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TABLE OF CONTENTS
8. WORKING CONDITIONS FOR SPECIAL GROUP OF WORKERS ............................................................................................. 2 A. WOMEN .......................................................................................................................................................................... 2 B.CHILDREN ....................................................................................................................................................................... 15 C. HOUSEHELPERS/CAREGIVERS ....................................................................................................................................... 40 D. HOMEWORKERS ........................................................................................................................................................... 46 9. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY ............................................................................................................. 50 III. Employee Classification ................................................................................................................................................... 53 IV. TERMINATION OF EMPLOYMENT .................................................................................................................................... 62 A. GENERAL CONCEPTS ..................................................................................................................................................... 62 B. TERMINATION OF EMPLOYMENT BY EMPLOYEE.......................................................................................................... 66 C. TERMINATION OF EMPLOYMENT BY EMPLOYER ......................................................................................................... 68 1. Substantive Requirements Just Causes .................................................................................................................. 69 2. Substantive Requirements - Business-related Causes .............................................................................................. 81 3. Disease ...................................................................................................................................................................... 85 4. Enforcement of Union Security Clause in the CBA.................................................................................................... 86 5. Illegal Strike/ Illegal Acts ........................................................................................................................................... 87 D. PROCEDURAL REQUIREMENTS ..................................................................................................................................... 88 E. RELIEFS/REMEDIES IN ILLEGAL DISMISSAL.................................................................................................................... 98 V. RETIREMENT ................................................................................................................................................................... 107

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8. WORKING CONDITIONS FOR SPECIAL GROUP OF WORKERS

A. WOMEN

SUMMARY: Pregnant women employees are entitled to maternity leave with full pay, of at least 2 weeks prior to the expected delivery date, and another 4 weeks after, as long as they have served an aggregate of at least 6 months for the last 12 months. Should the pregnant woman employee fail to avail of the 2-week pre-delivery leave or any portion of it, the said period shall be added to her post-delivery leave. Employers may require of employees seeking to avail of such leave a medical certificate stating that the delivery will probably take place in two weeks. Maternity leave can further be extended, for certified causes (when she is rendered unfit to work by the pregnancy/miscarriage/abortion), but without pay, unless the woman employee has leave credits left to avail of. Maternity leave benefits shall only be paid by the employer for a woman employee's first four deliveries. Employers who habitually employ more than 200 workers in any locality must provide free family planning services to their employees and spouses.

The prohibition on discrimination against women in the workplace has both constitutional and statutory basis. Arts. II, Sec. 14 and Art. XIII, Sec. 14, 1987 Constitution Labor Code and the Omnibus Rules Implementing the Labor Code RA 9710 RA 10151 CEDAW

Acts of gender discrimination include: payment of a lesser compensation to a female employee as against a male employee, for work of equal value; favoring a male employee with respect to promotion, training opportunities, study and scholarship grants solely on account of their sexes; stipulations against marriage; dismissal or non-admission to work due to pregnancy or the possibility of being pregnant again.

RA 10151's repeal of Arts. 130-131 of the Labor Code, allowed the employment of night workers (for not less than seven hours a day, including the interval from 12AM-5AM), subject to health assessment and the provision of mandatory first-aid, sleeping or resting, and transportation facilities. The limit for night work are fixed by the Secretary of Labor after consulting with workers' representatives, labor organizations and employers. RA 10151 does not cover workers employed in agriculture, stock raising, fishing, maritime transport and inland navigation.

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Prior to RA 10151, women in industrial undertakings may not work between 10 PM-6AM, while women in commercial or non-industrial undertakings may not work between 12 AM-6AM. With respect to agricultural night work, women must first be given a rest period of at least 9 hours. These prohibitions can be disregarded in extraordinary cases of force majeure, urgent work to be performed on machineries, the concerned employee being a managerial/technical/healthcare-providing employee or are family members, etc. RA 10151 suggests that alternatives be given to women night workers for at least sixteen weeks divided before and after childhood, and for additional periods, upon presentation of a medical certificate attesting to the necessity of such extension. During this period, a woman worker cannot be dismissed for causes relating to her pregnancy/childbirth/childcare responsibilities, nor shall it affect her employment status. Pregnant women and nursing mothers may only be allowed to work at night upon the certification of a competent physician other than the company physician.

Under Section 8 of RA 7192, housewives who devote their full time to managing the household shall, upon the working spouse's consent, be entitled to voluntary Pag-IBIG, GSIS or SSS coverage to the extent of half the working spouse's salary and compensation. Their contributions will be deducted from the working spouse's salary. RA 9710 prohibits the expulsion and non-readmission of women faculty and female students on account of their pregnancy outside of marriage. Under RA 9710, a woman employee who has worked an aggregate period of six months for the last 12 months is also entitled to a special leave benefit of 2 months with full pay based on her gross monthly compensation, if she underwent surgery caused by gynecological disorders. Women in Especially Difficult Circumstances are defined in Sec. 30 of RA 9710 as those victims and survivors of sexual and physical abuse, illegal recruitment, prostitution, trafficking, armed conflict, rape, incest, etc. and those in detention. RA 9710 also affirms Women's Right to Decent Work, which involves work standards and job creation (Sec. 22). Establishments required by law to maintain a clinic or infirmary shall provide free family planning services to their employees, including contraception. A woman who works with/without compensation in any night club, cocktail lounge, massage clinic, bar or other similar establishments under the control and supervision of that establishment's management shall be considered its employee. Sexual harassment may be committed in a work-related environment or an education or training-related environment. It is committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of said act. In a work-related environment, sexual harassment is committed: when the sexual favor is made a condition for granting favorable employment status; impairs the employee's rights or privileges under existing labor laws; or would result in an intimidating, hostile, or offensive environment for the employee. In an education or training environment, sexual harassment is committed against one's ward, student/apprentice, premised on the granting of favorable education assessment/benefits, or when the sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice.

Persons who direct or induce another to commit sexual harassment or cooperate in its commission are also liable for the same act.

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8. WORKING CONDITIONS FOR SPECIAL GROUPS OF WORKERS A. WOMEN Labor Code Art. 133 MATERNITY LEAVE BENEFITS. a. Every employer shall grant to any pregnant woman employee who has rendered an aggregate service of at least six (6) months for the last twelve (12) months, maternity leave of at least two (2) weeks prior to the expected date of delivery and another four (4) weeks after normal delivery or abortion with full pay based on her regular or average weekly wages. The employer may require from any woman employee applying for maternity leave the production of a medical certificate stating that delivery will probably take place within two weeks. b. The maternity leave shall be extended without pay on account of illness medically certified to arise out of the pregnancy, delivery, abortion or miscarriage, which renders the woman unfit for work, unless she has earned unused leave credits from which such extended leave may be charged. c. The maternity leave provided in this Article shall be paid by the employer only for the first four (4) deliveries by a woman employee after the effectivity of this Code. Labor Code Art. 134 FAMILY PLANNING SERVICES; INCENTIVES FOR FAMILY PLANNING a. Establishments which are required by law to maintain a clinic or infirmary shall provide free family planning services to their employees which shall include, but not be limited to, the application or use of contraceptive pills and intrauterine devices. b. In coordination with other agencies of the government engaged in the promotion of family planning, the Department of Labor and Employment shall develop and prescribe incentive bonus schemes to encourage family planning among female workers in any establishment or enterprise. Labor Code Art. 135 DISCRIMINATION PROHIBITED.It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex. Labor Code Art. 138 CLASSIFICATION OF CERTAIN WOMEN WORKERS.Any woman who is permitted or suffered to work, with or without compensation, in any night club, cocktail lounge, massage

The following are acts of discrimination: a. Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe benefits, to a female employees as against a male employee, for work of equal value; and b. Favoring a male employee over a female employee with respect to promotion, training opportunities, study and scholarship grants solely on account of their sexes. Criminal liability for the willful commission of any unlawful act as provided in this Article or any violation of the rules and regulations issued pursuant to Section 2 hereof shall be penalized as provided in Articles 288 and 289 of this Code: Provided, That the institution of any criminal action under this provision shall not bar the aggrieved employee from filing an entirely separate and distinct action for money claims, which may include claims for damages and other affirmative reliefs. The actions hereby authorized shall proceed independently of each other. (As amended by Republic Act No. 6725, May 12, 1989) Labor Code Art. 136 STIPULATION AGAINST MARRIAGE.It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage. Labor Code Art. 137 PROHIBITED ACTS.It shall be unlawful for any employer: 1. To deny any woman employee the benefits provided for in this Chapter or to discharge any woman employed by him for the purpose of preventing her from enjoying any of the benefits provided under this Code. 2. To discharge such woman on account of her pregnancy, or while on leave or in confinement due to her pregnancy; 3. To discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant.

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clinic, bar or similar establishments under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor and Employment, shall be considered as an employee of such establishment for purposes of labor and social legislation. Omnibus Rules, Book III, Rule XII Employment of Women and Minors Sec. 1. GENERAL STATEMENT ON COVERAGE.This Rule shall apply to all employers, whether operating for profit or not, including educational, religious and charitable institutions, except to the Government and to government-owned or controlled corporations and to employers of household helpers and persons in their personal service insofar as such workers are concerned. Sec. 2. EMPLOYABLE AGE.Children below fifteen (15) years of age may be allowed to work under the direct responsibility of their parents or guardians in any non-hazardous undertaking where the work will not in any way interfere with their schooling. In such cases, the children shall not be considered as employees of the employers or their parents or guardians. Sec. 3. ELIGIBILITY FOR EMPLOYMENT.Any person of either sex, between 15 and 18 years of age, may be employed in any non-hazardous work. No employer shall discriminate against such person in regard to terms and conditions of employment on account of his age. For purposes of this Rule, a non-hazardous work or undertaking shall mean any work or activity in which the employee is not exposed to any risk which constitutes an imminent danger to his safety and health. The Secretary of Labor and Employment shall from time to time publish a list of hazardous work and activities in which persons 18 years of age and below cannot be employed. Sec. 4. STATUS OF WOMEN WORKERS IN CERTAIN WORK PLACES.Any woman who is permitted or suffered to work with or without compensation, in any night club, cocktail lounge, beer house, massage clinic, bar or similar establishments, under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor and Employment, shall be considered as an employee of such establishments for purposes of labor and social legislation. No employer shall discriminate against such employees or in any manner reduce whatever benefits they are now enjoying by reason of the provisions of this Section. Sec. 5. NIGHT WORK OF WOMEN EMPLOYEES.Any woman employed in any industrial undertaking may be allowed to work beyond 10:00 o'clock at night, or beyond 12:00 o'clock midnight in the case of women employees of commercial or non-industrial enterprises, in any of the following cases: (a) In cases of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquakes, epidemic or other disaster or calamity, to prevent loss of life or property or in cases of force majeure or imminent danger to public safety; (b) In case of urgent work to be performed on machineries, equipment or installation, to avoid serious loss which the employer would otherwise suffer; (c) Where the work is necessary to prevent serious loss of perishable goods; (d) Where the woman employee holds a responsible position of a managerial or technical nature, or where the woman employee has been engaged to provide health and welfare services; (e) Where the nature of the work requires the manual skill and dexterity of women and the same cannot be performed with equal efficiency by male workers or where the employment of women is the established practice in the enterprises concerned on the date these Rules become effective; and (f) Where the women employees are immediate members of the family operating the establishment or undertaking. The Secretary of Labor and Employment shall from time to time determine cases analogous to the foregoing for purposes of this Section. Sec. 6. AGRICULTURAL WORK.No woman, regardless of age, shall be permitted or suffered to work, with or without compensation, in any agricultural undertaking at night time unless she is given a rest period of not less than nine (9) consecutive hours, subject to the provisions of Section 5 of this Rule. Sec. 7. MATERNITY LEAVE BENEFITS.Every employer shall grant to a pregnant woman employee who has rendered an aggregate service of at least six (6) months for the last twelve (12) months immediately preceding the expected date of delivery, or the complete abortion or miscarriage, maternity leave of at least two (2) weeks before and four (4) weeks after the delivery, miscarriage or abortion, with full pay based on her regular or average weekly wages. Sec. 8. ACCREDITATION OF LEAVE CREDITS.Where the pregnant woman employee fails to avail of the two-week predelivery leave, or any portion thereof, the same shall be added to her post-delivery leave with pay.

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Sec. 9. PAYMENT OF EXTENDED MATERNITY LEAVE.When so requested by the woman employee, the extension of her maternity leave beyond the four-week post-delivery leave shall be paid by the employer from her unused vacation and/or sick leave credits, if any, or allowed without pay in the absence of such leave credits, where the extended leave is due to illness medically certified to arise out of her pregnancy, delivery, complete abortion or miscarriage which renders her unfit for work. Sec.10. LIMITATION ON LEAVE BENEFITS.The maternity benefits provided herein shall be paid by an employer only for the first four (4) deliveries, miscarriages, and/or complete abortions of the employee from March 13, 1973, regardless of the number of employees and deliveries, complete abortions or miscarriages the woman employee had before said date. For purposes of determining the entitlement of a woman employee to the maternity leave benefits as delimited herein, the total number of her deliveries, complete abortions, or miscarriages after said date shall be considered regardless of the identity or number of employers she has had at the time of such determination, provided that she enjoyed the minimum benefits therefor as provided in these regulations. Sec. 11. FAMILY PLANNING SERVICES.Employers who habitually employ more than two hundred (200) workers in any locality shall provide free family-planning services to their employees and their spouses which shall include but not limited to, the application or use of contraceptives. Subject to the approval of the Secretary of Labor and Employment, the Bureau of Women and Young Workers shall, within thirty (30) days from the effective date of these Rules, prescribe the minimum requirements of family planning services to be given by employers to their employees. Sec. 12. RELATION TO AGREEMENTS.Nothing herein shall prevent the employer and his employees or their representatives from entering into any agreement with terms more favorable to the employees than those provided herein, or be used to diminish any benefit granted to the employees under existing laws, agreements, and voluntary employer practices. Sec. 13. PROHIBITED ACTS.It shall be unlawful for any employer: (a) To discharge any woman employed by him for the purpose of preventing such woman from enjoying the maternity leave, facilities and other benefits provided under the Code; (b) To discharge such woman employee on account of her pregnancy, or while on leave or in confinement due to her pregnancy; (c) To discharge or refuse the admission of such woman upon returning to her work for fear that she may be pregnant; (d) To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to testify under the Code; and (e) To require as a condition for a continuation of employment that a woman employee shall not get married or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage. Sec. 14. FACILITIES FOR WOMAN EMPLOYEES.Subject to the approval of the Secretary of Labor and Employment, the Bureau of Women and Young Workers shall, within thirty (30) days from the effective date of these Rules, determine in an appropriate issuance the work situations for which the facilities enumerated in Article 131 of the Code shall be provided, as well as the appropriate minimum age and other standards for retirement or termination of employment in special occupations in which women are employed. R.A. 7192, An Act Promoting the Integration of Women as Full and Equal Partners of Men in Development and Nation Building and for Other Purposes. Section 1. TITLE. This Act shall be cited as the "Women in Development and Nation Building Act." Sec. 2. DECLARATION OF POLICY. The State recognizes the role of women in nation building and shall ensure the fundamental equality before the law of women and men. The State shall provided women rights and opportunities equal to that of men. To attain the foregoing policy: (1) A substantial portion of official development assistance funds received from foreign governments and multilateral agencies and organizations shall be set aside and utilized by the agencies concerned to support programs and activities for women; (2) All government departments shall ensure that women benefit equally and participate directly in the development programs and projects of said department, specifically those funded under official foreign development assistance, to ensure the full participation and involvement of women in the development process; and (3) All government departments and agencies shall review and revise all their regulations, circulars, issuances and procedures to remove gender bias therein.

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Sec. 3. RESPONSIBLE AGENCY. The National Economic and Development Authority (NEDA) shall primarily be responsible for ensuring the participation of women as recipients in foreign aid, grants and loans. It shall determine and recommend the amount to be allocated for the development activity involving women. Sec. 4. MANDATE. The NEDA, with the assistance of the National Commission on the Role of Filipino Women, shall ensure that the different government departments, including its agencies and instrumentalities which, directly or indirectly, affect the participation of women in national development and their integration therein: (1) Formulate and prioritize rural or countryside development programs or projects, provide income and employment opportunities to women in the rural areas and thus, prevent their heavy migration from rural to urban or foreign countries; (2) Include an assessment of the extent to which their programs and/or projects integrate women in the development process and of the impact of said programs or projects on women, including their implications in enhancing the self-reliance of women in improving their income; (3) Ensure the active participation of women and women's organizations in the development programs and/or projects including their involvement in the planning, design, implementation, management, monitoring and evaluation thereof; (4) Collect sex-disaggregated data and include such data in its program/project paper, proposal or strategy; (5) Ensure that programs and/or projects are designed so that the percentage of women who receive assistance is approximately proportionate to either their traditional participation in the targeted activities or their proportion of the population, whichever is higher. Otherwise, the following should be stated in the program/project paper, proposal or strategy; (a) The obstacle in achieving the goal; (b) The steps being taken to overcome those obstacles; and (c) To the extent that steps are not being taken to overcome those obstacles, why they are not being taken. (6) Assist women in activities that are of critical significance to their self-reliance and development. Sec. 5. EQUALITY IN CAPACITY TO ACT. Women of legal age, regardless of civil status, shall have the capacity to act and enter into contracts which shall in every respect be equal to that of men under similar circumstances. In all contractual situations where married men have the capacity to act, married women shall have equal rights. To this end: (1) Women shall have the capacity to borrow and obtain loans and execute security and credit arrangement under the same conditions as men; (2) Women shall have equal access to all government and private sector programs granting agricultural credit, loans and non-material resources and shall enjoy equal treatment in agrarian reform and land resettlement programs; (3) Women shall have equal rights to act as incorporators and enter into insurance contracts; and (4) Married women shall have rights equal to those of married men in applying for passport, secure visas and other travel documents, without need to secure the consent of their spouses. In all other similar contractual relations, women shall enjoy equal rights and shall have the capacity to act which shall in every respect be equal to those of men under similar circumstances. Sec. 6. EQUAL MEMBERSHIP IN CLUBS. Women shall enjoy equal access to membership in all social, civic and recreational clubs, committees, associations and similar other organizations devoted to public purpose. They shall be entitled to the same rights and privileges accorded to their spouses if they belong to the same organization. Sec. 7. ADMISSION TO MILITARY SCHOOLS. Any provision of the law to the contrary notwithstanding, consistent with the needs of the services, women shall be accorded equal opportunities for appointment, admission, training, graduation and commissioning in all military or similar schools of the Armed Forces of the Philippines and the Philippine National Police not later than the fourth academic year following the approval of this Act in accordance with the standards required for men except for those minimum essential adjustments required by physiological differences between sexes. Sec. 8. VOLUNTARY PAG-IBIG, GSIS AND SSS COVERAGE. Married persons who devote full time to managing the household and family affairs shall, upon the working spouse's consent, be entitled to voluntary Pag-IBIG (Pagtutulungan Ikaw, Bangko, Industriya at Gobyerno), Government Service Insurance System (GSIS) or Social Security System (SSS) coverage to the extent of one-half (1/2) of the salary and compensation of the working spouse. The contributions due

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thereon shall be deducted from the salary of the working spouse. The GSIS or the SSS, as the case may be, shall issue rules and regulations necessary to effectively implement the provisions of this section. Sec. 9. IMPLEMENTING RULES. The NEDA, in consultation with the different government agencies concerned, shall issue rules and regulations as may be necessary for the effective implementation of Sections 2, 3 and 4, of this Act within six (6) months from its effectivity. Sec. 10. COMPLIANCE REPORT. Within six (6) months from the effectivity of this Act and every six (6) months thereafter, all government departments, including its agencies and instrumentalities, shall submit a report to Congress on their compliance with this Act. Sec. 11. SEPARABILITY CLAUSE. If for any reason any section or provision of this Act is declared unconstitutional or invalid, the other sections or provisions hereof which are not affected thereby shall continue to be in full force and effect. Sec. 12. REPEALING CLAUSE. The provisions of Republic Act No. 386, otherwise known as the Civil Code of the Philippines, as amended, and of Executive Order No. 209, otherwise known as the Family Code of the Philippines, and all laws, decrees, executive orders, proclamations, rules and regulations, or parts thereof, inconsistent herewith are hereby repealed. Sec. 13. EFFECTIVITY CLAUSE. The rights of women and all the provisions of this Act shall take effect immediately upon its publication in the Official Gazette or in two (2) newspapers of general circulation. Approved: February 12, 1992 REPUBLIC ACT No. 7877, An Act Declaring Sexual Harassment Unlawful In The Employment, Education Or Training Environment, And For Other Purposes. Section 1. TITLE. - This Act shall be known as the "Anti-Sexual Harassment Act of 1995." Section 2. DECLARATION OF POLICY. - The State shall value the dignity of every individual, enhance the development of its human resources, guarantee full respect for human rights, and uphold the dignity of workers, employees, applicants for employment, students or those undergoing training, instruction or education. Towards this end, all forms of sexual harassment in the employment, education or training environment are hereby declared unlawful. Section 3. WORK, EDUCATION OR TRAINING -RELATED, SEXUAL HARASSMENT DEFINED. - Work, education or training-related sexual harassment is committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of said Act. (a) In a work-related or employment environment, sexual harassment is committed when: (1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued employment of said individual, or in granting said individual favorable compensation, terms of conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee; (2) The above acts would impair the employee's rights or privileges under existing labor laws; or (3) The above acts would result in an intimidating, hostile, or offensive environment for the employee. (b) In an education or training environment, sexual harassment is committed: (1) Against one who is under the care, custody or supervision of the offender; (2) Against one whose education, training, apprenticeship or tutorship is entrusted to the offender; (3) When the sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend, allowance or other benefits, privileges, or consideration; or (4) When the sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice. Any person who directs or induces another to commit any act of sexual harassment as herein defined, or who cooperates in the commission thereof by another without which it would not have been committed, shall also be held liable under this Act. Section 4. DUTY OF THE EMPLOYER OR HEAD OF OFFICE IN A WORK-RELATED, EDUCATION OR TRAINING ENVIRONMENT. It shall be the duty of the employer or the head of the workrelated, educational or training environment or institution, to

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prevent or deter the commission of acts of sexual harassment and to provide the procedures for the resolution, settlement or prosecution of acts of sexual harassment. Towards this end, the employer or head of office shall: (a) Promulgate appropriate rules and regulations in consultation with and joint1y approved by the employees or students or trainees, through their duly designated representatives, prescribing the procedure for the investigation of sexual harassment cases and the administrative sanctions therefor. Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful acts of sexual harassment. The said rules and regulations issued pursuant to this subsection (a) shall include, among others, guidelines on proper decorum in the workplace and educational or training institutions. (b) Create a committee on decorum and investigation of cases on sexual harassment. The committee shall conduct meetings, as the case may be, with officers and employees, teachers, instructors, professors, coaches, trainors, and students or trainees to increase understanding and prevent incidents of sexual harassment. It shall also conduct the investigation of alleged cases constituting sexual harassment. In the case of a work-related environment, the committee shall be composed of at least one (1) representative each from the management, the union, if any, the employees from the supervisory rank, and from the rank and file employees. In the case of the educational or training institution, the committee shall be composed of at least one (1) representative from the administration, the trainors, instructors, professors or coaches and students or trainees, as the case may be. The employer or head of office, educational or training institution shall disseminate or post a copy of this Act for the information of all concerned. Section 5. LIABILITY OF THE EMPLOYER, HEAD OF OFFICE, EDUCATIONAL OR TRAINING INSTITUTION. - The employer or head of office, educational or training institution shall be solidarily liable for damages arising from the acts of sexual harassment committed in the employment, education or training environment if the employer or head of office, educational or training institution is informed of such acts by the offended party and no immediate action is taken. Section 6. INDEPENDENT ACTION FOR DAMAGES. - Nothing in this Act shall preclude the victim of work, education or training-related sexual harassment from instituting a separate and independent action for damages and other affirmative relief. Section 7. PENALTIES. - Any person who violates the provisions of this Act shall, upon conviction, be penalized by imprisonment of not less than one (1) month nor more than six (6) months, or a fine of not less than Ten thousand pesos (P10,000) nor more than Twenty thousand pesos (P20,000), or both such fine and imprisonment at the discretion of the court. Any action arising from the violation of the provisions of this Act shall prescribe in three (3) years. Section 8. SEPARABILITY CLAUSE. - If any portion or provision of this Act is declared void or unconstitutional, the remaining portions or provisions hereof shall not be affected by such declaration. Section 9. REPEALING CLAUSE. - All laws, decrees, orders, rules and regulations, other issuances, or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. Section 10. EFFECTIVITY CLAUSE.- This Act shall take effect fifteen (15) days after its complete publication in at least two (2) national newspapers of general circulation. R.A. 9710 OF 2009, An Act Providing for the Magna Carta of Women Material provisions are cited in the succeeding portion. The full text may be viewed at: http://www.lawphil.net/statutes/repacts/ra2009/ra_9710_2 009.html Labor Code Arts. 130-131 (Provisions amended by RA 10151 referred to above) Art. 130. Nightwork prohibition. No woman, regardless of age, shall be employed or permitted or suffered to work, with or without compensation: a. In any industrial undertaking or branch thereof between ten oclock at night and six oclock in the morning of the following day; or b. In any commercial or non-industrial undertaking or branch thereof, other than agricultural, between midnight and six oclock in the morning of the following day; or c. In any agricultural undertaking at nighttime unless she is given a period of rest of not less than nine (9) consecutive hours. Art. 131. Exceptions. The prohibitions prescribed by the

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preceding Article shall not apply in any of the following cases: a. In cases of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disasters or calamity, to prevent loss of life or property, or in cases of force majeure or imminent danger to public safety; b. In case of urgent work to be performed on machineries, equipment or installation, to avoid serious loss which the employer would otherwise suffer; c. Where the work is necessary to prevent serious loss of perishable goods; d. Where the woman employee holds a responsible position of managerial or technical nature, or where the woman employee has been engaged to provide health and welfare services; e. Where the nature of the work requires the manual skill and dexterity of women workers and the same cannot be performed with equal efficiency by male workers; f. Where the women employees are immediate members of the family operating the establishment or undertaking; and g. Under other analogous cases exempted by the Secretary of Labor and Employment in appropriate regulations. 1. WOMEN UNDER THE CONSTITUTION 1987 Consti. Art. II, Sec. 14 The State recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men. 1987 Consti. Art. XIII, Sec. 14 The State shall protect working women by providing safe and healthful working conditions, taking into account their maternal functions, and such facilities and opportunities that will enhance their welfare and enable them to realize their full potential in the service of the nation. PHIL. TELEGRAPH AND TELEPHONE CO. v. NLRC FACTS: A probationary employee concealed the fact of her marriage in two reliever applications, and was subsequently dismissed for it. HELD: PT&Ts illegal and discriminatory policy drove the employee into committing the concealment, thus no bad faith can be attributed to her. RA 9710, Sec. 12 EQUAL TREATMENT BEFORE THE LAWThe State shall take steps to review and, when necessary, amend and/or repeal existing laws that are discriminatory to women within three (3) years from the effectivity of this Act. 1987 Constitution Art. II, Sec. 14 The State recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men. 4. NIGHT WORK RA 10151, An Act Allowing the Employment of Night Workers, Thereby repealing Arts. 130-131 of the Labor Code SEC. 4. A new chapter is hereby inserted after Book Three, Title III of Presidential Decree No. 442, to read as follows: Chapter V 2. COVERAGE Omnibus Rules, Book III, Rule XII, Sec. 1 GENERAL STATEMENT ON COVERAGEThis Rule shall apply to all employers, whether operating for profit or not, including educational, religious and charitable institutions, except to the Government and to government-owned or controlled corporations and to employers of household helpers and persons in their personal service insofar as such workers are concerned. 3. EQUAL TREATMENT BEFORE THE LAW RA 9710, Sec. 2 (par. 1) DECLARATION OF POLICYRecognizing that the economic, political, and sociocultural realities affect women's current condition, the State affirms the role of women in nation building and ensures the substantive equality of women and men. It shall promote empowerment of women and pursue equal opportunities for women and men and ensure equal access to resources and to development results and outcome. Further, the State realizes that equality of men and women entails the abolition of the unequal structures and practices that perpetuate discrimination and inequality. To realize this, the State shall endeavor to develop plans, policies, programs, measures, and mechanisms to address discrimination and inequality in the economic, political, social, and cultural life of women and men.

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Employment of Night Workers Art. 154. COVERAGE. This chapter shall apply to all persons, who shall be employed or permitted or suffered to work at night, except those employed in agriculture, stock raising, fishing, maritime transport and inland navigation, during a period of not less than seven (7) consecutive hours, including the interval from midnight to five oclock in the morning, to be determined by the Secretary of Labor and Employment, after consulting the workers representatives/labor organizations and employers. Night worker means any employed person whose work requires performance of a substantial number of hours of night work which exceeds a specified limit. This limit shall be fixed by the Secretary of Labor after consulting the workers representatives/labor organizations and employers. Art. 158. WOMEN NIGHT WORKERS. Measures shall be taken to ensure that an alternative to night work is available to women workers who would otherwise be called upon to perform such work: (a) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be divided between the time before and after childbirth; (b) For additional periods, in respect of which a medical certificate is produced stating that said additional periods are necessary for the health of the mother or child: (1) During pregnancy; (2) During a specified time beyond the period, after childbirth is fixed pursuant to subparagraph (a) above, the length of which shall be determined by the DOLE after consulting the labor organizations and employers. During the periods referred to in this article: (i) A woman worker shall not be dismissed or given notice of dismissal, except for just or authorized causes provided for in this Code that are not connected with pregnancy, childbirth and childcare responsibilities. (ii) A woman worker shall not lose the benefits regarding her status, seniority, and access to promotion which may attach to her regular night work position. Pregnant women and nursing mothers may he allowed t o work at night only if a competent physician, other than the company physician, shall certify their fitness to render night work, and specify, in the ease of pregnant employees, the period of the pregnancy that they can safely work. The measures referred to in this article may include transfer to day work where this is possible, the provision of social security benefits or an extension of maternity leave. The provisions of this article shall not have the effect of reducing the protection and benefits connected with maternity leave under existing laws. 5. PROHIBITED ACTS a. DISCRIMINATION Labor Code Art. 135 DISCRIMINATION PROHIBITEDIt shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex. The following are acts of discrimination: Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe benefits, to a female employees as against a male employee, for work of equal value; and Favoring a male employee over a female employee with respect to promotion, training opportunities, study and scholarship grants solely on account of their sexes. Criminal liability for the willful commission of any unlawful act as provided in this Article or any violation of the rules and regulations issued pursuant to Section 2 hereof shall be penalized as provided in Articles 288 and 289 of this Code: Provided, That the institution of any criminal action under this provision shall not bar the aggrieved employee from filing an entirely separate and distinct action for money claims, which may include claims for damages and other affirmative reliefs. The actions hereby authorized shall proceed independently of each other. (As amended by Republic Act No. 6725, May 12, 1989) RA 9710, Sec. 2 (par. 2) DECLARATION OF POLICYThe State condemns discrimination against women in all its forms and pursues by all appropriate means and without delay the policy of eliminating discrimination against women in keeping with the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and other international instruments consistent with Philippine law. The State shall accord women the rights, protection, and opportunities available to every member of society.

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RA 9710, Sec. 12 EQUAL TREATMENT BEFORE THE LAWThe State shall take steps to review and, when necessary, amend and/or repeal existing laws that are discriminatory to women within three (3) years from the effectivity of this Act. b. STIPULATION AGAINST MARRIAGE Labor Code Art. 136 STIPULATION AGAINST MARRIAGEIt shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage. DUNCAN ASSOCIATION OF DETAILMAN-PTGWO v. GLAXO WELLCOME FACTS A Glaxo Wellcome employee fell in love and married an employee of competitor Astra. HELD Glaxo Wellcomes directive to have either the wife or husband resign from his or her job is a valid management prerogative to protect trade secrets, manufacturing formulas, sales strategies, etc. c. DISCHARGE TO PREVENT ENJOYMENT OF BENEFITS Labor Code Art. 137 (1) PROHIBITED ACTSIt shall be unlawful for any employer: (1) To deny any woman employee the benefits provided for in this Chapter or to discharge any woman employed by him for the purpose of preventing her from enjoying any of the benefits provided under this Code. d. DISCHARGE ON ACCOUNT OF PREGNANCY Labor Code Art. 137 (2 -3) PROHIBITED ACTSIt shall be unlawful for any employer: (2) To discharge such woman on account of her pregnancy, or while on leave or in confinement due to her pregnancy; (3) To discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant. RA 9710, Sec. 13 (c) EQUAL ACCESS AND ELIMINATION OF DISCRIMINATION IN EDUCATION, SCHOLARSHIPS AND TRAINING. (c) Expulsion and non-readmission of women faculty due to pregnancy outside of marriage shall be outlawed. No school shall turn out or refuse admission to a female student solely on the account of her having contracted pregnancy outside of marriage during her term in school. e. DISCHARGE ON ACCOUNT OF TESTIMONY Omnibus Rules, Book III, Rule XII, Sec. 13 (d) PROHIBITED ACTS.It shall be unlawful for any employer: (d) To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to testify under the Code; f. EXPULSION OF WOMEN FACULTY/FEMALE STUDENT DUE TO PREGNANCY OUTSIDE OF MARRIAGE Omnibus Rules Book III, Rule XII, Sec. 13 (c) PROHIBITED ACTS.It shall be unlawful for any employer: (c) To discharge or refuse the admission of such woman upon returning to her work for fear that she may be pregnant; 6. FACILITIES Labor Code Art. 132 FACILITIES FOR WOMENThe Secretary of Labor and Employment shall establish standards that will ensure the safety and health of women employees. In appropriate cases, he shall, by regulations, require any employer to: (1) Provide seats proper for women and permit them to use such seats when they are free from work and during working hours, provided they can perform their duties in this position without detriment to efficiency; (2) To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women; (3) To establish a nursery in a workplace for the benefit of the women employees therein; and

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(4) To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those of flight attendants and the like. Labor Code Art. 134 FAMILY PLANNING SERVICES; INCENTIVES FOR FAMILY PLANNINGEstablishments which are required by law to maintain a clinic or infirmary shall provide free family planning services to their employees which shall include, but not be limited to, the application or use of contraceptive pills and intrauterine devices. In coordination with other agencies of the government engaged in the promotion of family planning, the Department of Labor and Employment shall develop and prescribe incentive bonus schemes to encourage family planning among female workers in any establishment or enterprise. Omnibus Rules, Book III, Rule XII, Sec. 11 FAMILY PLANNING SERVICES. Establishments which are required by law to maintain a clinic or infirmary shall provide free family planning services to their employees which shall include, but not be limited to, the application or use of contraceptive pills and intrauterine devices. In coordination with other agencies of the government engaged in the promotion of family planning, the Department of Labor and Employment shall develop and prescribe incentive bonus schemes to encourage family planning among female workers in any establishment or enterprise. 7. SPECIAL WOMEN WORKERS a. DEFINITION Labor Code Art. 138 RA 7877, Anti-Sexual Harassment Act, Sec. 3 CLASSIFICATION OF CERTAIN WOMEN WORKERSAny woman who is permitted or suffered to work, with or without compensation, in any night club, cocktail lounge, massage clinic, bar or similar establishments under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor and Employment, shall be considered as an employee of such establishment for purposes of labor and social legislation. 8. MATERNITY LEAVE RA 8282, Social Security Act of 1997, Sec. 14-A (a) A member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of sickness or injury and is confined therefor for more than three (3) days in a hospital or WORK, EDUCATION OR TRAINING-RELATED, SEXUAL HARASSMENT DEFINED.Work, education or trainingrelated sexual harassment is committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of said act. a) In a work-related or employment environment, sexual harassment is committed when: (1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued employment elsewhere with the approval of the SSS, shall, for each day of compensable confinement or a fraction thereof, be paid by his employer, or the SSS, if such person is unemployed or selfemployed, a daily sickness benefit equivalent to ninety percent (90%) of his average daily salary credit, subject to the following conditions: (1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year, nor shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this section be carried forward and added to the total number of compensable days allowable in the subsequent year; (2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same confinement; and (3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days after the start of his confinement unless such confinement is in a hospital or the employee became sick or was injured while working or within the premises of the employer in which case, notification to the employer is necessary: Provided, That if the member is unemployed or self-employed, he shall directly notify the SSS of his confinement within five (5) calendar days after the start thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided, further, That in cases where notification is necessary, the confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of notification. 9. SEXUAL HARASSMENT

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of said individual, or in granting said individual favorable compensation, terms of conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee; (2) The above acts would impair the employee's rights or privileges under existing labor laws; or (3) The above acts would result in an intimidating, hostile, or offensive environment for the employee. (b) In an education or training environment, sexual harassment is committed: (1) Against one who is under the care, custody or supervision of the offender; (2) Against one whose education, training, apprenticeship or tutorship is entrusted to the offender; (3) When the sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend, allowance or other benefits, privileges, or consideration; or (4) When the sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice. Any person who directs or induces another to commit any act of sexual harassment as herein defined, or who cooperates in the commission thereof by another without which it would not have been committed, shall also be held liable under this Act. b. WHEN COMMITTED IN A WORKRELATED/EMPLOYMENT ENVIRONMENT RA 7877, Anti-Sexual Harassment Act, Sec. 3(a) WORK, EDUCATION OR TRAINING-RELATED, SEXUAL HARASSMENT DEFINED.Work, education or trainingrelated sexual harassment is committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the object of said act. a) In a work-related or employment environment, sexual harassment is committed when: (1) The sexual favor is made as a condition in the hiring or in the employment, re-employment or continued employment of said individual, or in granting said individual favorable compensation, terms of conditions, promotions, or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which in any way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said employee; (2) The above acts would impair the employee's rights or privileges under existing labor laws; or (3) The above acts would result in an intimidating, hostile, or offensive environment for the employee. (b) In an education or training environment, sexual harassment is committed: (1) Against one who is under the care, custody or supervision of the offender; (2) Against one whose education, training, apprenticeship or tutorship is entrusted to the offender; (3) When the sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend, allowance or other benefits, privileges, or consideration; or (4) When the sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice. Any person who directs or induces another to commit any act of sexual harassment as herein defined, or who cooperates in the commission thereof by another without which it would not have been committed, shall also be held liable under this Act. c. DUTY OF THE EMPLOYER RA 7877, Sec. 4 DUTY OF THE EMPLOYER OR HEAD OF OFFICE IN A WORKRELATED, EDUCATION OR TRAINING ENVIRONMENTIt shall be the duty of the employer or the head of the work-related, educational or training environment or institution, to prevent or deter the commission of acts of sexual harassment and to provide the procedures for the resolution, settlement or prosecution of acts of sexual harassment. Towards this end, the employer or head of office shall: (a) Promulgate appropriate rules and regulations in consultation with and joint1y approved by the employees or students or trainees, through their duly designated representatives, prescribing the procedure for the

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investigation of sexual harassment cases and the administrative sanctions therefor. Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful acts of sexual harassment. The said rules and regulations issued pursuant to this subsection (a) shall include, among others, guidelines on proper decorum in the workplace and educational or training institutions. (b) Create a committee on decorum and investigation of cases on sexual harassment. The committee shall conduct meetings, as the case may be, with officers and employees, teachers, instructors, professors, coaches, trainors, and students or trainees to increase understanding and prevent incidents of sexual harassment. It shall also conduct the investigation of alleged cases constituting sexual harassment. In the case of a work-related environment, the committee shall be composed of at least one (1) representative each from the management, the union, if any, the employees from the supervisory rank, and from the rank and file employees. In the case of the educational or training institution, the committee shall be composed of at least one (1) representative from the administration, the trainors, instructors, professors or coaches and students or trainees, as the case may be. The employer or head of office, educational or training institution shall disseminate or post a copy of this Act for the information of all concerned. PHIL. AEOLUS AUTOMOTIVE UNITED CORP. v. NLRC FACTS Several violations of company rules were imputed to a female employee of Phil. Aeolus, including her throwing of a stapler at her superior. HELD The throwing incident was an offshoot of four years worth of sexual harassment directed at the employee, and the fact that it took her a long time to complain shouldn't be taken against her; instead, she should be lauded for it. LIBRES v. NLRC FACTS Engr. Libres was accused of sexual harassment by his companys vice presidents secretary. HELD A finding of sexual harassment is not precluded by the fact that RA 7877 did not yet exist at the time the act complained of was committed.

B.CHILDREN SUMMARY: A child is any person below 18 years old. The best interests of children shall be the paramount consideration in all actions concerning them. Children cannot be employed until they are 15 years old, except when: the child works directly under the sole responsibility of his or her parents/legal guardian in an establishment/capacity where only the latter are employed; the child's participation in public entertainment or information is essential.

In the first case, the parent/legal guardian must provide the child's primary and/or secondary education. In the second case, the employment contract must be undertaken by the child's parents/legal guardian, and if possible, with the child's express agreement. Such employment contract must also be approved by the DOLE. The employer must secure a work permit for the child employee-to-be as well. The validity of a child's work permit cannot exceed a year. In case of public entertainment or information, an employer intending to hire spot extras (or those being cast outright on the day of the filming or taping), must file a notice with the Regional Office that it will undertake activities involving child work. The requirements for issuance of a child's working permit are therefore not applicable. A working child is any worker:

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in work/economic activity that is not child labor, and is below 18 years old; below 15 years old, working under the direct responsibility of his/her parents/guardians where the latter are the only ones employed, or in public entertainment or information.

A working child may work up to: Below 15 years: 20 hours max per week, not more than four hours per day; and not from 8PM-6AM 15 years old, but below 18: 8 hours a day/40 hours a week max; and not from 10PM-6AM

All of a working child's income shall belong to him in ownership and shall be set aside primarily for his/her support, education or skills acquisition and secondarily (up to 20%), may be used for his/her family's collective needs. Such income shall be under both parents' administration. If one parent is incapacitated, the other shall administer. But if both are absent or incapacitated, the order of preference on parental authority in the Family Code are applicable: surviving grandparent; in case several survive, the one designated by the court taking into account all relevant considerations, especially the choice of the child over seven years of age, unless the grandparent chosen is unfit; oldest brother or sister, over 21 years of age, unless unfit or disqualified; and actual custodian over 21 years of age, unless unfit or disqualified.

If the child earns at least P200,000 annually, his/her parents or other legal guardian shall set up a trust fund for at least 30% of the child's earnings, which is subject to a semi-annual accounting with the DOLE. The child gains full control of this trust fund upon reaching 18 years of age. Employers must provide working children with access to at least primary and secondary education. Child labor is any work or economic activity that subjects a child to exploitation, or a condition harmful to his/her health & safety or physical, mental or psychosocial development. Prohibition on child labor (Department Order 65-04) Worst Forms of Child Labor: slavery under the Anti-Trafficking in Persons Act of 2003, and other similar practices prostitution, pornography, pornographic performances illegal or illicit activities, including those related to dangerous drugs work hazardous/harmful to the health, safety and morals of children debases child's intrinsic worth and dignity as a human being exposes child to physical, emotional, sexual, psychological, moral abuse performed underground/ underwater/at dangerous heights involves dangerous equipment exposes child to physical danger, or requires manual transport of heavy load performed in unhealthy environments performed under difficult conditions exposes child to harmful biological agents involves explosives and other pyrotechnic products

The imposable penalty for all forms of child slavery, prostitution or pornography are those provided in RA 9208 or the AntiTrafficking in Persons Act of 2003. Offenses relating to the production and trafficking of dangerous drugs and prohibited volatile substances shall be penalized according to RA 9165 or the Comprehensive Dangerous Drugs Act. Upon a finding that a business, firm or establishment had committed violations of RA 9231 for more than three times, the Secretary of Labor or the Regional Director may order its closure.

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In case of a first violation, the Regional Director shall issue a compliance order for immediate restitution and correction of the violation. Failure to comply constitutes a second violation. In case of a second violation, another compliance order shall be issued, and the employer shall be prohibited from hiring a child for six months. Failure to comply constitutes a third violation. In case of a third violation, another compliance order shall be issued. Failure to comply will constitute a fourth violation justifying closure of the establishment.

Prior notice and hearing (which is summary) are required before the issuance of a Closure Order. But no such prior notice and hearing are required if: the violation has resulted in the death, insanity or serious physical injury of a child employed therein a child is employed therein for prostitution or obscene or lewd shows there is imminent danger to the life and limb of the child

Such immediate closure shall be enforced within five days from the Regional Director's receipt of the complaint or petition for closure and relevant documentary evidence. While the participation of the DOLE in a rescue operation is encouraged, the Regional Office may initiate closure proceedings even without a prior rescue operation, or without the presence of DOLE personnel. If a complaint or petition for closure is filed after a rescue operation has been conducted without the presence of DOLE personnel, the Regional Director shall take cognizance of the complaint/petition. Children below 18 cannot appear in advertisements directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling, violence or pornography. Family courts have jurisdiction in matters relating to child labor. If upon preliminary investigation a prima facie case is established, the information must be filed in court within 48 hours from the end of such P.I. Trial must be terminated within 90 days.

____________________________________________________________________________________________________________ B. CHILDREN Labor Code Art. 139 MINIMUM EMPLOYABLE AGE a. No child below fifteen (15) years of age shall be employed, except when he works directly under the sole responsibility of his parents or guardian, and his employment does not in any way interfere with his schooling. b. Any person between fifteen (15) and eighteen (18) years of age may be employed for such number of hours and such periods of the day as determined by the Secretary of Labor and Employment in appropriate regulations. c. The foregoing provisions shall in no case allow the employment of a person below eighteen (18) years of age in an undertaking which is hazardous or deleterious in nature as determined by the Secretary of Labor and Employment. Labor Code Art. 140 PROHIBITION AGAINST CHILD DISCRIMINATION No employer shall discriminate against any person in respect to terms and conditions of employment on account of his age. Omnibus Rules, Book III, Rule XII, Secs. 2-3 Sec. 2. EMPLOYABLE AGE.Children below fifteen (15) years of age may be allowed to work under the direct responsibility of their parents or guardians in any non-hazardous undertaking where the work will not in any way interfere with their schooling. In such cases, the children shall not be considered as employees of the employers or their parents or guardians. Sec. 3. ELIGIBILITY FOR EMPLOYMENT.Any person of either sex, between 15 and 18 years of age, may be employed in any non-hazardous work. No employer shall discriminate against such person in regard to terms and conditions of employment on account of his age.

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For purposes of this Rule, a non-hazardous work or undertaking shall mean any work or activity in which the employee is not exposed to any risk which constitutes an imminent danger to his safety and health. The Secretary of Labor and Employment shall from time to time publish a list of hazardous work and activities in which persons 18 years of age and below cannot be employed. RA 7658, An Act Prohibiting the Employment of Children Below 15 years of age in Public and Private Undertakings, Amending for this purpose Section 12, Article VIII of RA 7610 Sec. 1. Section 12, Article VIII of R.A. No. 7610 otherwise known as the "Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act" is hereby amended to read as follows: "Sec. 12. EMPLOYMENT OF CHILDREN.- Children below fifteen (15) years of age shall not be employed except: 1. When a child works directly under the sole responsibility of his parents or legal guardian and where only members of the employer's family are employed: Provided, however, That his employment neither endangers his life, safety, health and morals, nor impairs his normal development; Provided, further, That the parent or legal guardian shall provide the said minor child with the prescribed primary and/or secondary education; or 2. Where a child's employment or participation in public entertainment or information through cinema, theater, radio or television is essential: Provided, The employment contract is concluded by the child's parents or legal guardian, with the express agreement of the child concerned, if possible, and the approval of the Department of Labor and Employment: and Provided, That the following requirements in all instances are strictly complied with: a. The employer shall ensure the protection, health, safety, morals and normal development of the child; b. The employer shall institute measures to prevent the child's exploitation or discrimination taking into account the system and level of remuneration, and the duration and arrangement of working time; and c. The employer shall formulate and implement, subject to the approval and supervision of competent authorities, a continuing program for training and skills acquisition of the requirements. In the above exceptional cases where any such child may be employed, the employer shall first secure, before engaging such child, a work permit from the Department of Labor and Employment which shall ensure observance of the child. The Department of Labor and Employment shall promulgate rules and regulations necessary for the effective implementation of this Section." Sec. 2. All laws, decrees, executive orders, rules and regulations or parts thereof contrary to, or inconsistent with this Act are hereby modified or repealed accordingly. Sec. 3. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers or general circulation whichever comes earlier. Approved: November 9, 1993 RA 7610 of 1992, An Act Providing for Stronger Deterrence and Special Protection against Child Abuse, Exploitation and for Other Purposes ARTICLE I: Title, Policy, Principles and Definitions of Terms Section 1. TITLE. This Act shall be known as the "Special Protection of Children Against Abuse, Exploitation and Discrimination Act." Section 2. DECLARATION OF STATE POLICY AND PRINCIPLES. It is hereby declared to be the policy of the State to provide special protection to children from all firms of abuse, neglect, cruelty exploitation and discrimination and other conditions, prejudicial their development; provide sanctions for their commission and carry out a program for prevention and deterrence of and crisis intervention in situations of child abuse, exploitation and discrimination. The State shall intervene on behalf of the child when the parent, guardian, teacher or person having care or custody of the child fails or is unable to protect the child against abuse, exploitation and discrimination or when such acts against the child are committed by the said parent, guardian, teacher or person having care and custody of the same. It shall be the policy of the State to protect and rehabilitate children gravely threatened or endangered by circumstances which affect or will affect their survival and normal development and over which they have no control. The best interests of children shall be the paramount consideration in all actions concerning them, whether undertaken by public or private social welfare institutions, courts of law, administrative authorities, and legislative bodies, consistent with the principle of First Call for Children as enunciated in the United Nations Convention of the Rights of the Child. Every effort shall be exerted to promote the welfare of children and enhance their opportunities for a useful and happy life. Section 3. DEFINITION OF TERMS.

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(a) "Children" refers to person below eighteen (18) years of age or those over but are unable to fully take care of themselves or protect themselves from abuse, neglect, cruelty, exploitation or discrimination because of a physical or mental disability or condition; (b) "Child abuse" refers to the maltreatment, whether habitual or not, of the child which includes any of the following: (1) Psychological and physical abuse, neglect, cruelty, sexual abuse and emotional maltreatment; (2) Any act by deeds or words which debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; (3) Unreasonable deprivation of his basic needs for survival, such as food and shelter; or (4) Failure to immediately give medical treatment to an injured child resulting in serious impairment of his growth and development or in his permanent incapacity or death. (c) "Circumstances which gravely threaten or endanger the survival and normal development of children" include, but are not limited to, the following; (1) Being in a community where there is armed conflict or being affected by armed conflict-related activities; (2) Working under conditions hazardous to life, safety and normal which unduly interfere with their normal development; (3) Living in or fending for themselves in the streets of urban or rural areas without the care of parents or a guardian or basic services needed for a good quality of life; (4) Being a member of a indigenous cultural community and/or living under conditions of extreme poverty or in an area which is underdeveloped and/or lacks or has inadequate access to basic services needed for a good quality of life; (5) Being a victim of a man-made or natural disaster or calamity; or (6) Circumstances analogous to those abovestated which endanger the life, safety or normal development of children. (d) "Comprehensive program against child abuse, exploitation and discrimination" refers to the coordinated program of services and facilities to protected children against: (1) Child Prostitution and other sexual abuse; (2) Child trafficking; (3) Obscene publications and indecent shows; (4) Other acts of abuses; and (5) Circumstances which threaten or endanger the survival and normal development of children. ARTICLE II:Program on Child Abuse, Exploitation and Discrimination Section 4. FORMULATION OF THE PROGRAM. There shall be a comprehensive program to be formulated, by the Department of Justice and the Department of Social Welfare and Development in coordination with other government agencies and private sector concerned, within one (1) year from the effectivity of this Act, to protect children against child prostitution and other sexual abuse; child trafficking, obscene publications and indecent shows; other acts of abuse; and circumstances which endanger child survival and normal development. ARTICLE III: Child Prostitution and Other Sexual Abuse Section 5. CHILD PROSTITUTION AND OTHER SEXUAL ABUSE. Children, whether male or female, who for money, profit, or any other consideration or due to the coercion or influence of any adult, syndicate or group, indulge in sexual intercourse or lascivious conduct, are deemed to be children exploited in prostitution and other sexual abuse. The penalty of reclusion temporal in its medium period to reclusion perpetua shall be imposed upon the following: (a) Those who engage in or promote, facilitate or induce child prostitution which include, but are not limited to, the following: (1) Acting as a procurer of a child prostitute; (2) Inducing a person to be a client of a child prostitute by means of written or oral advertisements or other similar means; (3) Taking advantage of influence or relationship to procure a child as prostitute; (4) Threatening or using violence towards a child to engage him as a prostitute; or (5) Giving monetary consideration goods or other pecuniary benefit to a child with intent to engage such child in prostitution. (b) Those who commit the act of sexual intercourse of lascivious conduct with a child exploited in prostitution or subject to other sexual abuse; Provided, That when the

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victims is under twelve (12) years of age, the perpetrators shall be prosecuted under Article 335, paragraph 3, for rape and Article 336 of Act No. 3815, as amended, the Revised Penal Code, for rape or lascivious conduct, as the case may be: Provided, That the penalty for lascivious conduct when the victim is under twelve (12) years of age shall be reclusion temporal in its medium period; and (c) Those who derive profit or advantage therefrom, whether as manager or owner of the establishment where the prostitution takes place, or of the sauna, disco, bar, resort, place of entertainment or establishment serving as a cover or which engages in prostitution in addition to the activity for which the license has been issued to said establishment. Section 6. ATTEMPT TO COMMIT CHILD PROSTITUTION. There is an attempt to commit child prostitution under Section 5, paragraph (a) hereof when any person who, not being a relative of a child, is found alone with the said child inside the room or cubicle of a house, an inn, hotel, motel, pension house, apartelle or other similar establishments, vessel, vehicle or any other hidden or secluded area under circumstances which would lead a reasonable person to believe that the child is about to be exploited in prostitution and other sexual abuse. There is also an attempt to commit child prostitution, under paragraph (b) of Section 5 hereof when any person is receiving services from a child in a sauna parlor or bath, massage clinic, health club and other similar establishments. A penalty lower by two (2) degrees than that prescribed for the consummated felony under Section 5 hereof shall be imposed upon the principals of the attempt to commit the crime of child prostitution under this Act, or, in the proper case, under the Revised Penal Code. ARTICLE IV: Child Trafficking Section 7. CHILD TRAFFICKING. Any person who shall engage in trading and dealing with children including, but not limited to, the act of buying and selling of a child for money, or for any other consideration, or barter, shall suffer the penalty of reclusion temporal to reclusion perpetua. The penalty shall be imposed in its maximum period when the victim is under twelve (12) years of age. Section 8. ATTEMPT TO COMMIT CHILD TRAFFICKING. There is an attempt to commit child trafficking under Section 7 of this Act: (a) When a child travels alone to a foreign country without valid reason therefor and without clearance issued by the Department of Social Welfare and Development or written permit or justification from the child's parents or legal guardian; (b) When a pregnant mother executes an affidavit of consent for adoption for a consideration (c) When a person, agency, establishment or child-caring institution recruits women or couples to bear children for the purpose of child trafficking; or (d) When a doctor, hospital or clinic official or employee, nurse, midwife, local civil registrar or any other person simulates birth for the purpose of child trafficking; or (e) When a person engages in the act of finding children among low-income families, hospitals, clinics, nurseries, daycare centers, or other child-during institutions who can be offered for the purpose of child trafficking. A penalty lower two (2) degrees than that prescribed for the consummated felony under Section 7 hereof shall be imposed upon the principals of the attempt to commit child trafficking under this Act. ARTICLE V:Obscene Publications and Indecent Shows Section 9. OBSCENE PUBLICATIONS AND INDECENT SHOWS. Any person who shall hire, employ, use, persuade, induce or coerce a child to perform in obscene exhibitions and indecent shows, whether live or in video, or model in obscene publications or pornographic materials or to sell or distribute the said materials shall suffer the penalty of prision mayor in its medium period. If the child used as a performer, subject or seller/distributor is below twelve (12) years of age, the penalty shall be imposed in its maximum period. Any ascendant, guardian, or person entrusted in any capacity with the care of a child who shall cause and/or allow such child to be employed or to participate in an obscene play, scene, act, movie or show or in any other acts covered by this section shall suffer the penalty of prision mayor in its medium period. ARTICLE VI: Other Acts of Abuse Section 10. OTHER ACTS OF NEGLECT, ABUSE, CRUELTY OR EXPLITATION AND OTHER CONDITIONS PREJUDICIAL TO THE CHILDS DEVELOPMENT. (a) Any person who shall commit any other acts of child abuse, cruelty or exploitation or to be responsible for other conditions prejudicial to the child's development including those covered by Article 59 of Presidential Decree No. 603, as amended, but not covered by the Revised Penal Code, as amended, shall suffer the penalty of prision mayor in its minimum period. (b) Any person who shall keep or have in his company a

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minor, twelve (12) years or under or who in ten (10) years or more his junior in any public or private place, hotel, motel, beer joint, discotheque, cabaret, pension house, sauna or massage parlor, beach and/or other tourist resort or similar places shall suffer the penalty of prision mayor in its maximum period and a fine of not less than Fifty thousand pesos (P50,000): Provided, That this provision shall not apply to any person who is related within the fourth degree of consanguinity or affinity or any bond recognized by law, local custom and tradition or acts in the performance of a social, moral or legal duty. (c) Any person who shall induce, deliver or offer a minor to any one prohibited by this Act to keep or have in his company a minor as provided in the preceding paragraph shall suffer the penalty of prision mayor in its medium period and a fine of not less than Forty thousand pesos (P40,000); Provided, however, That should the perpetrator be an ascendant, stepparent or guardian of the minor, the penalty to be imposed shall be prision mayor in its maximum period, a fine of not less than Fifty thousand pesos (P50,000), and the loss of parental authority over the minor. (d) Any person, owner, manager or one entrusted with the operation of any public or private place of accommodation, whether for occupancy, food, drink or otherwise, including residential places, who allows any person to take along with him to such place or places any minor herein described shall be imposed a penalty of prision mayor in its medium period and a fine of not less than Fifty thousand pesos (P50,000), and the loss of the license to operate such a place or establishment. (e) Any person who shall use, coerce, force or intimidate a street child or any other child to; (1) Beg or use begging as a means of living; (2) Act as conduit or middlemen in drug trafficking or pushing; or (3) Conduct any illegal activities, shall suffer the penalty of prision correccional in its medium period to reclusion perpetua. For purposes of this Act, the penalty for the commission of acts punishable under Articles 248, 249, 262, paragraph 2, and 263, paragraph 1 of Act No. 3815, as amended, the Revised Penal Code, for the crimes of murder, homicide, other intentional mutilation, and serious physical injuries, respectively, shall be reclusion perpetua when the victim is under twelve (12) years of age. The penalty for the commission of acts punishable under Article 337, 339, 340 and 341 of Act No. 3815, as amended, the Revised Penal Code, for the crimes of qualified seduction, acts of lasciviousness with the consent of the offended party, corruption of minors, and white slave trade, respectively, shall be one (1) degree higher than that imposed by law when the victim is under twelve (12) years age. The victim of the acts committed under this section shall be entrusted to the care of the Department of Social Welfare and Development. ARTICLE VII: Sanctions for Establishments or Enterprises Section 11. SANCTIONS OF ESTABLISHMENTS OR ENTERPRISES WHICH PROMOTE, FACILITATE OR CONDUCT ACTIVITIES CONSTITUTING CHILD PROSTITUTION AND OTHER SEXUAL ABUSE, CHILD TRAFFICKING, OBSCENE PUBLICATIONS AND INDECENT SHOWS, AND OTHER ACTS OF ABUSE. All establishments and enterprises which promote or facilitate child prostitution and other sexual abuse, child trafficking, obscene publications and indecent shows, and other acts of abuse shall be immediately closed and their authority or license to operate cancelled, without prejudice to the owner or manager thereof being prosecuted under this Act and/or the Revised Penal Code, as amended, or special laws. A sign with the words "off limits" shall be conspicuously displayed outside the establishments or enterprises by the Department of Social Welfare and Development for such period which shall not be less than one (1) year, as the Department may determine. The unauthorized removal of such sign shall be punishable by prision correccional. An establishment shall be deemed to promote or facilitate child prostitution and other sexual abuse, child trafficking, obscene publications and indecent shows, and other acts of abuse if the acts constituting the same occur in the premises of said establishment under this Act or in violation of the Revised Penal Code, as amended. An enterprise such as a sauna, travel agency, or recruitment agency which: promotes the aforementioned acts as part of a tour for foreign tourists; exhibits children in a lewd or indecent show; provides child masseurs for adults of the same or opposite sex and said services include any lascivious conduct with the customers; or solicits children or activities constituting the aforementioned acts shall be deemed to have committed the acts penalized herein. ARTICLE VIIIWorking Children Section 12. EMPLOYMENT OF CHILDREN. Children below fifteen (15) years of age may be employed except: (1) When a child works directly under the sole responsibility of his parents or legal guardian and where only members of the employer's family are employed: Provided, however, That his employment neither endangers his life, safety and health and morals, nor impairs his normal development: Provided, further, That the parent or legal guardian shall provide the said minor child with the prescribed primary and/or

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secondary education; or (2) When a child's employment or participation in public & entertainment or information through cinema, theater, radio or television is essential: Provided, The employment contract concluded by the child's parent or guardian, with the express agreement of the child concerned, if possible, and the approval of the Department of Labor and Employment: Provided, That the following requirements in all instances are strictly complied with: (a) The employer shall ensure the protection, health, safety and morals of the child; (b) the employer shall institute measures to prevent the child's exploitation or discrimination taking into account the system and level of remuneration, and the duration and arrangement of working time; and; (c) The employer shall formulate and implement, subject to the approval and supervision of competent authorities, a continuing program for training and skill acquisition of the child. In the above exceptional cases where any such child may be employed, the employer shall first secure, before engaging such child, a work permit from the Department of Labor and Employment which shall ensure observance of the above requirement. The Department of Labor Employment shall promulgate rules and regulations necessary for the effective implementation of this Section. Section 13. NON-FORMAL EDUCATION FOR WORKING CHILDREN. The Department of Education, Culture and Sports shall promulgate a course design under its non-formal education program aimed at promoting the intellectual, moral and vocational efficiency of working children who have not undergone or finished elementary or secondary education. Such course design shall integrate the learning process deemed most effective under given circumstances. Section 14. PROHIBITION ON THE EMPLOYMENT OF CHILDREN IN CERTAIN ADVERTISEMENTS. No person shall employ child models in all commercials or advertisements promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts and violence. Section 15. DUTY OF EMPLOYER. Every employer shall comply with the duties provided for in Articles 108 and 109 of Presidential Decree No. 603. Section 16. PENALTIES. Any person who shall violate any provision of this Article shall suffer the penalty of a fine of not less than One thousand pesos (P1,000) but not more than Ten thousand pesos (P10,000) or imprisonment of not less than three (3) months but not more than three (3) years, or both at the discretion of the court; Provided, That, in case of repeated violations of the provisions of this Article, the offender's license to operate shall be revoked. ARTICLE IX:Children of Indigenous Cultural Communities Section 17. SURVIVAL, PROTECTION AND DEVELOPMENT. In addition to the rights guaranteed to children under this Act and other existing laws, children of indigenous cultural communities shall be entitled to protection, survival and development consistent with the customs and traditions of their respective communities. Section 18. SYSTEM OF AND ACCESS TO EDUCATION. The Department of Education, Culture and Sports shall develop and institute an alternative system of education for children of indigenous cultural communities which culture-specific and relevant to the needs of and the existing situation in their communities. The Department of Education, Culture and Sports shall also accredit and support non-formal but functional indigenous educational programs conducted by non-government organizations in said communities. Section 19. HEALTH AND NUTRITION. The delivery of basic social services in health and nutrition to children of indigenous cultural communities shall be given priority by all government agencies concerned. Hospitals and other health institution shall ensure that children of indigenous cultural communities are given equal attention. In the provision of health and nutrition services to children of indigenous cultural communities, indigenous health practices shall be respected and recognized. Section 20. DISCRIMINATION. Children of indigenous cultural communities shall not be subjected to any and all forms of discrimination. Any person who discriminate against children of indigenous cultural communities shall suffer a penalty of arresto mayor in its maximum period and a fine of not less than Five thousand pesos (P5,000) more than Ten thousand pesos (P10,000). Section 21. PARTICIPATION. Indigenous cultural communities, through their duly-designated or appointed representatives shall be involved in planning, decision-making implementation, and evaluation of all government programs affecting children of indigenous cultural communities. Indigenous institution shall also be recognized and respected. ARTICLE X: Children in Situations of Armed Conflict Section 22. CHILDREN AS ZONES OF PEACE. Children are hereby declared as Zones of Peace. It shall be the responsibility of the State and all other sectors concerned to

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resolve armed conflicts in order to promote the goal of children as zones of peace. To attain this objective, the following policies shall be observed. (a) Children shall not be the object of attack and shall be entitled to special respect. They shall be protected from any form of threat, assault, torture or other cruel, inhumane or degrading treatment; (b) Children shall not be recruited to become members of the Armed Forces of the Philippines of its civilian units or other armed groups, nor be allowed to take part in the fighting, or used as guides, couriers, or spies; (c) Delivery of basic social services such as education, primary health and emergency relief services shall be kept unhampered; (d) The safety and protection of those who provide services including those involved in fact-finding missions from both government and non-government institutions shall be ensured. They shall not be subjected to undue harassment in the performance of their work; (e) Public infrastructure such as schools, hospitals and rural health units shall not be utilized for military purposes such as command posts, barracks, detachments, and supply depots; and (f) All appropriate steps shall be taken to facilitate the reunion of families temporarily separated due to armed conflict. Section 23. EVACUATION OF CHILDREN DURING ARMED CONFLICT. Children shall be given priority during evacuation as a result of armed conflict. Existing community organizations shall be tapped to look after the safety and well-being of children during evacuation operations. Measures shall be taken to ensure that children evacuated are accompanied by persons responsible for their safety and well-being. Section 24. FAMILY LIFE AND TEMPORARY SHELTER. Whenever possible, members of the same family shall be housed in the same premises and given separate accommodation from other evacuees and provided with facilities to lead a normal family life. In places of temporary shelter, expectant and nursing mothers and children shall be given additional food in proportion to their physiological needs. Whenever feasible, children shall be given opportunities for physical exercise, sports and outdoor games. Section 25. RIGHTS OF CHILDREN ARRESTED FOR REASONS RELATED TO ARMED CONFLICT. Any child who has been arrested for reasons related to armed conflict, either as combatant, courier, guide or spy is entitled to the following rights; (a) Separate detention from adults except where families are accommodated as family units; (b) Immediate free legal assistance; (c) Immediate notice of such arrest to the parents or guardians of the child; and (d) Release of the child on recognizance within twenty-four (24) hours to the custody of the Department of Social Welfare and Development or any responsible member of the community as determined by the court. If after hearing the evidence in the proper proceedings the court should find that the aforesaid child committed the acts charged against him, the court shall determine the imposable penalty, including any civil liability chargeable against him. However, instead of pronouncing judgment of conviction, the court shall suspend all further proceedings and shall commit such child to the custody or care of the Department of Social Welfare and Development or to any training institution operated by the Government, or duly-licensed agencies or any other responsible person, until he has had reached eighteen (18) years of age or, for a shorter period as the court may deem proper, after considering the reports and recommendations of the Department of Social Welfare and Development or the agency or responsible individual under whose care he has been committed. The aforesaid child shall subject to visitation and supervision by a representative of the Department of Social Welfare and Development or any duly-licensed agency or such other officer as the court may designate subject to such conditions as it may prescribe. The aforesaid child whose sentence is suspended can appeal from the order of the court in the same manner as appeals in criminal cases. Section 26. MONITORING AND REPORTING OF CHILDREN IN SITUATIONS OF ARMED CONFLICT. The chairman of the barangay affected by the armed conflict shall submit the names of children residing in said barangay to the municipal social welfare and development officer within twenty-four (24) hours from the occurrence of the armed conflict. ARTICLE XI: Remedial Procedures Section 27. WHO MAY FILE A COMPLAINT. Complaints on cases of unlawful acts committed against the children as enumerated herein may be filed by the following: (a) Offended party;

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(b) Parents or guardians; (c) Ascendant or collateral relative within the third degree of consanguinity; (d) Officer, social worker or representative of a licensed childcaring institution; (e) Officer or social worker of the Department of Social Welfare and Development; (f) Barangay chairman; or (g) At least three (3) concerned responsible citizens where the violation occurred. Section 28. PROTECTIVE CUSTODY OF THE CHILD. The offended party shall be immediately placed under the protective custody of the Department of Social Welfare and Development pursuant to Executive Order No. 56, series of 1986. In the regular performance of this function, the officer of the Department of Social Welfare and Development shall be free from any administrative, civil or criminal liability. Custody proceedings shall be in accordance with the provisions of Presidential Decree No. 603. Section 29. CONFIDENTIALITY. At the instance of the offended party, his name may be withheld from the public until the court acquires jurisdiction over the case. It shall be unlawful for any editor, publisher, and reporter or columnist in case of printed materials, announcer or producer in case of television and radio broadcasting, producer and director of the film in case of the movie industry, to cause undue and sensationalized publicity of any case of violation of this Act which results in the moral degradation and suffering of the offended party. Section 30. SPECIAL COURT PROCEEDINGS. Cases involving violations of this Act shall be heard in the chambers of the judge of the Regional Trial Court duly designated as Juvenile and Domestic Court. Any provision of existing law to the contrary notwithstanding and with the exception of habeas corpus, election cases, and cases involving detention prisoners and persons covered by Republic Act No. 4908, all courts shall give preference to the hearing or disposition of cases involving violations of this Act. ARTICLE XII : Common Penal Provisions Section 31. COMMON PENAL PROVISIONS. (a) The penalty provided under this Act shall be imposed in its maximum period if the offender has been previously convicted under this Act; (b) When the offender is a corporation, partnership or association, the officer or employee thereof who is responsible for the violation of this Act shall suffer the penalty imposed in its maximum period; (c) The penalty provided herein shall be imposed in its maximum period when the perpetrator is an ascendant, parent guardian, stepparent or collateral relative within the second degree of consanguinity or affinity, or a manager or owner of an establishment which has no license to operate or its license has expired or has been revoked; (d) When the offender is a foreigner, he shall be deported immediately after service of sentence and forever barred from entry to the country; (e) The penalty provided for in this Act shall be imposed in its maximum period if the offender is a public officer or employee: Provided, however, That if the penalty imposed is reclusion perpetua or reclusion temporal, then the penalty of perpetual or temporary absolute disqualification shall also be imposed: Provided, finally, That if the penalty imposed is prision correccional or arresto mayor, the penalty of suspension shall also be imposed; and (f) A fine to be determined by the court shall be imposed and administered as a cash fund by the Department of Social Welfare and Development and disbursed for the rehabilitation of each child victim, or any immediate member of his family if the latter is the perpetrator of the offense. ARTICLE XIII: Final Provisions Section 32. RULES AND REGULATIONS. Unless otherwise provided in this Act, the Department of Justice, in coordination with the Department of Social Welfare and Development, shall promulgate rules and regulations of the effective implementation of this Act. Such rules and regulations shall take effect upon their publication in two (2) national newspapers of general circulation. Section 33. APPROPRIATIONS. The amount necessary to carry out the provisions of this Act is hereby authorized to be appropriated in the General Appropriations Act of the year following its enactment into law and thereafter. Section 34. SEPARABILITY CLAUSE. If any provision of this Act is declared invalid or unconstitutional, the remaining provisions not affected thereby shall continue in full force and effect. Section 35. REPEALING CLAUSE. All laws, decrees, or rules inconsistent with the provisions of this Acts are hereby repealed or modified accordingly. Section 36. EFFECTIVITY CLAUSE. This Act shall take effect

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upon completion of its publication in at least two (2) national newspapers of general circulation. Approved: June 17, 1992. Republic Act No. 9231 of 2003, An Act Providing for the Elimination of the Worst Forms of Child Labor and Affording Stronger Protection for the Working Child, Amending for this purpose RA 7610, as amended, Otherwise Known as the Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act Section 1. Section 2 of Republic Act No. 7610, as amended, otherwise known as the "Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act", is hereby amended to read as follows: "Sec. 2. DECLARATION OF STATE POLICY AND PRINCIPLES. - It is hereby declared to be the policy of the State to provide special protection to children from all forms of abuse, neglect, cruelty, exploitation and discrimination, and other conditions prejudicial to their development including child labor and its worst forms; provide sanctions for their commission and carry out a program for prevention and deterrence of and crisis intervention in situations of child abuse, exploitation and discrimination. The State shall intervene on behalf of the child when the parent, guardian, teacher or person having care or custody of the child fails or is unable to protect the child against abuse, exploitation and discrimination or when such acts against the child are committed by the said parent, guardian, teacher or person having care and custody of the same. "It shall be the policy of the State to protect and rehabilitate children gravely threatened or endangered by circumstances which affect or will affect their survival and normal development and over which they have no control. "The best interests of children shall be the paramount consideration in all actions concerning them, whether undertaken by public or private social welfare institutions, courts of law, administrative authorities, and legislative bodies, consistent with the principle of First Call for Children as enunciated in the United Nations Convention on the Rights of the Child. Every effort shall be exerted to promote the welfare of children and enhance their opportunities for a useful and happy life." Section 2. Section 12 of the same Act, as amended, is hereby further amended to read as follows: "Sec. 12. EMPLOYMENT OF CHILDREN - Children below fifteen (15) years of age shall not be employed except: "1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where only members of his/her family are employed: Provided, however, That his/her employment neither endangers his/her life, safety, health, and morals, nor impairs his/her normal development: Provided, further, That the parent or legal guardian shall provide the said child with the prescribed primary and/or secondary education; or "2) Where a child's employment or participation in public entertainment or information through cinema, theater, radio, television or other forms of media is essential: Provided, That the employment contract is concluded by the child's parents or legal guardian, with the express agreement of the child concerned, if possible, and the approval of the Department of Labor and Employment: Provided, further, That the following requirements in all instances are strictly complied with: "(a) The employer shall ensure the protection, health, safety, morals and normal development of the child; "(b) The employer shall institute measures to prevent the child's exploitation or discrimination taking into account the system and level of remuneration, and the duration and arrangement of working time; and "(c) The employer shall formulate and implement, subject to the approval and supervision of competent authorities, a continuing program for training and skills acquisition of the child. "In the above-exceptional cases where any such child may be employed, the employer shall first secure, before engaging such child, a work permit from the Department of Labor and Employment which shall ensure observance of the above requirements. "For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age." Section 3. The same Act, as amended, is hereby further amended by adding new sections to be denominated as Sections 12-A, 12-B, 12-C, and 12-D to read as follows: "Sec. 12-A. HOURS OF WORK OF A WORKING CHILD. - Under the exceptions provided in Section 12 of this Act, as amended: "(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a week: Provided, That the work shall not be more than four (4) hours at any given day; "(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8) hours a day, and in no case beyond forty (40) hours a week; "(3) No child below fifteen (15) years of age shall be allowed

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to work between eight o'clock in the evening and six o'clock in the morning of the following day and no child fifteen (15) years of age but below eighteen (18) shall be allowed to work between ten o'clock in the evening and six o'clock in the morning of the following day." "Sec. 12-B. OWNERSHIP, USAGE AND ADMINISTRATION OF THE WORKING CHILD'S INCOME. - The wages, salaries, earnings and other income of the working child shall belong to him/her in ownership and shall be set aside primarily for his/her support, education or skills acquisition and secondarily to the collective needs of the family: Provided, That not more than twenty percent (20%) of the child's income may be used for the collective needs of the family. "The income of the working child and/or the property acquired through the work of the child shall be administered by both parents. In the absence or incapacity of either of the parents, the other parent shall administer the same. In case both parents are absent or incapacitated, the order of preference on parental authority as provided for under the Family Code shall apply. "Sec. 12-C. TRUST FUND TO PRESERVE PART OF THE WORKING CHILD'S INCOME. - The parent or legal guardian of a working child below eighteen (18) years of age shall set up a trust fund for at least thirty percent (30%) of the earnings of the child whose wages and salaries from work and other income amount to at least two hundred thousand pesos (P200,000.00) annually, for which he/she shall render a semiannual accounting of the fund to the Department of Labor and Employment, in compliance with the provisions of this Act. The child shall have full control over the trust fund upon reaching the age of majority. "Sec. 12-D. PROHIBITION AGAINST WORST FORMS OF CHILD LABOR. - No child shall be engaged in the worst forms of child labor. The phrase "worst forms of child labor" shall refer to any of the following: "(1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices similar to slavery such as sale and trafficking of children, debt bondage and serfdom and forced or compulsory labor, including recruitment of children for use in armed conflict; or "(2) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic performances; or "(3) The use, procuring or offering of a child for illegal or illicit activities, including the production and trafficking of dangerous drugs and volatile substances prohibited under existing laws; or "(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health, safety or morals of children, such that it: "a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or "b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may prejudice morals; or "c) Is performed underground, underwater or at dangerous heights; or "d) Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated tools; or "e) Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or which requires the manual transport of heavy loads; or "f) Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements, substances, co-agents or processes involving ionizing, radiation, fire, flammable substances, noxious components and the like, or to extreme temperatures, noise levels, or vibrations; or "g) Is performed under particularly difficult conditions; or "h) Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans, nematodes and other parasites; or "i) Involves the manufacture or handling of explosives and other pyrotechnic products." Section 4. Section 13 of the same Act is hereby amended to read as follows: "Sec. 13. ACCESS TO EDUCATION AND TRAINING FOR WORKING CHILDREN - "a) No child shall be deprived of formal or non-formal education. In all cases of employment allowed in this Act, the employer shall provide a working child with access to at least primary and secondary education. "b) To ensure and guarantee the access of the working child to education and training, the Department of Education (DEPED) shall: (1) formulate, promulgate, and implement relevant and effective course designs and educational programs; (2) conduct the necessary training for the implementation of the appropriate curriculum for the purpose; (3) ensure the availability of the needed educational facilities and materials; and (4) conduct continuing research and development program for the necessary and relevant alternative education of the working child. "c) The DEPED shall promulgate a course design under its

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non-formal education program aimed at promoting the intellectual, moral and vocational efficiency of working children who have not undergone or finished elementary or secondary education. Such course design shall integrate the learning process deemed most effective under given circumstances." Section 5. Section 14 of the same Act is hereby amended to read as follows: "Sec. 14. PROHIBITION ON THE EMPLOYMENT OF CHILDREN IN CERTAIN ADVERTISEMENTS. - No child shall be employed as a model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling or any form of violence or pornography." Section 6. Section 16 of the same Act, is hereby amended to read as follows: "Sec. 16. PENAL PROVISIONS "a) Any employer who violates Sections 12, 12-A, and Section 14 of this act, as amended, shall be penalized by imprisonment of six (6) months and one (1) day to six (6) years or a fine of not less than Fifty thousand pesos (P50,000.00) but not more than Three hundred thousand pesos (P300,000.00) or both at the discretion of the court. "b) Any person who violates the provision of Section 12-D of this act or the employer of the subcontractor who employs, or the one who facilitates the employment of a child in hazardous work, shall suffer the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) but not more than One million pesos (P1,000,000.00), or imprisonment of not less than twelve (12) years and one (1) day to twenty (20) years, or both such fine and imprisonment at the discretion of the court. "c) Any person who violates Sections 12-D(1) and 12-D(2) shall be prosecuted and penalized in accordance with the penalty provided for by R. A. 9208 otherwise known as the "Anti-trafficking in Persons Act of 2003": Provided, That Such penalty shall be imposed in its maximum period. "d) Any person who violates Section 12-D (3) shall be prosecuted and penalized in accordance with R.A. 9165, otherwise known as the "Comprehensive Dangerous Drugs Act of 2002"; Provided, That such penalty shall be imposed in its maximum period. "e) If a corporation commits any of the violations aforecited, the board of directors/trustees and officers, which include the president, treasurer and secretary of the said corporation who participated in or knowingly allowed the violation, shall be penalized accordingly as provided for under this Section. "f) Parents, biological or by legal fiction, and legal guardians found to be violating Sections 12, 12-A, 12-B and 12-C of this Act shall pay a fine of not less than Ten thousand pesos (P10,000.00) but not more than One hundred thousand pesos (P100,000.00), or be required to render community service for not less than thirty (30) days but not more than one (1) year, or both such fine and community service at the discretion of the court: Provided, That the maximum length of community service shall be imposed on parents or legal guardians who have violated the provisions of this Act three (3) times; Provided, further, That in addition to the community service, the penalty of imprisonment of thirty (30) days but not more than one (1) year or both at the discretion of the court, shall be imposed on the parents or legal guardians who have violated the provisions of this Act more than three (3) times. "g) The Secretary, of Labor and Employment or his/her duly authorized representative may, after due notice and hearing, order the closure of any business firm or establishment found to have violated any of the provisions of this Act more than three (3) times. He/she shall likewise order the immediate closure of such firm or establishment if: "(1) The violation of any provision of this Act has resulted in the death, insanity or serious physical injury of a child employed in such establishment; or "(2) Such firm or establishment is engaged or employed in prostitution or in obscene or lewd shows. "h) In case of such closure, the employer shall be required to pay the employee(s) the separation pay and other monetary benefits provided for by law." Section 7. The same Act is hereby further amended by adding a new section to be denominated as Section 16-A, to read as follows: "Sec. 16-A. TRUST FUND FROM FINES AND PENALTIES - The fine imposed by the court shall be treated as a Trust Fund, administered by the Department of Labor and Employment and disbursed exclusively for the needs, including the costs of rehabilitation and reintegration into the mainstream of society of the working children who are victims of the violations of this Act, and for the programs and projects that will prevent acts of child labor." Section 8. Section 27 of the same Act is hereby amended to read as follows: "Sec. 27. WHO MAY FILE A COMPLAINT - Complaints on cases of unlawful acts committed against children as enumerated herein may be filed by the following: "(a) Offended party;

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"(b) Parents or guardians; "(c) Ascendant or collateral relative within the third degree of consanguinity; "(d) Officer, social worker or representative of a licensed child-caring institution; "(e) Officer or social worker of the Department of Social Welfare and Development; "(f) Barangay chairman of the place where the violation occurred, where the child is residing or employed; or "(g) At least three (3) concerned, responsible citizens where the violation occurred." Section 9. The same Act is hereby further amended by adding new sections to Section 16 to be denominated as Sections 16A, 16-B and 16-C to read as follows: "Sec. 16-A. JURISDICTION - The family courts shall have original jurisdiction over all cases involving offenses punishable under this Act: Provided, That in cities or provinces where there are no family courts yet, the regional trial courts and the municipal trial courts shall have concurrent jurisdiction depending on the penalties prescribed for the offense charged. "The preliminary investigation of cases filed under this Act shall be terminated within a period of thirty (30) days from the date of filing. "If the preliminary investigation establishes a prima facie case, then the corresponding information shall be filed in court within forty eight (48) hours from the termination of the investigation. "Trial of cases under this Act shall be terminated by the court not later than ninety (90) days from the date of filing of information. Decision on said cases shall be rendered within a period of fifteen (15) days from the date of submission of the case. "Sec. 15. EXEMPTIONS FROM FILING FEES. - When the victim of child labor institutes a separate civil action for the recovery of civil damages, he/she shall be exempt from payment of filing fees. "Sec. 16-C. ACCESS TO IMMEDIATE LEGAL, MEDICAL AND PSYCHO-SOCIAL SERVICES - The working child shall have the right to free legal, medical and psycho-social services to be provided by the State." Section 10. IMPLEMENTING RULES AND REGULATIONS - The Secretary of Labor and Employment, in coordination with the Committees on Labor and Employment of both Houses of Congress, shall issue the necessary Implementing Rules and Regulations (IRR) to effectively implement the provisions of this Act, in consultation with concerned public and private sectors, within sixty (60) days from the effectivity of this Act. Such rules and regulations shall take effect upon their publication in two (2) national newspapers of general circulation. Section 11. SEPARABILITY CLAUSE. - If any provision of this Act is declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect. Section 12. REPEALING CLAUSE. - All laws, decrees, or rules inconsistent with the provisions of this Act are hereby repealed or modified accordingly. Section 13. EFFECTIVITY. - This Act shall take effect fifteen (15) days from the date of its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation. Department Circular No. 3 Series of 2009, Guidelines on the Procedure for Closure of Business, Firm or Establishment under RA 9231 I. Purpose This Circular is being issued to guide the DOLE Regional Offices on the procedure for closure on the basis of RA 9231 (An Act Providing for the Elimination of the Worst Forms of Child Labor and Affording Stronger Protection for the Working Child), particularly its Section 16 g, amending Section 16 Penalties of Republic Act No. 7610 (Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act) and Department Order No. 65-04 or the Implementing Rules and Regulations of RA 9231, particularly Sections 21, 23 and 24. II. Closure after Notice and Hearing In accordance with the abovementioned legal basis, the Secretary of Labor and Employment or the Regional Director may order the closure of any business, firm, or establishment found to have violated any of the provisions of RA 9231 more than three (3) times. Prior notice and hearing is required before the issuance of such Closure Order, unless there is a ground for immediate closure, as set forth in Section III below. The hearing for the issuance of a Closure Order shall be summary in nature. III. Immediate Closure Prior notice and hearing is not required if any of the following circumstances or grounds is present:

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1. The violation of any provision of RA 9231 has resulted in the death, insanity, or serious physical injury of a child employed in such establishment; 2. Such firm or establishment is employing a child for prostitution or obscene or lewd shows; or 3. There is imminent danger to the life and limb of the child. An imminent danger is a condition or practice that could reasonably be expected to cause death or serious physical harm before abatement under the enforcement procedures can be accomplished. (Rule 1012.02 Occupational Safety and Health Standards) Under any of the above circumstances, the Secretary of Labor and Employment or the Regional Director shall order the immediate closure of the business, firm or establishment. For purposes herein, the term immediate shall mean a reasonable time not to exceed five (5) working days reckoned from receipt by the Regional Director of the complaint or petition for closure and relevant documentary evidence in support thereof. Such documentary evidence shall be attached to the Notice of Closure and shall include a combination of any or all, but not limited to, the following documents as may be applicable, to wit: 1. Inspection Report; 2. Proof of childs age, such as the NSO-authenticated Certificate of Live Birth; 3. Sworn Statement of the complainant-child or children and their witnesses; 4. Photographs; 5. Daily Time Records and/or Time Sheet; 6. Results of Physical and Medical Examination as issued by a competent medical practitioner; 7. Accident Report; 8. Results of ultra-violet (UV) testing for receipt of marked money by the offender during entrapment; and 9. Business License/Permit/SEC Registration of the business, firm, or establishment concerned. In any of the above three circumstances or grounds, the prescribed procedure is a close-now-hear-later process, which shall be summary in nature. In this procedure, the Notice of Closure shall include a statement duly notifying the establishment concerned of a subsequent hearing that will be conducted to determine whether to affirm or reverse the closure order. IV. Rescue Operations in relation to closure proceedings: Presence or Participation of DOLE personnel Section 24 of D.O. 65-04 provides that the proceedings for closure may be initiated motu proprio by the Department or upon complaint by any interested party. Thus, the closure proceedings may be initiated by the Regional Office even without a prior rescue operation or even without the presence of DOLE personnel in such an operation. The foregoing notwithstanding, the participation of the DOLE in the rescue operation is hereby encouraged. In case a complaint or petition for closure is filed by any interested party after a rescue operation had already been conducted without the presence of DOLE personnel, the DOLE Regional Director shall take cognizance of the complaint or petition and proceed with the appropriate steps, which may include an ocular visit or inspection or investigation, to validate the existence of any ground for closure. V. Suppletory Application of Other Existing Laws and Relevant Issuances Pending promulgation of the pertinent rules and procedures implementing Section 16 of RA 7610, as amended by RA 9231, the pertinent provisions of the Rules on Disposition of Labor Standards Cases in the Regional Offices and the Rules of Court of the Philippines may be applied in the disposition of closure proceedings and other administrative cases arising from violations of the relevant provisions of RA 7610, as amended by RA 9231 and its implementing rules and regulations. Henceforth, the Regional Offices are directed to conduct all closure proceedings pursuant to the relevant provisions of RA 7610, as amended by RA 9231, in accordance with this Circular. DEPARTMENT ORDER NO. 65-04, Rules and Regulations Implementing Republic Act No. 9231, Amending R.A. 7610, as Amended Pursuant to Section 10 of Republic Act No. 9231 (An Act Providing for the Elimination of the Worst Forms of Child Labor and Affording Stronger Protection for the Working Child, Amending for this Purpose Republic Act No. 7610, as amended, Otherwise Known as the Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act), the following Implementing Rules and Regulations are hereby promulgated: Chapter 1 Preliminary Provisions

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mother or father. SECTION 1. COVERAGE These Rules shall cover all persons and entities engaging the services of or employing children. SECTION 2. DECLARATION OF STATE POLICY AND PRINCIPLES The State shall provide special protection to children from all forms of abuse, neglect, cruelty, exploitation and discrimination and other conditions prejudicial to their development including child labor and its worst forms; provide sanctions for their commission and carry out a program for prevention and deterrence of, and crisis intervention in situations of child abuse, exploitation and discrimination. The State shall intervene on behalf of the child when the parent, guardian, teacher or person having care or custody of the child fails or is unable to protect the child against abuse, exploitation and discrimination or when such acts are committed by the said parent, guardian, teacher or person having care and custody of the child. The State shall also protect and rehabilitate children gravely threatened or endangered by circumstances which affect or will affect their survival and normal development and over which they have no control. The best interest of children shall be the paramount consideration in all actions concerning them, whether undertaken by public or private social welfare institutions, courts of law, administrative authorities, and legislative bodies, consistent with the principles of First Call for Children as enunciated in the United Nations Convention of the Rights of the Child. Every effort shall be exerted to promote the welfare of children and enhance their opportunities for a useful and happy life. SECTION 3. DEFINITION OF TERMS As used in these Rules, the term: (a) Child refers to any person under 18 years of age. (b) Child labor refers to any work or economic activity performed by a child that subjects him/her to any form of exploitation or is harmful to his/her health and safety or physical, mental or psychosocial development. (c) Working Child refers to any child engaged as follows: i. when the child is below eighteen (18) years of age, in work or economic activity that is not child labor as defined in the immediately preceding sub-paragraph, and ii. when the child below fifteen (15) years of age, (i) in work where he/she is directly under the responsibility of his/her parents or legal guardian and where only members of the childs family are employed; or (ii)in public entertainment or information. (d) Parent refers to either the biological or adoptive (e) Guardian refers to any person who exercises substitute parental authority regardless of whether or not such parental authority over a child is bestowed by a court. (f) Members of the family refers to the childs parents, guardian, brothers or sisters whether of full or half blood, and other ascendants and descendants or collateral relatives within the fourth civil degree of consanguinity. (g) Employer refers to any person, whether natural or juridical who, whether for valuable consideration or not, directly or indirectly procures, uses, avails itself of, contracts out or otherwise derives benefit from the work or services of a child in any occupation, undertaking, project or activity, whether for profit or not. It includes any person acting in the interest of the employer. (h) Department refers to the Department of Labor and Employment. (i) Collective needs of the family refer to such basic needs as food, shelter, light and water, clothing, education, medical, transportation and other expenditure items necessary for the survival of the family of the child. (j) Work permit refers to the permit secured by the employer, parent or guardian from the Department for any child below 15 years of age in any work allowed under Republic Act No. 9231. (k) Hours of work include (1) all time during which a child is required to be at a prescribed workplace, and (2) all time during which a child is suffered or permitted to work. Rest periods of short duration during working hours shall be counted as hours worked. (l) Workplace refers to the office, premises or worksite where a child is temporarily or habitually assigned. Where there is no fixed or definite workplace, the term shall include the place where the child actually performs work to render service or to take an assignment, to include households employing children. (m) Public entertainment or information refers to artistic, literary, and cultural performances for television show, radio program, cinema or film, theater, commercial advertisement, public relations activities or campaigns, print materials, internet, and other media. (n) Formal education refers to the institutionalized, hierarchically structured and chronologically guided educational system running from elementary to tertiary levels. (o) Non-formal education refers to any organized,

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systematic educational activity conducted outside of the formal education system to provide selected type of learning. (p) Alternative learning system refers to a parallel and comparable learning system which provides a viable alternative to the existing formal education system. (q) Forced labor and slavery refers to the extraction of work or services from any person by means of enticement, violence, intimidation or threat, use of force or coercion, including deprivation of freedom, abuse of authority or moral ascendancy, debt bondage or deception. (r) Child pornography refers to any representation of a child engaged in real or simulated explicit sexual activities or any representation of the sexual parts of a child for primarily sexual purposes. (s) Recovery and reintegration refers to various interventions and services that facilitate the process of healing and eventual return of the child to the family and community. (t) Normal development of the child refers to the physical, emotional, mental, and spiritual growth of a child within a safe and nurturing environment where he/she is given adequate nourishment, care and protection and the opportunity to perform tasks appropriate at each stage of development. Chapter 2 Prohibition on the Employment of Children SECTION 4. GENERAL PROHIBITION Except as otherwise provided in these Rules, no child below 15 years of age shall be employed, permitted or suffered to work, in any public or private establishment. SECTION 5. PROHIBITION ON THE EMPLOYMENT OF CHILDREN IN WORST FORMS OF CHILD LABOR No child shall be engaged in the worst forms of child labor. The phrase worst forms of child labor shall refer to any of the following: (a) All forms of slavery, as defined under the Anti-trafficking in Persons Act of 2003, or practices similar to slavery such as sale and trafficking of children, debt bondage and serfdom and forced or compulsory labor, including recruitment children for use in armed conflict. (b) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic performances; (c) The use, procuring or offering of a child for illegal or illicit activities, including the production or trafficking of dangerous drugs or volatile substances prohibited under existing laws; or (d) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health, safety or morals of children, such that it: i. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or ii. Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may prejudice morals; or iii. Is performed underground, underwater or at dangerous heights; or iv. Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated tools; or v. Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or which requires the manual transport of heavy loads; or vi. Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements, substances, co-agents or processes involving ionizing, radiation, fire, flammable substances, noxious components and the like, or to extreme temperatures, noise levels or vibrations; or vii. Is performed under particularly difficult conditions; or viii. Exposes the child to biological agents such as bacteria, fungi, viruses, protozoa, nematodes and other parasites; or ix. Involves the manufacture or handling of explosives and other pyrotechnic products. SECTION 6. Prohibition on the Employment of Children in Certain Advertisements No child below 18 years of age shall be employed as a model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling or any form of violence or pornography. Chapter 3 Exceptions to the Prohibition SECTION 7. EXCEPTIONS AND CONDITIONS The following shall be the only exceptions to the prohibition on the employment of a child below 15 year of age: (a) When the child works under the sole responsibility of his/her parents or guardian, provided that only members of the childs family are employed. (b) When the childs employment or participation in public

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entertainment or information is essential, regardless of the extent of the childs role. Such employment shall be strictly under the following conditions: i. The total number of hours worked shall be in accordance with Section 15 of these Rules; ii. The employment does not endanger the childs life, safety, health and morals, nor impair the childs normal development; iii. The child is provided with at least the mandatory elementary or secondary education; and iv. The employer secures a work permit for the child in accordance with Section 8-12 of these Rules. Chapter 4 Requirements to Avail of Exception To Employment Prohibition SECTION 8. WORK PERMIT Except as provided is Section 13, no child below 15 years of age shall be allowed to commence work without a work permit. An employer must first secure a work permit from the Regional Office of the Department having jurisdiction over the workplace of the child. In cases where the work is done in more than one workplace falling under the jurisdiction of more than one Regional Office, the application shall be made with the Regional Office having jurisdiction over the principal office of the employer. However, at least two days prior to the performance of the work, the employer shall inform the Regional Office having jurisdiction over the workplace of the activities to be under taken involving the child. SECTION 9. REQUIREMENTS FOR THE ISSUANCE OF WORK PERMIT The employer shall submit to the appropriate Regional Office the Following: (a) A duly accomplished and verified application for work permit containing the following information: i. Terms and conditions of employment including hours of work, number of working days, remuneration, and rest period, which shall be in accordance with law; ii. Measures to ensure the protection, health, safety, morals, and normal development of the child, including but not limited to the following: 1. comfortable workplace and adequate quarters; 2. break or rest periods in comfortable day beds or couches; 3. clean and separate dressing rooms and toilet facilities for boys and girls; 4. provision for adequate meals and snacks and sanitary eating facility; 5. provision of all the necessary assistance to ensure the adequate and immediate medical and dental attendance and treatment to an injured or sick child in case of emergency. (b) Except when the child is below seven years old, i. Proof that the child is enrolled and regularly attending elementary or secondary school classes, consisting of certificate of enrolment for the current year or current school identification or report card; or ii. If the child is not enrolled, a brief description of the program for education, training and skills acquisition for the child, in accordance with Section 19 (b) of these Rules. (c) An authenticated copy of the childs Birth Certificate or a Certificate of late Registration of Birth issued by the NSO or the city/municipal registrar; (d) A medical certificate issued by a licensed physician stating that he/she has personally examined the child for whom a work permit is being secured, and that the child is fit to undertake the work in which he/she is to be engaged. Such certificate must bear in print the certifying physicians full name and his/her license number; (e) Two passport size photographs of the child; (f) When the employer is the parent, guardian, or a family member other than the parent of the child, he/she shall present any valid document such as latest passport, latest postal/company identification card, and drivers license establishing his/her identity. A legal guardian is likewise required to present a duly authenticated proof of legal guardianship while a family member shall present any proof of relationship to the child; (g) When the employer is in public entertainment or information, he/she shall submit a certified true copy of the employers business permit or certificate of registration and a written employment contract to be approved by the Department. An express agreement of the child to the provisions of the contract is needed when such child is between seven and below 15 years of age. SECTION 10. APPLICATION FEE The employer shall pay an application fee of One Hundred Philippine Pesos (P100.00) to cover administrative costs. This amount may be reviewed and adjusted by the Secretary of Labor and Employment from time to time subject to applicable regulations. SECTION 11. ACTION ON THE APPLICATION Within three

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working days from the employers compliance with S ection 810, the Regional Office shall require the appearance of the childs parent, guardian, or employer, or the child himself or herself as may be appropriate, to validate the information indicated in the application and to educate such parent, guardian, or employer, on child labor laws and regulations. The Regional Office, through the Regional Director, shall issue the work permit within three days from compliance with all the foregoing requirements. Non-compliance with the requirements shall automatically result in the denial of the application. In such instances, the application shall be deemed not filed and the Regional Office shall immediately return it to the applicant, indicating the requirements that were not complied with. SECTION 12. VALIDITY OF WORK PERMIT The work permit shall state the period of its validity based on the employment contract of the application for work permit, as the case may be. However, the period of validity shall in no case exceed one year. SECTION 13. EMPLOYMENT OF SPOT EXTRAS In public entertainment or information, the requirements for the issuance of work permit stated in Section 8-12 shall not be applicable to the employment of spot extras or those being cast outright on the day of the filming or taping. Instead, the employer shall file a notice with the Regional Office where the work is to be performed that it will undertake activities involving child work. The notice shall be in the form prescribed by the Department and shall state the approximate number of child workers to be employed, the date, place and time the work is to be performed, and an undertaking that the employment shall be in conformity with Republic Act No. 9231 and these Rules. SECTION 14. COMPLIANCE WITH E-COMMERCE LAW The Department shall develop systems to enable parties to comply, through electronic media, with the documentary requirements set forth in these Rules. It shall also set up a database of all contracts filed and work permits issued which shall be accessible to the public, subject to reasonable rules of access which the Department may adopt. Chapter 5 Hours of Work SECTION 15. HOURS OF WORK OF A WORKING CHILD The following hours of work shall be observed for any child allowed to work under Republic Act No. 9231 and these Rules: (a) For a child below 15 years of age, the hours of work shall not be more than twenty (20) hours as week, provided that the work shall not be more than four hours at any given day; (b) For a child 15 years of age, but below 18, the hours of SECTION 18. PRESERVATION OF THE WORKING CHILDS INCOME The income of the working child shall be deposited in a Trust Fund or Savings Account set up or opened under his/her name by the administrator of such income, subject to the conditions set forth in this Section and the Civil Code. The administrator shall make an accounting of all wages, salaries, earnings and other income of the child. When the childs gross earnings in a year amount to at least Two Hundred Thousand Pesos (P200,000.00), the administrator shall set up a Trust Fund for the child where at least thirty work shall not be more than eight hours a day, and in no case beyond 40 hours a week; and (c) No child below 15 year of age shall be allowed to work between eight oclock in the evening and six oclock in the morning of the following day and no child 15 years of age but below 18 shall be allowed to work between ten oclock in the evening and six oclock in the morning of the following day. Sleeping time as well travel time of a child engaged in public entertainment or information from his/her residence to his/her workplace shall not be included as hours worked without prejudice to the application of existing rules on employees compensation. Chapter 6 Working Childs Income SECTION 16. OWNERSHIP AND USE OF THE WORKING CHILDS INCOME The wages, salaries, earnings and other income of the working child belong to him/her in ownership and shall be set aside primarily for his/her support, education, or skills acquisition and secondarily to the collective needs of the family: Provided, That not more than twenty percent (20%) of the childs income may be used for the collective needs of the family. SECTION 17. ADMINISTRATION OF THE WORKING CHILDS INCOME The income of the working child and/or the property acquired through his/her work shall be administered by both parents. In the absence of , or incapacity of either of the parents, the other parent shall administer the same. In case both parents are absent or incapacitated, the order of preference on parental authority shall be in accordance with Article 216 of the Family Code, as follows: (a) The surviving grandparent; in case several survive, the one designated by the court taking into account all relevant considerations, especially the choice of the child over seven years of age, unless the grandparent chosen is unfit; (b) The oldest brother or sister, over 21 years of age, unless unfit or disqualified; and (c) The childs actual custodian over 21 years of age, unless unfit or disqualified.

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percent (30%) of such amount shall be deposited. For a child earning less than P200,000.00 a year, at least thirty percent (30%) of his/her income may be deposited in a Savings Account each time the child receives an income. The accumulated savings shall be immediately transferred to the Trust Fund for the child should his/her total gross income for a given year is at least Two Hundred Thousand Pesos (P200,000.00). The child shall have full control over the Trust Fund upon reaching the age of majority. The administrator shall render a semi-annual accounting of the Trust Fund to the concerned Regional Office of the Department. He or she shall be required to submit, whether actual or on-line, a verified financial statement in an appropriate form prescribed by the Department. Chapter 7 Education, Training and Other Services SECTION 19. ACCESS TO EDUCATION AND TRAINING FOR THE WORKING CHILD Every child shall have access to formal or non-formal education. (a) No child shall be deprived of formal, non-formal or alternative learning systems of education. In all cases where the child is allowed to work, the employer shall provide the child with access to at least elementary and/or secondary education. No employer shall make a child work during his/her school hours, and hinder his/her access to education during school days. (b) The continuing program for education and training for the working child shall be that developed by the Department of Education for formal, non-formal and alternative learning systems of education, or by the Technical Education and Skills Development Authority, whichever is applicable to the circumstances of the child. SECTION 20. ACCESS TO IMMEDIATE LEGAL, MEDICAL AND PSYCHO-SOCIAL SERVICES Working children, including victims of child labor shall have the right to free legal, medical and psycho-social services to be provided by the State through agencies mandated to provide such services, as well as through networks like the National Program Against Child Labor, other existing interagency mechanisms, or those that may be established. The Department, on its own or in collaboration with concerned institutions, shall set up a mechanism to provide free legal services for working children and their parents or guardians. Such services shall include the provision of information on the childs rights or procedures for filing complaints and claiming compensation, and on such other legal remedies available to them. The Department shall facilitate the provision of health services to working children and victims of child labor in partnership with concerned sectors. Health services include primary or preventive, secondary or curative, and tertiary or rehabilitative services, or such services as may be necessary to address physical, psychological and social problems arising from child labor. The Department shall refer working children and victims of child labor to appropriate agencies and organizations for psycho-social services. The delivery of the above services shall be without prejudice to similar services provided by other agencies, conformably with their own mandates. The Department may also enlist the assistance of non-governmental organizations and other groups in the delivery of these services. In every case, the special needs and peculiar situations of working children, including victims of child labor, shall be taken into account. Chapter 8 Enforcement and Administration SECTION 21. ACTIONS OF THE SECRETARY OF LABOR AND EMPLOYMENT OR REGIONAL DIRECTOR In case of violation, the Secretary of Labor and Employment or the Regional Director as his or her authorized representative, shall undertake the following actions: (a) Order the immediate and permanent closure of the establishment if: i. The violation of any provision of Republic Act No. 9231 has resulted in the death, insanity or serious physical injury of a child employed in such establishment; or ii. Such firm or establishment is employing a child for prostitution or obscene or lewd shows. The employer shall pay all employees affected by the closure their separation pay and other monetary benefits provided for by law. (b) Order the immediate and temporary closure of the establishment if there is imminent danger to the life and limb of the child in accordance with the occupational safety and health standards. An imminent danger is a condition or practice that could reasonably be expected to cause death or serious physical harm. In no case shall the closure be lifted unless the imminent danger has been abated. For the duration of the closure, the employer shall pay the wages of all employees affected. If, after due hearing, the closure is made permanent, the employer shall pay all employees affected their separation benefits, as provided in the immediately preceding subsection. (c) In both cases, require the employer to:

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arising from Sections 21, 22 and 23 shall be summary in nature. It may be initiated motu proprio by the Department or upon complaint by any interested party. Permanent or temporary closure shall be effected upon service by the Regional Director of a notice of closure on the employer. Within 24 hours from notice, the Regional Director shall call a hearing to confirm the closure, in which the employer shall be given the opportunity to present evidence why closure is not an appropriate remedy. Within 72 hours from the last hearing, the Regional Director shall issue an order confirming or lifting the closure, as the case may be. In the case of suspension or cancellation of work permit, the Regional Director shall serve a notice on the employer and the parent or guardian of the working child, who shall have three days from receipt of the notice to show cause why the work permit should not be cancelled or suspended. The Regional Director shall have ten days from service of notice within which to issue a revocation, suspension or dismissal order. Any motion for reconsideration of the Regional Directors action shall be resolved by the Secretary of Labor and Employment. Upon issuance of the notice and during the pendency of the proceedings, the child concerned shall not be allowed to work. In the event that a violation constituting a ground for cancellation or suspension of work permit is committed in a workplace outside the jurisdiction of the Regional Office which issued the work permit, the Regional Office having jurisdiction over the workplace shall immediately stop the employer from requiring the child to work. Within 24 hours thereafter, the Regional Office having jurisdiction of the workplace shall prepare a report to the Regional Office which issued the work permit, for the latter to commence appropriate cancellation or suspension proceedings. SECTION 25. Industry Guidelines and Self-Policing Mechanisms The Department may issue appropriate industry-specific guidelines, taking into account the peculiar circumstances of each industry, upon consultation with concerned sectors. Establishments with at least 200 workers or those with certified collective bargaining agreements (CBAs) shall be encouraged to adopt a selfassessment mode pursuant to Section 1 (a) of Department Order No. 57-04, series of 2004 (Labor Standards Enforcement Framework). Employers, workers and their organizations, professional organizations or business federations are encouraged to establish or adopt mechanisms to monitor their ranks and take corrective action against erring members. The Department shall provide technical assistance in setting up such mechanisms. SECTION 26. ADMINISTRATION OF TRUST FUND FROM FINES

i. Shoulder the transportation cost of the child from the place of work to the DSWD-accredited halfway house and to the childs residence; and ii. Shoulder the total actual cost of medical management, recovery and reintegration of the child, or in case of death, the childs funeral expenses; SECTION 22. GROUNDS FOR SUSPENSION AND CANCELLATION OF WORK PERMIT The Regional Director shall suspend or cancel the work permit issued to a working child under the following instances: (a) If there is fraud or misrepresentation in the application for work permit or any of its supporting documents; (b) If the terms and conditions set forth in the childs employment contract and/or employers undertaking have been violated; (c) If the employer fails to institute measures to ensure the protection, health, safety, morals, and normal development of the child as required in Section 7 (b)ii; (d) If the employer fails to formulate and implement a program for the education, training and skills acquisition of the child; or (e) If a child has been deprived access to formal, non-formal or alternative learning systems of education. SECTION 23. VIOLATIONS NOT RESULTING IN DEATH, INSANITY OR INJURY OF THE CHILD The Regional Director, after due notice and hearing, and without prejudice to the filing of the appropriate criminal and civil actions, shall: (a) In case of a first violation, issue a compliance order for immediate restitution and correction of the violation. Failure to comply with said order constitutes a second violation; (b) In case of a second violation, issue a compliance order for immediate restitution and correction of the violation and prohibit the employer from hiring a child for six months commencing from date of last offense. Failure to comply with said order constitutes a third violation; and (c) In case of a third violation, issue a compliance order for immediate restitution and correction of the violation. Failure to comply with said order constitutes a fourth violation justifying closure of the establishment. In appropriate cases, the Regional Director may file against the employer a case for indirect contempt as provided for under Rule 71 of the Revised Rules of Court. SECTION 24. ENFORCEMENT PROCEDURE. The proceedings

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AND PENALTIES The finest imposed by the court upon any violator of Republic Act No. 9231 shall, subject to existing government accounting and auditing rules and regulations, including the provision on trust funds under the General Appropriations Act, accrue to the DOLE-office of the Secretary Trust Fund for Working Children. This trust fund shall be administered by the Department and disbursed exclusively for programs and projects preventing child labor and mitigating its effects. Within two months after the date of effectivity of these Rules, the Department shall set up the Trust Fund for Working Children in accordance with existing government accounting, auditing, and Department of Budget and Management requirements. The Department shall: (a) Draw up the procedures for the use and disbursement of the Trust Fund; (b) Formulate and supervise the implementation of programs for qualified beneficiaries of the Trust Fund; and (c) Monitor, through the Regional Offices of the Department, the status of child labor cases that may involve the award of fines under Republic Act No. 9231. Chapter 9 Miscellaneous Provisions SECTION 27. FILING OF COMPLAINTS Complaints on violations specified under Republic Act No. 9231 and these Rules which fall under the jurisdiction of the regular courts shall be filed by persons identified in said law, and in accordance with the Rules of Court. SECTION 28. DISPOSITION OF INVESTIGATION REPORT - The investigation report of the Department on violations that may constitute a criminal offense under Republic Act No. 9231, together with other relevant documents and evidence, shall be immediately forwarded to the provincial or city prosecutor concerned who shall determine the filing of the appropriate criminal charge. SECTION 29. EFFECTS ON OTHER ISSUANCES These Rules supersede Department Order No. 18, series of 1994 or the Rules and Regulations Implementing Republic Act No. 7658. All other Issuances of the Department inconsistent with the provisions of these Rules are deemed modified accordingly. SECTION 30. EFFECTS ON EXISTING CONTRACTS These Rules shall not be interpreted to impair contracts executed prior to its effectivity. All other general rules on nonimpairment of contracts shall apply. SECTION 31. SEPARABILITY CLAUSE If any of the provisions of these Rules is declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect. SECTION 32. EFFECTIVITY These Rules shall take effect 15 days from the date of its complete publication in two national newspapers of general circulation. 1. UN GENERAL ASSEMBLY Convention on the Rights of the Child (CRC), 20 November 1989 Article 32 1. States Parties recognize the right of the child to be protected from economic exploitation and from performing any work that is likely to be hazardous or to interfere with the child's education, or to be harmful to the child's health or physical, mental, spiritual, moral or social development.

2. States Parties shall take legislative, administrative, social and educational measures to ensure the implementation of the present article. To this end, and having regard to the relevant provisions of other international instruments, States Parties shall in particular: (a) Provide for a minimum age or minimum wages for admission to employment; (b) Provide for appropriate regulation of the hours and conditions of employment; (c) Provide for appropriate penalties or other sanctions to ensure the effective enforcement of the present article. full text at: http://www2.ohchr.org/english/law/crc.htm 2. MINORS UNDER THE CONSTITUTION 1987 Constitution Art. II, Sec. 13 The State recognizes the vital role of the youth in nationbuilding and shall promote and protect their physical, moral, spiritual, intellectual, and social well-being. It shall inculcate in the youth patriotism and nationalism, and encourage their involvement in public and civic affairs. 1987 Constitution Art. XV, Sec. 3 (2) The State shall defend: (2) The right of children to assistance, including proper care and nutrition, and special protection from all forms of

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neglect, abuse, cruelty, exploitation and other conditions prejudicial to their development; 3. COVERAGE/DEFINITION RA 9231, Amending RA 7610, Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act, Sec. 12 (focus on: par. 3) Section 12 of the same Act, as amended, is hereby further amended to read as follows: "Sec. 12. Employment of Children - Children below fifteen (15) years of age shall not be employed except: "1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where only members of his/her family are employed: Provided, however, That his/her employment neither endangers his/her life, safety, health, and morals, nor impairs his/her normal development: Provided, further, That the parent or legal guardian shall provide the said child with the prescribed primary and/or secondary education; or "2) Where a child's employment or participation in public entertainment or information through cinema, theater, radio, television or other forms of media is essential: Provided, That the employment contract is concluded by the child's parents or legal guardian, with the express agreement of the child concerned, if possible, and the approval of the Department of Labor and Employment: Provided, further, That the following requirements in all instances are strictly complied with: "(a) The employer shall ensure the protection, health, safety, morals and normal development of the child; "(b) The employer shall institute measures to prevent the child's exploitation or discrimination taking into account the system and level of remuneration, and the duration and arrangement of working time; and "(c) The employer shall formulate and implement, subject to the approval and supervision of competent authorities, a continuing program for training and skills acquisition of the child. "In the above-exceptional cases where any such child may be employed, the employer shall first secure, before engaging such child, a work permit from the Department of Labor and Employment which shall ensure observance of the above requirements. "For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age." a. CHILD

Department Order 65-04, Rules and Regulations Implementing RA 9231, Sec. 3 (a) DEFINITION OF TERMS. As used in these rules, the term (a) Child refers to any person under 18 years of age. b. CHILD LABOR Department Order 65-04, Sec. 3 (b) DEFINITION OF TERMS. As used in these rules, the term (b) Child labor refers to any work or economic activity performed by a child that subjects him/her to any form of exploitation or is harmful to his/her health and safety or physical, mental or psychosocial development. c. WORKING CHILD Department Order 65-04, Sec. 3 (c) DEFINITION OF TERMS. As used in these rules, the term (c) Working Child refers to any child engaged as follows: i. when the child is below eighteen (18) years of age, in work or economic activity that is not child labor as defined in the immediately preceding sub-paragraph, and ii. when the child below fifteen (15) years of age, (i) in work where he/she is directly under the responsibility of his/her parents or legal guardian and where only members of the childs family are employed; or (ii)in public entertainment or information. 4. EMPLOYMENT OF CHILDREN Labor Code Art. 139 MINIMUM EMPLOYABLE AGE.No child below fifteen (15) years of age shall be employed, except when he works directly under the sole responsibility of his parents or guardian, and his employment does not in any way interfere with his schooling. Any person between fifteen (15) and eighteen (18) years of age may be employed for such number of hours and such periods of the day as determined by the Secretary of Labor and Employment in appropriate regulations. The foregoing provisions shall in no case allow the employment of a person below eighteen (18) years of age in an undertaking which is hazardous or deleterious in nature as determined by the Secretary of Labor and Employment.

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RA 9231, Amending RA 7610, Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act, Sec. 12 Section 12 of the same Act, as amended, is hereby further amended to read as follows: "Sec. 12. Employment of Children - Children below fifteen (15) years of age shall not be employed except: "1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where only members of his/her family are employed: Provided, however, That his/her employment neither endangers his/her life, safety, health, and morals, nor impairs his/her normal development: Provided, further, That the parent or legal guardian shall provide the said child with the prescribed primary and/or secondary education; or "2) Where a child's employment or participation in public entertainment or information through cinema, theater, radio, television or other forms of media is essential: Provided, That the employment contract is concluded by the child's parents or legal guardian, with the express agreement of the child concerned, if possible, and the approval of the Department of Labor and Employment: Provided, further, That the following requirements in all instances are strictly complied with: "(a) The employer shall ensure the protection, health, safety, morals and normal development of the child; "(b) The employer shall institute measures to prevent the child's exploitation or discrimination taking into account the system and level of remuneration, and the duration and arrangement of working time; and "(c) The employer shall formulate and implement, subject to the approval and supervision of competent authorities, a continuing program for training and skills acquisition of the child. "In the above-exceptional cases where any such child may be employed, the employer shall first secure, before engaging such child, a work permit from the Department of Labor and Employment which shall ensure observance of the above requirements. "For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age." Department Order 65-04, Sec. 3 (c) DEFINITION OF TERMS. As used in these rules, the term (c) Working Child refers to any child engaged as follows: i. when the child is below eighteen (18) years of age, in work or economic activity that is not child labor as defined in the immediately preceding sub-paragraph, and ii. when the child below fifteen (15) years of age, (i) in work where he/she is directly under the responsibility of his/her parents or legal guardian and where only members of the childs family are employed; or (ii)in public entertainment or information. Department Order 65-04, Sec. 5 PROHIBITION ON THE EMPLOYMENT OF CHILDREN IN WORST FORMS OF CHILD LABOR No child shall be engaged in the worst forms of child labor. The phrase worst forms of child labor shall refer to any of the following: (a) All forms of slavery, as defined under the Anti-trafficking in Persons Act of 2003, or practices similar to slavery such as sale and trafficking of children, debt bondage and serfdom and forced or compulsory labor, including recruitment children for use in armed conflict. (b) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic performances; (c) The use, procuring or offering of a child for illegal or illicit activities, including the production or trafficking of dangerous drugs or volatile substances prohibited under existing laws; or (d) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health, safety or morals of children, such that it: i. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or ii. Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may prejudice morals; or iii. Is performed underground, underwater or at dangerous heights; or iv. Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated tools; or v. Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or which requires the manual transport of heavy loads; or vi. Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements, substances,

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co-agents or processes involving ionizing, radiation, fire, flammable substances, noxious components and the like, or to extreme temperatures, noise levels or vibrations; or vii. Is performed under particularly difficult conditions; or viii. Exposes the child to biological agents such as bacteria, fungi, viruses, protozoa, nematodes and other parasites; or ix. Involves the manufacture or handling of explosives and other pyrotechnic products. Department Order 65-04, Sec. 6 PROHIBITION ON THE EMPLOYMENT OF CHILDREN IN CERTAIN ADVERTISEMENTS No child below 18 years of age shall be employed as a model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling or any form of violence or pornography. 5. HOURS OF WORK RA 9231, Amending RA 7610, Sec. 3 on Sec. 12-a The same Act, as amended, is hereby further amended by adding new sections to be denominated as Sections 12-A, 12B, 12-C, and 12-D to read as follows: "Sec. 12-A. Hours of Work of a Working Child. - Under the exceptions provided in Section 12 of this Act, as amended: "(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a week: Provided, That the work shall not be more than four (4) hours at any given day; "(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8) hours a day, and in no case beyond forty (40) hours a week; "(3) No child below fifteen (15) years of age shall be allowed to work between eight o'clock in the evening and six o'clock in the morning of the following day and no child fifteen (15) years of age but below eighteen (18) shall be allowed to work between ten o'clock in the evening and six o'clock in the morning of the following day." Department Order 65-04, Sec. 3 (k) DEFINITION OF TERMS (k) Hours of work include (1) all time during which a child is required to be at a prescribed workplace, and (2) all time during which a child is suffered or permitted to work. Rest "(1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices similar to slavery such as sale and trafficking of children, debt bondage and serfdom and forced or compulsory labor, including recruitment of children for use in armed conflict; or "(2) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for pornographic performances; or "(3) The use, procuring or offering of a child for illegal or illicit activities, including the production and trafficking of dangerous drugs and volatile substances prohibited under existing laws; or "(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to the health, safety or morals of children, such that it: "a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or "b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or may prejudice morals; or "c) Is performed underground, underwater or at dangerous heights; or "d) Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-actuated tools; or "e) Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or which requires the manual transport of heavy loads; or "f) Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements, substances, co-agents or processes involving ionizing, radiation, fire, flammable substances, noxious components and the like, or to extreme temperatures, noise levels, or vibrations; or periods of short duration during working hours shall be counted as hours worked. 6. PROHIBITIONS AGAINST WORST FORMS OF CHILD LABOR RA 9231, Amending RA 7610, Sec. 3 on Sec. 12-d "Sec. 12-D. Prohibition Against Worst Forms of Child Labor. No child shall be engaged in the worst forms of child labor. The phrase "worst forms of child labor" shall refer to any of the following:

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8. JURISDICTION "g) Is performed under particularly difficult conditions; or RA 9231, Amending RA 7610, Sec. 9 on Sec. 16-A "h) Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans, nematodes and other parasites; or "i) Involves the manufacture or handling of explosives and other pyrotechnic products." RA 9231, Amending RA 7610, Sec. 5 on Sec. 14 Section 14 of the same Act is hereby amended to read as follows: "Sec. 14. Prohibition on the Employment of Children in Certain Advertisements. - No child shall be employed as a model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling or any form of violence or pornography." 7. DISCRIMINATION Labor Code Art. 140 PROHIBITION AGAINST CHILD DISCRIMINATION. No employer shall discriminate against any person in respect to terms and conditions of employment on account of his age. "Trial of cases under this Act shall be terminated by the court not later than ninety (90) days from the date of filing of information. Decision on said cases shall be rendered within a period of fifteen (15) days from the date of submission of the case. The same Act is hereby further amended by adding new sections to Section 16 to be denominated as Sections 16-A, 16-B and 16-C to read as follows: "Sec. 16-A. Jurisdiction - The family courts shall have original jurisdiction over all cases involving offenses punishable under this Act: Provided, That in cities or provinces where there are no family courts yet, the regional trial courts and the municipal trial courts shall have concurrent jurisdiction depending on the penalties prescribed for the offense charged. "The preliminary investigation of cases filed under this Act shall be terminated within a period of thirty (30) days from the date of filing. "If the preliminary investigation establishes a prima facie case, then the corresponding information shall be filed in court within forty eight (48) hours from the termination of the investigation.

C. HOUSEHELPERS/CAREGIVERS

SUMMARY: A househelper/domestic servant is any person who renders services in and about an employer's home, and which services are usually necessary or desirable for the maintenance and enjoyment thereof, and ministers exclusively to the personal comfit and enjoyment of the employer's family. Househelpers may be assigned to work in a non-household capacity (commercial, industrial, agricultural) so long as they are given wages or salaries not lower than those prescribed for agricultural or non-agricultural workers. A contract for domestic service is for a maximum of 2 years, but it can be renewed as may be agreed upon. Employers must review employment contracts every 3 years, and aim to improve its terms and conditions. The minimum wage rates in Art. 143 of the Labor Code for househelpers still stand, despite its improbability and incongruity. Househelpers receiving at least P1,000 must also be covered by the SSS. A househelper's wages is exclusive of lodging, food and medical attendance, and must be paid directly to the househelper at least once a month. There shall be no deductions unless authorized by the househelper or by existing laws.

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If a househelper is below 18 years old, the employer must support his elementary education, at the least. The cost of education will form part of the househelper's compensation, unless there is a contrary agreement. The Civil Code provides that househelpers cannot be required to work more than 10 hours a day. They must also be provided four days' vacation each month, with pay. Termination of a Househelper's Services (Art. 149, Labor Code) o If period of employment is fixed: neither househelper or employer may fix until the end of the contract, except for a just cause o If no period is fixed: the employer must give at least 5 days notice to the househelper o In case of unjust dismissal: householder must be paid compensation already earned + compensation for 15 days as indemnity o If the househelper leaves without justifiable reason: unpaid salary for up to 15 days is forfeited Compare to: Art. 1698, Civil Code: o If compensation is paid by the day: notice one day before the last day; o If compensation is paid by the week: notice at least seven business days from the last day; o If compensation is paid by the month: notice on the 5th day of the month that the service shall be over at the end of the month The employer must give the househelper an employment certificate stating the nature and duration of the service and his or her conduct as such. If the househelper dies without relatives with sufficient means in the place where the employer's family is, the head of such family shall bear the funeral expenses commensurate to the standards of life of the deceased.

____________________________________________________________________________________________________________ C. HOUSEHELPERS/CAREGIVERS 1. DEFINITION Labor Code Art. 141 COVERAGE. This Chapter shall apply to all persons rendering services in households for compensation. "Domestic or household service" shall mean service in the employers home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employers household, including services of family drivers. Omnibus Rules Book III, Rule XIII, Sec. 1 (b) GENERAL STATEMENT ON COVERAGE.(b) The term "househelper" as used herein is synonymous to the term "domestic servant" and shall refer to any person, whether male or female, who renders services in and about the employer's home and which services are usually necessary or desirable for the maintenance and enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment of the employer's family. 2. COVERAGE Labor Code Art. 141 "Domestic or household service" shall mean service in the employers home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employers household, including services of family drivers. 3. NON-HOUSEHOLD WORK Labor Code Art. 145 Article 145. ASSIGNMENT TO NON-HOUSEHOLD WORK.No househelper shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural or non-agricultural workers as prescribed herein. FERNANDO CO v. LINA VARGAS FACTS Bakeshop staff Lina would often do chores as a housemaid during the 9 years she was in Cos employ.

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HELD The bakeshop may have been in the same place as Cos residence, but because Linas attending to non -household chores constituted regular employment for which she is entitled to other benefits and tenure. 4. CONDITIONS OF EMPLOYMENT Labor Code Art. 141-152 Article 141. COVERAGE COVERAGE. This Chapter shall apply to all persons rendering services in households for compensation. "Domestic or household service" shall mean service in the employers home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employers household, including services of family drivers. Article 142. CONTRACT OF DOMESTIC SERVICE. The original contract of domestic service shall not last for more than two (2) years but it may be renewed for such periods as may be agreed upon by the parties. Article 143. MINIMUM WAGE.Househelpers shall be paid the following minimum wage rates: Eight hundred pesos (P800.00) a month for househelpers in Manila, Quezon, Pasay, and Caloocan cities and municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas, Malabon, Paraaque, Las Pias, Pasig, Marikina, Valenzuela, Taguig and Pateros in Metro Manila and in highly urbanized cities; Six hundred fifty pesos (P650.00) a month for those in other chartered cities and first-class municipalities; and Five hundred fifty pesos (P550.00) a month for those in other municipalities. Provided, That the employers shall review the employment contracts of their househelpers every three (3) years with the end in view of improving the terms and conditions thereof. Provided, further, That those househelpers who are receiving at least One thousand pesos (P1,000.00) shall be covered by the Social Security System (SSS) and be entitled to all the benefits provided thereunder. (As amended by Republic Act No. 7655, August 19, 1993) Article 144. MINIMUM CASH WAGE.The minimum wage rates prescribed under this Chapter shall be the basic cash wages which shall be paid to the househelpers in addition to lodging, food and medical attendance. Article 145. ASSIGNMENT TO NON-HOUSEHOLD WORK.No househelper shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural or non-agricultural workers as prescribed herein. Article 146. OPPORTUNITY FOR EDUCATION. If the househelper is under the age of eighteen (18) years, the employer shall give him or her an opportunity for at least elementary education. The cost of education shall be part of the househelpers compensation, unless there is a stipulation to the contrary. Article 147. TREATMENT OF HOUSEHELPERS. The employer shall treat the househelper in a just and humane manner. In no case shall physical violence be used upon the househelper. Article 148. BOARD, LODGING, AND MEDICAL ATTENDANCE.The employer shall furnish the househelper, free of charge, suitable and sanitary living quarters as well as adequate food and medical attendance. Article 149. INDEMNITY FOR UNJUST TERMINATION OF SERVICES. If the period of household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term, except for a just cause. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned plus that for fifteen (15) days by way of indemnity. If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him or her not exceeding fifteen (15) days. Article 150. SERVICE OF TERMINATION NOTICE. If the duration of the household service is not determined either in stipulation or by the nature of the service, the employer or the househelper may give notice to put an end to the relationship five (5) days before the intended termination of the service. Article 151. EMPLOYMENT CERTIFICATION.Upon the severance of the household service relation, the employer shall give the househelper a written statement of the nature and duration of the service and his or her efficiency and conduct as househelper. Article 152. EMPLOYMENT RECORD.The employer may keep such records as he may deem necessary to reflect the actual terms and conditions of employment of his househelper, which the latter shall authenticate by signature or thumbmark upon request of the employer. Civil Code Art. 1689 to 1699 Article 1689. Household service shall always be reasonably compensated. Any stipulation that household service is without compensation shall be void. Such compensation shall

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be in addition to the house helper's lodging, food, and medical attendance. Article 1690. The head of the family shall furnish, free of charge, to the house helper, suitable and sanitary quarters as well as adequate food and medical attendance. Article 1691. If the house helper is under the age of eighteen years, the head of the family shall give an opportunity to the house helper for at least elementary education. The cost of such education shall be a part of the house helper's compensation, unless there is a stipulation to the contrary. Article 1692. No contract for household service shall last for more than two years. However, such contract may be renewed from year to year. Article 1693. The house helper's clothes shall be subject to stipulation. However, any contract for household service shall be void if thereby the house helper cannot afford to acquire suitable clothing. Article 1694. The head of the family shall treat the house helper in a just and humane manner. In no case shall physical violence be used upon the house helper. Article 1695. House helpers shall not be required to work more than ten hours a day. Every house helper shall be allowed four days' vacation each month, with pay. Article 1696. In case of death of the house helper, the head of the family shall bear the funeral expenses if the house helper has no relatives in the place where the head of the family lives, with sufficient means therefor. Article 1697. If the period for household service is fixed neither the head of the family nor the house helper may terminate the contract before the expiration of the term, except for a just cause. If the house helper is unjustly dismissed, he shall be paid the compensation already earned plus that for fifteen days by way of indemnity. If the house helper leaves without justifiable reason, he shall forfeit any salary due him and unpaid, for not exceeding fifteen days. Article 1698. If the duration of the household service is not determined either by stipulation or by the nature of the service, the head of the family or the house helper may give notice to put an end to the service relation, according to the following rules: (1) If the compensation is paid by the day, notice may be given on any day that the service shall end at the close of the following day; (2) If the compensation is paid by the week, notice may be given, at the latest on the first business day of the week, that the service shall be terminated at the end of the seventh day from the beginning of the week; (3) If the compensation is paid by the month, notice may be given, at the latest, on the fifth day of the month, that the service shall cease at the end of the month. Article 1699. Upon the extinguishment of the service relation, the house helper may demand from the head of the family a written statement on the nature and duration of the service and the efficiency and conduct of the house helper. a. COMPENSATION Labor Code Arts. 143-144 Article 143. MINIMUM WAGE.Househelpers shall be paid the following minimum wage rates: Eight hundred pesos (P800.00) a month for househelpers in Manila, Quezon, Pasay, and Caloocan cities and municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas, Malabon, Paraaque, Las Pias, Pasig, Marikina, Valenzuela, Taguig and Pateros in Metro Manila and in highly urbanized cities; Six hundred fifty pesos (P650.00) a month for those in other chartered cities and first-class municipalities; and Five hundred fifty pesos (P550.00) a month for those in other municipalities. Provided, That the employers shall review the employment contracts of their househelpers every three (3) years with the end in view of improving the terms and conditions thereof. Provided, further, That those househelpers who are receiving at least One thousand pesos (P1,000.00) shall be covered by the Social Security System (SSS) and be entitled to all the benefits provided thereunder. (As amended by Republic Act No. 7655, August 19, 1993) Article 144. MINIMUM CASH WAGE.The minimum wage rates prescribed under this Chapter shall be the basic cash wages which shall be paid to the househelpers in addition to lodging, food and medical attendance. Civil Code Art. 1689 Article 1689. Household service shall always be reasonably compensated. Any stipulation that household service is without compensation shall be void. Such compensation shall be in addition to the house helper's lodging, food, and medical attendance. a. 1. TIME AND MANNER OF PAYMENT

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Omnibus Rules Book III Rule XIII, Sec. 9. TIME AND MANNER OF PAYMENT.Wages shall be paid directly to the househelper to whom they are due at least once a month. No deductions therefrom shall be made by the employer unless authorized by the househelper himself or by existing laws. b. HOURS OF WORK Civil Code Art. 1695 Article 1695. House helpers shall not be required to work more than ten hours a day. Every house helper shall be allowed four days' vacation each month, with pay. c. VACATION WITH PAY Civil Code Art. 1695 Article 1695. House helpers shall not be required to work more than ten hours a day. Every house helper shall be allowed four days' vacation each month, with pay. d. LIVING QUARTERS, FOOD, MEDICAL ATTENDANCE Labor Code Art. 148 BOARD, LODGING AND MEDICAL ATTENDANCE.The employer shall furnish the househelper, free of charge, suitable and sanitary living quarters as well as adequate food and medical attendance. Civil Code Art. 1689 Article 1689. Household service shall always be reasonably compensated. Any stipulation that household service is without compensation shall be void. Such compensation shall be in addition to the house helper's lodging, food, and medical attendance. e. TREATMENT Labor Code Art. 147 TREATMENT OF HOUSEHELPERSThe employer shall treat the househelper in a just and humane manner. In no case shall physical violence be used upon the househelper. Civil Code Art. 1694 Article 1691. If the house helper is under the age of eighteen years, the head of the family shall give an opportunity to the house helper for at least elementary education. The cost of such education shall be a part of the house helper's compensation, unless there is a stipulation to the contrary. g. TERM OF CONTRACT Labor Code Art. 142 Article 142. CONTRACT OF DOMESTIC SERVICE. The original contract of domestic service shall not last for more than two (2) years but it may be renewed for such periods as may be agreed upon by the parties. Civil Code Art. 1692 Article 1692. No contract for household service shall last for more than two years. However, such contract may be renewed from year to year. h. TERMINATION i. FIXED DURATION Labor Code Art. 149 Article 149. INDEMNITY FOR UNJUST TERMINATION OF SERVICES. If the period of household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term, except for a just cause. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned plus that for fifteen (15) days by way of indemnity. If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him or her not exceeding fifteen (15) days. Article 1694. The head of the family shall treat the house helper in a just and humane manner. In no case shall physical violence be used upon the house helper. f. ELEMENTARY EDUCATION Labor Code Art. 146 Article 146. OPPORTUNITY FOR EDUCATION. If the househelper is under the age of eighteen (18) years, the employer shall give him or her an opportunity for at least elementary education. The cost of education shall be part of the househelpers compensation, unless there is a stipulation to the contrary. Civil Code Article 1691

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Civil Code Art. 1699 Civil Code Art. 1697 Article 1697. If the period for household service is fixed neither the head of the family nor the house helper may terminate the contract before the expiration of the term, except for a just cause. If the house helper is unjustly dismissed, he shall be paid the compensation already earned plus that for fifteen days by way of indemnity. If the house helper leaves without justifiable reason, he shall forfeit any salary due him and unpaid, for not exceeding fifteen days. ii. NOT FIXED Labor Code Art. 150 Article 150. SERVICE OF TERMINATION NOTICE. If the duration of the household service is not determined either in stipulation or by the nature of the service, the employer or the househelper may give notice to put an end to the relationship five (5) days before the intended termination of the service. Civil Code Art. 1698 Article 1698. If the duration of the household service is not determined either by stipulation or by the nature of the service, the head of the family or the house helper may give notice to put an end to the service relation, according to the following rules: (1) If the compensation is paid by the day, notice may be given on any day that the service shall end at the close of the following day; (2) If the compensation is paid by the week, notice may be given, at the latest on the first business day of the week, that the service shall be terminated at the end of the seventh day from the beginning of the week; (3) If the compensation is paid by the month, notice may be given, at the latest, on the fifth day of the month, that the service shall cease at the end of the month. i. EMPLOYMENT CERTIFICATION Labor Code Art. 151 Article 151. EMPLOYMENT CERTIFICATION.Upon the severance of the household service relation, the employer shall give the househelper a written statement of the nature and duration of the service and his or her efficiency and conduct as househelper. Article 1699. Upon the extinguishment of the service relation, the house helper may demand from the head of the family a written statement on the nature and duration of the service and the efficiency and conduct of the house helper. j. EMPLOYMENT RECORDS Labor Code Art. 152 Article 152. EMPLOYMENT RECORD.The employer may keep such records as he may deem necessary to reflect the actual terms and conditions of employment of his househelper, which the latter shall authenticate by signature or thumbmark upon request of the employer. k. FUNERAL EXPENSES Civil Code Art. 1696 Article 1696. In case of death of the house helper, the head of the family shall bear the funeral expenses if the house helper has no relatives in the place where the head of the family lives, with sufficient means therefor. Omnibus Rules Book III, Rule XIII, Sec. 16 FUNERAL EXPENSES. In case of death of the househelper, the employer shall bear the funeral expenses commensurate to the standards of life of the deceased. l. HOUSEHOLD WORK: NON-HAZARDOUS WORK FOR PERSONS BETWEEN 15-18 YEARS Department Order 04-99. Sec. 3 to 4 Sec. 3. COVERAGE.The following work and activities are hereby declared hazardous to persons below 18 years of age without prejudice to Section 14, Article VIII of Republic Act No. 7610; to DOLE Memorandum Circular No. 2, Series of 1998 (Technical Guidelines for Classifying Hazardous and Non-Hazardous Establishments, Workplaces and Work Processes) and to other work and activities that may subsequently be declared as such: 1. Work which exposes children to physical, psychological or sexual abuse, such as in: lewd shows (stripteasers, burlesque dancers, and the like) cabarets bars (KTV, karaoke bars) dance halls bath houses and massage clinics

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escort service gambling halls and places agents, or to other dangerous chemicals including pharmaceuticals, such as in: manufacture or handling of pyrotechnics tanning pesticide spraying blacksmithing, hammersmiths, forging extracting lard and oil tiling and greasing of heavy machinery fiber and plastic preparing bleaching, dyeing, and finishing of textiles using chemicals embalming and as undertakers painting and as finishers in metal craft industries applying of adhesive/solvent in footwear, handicraft, and woodwork industries brewing and distilling of alcoholic beverages recycling of batteries and containers or materials used or contaminated with chemicals working in abattoirs or slaughterhouses garbage collecting handling of animal manure in poultry houses or as fertilizers (compost and other decaying matter included) in farming working in hospitals or other health care facilities assisting in laboratories and x-ray work welding working in furnaces and kilns working in discotheques working in video arcades 5. Work under particularly difficult conditions such as work for long hours or during the night, or work where the child is unreasonably confined to the premises of the employer. Sec. 4. APPLICABILITY OF THIS GUIDELINE TO DOMESTIC OR HOUSEHOLD SERVICE.Persons between 15 and 18 years of age may be allowed to engage in domestic or household service, subject in all cases to the limitations prescribed in Nos. 1 to 5 of Section 3 herein.

2. Work underground, under water, at dangerous heights or at unguarded heights of two meters and above, or in confined places, such as in: mining deep sea fishing/diving installing and repairing of telephone, telegraph and electrical lines; cable fitters painting buildings window cleaning fruit picking involving climbing 3. Work with dangerous machinery, equipment and tools, or which involves manual handling or transport of heavy loads, such as in: logging construction quarrying operating agricultural machinery in mechanized farming metal work and welding driving or operating heavy equipment such as payloaders, backhoes, bulldozers, cranes, pile driving equipment, trailers, road rollers, tractor lifting appliances scaffold winches, hoists, excavators and loading machines operating or setting motor-driven machines such as saws, presses, and wood -working machines operating power-driven tools such as drills and jack hammers stevedoring working in airport hangars working in warehouses working in docks 4. Work in unhealthy environment which may expose children to hazardous processes, to temperatures, noise levels or vibrations damaging to their health, to toxic, corrosive, poisonous, noxious, explosive, flammable and combustible substances or composites, to harmful biological

D. HOMEWORKERS SUMMARY: An industrial homeworker is anyone who performs in or about his home any processing of goods or materials, in whole or in part, for an employer or contractor. Materials may or may not be furnished by the employer or contractor. (DO No. 05; Formerly, under the Labor Code an employer furnishes materials directly or indirectly) Compared to regular factory production, industrial homework is a decentralized form of production where there is ordinarily very little supervision or regulation of methods of work. A homeworker's employer is any person who for his account or benefit, or that of any person outside the country, directly

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or indirectly or through an employee, agent contractor, sub-contractor or any other person: o delivers, or causes to be delivered any goods, articles or materials to be processed/fabricated in a home, which will then be disposed or distributed as per his directions sells any goods, articles or materials to be processed or fabricated in a home, and after which will rebuy them himself or through another person

The DOLE shall establish the standard output rate or standard minimum rate in appropriate orders for homeworkers' work or processing. The standard output or piece rates shall be determined through time and motion studies, individual or collective agreements and consultations with employers and workers organizations in a tripartite conference. Time and motion studies are undertaken by the DOLE Regional Offices with jurisdiction over the place where the homeworker's premises are. Piece rates established through time and motion studies conducted at the factory or employer's main site where the same activity is performed, shall be applicable to homeworkers. The Bureau of Working Conditions may be requested to provide assistance in conducting such studies. Upon receipt of the finished goods, the employer shall pay the homeworker/contractor/subcontractor his wages less SSS, MEDICARE (now Philhealth) and ECC premiums. An employer is solidarily liable in case of a contractor/subcontractors failure to pay the homeworkers wages. No deductions shall be made to the employers earnings for materials which have been lost, destroyed, soiled or otherwise damaged unless: o the homeworker is clearly responsible for the loss/damage o the homeworker is given reasonable opportunity to show cause why deductions should not be made o the amount to be deducted is fair, reasonable and not exceeding the actual loss or damage o the deduction does not exceed 20% of the homeworker's earnings in a week If the work is improperly executed, the employer may require the homeworker to redo it without having to pay the stipulated rate again. If any such goods or articles are returned for reasons attributable to the homeworker's fault, an employer, contractor or subcontractor need not pay the homeworker. Work on the following cannot be done on a homework basis: o explosives, fireworks and similar articles o drugs and poison o other articles which processing requires exposure to toxic substances The DOLE Regional Director has jurisdiction to hear and decide on complaints relating to homeworkers involving money claims of not more than P5,000, and must decide within 10 working days from receipt of the case. If the amount exceeds P5,000, the matter shall be endorsed to the appropriate NLRC Regional Arbitration Branch.

____________________________________________________________________________________________________________ D. HOMEWORKERS 1. COVERAGE AND REGULATION Labor Code Art. 153 to 155 Article 153. REGULATION OF INDUSTRIAL HOMEWORKERS. The employment of industrial homeworkers and field personnel shall be regulated by the government through the appropriate regulations issued by the Secretary of Labor and Employment to ensure the general welfare and protection of Article 154. REGULATIONS OF SECRETARY OF LABOR.The regulations or orders to be issued pursuant to this Chapter shall be designed to assure the minimum terms and conditions of employment applicable to the industrial homeworkers or field personnel involved. Article 155. DISTRIBUTION OF HOMEWORK.For purposes of this Chapter, the "employer" of homeworkers includes any homeworkers and field personnel and the industries employing them.

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person, natural or artificial who, for his account or benefit, or on behalf of any person residing outside the country, directly or indirectly, or through an employee, agent contractor, subcontractor or any other person: Delivers, or causes to be delivered, any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his directions; or Sells any goods, articles or materials to be processed or fabricated in or about a home and then rebuys them after such processing or fabrication, either by himself or through some other person. Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 1 GENERAL STATEMENT ON COVERAGE.This Rule shall apply to any homeworker who performs in or about his home any processing of goods or materials, in whole or in part, which have been furnished directly or indirectly by an employer and thereafter to be returned to the latter. 2. DEFINITION Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 2. DEFINITIONS.--As used in this Rule, the following terms shall have the meanings indicated hereunder: (a) "Industrial Homework" is a system of production under which work for an employer or contractor is carried out by a homework at his/her home. Materials may or may not be furnished by the employer or contractor. It differs from regular factory production principally in that, it is a decentralized form of production where there is ordinarily very little supervision or regulation of methods of work. (b) "Industrial Homeworker" means a worker who is engaged in industrial homework. (c) "Home" means any room, house, apartment or other premises used regularly, in whole or in part, as dwelling place, except those situated within the premises or compound of an employer, contractor or subcontractor and the work performed therein is under the active or personal supervision by or for the latter. (d) "Employer" means any natural or artificial person who, for his own account or benefit, or on behalf of any person residing outside the Philippines, directly or indirectly, or through any employee, agent, contractor, subcontractor, or any other person: (1) delivers or causes to be delivered any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his direction; or (2) sells any goods, articles or materials for the purpose of having such goods or articles processed in or about a home and then repurchases them himself or through another after such processing. (e) "Contractor" or "subcontractor" means any person who, for the account or benefit of an employer, delivers or causes to be delivered to a homeworker goods or articles to be processed in or about his home and thereafter to be returned, disposed of or distributed in accordance with the direction of the employer. (f) "Processing" means manufacturing, fabricating, finishing, repairing, altering, packing, wrapping or handling in any way connected with the production or preparation of an article or material. (g) "Cooperative" is an association registered under the Cooperative Code of the Philippines. (h) "Department" means the Department of Labor and Employment. 3. REGISTRATION a. HOMEWORKERS ORGANIZATION b. EMPLOYER 4. CONDITIONS OF EMPLOYMENT a. STANDARD OUTPUT/MINIMUM RATES Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 7 STANDARD RATES.--At the initiative of the Department or upon petition of any interested party, the Secretary of Labor and Employment or his authorized representative shall establish the standard output rate or standard minimum rate in appropriate orders for the particular work or processing to be performed by the homeworkers. The standard output rates or piece rates shall be determined through any of the following procedures: (a) time and motion studies;

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(b) an individual/collective agreement between the employer and its workers as approved by the Secretary or his authorized representative; (c) consultation with representatives of employers and workers organizations in a tripartite conference called by the Secretary. The time and motion studies shall be undertaken by the Regional Office having jurisdiction over the location of the premise/s used regularly by the homeworker/s. However, where the job operation or activity is being likewise performed by regular factory workers at the factory or premises if the employer, the time and motion studies shall be conducted by the Regional Office having jurisdiction over the location of the main undertaking or business of the employer. Piece rates established through time and motion studies conducted at the factory or main undertaking of the employer shall be applicable to the homeworkers performing the same job activity. The standard piece rate shall be issued by the Regional Office within one month after a request has been made at said office. Upon request of the Regional Office, the Bureau of Working Conditions shall provide assistance in the conduct of such studies. Non-compliance with the established standard rates can be the subject of complaint which shall be filed at the Regional Office. b. WAGE DEDUCTIONS Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 6. PAYMENT FOR HOMEWORK.--Immediately upon receipt of the finished goods or articles, the employer shall pay the homeworker or the contractor or subcontractor, as the case may be, for the work performed less corresponding homeworkers' share of SSS, MEDICARE and ECC premium contributions which shall be remitted by the contractor/subcontractor or employer to the SSS with the employers' share. However, where payment is made to a contractor or subcontractor, the homeworker shall likewise be paid immediately after the goods or articles have been collected from the workers. c. DEDUCTIONS FOR MATERIALS Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 8. DEDUCTIONS.--No employer, contractor, or subcontractor shall make any deduction from the homeworker's earnings for the value of materials which have been lost, destroyed, soiled or otherwise damaged unless the following conditions are met: (a) the homeworker concerned is clearly shown to be responsible for the loss or damage; (b) the homeworker is given reasonable opportunity to show cause why deductions should not be made; (c) the amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage; and (d) the deduction is made at such rate that the amount deducted does not exceed 20% of the homeworker's earnings in a week. d. IMPROPERLY EXECUTED WORK Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 9 CONDITIONS FOR PAYMENT OF WORK. (a) The employer may require the homeworker to redo the work which has been improperly executed without having to pay the stipulated rate again. (b) An employer, contractor, or subcontractor need not pay the homeworker for any work which has been done on goods and articles which have been returned for reasons attributable to the fault of the homeworker. 5. JOINT AND SEVERAL LIABILITY OF EMPLOYER/CONTRACTOR Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 11 DUTIES OF EMPLOYER, CONTRACTOR AND SUBCONTRACTOR.--Whenever an employer shall contract with another for the performance of the employer's work, it shall be the duty of such employer to provide in such contract that the employees or homeworkers of the contractor and the latter's subcontractor shall be paid in accordance with the provisions of this Rule. In the event that such contractor or subcontractor fails to pay the wages or earnings of his employees or homeworkers as specified in this Rule, such employer shall be jointly and severally liable with the contractor or subcontractor to the workers of the latter, to the same extent that such work is performed under such contract, in the same manner as if the employees or homeworkers were directly engaged by the employer. The employer, contractor or subcontractor shall assist the

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homeworkers in the maintenance of basic safe and healthful working conditions at the homeworkers' place of work. 6. PROHIBITIONS Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 13. PROHIBITIONS FOR HOMEWORK.--No homework shall be performed on the following: (1) explosives, fireworks and articles of like character; (2) drugs and poisons; and (3) other articles, the processing of which requires exposure to toxic substances. 7. ENFORCEMENT Department Order No. 5, now in the Omnibus Rules Book III, Rule XIV, Sec. 10. ENFORCEMENT POWER.--The Regional Director shall have the power to order and administer compliance with the provisions of the law and regulations affecting the terms and conditions of employment of homeworkers and shall have the jurisdiction in cases involving violations of this Rule. Complaints for violations of labor standards and the terms and conditions of employment involving money claims of homeworkers in an amount of not more than P5,000 per homeworker shall be heard and decided by the Regional Director. He shall have the power to order and administer; after due notice and hearing, compliance with the provisions of this Rule. In cases where the findings of the Regional Office show that the money claims due a homeworker exceed P5,000, the same shall be endorsed to the appropriate Regional Arbitration Branch of the National Labor Relations Commission. Non-compliance with the order issued by the Regional Director can be the subject of prosecution in accordance with the penal provisions of the Labor Code. In cases of disagreement between the homeworker and the employer, contractor, or subcontractor on a matter falling under this Rule, either party may refer the case to the Regional Office having jurisdiction over the workplace of the homeworker. The Regional Office shall decide the case within ten (10) working days from receipt of the case. Its decision shall be final and executory.

9. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY SUMMARY: First-Aid Treatment The employer has the responsibility to: 1. Keep first-aid medicines and equipment in his establishment 2. Take steps for the training of a sufficient number of employees in first-aid treatment

Emergency Medical and Dental Services When Required: #of EEs 50-200 ER is required to provide For hazardous workplaces: Services of a fulltime registered nurse. For non-hazardous workplaces: Services of a graduate first-aider, where no registered nurse is available Services of a full-time registered nurse, a part-time physician and dentist, an emergency clinic Services of a full-time physician, dentist, and a full-time registered nurse, dental clinic, an infirmary/emergency hospital with 1 for every 100 EEs

200-300

300+

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Required hours of services of physician/dentist: o For Hazardous work-places: at least 2 hours for part-time at least 8 hours for full-time o For Non-Hazardous work-places: may be engaged on a retained basis When Not Required: (requisites) 1. 2. o In case there is a hospital or dental clinic accessible from the establishment ER makes arrangement for the use of his employees necessary beds and dental facilities IRR: the existing hospital should be within 5km from the workplace OR is accessible within 25 minutes of travel

Hazardous workplaces 1. Physically, psychologically, and sexually abusive to children 2. Underground, underwater, confined or at dangerous height or at least 2 meters of unguarded height 3. With dangerous machinery which involves manual handling of heavy loads 4. Unhealthy environment

Occupational Health and Safety: Enforcement of the following is task of DOLE: set and enforce mandatory occupational safety and health standards update existing programs conduct research training programs administration of safety and health laws

____________________________________________________________________________________________________________ 9. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY A. COVERAGE Omnibus Rules Book IV, Rule I, Sec.1 COVERAGE This Rule shall apply to all employers, whether operating for profit or not, including the Government and any of its political subdivisions and government-owned or controlled corporations, which employs in any workplace one or more workers. B. FIRST AID TREATMENT Labor Code, Art. 156 FIRST-AID TREATMENT. Every employer shall keep in his establishment such first-aid medicines and equipment as the nature and conditions of work may require, in accordance with such regulations as the Department of Labor and Employment shall prescribe. C. EMERGENCY MEDICAL AND DENTAL SERVICES 1. When Required Labor Code Art. 157 EMERGENCY MEDICAL AND DENTAL SERVICES. It shall be the duty of every employer to furnish his employees in any locality with free medical and dental attendance and facilities consisting of: The services of a full-time registered nurse when the number of employees exceeds fifty (50) but not more than two hundred (200) except when the employer does not maintain hazardous workplaces, in which case, the services of a graduate first-aider shall be provided for the protection of workers, where no registered nurse is available. The Secretary of Labor and Employment shall provide by appropriate regulations, the services that shall be required where the number of employees does not exceed fifty (50) and shall determine by appropriate order, hazardous workplaces for purposes of this Article; The services of a full-time registered nurse, a part-time physician and dentist, and an emergency clinic, when the number of employees exceeds two hundred (200) but not more than three hundred (300); and The services of a full-time physician, dentist and a full-time registered nurse as well as a dental clinic and an infirmary or emergency hospital with one bed capacity for every one

52
hundred (100) employees when the number of employees exceeds three hundred (300). In cases of hazardous workplaces, no employer shall engage the services of a physician or a dentist who cannot stay in the premises of the establishment for at least two (2) hours, in the case of those engaged on part-time basis, and not less than eight (8) hours, in the case of those employed on fulltime basis. Where the undertaking is non-hazardous in nature, the physician and dentist may be engaged on retainer basis, subject to such regulations as the Secretary of Labor and Employment may prescribe to insure immediate availability of medical and dental treatment and attendance in case of emergency. (As amended by Presidential Decree NO. 570-A, Section 26) ESCASINAS v. SHANGRI-LAS MACTAN ISLAND RESORT FACTS: Registered nurses filed a complaint with the NLRC Regional Arbitration Board against Doctor-employer who maintains a clinic at Shangri-Las Mactan Island Resort, for regularization, underpayment of wages, and non-payment of th holiday/night shift/13 month pay. HELD: Art. 157 doesnt require the engagement of full-time nurses as regular employees of a company employing not less than 50 workers. Thus, the nurses are not under Shangri-La but under the employ of the doctor, who was an independent contractor. 2. When Not Required Labor Code Art. 158 WHEN EMERGENCY HOSPITAL NOT REQUIRED. The requirement for an emergency hospital or dental clinic shall not be applicable in case there is a hospital or dental clinic which is accessible from the employers establishment and he makes arrangement for the reservation therein of the necessary beds and dental facilities for the use of his employees. D. EMPLOYER ASSISTANCE OBLIGATION Labor Code Art. 161 ASSISTANCE OF EMPLOYER. It shall be the duty of any employer to provide all the necessary assistance to ensure the adequate and immediate medical and dental attendance and treatment to an injured or sick employee in case of emergency. E.OCCUPATIONAL SAFETY AND HEALTH STANDARDS, TRAINING OF SUPERV./TECH. 1. When Required Omnibus Rules Impl. Labor Code, Book IV, Rule II, Sec. 5 (a) (d) TRAINING OF PERSONNEL IN SAFETY AND HEALTH Every employer shall take steps to train a sufficient number of his supervisors or technical personnel in occupational safety and health. An employer may observe the following guidelines in the training of his personnel: (a) In every non-hazardous establishment or workplace having from fifty (50) to four hundred (400) workers each shift, at least one of the supervisors or technical personnel shall be trained in occupational health and safety and shall be assigned as part-time safety man. Such safety man shall be the secretary of the safety committee. (d) In every hazardous establishment or workplace having over two hundred (200) workers each shift, at least two of its supervisors or technical personnel shall be trained and one of them shall be appointed full-time safety man and secretary of the safety committee therein. 2. When Not Required Omnibus Rules. Impl. Labor Code, Book IV, Rule II, Sec. 5 (e) TRAINING OF PERSONNEL IN SAFETY AND HEALTH Every employer shall take steps to train a sufficient number of his supervisors or technical personnel in occupational safety and health. An employer may observe the following guidelines in the training of his personnel: (e) The employment of a full-time safety man not be required where the employer enters into a written contract with a qualified consulting organization which shall develop and carry out his safety and health activities; Provided, That the consultant shall conduct plant visits at least four (4) hours a week and is subject to call anytime to conduct accident investigations and is available during scheduled inspections or surveys by the Secretary of Labor and Employment or his authorized representatives. F. ENFORCEMENT/DOLE OBLIGATIONS Labor Code, Art. 162 to 165 SAFETY AND HEALTH STANDARDSThe Secretary of Labor and Employment shall, by appropriate orders, set and enforce mandatory occupational safety and health standards to eliminate or reduce occupational safety and health hazards in all workplaces and institute new, and update existing, programs to ensure safe and healthful working conditions in all places of employment.

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The fee so collected shall be deposited in the national treasury to the credit of the occupational safety and health fund and shall be expended exclusively for the administration and enforcement of safety and other labor laws administered by the Department of Labor and Employment. DOLE Memo. Circ. No. 2, S 98 The memo provides the technical guidelines for Hazardous/Non-hazardous establishments. The following are classified into hazardous establishments: 1. Work which exposes children to physical, psychological or sexual abuse (i.e. Bars, cabarets) 2. Work underground, under water, at dangerous heights or at unguarded heights of two meters and above, or in confined places (i.e. mining) 3. Work with dangerous machinery, equipment and tools, or which involves manual handling or transport of heavy loads, such as in (i.e. construction) 4. Work in unhealthy environment which may expose children to hazardous processes, to temperatures, noise levels or vibrations damaging to their health, to toxic, corrosive, poisonous, noxious, explosive, flammable and combustible substances or composites, to harmful biological agents, or to other dangerous chemicals including pharmaceuticals Full text: http://www.bwsc.dole.gov.ph/bwscweb/files/DO4%20s_199 9.pdf

RESEARCH It shall be the responsibility of the Department of Labor and Employment to conduct continuing studies and research to develop innovative methods, techniques and approaches for dealing with occupational safety and health problems; to discover latent diseases by establishing causal connections between diseases and work in environmental conditions; and to develop medical criteria which will assure insofar as practicable that no employee will suffer impairment or diminution in health, functional capacity, or life expectancy as a result of his work and working conditions. TRAINING PROGRAMS The Department of Labor and Employment shall develop and implement training programs to increase the number and competence of personnel in the field of occupational safety and industrial health. ADMINISTRATION OF SAFETY AND HEALTH LAWS The Department of Labor and Employment shall be solely responsible for the administration and enforcement of occupational safety and health laws, regulations and standards in all establishments and workplaces wherever they may be located; however, chartered cities may be allowed to conduct industrial safety inspections of establishments within their respective jurisdictions where they have adequate facilities and competent personnel for the purpose as determined by the Department of Labor and Employment and subject to national standards established by the latter. The Secretary of Labor and Employment may, through appropriate regulations, collect reasonable fees for the inspection of steam boilers, pressure vessels and pipings and electrical installations, the test and approval for safe use of materials, equipment and other safety devices and the approval of plans for such materials, equipment and devices.

III. Employee Classification SUMMARY: Regular Employees: a. Engaged in performing activities which are usually necessary or desirable in the usual business or trade of the employer Has rendered at least 1 year of service, whether continuous or broken with respect to the activity in which he is employed

b.

As to Learners: if worked the first 2 months, deemed as regular employees if training is terminated before the end of the stipulated through no fault of the learner As to Seafarers: not covered by the term regular employment under Art. 280. They are considered contractual employees whose rights and obligations are governed by POEA rules and RA8042.(Dante Dela Cruz v. Maersk Filipinas Crewing)

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EXCEPTION: Project, Seasonal, and Fixed-term employees perform jobs which are usually necessary and desirable in the usual business or trade but are NOT considered as regular EEs Project Employment: employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee Time is not a controlling but rather a strong factor in its determination.(Tomas Lao Construction v. NLRC) Becomes a regular employee when: 1. There is a continuous rehiring of project EEs even after a cessation of a project for the same tasks or nature of tasks The tasks performed by the alleged EE are vital, necessary and indispensable to the usual business or trade of the employer

2.

Seasonal Employment: where the job, work or service to be performed is seasonal in nature and the employment is for the duration of the season Off-season, the EE-ER relationship is not severed; the seasonal EE is merely considered on leave of absence without pay (Phil Tobacco v. NLRC) Becomes a regular employee when: 1. When there is a reasonable connection between the particular activity performed by the EE in relation to the usual trade or business of the ER Seasonal workers who are repeatedly engaged to perform the same tasks for more than one season

2.

Fixed-term Employment: does not become a regular employee because employment is co-terminus with a specific period of time Valid so long as the stipulations of the contract are not contrary to law, morals, good customs, public order, and public policy Where there was a successive renewals of fixed-period contracts and there is a reasonable connection between the particular activity performed by the employees in relation to the usual business or trade of the employer, the fixed-term employees are considered to be regular (Lynvil Fishing Enterprises Inc. v. Andres G. Ariola)

Casual Employees: activities performed not necessary or desirable in the usual trade or business. To become regular employees: 1. 1 year service, continuous or broken 2. with respect to activity employed 3. employment shall continue while such activity exists

Probationary Employment: Characteristics: 1. 2. 3. It is an employment for a trial period It is a temporary employment status prior to regular employment It arises through a contract, with the ff.

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a. b. c. d. e. The employee must learn and work at a particular type of work Such work calls for certain qualifications The probation is fixed The employer reserves the power to terminate during or at the end of the trail period If the employee has learned the job to the satisfaction of the ER, he becomes a regular

The employer determines his fitness to qualify for regular employment based on reasonable standards made known to him at the time of engagement; where there are no standards know to the EE at the time, he is regarded as a regular ( Tamson's Enterprises Inc. v. CA) Duration: shall not exceed 6 months from the date the EE started working, subject to extension by agreement of a longer period by EE and ER. After 6 months, EE becomes regular by operation of law Exceptions: 1. 2. 3. 4. When it is covered by an apprenticeship agreement stipulating a longer period When the parties to the employment contract agree otherwise When same is established by company policy When same is required by the nature of work

Probationary EEs are protected by security of tenure, BUT may be terminated at any time before the expiration of the probationary period, due to 1. Just cause 2. Failure to meet the standards for qualifications for a regular employment

Termination of probationary EEs must still be subject to procedural due process

____________________________________________________________________________________________________________ III. EMPLOYEE CLASSIFICATION 1. COVERAGE Labor Code Art. 278 COVERAGE The provisions of this Title shall apply to all establishments or undertakings, whether for profit or not. 2. EMPLOYEE CLASSIFICATION Labor Code, Art. 280 to 281 Article 280. REGULAR AND CASUAL EMPLOYEES The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be perAn employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. Article 281. PROBATIONARY EMPLOYMENT Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee. a. EMPLOYER RECOGNITION ROMARES v. NLRC formed is seasonal in nature and the employment is for the duration of the season.

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FACTS: Complainant mason was hired by company in its Maintenance/Projects/Engineering Department for a total service more than 1 year, but was terminated. Company says his services were not continuous and his contract was no longer renewed. HELD: He is a regular employee, falling under Art. 280(2), as he rendered work "usually necessary or desirable in the usual business or trade of the employer." The limited period of employment specified in his employment contract which terminates the contract after 2-3 months should, therefore, be struck down as contrary to public or morals. b. EMPLOYER DETERMINATION/RESIGNATION PHIL. FEDERATION, ETC. v. NLRC FACTS: After going on leave, EE discovered that she had been replaced, and accepted the position of Regional Field Officer, which required her to be under probation for 6 months. She was allowed to continue working, but after her second contract, she was dismissed. Her contract stipulated that she was to be hired for a fixed period but at the same time she would be a project employee. HELD: The contract, being ambiguous, was interpreted in her favor. The Court held that probationary employees are also entitled to security of tenure, and Victoria became a regular employee when she was allowed to work after the probationary period. Her dismissal was illegal. A. REGULAR EMPLOYEES Labor Code Art. 280-281 Article 280. REGULAR AND CASUAL EMPLOYEES The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. Article 281. PROBATIONARY EMPLOYMENT Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee. Labor Code Art. 75 LEARNERSHIP AGREEMENT Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include (d) 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. Omnibus Rules Book VI, Rule 1, Sec, 5 (a) (b) and 6 (a) REGULAR EMPLOYMENT The provisions of written agreements to the contrary notwithstanding and regardless of oral agreements of the parties, employment shall be deemed regular for purposes of Book VI of the Labor Code where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the job, work or service to be performed is seasonal in nature and the employment is for the duration of the season. (b) CASUAL EMPLOYMENT There is casual employment where an employee is engaged to perform a job, work or service which is merely incidental to the business of the employer, and such job, work or service is for a definite period made known to the employee at the time of engagement: provided, that any employee who has rendered at least one year of service, whether such service is continuous or not, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

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Notwithstanding the foregoing distinctions, every employee shall be entitled to the rights and privileges, and shall be subject to the duties and obligations, as may be granted by law to regular employees during the period of their actual employment. PROBATIONARY EMPLOYMENT There is probationary employment where the employee, upon his engagement, is made to undergo a trial period during which the employer determines his fitness to qualify for regular employment based on reasonable standards made known to him at the time of engagement. Probationary employment shall be governed by the following rules: (a) Where the work for which an employee has been engaged is learnable or apprenticeable in accordance with the standards prescribed by the Department of Labor and Employment. The period of probationary employment shall be limited to the authorized learnership or apprenticeship period, whichever is applicable. (b) Where the work is neither learnable nor apprenticeable, the period of probationary employment period shall not exceed six (6) months reckoned from the date the employee actually started working. (c) The services of an employee who has been engaged on probationary basis may be terminated only for a just or authorized cause, when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer. (d) In all cases of probationary employment, the employer shall make known to the employee the standards under which he will qualify as a regular employee at the time of his engagement. Where no standards are made known to the employee at that time, he shall be deemed a regular employee. 1. NATURE OF WORK 4. REPEATED RENEWAL OF CONTRACT DANTE D. DELA CRUZ v. MAERSK FILIPINAS CREWING INC. FACTS: Employees was hired by Elite Shipping as third engineer for nine months for its vessel, and was later deployed abroad. The chief engineer informed him of his dissatisfaction of employee's performance and told him that if he did not improve, he will be signed off according to the CBA. All these were written in the ships logbook. Nine days later Dante was informed of his discharge. HELD: Seafarers are not covered by the term regular employment under Art. 280. They are considered contractual employees whose rights and obligations are governed by POEA rules and RA8042.Nevertheless, he was illegally BETA ELECTRIC CORP. v. NLRC FACTS: Employee was hired as a clerk typist by the co. for one year but was extended 5 times and was thereafter terminated from work without notice/investigation HELD: Employee was a regular employee and the fact that her employment has been a contract-to-contract basis cannot alter the character of employment. At most she was a probationary employee who became a regular after 6 months by operation of law. The job of typist-clerk is far from being specific or seasonal, but rather, one, according to the discharged as the logbook entries did not substantially comply with the first notice, or the written notice of charge(s)and the particular acts or omissions for which petitioner was charged. 2. ART. 280: WHEN APPLICABLE ATOK BIG WEDGE CO. INC. v. JESUS P. GIRON FACTS: Giron was engaged as part-time consultant on retainer basis by the company. He asked the co.to cause his registration with the SSS but the latter did not accede because he was only a retainer/consultant. Giron filed a complaint with SSS, but later he was terminated. HELD: There was no employer-employee relationship as their relationship did not satisfy the 4-fold test. Art. 280 was not applicable, as it is not the yardstick for determining the existence of employee-employer relationship but merely distinguishes between 2 kinds of employees. 3. EXTENDED PERIOD TOMAS LAO CONSTRUCTION v. NLRC FACTS: Employees were construction workers working simultaneously under 3 entities managed by 1 family. They terminated after they refused to sign employment contract forms and clearances expressly describing them as project employees. HELD: The repeated re-hiring and the continuing need for their services over a long span of time (the shortest, at 7 years) made them regular employees, showing that they are an integral part of a work pool managed by the Lao Group of Companies. The test is whether the project employees are assigned to carry out specific project or undertaking, the duration (and scope) of which are specified at the time the employees are engaged for the project. Time is not a controlling but rather a strong factor in its determination.

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Code, where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business. B. PROJECT EMPLOYEES Labor Code, Art. 280(1) Article 280. REGULAR AND CASUAL EMPLOYEES The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. Policy Instructions No. 20 of 1997 Defines project employees as those employed in connection with a particular construction project, and non-project employees as those employed by a construction company without reference to any particular project. Full text: http://www.chanrobles.com/POLICY%20INSTRUCTIONS%20N O.%2020-76.pdf D.O. No. 19 of 1993 Amended Policy Instruction No. 20 of 1997 Requirements for Project Employees: a. Specific project phase thereof stated in the employment contract b. Estimated date of completion of project or phase thereof likewise stated in the contract c. Employee must have been dismissed ever after completion of his project or phase (gaps must be shown in his lengths of service) d. There must be a report to the DOLE of his dismissal on account of completion of contract Full text: http://www.chanrobles.com/DEPARTMENT%20ORDER%20N O.%2019-93,%20April%201,%201993.pdf 1. DEFINITION HANJIN HEAVY INDUSTRIES AND CO. v. IBANEZ FACTS: Employees were members of a work pool which Hanjin drew workers for its construction projects, but were terminated while it still had projects in progress and were replaced by new employees. Company claims that employees were project employees. HELD: Hanjin failed to prove with sufficient evidence that Ibanez et al were project employees; thus they were ruled regular employees who were illegally dismissed. Hanjin didn't have an agreement with the employees assigning them to carry out a "specific project/undertaking," and it didn't inform them of the nature of their work at the time of hiring. While the absence of a written contract did not automatically confer regular status, it had been construed by the courts as a red flag in cases involving the question of if the workers concerned were regular or project. 2. PROJECT EMPLOYMENT VILLA v. NLRC FACTS: National Steel Corporation had a 5-year expansion program which was phased out and caused the laborers hired for the project to be terminated. Before the phasing out, the union already filed against NSC unfair labor practices consisting of non-regularization of contractual employees and illegal termination of employees. HELD: The workers were not regular employees. They were hired contractual project employees, and thus the regularization under Art280 does not extend to them, only to casual employees, despite that they performed activities which were necessary and desirable to the usual business of the NSC.

WILLIAM UY CONSTRUCTION CORP. v. TRINIDAD FACTS: Employee worked as a driver for a construction corp. which did not rehire him after the completion of one of its projects. He claims illegal dismissal, having worked for the company for each of its 35 projects over the 16 years he worked for them. HELD: He was not a regular employee despite that he was constantly rehired, as what is determinative was whether he has been assigned to carry out a specific project or undertaking within the duration specified at the time his service is contracted, not the duration of service. Therefore, he was still a project employee and not illegally dismissed.

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3. APPLICATION OF RULE IN NON-CONSTRUCTION INDUSTRIES MARAGUINOT v. NLRC FACTS: Employees of Viva Films were terminated after they refused to sign a blank employment contract. Viva Films claim that employees were hired as project employees of the associate producers who act as independent contractors, wherein there is no employee-employer relationship between the employees and Viva. HELD: They were not project employees, because the relationship between Viva and its assoc. producers is that of agency, and the relationship between the employees and the producers is actually between Viva being the direct employer of the employees. They were considered regular employees by virtue of Art280, and thus were illegally dismissed because the completion of project is not a valid cause for dismissal. C. CASUAL EMPLOYEES Labor Code, Art. 280(2) An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. Omnibus Rules, Book VI, Rule 1, Sec, 5. (b) CASUAL EMPLOYMENT There is casual employment where an employee is engaged to perform a job, work or service which is merely incidental to the business of the employer, and such job, work or service is for a definite period made known to the employee at the time of engagement: provided, that any employee who has rendered at least one year of service, whether such service is continuous or not, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists. 1. NATURE OF WORK MARANAW HOTELS & RESORT CORP. v. CA FACTS: Employee was hired by Maranaw, but was subsequently transferred to MANRED, which is a labor-only contractor providing Maranaw with personnel. After she filed for regularization against Maranaw, she was terminated. HELD: Maranaw is the real employer, as Maranaw and MANDRED's agreement is a mere ploy to circumvent regularization. Since she is a regular employee, and dismissal was without just cause, she was illegally dismissed. 2. ONE YEAR SERVICE MERCADO v. NLRC FACTS: Laborers worked as agricultural workers for a definite period of time (anihan season) but they have been hired numerous times before by Cruz. They were claiming that they are regular employers. HELD: Art.280 cannot be applied in this case because it only applies to casual employees and not project employees. D. FIXED TERM EMPLOYEES BRENT SCHOOL v. ZAMORA FACTS: The athletic director of Brent was under a 5-year contract, and when he was terminated under said period, he protested, arguing that his services were necessary and desirable in the usual business of his employer, and his employment had lasted for five years, he had acquired the status of a regular employee and could not be removed except for valid cause. HELD: There was no prohibition in the Civil Code, the ruling law at the time, against term-or fixed-period employment. Thus, it was perfectly legitimate for Brent and Zamora to include in the contract a stipulation fixing the duration thereof Stipulations for a term were explicitly recognized as valid by this Court. LYNVIL FISHING ENTERPRISES INC. v. ANDRES G. ARIOLA FACTS: Employees were engaged on a per-trip basis which terminates at the end of each trip. Respondent employees were accused of selling fishes without the knowledge of employer, and were thus terminated. Employer claims that dismissal of employees was not illegal because the employees were engaged on a per-trip basis and their employment ends after each trip. HELD Employees are considered regular employees under Art. 280(2), and as such, they were not given a final termination notice, violating the dual-notice requirement and therefore were illegally dismissed. E. SEASONAL EMPLOYEES PHILIPPINE TOBACCO. v. NLRC

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FACTS: Philippine Tobacco did not rehire the Lubat group for the '94 tobacco season without any authorized or just cause, and terminated the Luris group, saying it was transferring its operations. In defense, ER said the Lubat group was not entitled to separation, and on the computation thereof, said that theirs was proper computation given EEs were seasonal only and did not work the year round. HELD: The Lubat group were considered regular employees, as seasonal worker employed and repeatedly hired in a business enterprise sufficiently proves the necessity and indispensability of her services to the employers business or trade. They were merely on leave after each season. Thus they were illegally dismissed. As to separation pay of seasonal employees, at least 6 months shall be considered 1 whole year. F. PROBATIONARY EMPLOYEES Labor Code Art. 75 Labor Code Art. 281 PROBATIONARY EMPLOYMENT Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee. Labor Code, Art. 61, 2
ND

(b) Where the work is neither learnable nor apprenticeable, the period of probationary employment period shall not exceed six (6) months reckoned from the date the employee actually started working. (c) The services of an employee who has been engaged on probationary basis may be terminated only for a just or authorized cause, when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer. (d) In all cases of probationary employment, the employer shall make known to the employee the standards under which he will qualify as a regular employee at the time of his engagement. Where no standards are made known to the employee at that time, he shall be deemed a regular employee.

LEARNERSHIP AGREEMENT Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include (d) 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. 1. DEFINITION/PURPOSE

sentence ESPINA v. CA

CONTENTS OF APPRENTICESHIP AGREEMENTS The period of apprenticeship shall not exceed six months. Omnibus Rules, Book VI, Rule 1, Sec, 6. PROBATIONARY EMPLOYMENT There is probationary employment where the employee, upon his engagement, is made to undergo a trial period during which the employer determines his fitness to qualify for regular employment based on reasonable standards made known to him at the time of engagement. Probationary employment shall be governed by the following rules: (a) Where the work for which an employee has been engaged is learnable or apprenticeable in accordance with the standards prescribed by the Department of Labor and Employment. The period of probationary employment shall be limited to the authorized learnership or apprenticeship period, whichever is applicable.

FACTS: All of M.Y. Sans employees were terminated due to the sale of M.Y. San to respondent Monde. Monde subsequently hired some of M.Y. Sans terminated employees (including petitioners) as probationary employees. Petitioners were terminated on various dates. Petitioners filed complaint for illegal dismissal and underpayment HELD: Termination of employment is under management prerogatives, which under Art281 should be for a just cause or failure to qualify to a reasonable standard. In this case, Monde exercised in good faith its management prerogative as there is no dispute that petitioners had been habitually absent, neglectful of their work, and rendered unsatisfactory service, to the damage and prejudice of the company. ROBINSONS GALLERIA ET. AL v. RANCHEZ FACTS: Ranchez was a probationary employee of Robinsons. She was constructively dismissed before the lapse of the probationary period due to an amount of money she lost. No

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proper investigation was conducted by Robinsons regarding the incident. HELD: A probationary employee, like a regular employee, enjoys security of tenure and must be given due process before being dismissed. Since Ranchez was not accorded with due process with regard to her dismissal, she was illegally dismissed by Robinsons. 2. DURATION: RULE/EXCEPTION CATHAY PACIFIC AIRWAYS LTD. v. MARIN FACTS: A probationary employee was terminated for being too chatty/noisy/gossipy during office hours. He filed a complaint for illegal dismissal HELD: There was no illegal dismissal. The employee may be terminated at any time before the completion of the period, if for just cause, or at the end of the period the employment contract shall be treated as simply having expired if the employer finds the employees job performance unsatisfactory. CANADIAN OPPORTUNITIES UNLIMITED INC. v. BART Q. DALANGING FACTS: Probationary EE was terminated barely four weeks after hiring due to his insistent refusal to attend a seminar and his violations of company policies. HELD: His dismissal from employment was valid and based on substantial evidence which the EE did not even deny. The company, however, failed to follow the procedural requirement in the IRR of giving the notice within a reasonable time before the effective date of separation; therefore, it must pay nominal damages to EE. 3. EXTENSION OF CONTRACT LA SALLETE OF SANTIAGO INC. v. NLRC PHIL. FEDERATION ETC. v. NLRC FACTS: After going on leave, EE discovered that she had been replaced, and accepted the position of Regional Field Officer, which required her to be under probation for 6 months. She was allowed to continue working, but after her second contract, she was dismissed. Her contract stipulated that she was to be hired for a fixed period but at the same time she would be a project employee. HELD: The contract, being ambiguous, was interpreted in her favor. The Court held that probationary employees are also entitled to security of tenure, and Victoria became a regular employee when she was allowed to work after the probationary period. Her dismissal was illegal. FACTS: Javier was the HS Principal of La Sallete Santiago and at the same time a part-time professor at the Graduate School and College Department of La Salette College. She was then replaced as HS principal but was retained as part time professor. Clarita sued for illegal dismissal. HELD: Javier had acquired security of tenure as a teacher but she had not acquired security of tenure as HS principal. There is a distinction between teaching staff and department head and official. The teaching staff is entitled to tenure while acquisition of additional tenure of teachers appointed to serve as administrative officials is not. HELD: The 2 EEs could not be considered probationary employees because they were already well-trained in their respective functions. Also, records failed to establish that the respondents' position were identical with those existing in CSCI, it even kept the 2 in its employ for 6months without the issue of redundancy. Illegal dismissal exists in this case. 5. STANDARDS TO QUALIFY AS A REGULAR EMPLOYEE TAMSONS ENTERPRISES INC. v. CA & ROSEMARIE L. SY FACTS: Company's assistant to the President was terminated verbally four days before her sixth month probationary period ended because of her alleged incompetence. HELD: Termination was unjust, as proof of incompetence in form of appraisal reports and evaluation were not presented. The standards must have been clearly laid down to the probationary employee before employment. Not having been informed of the standards, EE was deemed to be hired as a regular employee since day one. Termination must be done in good faith, not to circumvent the law on regularization of employees. 6. PRIVATE SCHOOL TEACHERS- RULE 4. ABSORBED EMPLOYEES CEBU STEVEDORING CO. INC. v. REGIONAL DIRECTOR FACTS: All the EEs of CCAS were absorbed by CSCI after the latter was abolished pursuant to a Customs Administrative Order. Later, Respondents were dismissed by CSCI without prior clearance, allegedly for redundancy. One of Cebu Stevedoring's defenses was that respondents were probationary EEs, and that the former had the right to terminate before the 6-month period.

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ST. PAUL COLLEGE, QUEZON CITY ET. AL v. REMIGIO & CYNTHIA ANCHETA FACTS: Sps. Ancheta were probationary employees of SPCQC. After two school years, their employment contracts were no longer renewed. They challenged their dismissal. HELD: Following the provisions of the Manual of Regulations for Private Schools, the non-renewal of their contracts was considered valid. The provisions of the Labor Code on valid and just cause for dismissal were also satisfied.

IV. TERMINATION OF EMPLOYMENT A. GENERAL CONCEPTS SUMMARY: General Concepts 1. Coverage apply to all establishments or undertakings, whether for profit or not. 2. Security of Tenure Labor Code, Art 279. SECURITY OF TENURE. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. Notes: On regular employment in Art. 279 Maam says the Constitution makes no distinction. Everyone has a right to security of tenure. Probationary employees, while not enjoying a permanent status, are still entitled to security of tenure. They may only be terminated for valid and just cause OR for failing to qualify as regular employees in accordance with reasonable standards made known to them by the employer at the time of engagement and after being accorded due process. [Espina v CA] An employer may only terminate the services of an employee for either on these grounds: a) Just causes (as listed in Art 282) grounds attributable to fault of employee b) Authorized causes (Art 283) not attributable to fault of employee but are business related causes c) Other causes like disease, enforcement of union security clause in CBA, dismissal of union officers due to strike and union members for participating in the commission of illegal acts illegal

*For probationary employees, there is an additional ground for termination: if employee fails to qualify as a regular employee in accordance with reasonable standards made known to him at the time of his engagement. Normal consequences of unjust dismissal: 1. Reinstatement without loss of seniority rights 2. Full backwages with allowances and other benefits from the time compensation was withheld up to the time of actual reinstatement. 2 written notices to be given to employee:

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1. statement of causes of termination employee is being charged with 2. decision to dismiss the employee a. Nature of Right/ Rationale b. Management prerogative Transfer of employees, phase out of department, and consequent reduction of personnel and reorganization as a labor and cost saving device are recognized management prerogative. The exercise of such management prerogative to advance the employers interest and not to defeat tenurial rights of employees should be upheld. Not all labor disputes must be resolved in favor of labor. c. Requisites for Lawful Dismissal: Concurrence of Substantive and Procedural Due Process Substantive The dismissal should be based on just/authorized cause. Procedural - In dismissing an employee, the employer has the burden of proving that the dismissed worker has been served two notices: (1) inform outright the employee that an investigation will be conducted on the charges specified in such notice which, if proven, will result in dismissal, and (2) inform employee of employers decision to term inate him. Rationale for 1 notice: afford the employee an opportunity to avail all defenses and exhaust all remedies to refute the allegations against him. e. Guide in the Disposition of Labor Disputes While it is true that compassion and human consideration should guide the disposition of cases involving termination of employment since it affects one's source or means of livelihood, it should not be overlooked that the benefits accorded to labor do not include compelling an employer to retain the services of an employee who has been shown to be a gross liability to the employer. The law in protecting the rights of the employees authorizes neither oppression nor self-destruction of the employer. It should be made clear that when the law tilts the scale of justice in favor of labor, it is but a recognition of the inherent economic inequality between labor and management. The intent is to balance the scale of justice; to put the two parties on relatively equal positions. There may be cases where the circumstances warrant favoring labor over the interests of management but never should the scale be so tilted if the result is an injustice to the employer. [PLDT v Balbastro as cited in Mansion Printing] f. Normal Consequences of Illegality of Dismissal 1. Reinstatement without loss of seniority rights 2. Full backwages with allowances and other benefits from the time compensation was withheld up to the time of actual reinstatement *When reinstatement is no longer viable as an option, separation pay equivalent to 1 month salary for every year of service should be awarded as an alternative. [DOCTRINE OF STRAINED RELATIONS] f. Burden of proof As provided in Art 277(b), the burden of proving that the termination was for a valid or authorized cause shall rest on the employer. If the employer is not able to adduce substantial evidence that the employees dismissal is for a just or authorize cause, th ere will be a finding of illegal dismissal. g. Measure of Penalty Penalty imposed on employee should be commensurate with infraction.
st

____________________________________________________________________________________________________________

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IV. TERMINATION OF EMPLOYMENT A. GENERAL CONCEPTS 1. COVERAGE appropriate official of the Department of Labor and Employment before whom such dispute is pending that the termination may cause a serious labor dispute or is in implementation of a mass lay-off. (As amended by Section 33, Republic Act No. 6715, March 21, 1989) ESPINA v. CA Labor Code. Art 278 COVERAGE. The provisions of this Title shall apply to all establishments or undertakings, whether for profit or not. Book VI, Rule I, Sec. 1. The provisions of this Title shall apply to all establishments or undertakings, whether for profit or not. 2. SECURITY OF TENURE FACTS: All of respondent M.Y.Sans employees were terminated due to the sale of M.Y. San to respondent Monde. Monde subsequently hired some of M.Y. Sans terminated employees as probationary employees. Petitioners were terminated on various dates and filed a complaint for illegal dismissal and underpayment. HELD: Probationary employees, while not enjoying a permanent status, are still entitled to security of tenure. They may only be terminated for valid and just cause OR for failing to qualify as regular employees in accordance with reasonable standards made known to them by the employer at the time of engagement and after being accorded due process. a. Nature of Right/Rationale ALAHAMBRA INDUSTRIES v. NLRC FACTS: Danilo Rupisan, an accountant, was found to have violated company rules. As a result, he was suspended and finally terminated. LA found there was just cause for termination but his right to due process was violated. HELD: Alhabra is liable for damages for not according Rupisan due process. A termination without just cause entitles a worker to reinstatement regardless of whether he was accorded due process. However, a termination for just cause, even without due process, does not warrant reinstatement but raises liability for damages. b. Management Prerogative PANTOJA v. SCA HYGIENE PRODUCTS FACTS: Pantoja was hired as a utility man in paper mill 4. He was ordered to transfer to paper mill 5 under the same terms and conditions of employment in anticipation of the eventual closure and permanent shutdown of paper mill 4. He rejected this offer for his transfer and his position was declared redundant. HELD: SCA acted in good faith when it gave the workers an option to be transferred without any diminution in rank and pay before resorting to retrenchment. Its exercise of such management prerogative to advance its interest and not to defeat tenurial rights of employees should be upheld.

Labor Code. Art 279 SECURITY OF TENURE. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989) Labor Code, Art. 277 (b). Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of the dispute in the event of a prima facie finding by the

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c. Requisites for Lawful Dismissal: Concurrence of Substantive and Procedural Due Process COCA-COLA BOTTLERS v. VALENTINA GARCIA FACTS: Coca-Cola adopted some modernization programs which resulted in redundancy. It decided to transfer Garcia from Tacloban to Iloilo. She refused and persisted in reporting in Tacloban and guard refused her entry. She filed a complaint for illegal dismissal. HELD: In dismissing an employee, the employer has the burden of proving that the dismissed worker has been served two notices: (1) inform the EE of the particular acts/omissions for which the ER seeks his dismissal, and (2) inform EE of ERs decision to terminate him. Coca-Cola failed to satisfy the 2notice requirement before dismissing an employee. Maquiling v. Phil tuberculosis Society- Rationale for first notice (inform outright the employee that an investigation will be conducted on the charges specified in such notice which, if proven, will result in dismissal): afford the employee an opportunity to avail all defenses and exhaust all remedies to refute the allegations against him. d. Guide in the Disposition of Labor Disputes MANSION PRINTING CENTER v. DIOSDADO BITARA FACTS: Bitara was dismissed because of habitual tardiness. (late 19 out of 47 times and absent for 19 out of 66 working days) HELD: To validly dismiss an employee, an employer was required to observe both substantive and procedural due process the termination must be based on a just/authorized cause and it must be done after due notice and hearing. In this case, the dismissal is valid. Mansion Printing complied with both substantive and procedural due process. While it is true that compassion and human consideration should guide the disposition of cases involving termination of employment since it affects one's source or means of livelihood, it should not be overlooked that the benefits accorded to labor do not include compelling an employer to retain the services of an employee who has been shown to be a gross liability to the employer. [cited PLDT v Balbastro] e. Normal Consequences of Illegality of Dismissal Labor Code. Art 279 SECURITY OF TENURE. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989) GOLDEN ACE BUILDERS & AZUL v. TALDE FACTS: Talde is a carpenter in Golden Ace. After 9 years of work, the owner stopped giving work assignments to Talde. He filed a complaint for illegal dismissal. HELD: He was illegally dismissed. Golden Ace failed to adduce substantial evidence to prove that construction projects are no longer available. Talde is entitled to backwages and separation pay, as his reinstatement has been rendered impossible due to strained relations. The normal consequences of illegal dismissal are 1) reinstatement without loss of seniority rights and 2) payment of backwages computed from the time compensation was withheld up to the date of actual reinstatement. When reinstatement is no longer viable as an option, separation pay equivalent to 1 month salary for every year of service should be awarded as an alternative. [DOCTRINE OF STRAINED RELATIONS] f. Burden of Proof Labor Code, Art. 277 (b) The burden of proving that the termination was for a valid or authorized cause shall rest on the employer. FUNCTIONAL INC. v. SAMUEL GRANFIL FACTS: Granfil was terminated on the basis of an incident report by the security guard. FI asserts that Granfil abandoned his employment after he was transferred from his assignment in NBS Megamall as a consequence of NBSs request for relief. HELD: Granfil was illegally dismissed. The burden of proof in illegal dismissal cases is on the employer which in this case FI failed to discharge. PEPSI-COLA PRODUCT PHIL. INC. v. E. V. SANTOS FACTS: Santos was charged with violations of company rules and regulations and also serious misconduct or willful

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disobedience to lawful orders of employer. He was eventually dismissed. HELD: In illegal dismissal cases, the onus probandi rests on the employer to prove that dismissal of an employee is for a valid cause. Here, Pepsi failed to present evidence to justify Santos dismissal. g. Measure of Penalty JACKQUI MORENO v. SAN SEBASTIAN COLLEGE-RECOLETOS HELD: No, she should be reinstated. The penalty of dismissal is too harsh and unreasonable. At most, a 1 year suspension with warning would be sufficient. NAGKAKAISANG LAKAS NG MANGGAGAWA SA KEIHIN v. KEIHIN PHIL. CORP. FACTS: Helen stole a packing tape from the Keihin and was terminated due to the offense. HELD: Penalty of dismissal is commensurate to the infraction. In resolving the case, court considered the circumstances in the case (company is trying to curb pilferation etc.)

FACTS: Moreno was employed as a faculty member in SSC-R. She engaged in unauthorized teaching assignments in other schools which caused her dismissal. ____________________________________________________________________________________________________________ B. TERMINATION OF EMPLOYMENT BY EMPLOYEE

SUMMARY: 1. Resignation o The voluntary act of an employee who finds herself in a situation where she believes that personal reasons cannot be sacrificed in favor of the exigency of the service and that she has no other choice but to disassociate herself from employment. To constitute resignation, there must be intent to relinquish the post accompanied by overt acts of relinquishment a. With just cause [Art 285(b), LC] o An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes:

i. ii. iii.

Serious insult by the employer or his representative on the honor and person of the employee; Inhuman and unbearable treatment accorded the employee by the employer or his representative; Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and Other causes analogous to any of the foregoing.

iv.

b. Without just cause [Art 285(a)] o Employee must serve written notice on the employer at least one month in advance. Otherwise, employee can be held liable in damages. This will also prejudice the interests of the employer. Maam Daways example: Ayoko na makita mukha ng boss ko.

2. Performance of Military or Civic Duty

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o In this case, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty. Payment of wages of the employee as well as the grant of other benefits and privileges while he is on a military or civic duty shall be subject to special laws and decrees and to the applicable individual or collective bargaining agreement and voluntary employer practice or policy.

3. Forced Resignation o Does not include being given an option to resign.

____________________________________________________________________________________________________________ B. TERMINATION OF EMPLOYMENT BY EMPLOYEE 1. RESIGNATION GLOBE TELECOM v. CRISOLOGO FACTS: Crisologo is a lawyer employed by Globe who resigned because working might endanger her pregnancy. She submitted a resignation letter, but when her boss told her of rumors circulating about her in the office, she asked to confront the people behind it. Later, she demanded that her name be cleared, but when Globe refused to act on it, she filed a case for illegal dismissal, saying that she was forced to resign. HELD: She voluntarily resigned from her job, the letter of resignation being sufficient proof, and that her being coerced was contrary to logic because she was a lawyer. RESIGNATION is the voluntary act of an employee who finds herself in a situation where she believes that personal reasons cannot be sacrificed in favor of the exigency of the service and that she has no other choice but to disassociate herself from employment. NATIONWIDE SECURITY AND ALLIED SERVICES, INC. v. VALDERAMA FACTS: Security Guard Valderama claims that he had not been given a reassignment for more than 6 months. HELD: He was constructively dismissed by Nationwide since the latter could not submit proof for their claim that Valderama had voluntarily resigned. Nationwide failed to present Valderamas letter. Burden of proving that employee intended to sever employer-employee relationship is on the employer. MA. JOY TERESA O. BILBAO v. SAUDI ARABIAN AIRLINES FACTS: Bilbao was hired as a Flight Attendant by Saudi. She was ordered to transfer from Manila to Jeddah due to operational requirements. She initially complied with this but, HELD: She voluntarily resigned. Her resignation letter and undertaking evidencing her receipt of separation pay, when taken together with her educational attainment and the circumstances surrounding the filing of the complaint for illegal dismissal, comprise substantial proof of Bilbao's voluntary resignation. a. JUST CAUSES Labor Code, Art. 285 (b). An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes: 1. Serious insult by the employer or his representative on the honor and person of the employee; 2. Inhuman and unbearable treatment accorded the employee by the employer or his representative; 3. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and 4. Other causes analogous to any of the foregoing. Book VI, Rule I, Sec. 11. Termination of employment by employee. The just causes for putting an end to the employer-employee relationship by the employee shall be those provided in Article 286 of the Labor Code. b. WITHOUT JUST CASE REQUISITES Labor Code, Art. 285(a). after a week, she opted to resign by tendering a resignation letter.

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An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages. Const. Art. III, Section 18. (2) No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted. AZCOR v. NLRC FACTS: Capulso got sick, went for a leave. After recuperating, he was not allowed to go back to work. The petitioners (two companies which said that he was not their employee anymore at the time of dismissal) alleged he resigned and worked for the other company. HELD: Capulso illegally dismissed. To constitute resignation, there must be an intent to relinquish the post accompanied by overt acts of relinquishment. In this case, no overt acts were shown. APRIME SECURITY SERVICES, INC. v. NLRC FACTS: Moreno was dismissed because he was caught sleeping on post and he had a fight with another guard. HELD: The infractions committed by respondent Moreno were merely first offenses, and not punishable by dismissal. They were not valid grounds for terminating his employment. Moreno was also not given a chance to contest his dismissal. He was deprived of his opportunity to be heard. 2. PERFORMANCE OF MILITARY OR CIVIC DUTY Labor Code, Art. 286. WHEN EMPLOYMENT NOT DEEMED TERMINATED. The bonafide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty. Book VI, Rule I, Sec. 12. SUSPENSION OF PAYMENT The employer-employee relationship shall be deemed suspended in case of suspension of operation of the business or undertaking of the employer for a period not exceeding six (6) months, unless the suspension is for the purpose of defeating the rights of the employees under the Code, and in case of mandatory fulfillment by the employee of a military or civic duty. The payment of wages of the employee as well as the grant of other benefits and privileges while he is on a military or civic duty shall be subject to special laws and decrees and to the applicable individual or collective bargaining agreement and voluntary employer practice or policy. 3. FORCED RESIGNATION MA. SOCORRO MANDAPAT v. ADD FORCE PERSONNEL SERVICES, INC. FACTS: Mandapat committed numerous infractions and was preventively suspended. She tendered her resignation in protest of preventive suspension meted on her and subsequently filed a case for illegal dismissal. She claimed that the company forced her to resign by baiting her with promise to separation pay. HELD: At most, she was merely given the option to either resign or face disciplinary investigation, which APSI had every right to conduct in light of the numerous infractions committed by Mandapat. There is nothing irregular in providing an option to her. Ultimately, the final decision on whether to resign or face disciplinary action rests on petitioner alone.

C. TERMINATION OF EMPLOYMENT BY EMPLOYER

SUMMARY OF OUTLINE: (in BOLD are the grounds for dismissal of an employee by employer) 1. Substantive Requirements Just Causes a. Basis Employer Right b. Employers Right to Dismiss vis--vis Employees Right to Security of Tenure

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c. Just Causes 1) (i)Serious Misconduct (ii) Willful disobedience 2) Gross and Habitual Neglect of Duties 3) Loss of Trust and Confidence 4) Commission of Crime 5) Analogous Causes d. Other Causes 1) Abandonment 2) Courtesy Resignation 3) Change of Ownership 4) Habitual absenteeism/tardiness 5) Past Offenses 6) Habitual Infractions 7) Immorality 8) Conviction/Commission of a Crime 9) Qualification Requirements e. Constructive Dismissal f. Temporary Off-Detail or floating status g. Transfer/Reassignment of Work h. Promotion i. Preventive Suspension 2. Substantive Requirements Business Related Causes a. Basis Employers Right b. Business-related or Authorized Causes 1) Installation of Labor Saving Devices 2) Retrenchment to Prevent Losses 3) Redundancy 4) Closure of Business 5) Temporary Closure/Bona Fide Suspension of Operations 3. Disease 4. Enforcement of Union Security Clause in the CBA 5. Illegal Strike/Illegal Acts

1. Substantive Requirements Just Causes SUMMARY: a) Basis Employer Right: a measure of self-protection Sec. 3 of Art. XIII of the Consti states that the State shall promote the principle of shared responsibility between workers and employers. The State (Constitution, Labor Code) not only protects the laborer or employee but also capital or the employer, for the sake of both social justice and economics.

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As a measure of self-protection against acts inimical to its interest, a company has the right to dismiss its erring employees (Yabut v MECO). The employer has a right to dismiss employees for valid causes after proper observance of due process (infra): o Just causes (Art. 282) o Authorized causes (Art. 283) o Disease (Art. 284) b) Right to Dismiss vis--vis Right to Security of Tenure Employers have the right to shape their work force and have management prerogative, but this must not curtail the employees' right to security of tenure. There should be a valid and lawful reason for termination. There must be a balancing of interests, and whichever is just (dismissal or upholding security of tenure) should prevail.

c)

Just Causes Requisites 1)(i) Serious misconduct requisites: i. it must be serious; ii. it must relate to the performance of the employee's duties; and iii. it must show that the employee has become unfit to continue working for the employer. - Use of accusatory language/gross discourtesy 1)(ii) Willful disobedience (insubordination) requisites: i. the employee's assailed conduct must have been willful, that is characterized by a wrongful and perverse attitude; and the order violated must have been reasonable, lawful, made known to the employee and must pertain to the duties which he had been engaged to discharge.

ii.

2) Gross and Habitual Neglect of Duties In order to constitute a just cause for the employees dismissal, the neglect of duties must not only be gross but also habitual. Gross negligence connotes want of care in the performance of ones duties, while habitual neglect implies repe ated failure to perform ones duties for a period of time, depending on the circumstances (PNB v Padpao). a) Respondeat superior (command responsibility) o Managerial employees may be held liable for negligence in the performance of managerial duties on the principle of command responsibility.

b) Gross v simple negligence

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o Gross negligence: want or absence of or failure to exercise slight care or diligence, or the entire absence of care. It evinces a thoughtless disregard of consequences without exerting any effort to avoid them.

3) Loss of Trust and Confidence Premised on the fact that an employee concerned holds a position where greater trust is place by management and from whom greater fidelity to duty is expected. This includes managerial personnel entrusted with confidence on delicate matters. The betrayal of this trust is the essence of the offense for which an employee is penalized. In the case of managerial employees, the mere existence of a basis for believing that such employee has breached the trust of the employer would suffice as a ground for valid dismissal. With respect to rank-and-file employees, loss of trust and confidence as a ground for valid dismissal requires proof of involvement in the alleged events. Mere accusations by the employer will not be sufficient.

4) Commission of a Crime Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives.

5) Analogous Causes (examples) Unreasonable behavior and unpleasant deportment (Cathedral School of Technology v NLRC). Gross inefficiency (Lim v NLRC).

d) Other Causes Other causes is different from analogous causes under Art. 282(e). Again, in an illegal dismissal case, the onus probandi rests on the employer to prove that the dismissal was for a valid cause. As with all cases of termination of employment by the employer, the employer must observe due process (that is, the right of the employee to be heard). Valid causes other than those in Art. 282 are: 1) Abandonment a. Requisites of abandonment: i. The employee failed to work without justifiable or valid reason. ii. There is clear INTENTION to sever the employer-employee relationship. b. Failure to report to work (even after a notice from the employer is received ordering the return) does NOT necessarily constitute abandonment if the aforementioned requisites concur.

2) Courtesy Resignation a. b. Resignation, by definition, is a VOLUNTARY relinquishment of a position. If an employer requests for a courtesy resignation and the employee voluntarily complies, this is valid.

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c. However, if an employee is compelled to resign, this is not voluntary. Adding the word courtesy changes nothing. It is illegal dismissal.

3) Change of Ownership a. b. When there is change/transfer of ownership, the new owner has NO legal duty to absorb the old employees. Change of ownership must be bona fide (i.e. genuine) and in good faith.

4) Habitual absenteeism/tardiness a. b. Employers should not need to tolerate absenteeism/tardiness from its employees. It is a form of neglect of duty. It is inimical to the general productivity and business of the employer.

5) Past Offenses a. b. General rule: Past offenses may NOT be considered in dismissal. Exception: Past offenses may be used as additional ground for dismissal if such infractions are related to the subsequent offense.

6) Habitual Infractions a. Employers have the prerogative to prescribe reasonable rules and regulations necessary/proper the conduct of its business. Employers may provide disciplinary measures to implement these rules. It is the duty of the employee to yield obedience to all reasonable rules, orders, and instructions of the employer. Repeated infractions justifies dismissal. Willful/intentional disobedience also justifies dismissal.

b. c. d. e.

7) Immorality a. While immorality is not listed n Art. 282, it may be appreciated as a cause for dismissal, on case to case basis, such as: i. When it is expressly stipulated in the companys policy handbook, code of conduct, or the like. This so -called immorality clause is valid. ii. With school personnel (including but not limited to teachers), who stand in loco parentis to their students and have the duty to display exemplary behavior even in their personal business (Santos v NLRC). 8) Conviction/Commission of a Crime a. b. Only substantial evidence is required in order for this to be a valid cause for dismissal. When the dismissal is declared illegal, but the employee is convicted for the cause of the dismissal in a separate criminal case (both being final and executory), the judgment of the preceding illegal dismissal case may be disturbed, because the conviction in the criminal case is considered a SUPERVENING CAUSE. (See Sampaguita Garments v NLRC)

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9) Qualification Requirements a. The State may exercise its police power to reasonably regulate the constitutional right to security of tenure (the State must balance the two). Especially true in professions requiring scientific/technical knowledge. When the State prescribes a qualification requirement for a certain profession, failure to comply may merit the termination of employment.

b. c.

e. Constructive Dismissal Constructive dismissal exists when the employee quits either: a) When employment is rendered impossible, unreasonable, or unlikely, or

b) Because of a DEMOTION in rank or DIMUNITION of salary or benefits. Demotion does not contemplate temporary assignments/positions, which do not have tenurial security. More than 6 months off-detail or floating status is considered constructive dismissal (see below).

f. Temporary Off-detail or floating status Maximum period: 6 months. If more than 6 months, it is constructive dismissal. Allowable if done in good faith. There is good faith when there really is no available position.

g. Transfer/Reassignment of work Management has the prerogative to transfer or reassign employees PROVIDED that there be: a) No demotion in rank

b) No diminution of salary, benefits, and privileges; c) Action not motivated by discrimination;

d) Not made in bad faith; e) Not effected as a form of punishment or demotion without sufficient cause.

The burden of proving the above belongs to the employer.

h. Promotion Refers to a vertical movement in position or rank. Does not necessarily come with an increase of salary and benefits. An employee may not be compelled to accept a promotion. Nor can an employee be promoted without his consent. Refusal cannot be considered insubordination or wilful disobedience.

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i. Preventive Suspension There is no specific rule that governs. Cases regarding preventive suspension may rely on jurisprudence, since the applicable rules were repealed and not replaced. Jurisprudence (see above) repeatedly upholds the repealed section on the reason allowed for preventive suspensions: the employee may be placed on preventive suspension if his continued employment poses a serious and imminent threat to the life or property of the employer or of his co-workers.

____________________________________________________________________________________________________________ C. TERMINATION OF EMPLOYMENT BY EMPLOYER 1. SUBSTANTIVE REQUIREMENTS JUST CAUSES Labor Code Art. 282. TERMINATION BY EMPLOYER - An employer may terminate an employment for any of the following causes: a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; b) Gross and habitual neglect by the employee of his duties; c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative; d) Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and e) Other causes analogous to the foregoing. Labor Code, Art. 279. SECURITY OF TENURE - In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full back wages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989) Labor Code, Art. 277 (b). MISCELLANEOUS PROVISIONS - Subject to the constitutional right of workers to security of tenure and their right to be a. BASIS EMPLOYER RIGHT: A MEASURE OF SELF-PROTECTION Constitution, Art. XIII, Section 3, pars. 3 and 4 (3) The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. (4) The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. GILLES v. CA, SCHEMA KONSULT protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor Relations Commission. The burden of proving that the termination was for a valid or authorized cause shall rest on the employer. The Secretary of the Department of Labor and Employment may suspend the effects of the termination pending resolution of the dispute in the event of a prima facie finding by the appropriate official of the Department of Labor and Employment before whom such dispute is pending that the termination may cause a serious labor dispute or is in implementation of a mass lay-off. (As amended by Section 33, Republic Act No. 6715, March 21, 1989)

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FACTS: Gilles had a 2-year contract to be a Water Systems/Irrigation Engineer in India. This was arranged for by Schema Konsult (of which he was also an executive), pursuant to a contract with Danish company, which in turn was contracted by Aquatic Farms, Ltd.the company which actually had the primary contract with the Indian government. Four months after arriving in Delhi, Gilles resigned from work and left for the Philippines. He claimed that he was overworked and did not receive his salary for 3 months, and that SKI had made him feel abandoned. HELD: He was constructively dismissed. Constructive dismissal exists when the employee resigns due to the harsh, hostile and unfavorable conditions set by the employer. NORMAN YABUT v. MECO FACTS: Yabut was a Meralco employee charged with inspecting and testing customers meters, among others. He was found to have an illegal service connection (jumper) in his house, for which he was dismissed. He alleged illegal dismissal. HELD: Dismissal was valid, as his acts constituted serious misconduct which fell squarely within the just causes for dismissal listed in Art. 282. Dismissal of a dishonest employee is to the best interest not only of the management but also of labor. As a measure of self-protection against acts inimical to its interest, a company has the right to dismiss its erring employees. An employer cannot be a compelled to continue employing someone who is guilty of acts inimical to the employers interest, justifying loss of confidence in him. b. EMPLOYERS RIGHT TO DISMISS VIS--VIS EMPLOYEES RIGHT TO SECURITY OF TENURE ALERT SECURITY & INVESTIGATION AGENCY, INC v. SAIDALI PASAWILAN et. al. FACTS: Underpaid guards were relieved from their posts at DOST after filing a complaint for money claims. Said guards were not given new assignments, so they filed a complaint for illegal dismissal. HELD: They were illegally dismissed. Employers have the right to shape their work force and have management prerogative, but this must not curtail the employees' right to security of tenure. There should be a valid and lawful reason for termination. c. JUST CAUSES - REQUISITES 1) (i) SERIOUS MISCONDUCT LORES REALTY ENTERPRISES v. PACIA Labor Code, Art. 282(a) a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; MAPILI v. PHIL RABBIT BUS LINES FACTS: Mapili was caught by a field inspector extending a free bus ride to a passenger (third time violating the same company policy). As a result, PRBLI terminated his employment for committing a serious irregularity. HELD: The court found that his dismissal was proper because he committed the violation deliberately without regard to his responsibilities to the bus company. ABOC v. METROBANK FACTS: Aboc participated in a lending business while employed with Metrobank. Bank claims that Aboc used the equipment and facilities of the bank for said business. He was terminated. HELD: His termination was lawful; his acts amounted to serious misconduct or breach of trust and confidence. This finding was proved sufficiently by the bank. (i.a) USE OF ACCUSATORY LANGUAGE/ DISCOURTESY NISSAN MOTORS v. ANGELO FACTS: Angelo was not able to properly perform his payroll tasks for Nissan on several occasions. His letter of explanation was grossly discourteous. He was dismissed on the ground of serious misconduct, willful disobedience, and gross negligence. HELD: His dismissal is valid as all charges against him were proved. With regard to serious misconduct, it was shown through Angelo's explanation to Nissan on why he was not able to do his job properly, where he used discourteous and inappropriate language against the management. (ii) WILLFUL DISOBEDIENCE (INSUBORDINATION) Labor Code, Art. 282(a). a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;

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FACTS: Pacia was terminated due to willful disobedience when she did not immediately respond to the order to prepare a check in fulfillment of the companys obligation to BPI. She countered that she did not heed the command because she knew their account had no sufficient funds to answer for the check; thus, she delayed compliance so as not to make the company liable under the Bouncing Checks Law. HELD: This is not a case of willful disobedience since initial reluctance to follow the order had a valid reason. 2) GROSS AND HABITUAL NEGLECT OF DUTIES MECO v. BELTRAN Labor Code, Art. 282(b) b) Gross and habitual neglect by the employee of his duties; NATIONAL BOOK STORE v. CA FACTS: Private respondents counted and packed petitioners money, which was discovered to be short by P42,758.70 when re-counted the next day prior to being deposited. They were terminated for gross neglect of duty and loss of confidence. HELD: As regards the first ground, the Court found that respondents were not even remotely negligent in their duties to have caused the loss. In order to constitute a just cause for the employees dismissal, the neglect of duties must no t only be gross but also habitual. Assuming that the private respondents were indeed negligent in this case, it would only be a single or isolated act and hence, could not constitute a just cause for their dismissal. PNB v. PADAO FACTS: Padao, a credit investigator in PNB got involved in behest loan scandals and was dismissed from employment. HELD: Padao was dismissed on the ground of gross and habitual neglect of his duties. Gross negligence connotes want of care in the performance of ones duties, while habitual neglect implies repeated failure to perform ones duties for a period of time, depending on the circumstances. Gross negligence has been defined as the want or absence of or failure to exercise slight care or diligence, or the entire absence of care. It evinces a thoughtless disregard of consequences without exerting any effort to avoid them. 2.a RESPONDEAT SUPERIOR (COMMAND RESPONSIBILITY) JUMAD v. HI-FLYER FOOD FACTS: Lima Land found irregularities in their arriendo collections. They blamed Cuevas (Finance Manager) for it and dismissed her. HELD: She was illegally dismissed, as the loss of trust and confidence for rank-and-file employees required evidence of the employees involvement in the acts complained of, which was not present in this case. Lima Land had no proof that Cuevas had anything to do with the irregular collections. LOPEZ v. KEPPEL BANK PHIL FACTS: Lopez (bank manager) issued without authority 2 purchase orders for vehicles for a client. As a result, he was dismissed. HELD: Termination is justified by reason of loss of trust and confidence. As branch manager, he occupied a position of trust. The bank lost that trust in him when he defied its direct order on a matter of business judgment. FACTS: Beltran was not able to remit company fund promptly. The company considered this failure to remit payment as misappropriation of company funds. She was terminated. HELD: She was illegally dismissed. To justify removal from service, negligence must be gross and habitual. Beltrans single and isolated act of negligence cannot justify her dismissal from service. Such act did not result in any loss to Meralco. 3) LOSS OF TRUST AND CONFIDENCE Labor Code Art. 282(c) c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative; LIMA LAND v. CUEVAS FACTS: Pamela, manager of KFC, was dismissed because of several sanitation violations in the branch and also irregularities in accounts. HELD: Valid termination. She willfully breached her duties as to be unworthy of the trust and confidence of Hi-Flyer. On the principle of respondeat superior or command responsibility alone, Pamela may be held liable for negligence in the performance of her managerial duties. 2.b GROSS V. SIMPLE NEGLIGENCE

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YABUT v. MECO FACTS: A Meralco supervisory employee was found to have an illegal service connection (a.k.a. jumper) in his house. He was dismissed. HELD: Court found the said act to constitute serious misconduct which fell squarely within the just causes for dismissal under Art. 282. He used his knowledge as an employee to do the act. Supervisory positions require a higher degree of honesty, as they are positions of trust and confidence. 4) COMMISSION OF CRIME Labor Code Art. 282(d). d) Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; 5) ANALOGOUS CAUSES Labor Code Art. 282(e) (e) Other causes analogous to the foregoing. CATHEDRAL SCHOOL OF TECHNOLOGY v. NLRC FACTS: Vallejera was hired as a library aide of the school. Because of complaints of students and employees regarding her difficult personality, she was terminated. HELD: She was terminated for a just cause. The reason for which private respondents service were terminated unreasonable behavior and unpleasant deportment is analogous to other just causes enumerated under the Labor Code. LIM v. NLRC FACTS: Sixta Lim worked as an accountant for Pepsi. During a performance report, she was rated as being below target. She asked to be re-appraised on various grounds. However, she was still rated Below Target on re-appraisal. She then wrote to a Japanese Pepsi official. After this, she was asked to resign, and when she refused the offer, was verbally terminated. She eventually received a letter of termination after she filed a complaint for dismissal without due process, informing her that she was terminated for gross inefficiency. HELD: While gross inefficiency is a cause analogous to other just causes, Sixtas dismissal was null and void because (1) the Below Target rating is not a ground for dismissal under Pepsis management prerogatives, and (2) because the twonotice and hearing requirements required by due process were not followed. Sixta was thus illegally dismissed and entitled to separation pay. ST. LUKES MEDICAL CENTER v. FABRIGO FACTS: Fadrigo was dismissed on ground of willful breach of duty when she allowed a trainee and casual employee to man the WPO during official business hours and when she ignored management prerogative to immediately pull out the personnel involved in the incident. HELD: There is no finding of gross and habitual neglect of duties to warrant her dismissal. SLMC has not cited any specific policy prohibiting such assignment of casuals and trainees under pain of dismissal from employment. Fadrigos explanation fo such a situation reasonable, i.e., it is a practice resorted to due to lack of manpower and managements reluctance to hire regular employees. She also did not commit insubordination of willful and intentional character amounting to a wrongful and perverse attitude as would warrant the penalty of dismissal. d. OTHER CAUSES 1) ABANDONMENT EG&I CONST. CORP. v. SATO et. al FACTS: Workers were prohibited from entering the companys premises. However, employer claimed that the workers abandoned their jobs. HELD: In order for there to be abandonment, it is essential that (a) the employee failed to work without justifiable/valid reason and (b) there is clear intention to sever the employeremployee relationship. A failure to report to work after notice to return to work does not necessarily constitute abandonment. Employer must prove employees intent. MARIO DIMAGAN v. DACWORKS FACTS: Dimagan was a managerial employee. He was demoted to supervisor and again demoted to a mere technician. Dimagan said when he expressed concern, he was told not to report. HELD: There was no abandonment. Rather, there was constructive dismissal. Constructive dismissal is dismissal in disguise, i.e., when it is made to appear that there has been no dismissal. The burden to prove that there is valid dismissal is on the employer. Here, the reduction of responsibilities constituted a demotion in rank tantamount to constructive dismissal.

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2) COURTESY RESIGNATION BATONGBACAL v. ASSOCIATED BANK FACTS: The banks board of directors, in line with its reorganization plans, asked all managerial employees to submit their courtesy resignations. Batongbacal refused to do so and was subsequently terminated. HELD: The case was remanded to the NLRC to determine WON he was actually a managerial employee. As to the courtesy resignations, the bank in effect compelled employees to do something which they would not have voluntarily done. Resignation is voluntary relinquishment of a position. Adding the word courtesy does not change the essence of resignation. 3) CHANGE OF OWNERSHIP MANLIMOS v. NLRC FACTS: Petitioners/employees were terminated from work 3 months after a new owner acquired the company they worked for. They were rehired on a 6-month probationary contract, but were dismissed days before the probationary period expired. HELD: No illegal dismissal. There was a bona fide change in ownership. Thus, when such change/transfer in ownership is done in good faith, the transferee is under no legal duty to absorb the old employees. Here, the dismissal coincided with the expiration of the probationary contract. Hence, there was no violation of security of tenure. ELCEE FARMS INC. v. NLRC FACTS: Elcee Farms leased Hacienda Trinidad to Garnele, which in turn subleased it to HILLA. Under HILLAs management, the workers hired by Elcee were dismissed. HELD: Elcee held liable. An employer whose lease agreement had already expired was still required to pay separation pay due its former employees even if these employees were terminated by the new employer. Elcee showed bad faith in entering the lease with Garnele. 4) HABITUAL ABSENTEEISM/TARDINESS MANILA ELECTRIC CO. v. NLRC 6) HABITUAL INFRACTIONS FACTS: Cortez, a lineman for Meralco was suspended and penalized multiple times for being habitually absent and for abusing his sick leave. After an investigation, Meralco terminated his employment. GUSTILO v. WYETH PHIL. FACTS: Gustilo, a manager, repeatedly violated company rules and regulations. Tampering with a receipt, unauthorized HELD: Meralcos act of firing Cortez due to habitual absenteeism falls under the valid exercise of management prerogatives. As a public utility, Meralco should not tolerate absenteeism, as the employees job is of paramount importance and requires physical presence. R.B. MICHAEL PRESS v. NICASIO GALIT FACTS: In less than 2 years of employment, Galit was habitually late and absent without leave. When ordered to render OT service, he refused. HELD: There was just cause for termination of employment. Habitual tardiness/absenteeism is a form of neglect of duty. It is inimical to the general productivity and business of the employer. There was also willful disobedience since the 2 elements concur: (1) employees conduct must have been willful, that is, characterized by a wrongful and perverse attitude; and (2) the order violated must have been reasonable, lawful, and made known to the employee, and pertains to the duties which he had been engaged to discharge. 5) PAST OFFENSES CENTURY CANNING CORP. v. RAMIL FACTS: Ramil was alleged to have forged expense forms. Employer terminated him, citing previous offenses and violations as additional grounds for dismissal. Note that there was insufficient evidence to prove the forgery, and that the past offenses were not related to the forgery. HELD: General rule: An employer may NOT dismiss an employee based on past offenses. EXCEPTION: An employer may use past offenses as additional grounds for dismissal if such infractions are related to the subsequent offense. RAMORAN v. JARDINE CMG FACTS: Ramoran tampered with overtime slips to increase her overtime pay. She had previously been suspended for the falsification of documents. HELD: She had been warned that a repeat of the violation would lead to dismissal. The previous offense is related to the subsequent offense (see Century Canning) and can be used to support the existence of just cause and valid dismissal.

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uses of leaves and absences, failure and tardiness in submitting required reports, etc. He had previously been suspended. HELD: Valid dismissal. Gustilo was a habitual offender whose numerous contraventions of company rules has left the employer with no choice but to terminate his services. Employers have the prerogative to prescribe reasonable rules and regulations necessary/proper for the conduct of its business, and also, to provide certain disciplinary measures to implement them. It is the duty of the employee to yield obedience to all reasonable rules, orders, and instructions of the employer. Willful/intentional disobedience justifies dismissal. 7) IMMORALITY SANTOS v. NLRC FACTS: Santos, married, was a teacher who had an extramarital affair with a fellow teacher. HELD: Under the Manual of Regulations for Private Schools, which provides just cases additional to that in Art. 282 of the Labor Code, disgraceful or immoral conduct is a just cause for termination of employment of school personnel. Teachers stand in loco parentis to their students and must display exemplary behavior whether in official and personal conduct. 8) CONVICTION/COMMISSION OF A CRIME e. CONSTRUCTIVE DISMISSAL SAMPAGUITA GARMENTS CORP. v. NLRC FACTS: Emilia Santos was dismissed for alleged theft and 2 criminal actions were filed against her. In the criminal cases, she was found guilty (proof beyond reasonable doubt). However, the action for illegal dismissal was granted and she was ordered reinstated (it was held that there was no substantial evidence, which is lower than the quantum required in criminal cases). The problem arises as both cases became final and executory. HELD: Emilia should NOT be reinstated despite the final and executory reinstatement order. A final and executory judgment may be disturbed (only) for the correction of clerical errors or where supervening events render its execution impossible/unjust. Here, the conviction is a supervening event which would render reinstatement unjust. BUGHAW JR. v. TREASURE ISLAND INDUSTRIAL FACTS: Bughaw was implicated in the use of shabu during working hours by a co-employee who had been arrested. He ELSA MALIG-ON v. EQUITABLE GENERAL SERVICES FACTS: Elsa, a janitress, was told that she would be assigned to another client. 8 months later, the company told her that she would have to resign before being transferred. She resigned, but was never transferred. HELD: First of all, the very off-detailing or placing an employee on floating status for more than 6 months is considered as constructive dismissal. Furthermore, she only resigned because she was tricked into doing so. WILLIAM BARROGA v. DATA CENTER COLLEGE OF THE PHIL. FACTS: Barroga, a professor in Data Center College, complained of constructive dismissal, claiming that his assignment to another branch as a regular teacher was: (a) demotion tantamount to constructive dismissal (he claimed was already a Head for Education in the current branch) and (b) there would be a diminution of benefits since he previously had a board and lodging allowance when he was temporarily assigned in Vigan as an exchange teacher. was initially placed under preventive suspension, but was terminated after failing to attend the administrative hearing. HELD: There is valid cause for dismissal. The use of drugs inside company premises and during working hours constitutes serious misconduct under the just causes (Art. 282). Here, the employer observed due process and was willing to hear the side of Bughaw, but Bughaw failed to appear. 9) QUALIFICATION REQUIREMENTS ST. LUKES MEDICAL CENTER EMPLOYEES ASSOCIATION AFW v. NLRC FACTS: Congress passed a law requiring that all x-ray technologists obtain a proper certificate of registration. Many years (and numerous warnings) had passed. HELD: The sole cause for the dismissal was her failure to pass the board exam, which is a precondition for securing the required registration. While workers have the right to security of tenure, this may be reasonably regulated pursuant to the police power of the State, such as, in cases of learned professions requiring scientific/technical knowledge wherein an examination maybe be required as a prerequisite. The continued violation of hiring a worker without the mandatory registration could have resulted in the suspension of the hospitals license.

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HELD: No constructive dismissal. Constructive dismissal exists when the employee quits when employment is rendered impossible, unreasonable, or unlikely, or because of a DEMOTION in rank or DIMUNITION of pay. On demotion, his position as the Head for Education was clearly temporary. Hence, it carries with it no tenurial security. On the diminution of pay, it was shown that the allowance was only for the temporary assignment as per the contract of the tieup/program with the school there. Furthermore, it is the management prerogative of the school to transfer employees on just and valid grounds. f. TEMPORARY OFF-DETAIL OR FLOATING STATUS NIPPON HOUSING PHIL. &/or Y. KAWATA v. MAIAH ANGELA LEYNES FACTS: Leynes went on an emergency leave of absence to coordinate with her lawyer regarding her resignation, but she eventually wanted to return to work. However, there was already a replacement and there were no other jobs available, so she was placed on floating status. HELD: Nippon was not in bad faith when they placed her in floating status. She was the one who threatened to resign. Nippon had nowhere else to assign her and a replacement had already been hired. No constructive dismissal. g. TRANSFER/REASSIGNMENT OF WORK i. PREVENTIVE SUSPENSION PHARMACIA & UPJOHN v. ALBAYDA JR. FACTS: Albayda was notified that he would be transferred and refused. He took a 5 month long sick leave. When he went back to work, he insisted on reporting in the same region. HELD: Jurisprudence recognizes the management prerogative to transfer or reassign employees provided there is no demotion or diminution of salary. There is a similar stipulation in Albaydas employment contract. No demotion here, just relocation. Also, no diminution, as he would even be given relocation benefits and allowance. Albayda abandoned his work by taking a 5 month long sick leave. MORALES v. HARBOR CENTRE PORT TERMINAL FACTS: Morales, who was then a Division Manager of the Accounting Department, received a memo reassigning him to Operations Cost Accounting. He claimed that this was a demotion. He proceeded to be absent/tardy for a month. HELD: The reassignment/change in position here was a constructive dismissal. An employer may transfer or reassign employees provided there is no demotion in rank or Omnibus Rules Impl. Labor Code, Book V, Rule XXIII, Secs. 8 &9 SEC. 8. Preventive suspension. The employer may place the worker concerned under preventive suspension if his continued employment poses a serious and imminent threat to the life or property of the employer or of his co-workers. SEC. 9. Period of suspension. No preventive suspension shall last longer than thirty (30) days. The employer shall thereafter reinstate the worker in his former or in a substantially equivalent position or the employer may extend the period of suspension provided that during the period of extension, he pays the wages and other benefits due to the worker. In such case, the worker shall not be bound to reimburse the amount paid to him during the extension if the employer decides, after completion of the hearing, to dismiss the worker. NOTE: THIS IS NO LONGER IN EFFECT. Dept. Order No. 40-0 revised Book V and deleted rule XXIII. At present, there is no specific rule that governs Preventive Suspension in a binding fashion. FACTS: Pursuant to its Relocation and Restructuring Program, PT&T requested the transfer of regular employees to another site. The new job would be a promotion, with higher pay, but they refused. HELD: First of all, wrong usage of Rule 45 (certiorari) because this involves a question of fact, so this isnt binding. But the Court still discussed. There was indeed illegal dismissal. An employee cannot be promoted without his consent. Refusal cannot be considered as insubordination or willful disobedience that may be ground for a valid dismissal. Maam says: This is a really a weird case. PT&T could have proved that there was genuine business necessity, by, for example, presenting their data and studies. diminution of salary, benefits, and privileges, and the action is not motivated by discrimination, made in bad faith, or effected as a form of punishment or demotion without sufficient cause. The burden of proving this belongs to the employer. Here, the new assignment was vague and was not managerial in duty. Also they could not prove reorganization. Clearly, this would have been a demotion, tantamount to constructive dismissal. h. PROMOTION PHIL. TELEGRAPH v. CA

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ARTIFICIO v. NLRC FACTS: Artificio exhibited bad behavior, including threatened to burn the office down. Artificio was placed on preventive suspension and a hearing date was set. A week before the hearing, Artificio filed a complaint for illegal dismissal. HELD: Artificio was NOT dismissed. He was only under preventive suspension. Preventive suspension is justified where the employees continued employment poses a serious and imminent threat to the life or property of the employer or of the employees co-workers. On due process, Artificio chose not to present his side and actually avoided the investigation by prematurely filing for illegal dismissal. GATBONTON v. NLRC FACTS: A student filed a complaint against Assoc. Prof. Gatbonton for unjust grading system, sexual harassment, and conduct unbecoming of an academician. Pending investigation, Mapua placed him under a 30-day preventive suspension. HELD: The preventive suspension here was illegal. Gatbontons preventive suspension was based on Mapuas Rules and regulations for the Implementation of the AntiSexual Harassment Act of 1995. However, Mapua published the rules only on Feb. 23, 1999 when he was suspended Jan. 11, 1999. Administrative rules and regulations must be published if their purpose is to enforce/implement existing laws. Also, even if these implementing rules were already in effect, the suspension still has no sufficient basis since the resolution to suspend did not cite either of the allowable reasons. Thus, he is entitled to pay during the period in which he was suspended. However, no damages since there was no bad faith.

2. Substantive Requirements - Business-related Causes

SUMMARY: An employer may terminate any employment due for the following business-related or authorized causes (Art. 283): 1) Installation of Labor-saving Devices Reason: Economic efficiency Contemplates the installation of machinery to effect economy and efficiency in the method of production. I.e. automation

2) Retrenchment Reason: To prevent losses Requirements: i. It is undertaken to prevent losses, which are not merely de minimis, but substantial, serious, actual, and real, or if only expected, are reasonably imminent as perceived objectively and in good faith by the employer; The employer serves written notice both to the employees and the DOLE at least one month prior to the intended date of retrenchment; and The employer pays the retrenched employees separation pay equivalent to one month pay or at least month pay for every year of service, whichever is higher. The Court later added the requirements that the employer must use fair and reasonable criteria in ascertaining who would be dismissed among the employees and that the retrenchment must be

ii.

iii.

iv.

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undertaken in good faith. (Status, efficiency, seniority, physical fitness, age, and financial hardship for certain workers.) Except for the written notice to the affected employees and the DOLE, non-compliance with any of these requirements renders the retrenchment illegal.

SENIORITY should be a major consideration (if not, not valid).

3) Redundancy Reason: Role no longer exists Redundancy exists where the services of an employee are in excess (i.e. superfluous) of what is reasonably demanded by the actual requirements of the enterprise. Determination of superfluousness: Exercise of business judgment on the part of the employer, provided that it is substantiated and in good faith.

Business-related cause: Labor-saving Devices Redundancy Retrenchment (to prevent losses) Closure/Cessation of Business (not due to serious business losses or financial reverses) Employment prohibited by law or is prejudicial to his health or to the health of his co-employees Retrenchment/closure, but to serious business losses or financial reverses 4) Closure of Business Cessation of operations may be PARTIAL or COMPLETE.

Separation Pay: 1 months pay per year of svc

1/2 months pay per year of svc

None

Validity does NOT depend on evidence of actual or imminent losses. It is a management prerogative, and the validity and may not be contested if the following requisites concur: i. Closure is bona fide (i.e. the purpose is to advance the employers interest and not to circumvent any rules/rights). Written notice. In case of closure NOT due to serious business losses or reverses= separation pay.

ii. iii.

5) Temporary Closure/Bona fide suspension of operations (Art. 286): No dismissal when there is a bona fide suspension of the operation: - If not exceeding 6 months. - Employees are considered placed on floating status.

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When the employer resumes operations, the employer shall reinstate the employee to his former position, w/o loss of seniority rights if: he indicates his desire to resume his work. When employer resumes operations, employee has 1 month to express this desire to resume his work. (Same rules for the fulfillment by the employee of a military or civic duty)

Common requirements for all causes (just under Art. 282 LC or authorized under Art. 283 LC) of employer termination of employer-employee relationship: o Procedural due process: NOTICE of termination of employment must be sent 1 month prior to the termination, sent to both: 1) Employee to be dismissed 2) DOLE Right of employee to be heard

o o

Good faith in the exercise of the management prerogative Separation pay (see table below) A fraction of at least 6 months is considered as 1 whole year. If employed for less than 6 months, 1 months salary.

2. SUBSTANTIVE REQUIREMENTS BUSINESS RELATED CAUSES Labor Code Art. 283 Closure of establishment and reduction of personnel. The employer may also terminate the employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of circumventing the provisions of this Title, by serving a written notice on the workers and the Ministry of Labor and Employment at least one (1) month before the intended date thereof. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year.

Omnibus Rules Impl. Labor Code, Book VI, Rule I, Sec. 9 Termination pay. (a) An employee shall be entitled to termination pay equivalent to at least one month's salary for every year of service a fraction of at least six (6) months being considered as one whole year, in case of termination of his employment due to the installation of labor-saving devices or redundancy. (b) Where the termination of employment is due to retrenchment to prevent losses and in case of closure or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, or where the employment is prohibited by law or is prejudicial to his health or to the health of his co-employees, the employee shall be entitled to termination pay equivalent to at least one-half month's pay for every year of service, a fraction of at least six months being considered as one whole year. (c) The termination pay provided in the Section shall in no case be less than the employee's one month pay. a. BASIS EMPLOYER RIGHT EDGE APPAREL v. NLRC

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FACTS: Employer implemented a retrenchment scheme. HELD: The employer has a right to dismiss employees for valid causes after proper observance of due process. b. BUSINESS-RELATED OR AUTHORIZED CAUSES 1) INSTALLATION OF LABOR-SAVING DEVICES Labor Code Art. 283, relevant portion The employer may also terminate the employment of any employee due to the installation of labor-saving devices, x x x. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. x x x 2) RETRENCHMENT TO PREVENT LOSSES Labor Code Art. 283, relevant portion The employer may also terminate the employment of any employee due to the xxx, retrenchment to prevent losses x x x. In case of retrenchment to prevent losses xxx, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. x x x FLIGHT ATTENDANTS & STEWARDS ASSOC. OF THE PHIL. v. PAL (2008) FACTS: In 1998, claiming to be in financial crisis, PAL implemented a retrenchment scheme, dismissing more than 1,400 cabin crew. HELD: There are standards that must be satisfied in order to exercise the management prerogative of retrenchment (see the Summary below for specifics). Burden of proof belongs to employer. Here, PAL failed to substantiate its claim of actual and imminent substantial losses which would justify retrenchment. On the criteria used to choose who would be dismissed, retrenchment without taking into consideration seniority is valid. Here, the use of other causes not specifically stated has no basis in fact and law. Also, seniority, though supposedly a criterion, was effectively disregarded, as it failed to take into account each employees respective service record (e.g. only 1997 performance taken into consideration). FASAP v. PAL (MR; 2009) FACTS: PAL claimed that the real reason for the retrenchment was the pilots strike. HELD: The strike was a temporary occurrence that did not necessitate the permanent retrenchment of cabin crew. Also, the retrenchment scheme was then not triggered directly by any financial difficulty, and even if it was, insufficient proof was submitted. Burden to prove belongs to the employer. LAMBERT PAWNBROKERS & JEWELRY CORP. v. BINAMIRA FACTS: The vault custodian of a pawnshop was dismissed, supposedly due to business losses. The employer claimed to have suffered from a sharp drop in its income (from P1M to P665K in 1998). Notice of termination was effective on the same day it was given. HELD: Losses must be supported by sufficient and convincing evidence. Here, the employer only proved a drop in income. This is not what is contemplated in Art. 283. Also, no written notices were served to the employee and to DOLE before the implementation of retrenchment, there were no fair and reasonable criteria to ascertain who would be retrenched, and there was no showing that other cost-saving measures were implemented before resorting to retrenchment (it should be the last resort). 3) REDUNDANCY Labor Code Art. 283, relevant portion The employer may also terminate the employment of any employee due to xxx redundancy, xxx. In case of termination due to xxx redundancy, due to redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. x xx ANDRADA v. NLRC FACTS: Casino employees were dismissed, allegedly due to retrenchment on a Last In, First Out basis. Employer later claimed to have actually meant redundancy, as ruled by the CA, since they had not been doing any work prior to the retrenchment. HELD: Retrenchment and redundancy are two different concepts and are not interchangeable. The Court held that the submission of a status review of the companys project division where it reported that the 78-man personnel exceeded the needs of the company was NOT enough to prove redundancy. The company only presented allegations and conclusions, not supported by evidence.

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SMART COMMUNICATIONS v. ASTORGA FACTS: As part of their organizational realignment, SMART outsourced the responsibility of the Fixed Services Division, then, due to redundancy, terminated the services of Regina. HELD: Redundancy exists where the services of an employee are in excess (superfluous) of what is reasonably demanded by the actual requirements of the enterprise (and not necessarily another holding the same position). To determine superfluity is an exercise of business judgment on the part of the employer, as long as substantiated and in good faith. It is highly unlikely that SMART would enter a joining venture agreement with a foreign company just to fire Regina. Hence, the dismissal due to redundancy is valid. 4) CLOSURE OF BUSINESS Labor Code Art. 283, relevant portion The employer may also terminate the employment of any employee due to xxx the closing or cessation of operation of the establishment or undertaking x x x. x x x in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. x x x EASTRIDGE GOLF CLUB v. EASTRIDGE LABOR UNION FACTS: Eastridge terminated the services of several kitchen employees on the ground that the operations of the Department had been turned over to a concessionaire, which it claimed was a bona fide partial cessation of operations. HELD: The validity of a partial or complete cessation of operations does NOT depend on evidence of actual or imminent losses. The only requirements are that the requirements under Art. 283 are fulfilled (see summary below). However, in the case at bar, Eastridge exercised the management prerogative of partial cessation of operations in bad faith. The transfer to the concessionaire was merely simulated. 5) TEMPORARY CLOSURE/BONA FIDE SUSPSENSION OF OPERATIONS Labor Code Art. 286 When employment not deemed terminated. The bona-fide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty. JPL MARKETING PROMOTIONS v. CA FACTS: The client that the 3 respondent-employees handled stopped operations. JPL advised them to wait for further notice as they would be transferred to other clients. HELD: There was no dismissal here. Art. 286 allows the bona fide suspension of the operation of a business or undertaking for a period not exceeding 6 months, wherein an employee is placed on floating status. Over 6 months = illegal dismissal. As in this case, when the employees supposedly on floating status seek employment elsewhere before the expiration of the 6-month period, the employees effectively sever their relationship with the employer. Hence, they are not entitled to separation pay.

3. Disease

SUMMARY: An employer may terminate the services of an employee due to disease when the following requisites concur: 1a) The employee is suffering from a disease which cannot be cured within 6 months 1b) His continued employment is prohibited by law or prejudicial to his health or to the health of his co-employees 2) A certification to that effect must be issued by a competent public health authority.

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Without the said certification, it is illegal dismissal. Burden falls upon the employer to establish these requisites. o However, as in Wuerth v Ynson, after doctors have cleared the employee for work, the employer must show good reason for not reporting to work.

____________________________________________________________________________________________________________ 3. DISEASE Labor Code, Art. 284 Disease as ground for termination. An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees: Provided, That he is paid separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1) whole year. CRAYONS PROCESSING v. PULA FACTS: Pula was a Preparation Machine Operator working for Crayons Processing. He suffered a heart attack. Upon coming back to work after his reconnaissance, he relapsed. Crayons dismissed him on the ground of disease. HELD: The dismissal was invalid. For a dismissal on the ground of disease to be considered valid, two requisites must concur: a) disease cannot be cured within six months and continued employment is prohibited by law or prejudicial to his health or the health of his co-employees; and b) certification issued by a competent public health authority (Omnibus Rules, Sec. 8, Rule I, Book VI). The burden to prove these is on the employer and Crayons did not present the requisite certificate. WUERTH PHIL. v. YNSON FACTS: Ynson was employed by Wuerth as National Sales Manager. He suffered a stroke. After he came back to work, he was always absent because he was allegedly going through rehabilitation. Because of this, Wuerth suffered losses and eventually terminated Ynsons employment. HELD: Ynson was terminated for a valid cause. Although Wuerth did not secure the required certificate, Ynson was able to prove his case. There is showing that he could have already come back to work.

4. Enforcement of Union Security Clause in the CBA

SUMMARY: Requisites for termination of employment by this ground: 1) The union security clause is applicable; 2) The union is requesting the enforcement of the union security clause; and 3) There is sufficient evidence to support the unions decision to expel the employee from the union or company. Terms and definitions:

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Union security is a generic term, which is applied any agreement which imposes upon employees the obligation to acquire or retain union membership as a condition affecting employment. o Such agreements e.g. closed ship, union shop, or maintenance of membership

Union shop all new regular employees are required to join the union within a certain period as a condition to their continued employment. Maintenance of membership shop employees who are union members as of the effective date of the agreement, or who thereafter become members, must maintain union membership as a condition for continued employment until they are promoted or transferred out of the bargaining unit or the agreement is terminated. Closed-shop by agreement between the employer and employees (or their representatives), no person may be employed in any or certain agreed departments of the enterprise unless he becomes, and for the duration of the agreement, remains a member in good standing of a union entirely comprised of or of which the employees-in-interest are part.

5. Illegal Strike/ Illegal Acts

SUMMARY: Prerequisites to declaring a strike/lockout (whether by labor organization or employer): o Collective bargaining (in accordance with Title VII of the Code) o Filing of the notice required (Art. 263) o Strike/lockout vote having been obtained and reported to DOLE. NO strike/lockout shall be declared in the following cases: o The President or the Sec. of Labor assumes jurisdiction o Certification or submission of the dispute to compulsory or voluntary arbitration o During the pendency of cases involving the same groups for the strike/lockout Any worker whose employment has been terminated as a consequence of any unlawful lockout shall be entitled to reinstatement with full backwages (except the cases below). Art. 264 makes a distinction between participating union members and union officers (as pointed out in Samahang Manggagawa sa Sulpicio Lines v Sulpicio Lines). o Ordinary striking workers: may not be terminated for mere participation in a strike, (even though the strike is illegal) UNLESS they knowingly participated in the commission of illegal acts during the strike. o Participating union officers: may be terminated upon mere participation. Mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of employment, even if a replacement had been hired during the lawful strike. In all cases, a striking worker must be identified. Burden of proof required: substantial evidence only (Phimco Industries v PILA).

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4. ENFORCEMENT OF UNION SECURITY CLAUSE IN THE CBA INGUILLO & BERGANTE v. FIRST PHIL. SCALES, INC. FACTS: Inguillo and Bergante were dismissed by FPSI for joining a different union while the existing CBA said they shouldnt. HELD: While their dismissal based on this ground was valid, FPSI failed to observe the requisite procedural due process, so the two are entitled to damages. 5. DISMISSAL OF UNION OFFICERS FOR THE CONDUCT OF AN ILLEGAL STRIKE/DISMISSAL OF UNION MEMBERS FOR PARTICIPATING IN THE COMMISSION OF ILLEGAL ACTS Labor Code Art. 264(a) Prohibited activities. a. No labor organization or employer shall declare a strike or lockout without first having bargained collectively in accordance with Title VII of this Book or without first having filed the notice required in the preceding Article or without the necessary strike or lockout vote first having been obtained and reported to the Ministry. No strike or lockout shall be declared after assumption of jurisdiction by the President or the Minister or after certification or submission of the dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout. Any worker whose employment has been terminated as a consequence of any unlawful lockout shall be entitled to reinstatement with full backwages. Any union officer who knowingly participates in an illegal strike and any worker or union officer who knowingly participates in the commission of illegal acts during a strike may be declared to have lost his employment status: Provided, That mere participation of a worker in a lawful strike shall not constitute sufficient ground for termination of his employment, even if a replacement had been hired by the employer during such lawful strike.

D. PROCEDURAL REQUIREMENTS SUMMARY: The Procedural Requirements are (Omnibus Rules Book VI, Rule I, Sec. 2) 1) Written notice served on employee specifying the grounds for termination and giving the employee reasonable opportunity to explain his side (first notice) o The requirement here is that the employee is informed of the charges against him, thus a suspension notice does not suffice to replace this requirement.

2) A hearing or conference during which the employee concerned, with the assistance of counsel, if he so desires is given opportunity to respond, present his evidence, or rebut evidence against him o o o o o The rule is that non-observance of due process, but with valid cause = VALID dismissal but liable for nominal damages. In Salaw (1991, after WENPHIL), the Court declared the dismissal illegal because the employee was not allowed to be heard with counsel, which is a violation of due process requirements. In Perez v. PT&T (2009), the Court declared the dismissal illegal because there was no hearing conducted. These cases do not fall under the rule in WENPHIL because the failure to follow due process in these cases amounted to a failure to prove a valid ground for dismissal. All that is required is the OPPORTUNITY for the employee to present his case ( Technol Eight v. NLRC).

3) Written notice of termination served on employee (second notice)

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o In general, denial of due process in termination does not, in itself, invalidate the dismissal. The Labor Code provides that dismissal is only illegal when there is no just or authorized cause. a) IF there is just/authorized cause, and i) with due process: VALID DISMISSAL ii) without due process: VALID DISMISSAL but liable for nominal damages b) IF there is no just/authorized cause, and i) with due process: ILLEGAL DISMISSAL ii) without due process: ILLEGAL DISMISSAL and liable for nominal damages History of disposal of cases where there was valid cause but there was no due process: o o o prior to WENPHIL: if due process requirements are not met = dismissal is illegal WENPHIL (1989): if due process not met = dismissal is valid, but liable for nominal damages (at that time, only P1K) SERRANO (2000): the Court, wanting to avert the tendency of companies to dismiss now-pay later, declared that non-observance of due process results in an ineffectual dismissal. Companies would thus be liable for backwages from the time of dismissal up to the final decision of the court. CURRENT RULE -AGABON (2004): went back to WENPHIL ruling. Just cause + no due process = VALID dismissal but liable for nominal damages (30K/50K, tempered by surrounding circumstances of each case). Burden of proof in proving there is a valid/authorized cause for dismissal always rests on the employer (LC Art. 277 rd (b) 3 sentence). Quantum of proof required is SUBSTANTIAL EVIDENCE.

PRESCRIPTION OF ACTION: all money claims prescribe within 3 years from the time the cause of action accrued. QUITCLAIMS: an agreement to release the employer from any obligation arising from the employer-employee relationship for a consideration. o IN GENERAL, VALID. Quitclaims constitute a valid contract between the employer and employee. They are contracts and are invalidated by the same grounds as would a contract (ex. Fraud, violence, intimidation).

GOOD FAITH OF EMPLOYEES: good faith may serve to mitigate the disciplinary action taken against the employee; however, the claim of good faith cannot be upheld when it is a mere bare assertion (Cruz v. Coca-Cola). WITH REGARD TO COURTS: o Dismissal of Labor Cases purely on technical ground is frowned upon. The merits must be passed upon to serve the demands of substantive justice. o Decisions of the Labor Arbiter ordering reinstatement are IMMEDIATELY EXECUTORY, even pending appeal. Example: If the LA ordered reinstatement, which order the employee ignored, and the SC much later on, upon appeal, declared that the dismissal was effected validly, the employer would be liable for backwages from time of the LA decision up to the time of the SC decision.

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o

If the LA orders a monetary award, appeal to the NLRC can only be made upon posting of an appeal bond which must be in cash or in the form of a surety bond. This requirement is jurisdictional, without it, the NLRC will have no power to hear the appeal. Exception: When the company is under receivership by SEC orders.

PERIODS: 10-20 RULE o Appeals of LA decisions to the NLRC must be made within 10 days after receipt, or it shall become final and executory. Upon appeal, appellant shall furnish a copy to the other party who shall answer within 10 days. NLRC shall decide within 20 days from receipt of the answer of the appellee. Decisions of the Secretary of Labor cannot be appealed to the Office of the President. Appeals must be through a petition for Certiorari under Rule 65.

o o o

____________________________________________________________________________________________________________ D. PROCEDURAL REQUIREMENTS Labor Code Art.277 (b) 1 sentence Miscellaneous provisions. - (b) Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment Section 2. Security of Tenure a) In cases of regular employment, the employer shall not terminate the services of an employee except for just cause or authorized causes as provided by law, and subject to the requirements of due process. The foregoing shall also apply in cases of probationary employment; provided, however, that in such cases, termination of employment due to failure of the employee to qualify in accordance with the standards of the employer made known to the former at the time of engagement may also be a ground for termination of employment. In cases of employment covered by contracting or subcontracting arrangement, no employee shall be dismissed prior to the expiration of the contract between the principal and contractor or subcontractor as defined in Rule VIII-A, Book III of these Rules, unless the dismissal is for just or authorized cause, or is brought about by the completion of the phase of the contract for which the employee was engaged, but in any case, subject to the requirements of due process or prior notice.
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political subdivision including government-owned or controlled corporations.

Omnibus Rules Implementing the Labor Code, Book VI, Rule I, Secs. 1-3 Section 1. Coverage This rule shall apply to all establishments and undertakings, whether operated for profit or not, including educational, medical, charitable and religious institutions and organizations, in cases of regular employment with the exception of the Government and its

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In all cases of termination of employment, the following standards of due process shall be substantially observed: For termination of employment based on just causes as defined in Article 282 of the Labor Code: (i) A written notice served on the employee specifying the ground or grounds for termination, and giving said employee reasonable opportunity within which to explain his side (ii) A hearing or conference during which the employee concerned, with the assistance of counsel if he so desires is given opportunity to respond to the charge, present his evidence, or rebut the evidence presented against him. (iii) A written notice of termination served on the employee, indicating that upon due consideration of all the circumstances, grounds have been established to justify his termination. For termination of employment as defined in Article 283 of the Labor Code, the requirement of due process shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the Department of Labor and Employment at least thirty days before effectivity of the termination, specifying the ground or grounds for termination. If the termination is brought about by the completion of a contract or phase thereof, or by failure of an employee to meet the standards of the employer in the case of probationary employment, it shall be sufficient that a written notice is served the employee within a reasonable time from the effective date of termination. Section 3. Reinstatement An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and to backwages. drugs in the ship, and so it conducted an investigation and a random drug test. Nacague turned positive for shabu, which he denied. He was terminated for grave misconduct and loss of trust and confidence. HELD: There was illegal dismissal because Sulpicio failed to clearly show that Nacague was guilty of using illegal drugs, as the lack of accreditation of S.M. Lazo Clinic (the ones who conducted the drug tests) made its drug test results doubtful. BARON v. NLRC FACTS: Magic Sales, Inc. ordered an inventory of the companys stock after noticing a steady increase in the companys payables and a decline in its investments. It was found out that Barons accounting system was weak and compliance was not implemented- and that Baron and the other petitioners took advantage of all of this. MSI dismissed them after their refusal to cooperate with the investigations. HELD: Petitioners were validly dismissed on the ground of serious misconduct/willful disobedience, fraud or willful breach of trust, and abandonment. The two-notice requirement was complied with: 1) a notice apprising the employee of the particular acts for which his dismissal is sought was sent; and 2) a subsequent notice informing the employee of the employers decision to dismiss him was also given. b. LIABILITY FOR NON-COMPLIANCE WITH PROCEDURAL REQUIREMENTS MANTLE TRADING v. NLRC FACTS: Madriaga worked as tagapuno in MantleTrading Services. There were 2 reports of incidents made against him for allegedly putting more fish in a customers (Alfaro) tubs in consideration of money. One day, the payroll master barred him from reporting to work. He was later dismissed for abandonment by Mantle, but Mantle did not comply with the 2-notice requirement in effecting his dismissal. HELD: Although there was abandonment by Pablo, thereby constituting a valid cause for dismissal, there was illegal dismissal for non-compliance with the 2-notice rule by employer. Because of this, the employer should indemnify Madriaga in the amount of 30k as nominal damages for violation of the latters right to due process.

1. IN GENERAL: ESSENTIAL ELEMENTS OF DUE PROCESS a. COMPLIANCE WITH THE TWIN REQUIREMENTS OF NOTICE AND HEARING NACAGUE v. SULPICIO LINES FACTS: Nacague was Sulpicio Lines representative on-board its ship. Sulpicio later learned that there was use of illegal

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AGABON v. NLRC FACTS: Petitioners were employed by Riviera as gypsum board and cornice installers, and were dismissed for abandonment. They said they refused to take on pakyaw assignments but respondent instead said that it advised petitioners to report for work and told Virgilio about a new assignment, and that petitioners had subcontracted to work for another and wanted a wage increase. HELD: Petitioners had abandoned their work and the termination was not illegal but the employer must be held liable for violating their right to statutory due process because of a lack of notice. The sanction for this is in the form of indemnification, which is dependent on the facts of each case and the gravity of the due process violation. They are liable for nominal damages in the amount of 30K, but the dismissal remains valid. SERRANO v. NLRC & ISETANN FACTS: Serrano worked for Isetan as a security checker. He was dismissed on valid ground (retrenchment) but without due process. HELD: Dismissal for a just/authorized cause where due process was not observed is merely an ineffectual dismissal. Under the Labor Code, only the absence of a just cause for the termination of employment can make the dismissal of an employee illegal. The employer is therefore liable for the payment of backwages and benefits from the time of dismissal until finality of decision. 2. RIGHT TO COUNSEL Labor Code Art.277 (b) 1 sentence Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment.
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SALAW v. NLRC FACTS: Salaw was dismissed for allegedly selling the foreclosed properties of Associated Bank for his own benefit. He was required to appear before the banks investigative committee without counsel. His dismissal was premised solely on his admission to the acts imputed to him. HELD: Salaws dismissal is invalid. The right to counsel is guaranteed by the Constitution. The Court further held that the admission of Salaw, extracted without the assistance of counsel, cannot be admitted in evidence against him. 3. TWO NOTICE REQUIREMENT Labor Code, Art.277 (b) 1 sentence Subject to the constitutional right of workers to security of tenure and their right to be protected against dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment. KING OF KINGS TRANSPORT v. MAMAC FACTS: KKTI discovered that Mamac, their bus conductor, declared several sold tickets as returned tickets causing KKTI to lose money. While no irregularity report was prepared on the incident, KKTI nevertheless asked the respondent to explain the discrepancy. Afterwards, they sent a letter terminating the respondent. HELD: The Court held that the company failed to comply with procedural due process requirements. First, respondent was not issued a written notice charging him of committing an infraction. A verbal appraisal of the charges against an employee does not comply with the first notice requirement. Second, even assuming that petitioner KKTI was able to furnish respondent an Irregularity Report notifying him of his offense, such would not comply with the requirements of the law. Third, no hearing was conducted. For non-compliance
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with the due process requirements in the termination of respondents employment, petitioner KKTI is sanctioned to pay respondent 30K as nominal damages. MAGRO PLACEMENT v. HERNANDEZ FACTS: Hernandez was an Aircon Electrical Technician employed in Saudi Arabia through the local agency Orbit Recruitment. He was dismissed for alleged incompetence, which he argues was due to the lack of tools in his work place. HELD: There are 2 required notices to be served: 1) first notice, to inform the employee of the particular acts or omissions for which his dismissal is sought, 2) second notice, to inform the employee of the decision to terminate him. These requirements were not complied with in Hernandezs case. The dismissal is valid, but non-compliance with due process requirements makes the employer liable for nominal damages. 3.a PRE-DISMISSAL NOTICE ERECTOR ADVERTISING v. CLOMA SEASTAR MARINE v. BUL-AN FACTS: After 2 Suspension Orders, Cloma was fired. However, Erector failed to meet the procedural due process requirements of a valid dismissal Erector did not send either of the 2-notices required by law and there was no just cause proven. HELD: Suspension notices do not suffice to replace the predismissal notice requirement (first notice). The employee must be informed of the charges against him, a basic precept of procedural due process. Clomas dismissal was without just cause either. Cloma was reinstated. 4. HEARING a. HEARING PEREZ v. PHIL. TELEGRAPH FACTS: PT&T conducted an investigation, they found out that the shipping section had incurred excessive expenses and found that its shipping documents have been tampered with. The petitioners were put on preventive suspension then dismissed. FACTS: Seaman Lucio Bul-an showed signs of mental instability while on the M/V Blue Topaz, and isolated from the rest of the Filipino crew. Chief Mate Benjamin Paruginog bullied and injured him on two occasions. Master Captain Jacobus took the chief mates side, and Lucio was forced to fly home. The LA and NLRC found illegal dismissal, Seastar appealed to the CA asking that the case be remanded to the LA because it did not conduct a hearing on the case. HELD: The Supreme Court held that the LA may resolve a case on the basis of submission of documentary evidence/ position papers, after determining the necessity of holding further hearings. 5. DECISION/AWARD 1987 Constitution, Art VIII, Sec. 14 No decision shall be rendered by any court without expressing therein clearly and distinctly the facts and the law on which it is based. HELD: The Court ruled that there was a lack of factual evidence to prove loss of confidence and that they were illegally dismissed for lack of due process. Ample opportunity to be heard does not necessarily mean the need for a hearing. It can come in any form, may it be in a written or verbal form. It is only required when the employee requests for a hearing. TECHNOL EIGHT v. NLRC FACTS: Two employees get into a fight with their supervisor outside of the work premises. Employee 1 gets notice asking him to explain himself, putting him on preventive suspension, and setting a date for hearing while employee 2 resigns without employee knowing. Employee files a complaint with the NLRC before the date of hearing. HELD: The employee chose not to present his side by filing a complaint before the date set for his administrative hearing. The essence of due process is simply an opportunity to be heard; it is the denial of this opportunity that constitutes violation of due process of law, not refusal to avail of it. b. USE OF POSITION PAPER

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No petition for review or motion for reconsideration of a decision of the court shall be refused due course or denied without stating the legal basis therefor. ABD OVERSEAS v. NLRC FACTS: ABD, an accredited transferee recruitment agent of foreign principal MS AL Babtain, was held liable by the POEA to pay the award granted to Mohmina (who was recruited by MARS) when she was illegally dismissed. On appeal to NLRC, ABD raised factual and legal issues showing that MARS should be liable. NLRC copy-pasted the POEA decision and said We agree with the POEA. HELD: SC scolded the NLRC saying that appellate courts are not mere parrots/echo. ABD is still liable under the POEA Rules but MARS should reimburse ABD. 6. BURDEN OF PROOF Labor Code Art. 277 (b) 3 sentence emphasized The burden of proving that the termination was for a valid or authorized cause shall rest on the employer. MACASERO v. SOUTHERN INUSTRIAL GASES FACTS: Macasero says he was illegally dismissed which Southern Industrial Gases denied. Neither side presented substantial evidence to prove their contention. HELD: The Supreme Court held that it is incumbent upon the employer to prove that there was no dismissal, or, if there was, that such dismissal was legal. PHIL. RURAL RECONSTRUCTION MOVEMENT v. PULGAR FACTS: Pulgar was the field manager of the field office of PRRM. An investigation conducted by the central office showed that the funds of the field office were either missing or not property accounted for. In a letter, Pulgar admitted that there were instances when funds intended for a project were used for another, that there were fake receipts used to comply with the central offices requirements, and that he had opened a separate account for the field offices savings under his own name. Two stories developed: a) During the course of the investigation, Pulag filed several leaves of absence and subsequently filed a complaint for illegal
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dismissal, and b) Pulgar was constructively dismissed by PRRM on March 31, leading him to file the aforementioned complaint. HELD: Pulgar was not illegally dismissed. While the rule in illegal dismissal cases is that the employer bears the burden of proving that the termination was for a valid or authorized cause, the facts and the evidence in this case do not establish a prima facie case that the employee was dismissed from employment. 7. DEGREE OF PROOF/SUBSTANTIAL EVIDENCE KULAS IDEAS v. ALCOSEBA & ARAO-ARAO FACTS: Juliet and Flordelina were suspended, and later dismissed by Kulas because they were alleged to have caused certain discrepancies in the store inventory. HELD: The SC ruled that they were illegally dismissed because Kulas Ideas was not able to prove its allegations against the employees and it failed to follow the procedure required in terminating employees. ABOSTA v. NLRC FACTS: Arnulfo Flores had a 12 month contract as a radio officer with Abosta as an agent in behalf of Panstar. He went on board M/V Morning Charm, but he was later repatriated for his alleged infractions in the ship. HELD: Court found that the evidence, in the form of letters sent by the Master of the Ship and other officers, proves the affirmative statements regarding his infractions on the job. There was substantial evidence to support Arnulfos dismissal which he failed to rebut; therefore, the termination of his employment was valid. He wasnt given opportunity to present his side, however, and this violation of his right to procedural due process warrants an award of nominal damages in his favor, as held in Agabon v. NLRC. 8. CRIMINAL CASES/QUANTUM OF PROOF CONCEPCION v. MINEX IMPORT FACTS: Concepcion, a salesgirl of Minex Corp., was charged with qualified theft. She was dismissed from service. Thereafter, the Prosecutor found probable cause and filed an information in court against her.

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HELD: Final judgment of the criminal case is not a prerequisite to determine the validity of the employees dismissal. Unlike a criminal case, which requires proof of guilt beyond reasonable doubt, the quantum of proof prescribed for dismissing an employee is only substantial evidence. In this case, however, procedural due process rights were not accorded Concepcion, Minex is thus liable for nominal damages in the amount of 30k. 9. PRESCRIPTION Civil Code Art. 1146 The following actions must be instituted within four years: (1) Upon an injury to the rights of the plaintiff; (2) Upon a quasi-delict; However, when the action arises from or out of any act, activity, or conduct of any public officer involving the exercise of powers or authority arising from Martial Law including the arrest, detention and/or trial of the plaintiff, the same must be brought within one (1) year. (As amended by PD No. 1755, Dec. 24, 1980.) Labor Code Art. 291 Money claims. - All money claims arising from employeremployee relations accruing during the effectivity of this Code shall be filed within three (3) years from the time the cause of action accrued; otherwise they shall be forever barred. All money claims accruing prior to the effectivity of this Code shall be filed with the appropriate entities established under this Code within one (1) year from the date of effectivity, and shall be processed or determined in accordance with the implementing rules and regulations of the Code; otherwise, they shall be forever barred. Workmens compensation claims accruing prior to the effectivity of this Code and during the period from November 1, 1974 up to December 31, 1974, shall be filed with the appropriate regional offices of the Department of Labor not later than March 31, 1975; otherwise, they shall forever be barred. The claims shall be processed and adjudicated in HELD: The Release and Quitclaim was a legitimate waiver. Talam is thus not entitled to the payment of nominal damages for violation of due process rights. AUJERO v. PHIL. COMMUNICATIONS SATELLITE CORP. FACTS: Aujero, an accountant, worked for over 30 years and applied for retirement, he executed a quitclaim following receipt of 9M. Three years later he demanded 4.6M saying that he was only constrained to accept the 9M. HELD: The Court held that not only does substantial justice trump procedural rigidity; petitioner is a smart guy who shouldnt be so easily tricked into signing a quitclaim against his will. Without evidence to show vitiation of consent, the quitclaim stands as law between the parties. 11. DISMISSAL OF CASE, PURELY ON TECHNICAL GROUND (FROWNED UPON) JOBEL ENTERPRISES v. NLRC & MARTINEZ HELD: The distribution scheme did not amount to a diminution of benefits. Also, UEEAs right to question the distribution of the incremental proceeds has already prescribed. They filed an action four years from the time it accrued which was beyond the 3 year requirement in Art. 291 of the Labor Code. 10. QUITCLAIM TALAM v. NLRC FACTS: Talam was dismissed by The Software Factory after the company suffered financial reverses and implemented a retrenchment scheme. Talam signed a Release and Quitclaim in consideration of 90K. He thereafter filed a complaint for illegal dismissal. accordance with the law and rules at the time their causes of action accrued. UE v. UE EMPLOYEES ASSOCIATION FACTS: UE changed the distribution of its 70% incremental proceeds from tuition fee increases in SY 94-95. The UE Employees Association averred that this constituted diminution of benefits and filed a case against UE.

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FACTS: Martinez was employed by Jobel as company driver. He became stubborn, sluggish and often came late to work. Martinez had a fight with one of his co-employees, after which he stopped reporting for work and could not be contacted. Martinez filed a complaint for illegal dismissal which was granted. Jobels appeal was dismissed by the CA for failure to attach to the petition a duplicate original or certified true copy of the assailed NLRC decision. HELD: The case was dismissed on purely technical grounds at both the NLRC and the CA levels, in total disregard of the merits of the case. The SC remanded the case to the NLRC for its resolution of Jobels appeal. LACORTE v. INCIONG Labor Code Art. 223 FACTS: Lacorte was an employee of Asean Fabricators who attempted to steal from the company. The complaint for qualified theft was dismissed, but the Ministry of Labor granted the companys application for clearance to terminate Lacortes services. Lacorte assailed the granting of the application. HELD: The granting of the application was proper since Lacorte was not denied due process, and the dismissal of the complaint did not automatically mean the denial of the application for clearance. QUIAMBAO v. NLRC FACTS: Central Cements branch manager, Quiambao, was charged with estafa (dismissed for failure of prosecution witnesses to appear) and sued for collection of companys funds (dismissed because the cashier and not Quiambao misappropriated the money). He was later terminated, prompting him to file an illegal dismissal complaint. HELD: He was illegally dismissed because of the entire want of evidence justifying his termination. The reasons for dismissal of the criminal and civil cases (not on technical grounds) and the absence of Central Cements own investigation serve as grounds for this conclusion. 12. GOOD FAITH OF EMPLOYEE CRUZ v. COCA-COLA BOTTLERS, PHILS. APPEAL - Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within ten (10) calendar days from receipt of such decisions, awards, or orders. Such appeal may be entertained only on any of the following grounds: (a) If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter; (b) If the decision, order or award was secured through fraud or coercion, including graft and corruption; (c) If made purely on questions of law; and (d) If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant. In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from. In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or, at the option of the employer, merely reinstated in the payroll. FACTS: Cruz loaded 30 cases of Coca-Cola products in his truck without the required documentation. He sped off when stopped by the security guards and was caught after one guard chased him. He admitted but claimed to be in good faith and that he simply forgot the required documentation. After investigation, his services were terminated. HELD: The longer an employee stays in service, the greater his responsibility for knowledge and compliance with the norms of conduct and the code of discipline in the company. There was no good faith, there is clear evidence in this case supporting the dismissal of Cruz. 13. APPEAL IN LABOR CASES

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The posting of a bond by the employer shall not stay the execution for reinstatement provided herein. To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable penalty, including fines or censures, upon the erring parties. In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall file an answer not later than ten (10) calendar days from receipt thereof. The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee. The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the parties. Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission in the enforcement of decisions, awards or orders. (As amended by Section 12, Republic Act No. 6715, March 21, 1989). BARAIRO v. OFFICE OF THE PRESIDENT & MST MARINE FACTS: Barairo was found to be in violation of his contract by the POEA upon complaint by MST Marine. He appealed to the Secretary of Labor, which merely shortened the suspension imposed upon him. He then appealed to the Office of the President which dismissed his appeal citing National Federation of Labor v. Laguesma which held that labor cases, except those involving national interest, cannot be appealed to the Office of the President. HELD: The proper remedy was to question the decision of the Secretary of Labor via a Petition for Certiorari under Rule 65, not an appeal to the OP. Appeals of labor cases to the OP have been eliminated because under the Doctrine of Qualified Political Agency, all executive and administrative departments are adjuncts of the Chief Executive. 14. APPEAL BOND: JURISDICTIONAL Labor Code Art.223 relevant portion In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from. MINDANAO TIMES CORP. v. CONFESOR FACTS: Confessor filed a complaint for illegal dismissal. The LA ruled in Confessors favor. On appeal to the NLRC, Mindanao Times deposited 72K with UCPB and surrendered to the NLRC the passbook covering the deposit, along with a Deed of Assignment it executed, assigning the proceeds of the deposit in favor of Confessor and authorizing the NLRC to release the same in the event that the LAs decision becomes final and executory. HELD: Appeal bond is a jurisdictional requirement, and the SC held that the law requires a cash or a surety bond. Since petitioner posted neither, NLRC did not acquire jurisdiction and the LA decision should become final. UNIVERSITY PLANS INC v. SOLANO FACTS: In a case for illegal dismissal, University Plans was ordered to pay backwages of more than 3M. When it tried to appeal, it was required to submit a bond in the same amount as the damages. It claimed that because it was under receivership, as proven by Sec orders preventing them from alienating assets, the amount of bond should be reduced, while submitting a partial bond of 30K. HELD: SC ruled that University Plans was actually in receivership, based only on the SEC orders. This placed it under the exceptions to the general rule that no appeal may be perfected in labor cases without posting an appeal bond. Case remanded to NLRC to determine the merit of University Plans motion to reduce amount of bond.

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E. RELIEFS/REMEDIES IN ILLEGAL DISMISSAL

SUMMARY: The Reliefs available when there is ILLEGAL DISMISSAL are: a) REINSTATEMENT o o Restoration to a state or condition from which one has been removed or separated. ( Composite Enterprises v. Caparoso) EXCEPTIONS to the grant of reinstatement when illegal dismissal is found: 1) When there is Closure of Business 2) Economic Business Conditions, such as when the illegally dismissed employees position no longer exists in employers corporate structure. 3) Employees Unsuitability, such as when the employees continued presence at work would be met with antipathy and antagonism from co-workers 4) Employees Retirement or when Employee is already overage 5) Strained relations between the employer and employee 6) Available job for reinstatement is totally of a different nature o o o In these cases, the remedy is the grant of separation pay instead The offer to reinstate can be refused by the employee for just cause without waiving his claim for illegal dismissal. LA decision ordering reinstatement is IMMEDIATELY EXECUTORY, pending appeal. Thus, even if a higher court later reverses such ruling of the LA, the employer would still be liable for backwages from the time of the LA decision until the finality of the ruling of the higher court. If a higher court reverses the LAs finding of illegal dismissal, the employer cannot ask for a refund of wag es that have already been paid.

b) or, if reinstatement is no longer feasible, SEPARATION PAY, in lieu of reinstatement - Granted in lieu of reinstatement when reinstatement becomes too onerous. - Whether REINSTATEMENT or SEPARATION PAY will be granted is not the choice of the employer. REINSTATEMENT FIRST, then if this turns out to be impracticable, then SEPARATION PAY. (facultative not alternative) c) and PAYMENT OF BACKWAGES o o o o Separate and distinct relief from reinstatement and should be granted to an employee found to be illegally dismissed. Backwages are paid from the time salaries were withheld up to the time of reinstatement (or payment of separation pay, in lieu thereof) is adjudicated finally. If the employee finds work elsewhere while the case is pending, his remuneration for such work cannot be deducted from the payment of backwages granted him. Computation of the payment of backwages includes fringe benefits or their monetary equivalent.

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o Songco ruling applies in the computation of backwages: it is not only the basic salary that is taken into consideration; transportation and emergency living allowances, commissions and allowances, also figure into the computation. Accepting retirement benefits does not, in itself, preclude the employee from questioning the legality of his dismissal.

d) DAMAGES and ATTORNEYS FEES o o Attorneys fees, in the amount of 10% of the wages recovered, may be awarded if the employee was compelled to bring suit to protect his rights. Moral damages however may only be recovered when: a) the dismissal was attended by bad faith or fraud, or constituted an act oppressive to labor, or was done in a manner that caused unnecessary humiliation. (M+W Zander v. Enriquez) b) or there is proof that the employee suffered anxiety, sleepless nights, besmirched reputation and social humiliation. (Phil Aeolus v. NLRC) Financial Assistance/Separation Pay as a Measure of Social Justice for legally dismissed employees o The grant of separation pay or other financial assistance to an employee dismissed for just causes is based on equity. Cannot be granted when employee is dismissed for serious misconduct or those grounds reflecting on his moral character.

Indemnity when there is a valid cause but there was no procedural due process - See Summary on Procedural Requirements

Corporate Officers, in general, are not personally liable for the payment of these reliefs o EXCEPTION: Corporate officers are solidarily liable when the termination is done with malice or in bad faith or when they have exceeded their authority (in dismissing employee)

____________________________________________________________________________________________________________ E. RELIEFS/REMEDIES IN ILLEGAL DISMISSAL 1. IN GENERAL LOPEZ v. NLRC FACTS: After suffering through several instances of harassment, Lopez was dismissed by Letran College. The NLRC ruled that there was illegal dismissal but did not order her reinstatement, and instead granted separation pay. Lopez filed this case seeking reinstatement. HELD: A finding of illegal dismissal, as a general rule, results in reinstatement. But there may be instances when reinstatement is not a viable remedy, like when the relations between the employer and the employee have been so severely strained that it is not advisable to reinstate the employee. Thus, illegally dismissed employees are entitled to reinstatement and full backwages, which reliefs are cumulative, not alternative. a. REINSTATEMENT Labor Code Art. 279 SECURITY OF TENURE - In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An

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employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989). 1) DEFINITION ASIAN TERMINALS v. VILLANUEVA FACTS: Respondents were illegally dismissed from their job. LA ordered their reinstatement but they alleged that they were not reinstated to the same position they had. However, they did not present enough evidence that the positions given to them were different from the positions they had occupied before their termination. HELD: Their allegation that they should be given positions equivalent to those currently occupied by their co-employees who previously held the same position as them before their dismissal is untenable. Reinstatement means restoration to the former position occupied prior to dismissal or to substantially equivalent position. Reinstatement does not mean promotion. Promotion is based primarily on an employees performance during a certain period. Just because their contemporaries are already occupying higher positions does not automatically entitle respondents to similar positions. COMPOSITE ENTERPRISES v. CAPAROSO FACTS: Composite Enterprises wanted its employees to be paid separation pay in lieu of reinstatement on the ground that reinstatement was physically impossible due to its implementation of a retrenchment program. HELD: Reinstatement is the restoration to a state or condition from which one has been removed or separated. Payment of separation pay as a substitute for reinstatement is allowed only under exceptional circumstance. In this case, CEI sought to justify the payment of separation pay instead of reinstatement on the basis of its implementation of a retrenchment program. However, CEI only submitted as evidence the notice of its intention to implement a retrenchment program. Its failure to submit financial HELD: The SC affirmed the ruling with respect to Rodolfo and the separation pay, but ruled that the petitioners were entitled to backwages even if they were immediately employed after being fired from Insular. Art. 279 guarantees full backwages, which means that these are not reduced even if the illegally dismissed employee finds work during the course of litigation, since it is only expected that he find a means to support himself and his family. Furthermore, backwages are also a form of penalty against the erring employee. b) ECONOMIC BUSINESS CONDITIONS UNION OF SUPERVISORS v. SEC. OF LABOR statements casts doubt on its claim of losses and insistence on the payment of separation pay. 2) EXCEPTIONS JOHNSON & JOHNSON v. JOHNSON OFFICE AND SALES UNION FACTS: Bonsol and Horondo filed a complaint for illegal dismissal. NLRC ruled in their favor and ordered reinstatement or, if not feasible, payment of separation pay. Johnson & Johsnon argues that it has the prerogative to choose between separation pay and reinstatement. HELD: The choice is not theirs. The general rule is that reinstatement is given before separation pay. The company failed to prove strained relations to justify separation pay instead of reinstatement. a) CLOSURE OF BUSINESS RETUYA v. HON. DUMARPA FACTS: Antonio and Rodolfo Murillo owned several construction companies. They fought, causing Antonio to fire Rodolfo from Insular Builders. He then fired the petitioners, who went to work for Rodolfo under Queen City Builders. They then filed a complaint for illegal dismissal against both Antonio and Rodolfo. They were awarded separation pay, but were denied backwages. Rodolfo was exculpated because there was no employer-employee relationship between him and the petitioners when they were fired from Insular.

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FACTS: Luna was dismissed from Republic Bank and he was able to get an SC ruling saying that he was entitled to reinstatement with backwages. He returned to Republic Planters Bank and asked for reinstatement, which the latter refused. HELD: Reinstatement is the return to the position from which the employee was removed. It presupposes that the previous position still exists, or that there is an unfilled position more or less of a similar nature as the one previously occupied by the employee. In this case, despite the widespread restructuring of the former Republic Bank, now Republic Planters Bank, the position previously held by Luna was not abolished, but was already held by a different person. Although the position is now held by another, Luna must be reinstated because there is an unfilled position more or less of a similar nature as the one previously occupied by the employee. c) EMPLOYEES UNSUITABILITY DIVINE WORD HIGH SCHOOL v. NLRC FACTS: Luz Catena, a teacher at Divine Word high School, was dismissed because of alleged immoral acts committed by her husband, the principal of Divine Word. HELD: The Supreme Court held that she was dismissed without any valid ground but ordered that she be paid separation pay in lieu of reinstatement because her continued presence at the school may be met with antipathy and antagonism by some sectors of the school and community. d) EMPLOYEES RETIREMENT/OVERAGE ESPEJO v. NLRC FACTS: Espejo was the General Manager of Cooperative Insurance System of the Philippines and was assigned a company car. In order to put up with capital requirements, CISP had to sell the car. Espejo objected, but the Board overruled his objection. This made him tender his resignation. When he changed his mind about resigning, the Board already approved his resignation and paid him the cash value of his unused leaves and transportation expenses. HELD: The SC ruled that reinstatement was now moot and academic since Espejo was already 60 years old- the age of statutory retirement. Backwages are in order though, from the time he was illegally dismissed to his reaching 60 years old. e) ANTIPATHY AND ANTAGONISMSTRAINED RELATIONS WENSHA SPA CENTER v. YUNG FACTS: Loreta Yung, Administrative Manager of Wensha, was fired by Xu, its president, because according to her, a Feng Shui master told the former that their auras did not match. Wensha claimed that they received complaints against Yung from the employees. HELD: The Supreme Court found Loretas complaint credible while Wenshas pleadings and evidence suffered from inconsistencies. She would be entitled to backwages and reinstatement, but the Court granted separation pay here instead of reinstatement, applying the doctrine of strained relations. The payment of separation pay has been considered an acceptable alternative to reinstatement when the latter option is no longer desirable or viable. On the one hand, such payment liberates the employee from what could be a highly oppressive work environment. On the other hand, the payment releases the employer from the grossly unpalatable obligation of maintaining in its employ a worker it could no longer trust. f) JOB WITH A TOTALLY DIFFERENT NATURE DUP SOUND PHILS. v. CA & PIAL FACTS: Cirilo, the MASTER TAPER, was illegally dismissed. When the LA issued an order for reinstatement, DUP offered a different position that that of mastering tapes. HELD: The SC said Cirilo did not abandon his job by refusing to be reinstated to a job with a totally different nature. 3) OFFER TO REINSTATE RANARA v. NLRC FACTS: Driver Carlos was illegally dismissed. In one of the hearings before LA, Chang offered to reinstate him but he

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refused. LA found this as a justification for abandonment of work. NLRC affirmed. HELD: The SC ruled otherwise, stating that not only is Carlos justified for fear of retaliation especially since the company employed less than 10 persons, but also that such refusal is a subsequent event that has no effect on his arbitrary dismissal. The private respondents incurred liability under the Labor Code from the moment Carlos was illegally dismissed, and the liability did not abate as a result of Changs repentance. 4) PAYROLL REINSTATEMENT/WAGES PENDING APPEAL Labor Code Art. 223 relevant portion COLLEGE OF IMMACULATE CONCEPCION v. NLRC In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein. GARCIA v. PAL FACTS: PAL dismissed its employees after they were allegedly caught in the act of sniffing shabu when a team of company security personnel and law enforcers raided the PAL Technical Centers Toolroom Section. HELD: A dismissed employee whose case was favorably decided by the LA is entitled to receive wages pending appeal upon reinstatement, which is immediately executor. It is obligatory on the part of the employer to reinstate and pay the wages of the dismissed employee during the period of appeal until reversal by the higher court. However, this is not a hard and fast rule, as in this case, when the corporation itself is in a judicially monitored state of being resuscitated in order to survive. MAGANA v. MEDICARD PHIL., INC. FACTS: Magana was employed by Medicard as a nurse and assigned to Manila Pavilion Hotel. She was constructively FACTS: Ex-dean contested the end of his contract as such and subsequent designation (a demotion for him) as full-time professor. The College backfired with his alleged practice of law alongside work, and teaching arrangements in other law schools. The College later invoked a CHED Memo, refusing the assignment of teaching load. The LA wrongly ruled for Atty. Carloss reinstatement as Dean. The NLRC reverse the LA but still ordered reinstatement. The College then contended that Atty. Carlos should refund his salaries during the period pending appeal, since the La was found to be wrong. HELD: An order for reinstatement with pay shall be immediately executor and not subject to refund regardless of reversal by a higher court. 6) REINSTATEMENT AS INTERIM RELIEF (WHEN APPLICABLE) LANSANGAN v. AMKOR TECHNOLOGY PHIL., INC. FACTS: Lansangan and Cendana were dismissed from Amkor for serious acts of dishonesty (swiping another employees ID card or requesting another employee to swipe her card). The LA dismissed the complaint for illegal dismissal because there was just cause for it, but ordered reinstatement without backwages as a measure of equitable and compassionate relief. Only Amkor appealed while petitioners sought execution of the decision. NLRC granted the appeal, it deleted the reinstatement but order the payment of backwages from dismissed. The LA ruled that such dismissal is illegal and ordered reinstatement. The NLRC awarded reinstatement wages under Art. 233. The CA ruled that the dismissal was not illegal and removed the award of reinstatement wages. HELD: The SC ruled that pending appeal, reinstatement wages under 223 is mandatory, and does not require an executor writ for it to be demanded by the employee ordered to be reinstated. Also, the subsequent ruling of a higher court of the validity of the dismissal will not preclude the reinstatement wages from being demandable; neither will it make the dismissed employee liable to return reinstatement wages. 5) NO REFUND DOCTRINE

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the time of the LA decision up to the time of the NLRC decision. HELD: While Amkor is liable for backwages from the time between the LA and NLRC decisions, the petitioners were really found to be guilty of serious misconduct and are not entitled to reinstatement. Art. 223 grants an interim relief to a dismissed or separated employee while the case for illegal dismissal is pending appeal. However, in this case, it is very clear that petitioners were not entitled to reinstatement. b. BACKWAGES Labor Code Art 279. 2) COMPUTATION SECURITY OF TENURE In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989). 1) EFFECT OF FAILURE TO ORDER AURORA LAND v. NLRC FACTS: Quazon verbally terminated Daguis services as maintenance man due to alleged unsatisfactory performance. HELD: The Court recognized the illegal dismissal of Dagui and ordered backwages. It held that it was erroneous for LA and NLRC not to order backwages but only an award for separation pay in lieu of reinstatement. Backwages and reinstatement are two reliefs that should be given to an illegally dismissed employee. They are separate and distinct from each other. ST. MICHAELS INSTITUTE v. SANTOS STAR PAPER CORPORATION v. ESPIRITU FACTS: Santos, Magcamit and Rosarda were dismissed allegedly because of an incident involving a rally in front of the school denouncing school authorities. The reason cited by the school for their dismissal was serious misconduct or FACTS: Employees of Star Paper complained of constructive dismissal in their being transferred to provincial posts, FACTS: Laborers worked on a banana plantation and were hired and rehired in the span of 4 years. They were dismissed before their employment contracts expired, and filed a case for illegal dismissal. LA and NLRC both affirmed but the latter deleted the award of backwages because of a lack of bad faith on the part of the employer. HELD: The Court held that employees were entitled to the backwages as regular employees, and the hiring and rehiring showed bad faith on the employers part. The Court recalled the past rule of deducting earnings from elsewhere from the award of backwages to prevent unjust enrichment on the employees part, but then decided that full backwages have to paid because that is the literal import of the law. MERCURY DRUG CO, INC. v. CIR FACTS: Dayao was terminated from work due to his campaign for a new labor union. He was an assistant chief checker when he was terminated. HELD: The Court held that he was illegally dismissed. In the computation for the backwages to be awarded to Dayao, the Court deducted the period of delay in instituting the action. BUSTAMANTE v. NLRC willful disobedience for dereliction of duty because the teachers participated in the rally and did not hold classes for one day. HELD: The penalty of dismissal is disproportionate to the infraction of the respondents they were thus illegally dismissed and should be reinstated. The NLRC failed to award the same to the respondents in its decision in the latters favor, which the CA subsequently awarded. This is correct. Although it is not usually done, the CA has authority and discretion to review matters not assigned as errors if it appears that such is necessary to arrive at a complete and just resolution of the case.

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allegedly due to their refusal to sign an amendment to their CBA reducing their leave benefits. HELD: The Supreme Court ruled that there was illegal dismissal and that the payment of backwages should be computed from the time salaries were withheld up to the time reinstatement (or payment of separation pay, in lieu thereof) is adjudicated finally. 3) FRINGE BENEFITS ACESITE CORP v. NLRC FACTS: Leo Gonzales was Chief of Security of Holiday Inn Manila when he was dismissed. The LA dismissed the complaint, and the NLRC reversed, ordering reinstatement and full backwages inclusive of all his other fringe benefits or their monetary equivalent. Upon appeal, the CA deleted the fringe benefits. HELD: The deletion of the fringe benefits or their monetary equivalent is not in accord with law and jurisprudence. Art. 279 declares that other benefits or their monetary equivalent forms part of backwages to be paid when there is illegal dismissal. 2. DAMAGES AND ATTORNEYS FEES Labor Code Art. 111. ATTORNEYS FEES- (a) In cases of unlawful withholding of wages, the culpable party may be assessed attorneys fees equivalent to ten percent of the amount of wages recovered. (b) It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wages, attorneys fees which exceed ten percent of the amount of wages recovered. Civil Code Article 2208 par. 7. In the absence of stipulation, attorney's fees and expenses of litigation, other than judicial costs, cannot be recovered, except: (7) In actions for the recovery of wages of household helpers, laborers and skilled workers; PHILIPPINE AEOLUS v. NLRC FACTS: Rosalinda Cortez was a company nurse of Philippine Aeolus until her termination from employment. She avers that her dismissal was due to her rebuff of the inappropriate sexual advances of her boss to her. She filed a case for illegal dismissal. HELD: The SC held that there was no illegal dismissal. In determining entitlement to moral damages, it suffices to prove that the claimant has suffered anxiety, sleepless nights, besmirched reputation and social humiliation. Exemplary damages are granted in addition to, inter alia, moral damages, as a way of example or correction for the public good. Both are applicable in this case. REYES v. CA FACTS: Pedrito Reyes was retrenched and filed a complaint for non-payment and underpayment of wages and other benefits. HELD: The Court held that he was not entitled to damages because Leung Hup Poultry Farms did not act in bad faith in retrenching him. He is, however, entitled to attorneys fees since, with such, it only needs to be shown that lawful wages werent paid, regardless of existence of bad faith. M+W ZANDER PHIL. INC. v. ENRIQUEZ FACTS: Trinidad Enriquez was hired by M+W Zander as a probationary Administration Manager and Executive Assistant to the General Manager. She was dismissed after she allegedly caused a letter to circulate opposing the appointment of a new General Manager. HELD: In illegal dismissal cases, moral damages are recoverable where the dismissal was attended by bad faith or fraud, or constituted an act oppressive to labor, or was done in a manner contrary to morals, good customs or public policy. In this case, moral damages is fit because Enriquez was dismissed in a manner that caused her unnecessary humiliation. Attorneys fees may be granted in this case as well because respondents unjustified and unwarranted dismissal prompted her to engage the professional services of counsel.

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3. SEPARATION PAY J MARKETING CORP. v. TARAN FACTS: Taran contends that he resigned but that there was a verbal agreement between him and his manager that he would be paid separation pay and other benefits. The Company avers that he was dismissed for a just cause: failing to meet his quota. HELD: There is no provision in the Labor Code that grants separation pay to voluntarily resigning employees, and separation pay is granted only in cases of termination under Art. 283. However, an employer who agrees to expend such benefit as an incident of the resignation should not be allowed to renege on the fulfillment of such commitment. BPI v. NLRC FACTS: Arambulo, a bank manager of BPI was dismissed when she was implicated by a teller in repeated incidents of unauthorized withdrawals. The LA ruled that she was validly dismissed. The NLRC and CA affirmed her dismissal but granted her separation pay in view of the fact that she did not commit acts with malice or in bad faith. HELD: The SC held that since she was dismissed for loss of trust and confidence, which is among the just causes for dismissal enumerated under Art. 282, Arambulo is not entitled to separation pay. a. BACKWAGES AND SEPARATION PAY, DISTINCT RELIEFS TRIAD SECURITY AND ALLIED SERVICES v. ORTEGA FACTS: A 2 alias writ of execution was issued ordering Triad Security to pay accrued backwages when it had already st satisfied the 1 writ of execution. Triad argues that the employees they had illegally dismissed had already found other jobs so they cannot be compelled to pay the accrued backwages. HELD: Under Art. 279, an illegally dismissed employee is entitled to reinstatement and backwages, or if reinstatement is no longer viable, separation pay and backwages. It also mandates the prompt reinstatement of the employees. Until the reinstatement is effected, accrued backwages and other
nd

benefits continue to accumulate. It is only when the illegally dismissed employee receives the separation pay that it could be claimed with certainty that the employer-employee relationship has formally ceased thereby precluding the possibility of reinstatement. PALTENG v. UCPB FACTS: Palteng was dismissed from her job as Senior Assistant Manager/Branch Operations Officer of the UCPB Banaue Branch, because she acted beyond her authority in granting Bills Purchased Accommodation to a certain Mercado beyond her authorization limits and against company regulations. Palteng admitted to the offense, but claimed that she did so as an honest mistake. The LA, NLRC and CA found illegal dismissal. The LA and NLRC both awarded her full backwages, but the CA limited it to the period from her dismissal to the promulgation of the LAs decision. HELD: The SC denied the grant of full backwages. Separation pay and backwages are separate reliefs, the award of one does not bar the other, and the award of one does not necessitate the award of the other. An employee who was not faultless of the offenses imputed to her is not entitled to backwages. The SC held that because Palteng admitted to committing the offenses she was charged with, albeit as an honest mistake, she is not entitled to any backwages at all. b. COMPUTATION/RATIONALE BUSINESS DAY INFORMATION SYSTEMS AND SERVICES INC. v. NLRC FACTS: Business Day Info Systems underwent retrenchment and, later, closure of business. In the implementation of its retrenchment program, it dismissed employees in three different batches, paying greater separation benefits to the nd rd st 2 and 3 batch than those retrenched in the 1 batch. HELD: Petitioners right to terminate employees on account of retrenchment is recognized by law, but it may not pay separation benefits unequally for such discrimination breeds resentment and ill-will among those who have been treated less generously than others. SONGCO v. NLRC

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FACTS: Zuelig terminated the services of Songco, et. al. on the ground of retrenchment due to financial losses. The LA and NLRC ruled that their separation pay would consist in one month salary, exclusive of commissions, allowances, etc., for every year of service with Zuelig. HELD: In the computation of backwages and separation pay, it is not only the basic salary of the employee that is taken into consideration. Transportation and emergency living allowances should also be accounted for. Commissions and allowances also figure into the computation because to hold otherwise would be to say that employees whose compensation mostly consists in commissions and allowances would not be entitled to any separation pay should there be need for such to be adjudicated. c. EFFECT OF RECEIPT SAN MIGUEL CORP v. JAVATE FACTS: Javate filed for 2 vacation leaves, but neither was approved, so SMC said that his absences were charged to his sick leave benefits, and that he was compulsorily retired. HELD: The Court held that even if Javate were to accept the benefits under the retirement plan, he would not have been estopped from contesting the legality of his dismissal. 4. FINANCIAL ASSISTANCE/SEPARATION PAY AS A MEASURE OF SOCIAL JUSTICE WHEN ALLOWED/ NOT ALLOWED SAMASAH-NUWHRAIN v. AVILA MAGSALIN FACTS: Caragdag, waiter at the Hyatt Hotels Caf Al Fresco restaurant, and a director of the union refused to be frisked which was required by company policy. He was suspended and was thereafter involved in other incidents. He was dismissed from service. HELD: The grant of separation pay or other financial assistance to an employee dismissed for just causes is based on equity. Caragdags dismissal was due to serious misconduct, it follows that he should not be entitled to financial assistance. To rule otherwise would be to reward him for the grave misconduct he committed. Social justice is extended only to those who deserve compassion. EQUITABLE PCI BANK v. DOMPOR HELD: The Supreme Court removed the award of separation pay. Separation pay shall be allowed as a measure of social justice only in those instances where the employee is validly dismissed for causes other than serious misconduct or those reflecting on his moral character. See also: PADUATA v. MECO FACTS: Paduata incurred absences due to arthritis for which he didnt submit the required medical certificates to justify his absences. He was dismissed. HELD: The Supreme Court held that the dismissal was valid but separation pay can be given as a measure of social justice since he failed to go to work because of his illness. 5. INDEMNITY AGABON v. NLRC FACTS: Petitioners were employed by Riviera as gypsum board and cornice installers, and were dismissed for abandonment. They said they refused to take on pakyaw assignments but respondent instead said that it advised petitioners to report for work and told Virgilio about a new assignment, and that petitioners had subcontracted to work for another and wanted a wage increase. HELD: Petitioners had abandoned their work and the termination was not illegal but the employer must be held liable for violating their right to statutory due process FACTS: Dompor was a branch manager of Equitable PCI Bank. He accepted second-endorsed checks in violation of bank policy even after instructions to stop doing so. An investigative body recommended his dismissal. He was dismissed and he filed a complaint for illegal dismissal. HELD: Dompor was validly dismissed for willful disobedience and willful breach of trust. Thus, he cannot be awarded separation pay, even as a measure of social justice. See also: PLDT v. NLRC FACTS: Marilyn Abucay was dismissed for promising applications for telephone installation and receiving money outside official PLDT processing. The LA and NLRC granted her separation pay in view of equity.

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because of a lack of notice. The sanction for this is in the form of indemnification, which is dependent on the facts of each case and the gravity of the due process violation. They are liable for nominal damages in the amount of 30K, but the dismissal remains valid. SERRANO v. NLRC & ISETANN FACTS: Serrano worked for Isetan as a security checker. He was dismissed on valid ground (retrenchment) but without due process. HELD: Dismissal for a just/authorized cause where due process was not observed is merely an ineffectual dismissal. Under the Labor Code, only the absence of a just cause for the termination of employment can make the dismissal of an employee illegal. The employer is therefore liable for the payment of backwages and benefits from the time of dismissal until finality of decision. 6. LIABILITY OF CORPORATE OFFICERS AMA COMPUTER COLLEGE v. IGNACIO FACTS: Aguiluz and Cruz are President and HR Director Respectively of AMA. Ignacio, an employee of AMA, was dismissed illegally. The CA, after finding illegal dismissal, did not make any pronouncement as to the liability of Aguiluz and Cruz, who were impleaded in their capacity as AMA officials in the complaint. HELD: No liability should attach to Aguiluz and Cruz. Unless they have exceeded their authority, corporate officers are not personally liable for their official acts, because a corporation, by legal fiction, has a personality separate and distinct from its officers, stockholders and members. It is true that as an exception, corporate directors and officers are held solidarily liable with the corporation, when dismissal was done with malice or in bad faith, but such is not the case here. ALBA v. YUPANGCO FACTS: Alba and De Guzman filed separate complaints for illegal dismissal against Y.L. Land Corp. and Ultra Motors Corp, respectively. Yupangco was impleaded in his capacity as President of both corporations. Three writs of execution had to be issued, upon the denial of the LA of the motion to rd quash the 3 alias writ, it held that the irresponsible officer of the corporation is liable for the corporations obligations to its workers. HELD: In labor cases, the Court held corporate directors and officers solidarily liable with the corporation for the termination of employment of employees done with malice or in bad faith. There is no indication that petitioners were dismissed with malice or in bad faith. The LA, in declaring respondents solidarily liable thus modified an already final and executor decision which is not allowed.

V. RETIREMENT

SUMMARY: DEFINITION: the result of a bilateral act of the parties, a voluntary agreement between the employer and the employee whereby the latter, after reaching a certain age agrees to sever his or her employment with the former. ( Jaculbe v. Silliman) RETIREMENT AGE: can be any age established in the CBA or other applicable employment contracts. o If not stipulated: upon reaching 60 years or more, but not beyond 65 (compulsory retirement age, has served at least 5 years in the said establishment

RETIREMENT BENEFITS: can be stipulated, but cannot be less than what is provided in the law: o month salary for every year of service, unless more is granted

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o -includes month salary (15 days plus 1/12 of the 13 month pay and cash equivalent of not more than 5 SILP and all other remunerations) = 22.5 days pay total does not include COLA, profit-sharing payments, and other monetary benefits which are not considered as part of regular salary these benefits also apply when there is no stipulation as to retirement benefits
th th

EXCEPTIONS: Art. 287 on Retirement does not apply to: 1) Retail, service and agricultural establishments (Art. 287) Retail: one principally engaged in the sale of goods to end-users for personal or household goods (as opposed to wholesale) Service: one principally engaged in the sale of service to individuals for their own household use Agricultural: refers to an employer engaged in agriculture. 2) Operations employing not more than ten employees or workers (Art. 287) 3) Employees of the National Government, including GOCCs (IRR)

IF BOTH EMPLOYEE/EMPLOYER contribute to a retirement fund, the employers contribution cannot be less than the total retirement benefits if no such fund existed. OPTIONAL/COMPULSORY RETIREMENT. If there is NO retirement plan or agreement: o Retirement is OPTIONAL if an employee has reached 60 (50 for underground mine workers) years of age and has served at least 5 years in the establishment Retirement is COMPULSORY upon reaching the age of 65 years (60 for underground mine workers.

The three kinds of Retirement Plans are, according to the case of Gerlach v. Reuters Ltd. Phil. 1) compulsory and contributory in character 2) set up by agreement between the employer and the employees in CBA or other agreements between them 3) voluntarily given by the employer, expressly as in an announced company policy or impliedly as in a failure to contest the employees claim for retirement benefits

Retirement benefits may be forfeited if the employee is dismissed for a just cause by the employee. The grant of Retirement benefits may be resorted to as an equitable solution, even when the employee is not entitled thereto. (PLDT v. Reus) Early Retirement Programs are management prerogatives and applications for them may be subject to the approval of the employer, so long as such is not exercised maliciously. (Korean Air v. Yuson)

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V. RETIREMENT Labor Code Art. 287. RETIREMENT - Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements: Provided, however, That an employees retirement benefits under any collective bargaining and other agreements shall not be less than those provided therein. In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves. Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision. Violation of this provision is hereby declared unlawful and subject to the penal provisions under Article 288 of this Code. Republic Act No. 7641 December 9, 1992

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: Section 1. Article 287 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is hereby amended to read as follows: "Art. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. "In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements: Provided, however, That an employee's retirement benefits under any collective bargaining and other agreements shall not be less than those provided herein. "In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. "Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves. "Retail, service and agricultural establishments or operations employing not more than (10) employees or workers are exempted from the coverage of this provision. "Violation of this provision is hereby declared unlawful and subject to the penal provisions provided under Article 288 of this Code." Section 2. Nothing in this Act shall deprive any employee of benefits to which he may be entitled under existing laws or company policies or practices.

AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE ESTABLISHMENT

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Section 3. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier. RULES IMPLEMENTING THE NEW RETIREMENT LAW (April 1, 1993) Pursuant to the provisions of Article 287 of the Labor Code as amended by Republic Act No. 7641, in relation to Article 5 of the same Code, RULE II of Book VI of the Rules Implementing the Labor Code is hereby issued, the full text of which shall read as follows: RULE II Retirement Benefits SECTION 1. General Statement on Coverage. This Rule shall apply to all employees in the private sector, regardless of their position, designation or status and irrespective of the method by which their wages are paid, except to those specifically exempted under Section 2 hereof. As used herein, the term Act shall refer to Republic Act No. 7641 which took effect on January 7, 1993. SECTION 2. Exemptions. This Rule shall not apply to the following employees: 2.1 Employees of the National Government and its political subdivisions, including Government-owned and/or controlled corporations, if they are covered by the Civil Service Law and its regulations. 2.2 Domestic helpers and persons in the personal service of another. (Deleted by Department Order No. 20 issued by Secretary Ma. Nieves R. Confessor on May 31, 1994.) 2.3 Employees of retail, service and agricultural establishment or operations regularly employing not more than ten (10) employees. As used in this sub-section; (a) Retail establishment is one principally engaged in the sale of goods to end-users for personal or household use. It shall lose its retail character qualified for exemption if it is engaged in both retail and wholesale sale of goods. (b) Service establishment is one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such. (c) Agricultural establishment/operations refers to an employer which is engaged in agriculture. This terms refers to all farming activities in all its branches and includes among others, the cultivation and tillage of the soil, production, cultivation, growing and harvesting of any agricultural or horticultural commodities, dairying, raising of livestock or poultry, the culture of fish and other aquatic products in farms or ponds, and any activities performed by a farmer or on a farm as incident to or in conjunction with such farming operations, but does not include the manufacture and/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm products. SECTION 3. Retirement under CBA/contract. 3.1 Any employee may retire or be retired by his employer upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract or retirement plan subject to the provisions of Section 5 hereof on the payment of retirement benefits. 3.2 In case of retirement under this Section, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements; provided, however, that an employees retirement benefits under any collective bargaining and other agreements shall not be less than those provided under this Rule, and provided further that if such benefits are less, the employer shall pay the difference between the amount due the employee under this Rule and that provided under the collective or individual agreement or retirement plan. 3.3 Where both the employer and the employee contribute to a retirement fund in accordance with an individual or collective agreement or other applicable employment contract, the employers total contribution thereto shall not be less than the total retirement benefits to which the employee would have been entitled had there been no such retirement fund. In case the employers contribution is less than the retirement benefits provided under this Rule, the employer shall pay the deficiency. SECTION 4. Optional; Compulsory Retirement.

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4.1 Optional Retirement. In the absence of a retirement plan or other applicable agreement providing for retirement benefits of employees in an establishment, an employee may retire upon reaching the age of sixty (60) years or more if he has served for at least five (5) years in said establishment. 4.2 Compulsory Retirement. Where there is no such plan or agreement referred to in the immediately preceding subsection, an employee shall be retired upon reaching the age of sixty-five (65) years. 4.3 Upon retirement of an employee, whether optional or compulsory, his services may be continued or extended on a case to case basis upon agreement of the employer and employee. 4.4 Service Requirement. The minimum length of service in an establishment or with an employer of at least five (5) years required for entitlement to retirement pay shall include authorized absences and vacations, regular holidays and mandatory fulfillment of a military or civic duty. SECTION 5. Retirement Benefits. 5.1 In the absence of an applicable agreement or retirement plan, an employee who retires pursuant to the Act shall be entitled to retirement pay equivalent to at least one-half () month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. 5.2 Components of One-half () Month Salary. For the purpose of determining the minimum retirement pay due an employee under this Rule, the term one-half month salary shall include all of the following: (a) Fifteen (15) days salary of the employee based on his latest salary rate. As used herein, the term salary includes all remunerations paid by an employer to his employees for services rendered during normal working days and hours, whether such payments are fixed or ascertained on a time, task, piece of commission basis, or other method of calculating the same, and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of food, lodging or other facilities customarily furnished by the employer to his employees. The term does not include cost of living allowances, profit-sharing payments and other monetary benefits which are not considered as part of or integrated into the regular salary of the employees.

(b) The cash equivalent of not more than five (5) days of service incentive leave; (c) One-twelfth of the 13th month pay due the employee. (d) All other benefits that the employer and employee may agree upon that should be included in the computation of the employees retirement pay. 5.3 One-half month salary of employees who are paid by results. For covered workers who are paid by results and do not have a fixed monthly rate, the basis for determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of Rule VII-A, Book III of the Rules Implementing the Labor Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in that particular period. SECTION 6. Exemption from tax. The retirement pay provided in the Act may be exempted from tax if the requirements set by the Bureau of Internal Revenue under Sec. 2 (b) item (1) of Revenue Regulations No. 12-86 dated August 1, 1986 are met, to wit: Pensions, retirement and separation pay. Pensions, retirement and separation pay constitute compensation subject to withholding, except the following: (1) Retirement benefits received by officials and employees of private firms under a reasonable private benefit plan maintained by the employer, if the following requirements are met: (i) The benefit plan must be approved by the Bureau of Internal Revenue; (ii) The retiring official or employee must have been in the service of the same employer for at least ten (10) years and is not less than fifty (50) years of age at the time of retirement; and (iii) The retiring official or employee shall not have previously availed of the privilege under the retirement benefit plan of the same or another employer. SECTION 7. Penal Provision. It shall be unlawful for any person or entity to circumvent or render ineffective the

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provisions of the Act. Violations thereof shall be subject to the penal provisions provided under Article 288 of the Labor Code of the Philippines. SECTION 8. Relation to agreements and regulations. Nothing in this Rule shall justify an employer from withdrawing or reducing any benefits, supplements or payments as provided in existing laws, individual or collective agreements or employment practices or policies. All rules and regulations, policy issuances or orders contrary to or inconsistent with these rules are hereby repealed or modified accordingly. SECTION 9. Effectivity. This Rule took effect on January 7, 1993 when the Act went into force. LABOR ADVISORY ON RETIREMENT PAY LAW (October 24, 1996) TO: All Employers in the Private Sector SUBJECT: Guidelines for the Effective Implementation of RA 7641, The Retirement Pay Law A. COVERAGE RA 7641 or the Retirement Pay Law shall apply to all employees in the private sector, regardless of their position, designation or status and irrespective of the method by which their wages are paid. They shall include part-time employees, employees of service and other job contractors and domestic helpers or persons in the personal service of another. The law does not cover employees of retail, service and agricultural establishments or operations employing not more than ten(10) employees or workers and employees of the National Government and its political subdivisions, including Government-owned and/or controlled corporations, if they are covered by the Civil Service law and its regulations. B. COMPUTATION OF RETIREMENT PAY A covered employee who retires pursuant to RA 7641 shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. The law is explicit that one-half month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days service incentive leaves unless the parties provides for broader inclusions. Evidently, the law expanded the concept of one-half month salary form the usual one month salary divided by two. In reckoning the length of service, the period of employment with the same employer before the effective date of the law on January 7, 1993 shall be included. C. SUBSTITUTE RETIREMENT PLAN Qualified workers shall be entitled to the retirement benefit under RA 7641 in the absence of any individual or collective agreement, company policy or practice. In case there is such an agreement, policy or practice providing retirement benefit which is equal or superior to that which is provided in the Act, said agreement, policy or practice will prevail. As provided in RA 7742, a private employer shall have the option to treat the coverage of the PAG-IBIG Fund as a substitute retirement benefit for the employee concerned within the purview of the Labor Code as amended; provided, such option does not in any way contravene an existing collective bargaining agreement or other employment agreement. Thus, the PAG-IBIG Fund can be considered as a substitute retirement plan of the company for its employees provided that such scheme offers benefits which are more than or at least equal to the benefits under RA 7641. If said scheme provides less than what the employee is entitled to under RA 7641, the employer is liable to pay the difference. If both the employee and the employer contribute to a retirement plan, only the employers contribution and its increments shall be considered for full or partial compliance with the benefit under RA 7641. On the other hand, where the employee is the loan contributor to the PAG-IBIG Fund, the employer being exempted from its coverage, the employer is under obligation to give his employee retirement benefits under the ACT.

Done in the City of Manila, this 24th day of October 1996.

(Sgd) LEONARDO A QUISUMBING Secretary

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Republic Act No. 8558 February 26, 1998 entitled to all the retirement benefits provided for in this Article. "Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage of this provision. "Violation of this provision is hereby declared unlawful and subject to the penal provisions provided under Article 288 of this Code. "Nothing in this Article shall deprive any employee of benefits to which he may be entitled under existing laws or company policies or practices." Section 2. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national papers of general circulation, whichever comes earlier. Approved: February 26, 1998 INTERCONTINENTAL BROADCASTING CORP. v. AMARILLA FACTS: In 1975, petitioner IBC employed respondents in various positions. From 1995-1998 respondents retired and received their retirement benefits under the 1993 CBA. A salary increase was given to all employees, both current and retired, effective July 1994. However, when respondents demanded their salary differentials, IBC refused and said the differentials would be used to offset tax due on their retirement benefits, pursuant to the National Internal Revenue Code. HELD: Respondents retirement benefits are part of gross income subject to tax, but IBC is estopped from reneging on its promise since IBC had already obliged itself to pay the taxes due thereon, and used this to induce respondents to avail of the optional retirement scheme. JACULBE v. SILLIMAN UNIVERSITY FACTS: Silliman University forcibly retired Jaculbe pursuant to its automatic retirement plan which automatically retired employees upon reaching the age of 65 or after 35 years of service to the university.

AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES BY REDUCING THE RETIREMENT AGE OF UNDERGROUND MINE WORKERS FROM SIXTY (60) TO FIFTY (50) Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: Section 1. Article 287 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, is hereby amended to read as follows: "ART. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. "In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements: Provided, however, That an employee's retirement benefits under any collective bargaining and other agreements shall not be less than those provided herein. "In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. "Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves. "An underground mining employee upon reaching the age of fifty (50) years or more, but not beyond sixty (60) years which is hereby declared the compulsory retirement age for underground mine workers, who has served at least five (5) years as underground mine worker, may retire and shall be

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HELD: The retirement plan of Silliman runs afoul of the constitutional guaranty of security of tenure. The Labor Code permits employers and employees to fix the applicable retirement age at below 60 years, however, Sill imans retirement plan shows that participation therein was compulsory. Retirement is the result of a bilateral act of the parties, which is not the case here because the retirement plan was put into place 12 years after Jaculbe started working for Silliman, meaning it cannot be part of terms of employment to which she agreed. REYES v. NLRC FACTS: Rogelio Reyes was employed as Unit Manager of Sales Department-South Mindanao District of Universal Robina Corporation. When he retired, he refused to accept the check issued by Universal Robina for his retirement pay, arguing th that his retirement benefits and 13 month pay must be based on his average monthly salary which consists of basic salary and average monthly commission (override commission from the sales of those under him). HELD: The commissions that petitioner received were not part of his salary structure but were profit-sharing payments and had no clear, direct or necessary relation to the amount of work he actually performed. They are thus excluded from the computation of his retirement pay. 1. RETROACTIVE APPLICATION OF RA 7641 UNIVERSAL ROBINA SUGAR MILLING v. CABALLEDA FACTS: Caballeda worked as welder for Universal Robina Sugar Milling Corp, while Cadalin worked as crane operator. The company president issued a Memorandum establishing the company policy on Compulsory Retirement of its employees at 60. In 1993, a CBA was entered into, under which the retirement benefits shall be in accordance with law. HELD: RA 7641, as a social legislation, has retroactive effect. The requisites in order for it to be given retroactive effect are: 1) the claimant for retirement benefits was still in the employ of the employer at the time the statute took effect (January 7, 1993); and 2) the claimant had complied with the requirements for eligibility for such retirement benefits under the statute. (d) All other benefits that the employer and employee may agree upon that should be included in the computation of the employees retirement pay. 5.3 One-half month salary of employees who are paid by results. For covered workers who are paid by results and do not have a fixed monthly rate, the basis for determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of Rule VII-A, Book III of the Rules Implementing the Labor Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in that particular period. ENRIQUEZ SECURITY SERVICES, INC. v. CABOTAJE FACTS: Victor Cabotaje was a security guard of Enriquez Security and Investigation Agency. This was later dissolved, but he was absorbed in the new company, Enriquez Security 2. COMPONENTS OF ONE-HALF MONTH PAY/SALARY RA 7641 IRR (also Section 5.2, Rule II, Book VI, of the Omnibus Rules Implementing the Labor Code) Section 5.2 Components of One-half () Month Salary. For the purpose of determining the minimum retirement pay due an employee under this Rule, the term one-half month salary shall include all of the following: (a) Fifteen (15) days salary of the employee based on his latest salary rate. As used herein, the term salary includes all remunerations paid by an employer to his employees for services rendered during normal working days and hours, whether such payments are fixed or ascertained on a time, task, piece of commission basis, or other method of calculating the same, and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of food, lodging or other facilities customarily furnished by the employer to his employees. The term does not include cost of living allowances, profit-sharing payments and other monetary benefits which are not considered as part of or integrated into the regular salary of the employees. (b) The cash equivalent of not more than five (5) days of service incentive leave; (c) One-twelfth of the 13th month pay due the employee.

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Services, Inc. Upon retirement, he claimed he had to be paid retirement benefits computed from the time he started working for ESIA and not just ESSI. HELD: The SC pierced the corporate veil, awarding him retirement benefits computed from the time he worked with ESIA. The components of the one-half month salary to be awarded as part of the retirement benefits is listed in Section 5.2, Rule II, Book VI of the Omnibus Rules of the Labor Code. 3. WHEN RA 7641 IS APPLICABLE OXALES v. UNILAB FACTS: Alberto wanted more retirement benefits than what Unilabs retirement plan gives. HELD: The SC said that he couldnt have them because Unilabs retirement plan was clear on what he can get, and the plan did not violate the law. 4. THREE KINDS OF RETIREMENT PLANS a. Compulsory and contributory in character b. Set up by agreement between the employer and the employees in CBA or other agreements between them c. Voluntarily given by the employer, expressly as in an announced company policy or impliedly as in a failure to contest the employees claim for retirement benefits GERLACH v. REUTERS LTD. PHIL. FACTS: Gerlach retired from Reuters and was claiming retirement benefits which she avers should be based on her salaries while stationed abroad. Reuters granted retirement benefits computed based on her notional salary. HELD: Reuters based Gerlachs retirement benefits on its Plan and established policy, which is in accord with Art. 287. Gerlachs theory that the computation of her retirement benefits should be based on her basic annual salary while stationed abroad is untenable. STA. CATALINA v. NLRC HELD: The SC rule that benefits should be computed under the Retirement Plan, not only because the Labor Code provides for situations where there is no plan, but also because the pilots have more benefits under PALs Retirement Plan. The Secretarys order regarding consultation was an amendment of the CBA that overstepped the boundaries of reason and fairness. 5. VOLUNTARY RETIREMENT ARIOLA v. PHILEX MINING CORP. FACTS: Petitioners were supervisors of Philex who were terminated due to the companys retrenchment program. Philex claimed that they had voluntarily retired. HELD: The SC held that Philex failed to prove their voluntary retirement and that the evidence clearly showed that petitioners were retrenched. While most of the requirements for a valid retrenchment were met, Philex did not implement the retrenchment in a just and proper manner. As such petitioners were illegally dismissed. 6. FORFEITURE OF BENEFITS EQUITABLE PCI BANK v. CAGUIOA

FACTS: Hilaria Tercero worked for Sta. Catalina College from 1955 to 1970 before taking a one year leave of absence. She did not return to Sta. Catalina until 1982 and even worked in a couple of other schools in between. Upon her retirement at the age of 65, she was given retirement benefits using 15 years of service as component. HELD: The period prior to 1982 should not be included, and only 15 years should be used in the computation of retirement pay. PAL v. AIRLINE PILOTS ASSOCIATION FACTS: PAL unilaterally retired Captain Albino Collantes under the PAL-ALPAP Retirement Plan, causing ALPAP to file a Notice of Strike. The Secretary of Labor ruled that the retirement was valid, but that the benefits should be computed under the Labor Code, not the Retirement Plan. He also ordered PAL to consult with its pilots before retiring them.

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FACTS: Generosa was a Senior Manager of petitioner Equitable PCIs EDSA-Balintawak Branch. A client complained that she and 2 other bank employees had lured him into entering a check discounting scheme. She was dismissed, with automatic forfeiture of benefits, for violating the banks Code of Conduct. She filed a complaint for illegal dismissal and non-payment of salaries, wages, and benefits. HELD: She was legally dismissed. On the forfeiture of benefits, such cannot be removed on her plea of leniency based on her 35 years of service because such cannot offset her dishonesty. SY v. METROBANK FACTS: A few months before Sy would come under Metrobanks compulsory Retirement Plan, he accepted an offer which would extend his employment as bank manager for one more year. Metrobank conducted an audit which revealed that Sy engaged in activities in wanton violation of the banks policies which became the basis for Sys dismissal. Sy filed a complaint alleging that he was illegally dismissed and, in the event that his dismissal was valid, that hes entitled to retirement benefits. HELD: Sy was validly dismissed on the ground of willful breach of trust for authorizing the drawing of checks against uncollected funds. Since he was dismissed for just cause, he is not entitled to any retirement benefit. To hold otherwise would be to reward the acts of willful breach of trust by employee. 7. EQUITABLE SOLUTION PLDT v. REUS FACTS: Antonio Reus was dismissed by PLDT. The LA ordered that he be paid whatever he may be entitled to under the companys retirement plan. The NLRC ordered that he be paid whatever is in the retirement plan even without being entitled thereto. It justified this by saying that it is an equitable solution. The decision became final, but the NLRC later made a decision ordering the computation of the award by considering the entitlement of the employee to the benefits under the retirement plan. HELD: The NLRC should not have made its second decision, as the first decision already became final. The SC thus affirmed the first NLRC decision granting payment as an equitable solution. 8. RETIREMENT PAY DIFFERENTIAL RIVERA v. UNILAB FACTS: Rivera retired from UNILAB and retired, receiving her retirement benefits. After retiring, she continued to work with UNILAB upon mutual agreement by both parties. The company then upgraded their retirement benefits. Rivera sought to collect unpaid retirement pay differential. HELD: Riveras retirement was governed by the applicable agreement which was the UNILAB retirement plan. She could thus not ask for the upgraded retirement benefits to be applied to her. 9. MANAGEMENT PREROGATIVE KOREAN AIR CO. LTD. v. YUSON FACTS: Adelina Yuson sought to avail of the Early Retirement Program offered by Korean Air in an effort to lessen costs. Her application was denied, prompting her to file a case with the NLRC. HELD: The Court ruled that the approval of ERP benefits was within management prerogative, so long as such is not exercised maliciously.

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I can do all things through Christ who strengthens me. Nevertheless you have done well that you shared in my distress. Now you Philippians know also that in the beginning of the 16 gospel, when I departed from Macedonia, no church shared with me concerning giving and receiving but you only. For even in 17 Thessalonica you sent aid once and again for my necessities. Not that I seek the gift, but I seek the fruit that abounds to your 18 account. Indeed I have all and abound. I am full, having received from Epaphroditus the things sent from you, a sweet-smelling 19 aroma, an acceptable sacrifice, well pleasing to God. And my God shall supply all your need according to His riches in glory by Christ Jesus. Philippians 4:13-19
14 15 13

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