call. - Not on call: EE is not required to remain on the ERs premises but is merely required to leave work at his home or w/ company officials where he may be reached *Public health workers On call status refers to a condition when public health workers are called upon to respond to urgent or immediate need for health/medical

assistance or relief work during emergencies such that he/she cannot devote the time for his/her own use. With Cellular phone or Other Contact Device - if EE is kept w/in reach through a cell phone, he is NOT on call Travel Time depends on the kind of travel involved a. Travel from home to work not worktime but when EE receives an emergency call outside his regular working hrs and is required to travel to his regular place of business or some other worksite it is considered working time b. Travel that is all in a days work time spent by an EE in travel as part of his principal activity is considered hrs worked c. Travel away from home travel that keeps an EE away from home overnight - work time when it cuts across the EEs workday - any work the EE is required to perform while travelling is hrs worked Lectures, Meetings and Training Programs not worktime if: a. Attendance is outside of the EEs regular working hrs; b. Attendance is in fact voluntary; and c. The EE does not perform any productive work during such attendance. * must meet all criteria Grievance Meeting time spent in adjusting grievance bet ER & EE during the time the EEs are required by the ER to be on the premises is hrs worked f a bona fide union is involved, it depends on the CBA or the custom practice under the CBA Semestral Break hrs worked by teachers in private schools; entitled to salary and emergency cost-of-living allowance WORK HOURS OF SEAMEN Requisites for non-counted rest period a. he ceases to work b. may rest completely

c. leave or may leave at his will the spot where he actually stays while working, to go somewhere else, whether w/in or outside the ship HOURS WORKED: EVIDENCE & DOUBT GR: When an ER alleges that his EE works less than the normal hrs of ENT as provided for in law, ER bears the burden of proving his allegation w/ clear & satisfactory evidence Art 85. MEAL PERIODS must be at least 60minutes time-off for regular meals GR: meal periods are not compensable Exceptions: A. where the lunch period or mealtime is predominantly spent for the ERs benefit (considered overtime) ;or B. where it is less than 60 minutes (but not less than 20minutes) must be with full pay when: 1. where work is non-manual (does not involve strenuous physical exertion); 2. where the establishment regularly operates not less than 16hrs a day 3. in cases of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid serious loss w/c the ER would otherwise suffer; 4. where the work is necessary to perevent serious loss of perishable goods C. If less than 20 minutes it becomes only a rest period and is thus considered work time *Note: Meal periods during overtime work is not given to workers performing OT bcoz OT is usually for a short period Shortened Meal Break Upon EEs request - EEs may request that their meal period be shortened so that they can leave work earlier, it is not compensable Requisites 1. EEs voluntarily agree in writing and waive their OT pay; 2. No diminution in the salary and other fringe benefits of the EEs already existing; 3. Work is not physically strenuous and they are provided w/ adequate coffee breaks in the morning & afternoon; 4. Value of benefits is equal to the compensation due them;

5. OT pay will become due and demandable if they are permitted/made to work beyond 4:30 pm; and 6. The arrangement is of temporary duration. *Note: The 8-hr work period does not include the meal break. EEs may leave the company premises as long as they return to their posts on time. Art 86 NIGHT SHIFT DIFFERENTIAL - at least 10% of his regular wage for each hr of work performed b/w 10PM and 6AM - given as premium for working at a time for sleep & rest - in addition to the exceptions in Art 82, NSD is n/a to EEs of retail and service establishments regularly employing 5 employees and below - if work done from 10pm-6am is OT work, then the 10% night shift differential should be based on the OT rate - not waivable (founded on public policy) - the receipt of OT pay will not preclude payment of NSD pay - burden of proof of payment of NSD - ER Art 87. OVERTIME WORK Overtime Pay additional compensation for work performed beyond 8hrs w/in the workers 24-hr workday regardless whether the work covers 2 calendar days Rates 1. on a regular work day regular wage plus at least 25% thereof on succeeding hrs 2. on a holiday or rest day holiday/rest day rate plus at least 30% thereof on succeeding hrs * CBA may stipulate higher OT pay rate Actual Work Days as Divisor PALEA v PAL (1976) PALEA & PAL Supervisors Assoc (PALSA), commenced an action v PAL in the CIR praying that the latter be ordered to revise the method of computing the basic daily & hourly rates of its monthly-salaried EEs and necessarily to pay them their accrued salary differentials PALs Formula: monthly salary x 12/365 days in a yr = Basic daily rate

basic daily rate/8 = Basic hourly rate Proposed Formula: Monthly salary x 12/actual working days = BDR BDR/8 = BHR Paid Unworked days of a monthly-paid EE - ER may stipulate that EEs monthly salary constitutes payment for all the days of the month including rest days & holidays if when converted into its daily equivalent would still meet minimum wage How work day is counted A day the 24-hr period w/c commences from the time the EE regularly starts to work - regardless of the day of the week or hr of the day - any work in excess of the 8hrs w/in the 24-hr pd is considered as OT regardless of whether the work covers 2 calendar days - any work in excess of 8 hrs not falling w/in the 24-hr pd is not considered as OT work a. Broken Hrs of Work the minimum normal working hrs need not be continuous to constitute as the legal working day of 8 hrs as long as the 8 hrs is w/in a work day b. Work in Different Shifts in a Work day work in excess of 8hrs w/in a work day is considered as OT regardless of whether this is performed in a work shift other than at w/c the EE regularly works (as long as wi/in the 24-hr workshift) Example: EEs shift is 10pm-6am. He is asked to take a shift of another EE who is absent from 2pm-10pm (his regular work day would be from 10pm2nd shift is considered OT because it is still w/in his work day GR: An express instruction from the ER to the EE to render OT work is not required for the EE to be entitled to OT pay. It is sufficient that the EE is permitted or suffered to work. Neither is an express approval by a supervisor needed. days & holidays, written authority after office hrs is required for the EE to be entitled to compensation such work.

ired and no work could be done (i.e. brownout, machine repair, lack of rawmats) OT Work of Seamen whether or not the sailors are entitled to OT pay is not whether they were on board and cannot leave ship beyond the regular 8 working hrs a day, but whether they actually rendered service in excess of 8 hrs

Action to Recover Compensation - estoppel & laches cannot be invoked against EEs b/c that would be contrary to the spirit of the 8-hr Labor Law, under w/c the laborers cannot waive their R to extra compensation - OT pay in arrears retroacts to the date when services were actually rendered GR: Right to OT pay cannot be waived expressly or impliedly. Any stipulation in the contract that the laborer shall work beyond the regular 8 hrs w/o addtl compensation for the extra hrs is contrary to law and null and void ceptions 1. When the waiver is made in consideration of benefits & privileges w/c may be more than what will accrue to them in OT pay; and 2. Compressed workweek (CWW) the number of work days is reduced but the number of work hrs in a day is increased to more than 8, but no OT pay may be claimed. Requisites of Compressed Workweek to be valid: 1. The scheme is expressly and voluntarily supported by majority of the EEs affected; 2. In firms using substances, or operating in conditions that are hazardous to health, a certification is needed from an accredited safety org or the firms safety committee that work beyond 8hrs is w/in the limits/levels of exposure set by DOLEs occupational safety & health standards; 3. The DOLE Regional Office is notified. Effects of a Compressed Workweek

1. Unless there is a ore favorable practice existing in the firm, work beyond 8hrs will not be compensable by OT premium, provided the total number of hrs worked per day shall not exceed 12hrs. (Work performed beyond 2. EEs under a CWW scheme are entitled to meal periods of at least 60 minutes. The R of EEs to restday, holiday pay, rest day pay or leave in accdance w/ law/CBA/company practice shall not be impaired. 3. Adoption of the CW scheme shall in no case result in diminution of existing benefits. Reversion to the normal 8-hr work day shall not constitute diminution of benefits. (Reversion is considered a legitimate exercise of mgt prerogative, provided that the ER shall give the EEs prior notice of such reversion w/in a reasonable period of time. * EE may validly waive the R to OT under a CWW program, provided he did so voluntarily, w/ full understanding of what he was doing and in consideration for the quit claim is credible & reasonable. *Note: EEs promoted from rank-and-file to supervisory lose their OT pay and other benefits under Art 82-96 Illustrations of OT Computations 1. Regular Workdays Reg Basic Wage + 25% thereof 2. Legal or Regular Holidays Holiday Wage Rate (200%) + 30% thereof 3. Rest Days or Special Holidays Rest day/Special Holiday wage rate (130%) + 30% thereof 4. Scheduled Rest Day w/c is also a Special Holiday Rest day & special holiday wage rate (150%) + 30% thereof 5. Scheduled rest day w/c is also a legal or regular holiday Rest day & legal holiday wage rate (260%) + 30% thereof 6. Double holiday Double holiday wage rate (400%) + 30% thereof the same day and he does not work (Law provides that he shall get his regular daily wage of each regular holiday) works on that day, he gets 400%

*OT pay integrated in Basic Salary (composite/package pay/all-inclusive salary) not illegal nor unusual for executives or managers -managerial EEs, there must be: 1. A clear written agreement 2. Agreed legal wage rate and OT pay computed separately are equal or higher than the separate amounts legally due FLEXIBLE WORK ARRANGEMENTS - alternative work arrangements or schedules other than the traditional or standard work hrs, workdays or workweek. ERs may adopt them after due consultation w/ EEs, taking into account the adverse consequence of the situation on the performance and financial condition of the company. - DOLE Reg Ofc must be notified prior to implementation - In addition to CWW, the FWAs include: 1. Reduction of workdays where normal workdays per week are reduced but should not last for more than 6 months 2. Rotation of workers where the EEs are rotated/alternately provided work w/in the workweek 3. Forced leave EEs are required to go on leave for several days or weeks, utilizing their leave credits if there are any 4. Broken-time schedule the work schedule is not continuous but the number of hrs w/in the day or week is not reduced 5. Flexi-holiday schedule Ees agree to avail themselves of the holidays at some other days, provided that there is no diminution of existing benefits as a result of such arrangement Art 88. UNDERTIME NOT OFFSET BY OVERTIME - Whether on the same day or any other day is prohibited by law - Permission given to the EE to go on leave on some other day of the week shall not exempt ER from paying the addtl compensation Reason: EEs hourly rate is not equivalent to OT rate Proper method: Deduct the UT from the accrued leave, if any Art 89. EMERGENCY OT WORK GR: EEs cannot be compelled to render OT work against their will

1. In times of war or any national or local emergency declared by Congress/Chief Exec; 2. To prevent loss or damage to life or property due to emergencies and force majeure; 3. When there is urgent work needed on machines & equipment; 4. When work is necessary to preserve perishable goods; 5. To prevent serious obstruction or prejudice to the business or operations of the ER; and 6. When it is necessary to avail of favorable weather or environmental conditions where performance or quality f work is dependent thereon. Art 90. COMPUTATION OF ADDTL COMPENSATION *Cash wage excludes noncash value of facilities - if only cash wage is the basis of OT rate, it is unfair to the worker because as defined in Art 97, wage includes the value of facilities, hence the value of facilities should not be excluded when computing OT pay OT rate should be based on the regular wage (include the value of facilities) Ch. 2 WEEKLY REST PERIODS Art 91. RIGHT TO WEEKLY REST DAY Duration: at least 24 consecutive hrs after every 6 consecutive normal work days - all establishments & enterprises may operate or open for business on Sundays & holidays provided that the EEs are given the weekly rest day & the benefits provided under the law Who Determines: The ER determines and schedules the weekly rest period subj to the ff: 1. CBA; 2. Rules & regulations issued by the Sec of Labor; and 3. EEs preference based on religious grounds. (When such preference will prejudice the business of the ER, and no other remedial measures are available, the weekly rest period may be scheduled to meet the EEs choice for at least 2 days a month Art 92. WHEN THE ER MAY REQUIRE WORK ON A REST DAY GR: The ER may not require the EEs to work on a rest day

1. In cases of urgent work to be performed on the machinery, equipment or installation; 2. To prevent loss or damage to perishable goods; 3. In case of actual/impending emergencies caused by force majeure to prevent loss of life and property, or imminent danger to public safety; 4. Where the nature of work requires continuous operations and the stoppage of work may result in irreparable injury/loss to the ER; 5. In the event of abnormal pressure of work due to special circumstances, where the ER cannot ordinarily be expected to resort to other measures; and 6. Under the circumstances analogous to the foregoing as determined by the Sec of Labor. *Note: The failure to work during an EEs rest day does not justify disciplinary sanction of outright dismissal, more so when justifiable grounds exist for the said failure. *Note: When an EE volunteers to work on his rest day under other circumstances, he may be allowed to do so, provided he expresses such desire in writing and he is paid the addtl compensation for working on his rest day Art 93. COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK Premium pay or Differential compensation addtl compensation for work rendered by the EE on days when normally he should not be working such as special holidays and weekly rest days *Note: This article does not prohibit a CBA stipulation for higher benefits Formulas to Compute Wages on Holidays 1. For REGULAR HOLIDAYS a. If it is an EEs regular workday i. If unworked 100% ii. If worked 1. 1st 8hrs 200% 2. excess of 8hrs Plus 30% of hourly rate of said day b. if it is an EEs rest day i. if unworked 100% ii. if worked

1. 1st 8hrs plus 30% of 200% 2. excess of 8 hrs plus 30% of hourly rate of said day 2. For declared SPECIAL DAYS such as Special Non-Working Day, Special Public Holiday, Special National Holiday and nationwide special days a. If unworked no pay, unless there is a favorable company policy, practice or CBA granting payment of wages on special days even if unworked b. If worked i. 1st 8hrs plus 30% of the daily rate of 100% ii. excess of 8hrs plus 30% of hourly rate on said day c. Falling on the EEs rest day and if worked i. 1st 8hrs plus 50% of the daily rate of 100% ii. excess of 8hrs plus 30% of hourly rate on said day 3. For those declared as SPECIAL WORKING HOLIDAY - for work performed an EE is entitled only to his basic rate List of Special Days A. Regular Holidays 1. New Years Day 2. Maundy Thursday 3. Good Friday 4. Araw ng Kagitingan 5. Labor Day 6. Independence Day 7. National Heroes Day 8. Bonifacio Day 9. Christmas Day 10. Rizal Day B. Special (Non-working) Days 1. Black Saturday 2. Ninoy Aquino Day 3. All Saints Day 4. Nov 2 5. Dec 24 6. Last Day of the Year C. Special Holiday (for all schools)

EDSA Revolution Anniversary D. Local Holiday Those declared by law or ordinance Regular Holiday Special Day * Compensable even if unworked subj to certain conditions * Not compensable if unworked * Limited to the list enumeration * Not exclusive since a law or ordinance may provide for other special holidays * Rate is 200% of the regular rate if worked * Rate is 130% of the regular wage if worked Art 94. RIGHT TO HOLIDAY PAY Holiday pay a days pay given by law to an EE even if he does not work on a regular holiday. - It is limited to the regular/legal holidays listed by law. - EE should not have been absent w/o pay on the working day preceding the regular holiday * and service establishments regularly employing 10 workers or less Rule on Compensability compensable whether worked or unworked subj to certain conditions. extra, aside from the usual holiday pay to its montly paid EEs Holiday pay of Monthly paid EEs GR: for the company w/ a 6-day working schedule, the divisor 314 already means that the legal holidays are included in the monthly pay of the EE. The divisor is arrived at by subtracting all Sundays from the total number of calendar days in a yr GR: for a company w/ a 5-day working schedule, the divisor 261 means that the holiday pay is already included in the montly salary of the EE Holiday pay of Teaching Personnel Paid per Lecture Hr

- not entitled to payment of holiday pay since they are paid by the hrs worked; and no class days means no work for them - entitled to their regular hourly rate on days declared as special holidays or when classes are called off or shortened on acct of typhoons, floods rallies, and the like Double Holiday Pay (Araw ng Kagitingan & Good Friday on the same day) 1. 200% of the basic wage a. entitled even if said holiday is unworked b. to give EE only 100% would reduce the number of holidays under the law 2. 400% if he worked on 2 regular holidays falling on the same day 3. 520% if he worked on 2 regular holidays falling on the same day and at the same time falling on a scheduled rest day Single Holiday Rule: provided that the EE 1. worked; 2. was on leave w/ pay; or 3. was on authorized absence on the day prior to the regular holiday. Successive Regular Holidays: to be entitled to 2 successive holidays, the EE must: 1. be present on the day immediately preceding the first holiday; or 2. be on leave w/ pay. ay pay on the second regular holiday Effects of Business Closure on Holiday Pay If regular holiday occurs during: 1. Temporary or periodic shutdown and temporary cessation of work of an compensated. 2. Cessation of operation of an enterprise due to business reverses as authorized by

Ch 95. RIGHT TO SERVICE INCENTIVE LEAVE (SIL) Concept: 5 days leave w/ pay for every EE who has rendered at least 1 yr of service

One yr of service service w/in 12 months, whether continuous or broken, reckoned from the date the EE started working including authorized absences and paid regular holidays unless the number of working days in the establishment as a matter of practice/policy is less than 12 months SIL is N/A to the ff: 1. EEs of the Govt and GOCCs 2. Domestic helpers and persons in the personal service of another; 3. Managerial EEs 4. Field personnel whose performance is unsupervised or those who are paid a fixed amt for performing work irrespective of the time consumed in the performance thereof 5. Those already enjoying the said benefits 6. Those already enjoying vacation leave w/ pay for at least 5 days; 7. Those employed in establishments regularly employing less than 10 EEs * EEs engaged on task/contract basis or paid purely commission basis are not automatically exempted from the SEL unless they fall under the classification of field personnel. Conversion to Monetary Equivalent SIL is COMMUTABLE or convertible to cash if not used or exhausted at the end of the yr Basis of conversion: the salary rate at the date of commutation ALSO Entitled to SIL 1. EE illegally dismissed 2. Part-time workers 3. Piece-rate workers: a. Working inside the premises of ER & thus are under direct superv entitled b. Working outside the premises of the ER whose hours of work cannot be ascertained entitiled EEs w/ salaries above Min Wage: the difference bet the min wage and the actual salary received by the EEs cannot be deemed as their 13th month pay and SIL pay

Vacation & Sick Leave - not statutorily required but is a matter of management discretion or CBA GR: Benefits are non-cumulative and non-commutative; must be enjoyed by the EE w/in 1yr otherwise forfeited otherwise VL/SL - Mandatory Art 95 - Voluntary grant (ERs policy or CBA) - Intended to alleviate the economic condition of the workers for it acts as replacement for regular income that would not be earned during such instance - Intended to afford a laborer a chance to get a much needed rest to replenish his energy and renew his efficiency - Cannot be waived - Must be demanded in its opportune time; silence is waiver - Commutable Paternity and Maternity Leave - 7 days with full pay to all married male employees in the private and public sector - available only to first 4 deliveries of the legitimate spouse to whom the husband is cohabiting (both must be living together) - Delivery includes childbirth, miscarriage or abortion - non-commutable Parental (Solo-parent) Leave - not more than 7 working days every yr - rendered to an EE who has rendered service at least 1yr whether continuous or broken - notified the ER of its availment - has a Solo Parent Identification card - no ER shall discriminate against any solo parent EE w/ respect to terms & conditions of ENT on acct of his/her status

- a change in the status of the parent claiming benefits under this Act such that he/she is no longer alone w/ responsibility of parenthood shall terminate his/her eligibility for these benefits - not convertible to cash unless otherwise agreed Battered woman leave - female EE who is a victim of violence is entitled to paid leave of 10 days in addition to other paid leaves. - Extendible when necessity arises - EE has to submit certification from the punong brgy, kagawad, prosecutor or clerk of court than an action under RA 9262 has been filed and is pending Art 96. SERVICE CHARGES Concept: All service charges collected by hotels, restaurants, and similar establishments shall be distributed as follows: 1. 85% for all covered EEs to be equally distributed among them 2. 15% for disposition by mgt to answer for losses and breakages and distribution to EEs receiving more than P2k a month at the discretion of the mgt in the latter case *Coverage: only to hotels, restaurants, and similar - all EEs are covered, regardless of their position, designation, ENT status, *Distribution: distributed to paid EEs at least once every 2 weeks or 2x a month at interval of at least 16 days Rule in case of abolition - in case the service charge is abolished, the share of the covered EEs shall be considered integrated in their wages - the basis of the amt to be integrated shall be the average share of each EE for the past 12 months immediately preceding the abolition Pooled Tips - where an establishment does not collect service charges but has a practice/policy of pooling tips given voluntarily by its customers, the pooled tips should be monitored, accounted for and distributed in the same manner as the service charges

Title 2 WAGES Ch 1 Art 97. Definitions Person an individual, partnership, assoc, corp, business trust, legal rep, or any organized group of persons Employer any person acting directly/indirectly in the interest of an ER in relation to an EE & shall include the Govt & all its branches, subd, & instrumentalities, all govt-owned/-controlled corps & institutions, as well as non-profit private institutions/orgs. Employee - any indiv employed by an ER Agriculture includes farming in all its branches, and among other things, includes the cultivation & tillage of soil, dairying, the production, cultivation, growing & harvesting of any agricultural & horticultural commodities, the raising of livestock or poultry, and any practices performed by a famer on a farm as an incident to or in conjunction with such farming operations, but does not include the manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapples or other farm products. Employ includes to suffer or permit to work Wage paid to any EE; shall mean the renumeration 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, w/c is payable by and ER to an EE under a written/unwritten contract of ENT for work done or to be done, or for services rendered and includes the fair and reasonable value, as determined by the Sec of Labor, of board, lodging, or other facilities customarily furnished by the ER to the EE. the recompense compensation/reward of an agent, salesman, executor, trustee, receiver, factor, broker or bailee, when the same is calculated as a percentage on the amt of his transactions or on the profit of the principal Wage distinguished from Salary- denotes a higher degree of employment, or a superior grade of services and implies position or office; larger and more permanent or fixed compensation Gratuity something given freely; a gift; voluntarily given in return for a favour or services; a tip; given out of generosity of the giver to reward EEs who have satisfactorily and efficiently rendered service

 fair & reasonable value of board, lodging, or other facilities customarily furnished by the ER to the EE. a. Facilities articles or services for the benefit of the EE or his family but shall not include tools of the trade or articles or service for the benefit of the ER or necessary conduct the ERs business; part of wages - requirements for deducting value of facilities: 1) proof that it is customarily furnished by the trade, 2) provision of deductible facilities must be voluntarily accepted in writing by the EE, 3) facilities must be charged at fair and reasonable value b. Supplements extra remuneration or special privileges or benefits given to or received by the EE over and above their ordinary earnings or wages *An ER may provide, for instance, food & housing to his EEs but he may deduct their values from the EES wages to be determined by the Sec of Labor. *Snacks 70% - deducted from wages (must be authorized in writing) 30% - subsidized by the ER *Lodging facility the cost of operation & maintenance, including adequate depreciation plus amt of capital invested by the ER, provided that if the total is more than the fair rental value ( or the fair price of the commodities or facilities offered for sale) *Fair rental value -shall be the reasonable cost of the operation & maintenance. *Rate of depreciation & depreciated amt those arrived at under good accounting practices *Good accounting practices shall NOT include accounting practices w/c have been rejected by the BIR for IT purposes WAGES - Compensation for manual labor, skilled/unskilled, paid at stated times, and measured by the day, week, month, or season - Indicates considerable pay for a lower and less responsible character of ENT - Has a less extensive meaning than salary; being ordinarily restricted to sums paid as hire or reward to domestic or menial servants and to sums paid to artisans, mechanics, laborers, and other EEs of like class SALARY

- Denotes a higher degree of ENT, or a superior grade of services, and implies a position or office - Suggestive of a larger and more permanent or fixed compensation for more important service - Compensation of clerks, officers of pub corps, and pub offices *In many situations, however, and as the SC states, they are in essence synonymous FACILITIES - Include articles or services for the benefit of the EE or his family but shall NOT include tools of the trade or articles or service primarily for the benefit of the ER or necessary to the conduct of the ERs business - Benefit/privilege part of the laborers basic wages, SUPPLEMENTS - Benefit/privilege given to the EE w/c constitutes an extra renumeration above & over his basic or ordinary earning or wage *The distinction bet a facility & a supplement is in the purpose, (not the kind) of the item. te Marine Corp & Royal Line, Inc. v Cebu Seamens Assoc, inc: The vessel crew were provided w/ free meals by the ship owners (petitioner), not part of their wages but as a necessary matter in the maintenance of the health & efficiency of the crew during the voyage. They should not be deducted from their wages. The deductions should be returned to them. -Big Wedge Assoc v Atok-Big Wedge: Supplements constitute extra renumeration or special privileges or wages, while facilities on the other hand, are items of expense necessary for the laborers & his familys existence & substinence, so that by express provision of law, they form part of the wage and when furnished by the ER are deductible therefrom, since if they are not so furnished, the laborer would spend and pay for them just the same. Requirements for Deducting Value of Facilities 1. Proof must be shown that such facilities are customarily furnished by the trade (ex. Company policy or guideline showing that the meal & lodging are part of the salary); 2. The provision of deductible facilities must be voluntarily accepted in writing by the EE;

3. Facilities must be charged at fair & reasonable value. the food & lodging or the electricity & water consumed by the EE were not facilities, but supplements. Hotel workers are required to work different shifts and are expected to be available at various odd hours, their ready availability is a necessary matter in the operations of respondents hotel. Gratuity - Given freely or w/o recompense; a gift; something voluntarily given in return for a favor or services; a bounty; a tip. - gratuity pay is not intended to pay a worker for actual services rendered. It is a money benefit given to the workers whose purpose is to reward EEs who have rendered satisfactory & efficient service to the company. - Not mandatory & not part of labor standard law A fair days wage for fair days labor. if there is no work performed by the EE, th but was prevented by the mgt or was illegally locked out, suspended or dismissed. Equal pay for equal work. EEs working in the PH, if they are performing similar functions & responsibilities under similar working conditions, should be paid under the principle of equal pay for equal work. faculty, 1) foreign-hires and 2) local-hires. The school grants foreign-hires salary of 25% more than that of local-hires due to a) the dislocation factor, and b) limited tenure. SC: If an ER accords EEs the same position & rank, the presumption is that these EEs perform equal work. There is no showing that foreign-hires perform 25% more efficiently or effectively than the local-hires. Both groups have similar functions & responsibilities w/c they perform under similar working conditions. The dislocation factor and limited tenure cannot serve as valid bases for the distinction in salary rates, and are adequately compensated by certain benefits accorded them w/c are not enjoyed by local-hires (housing, transpo, shipping, taxes, home leave allowance). Agricultural Work - work on the soil and its harvests - Lower rate

- Agricultural Activities: 1. Preparation of the soil, planting of ramie stalks and transporting them to the stripping sheds, stripping the fibers w/ the use of decorticating machines run by electricity, drying the wet fibers, passing them through the brusher to cleanse them of impurities and baling the fiers for the market 2. Planting & harvesting sugar cane & other chores incidental to ordinary farming operations 3. Tillage of the soil, raising of crops including discovery of plant pests and their eradication by means of insecticides 4. Fishpond business armhands employed to cultivate the vegetable garden of a non-agricultural corp are not agricultural workers Industrial Work - harvests are processed into finished product or transformed to another product _ Higher rate Art 98. This title shall NOT apply to: 1. Farm tenancy or leasehold; 2. Domestic service 3. Persons working in their respective homes in needle work or 4. In any cottage industry duly registered in accordance w/ law. Ch 2 MINIMUM WAGE RATES Art 99. The minimum wage rates for agricultural and non-agricultural EEs and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards (RTWPB) Statutory Minimum Wage the lowest wage rate fixed by law that an ER can pay his workers. Compensation w/c is less than such minimum rate is considered an underpayment that violates the law. - determined for each region by the regional wage boards - provided w/ margin to take care of contingencies, such as increase of prices of commodities and increase in wants and to provide means for a desirable improvement in EEs mode of living (A persons needs increase as his means increase.)

* Effects: 1. benefits all wage earners by setting a floor below w/c their pay cannot fall 2. raises the standard of competition among ERs, since it would protect the fairminded ER from the competition of the ER who pays his workers a wage below subsistence; 3. is a prereq to the adoption of the SSS, w/c requires contributions from EEs themselves Ability to pay immaterial - ER cannot exempt himself from liability to pay minimum wages because of poor financial condition of the company - Lack of funds is not a valid defense because the payment of minimum wage is a mandatory statutory obligation EEs not estopped to sue for difference in amount of wages - the acceptance by an EE of the wages paid him w/o objection does not give rise to estoppel precluding him from suing for the difference bet the amt received and the amt he should have received pursuant to a valid minimum wage law Exemptions to the coverage of the Rule on minimum wages 1. Household or domestic helpers, including family drivers and persons in the personal service of another; 2. Homeworkers engaged in needle-work; 3. Workers employed in any establishment duly registered w/ the National Cottage Industries and Devt Authority in accordance w/ RA 3470 provided that such workers perform the work in their respective homes; 4. Workers in any duly registered cooperative when so recommended by the Bureau of Cooperative Devt and upon approval by the Sec of DOLE, provided however, that such recommendation shall be given only for the purpose of making the cooperative viable and upon finding and certification of said Bureau supported by adequate proof, that the cooperative cannot resort to other remedial measures w/o serious loss or prejudice to its operation except through its exemption from the requirements of the Rules. The exemption shall be subj to such terms & conditions and for such period of time as the Sec of Labor may prescribe.

5. Barangay Micro Business Enterprises (BMBE) (under RA 9178/BMBE Law), provided that all EEs covered under this Act shall be entitled to the same benefits given to any regular EE such as social security and health care benefits. BMBEs are also exempt from income tax. BMBE any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on w/c the particular business entitys office, plant and equipment are situated, shall not be more than P3M. (comprises no less than 90% of Ph ERs) 6. Retail Service Establishments (by virtue of RA 6727/Wage Rationalization Act) a. regularly employing not more than 10 workers; and b. upon application w/ and as determined by the Regional Board in accordance w/ the RRs of the Commission. If not granted, EEs shall receive the approp compensation due them + 1% interest per month retroactive to the effectivity of the Act. Burden of proving such exemption rests on the ER. 7. Other exemptions by provisions of Wage Orders by the Regional Tripartite Wage & Productivity Board Art 100. PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS So that the rule against diminution of supplements/benefits may apply, it must be shown that: 1. The grant of the benefit is founded on a policy or has ripened into a practice over a long period; 2. The practice is consistent and deliberate; 3. The practice is not due to error in the construction or application of a doubtful or difficult question of law; and 4. The diminution or discontinuance is done unilaterally by the ER. Cebu Autobus Co v United Cebu Autobus EEs Assoc: the company used to pay its drivers and conductors, aside from their regular salary, a certain percentage of their daily wage, as allowance for food. Discontinued by ER upon effectivity of Minimum Wage Law. CIR: -conributory Retirement Plan

Nestle PH Inc. v NLRC: The fact that the retirement plan is noncontributory, does not make it a nonissue in the CBA negotiations. The EEs have a vested right over the existing benefits voluntarily granted to them by their ER. The latter may not unilaterally withdraw, eliminate or diminish such benefits. R. Tiangco & V. Tiangco v Hon. Leogardo: ERs, fishing operator and fishbroker, dependent on arrival of the vessels, hence they work only a few days a month averaging 4 hrs a day) a fixed monthly emergency allowance (which they had been paid as Arco Metal Products v Samahan ng Manggagawa: ER cannot shrink away from its responsibility by merely claiming that its acts of giving full 13th month pay to EEs who have not worked for the full year is a mistake. It has become practice. Exceptions to the Non-Diminution Rule 1. Correction of error; 2. Negotiated benefits; 3. Wage order compliance; 4. Benefits on reimbursement basis; 5. Reclassification of position; 6. Contingent benefits or conditional bonus; and 7. Productivity incentives.

Globe Mackay v NLRC: ER had been computing the COLA by multiplying P3/day by 30 days. Upon effectivity of Wage Order #6, and in virtue thereof, it used 22 days or actual days of work. Union disagreed and claimed 30 days basis as company practice. SC: Not voluntary company practice. To be considered as such, it should have been practiced over a long pd of time, and must be shown to have been consistent & deliberate and not merely an erroneous application of the law. Samahang Manggagawa sa Top Form v NLRC : Granted that the ER had granted an across-the-board wage increase pursuant to RA 6727, that single instance may not be considered an established company practice.

 benefits initiated through negotiation bet ER & EEs, such as CBAs, are not w/in the prohibition of Art 100 because, as products of bilateral contract, they can only be eliminated or diminished bilaterally. What the law forbids is elimination/modification done unilaterally by the ER. the giving of across-the-board salary increases so as to rectify a salary distortion caused by compliance w/ a wage order cannot be said to have ripened into a company practice. Pag-asa Steel Works v CA: To ripen into a company practice that is demandable as a matter of right, the giving of the increase should not only be by reason of a strict legal (as Wage Order) or contractual oblig (CBA), but by reason of an act of liberality on the part of the ER. Benefit on Reimbursement Basis Per diem allowance a daily allowance given for each day when an EE is away from his home base; intended to cover their cost of lodging & subsistence when on duty outside of their permanent station if the EE did not leave his permanent station and spent nothing for meals & lodging outside thereof, then he is not entitled to per diem as there is nothing to be reimbursed *Monthly ration of gas given to certain managerial EEs is not part of their basic benefits. *The elimination of an existing benefit in exchange for an equal or better one does not violate Art 100. *from rank-and-file to supervisory - the position holders lose OT pay and other benefits but Art 100 is not violated. But, promotion & position reclassification must be done in good faith National Sugar Refineries Corp v NLRS & NBSR Union: ER implemented a Job Evaluation program affecting all EEs. Respondents were reclassified from rank-andfile to supervisory/managerial positions. Because of that, they lost their OT, rest day & holiday pay but it was also shown that they received upward adjustments in basic pay & allowances. SC: This reclassification is in essence a promotion w/c is one of the jurisprudentially recognized exclusive prerogatives of mgt, provided in is done in GF. Union failed to prove BF on the part of the ER.

Promotion the advancement from one position to another with an increase in duties & responsibilities as authorized by law and usually accompanied by an increase in salary - Art 100 is n/a to a benefit whose grant depends on the existence of certain conditions, so that the benefit is no demandable if those preconditions are absent. Bonus an amt granted & paid to an EE for his industry & loyalty w/c contributed to the success of the ERs business and made possible the realization of profits. It is an act of generosity. - it is not a demandable and enforceable oblig. BUT! It is so when it is made a part of the wage/salary. In such a case, the latter would be a fixed amt and the former would be a contingent one dependent upon the realization of profit WON bonus forms part of wages: depends on the circs and conditions for its payment. a. If it is an addtl compensation w/c the ER promised and agreed to give w/o any conditions imposed for its payment, such as success of business or greater production or output, then it is part of the wage. b. If it is paid only if profits are realized on a certain amt of productivity achieved, it cannot be considered part of the wages. c. Where it is not payable to all but only to laborers and only when the laborer becomes more efficient or more productive, it is only an inducement for efficiency, a prize therefor, not a part of the wage. Luzon Stevedoring Corp case: An ER cannot be forced to distribute bonuses w/c it can no longer afford to pay. To hold otherwise would be to penalize the ER for his past generosity. American Wire & Cable Daily Rated EEs Union v AWC Co Inc & the CA: For a bonus to be enforceable, it must have been promised by the ER and expressly agreed by the parties, or it must have had a fixed amt and had been a long and regular practice on the part of the ER. Ph Education Co. Inc v CIR: even if a bonus is not demandable for not being part of the salary of the EE, the bonus may nevertheless be granted on equitable consideration.

Marcos v NLRC: if one enters into a contract of ENT under an agreemt that he shall be paid a certain salary by the week or some other stated period and, in addition, a bonus, in case he serves for a specified length of time, there is not reason for refusing to enforce the promise to pay the bonus, if the EE has served during the stipulated time, on the ground that it was a promise of mere gratuity. - EEs whose ENT has been terminated may still demand paymt of service under company policy and of the bonuses. The R is not defeated by a release & quitclaim LG Marcos v NLRC & Insular Life: The fact that an EE has signed a satisfaction receipt for his claims does not necessarily result in the waiver thereof. The law does not consider as valid any agreement whereby a worker agrees to receive less compensation than what he is entitled to recover. A deed of release or quitclaim cannot bar an EE from demanding benefits to w/c he is legally entitled. Traders Royal Bank v NLRC: The matter of giving the EEs bonuses over & above their lawful salaries & allowances is entirely dependent on the profits, if any, realized by the bank from its operations during the past year. Since the fiscal condition having declined, the bank may not be forced to distribute bonuses w/c it can no longer afford to pay and, in effect, be penalized for its past generosity to its EEs. - bonus that comes from productivity gain, or improved output without increasing input - RA 6971: EEs share is in the nature of salary bonus proportionate to increases in current productivity over the average for the preceding 3 consecutive yrs - Not gratuitous; it is a benefit claimable only on the basis of predefined output level - Contingent/conditional; if they are not given because the preconditions are absent, contrary. PD 851: 13TH MONTH PAY - adds 1-month pay to the usual 12-month earnings. BUT, does not change the EEs basic wage. Hence, OT pay, restday pay, SSS contributions & other roll-up or add-on payroll costs do not increase. - Requires at least 1 month service during the calendar yr - SCOPE: all rank-and-file EEs, regardless or salary rate excluding managerial & supervisory EEs

- EXCEPTION: ERs who are already paying their EEs a 13th MP or its equivalent are not covered by the decree. (its Equivalent shall include Xmas bonus, mid-year bonus, profit-sharing payments and other cash bonuses amounting to not less than 1/12 of the basic salary. When an ER pays less than 1/12 of the EEs basic salary, the ER shall pay the difference) - Dole PH Inc v Leogardo - shall not include cash & stock dividends, COLAs, & all other allowances regularly enjoyed by the EEs, as well as nonmonetary benefits (food, free electricity, etc) Framanlis Farms Inc. v Minister of Labor: Such benefits in the form of food or free electricity are not the proper substitute for the 13thMP required by law. Neither may year-end rewards for loyalty & service be considered in lieu of 13thMP would be no need for a specific provision of such bonus in the CBA. But if the CBA did provide for a bonus in graduated amts depending on the length of service, for example, the intention is clear that the bonus provided in the CBA was meant to be in addition to the legal requirement of 13thMP. *13thMP deemed incorporated in the CBA, employment contract. The absence of an express provision obligating the ER to pay 13thMP to the EEs is immaterial *14th MP basically a bonus, and gratuitous; - mgt prerogative & cannot be forced upon the ER; not legally demandable Exclusions in the Computation of 13th MP 13thMP = 1/12 of the basic salary of the EE w/in a calendar year Q: What does basic salary include? A: Basic salary shall include all remunerations or earnings paid by an ER to an EE for services rendered

-sharing payments and all allowances and basic salary of the EE Fringe benefits all allowances & monetary benefits w/c are not considered/integrated as part of the basic salary

agreement binding on the ER Q: Are commissions included in the computation? A: It depends. 1. If the commissions may properly be considered part of the basic salary, they should be included in computing the 13THMP Ph Duplicators Inc v NLRC: the sales commission earned by the sales men constitute part of their compensation, considering that the ER pays them a small fixed/guaranteed wage; the greater part being composed of the sales/incentive commissions earned on actual sales closed by them Sales commissions are intimately related or directly proportional to the extent or energy of an EEs endeavors; paid upon the specific results achieved by a salesman-EE; it is a percentage of the sales closed by a salesman & operates as an integral part of such salesmans basic pay. 2. If they are NOT integral part of the basic salary, then they shld be excluded. Boie-Takeda Case: the commissions paid to medreps were excluded from the term basic salary because these were paid to them as productivity bonuses. They are generally tied to the productivity or capacity for revenue production of a corp; such bonuses closely resemble profit-sharing payments and have no clear direct or necessary relation to the amt of work actually done by each indiv EE. The commissions pd by Boie to its medreps could not have been sales commissions. Medreps are not salesmen; they do not effect any sale of any article at all. They are EEs engaged in the promotion of pharmaceutical products or med devices manufactured by their ER. They promote such products by visiting identified physicians & inform such physicians orally/w/ the aid of brochures, of the existence & chem composition of the pharma product. The addts payments given to them were not in fact commissions but rather in the nature of profit-sharing bonuses. Guaranteed wage/commission EEs whose income is guaranteed by way of wages and/or commissions are entitled to a 13thMP based on their earnings that include commissions. Ph Agricultural Commercial & Industrial Workers Union v NLRC : the bus drivers & conductors of respondent transic co. (allegedly paid on purely commission basis) are entitled to 13thMP on both their fixed & guaranteed wage and commission

a bus conductor paid on commission only as supported by his pay slips w/c indicated the varying amount of commissions he received each trip not included in 13THMP Q: Is Teachers Overload Pay Included? A: Yes. It is considered part of their basic pay for the purposes of computing 13thMP GR: Payments for overload work w/in 8 hrs form part of the basic wage, & therefore are to be included in the computation of 13thMP. Overload the load in excess of the normal load of private school teachers as prescribed by the DECS or the policies, rules & standard of particular private schools. Normal load- 8hrs per working day Overload work Overtime work * Overtime work Work rendered in excess of the normal working hrs of 8 in a day * Overload work May be performed either w/in or outside 8 hrs in a day Proportionate 13thMP - an EE who has resigned or was dismissed at any time before the time for payment of the 13thMP is entitled to this monetary benefit in proportion to the length of time he worked exempted from paying 13thMP upon prior authorization from the Sec of DOLE * Difference of opinion in the computation of 13thMP is a nonstrikeable issue; strike held on this ground is illegal. not covered by 13thMP not covered by 13thMP; because they are contractual, not regular EEs. Their ENT is governed by their Contract of Enlistment w/c was approved by the POEA. It does not provide for 13thMP. Art 101. PAYMENT BY RESULTS (Piecework) The Sec of Labor shall regulate the payment of wages by results, including pakyao, piecework and other noontime work, in order to ensure the payment of fair & reasonable wage rates, preferably through time & motion studies or in consultation w/ reps of workers & ERs orgs.

Workers paid by results workers whose pay is calculated not on the basis of time spent on the job but of the quantity & quality or the kind of work they turn out. (nontime work). - stress is placed on the unit of work produced or the quantity thereof - a uniform amount is paid per unit accomplished Categories of Piece-rate workers A. As to presence of control 1. those whose time & performance is supervised by the ER; -rate workers, esp when they work in company premises (shoes, handicraft, garment) 2. those whose time & performance is unsupervised by the ER. commonly practiced in the agricultural industry (planting, harvesting per hectare of land) * Pakyaw - More aptly used when the job/work to be performed is in bulk/volumes w/c are difficult to quantify * Piece-rate - Common where the output may easily be counted or measured *Payment by result is not determinative of EE-ER Relship. It is merely a method of compensation and does not define the essence of the relation. Basis of Output Rate; Process to set the Standard 1. On petition of any interested party, or upon its initiative, the DOLE shall use all available reps of ERs & workers orgs, to determine whether the EEs in any industry/enterprise are being compensated in accordance w/ the min wage reqmts 2. The basis for the establishment of rates per pc, output or contract work shall be the performance of an ordinary worker of min skill/ability. 3. An ordinary worker of min skill/ability is the average worker of the lowest producing group representing 50% of the total # of EEs engaged in similar ENT in a employed therein. 4. Where the output rates established by the ER do not conform w/ the standards prescribed herein, or w/ the rates prescribed by the DOLE in an approp order, the EEs shall be entitled to the diff bet the amt to w/c they are entitled to receive under such prescribed standards/rates and that actually paid them by the ER. B. As to Rate of Payment

1. Those who are paid piece rates w/c are prescribed in Piece Rate Orders issued by DOLE # of pieces x rate per pc - these workers are not covered by the Rule on Hours of Work (no premium & OT pay) 2. Those who are paid output rates w/c are prescribed by the ER and are not yet approved by the DOLE. # of pcs x rate per pc as determined by the ER. l to the # of hrs worked, the worker will rcv such amt. b.) BUT, if the amt is less than the applicable legal rate, it is possible that the rates per pc are not in accordance w/ the standards. In that case, the ER is required by law to pay the difference. Entitlement of Piece-Rate Workers to NSD and SIL a. Unsupervised no OT/SIL b. Supervised entitled to OT/SIL - The yearly commutation/cash conversion of the SIL should be based on their average daily earnings earned during the yr by the actual number of working days or the statutory min rate, whichever is higher. * GR: the amt earned during the year may exclude COLA, OT pay, and premium contrary Illustration of the computation Total wages earned for 1 yr 12 = ave monthly earning AME 30*** = Daily Earnings DE x 5 = five-day incentive pay *** should be the actual days of work in a month Entitlement to Holiday Pay - shall not be less than his average daily earnings for the last 7 actual working days immediately preceding the regular holiday. Provided however, that in no case shall the holiday pay be less than the applicable statutory min wage rate

Entitlement to 13thMP GR: PD 851 exempts from payment of 13thMP ERs of those who are paid a fixed amt for performing specific work, irrespective of time consumed in the perf thereof, except where the workers are paid on piece-work basis (those who are paid a standard amt for every pc/unit of work produced that is more/less regularly replicated, w/o regard to the time spent in producing the same) in w/c case the ER shall grant the 13thMP to such EEs. -rate worker should have rendered at least 1 month work/service during the calendar yr. Not Entitled to HP, ND, SIL, 13thMP 1. Field personnel 2. Unsupervised employees 3. Engaged on task/contract basis 4. Purely commission basis 5. Paid a fixed amt for performing work irrespective of the time consumed Not Entitled to OT Pay 1. Paid on piece-work 2. Paid on takay 3. Paid on pakyaw 4. Paid on task basis if their output rates are in accordance w/ the standards under Sec 8 Rule 7 Book 3, or where such rates have been fixed by the Sec of Labor Benefits Payable to Piece-Rate Workers 1. Statutory minimum wage (MW) 2. Yearly service incentive leave of 5 days w/ pay (SIL) 3. Night shift differential (ND) 4. Holiday pay (HP) 5. Meal & rest periods (Meal/rest) 6. Overtime pay (conditional) (OT) 7. Premium pay (conditional) (PP) 8. 13thMonth pay (13th) 9. other benefits granted by law, by indiv/CBA or company policy/practice (CBA)

BWC Guidelines Summary -per-pc to be paid to a worker should be submitted to DOLE for approval. -and-pay proposal of the ER fairly & reasonably meets the legal MW, based on the output of ave. workers doing same products under comparable conditions. approved standard is presumed fair & reasonable, a piece-rater who does not reach the quota will earn less than the legal MW and not w/ the pay formula. In such case the ER need not make up the diff bet the legal MW and the wage actually earned. put-and-pay scheme has not been approved by DOLE, or does not conform w/ DOLE-issued orders, then the ER may be required to pay the shortfall bet the actual earning and the prescribed MW. -rate pay formula needs DOLEs approval so ast to protect the workers right to be paid or to earn at least the MW, and at the same time, to help the ER obtain the corresponding work output. Ch 3 PAYMENT OF WAGES Art 102. FORMS OF PAYMENT Proof of Wage payment ER has burden of proof * The IRR requires every ER to keep a payroll. Among other things, it must show the length of time to be paid, the pay rate, the amt actually paid, and so on. AND the EE should sign the payroll. ER cannot pay his workers by means of: 1. Promissory notes 2. Vouchers 3. Coupons 4. Tokens 5. Tickets 6. Chits 7. Any obj other than legal tender Even when expressly requested by the EE. GR: Payment by legal tender

1. Customary on the date of effectivity of the LC; 2. Necessary because of special circs as determined by the Sec of Labor; 3. Stipulated in the CB; or 4. Where the ff conditions are met a. There is a bank or other facility for encashment w/in 1km radius; b. The ER, or any of his agents or reps, does not rcv any pecuniary benefit directly/indirectly from the arrangement; c. The EEs are given reasonable time during banking hrs to withdraw their wages from the bank w/c time shall be considered as compensable hours worked if done during working hrs; and d. The payment by check is w/ the written consent of the EEs concerned if there is no CBA authorizing the payment of wages by bank checks. Art 103. TIME OF PAYMENT GR: Wages shall be paid: 1. At least once every 2 weeks; or 2. Twice a month at intervals not exceeding 16 days. EXCEPT: 1. In case of force majeure or other circs beyond the ERs control, payment must be made immediately after such occurrence has ceased. 2. If engaged to perform a task w/c cannot be completed in 2 weeks and in the absence of CBA or arbitration award: a. Payment shall be made at intervals not exceeding 16 days, in proportion to the amt of work completed; b. That final settlement is made upon completion of work. Art 104. PLACE OF PAYMENT GR: At or near the place of undertaking EXCEPT: 1. When payment cannot be effected at or near the place of work by reason of deterioration of peace & order conditions, or by reason of actual or impending emergencies caused by fire, flood or other calamity rendering paymt thereat impossible; 2. When the ER provides for free transpo to the EEs back and forth; and 3. Under any other analogous circs.

Prohibition: No ER shall pay his EEs in a bar, night or day club, drinking establishment, massage clinic, dance hall or other similar places or in places where ga of persons employed in such places. Requisites for Payment thru Banks (Wage Rationalization Act) 1. There must be written permission of the majority of the EEs concerned in an establishment; 2. The establishment must have 25/more EEs; and 3. The establishment must be located w/in 1 km radius to the bank Requisites of Payment thru ATM 1. The ATM sys of paymt is w/ the written consent of the EE concerned; 2. The EEs are given reasonable time to withdraw their wages from the bank facility w/c, if done during working hrs, shall be considered as compensable hrs worked; 3. The sys shall allow the EE to rcv their wage w/in the period & the amt prescribed under the LC; 4. There is a bank/ATM facility w/in 1km radius from the workplace; 5. Upon the request of the concerned EE, the ER shall issue a record evidencing paymt of wages, benefits & deductions for a particular pd; 6. The ATM sys of paymt shall neither result in diminution of benefits & privileges of the EE nor shall the latter incur addtl expenses in the process; and 7. The ER shall assume full responsibility in case the wage protection provisions of law & regulations are not complied w/ under the arrangemt Art 105. DIRECT PAYMENT OF WAGES GR: Wages shall be paid directly to the workers to whom they are due. EXCEPT: 1. Payment through another person a. In case of force majeure rendering such payment impossible provided said person is under written authority given by the worker for the purpose; b. When authorized under existing law, including payments for insurance premiums of the EE and union dues where the R to check-off has been recognized by the ER in accordance w/ a CBA or authorized in writing by the indiv EEs concerned. 2. Payment through the heirs of the worker

- in case the worker has died, ER may pay wages of the deceased worker to the heirs of the latter w/o the necessity of intestate proceedings. Procedure 1) Claimants shall execute an affidavit attesting their relshp to the deceased and the fact that they are his heirs, to the exclusion of all others (Affidavit of Next of Kin); 2) In case of a minor heir, affidavit shall be executed on his behalf by his natural guardian or next of kin; 3) Affidavit shall be presented to the ER who shall make paymt through the Sec of Labor or his rep; 4) The rep shall act as referee in dividing the amt paid among the heirs; and 5) Payment of wages under this Art shall absolve the ER of any further liability w/ respect to the amt paid. 3. Payment through a family member of the workers family - where the ER is authorized in writing by the EE to pay his wages to a member of his family Summary of Legal Prohibitions on Wages 1) Payment of wages in non-cash form; 2) Payment of wages in night and day clubs, bars & other similar places; 3) Non-diminution of wages; and 4) Non-interference by the ERs in the EEs disposition of their wages. Summary of Rules on Payment of Wages What must be paid: Legal Tender. promissory notes, vouchers, coupons, tokens, tickets, chits, or any other obj other than legal tender When: Once every 2 weeks, or Twice a month at intervals of at least 16 days Where: At or near the place of undertaking How: Directly to the EE Art 106. CONTRACTOR OR SUBCONTRACTOR Types of Contractors under the Law 1. Job Contracting or Subcontracting an arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the performance or completion of a specific job, work or service w/in a definite or predetermined period,

regardless or whether such job, work, or service is t be performed or completed w/in or outside the premises of the principal Existence of Trilateral Relationship -under this legitimate contracting the ff CONTRACTS exist: a. Contract for specific job, work or service bet the principal & the contractor/subcontractor; and b. Contract of ENT bet the contractor/subcontractor and its workers. Hence, the PARTIES involved are: 1. Principal; 2. Contractor/subcontractor; and 3. Contractual workers Laws applicable between:

-ER Relationship -EE Relship will exist bet the Principal & the Workers where the contracting arrangement is not legitimate, as in labor-only contracting Elements of Independent Contractor Job Contracting 1. The sub/contractor carries on a distinct and independent business and undertakes to perform the job on his own account and under his own responsibility, according to its own manner and method and free from the control & direction of the principal in all matters connected w/ the performance of the work except to the results thereof; 2. The sub/contractor has substantial capital or investment in tool, equipment and machineries, work premises and other materials necessary in the conduct of his business; 3. The agreement bet the principal and sub/contractor assures the contractual EEs entitlement to all labor & health standards, free exercise of the R to self-org, security of tenure and social & welfare benefits; 4. Must be properly registered as such in accordance w/ DO #18-02. (The absence of registration only gives rise to the presumption that the contractor is engaged in labor-only contracting a presumption that can be refuted.)

2. Labor-only Contracting an arrangement where the sub/contractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and ANY of the ff ELEMENTS is present: a. Lack of substantial capital/investment AND performance of activities directly related to the principals business (confirming element); or b. The contractor does not exercise the right of control over the performance of the contractual EE (confirming element); c. The arrangement is merely to recruit, supply or place workers to perform a job, work, or service for a principal (Essential Element) ent/s Labor-only contracting is wrong & prohibited bcoz it is an attempt to evade the obligs of an EEr: a) To respect EEs R to unionize; b) R to ENT standards; c) R to security of tenure Substantial capital capital stocks and subscribed capitalization in the case of corps, tools, equipment, implements, machineries and work premises, actually & directly used by the sub/contractor in the performance or completion of the job, work or service contracted out. - the law does not require both substantial capital and investment in the form of tools, equipment, machineries, etc. Right to control refers to the right reserved to the person for whom the service of the contractual workers are performed, to determine not only the end to be achieved, but also the manner & means to be used in reaching that end Insular life v NLRC: exclusive servicing esp springing from a regulation issued by the Insurance Commission, and not from an intention by the alleged ER, does not necessarily mean being under the control or ENT of the entity being served. The relship may still be classified as independent contractorship because the element of control is absent. - EEs may resign from their jobs to become contractors to their former ER, but the latter should cease controlling the means & method of doing the work allegedly contracted, otherwise, the result is LOC.

Summary of Prohibited Labor Contracting 1. Labor-only contracting; 2. Contracting that terminates the ENT of regular EEs, or reduces their work hrs, or reduces/splits a bargaining unit, if such contracting out is not done in GF & not justified by business exigencies; 3. Contracting w/ a Cabo person/s or labor group w/c, in the guise of a labor org, supplies workers to an ER w/ or w/o any monetary or other consideration whether in the capacity of an agent of the ER or as an ostensible independent contractor; 4. Contracting w/ in-house agency; 5. Contracting because of a strike/lockout; 6. Contracting that constitutes ULP under Art 248. JOB CONTRACTING The ER/principal is merely an indirect ER, by operation of law, of his contractors EEs - The law creates an ER-EE relshp for a limited purpose, i.e. to ensure that the EEs are paid their wages - The principal becomes solidarily liable w/ the contractor in the even the latter fails to pay the EEs wages and for violation of labor standard laws. The liability, however does not extend to the paymt of backwages or separation pay of EEs who are illegally dismissed - Allowed by law - Presence of substantial capital or investment Note: The principal shall be SOLIDARILY liable w/ the contractor in the event of any violation of any provision of the LC, including failure to pay wages. This will not prevent the principal from claiming reimbursement from the contractor. LABOR-ONLY CONTRACTING - The ER/principal is treated as direct ER of the contractors EEs in all instances (contractor is deemed agent of the ER) - The statute creates an ER-EE relshp for a comprehensive purpose, i.e. to prevent a circumvention of labor laws - The principal becomes solidarily liable w/ the contractor not only for unpaid wages but also for all the rightful claims of the EEs under the LC AND ANCILLARY LAWS - Prohibited by law

- No substantial capital Note: The principal shall be deemed the ER of the contractual EE in any of the ff cases as declared by competent authority: 1. Labor-only contracting; and 2. Contracting arrangement falling w/in the prohibitions Art 107. INDIRECT ER any person, partnership, assoc or corp w/c not being n ER, contracts w/ an independent contractor for the perf of any work, task, job or proj. 4 Features of Legitimate Contracting 1. Parties a principal (contractee) enters into a contract w/ a contractor, or if the principal is himself a contractor, he enters into contact w/ a sub-contractor. A prohibited in the contract. 2. Specific job the contract calls for the performance or completion of a specific job, work or service; 3. Period such job, work or service is to be performed or completed w/in a definite or predetermined period; and 4. Location the contracted job, work or service may be performed or completed inside or outside the premises of the principal An independent contractor is one who exercises: 1. Independent ENT; 2. Contracts to do a pc of work accdg to his own methods; and 3. The labor contractor is legit if: 1. He is a job contractor; and 2. Is properly registered w/ DOLE as the same Judicial Notice of Job Contracting - The Court has already taken judicial notice of the general practice adopted in several gort & private institutions and industries of hiring independent contractors to perform special services. These services range from janitorial, security and even technical or other specific services. While these services may be considered directly

related to the principal business of the ER, nevertheless, they are not necessary in the conduct of the principal business of the ER. another. Coca-cola Bottlers Ph v Hingpit: Lipercon was adjudged to be a LOC in a previous case (Guarin v Lipercon), for lacking the substantial capital. But not so in the present case, where it has been able to establish its characted as an independent contractor. Aside form hiring its own EEs and paying the workers their salaries, it also exercised supervision & control over them, w/c is the most important aspect in determining ER-EE Relshp. Art 108. POSTING OF BOND - An ER or indirect ER may require the sub/contractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will answer for the wages due the EEs should the sub/contractor, as the case may be fail to pay the same. - Where the ER fails to require the contractor to post a bond, the ER must answer for whatever liabilities the contractor may have incurred to his EEs. This is w/o prejudice to its seeking reimbursement from the contractor for whatever amt it will have to pay the EEs. Art 109. SOLIDARY LIABILITY - The provision of existing laws to the contrary notwithstanding, every ER or indirect ER shall be held responsible w/ his sub/contractor for any violation of any provision of the LC. For purposes of determining the extent of their civil liability under this Ch, they shall be considered as direct ERs. - The existence of ER-EE Relshp is a precondition to entitlement to labor standards & labor relatios Rs. Extent of Principals Liability in Legitimate Contracting - solidarily liable in the event of any violation of any provisions of the LC 1. For wages and money claims if the sub/contractor fails to pay the wages of his EEs in accdance w/ the LC, the ER shall be jointly & severally (solidarily) liable w/ his contractor to such EEs to the extent of work performed under the contract, in the same manner & extent that he is liable to EEs directly employed by him.

He cannot escape this liability even if he has paid the workers wage rate in accordance w/ the contract w/ the contractor. The EEs are not privy to the contract. Also, the labor standard legislations are considered written in every contract. Similarly, legislated wage increases are deemed amendments to the contract. Thus, ERs cannot hide behind their contracts in order to evade their or their contractors liability for noncompliance w/ the statutory min wage, w/o prejudice to his R to recover whatever amount he paid from the contractor. 2. a) Reimbursement the joint & several liability of the contractor & the principal under Arts 106, 107 & 109 of the LC is mandated to assure compliance of the provisions including the statutory min wage. The contractor is made liable by virtue of his status as the direct ER; and the principal is made the indirect ER of the contractors EEs for purposes of paying the EEs their wages should the contractor fail to do so. - where no ER-EE Relshp exists bet the parties, as to reimbursement bet the principal & the contractor, the RTC has jurisdiction b) Payment before Reimbursement but one may seek reimbursement only AFTER it has paid the EEs. c) For Other Violations qualified or limited liability; if the liability is for failure to pay the min wage, or the SIL, or other benefits derived from or provided for by law, the principal is equally liable w/ the contractor as if the principal were the direct ER. BUT, if the liability is invested w/ punitive character, such as an award for backwages & separation pay because of an illegal dismissal of the contractors EE, the liability should be solely that of the contractor in absence of proof that the principal conspired w/ the contractor in the commission of the illegal dismissal. Rights of Contractual EEs (EEs of a legitimate contractor) 1. Safe & healthful working conditions; 2. Labor standards such as SIL, rest days, OT Pay, holiday pay, 13thMP, & separation pay; 3. SS & welfare benefits; 4. Self-orgs, CB and peaceful concerted action; and 5. Security of tenure. Certain conditions required expressly stipulated in the ENT Contract

1. Specific description of the job, work or service to be performed by the contractual EE; 2. The place of work and terms & conditions of ENT, uncluding a statement of the wage rate applicable to the indiv contractual EE; and 3. The term/duration of ENT, w/c shall be coextensive w/ the contract of the principal & contractor or w/ the specific phase for w/c the contractual EE is engaged, as the case may be. The sub/contractor shall inform the contractual EE of the foregoing terms & conditions on or before the 1st day of his ENT. Security of Tenure: a. in cases of termination of ENT prior to the expiration of the contract bet the principal & the sub/contractor, the R of the contractual EE to separation pay or other related benefits shall be governed by applicable laws & jurisprudence on termination of ENT. b. Where the termination results from expiration of contract b/w the principal & the contractor, or from completion of the phase of the job for w/c the EE is engaged, not entitled to separation pay, however, this shall be w/o prejudice to completion bonuses or other emoluments, incl retirement pay as may be provided by law/contract bet the principal & the contractor. * Security of tenure requires procedural due process for termination of ENT. * No security of tenure for casual EEs. Registration of Contractors Requirements: 1. Submission of annual reports a. Sworn undertaiking that the sss, Home Devt Mutual Fund, PhilHealth, EEs Compensation Commission (ECC), and BIR remittances 2. They are subj to routine inspection by the DOLE Effect of Non-registration: GR: The absence of registration gives rise to the presumption that the contractor is engaged in LOC, he qualifies as a legit contractor despite nonregistration w/ DOLE.

Art. 110. WORKER PREFERENCE IN CASE OF BANKRUPTCY - Workers shall enjoy first preference as regards their unpaid wages & other monetary claims, any provision of law to the contrary notwithstanding. - Unpaid wages earned by EEs before the declaration of bankruptcy or judicial liquidation of the ERs business shall be given first preference & shall be paid in full before other creditors may establish any claim to share in the assets of the employer. - Not only unpaid wages, but also other monetary claims to w/c even claims of the govt must be deemed subordinate. -corp is under rehabilitation. Conditions: 1. Formal declaration of insolvency or bankruptcy; 2. General judicial liquidation proceedings of the ERs business; and 3. Filing of claims by workers. Art 111. ATTORNEYS FEES Rules: 1. In cases of unlawful withholding of wages, the culpable party may be assessed attys fees equivalent to 10% of the amt of wages recovered. 2. It shall be unlawful for any person to demand or accept, in any judicial or admin proceedings for the recovery of the wages, attys fees w/c exceed 10% of the amt of wages recovered. Concepts of Attys Fees a. Ordinary reasonable compensation paid to a lawyer by his client for the legal services he has rendered. b. Extraordinary indemnity for damages ordered by the court to be paid by the losing party in a litigation, and is not to be paid to the lawyer but to the client, unless they have agreed that the award shall pertain to the lawyer as an addtl compensation or as a part there of. GR: Awarded attys fee may not exceed 10%, b/w lawyer & client quantum meruit may apply. Basis of Quantum meruit (as much as he deserves)

1. The time spent & the extent of services rendered or required; 2. The novelty & difficulty of the questions involved; 3. The importance of the subject matter; 4. The skill demanded; 5. The probability of losing other ENT as a result of acceptance of the proferred IBP chapter to w/c the lawyer belongs; 6. The amt involved in the controversy and the benefits resulting to the client from the services; 7. The contingency of certainty of compensation; 8. The character of ENT, whether occasional or established; and 9. The professional standing of the lawyer. Kinds of Cases where Attys Fees may be Assessed: 1. Cases arising from unlawful withholding of wages; and 2. Cases arising from CBAs. 3. Claims for death benefits (Heirs of Aniban) : Art 111 does not limit the award of attys fees to cases of unlawful withholding of wages only. What it explicitly prohibits is the award of attys fees w/c exceed 10% of the amt of wages recovered. *Non-lawyers not entitled to Attys Fees GR: Although the law allows non-lawyers to appear before the NLRC or any Labor Arbiter, this does not mean that they are entitled to attys fees. Entitlement to attys fees presupposes the existence of ER-EE Relshp, and this cannot exist unless the clients rep is a lawyer. non-lawyers may represent their org or members. The said labor federations & local unions have a valid claim to attys fees. *PAO lawyers are disqualified from being awarded attys fees. CH4 Prohibition Regarding Wages Art. 112. Non-interference in disposal of wages 1. Civil Code Provisions a. Art 1705 CC: paid in legal currency b. Art 1706 CC: withholding of wages, except for a debt due, shall not be made by the employer

c. Art 1707 CC: Labors wages shall be a lien on goods manufactured or work done. d. Art 1708 CC: wages not subject to execution or attachment, except for debts incurred for food, shelter, clothing and medical attendance e. Art 1709 CC: Employer shall neither seize nor retain any tool or other articles belonging to the laborer. Art. 113. Wage Deduction Authorized deductions by law: a. Value of means and other facilities b. Premium paid by employer where insured with employees consent c. Union to check off recognized by employer/authorized in writing by indiv employee d. Employee is indebted to employer, due & demandable e. Subject to exection for debts incurred for food, shelter clothing and medical attendance f. Withholding tax h. SSS, Medicare, Pag-ibig Payment to 3rd person Authorized in writing by employee Employer agrees to make deduction Employer must not receive any pecuniary benefit, directly or indirectly from transaction. Art. 114. Deposits for Loss or Damage Art. 115. Limitations Deductions for Loss or Damage (1) employee clearly shown to be responsible for loss or damage (2) employee given ample opprotunity to show cause why deduction should not be made (3) deduction fair and reasonable and shall not exceed actual loss or damage (4) deduction not exceed 20% of employees wages in a week Deductions for absences

Deductions for unpaid absences are allowed. Illegal Deposit Art. 114 provides the rule on deposits for loss or damage to tools, materials or eqpt supplied by employer. It does not permit daily deposits which taxi drivers are required to make to defray any shortage in their boundary. No Showing that the DOLE Sec recognized such deposit as a practice in taxi industry. Hence illegal. (5-J Taxi v. NLRC) Art. 116 Withholding of wages and kickbacks prohibited Art. 117. Deduction to Ensure employment Art. 118 Retaliatory Measures Are retaliatory measures (Art 118) striakeable? Acts under Art 118 are broad, and can lead to a ULP case if employer retaliated against testifying employee. If ULP, striekable. Reprisal for Silent Testimony Art 118 equally applies to implicit or unspoken testimony by an employee. Art. 119. False Reporting CH5. Wage studies, wage agreements and wage determination Art. 120 Creation of National Wages and Productivity Commission RA 6727 Art. 121. Powers and Functions of the Commission Art. 122. Creation of the RTWPB Regional Tripartite Wages and Productivity Boards Composed of: DOLE Regional Director NEDA Regional Director DTI Regional Director 2 workers 2 employers

While the RTWPB has the power to issue wage orders under Art 122 (b) of the Labor Code, such orders are subject to the guidelines prescribed by the National Wages and Productivity Commission (NWPC), who has the power to prescribe the rules and guidelines for the determination of appropriate wages in the country. Art. 123 Wage Order Wage Order Takes effect after complete publication in at least 1 newspaper of gen circulation in region. Not be disturbed for a period of 12 months from effectivity. Public Hearing reqd Wage increase cannot be retroactive to effectivity of wage order (Cagayan Sugar Milling v. Secretrary of Labor) Art. 124. Standards/Criteria for Min Wage Fixing a. Living Wage b. Consumer price index c. Cost of living d. Needs of workers and their families e. Induce industries to invest in countryside f. Improvements in standards of living g. Prevailing wage levels h. Fair return of capital i. Effects on employment generation and family income j. Equitable distribution of income and wealth Wage distortion situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage of salary rates among employee groups, obliterating the distinctions as to skills, length of service or other logical bases of differentiation. Distortion adjustment formula (Metro Bank v. NLRC): Minimum wage / actual salary = % x prescribed increase = distortion adjustment See also equitable bank case

Art. 125 Freedom to Bargain Art. 126 Prohibition against Injunction Art. 127. Non-Dimunition of Benefits Chapter VI Administration and Enforcement Art. 128. Visitorial and Enforcement Power If employer-employee relationship still exists regional director has power to order and administer, after due notice and hearing, compliance with labor standards provision of Labor Code/other laws *DOLE regional director must endorse case to Labor arbiter *Where employer contests finding of labor standards and welfare officers and Raises issues which cannot be resolved without considering evidentiary matters That are not verifiable in the normal course of inspection. *Regional director can enforce a labor standards law even if the compliance issue is not raised in the complaint. (Aboitiz Shipping v. dela Serna) See also Univ of Immaculate Conception case *But Regional director without authority to declare an order or law unconstitutional; only duty to enforce the laws, which stands valid. Double Indemnity -Fine of double prescribed wage increase when employer refuses or fails to pay prescribed adjustment in wage rates. (RA 6727). *Based on unpaid benefits, where benefits defined to be prescribed wage rates which employer failed to pay upon effectivity of wage order, exclusive of other wafe related benefits. Labor Standards Cases DOLE Regional Director exercises both visitorial and enforcement power over labor standard cases emplowered to adjudicate money claims, provided employeremployee relationship exists and finding are not contested by employer (Maternity Childrens Hospital v. sec of labor) Art. 129. Recovery of wages, simple money claims and other benefits

*Money claims arising from complaint/routine inspection - Regional director refers case to Labor Standards and Welfare Officer for field inspection. LSWO to submit report to Regional Director through the Chief of the Labor Standards Enforcement Division (LSED) with 24 hrs after investigation or within a reasonable period as determined by Regional Director. *Restitution *Plant Level restitution may be effected for money claims not exceeding P50T. Report submitted to Regional Director for verification and confirmation. *Compromise agreement In writing, signed by parties in the presence of Regional Director or his duly authorized rep. *Hearing Where no proof of compliance submitted by employer after 7 days from receipt of inspection, Regional director to summon employer & complainants to a summary investigation. Enforcement under Art 128 are beyond injunctive power of an inferior court. *Appeal Appealable to DOLE sec. Then to CA through certiorari. DO 57-04 New system for enforcement of labor laws 3 approaches (1) self-assessment voluntary compliance applicable for shops >= 200 workers or those with CBA (2) Inspection 10 to 199 workers; hazardous, construction projects; labor standards complaints (3) advisory - < 10 workers; micro business enterprises; not punitive; assistance to increase productivity; relaxed *DOLE may delegate to LGU the inspection of safety (ex boiler). Title III Working Conditions for Special Groups of employees Chapter I Employment of Women Art 130 Nightwork prohibition Art 131 Exceptions

Art. 132 Facilities for Women Art. 133. Maternity Leave (obsolete) Maternity leave benefits (now under SSS law) *Pre-req: at least 3 monthly contributions in 12 month period immediately preceding semester of childbirth or miscarriage: *60 days salary credit *78 days in case of caesarian delivery *Paternity Leave (RA 8187) legit married, living with spouse *Maternity leave benefits apply to married or unmarried women. Art. 134. Family Planning Services; Incentives for Family Planning Art. 135. Discrimination Prohibited Discrimination prohibited *RA 7192 provides that the state recognizes the role of women in nation-bldg and shall ensure the fundamental equality before the law of women and men. The State shall provide women rights and opportunities equal to that of men. To attain this policy: (1) substantial portion of Official Devt Funds set aside & utilized by agencies to support programs & activities for women; (2) All govt depts. Ensure that women benefit equally & participate directly in devt programs & projects of said depts.; and (3) All depts. And agencies shall review & revise regulations, circulars, issuances and procedures to remove gender bias therein. Art. 136. Stipulation against marriage Stipulation against marriage Nondiscrimination policy against women for T&C of employment. See star paper case Art 137. Prohibited acts: It shall be unlawful for any employer to:

1) Deny any woman employee benefits or discharge woman for purpose of preventing her from enjoying benefits under this code 2) Discharge woman on acct of her pregnancy 3) Refuse admission of such woman upon returning to work for fear that she may again be pregnant Art 138 Classification of certain women workers Any woman working in any night club, cocktail lounce, massage clinic, bar or similar establishment, under the effective control of the employer for a substantial period of Zialcita v. PAL (1977) OP decision We cannot agree to the respondent PALs proposition that termination from employment of flight attendants on account of marriage is a fair and reasonable standard designed for their own health, safety, protection and welfare, as no basis has been laid therefore. Actually, respondent claims that its concern is not so much against the continued employment of the flight attendant merely by reason of marriage but rather on the consequence of marriage pregnancy. Xxx The sweeping intendment of the law, be it on special or ordinary occupations is reflected in the whole text and supported by Art 135 that speaks of nondiscrimination on the employment of women. PT&T v. NLRC Similar to the Zialcita case except that the employer did not admit that the employee was dismissed because she was married. The cause of the dismissal, the employer insisted, was her dishonesty in stating in the job application that she was single though in fact she was not. PT&Ts policy that married women are not qualified for employment in PT&T is not only in derogation of the provisions of Art 136 on the right of women to be free from any kind of stipulation against marriage in connection with her employment, but it likewise assaults good morals and public policy tending as it does to deprive a woman of the freedom to choose her statusl, a privilege that by all accounts inheres in the individual as an intangible and inalienable right. Gualberto v. Marinduque Mining (1978) CA Case Whether pre-employment agreement or company policy, the policy of the firm to consider, due to lack of facilities for married women, female employees as separated the moment they get married, is void. No employer may require female applicants for

jobs to enter into preemployment agreements that they would be dismissed once they get married. Sexual Harassment RA 7877 - Victim may be male or female. Elements: DRR AIMA a. Demand/Request/Require sexual favor b. Authority, influence or moral ascendancy over victim Punishes sexual harassment if same is: (1) work related (2) education related (3) training related Excluded: Saleswoman-Client relations but RPC, Independent Civil Actions Employee-employee but file case with company based on company rules Duties of employer or head of office a. To prevent or deter the commission of acts of sexual harassment and provide procedures for resolution or prosecution of acts of sexual harassment b. To promulgate rules and regulations prescribing procedure for investigation of secual harassment cases and admin sanctions therefor c. To create committee on decorum and investigation of cases on sexual harassment

BOOK FOUR: HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS Title I: MEDICAL, DENTAL AND OCCUPATIONAL SAFETY Chapter I: MEDICAL AND DENTAL SERVICES Article 156: FIRST-AID TREATMENT Article 157: EMERGENCY MEDICAL AND DENTAL SERVICES Article 158: WHEN EMERGENCY HOSPITAL NOT REQUIRED Article 159: HEALTH PROGRAM Article 160: QUALIFICATIONS OF HEALTH PERSONNEL Article 161: ASSISTANCE OF EMPLOYER COMMENTS The Implementing Rules in Book IV, Rule I, provide details additional to those in the above codal provisions: not, including the Government and any of its political subdivisions and governmentowned or controlled corporations, which employ one or more workers standards o First Aid Treatment ADEQUATE, IMMEDIATE, and NECESSARY, medical and dental attention or remedy given in case of injury o sudden illness suffered by a worker during employment, irrespective of whether or not such injury or illness is work-connected, BEFORE more extensive medical and/or dental treatment can be secured. It does not include continued treatment or follow-up treatment for any injury or illness. o Workplace OFFICE, PREMISES or WORKSITE where the workers are HABITUALLY employed and shall include the office or place where the workers who have no fixed or definite worksite REGULARLY REPORT for assignment in the course of their employment. o First Aider any person trained and duly certified as qualified to administer first aid by PHILIPPINE NATIONAL RED CROSS or any other organization accredited with the former. o An employer shall keep in or about his workplace firs-aid medicines, equipment and facilities prescribed by the Department of Labor 5 days from issuance of regulation

o The list may be revised anytime by the Bureau of Labor Standards, subject to approval of the Secretary of Labor.

Number of Employees

Medical and Dental Services Hazardous Non Hazardous Graduate First-aider, and may be one of the workers in the workplace AND who has immediate access to the first-aid medicine prescribed in Section 3 Full-time Registered Full-time First-aider IF Nurse a Nurse is not available Full-time Registered Nurse -time Physician -time Dentist The Physician and the dentist shall stay in the premises for at least 2 hours a day.*

10 to 50 in a workplace

Exceeds 50 but not more than 200 Exceeds 200 but not more than 300

Exceeds 300 Full-time Nurse -time Physician -time Dentist Infirmary OR Emergency Hospital with One bed capacity for every 100 workers The Physician and the Dentist shall stay in the premises of the workplace for at least 8 hours a day* *Where the establishment has more than one workshift a day, the required two-hour stay shall be devoted to the workshift which has he biggest number of workers and they shall, in addition to the requirements of this Rule, be subject to call at anytime during the other workshifts to attend to emergency cases. ** In all workplaces where there are more than one workshift in a day, the employer shall, in addition to the requirements of this rule, provide for the services of a full-time first-aider for each workshift. Full-time Registered Nurse -time Physician -time Dentist Shall have same responsibilities as those provided in previous box

Emergency Hospital: An employer need not put up and emergency hospital or dental clinic in the following situations: o Urban Area where there is a hospital or dental clinic not more than 5 kilometers away from the workplace OR which can be reached by motor vehicle in 25 minutes of travel o Rural Area - the employer has facilities readily for transporting a worker to the hospital or clinic in case of emergency o The employer must enter into a written contract with the hospital or dental clinic for the use thereof in the treatment of workers in case of emergency.

Chapter II: OCCUPATIONAL HEALTH AND SAFETY Article 162: SAFETY AND HEALTH STANDARDS Article 163: RESEARCH Article 164: TRAINING PROGRAMS Article 165: ADMINISTRATION OF SAFETY AND HEALTH LAW COMMENTS The Implementing Rules in Book IV, Rule II, provide details additional to those in the above codal provisions: undertakings except: o Those engaged in land, sea and air transportation tenance and repair shops and offices, shall be covered by this Rule o Residential places exclusively devoted to dwelling purposes *GR: Department of Labor has jurisdiction to inspect all establishments, workplaces and undertakings. Exception: Chartered cities may be allowed to assume responsibility for technical safety inspection upon compliance with such standards and guidelines as the Secretary of Labor may promulgate

*Technical Safety Inspection includes inspection for purposes of safety determination of boilers, pressure, wheels, internal combustion engines, elevators (passenger and freight), dumbwaiters, escalators, and electrical installations in all workplaces. condition, practice, means, method, operation, or process shall also apply to other similar work situations for which NO specific standards have been established. a sufficient number of his supervisors or technical personnel in occupational safety and health. General duties of workers: o Every worker shall cooperate with the employer in carrying out the provisions of this Rule o Every worker shall make us of ALL safeguards and safety devices furnished in accordance with the provisions of this Rule for his protection and the protection of others and shall follow ALL instructions made by the employer in compliance with the provisions of this Rule. n, including builders or contractors, who visits, builds, innovates or installs devices in establishments or workplaces shall comply with the provisions of this Rule and all regulations issued by the employer in compliance with the provisions of this Rule and other subsequent issuances, of the Secretary of Labor.

TITLE II: EMPLOYEES COMENSATION AND STATE INSURANCE FUND Chapter I: POLICY AND DEFINITIONS Article 166: POLICY COMMENTS AND CASES 1. OVERVIEW: WORKMENS COMPENSATIONS PROGRAM AND SIF Workmens Compensation is a general and comprehensive term applied to those laws providing for compensation for loss resulting from the INJURY, DISABLEMENT, or DEATH of workmen through INDUSTRIAL ACCIDENT, CASUALTY or, DISEASE. Compensation means the money relief afforded according to the scale established under the statute, as differentiated from compensatory damages recoverable in an action at law for breach of contract or for tort

* Primary Purpose is to provide compensation for disability or death resulting from occupational injuries or diseases, or accidental injury to, or death of, employees. It is for the benefit of the EMPLOYEES and not the employer * Purpose ardship attendant upon the enforcement of court remedies to the consuming public, a greater proportion of the economic loss due to industrial accidents and injuries. ve the relations between employers and employees by avoiding or reducing the friction incident to litigation. independent of proof of fault, but also for employers a liability which is limited and determinate. Source of Compensation: 1. Direct Payment Statutes payment by the employer 2. Insurance Statutes a. require the employer to take out insurance either with i. an insurance bureau operated by the state ii. private company b. require and employer to contribute to a compensation fund State Insurance Fund the Labor Code adopts the compensation fund type. All covered employers are required to remit to a common fund a monthly contribution equivalent to one percent of the monthly salary credit of every covered employee. The employee pays NO contribution into the fund; agreement to the contrary is VOID and PROHIBITED. * Compensation is in the form of medical supplies and services and/or cash income if employee is unable to earn because of injury of disease. Death benefits and funeral benefits are also given. Process: 1. Injury befalls the employee 2. Within 5 days must notify employer, if notification is required, who in turn ,must enter notice in the logbook

3. Within 5 days after entry report the sickness, injury or death deemed work connected to: a. SSS in private sector or; b. GSIS in public sector *Note: The employer INITIALLY decided whether the injury, sickness or death is work related or not. 4. The claim is decided by the SSS or GSIS. Decisions of the two administering agencies are appealable to the Employees Compensation Commission, which is the policy making body, within 30 days. a. If the result of the appeal is favorable to the employee becomes final and executory, appealable to the SC in limited cases b. If SSS or GSIS is reversed the two systems cannot appeal to the high court. 2. PD 626 AND ITS EFFECTIVE DATE PD 626 amended extensively the Labor Code provisions on ECC and SIF. It applies only prospectively. Because it took effect on January 1, 1975 it applies to illness contracted on or after that date. For those contracted before said date the applicable law is the workmens compensation act its commission was finally abolished on March 31, 1976. 3. VALIDITY OF PD 626: NATURE OF THE STATE INSURANCE FUND Jose B. Sarmiento vs. Employees Compensation Commission, et. al. - PD 626 does not infringe upon the workers constitutional rights. The said new law discarded the concepts of presumption of compensability and aggravation to restore what the law believes as a sensible equilibrium between the employers obligation to pay and the employees right to receive reparation The new law establishes a state insurance fund built up by the contributions of employers based on the salaries of their employees. The injured workers do not have to litigate his right to compensation. No employer opposes his claim. There is no notice of injury nor requirement of controversion. The sick worker simply files a claim with a new neutral ECC which then determines on the basis of employees supporting papers and medical evidence whether or not compensation may be paid. The payment of benefits is more prompt. The cost of administration is low. The amount of death benefits has also been doubled. 3.1. Trust Fund It is now the trust fund and not the employer that suffers if benefits are paid to the claimants who are not entitled under the law. The employer joins the employee in

trying to have their claims approved. The employer is spared the problem of proving a negative proposition that the disease was not caused by employment. 3.2. Social Insurance Employees compensation is based on social security principles. All covered employers throughout the country are required to contribute fixed and regular premiums or contributions to a trust fund for their employees. Benefits are paid from this trust fund. At the time the amount of the contributions was being fixed, actuarial studies were undertaken. The actuarially determined number of workers who would probably file claims within any given year is important in insuring the stability of the trust fund and making certain that the system can pay its benefits due to all who are entitled and in the increased amounts fixed by law. Thus, if diseases no intended by the law to be compensated are inadvertently or recklessly included the integrity of SIF is endangered. 4. WORKMENS COMPENSATION ACT DISTINGUISHED FROM EMPLOYEES COMPENSATION LAW Workmens Compensation Act Presumption of Compensability once it is proven that injury or disease arose in course of employment Rule that if ailment aggravated by work employer becomes liable Requires the employer to controvert the claim within 14 days from disability or 10 days from knowledge otherwise considered waived Employees Compensation Law Abolished

Abolished No need to controvert because the claim is against the SIF not the employer

The old law destroyed the parity or balance between the competing interests of employer and employee with respect to workmens compensation. The balance was tilted unduly in favor of the workmen since it was possible to stretch the workrelated nature of an ailment beyond the seemingly rational limits. Under the present law for an employee to be entitled to sickness, injury or death benefits, it must be result form or must have resulted: 1. Any illness definitely accepted as an occupational disease listed by the Commission 2. Any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions The list of occupational diseases is in Annex A of the ECC Rules in the Appendix.

4.1. Presumptive Compensability for AFP Members and Policemen In a limited sense, Presumption of Compensability has been restored through Resolution No 3906, adopted on July 5, 1988 by the ECC which states: This board resolves, as it hereby resolves, to approve the adoption of a policy that the moment an AFP member suffers a contingency, the presumption is that it is because of the nature of his work; provided that the evidentiary details of his injury, or death, are clearly established through duly issued medical certifications on his injury or injuries, or death, by the attending physician or duly authorized representatives of the hospital where he is brought for medical treatment. 5. LIBERAL INTERPRETATION The ECC should adopt a liberal attitude in favor of the employee in deciding claims for compensability, especially where there is some basis in the facts for inferring a work-connection to the accident. This kind of interpretation gives meaning and substance to the compassionate spirit of the law as embodied in Article 4 of the New Labor Code. However, it is not the intention of the legislature the insurer against all accidental injuries which might happen to an employee while in the course of the employment, but only for such injuries arising from, or growing out of, the risks peculiar to the nature of the work in the scope of the workmens employment or incidental to such employment, and accidents in which it is possible to trace the injury to some risk or hazard to which the employee is exposed in a special degree by reason of such employment. Article 167: DEFINITION OF TERMS COMMENTS AND CASES 1. COMPENSABLE WORK-RELATED INJURY DEFINED What is compensated is not the injury or the disease itself but the attendant loss or impairment of earning capacity. Rule III, Section 1(a): For the injury and the resulting disability or death to be compensable, the injury must be the result of an employment accident satisfying all the following grounds: 1. the employee must have been injured at the place where his work requires him to be; 2. the employee must have been performing his official functions; and

3. if the injury is sustained elsewhere, the employee must have been executing an order for the employer 2. MEANING OF ARISING OUT OF AND IN THE COURSE OF THE EMPLOYMENT Although it has been said that the coverage formula is composed of two separate tests, the basic concept of compensation is unitary and is best expressed by the word, work-connection. An uncompromising insistence on an independent application of each of the two portions of the test can exclude clearly work-related injuries. Arising out of - refer to the origin or cause of the accident and are descriptive of its character In the course of the Employment when it takes place within the period of the employment, at a place where the employee reasonable may be, and while he is fulfilling his duties or is engaged in doing something incidental thereto 3. PROXIMATE CAUSE It is the sufficient cause, which may be the most remote of an operation chain. It must be that which sets the others in motion and is to be distinguished from a mere preexisting condition upon which the effective cause operates, and must have been adequate to produce the resultant damage without the intervention of an independent cause. 3.1. Illustrative Case: Proximate Cause Belarmino vs. Employees Compensation Commission The condition of the classroom floor caused Mrs. Belarmino to slip and fall and suffer injury as a result. The fall precipitated the onset of recurrent abdominal pains which culminated in the premature termination of her pregnancy with tragic consequences to her. Her fall on the classroom floor brought about her premature delivery which caused the development of septicemia postpartum which resulted in death. Her fall was the proximate or responsible cause that set in motion an unbroken chain of events leading to her, demise. True, that she probably would not have suffered lacerations of the vagina and would not have contracted the fatal infection. But she is not to blame for her inability to afford a hospital delivery and the services of a trained doctors and nurses. Penury compelled the deceased to scrimp by delivering her baby at home instead of the hospital. 3.2. Arising Out/In the Course of Employment Hinoguin vs. Employees Compensation Commission The death of Sgt. Hinoguin that resulted from his being hit by an accidental discharge of his companions rifle arose out of and in the course of his employment as a soldier on active duty status in the

AFP, and hence compensable. The concept of workplace cannot always be literally applied to a soldier on active duty status. A soldier must go where his company is stationed. Sgt. Hinoguin and his companions had permission to proceed to Aritao. This is a place where soldiers have secured lawful permission to be and cannot be very different from a place where they are required to go by their commanding officer. Hinoguin and his companions were not on vacation leave. They are authorized to carry their firearms with which they were to defend themselves if NPA elements happen to attack them. A soldier should be presumed to be on official duty unless he is shown to have clearly and unequivocally put aside that status or condition temporarily by, e.g. going on approved vacation leave. Even vacation leave may be preterminated by superior officers. 3.3. The 24-Hour Duty Doctrine and Its Qualifications; Moonlighting Policemen Soldiers and policemen and even firemen by the nature of their work may be considered on duty round-the-clock. But this doctrine, while it relaxes the workplace factor does not dispense with the work-connection requisite. GSIS vs. CA and F. Alegre From the cases (Hinoguin vs. ECC, Nitura vs. ECC and ECC vs. CA), it can be gleaned that the Court did not justify its grant of death benefits merely on account of the rule that soldiers or policemen, as the case may be, are virtually working round-the-clock. Note that the court likewise attempted in each case to find reasonable nexus between the absence of the deceased from his assigned place of work and the incident that led to his death. Obviously, the matter SPO2 Alegre was attending to at the time he met his death that of ferrying passengers for a fee, was intrinsically private and unofficial in nature proceedings as it did from no particular directive or permission from his superior officer. In the absence of such as in the case of Hinoguin and Nitura, or peacekeeping nature of the act attended to by the policeman at the time he died even without the explicit permission or directive of a superior officer, as in Alavaran, there is no justification for holding that SPO2 Alegre met the requisites set forth in the ECC guidelines. At any rate the 24-hour duty doctrine serves more as an after-the-fact validation of their acts to place them within the scope of the guidelines rather than a blanket license to benefit them in all situations that may give rise to their deaths. In other words, the doctrine should not be sweepingly applied to all acts and circumstances

causing the death of the police officer but only to those which, although not on official line of duty, are nonetheless, basically police service in character. 3.4. The 24-Hour Duty Doctrine Requires Work-Connection; Police Service Activities Valeriano vs. Employees Compensation Commission and GSIS Petitioner Valeriano was not able to demonstrate solidly how his job as a firetruck driver was related to the injuries he has suffered. That he sustained the injuries after pursuing a purely personal and social function having dinner with some friends. Because he was neither at his assigned work place nor in pursuit of the orders of his superiors when he met an accident and more importantly was not doing an act within his duty and authority as a firetruck driver, or any other act of such nature, at the time he sustained his injuries. There is not any reasonable connection between his injuries and his work as a firetruck driver. 4. INGRESS-EGRESS/PROXIMITY RULE The general rule in workmens compensation law known as going and coming rule, simply stated, is that in the absences of special circumstances, an employee injured in, going to, or coming from, his place of work is excluded from the benefits of workmens compensation acts. Exceptions: 1. Where the employee is proceeding to or from his work on the premises of his employer 2. Where the employee is about to enter or about to leave the premises of his employer by way of the exclusive customary means of ingress and egress (Proximity Rule) 3. Where the employee is charged, while on his way to or from his place of employment or at his home, or during his employment, with some duty or special errand connected with his employment. 4. Where the employer, as an incident of the employment, provides the means of transportation to and from the place of employment. Iloilo Dock & Engg. Co. vs. WCC The point where Pablo was shot was barely twenty meters away from the main IDECO gate, certainly nearer that a stones throw therefrom. The spot is immediately proximate to the IDECOs premises. Considering the fact, and further facts that Pablo has just finished overtime work at the time, and was killed barely two minutes after dismissal from work and the place was immediately proximate to the place of work, the accident in question must be

deemed to have occurred within the zone of employment and therefore arose out of and in the course thereof. Bountiful Brick Company vs. Giles Employment includes not only the actual doing of work, but reasonable margin of time and space necessary to be used in passing to and from the place where the work is to be done. If the employee be injured while passing, with the express or implied consent of the employer, to or from his work by a way over the employers premises, or over those of another in such proximity and relation as to be in practical effect a part of the employers premises, the injury is one arising out and in the course of the employment as much as though it had happened while the employee was engaged in his work at the place of its performance. 5. GOING TO OR COMING FROM WORK RULE Resolution No. 3914-A, July 5, 1988 extending the compensable coverage of offpremises injury from near the premises up to the residence of the employee. The resolution provides that an injury or death of a covered member in an accident while he is going to, or coming from, the workplaces, shall henceforth be duly considered compensable provided the following conditions are established definitely: 1) The act of the employee of going to, or coming from, the workplace, must have been a CONTINUING ACT, that is, he had not been diverted therefrom by any other activity, and he had not departed from his usual route to, or from, his workplace; and 2) Re: an employee on an special errand, the special errand must have been official and in connection with his work. 5.1. Accident on the Way to Work Alano vs. ECC Dedication was a school principal. Her tour of duty was from 7:30am to 5:30pm. While waiting for a ride at a public plaza on her way to school, she was bumped and run over by a speeding bus which caused her death. The deceased died while going to her place of work. She was at the place where her job necessarily required her to be if she was to reach her place of work on time. There was nothing private or personal about her being at the place of the accident. She was there because her employment required her to be there. 5.2. Accident on the Way Home Lazo vs. Employees Compensation Commission Here Lazo left his station at the Central Bank several hours after his regular time off, because the reliever did not arrive, and so he was asked to go on overtime. After permission to leave was given, he went home. There is no evidence that eh deviated from his usual, regular homeward

route or that interruptions occurred in the journey. Employment includes not only the actual doing of the work, but a reasonable margin of time and space necessary to be used in the passing, with the express or implied consent of the employer, to or from his work by a way over the employers premises, or over those of another in such proximity and relation as to be in practical effect a part of the employers premises, the injury is one arising out of and in the course of the employment as much as though it had happened while the employee was engaged in his work at the place of its performance. 6. INJURY AT PLACE OF EMPLOYMENT NOT NECESSARY ELEMENT OF COMPENSABILITY For an injury to be compensable, it is not necessary that the cause therefore shall take place within the place employment. If a workman is acting within the scope of his employment, his protection in the course of employment usually continues regardless of the place of injury The use of streets by the workman merely to get to or from his work stands on a different footing altogether, but as soon as it is established that the work itself involves exposure to the perils of the streets, the workman can recover for any injury so occasioned. The fact that street perils are common to all mankind is immaterial In fine, the general rule is that the accident should have occurred at the place of work and this is known as the direct premises rule. Exceptions among others are the Coming-and-going rule and the Ingress and egress/proximity rule 7. INCIDENTS OF EMPLOYMENT It is settled that injuries sustained in connection with acts which are reasonably incidental to the employment are deemed as arising out of such employment. 1) Acts of personal ministration for the comfort or convenience of the employee 2) Acts for the benefit of the employer 3) Acts done to further the goodwill of the business 4) Slight deviations from work, from curiosity or otherwise 5) Acts in emergency 8. ACTS OF MINISTRATION Acts of Ministration are those done by a person for the purpose of satisfying the call of nature, such as: quenching his thirst, relieving himself by way of urination or excretion etc. They are deemed to be incidents of employment and necessary to the health of the employee, so that injuries sustained thereby are compensable. 8.1. Rest or Refreshment

The general rule is that injuries occurring to an employee during an intermission or break for rest or refreshment arise in the course of the employment and are compensable. Such rule is not affected by the fact that the employee is paid by the hour and receives no pay for the period covered by such intermission. Whether an employee, by resting during work hours, departs from, abandons, or breaks his employment so as to deprive himself of the right to compensation for any injury sustained while so resting generally depends upon whether such resting, in view of all the circumstances is reasonable incident to the employment. 8.2. Lunch Period Thus, while generally an accidental injury to an employee is not covered by workmens compensation as being one arising out of and in the course of employment if it occurs OFF the employers PREMISES while the employee is going or coming from lunch on UNPAID TIME, there are exceptions 8.3. Union Meeting It has been held that an injury received at a union meeting held during a lunch period at the plant for the purpose of electing a shop steward, the shop steward system being recognized by the employer in its contract with the union, was not an injury arising out of and in the course of employment 9. ACTS FOR THE BENEFIT OF EMPLOYER The relation of master and servant is ordinarily suspended during the period that the employee is off duty and. Therefore, the general rule is that injuries occurring before or after regular working hours are not within the course of employment. However, an injury sustained by an employee outside his regular working hours or during a temporary stoppage or cessation of work may, nevertheless, under some circumstances, be compensable as arising out of and in the course of the employment, and is generally held to be so where the employee was at the time engaged in the performance of some service for the benefit of the employer in connection with his usual duties. 9.1. While Doing Work at Home Injuries sustained by an employee at his own home or upon his own premises, in connection with the performance of the duties of his employment, are generally held to be compensable where such work is done there pursuant to the terms of the contract, express or implied, or pursuant to the direction or request of the employer, but not where it is there performed voluntarily by the employee for his own convenience or benefit.

10. ACTS DURING EMERGENCY According to many authorities the following are injuries arising out of and in the corus of his employment and entitling the employee to compensation: 1) Outside the scope of his usual duty a. Which the employer has expressly ordered to do by someone authorized to direct him as to his work or; b. Even in the absence of orders when such act is reasonably necessary or incidental to his regular work, particularly where an emergency existed c. Even without emergency, direct orders or reasonable necessity, if it was done in the furtherance of the employers business or in pursuance of a habit or custom 11. EXTRA-PREMISES RULE a.k.a. Shuttle Bus Rule Where a company which provides the means of transportation in going to and coming from the place of work is liable for the injury sustained by employees while on board said means of transportation. This is because the company vehicle is an extension of its premises 12. SPECIAL ERRAND RULE An injury sustained by an employee outside the company premises is compensable if his being out is covered by an office order or a locator slip or pass for official business. 13. WHILE LIVING, BOARDING, OR LODGING ON PREMISES OF EMPLOYER, OR AT WORKING PLACE The mere fact that an employee was living on the employers premises at the time of injury does not ordinary of itself, render such injury compensable as arising out of or in the course of the employment where such residence on the employers premises is merely permissive and not required, or where the injury results from a risk or danger which is not reasonable incidental to employment. 14. WHILE TRAVELING The right to compensation depends, as in other cases generally, upon whether the injury results from a risk which is inherent in the nature of the employment, or which is reasonably incidental thereto, or which the employee is specially exposed, and upon whether the employee, at the time of the occurrence of the accident, was engaged in the exercise of some functions or duties reasonably necessary or incidental to the performance if the contract of employment, or, if not actively engaged, whether he was at the place where he was authorized or required by such contract to be. 14.1. Where Employee Uses Own Vehicle Which He Also Uses in Performance of Duties

In some cases in which it appeared that an employee was using his own vehicle at the time he was injured in an accident while going to or from work, and that he used such vehicle in the performance of his duties to his employer, it was held that his it was held that such injuries arose out of and in the course of employment. 14.2. Effect of Deviation from Route, Schedule, or Mode of Travel Non Compensability of Deviation depends upon the Extent, Purpose and Effect Thereof - An unauthorized deviation may preclude recovery of compensation for an injury caused by an added peril to which the employee is thereby exposed during the period of the deviation, but the compensability of an injury occurring after the deviation has ended and the employee is again in the course of his employment is not ordinarily affected thereby. 14.3. Effect of Mingling of Purposes of Employer and Employee; Dual Purpose Dual Purpose Doctrine considers as compensable an injury that an employee sustains while on a trip undertaken for the benefit of the employer even if in the course thereof the employee pursues also a personal purpose Resolution No. 99-08-0469, August 31, 1999 the doctrine may be applied in the adjudication of employees compensation claims. The application, however, is subject to the following guidelines: The Test in the applicability of the dual purpose doctrine: The test is that is ordinarily employed for determining liability in such a case is that if the work of the employee tends to create necessity for travel, he or she is deemed in the course of employment, albeit the employee serves at the same time some personal purpose. The requirement is that the services of the employer is at least a concurrent cause of the trip of the employee 15. EMPLOYER-SPONSORED ACTIVITIES The Test Whether the recreation was for the employees exclusive benefit, or whether the employer had some interest in the activity. Where an employee is injured while at recreation during a temporary cessation of work, the injury is compensable as arising out of and in the course of employment where the recreation indulged was fostered and encourages by the employer to the end of efficiency of the service. Recreational Activities fall under the so-called special engagement rule which is one of the exceptions to the direct premises rule. This exception covers field trips, intramurals, outings, and picnics when initiated or sanctioned by the employer.

Accidents befalling employees on those occasions are compensable. *Considered as an incident of employment 16. ACTS OF GOD OR FORCE MAJEUR General Rule: The employer is not responsible for accidents arising from force majeur or an act of God, when the employee has not been exposed to a greater danger than usual. Exception: Positional and Local Risks, when one in the course of his employment is reasonably required to be at a particular place at a particular time and there meets an accident, although one which any other person then and there present would have met irrespective of his employment, that accident is one arising out of the employment of the person so injured. Employer is held liable for compensation because were it not for the order the employee would not have been at said position or location which exposed him to the said danger. In investigating whether or not the death of an employee arose out of his employment, all of the circumstances present in the case should be taken into consideration in order to be able to determine whether or not a causal connection exist between his death and the conditions under which he necessarily had to fulfill his duties. Liberal Interpretation 17. ASSAULT Assault although resulting from a deliberate act of the slayer, is considered an accident within the meaning of the Workmens Compensation Act, since the word accident is intended to indicate that the act causing the injury shall be casual or unforeseen, an act for which the injured party is not legally responsible Where the duties of an employee entail his presence (at a place and a time) the claim for an injury there occurring is not to be barred because it results from a risk common to all othersunless it is also common to the general public without regard to such conditions, and independently of place, employment, or pursuit. 17.1. Increased Risk Jobs 1. Jobs having to do with keeping the peace or guarding property 2. Jobs having to do with keeping or carrying of money which subject the employee to the risk of assault because of the increased temptation to robbery 3. Jobs which expose the employee to direct contact with lawless and irresponsible members of the community, like that of a bartender; and 4. Work as bus driver, taxi driver, or street car conductor. 18. NPA VICTIMS; PRESUMPTIVE COMPENSABILITY

Quebec vs. GSIS, ECC Case No. 4310, promulgated November 9, 1988: The moment an AFP member suffers a contingency, the presumption is that it is because of the nature of his work. This policy is adopted because of certain serious peace and order problems of the country, more particularly the insurgency problem, it has become generally perceptible that on account of the nature of their work, members of the AFP have become marked men insofar as insurgents and other lawless elements are concerned and are, therefore killed by such insurgents at every opportunity. Same problem is true to the members of the police force. Police officers are also targets of the insurgents and other lawless elements. 18.1. Presumptive Compensability Not Applicable Jahuran vs. GSIS, ECC Case No. 3551, promulgated on March 29, 1989: Presumption applied in the Quebec case was not applied because said presumption only attaches when the members of the AFP are killed by insurgents or lawless elements because of the mere fact that they are soldiers. In the case at bar Jahurans heirs were denied compensability although he was killed by another member of the Philippine Constabulary because evidence revealed the indeed the incident was brought about by personal conflicts. 19. EFFECTS OF VIOLATION OF RULES Acts within the sphere of employment but carried out in violation of some employerpromulgated rules are compensable. 1. Where the violation of the rule itself did not bring about the cause of the accident 2. Where there is serious doubt that the prohibition was known to the employees injured. 3. Where the violation was not intentional but due to carelessness or negligence. Hawaiian-Philippine CO. vs. WCC: If the injury or death was the result of horseplay or larking among employees, the courts have declared the same as a compensable accident. There can be no question that horseplay or larking is unfortunately too common in factory life. 20. WHEN NOT COMPENSABLE Although violation of company rules does not necessarily defeat compensability it will be a different matter, however, if the injury results from intoxication whether or not the company rule is violated. It will be seen under Art. 172 that the disability or death is not compensable if it is caused by the employees intoxication, willful intention to injure or kill himself or another, notorious negligence, or otherwise excluded from coverage of law.

21. SICKNESS, DEFINED; OCCUPATIONAL OR COMPENSABLE DISEASE Sickness any illness definitely accepted as an occupational disease listed by the Commission, or any illness caused by employment subject to proof by the employee that the risk of contracting the same is increased by working conditions. For this purpose, the Commission is empowered to determine and approve occupational diseases and work-related illnesses that may be considered compensable based on peculiar hazards of employment. (Occupational diseases found in ECC Rules, appended to the book. Book IV) 21.1. Occupational Disease Menez vs. Employees Compensation Commission, et. al: Nature means conditions to which all employees of a class are subject and which produce the disease as a natural incident of a particular occupation, and attach to that occupation a hazard which distinguishes it from the usual run of the occupation and is in excess of the hazard attending the employment in general. To be an occupational disease it must be one due wholly to causes and conditions which are normal and constantly present and characteristic of the particular occupation; that is, those things which science and industry have not yet learned how to eliminate. Every worker in every plant of the same industry alike constantly exposed to the danger of contracting a particular occupational disease. 21.2. Duties of Employer Regarding Occupational Disease Under Rule III, Sec. 2 of the Amended ECC Rules, the employer is bound to require preemployment examination of employees exposed to occupational diseases. 22. THEORY OF INCREASED RISK Increased Risk Theory to establish compensability, the claimant must show proof of reasonable work-connection, not necessarily direct causal relation. The degree of proof required is merely substantial evidence which means such relevant evidence as will support a decision, or clear and convincing evidence. Although strict rules of evidence are not applicable, yet the basic rules that mere allegations is not evidence cannot be disregarded. 22.1. Illustrative Case: Increased Risk Shown Clemente vs. GSIS: Working as a cleaner in a skin clinic whereas the deceased was exposed to different carriers of viral and bacterial diseases. Narazo vs. ECC: (Uremia) Deceased was a Budget Examiner. From human experience, prolonged sitting down and putting off urination result in stagnation of urine. This encourages the growth of bacteria in the urine, and affects the delicate balance

between bacterial multiplication rates and the host defense mechanisms. Delayed excretion may permit the retention and survival of microorganisms which multiply rapidly, and infect the urinary tract. 22.2. Illustrative Case: Increased Risk Not Shown Quantum of Evidence: to prove the cause of the ailment or the increased risk from the job can obviously be determined only on a case-to-case basis Limbo vs. ECC: Absence of the sickness from the list of Occupational Diseases is not a bar to petitioner to claim so long as he can probe that the risk of contracting the illness was increased by his working conditions. In determining whether a disease is compensable, it is enough that there exists a reasonable work connection as the workmens claim is based on probability and not on certainty. Dabatian vs. GSIS: Aside from the undisputed fact that deceased was a heavy coffee drinker, which was his way of warding off sleepiness; no evidence was ever adduced by claimant to bolster the theory that her husbands work increased the risk of contracting the ailment. The Supreme Court takes notice of the fact that the conditions in this case are not peculiar to the work mentioned therein. Many, if not most, employees are equally exposed to similar conditions but have not been victims of peptic ulcer. Sarmiento vs. ECC: Parotid carcinoma or cancer of the salivary glands is not an occupational disease considering the deceaseds employment as accounting clerk and later as manager of the budget division. The petitioner must, therefore, prove that his wifes ailment was caused by her employment or that her working conditions increased the risk of her contracting fatal illness. The evidence presented by petitioner that her field trips necessitated her to take frequent plane travels which caused defeaning and numb sensation in the ears were held by the court as mere conjectures and not sufficient to grant her relief. 23. SPECIFIC DISEASES/AILMENTS 23.1. Adenocarcinoma of the Ileocaecal Junction A malignancy affecting a certain portion of the small intestines, it is not listed as an occupational disease. Despite scientific advances on the matter, even professional experts have not as yet determined its cause. Since its cause is not known, there is no duty on the part of the claimant to present proof, since proof is required only when the cause of the disease is known. 23.2. Asbestosis Guidelines:

1. the employee must have been exposed to asbestos dust in the workplace, as duly certified to by the employer, or by a medical institution, or competent medical practitioner acceptable to, or accredited by the System 2. The chest x-ray report of the employee must show findings of asbestos, or asbestos-related disease, (e.g. plural plaques, pleural thickening, effusion, neoplasm and interstitial fibrosis; 3. in case the ailment is discovered after the employees retirement/separation from the service, the claim therefore must be filed with the System within (3) years from discovery 23.3. Bangungot The exact cause of death is still unknown. But even if the deceased died of bangungot, still, where the cause of an ailment is unknown and undetermined even by medical science, the requirement of proof of causal link between the ailment and the working conditions should be liberalized. 23.4. Bells Palsy, Anxiety Neurosis, Peripheral Neuritis Not among those listed, thus, the claimant must prove that he contracted the disease in the course of employment. 23.5. Cancer of the Pancreas - Still of unknown origin 23.6. Cancer of the Stomach In ECC Resolution No. 247-A, dated April 13, 1977, cancer of the stomach and other lymphatic and blood forming vessels is considered occupational only among wood-workers, loggers, carpenters and employees, in plywood, pulp and paper mills. 23.7. Carcinoma of the Breast with Metastases to the Gastrointestinal Tract Metastases to the gastrointestinal Tract and lungs is listed as occupational disease only among workers in pulp and paper mills and plywood mills, and vinyl chloride and plastic factories. 23.8. Cardiovascular Failure Under the restrictive provisions of the Labor Code, which cast aside the presumption of compensability provided in the Workmens Compensation Act, cardiovascular disease, which includes myocardial infarction, is listed as a work-related disease 23.9. Chronic Glomerulonephritis* 23.10. Chronic Osteomylitis* 23.11. Chronic Pylonephritis, Diabetes Mellitus, Anemia, Pulmonary Metastases (Cancer)* 23.12. Incomplete Abortion

Carvajal vs. ECC: Records reveal that petitioners wife, while working as campaign clerk in the Treasurers Office of San Juan, Eastern Samar, suffered two attacks of vaginal bleeding and hypogastric pain attributing said ailment to the lifting of heavy tax declaration books, due to incomplete abortion. Pregnant women become tired more readily; therefore, the prevention of fatigue must be stressed very emphatically. The body is made up of various types of cells, each type with a specific function. Depletion of nerve-cell energy results in fatigue, and fatigue causes certain reactions in the body that are injurious. Additionally, medical opinion to the contrary can be disregarded especially when there is some basis in the facts for inferring a work-connection. 23.13. Intestinal Obstruction Partial It is a condition in which the passage of intestinal contents is arrested or seriously impaired. This is due to causes which are either mechanical, vascular or neurogenic. Mechanical causes are intrinsic factors as adhesions and tumors, and hernia and such factors as impacted foreign body of feces, parasites, and gallstones. 23.14. Leprosy 23.15. Parotid Carcinoma* 23.16. Peptic Ulcer* 23.17. Rheumatoid Arthritis* 23.18. Schistosomiasis A teacher who works under a hazardous condition in far-flung town and has to hike daily to his place of work, is liable to contract schistosomiasis. 23.19. Senile Cataract* 23.20. Tuberculosis It is an occupational disease or work-connected in such occupations as that of a teacher, laborer, driver, land inspector and other similar occupations; hence compensable. *Not an occupational disease, hence must prove that the risk of contracting the disease was increased by the working conditions. 24. EVIDENCE; DEGREE OF PROOF Proof of direct causal relation is not, however, indispensably required. It is enough that the claimant adduces proof of reasonable work connection, whereby the development of the disease was brought about largely by the conditions present in the nature of the job. Strict rules of evidence are not demanded. The degree of proof

required is merely substantial evidence, which has been held to be such relevant evidence as a reasonable mind might accept as sufficient to support a conclusion. Under the law, it is not required that the employment be the sole factor in the growth development or acceleration of claimants illness to entitle him to the benefits provided for. It is enough that his employment had contributed even in a small degree. 25. PROOF IS REQUIRED ONLY IF CAUSE IS KNOWN; OLD DOCTRINE The Necessity of Proof is present only when the cause of the disease is known. If not known, there is no duty to present proof, for the law does not demand an impossibility. Thus, the requirement that the disease was caused or aggravated by the employment or work applies only to an illness where the cause can be determined or proved. Where the causes of an ailment are unknown to and/ or undetermined even by medical science, the requirement of proof of any causal link between the ailment and the working conditions should be liberalized so that hose who have less in life will have more in law. 26. NEW DOCTRINE; PROOF IS REQUIRED Raro vs. ECC: It is not correct to say that all cancers are not compensable. The list of occupational diseases prepared by the ECC includes some cancers as compensable. Cancer is still a disease of still unknown origin which strikes people in all walks of life, employed or unemployed. Unless it be shown that a particular form of cancer is caused by specific working conditions. The court cannot conclude that it was the employment which increased the risk of contracting the disease. Orate vs. CA: It is well to remember that if diseases not intended by the law to be compensated are inadvertently or recklessly included, the integrity of the State Insurance Fund is endangered. Compassion for the victims of diseases not covered by the law ignores the need to show a greater concern for the trust fund to which the tens of millions of workers and their families look to for compensation whenever covered accidents, diseases and death occur. This stems from the development in law that no longer is the poor employee still arrayed against the might and power of his rich corporate employer, hence the necessity of affording all kinds of favorable presumptions to the employee. This reasoning is no longer good policy. It is now the trust fund and not the employer which suffers if benefits are paid to claimants who are not entitled under the law.

Chapter II COVERAGE AND LIABILITY Article 168: COMPULSORY COVERAGE Article 169: FOREIGN EMPLOYMENT Article 170: EFFECTIVE DATE OF COVERAGE Article 171: REGISTRATION COMMENTS 1. COVERAGE Employees

substitute employees (Article 167(g) of the Labor Code as amended and Section 4(b)(1) of Rule 1 as amended of the implementing rules on employees compensation System prior to age 609 and has not been compulsorily retired. Employer 2. FOREIGN EMPLOYMENT Filipinos working abroad for employers doing business in the Philippines are covered by the employees compensation law. They are entitled to the same benefits as for those working in the Philippines. Considering their situation, the application for the rule on accreditation of hospitals and physicians and the rule requiring notice to employer is relaxed. Article 172: LIMITATIONS OF LIABILITY COMMENTS AND CASES 1. EXCLUSIONS Self-Inflicted or Self-Courted contingencies 1.1. Intoxication or Drunkenness To the extent that one is not entirely himself or so that his judgment is impaired and his act, word, or conduct is visibly impaired. 1.2. Self-Inflicted Injuries

The injury must be intentionally self-inflicted, which contemplates a deliberate intent on the part of the employee, not a failure on his part to realize the probable consequences to himself of his foolish act. 1.2.a. Suicide or Provoked Death Not Compensable 1.2.b. Death Not the Result of Workers Willful Act 1.2.c. Suicide, When Compensable * According to American authorities, suicide is compensable in the following cases: 1. when it results from insanity resulting from compensable work injury or disease 2. when it occurs during a delirium resulting from compensable disease NAESS Shipping Phil. Vs. NLRC: No law or rule would make it illegal for an employer to assume the obligation to pay death benefits in favor of his employee in their contract of employment. Since, NAESS freely bound itself to a contract which on its dace makes it unqualifiedly liable to pay compensation benefits for Dublins death while in its service, regardless or whether or not it intended to make itself the insurer, in the legal sense, of Dublins life, NAESS cannot escape liability. 1.3. Notorious Negligence Notorious Negligence something more than simple or contributory negligence. It signifies a deliberate act of the employee to disregard his own personal safety. Disobedience to rules and/or prohibition does not in itself constitute notorious negligence, if no intention can be attributed to the injured to end his life. It exempts the State Insurance Fund from liability for injuries suffered by the former by notorious negligence. ART. 173 EXTENT OF LIABILITY 1. OPTIONS AVAILABLE: BENEFITS UNDER THE COMPENSATION LAW OR UNDER THE CIVIL CODE Question: Does the compensation remedy under the Workmens Compensation Act (now under the Labor Code) for work-connected death or injuries exclude other remedies under the civil code? Answer: Case of Ysmael Maritime Corporation vs. Avelino (June 30, 1987) In this case, the employer refused to grant the claim of the deceased employees parents on the ground that the claimants had already been compensated by the Workmens Compensation Commission for the same incident, for which reason they are now precluded from seeking other remedies against the same employers under the Civil Code.

Ruling: In the case of Robles vs. Yap, it was held that the action is selective and the employee or his heirs have a choice of availing themselves of the benefits under the WCA or of suing in the regular courts under the Civil Code for higher damages from the employer by reason of his negligence. But once the election has been exercised, the employee or his heirs are no longer free to opt for the other remedy, i.e., the employee cannot pursue both actions simultaneously. 2. RECOVERY UNDER THE LABOR CODE AND THE SOCIAL SECURITY LAW - Simultaneous recovery of benefits under the employees compensation program of the Labor Code and under the Social Security Law is allowed. ART. 174 LIABILITY OF THIRD PARTIES ART. 175 DEPRIVATION OF BENEFITS Rule: No contract, regulation, or device whatsoever shall operate to deprive the employee or his dependents of any part of the income benefits, and medical or related services granted under this title. Existing medical services being provided by the employer shall be maintained and continued to be enjoyed by their employees. Exception: When otherwise provided under this Title. CHAPTER III ADMINISTRATION ART. 176 EMPLOYEES COMPENSATION COMMISSION ART. 177 POWERS AND DUTIES ART. 178 MANAGEMENT OF FUNDS ART. 179 INVESTMENT OF FUNDS ART. 180 SETTLEMENT OF CLAIMS ART. 181 REVIEW ART. 182 ENFORCEMENT OF DECISIONS 1. STRUCTURE AND FUNCTIONS CHAIRMAN of the Employees Compensation Commission : Secretary of Labor and Employment FOUR EX-OFFICIO MEMBERS: a. SSS Administrator; b. President and General Manager c. ECC Executive Director d. Medicare Chairman TWO APPOINTIVE MEMBERS:

a. one representing the employers (for a term of 6 yrs. each) b. another representing the employees ECC the policy-making body of the Employees Compensation Program and also the appeal body. (Decisions of SSS or GSIS, if unfavorable to the claimant, are appealable to the ECC). THREE THRUSTS OR COMPONENTS OF THE ECC PRGRAM: 1. Preventive Thrust - to minimize and control hazards in the working environment. - Two agencies involved in this program: a. Bureau of Working Conditions (BWC) - inspects work premises b. Occupational Safety and Health Center (OSHC) - trains safety engineers, tests safety equipment and undertakes research work. - the law provides that establishments having high rate of incidents caused by hazards of their working environment will be liable to 25% of benefits due the claimants. (To force the observance of the legal requirement on occupational health and safety.) 2. Compensative Thrust - is the heart of the Employees Compensation Program - through the SSS and GSIS, the ECC pays benefits to government and private Sector workers who suffer work-oriented contingencies. - in case of death, the benefits are given to the beneficiaries. 3. Curative Thrust - The ECC is also responsible for the treatment of sickness or injury that a worker may suffer in line of duty as well as rehabilitation of those who are disabled. Note: For medical services, the ECC conduct accreditation of qualified physicians, clinics and hospitals where EC patients may be referred to for admission and treatment. REHABILITATION SERVICES consist of a. medical treatment; b. surgical treatment; or c. hospital treatment, including appliance.

2 TWO SEPARATE FUNDS The ECC may not augment the SIF in the GSIS with funds from the SIF in the SSS because these are two separate funds. CHAPTER IV CONTRIBUTIONS ART. 183 EMPLOYERS CONTRIBUTIONS ART. 184 GOVERNMENT GUARANTEE The penalties to the employer who is delinquent in paying ECC contributions include imprisonment and/or fine and a 3% penalty per month from the date the contribution falls due until paid. CHAPTER V MEDICAL BENEFITS ART. 185 MEDICAL SERVICES ART.186 LIABILITY ART. 187 ATTENDING PHYSICIAN ART. 188 REFUSAL OF EXAMINATION OR TREATMENT ART. 189 FEES AND OTHER CHARGES ART. 190 REHABILITATION SERVICES 1. E.C. BENEFITS SUMMARIZED THREE KINDS OF COMPENSATION EXTENDED TO THE EMPLOYEE: a. Services - medical services, appliances and supplies; - rehabilitation services b. Cash Income Benefit or Pension due to: - temporary total disability; - permanent total disability; - permanent partial disability; - death. c. Funeral Benefit 2. MEDICAL BENEFITS The Medical services, appliances, and supplies shall be provided to the afflicted employee: - beginning on the 1st day of in injury or sickness, - during the subsequent period of his disability,

- and as the progress of his recovery may require, subject to Sec. 5 of Rule IV, which requires submission of periodic medical report from the attending physician. * Notes: - The employee is entitled to the benefits only for the ward services of an accredited hospital and accredited physician. - ECC accredited hospitals and physicians are not allowed to ask any deposit from EC patients as requisite for admission. - Neither are they allowed to collect any amount from EC patients as charges. - However, they are privileged to claim reimbursement with the ECC through the System from expenses incurred in the treatment of patients. - Medicines purchased by EC patients are reimbursed 100%. - Expenses incurred at the ICU are also paid in full. 2.1 Duration of Medical Liability - Medical attendance is owing as long as the employee is sick of a compensable illness, and this duty is not ended when employment terminates. - Prevailing Rule in compensation cases: Acts not containing any limitation as to the period during which the employer may furnish or pay for medical, surgical, or hospital services have been construed as imposing liability on the employer as long as such services are required to cure or relieve the injured employee from the effect of his injury. 2.2 Reimbursement of Medical Expenses - The services, appliances and supplies may be acquired by the employee himself, in the event of failure of the employer to furnish the same promptly, at the expense of the employer or system. - The employees right of reimbursement for medical expenses is not extinguished upon his death but is transmitted to his legal heirs, unless personal in nature or declared by law to be so. The reimbursable medical expenses are not only those incurred for the primary illness but even those for its complications developed after the employees retirement. Case: Godofredo Alvero, Sr. vs. GSIS (Dec. 4, 1991) Ruling: The complications that arose from appellants primary illnesses, PTB and COPD were brought about by the intake of several medications like steroids, antibiotics, and diuretics. For this reason, we believe that appellant is entitled to reimbursement of medications used in treating the complications, Diabetes Mellitus and Stomach Ulcerations.

3. REHABILITATION SERVICES THREE STAGES OF REHABILITATION UNDER THIS PROGRAM: a. Physical rehabilitation -involves physical therapy by the rehab center of the ECC accredited hospital, furnishing of prosthesis and appliances all paid by the ECC. b. Vocational Assessment -involves evaluation by guidance psychologist of the ECC and sending to vocational school of those found ready to reengage in gainful employment. b. Vocational Placement -involves job placement by Employment Service Officer to help him become independent and gainfully employed. CHAPTER VI DISABILITY BENEFITS ART. 191 TEMPORARY TOTAL DISABILITY ART. 192 PERMANENT TOTAL DISABILITY ART. 193 PERMANENT PARTIAL DISABILITY 1. DISABILITY Disability does not refer to the injury nor to the pain and suffering it has occasioned - it refers to the loss or impairment of earning capacity - there is disability when there is a loss or diminution of earning power because of actual absence from work due to the injury or illness arising out of and in the course of employment. - The basis of compensation is reduction of earning power - As long as the employee goes on working (even if he suffers service-connected injury or illness) without any reduction whatsoever in his earning capacity, there is no disability and , therefore, he is not entitled to any income benefit. Art. 167 (n) defines disability as loss or impairment of a physical or mental function resulting from injury or sickness. 2. CATEGORIES OF DISABILITY Case: Vicente vs. ECG (Jan. 23, 1991) 3 Distinct Categories of of Employees Disability: 1. temporary total disability 2. permanent total disability 3. permanent partial disability

TOTAL DISABILITY - may either be: a. permanent b. temporary - does not mean a state of absolute helplessness - means disablement of an employee to earn wages in the same kind of work, or a work of similar nature, that he was trained for or accustomed to perform, or any kind of work which a person of his mentality and attainment could do. Kinds of Disability & Purpose of law for granting Compensation A. Temporary Disability - To compensate the laborer or employee for what he might have earned during the period of the treatment of his injury B. Permanent Disability - To compensate the injured laborer or employee for the actual and permanent loss of a member of the body, or the use thereof Kinds of Disability and Descriptions 1. Temporary Total Disability employee is unable to perform any gainful occupation for a continuous period not exceeding 120 days, except as otherwise provided in Rule X of these Rules. - income benefit equivalent to 90 percent of his average daily salary credit, subject to the following conditions: 1. the daily income benefit shall not be less than P10 or more than P90 nor paid longer than 120 days for the same disability, unless the in jury or sickness requires more extensive treatment that lasts beyond 120 days, but not to exceed 240 days from onset of disability, in which case he shall be paid benefit for temporary total disability during the extended period. 2. the monthly income benefit shall be suspended if the employee fails to submit a monthly medical report certified by its attending physician. - Maximum Daily Income Benefit : P200.00 - Paid beginning on the 1st day of disability. - The system may declare the total and permanent status at any time after 120 days of continuous temporary disability as may be warranted by the degree of actual loss or impairment of physical or mental functions as determined by the system. Note: -After an employee has fully recovered from an illness, the period covered by any relapse he suffers, or recurrence of his illness shall be considered independent of, and

separate from, the period covered by the original disability. Such a period shall not be added to the period covered by his original disability in the computation of his income benefit for temporary total disability. 2. Permanent Total Disability -employee is unable to perform for a continuous period exceeding 120 days except as otherwise provided for in Rule X of the ECC Rules. - incapacity to perform gainful work which is expected to be permanent. - does not require a condition of complete helplessness PERMANENT TOTAL DISABILITIES (ART. 192): 1. Temporary total disabilities lasting continuously for more than 120 days; 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 and insanity; and 6. Such cases as determined by the System and approved by the Commission. - The full monthly income benefit shall be paid for all compensable months of disability. The monthly income benefit shall be guaranteed for 5 years, except as otherwise provided. GROUNDS FOR CANCELLATION OF PTD: 1. Failure of employee to present himself for examination at least once a year upon notice by the System; 2. Failure to submit a quarterly medical report certified by his attending physician as required under Sec. 5 of Rule IV hereof; 3. Complete or full recovery from his permanent disability; or 4. Upon being gainfully employed. (ECC Rules) Amount of Benefits: a. SSS- monthly income benefit as defined in Sec. 9 (a), Rule VI b. the number of months of paid coverage shall be the number of monthly contributions remitted to the System including contributions other than for Employees Compensation if paid before March 31, 1975. The full monthly income benefit shall be paid for all compensable months of disability.

c. The first day preceding the semester of temporary total disability shall be considered for purposes of computing the monthly income benefit for permanent total disability. Note: -Each dependent child, but not exceeding 5, counted from the youngest and without substitution, shall be entitled to 10% percent of the monthly income benefit of the employee. -Except the benefit to dependent children under Sec.4 of this Rule, the aggregate monthly benefit payable, in the case of the GSIS, shall in no case exceed the monthly wage or salary actually received by the employee as of the date of his permanent total disability. 3. Permanent Partial Disability -employee suffers a permanent partial loss of the use of any part of his body - see art. 193 (body parts/period) -monthly income benefit for the number of months indicated in art. 193 - If the indicated number of months exceeds 12, the income benefits shall be paid in monthly pension; otherwise, the System may pay income benefit in lump sum or in monthly pension. - a covered employee shall continue to receive the income benefits provided thereunder even if he is gainfully employed and receiving his wages or salary. Permanent Total vs. Permanent Partial Permanent Total - -results in an employees loss of work or inability to perform his usual work -Test to determine whether or not an employee suffers from Permanent Total: a showing of the capacity of the employee to continue performing his work notwithstanding the disability he incurred. Permanent Partial -occurs when an employee loses the use of any particular anatomical part of his body which disables him to continue with his former work Permanent Total Disability Cases: 1. Orlino vs. ECC Ruling: He is considered permanently and totally disabled to work when he was incapacitated or disabled to perform any substantial amount of labor in the line of

work where he was formerly engaged, or any other kind of work to which he could be assigned. 2. Vicente vs. ECC Ruling: The test of determining whether or not an employee suffers from permanent total disability is a showing of the capacity of the employee to continue performing his work notwithstanding the disability he incurred. It does not mean an absolute helplessness but rather an incapacity to perform gainful work which is expected to be permanent. Conversion from Permanent Partial to Permanent Total 1. GSIS vs. CA Ruling: A persons disability may not manifest fully at one precise moment in time but rather over a period of time. It is possible that an injury which at first was considered to be temporary may later on become permanent or one who suffers a partial disability becomes totally and permanently disabled from the same cause. NOTE: -The compensation paid in 1936 on account of the amputation of an employees foot, below the knee, should NOT be deducted from the compensation due for the dsability resulting from the amputation of the left leg, above the knee in 1857. CHAPTER VII DEATH BENEFITS ART. 194 DEATH DEPENDENCY - does not mean absolute dependency for the necessities of life, but rather, that the plaintiff looked up to and relied on the contribution of the decedent in whole or in part, as a means of supporting and maintaining herself in accordance with her station in life. - A person may be dependent, according to this view, although able to maintain himself without any assistance from the decedent. TEST OF DEPENDENCY - dependency may exist although the dependent could have subsisted without the assistance he received, if such contributions were relied on by claimant for his means of living as determined by his position in life. - one need not be a part of the deceaseds household in oreder to be a dependent.

SPOUSE AS DEPENDENT - arises from fact that marriage exists - showing of marital status is essential TWO WIVES AS CLAIMANTS - the Commission must resolve the dispute - determine who the legal wife is PARENTS AS DEPENDENT - a parent cannot claim as a dependent in a compensation case where the deceased employee is an abandoned child. DEATH BENEFIT AND BENEFICIARIES Death benefits are paid in the form of cash monthly pension: a. for life to the primary beneficiaries, guaranteed for 5 yrs.; b. for not more than 60 months to the secondary beneficiaries in case there are no primary beneficiaries; c. in no case shall the total benefit be less than P1,500 Notes: - Amount of income benefits shall be equivalent t the monthly income benefits under PTD and PPD benefits. - Under the ECC Rules, the death benefit shall accrue to the Employees Compensation Fund if the deceased employee has no beneficiaries at the time of his death. - Funeral benefit is paid to the survivor or to whoever shouldered the burial expenses ART. 195 RELATIONSHIP AND DEPENDENCY ART. 196 DELINQUENT CONTRIBUTIONS ART.197 SECOND INJURIES ART. 198 ASSIGMENT OF BENEFITS ART. 199 EARNED BENEFITS ART. 200 SAFETY DEVICES ART. 201 PRESCRIPTIVE PERIOD ART. 202 ERROMEOUS PAYMENT ART. 203. PROHIBITION ART. 204 EXEMPTION FROM LEVY, TAX, ETC.

CHAPTER IX RECORDS, REPORTS AND PENAL PROVISIONS ART. 205 RECORD OF DEATH OR DISABILITY ART. 206 NOTICE OF SICKNES, INJURY OR DEATH ART. 207 PENAL PROVISIONS ART. 208 APPLICABILITY TITLE III MEDICAL CARE TITLE IV ADULT EDUCATION