Labor Law

LABOR LAW 1
1st Semester, AY 2008-2009

Prof. E. (Leo) D. Battad
College of Law
University of the Philippines
SUGGESTED TEXTBOOK:
CA Azucena, The Labor Code with Comments and Cases (Latest Edition)
REFERENCES:
Samson S. Alcantara, and Samson B. Alcantara Jr., Philippine Labor and Social Legislation Annotated
1987 Philippine Constitution
The Labor Code of the Philippines and its Implementing Rules &
Regulations
Pertinent International Human Rights Instruments and ILO Conventions, Recommendations and Labor-related laws
Assigned Readings
I. INTRODUCTION TO LABOR LAW
A. Labor as a Concept
1. General Sense
Labor physical toil although it does not necessarily exclude the application of skill, thus there is skilled and unskilled labor.
Skill familiar knowledge of any art or sciencem united with radiness and dexterity in execution or performance or in the
application of the art or science to practical purposes.
Work is broader than labor as work covers all forms of physical or mental exertion, or both combined, for the attainment of some
object other than recreation or amusement per se.
2. Technical sense
Worker broader than employee as workers may refer to self-employed people, and those working in the service and under the
control of another, regardless of rank, title, or nature of work.
Employee salaried person working for another who controls or supervises the means, manner or method of doing the work.
B. Labor Law
1. Definition
Labor legislaton labor standards + labor relations
a. consists of statutes, regulations and jurisprudence

b. governing the relations between capital and labor
c. by providing for certain employment standards and a legal framework
d. for negotiating, adjusting and administering those standards and other incidents of employment.
Labor standards: which sets out the minimum terms, conditions, and benefits of employment that employers must provide or
comply with and to which employees are entitled as a matter of legal right.
Labor relations law: which defines the status, rights and duties and the institutional mechanisms that govern the individual and
collective interactions of employers, employees or their representatives.
SOCIAL LEGISLATION VS. LABOR LAWS
Social legislation: provides particular kinds of protection or benefits to society or segments thereof in furtherance of social justice.
Labor laws are necessarily social legislation. But to differentiate, labor laws directly affect employment while social legislation
governs effects of employment.
Labor laws are social legislation but not all social legislation are labor laws.
2. Social Justice, Const., Art. II, Sec. 10; Art. XIII, Sec. 1-3
Section 10. The State shall promote social justice in all phases of national development.
Section 1. The Congress shall give highest priority to the enactment of measures that protect and enhance the right
of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities
by equitably diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its increments.
Section 2. The promotion of social justice shall include the commitment to create economic opportunities based on
freedom of initiative and self-reliance.
ARTICLE XIII LABOR

Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.
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.
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.
The aim and the reason and, therefore, the justification of labor laws is social justice.
Social Justice: JP Laurel in Calalang neither communism, nor despotism, nor atomism not anarchy but the humanization of laws
and the equalization of social and economic forces by the State so that justice in its rational and objectively secular conception may
at least be approximated.
The promotion of the welfare of all the people, the adoption by the Government of measures calculated to insure economic stability
of all the component elements of society through the maintenance of proper economic and social equilibrium in the interrelations of
the members of the community, constitutionality, through the adoption of measures legally justifiable, or extra-constitutionally,
through the exercise of powers underlying the existence of all governments, on the time-honored principle of salus populi est
suprema lex.
Labor is the primary social economic force, thus the State shall protect the rights of workers and promote their welfare.
Constitutional Rights and Mandates
The State shall afford full protection to labor and this is found in the 1935, 1973, and 1987 Consti. The State affirms labor as a
primary social economic force thus, it shall protect the right of the workers and promote their welfare.
Basic rights of workers guaranteed by the consti:
1. Right to organize themselves

2. Conduct collective bargaining or negotiation with management
3. Engage in peaceful concerted activities, including to strike in accordance with law
4. Enjoy security of tenure
5. Work under humane conditions
6. Receive a living wage
7. Participate in policy and decision-making processes affecting their rights and benefits as may be provided by
law. (Sec. 3, XIII).
Other provisions in the Consti:
1) Right to form unions, associations, societies for purposes not contrary to law.
2) Right to self organization shall not be denied to government employees.
3) Regular farmworkers shall have the right to own directly or collectively the lands they till.
4) The State shall by law and for common good, undertake in cooperation with the private sector a continuing program of
urban land reform and housing.
5) The State shall protect working women by providing safe and healthful working conditions taking into account their
maternal functions.
6) Labor is entitled to seats allotted to party-list representatives
7) The State shall promote industrialization and full employment based on sound agricultural development and agrarian
reform.
8) Congress shall create an agency to promote the viability and growth of cooperatives.
9) The Govt shall increase salary scales of the other officials and employees of the National Government.
10) Career civil service employees shall be entitled to appropriate separation pay and to retirement and other benefits under
existing laws.
a. Definition/Balancing of Interest
Calalang v. Williams, 70 Phil. 726 (1940)
Social Justice: JP Laurel in Calalang neither communism, nor despotism, nor atomism not anarchy but the humanization of laws
and the equalization of social and economic forces by the State so that justice in its rational and objectively secular conception may
at least be approximated.
Social justice is the promotion of the welfare of all the people, the adoption by the Government of measures calculated to insure
economic stability of all the component elements of society through the maintenance of proper economic and social equilibrium in
the interrelations of the members of the community, constitutionality, through the adoption of measures legally justifiable, or extra-
constitutionally, through the exercise of powers underlying the existence of all governments, on the time-honored principle of salus
populi est suprema lex.
Manila Electric Co. v. Sec. of Labor, 337 SCRA 90 (2000)
When will the CBA take effect?
<-o-------------------------------I x--------------------------
CBA expiration 6 months
Secretary of Labor may determine the date of retroactivity as part of his discretionary powers. But this discretionary power shall
only be exercised only when jurisdiction has been vested.
Assailed Resolution:
Article 263(g) gives the Secretary jurisdiction. CBA negotiated within six months after the expiration of the existing CBA retroacts to
the day immediately following such date and if agreed thereafter, the effectivity depends on the agreement of the parties. But the
law is silent as to the retroactivity of a CBA arbitral award or that granted not by virtue of the mutual agreement of the parties but
by intervention of the government. Despite the silence of the law, the Court rules herein that CBA arbitral awards granted after six
months from the expiration of the last CBA shall retroact to such time agreed upon by both employer and the employees or their
union. Absent such an agreement as to retroactivity, the award shall retroact to the first day of the six-month period following the
expiration of the last day of the CBA should there be one. IN the absence of a CBA, the Secs determination of the date of
retroactivity as part of his discretionary powers over arbitral awards shall control.
Held: Where an arbitral award is granted beyond six months after the expiration of the existing CBA, and there is no agreement
between the parties as to the date of effectivity thereof, the arbitral award shall retroact to the first day after the six-month period
following the expiration of the last day of the CBA. But instead of Dec 1, 1995 to Nov 30 1997 (CBA had a 2-year applicability
period), the Court modified it to June 1, 1996 to May 31, 1998.
On social justice: [T]his Court cannot ignore the enormous cost that petitioner will have to bear as a consequence of the fill
retroaction of the arbitral award to the date of the expiry of the CBA and the inevitable effect that it would have on the national
economy. On the other hand, under the policy of social justice, the law bends over backward to accommodate the interests of the
working class on the humane justification that those with less privilege in life should have more in law. Balancing these two
contrasting interests, this Court turned to the dictates of fairness and equitable justice and thus arrived at a formula that would
address the concerns of both sides. Thus, Arbitral award must retroact to the first day AFTER the six-month period following the
last day of the CBA.
Azucena:
The Consitution has not overlooked the rights of capital. It provides that, the State recognizes the indispensable role of the private
sector, encourages private enterprise, and provides incentives to needed investments (Art. II, Sec. 20).
While labor is entitled to a just share in the fruits of production, the enterprise has an equally important right not only to reasonable
returns on investment but also to expansion and growth.
Shared Responsibility between workers and employers Preferential use of voluntary modes of settling disputes.
a. Foundation: Police Power and State Protection
While social justice is the raison detre of labor laws, their basis or foundation is the police power of the State.
a. State legislatures may enact laws for the protection of the safety and health of employees.
b. Right of every person to pursue a business, occupation, or profession is subject to the paramount right of the government
as a part of its police power to impose such restrictions and regulations as the protection of the public may require.
Legal Classification: (discussed in light of the suspension of deployment of women)
a. such classification rest on substantial distinctions

b. they are germane to the purpose of the law
c. they are not confined to existing conditions
d. they apply equally to all members of the same class
b. Foundation: Police Power and State Protection
CMS Estate, Inc. v. Social Security System, 132 SCRA 108 (1984)
The case of two businesses, one was in real estate and the other was in the logging business. One owner was demanding for a
refund from SSS and it refused to subscribe the employees of the 2nd business to SSS because the business has not been in
operation for 2 years (which was the requirement of the law) yet.
The Social Security Law was enacted pursuant to the policy of the government to develop, establish gradually and perfect a social
security system which shall be suitable to the needs of the people throughout the Philippines, and shall provide protection against
the hazards of disability, sickness, old age and death. It is thus clear that said enactment implements the general welfare
mandate of the Constitution and constitutes a legitimate exercise of the police power of the State.
It is the intention of the law to cover as many persons as possible so as to promote the constitutional objective of social justice.
Compulsory coverage of the employer shall take effect on the first day of his operation, and that of the employee on the date of his
employment (RA 1161 as amended by RA 2658). The two year prescription of the prior law must be considered prevailed over by
the later law and moreover, the legislative intent must be given effect.
c. Limits of Use
PLDT v. NLRC, 164 SCRA 671 (1988)
PLDT employee promised to facilitate the approval of the complainants applications for telephone installation and then received
from them an amount of money in consideration of her promise.
The rule embodied in the Labor Code is that a person dismissed for cause as defined therein is not entitled to separation pay. The
cases abovecited (where different cases were cited proving that some companies still allowed separation pay despite the degree of
the ground upon which the employees were being dismissed for) constitute the exception, based upon considerations of equity.
Equity has been defined as justice outside law, being ethical rather than jural and belonging to the sphere of morals than of law. It
is grounded on the precepts of conscience and not on any sanction of positive law. Hence, it cannot prevail against the expressed
provision of the labor laws allowing dismissal of employees for cause and without any provision for separation pay.
Separation pay shall be allowed as a measure of social justice only in those instances where the employee is calidly dismissed for
causes other than serious misconduct or those reflecting on his moral character. Where the reason for the valid dismissal is, for
example, habitual intoxication or an offense involving moral turpitude, life theft or illicit sexual relations with a fellow worker, the
employer may not be required to give the dismissed employee separation pay or financial assistance, or whatever other name it is
called on the ground of social justice.
The policy of social justice is not intended to countenance wrongdoing simply because it is committed by the underprivileged. At
best it may mitigate the penalty but it certainly will not condone the offense. Compassion for the poor is an imperative of every
humane society but only when the recipient is not a rascal claiming an underserved privilege. Social justice cannot be permitted to
be refuge of scoundrels any more than can equity be an impediment to the punishment of the guilty. Those who invoke social
justive may do so only if their hands are clean and their motives blameless and not simply because they happen to be poor.
Agabon v. NLRC, 442 SCRA 573 (2004)

Employees were claiming illegal dismissal. Employer was asserting that there was abandonment.
Abandonment is the deliberate and unjustified refusal of an employee to resume his employment. It is a form of neglect of duty,
hence, a just cause for termination of employment by the employer. For a valid finding of abandonment: (1) failure to report for
work or absence without valid or justifiable reason (2) clear intention to server employer-employee relationship with the second as
the more determinative factor which is manifested by overt acts from which it may be deduced that the employees has no more
intention to work.
Wenphil or Belated Due Process Rule: where the employer had a valid reason to dismiss an employee but did not follow the
due process requirement, the dismissal may be upheld but the employer will be penalized to pay an indemnity to the employee.
But this was re-examined in Serrano case wherein the Court required that the employer pay the full backwages from the time of
dismissal until the time the Court finds the dismissal was for a just or authorized cause. It was because of a significant number of
cases involving dismissals without requisite notices.
In Agabon, the Court abandoned Serrano and followed Wenphil only that the sanctions imposed on the employer must be stiffer
than those in Wenphil.
An employee who is clearly guilty of conduct violative of Article 282 should not be protected by the Social Justice Clause of the
Constitution. Social justice, as the terms suggests, should be used only to correct an injustice.
JP Laurel, in Calalang: social justice must be founded on the recognition of the necessity of interdependence among diverse units of
a society and of the protection that should be equally and evenly extended to all groups as a combined forc e in our social and
economic life, consistent with the fundamental and paramount objective of the state of promoting the health, comfort and quiet of
all person, and of bringing about the greatest good to the greatest number.
Social justice is not based on rigid formulas set in stone. It has to allow for changing times and circumstances.
5. Legal Basis
a. International Conventions
International School Alliance of Educators v. Quisumbing, 333 SCRA 13 (2000)
Foreigner teachers were given more benefits than the local teachers.
International law, which springs from general principle of law, likewise proscribes discrimination. General principles of law include
principles of equity i.e the general principles of fairness and justice, based on the test of what is reasonable.
The following embody the general principle against discrimination, the very antithesis of fairness and justice.
Universal Declaration of Human Rights

The International Covenant on Economic, Social, and Cultural Rights
The International Convention on the Elimination of All Forms of Racial Discrimination
The Convention against Discrimination in Education
The Convention Concerning Discrimination in Respect of Employment and Occupation
Mentioned in the case:

Bargaining Unit: is a group of employees of a given employer, comprised of all or less than all of the entire body of employees,
consistent with equity to the employer indicate to be the best suited to serve the reciprocal rights and duties of the parties under
the collective bargaining provisions of the law.
The factors determining the appropriate collective bargaining unit are: (1) the will of the employees (2) affinity and unity of the
employees interest, such as substantial similarity of work and duties, or similarity of compensation and working conditions (3) prior
collective bargaining history (4) similarity of employment status.
b. 1987 Constitution, Art. II, Secs. 5, 9, 10, 13, 14, 18; Art. XIII, Secs. 1, 3, 14
ART. II
Section 5. The maintenance of peace and order, the protection of life, liberty, and property, and promotion of the
general welfare are essential for the enjoyment by all the people of the blessings of democracy.
Section 9. The State shall promote a just and dynamic social order that will ensure the prosperity and independence
of the nation and free the people from poverty through policies that provide adequate social services, promote full
employment, a rising standard of living, and an improved quality of life for all.
Section 10. The State shall promote social justice in all phases of national development.
Section 13. The State recognizes the vital role of the youth in nation-building 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.
Section 14. The State recognizes the role of women in nation-building, and shall ensure the fundamental equality
before the law of women and men.
Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and
promote their welfare.
Art. XIII
Section 1. The Congress shall give highest priority to the enactment of measures that protect and enhance the right
of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities
by equitably diffusing wealth and political power for the common good.
Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.
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.
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.
Section 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.
See also: 1935 Const., Art. XIV, Sec., 6; 1973 Const., Art. II, Sec. 9
1935 Constitution, Art. XIV, Sec. 6
Section 6. The State shall afford protection to labor, especially to working women, and minors, and shall regulate the
relations between the landowner and tenant, and between labor and capital in industry and in agriculture. The State
may provide for compulsory arbitration.
1973 Const. Art. II, Sec. 9
Section 9. The State shall afford protection to labor, promote full employment and equality in employment, ensure
equal work opportunities regardless of sex, race, or creed, and regulate the relation between workers and employers.
The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and
humane conditions of work. The State may provide for compulsory arbitration.
c. Labor Code (LC) and Omnibus Rules Implementing the Labor Code
d. New Civil Code of the Philippines (NCC), Arts. 19, 21, 1700-1701
Art. 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give
everyone his due, and observe honesty and good faith.
Art. 21. Any person who wilfully causes loss or injury to another in a manner that is contrary to morals, good customs
or public policy shall compensate the latter for the damage.
Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed with public
interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws
on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor
and similar subjects.
Art. 1701. Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of
the public.
6. Sources of Law
a. Labor Code and Related Special Legislation (Implementing Rules)
b. Contract Art. 1305-1306, New Civil Code
Art. 1305. A contract is a meeting of minds between two persons whereby one binds himself, with respect to the
other, to give something or to render some service. (1254a)
Art. 1306. The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem
convenient, provided they are not contrary to law, morals, good customs, public order, or public policy. (1255a)
c. Collective Bargaining Agreement
DOLE Phils. v. Pawis ng Makabayang Obrero, 395 SCRA 112 (2003)
Interpretation of the free meals provision in the CBA. Is it after the employee has worked only after more than three hours of work
or those who have rendered exactly three hours of overtime work?
The disputed provision of the CBA is clear and unambiguous. The terms of the CBA is not susceptible to any other interpretation.
Hence the literal meaning of free meals after three (3) hours of overtime work shall prevail, which is simply that an employee
shall be entitled to a free meal if he has rendered exactly, or no less than, three hours of overtime work, not after more than or
in excess of three hours overtime work.
Found in the case: Management prerogative: The exercise of management prerogative is not unlimited. It is subject to the
limitations found in law, a collective bargaining agreement or the general principles of fair play and justice. This situation constitutes
one of the limitations. The CBA is the norm of conduct between the petitioner and private respondent and compliance therewith is
mandated by the express policy of the law.
d. Past Practices
Davao Fruits Corporation v. Associated labor Union, 225 SCRA 562 (1993)
Issue: WON in the computation of the 13th month pay given by employers to their employees under PD 851, payments for sick,
vacation and maternity leaves, premiums for work done rest days and special holidays and pay for regular holidays may be
excluded in the computation and payment thereof, regardless of long-standing company practice.
A company practice favorable to the employees had indeed been established and the payments made pursuant
thereto, ripened into benefits enjoyed by them. And any benefit and supplement being enjoyed by the employees
cannot be reduced, diminished, discontinued or eliminated by the employer, by virtue of Sec 10 of the Rules and
Regulations Implementing PD 851 and Art 100 of the Labor Code which prohibit the diminution or elimination b the
employer of the employees existing benefits.
The considerable length of time the questioned items had been included by petitioner indicates a unilateral and voluntary act on its
part, sufficient in itself to negate any claim of mistake.
Samahang Manggagawa sa Top Form Manufacturing-United Workers of the Phil. (SMTFM-UWP v. NLRC, 295 SCRA 171
(1998)
The case wherein the employer was charged as having committed an unfair labor practice by bargaining in bad faith and
discriminating against in employees by promising at a collective bargaining conference to implement any government-mandated
wage increases on an across-the-board basis.
Past promises which were written in the minutes of the meeting. The proposal was never embodied in the CBA, thus, the promise
remained just that, a promise, the implementation which cannot be validly demanded under the law.
The law provides remedies to the petitioner union to compel priv resp to incorporate this specific economic proposal in the CBA,
which they did not do.
The CBA is the law between the contracting partiesthe collective bargaining representative and the employer-company.
Compliance with a CBA is mandated by the expressed policy to give protection to labor. In the same vein, CBA provision should be
construed liberally rather than narrowly and technically, and the courts must place a practical and realistic construction upon it,
giving due consideration to the context in which it is negotiated and purpose which it is intended to serve. This is founded on the
dictum that a CBA is not an ordinary contract but one impressed with public interest. It goes without saying, however, that only
provisions embodied in the CBA should be so interpreted and complied with.
No benefits or privileges previously enjoyed by petitioner union and the other employees were withdrawn as a result of the manner
by which private resp implemented the wage orders.
American Wire and Cable Daily rated Employees Union American Wire and Cable co., Inc., 457 SCRA 684 (2005)
The company suddenly withdrew and denied certain benefits and entitlements which the employees have long enjoyed like service
awards, 35% premium pay of an employees basic pay for work rendered during Holy Monday, Tuesday, Wednesday, December 23,
26, 27, 28, and 29, Christmas Party and Promotional Increases.
It is critical that a determination must be first made whether the benefits/entitlements are in the nature of a bonus or not, and
assuming they are so, whether they are demandable and enforceable obligations.
Bonus: is an amount granted and paid to an employee for his industry and loyalty which contributed to the success of the
employers business and made possible the realization of profits. It is an act of generosity granted by an enlightened employer to
spur the employee to greater efforts for the success of the business and realization of bigger profits. The granting of a bonus is a
management prerogative, something given in addition to what is ordinarily received by or strictly due the recipient. Thus, a bonus is
not a demandable and enforceable obligation, except when it is made part of the wage, salary or compensation of the employee.
Issue: WON these bonuses can be considered part of the wage or salary or compensation making them enforceable obligations.
Held: No. For a bonus to be enforceable, it must have been promised by the employer and expressly agreed upon by the parties or
it must have had a fixed amount and had been a long and regular practice on the part of the employer.
The benefits/entitlements in question were never subjects of any express agreement between the parties. They were never
incorporated in the CBA. As observed by the VA, the records reveal that these benefits/entitlements have not been subjects of any
express agreement between the union and the company, and have not yet been incorporated in the CBA.
Downtrend was clear in the service award amount and the parties venue were changed from paid venues to one which was free of
charge.
To be considered a regular practice, the giving of the bonus should have been done over a long period of time, and
must be shown to have been consistent and deliberate.
e. Company Policies
China Banking Corporation v. Borromeo, 440 SCRA 621 (2004)
The case of a manager who was consistently promoted because of a highly satisfactory performance which landed him at the AVP
spot only to find out that he has done irregularities in approving several DAUD/BP in favor of one Maniwan.
The Banks SOP provides a restitution/forfeiture of benefits provision.
It is well recognized that company policies and regulations are, unless shown to be grossly oppressive or contrary to law, generally
binding, and valid on the parties and must be complied with until finally revised or amended unilaterally or preferably through
negotiation or by competent authority. Moreover, management has the prerogative to discipline its employees and to impose
appropriate penalties on erring workers pursuant to company rules and regulations. With more reason should these truisms apply to
the respondent, who, by reason of his position, was required to act judiciously and to exercise his authority in harmony with
company policies.
Business enterprises have a prerogative to discipline its employees and to impose appropriate penalties on erring workers pursuant
to company rules and regulations which must be respected. The law, in protecting the rights of labor, authorized neither oppression
nor self-destruction of an employer company which itself is possessed of rights that must be entitled to recognition and respect.
7. Classification
a. Labor Standards
b. Labor Relations
c. Welfare Legislation
II. LABOR CODE OF THE PHILIPPINES
A. Brief History
B. General Provisions
1. 1. Decree Title, Art. 1
ARTICLE 1. Name of Decree. - This Decree shall be known as the "Labor Code of the Philippines".
2. Effectivity, Art. 2
ART. 2. Date of effectivity. - This Code shall take effect six (6) months after its promulgation.
3. Policy Declaration, Art. 3
ART. 3. Declaration of basic policy. - The State shall afford protection to labor, promote full employment, ensure
equal work opportunities regardless of sex, race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of
tenure, and just and humane conditions of work.
4. Construction in Favor of Labor, Art. 4
ART. 4. Construction in favor of labor. - All doubts in the implementation and interpretation of the provisions of
this Code, including its implementing rules and regulations, shall be resolved in favor of labor.
Salinas Jr. v. NLRC, 319 SCRA 54 (1999)
Reyes v. Court of Appeals, 409 SCRA 267 (2003)

G&M Philippines, Inc. v. Romil Cuambot, GR No. 162308, Nov. 22, 2006
2. Rule Making Power, Art. 5
ART. 5. Rules and regulations. - The Department of Labor and other government agencies charged with the
administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing
rules and regulations. Such rules and regulations shall become effective fifteen (15) days after announcement of
their adoption in newspapers of general circulation.
Kapisanan ng mga Manggagawang Pinagyakap v. NLRC, 152 SCRA 6 (1987)

3. Technical Rules Not Binding, Art. 221
ART. 221. Technical rules not binding and prior resort to amicable settlement. - In any proceeding before the
Commission or any of the Labor Arbiters, the rules of evidence prevailing in courts of law or equity shall not be
controlling and it is the spirit and intention of this Code that the Commission and its members and the Labor Arbiters
shall use every and all reasonable means to ascertain the facts in each case speedily and objectively and without
regard to technicalities of law or procedure, all in the interest of due process. In any proceeding before the
Commission or any Labor Arbiter, the parties may be represented by legal counsel but it shall be the duty of the
Chairman, any Presiding Commissioner or Commissioner or any Labor Arbiter to exercise complete control of the
proceedings at all stages.
Huntington Steel Products, Inc. v. NLRC, 442 SCRA 551 (2004)
4. Applicability, Art. 6, 276; Constitution, Art. IX-B, Sec. 2(1)

ART. 6. Applicability. - All rights and benefits granted to workers under this Code shall, except as may otherwise be
provided herein, apply alike to all workers, whether agricultural or non-agricultural. (As amended by Presidential
Decree No. 570-A, November 1, 1974).
ART. 276. Government employees. - The terms and conditions of employment of all government employees,
including employees of government-owned and controlled corporations, shall be governed by the Civil Service Law,
rules and regulations. Their salaries shall be standardized by the National Assembly as provided for in the New
Constitution. However, there shall be no reduction of existing wages, benefits and other terms and conditions of
employment being enjoyed by them at the time of the adoption of this Code.
Constitution, Art. IX-B, Sec. 2(1)
Section 2. (1) The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the
Government, including government-owned or controlled corporations with original charters.
5. Enforcement and Sanctions Arts. 217 (a) (2), (3), (4), (6); 128-129; 288-292; Consti., Art III, Secs. 11 and 16
ART. 217. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as otherwise provided under this Code,
the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days
after the submission of the case by the parties for decision without extension, even in the absence of stenographic
notes, the following cases involving all workers, whether agricultural or non-agricultural:
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of
pay, hours of work and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee
relations;
6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other claims
arising from employer-employee relations, including those of persons in domestic or household service, involving an
amount exceeding five thousand pesos (P5,000.00) regardless of whether accompanied with a claim for
reinstatement.
ART. 128. Visitorial and enforcement power. - (a) The Secretary of Labor and Employment or his duly authorized
representatives, including labor regulation officers, shall have access to employers records and premises at any time
of the day or night whenever work is being undertaken therein, and the right to copy therefrom, to question any
employee and investigate any fact, condition or matter which may be necessary to determine violations or which may
aid in the enforcement of this Code and of any labor law, wage order or rules and regulations issued pursuant
thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and in cases where the
relationship of employer-employee still exists, the Secretary of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance orders to give effect to the labor standards provisions of
this Code and other labor legislation based on the findings of labor employment and enforcement officers or industrial
safety engineers made in the course of inspection. The Secretary or his duly authorized representatives shall issue
writs of execution to the appropriate authority for the enforcement of their orders, except in cases where the employer
contests the findings of the labor employment and enforcement officer and raises issues supported by documentary
proofs which were not considered in the course of inspection. (As amended by Republic Act No. 7730, June 2, 1994).
An order issued by the duly authorized representative of the Secretary of Labor and Employment under this Article
may be appealed to the latter. In case said order involves 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 Secretary of Labor and Employment in the amount equivalent to the monetary award in the order appealed from.
(As amended by Republic Act No. 7730, June 2, 1994).
(c) The Secretary of Labor and Employment may likewise order stoppage of work or suspension of operations of any
unit or department of an establishment when non-compliance with the law or implementing rules and regulations
poses grave and imminent danger to the health and safety of workers in the workplace. Within twenty-four hours, a
hearing shall be conducted to determine whether an order for the stoppage of work or suspension of operations shall
be lifted or not. In case the violation is attributable to the fault of the employer, he shall pay the employees concerned
their salaries or wages during the period of such stoppage of work or suspension of operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the orders of
the Secretary of Labor and Employment or his duly authorized representatives issued pursuant to the authority
granted under this Article, and no inferior court or entity shall issue temporary or permanent injunction or restraining
order or otherwise assume jurisdiction over any case involving the enforcement orders issued in accordance with this
Article.
(e) Any government employee found guilty of violation of, or abuse of authority, under this Article shall, after
appropriate administrative investigation, be subject to summary dismissal from the service.
(f) The Secretary of Labor and Employment may, by appropriate regulations, require employers to keep and maintain
such employment records as may be necessary in aid of his visitorial and enforcement powers under this Code.
ART. 129. Recovery of wages, simple money claims and other benefits. - Upon complaint of any interested party, the
Regional Director of the Department of Labor and Employment or any of the duly authorized hearing officers of the
Department is empowered, through summary proceeding and after due notice, to hear and decide any matter
involving the recovery of wages and other monetary claims and benefits, including legal interest, owing to an
employee or person employed in domestic or household service or househelper under this Code, arising from
employer-employee relations: Provided, That such complaint does not include a claim for reinstatement: Provided
further, That the aggregate money claims of each employee or househelper does not exceed Five thousand pesos
(P5,000.00). The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30) calendar
days from the date of the filing of the same. Any sum thus recovered on behalf of any employee or househelper
pursuant to this Article shall be held in a special deposit account by, and shall be paid on order of, the Secretary of
Labor and Employment or the Regional Director directly to the employee or househelper concerned. Any such sum
not paid to the employee or househelper because he cannot be located after diligent and reasonable effort to locate
him within a period of three (3) years, shall be held as a special fund of the Department of Labor and Employment to
be used exclusively for the amelioration and benefit of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on
the same grounds provided in Article 223 of this Code, within five (5) calendar days from receipt of a copy of said
decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading required or allowed under its rules.
The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid
wages and other monetary claims and benefits, including legal interest, found owing to any employee or househelper
under this Code. (As amended by Section 2, Republic Act No. 6715, March 21, 1989).
ART. 288. Penalties. - Except as otherwise provided in this Code, or unless the acts complained of hinge on a
question of interpretation or implementation of ambiguous provisions of an existing collective bargaining agreement,
any violation of the provisions of this Code declared to be unlawful or penal in nature shall be punished with a fine of
not less than One Thousand Pesos (P1,000.00) nor more than Ten Thousand Pesos (P10,000.00) or imprisonment
of not less than three months nor more than three years, or both such fine and imprisonment at the discretion of the
court.
In addition to such penalty, any alien found guilty shall be summarily deported upon completion of service of
sentence.
Any provision of law to the contrary notwithstanding, any criminal offense punished in this Code, shall be under the
concurrent jurisdiction of the Municipal or City Courts and the Courts of First Instance. (As amended by Section 3,
Batas Pambansa Bilang 70).
ART. 289. Who are liable when committed by other than natural person. - If the offense is committed by a
corporation, trust, firm, partnership, association or any other entity, the penalty shall be imposed upon the guilty
officer or officers of such corporation, trust, firm, partnership, association or entity.
Title II
PRESCRIPTION OF OFFENSES AND CLAIMS
ART. 290. Offenses. - Offenses penalized under this Code and the rules and regulations issued pursuant thereto
shall prescribe in three (3) years.
All unfair labor practice arising from Book V shall be filed with the appropriate agency within one (1) year from accrual
of such unfair labor practice; otherwise, they shall be forever barred.
ART. 291. Money claims. - All money claims arising from employer-employee 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
accordance with the law and rules at the time their causes of action accrued.
ART. 292. Institution of money claims. - Money claims specified in the immediately preceding Article shall be filed
before the appropriate entity independently of the criminal action that may be instituted in the proper courts.
Pending the final determination of the merits of money claims filed with the appropriate entity, no civil action arising
from the same cause of action shall be filed with any court. This provision shall not apply to employees compensation
case which shall be processed and determined strictly in accordance with the pertinent provisions of this Code.
ART. III, SEC. 11 AND 16, CONSTITUTION

Section 11. Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to
any person by reason of poverty.
Section 16. All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-judicial, or
administrative bodies.
C. Work Relationship
1. Employer and Employee Relationship
a. Definition of Employer and Employee, Arts. 97 (a) (b) (c), 167 (f)
(g) (h), 212 (e) (f)
ART. 97. Definitions. - As used in this Title:
(a) "Person" means an individual, partnership, association, corporation, business trust, legal representatives,
or any organized group of persons.
(b) "Employer" includes any person acting directly or indirectly in the interest of an employer in relation to an
employee and shall include the government and all its branches, subdivisions and instrumentalities, all
government-owned or controlled corporations and institutions, as well as non-profit private institutions, or
organizations.
(c) "Employee" includes any individual employed by an employer.
Art. 167. Definition of Terms.As used in this Title, unless the context indicates otherwise:
(f) Employer means any person, natural or juridical, employing the services of the employee.
(g) Employee means any person compulsorily covered by the GSIS under Commonwealth Act Numbered One
hundred eighty-six, as amended, including the members of the Armed Forces of the Philippines, and any person
employed as casual, emergency, temporary, substitute or contractual, or any person compulsorily covered by the
SSS under Republic Act Numbered Eleven hundred sixty-one, as amended.
(h) Person means any individual, partnership, firm, association, trust, corporation or legal representative thereof.
Art. 212.
(e) "Employer" includes any person acting in the interest of an employer, directly or indirectly. The term shall not
include any labor organization or any of its officers or agents except when acting as employer.
(f) "Employee" includes any person in the employ of an employer. The term shall not be limited to the employees of a
particular employer, unless the Code so explicitly states. It shall include any individual whose work has ceased as a
result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained
any other substantially equivalent and regular employment.
b. Factors/Tests
Ruga v. NLRC, 181 SCRA 437 (1990)
Perpetual Help Credit v. Faburada et al., 366 SCRA 693 (2001)

Vicente Sy v. Court of Appeals, 398 SCRA 301 (2003)
Chavez v. NLRC, 448 SCRA 478 (2005)
Angelina Francisco v. NLRC, et al., GR No. 170087, Aug. 31, 2006

c. Piercing the Corporate Veil
Pamplona Plantatin Co., Inc. v. Tinghil, 450 SCRA 421 (2005)
2. Independent Contractor and Labor-only Contractor, Art. 106-107, 109; DO No. 18-02, S 2002
ART. 106. Contractor or subcontractor. - Whenever an employer enters into a contract with another person for the
performance of the formers work, the employees of the contractor and of the latters subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails to pay the wages of his employees in accordance with this
Code, the employer shall be jointly and severally liable with his contractor or subcontractor to such employees to the
extent of the work performed under the contract, in the same manner and extent that he is liable to employees
directly employed by him.
The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the contracting-out of
labor to protect the rights of workers established under this Code. In so prohibiting or restricting, he may make
appropriate distinctions between labor-only contracting and job contracting as well as differentiations within these
types of contracting and determine who among the parties involved shall be considered the employer for purposes of
this Code, to prevent any violation or circumvention of any provision of this Code.
There is "labor-only" contracting where the person supplying workers to an employer does not have substantial
capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers
recruited and placed by such person are performing activities which are directly related to the principal business of
such employer. In such cases, the person or intermediary shall be considered merely as an agent of the employer
who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him.
ART. 107. Indirect employer. - The provisions of the immediately preceding article shall likewise apply to any person,
partnership, association or corporation which, not being an employer, contracts with an independent contractor for the
performance of any work, task, job or project.
DEPARTMENT ORDER NO. 18 - 02

(Series of 2002)
.
.
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED
.
.
By virtue of the power vested in the Secretary of Labor and Employment under Articles 5 (Rule-making) and
106 (Contractor or Subcontractor) of the Labor Code of the Philippines, as amended, the following
regulations governing contracting and subcontracting arrangements are hereby issued:
Section 1. Guiding principles. - Contracting and subcontracting arrangements are expressly allowed by law
and are subject to regulation for the promotion of employment and the observance of the rights of workers to
just and humane conditions of work, security of tenure, self-organization, and collective bargaining. Labor-
only contracting as defined herein shall be prohibited.
Section 2 . Coverage. - These Rules shall apply to all parties of contracting and subcontracting arrangements
where employer-employee relationship exists. Placement activities through private recruitment and
placement agencies as governed by Articles 25 to 39 of the Labor Code are not covered by these Rules.
Section 3. Trilateral Relationship in Contracting Arrangements. - In legitimate contracting, there exists a

trilateral relationship under which there is a contract for a specific job, work or service between the principal
and the contractor or subcontractor, and a contract of employment between the contractor or subcontractor
and its workers. Hence, there are three parties involved in these arrangements, the principal which decides
to farm out a job or service to a contractor or subcontractor, the contractor or subcontractor which has the
capacity to independently undertake the performance of the job, work or service, and the contractual
workers engaged by the contractor or subcontractor to accomplish the job work or service.
Section 4. Definition of Basic Terms. - The following terms as used in these Rules, shall mean:
(a) "Contracting" or "subcontracting" refers to an arrangement whereby a principal agrees to put out or farm
out with a contractor or subcontractor the performance or completion of a specific job, work or service
within a definite or predetermined period, regardless of whether such job, work or service is to be performed
or completed within or outside the premises of the principal.
(b) "Contractor or subcontractor" refers to any person or entity engaged in a legitimate contracting or
subcontracting arrangement.
(c) "Contractual employee" includes one employed by a contractor or subcontractor to perform or complete
a job, work or service pursuant to an arrangement between the latter and a principal.
(d) "Principal" refers to any employer who puts out or farms out a job, service or work to a contractor or
subcontractor.
Section 5. Prohibition against labor-only contracting. - Labor-only contracting is hereby declared prohibited.
For this purpose, labor-only contracting shall refer to an arrangement where the contractor or subcontractor
merely recruits, supplies or places workers to perform a job, work or service for a principal, and any of the
following elements are present:
(i) The contractor or subcontractor does not have substantial capital or investment which relates to the job,
work or service to be performed and the employees recruited, supplied or placed by such contractor or
subcontractor are performing activities which are directly related to the main business of the principal; or
(ii) the contractor does not exercise the right to control over the performance of the work of the contractual
employee.
The foregoing provisions shall be without prejudice to the application of Article 248 (C ) of the Labor Code,
as amended.
"Substantial capital or investment" refers to capital stocks and subscribed capitalization in the case of
corporations, tools, equipment, implements, machineries and work premises, actually and directly used by
the contractor or subcontractor in the performance or completion of the job, work or service contracted out.
The "right to control" shall refer to the right reserved to the person for whom the services of the contractual
workers are performed, to determine not only the end to be achieved, but also the manner and means to be
used in reaching that end.
Section 6. Prohibitions. - Notwithstanding Section 5 of these Rules, the following are hereby declared
prohibited for being contrary to law or public policy:
(a) Contracting out of a job, work or service when not done in good faith and not justified by the exigencies
of the business and the same results in the termination of regular employees and reduction of work hours or
reduction or splitting of the bargaining unit;
(b) Contracting out of work with a "cabo" as defined in Section 1 (ii), Rule I, Book V of these Rules. "Cabo"
refers to a person or group of persons or to a labor group which, in the guise of a labor organization,
supplies workers to an employer, with or without any monetary or other consideration whether in the
capacity of an agent of the employer or as an ostensible independent contractor;
(c) Taking undue advantage of the economic situation or lack of bargaining strength of the contractual
employee, or undermining his security of tenure or basic rights, or circumventing the provisions of regular
employment, in any of the following instances:
(i) In addition to his assigned functions, requiring the contractual employee to perform functions which are
currently being performed by the regular employees of the principal or of the contractor or subcontractor;
(ii) Requiring him to sign, as a precondition to employment or continued employment, an antedated

resignation letter; a blank payroll; a waiver of labor standards including minimum wages and social or
welfare benefits; or a quitclaim releasing the principal, contractor or subcontractor from any liability as to
payment of future claims; and
(iii) Requiring him to sign a contract fixing the period of employment to a term shorter than the term of the
contract between the principal and the contractor or subcontractor, unless the latter contract is divisible into
phases for which substantially different skills are required and this is made known to the employee at the
time of engagement;
(d) Contracting out of a job, work or service through an in-house agency which refers to a contractor or
subcontractor engaged in the supply of labor which is owned, managed or controlled by the principal and
which operates solely for the principal;
(e) Contracting out of a job, work or service directly related to the business or operation of the principal by
reason of a strike or lockout whether actual or imminent;
(f) Contracting out of a job, work or service being performed by union members when such will interfere with,
restrain or coerce employees in the exercise of their rights to self organization as provided in Art. 248 (c) of
the Labor Code, as amended.
Section 7. Existence of an employer-employee relationship. - The contractor or subcontractor shall be

considered the employer of the contractual employee for purposes of enforcing the provisions of the Labor
Code and other social legislation. The principal, however, shall be solidarily liable with the contractor in the
event of any violation of any provision of the Labor Code, including the failure to pay wages.
The principal shall be deemed the employer of the contractual employee in any of the following cases as
declared by a competent authority:
(a) where there is labor-only contracting; or
(b) where the contracting arrangement falls within the prohibitions provided in Section 6 (Prohibitions)
hereof.
Section 8. Rights of Contractual Employees. - Consistent with Section 7 of these Rules, the contractual
employee shall be entitled to all the rights and privileges due a regular employee as provided for in the Labor
Code, as amended, to include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive leave, rest days, overtime pay, holiday pay, 13th month pay
and separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and peaceful concerted action; and
(e) Security of tenure.
Section 9. Contract between contractor or subcontractor and contractual employee. - Notwithstanding oral or
written stipulations to the contrary, the contract between the contractor or subcontractor and the contractual
employee, which shall be in writing, shall include the following terms and conditions:
(a) The specific description of the job, work or service to be performed by the contractual employee;
(b) The place of work and terms and conditions of employment, including a statement of the wage rate
applicable to the individual contractual employee; and
(c) The term or duration of employment, which shall be coextensive with the contract of the principal and
subcontractor, or with the specific phase for which the contractual employee is engaged, as the case may
be.
The contractor or subcontractor shall inform the contractual employee of the foregoing terms and conditions
on or before the first day of his employment.
Section 10. Effect of Termination of Contractual Employment. - In cases of termination of employment prior
to the expiration of the contract between the principal and the contractor or subcontractor, the right of the
contractual employee to separation pay or other related benefits shall be governed by the applicable laws
and jurisprudence on termination of employment.
Where the termination results from the expiration of the contract between the principal and the contractor or
subcontractor, or from the completion of the phase of the job, work or service for which the contractual
employee is engaged, the latter shall not be entitled to separation pay. However, this shall be without
prejudice to completion bonuses or other emoluments, including retirement pay as may be provided by law
or in the contract between the principal and the contractor or subcontractor.
Section 11. Registration of Contractors or Subcontractors. - Consistent with the authority of the Secretary of
Labor and Employment to restrict or prohibit the contracting out of labor through appropriate regulations, a
registration system to govern contracting arrangements and to be implemented by the Regional Offices is
hereby established.
The registration of contractors and subcontractors shall be necessary for purposes of establishing an
effective labor market information and monitoring.
Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting.
Section 12. Requirements for registration. - A contractor or subcontractor shall be listed in the registry of
contractors and subcontractors upon completion of an application form to be provided by the DOLE. The
applicant contractor or subcontractor shall provide in the application form the following information:
(a) The name and business address of the applicant and the area or areas where it seeks to operate;
(b) The names and addresses of officers, if the applicant is a corporation, partnership, cooperative or union;
(c) The nature of the applicant's business and the industry or industries where the applicant seeks to
operate;
(d) The number of regular workers; the list of clients, if any; the number of personnel assigned to each client,
if any and the services provided to the client;
(e) The description of the phases of the contract and the number of employees covered in each phase, where
appropriate; and
(f) A copy of audited financial statements if the applicant is a corporation, partnership, cooperative or a
union, or copy of the latest ITR if the applicant is a sole proprietorship.
The application shall be supported by:

(a) A certified copy of a certificate of registration of firm or business name from the Securities and Exchange
Commission (SEC), Department of Trade and Industry (DTI), Cooperative Development Authority (CDA), or
from the DOLE if the applicant is a union; and
(b) A certified copy of the license or business permit issued by the local government unit or units where the
contractor or subcontractor operates.
The application shall be verified and shall include an undertaking that the contractor or subcontractor shall
abide by all applicable labor laws and regulations.
Section 13. Filing and processing of applications. - The application and its supporting documents shall be
filed in triplicate in the Regional Offices where the applicant principally operates. No application for
registration shall be accepted unless all the foregoing requirements are complied with. The contractor or
subcontractor shall be deemed registered upon payment of a registration fee of P100.00 to the Regional
Office.
Where all the supporting documents have been submitted, the Regional Office shall deny or approve the
application within seven (7) working days after its filing.
Upon registration, the Regional Office shall return one set of the duly-stamped application documents to the
applicant, retain one set for its file, and transmit the remaining set to the Bureau of Local Employment. The
Bureau shall devise the necessary forms for the expeditious processing of all applications for registration.
Section 14. Duty to produce copy of contract between the principal and the contractor or subcontractor. -
The principal or the contractor or subcontractor shall be under an obligation to produce a copy of the
contract between the principal and the contractor in the ordinary course of inspection. The contractor shall
likewise be under an obligation to produce a copy of the contract of employment of the contractual worker
when directed to do so by the Regional Director or his authorized representative.
A copy of the contract between the contractual employee and the contractor or subcontractor shall be
furnished the certified bargaining agent, if there is any.
Section 15. Annual Reporting of Registered Contractors. - The contractor or subcontractor shall submit in
triplicate its annual report using a prescribed form to the appropriate Regional Office not later than the 15th
of January of the following year. The report shall include:
(a) A list of contracts entered with the principal during the subject reporting period;
(b) The number of workers covered by each contract with the principal;
(c) A sworn undertaking that the benefits from the Social Security System (SSS), the Home Development
Mutual Fund (HDMF), PhilHealth, Employees Compensation Commission (ECC), and remittances to the
Bureau of Internal Revenue (BIR) due its contractual employees have been made during the subject reporting
period.
The Regional Office shall return one set of the duly-stamped report to the contractor or subcontractor, retain
one set for its file, and transmit the remaining set to the Bureau of Local Employment within five (5) days
from receipt thereof.
Section 16. Delisting of contractors or subcontractors. - Subject to due process, the Regional Director shall
cancel the registration of contractors or subcontractors based on any of the following grounds:
(a) Non-submission of contracts between the principal and the contractor or subcontractor when required to
do so;
(b) Non-submission of annual report;
(c) Findings through arbitration that the contractor or subcontractor has engaged in labor-only contracting
and the prohibited activities as provided in Section 6 (Prohibitions) hereof; and
(d) Non-compliance with labor standards and working conditions.
Section 17. Renewal of registration of contractors or subcontractors. - All registered contractors or

subcontractors may apply for renewal of registration every three years. For this purpose, the Tripartite
Industrial Peace Council (TIPC) as created under Executive Order No. 49, shall serve as the oversight
committee to verify and monitor the following:
(a) Engaging in allowable contracting activities; and
(b) Compliance with administrative reporting requirements.
Section 18. Enforcement of Labor Standards and Working Conditions. - Consistent with Article 128 (Visitorial
and Enforcement Power) of the Labor Code, as amended, the Regional Director through his duly authorized
representatives, including labor regulation officers shall have the authority to conduct routine inspection of
establishments engaged in contracting or subcontracting and shall have access to employer's records and
premises at any time of the day or night whenever work is being undertaken therein, and the right to copy
therefrom, to question any employee and investigate any fact, condition or matter which may be necessary
to determine violations or which may aid in the enforcement of the Labor Code and of any labor law, wage
order, or rules and regulations issued pursuant thereto.
The findings of the duly authorized representative shall be referred to the Regional Director for appropriate
action as provided for in Article 128, and shall be furnished the collective bargaining agent, if any.
Based on the visitorial and enforcement power of the Secretary of Labor and Employment in Article 128 (a),
(b), (c) and (d), the Regional Director shall issue compliance orders to give effect to the labor standards
provisions of the Labor Code, other labor legislation and these guidelines.
Section 19. Solidary liability. - The principal shall be deemed as the direct employer of the contractual
employees and therefore, solidarily liable with the contractor or subcontractor for whatever monetary claims
the contractual employees may have against the former in the case of violations as provided for in Sections
5 (Labor-Only contracting), 6 (Prohibitions), 8 (Rights of Contractual Employees) and 16 (Delisting) of these
Rules. In addition, the principal shall also be solidarily liable in case the contract between the principal and
contractor or subcontractor is preterminated for reasons not attributable to the fault of the contractor or
subcontractor.
Section 20. Supersession. - All rules and regulations issued by the Secretary of Labor and Employment
inconsistent with the provisions of this Rule are hereby superseded. Contracting or subcontracting
arrangements in the construction industry, under the licensing coverage of the PCAB and shall not include
shipbuilding and ship repairing works, however, shall continue to be governed by Department Order No. 19,
series of 1993.
Section 21. Effectivity. - This Order shall be effective fifteen (15) days after completion of its publication in
two (2) newspapers of general circulation.
.
Manila, Philippines, 21 February 2002.
a. Requirements for Independent Contractor
San Miguel Corp v. NLRC & Maliksi, GR No. 147566, Dec. 6, 2006
LIIKHA-PMPB v. Burlinggame corp., GR No. 162833, June 15, 2007

b. Desirable Unnecessary
Coca-Cola Bottlers Phil., Inc. v. NLRC, 307 SCRA 131 (1999)
c. Labor Contractor Only; Requisites and Prohibition
Manila Water Co., Inc. v. Pena, 434 SCRA 52 (2004)

d. Effect of Finding
San Miguel Corporation v. Abella, 461 SCRA 392 (2005)
3. Liability of Indirect Employer
Lanzaderas v. Amethyst Security & General Services, Inc., supra

D. Pre-employment, Recruitment and Placement of Workers
Reference: Arts. 12-42; POEA Rules; Book 1, Rules III-VIII, Omnibus Rules; Migrant Workers and Overseas Filipinos Act of 1995
(RA 8042); Anti-Trafficking in Persons Act 2003 (RA 9208) and Rules and Regulations Implementing RA 9208
1. Pre-employment Policy Statement of Objectives, Art. 12 (a) (f);

Const., Art. II, Sec. 9; RA 8042, Sec. 2, 4 & 5.
ART. 12. Statement of objectives. - It is the policy of the State:
a) To promote and maintain a state of full employment through improved manpower training, allocation and
utilization;
f) To strengthen the network of public employment offices and rationalize the participation of the private
sector in the recruitment and placement of workers, locally and overseas, to serve national development
objectives;
1987 Constitution, Art II, Sec. 9
The State shall promote a just and dynamic social order that will ensure the prosperity and independence of
the nation and free the people from poverty through policies that provide adequate social services, promote
full employment, a rising standard of living, and an improved quality of life for all.
REPUBLIC ACT NO. 8042

SEC. 2. DECLARATION OF POLICIES--
(a) In the pursuit of an independent foreign policy and while considering national sovereignty, territorial
integrity, national interest and the right to self-determination paramount in its relations with other states, the
State shall, at all times, uphold the dignity of its citizens whether in country or overseas, in general, and
Filipino migrant workers, in particular.
(b) The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all. Towards this end, the State shall
provide adequate and timely social, economic and legal services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino migrant workers to the national economy through
their foreign exchange remittances, the State does not promote overseas employment as a means to
sustain economic growth and achieve national development. The existence of the overseas employment
program rests solely on the assurance that the dignity and fundamental human rights and freedoms of the
Filipino citizens shall not, at any time, be compromised or violated. The State, therefore, shall continuously
create local employment opportunities and promote the equitable distribution of wealth and the benefits of
development.
(d) The State affirms the fundamental equality before the law of women and men and the significant role of
women in nation-building. Recognizing the contribution of overseas migrant women workers and their
particular vulnerabilities, the State shall apply gender sensitive criteria in the formulation and implementation
of policies and programs affecting migrant workers and the composition of bodies tasked for the welfare of
migrant workers.
(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to
any persons by reason of poverty. In this regard, it is imperative that an effective mechanism be instituted to
ensure that the rights and interest of distressed overseas Filipinos, in general, and Filipino migrant workers,
in particular, documented or undocumented, are adequately protected and safeguarded.
(f) The right of Filipino migrant workers and all overseas Filipinos to participate in the democratic decision-
making processes of the State and to be represented in institutions relevant to overseas employment is
recognized and guaranteed.
(g) The State recognizes that the ultimate protection to all migrant workers is the possession of skills.
Pursuant to this and as soon as practicable, the government shall deploy and/or allow the deployment only
to skilled Filipino workers.
(h) Non-governmental organizations, duly recognized as legitimate, are partners of the State in the
protection of Filipino migrant workers and in the promotion of their welfare, the State shall cooperate with
them in a spirit of trust and mutual respect.
(I) Government fees and other administrative costs of recruitment, introduction, placement and assistance to
migrant workers shall be rendered free without prejudice to the provision of Section 36 hereof.
Nonetheless, the deployment of Filipino overseas workers, whether land-based or sea-based by local
service contractors and manning agencies employing them shall be encouraged. Appropriate incentives may
be extended to them.
I. DEPLOYMENT
SEC. 4. Deployment of Migrant Workers - The State shall deploy overseas Filipino workers only in countries
where the rights of Filipino migrant workers are protected. The government recognizes any of the following
as guarantee on the part of the receiving country for the protection and the rights of overseas Filipino
workers:
(a) It has existing labor and social laws protecting the rights of migrant workers;
(b) It is a signatory to multilateral conventions, declaration or resolutions relating to the protection of migrant
workers;
(c) It has concluded a bilateral agreement or arrangement with the government protecting the rights of
overseas Filipino workers; and
(d) It is taking positive, concrete measures to protect the rights of migrant workers.
SEC. 5. TERMINATION OR BAN ON DEPLOYMENT - Notwithstanding the provisions of Section 4 hereof,
the government, in pursuit of the national interest or when public welfare so requires, may, at any time,
terminate or impose a ban on the deployment of migrant workers.
2. Private Sector Agencies and Entities
a. Parties
1) Worker Art. 13 (a)
ART. 13. Definitions. - (a) "Worker" means any member of the labor force, whether employed or
unemployed.
2) Private Employment Agency Arts. 13 (c) (d), 12 (f), 14 (a)
ART. 13. (c) "Private fee-charging employment agency" means any person or entity engaged in recruitment
and placement of workers for a fee which is charged, directly or indirectly, from the workers or employers or
both.
(d) "License" means a document issued by the Department of Labor authorizing a person or entity to
operate a private employment agency.
objectives;
ART. 14. Employment promotion. - The Secretary of Labor shall have the power and authority:
(a) To organize and establish new employment offices in addition to the existing employment offices under
the Department of Labor as the need arises;
3) Private Recruitment Entity Arts. 13 (e) (f), 12 (f), 14 (a)
ART. 13. (e) "Private recruitment entity" means any person or association engaged in the recruitment and
placement of workers, locally or overseas, without charging, directly or indirectly, any fee from the workers
or employers.
(f) "Authority" means a document issued by the Department of Labor authorizing a person or association to
engage in recruitment and placement activities as a private recruitment entity.
objectives;
b. Recruitment and Placement
1) Local Employment, Art. 13 (b)

(b) "Recruitment and placement" refers to any act of canvassing, enlisting, contracting, transporting, utilizing,
hiring or procuring workers, and includes referrals, contract services, promising or advertising for
employment, locally or abroad, whether for profit or not: Provided, That any person or entity which, in any
manner, offers or promises for a fee, employment to two or more persons shall be deemed engaged in
recruitment and placement.
2) Overseas Employment, Sec. 6, RA 8042
Sec. 6. DEFINITIONS. - For purposes of this Act, illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, procuring workers and includes referring, contact
services, promising or advertising for employment abroad, whether for profit or not, when undertaken by a
non-license or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the Philippines. Provided, that such non-license or non-
holder, who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be
deemed so engaged. It shall likewise include the following acts, whether committed by any persons, whether
a non-licensee, non-holder, licensee or holder of authority.
(a) To charge or accept directly or indirectly any amount greater than the specified in the schedule of
allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay any amount
greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for
the purpose of securing a license or authority under the Labor Code;
(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a worker from oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any persons or entity not to employ any worker who has not applied
for employment through his agency;
(f) To engage in the recruitment of placement of workers in jobs harmful to public health or morality or to
dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by his duly
authorized representative;
(h) To fail to submit reports on the status of employment, placement vacancies, remittances of foreign
exchange earnings, separations from jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the
Department of Labor and Employment from the time of actual signing thereof by the parties up to and
including the period of the expiration of the same without the approval of the Department of Labor and
Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board
of any corporation engaged in travel agency or to be engaged directly on indirectly in the management of a
travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial
considerations other than those authorized under the Labor Code and its implementing rules and
regulations;
(l) Failure to actually deploy without valid reasons as determined by the Department of Labor and
Employment; and
(m) Failure to reimburse expenses incurred by the workers in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take place without
the worker's fault. Illegal recruitment when committed by a syndicate or in large scale shall be considered as
offense involving economic sabotage.
Illegal recruitment is deemed committed by a syndicate carried out by a group of three (3) or more persons
conspiring or confederating with one another. It is deemed committed in large scale if committed against
three (3) or more persons individually or as a group.
The persons criminally liable for the above offenses are the principals, accomplices and accessories. In
case of juridical persons, the officers having control, management or direction of their business shall be
liable.
c. Allowed and Protected Entities
1) Allowed Private Agencies and Entities, Arts. 16, 18, 25, 12 (f)
ART. 16. Private recruitment. - Except as provided in Chapter II of this Title, no person or entity other than
the public employment offices, shall engage in the recruitment and placement of workers.
ART. 18. Ban on direct-hiring. - No employer may hire a Filipino worker for overseas employment except
through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by members of the
diplomatic corps, international organizations and such other employers as may be allowed by the Secretary
of Labor is exempted from this provision.
ART. 25. Private sector participation in the recruitment and placement of workers. - Pursuant to national
development objectives and in order to harness and maximize the use of private sector resources and
initiative in the development and implementation of a comprehensive employment program, the private
employment sector shall participate in the recruitment and placement of workers, locally and overseas,
under such guidelines, rules and regulations as may be issued by the Secretary of Labor.
objectives;
2) Prohibited Business Agencies and Entities, Arts. 16, 18, 25, 26
ART. 16. Private recruitment. - Except as provided in Chapter II of this Title, no person or entity other than the public
employment offices, shall engage in the recruitment and placement of workers.
ART. 18. Ban on direct-hiring. - No employer may hire a Filipino worker for overseas employment except through the
Boards and entities authorized by the Secretary of Labor. Direct-hiring by members of the diplomatic corps,
international organizations and such other employers as may be allowed by the Secretary of Labor is exempted from
this provision.
ART. 25. Private sector participation in the recruitment and placement of workers. - Pursuant to national development
objectives and in order to harness and maximize the use of private sector resources and initiative in the development
and implementation of a comprehensive employment program, the private employment sector shall participate in the
recruitment and placement of workers, locally and overseas, under such guidelines, rules and regulations as may be
issued by the Secretary of Labor.
ART. 26. Travel agencies prohibited to recruit. - Travel agencies and sales agencies of airline companies are
prohibited from engaging in the business of recruitment and placement of workers for overseas employment whether
for profit or not.
d. Government Techniques of Regulation Private Recruitment
1) Licensing, Arts. 27, 28, 29, 30, 31, POEA rules and Regulations, Book II, Sec. 1 and Book II, Rule II
ART. 27. Citizenship requirement. - Only Filipino citizens or corporations, partnerships or entities at least
seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by
Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally or
overseas.
ART. 28. Capitalization. - All applicants for authority to hire or renewal of license to recruit are required to
have such substantial capitalization as determined by the Secretary of Labor.
ART. 29. Non-transferability of license or authority. - No license or authority shall be used directly or
indirectly by any person other than the one in whose favor it was issued or at any place other than that
stated in the license or authority be transferred, conveyed or assigned to any other person or entity. Any
transfer of business address, appointment or designation of any agent or representative including the
establishment of additional offices anywhere shall be subject to the prior approval of the Department of
Labor.
ART. 30. Registration fees. - The Secretary of Labor shall promulgate a schedule of fees for the registration
of all applicants for license or authority.
ART. 31. Bonds. - All applicants for license or authority shall post such cash and surety bonds as
determined by the Secretary of Labor to guarantee compliance with prescribed recruitment procedures,
rules and regulations, and terms and conditions of employment as may be appropriate.
POEA Rules, Book II,

LICENSING AND REGULATION
RULE I
PARTICIPATION OF THE PRIVATE SECTOR IN THE OVERSEAS EMPLOYMENT PROGRAM
Section 1. Qualifications. Only those who possess the following qualifications may be permitted to engage in
the business of recruitment and placement of Filipino workers:
a. Filipino citizens, partnerships or corporations at least seventy five percent (75%) of the authorized capital
stock of which is owned and controlled by Filipino citizens;
b. A minimum capitalization of Two Million Pesos (P2,000,000.00) in case of a single proprietorship or

partnership and a minimum paid-up capital of Two Million Pesos (P2,000,000.00) in case of a corporation;
Provided that those with existing licenses shall, within four years from effectivity hereof, increase their
capitalization or paid up capital, as the case may be, to Two Million Pesos (P2,000,000.00) at the rate of
Two Hundred Fifty Thousand Pesos (P250,000.00) every year.
c. Those not otherwise disqualified by law or other government regulations to engage in the recruitment and
placement of workers for overseas employment.
RULE II
ISSUANCE OF LICENSE
Section 1. Requirements for Issuance of License. - Every applicant for license to operate a private
employment agency or manning agency shall submit a written application together with the following
requirements:
a. A certified copy of the Articles of Incorporation or of Partnership duly registered with the Securities and
Exchange Commission (SEC), in the case of corporation or partnership or Certificate of Registration of firm
or business name with the Bureau of Domestic Trade (BDT) in the case of a single proprietorship;
b. Proof of financial capacity: In the case of a single proprietorship or partnership, verified income tax
returns for the past two (2) years and a bank certificate of a cash deposit of P250,000.00, provided that the
applicant should submit an authority to examine such bank deposit.
In the case of a newly organized corporation, submission of a bank certificate of a cash deposit of at least
P250,000.00 with authority to examine the same. For an existing corporation, submission of a verified
financial statement, corporate tax returns for the past two (2) years and bank certification of a cash deposit
of at least P250,000.00 with the corresponding authority to examine such deposit.
c. Escrow agreement in the amount of P200,000.00 with an accredited reputable banking corporation to
primarily answer for valid and legal claims of recruited workers as a result of recruitment violations or money
claims;
d. Clearance of all members of the Board of Directors, partner, or proprietor of the applicant agency from the
National Bureau of Investigation (NBI) and other government agencies as the need may require, Fiscals
clearance in case of persons with criminal cases; provided that where the member or partner concerned is a
foreigner, clearance from his country of origin shall be acceptable;
e. Proof of marketing capability;
For land-based applicants:
An applicant with an actual principal/foreign employer to be serviced, shall at the time of application submit
the following documents for evaluation:
(1) A duly executed Special Power of Attorney authenticated by the Philippine Embassy/Consulate or Labor
Attache in the place where the principal/employers hold their office; or
(2) A concluded service/recruitment agreement authenticated by the Philippine Embassy/Consulate, or

Labor Attache in the place where the project/job site is located;
(3) An authenticated manpower mobilization request or visa approval of not less than fifty (50) workers for
deployment within a period not exceeding six (6) months from issuance of approved license;
An applicant who, at the time of application is unable to present a foreign principal/employer shall, upon
compliance with all other licensing requirements as herein provided, be issued a provisional license, subject
to submission of a verified undertaking to deploy at least fifty (50) workers, exclusive of direct hired, within a
period not exceeding six (6) months from date of issuance of provisional license. It is understood that failure
to comply with this undertaking shall result in the automatic revocation of the provisional license.
For manning applicants:
(1) A duly executed Special Power of Attorney authenticated by the Philippine Embassy/Consulate or Labor
Attache in place where the vessel owners/operators/manager hold their principal office; or
(2) A duly concluded manning agreement authenticated by the Philippine Embassy, Consulate, or Labor
Attache in the place where the vessel/owners/operators/ manager hold their principal office;
(3) A manpower mobilization request of not less than fifty (50) seafarers for deployment within a period not
exceeding six (6) months from issuance of approved license.
f. A verified undertaking stating that the applicant:
(1) Shall select only medically and technically qualified recruits;
(2) Shall assume full and complete responsibility for all claims and liabilities which may arise in connection
with the use of license;
(3) Shall assume joint and solidary liability with the employer for all claims and liabilities which may arise in
connection with the implementation of the contract, including but not limited to payment of wages, death and
disability compensation and repatriation;
(4) Shall guarantee compliance with the existing labor and social legislations of the Philippines and of the
country of employment of recruited workers; and
(5) Shall assume full and complete responsibility for all acts of its officials, employees and representatives
done in connection with recruitment and placement;
g. List of all officials and personnel involved in the recruitment and placement, together with their
appointment, bio-data and two (2) copies of their passport-size pictures.
h. Copy of contract of lease or proof of building ownership together with office address.
Section 2. Action on the Application. - Within thirty (30) calendar days from receipt of application or
requirements including proof of payment of a non-refundable filing fee of P5,000.00, the Administration shall
evaluate pertinent documents of the applicant, inspect the offices and equipment and recommend to the
Secretary the approval or denial of the application.
Section 3. Issuance of License. - The Administration shall recommend to the Secretary issuance of the
corresponding license upon due evaluation and compliance with licensing requirements and operational
standards.
Section 4. Payment of Fees and Posting of Bonds. - Upon approval of the application, the applicant shall
pay a license fee of P30,000.00. It shall also post a cash bond of P100,000.00 and a surety bond of
P50,000.00 from a bonding company acceptable to the Administration and duly accredited by the Insurance
Commission. The bonds shall answer for all valid and legal claims arising from violations of the conditions
for the grant and use of the license, and/or accreditation and contracts of employment. The bonds shall
likewise guarantee compliance with the provisions of the Code and its implementing rules and regulations
relating to recruitment and placement, the Rules of the Administration and relevant issuances of the
Department and all liabilities which the Administration may impose. The surety bonds shall include the
condition that notice to the principal is notice to the surety and that any judgment against the principal in
connection with matters falling under POEAs jurisdiction shall be binding and conclusive on the surety. The
surety bonds shall be co-terminus with the validity period of the license.
Section 5. Validity of License. - Every license shall be valid for at least two (2) years from the date of
issuance unless sooner cancelled or revoked by the Secretary or suspended by the Administration for
violation of the Code and its rules and relevant decrees, orders and issuances and other rules and
regulations of the Department. Such license shall be valid only at the place/s stated therein and when used
by the licensed person, partnership or corporation.
Section 6. Non-Transferability of License. - No license shall be transferred, conveyed or assigned to any

person, partnership or corporation. It shall not be used directly or indirectly by any person, partnership or
corporation other than the one in whose favor it was issued. Violation shall cause automatic revocation of
license.
In case of death of the sole proprietor, and in order to prevent disruption of operation and so as not to
prejudice the interest of legitimate heirs, the licensed single proprietorship may be allowed to continue only
for the purpose of winding up its business operation.
Section 7. Change of Ownership/Relationship of Single Proprietorship or Partnership. - Transfer or change

of ownership of a single proprietorship licensed to engage in overseas employment shall cause the
automatic revocation of the license. The new owner shall be required to apply for a license in accordance
with these Rules.
A change in the relationship of the partners in a partnership duly licensed to engage in overseas
employment which materially interrupts the course of the business or results in the actual dissolution of the
partnership shall likewise cause the automatic revocation of the license.
Section 8. Upgrading of Single Proprietorship or Partnerships. - License holders which are single
proprietorships or partnerships may, subject to the guidelines of the Administration, convert into corporation
for purposes of upgrading or raising their capabilities to respond adequately to developments/changes in the
international labor market and to enable them to better comply with their responsibilities arising from the
recruitment and deployment of workers overseas.
The approval of merger, consolidation or upgrading shall automatically revoke or cancel the licenses of the
single proprietorships, partnerships or corporations so merged, consolidated or upgraded.
Section 9. Change of Directors of Corporation. - Every change in the composition of the Board of Directors
of a corporation licensed to participate in overseas employment shall be registered with the Administration
within thirty (30) calendar days from the date the change was decided or approved. The corporation shall be
required to submit to the Administration the Minutes of Proceedings duly certified by the SEC, the bio-data
and clearances of the new members of the Board from the government agencies identified in Section 1 (e)
of this Rule.
Section 10. Change of Other Officers and Personnel. - Every change or termination of appointment of
officers, representatives and personnel shall be registered with the Administration within thirty (30) calendar
days from the date of such change.
The Administration reserves the right to deny the appointment of officers and employees who were directly
involved in recruitment irregularities.
Section 11. Appointment of Representatives. - Every appointment of representatives or agents of licensed

agency shall be subject to prior approval or authority of the Administration.
The approval may be issued upon submission of or compliance with the following requirements:
a. Proposed appointment or special power of attorney;
b. Clearances of the proposed representative or agent from NBI;
c. A sworn or verified statement by the designating or appointing person or company assuming full
responsibility for all acts of the agent or representative done in connection with the recruitment and
placement of workers;
Section 12. Publication of Change of Directors/Other Officers and Personnel/ Revocation or Amendment of
Appointment of Representatives. - In addition to the requirement of registration with and submission to the
Administration, every change in the membership of the Board of Directors, resignation/termination of other
officers and personnel, revocation or amendment of appointment of representatives shall be published at
least once in a newspaper of general circulation, in order to bind third parties. Proof of such publication shall
be submitted to the Administration
Section 13. Transfer of Business Address and Studio. - Any transfer of business address shall be effected
only with prior authority or approval of the Administration. The approval shall be issued only upon formal
notice of the intention to transfer with the following attachments:
a. Copy of the companys notice to the BDT or the SEC on the transfer of business address;
b. In the case of a corporation, a Board Resolution duly registered with the SEC authorizing the transfer of
business address;
c. In the case of a single proprietorship, a copy of the BDTs acknowledgment of the notice to transfer; and
d. Copy of the contract of lease or proof of building ownership.
The new office shall be subject to the normal ocular inspection procedures by duly authorized
representatives of the Administration.
A notice to the public of the new address shall be published in a newspaper of general circulation.
Section 14. Establishment of Executive Office. - The establishment of an executive office outside of the
registered address shall be effected only with prior approval or authority of the Administration. The approval
may be issued upon submission of an affidavit of undertaking to the effect that no recruitment activity
whatsoever shall be conducted thereat and that the agency has a valid contract of lease or building
ownership.
Section 15. Establishment of Branch and Extension Offices. - Branch and extension offices may be
established in areas approved by the Secretary, subject to implementing guidelines.
Section 16. Conduct of Recruitment Outside of Registered Office, Branch or Extension Office. - No
licensed agency shall conduct any provincial recruitment, job fairs or recruitment activities of any form
outside of the address stated in the license, acknowledged Branch or Extension Office or without first
securing prior authority from the Administration of the Center.
Section 17. Renewal of License. - An agency shall submit an application for the renewal thereof to the
Administration. Such application shall be supported by the following documents:
a. Proof of foreign exchange earnings issued by the Central Bank;
b. Surety bond duly renewed or revalidated;
c. Escrow agreement in the amount of P200,000.00 with an accredited reputable banking corporation to
primarily answer for valid and legal claims of recruited workers as a result of recruitment violations or money
claims;
d. Replenishment of the cash bond in case such or any part thereof is garnished;
e. Proof of financial capacity such as but not limited to verified financial statements for the past two (2)
years, verified corporate or individual tax returns with confirmation receipts, and compliance with
capitalization requirements and infusion thereof as the case may be, as certified by the Securities and
Exchange Commission;
f. Summary of deployment reports during the validity of the license sought to be renewed;
g. Summary of payroll reports in case of contractors and manning agencies during the validity of the license
sought to be renewed; and
h. Other requirements as may be imposed by the Administration.
Section 18. Non-expiration of License. - Where the license holder has made timely and sufficient
application for renewal, the existing license shall not expire until the application shall have been finally
determined by the Administration.
Section 19. Action on Renewal of License. - Within thirty (30) calendar days from receipt of the application
for renewal the Administration shall undertake evaluation and inspection and thereafter recommend to the
Secretary the grant or denial of the application.
Section 20. Failure to Renew. - Any agency which fails to obtain a renewal of its license within thirty (30)
calendar days from expiration thereof, shall be immediately deemed delisted and disallowed from
conducting recruitment and placement.
Section 21. Denial of Renewal of Licenses. - Licenses of agencies which fail to conclude a recruitment or
manning agreement and/or undertake minimum levels of worker deployment and foreign exchange
generation or those which fail to meet the minimum operational standards and requirements set by the
Administration, shall not be renewed.
Section 22. When to Consider Cash Bond/Deposit in Escrow Garnished. - As soon as an Order of
Garnishment is served upon the Administration/Bank, and the same is correspondingly earmarked, the cash
bond/deposit in escrow of an agency shall no longer be considered sufficient. The Administration shall
forthwith serve upon the agency a notice to replenish.
Section 23. Replenishment of Cash or Surety Bonds/Deposit in Escrow. - Within fifteen (15) calendar days
from date of receipt of notice from the Administration that the bonds/deposit in escrow, or any part thereof
had been garnished, the agency shall replenish the same. Failure to replenish such bonds/deposit in
escrow within the said period shall cause the suspension of the license.
Section 24. Refund of Cash Bond/Release of Deposit in Escrow. - A licensed agency which voluntarily
surrenders its license shall be entitled to the refund of its deposited cash bond and release of the deposit in
escrow, only after posting a surety bond of similar amount valid for four (4) years from expiration of license.
Section 25. Evaluation of Performance of Agencies. - The Administration shall undertake the annual
evaluation and rating of the performance of licensed agencies to determine the merits of their continued
participation in the overseas employment program taking into consideration compliance with laws and
regulations and such other criteria as it may deem proper.
Section 26. Classification and Ranking. - The Administration may undertake the classification and ranking of
agencies. In recognition of exemplary performance, it may undertake schemes for incentives and rewards.
2) Workers Fees, Art. 32
ART. 32. Fees to be paid by workers. - Any person applying with a private fee-charging employment agency
for employment assistance shall not be charged any fee until he has obtained employment through its efforts
or has actually commenced employment. Such fee shall be always covered with the appropriate receipt
clearly showing the amount paid. The Secretary of Labor shall promulgate a schedule of allowable fees.
3) Reports/Employment Information, Arts. 33, 14 (d)
ART. 33. Reports on employment status. - Whenever the public interest requires, the Secretary of Labor
may direct all persons or entities within the coverage of this Title to submit a report on the status of
employment, including job vacancies, details of job requisitions, separation from jobs, wages, other terms
and conditions and other employment data.
(d) To require any person, establishment, organization or institution to submit such employment information
as may be prescribed by the Secretary of Labor.
4) Prohibited Practices, Art. 34
ART. 34. Prohibited practices. - It shall be unlawful for any individual, entity, licensee, or holder of authority:
(a) To charge or accept, directly or indirectly, any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount greater than that
actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for
the purpose of securing a license or authority under this Code.
(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him to
another unless the transfer is designed to liberate the worker from oppressive terms and conditions of
employment;
(e) To influence or to attempt to influence any person or entity not to employ any worker who has not applied
for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the
dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;
(h) To fail to file reports on the status of employment, placement vacancies, remittance of foreign exchange
earnings, separation from jobs, departures and such other matters or information as may be required by the
Secretary of Labor.
(i) To substitute or alter employment contracts approved and verified by the Department of Labor from the
time of actual signing thereof by the parties up to and including the periods of expiration of the same without
the approval of the Secretary of Labor;
(j) To become an officer or member of the Board of any corporation engaged in travel agency or to be
engaged directly or indirectly in the management of a travel agency; and
considerations other than those authorized under this Code and its implementing rules and regulations.
5) Illegal Recruitment, Art. 38; Sec. 6, RA 8042
ART. 38. Illegal recruitment. - (a) Any recruitment activities, including the prohibited practices enumerated
under Article 34 of this Code, to be undertaken by non-licensees or non-holders of authority, shall be
deemed illegal and punishable under Article 39 of this Code. The Department of Labor and Employment or
any law enforcement officer may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense
involving economic sabotage and shall be penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons
conspiring and/or confederating with one another in carrying out any unlawful or illegal transaction,
enterprise or scheme defined under the first paragraph hereof. Illegal recruitment is deemed committed in
large scale if committed against three (3) or more persons individually or as a group.
(c) The Secretary of Labor and Employment or his duly authorized representatives shall have the power to
cause the arrest and detention of such non-licensee or non-holder of authority if after investigation it is
determined that his activities constitute a danger to national security and public order or will lead to further
exploitation of job-seekers. The Secretary shall order the search of the office or premises and seizure of
documents, paraphernalia, properties and other implements used in illegal recruitment activities and the
closure of companies, establishments and entities found to be engaged in the recruitment of workers for
overseas employment, without having been licensed or authorized to do so.
6) Enforcement
a) Regulatory Power, Art. 36

ART. 36. Regulatory power. - The Secretary of Labor shall have the power to restrict and regulate the
recruitment and placement activities of all agencies within the coverage of this Title and is hereby authorized
to issue orders and promulgate rules and regulations to carry out the objectives and implement the
provisions of this Title.
b) Rule-Making Power, Art. 36
c) Visitorial Power, Art. 37
ART. 37. Visitorial Power. - The Secretary of Labor or his duly authorized representatives may, at any time,
inspect the premises, books of accounts and records of any person or entity covered by this Title, require it
to submit reports regularly on prescribed forms, and act on violation of any provisions of this Title.
7) Joint and Several Liability of Agent and Principal, POEA Rules, Book II, Rule II, Sec. 1 (f)
Section 1. Requirements for Issuance of License. - Every applicant for license to operate a private
employment agency or manning agency shall submit a written application together with the following
requirements:
f. A verified undertaking stating that the applicant:
(1) Shall select only medically and technically qualified recruits;
(2) Shall assume full and complete responsibility for all claims and liabilities which may arise in connection with the
use of license;
(3) Shall assume joint and solidary liability with the employer for all claims and liabilities which may arise in
connection with the implementation of the contract, including but not limited to payment of wages, death and
disability compensation and repatriation;
(4) Shall guarantee compliance with the existing labor and social legislations of the Philippines and of the country
of employment of recruited workers; and
(5) Shall assume full and complete responsibility for all acts of its officials, employees and representatives done in
connection with recruitment and placement;
e. Jurisdiction
1) RTC over Criminal Action arising from Illegal Recruitment, RA No. 8042, Sec. 9
SEC. 9. VENUE. - A criminal action arising from illegal recruitment as defined herein shall be filed with the Regional Trial
Court of the province or city where the offense was committed or where the offended party actually resides at the
same time of the commission of the offense: Provided, That the court where the criminal action is first filed shall
acquire jurisdiction to the exclusion of other courts. Provided, however, That the aforestated provisions shall also
apply to those criminal actions that have already been filed in court at the time of the effectivity of this Act.
2) LA over Money Claims, RA 8042, Sec. 10
SEC. 10. MONEY CLAIMS. - Botwithstanding any provision of law to the contrary, the Labor Arbiters of the
National Labor Relations Commission (NLRC) shall have the priginal and exclusive jurisdiction to hear and
decide, within ninety (90) calendar days after filing of the complaint, the claims arising out of an employer-
employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment
including claims for actual, moral, exemplary and other forms of damages.
The liability of the principal/employer and the recruitment/placement agency for any and all claims
under this section shall be joint and several. This provisions shall be incorporated in the contract for
overseas employment and shall be a condition precedent for its approval. The performance bond to be filed
by the recruitment/placement agency, as provided by law, shall be answerable for all money claims or
damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the
corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily
liable with the corporation or partnership for the aforesaid claims and damages.
Such liabilities shall continue during the entire period or duration of the employment contract and
shall not be affected by any substitution, amendment or modification made locally or in a foreign country of
the said contract.
Any compromise/amicable settlement or voluntary agreement on money claims inclusive of
damages under this section shall be paid within four (4) months from the approval of the settlement by the
appropriate authority.
In case of termination of overseas employment without just, valid or authorized cause as defined
by law or contract, the workers shall be entitled to the full reimbursement of his placement fee with interest
of twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or
for three (3) months for every year of the unexpired term, whichever is less.
Non-compliance with the mandatory periods for resolutions of cases provided under this section
shall subject the responsible officials to any or all of the following penalties:
(a) The salary of any such official who fails to render his decision or resolutions within the
prescribed period shall be, or caused to be, withheld until the said official complies therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualifications to hold any appointive public office for five (5)
years.
Provided, however, that the penalties herein provided shall be without prejudice to any liability
which any such official may have incurred under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph.
3) POEA over Administrative Cases
a) Pre-employment Cases, Omnibus rules Impl. RA No. 8042, Sec. 28 (a)
Sec. 28. Jurisdiction of the POEA. - The POEA shall exercise original and exclusive jurisdiction to
hear and decide:
(a) all cases, which are administrative in character, involving or arising out of violations of rules and
regulations relating to licensing and registration of recruitment and employment agencies or entities; and
b) Disciplinary Cases, Sec. 28 (b)

(b) disciplinary action cases and other special cases, which are administrative in character,
involving employers, principals, contracting partners and Filipino migrant workers.
3. Public Sector Agencies Employment Offices, Art. 12 (f); 14 (a); Sec. 3, Reorganizing POEA (EO No. 247); POEA Rules
f) To strengthen the network of public employment offices and rationalize the participation of the private sector in
the recruitment and placement of workers, locally and overseas, to serve national development objectives;
EO No. 247, Sec. 3. Powers and Functions. - In the pursuit of its mandate, the Administration shall have the
following powers and functions:
(a) Regulate private sector participation in the recruitment and overseas placement of workers by setting
up a licensing and registration system;
(b) Formulate and implement, in coordination with appropriate entities concerned, when necessary, a
system for promoting and monitoring the overseas employment of Filipino workers taking into
consideration their welfare and the domestic manpower requirements;
(c) Protect the rights of Filipino workers for overseas employment to fair and equitable recruitment and
employment practices and ensure their welfare;
(d) Exercise original and exclusive jurisdiction to hear and decide all claims arising out of an employer-
employee relationship or by virtue of any law or contract involving Filipino workers for overseas
employment including the disciplinary cases; and all pre-employment cases which are administrative in
character involving or arising out of violation or requirement laws, rules and regulations including
money claims arising therefrom, or violation of the conditions for issuance of license or authority to
recruit workers.
All prohibited recruitment activities and practices which are penal in character as enumerated and
defined under and by virtue of existing laws, shall be prosecuted in the regular courts in close
coordination with the appropriate Departments and agencies concerned;
(e) Maintain a registry of skills for overseas placement;
(f) Recruit and place workers to service the requirements for trained and competent Filipino workers by
foreign governments and their instrumentalities and such other employers as public interest may
require;
(g) Promote the development of skills and careful selection of Filipino workers;
(h) Undertake overseas market development activities for placement of Filipino workers;
(i) Secure the best terms and conditions of employment of Filipino contract workers and ensure
compliance therewith;
(j) Promote and protect the well-being of Filipino workers overseas;
(k) Develop and implement programs for the effective monitoring of returning contract workers,
promoting their re-training and re-employment or their smooth re-integration into the mainstream of
national economy in coordination with other government agencies;
(l) Institute a system for ensuring fair and speedy disposition of cases involving violation or recruitment
rules and regulations as well as violation of terms and conditions of overseas employment;
(m) Establish a system for speedy and efficient enforcement of decisions laid down through the
exercise of its adjudicatory function;
(n) Establish and maintain close relationship and enter into joint projects with the Department of
Foreign Affairs, Philippine Tourism Authority, Manila International Airport Authority, Department of
Justice, Department of Budget and Management and other relevant government entities, in the pursuit
of its objectives. The Administration shall also establish and maintain joint projects with private
organizations, domestic or foreign, in the furtherance of its objectives.
4. Sanctions, Arts. 35, 39 (a) (b) (c) (d) (e); RA 8042, Secs. 6 , 7, 10
ART. 35. Suspension and/or cancellation of license or authority. - The Minister of Labor shall have the power
to suspend or cancel any license or authority to recruit employees for overseas employment for violation of
rules and regulations issued by the Ministry of Labor, the Overseas Employment Development Board, or for
violation of the provisions of this and other applicable laws, General Orders and Letters of Instructions.
ART. 39. Penalties. - (a) The penalty of life imprisonment and a fine of One Hundred Thousand Pesos
(P1000,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as defined herein;
(b) Any licensee or holder of authority found violating or causing another to violate any provision of this Title
or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty of imprisonment of
not less than two years nor more than five years or a fine of not less than P10,000 nor more than P50,000,
or both such imprisonment and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of authority under this Title found violating any
provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty
of imprisonment of not less than four years nor more than eight years or a fine of not less than P20,000 nor
more than P100,000 or both such imprisonment and fine, at the discretion of the court;
(d) If the offender is a corporation, partnership, association or entity, the penalty shall be imposed upon the
officer or officers of the corporation, partnership, association or entity responsible for violation; and if such
officer is an alien, he shall, in addition to the penalties herein prescribed, be deported without further
proceedings;
(e) In every case, conviction shall cause and carry the automatic revocation of the license or authority and
all the permits and privileges granted to such person or entity under this Title, and the forfeiture of the cash
and surety bonds in favor of the Overseas Employment Development Board or the National Seamen Board,
as the case may be, both of which are authorized to use the same exclusively to promote their objectives.
a. Local Employment, Art. 39
(SEE ABOVE)
b. Overseas Employment, Art. 35; RA 8042, Sec. 7
(SEE ABOVE FOR ART. 35)
Sec. 6. DEFINITIONS. - For purposes of this Act, illegal recruitment shall mean any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring, procuring workers and includes referring, contact services, promising or
advertising for employment abroad, whether for profit or not, when undertaken by a non-license or non-holder of
authority contemplated under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the
Labor Code of the Philippines. Provided, that such non-license or non-holder, who, in any manner, offers or promises
for a fee employment abroad to two or more persons shall be deemed so engaged. It shall likewise include the
following acts, whether committed by any persons, whether a non-licensee, non-holder, licensee or holder of
authority.
(a) To charge or accept directly or indirectly any amount greater than the specified in the schedule of allowable fees
prescribed by the Secretary of Labor and Employment, or to make a worker pay any amount greater than that
actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for the
purpose of securing a license or authority under the Labor Code;
(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him another
unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment;
(e) To influence or attempt to influence any persons or entity not to employ any worker who has not applied for
employment through his agency;
(f) To engage in the recruitment of placement of workers in jobs harmful to public health or morality or to dignity of the
Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by his duly authorized
representative;
(h) To fail to submit reports on the status of employment, placement vacancies, remittances of foreign exchange
earnings, separations from jobs, departures and such other matters or information as may be required by the
Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the
Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the
period of the expiration of the same without the approval of the Department of Labor and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any
corporation engaged in travel agency or to be engaged directly on indirectly in the management of a travel agency;
considerations other than those authorized under the Labor Code and its implementing rules and regulations;
(l) Failure to actually deploy without valid reasons as determined by the Department of Labor and Employment; and
(m) Failure to reimburse expenses incurred by the workers in connection with his documentation and processing for
purposes of deployment, in cases where the deployment does not actually take place without the worker's fault.
Illegal recruitment when committed by a syndicate or in large scale shall be considered as offense involving economic
sabotage.
Illegal recruitment is deemed committed by a syndicate carried out by a group of three (3) or more persons conspiring
or confederating with one another. It is deemed committed in large scale if committed against three (3) or more
persons individually or as a group.
The persons criminally liable for the above offenses are the principals, accomplices and accessories. In case of
juridical persons, the officers having control, management or direction of their business shall be liable.
SEC. 7. PENALTIES -
(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than six (6) years
and one (1) day but not more than twelve (12) years and a fine not less than two hundred thousand pesos
(P200,000.00) nor more than five hundred thousand pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of not less than five hundred thousand pesos (P500,000.00) nor more
than one million pesos (P1,000,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as
defined herein.
Provided, however, that the maximum penalty shall be imposed if the person illegally recruited is less than eighteen
(18) years of age or committed by a non-licensee or non-holder of authority.
SEC. 10. MONEY CLAIMS. - Notwithstanding any provision of law to the contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall have the priginal and exclusive jurisdiction to hear and decide, within
ninety (90) calendar days after filing of the complaint, the claims arising out of an employer-employee relationship or
by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual, moral,
exemplary and other forms of damages.
The liability of the principal/employer and the recruitment/placement agency for any and all claims under
this section shall be joint and several. This provisions shall be incorporated in the contract for overseas employment
and shall be a condition precedent for its approval. The performance bond to be filed by the recruitment/placement
agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the
workers. If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners as
the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid
claims and damages.
Such liabilities shall continue during the entire period or duration of the employment contract and shall not
be affected by any substitution, amendment or modification made locally or in a foreign country of the said contract.
Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages under
this section shall be paid within four (4) months from the approval of the settlement by the appropriate authority.
In case of termination of overseas employment without just, valid or authorized cause as defined by law or
contract, the workers shall be entitled to the full reimbursement of his placement fee with interest of twelve percent
(12%) per annum, plus his salaries for the unexpired portion of his employment contract or for three (3) months for
every year of the unexpired term, whichever is less.
Non-compliance with the mandatory periods for resolutions of cases provided under this section shall
subject the responsible officials to any or all of the following penalties:
(a) The salary of any such official who fails to render his decision or resolutions within the prescribed period
shall be, or caused to be, withheld until the said official complies therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualifications to hold any appointive public office for five (5) years.
Provided, however, that the penalties herein provided shall be without prejudice to any liability which any
such official may have incurred under other existing laws or rules and regulations as a consequence of violating the
provisions of this paragraph.
5. Issues and Questions on Overseas Employment
Readings:
Soriano, Ma. Teresa M., Implications of International Migration, A

Focus on the Philippine Experience, PLR, Vol 20. No. 2 (1996)
King, Amelia M., Social and Economic Benefits and Costs, PLR, Vol. 9, No. 1 (1985).
Licuanan, Patricia B. Katas ng Saudi, a closer look. PLR Vol. 9, No. 1 (1985).
6. Trafficking in Persons, RA 9208 and Rules and Regulations Implementing RA 9208
Republic of the Philippines

Congress of the Philippines
Metro Manila
Twelfth Congress
Second Regular Session
Begun held in Metro Manila on Monday, the twenty-second day of July, two thousand two
Republic Act No. 9208 May 26, 2003
AN ACT TO INSTITUTE POLICIES TO ELIMINATE TRAFFICKING IN PERSONS ESPECIALLY

WOMEN AND CHILDREN, ESTABLISHING THE NECESSARY INSTITUTIONAL MECHANISMS FOR
THE PROTECTION AND SUPPORT OF TRAFFICKED PERSONS, PROVIDING PENALTIES FOR ITS
VIOLATIONS, AND FOR OTHER
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Title. This Act shall be known as the "Anti-Trafficking in Persons Act of 2003".
Section 2. Declaration of Policy. It is hereby declared that the State values the dignity of every human
person and guarantees the respect of individual rights. In pursuit of this policy, the State shall give highest
priority to the enactment of measures and development of programs that will promote human dignity,
protect the people from any threat of violence and exploitation, eliminate trafficking in persons, and
mitigate pressures for involuntary migration and servitude of persons, not only to support trafficked
persons but more importantly, to ensure their recovery, rehabilitation and reintegration into the
mainstream of society.
It shall be a State policy to recognize the equal rights and inherent human dignity of women and men as
enshrined in the United Nations Universal Declaration on Human Rights, United Nations Convention on
the Rights of the Child, United Nations Convention on the Protection of Migrant Workers and their
Families. United Nations Convention Against Transnational Organized Crime Including its Protocol to
Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children and all other
relevant and universally accepted human rights instruments and other international conventions to which
the Philippines is a signatory.
Section 3. Definition of Terms. - As used in this Act:
(a) Trafficking in Persons - refers to the recruitment, transportation, transfer or harboring, or

receipt of persons with or without the victim's consent or knowledge, within or across national
borders by means of threat or use of force, or other forms of coercion, abduction, fraud,
deception, abuse of power or of position, taking advantage of the vulnerability of the person, or,
the giving or receiving of payments or benefits to achieve the consent of a person having control
over another person for the purpose of exploitation which includes at a minimum, the exploitation
or the prostitution of others or other forms of sexual exploitation, forced labor or services, slavery,
servitude or the removal or sale of organs.
The recruitment, transportation, transfer, harboring or receipt of a child for the purpose of
exploitation shall also be considered as "trafficking in persons" even if it does not involve any of
the means set forth in the preceding paragraph.
(b) Child - refers to a person below eighteen (18) years of age or one who is over eighteen (18)
but is unable to fully take care of or protect himself/herself from abuse, neglect, cruelty,
exploitation, or discrimination because of a physical or mental disability or condition.
(c) Prostitution - refers to any act, transaction, scheme or design involving the use of a person by
another, for sexual intercourse or lascivious conduct in exchange for money, profit or any other
consideration.
(d) Forced Labor and Slavery - refer 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.
(e) Sex Tourism - refers to a program organized by travel and tourism-related establishments and
individuals which consists of tourism packages or activities, utilizing and offering escort and
sexual services as enticement for tourists. This includes sexual services and practices offered
during rest and recreation periods for members of the military.
(f) Sexual Exploitation - refers to participation by a person in prostitution or the production of
pornographic materials as a result of being subjected to a threat, deception, coercion, abduction,
force, abuse of authority, debt bondage, fraud or through abuse of a victim's vulnerability.
(g) Debt Bondage - refers to the pledging by the debtor of his/her personal services or labor or
those of a person under his/her control as security or payment for a debt, when the length and
nature of services is not clearly defined or when the value of the services as reasonably assessed
is not applied toward the liquidation of the debt.
(h) Pornography - refers to any representation, through publication, exhibition, cinematography,

indecent shows, information technology, or by whatever means, of a person engaged in real or
simulated explicit sexual activities or any representation of the sexual parts of a person for
primarily sexual purposes.
(i) Council - shall mean the Inter-Agency Council Against Trafficking created under Section 20 of
this Act.
Section 4. Acts of Trafficking in Persons. - It shall be unlawful for any person, natural or juridical, to
commit any of the following acts:
(a) To recruit, transport, transfer; harbor, provide, or receive a person by any means, including
those done under the pretext of domestic or overseas employment or training or apprenticeship,
for the purpose of prostitution, pornography, sexual exploitation, forced labor, slavery, involuntary
servitude or debt bondage;
(b) To introduce or match for money, profit, or material, economic or other consideration, any
person or, as provided for under Republic Act No. 6955, any Filipino woman to a foreign national,
for marriage for the purpose of acquiring, buying, offering, selling or trading him/her to engage in
prostitution, pornography, sexual exploitation, forced labor, slavery, involuntary servitude or debt
bondage;
(c) To offer or contract marriage, real or simulated, for the purpose of acquiring, buying, offering,
selling, or trading them to engage in prostitution, pornography, sexual exploitation, forced labor or
slavery, involuntary servitude or debt bondage;
(d) To undertake or organize tours and travel plans consisting of tourism packages or activities for
the purpose of utilizing and offering persons for prostitution, pornography or sexual exploitation;
(e) To maintain or hire a person to engage in prostitution or pornography;
(f) To adopt or facilitate the adoption of persons for the purpose of prostitution, pornography,
sexual exploitation, forced labor, slavery, involuntary servitude or debt bondage;
(g) To recruit, hire, adopt, transport or abduct a person, by means of threat or use of force, fraud,
deceit, violence, coercion, or intimidation for the purpose of removal or sale of organs of said
person; and
(h) To recruit, transport or adopt a child to engage in armed activities in the Philippines or abroad.
Section 5. Acts that Promote Trafficking in Persons. - The following acts which promote or facilitate
trafficking in persons, shall be unlawful:
(a) To knowingly lease or sublease, use or allow to be used any house, building or establishment
for the purpose of promoting trafficking in persons;
(b) To produce, print and issue or distribute unissued, tampered or fake counseling certificates,
registration stickers and certificates of any government agency which issues these certificates
and stickers as proof of compliance with government regulatory and pre-departure requirements
for the purpose of promoting trafficking in persons;
(c) To advertise, publish, print, broadcast or distribute, or cause the advertisement, publication,
printing, broadcasting or distribution by any means, including the use of information technology
and the internet, of any brochure, flyer, or any propaganda material that promotes trafficking in
persons;
(d) To assist in the conduct of misrepresentation or fraud for purposes of facilitating the
acquisition of clearances and necessary exit documents from government agencies that are
mandated to provide pre-departure registration and services for departing persons for the
purpose of promoting trafficking in persons;
(e) To facilitate, assist or help in the exit and entry of persons from/to the country at international
and local airports, territorial boundaries and seaports who are in possession of unissued,
tampered or fraudulent travel documents for the purpose of promoting trafficking in persons;
(f) To confiscate, conceal, or destroy the passport, travel documents, or personal documents or
belongings of trafficked persons in furtherance of trafficking or to prevent them from leaving the
country or seeking redress from the government or appropriate agencies; and
(g) To knowingly benefit from, financial or otherwise, or make use of, the labor or services of a
person held to a condition of involuntary servitude, forced labor, or slavery.
Section 6. Qualified Trafficking in Persons. - The following are considered as qualified trafficking:
(a) When the trafficked person is a child;
(b) When the adoption is effected through Republic Act No. 8043, otherwise known as the "Inter-
Country Adoption Act of 1995" and said adoption is for the purpose of prostitution, pornography,
(c) When the crime is committed by a syndicate, or in large scale. Trafficking is deemed
committed by a syndicate if carried out by a group of three (3) or more persons conspiring or
confederating with one another. It is deemed committed in large scale if committed against three
(3) or more persons, individually or as a group;
(d) When the offender is an ascendant, parent, sibling, guardian or a person who exercises
authority over the trafficked person or when the offense is committed by a public officer or
employee;
(e) When the trafficked person is recruited to engage in prostitution with any member of the
military or law enforcement agencies;
(f) When the offender is a member of the military or law enforcement agencies; and
(g) When by reason or on occasion of the act of trafficking in persons, the offended party dies,
becomes insane, suffers mutilation or is afflicted with Human Immunodeficiency Virus (HIV) or the
Acquired Immune Deficiency Syndrome (AIDS).
Section 6. Confidentiality. - At any stage of the investigation, prosecution and trial of an offense under
this Act, law enforcement officers, prosecutors, judges, court personnel and medical practitioners, as well
as parties to the case, shall recognize the right to privacy of the trafficked person and the accused.
Towards this end, law enforcement officers, prosecutors and judges to whom the complaint has been
referred may, whenever necessary to ensure a fair and impartial proceeding, and after considering all
circumstances for the best interest of the parties, order a closed-door investigation, prosecution or trial.
The name and personal circumstances of the trafficked person or of the accused, or any other information
tending to establish their identities and such circumstances or information shall not be disclosed to the
public.
In cases when prosecution or trial is conducted behind closed-doors, 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, producer and director of a film in case of the movie industry, or any person utilizing
tri-media facilities or information technology to cause publicity of any case of trafficking in persons.
Section 8. Prosecution of Cases. - Any person who has personal knowledge of the commission of any
offense under this Act, the trafficked person, the parents, spouse, siblings, children or legal guardian may
file a complaint for trafficking.
Section 9. Venue. - A criminal action arising from violation of this Act shall be filed where the offense was
committed, or where any of its elements occurred, or where the trafficked person actually resides at the
time of the commission of the offense: Provided, That the court where the criminal action is first filed shall
acquire jurisdiction to the exclusion of other courts.
Section 10. Penalties and Sanctions. - The following penalties and sanctions are hereby established for
the offenses enumerated in this Act:
(a) Any person found guilty of committing any of the acts enumerated in Section 4 shall suffer the
penalty of imprisonment of twenty (20) years and a fine of not less than One million pesos
(P1,000,000.00) but not more than Two million pesos (P2,000,000.00);
(b) Any person found guilty of committing any of the acts enumerated in Section 5 shall suffer the
penalty of imprisonment of fifteen (15) years and a fine of not less than Five hundred thousand
pesos (P500,000.00) but not more than One million pesos (P1,000,000.00);
(c) Any person found guilty of qualified trafficking under Section 6 shall suffer the penalty of life
imprisonment and a fine of not less than Two million pesos (P2,000,000.00) but not more than
Five million pesos (P5,000,000.00);
(d) Any person who violates Section 7 hereof shall suffer the penalty of imprisonment of six (6)
years and a fine of not less than Five hundred thousand pesos (P500,000.00) but not more than
One million pesos (P1,000,000.00);
(e) If the offender is a corporation, partnership, association, club, establishment or any juridical
person, the penalty shall be imposed upon the owner, president, partner, manager, and/or any
responsible officer who participated in the commission of the crime or who shall have knowingly
permitted or failed to prevent its commission;
(f) The registration with the Securities and Exchange Commission (SEC) and license to operate
of the erring agency, corporation, association, religious group, tour or travel agent, club or
establishment, or any place of entertainment shall be cancelled and revoked permanently. The
owner, president, partner or manager thereof shall not be allowed to operate similar
establishments in a different name;
(g) If the offender is a foreigner, he shall be immediately deported after serving his sentence and
be barred permanently from entering the country;
(h) Any employee or official of government agencies who shall issue or approve the issuance of
travel exit clearances, passports, registration certificates, counseling certificates, marriage
license, and other similar documents to persons, whether juridical or natural, recruitment
agencies, establishments or other individuals or groups, who fail to observe the prescribed
procedures and the requirement as provided for by laws, rules and regulations, shall be held
administratively liable, without prejudice to criminal liability under this Act. The concerned
government official or employee shall, upon conviction, be dismissed from the service and be
barred permanently to hold public office. His/her retirement and other benefits shall likewise be
forfeited; and
(i) Conviction by final judgment of the adopter for any offense under this Act shall result in the
immediate rescission of the decree of adoption.
Section 11. Use of Trafficked Persons. - Any person who buys or engages the services of trafficked
persons for prostitution shall be penalized as follows:
(a) First offense - six (6) months of community service as may be determined by the court and a
fine of Fifty thousand pesos (P50,000.00); and
(b) Second and subsequent offenses - imprisonment of one (1) year and a fine of One hundred
thousand pesos (P100,000.00).
Section 12. Prescriptive Period. - Trafficking cases under this Act shall prescribe in ten (10) years:
Provided, however, That trafficking cases committed by a syndicate or in a large scale as defined under
Section 6 shall prescribe in twenty (20) years.
The prescriptive period shall commence to run from the day on which the trafficked person is delivered or
released from the conditions of bondage and shall be interrupted by the filing of the complaint or
information and shall commence to run again when such proceedings terminate without the accused
being convicted or acquitted or are unjustifiably stopped for any reason not imputable to the accused.
Section 13. Exemption from Filing Fees. - When the trafficked person institutes a separate civil action for
the recovery of civil damages, he/she shall be exempt from the payment of filing fees.
Section 14. Confiscation and Forfeiture of the Proceeds and Instruments Derived from Trafficking in
Persons. - In addition to the penalty imposed for the violation of this Act, the court shall order the
confiscation and forfeiture, in favor of the government, of all the proceeds and properties derived from the
commission of the crime, unless they are the property of a third person not liable for the unlawful act;
Provided, however, That all awards for damages shall be taken from the personal and separate
properties of the offender; Provided, further, That if such properties are insufficient, the balance shall be
taken from the confiscated and forfeited properties.
When the proceeds, properties and instruments of the offense have been destroyed, diminished in value
or otherwise rendered worthless by any act or omission, directly or indirectly, of the offender, or it has
been concealed, removed, converted or transferred to prevent the same from being found or to avoid
forfeiture or confiscation, the offender shall be ordered to pay the amount equal to the value of the
proceeds, property or instruments of the offense.
Section 15. Trust Fund. - All fines imposed under this Act and the proceeds and properties forfeited and
confiscated pursuant to Section 14 hereof shall accrue to a Trust Fund to be administered and managed
by the Council to be used exclusively for programs that will prevent acts of trafficking and protect,
rehabilitate, reintegrate trafficked persons into the mainstream of society. Such programs shall include,
but not limited to, the following:
(a) Provision for mandatory services set forth in Section 23 of this Act;
(b) Sponsorship of a national research program on trafficking and establishment of a data

collection system for monitoring and evaluation purposes;
(c) Provision of necessary technical and material support services to appropriate government
agencies and non-government organizations (NGOs);
(d) Sponsorship of conferences and seminars to provide venue for consensus building amongst
the public, the academe, government, NGOs and international organizations; and
(e) Promotion of information and education campaign on trafficking.
Section 16. Programs that Address Trafficking in Persons. - The government shall establish and
implement preventive, protective and rehabilitative programs for trafficked persons. For this purpose, the
following agencies are hereby mandated to implement the following programs;
(a) Department of Foreign Affairs (DFA) - shall make available its resources and facilities
overseas for trafficked persons regardless of their manner of entry to the receiving country, and
explore means to further enhance its assistance in eliminating trafficking activities through closer
networking with government agencies in the country and overseas, particularly in the formulation
of policies and implementation of relevant programs.
The DFA shall take necessary measures for the efficient implementation of the Machine
Readable Passports to protect the integrity of Philippine passports, visas and other travel
documents to reduce the incidence of trafficking through the use of fraudulent identification
documents.
It shall establish and implement a pre-marriage, on-site and pre-departure counseling program on
intermarriages.
(b) Department of Social Welfare and Development (DSWD) - shall implement rehabilitative and
protective programs for trafficked persons. It shall provide counseling and temporary shelter to
trafficked persons and develop a system for accreditation among NGOs for purposes of
establishing centers and programs for intervention in various levels of the community.
(c) Department of Labor and Employment (DOLE) - shall ensure the strict implementation and
compliance with the rules and guidelines relative to the employment of persons locally and
overseas. It shall likewise monitor, document and report cases of trafficking in persons involving
employers and labor recruiters.
(d) Department of Justice (DOJ) - shall ensure the prosecution of persons accused of trafficking
and designate and train special prosecutors who shall handle and prosecute cases of trafficking.
It shall also establish a mechanism for free legal assistance for trafficked persons, in coordination
with the DSWD, Integrated Bar of the Philippines (IBP) and other NGOs and volunteer groups.
(e) National Commission on the Role of Filipino Women (NCRFW) - shall actively participate and
coordinate in the formulation and monitoring of policies addressing the issue of trafficking in
persons in coordination with relevant government agencies. It shall likewise advocate for the
inclusion of the issue of trafficking in persons in both its local and international advocacy for
women's issues.
(f) Bureau of Immigration (BI) - shall strictly administer and enforce immigration and alien
administration laws. It shall adopt measures for the apprehension of suspected traffickers both at
the place of arrival and departure and shall ensure compliance by the Filipino fiancs/fiances
and spouses of foreign nationals with the guidance and counseling requirement as provided for in
this Act.
(g) Philippine National Police (PNP) - shall be the primary law enforcement agency to undertake
surveillance, investigation and arrest of individuals or persons suspected to be engaged in
trafficking. It shall closely coordinate with various law enforcement agencies to secure concerted
efforts for effective investigation and apprehension of suspected traffickers. It shall also establish
a system to receive complaints and calls to assist trafficked persons and conduct rescue
operations.
(h) Philippine Overseas Employment Administration (POEA) - shall implement an effective pre-
employment orientation seminars and pre-departure counseling programs to applicants for
overseas employment. It shall likewise formulate a system of providing free legal assistance to
trafficked persons.
(i) Department of the Interior and Local Government (DILG) - shall institute a systematic
information and prevention campaign and likewise maintain a databank for the effective
monitoring, documentation and prosecution of cases on trafficking in persons.
(j) Local government units (LGUs) - shall monitor and document cases of trafficking in persons in
their areas of jurisdiction, effect the cancellation of licenses of establishments which violate the
provisions of this Act and ensure effective prosecution of such cases. They shall also undertake
an information campaign against trafficking in persons through the establishment of the Migrants
Advisory and Information Network (MAIN) desks in municipalities or provinces in coordination
with DILG, Philippine Information Agency (PIA), Commission on Filipinos Overseas (CFO), NGOs
and other concerned agencies. They shall encourage and support community based initiatives
which address the trafficking in persons.
In implementing this Act, the agencies concerned may seek and enlist the assistance of NGOs,
people's organizations (Pos), civic organizations and other volunteer groups.
Section 17. Legal Protection to Trafficked Persons. - Trafficked persons shall be recognized as victims of
the act or acts of trafficking and as such shall not be penalized for crimes directly related to the acts of
trafficking enumerated in this Act or in obedience to the order made by the trafficker in relation thereto. In
this regard, the consent of a trafficked person to the intended exploitation set forth in this Act shall be
irrelevant.
Section 18. Preferential Entitlement Under the Witness Protection Program. - Any provision of Republic
Act No. 6981 to the contrary notwithstanding, any trafficked person shall be entitled to the witness
protection program provided therein.
Section 19. Trafficked Persons Who are Foreign Nationals. - Subject to the guidelines issued by the
Council, trafficked persons in the Philippines who are nationals of a foreign country shall also be entitled
to appropriate protection, assistance and services available to trafficked persons under this Act: Provided,
That they shall be permitted continued presence in the Philippines for a length of time prescribed by the
Council as necessary to effect the prosecution of offenders.
Section 20. Inter-Agency Council Against Trafficking. - There is hereby established an Inter-Agency
Council Against Trafficking, to be composed of the Secretary of the Department of Justice as Chairperson
and the Secretary of the Department of Social Welfare and Development as Co-Chairperson and shall
have the following as members:
(a) Secretary, Department of Foreign Affairs;
(b) Secretary, Department of Labor and Employment;
(c) Administrator, Philippine Overseas Employment Administration;
(d) Commissioner, Bureau of Immigration;
(e) Director-General, Philippine National Police;
(f) Chairperson, National Commission on the Role of Filipino Women; and
(g) Three (3) representatives from NGOs, who shall be composed of one (1) representative each
from among the sectors representing women, overseas Filipino workers (OFWs) and children,
with a proven record of involvement in the prevention and suppression of trafficking in persons.
These representatives shall be nominated by the government agency representatives of the
Council, for appointment by the President for a term of three (3) years.
The members of the Council may designate their permanent representatives who shall have a
rank not lower than an assistant secretary or its equivalent to meetings, and shall receive
emoluments as may be determined by the Council in accordance with existing budget and
accounting, rules and regulations.
Section 21. Functions of the Council. - The Council shall have the following powers and functions:
(a) Formulate a comprehensive and integrated program to prevent and suppress the trafficking in
persons;
(b) Promulgate rules and regulations as may be necessary for the effective implementation of this
Act;
(c) Monitor and oversee the strict implementation of this Act;
(d) Coordinate the programs and projects of the various member agencies to effectively address
the issues and problems attendant to trafficking in persons;
(e) Coordinate the conduct of massive information dissemination and campaign on the existence
of the law and the various issues and problems attendant to trafficking through the LGUs,
concerned agencies, and NGOs;
(f) Direct other agencies to immediately respond to the problems brought to their attention and
report to the Council on action taken;
(g) Assist in filing of cases against individuals, agencies, institutions or establishments that violate
the provisions of this Act;
(h) Formulate a program for the reintegration of trafficked persons in cooperation with DOLE,
DSWD, Technical Education and Skills Development Authority (TESDA), Commission on Higher
Education (CHED), LGUs and NGOs;
(i) Secure from any department, bureau, office, agency, or instrumentality of the government or
from NGOs and other civic organizations such assistance as may be needed to effectively
implement this Act;
(j) Complement the shared government information system for migration established under
Republic Act No. 8042, otherwise known as the "Migrant Workers and Overseas Filipinos Act of
1995" with data on cases of trafficking in persons, and ensure that the proper agencies conduct a
continuing research and study on the patterns and scheme of trafficking in persons which shall
form the basis for policy formulation and program direction;
(k) Develop the mechanism to ensure the timely, coordinated, and effective response to cases of
trafficking in persons;
(l) Recommend measures to enhance cooperative efforts and mutual assistance among foreign
countries through bilateral and/or multilateral arrangements to prevent and suppress international
(m) Coordinate with the Department of Transportation and Communications (DOTC), Department
of Trade and Industry (DTI), and other NGOs in monitoring the promotion of advertisement of
trafficking in the internet;
(n) Adopt measures and policies to protect the rights and needs of trafficked persons who are
foreign nationals in the Philippines;
(o) Initiate training programs in identifying and providing the necessary intervention or assistance
to trafficked persons; and
(p) Exercise all the powers and perform such other functions necessary to attain the purposes
and objectives of this Act.
Section 22. Secretariat to the Council. - The Department of Justice shall establish the necessary
Secretariat for the Council.
Section 23. Mandatory Services to Trafficked Persons. - To ensure recovery, rehabilitation and
reintegration into the mainstream of society, concerned government agencies shall make available the
following services to trafficked persons:
(a) Emergency shelter or appropriate housing;
(b) Counseling;
(c) Free legal services which shall include information about the victims' rights and the procedure
for filing complaints, claiming compensation and such other legal remedies available to them, in a
language understood by the trafficked person;
(d) Medical or psychological services;
(e) Livelihood and skills training; and
(f) Educational assistance to a trafficked child.
Sustained supervision and follow through mechanism that will track the progress of recovery,
rehabilitation and reintegration of the trafficked persons shall be adopted and carried out.
Section 24. Other Services for Trafficked Persons. -
(a) Legal Assistance. - Trafficked persons shall be considered under the category "Overseas
Filipino in Distress" and may avail of the legal assistance created by Republic Act No. 8042,
subject to the guidelines as provided by law.
(b) Overseas Filipino Resource Centers. - The services available to overseas Filipinos as
provided for by Republic Act No. 8042 shall also be extended to trafficked persons regardless of
their immigration status in the host country.
(c) The Country Team Approach. - The country team approach under Executive Order No. 74 of
1993, shall be the operational scheme under which Philippine embassies abroad shall provide
protection to trafficked persons insofar as the promotion of their welfare, dignity and fundamental
rights are concerned.
Section 25. Repatriation of Trafficked Persons. - The DFA, in coordination with DOLE and other
appropriate agencies, shall have the primary responsibility for the repatriation of trafficked persons,
regardless of whether they are documented or undocumented.
If, however, the repatriation of the trafficked persons shall expose the victims to greater risks, the DFA
shall make representation with the host government for the extension of appropriate residency permits
and protection, as may be legally permissible in the host country.
Section 26. Extradition. - The DOJ, in consultation with DFA, shall endeavor to include offenses of
trafficking in persons among extraditable offenses.
Section 27. Reporting Requirements. - The Council shall submit to the President of the Philippines and to
Congress an annual report of the policies, programs and activities relative to the implementation of this
Act.
Section 28. Funding. - The heads of the departments and agencies concerned shall immediately include
in their programs and issue such rules and regulations to implement the provisions of this Act, the funding
of which shall be included in the annual General Appropriations Act.
Section 29. Implementing Rules and Regulations. - The Council shall promulgate the necessary
implementing rules and regulations within sixty (60) days from the effectivity of this Act.
Section 30. Non-restriction of Freedom of Speech and of Association, Religion and the Right to Travel. -
Nothing in this Act shall be interpreted as a restriction of the freedom of speech and of association,
religion and the right to travel for purposes not contrary to law as guaranteed by the Constitution.
Section 31. Separability Clause. - If, for any reason, any section or provision of this Act is held
unconstitutional or invalid, the other sections or provisions hereof shall not be affected thereby.
Section 32. Repealing clause. - All laws, presidential decrees, executive orders and rules and
regulations, or parts thereof, inconsistent with the provisions of this Act are hereby repealed or modified
accordingly: Provided, That this Act shall not in any way amend or repeal the provision of Republic Act
No. 7610, otherwise known as the "Special Protection of Children Against Child Abuse, Exploitation and
Discrimination Act".
Section 33. Effectivity. - This Act shall take effect fifteen (15) days from the date of its complete
publication in at least two (2) newspapers of general circulation.
RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9208, OTHERWISE

KNOWN AS THE ANTI-TRAFFICKING IN PERSONS ACT OF 2003
Pursuant to the authority of the Inter-Agency Council Against Trafficking (IACAT) under Section 29 of
Republic Act No. 9208 otherwise known as the Anti-Trafficking in Persons Act of 2003, the following
rules and regulations are hereby promulgated to implement the provisions of said Act:
Article I
GENERAL PROVISIONS
Sec. 1. Title. These rules and regulations shall be known and cited as The Rules and Regulations
Implementing the Anti-Trafficking in Persons Act of 2003.
Sec. 2. Purpose. These rules and regulations are hereby promulgated to institute policies, establish the
institutional mechanism for the support and protection of trafficked persons and prescribe the procedures
and guidelines for the implementation of Republic Act No. 9208 in order to facilitate compliance therewith
and achieve the objectives thereof.
Sec. 3. Declaration of State Policy. The State values the dignity of every human person and guarantees
the respect for individual rights. Towards this end, the State shall give the highest priority to the
enactment of measures and development of programs that will promote human dignity, protect the people
from any threat of violence and exploitation, eliminate trafficking in persons, and mitigate pressures for
involuntary migration and servitude of persons, not only to support trafficked persons but more
importantly, to ensure
their recovery, rehabilitation and reintegration into the mainstream of society.
The State also recognizes the equal rights and inherent human dignity of women and men, as well as the
rights of children, as enshrined and guaranteed in the following international instruments:
(i) Universal Declaration on Human Rights;
(ii) Convention for the Suppression of the Traffic in Persons and Exploitation of the Prostitution
of Others;
(iii) Convention on the Elimination of All Forms of Discrimination Against Women;
(iv) Convention on the Rights of the Child and itsOptional Protocols;
(v) Convention on the Protection of Migrant Workers and Members of their Families;
(vi) Convention Against Transnational OrganizedCrimes including its Protocol to
Prevent,Suppress and Punish Trafficking in Persons, Especially Women and Children;
(vii) ILO Convention No. 182 (Convention Concerning the Prohibition and Immediate Action for
the Elimination of the Worst Forms of Child Labor); and
(viii) All other relevant and universally accepted human rights instruments and other international
conventions to which the Philippines is a State Party. In all actions concerning children, their
best interests shall be the paramount consideration.
Sec. 4. Construction. These rules and regulations shall be liberally construed in favor of the trafficked
persons to promote their human dignity; ensure their recovery, rehabilitation and reintegration into the
mainstream of society; eliminate trafficking in persons; and achieve the objectives of the Act.
Article II
DEFINITION OF TERMS
Sec. 5. Definition of Terms. As used in these rules and regulations, unless the context otherwise
requires, the following terms shall be understood to mean:
(a) Act refers to Republic Act No. 9208, otherwise

known as the Anti-Trafficking in Persons Act of 2003;
(b) Council refers to the Inter-Agency Council Against Trafficking (IACAT) created under Section 20 of
the Act;
(c) Trafficking in Persons refers to the recruitment, transportation, transfer or harboring, or receipt of
persons, with or without the victims consent or knowledge, within or across national borders by means of
threat or use of force, or other forms of coercion, abduction, fraud, deception, abuse of power or of
position, taking advantage of the vulnerability of the person, or, the giving or receiving of payments or
benefits to
achieve the consent of a person having control over another person for the purpose of exploitation which
includes at a minimum, the exploitation or the prostitution of others or other forms of sexual exploitation,
forced labor or services, slavery, servitude or the removal or sale of organs.
The recruitment, transportation, transfer, harboring or receipt of a child for the purpose of exploitation
shall also be considered as trafficking in persons even if it does not involve any of the means set forth in
the preceding paragraph.
(d) Child refers to a person below eighteen (18) years of age or one who is over eighteen (18) but is
unable to fully take care of or protect himself/herself from abuse, neglect, cruelty, exploitation, or
discrimination because of a physical or mental disability or condition;
(e) Prostitution refers to any act, transaction, scheme or design involving the use of a person by
another, for sexual intercourse or lascivious conduct in exchange for money, profit or any other
consideration;
(f) Forced Labor and Slavery refer 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;
(g) Sex Tourism refers to a program organized by travel and tourism-related establishments and
individuals which consists of tourism packages or activities, utilizing and offering escort and sexual
services as enticement for tourists. This includes sexual services and practices offered during rest and
recreation periods for members of the military;
(h) Sexual Exploitation refers to participation by a person in prostitution or the production of

pornographic
materials as a result of being subjected to a threat, deception, coercion, abduction, force, abuse of
authority, debt bondage, fraud or through abuse of a victims vulnerability;
(i) Debt Bondage refers to the pledging by the debtor of his/her personal services or labor or those of a
person under his/her control as security or payment for a debt, when the length and nature of services is
not clearly defined or when the value of the services as reasonably assessed is not applied toward the
liquidation of the debt;
(j) Pornography refers to any representation, through publication, exhibition, cinematography, indecent
shows, information technology, or by whatever means, of a person engaged in real or simulated explicit
sexual activities or any representation of the sexual parts of a person primarily for sexual purposes; and
(k) Involuntary Servitude refers to a condition of enforced, compulsory service induced by means of
any scheme, plan or pattern, intended to cause a person to believe that, if the person did not enter into or
continue in such condition, that person or another person would suffer serious harm or other forms of
abuse or physical restraint, or the abuse or threatened abuse of the legal process.
Article III
THE INTER-AGENCY COUNCIL
AGAINST TRAFFICKING (IACAT)
Sec. 6. Creation. The Inter-Agency Council Against Trafficking (IACAT) shall be established which shall
be primarily tasked to coordinate, monitor and oversee the implementation of the Act.
Sec. 7. Composition. The Council shall be composed of the following:
(a) Secretary, Department of Justice (DOJ) as Chairperson;

(b) Secretary, Department of Social Welfare and Development (DSWD) as Co-Chairperson;
(c) Secretary, Department of Foreign Affairs (DFA) as Member;
(d) Secretary, Department of Labor and Employment
(DOLE) as Member;
(e) Administrator, Philippine Overseas Employment
Administration (POEA) as Member;
(f) Commissioner, Bureau of Immigration (BI) as Member;
(g) Director-General, Philippine National Police (PNP) as Member;
(h) Chairperson, National Commission on the Role of Filipino Women (NCRFW) as Member;
(i) One (1) representative from an NGO representingthe women sector as Member;
(j) One (1) representative from an NGO representing he Overseas Filipino Workers (OFWs) sector as
Member; and
(k) One (1) representative from an NGO representing he children sector as Member.
The members of the Council may designate their permanent representatives who shall have a rank not
lower than an Assistant Secretary or its equivalent to attend the meetings of the Council.
Sec. 8. Qualifications, Selection and Appointment of NGO and its Representatives. The NGOs, with
national and international networks, and its representatives to the Council must have a proven track
record of involvement in the prevention and suppression of trafficking in persons. They shall be
nominated by any
of the government agency representatives of the Council and shall be selected by majority vote thereof
and endorsed to the President. They shall be appointed by the President for a term of three (3) years.
Sec. 9. Functions of the Council. The Council shall have the following powers and functions:
(a) Formulate a comprehensive and integrated program to prevent and suppress the trafficking in
persons;
(b) Promulgate rules and regulations as may be necessary for the effective implementation of the Act;
(c) Monitor and oversee the strict implementation of the Act;
(d) Coordinate the programs and projects of the various member agencies to effectively address the
issues and problems attendant to trafficking in persons;
(e) Coordinate the conduct of massive information dissemination and campaign on the existence of the
law and the various issues and problems attendant to trafficking through the local government units
(LGUs), concerned agencies, and NGOs;
(f) Direct other agencies to immediately respond to the problems brought to their attention and report to
the Council on action taken;
(g) Assist in filing of cases against individuals, agencies, institutions or establishments that violate the
provisions of the Act;
(h) Formulate a program for the reintegration of trafficked persons in cooperation with DOLE, DSWD,
Technical Education and Skills Development Authority (TESDA), Commission on Higher Education
(CHED), LGUs and NGOs;
(i) Secure from any department, bureau, office, agency, or instrumentality of the government or from
NGOs
and other civic organizations such assistance as may be needed to effectively implement the Act;
(j) Complement the shared government information system for migration established under Republic Act
No. 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995 with data on
cases of trafficking in persons, and ensure that the proper agencies conduct a continuing research and
study on the patterns and scheme of trafficking in persons which shall form the basis for policy
formulation and program direction;
(k) Develop the mechanism to ensure the timely coordinated and effective response to cases of trafficking
in
persons;
(l) Recommend measures to enhance cooperative efforts and mutual assistance among foreign countries
through bilateral and/or multilateral arrangements to prevent and suppress international trafficking in
persons;
(m) Coordinate with the Department of Transportation and Communications (DOTC), Department of
Trade and Industry (DTI), and other NGOs in monitoring the promotion of advertisement of trafficking in
the Internet;
(n) Adopt measures and policies to protect the rights and needs of trafficked persons who are foreign
nationals in the Philippines;
(o) Initiate training programs in identifying and roviding the necessary intervention or assistance to
trafficked
persons; and
(p) Exercise all the powers and perform such other functions necessary to attain the purposes and
objectives of the Act.
Sec. 10. Reportorial Function. Within sixty (60) days after the closing of each calendar year, the Council
shall submit to the Office of the President a comprehensive report on the actions and programs
taken by the Council relative to and concerning the implementation of the Act.
Sec. 11. Meetings of the Council. The Council shall meet regularly at least once a month. Special
meetings may be called by the Chair as the need arises. Majority of the members of the Council
shall constitute a quorum to transact business.
Sec. 12. Honoraria or Emoluments. The Members of the Council or their designated permanent
representatives shall receive honoraria or emoluments as may be determined by the Council in
accordance with existing budget and accounting rules and regulations.
Sec. 13. Implementation of the Law at Sub-National and Local Levels. The Council shall, as far as
practicable, develop mechanisms to ensure the implementation of the law and these rules and
regulations at the sub-national and local levels
Article IV
SECRETARIAT
SEC. 14. Organization. The Department of Justice shall establish a Secretariat to assist the Council in
the performance of its functions. The Secretary of Justice shall determine the organizational structure and
staffing pattern of the Secretariat.
Sec. 15. Functions. The Secretariat shall have the following functions:
(a) Coordinate and monitor, under the direction of the Council, the implementation of the policies and
guidelines promulgated by the Council;
(b) Establish, maintain and manage a central database on trafficking in persons;
(c) Provide secretariat, records keeping and other services to the Council; and
(d) Perform such other functions as may be directed by the Council.
Article V
ROLES AND RESPONSIBILITIES
Sec. 16. Common Roles and Responsibilities of Council Member Agencies. All member government
agencies of the Council shall have the following common roles and responsibilities:
(a) Develop policies and programs supportive of and consistent with the objectives of the Act;
(b) Enhance the capability of its officers and personnel involved in trafficking issues and concerns through
appropriate training and staff support programs;
(c) Undertake information, education and advocacy campaigns against trafficking in persons;
(d) Maintain a databank on trafficking in persons to be shared among relevant agencies and complement
the central databank to be established by the Council; and
(e) Document good practices as bases for policy formulation and program development.
Sec. 17. Specific Roles and Responsibilities of National Government Agencies which are Members
of the Council. The following national government agencies, which are member agencies of the Council,
shall have, but not limited to, the following roles and responsibilities in the prevention and suppression of
trafficking in persons:
(a) Department of Justice (DOJ)
(i) Ensure the prosecution of persons for violations of the Act;

(ii) Designate and train special prosecutors who
shall investigate and prosecute cases of trafficking;
(iii) Establish a mechanism for free legal assistance for trafficked persons, in coordination with the DSWD,
Commission on Human Rights (CHR), Integrated Bar of the Philippines (IBP) and other NGOs and
volunteer groups;
(iv) Provide, witness protection to trafficked victims and their witnesses;
(v) Conduct training and continuing education program on investigation and prosecution for trafficking in
persons and other related offenses for prosecutors and law enforcement officers;
(vi) Receive, evaluate, process and investigate claims for compensation by trafficked victims, when
applicable, pursuant to Republic Act No. 7309 (Victims Compensation
Act);
(vii) Review and recommend policies and measures to enhance protection against trafficking in persons;
(viii) Recommend the negotiation of mutual legal assistance and extradition treaties with other countries
in
coordination with the DFA; and
(ix) Coordinate with and/or provide assistance to the Anti-Money Laundering Council (AMLC) on cases of
trafficking in persons with possible money laundering underpinnings.
(b) Department of Social Welfare and Development (DSWD)
(i) Provide psycho-social counseling, temporary shelter and other support services to victims/survivors of
trafficking and their families;
(ii) Make available skills training and livelihood services to victims/survivors of trafficking;
(iii) Develop program and other support interventions to facilitate the recovery and reintegration of
trafficked victims into their families and communities;
(iv) Provide social welfare services to Filipino victims of trafficking in other countries through the DSWD
Social Welfare Attach and social workers posted in foreign countries, which may include but not limited
to stress management, repatriation and other appropriate psychosocial interventions for their protection
and welfare;
(v) Conduct technical assistance and capability building activities for social welfare officers/social workers
of LGUs and NGOs;
(vi) Accredit NGOs that provide programs and services to ensure that they meet the standards set by the
Department; and
(vii) Provide temporary shelter and psycho-social services to foreign nationals who are victims of
trafficking
in persons as confirmed by the Bureau of Immigration.
(c) Department of Foreign Affairs (DFA)
(i) Make available its resources and facilities overseas and to provide services for trafficked persons
regardless of the manner of their entry to the receiving country;
(ii) Explore means to further enhance its assistance in eliminating trafficking activities through closer
networking with government agencies in the country and overseas, particularly in the formulation of
policies and implementation of relevant programs;
(iii) Actively participate in bilateral, regional and international initiatives and cooperative arrangements
aimed at suppressing trafficking in persons and protecting and assisting victims of trafficking to include
monitoring of inter-country adoption cases.
(iv) Take necessary measures for the efficient implementation of the Machine Readable Passports and
Visas to protect the integrity of Philippine passports, visas, and other travel documents to reduce the
incidence of trafficking in persons through the use of fraudulent identification documents;
(v) Establish and implement pre-marriage, on-site and pre-departure counseling program on inter-
marriages.
For this purpose, the DFA shall promulgate the necessary guidelines to implement the said program; and
(vi) Integrate into the pre-departure orientation seminars for foreign service personnel a training module
on
trafficking in persons.
(d) Department of Labor and Employment (DOLE)
(i) Ensure the strict implementation of and compliance with rules and guidelines relative to the
employment of persons locally and overseas; and
(ii) Monitor, document and report cases of trafficking in persons involving employers and labor
recruiters;
(iii) Make available existing resources such as employment and livelihood programs as part of the
governments measure to suppress trafficking in persons; and
(iv) Conduct public awareness programs and activities to prevent victimization.
(e) Philippine Overseas Employment Administration (POEA)
(i) Implement an effective pre-employment orientation seminar and pre-departure counseling program
to applicants for overseas employment;
(ii) Formulate a system providing free legal assistance to trafficked persons which shall include the
following:
(a) Provision of legal assistance to victims of trafficking in persons by means of, or in the guise of,
recruitment for overseas employment, as defined in Section 6 of R.A. No. 8042, such as free legal advice,
assistance in the preparation and filing of administrative and criminal actions for trafficking as defined in
the Act, without prejudice to the filing of administrative and/or criminal actions for illegal recruitment, as
defined in R.A.No. 8042, when proper;
(b) Assistance in the prosecution of persons who engage in, promote and facilitate trafficking in persons
by means of, or in the guise of, recruitment for overseas employment, as defined in Section 6 of R.A.
8042;
In this connection, the POEA shall likewise adopt a policy of confidentiality in all cases referred to it
involving
possible violations of the Act.
(iii) Adopt policies and procedures, prepare and implement programs geared towards the eradication of
trafficking in persons as well as acts that promote trafficking in persons such as, but not limited to, the
following:
(a) Comprehensive and Integrated Education Program on overseas employment which shall be
undertaken in partnership with other relevant organizations and government entities. Such education
program shall cover all stages of recruitment and employment and shall provide information useful for
overseas workers including a module on anti-trafficking program and measures;
(b) Nationwide multi-media and sustainable grassroots information campaign to create publicawareness
on the realities of overseas employment and dangers of becoming victims of illegal trafficking activities;
(c) Conduct special operations, complementary to the power of the PNP, on persons and entities
engaged
in recruitment for overseas employment reported to be violating the provisions of the Act for the purpose
of
effecting closure of said establishments pursuant to the provisions of R.A. No. 8042; and
(d) Database of cases involving, and personalities involved in, trafficking persons separate and distinct
from its illegal Recruitment cases for monitoring purposes;
(iv) In cases of repatriation involving workers recruited and deployed by licensed agencies, the POEA
shall
notify the agency concerned to provide a plane ticket or Prepaid Travel Advice (PTA) and shall impose
sanctions on said agencies for failure to cooperate in providing welfare assistance to OFWs they have
deployed; and
(v) Continue to regulate private sector participation in the recruitment and overseas placement of
workers through its licensing and registration system pursuant to its rules and regulation on overseas
employment. It shall formulate and implement, in coordination with appropriate entities concerned, when
necessary, a system of promoting and monitoring the overseas employment of Filipino workers, taking
into
consideration their welfare and protection from the dangers and risks inherent in overseas employment,
including illegal trafficking.
(f) Bureau of Immigration (BI)
(i) Strictly administer and enforce immigration and alien registration laws;
(ii) Adopt measures for the apprehension of suspected traffickers both at the place of arrival and
departure;
(iii) Ensure compliance by the Filipino fiancs/ fiances and spouses of foreign nationals with the
predeparture and counseling program requirement of the Act;
(iv) Strictly implement the requirement for a parental travel authority duly processed by the DSWD for
minors traveling abroad unaccompanied by one parent, and the travel clearance for minors traveling
abroad
unaccompanied by both parents;
(v) Ensure compliance by Overseas Filipino Workers of the departure requirements of the POEA;
(vi) Conduct periodic training and seminar on fraudulent document detection and passenger assessment
to enhance the level of skill and competence of all its immigration officers and agents in document fraud
detection;
(vii) Conduct periodic study of the trends, routes and modus operandi employed by the traffickers
including
its recruitment base, transit countries and country of destination;
(viii) Establish a network with other law enforcement agencies and immigration counterparts of
source, transit and destination countries to facilitate exchange and sharing of information on the activities
of
trafficking syndicates;
(ix) Establish network with LGUs for the effective apprehension of suspected traffickers and their cohorts;
(x) Develop a program for the procurement and installation of International Civil Aviation Organization
(ICAO) compliant machine readers and fraud detection equipment at all international airports and
seaports in the country to deter trafficking in persons; and
(xi) Develop and distribute materials containing advisory and other pertinent information to enhance
awareness against trafficking in persons.
(g) Philippine National Police (PNP)
(i) Undertake surveillance, investigation and arrest of individuals or persons suspected to be engaged in
trafficking;
(ii) Coordinate closely with various law enforcement agencies to secure concerted efforts for effective
investigation and apprehension of suspected traffickers. For this purpose, it shall also:
(a) Pursue the detection and investigation of suspected or alleged trafficking activities at airports
through its Aviation Security Group, at seaports and/or harbors through its Maritime Group, and at land
transportation terminals through its police station and when proper, file the appropriate charges against
traffickers in the proper court;
(b) Coordinate with the Philippine Ports Authority (PPA) which may have initially processed complaints at
their Balay Silungan sa Daungan; and
(c) Coordinate with local and barangay officials with respect to the apprehension and/or arrest of
traffickers.
(iii) Establish a system to receive complaints and calls to assist trafficked persons, and the conduct of
rescue operations;
(iv) Direct and supervise the enforcement of its andate under the Act and its rules and regulations;
(v) Supervise the conduct of investigations relating to apprehension occurring at land transportation
terminals, domestic seaports and airports and monitor the filing of appropriate cases against traffickers;
(vi) Formulate plans and programs for the prevention and/or reduction of trafficking in persons;
(vii) Integrate in the program of instruction comprehensive, gender sensitive and child-friendly
investigation and handling of cases of trafficking in persons in the Philippine National Police Academy
(PNPA), Philippine Public Safety College (PPSC) and other training schools operated and managed by
the PNP; and
(viii) Establish anti-trafficking section under the Women and Children Complaint Desk (WCCD) in all city
and municipal police stations.
(h) National Commission on the Role of Filipino Women (NCRFW)
(i) Actively advocate and participate in international and regional discussion and initiatives in
trafficking in women and include the same in all of its international commitments and policy
pronouncements. Where possible and appropriate, work with the Department of Foreign Affairs in forging
bilateral and multilateral collaborative projects on trafficking;
(ii) Assist the Council in the formulation and monitoring of policies addressing the issue of trafficking in
persons in coordination with relevant government agencies;
(iii) Assist the Council in the conduct of information dissemination and training to frontline government
agencies, NGOs and the general public;
(iv) Assist in the development of gender responsive documentation system in coordination with other
agencies and the National Statistical Coordination Board (NSCB) through its monitoring of the situation of
women particularly on violence against women;
(v) Assist the Council in the formulation of prevention and reintegration programs for victims of
trafficking including the demand side; and (vi) Conduct studies on the root causes, magnitude
and forms of trafficking in women and document best practices in prevention programs.
Sec. 18. Roles and Responsibilities of Other Relevant National Government Agencies.
Consistent with their mandates under existing laws, the following agencies shall integrate human
trafficking issues in their strategy and program formulation and implement programs and services for the
prevention and suppression of trafficking and for the protection of trafficked victims.
They shall likewise have the following roles and responsibilities:
(a) Department of the Interior and Local Government (DILG)
(i) Conduct a systematic information dissemination/advocacy and prevention campaign against trafficking
in persons;
(ii) Maintain a databank for the effective monitoring, documentation and prosecution of cases on
(iii) Issue directives to the LGUs and barangays to institutionalize recruiter-monitoring mechanisms and
increase public awareness regarding trafficking in persons;
(iv) Promote family and community empowerment to prevent trafficking in persons; and
(v) Strengthen, activate and mobilize existing committees, councils, similar organizations and special
bodies at the local level to prevent and suppress trafficking in persons.
(b) Department of Tourism (DOT)
(i) Formulate and implement preventive measures to stop sex tourism packages and other activities of
tourism establishments which might contribute to the trafficking in persons in coordination with local
governmentunits; and
(ii) Provide training to tourist security officers on surveillance, investigation and rescue operation
strategies.
(c) Department of Education (DepEd)
(i) Integrate in the appropriate subject areas core messages on migration and trafficking in the elementary
and secondary levels by providing lesson with emphasis on their implications and social costs to persons
and country;
(ii) Provide opportunities for trafficked persons in the educational mainstream through the basic education
and non-formal education curricula; and
(iii) Provide education and raise consciousness of boys/men in schools and communities in order to
discourage the demand side or the use/buying of trafficked women
and children.
(d) Department of Health (DOH)
(i) Make available its resources and facilities in providing health care to victims of trafficking which shall,
at all times, be held confidential.
(e) Department of Transportation and Communication (DOTC)
(i) Provide guidelines for the land, sea and air transport providers to train their personnel in trafficking
in persons;
(ii) Standardize guidelines for monitoring trafficking in persons in every port; and
(iii) Monitor the promotion of advertisement of trafficking in the Internet.
(f) Commission on Human Rights (CHR)
(i) Conduct advocacy and training programs relating to anti-trafficking;

(ii) Investigate and recommend for prosecution violations of the Act;
(iii) Provide legal and financial assistance to victims of trafficking; and
(iv) Integrate anti-trafficking efforts in the Barangay Human Rights Action Center (BHRAC); and
(v) Monitor government compliance to international human rights treaty obligations related to the
suppression/elimination of trafficking, particularly the Convention for the Suppression of Traffic in Persons
and Exploitation of the Prostitution of Others, the Convention on the Elimination of All Forms of
Discrimination Against Women, the Convention on the Rights of the Child, the Convention on the
Protection of Migrant Workers and Members of Their Families, and the UN Convention Against
Transnational Organized Crimes including its Protocol to Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children.
(g) National Bureau of Investigation (NBI)
(i) Conduct surveillance, monitor and investigate recruiters, travel agencies, hotels and other
establishments
suspected to be engaged in trafficking in persons;
(ii) Coordinate closely with all the Council member agencies for effective detection and investigation of
suspected traffickers;
(iii) Formulate plans and programs for the detection and prevention of trafficking, and the arrest and
prosecution of suspected traffickers;
(iv) Share intelligence information on suspected traffickers to all Council member agencies when
necessary;
and
(v) Foster cooperation and coordination with the law enforcement agencies of other countries and the
INTERPOL in the investigation and apprehension of suspected traffickers.
(h) Philippine Center on Transnational Crime (PCTC)
(i) Continue to function in accordance with its mandate pursuant to Executive Order No. 62, s. 1999, on
matters concerning trafficking in persons with transnational dimension;
(ii) Undertake strategic researches on the structure and dynamics of trafficking in persons with
transnational crime dimension, predict trends and analyze given factors for the formulation of individual
and collective
strategies for the prevention and detection of trafficking in persons and the apprehension of criminal
elements involved;
(iii) Conduct case operations in coordination with other law enforcement agencies; and
(iv) Serve as the focal point in international law enforcement coordination on trafficking in persons
particularly with the INTERPOL.
(i) Overseas Workers Welfare Administration (OWWA)
(i) Assist in the information and advocacy campaign among OFWs to prevent trafficking in persons;
(ii) Assist in the documentation of cases of trafficking and ensure the provision of its programs and
services to OFWs and their families; and (iii) Include a module on anti-trafficking to its predeparture
seminar.
(j) Council for the Welfare of Children (CWC)
(i) Integrate in its development and strategic frameworks issues and concerns affecting trafficking in
children and ensure the adoption of such frameworks by the LGUs and other stakeholders;
(ii) Vigorously advocate against trafficking of children;
(iii) Improve data on trafficking in children through integration of critical and relevant indicators into the
monitoring system for children;
(iv) Adopt policies and measures that will protect and promote the rights and welfare of children victims of
trafficking and coordinate and monitor their implementation; and
(v) Address issues on trafficking of children through policy and program interventions.
(k) Philippine Information Agency (PIA)
(i) Enhance public awareness on trafficking in persons, pertinent laws and possible actions to prevent
victimization and re-victimization by developing public advocacy program as well as printing and
distributing
appropriate information materials.
(l) Technical Education and Skills Development Authority (TESDA)
(i) Provide skills and entrepreneurial training to trafficked victims; and

(ii) Formulate a special program to ensure the provision of appropriate skills training for trafficked victims.
Sec. 19. Roles and Responsibilities of Local Government Units (LGUs). The LGUs shall have the
following roles and responsibilities:
(a) Monitor and document cases of trafficked persons in their areas of jurisdiction;
(b) Effect the cancellation of licenses of establishments which violate the provisions of the Act and
ensure its effective prosecution;
(c) Undertake an information campaign against trafficking in persons through the establishment of the
Migrants Advisory and Information Network (MAIN) desks in municipalities and provinces in coordination
with the DILG, PIA, Commission on Filipino Overseas (CFO), NGOs and other concerned agencies;
(d) Encourage and support community based initiatives which address trafficking in persons;
(e) Provide basic social services for the prevention, rescue, recovery, rehabilitation and reintegration/after
care support services to victims of trafficking in persons and their
families;
(f) Enact ordinances or issuances aimed at providing protection and support to trafficked persons and
adopt measures to prevent and suppress trafficking in persons; and
(g) Strengthen, activate and mobilize existing committees, councils, similar organizations and special
bodies
at the provincial, city, municipal and barangay levels to prevent and suppress trafficking in persons.
Sec. 20. Roles and Responsibilities of Non-Government Organizations which are Members of the
Council. The NGO members of the Council shall have the following roles and responsibilities:
(a) Assist government agencies in formulating and implementing policies, programs and IEC campaign
against trafficking;
(b) Assist in capability-building activities of government personnel and share their experiences and
expertise in handling trafficking cases;
(c) Coordinate with concerned government agencies, LGUs and other NGOs in reporting alleged
perpetrators, rescuing victims of trafficking, and conducting investigation/ surveillance, if indicated;
(d) Undertake programs and activities for the prevention, rescue, recovery and reintegration of the victims
of
trafficking and other support services for their families;
(e) Document and/or assist in the documentation of cases of trafficking;
(f) Disseminate guidelines to all its network members, local and international, on policies and programs
addressing issues on trafficking in persons;
(g) Formulate educational module to address thedemand side of trafficking; and
(h) Perform such other tasks as may be agreed upon by the Council.
Sec. 21. Assistance of Other Agencies and Institutions. In implementing the Act and these rules and
regulations, the agencies concerned may seek and enlist the assistance of NGOs, peoples
organizations (POs), civic organizations and other volunteer groups, which will all likewise be encouraged
to assume the same roles and responsibilities enumerated in the preceding Section.
Article VI
REPORTING OF SUSPECTED/ ALLEGED TRAFFICKING INCIDENT
Sec. 22. Who May and To Whom to Report. Any person who has any knowledge or learns of facts or
circumstances that give rise to a reasonable belief that a person will be, or may be, or has been trafficked
shall immediately report the same, either orally, in writing or through other means, to any member of the
Council, the barangay authorities, the nearest police or other law enforcement agency, the
local social welfare and development office or the local Council for the Protection of Children.
In the case of trafficking cases abroad, the report shall be made to the Philippine Embassy/Consulate
which has jurisdiction over the place where the trafficking occurred or where the trafficked person is
found.
Sec. 23. Action on the Report. The agency, entity or person

to whom the report is made shall immediately act as soon as the report is received in coordination with
other relevant government agency for appropriate intervention. For this purpose, the Council shall
develop a mechanism to ensure the timely, coordinated and effective response to cases of trafficking in
persons.
Article VII
INTERCEPTION, ARREST AND
INVESTIGATION OF TRAFFICKERS
Sec. 24. Procedure in the Interception, Arrest and Investigation of Traffickers in Persons at
International Airport or Seaport. When an offense punishable under the Act or any other
offense in relation thereto or in furtherance thereof has been committed, or is actually being committed in
the presence of an immigration officer assigned at the international airport or seaport,
he/she shall immediately cause the interception and/or arrest of the persons involved for investigation.
The DOJ Task Force Against Trafficking shall cause the filing of appropriate case in court when
evidence warrants. If the person arrested is a foreigner, the concerned B.I.
investigating unit shall take full custody over the arrested person, conduct the investigation proper motu
proprio and endorse the complaint and supporting documents to the prosecutor for inquest or MTC Judge
for appropriate proceedings.
Sec. 25. Procedure in the Interception, Arrest and Investigation of Traffickers in Persons at Local
Airport, Seaport and Land Transportation Terminals. In cases where the violation is committed at
local seaport, airport or in land transportation terminals, the members of the law enforcement agency
shall
immediately cause the interception and/or arrest of the suspected traffickers. Thereafter, the investigation
shall be conducted by the law enforcement agency on the person/s intercepted/arrested, and
referred to the Prosecutors Office of the place where the offense was committed or to the DOJ Task
Force Against Trafficking in Persons or Task Force on Passport Irregularities or Municipal Trial Court of
the place where the crime was committed in case of municipalities and non-chartered cities for purposes
of inquest or preliminary investigation as the case may be.
Sec. 26. Creation of a Joint Task Force Against Trafficking in Persons. For the purpose of the above
provisions, there shall be created a Joint Task Force Against Trafficking in Persons to be assigned at
airports composed of Prosecution, BI, PNP, and NBI personnel and another Task Force at land
transportation terminals and local seaports and airports to be composed of Prosecution, PNP, BI, PPA,
and PCG personnel. The DOJ National Task Force Against Trafficking in Persons shall issue the
necessary
operational guidelines for the effective coordination, apprehension, investigation and prosecution of
violations of the Act. The DOJ Task Force assigned at local seaports, airports and land transportation
terminals shall cooperate or coordinate with the local authorities, local social welfare and development
officers or active NGOs concerned with trafficking in persons in the locality.
Sec. 27. Rights of the Person Arrested, Investigated or Detained. In all cases, the rights of the person
arrested, investigated or detained as provided by the Philippine Constitution and under Republic Act No.
7438 (An Act Defining Certain Rights of Persons Arrested, Detained or Under Custodial Investigation As
Well As The Duties of the Arresting, Detaining and Investigating Officers, and Providing Penalties For
Violations Thereof) shall, at all times, be respected.
Article VIII
RESCUE/RECOVERY AND REPATRIATION OF VICTIMS
Sec. 28. The Country Team Approach. The country team approach under Executive Order No. 74,
series of 1993 and further enunciated in Republic Act No. 8042 shall be the operational scheme under
which Philippine embassies abroad shall provide protection to trafficked persons regardless of their
immigration status. Under the Country Team Approach, all officers, representatives and personnel of the
Philippine government posted abroad regardless of their mother agencies shall, on a per country basis,
act as one-country team with mission under the leadership of the Ambassador or the head of mission.
Sec. 29. Rescue at the Country of Destination.
(a) Procedure. When the victim is a Filipino national and at the time of rescue is residing abroad, the
embassy or consulate which has jurisdiction over the place where the victim is residing shall verify the
veracity of the report of incidence of trafficking and inquire about the condition of the victim.
Consistent with the country team approach, the Post concerned shall send a team composed of a
consular officer and personnel from the Philippine Overseas Labor Office (POLO) or the Filipino Workers
Resource Center (FWRC), the Office of the Social Welfare Attach as the case may be, to conduct a visit
to the jail, establishment, work site or residence of the victim. In the case of Posts without attached
services, the team
will be composed of a consular officer and personnel from the Assistance-to-Nationals section.
The Post shall make representations with the police authorities or other relevant law enforcement
agencies with respect to the conduct of rescue operations.
Rescue operation shall also be made in cooperation and close coordination with some NGOs, local
contacts or private individuals when necessary.
In countries and areas where the services of the FWRC is not accessible, a mobile type of services shall
be extended by the country team members to trafficked persons regardless of their status in the host
country.
Thereafter, the victim will be encouraged to execute a sworn statement, recounting among others, the
people/establishment involved in the recruitment/transfer and deployment, the modus operandi employed
to recruit, transport and deploy the victim, and other pertinent information which could provide a lead in
the investigation and eventual prosecution of the perpetrators.
(b) Assistance to Trafficked Persons. The trafficked person shall be provided with temporary shelter and
other forms of assistance.
In countries where there is an Filipino Workers Resource Center, the services available to overseas
Filipinos as provided for in Republic Act No. 8042 shall also be extended to trafficked persons regardless
of their status in the host country.
(c) Legal Assistance Fund. Trafficked persons shall be considered under the category Overseas Filipinos
in
Distress and may avail of the Legal Assistance Fund created by Republic Act No. 8042, subject to the
guidelines as provided by law, including rules and regulations issued by the DFA as
to its utilization and disbursement.
Sec. 30. Repatriation of Trafficked Persons. The DFA, in coordination with DOLE and other appropriate
agencies, shall have the primary responsibility for the repatriation of trafficked persons, regardless of
whether they are documented or undocumented.
If, however, the repatriation of trafficked persons shall expose the victims to greater risks, the DFA shall
make representation with the host government for the extension of appropriate residency permits
and protection, as may be legally permissible in the host country.
Sec. 31. Procedure for Repatriation. In accordance with existing rules and regulations on the use and
disbursement of Assistance-to-Nationals Fund of the DFA for the repatriation of distressed OFWs, the
Post shall immediately request the DFA, through the Office of the Undersecretary for Migrant Workers
Affairs
(OUMWA), allocation of funds for the repatriation of the victim. In appropriate cases and to avoid re-
victimization, the Post may withdraw the passport of the victim and forward it to the DFA and in
its place issue a Travel Document (FA Form 79(B)) valid for direct travel to the Philippines.
The Post concerned shall report to the DFA, through the OUMWA, copy furnished the Office of Consular
Affairs, the actual date of repatriation and other pertinent information and submit a copy of the sworn
statement and other relevant documents.
In appropriate cases, especially when the victim is suffering from mental illness, has suffered physical or
sexual abuse or has received serious threats to his or her life and safety, the victim will be
met upon arrival in the Philippines by DSWD personnel, in coordination with the Joint Task Force Against
Trafficking in Persons and other government agencies such as OWWA, BI and DOH. In the case of
mentally ill patients, minors, and other persons requiring special care, the Post shall designate a duly
authorized individual to escort said victims to the Philippines.
The victim will be encouraged, if he or she has not done so before, to execute a sworn statement with the
view of filing the appropriate charges against the suspected trafficker in the Philippines. Should the victim
request the assistance of DFA, OUMWA shall interview the victim and make recommendations for
investigation with law enforcement agencies such as the PNP and the NBI. In cases where recruitment
agencies are involved, the case shall also be referred to the POEA for appropriate action. The report shall
also be forwarded to the BI for case build up. The victim may be referred to the DSWD/Local Social
Welfare
And Development Office or to the NBI One-Stop Shop for psychosocial interventions, psychological and
medical examination and follow-through therapy sessions. Protective custody and emergency shelter
shall also be provided to the victim, in appropriate cases.
Sec. 32. Rescue Within the Country. Rescue operations within the country shall be primarily undertaken
by the law enforcement agencies in coordination with LGUs, DOLE, DSWD and DOH. Upon receipt of a
report of a suspected or alleged trafficking ncident or activity, the law enforcement agency to which the
report is made shall conduct rescue operations of trafficked persons. At the minimum, rescue operations
shall be guided by the following:
(a) Conduct of rescue operation of trafficked persons shall be properly coordinated with the concerned
agencies particularly DSWD/local social welfare and development officer;
(b) The rescue team shall ensure full protection of the rights of the trafficked person as well as the
traffickers while under its custody and control;
(c) After the rescue operation, the investigation of the case shall be referred to the Women and Children
Complaint Desk (WCCD) desk of PNP, the Violence Against Women and Children Division (VAWCD) of
the NBI or other similar units or desks;
(d) After the completion of the necessary documents for the filing of cases, the rescue team shall effect
the appropriate and immediate turn-over of the trafficked person to DSWD/local social welfare and
development officer; and
(e) In the course of investigation of the trafficked person, the investigator handling the case shall ensure
that
the victim shall be accorded with proper treatment and investigated in a child-friendly and gender-
sensitive
environment. In the conduct of investigative interviews on children, the law enforcers shall likewise be
guided by the Rule on the Examination of a Child Witness promulgated by Supreme Court, as may be
applicable. For this purpose, the investigators shall be properly trained in the handling of cases of
trafficked
persons.
Article IX
REHABILITATION AND
REINTEGRATION OF VICTIMS
Sec. 33. Comprehensive Program. The DSWD, LGUs and other concerned agencies shall provide a
comprehensive, gendersensitive and child friendly program for the recovery, rehabilitation
and reintegration of victims/survivors of trafficking, such as but not limited to the following:
(a) Implementation of residential care, child placement, educational assistance, livelihood and skills
training
and other community-based services must be responsive to the specific needs and problems of the
victims/survivors and their families;
(b) Active involvement and participation of the victims/survivors in the rehabilitation and reintegration
process shall be encouraged. In order to empower them and to prevent their re-victimization, capability
building programs must be provided; and Law, Rules and Local Instruments 5 3
(c) Active cooperation and coordination with NGOs and other members of the civil society including the
business community, tourism-related industries as well as the media in the rehabilitation and reintegration
of victims/survivors shall be undertaken.
Sec. 34 Procedure. The following procedure shall be undertaken in implementing a comprehensive

program for the recovery, rehabilitation and reintegration of victims/survivors of trafficking:
(a) The victim/survivor of trafficking may go to the nearest DSWD/LGU Social Welfare and Development
Office for assistance;
(b) Upon referral/interview the DSWD/Local Government Social Worker shall conduct an intake
assessment
to determine appropriate intervention with the victim/survivor;
(c) The social worker shall prepare a social case study report/case summary for the victim/survivors
admission to a residential facility for temporary shelter or community-based services;
(d) Provide services/interventions based on the rehabilitation plan in coordination with appropriate
agencies,
e.g. counseling, legal, medical and educational assistance; livelihood and/or skills training; as well as
appropriate services to the family of the trafficked victim/survivor; and
(e) Monitor implementation and periodically evaluate/update the rehabilitation plan until the victim/
survivor has been reintegrated with his/her family and community.
Sec. 35. Capability Building of Service Providers. The frontline agencies and the service providers
must undergo training and other capability building activities to enhance their knowledge and skills in
handling cases of trafficking to prevent exacerbation of traumatic stress and facilitate more effective crisis
interventions, healing and reintegration services.
Sec. 36. Documentation. Data banking, research and documentation of best practices in rehabilitation
and reintegration programs shall be conducted to identify efficient and effective measures and services
for the victims of trafficking and their families.
Article X
PROSECUTION, CIVIL FORFEITURE AND RECOVERY OF CIVIL DAMAGES
Sec. 37. Who May File a Complaint. Complaints for violations of the Act may be filed by the following:
(a) Any person who has personal knowledge of the commission of the offense;
(b) The trafficked person or the offended party;
(c) Parents or legal guardians;
(d) Spouse;
(e) Siblings; or
(f) Children.
The foregoing persons may also seek the assistance of the Council in the filing of complaint.
Sec. 38. Institution of Criminal Action; Effect. The institution of the criminal action before the Office of
the Prosecutor or the court, as the case may be, for purposes of preliminary investigation shall interrupt
the running of the period for prescription of the offense charged. The prescriptive period shall commence
to run again when such proceedings terminate without the accused being convicted or acquitted or are
unjustifiably stopped for any reason not imputable to the accused.
Sec. 39. Institution of Criminal and Civil Actions. Pursuant to the Revised Rules on Criminal
Procedure, when a criminal action is instituted, the civil action arising from the offense charged shall be
deemed instituted with the criminal action unless the offended party waives the civil action, reserves the
right to institute it separately or institutes the civil action prior to the criminal action.
Sec. 40. Exemption from Filing Fees. When the trafficked person institutes a separate civil action for the
recovery of civil damages, he/she shall be exempt from the payment of filing fees.
Sec. 41. Venue. The offenses punishable under the Act shall be considered as a continuing offense and
may be filed in the place where the offense was committed or where any of its elements occurred or
where the trafficked person actually resides at the time of the commission of the offense. Provided, that
the court where the criminal action is first filed shall acquire jurisdiction to the exclusion of other courts.
Sec. 42. Forfeiture of the Proceeds and Instruments Derived from Trafficking in Persons.
(a) After conviction, all proceeds and instruments, including any real or personal property used in the
commission of the offense, shall be ordered confiscated and forfeited in favor of the State unless the
owner thereof can prove the lack of knowledge of the use of such property in the said illegal activity. Any
award for damages arising from the commission of the offense may be satisfied and charged against the
personal and
separate properties of the offender and if the same is insufficient to satisfy the claim, the balance shall be
taken from the forfeited properties as may be ordered by the court.
(b) During the pendency of the criminal action, no property or income used or derived therefrom which are
subject to confiscation and forfeiture, shall be disposed, alienated or transferred and the same shall be in
custodia legis and no bond shall be admitted for the release of the same.
(c) The trial prosecutor shall avail of the provisional remedies in criminal cases to ensure the confiscation,
preservation and forfeiture of the said properties.
(d) If the offender is a public officer or employee, the forfeiture of his/her property found to be unlawfully
acquired shall be governed by Republic Act No. 1379 otherwise known as An Act Declaring Forfeiture in
Favor of the State Any Property Found to Have Been Unlawfully Acquired by Any Public Officer or
Employee and Providing for the Proceedings Therefore.
Article XI
LEGAL PROTECTION AND OTHER SERVICES
Sec. 43. Legal Protection. Trafficked persons shall be recognized as victims of the act or acts of
trafficking. As such, they shall not be penalized for crimes directly related to the acts of trafficking
enumerated under the Act or in obedience to the order made by the trafficker in relation thereto. In this
regard, the consent of the trafficked person to the intended exploitation set forth in the Act shall be
irrelevant.
Sec. 44. Preferential Entitlement under the Witness Protection Program. Any provision of Republic
Act No. 6981 to the contrary notwithstanding, any trafficked person shall be entitled to the witness
protection program provided therein.
Sec. 45. Immunity from Criminal Prosecution. Any person who has personal knowledge in the
commission of any of the offenses penalized under the Act and who voluntarily gives material information
relative thereto and willingly testifies against the offender shall be exempt from prosecution for the offense
with reference to which his information and testimony were given, subject to the following conditions:
(a) The information and testimony are necessary for the conviction of the accused; and
(b) Such information and testimony are not yet in the possession of the state.
Sec. 46. Mandatory Services. To ensure recovery, rehabilitation and reintegration into the mainstream of
society, concerned government agencies shall make available the following services to trafficked
persons:
(a) Emergency shelter or appropriate housing;

(b) Counseling;
(c) Free legal services which shall include information about the victims rights and the procedure for filing
complaints, claiming compensation and such other legal remedies available to them, in a language
understood by the trafficked person;
(d) Medical or psychological services;
(e) Livelihood and skills training; and
(f) Educational assistance to a trafficked child.
Sustained supervision and follow through mechanism that will track the progress of recovery,
rehabilitation and reintegration of the trafficked persons shall be adopted and carried out.
Sec. 47. Legal Protection of Trafficked Persons Who are Foreign Nationals. Trafficked persons in the
Philippines who are nationals of a foreign country shall be entitled to appropriate protection, assistance
and services available to the trafficked persons and shall be allowed to continued presence in the
Philippines for a period of fifty-nine (59) days to enable them to effect the prosecution of the offenders.
Such period may be renewed upon showing of proof by the trial prosecutor that their further testimony is
essential to the prosecution of the case. The trial prosecutor shall course his request for extension to the
Council which shall accordingly act upon the same. If such request is granted, the registration and
immigration fees of
such foreign nationals shall be waived. The Council, for this purpose, shall develop additional
guidelines to implement this provision.
Article XII
TRUST FUND
Sec. 48. Trust Fund; Sources. All fines imposed under the Act and the proceeds and properties forfeited
and confiscated pursuant to Section 14 of the Act and Article IX, Section 5 of these rules and
regulations shall accrue to a Trust Fund to be administered and managed by the Council.
Sec. 49. Utilization. The Trust Fund shall be used exclusively for programs that will prevent acts of
trafficking and protect, rehabilitate, reintegrate trafficked persons into the mainstream of society. Such
programs shall include, but not limited to the following:
(a) Provision for mandatory services set forth in Section 23 of the Act; and Section 47 of these Rules and
Regulations.
(b) Sponsorship of a national research program on trafficking and establishment of a data collection
system for monitoring and evaluation purposes;
(c) Provision of necessary technical and material support services to appropriate government agencies
and nongovernment organizations (NGOs);
(d) Sponsorship of conferences and seminars to provide venue for consensus building among the public,
the academe, government, NGOs and international organizations; and
(e) Promotion of information and education campaign on trafficking.
The Trust Fund may also be used to support the operations of the Secretariat.
Sec. 50. Use and Disbursement of Trust Fund. The use and disbursement of the trust fund shall be
subject to the approval of at least two-thirds (2/3) of the members of the Council and shall be
governed by existing government accounting and auditing rules and regulations.
Article XIII
INTERNATIONAL COOPERATION
Sec. 51. International Cooperation. The Council, in close coordination with the DFA and other
concerned agencies, shall promote cooperation, technical assistance and partnership among
governments and regional and international organizations on the following aspects:
(a) Prevention, protection, prosecution, repatriation and reintegration aspects of trafficking in persons,
especially women and children;
(b) Systematic exchange of information and good practices among law enforcement and immigration
authorities;
(c) Prevention, detection, investigation and prosecution of trafficking in persons, including the protection
of victims through exchanges and joint training at the bilateral, regional and international levels, between
and among relevant officials including police, judges, prosecutors, immigration officers, other law
enforcement agents as well as consular authorities; and
(d) Repatriation of victims of trafficking with due regard to their safety and in consideration of
humanitarian
and compassionate factors.
Article XIV
CONFIDENTIALITY
Sec. 52. Confidentiality. At any stage of the investigation, prosecution and trial of an offense under this
Act, law enforcement officers, prosecutors, judges, court personnel and medical practitioners, as well as
parties to the case, shall recognize the right to privacy of the trafficked person and the accused. Towards
this end, law enforcement officers, prosecutors and judges to whom the complaint has been referred may,
whenever necessary to ensure a fair and impartial proceeding, and after considering all circumstances for
the best interest of the parties, order a closed-door investigation, prosecution or trial. The name and
personal circumstances of the trafficked person or of the accused, or any other information tending to
establish their identities and such circumstances or information shall not be disclosed to the public. In
case when the prosecution or trial is conducted behind closed doors, it shall be unlawful for any editor,
publisher, reporter or columnist in case of printed materials, announcer or producer in case of television
and radio, producer and director of a film in case of the movie industry, or any person utilizing tri-media or
information
technology to cause publicity of and case of trafficking in persons.
Article XV
OFFENSES AND PENALTIES
Sec. 53. Acts of Trafficking in Persons. Any person, natural or juridical, who commits any of the
following acts shall suffer the penalty of imprisonment of twenty (20) years and a fine of not less than One
million pesos (P1,000,000.00) but not more than Two million pesos (P2,000,000.00):
(a) To recruit, transport, transfer, harbor, provide, or receive a person by any means, including those
done under the pretext of domestic or overseas employment or training or apprenticeship, for the purpose
of prostitution, pornography, sexual exploitation, forced labor, slavery, involuntary servitude or debt
bondage;
(b) To introduce or match for money, profit or material, economic or other consideration, any person or, as
provided for under Republic Act No. 6955, any Filipino woman with a foreign national, for marriage for the
purpose of acquiring, buying, offering, selling or trading him/her to engage in prostitution, pornography,
(c) To offer or contract marriage, real or simulated, for the purpose of acquiring, buying, offering, selling,
or trading them to engage in prostitution, pornography, sexual exploitation, forced labor or slavery,
involuntary servitude or debt bondage;
(d) To undertake or organize tours and travel plans consisting tourism packages or activities for the
purpose of utilizing and offering persons for prostitution, pornography or sexual exploitation;
(e) To maintain or hire a person to engage in prostitution or pornography;
(f) To adopt or facilitate the adoption of persons for the purpose of prostitution, pornography, sexual
exploitation,forced labor, slavery, involuntary servitude or debt bondage;
(g) To recruit, hire, adopt, transport or abduct a person, by means of threat or use of force, fraud, deceit,
violence, coercion, or intimidation for the purpose of removal or sale of organs of said person; and
(h) To recruit, transport or adopt a child to engage in armed activities in the Philippines or abroad.
Sec. 54. Acts that Promote Trafficking in Persons. Any person, natural or juridical, who shall commit
the following acts which promote or facilitate trafficking in persons, shall be penalized with the penalty of
imprisonment of fifteen (15) years and a fine of not less than Five hundred thousand pesos (P500,000.00)
but not more than One million pesos (P1,000,000.00):
(a) To knowingly lease or sublease, use or allow to used any house, building or establishment for the
(b) To produce, print and issue or distribute unissued, tampered or fake counseling certificates,
registration stickers and certificates of any government agency which issues these certificates and
stickers as proof of compliance with government regulatory and pre-departure requirements for the
(c) To advertise, publish, print, broadcast or distribute, or cause the advertisement, publication, printing,
broadcasting or distribution by any means, including the use of information technology and the internet of
any brochure, flyer, or any propaganda material that promotes trafficking in persons;
(d) To assist in the conduct of misrepresentation or fraud for purposes of facilitating the acquisition of
clearances and necessary exit documents from government agencies that are mandated to provide pre-
departure registration and services for departing persons for the purpose of promoting trafficking
in persons;
(e) To facilitate, assist or help in the exit and entry of persons from/to the country at international and local
airports, territorial boundaries and seaports who are in possession of unissued, tampered or fraudulent
and travel documents for the purpose of promoting trafficking in persons;
(f) To confiscate, conceal, or destroy the passport, travel documents, or personal documents or
belongings of trafficked persons in furtherance of trafficking or to prevent them from leaving the country or
seeking redress from the government or appropriate agencies; and
(g) To knowingly benefit from, financial or otherwise or make use of, the labor or services of a person held
to a condition of involuntary servitude, forced labor , or slavery.
Sec. 55. Qualified Trafficking in Persons. The following are considered as qualified trafficking and shall
be penalized with the penalty of life imprisonment and a fine of not less than Two million pesos
(2,000,000.00) but not more than Five million pesos (5,000,000.00);
(a) When the trafficked person is a child;

(b) When the adoption is effected through Republic Act No. 8043, otherwise known as the Inter-Country
Adoption Act of 1995 and said adoption is for the purpose of prostitution, pornography, sexual
exploitation, forced labor, slavery, involuntary servitude or debt bondage;
(c) When the crime is committed by a syndicate , or in large scale. Trafficking is deemed committed by a
syndicate if carried out by a group of three (3) or more persons conspiring or confederating with one
another. It is deemed committed in large scale if committed against three (3) or more persons ,
individually or as a group;
(d) When the offender is an ascendant, parent, sibling, guardian or a person who exercises authority over
the trafficked person or when the offense is committed by a public officer or employee;
(e) When the trafficked person is recruited to engage in prostitution with any member of the military or law
enforcement agencies;
(f) When the offender is a member of the military orlaw enforcement agencies; and
(g) When by reason or on occasion of the act of trafficking in persons, the offended party dies, becomes
insane, suffers mutilation or is afflicted with Human Immunodeficiency Virus HIV or the Acquired Immune
Deficiency Syndrome (AIDS).
Sec. 56. Violation of Confidentiality Provisions. Any person who violates Section 7 of the Act and
Section 52, Article XIV hereof shall suffer the penalty of imprisonment of six (6) years and a fine not less
than Five hundred thousand pesos (P500,000.00) but not more than One million pesos (P1,000,000.00).
Sec. 57. Application of Penalties and Other Sanctions. The following shall be applied in the imposition
of penalties:
(a) If the offender is a corporation, partnership, association, club, establishment or any judicial person, the
penalty shall be imposed upon the owner, president, partner, manager, and/or any responsible officer
who participated in the commission of the crime or who shall have knowingly permitted or failed to
prevent its commission;
(b) The registration with the Securities and exchange Commission (SEC) and license to operate of the
erring agency, corporation, association, religious group, tour or travel agent, club or establishment, or any
place or entertainment shall be cancelled and revoked permanently. The owner, president, partner or
manager thereof shall not be allowed to operate similar establishment in a different name;
(c) If the offender is a foreigner, he shall be immediately deported after serving his sentence and be
barred
permanently from entering the country;
(d) Any employee or official of government agencies who shall issue or approve the issuance of travel exit
clearances, passports, registration certificates, counseling certificates, marriage license, and other similar
documents to persons, whether judicial or natural, recruitment agencies, establishments or other
individuals or groups, who fail to observe the prescribed procedures and the requirement as provided for
by laws, rules and regulations, shall be held administratively liable, without prejudice to criminal liability
under the Act. The concerned government official or employee shall, upon conviction, be dismissed from
the service and be
barred permanently to hold public office. His/her retirement and other benefits shall likewise be forfeited;
and
(e) Conviction by final judgment of the adopter for any offense under this Act shall result in the immediate
rescission of the decree of adoption.
Sec. 58. Use of Trafficked Persons. Any person who buys or engages the services of trafficked persons
for prostitution shall be penalized as follows:
(a) First offense six (6) months of community service as may be determined by the court and a fine of
Fifty thousand pesos (P50,000.00); and
(b) Second and subsequent offenses imprisonment of one year (1) year and a fine of One hundred
thousand pesos (P100,000.00).
The Council shall coordinate with the Supreme Court through the Office of the Court Administrator for the
issuance of appropriate guidelines and measures for the judiciary to implement this provision particularly
on the aspect of implementing the penalty of community service.
Article XV
FUNDING
Sec. 59. Inclusion in Agency Appropriations. The heads of departments and agencies concerned shall
immediately include in their annual appropriations the funding necessary to implement programs and
services required by the Act and these regulations.
In the interim, the funding necessary to carry out their mandate under the law may be charged against
their Gender and Development (GAD) budget.
Article XVII
FINAL PROVISIONS
Sec. 60. Non-Restriction of Freedom of Speech and of Association, Religion and the Right to
Travel. Nothing in these rules and regulations shall be interpreted as a restriction of the freedom and of
association, religion and the right to travel for purposes not contrary to law as guaranteed by the
Constitution.
Sec. 61. Saving Clause. The provisions of Republic Act No. 7610, otherwise known as the Special
Protection of Children Against Child Abuse, Exploitation and Discrimination Act shall remain applicable
and shall not in any way be amended or repealed by the provisions of the Act and these rules and
regulations.
Sec. 62. Separability Clause. The declaration of invalidity of any provision of these rules and regulations
or part thereof shall not affect the validity of the remaining provisions.
Sec. 63. Repealing Clause. Pertinent provisions of all laws, presidential decrees, executive orders and
rules and regulations, or parts thereof, contrary to or inconsistent with the provisions of the Act and these
rules and regulations are hereby repealed or modified accordingly.
Sec. 64. Effectivity. These rules and regulations shall take effect fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation.
7. Alien Employment Regulation
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book I, Rule XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines for Issuance of
Employment Permits to Foreign Nationals); Const., Art. XII, Sec. 12
a. Coverage
Almodiel v. NLRC, 223 SCRA 341 (1993)

b. Conditions for grant of Permit, Omnibus Guidelines, Rule III. 1, 2, 3
RULE III. Revocation/Cancellation of Employment Permits Issued
1. The permits issued may, motu proprio or upon a petition, be cancelled or revoked based on any of the
following grounds:
1.1 Misrepresentation of facts or falsification of the documents submitted;

1.2 The foreign national has been declared as an undesirable alien by competent authorities;
1.3 Non-compliance with the conditions for which the AEP was issued;
1.4 Failure to renew AEP within one (1) year after its expiration.
2. Petitions for cancellation or revocation of permits issued shall be resolved within thirty (30) calendars from
receipt thereof.
3. Any aggrieved party may file a Motion for Reconsideration and/or Appeal and the same shall be resolved
based on Paragraph 4 of this Rule.
General Milling Corp. v. Torres, 196 SCRA 215 (1991)

c. Validity of AEP, Omnibus Rules, Rule II.7
7. Validity of Permits - The validity of permits shall be as follows:
7.1 As a general rule, the validity of permits shall be for a period of one (1) year, unless the employment
contract, consultancy services, or other modes of engagement or term of office for elective officers, provides
for a longer period.
7.2 The effectivity of the renewal shall be on the day after the expiration of the previous permit, regardless of
whether or not the renewal is granted before or after the expiration of the previous permit.
7.3 As a general rule, the permits shall be valid only for the position and the employer for which it was
issued, except in case of foreign nationals who are holders of multiple positions in one corporation, where
one AEP shall be valid for such multiple positions.
7.4 The permits of resident foreign nationals shall be valid for multiple employers, regardless of the nature
and duration of their employment, provided that they shall report changes in their employment status and the
identity of their employers to the DOLE Regional Office which has issued the permit.
d. Revocation/Cancellation/Grounds, Omnibus Guidelines, Rule III.1
RULE III. Revocation/Cancellation of Employment Permits Issued
1. The permits issued may, motu proprio or upon a petition, be cancelled or revoked based on any of the following
grounds:

E. Human Resources Development
Reference: Arts. 57-81; Technical Education and Skills Development Authority Act of 1994 (TESDA) (RA 7796); Dual Training
Systems Act of 1994 (RA 7686); Magna Carta for Disabled Persons (RA 7277)
1. Policy Objectives, RA 7796, Secs. 2-3
SEC. 2. Declaration of Policy. - I t is hereby declared the policy of the State to provide relevant, accessible, high
quality and efficient technical education and skills development in support of the development of high quality Filipino
middle-level manpower responsive to and in accordance with Philippine development goals and priorities.
The State shall encourage active participation of various concerned sectors, particularly private
enterprises, being direct participants in and immediate beneficiaries of a trained and skilled workforce, in providing
technical education and skills development opportunities.
SEC. 3. Statement of Goals and Objectives. - It is the goal and objective of this Act to:
Promote and strengthen the quality of technical education and skills development programs to attain international
competitiveness;
Focus technical education and skills development on meeting the changing demands for quality middle-level manpower;
Encourage critical and creative thinking by disseminating the scientific and technical knowledge base of middle-level
manpower development programs;
Recognize and encourage the complementary roles of public and private institutions in technical education and skills
development and training systems; and
Inculcate desirable values through the development of moral character with emphasis on work ethic, self-discipline, self-
reliance and nationalism.
2. Apprentice
a. Definition, RA 7796, Sec. 4 (j)
"Apprentice" is a person undergoing training for an approved apprenticeable occupation during an apprenticeship
agreement;
b. Apprenticeable Occupation, RA 7796, Sec. 4 (m)
(m) "Apprenticeable Occupation" is an occupation officially endorsed by a tripartite body and approved for
apprenticeship by the authority;
c. Qualification, RA 7610, as amended by RA 7658, Sec. 12
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 R. A. 7610.
Section 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 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.
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
d. Allowed Employment; Requirement Program Approval
Nitto Enterprises v. NLRC, 258 SCRA 654 (1995)
e. Terms and Conditions of Employment, Art. 61, 72
ART. 61. Contents of apprenticeship agreements. - Apprenticeship agreements, including the wage rates of
apprentices, shall conform to the rules issued by the Secretary of Labor and Employment. The period of
apprenticeship shall not exceed six months. Apprenticeship agreements providing for wage rates below the legal
minimum wage, which in no case shall start below 75 percent of the applicable minimum wage, may be entered into
only in accordance with apprenticeship programs duly approved by the Secretary of Labor and Employment. The
Department shall develop standard model programs of apprenticeship. (As amended by Section 1, Executive Order
No. 111, December 24, 1986).
ART. 72. Apprentices without compensation. - The Secretary of Labor and Employment may authorize the hiring of
apprentices without compensation whose training on the job is required by the school or training program curriculum
or as requisite for graduation or board examination.
3. Costs, Art. 71
ART. 71. Deductibility of training costs. - An additional deduction from taxable income of one-half (1/2) of the value of
labor training expenses incurred for developing the productivity and efficiency of apprentices shall be granted to the
person or enterprise organizing an apprenticeship program: Provided, That such program is duly recognized by the
Department of Labor and Employment: Provided, further, That such deduction shall not exceed ten (10%) percent of
direct labor wage: and Provided, finally, That the person or enterprise who wishes to avail himself or itself of this incentive
should pay his apprentices the minimum wage.
4. Enforcement, Arts. 65, 66, 67
ART. 65. Investigation of violation of apprenticeship agreement. - Upon complaint of any interested person or upon its
own initiative, the appropriate agency of the Department of Labor and Employment or its authorized representative
shall investigate any violation of an apprenticeship agreement pursuant to such rules and regulations as may be
prescribed by the Secretary of Labor and Employment.
ART. 66. Appeal to the Secretary of Labor and Employment. - The decision of the authorized agency of the
Department of Labor and Employment may be appealed by any aggrieved person to the Secretary of Labor and
Employment within five (5) days from receipt of the decision. The decision of the Secretary of Labor and Employment
shall be final and executory.
ART. 67. Exhaustion of administrative remedies. - No person shall institute any action for the enforcement of any
apprenticeship agreement or damages for breach of any such agreement, unless he has exhausted all available
administrative remedies.
5. Learners
a. Definition, RA 7796, Sec. 4
(n) Learners" refer to persons hired as trainees in semi-skills and other industrial occupations which are non-
apprenticeable. Learnersship programs must be approved by the Authority;
b. Allowed Employment, Art. 74 (b)
ART. 74. When learners may be hired. - Learners may be employed when no experienced workers are available, the
employment of learners is necessary to prevent curtailment of employment opportunities, and the employment does not
create unfair competition in terms of labor costs or impair or lower working standards.
c. Terms and Conditions of Employment, Arts. 75, 76
ART. 75. Learnership agreement. - Any employer desiring to employ learners shall enter into a learnership
agreement with them, which agreement shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which shall not exceed three (3) months;
(c) The wages or salary rates of the learners which shall begin at not less than seventy-five percent (75%) of the
applicable minimum wage; and
(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.
The learnership agreement shall be subject to inspection by the Secretary of Labor and Employment or his duly
authorized representative.
ART. 76. Learners in piecework. - Learners employed in piece or incentive-rate jobs during the training period shall
be paid in full for the work done.
6. Differently-Abled Worker (Handicapped), RA 7277
a. Definition, RA 7277, Sec. 4 (a) (b) (c) (d)
Sec. 4. Definition of Terms. For purposes of this Act, these terms are defined as follows:
(a) Disabled persons are those suffering from restriction or different abilities, as a result of a mental, physical
or sensory impairment, to perform an activity in the manner or within the range considered normal for a
human being;
(b) Impairment is any loss, diminution or aberration of psychological, physiological, or anatomical structure
or function;
(c) Disability shall mean 1) a physical or mental impairment that substantially limits one or more
psychological, physiological or anatomical function of an individual or activities of such individual; 2) a
record of such an impairment; or 3) being regarded as having such an impairment;
(d) Handicap refers to a disadvantage for a given individual, resulting from an impairment or a disability, that
limits or prevents the function or activity, that is considered normal given the age and sex of the individual;
b. Policy Declaration, RA 7277, Sec. 2
Sec. 2. Declaration of Policy The grant of the rights and privileges for disabled persons shall be guided by
the following principles:
(a) Disabled persons are part of Philippine society, thus the State shall give full support to the improvement
of the total well-being of disabled persons and their integration into the mainstream of society. Toward this
end, the State shall adopt policies ensuring the rehabilitation, self-development and self-reliance of disabled
persons. It shall develop their skills and potentials to enable them to compete favorably for available
opportunities.
(b) Disabled persons have the same rights as other people to take their proper place in society. They should
be able to live freely and as independently as possible. This must be the concern of everyone the family,
community and all government and nongovernment organizations. Disabled persons' rights must never be
perceived as welfare services by the Government.
(c) The rehabilitation of the disabled persons shall be the concern of the Government in order to foster their
capacity to attain a more meaningful, productive and satisfying life. To reach out to a greater number of
disabled persons, the rehabilitation services and benefits shall be expanded beyond the traditional urban-
based centers to community based programs, that will ensure full participation of different sectors as
supported by national and local government agencies.
(d) The State also recognizes the role of the private sector in promoting the welfare of disabled persons and
shall encourage partnership in programs that address their needs and concerns.
(e) To facilitate integration of disabled persons into the mainstream of society, the State shall advocate for
and encourage respect for disabled persons. The State shall exert all efforts to remove all social, cultural,
economic, environmental and attitudinal barriers that are prejudicial to disabled persons.
c. Coverage, RA 7277, Sec. 3
Sec. 3. Coverage. This Act shall cover all disabled persons and, to the extent herein provided, departments,
offices and agencies of the National Government or nongovernment organizations involved in the attainment of
the objectives of this Act.
d. Rights and Privileges, RA 7277, Secs. 5, 6, 7
Sec. 5. Equal Opportunity for Employment. No disable person shall be denied access to opportunities for
suitable employment. A qualified disabled employee shall be subject to the same terms and conditions of
employment and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a
qualified able bodied person.
Five percent (5%) of all casual emergency and contractual positions in the Departments of Social Welfare
and Development; Health; Education, Culture and Sports; and other government agencies, offices or
corporations engaged in social development shall be reserved for disabled persons.
Sec. 6. Sheltered Employment If suitable employment for disabled persons cannot be found through open
employment as provided in the immediately preceding Section, the State shall endeavor to provide it by
means of sheltered employment. In the placement of disabled persons in sheltered employment, it shall
accord due regard to the individual qualities, vocational goals and inclinations to ensure a good working
atmosphere and efficient production.
Sec. 7. Apprenticeship. Subject to the provisions of the Labor Code as amended, disabled persons shall
be eligible as apprentices or learners: Provided, That their handicap is not as much as to effectively impede
the performance of job operations in the particular occupation for which they are hired; Provided, further,
That after the lapse of the period of apprenticeship, if found satisfactory in the job performance, they shall be
eligible for employment.
Bernardo v. NLRC & FEBTC, 310 SCRA 186 (1999)
e. Discrimination, RA 7277, Secs. 32, 33
Sec. 32. Discrimination on Employment. No entity, whether public or private, shall discriminate against a
qualified disabled person by reason of disability in regard to job application procedures, the hiring,
promotion, or discharge of employees, employee compensation, job training, and other terms, conditions,
and privileges of employment. The following constitute acts of discrimination:
(a) Limiting, segregating or classifying a disabled job applicant in such a manner that adversely affects his
work opportunities;
(b) Using qualification standards, employment tests or other selection criteria that screen out or tend to
screen out a disabled person unless such standards, tests or other selection criteria are shown to be job-
related for the position in question and are consistent with business necessity;
(c) Utilizing standards, criteria, or methods of administration that:
(1) have the effect of discrimination on the basis of disability; or
(2) perpetuate the discrimination of others who are subject to common administrative control.
(d) Providing less compensation, such as salary, wage or other forms of remuneration and fringe benefits, to
a qualified disabled employee, by reason of his disability, than the amount to which a non-disabled person
performing the same work is entitled;
(e) Favoring a non-disabled employee over a qualified disabled employee with respect to promotion, training
opportunities, study and scholarship grants, solely on account of the latter's disability;
(f) Re-assigning or transferring a disabled employee to a job or position he cannot perform by reason of his
disability;
(g) Dismissing or terminating the services of a disabled employee by reason of his disability unless the
employer can prove that he impairs the satisfactory performance of the work involved to the prejudice of the
business entity: Provided, however, That the employer first sought to provide reasonable accommodations
for disabled persons;
(h) Failing to select or administer in the most effective manner employment tests which accurately reflect the
skills, aptitude or other factor of the disabled applicant or employee that such tests purports to measure,
rather than the impaired sensory, manual or speaking skills of such applicant or employee, if any; and
(i) Excluding disabled persons from membership in labor unions or similar organizations.
Sec. 33. Employment Entrance Examination. Upon an offer of employment, a disabled applicant may be
subjected to medical examination, on the following occasions:
(a) all entering employees are subjected to such an examination regardless of disability;
(b) information obtained during the medical condition or history of the applicant is collected and maintained
on separate forms and in separate medical files and is treated as a confidential medical record; Provided,
however, That:
(1) supervisors and managers may be informed regarding necessary restrictions on the work or duties of the
employees and necessary accommodations;
(2) first aid and safety personnel may be informed, when appropriate, if the disability may require emergency
treatment;
(3) government officials investigating compliance with this Act shall be provided relevant information on
request; and
(4) the results of such examination are used only in accordance with this Act.
f. Enforcement, Secs. 44, 45, 46
Sec. 44. Enforcement by the Secretary of Justice.

(a) Denial of Right
(1) Duty to Investigate the Secretary of Justice shall investigate alleged violations of this Act, and shall
undertake periodic reviews of compliance of covered entities under this Act.
(b) Potential Violations If the Secretary of Justice has reasonable cause to believe that
(1) any person or group of persons is engaged in a pattern or practice of discrimination under this Act; or
(2) any person or group or persons has been discriminated against under this Act and such discrimination
raises an issue of general public importance, the Secretary of Justice may commence a legal action in any
appropriate court.
Sec. 45. Authority of Court. The court may grant any equitable relief that such court considers to be
appropriate, including, to the extent required by this Act:
(a) granting temporary, preliminary or permanent relief;
(b) providing an auxiliary aid or service, modification of policy, practice or procedure, or alternative method;
and
(c) making facilities readily accessible to and usable by individuals with disabilities.
Sec. 46. Penal Clause. (a) Any person who violates any provision of this Act shall suffer the following
penalties:
(1) for the first violation, a fine of not less than Fifty thousand pesos (P50,000.00) but not exceeding One
hundred thousand pesos (P100,000.00) or imprisonment of not less than six (6) months but not more than
two (2) years, or both at the discretion of the court; and
(2) for any subsequent violation, a fine of not less than One hundred thousand pesos (P100,000.00) but not
exceeding Two hundred thousand pesos (P200,000.00) or imprisonment for not less than two (2) years but
not more than six (6) years, or both at the discretion of the court.
(b) Any person who abuses the privileges granted herein shall be punished with imprisonment of not less
than six (6) months or a fine of not less than Five thousand pesos (P5,000.00), but not more than Fifty
thousand pesos (P50,000.00), or both, at the discretion of the court.
(c) If the violator is a corporation, organization or any similar entity, the officials thereof directly involved
shall be liable therefor.
(d) If the violator is an alien or a foreigner, he shall be deported immediately after service of sentence without
further deportation proceedings.
NOTES:
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Habol:
Alien Employment Regulation
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book I, Rule XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines for Issuance of
Employment Permits to Foreign Nationals); Const., Art. XII, Sec. 12
Labor Code
Art. 12 (e) To regulate the employment of aliens, including the establishment of a registration and/or work permit system;
ART. 40. Employment permit of non-resident aliens. - Any alien seeking admission to the Philippines for employment purposes and
any domestic or foreign employer who desires to engage an alien for employment in the Philippines shall obtain an employment
permit from the Department of Labor.
The employment permit may be issued to a non-resident alien or to the applicant employer after a determination of the non-
availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for
which the alien is desired.
For an enterprise registered in preferred areas of investments, said employment permit may be issued upon recommendation of the
government agency charged with the supervision of said registered enterprise.
ART. 41. Prohibition against transfer of employment. - (a) After the issuance of an employment permit, the alien shall not transfer
to another job or change his employer without prior approval of the Secretary of Labor.
(b) Any non-resident alien who shall take up employment in violation of the provision of this Title and its implementing rules and
regulations shall be punished in accordance with the provisions of Articles 289 and 290 of the Labor Code.
In addition, the alien worker shall be subject to deportation after service of his sentence.
ART. 42. Submission of list. - Any employer employing non-resident foreign nationals on the effective date of this Code shall submit
a list of such nationals to the Secretary of Labor within thirty (30) days after such date indicating their names, citizenship, foreign
and local addresses, nature of employment and status of stay in the country. The Secretary of Labor shall then determine if they
are entitled to an employment permit.
Omnibus Rules, Book I, Rule XIV
RULE XIV
Employment of Aliens
SECTION 1. Coverage. This Rule shall apply to all aliens employed or seeking employment in the Philippines, and their present or
prospective employers.
SECTION 2. Submission of list. All employers employing foreign nationals, whether resident or non-resident shall submit a list of
such nationals to the Bureau indicating their names, citizenship, foreign and local addresses; nature of employment and status of
stay in the Philippines.
SECTION 3. Registration of resident aliens. All employed resident aliens shall register with the Bureau under such guidelines as
may be issued by it.
SECTION 4. Employment permit required for entry. No alien seeking employment, whether on resident or non-resident status,
may enter the Philippines without first securing an employment permit from the Department of Labor and Employment. If an alien
enters the country under a non-working visa and wishes to be employed thereafter, he may only be allowed to be employed upon
presentation of a duly approved employment permit.
SECTION 5. Requirements for employment permit application. The application for an employment permit shall be accompanied
by the following:
(a) Curriculum vitae duly signed by the applicant indicating his educational background, his work experience and other data
showing that he possesses high technical skills in his trade or profession;
(b) Contract of employment between the employer and the principal which shall embody the following, among others:
(1) That the non-resident alien worker shall comply with all applicable laws and rules and regulations of the Philippines;
(2) That the non-resident alien worker and the employer shall bind themselves to train at least two (2) Filipino understudies for a
period to be determined by the Secretary of Labor and Employment; and
(3) That he shall not engage in any gainful employment other than that for which he was issued a permit.
(c) A designation by the employer of at least two (2) understudies for every alien worker. Such understudies must be the most
ranking regular employees in the section or department for which the expatriates are being hired to ensure the actual transfer of
technology.
SECTION 6. Issuances of employment permit. The Secretary of Labor and Employment may issue an employment permit to the
applicant based on:
a) Compliance by the applicant and his employer with the requirements of Section 2 hereof;
b) Report of the Bureau Director as to the availability or non-availability of any person in the Philippines who is competent, able,
and willing to do the job for which the services of the applicant are desired;
c) His assessment as to whether or not the employment of the applicant will redound to the national interest;
d) Admissibility of the alien as certified by the Commission on Immigration and Deportation;
e) The recommendation of the Board of Investments or other appropriate government agencies if the applicant will be employed in
preferred areas of investments or in accordance with imperatives of economic developments; and
f) Payments of a P100.00 fee.
SECTION 7. Duration of employment permit. Subject to renewal upon showing of good cause, the employment permit shall be
valid for a minimum period of one (1) year starting from the date of its issuance unless sooner revoked by the Secretary of Labor
and Employment for violation of any provisions of the Code or of these Rules.
SECTION 8. Advice to Commission on Immigration and Deportation. The Bureau shall advice the Commission on Immigration and
Deportation on the issuance of an employment permit to an applicant.
SECTION 9. Understudy Training Program. The employer shall submit a training program for his understudies to the Bureau
within thirty (30) days upon arrival of the alien workers. The supervision of the training program shall be the responsibility of the
Bureau and shall be in accordance with standards established by the Secretary of Labor and Employment.
Omnibus Guidelines for Issuance of Employment Permits to Foreign Nationals DO 12, November 12, 2001.
DEPARTMENT ORDER NO. 12

(Series of 2001)
.
.
OMNIBUS GUIDELINES FOR THE ISSUANCE OF EMPLOYMENT PERMITS TO FOREIGN NATIONALS.
.
.
Pursuant to the provisions of Articles 5 and 40 of P. D. 442, as amended, the provisions of Rule XIV, Book I of
its Implementing Rules and Regulations, Section 17(5), Chapter 4, Title VII of the Administrative Code of
1987, the following Omnibus Guidelines for the issuance of Employment Permits are hereby promulgated:
Rule I
Coverage and Exemption
1. The following shall apply for Alien Employment Permit (AEP):

1.1. All foreign nationals seeking admission to the Philippines for the purpose of employment;
1.2. Missionaries or religious workers who intend to engage in gainful employment;
1.3. Holders of Special Investors Resident Visa (SIRV), Special Retirees Resident Visa (SRRV), Treaty Traders
Visa (9d) or Special Non-immigrant Visa (47(a)2), who occupy any executive, advisory, supervisory, or
technical position in any establishment;
1.4. Agencies, organizations or individuals whether public or private, who secure the services of foreign
professionals to practice their professions in the Philippines in the Philippines under reciprocity and other
international agreements;
1.5. Non-Indo-Chinese Refugees who are asylum seekers and given refugee status by the United Nations
High Commissioner on Refugees (UNHCR) or the Department of Justice under DOJ Department Order No. 94,
series of 1998;
1.6. Resident foreign nationals seeking employment in the Philippines.

2. Exemption. The following categories of foreign nationals are exempt from securing an employment permit
in order to work in the Philippines.
2.1 All members of the diplomatic services and foreign government officials accredited by the Philippine
Government;
2.2 Officers and staff of international organizations of which the Philippine government is a cooperating
member, and their legitimate spouse desiring to work in the Philippines;
2.3 Foreign nationals elected as members of the Governing board who do not occupy any other position, but
have only voting rights in the corporation; and
2.4 All foreign nationals granted exemption by special laws and all other laws that may be promulgated by
the Congress.
Rule II
Procedures in the Processing of Applications for AEP
1. All foreign nationals seeking employment in the Philippines under Rule 1 hereof or their prospective
employers, shall file their applications with the DOLE Regional Office having jurisdiction over the intended
place of work.
2. Fees - The applicant shall pay filing, publication and permit fees in the amount of Eight thousand pesos
(P8,000.00) for each application for AEP with a validity of one (1) year. Three thousand pesos (P3,000.00)
shall be charged for every additional year of validity or a fraction thereof.
3. An AEP shall be issued based on the following:
3.1. Compliance bye the applicant employer or the foreign national with the substantive and documentary
requirements;
3.2. Determination of the DOLE Secretary that there is no Filipino national who is competent, able and willing
to do the job for which the services of the applicant is desired;
3.3. Assessment of the DOLE Secretary that the employment of the foreign national will redound to national
benefit;
4. Denial of Application for AEP - An application for AEP may be denied based on the ground of non-
compliance with any of the requirements for issuance of AEP or for misrepresentation of facts in the
application or submission of falsified or tampered documents.
Foreign nationals whose applications have been denied shall not be allowed to re-apply in any of the DOLE
Regional Offices.
5. Renewal of Permit - An application for renewal of AEP shall be filed at least fifteen (15) days before its
expiration. For elective officers, applications for renewal shall be filed upon election or at least thirty (30)
days before the effectivity of the applicant's term of office if the succeeding term of office is ascertained.
Failure to file the application for renewal of permit within the prescribed period shall be subject to fines of
Five Thousand Pesos (5,000.00), if filed within six (6) months after the prescribed period and Ten Thousand
Pesos (10,000.00), if filed after six (6) months. Failure to renew the AEP within one (1) year after its expiration
shall be a cause for its revocation or cancellation.
6. The employer shall notify the DOLE-RO which issued the permit of the date of the assumption to duty of
the foreign national within thirty (30) days from issuance of the permit.
7. Validity of Permits - The validity of permits shall be as follows:
7.1. As a general rule, the validity of permits shall be for a period of one (1) year, unless the employment
contract, consultancy services, or other modes of engagement or term of office for elective officers, provides
for a longer period.
7.2. The effectivity of the renewal shall be on the day after the expiration of the previous permit, regardless of
whether or not the renewal is granted before or after the expiration of the previous permit.
7.3. As a general rule, the permits shall be valid only for the position and the employer for which it was
issued, except in case of foreign nationals who are holders of multiple positions in one corporation, where
one AEP shall be valid for such multiple positions.
7.4. The permits of resident foreign nationals shall be valid for multiple employers, regardless of the nature
and duration of their employment, provided that they shall report changes in their employment status and
the identity of their employers to the DOLE Regional Office which has issued the permit.
Rule III
Revocation/Cancellation of Employment Permits Issued
1. The permits issued may, motu proprio or upon a petition, be cancelled or revoked based on any of the
following grounds:
2. Petitions for cancellation or revocation of permits issued shall be resolved within thirty (30) calendars
from receipt thereof.
3. Any aggrieved party may file a Motion for Reconsideration and/or Appeal and the same shall be resolved
based on Paragraph 4 of this Rule.
4. Remedies in Case of Denial or Cancellation - A Motion for Reconsideration maybe filed by an aggrieved
party within seven (7) calendar days after receipt of the Order of Denial/Cancellation. The DOLE Regional
Director shall resolve the said Motion for Reconsideration within ten (10) calendar days from receipt thereof.
A motion for Reconsideration filed after the period of seven (7) calendar days but within ten (10) calendar
days after receipt of the denial shall be treated as an appeal.
An appeal from the decision of the DOLE Regional Director may be filed with the Secretary of labor and
Employment within ten (10) calendar days from receipt of an Order from the DOLE Regional Director. The
decision of the Secretary of Labor and Employment shall be final and unappealable.
Rule IV
Penal and Transitory Provisions
1. The DOLE Regional Directors, after due notice and hearing, shall have the power to order and impose a
fine of Five Thousand Pesos (P5,000.00) on foreign nationals found working without an AEP for less than one
(1) year and Ten Thousand Pesos (P10,000.00) for more than one (1) year.
2. All applications for employment permit/certificates pending at the DOLE-RO upon the effectivity of these
Guidelines shall be covered and processed under the provisions of these Guidelines.
3. Holders of provisional and extended AEPs issued under Memorandum dated 24 August 2001 regarding
Alternative Interim Measures for the Issuance of Alien Employment Permits, shall apply for an AEP pursuant
to these Guidelines on or before the expiration of the provisional and extended AEP.
4. Foreign nationals who are already working in the country and who have not yet secured the requisite
employment permit shall have ninety (90) days from the effectivity of these Guidelines to secure the said
employment permit without penalty.
Rule V
Miscellaneous Provisions
1. Manual of Operations. - The Bureau of Local Employment shall issue a Manual of Operations to implement
the provisions of these Guidelines.
2. Separability Clause. - If any provision or part of this Department Order or the application thereof to any
person or circumstance is held invalid by the Courts, the remaining valid provisions of this Department
Order shall not be affected.
3. Repealing Clause. - All guidelines, rules and regulations and agreements inconsistent herewith are hereby
repealed or modified accordingly.
4. Effectivity. - These guidelines shall take effect fifteen (15) days after its publication in two (2) newspapers
of general circulation.
Constitution, Art. XII, Sec. 12
Section 12. The State shall promote the preferential use of Filipino labor, domestic materials and locally produced
goods, and adopt measures that help make them competitive.
F. Conditions of Work
Reference: Arts. 82-90; Omnibus Rules, Book III, Rules l, lA, ll
Title I
WORKING CONDITIONS
AND REST PERIODS
Chapter I
HOURS OF WORK
ART. 82. Coverage. - The provisions of this Title shall apply to employees in all establishments and undertakings
whether for profit or not, but not to government employees, managerial employees, field personnel, members of the
family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of
another, and workers who are paid by results as determined by the Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to those whose primary duty consists of the management of the
establishment in which they are employed or of a department or subdivision thereof, and to other officers or members
of the managerial staff.
"Field personnel" shall refer to non-agricultural employees who regularly perform their duties away from the principal
place of business or branch office of the employer and whose actual hours of work in the field cannot be determined
with reasonable certainty.
ART. 83. Normal hours of work. - The normal hours of work of any employee shall not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in hospitals and
clinics with a bed capacity of at least one hundred (100) shall hold regular office hours for eight (8) hours a day, for
five (5) days a week, exclusive of time for meals, except where the exigencies of the service require that such
personnel work for six (6) days or forty-eight (48) hours, in which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their regular wage for work on the sixth day. For purposes of this
Article, "health personnel" shall include resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital
or clinic personnel.
ART. 84. Hours worked. - Hours worked shall include (a) all time during which an employee is required to be on duty
or to be at a prescribed workplace; and (b) all time during which an employee is suffered or permitted to work.
Rest periods of short duration during working hours shall be counted as hours worked.
ART. 85. Meal periods. - Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of
every employer to give his employees not less than sixty (60) minutes time-off for their regular meals.
ART. 86. Night shift differential. - Every employee shall be paid a night shift differential of not less than ten percent
(10%) of his regular wage for each hour of work performed between ten oclock in the evening and six oclock in the
morning.
ART. 87. Overtime work. - Work may be performed beyond eight (8) hours a day provided that the employee is paid
for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent
(25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation
equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.
ART. 88. Undertime not offset by overtime. - Undertime work on any particular day shall not be offset by overtime
work on any other day. Permission given to the employee to go on leave on some other day of the week shall not
exempt the employer from paying the additional compensation required in this Chapter.
ART. 89. Emergency overtime work. - Any employee may be required by the employer to perform overtime work in
any of the following cases:chan robles virtual law library
(a) When the country is at war or when any other national or local emergency has been declared by the National
Assembly or the Chief Executive;
(b) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an
actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake,
epidemic, or other disaster or calamity;
(c) When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss
or damage to the employer or some other cause of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods; and
(e) Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious
obstruction or prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall be paid the additional compensation required
in this Chapter.
ART. 90. Computation of additional compensation. - For purposes of computing overtime and other additional
remuneration as required by this Chapter, the "regular wage" of an employee shall include the cash wage only,
without deduction on account of facilities provided by the employer.
BOOK THREE
Conditions of Employment
RULE I
Hours of Work
SECTION 1. General statement on coverage. The provisions of this Rule shall apply to all employees in all
establishments and undertakings, whether operated for profit or not, except to those specifically exempted under
Section 2 hereof.
SECTION 2. Exemption. The provisions of this Rule shall not apply to the following persons if they qualify for
exemption under the conditions set forth herein:
(a) Government employees whether employed by the National Government or any of its political subdivision,
including those employed in government-owned and/or controlled corporations;
(b) Managerial employees, if they meet all of the following conditions:
(1) Their primary duty consists of the management of the establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of two or more employees therein.
(3) They have the authority to hire or fire employees of lower rank; or their suggestions and recommendations as to
hiring and firing and as to the promotion or any other change of status of other employees, are given particular
weight.
(c) Officers or members of a managerial staff if they perform the following duties and responsibilities:
(1) The primary duty consists of the performance of work directly related to management policies of their employer;
(2) Customarily and regularly exercise discretion and independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the
management of the establishment in which he is employed or subdivision thereof; or (ii) execute under general
supervision work along specialized or technical lines requiring special training, experience, or knowledge; or (iii)
execute, under general supervision, special assignments and tasks; and
(4) Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly
and closely related to the performance of the work described in paragraphs (1), (2) and (3) above.
(d) Domestic servants and persons in the personal service of another if they perform such services in the employer's
home which are usually necessary or desirable for the maintenance and enjoyment thereof, or minister to the
personal comfort, convenience, or safety of the employer as well as the members of his employer's household.
(e) Workers who are paid by results, including those who are paid on piece-work, "takay," "pakiao" or task basis, and
other non-time work if their output rates are in accordance with the standards prescribed under Section 8, Rule VII,
Book Three of these regulations, or where such rates have been fixed by the Secretary of Labor and Employment in
accordance with the aforesaid Section.
(f) Non-agricultural field personnel if they regularly perform their duties away from the principal or branch office or
place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable
certainty.
SECTION 3. Hours worked. The following shall be considered as compensable hours worked:
(a) All time during which an employee is required to be on duty or to be at the employer's premises or to be at a
prescribed work place; and
(b) All time during which an employee is suffered or permitted to work.
SECTION 4. Principles in determining hours worked. The following general principles shall govern in determining
whether the time spent by an employee is considered hours worked for purposes of this Rule:
(a) All hours are hours worked which the employee is required to give his employer, regardless of whether or not
such hours are spent in productive labor or involve physical or mental exertion.
(b) An employee need not leave the premises of the work place in order that his rest period shall not be counted, it
being enough that he stops working, may rest completely and may leave his work place, to go elsewhere, whether
within or outside the premises of his work place.
(c) If the work performed was necessary, or it benefited the employer, or the employee could not abandon his work at
the end of his normal working hours because he had no replacement, all time spent for such work shall be considered
as hours worked, if the work was with the knowledge of his employer or immediate supervisor.
(d) The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be
considered working time either if the imminence of the resumption of work requires the employee's presence at the
place of work or if the interval is too brief to be utilized effectively and gainfully in the employee's own interest.
SECTION 5. Waiting time. (a) Waiting time spent by an employee shall be considered as working time if waiting is
an integral part of his work or the employee is required or engaged by the employer to wait.
(b) An employee who is required to remain on call in the employer's premises or so close thereto that he cannot use
the time effectively and gainfully for his own purpose shall be considered as working while on call. An employee who
is not required to leave word at his home or with company officials where he may be reached is not working while on
call.
SECTION 6. Lectures, meetings, training programs. Attendance at lectures, meetings, training programs, and
other similar activities shall not be counted as working time if all of the following conditions are met:
(a) Attendance is outside of the employee's regular working hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive work during such attendance.
SECTION 7. Meal and Rest Periods. Every employer shall give his employees, regardless of sex, not less than
one (1) hour time-off for regular meals, except in the following cases when a meal period of not less than twenty (20)
minutes may be given by the employer provided that such shorter meal period is credited as compensable hours
worked of the employee:
(a) Where the work is non-manual work in nature or does not involve strenuous physical exertion;
(b) Where the establishment regularly operates not less than sixteen (16) hours a day;
(c) In case of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or
installations to avoid serious loss which the employer would otherwise suffer; and
(d) Where the work is necessary to prevent serious loss of perishable goods.
Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered as compensable
working time.
SECTION 8. Overtime pay. Any employee covered by this Rule who is permitted or required to work beyond eight
(8) hours on ordinary working days shall be paid an additional compensation for the overtime work in the amount
equivalent to his regular wage plus at least twenty-five percent (25%) thereof.
SECTION 9. Premium and overtime pay for holiday and rest day work. (a) Except employees referred to under
Section 2 of this Rule, an employee who is permitted or suffered to work on special holidays or on his designated rest
days not falling on regular holidays, shall be paid with an additional compensation as premium pay of not less than
thirty percent (30%) of his regular wage. For work performed in excess of eight (8) hours on special holidays and rest
days not falling on regular holidays, an employee shall be paid an additional compensation for the overtime work
equivalent to his rate for the first eight hours on a special holiday or rest day plus at least thirty percent (30%) thereof.
(b) Employees of public utility enterprises as well as those employed in non-profit institutions and organizations shall
be entitled to the premium and overtime pay provided herein, unless they are specifically excluded from the coverage
of this Rule as provided in Section 2 hereof.
(c) The payment of additional compensation for work performed on regular holidays shall be governed by Rule IV,
Book Three, of these Rules.
SECTION 10. Compulsory overtime work. In any of the following cases, an employer may require any of his
employees to work beyond eight (8) hours a day, provided that the employee required to render overtime work is paid
the additional compensation required by these regulations:
(a) When the country is at war or when any other national or local emergency has been declared by Congress or the
Chief Executive;
(b) When overtime work is necessary to prevent loss of life or property, or in case of imminent danger to public safety
due to actual or impending emergency in the locality caused by serious accident, fire, floods, typhoons, earthquake,
epidemic or other disaster or calamities;
(c) When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss
or damage to the employer or some other causes of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods;
(e) When the completion or continuation of work started before the 8th hour is necessary to prevent serious
obstruction or prejudice to the business or operations of the employer; or
(f) When overtime work is necessary to avail of favorable weather or environmental conditions where performance or
quality of work is dependent thereon.
In cases not falling within any of these enumerated in this Section, no employee may be made to work beyond eight
hours a day against his will.
RULE I-A
Hours of Work of Hospital and Clinic Personnel
SECTION 1. General statement on coverage. This Rule shall apply to:
(a) All hospitals and clinics, including those with a bed capacity of less than one hundred (100) which are situated in
cities or municipalities with a population of one million or more; and
(b) All hospitals and clinics with a bed capacity of at least one hundred (100), irrespective of the size of the population
of the city or municipality where they may be situated.
SECTION 2. Hospitals or clinics within the meaning of this Rule. The terms "hospitals" and "clinics" as used in this
Rule shall mean a place devoted primarily to the maintenance and operation of facilities for the diagnosis, treatment
and care of individuals suffering from illness, disease, injury, or deformity, or in need of obstetrical or other medical
and nursing care. Either term shall also be construed as any institution, building, or place where there are installed
beds, or cribs, or bassinets for twenty-four (24) hours use or longer by patients in the treatment of disease, injuries,
deformities, or abnormal physical and mental states, maternity cases or sanitorial care; or infirmaries, nurseries,
dispensaries, and such other similar names by which they may be designated.
SECTION 3. Determination of bed capacity and population. (a) For purposes of determining the applicability of this
Rule, the actual bed capacity of the hospital or clinic at the time of such determination shall be considered, regardless
of the actual or bed occupancy. The bed capacity of hospital or clinic as determined by the Bureau of Medical
Services pursuant to Republic Act No. 4226, otherwise known as the Hospital Licensure Act, shall prima facie be
considered as the actual bed capacity of such hospital or clinic.
(b) The size of the population of the city or municipality shall be determined from the latest official census issued by
the Bureau of the Census and Statistics.
SECTION 4. Personnel covered by this Rule. This Rule applies to all persons employed by any private or public
hospital or clinic mentioned in Section 1 hereof, and shall include, but not limited to, resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers, laboratory technicians paramedical technicians, psychologists,
midwives, and attendants.
SECTION 5. Regular working hours. The regular working hours of any person covered by this Rule shall not be
more than eight (8) hours in any one day nor more than forty (40) hours in any one week.
For purposes of this Rule a "day" shall mean a work day of twenty-four (24) consecutive hours beginning at the same
time each calendar year. A "week" shall mean the work of 168 consecutive hours, or seven consecutive 24-hour work
days, beginning at the same hour and on the same calendar day each calendar week.
SECTION 6. Regular working days. The regular working days of covered employees shall not be more than five
days in a work week. The work week may begin at any hour and on any day, including Saturday or Sunday,
designated by the employer.
Employers are not precluded from changing the time at which the work day or work week begins, provided that the
change is not intended to evade the requirements of this Rule.
SECTION 7. Overtime work. Where the exigencies of the service so require as determined by the employer, any
employee covered by this Rule may be scheduled to work for more than five (5) days or forty (40) hours a week,
provided that the employee is paid for the overtime work an additional compensation equivalent to his regular wage
plus at least thirty percent (30%) thereof, subject to the provisions of this Book on the payment of additional
compensation for work performed on special and regular holidays and on rest days.
SECTION 8. Hours worked. In determining the compensable hours of work of hospital and clinic personnel
covered by this Rule, the pertinent provisions of Rule 1 of this Book shall apply.
SECTION 9. Additional compensation. Hospital and clinic personnel covered by this Rule, with the exception of
those employed by the Government, shall be entitled to an additional compensation for work performed on regular
and special holidays and rest days as provided in this Book. Such employees shall also be entitled to overtime pay
for services rendered in excess of forty hours a week, or in excess of eight hours a day, whichever will yield the
higher additional compensation to the employee in the work week.
SECTION 10. Relation to Rule I. All provisions of Rule I of this Book which are not inconsistent with this Rule shall
be deemed applicable to hospital and clinic personnel.
RULE II
Night Shift Differential
SECTION 1. Coverage. This Rule shall apply to all employees except:

(a) Those of the government and any of its political subdivisions, including government-owned and/or controlled
corporations;
(b) Those of retail and service establishments regularly employing not more than five (5) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of this Code;
(e) Field personnel and other employees whose time and performance is unsupervised by the employer including
those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for
performing work irrespective of the time consumed in the performance thereof.
SECTION 2. Night shift differential. An employee shall be paid night shift differential of no less than ten per cent
(10%) of his regular wage for each hour of work performed between ten o'clock in the evening and six o'clock in the
morning.
SECTION 3. Additional compensation. Where an employee is permitted or suffered to work on the period covered
after his work schedule, he shall be entitled to his regular wage plus at least twenty-five per cent (25%) and an
additional amount of no less than ten per cent (10%) of such overtime rate for each hour or work performed between
10 p.m. to 6 a.m.
SECTION 4. Additional compensation on scheduled rest day/special holiday. An employee who is required or
permitted to work on the period covered during rest days and/or special holidays not falling on regular holidays, shall
be paid a compensation equivalent to his regular wage plus at least thirty (30%) per cent and an additional amount of
not less than ten (10%) per cent of such premium pay rate for each hour of work performed.
SECTION 5. Additional compensation on regular holidays. For work on the period covered during regular holidays,
an employee shall be entitled to his regular wage during these days plus an additional compensation of no less than
ten (10%) per cent of such premium rate for each hour of work performed.
SECTION 6. Relation to agreements. Nothing in this Rule shall justify an employer in withdrawing or reducing any
benefits, supplements or payments as provided in existing individual or collective agreements or employer practice or
policy.
1. Hours of Work
a. Regulation; Rationale
Manila Terminal Co. Inc. v. CIR, 91 Phil. 625 (1952)

b. Coverage/Exemptions, Art. 82, 276; Rule l, Sec.s 1-4
(See Above)
1) Government Employees, Const., Art. IX-B, Sec. 2(1)
ARTICLE IX B. THE CIVIL SERVICE COMMISSION

Section 2. (1) The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the
Government, including government-owned or controlled corporations with original charters.
2) Managerial Employees, Art. 82; Rule I, Sec. 2 (b)

(c)
(b) Managerial employees, if they meet all of the following conditions:
(1) Their primary duty consists of the management of the establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of two or more employees therein.
(3) They have the authority to hire or fire employees of lower rank; or their suggestions and recommendations as to
hiring and firing and as to the promotion or any other change of status of other employees, are given particular
weight.
(c) Officers or members of a managerial staff if they perform the following duties and responsibilities:
(1) The primary duty consists of the performance of work directly related to management policies of their employer;
(2) Customarily and regularly exercise discretion and independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the
management of the establishment in which he is employed or subdivision thereof; or (ii) execute under general
supervision work along specialized or technical lines requiring special training, experience, or knowledge; or (iii)
execute, under general supervision, special assignments and tasks; and
(4) Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly
and closely related to the performance of the work described in paragraphs (1), (2) and (3) above.
Asia Pacific Christening, Inc. v. Farolan, 393 SCRA 454 (2004)
Charlito Peranda v. Baganga Plywood Corp., et al., G.R. 159577, May 3, 2006
3) Field Personnel, Art. 82; Rule I, Sec. 2 (f)
Merdicar Fishing Corp v. NLRC, 297 SCRA 440 (1998)
Auto Bus Transport Systems, Inc. v. Bautista, 458 SCRA 578 (2005)
4) Dependent Family Members
5) Domestic Helpers, Art. 141, 145; Rule I, Sec. 2 (d)
Chapter III
EMPLOYMENT OF HOUSEHELPERS
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.
ART. 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.
6) Persons in the Personal Service of Another, Rule I, Sec. 2 (d)
7) Piece Workers, Rule I, Sec. 2 (e)
(e) Workers who are paid by results, including those who are paid on piece-work, "takay," "pakiao" or task basis, and
other non-time work if their output rates are in accordance with the standards prescribed under Section 8, Rule VII,
Book Three of these regulations, or where such rates have been fixed by the Secretary of Labor and Employment in
accordance with the aforesaid Section.
Labor Congress v. NLRC, 290 SCRA 509 (1998)

c. Normal Hours of Work, Art. 83
ART. 83. Normal hours of work. - The normal hours of work of any employee shall not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in hospitals and clinics with a
bed capacity of at least one hundred (100) shall hold regular office hours for eight (8) hours a day, for five (5) days a week,
exclusive of time for meals, except where the exigencies of the service require that such personnel work for six (6) days or forty-
eight (48) hours, in which case, they shall be entitled to an additional compensation of at least thirty percent (30%) of their regular
wage for work on the sixth day. For purposes of this Article, "health personnel" shall include resident physicians, nurses,
nutritionists, dietitians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
d. Compensable Hours of Work In general
1) On Duty, Art. 84 (a); Rule I, Sec. 3 (a), Sec. 4 (a)
ART. 84. Hours worked. - Hours worked shall include (a) all time during which an employee is required to be on duty or to be at a
prescribed workplace; and (b) all time during which an employee is suffered or permitted to work.
SECTION 3. Hours worked. The following shall be considered as compensable hours worked:
(a) All time during which an employee is required to be on duty or to be at the employer's premises or to be at a
prescribed work place; and
SECTION 4. Principles in determining hours worked. The following general principles shall govern in determining
whether the time spent by an employee is considered hours worked for purposes of this Rule:
(a) All hours are hours worked which the employee is required to give his employer, regardless of whether or not
such hours are spent in productive labor or involve physical or mental exertion.
`
3) At Work, Art. 84 (b); Rule I, Sec. 3 (b)
ART. 84. Hours worked. - Hours worked shall include (a) all time during which an employee is required to be on duty or to be at a
prescribed workplace; and (b) all time during which an employee is suffered or permitted to work.
Sec. 3(b) All time during which an employee is suffered or permitted to work.
e. Specific Rules
1) Rest Period
a) Short Duration or Coffee Break, Art. 84, 2nd par.; Book III, Rule I, Sec. 7, 2nd par.
SECTION 7. Meal and Rest Periods. Every employer shall give his employees, regardless of sex, not less than one (1) hour time-
off for regular meals, except in the following cases when a meal period of not less than twenty (20) minutes may be given by the
employer provided that such shorter meal period is credited as compensable hours worked of the employee:
Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered as compensable working time.
b) More than 20 min., Rules I, Sec. 4 (b)
SECTION 4. Principles in determining hours worked. The following general principles shall govern in determining whether
the time spent by an employee is considered hours worked for purposes of this Rule:
(b) An employee need not leave the premises of the work place in order that his rest period shall not be counted, it being
enough that he stops working, may rest completely and may leave his work place, to go elsewhere, whether within or outside the
premises of his work place.
2) Meal Period
a) Regular Meal Period (One Hour), Art. 85; Rule I, Sec. 7, 1st par.
ART. 85. Meal periods. - Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer
to give his employees not less than sixty (60) minutes time-off for their regular meals.
SECTION 7. Meal and Rest Periods. Every employer shall give his employees, regardless of sex, not less than one (1) hour time-
off for regular meals, except in the following cases when a meal period of not less than twenty (20) minutes may be given by the
employer provided that such shorter meal period is credited as compensable hours worked of the employee:
Philippine Airlines, Inc. v. NLRC, 302 SCRA 582 (1999)
b) Shorter Meal Period (Less than One Hour, but Not Less than 20 min.), Rule I, Sec. 7, 1st par.
(See Above)
4) Waiting Time, Rule I, Sec. 5 (a)
SECTION 5. Waiting time. (a) Waiting time spent by an employee shall be considered as working time if waiting is an integral
part of his work or the employee is required or engaged by the employer to wait.
Arica v. NLRC, 170 SCRA 776 (1989)

4) On Call, Rule I, Sec. 5 (b)
b) An employee who is required to remain on call in the employer's premises or so close thereto that he cannot use the time
effectively and gainfully for his own purpose shall be considered as working while on call. An employee who is not required to leave
word at his home or with company officials where he may be reached is not working while on call.
5) Inactive due to Work Interruptions, Book III, Rule I, Sec. 4 (d)
SECTION 4. Principles in determining hours worked. The following general principles shall govern in determining whether the
time spent by an employee is considered hours worked for purposes of this Rule:
(d) The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered
working time either if the imminence of the resumption of work requires the employee's presence at the place of work or if the
interval is too brief to be utilized effectively and gainfully in the employee's own interest.
University of Pangasinan Faculty Union v. University of Pangasinan, 127 SCRA 691 (1984)
6) Work after Normal Hours, Rule I, Sec. 4 (c)
(c) If the work performed was necessary, or it benefited the employer, or the employee could not abandon his work at the end of
his normal working hours because he had no replacement, all time spent for such work shall be considered as hours worked, if the
work was with the knowledge of his employer or immediate supervisor.
7) Lectures, Meetings, Training Programs, Rule I, Sec. 6
SECTION 6. Lectures, meetings, training programs. Attendance at lectures, meetings, training programs, and other similar
activities shall not be counted as working time if all of the following conditions are met:
(a) Attendance is outside of the employee's regular working hours;
(b) Attendance is in fact voluntary; and

(c) The employee does not perform any productive work during such attendance.
8) Travel Time
Rada v. NLRC, 205 SCRA 69 (1992)
f. Overtime Work Pay, Arts. 87-90; Rule I, Secs. 8-11
ART. 87. Overtime work. - Work may be performed beyond eight (8) hours a day provided that the employee is paid for the
overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work
performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first
eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.
ART. 88. Undertime not offset by overtime. - Undertime work on any particular day shall not be offset by overtime work on any
other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from
paying the additional compensation required in this Chapter.
ART. 89. Emergency overtime work. - Any employee may be required by the employer to perform overtime work in any of the
following cases:chan robles virtual law library
(a) When the country is at war or when any other national or local emergency has been declared by the National Assembly or the
Chief Executive;
(b) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or
impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or
calamity;
(c) When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage
to the employer or some other cause of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods; and
(e) Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction
or prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall be paid the additional compensation required in this
Chapter.
ART. 90. Computation of additional compensation. - For purposes of computing overtime and other additional remuneration as
required by this Chapter, the "regular wage" of an employee shall include the cash wage only, without deduction on account of
facilities provided by the employer.
RULE I
SECTION 8. Overtime pay. Any employee covered by this Rule who is permitted or required to work beyond eight (8) hours on
ordinary working days shall be paid an additional compensation for the overtime work in the amount equivalent to his regular wage
plus at least twenty-five percent (25%) thereof.
SECTION 9. Premium and overtime pay for holiday and rest day work. (a) Except employees referred to under Section 2 of this
Rule, an employee who is permitted or suffered to work on special holidays or on his designated rest days not falling on regular
holidays, shall be paid with an additional compensation as premium pay of not less than thirty percent (30%) of his regular wage.
For work performed in excess of eight (8) hours on special holidays and rest days not falling on regular holidays, an employee shall
be paid an additional compensation for the overtime work equivalent to his rate for the first eight hours on a special holiday or rest
day plus at least thirty percent (30%) thereof.
(b) Employees of public utility enterprises as well as those employed in non-profit institutions and organizations shall be entitled to
the premium and overtime pay provided herein, unless they are specifically excluded from the coverage of this Rule as provided in
Section 2 hereof.
(c) The payment of additional compensation for work performed on regular holidays shall be governed by Rule IV, Book Three, of
these Rules.
SECTION 10. Compulsory overtime work. In any of the following cases, an employer may require any of his employees to work
beyond eight (8) hours a day, provided that the employee required to render overtime work is paid the additional compensation
required by these regulations:
(a) When the country is at war or when any other national or local emergency has been declared by Congress or the Chief
Executive;
(b) When overtime work is necessary to prevent loss of life or property, or in case of imminent danger to public safety due to actual
or impending emergency in the locality caused by serious accident, fire, floods, typhoons, earthquake, epidemic or other disaster or
calamities;
(c) When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage
to the employer or some other causes of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods;
(e) When the completion or continuation of work started before the 8th hour is necessary to prevent serious obstruction or
prejudice to the business or operations of the employer; or
(f) When overtime work is necessary to avail of favorable weather or environmental conditions where performance or quality of
work is dependent thereon.
In cases not falling within any of these enumerated in this Section, no employee may be made to work beyond eight hours a day
against his will.
1) Overtime in Ordinary Working Day, Art. 87; Rule I, Sec. 8
2) Emergency or Compulsory Overtime Work, Art. 89
3) Undertime Work/Leave, Art. 88
4) Additional Compensation, Art. 87

5) No Computation Formula Basic Contract
Manila Terminal Co., Inc. v. CIR, supra
6) Proof of Work/Employer Obligation
Social Security System v. Court of Appeals, 348 SCRA 1 (2000)
g. Nightwork, Art. 86; Rule II, Secs. 1-6
ART. 86. Night shift differential. - Every employee shall be paid a night shift differential of not less than ten percent (10%) of his
regular wage for each hour of work performed between ten oclock in the evening and six oclock in the morning.
SECTION 1. General statement on coverage. This Rule shall apply to all employers whether operating for profit or not, including
public utilities operated by private persons.
SECTION 2. Business on Sundays/Holidays. All establishments and enterprises may operate or open for business on Sundays and
holidays provided that the employees are given the weekly rest day and the benefits as provided in this Rule.
SECTION 3. Weekly rest day. Every employer shall give his employees a rest period of not less than twenty-four (24) consecutive
hours after every six consecutive normal work days.
SECTION 4. Preference of employee. The preference of the employee as to his weekly day of rest shall be respected by the
employer if the same is based on religious grounds. The employee shall make known his preference to the employer in writing at
least seven (7) days before the desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based on religious grounds will inevitably result in serious prejudice
or obstruction to the operations of the undertaking and the employer cannot normally be expected to resort to other remedial
measures, the employer may so schedule the weekly rest day of his choice for at least two (2) days in a month.
SECTION 5. Schedule of rest day. (a) Where the weekly rest is given to all employees simultaneously, the employer shall make
known such rest period by means of a written notice posted conspicuously in the work place at least one week before it becomes
effective.
(b) Where the rest period is not granted to all employees simultaneously and collectively, the employer shall make known to the
employees their respective schedules of weekly rest through written notices posted conspicuously in the work place at least one
week before they become effective.
SECTION 6. When work on rest day authorized. An employer may require any of his employees to work on his scheduled rest
day for the duration of the following emergencies and exceptional conditions:
(a) In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, 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 installations to avoid serious loss which the employer
would otherwise suffer;
(c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to
resort to other measures;
(d) To prevent serious loss of perishable goods;
(e) Where the nature of the work is such that the employees have to work continuously for seven (7) days in a week or more, as in
the case of the crew members of a vessel to complete a voyage and in other similar cases; and
(f) When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is
dependent thereon.
No employee shall be required against his will to work on his scheduled rest day except under circumstances provided in this
Section: Provided, However, that where an employee volunteers to work on his rest day under other circumstances, he shall
express such desire in writing, subject to the provisions of Section 7 hereof regarding additional compensation.
1) Coverage/Exclusion, Rule II, Sec. 1
2) Additional Compensation, Art. 86
Shell Oil Co. of the Philippines, Ltd. v. National Labor Union, 81 Phil. 315 (1948)
2. Weekly rest Periods
Reference: Arts. 91-93; Omnibus Rules, Book III, Rule III, Secs. 1-9
Chapter II
WEEKLY REST PERIODS
ART. 91. Right to weekly rest day. - (a) It shall be the duty of every employer, whether operating for profit or not, to provide each
of his employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days.
(b) The employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement and
to such rules and regulations as the Secretary of Labor and Employment may provide. However, the employer shall respect the
preference of employees as to their weekly rest day when such preference is based on religious grounds.
ART. 92. When employer may require work on a rest day. - The employer may require his employees to work on any day:
disaster or calamity to prevent loss of life and property, or imminent danger to public safety;
(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer
(d) To prevent loss or damage to perishable goods;
(e) Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss
to the employer; and
(f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.
ART. 93. Compensation for rest day, Sunday or holiday work. - (a) Where an employee is made or permitted to work on his
scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. An employee
shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day.chan robles
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(b) When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be
scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on
Sundays and holidays.
(c) Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular
wage of the employee. Where such holiday work falls on the employees scheduled rest day, he shall be entitled to an additional
compensation of at least fifty per cent (50%) of his regular wage.
(d) Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium
pay than that prescribed under this Article, the employer shall pay such higher rate.
Weekly Rest Periods

SECTION 1. General statement on coverage. This Rule shall apply to all employers whether operating for profit or not, including
public utilities operated by private persons.
SECTION 3. Weekly rest day. Every employer shall give his employees a rest period of not less than twenty-four (24) consecutive
hours after every six consecutive normal work days.
SECTION 4. Preference of employee. The preference of the employee as to his weekly day of rest shall be respected by the
employer if the same is based on religious grounds. The employee shall make known his preference to the employer in writing at
least seven (7) days before the desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based on religious grounds will inevitably result in serious prejudice
or obstruction to the operations of the undertaking and the employer cannot normally be expected to resort to other remedial
measures, the employer may so schedule the weekly rest day of his choice for at least two (2) days in a month.
SECTION 5. Schedule of rest day. (a) Where the weekly rest is given to all employees simultaneously, the employer shall make
known such rest period by means of a written notice posted conspicuously in the work place at least one week before it becomes
effective.
(b) Where the rest period is not granted to all employees simultaneously and collectively, the employer shall make known to the
employees their respective schedules of weekly rest through written notices posted conspicuously in the work place at least one
week before they become effective.
SECTION 6. When work on rest day authorized. An employer may require any of his employees to work on his scheduled rest
day for the duration of the following emergencies and exceptional conditions:
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 installations to avoid serious loss which the employer
(d) To prevent serious loss of perishable goods;
(e) Where the nature of the work is such that the employees have to work continuously for seven (7) days in a week or more, as in
the case of the crew members of a vessel to complete a voyage and in other similar cases; and
(f) When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is
dependent thereon.
No employee shall be required against his will to work on his scheduled rest day except under circumstances provided in this
Section: Provided, However, that where an employee volunteers to work on his rest day under other circumstances, he shall
express such desire in writing, subject to the provisions of Section 7 hereof regarding additional compensation.
SECTION 7. Compensation on rest day/Sunday/holiday. (a) Except those employees referred to under Section 2, Rule I, Book
Three, an employee who is made or permitted to work on his scheduled rest day shall be paid with an additional compensation of at
least 30% of his regular wage. An employee shall be entitled to such additional compensation for work performed on a Sunday only
when it is his established rest day.
(b) Where the nature of the work of the employee is such that he has no regular work days and no regular rest days can be
scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and
holidays.
(c) Work performed on any special holiday shall be paid with an additional compensation of at least 30% of the regular wage of the
employees. Where such holiday work falls on the employee's scheduled rest day, he shall be entitled to additional compensation of
at least 50% of his regular wage.
(d) The payment of additional compensation for work performed on regular holiday shall be governed by Rule IV, Book Three, of
these regulations.
(e) Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium
pay than that prescribed under this Section, the employer shall pay such higher rate.
SECTION 8. Paid-off days. Nothing in this Rule shall justify an employer in reducing the compensation of his employees for the
unworked Sundays, holidays, or other rest days which are considered paid-off days or holidays by agreement or practice subsisting
upon the effectivity of the Code.
SECTION 9. Relation to agreements. Nothing herein shall prevent the employer and his employees or their representatives in
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.
a. Coverage, Art. 82, 91; Rule III, Sec. 1
ART. 82. Coverage. - The provisions of this Title shall apply to employees in all establishments and undertakings whether for profit
or not, but not to government employees, managerial employees, field personnel, members of the family of the employer who are
dependent on him for support, domestic helpers, persons in the personal service of another, and workers who are paid by results as
determined by the Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to those whose primary duty consists of the management of the establishment in
which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff.
"Field personnel" shall refer to non-agricultural employees who regularly perform their duties away from the principal place of
business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable
certainty.
b. Determination; compulsory Work; Compensation, Arts. 91, 92
Manila Electric Co. v. Public Utilities Employees Assn, 79 Phil. 409

c. Premium Pay, Art. 93 9a) (b) (c)
d. CBA on Higher Premium Pay, Art. 93 (d)
3. Holidays
Reference: art. 94; Executive Order 203 (1987); Omnibus Rules, Book III, Rule IV
Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES
AND SERVICE CHARGES
ART. 94. Right to holiday pay. - (a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and
service establishments regularly employing less than ten (10) workers;
(b) The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to
twice his regular rate; and
(c) As used in this Article, "holiday" includes: New Years Day, Maundy Thursday, Good Friday, the ninth of April, the first of May,
the twelfth of June, the fourth of July, the thirtieth of November, the twenty-fifth and thirtieth of December and the day designated
by law for holding a general election.
EXECUTIVE ORDER NO. 203 June 30, 1987
PROVIDING A LIST OF REGULAR HOLIDAYS AND SPECIAL DAYS TO BE OBSERVED THROUGHOUT THE
PHILIPPINES AND FOR OTHER PURPOSES
WHEREAS, a Cabinet Assistance Secretariat Committee was constituted to review all existing public holidays;
WHEREAS, there are too many holidays being observed which has caused confusion among the public.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:
Sec. 1. Unless otherwise modified by law, order or proclamation, the following regular holidays and special days shall
be observed in this country:
A. Regular Holidays
New Year's Day January
Maundy Thursday Movable date
Good Friday Movable date
Araw ng Kagitingan April 9
(Bataan and Corregidor
Day)
Labor Day May 1
Independence Day June 12
National Heroes Day Last Sunday of
August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
B. Nationwide Special Days
All Saints Day November 1
Last Day of the Year December 31
Sec. 2. Henceforth, the terms "legal or regular holiday" and "special holiday", as used in laws, orders, rules and
regulations or other issuances shall now be referred to as "regular holiday" and "special day", respectively.
Sec. 3. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order are
hereby repealed or modified accordingly.
Sec. 4. This Executive Order shall take effect immediately.
Done in the City of Manila, this 30th day of June, in the year of Our Lord, nineteen hundred and eighty-seven.
RULE IV
Holidays with Pay
SECTION 1. Coverage. This rule shall apply to all employees except:
(a) Those of the government and any of the political subdivision, including government-owned and controlled corporation;
(b) Those of retail and service establishments regularly employing less than ten (10) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of the Code;
(e) Field personnel and other employees whose time and performance is unsupervised by the employer including those who are
engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective
of the time consumed in the performance thereof.
SECTION 2. Status of employees paid by the month. Employees who are uniformly paid by the month, irrespective of the number
of working days therein, with a salary of not less than the statutory or established minimum wage shall be paid for all days in the
month whether worked or not.
For this purpose, the monthly minimum wage shall not be less than the statutory minimum wage multiplied by 365 days divided by
twelve.
SECTION 3. Holiday Pay. Every employer shall pay his employees their regular daily wage for any worked regular holidays.
As used in the rule, the term 'regular holiday' shall exclusively refer to: New Year's Day, Maundy Thursday, Good Friday, the ninth
of April, the first of May, the twelfth of June, the last Sunday of August, the thirtieth of November, the twenty-fifth and thirtieth of
December. Nationwide special days shall include the first of November and the last day of December.
As used in this Rule legal or regular holiday and special holiday shall now be referred to as 'regular holiday' and 'special day',
respectively.
SECTION 4. Compensation for holiday work. Any employee who is permitted or suffered to work on any regular holiday, not
exceeding eight (8) hours, shall be paid at least two hundred percent (200%) of his regular daily wage. If the holiday work falls on
the scheduled rest day of the employee, he shall be entitled to an additional premium pay of at least 30% of his regular holiday rate
of 200% based on his regular wage rate.
SECTION 5. Overtime pay for holiday work. For work performed in excess of eight hours on a regular holiday, an employee shall
be paid an additional compensation for the overtime work equivalent to his rate for the first eight hours on such holiday work plus
at least 30% thereof.
Where the regular holiday work exceeding eight hours falls on the scheduled rest day of the employee, he shall be paid an
additional compensation for the overtime work equivalent to his regular holiday-rest day for the first 8 hours plus 30% thereof. The
regular holiday rest day rate of an employee shall consist of 200% of his regular daily wage rate plus 30% thereof.
SECTION 6. Absences. (a) All covered employees shall be entitled to the benefit provided herein when they are on leave of
absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not
be paid the required holiday pay if he has not worked on such regular holiday.
(b) Employees shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of
employee's compensation or social security payment, whichever is higher, if they are not reporting for work while on such benefits.
(c) Where the day immediately preceding the holiday is a non-working day in the establishment or the scheduled rest day of the
employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay if he
worked on the day immediately preceding the non-working day or rest day.
SECTION 7. Temporary or periodic shutdown and temporary cessation of work. (a) In cases of temporary or periodic shutdown
and temporary cessation of work of an establishment, as when a yearly inventory or when the repair or cleaning of machineries and
equipment is undertaken, the regular holidays falling within the period shall be compensated in accordance with this Rule.
(b) The regular holiday during the cessation of operation of an enterprise due to business reverses as authorized by the Secretary
of Labor and Employment may not be paid by the employer.
SECTION 8. Holiday pay of certain employees. (a) Private school teachers, including faculty members of colleges and universities,
may not be paid for the regular holidays during semestral vacations. They shall, however, be paid for the regular holidays during
Christmas vacation;
(b) Where a covered employee, is paid by results or output, such as payment on piece work, his holiday pay shall not be less than
his average daily earnings for the last seven (7) actual working days preceding the regular holiday; Provided, However, that in no
case shall the holiday pay be less than the applicable statutory minimum wage rate.
(c) Seasonal workers may not be paid the required holiday pay during off-season when they are not at work.
(d) Workers who have no regular working days shall be entitled to the benefits provided in this Rule.
SECTION 9. Regular holiday falling on rest days or Sundays. (a) A regular holiday falling on the employee's rest day shall be
compensated accordingly.
(b) Where a regular holiday falls on a Sunday, the following day shall be considered a special holiday for purposes of the Labor
Code, unless said day is also a regular holiday.
SECTION 10. Successive regular holidays. Where there are two (2) successive regular holidays, like Holy Thursday and Good
Friday, an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday.
SECTION 11. Relation to agreements. Nothing in this Rule shall justify an employer in withdrawing or reducing any benefits,
supplements or payments for unworked holidays as provided in existing individual or collective agreement or employer practice or
policy.
a. Definition
1) Retail Establishments, Rule Impl. RA 6727, par. F
f) Retail Establishment is one principally engaged in the sale of goods to end-users for personal or household use;
2) Service Establishment, Rule Impl. RA 6727, par. g

g) 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;
b. Coverage/Exclusions, Art. 94 (a)
ART. 94. Right to holiday pay. - (a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and
service establishments regularly employing less than ten (10) workers;
Mantrade/FMMC Division Employees and Workers Union v. Bacungan, 144 SCRA 510 (1986)
Cirineo Bowling Plaza, Inc. v. Gerry Sensing, et al., 448 SCRA 175 (2005)
c. Holiday Pay, Art. 94 (b)
(b) The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to
twice his regular rate; and
1) Faculty in Private School, Rule IV, Sec. 8 (a)
SECTION 8. Holiday pay of certain employees. (a) Private school teachers, including faculty members of colleges and universities,
may not be paid for the regular holidays during semestral vacations. They shall, however, be paid for the regular holidays during
Christmas vacation;
6) Divisor as Factor
Trans-Asia Phil. Employees Association v. NLRC, 320 SCRA 347 (1999)
7) Sunday, Art. 93 9a), 2nd Sentence; Rule III, Sec. 2
ART. 93. Compensation for rest day, Sunday or holiday work. - (a) Where an employee is made or permitted to work on his
scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. An employee
shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day.
Wellington Investment Inc. v. Trajano, 245 SCRA 561 (1995)

8) Muslim Holiday, Art. 169-172; PD 1083 (Feb. 1977)
BOOK FIVE
MISCELLANEOUS AND TRANSITORY PROVISIONS
TITLE I
MUSLIM HOLIDAYS
Article 169. Official Muslim holidays. The following are hereby recognized as legal Muslim holidays:
(a) 'Amun Jadid (New Year), which falls on the first day of the first lunar month of Muharram;
(b) Maulid-un-Nabi (Birthday of the Prophet Muhammad), which falls on the twelfth day of the third lunar month of Rabi-
ul-Awwal;
(c) Lailatul Isra Wal Mi'raj (Nocturnal Journey and Ascension of the Prophet Muhammad), which falls on the twenty-
seventh day of the seventh lunar month of Rajab;
(d) 'Id-ul-Fitr (Hari Raya Pausa), which falls on the first day of the tenth lunar month of Shawwal, commemorating the
end of the fasting season; and
(e) 'Id-ul-Adha (Hari Raja Haji), which falls on the tenth day of the twelfth lunar month of Dhu 1-Hijja.
Article 170. Provinces and cities where officially observed.
(1) Muslim holidays shall be officially observed in the Provinces of Basilan, Lanao del Norte, Lanao del Sur, Maguindanao,
North Cotabato, Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga del Norte and Zamboanga del Sur, and in the Cities of
Cotabato, Iligan, Marawi, Pagadian, and Zamboanga and in such other Muslim provinces and cities as may hereafter be
created.
(2) Upon proclamation by the President of the Philippines, Muslim holidays may also be officially observed in other
provinces and cities.
Article 171. Dates of observance. The dates of Muslim holidays shall be determined by the Office of the President of the
Philippines in accordance with the Muslim Lunar Calendar (Hijra).
Article 172. Observance of Muslim employees.
(1) All Muslim government officials and employees in places other than those enumerated under Article 170 shall also be
excused from reporting to office in order that they may be able to observe Muslim holidays.
(2) The President of the Philippines may, by proclamation, require private offices, agencies or establishments to excuse
their Muslim employees from reporting for work during a Muslim holiday without reduction in their usual compensation.
San Miguel Corp. v. Court of Appeals, 375 SCRA 311 (2002)
d. Absences, Rule lV, Secs. 6 (a), 10
SECTION 6. Absences. (a) All covered employees shall be entitled to the benefit provided herein when they are on leave of
absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not
be paid the required holiday pay if he has not worked on such regular holiday.
SECTION 10. Successive regular holidays. Where there are two (2) successive regular holidays, like Holy Thursday and Good
Friday, an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday.
e. Non-Working/Schedule of Rest Day, Rule IV, Sec. 6 (c)
(c) Where the day immediately preceding the holiday is a non-working day in the establishment or the scheduled rest day of the
employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay if he
worked on the day immediately preceding the non-working day or rest day.
4. Service Incentive Leave
Reference: Art. 95; Omnibus Rules, Book III, Rule V
ART. 95. Right to service incentive leave. - (a) Every employee who has rendered at least one year of service shall be entitled to a
yearly service incentive leave of five days with pay.
(b) This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with
pay of at least five days and those employed in establishments regularly employing less than ten employees or in establishments
exempted from granting this benefit by the Secretary of Labor and Employment after considering the viability or financial condition
of such establishment.
(c) The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative
action.
a. Coverage, Art. 95 (a) (b)
Makati Haberdashery Inc. N. NLRC, 179 SCRA 449 (1989)
Labor Congress v. NLRC, supra
b. Computation and Liability
Sentinel Security Agency, Inc. v. NLRC, 295 SCRA 123 1998)
Auto Bus Transport Systems, Inc. v. Bautista, supra

5. Paternity Leave, Paternity Leave of 1996 (RA 8187), Secs. 1-6; Impl. Rules
AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULL PAY TO ALL MARRIED MALE
EMPLOYEES IN THE PRIVATE AND PUBLIC SECTORS FOR THE FIRST FOUR (4) DELIVERIES OF THE
LEGITIMATE SPOUSE WITH WHOM HE IS COHABITING AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Paternity Leave Act of 1996".
SECTION 2. Notwithstanding any law, rules and regulations to the contrary, every married male employee in
the private and public sectors shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4)
deliveries of the legitimate spouse with whom he is cohabiting. The male employee applying for paternity leave shall
notify his employer of the pregnancy of his legitimate spouse and the expected date of such delivery.
For purposes, of this Act, delivery shall include childbirth or any miscarriage.
SECTION 3. Definition of Term. - For purposes of this Act, Paternity Leave refers to the benefits granted to a
married male employee allowing him not to report for work for seven (7)
days but continues to earn the compensation therefor, on the condition that his spouse has delivered a child or
suffered a miscarriage for purposes of enabling him to effectively lend
support to his wife in her period of recovery and/or in the nursing of the newly-born child.
SECTION 4. The Secretary of Labor and Employment, the Chairman of the Civil Service Commission and the
Secretary of Health shall, within thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary for the proper implementation of the provisions hereof.
SECTION 5. Any person, corporation, trust, firm, partnership, association or entity found violating this Act or the
rules and regulations promulgated thereunder shall be punished by a fine not exceeding Twenty-five thousand
pesos (P25,000) or imprisonment of not less than thirty (30)days nor more than six (6) months.
If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the
penalty of imprisonment shall be imposed on the entity's responsible officers, including, but not limited to, the
president, vice-president, chief executive officer, general manager, managing director or partner directly responsible
therefor.
SECTION 6. Nondiminution Clause. - Nothing in this Act shall be construed to reduce any existing benefits of any
form granted under existing laws, decrees, executive orders, or any
contract agreement or policy between employer and employee.
SECTION 7. Repealing Clause. - All laws, ordinances, rules, regulations, issuances, or parts thereof which are
inconsistent with this Act are hereby repealed or modified accordingly.
SECTION 8. Effectivity. - This Act shall take effect (15) days from its publication in the Official Gazette or in at
least two (2) newspapers of national circulation.
Approved:
(SGD.) NEPTALI A. GONZALES

President of the Senate
(SGD.) JOSE DE VENECIA, JR.

Speaker of the House of Representatives
This Act, which is a consolidation of Senate Bill No. 1032 and House Bill No. 7134 was finally passed by the
Senate and the House of Representatives on June 8, 1996.
1. Parental Leave, Solo Parents Welfare Act of 2000 (RA 8972); Impl. Rules
AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES TO SOLO PARENTS AND THEIR CHILDREN,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines Congress assembled:
Section 1. Title. - This Act shall be known as the "Solo Parents' Welfare Act of 2000."
Section 2. Declaration of Policy. - It is the policy of the State to promote the family as the foundation of the nation,
strengthen its solidarity and ensure its total development. Towards this end, it shall develop a comprehensive
program of services for solo parents and their children to be carried out by the Department of Social Welfare and
Development (DSWD), the Department of Health (DOH), the Department of Education, Culture and Sports (DECS),
the Department of the Interior and Local Government (DILG), the Commission on Higher Education (CHED), the
Technical Education and Skills Development Authority (TESDA), the National Housing Authority (NHA), the
Department of Labor and Employment (DOLE) and other related government and nongovernment agencies.
Section 3. Definition of Terms. - Whenever used in this Act, the following terms shall mean as follows:
(a) "Solo parent" - any individual who falls under any of the following categories:
(1) A woman who gives birth as a result of rape and other crimes against chastity even without a
final conviction of the offender: Provided, That the mother keeps and raises the child;
(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;
(3) Parent left solo or alone with the responsibility of parenthood while the spouse is detained or is
serving sentence for a criminal conviction for at least one (1) year;
(4) Parent left solo or alone with the responsibility of parenthood due to physical and/or mental
incapacity of spouse as certified by a public medical practitioner;
(5) Parent left solo or alone with the responsibility of parenthood due to legal separation or de facto
separation from spouse for at least one (1) year, as long as he/she is entrusted with the custody of
the children;
(6) Parent left solo or alone with the responsibility of parenthood due to declaration of nullity or
annulment of marriage as decreed by a court or by a church as long as he/she is entrusted with the
custody of the children;
(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of spouse for
at least one (1) year;
(8) Unmarried mother/father who has preferred to keep and rear her/his child/children instead of
having others care for them or give them up to a welfare institution;
(9) Any other person who solely provides parental care and support to a child or children;
(10) Any family member who assumes the responsibility of head of family as a result of the death,
abandonment, disappearance or prolonged absence of the parents or solo parent.
A change in the status or circumstance of the parent claiming benefits under this Act, such that
he/she is no longer left alone with the responsibility of parenthood, shall terminate his/her eligibility
for these benefits.
(b) "Children" - refer to those living with and dependent upon the solo parent for support who are unmarried,
unemployed and not more than eighteen (18) years of age, or even over eighteen (18) years but are
incapable of self-support because of mental and/or physical defect/disability.
(c) "Parental responsibility" - with respect to their minor children shall refer to the rights and duties of the
parents as defined in Article 220 of Executive Order No. 209, as amended, otherwise known as the "Family
Code of the Philippines."
(d) "Parental leave" - shall mean leave benefits granted to a solo parent to enable him/her to perform
parental duties and responsibilities where physical presence is required.
(e) "Flexible work schedule" - is the right granted to a solo parent employee to vary his/her arrival and
departure time without affecting the core work hours as defined by the employer.
Section 4. Criteria for Support. - Any solo parent whose income in the place of domicile falls below the poverty
threshold as set by the National Economic and Development Authority (NEDA) and subject to the assessment of the
DSWD worker in the area shall be eligible for assistance: Provided, however, That any solo parent whose income is
above the poverty threshold shall enjoy the benefits mentioned in Sections 6, 7 and 8 of this Act.
Section 5. Comprehensive Package of Social Development and Welfare Services. - A comprehensive package of
social development and welfare services for solo parents and their families will be developed by the DSWD, DOH,
DECS, CHED, TESDA, DOLE, NHA and DILG, in coordination with local government units and a nongovernmental
organization with proven track record in providing services for solo parents.
The DSWD shall coordinate with concerned agencies the implementation of the comprehensive package of social
development and welfare services for solo parents and their families. The package will initially include:
(a) Livelihood development services which include trainings on livelihood skills, basic business
management, value orientation and the provision of seed capital or job placement.
(b) Counseling services which include individual, peer group or family counseling. This will focus on the
resolution of personal relationship and role conflicts.
(c) Parent effectiveness services which include the provision and expansion of knowledge and skills of the
solo parent on early childhood development, behavior management, health care, rights and duties of parents
and children.
(d) Critical incidence stress debriefing which includes preventive stress management strategy designed to
assist solo parents in coping with crisis situations and cases of abuse.
(e) Special projects for individuals in need of protection which include temporary shelter, counseling, legal
assistance, medical care, self-concept or ego-building, crisis management and spiritual enrichment.
Section 6. Flexible Work Schedule. - The employer shall provide for a flexible working schedule for solo parents:
Provided, That the same shall not affect individual and company productivity: Provided, further, That any employer
may request exemption from the above requirements from the DOLE on certain meritorious grounds.
Section 7. Work Discrimination. - No employer shall discriminate against any solo parent employee with respect to
terms and conditions of employment on account of his/her status.
Section 8. Parental Leave. - In addition to leave privileges under existing laws, parental leave of not more than seven
(7) working days every year shall be granted to any solo parent employee who has rendered service of at least one
(1) year.
Section 9. Educational Benefits. - The DECS, CHED and TESDA shall provide the following benefits and privileges:
(1) Scholarship programs for qualified solo parents and their children in institutions of basic, tertiary and
technical/skills education; and
(2) Nonformal education programs appropriate for solo parents and their children.
The DECS, CHED and TESDA shall promulgate rules and regulations for the proper implementation of this program.
Section 10. Housing Benefits. - Solo parents shall be given allocation in housing projects and shall be provided with
liberal terms of payment on said government low-cost housing projects in accordance with housing law provisions
prioritizing applicants below the poverty line as declared by the NEDA.
Section 11. Medical Assistance. - The DOH shall develop a comprehensive health care program for solo parents and
their children. The program shall be implemented by the DOH through their retained hospitals and medical centers
and the local government units (LGUs) through their provincial/district/city/municipal hospitals and rural health units
(RHUs).
Section 12. Additional Powers and Functions of the DSWD. The DSWD shall perform the following additional
powers and functions relative to the welfare of solo parents and their families:
(a) Conduct research necessary to: (1) develop a new body of knowledge on solo parents; (2) define
executive and legislative measures needed to promote and protect the interest of solo parents and their
children; and (3) assess the effectiveness of programs designed for disadvantaged solo parents and their
children;
(b) Coordinate the activities of various governmental and nongovernmental organizations engaged in
promoting and protecting the interests of solo parents and their children; and
(c) Monitor the implementation of the provisions of this Act and suggest mechanisms by which such
provisions are effectively implemented.
Section 13. Implementing Rules and Regulations. - An interagency committee headed by the DSWD, in coordination
with the DOH, DECS, CHED, TESDA, DOLE, NHA, and DILG is hereby established which shall formulate, within
ninety (90) days upon the effectivity of this Act, the implementing rules and regulations in consultation with the local
government units, nongovernment organizations and people's organizations.
Section 14. Appropriations. - The amount necessary to carry out the provisions of this Act shall be included in the
budget of concerned government agencies in the General Appropriations Act of the year following its enactment into
law and thereafter.1awphil.net
Section 15. Repealing Clause. - All laws, decrees, executive orders, administrative orders or parts thereof
inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.
Section 16. Separability Clause. - If any provision of this Act is held invalid or unconstitutional, other provisions not
affected thereby shall continue to be in full force and effect.
Section 17. Effectivity Clause. - This Act shall take effect fifteen (15) days following its complete publication in the
Official Gazette or in at least two (2) newspaper of general circulation.
Approved.
(Sgd.)
JOSEPH EJERCITO ESTRADA

President of the Philippines

National Economic Development Authority
SOCIAL DEVELOPMENT COMMITTEE (SDC)
Resolution No.2 (Series 2002)
APPROVING THE IMPLEMENTING RULES AND REGULATIONS (IRR)
OF REPUBLIC ACT 8972 PROVIDING FOR BENEFITS AND PRIVILEGES
TO SOLO PARENTS AND THEIR CHILDREN
WHEREAS, it is the policy of the State to promote the family as the foundation of the nation, strengthen its solidarity
and ensure its total development;
WHEREAS, in support of this State policy, R.A. 8972, otherwise known as the Solo Parents Welfare Act of 2000, has
been enacted to develop a comprehensive program for social development and welfare services for solo parents and
their children;
WHEREAS, to ensure the implementation of the Act, the Department of Social Welfare and Development was tasked
to coordinate with concerned agencies and perform additional functions relative to the welfare and development of
solo parents and their children;
WHEREAS, an interagency committee headed by DSWD and participated in by the Departments of Health (DOH),
Education (DepEd), Labor and Employment (DOLE), and Interior and Local Government (DILG), Commission on
Higher Education (CHED), Technical Education and Skills Development Authority (TESDA), and National Housing
Authority (NHA) drafted the IRR in consultation with the local government units, non-government organizations and
peoples organizations;
WHEREAS, the draft IRR was deliberated upon and approved by the members of the SDC-Cabinet level subject to
th
the incorporation of certain comments during its meeting on the 10 day of April 2002;
NOW, THEREFORE, BE IT RESOLVED, AS IT IS HEREBY RESOLVED, by the Chairman and members of the
NEDA Boards Social Development Committee-Cabinet level, to approve the IRR of R.A. 8972.
RESOLVED FURTHER, that this IRR shall be published at least in one newspaper of general circulation.
Adopted, this 10 day of April in the year of our Lord, Two Thousand and Two, Pasig City.
RULES AND REGULATIONS IN THE IMPLEMENTATION OF REPUBLIC ACT NO. 8972, AN ACT PROVIDING
FOR BENEFITS AND PRIVILEGES TO SOLO PARENTS AND THEIR CHILDREN, APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES
ARTICLE I
TITLE, PURPOSE AND CONSTRUCTION
Section 1. Title These rules shall be known and cited as the Rules and Regulations Implementing Republic Act No.
8972, more commonly known as the Solo Parents Welfare Act of 2000.
Section 2. Purpose These Rules are promulgated to prescribe the procedure and guidelines for the implementation
of the Solo Parents Welfare Act of 2000 in order to facilitate the compliance therewith and to achieve the objectives
thereof.
Section 3. Construction These Rules shall be liberally construed in favor of the solo parent and applied in
accordance with and in furtherance of the policy and objectives of the law. In case of conflict and/or ambiguity, which
may arise in the implementation of these Rules, the concerned agencies shall issue the necessary clarification.
ARTICLE II
DECLARATION OF POLICIES AND OBJECTIVES
Section 4. Declaration of Policy It is the policy of the State to promote the family as the foundation of the nation,
strengthen its solidarity and ensure its total development. Towards this end, it shall develop a comprehensive
program of services for solo parents and their children to be carried out by the Department of Social Welfare and
Development (DSWD), the Department of Health (DOH), the Department of Education (DepEd), the Department of
the Interior and Local Government (DILG), the Commission on Higher Education (CHED), the Technical Education
and Skills Development Authority (TESDA), the National Housing Authority (NHA), the Department of Labor and
Employment (DOLE) and other related government agencies and non-government organizations or civil society.
Section 5. Objective These Rules and Regulations seek to clarify the scope and application of the Act in order that
the proper parties may avail of its benefits.
ARTICLE III
DEFINITION OF TERMS
Section 6. Definition of terms As used in these Rules, the following terms shall mean as follows:
(a) Act the Solo Parents Welfare Act of 2000;

(b) Solo Parent any individual who falls under any of the following categories:
(1) A woman who gives birth as a result of rape or crimes against chastity, even without a final
conviction of the offender: Provided, that the mother keeps and raises the child;
(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;
(3) Parent left solo or alone with the responsibility of parenthood while the spouse is detained, or is
serving sentence for a criminal conviction for at least one (1) year;
The law applies to the spouses of prisoners, whether or not a final judgement has been rendered, provided they are
in detention for a minimum period of one (1) year;
(4) Parent left solo or alone with the responsibility of parenthood due to physical and/or mental
incapacity of spouse as certified by a public medical practitioner;
(5) Parent left solo or alone with the responsibility of parenthood due to legal separation or de facto
separation from spouse for at least one (1) year: Provided, that he or she is entrusted with the custody of the
children;
(6) Parent left solo or alone with the responsibility of parenthood due to declaration of nullity or
annulment of marrriage as decreed by a court or by a church: Provided, that he/she is entrusted with the
custody of the children;
(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of spouse for
at least one (1) year;
(8) Unmarried mother/father who has preferred to keep and rear his/her child/children instead of
having others care for them or give them up to a welfare institution;
(9) Any other person who solely provides parental care and support to a child or children provided
he/she is duly licensed as a foster parent by the DSWD or duly appointed legal guardian by the court;
(10) Any family member who assumes the responsibility of head of family as a result of the death,
abandonment, disappearance, or absence lasts for at least one (1) year.
A change in the status or circumstance of the parent claiming benefits under the Act, such that he/she is no longer
left alone with the responsibility of parenthood, shall terminate his/her eligibility for these benefits;
(c) Family shall refer to the Solo Parent and his/her child/children; Provided, however, that the family
member referred to in Section 3, paragraph (a)(10) of these Rules shall include any relative by consanguinity up to
the fourth civil degree. These persons shall include, but are not limited to, any uncle, aunt, grandfather, grandmother,
niece, nephew, or cousin;
(d) Social Worker a person who is a graduate of Social Work and duly registered pursuant to Republic
Act 4373 and employed with the Social Welfare and Development Office of the local government unit where the solo
parent resides;
(e) Children refer to those living with and dependent upon the solo parent for support who are unmarried,
unemployed and below eighteen (18) years of age, or even eighteen (18) years and above but are incapable of
self-support and/or mentally and/or physically challenged;
(f) Parental responsibility with respect to their minor children shall refer to the rights and duties of the
parents as defined in Article 220 of Executive Order No. 209, as amended, otherwise known as the Family Code of
the Philippines, and hereunder enumerated as follows:
(1) To keep them in their company, to support, educate and instruct them by right precept and good
example and to provide for their upbringing in keeping with their means;
(2) To give them love and affection, advice and counsel, companionship and understanding;
(3) To provide them with moral and spiritual guidance, inculcate in them honesty, integrity, self-
discipline, self-reliance, industry and thrift, stimulate their interest in civic affairs, and inspire in them
compliance with the duties of citizenship;
(4) To furnish them with good and wholesome educational materials, supervise their activities,
recreation and association with others, protect them from bad company, and prevent them from acquiring
habits detrimental to their health, studies and morals;
(5) To represent them in all matters affecting their interest;
(6) To demand from them respect and obedience;
(7) To Impose discipline on them as may be required under the circumstances; and
(8) To perform such other duties as are imposed by law and upon parents and guardians;
(g) Parental leave shall mean leave benefits granted to a solo parent to enable him/her to perform
parental duties and responsibilities where physical presence is required;
(h) Flexible work schedule is the right granted to a solo parent employee to vary his/her arrival and
departure time without affecting the core work hours as defined by the employer;
(i) DSWD shall refer to the Department of Social Welfare and Development;
(j) DOH shall refer to the Department of Health;

(k) DOLE shall refer to the Department of Labor and Employment;
(l) DepEd shall refer to the Department of Education;
(m) DILG shall refer to the Department of the Interior and Local Government;
(n) CHED shall refer to the Commission on Higher Education;
(o) NHA shall refer to the National Housing Authority;
(p) TESDA shall refer to the Technical Education and Skills Development Authority;
(q) NEDA shall refer to the National Economic and Development Authority;
(r) NSCB shall refer to the National Statistical Coordination Board, an attached agency of NEDA and
responsible for determining the regional poverty threshold.
ARTICLE IV
CRITERIA FOR SUPPORT
Section 7. Criteria for Support Any solo parent whose income in the place of domicile falls equal to or below the
poverty threshold as set by the NSCB and subject to the assessment of the duly appointed or designated social
worker in the area shall be eligible for assistance: Provided, however, That any solo parent whose income is above
the poverty threshold shall enjoy the benefits mentioned in Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of domicile shall refer to the residence mentioned in Section 8(a)
of these Rules.
Section 8. Qualifications of Solo Parent A solo parent seeking benefits other than those provided for under Sections
16, 17, 18, 19, 20, 21 and 23 of these Rules shall be qualified on the basis of the following:
(a) A resident of the area where the assistance is sought, as certified by the barangay captain; Provided,
that if the solo parent is a transferee from another barangay, he/she is required to secure a
clearance from his/her previous barangay, indicating whether or not he/she has availed of any
benefits for solo parents, and the nature of such benefits.
(b) With an income level equal to or below the poverty threshold as set forth by NSCB and assessed by a
social worker as provided for under Section 7 of these Rules.
Section 9. Assessment an applicant who manifests the need for assistance under the Act is subject to assessment
by a social worker at the city/municipal Social Welfare and Development Office. The assessment shall cover, but not
be limited to, the following:
(a) Determination of the applicants category as enumerated in Article III Section 6 paragraph (b) of these
Rules;
(b) Evaluation of the needs of the applicant and his/her children as basis for provision of the appropriate
service and intervention;
(c) Identification of the level of readiness of the applicant to receive a particular service/assistance, which
shall serve as basis for the conduct of social preparation activities prior to the provision of such
service/assistance; and
(d) Identification of existing and potentially available resources that may support the applicant and his/her
children.
Section 10. Procedure in Accessing Services for Solo Parents - A person who needs assistance under this Act shall
comply with the following process;
(a) Visit the Social Welfare and Development Office of the city or municipality of her/his residence to
manifest her/his need for assistance;
(b) Fill up application form for the assistance, indicating but not limited to, the following information:
1. Name
2. Age
3. Address/Area of Domicile
4. Income per month
5. Source/s of income
6. Number of children
7. Circumstances of being solo;
(c) Undergo the necessary assessment process as stipulated in Section 9 Article IV of these Rules;
(d) A Social Case Study Report shall be prepared by the social worker based on the information/data
provided for by the applicant, as well as his/her assessment of said applicant, indicating therein the
appropriate services needed.
(e) The Social Case Study Report, together with a referral letter prepared by the social worker, shall be
forwarded by the Office of the City/Municipal Social Welfare and Development Office to the agency
concerned providing the appropriate assistance/service.
(f) The social worker shall inform the solo parent of the status of his/her application within thirty (30) working
days from the filing of such and shall require him/her to visit the agency/institution providing the
assistance. In case the applicant is not qualified for services under this Act, he/she will be referred to
the appropriate agency/program for assistance.
(g) Upon the favorable evaluation of the social worker, a Solo Parent Identification Card shall be issued on
the solo parent within 30 days upon application duly signed by the city/municipal Social Welfare Officer
and the city/municipal mayor. The Solo Parent Identification Card is necessary for the availment of
benefits under the Act and these Rules. Such Identification Card shall be valid for only one (1) year, but
may be renewed subject to a new assessment and evaluation;
(h) For the publics information and guidance, a list of persons who applied and those who were able to avail
of the benefits under this Act shall be made available by the concerned city/municipal social welfare
and development office which processed their applications.
Section 11. Procedure for Application of Benefits An applicant who was determined by a social worker to be eligible
for assistance may apply for benefits under this Act through the following;
(a) The solo parent may go to the agency providing such benefit bringing with her/him the Identification Card
issued by the Municipal/City Social Welfare and Development Office;
(b) Undergo the necessary qualifying activities required by the agency as prescribed by these Rules; and
(c) Comply with the requirements set forth by the agency providing the service for the duration of the
assistance (e.g. schooling, housing) subject to existing rules of the agencies concerned.
Section 12. Procedure for Termination of Benefits
(a) A solo parent shall manifest to the Social Welfare Office his/her intention to withdraw the availment of the
benefits under this Act.
(b) If the solo parent does not voluntarily manifest his/her intention to terminate the provision of benefits and
services before the lapse of one year from the issuance of the Solo Parent I.D., the Social Worker,
based on a report by the employer or any interested person shall conduct the necessary
assessment/evaluation to ascertain if grounds for termination and withdrawal of benefits exist. The
Identification Card shall cease to be effective upon the lapse of one year from issuance, unless
renewed based on a new assessment and evaluation. Failure to renew will mean that he/she has
changed his/her status as a solo parent.
(c) The solo parent shall be informed of the result of the assessment/evaluation and termination of the
service, if warranted, through written notice. The termination shall take effect 30 days from the receipt
of the notice of termination. In cases when the service cannot be terminated in a period of one month,
e.g. schooling, the service shall be completed until its due time.
The NHA and other participating housing agencies shall issue the guidelines in the termination of housing benefits
provided in sections 23 and 24 of these Rules.
(d) The solo parent and his/her children shall undergo psychosocial counseling with the social worker to
prepare them for independent living.
Section 13. Relocation of the Family In the event a solo parent decides to relocate his/her family, he/she shall
inform the city/municipal Social Welfare and Development Office. Said office shall thereupon transmit the records to
the city/municipal Social Welfare and Development Office of the place of relocation.
Section 14. Duty to Monitor It shall be the duty of the city/municipal Social Welfare Officer who receives said
records, to assign a social worker to monitor the status of the relocated solo parent and his/her family.
Moreover, it shall also be the duty of said officer to coordinate with the concerned agencies of any changes in the
status of the solo parent receiving benefits from said agencies.
ARTICLE V
BENEFITS
Section 15. Comprehensive Package of Social Development and Welfare Services A comprehensive package of
social development and welfare services for solo parents and their families will be developed by the DSWD, DOH,
DepEd, CHED, TESDA, DOLE, NHA and DILG, in coordination with local government units and non-governmental
organizations with proven track record in providing services for solo parents.
The DSWD shall coordinate with concerned agencies the implementation of the comprehensive package of social
development and welfare services for solo parents and their families. The package will initially include:
(a) Livelihood development services, which include training on livelihood skills, basic business management,
value orientation and the provision of seed capital or job placement.
The criteria and procedure for evaluation of beneficiaries for the purposes of availing of the benefits of this item shall
be provided for by the DOLE and TESDA; the provision of seed capital shall be guided by the credit policy of the
National Credit Council as contained in E.O. No. 138, Rationalization of Government Directed Credit Program,
passed in 1999.
(b) Counseling services, which include individual, peer group or family counseling. These will focus on the
resolution of personal relationship and role conflicts.
The criteria and procedure for evaluation of beneficiaries for the purposes of availing of the benefits of this item shall
be provided for by the DSWD;
(c) Parent effectiveness services which include the provision and expansion of knowledge and skills of the
solo parent on early childhood development, behavior management, health care and proper nutrition,
rights and duties of parents and children;
(d) Critical incidence stress debriefing, which includes preventive stress management strategy designed to
assist solo parents in coping with crisis situations and cases of abuse;
(e) Special projects for individuals in need of protection which include temporary shelter, counseling, legal
assistance, medical care, self-concept or ego-building, crisis management and spiritual enrichment.
Section 16. Flexible Work Schedule The employer shall provide for a flexible work schedule for solo parents:
Provided, That the same shall not affect individual and company productivity: Provided further, That any employer
may request exemption from the above requirements from the DOLE on certain meritorious grounds.
In the case of employees in the government service, flexible working hours will be subject to the discretion of the
head of the agency. In no case shall the weekly working hours be reduced in the event the agency adopts the flexible
working hours schedule format (flexi-time). In the adoption of flexi-time, the core working hours shall be prescribed
taking into consideration the needs of the service..
Section 17. Work Discrimination No employer shall discriminate against any solo parent employee with
respect to terms and conditions of employment on account of his/her status.
Section 18. Parental Leave In addition to leave privileges under existing laws, parental leave of not more than
seven (7) working days every year shall be granted to any solo parent employee who has rendered service of at least
one (1) year. The seven-day parental leave shall be non-cumulative.
Section 19. Conditions for Entitlement of Parental Leave A solo parent shall be entitled to parental leave provided
that:
(a) He/She has rendered at least one (1) year of service whether continuous or broken at the time of the
affectivity of the Act;
(b) He/She has notified his/her employer of the availment thereof within a reasonable time period; and
(c) He/She has presented a Solo Parent Identification Card to his/her employer.
Section 20. Non-conversion of Parental Leave In the event that the parental leave is not availed of, said leave shall
not be convertible to cash unless specifically agreed upon previously. However, if said leave were denied an
employee as a result of non-compliance with the provisions of these Rules by an employer, the aforementioned leave
may be used a basis for the computation of damages.
Section 21. Crediting of Existing Leave If there is an existing or similar benefit under a company policy, or a
collective bargaining agreement or collective negotiation agreement the same shall be credited as such. If the same
is greater than the seven (7) days provided for in the Act, the greater benefit shall prevail.
Emergency or contingency leave provided under a company policy or a collective bargaining agreement shall not be
credited as compliance with the parental leave provided for under the Act and these Rules.
Section 22. Educational Benefits The DepEd, CHED and TESDA shall provide the following benefits and privileges:
(a) Scholarship programs for qualified solo parents and their children in institutions of basic, tertiary and
technical/skills education;
(b) Non-formal education programs appropriate for solo parents and their children.
Application Procedure:
1. Applicant must secure application form from either DepEd, CHED and TESDA depending on their need;
2. Submit the duly accomplished application form together with the required documents to the appropriate
agency.
The following are the documents required to be attached with the application:
1. Solo Parent Identification Card
2. Barangay Clearance
3. Birth Certificate
4. Notice of admission from the school
5. Original or Certified True Copy of the transcript of record, or the Report Care of the last year the
applicant attended school.
Section 23. Housing Benefits Solo parents who meet the eligibility criteria for housing assistance under R.A. No.
7279 (Urban Development and Housing Act of 1992) and other related rules and regulations of participating housing
agencies shall be provided with liberal terms of payment on government low-cost housing projects, in accordance
with housing law provisions, prioritizing applicants below the poverty line as declared by the NSCB.
Section24. The NHA shall make available housing units to solo parents in its housing projects subject to existing
disposition policies or may refer them to other housing projects, as appropriate, provided that:
(a) The identified solo parent must be eligible for assistance under the provisions of this Act;
(b) Solo parents applying for housing benefits must meet the qualification criteria for housing assistance
under Republic Act 7279, or the Urban Development and Housing Act (UDHA) and other NHA
eligibility criteria under existing policies, rules and regulations; and
(c) Eligible solo parents shall file their application for housing unit directly with the concerned NHA Project
Offices.
Upon written request, the NHA shall provide the DSWD a listing of NHA projects with available housing units for
disposition. This list shall be updated and provided semi-annually.
Section 25. Medical Assistance The DOH shall develop a comprehensive health care program for solo parents and
their children. The program shall be implemented by the DOH through their retained hospitals and medical centers
and the local government units (LGUs) through their provincial/district/city/municipal hospitals and rural health units
(RHUs).
Section 26. Essential Health Packages To ensure the state of well-being of the solo parent and his/her family,
healthy/medical services shall be made available at all times, in all levels of health care delivery system as mentioned
in the previous section. These health/medical services shall be part of the regular essential health packages being
provided at various stages of life.
ARTICLE VI
ADDITIONAL POWERS AND FUNCTIONS OF THE DSWD
Section 27. Additional Powers and Functions of the DSWD The DSWD shall perform the following additional
powers and functions relative to the welfare and development of solo parents and their families:
(a) Conduct research necessary to:
(1) develop a new body of knowledge on solo parents;
(2) Define executive and legislative measures needed to promote and protect the interest of solo
parents and their children; and
(3) Assess the effectiveness of policies and programs designed for solo parents and their children;
The commissioning or contracting out for the conduct of said research shall be inherent in the performance of herein
function;
(b) Coordinate the activities of various government agencies, LGUs, and non-government organizations
engaged in promoting and protecting the interests of solo parents and their children;
(c) Coordinate the dissemination of information concerning the benefits of the Act and these Rules, as well
as other advocacy activities; and
(d) Monitor the implementation of the provisions of this Act and suggest mechanisms by which such
provisions are efficiently and effectively implemented.
Section 28. Review Committee A special review committee comprised of members from the DSWD, DOH, DepEd,
DILG, CHED, TESDA, NHA, DOLE and other related government agencies and non-government organizations or
civil society involved in the implementation of the provisions of the Act shall be created and headed by the DSWD for
the purpose of evaluating the efficacy and relevancy of the provisions of the Act to the present situation.
The duties and responsibilities of the members of this Review Committee shall be considered as part of their regular
functions.
ARTICLE VII
FINAL PROVISIONS
Section 29. Appropriations The amount necessary to carry out the provisions of the Act shall be included in the
budget of concerned government agencies in the General Appropriations Act of the year following its enactment into
law and thereafter.
Section 30. Repealing Clause All laws, decrees, executive orders, administrative orders or parts thereof
inconsistent with the provisions of the Act are hereby repealed, amended or modified accordingly.
Section 31. Separability Clause If any provision of the Act is held invalid or unconstitutional, other provisions not
affected thereby shall continue to be in full force and effect.
Section 32. Effectivity Clause These Implementing Rules and Regulations shall take effect fifteen (15) days
following its publication in one (1) national newspaper of general circulation.
7. Service Charges
Reference: Art. 96; Omnibus Rules, Book III, Rule VI
ART. 96. Service charges. - All service charges collected by hotels, restaurants and similar establishments shall be distributed at the
rate of eighty-five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the
employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees
shall be considered integrated in their wages.
RULE VI
Service Charges
SECTION 1. Coverage. This rule shall apply only to establishments collecting service charges such as hotels, restaurants, lodging
houses, night clubs, cocktail lounge, massage clinics, bars, casinos and gambling houses, and similar enterprises, including those
entities operating primarily as private subsidiaries of the Government.
SECTION 2. Employees covered. This rule shall apply to all employees of covered employers, regardless of their positions,
designations or employment status, and irrespective of the method by which their wages are paid except to managerial employees.
As used herein, a "managerial employee" shall mean one who is vested with powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign, or discipline employees or to effectively
recommend such managerial actions. All employees not falling within this definition shall be considered rank-and-file employees.
SECTION 3. Distribution of service charges. All service charges collected by covered employers shall be distributed at the rate of
85% for the employees and 15% for the management. The 85% shall be distributed equally among the covered employees. The
15% shall be for the disposition by management to answer for losses and breakages and distribution to managerial employees at
the discretion of the management in the latter case.
SECTION 4. Frequency of distribution. The shares referred to herein shall be distributed and paid to the employees not less than
once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.
SECTION 5. Integration of service charges. In case the service charges is abolished the share of covered employees shall be
considered integrated in their wages. The basis of the amount to be integrated shall be the average monthly share of each
employee for the past twelve (12) months immediately preceding the abolition of withdrawal of such charges.
SECTION 6. Relation to agreements. Nothing in this Rule shall prevent the employer and his employees 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, agreement and voluntary employer practice.
SECTION 7. This rule shall be without prejudice to existing, future collective bargaining agreements.
Nothing in this rule shall be construed to justify the reduction or diminution of any benefit being enjoyed by any employee at the
time of effectivity of this rule.
a. Covered Employees, Art. 96
b. Sharing, Art. 96
G. Minimum Wages and Wage Fixing Machinery
Reference: Art. 96; Omnibus Rules, Book III, Rules VII-VIII
ART. 99. Regional minimum wages. - The minimum wage rates for agricultural and non-agricultural employees and workers in each
and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended
by Section 3, Republic Act No. 6727, June 9, 1989).
Art XIII, Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as
may be provided by law.
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.
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.
RULE VII
Wages
SECTION 1. Definition of Terms. As used in this Rules
a) "Act" means Republic Act No. 6727;
b) "Commission" means the National Wages and Productivity Commission;
c) "Board" means the Regional Tripartite Wages and Productivity Board;
d) "Agriculture" 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
an incident to or in conjunction with such farming operations, but does not include the manufacturing and/or processing of sugar,
coconut, abaca, tobacco, pineapple, aquatic or other farm products;
e) "Plantation Agricultural Enterprise" is one engaged in agriculture within an area of more than 24 hectares in a locality and/or
which employs at least 20 workers. Any other agricultural enterprise shall be considered as "Non-Plantation Agricultural
Enterprises";
f) "Retail Establishment" is one principally engaged in the sale of goods to end-users for personal or household use;
g) "Service Establishment" is one primarily engaged in the sale of service to individuals for their own or household use and is
generally recognized as such;
h) "Cottage/Handicraft Establishment" is one engaged in an economic endeavor in which the products are primarily done in the
home or such other places for profit which requires manual dexterity and craftsmanship and whose capitalization does not exceed
P500,000, regardless of previous registration with the defunct NACIDA;
i) "National Capital Region" covers the cities of Kalookan, Manila, Pasay and Quezon and the municipalities of Las Pias, Makati,
Malabon, Mandaluyong, Marikina, Muntinlupa, Navotas, Paraaque, Pasig, Pateros, San Juan, Taguig and Valenzuela;
j) "Region III" covers the provinces of Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales and the cities of Angeles,
Cabanatuan, Olongapo, Palayan and San Jose;
k) "Region IV" covers the provinces of Aurora, Batangas, Cavite, Laguna, Marinduque, Occidental Mindoro, Palawan, Quezon, Rizal
and Romblon and the cities of Batangas, Cavite, Lipa, Lucena, Puerto Princesa, San Pablo, Tagaytay and Trece Martires;
l) "Department" refers to the Department of Labor and Employment;
m) "Secretary" means the Secretary of Labor and Employment;
n) "Basic Wage" means all remuneration or earnings paid by an employer to a worker for services rendered on normal working days
and hours but does not include cost-of-living allowances, profit sharing payments, premium payments, 13th month pay or other
monetary benefits which are not considered as part of or integrated into the regular salary of the workers on the date the Act
became effective."
o) "Statutory Minimum Wage" is the lowest wage fixed by law that an employer can pay his workers;
p) "Wage Distortion" means a situation where an increase in prescribed wage rates results in the elimination or severe contraction
of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to
effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of
differentiation;
q) "Capitalization" means paid-up capital, in the case of a corporation, and total invested capital, in the case of a partnership or
single proprietorship.
CHAPTER I
Wage Increase
SECTION 1. Coverage. The wage increase prescribed under the Act shall apply to all workers and employees in the private sector
regardless of their position, designation or status, and irrespective of the method by which their wages are paid, except:
a) Household or domestic helpers, including family drivers and workers in the personal service of another;
b) Workers and employees in retail/service establishments regularly employing not more than 10 workers, when exempted from
compliance with the Act, for a period fixed by the Commission/Boards in accordance with Section 4 (c) of the Act and Section 15,
Chapter 1 of these Rules;
c) Workers and employees in new business enterprises outside the National Capital Region and export processing zones for a period
of not more than two or three years, as the case may be, from the start of operations when exempted in accordance with Section 5
of the Act and Section 15, Chapter I of these Rules;
d) Workers and employees receiving a basic wage of more than P100.00 per day.
SECTION 2. Effectivity. The Act takes effect on July 1, 1989, 15 days following its complete publication in two newspapers of
general circulation on June 15, 1989 pursuant to Section 15 thereof.
SECTION 3. Amount of Minimum Wage Increase. Effective July 1, 1989, the daily statutory minimum wage rates of covered
workers and employees shall be increased as follows:
a) P25.00 for those in the National Capital Region;
b) P25.00 for those outside the National Capital Region, except for the following:
P20.00 for those in plantation agricultural enterprises with an annual gross sales of less than P5 million in the fiscal year
immediately preceding the effectivity of the Act;
P15.00 for those in the following enterprises:
1. Non-plantation agriculture
2. Cottage/handicraft
3. Retail/Service regularly employing not more than 10 workers
4. Business enterprises with a capitalization of not more than P500,000 and employing not more than 20 workers.
SECTION 4. When Wage Increase Due Other Workers. a) All workers and employees who, prior to July 1, 1989, were already
receiving a basic wage above the statutory minimum wage rates provided under Republic Act 6640 but not over P100.00 per day
shall receive a wage increase equivalent to that provided in the preceding Section.
b) Those receiving not more than the following monthly basic wage rates prior to July 1, 1989 shall be deemed covered by the
preceding subsection:
(i) P3,257.50 where the workers and employees work everyday, including premium payments for Sundays or rest days, special
days and regular holidays.
(ii) P3,041.67 where the workers and employees do not work but considered paid on rest days, special days and regular
holidays.
(iii) P2,616.67 where the workers and employees do not work and are not considered paid on Sundays or rest days.
(iv) P2,183.33 where the workers and employees do not work and are not considered paid on Saturdays and Sundays or rest
days.
c) Workers and employees who, prior to July 1, 1989, were receiving a basic wage of more than P100.00 per day or its monthly
equivalent, are not by law entitled to the wage increase provided under the Act. They may however, receive wage increases
through the correction of wage distortions in accordance with Section 16, Chapter I of these Rules.
SECTION 5. Daily Statutory Minimum Wage Rates. The daily minimum wage rates of workers and employees shall be as follows:
Sector/Industry Under Under

R. A. 6640 R. A. 6727
(Effective (Effective
Dec. 14, July 1,
1987) 1989)
A. NATIONAL CAPITAL REGION
Non-Agriculture P64.00 P89.00
Agriculture
Plantation 54.00 79.00
Non-Plantation 43.50 68.50
Cottage/Handicraft
Employing more than 30
workers 52.00 77.00
Employing not more than

30 workers 50.00 75.00
Private Hospitals
With bed capacity of more
than 100 64.00 89.00
With bed capacity of 100

or less 60.00 85.00
Retail/Service
workers 64.00 89.00
Employing 11 to 15
workers 60.00 85.00

10 workers 43.00 68.00
B. OUTSIDE NATIONAL CAPITAL REGION
Non-Agriculture 64.00 89.00
Agriculture
Plantation with annual gross
sales of P5M or more 54.00 79.00
Plantation with annual gross

sales of less than P5M 54.00 74.00
Non-plantation 43.50 58.50
Cottage/Handicraft
Employing more than
30 workers 52.00 67.00
Employing not more

than 30 workers 50.00 65.00
Private Hospitals 60.00 85.00
Retail/Service
Cities w/ population of more
than 150,000
Employing more than

15 workers 64.00 89.00
Employing 11 to 15 workers 60.00 85.00

10 workers 43.00 58.00
Sugar Mills
Agriculture
Plantation w/ annual gross

sales of P5M or more 48.50 73.50
Plantation w/ annual gross

sales of less than P5M 48.50 68.50
Non-plantation 43.50 58.50
Business Enterprises w/ Capitalization

of not more than P500,000 and
employing not more than 20 workers
Non-Agriculture 64.00 79.00
Agriculture Plantation
Products Other than Sugar 54.00 69.00
Sugar 48.50 63.50
Private Hospitals 60.00 75.00
Retail/Service
Cities w/ population of more
than 150,000
Employing more than

15 workers 64.00 79.00
Employing 11 to 15 workers 60.00 75.00
Municipalities and Cities

w/ population of not more
than 150,000

workers 60.00 75.00
SECTION 6. Suggested Formula in Determining the Equivalent Monthly Statutory Minimum Wage Rates. Without prejudice to
existing company practices, agreements or policies, the following formula may be used as guides in determining the equivalent
monthly statutory minimum wage rates:
a) For those who are required to work everyday including Sundays or rest days, special days and regular holidays:
Equivalent Applicable daily wage rate (ADR) x 390.90 days
Monthly =
Rate (EMR) 12
Where 390.90 days =
302 days Ordinary working days
20 days 10 regular holidays x 200%
66.30 days 51 rest days x 130%
2.60 days 2 special days x 130%
390.90 days Total equivalent number of days.
b) For those who do not work but considered paid on rest days, special days and regular holidays:
ADR x 365 days
EMR =
12
Where 365 days =
51 days Rest days
10 days Regular holidays
2 days Special days
365 days Total equivalent number of days
c) For those who do not work and are not considered paid on Sundays or rest days:
ADR x 314 days
EMR =
12
Where 314 days =
2 days Special days (If considered
paid; If actually worked,
this is equivalent to 2.6 days)
d) For those who do not work and are not considered paid on Saturdays or rest days:
ADR x 262 days
EMR =
12
Where 262 days =
2 days Special days (If considered paid; If actually
worked, this is equivalent to 2.6 days)
Note: For workers whose rest days fall on Sundays, the number of rest days in a year is reduced from 52 to 51 days, the last
Sunday of August being a regular holiday under Executive Order No. 201. For purposes of computation, said holiday, although still a
rest day for them, is included in the ten regular holidays. For workers whose rest days do not fall on Sundays, the number of rest
days is 52 days, as there are 52 weeks in a year.
Nothing herein shall be considered as authorizing the reduction of benefits granted under existing agreements or employer
practices/policies.
SECTION 7. Basis of Minimum Wages Rates. The statutory minimum wage rules prescribed under the Act shall be for the normal
working hours, which shall not exceed eight hours work a day.
SECTION 8. Creditable Wage Increase.
a) No wage increase shall be credited as compliance with the increases prescribed under the Act unless expressly provided under
collective bargaining agreements; and, such wage increase was granted not earlier than April 1, 1989 but not later than July 1,
1989. Where the wage increase granted is less than the prescribed increase under the Act, the employer shall pay the difference.
b) Anniversary wage increase provided in collective agreements, merit wage increase, and those resulting from the regularization or
promotion of employees shall not be credited as compliance thereto.
SECTION 9. Workers Paid by Results.
a) All workers paid by results, including those who are paid on piecework, takay, pakyaw, or task basis, shall receive not less than
the applicable statutory minimum wage rates prescribed under the Act for the normal working hours which shall not exceed eight
hours work a day, or a proportion thereof for work of less than the normal working hours.
The adjusted minimum wage rates for workers paid by results shall be computed in accordance with the following steps:
1) Amount of increase in AMW - Previous AMW x 100 = % Increase;
2) Existing rate/piece x % increase = increase in rate/piece;
3) Existing rate/piece + increase in rate/piece = Adjusted rate/piece.
Where AMW is the applicable minimum wage rate.
b) The wage rates of workers who are paid by results shall continue to be established in accordance with Article 101 of the Labor
Code, as amended and its implementing regulations.
SECTION 10. Wages of Special Groups of Workers. Wages of apprentices, learners and handicapped workers shall in no case be
less than 75 percent of the applicable statutory minimum wage rates.
All recognized learnership and apprenticeship agreements entered into before July 1, 1989 shall be considered as automatically
modified insofar as their wage clauses are concerned to reflect the increases prescribed under the Act.
SECTION 11. Application to Contractors. In the case of contracts for construction projects and for security, janitorial and similar
services, the prescribed wage increases shall be borne by the principals or clients of the construction/service contractors and the
contract shall be deemed amended accordingly. In the event, however, that the principal or client fails to pay the prescribed wage
rates, the construction/service contractor shall be jointly and severally liable with his principal or client.
SECTION 12. Application to Private Educational Institution. Private educational institutions which increased tuition fees beginning
school year 1989-1990 shall comply with the P25.00 per day wage increase prescribed under the Act effective as follows:
a) In cases where the tuition fee increase was effected before the effectivity of the Act, the wage increase shall take effect only July
1, 1989.
b) In cases where the tuition fee increase was effected on or after the effectivity of the Act, the wage increase shall take effect not
later than the date the school actually increased tuition but in the latter case, such wage increase may not be made retroactive in
July 1, 1989.
Beginning school year 1990-1991, all schools shall implement the wage increase regardless of whether or not they have actually
increased tuition fees.
SECTION 13. Mobile and Branch Workers. The statutory minimum wage rates of workers, who by the nature of their work have
to travel, shall be those applicable in the domicile or head office of the employer.
The minimum wage rates of workers working in branches or agencies of establishments in or outside the National Capital Region
shall be those applicable in the place where they are stationed.
SECTION 14. Transfer of Personnel. The transfer of personnel to areas outside the National Capital Region shall not be a valid
ground for the reduction of the wage rates being enjoyed by the workers prior to such transfer. The workers transferred to the
National Capital Region shall be entitled to the minimum wage rate applicable therein.
SECTION 15. Exemptions.
a) The following establishments may be exempted from compliance with the wage increase prescribed under the Act:
1) Retail/Service establishments regularly employing not more than 10 workers upon application with and as determined by the
appropriate Board in accordance with applicable guidelines to be issued by the Commission.
2) New business enterprises that may be established outside the National Capital Region and export processing zones from July 1,
1989 to June 30, 1993, whose operation or investments need initial assistance may be exempted for not more than three years
from the start of operations, subject to guidelines to be issued by the Secretary in consultation with the Department of Trade and
Industry and the Department of Agriculture.
New business enterprises in Region III (Central Luzon) and Region IV (Southern Tagalog) may be exempted for two years only
from start of operations, except those that may be established in the provinces of Palawan, Oriental Mindoro, Occidental Mindoro,
Marinduque, Romblon, Quezon and Aurora, which may also be exempted for not more than three years from the start of
operations.
b) Whenever an application for exemption has been duly filed with the appropriate office in the Department/Board, action by the
Regional Office of the Department on any complaints for alleged non-compliance with the Act shall be deferred pending resolution
of the applicant for exemption.
c) In the event that the application for exemption is not granted, the workers and employees shall receive the appropriate
compensation due them as provided for under the Act plus interest of one percent per month retroactive to July 1, 1989 or the start
of operations whichever is applicable.
SECTION 16. Effects on Existing Wage Structure. Where the application of the wage increase prescribed herein results in
distortions in the wage structure within an establishment which gives rise to a dispute therein, such dispute shall first be settled
voluntarily between the parties. In the event of a deadlock, such dispute shall be finally resolved through compulsory arbitration by
the regional arbitration branch of the National Labor Relations Commission (NLRC) having jurisdiction over the workplace.
The NLRC shall conduct continuous hearings and decide any dispute arising from wage distortions within twenty calendar days from
the time said dispute is formally submitted to it for arbitration. The pendency of a dispute arising from a wage distortion shall not in
any way delay the applicability of the increases in the wage rates prescribed under the Act.
Any issue involving wage distortion shall not be a ground for a strike/lockout.
SECTION 17. Complaints for Non-Compliance. Complaints for non-compliance with the wage increases prescribed under the Act
shall be filed with the Regional Offices of the Department having jurisdiction over the workplace and shall be the subject of
enforcement proceedings under Articles 128 and 129 of the Labor Code, as amended.
SECTION 18. Conduct of inspection by the Department. The Department shall conduct inspections of establishments, as often as
necessary, to determine whether the workers are paid the prescribed wage rates and other benefits granted by law or any Wage
Order. In the conduct of inspection in unionized companies, Department inspectors shall always be accompanied by the president or
other responsible officer of the recognized bargaining unit or of any interested union. In the case of non-unionized establishments,
a worker representing the workers in the said company shall accompany the inspector.
The worker's representative shall have the right to submit his own findings to the Department and to testify on the same if he does
not concur with the findings of the labor inspector.
SECTION 19. Payment of Wages. Upon written petition of the majority of the workers and employees concerned, all private
establishments, companies, businesses and other entities with at least twenty workers and located within one kilometer radius to a
commercial, savings or rural bank, shall pay the wages and other benefits of their workers through any of said banks, within the
period and in the manner and form prescribed under the Labor Code as amended.
SECTION 20. Duty of Bank. Whenever applicable and upon request of concerned worker or union, the bank through which wages
and other benefits are paid issue a certification of the record of payment of said wages and benefits of a particular worker or
workers for a particular payroll period.
CHAPTER II
The National Wages and Productivity Commission and Regional Tripartite Wages and Productivity Boards
SECTION 1. Commission. The National Wages and Productivity Commission created under the Act shall hold office in the National
Capital Region. The Commission shall be attached to the Department for policy and program coordination.
SECTION 2. Powers and Functions of the Commission. The Commission shall have the following powers and functions:
a) To act as the national consultative and advisory body to the President of the Philippines and Congress on matters relating to
wages, incomes and productivity;
b) To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise, industry and national
levels;
c) To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity measures at the regional,
provincial or industry levels;
d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Board to determine if these are in
accordance with prescribed guidelines and national development plans;
e) To undertake studies, researches and surveys necessary for the attainment of its functions and objectives, and to collect and
compile data and periodically disseminate information on wages and productivity and other related information, including, but not
limited to, employment, cost-of-living, labor costs, investments and returns;
f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to determine whether these are
consistent with national development plans;
g) To exercise technical and administrative supervision over the Regional Tripartite Wages and Productivity Boards;
h) To call, from time to time, a national tripartite conference of representatives of government, workers and employers for the
consideration of measures to promote wage rationalization and productivity; and
i) To exercise such powers and functions as may be necessary to implement this Act.
SECTION 3. Composition of the Commission. The Commission shall be composed of the Secretary as ex-officio Chairman, the
Director General of the National Economic and Development Authority (NEDA) as ex-officio Vice-Chairman and two members each
from workers and employers sectors who shall be appointed by the President for a term of five years upon recommendation of the
Secretary. The recommendees shall be selected from the lists of nominees submitted by the workers' and employers' sectors. The
Executive Director of the Commission Secretariat shall be also a member of the Commission.
The members of the Commission representing labor and management shall have the same rank, emoluments, allowances and other
benefits as those prescribed by law for labor and management representatives in the Employees' Compensation Commission.
SECTION 4. Commission Secretariat. The Commission shall be assisted by a Secretariat to be headed by an Executive Director
and two Deputy Directors who shall be appointed by the President upon recommendation of the Secretary.
The Executive Director shall have the rank of a Department Assistant Secretary, while the Deputy Directors that of a Bureau
Director. The Executive Director and Deputy Directors shall receive the corresponding salary, benefits and other emoluments of the
positions.
SECTION 5. Regional Tripartite Wages and Productivity Boards. The Regional Wages and Productivity Boards created under the
Act in all regions, including autonomous regions as may be established by law, shall hold offices in areas where the Regional Offices
of the Department are located.
SECTION 6. Powers and Functions of the Boards. The Boards shall have the following powers and functions:
a) To develop plans, programs and projects relative to wages, incomes and productivity improvement for their respective regions;
b) To determine and fix minimum wage rates applicable in their region, provinces or industries therein and to issue the
corresponding wage orders, subject to guidelines issued by the Commission;
c) To undertake studies, researches, and surveys necessary for the attainment of their functions, objectives and programs, and to
collect and compile data on wages, incomes, productivity and other related information and periodically disseminate the same;
d) To coordinate with the other Boards as may be necessary to attain the policy and intention of the Labor Code;
e) To receive, process and act on applications for exemption from prescribed wage rates as may be provided by law or any Wage
Order; and
f) To exercise such other powers and functions as may be necessary to carry out their mandate under the Labor Code.
Implementation of the plans, programs and projects of the Boards shall be through the respective Regional Offices of the
Department, provided, however, that the Boards shall have technical supervision over the Regional Office of the Department with
respect to the implementation of these plans, programs and projects.
SECTION 7. Compositions of the Boards. Each Board shall be composed of the Regional Director of the Department as Chairman,
the Regional Directors of the National Economic and Development Authority (NEDA) and Department of Trade and Industry (DTI)
as Vice-Chairmen and two members each of workers and employers sectors who shall be appointed by the President for a term of
five years upon the recommendation of the Secretary. The recommendees shall be selected from the list of nominees submitted by
the workers and employers sectors.
Each Board shall be assisted by a Secretariat.
SECTION 8. Authority to Organize and Appoint Personnel. The Chairman of the Commission shall organize such units and appoint
the necessary personnel of the Commission and Board Secretaries, subject to pertinent laws, rules and regulations.
CHAPTER III
Minimum Wage Determination
SECTION 1. Regional Minimum Wages. The minimum wage rates for agricultural and non-agricultural workers and employees in
every region shall be those prescribed by the Boards which shall in no case be lower than the statutory minimum wage rates. These
wage rates may include wages by industry, province or locality as may be deemed necessary by the Boards.
SECTION 2. Standards/Criteria for Minimum Wage Fixing. The regional minimum wages to be established by the Boards shall be
as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and
general well-being of the workers within the framework of the national economic and social development programs. In the
determination of regional minimum wages, the Boards, shall, among other relevant factors, consider the following:
a) The demand for living wages;
b) Wage adjustment vis-a-vis the consumer price index;
c) The cost of living and changes or increases therein;

d) The needs of workers and their families;
e) The need to induce industries to invest in countryside;
f) Improvements in standards of living;
g) The prevailing wage levels;
h) Fair return of the capital invested and capacity to pay of employers;
i) Effects on employment generation and family income; and
j) The equitable distribution of income and wealth along the imperatives of economic and social development.
SECTION 3. Wage Order. Whenever conditions in the region so warrant, the Board shall investigate and study all pertinent facts;
and, based on standards and criteria prescribed herein, shall determine whether a Wage Order should be issued.
In the performance of its wage determining functions, the Board shall conduct public hearings and consultations giving notices to
employees' and employers' groups, provincial, city and municipal officials and other interested parties.
SECTION 4. Effectivity of Wage Order. Any Wage Order issued by the Board shall take effect 15 days after its complete
publication in at least one newspaper of general circulation in the region.
SECTION 5. Appeal to the Commission. Any party aggrieved by the Wage Order issued by the Board may file an appeal with the
Commission within ten calendar days from the publication of the Order. The Commission shall decide the appeal within sixty
calendar days from the date of filing.
SECTION 6. Effect of Appeal. The filing of the appeal shall not suspend the effectivity of the Wage Order unless the person
appealing such order files with the Commission an undertaking with a surety or sureties in such amount as may be fixed by the
Commission.
SECTION 7. Wage Distortions. Where the application of any wage increase resulting from a Wage Order issued by any Board
results in distortions in the wage structure within an establishment, the employer and the union shall negotiate to correct the
distortions using the grievance procedure under their collective bargaining agreement. If it remains unresolved, it shall be decided
through voluntary arbitration ten calendar days from the time the dispute was referred for voluntary arbitration, unless otherwise
agreed by the parties in writing.
Where there are no collective agreements or recognized labor unions, the employer and workers shall endeavor to correct the wage
distortion. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and if it remains
unresolved after ten calendar days of conciliation, it shall be referred to the appropriate branch of the National Labor Relations
Commission (NLRC). The NLRC shall conduct continuous hearings and decide the dispute within twenty calendar days from the time
said dispute is submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any wage increase
prescribed pursuant to the provisions of law or Wage Order.
SECTION 8. Non-Diminution of Benefits. Nothing in the Act and in these Rules shall be construed to reduce any existing laws,
decrees, issuances, executive orders, and/or under any contract or agreement between the workers and employers.
SECTION 9. Prohibition Against Injunction. No preliminary or permanent injunction or temporary restraining order may be issued
by any court, tribunal or other entity against any proceedings before the Commission or Boards.
SECTION 10. Penal Provisions. Any person, corporation trust, firm, partnership, association or entity which refuses or fails to pay
any of the prescribed increases or adjustments in the wage rates made in accordance with the Act shall be punished by a fine not
exceeding P25,000 and/or imprisonment of not less than one year nor more than two years: Provided, that any person convicted
under the Act shall not be entitled to the benefits provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of
imprisonment shall be imposed upon the entity's responsible officers, including, but not limited to, the president, vice-president,
chief executive officer, general manager, managing director or partner.
SECTION 11. Registration/Reporting Requirement. Any person, company, corporation, partnership or any other entity engaged in
business shall submit annually a verified itemized listing of their labor component to the appropriate Board and the National
Statistics Office not later than January 31 of each year, starting on January 31, 1990 in accordance with the form to be prescribed
by the Commission. The listing shall specify the names, salaries and wages of their workers and employees below the managerial
level including learners, apprentices and disabled/handicapped workers.
CHAPTER IV
Transitory Provisions
SECTION 1. Abolition of the National Wages Council and the National Productivity Commission. The National Wages Council
created under Executive Order No. 614 and the National Productivity Commission created under Executive Order No. 615 are
abolished. All properties, records, equipment, buildings, facilities, and other assets, liabilities and appropriations of and belonging to
the abovementioned offices, as well as other matters pending herein, shall be transferred to the Commission. All personnel of the
above abolished offices shall continue to function in a hold-over capacity and shall be preferentially considered for appointments to
or placements in the Commission/Boards.
Any official or employee separated from the service as a result of the abolition of offices pursuant to the Act shall be entitled to
appropriate separation pay of one month salary for every year of service and/or retirement and other benefits accruing to them
under existing laws. In lieu thereof, at the option of the employee, he shall be preferentially considered for employment in the
government or in any of its subdivisions, instrumentalities, or agencies, including government owned or controlled corporations and
their subsidiaries.
SECTION 2. Interim Processing of Applications for Exemption and Submission of Reports. Pending the operationalization of the
Commission and Boards, the National Wages Council shall, in the interim, receive and process applications for exemption subject to
guidelines to be issued by the Secretary, in accordance with Section 11 of the Act.
Reports of establishments on their labor component, including wages and salaries of their workers prescribed under the Act, shall
be submitted to the National Wages Council through the Regional Offices of the Department.
SECTION 3. Funding Requirement. The funds necessary to carry out the provisions of the Act shall be taken from the
Compensation and Organization Adjustment Fund, the Contingent Fund, and other savings under Republic Act No. 6688, otherwise
known as the General Appropriations Act of 1989, or from any unappropriated funds of the National Treasury; Provided, that the
funding requirements necessary to implement the Act shall be included in the annual General Appropriations Act for the succeeding
years.
SECTION 4. Repealing Clause. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with the provisions
of the Act and this Rules are hereby repealed, amended or modified accordingly. If any provision or part of the Act and this Rules,
or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of the Act and these Rules
or the application of such provision or part thereof to other persons or circumstance shall not be affected thereby.
SECTION 5. Effectivity. These rules shall take effect on July 1, 1989.
RULE VIII
Payment of Wages
SECTION 1. Manner of wage payment. As a general rule, wages shall be paid in legal tender and the use of tokens, promissory
notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely prohibited even when expressly
requested by the employee.
SECTION 2. Payment by check. Payment of wages by bank checks, postal checks or money orders is allowed where such manner
of wage payment is customary on the date of the effectivity of the Code, where it is so stipulated in a collective agreement, or
where all of the following conditions are met:
(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;
(b) The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the
arrangement;
(c) The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be
considered as compensable hours worked if done during working hours; and
(d) The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing
the payment of wages by bank checks.
SECTION 3. Time of payment. (a) Wages shall be paid not less than once every two (2) weeks or twice a month at intervals not
exceeding sixteen (16) days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond
the employer's control in which case the employer shall pay the wages immediately after such force majeure or circumstances have
ceased.
(b) In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be made at
intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be made immediately
upon completion of the work.
SECTION 4. Place of payment. As a general rule, the place of payment shall be at or near the place of undertaking. Payment in a
place other than the work place shall be permissible only under the following circumstances:
(a) When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions, or
by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity rendering payment thereat
impossible;
(b) When the employer provides free transportation to the employees back and forth; and
(c) Under any other analogous circumstances; Provided, That the time spent by the employees in collecting their wages shall be
considered as compensable hours worked;
(d) No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall, or other
similar places or in places where games are played with stakes of money or things representing money except in the case of
persons employed in said places.
SECTION 5. Direct payment of wages. Payment of wages shall be made direct to the employee entitled thereto except in the
following cases:
(a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family;
(b) Where payment to another person of any part of the employee's wages is authorized by existing law, including payments for the
insurance premiums of the employee and union dues where the right to check-off has been recognized by the employer in
accordance with a collective agreement or authorized in writing by the individual employees concerned; or
(c) In case of death of the employee as provided in the succeeding Section.
SECTION 6. Wages of deceased employee. The payment of the wages of a deceased employee shall be made to his heirs
without the necessity of intestate proceedings. When the heirs are of age, they shall execute an affidavit attesting to their
relationship to the deceased and the fact that they are his heirs to the exclusion of all other persons. In case any of the heirs is a
minor, such affidavit shall be executed in his behalf by his natural guardian or next of kin. Upon presentation of the affidavit to the
employer, he shall make payment to the heirs as representative of the Secretary of Labor and Employment.
SECTION 7. Civil liability of employer and contractors. Every employer or indirect employer shall be jointly and severally liable
with his contractor or sub-contractor for the unpaid wages of the employees of the latter. Such employer or indirect employer may
require the contractor or sub-contractor to furnish a bond equal to the cost of labor under contract on condition that the bond will
answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same.
SECTION 8. Job Contracting. There is job contracting permissible under the Code if the following conditions are met:
(a) The contractor carries on an independent business and undertakes the contract work on his own account under his own
responsibility according to his own manner and method, free from the control and direction of his employer or principal in all
matters connected with the performance of the work except as to the results thereof; and
(b) The contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other
materials which are necessary in the conduct of his business.
SECTION 9. Labor-only contracting. (a) Any person who undertakes to supply workers to an employer shall be deemed to be
engaged in labor-only contracting where such person:
(1) Does not have substantial capital or investment in the form of tools, equipment, machineries, work premises and other
materials; and
(2) The workers recruited and placed by such person are performing activities which are directly related to the principal business or
operations of the employer in which workers are habitually employed.
(b) Labor-only contracting as defined herein is hereby prohibited and the person acting as contractor shall be considered merely as
an agent or intermediary of the employer who shall be responsible to the workers in the same manner and extent as if the latter
were directly employed by him.
(c) For cases not falling under this Rule, the Secretary of Labor and Employment shall determine through appropriate orders
whether or not the contracting out of labor is permissible in the light of the circumstances of each case and after considering the
operating needs of the employer and the rights of the workers involved. In such case, he may prescribe conditions and restrictions
to insure the protection and welfare of the workers.
SECTION 10. Payment of wages in case of bankruptcy. Unpaid wages earned by the employees before the declaration of
bankruptcy or judicial liquidation of the employer's business shall be given first preference and shall be paid in full before other
creditors may establish any claim to a share in the assets of the employer.
SECTION 11. Attorney's fees. Attorney's fees in any judicial or administrative proceedings for the recovery of wages shall not
exceed 10 percent of the amount awarded. The fees may be deducted from the total amount due the winning party.
SECTION 12. Non-interference in disposal of wages. No employer shall limit or otherwise interfere with the freedom of any
employee to dispose of his wages and no employer shall in any manner oblige any of his employees to patronize any store or avail
of the services offered by any person.
SECTION 13. Wages deduction. Deductions from the wages of the employees may be made by the employer in any of the
following cases:
(a) When the deductions are authorized by law, including deductions for the insurance premiums advanced by the employer in
behalf of the employee as well as union dues where the right to check-off has been recognized by the employer or authorized in
writing by the individual employee himself.
(b) When the deductions are with the written authorization of the employees for payment to the third person and the employer
agrees to do so; Provided, That the latter does not receive any pecuniary benefit, directly or indirectly, from the transaction.
SECTION 14. Deduction for loss or damage. Where the employer is engaged in a trade, occupation or business where the
practice of making deductions or requiring deposits is recognized to answer for the reimbursement of loss or damage to tools,
materials, or equipment supplied by the employer to the employee, the employer may make wage deductions or require the
employees to make deposits from which deductions shall be made, subject to the following conditions:
(a) That the employee concerned is clearly shown to be responsible for the loss or damage;
(b) That the employee is given reasonable opportunity to show cause why deduction should not be made;
(c) That the amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage; and
(d) That the deduction from the wages of the employee does not exceed 20 percent of the employee's wages in a week.
1. Minimum Wage, Art. 99; Consti., Art. XIII, Sec. 3
MINIMUM WAGE RATES
ART. 99. Regional minimum wages. - The minimum wage rates for agricultural and non-agricultural employees and workers in each
and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended
by Section 3, Republic Act No. 6727, June 9, 1989).
Art XIII, Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as
may be provided by law.
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.
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.
a. Coverage, Arts. 97 (b) (c) (e), 98
ART. 97. Definitions. - As used in this Title:
(b) "Employer" includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall
include the government and all its branches, subdivisions and instrumentalities, all government-owned or controlled corporations
and institutions, as well as non-profit private institutions, or organizations.
(c) "Employee" includes any individual employed by an employer.
e) "Employ" includes to suffer or permit to work.
ART. 98. Application of Title. - This Title shall not apply to farm tenancy or leasehold, domestic service and persons working in
their respective homes in needle work or in any cottage industry duly registered in accordance with law.
Philippine Fisheries Development Authority v. NLRC, 213 SCRA 621 (1992)

b. Rules
1) Definition
Chavez v. NLRC, supra
2) No Work, No Pay (A fair days wage for a fair days labor)
Aklan Electric Corp., Inc. v. NLRC, 323 SCRA 259 (2000)
3) Equal Pay for Work of Equal Value
International School Alliance of Educators v. Quisumbing, supra
Bankard Employers Union v. NLRC, 423 SCRA 148 (2004)

4) Form: Agreement for Compensation of Services
Arms Taxi v. NLRC, 219 SCRA 306 (1993)
c. Minimum Wage
1) Determination of Compliance with Minimum Wage
Iran v. NLRC, 289 SCRA 433 (1998)

2) Facilities and Supplements/Allowances
Millares v. NLRC & PICOP, 305 SCRA 500 (1999)
3) Cash Wage/Commission
Songco v. NLRC, 183 SCRA 610 (1990)

Boie Takeda v. De la Serna, 228 SCRA 329 (1993)
Philippine Duplicators v. NLRC, 241 SCRA 380 (1995)

4) Gratuity and Salary/Wages, Difference
Plastic Town Center corp. v. NLRC, 172 SCRA 580

(1989)
5) Effect on Benefits
Davao Fruits Corporation v. Associated Labor Union, 225 SCRA 562 (1993)
2. Wage Fixing Machinery
Reference: Wage Rationalization Act (RA 6727); Art. 120-127; Omnibus Rules, Book III, Rule IX

Metro Manila
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty-
fifth day of July, nineteen hundred and eighty-eight
[REPUBLIC ACT NO. 6727]
AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHING THE MECHANISM AND

PROPER STANDARDS THEREFOR, AMENDING FOR THE PURPOSE ARTICLE 99 OF, AND INCORPORATING
ARTICLES 120, 121, 122, 123, 124, 126 AND 127 INTO, PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, FIXING NEW WAGE RATES, PROVIDING
WAGE INCENTIVES FOR INDUSTRIAL DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER PURPOSES
Sec. 1. This Act shall be known as the "Wage Rationalization Act."
Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to promote
productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their
families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment
generation in the countryside through industry dispersal; and to allow business and industry reasonable returns on
investment, expansion and growth.
The State shall promote collective bargaining as the primary mode of setting wages and other terms and conditions
of employment; and, whenever necessary, the minimum wage rates shall be adjusted in a fair and equitable manner,
considering existing regional disparities in the cost of living and other socio-economic factors and the national
economic and social development plans.
Sec. 3. In line with the declared policy under this Act, Article 99 of Presidential Decree No. 442, as amended, is
hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127 are hereby incorporated into Presidential Decree
No. 442, as amended, to read as follows:
"Art. 99. Regional Minimum Wages. - The minimum wage rates for agricultural and non-agricultural employees and
workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and
Productivity Boards."
"Art. 120. Creation of the National Wages and Productivity Commission. - There is hereby created a National
Wages and Productivity Commission, hereinafter referred to as the Commission, which shall be attached to the
Department of Labor and Employment (DOLE) for policy and program coordination."
"Art. 121. Powers and Functions of the Commission. - The Commission shall have the following powers and
functions:
(a) To act as the national consultative and advisory body to the President of the Philippines and Congress on matters
relating to wages, incomes and productivity;
(b) To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise, industry
and national levels;
(c) To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity measures
at the regional, provincial or industry levels;
(d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine if these
are in accordance with prescribed guidelines and national development plans;
(e) To undertake studies, researches and surveys necessary for the attainment of its functions and objectives, and to
collect and compile data and periodically disseminate information on wages and productivity and other related
information, including, but not limited to, employment, cost-of-living, labor costs, investments and returns;
(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to determine whether
these are consistent with national development plans;
(g) To exercise technical and administrative supervision over the Regional Tripartite Wages and Productivity Boards;
(h) To call, from time to time, a national tripartite conference of representatives of government, workers and
employers for the consideration of measures to promote wage rationalization and productivity; and
(i) To exercise such powers and functions as may be necessary to implement this Act.
"The Commission shall be composed of the Secretary of Labor and Employment as ex-officio chairman, the
Director-General of the National Economic and Development Authority (NEDA) as ex-officio vice-chairman, and two
(2) members each from workers and employers sectors who shall be appointed by the President of the Philippines
upon recommendation of the Secretary of Labor and Employment to be made on the basis of the list of nominees
submitted by the workers and employers sectors, respectively, and who shall serve for a term of five (5) years. The
Executive Director of the Commission Secretariat shall also be a member of the Commission."
"The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two (2) Deputy
Directors, who shall be appointed by the President of the Philippines, upon recommendation of the Secretary of Labor
and Employment."
"The Executive Director shall have the same rank, salary, benefits and other emoluments as that of a Department
Assistant Secretary, while the Deputy Directors shall have the same rank, salary, benefits and other emoluments as
that of a Bureau Director. The members of the Commission representing labor and management shall have the same
rank, emoluments, allowances and other benefits as those prescribed by law for labor and management
representatives in the Employees' Compensation Commission."
"Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby created Regional
Tripartite Wages and Productivity Boards, hereinafter referred to as Regional Boards, in all regions, including
autonomous regions as may be established by law. The Commission shall determine the offices/headquarters of the
respective Regional Boards.
"The Regional Boards shall have the following powers and functions in their respective territorial jurisdiction:
(a) To develop plans, programs and projects relative to wages, incomes and productivity improvement for their
respective regions;
(b) To determine and fix minimum wage rates applicable in their region, provinces or industries therein and to issue
the corresponding wage orders, subject to guidelines issued by the Commission;
(c) To undertake studies, researches, and surveys necessary for the attainment of their functions, objectives and
programs, and to collect and compile data on wages, incomes, productivity and other related information and
periodically disseminate the same;
(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and intention of this Code;
(e) To receive, process and act on applications for exemption from prescribed wage rates as may be provided by law
or any Wage Order; and
(f) To exercise such other powers and functions as may be necessary to carry out their mandate under this Code.
"Implementation of the plans, programs and projects of the Regional Boards referred to in the second paragraph,
letter (a) of this Article, shall be through the respective regional offices of the Department of Labor and Employment
within their territorial jurisdiction; Provided, however, That the Regional Boards shall have technical supervision over
the regional office of the Department of Labor and Employment with respect to the implementation of said plans,
programs and projects.
"Each Regional Board shall be composed of the Regional Director of the Department of Labor and Employment as
chairman, the Regional Directors of the National Economic and Development Authority and Department of Trade and
Industry as vice-chairmen and two (2) members each from workers and employers sectors who shall be appointed by
the President of the Philippines, upon recommendation of the Secretary of Labor and Employment, to be made on the
basis of the list of nominees submitted by the workers and employers sectors, respectively, and who shall serve for a
term of five (5) years.
"Each Regional Board to be headed by its chairman shall be assisted by a Secretariat."
"Art. 123. Wage Order. - Whenever conditions in the region so warrant, the Regional Board shall investigate and
study all pertinent facts; and, based on the standards and criteria herein prescribed, shall proceed to determine
whether a Wage Order should be issued.
Any such Wage Order shall take effect after fifteen (15) days from its complete publication in at least one (l)
newspaper of general circulation in the region.
"In the performance of its wage-determining functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees' and employers' groups, provincial, city and municipal officials
and other interested parties.
"Any party aggrieved by the Wage Order issued by the Regional Board may appeal such order to the Commission
within ten (l0) calendar days from the publication of such order. It shall be mandatory for the Commission to decide
such appeal within sixty (60) calendar days from the filing thereof.
"The filing of the appeal does not operate to stay the order unless the person appealing such order shall file with
the Commission an undertaking with a surety or sureties satisfactory to the Commission for the payment to the
employees affected by the order of the corresponding increase, in the event such order is affirmed."
"Art. 124. Standards/Criteria for Minimum Wage Fixing. The regional minimum wages to be established by the
Regional Board shall be as nearly adequate as is economically feasible to maintain the minimum standards of living
necessary for the health, efficiency and general well-being of the employees within the framework of the national
economic and social development program. In the determination of such regional minimum wages, the Regional
Board shall, among other relevant factors, consider the following:
(a) The demand for living wages;
(b) Wage adjustment vis--vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of economic and social development.
"The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing minimum
wages in every region. These wages shall include wages varying with industries, provinces or localities if in the
judgment of the Regional Board conditions make such local differentiation proper and necessary to effectuate the
purpose of this Title.
"Any person, company, corporation, partnership or any other entity engaged in business shall file and register
annually with the appropriate Regional Board, Commission and the National Statistics Office an itemized listing of
their labor component, specifying the names of their workers and employees below the managerial level, including
learners, apprentices and disabled/handicapped workers who were hired under the terms prescribed in the
employment contracts, and their corresponding salaries and wages.
"Where the application of any prescribed wage increase by virtue of a law or Wage Order issued by any Regional
Board results in distortions of the wage structure within an establishment, the employer and the union shall negotiate
to correct the distortions. Any dispute arising from wage distortions shall be resolved through the grievance procedure
under their collective bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary arbitrator or panel of
voluntary arbitrators within ten (10) calendar days from the time said dispute was referred to voluntary arbitration.
"In cases where there are no collective agreements or recognized labor unions, the employers and workers shall
endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation
and Mediation Board and, if it remains unresolved after ten (10) calendar days of conciliation, shall be referred to the
appropriate branch of the National Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to
conduct continuous hearings and decide the dispute within twenty (20) calendar days from the time said dispute is
submitted for compulsory arbitration.
"The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any
increase in prescribed wage rates pursuant to the provisions of law or Wage Order.
"As used, herein, a wage distortion shall mean a situation where an increase in prescribed wage rates results in
the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and
among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage
structure based on skills, length of service, or other logical bases of differentiation.
"All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive
not less than the prescribed wage rates per eight (8) hours work a day, or a proportion thereof for working less than
eight (8) hours.
"All recognized learnership and apprenticeship agreements shall be considered automatically modified insofar as
their wage clauses are concerned to reflect the prescribed wage rates."
"Art. 126. Prohibition Against Injunction. - No preliminary or permanent injunction or temporary restraining order
may be issued by any court, tribunal or other entity against any proceedings before the Commission or the Regional
Boards."
"Art. 127. Non-Diminution of Benefits. - No Wage Order issued by any Regional Board shall provide for wage rates
lower than the statutory minimum wage rates prescribed by Congress."
Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all workers and employees in the
private sector, whether agricultural or non-agricultural, shall be increased by twenty-five pesos (P25.00) per day,
except that workers and employees in plantation agricultural enterprises outside of the National Capital Region (NCR)
with an annual gross sales of less than five million pesos (P5,000,000.00) in the preceding year shall be paid an
increase of twenty pesos (P20.00), and except further that workers and employees of cottage/handicraft industries,
non-plantation agricultural enterprises, retail/service establishments regularly employing not more than ten (10)
workers, and business enterprises with a capitalization of not more than five hundred thousand pesos (P500,000.00)
and employing not more than twenty (20) employees, which are located or operating outside the NCR, shall be paid
only an increase of fifteen pesos (P15.00): Provided, That those already receiving above the minimum wage rates up
to one hundred pesos (P100.00) shall also receive an increase of twenty-five pesos (P25.00) per day, and except that
the workers and employees mentioned in the first exception clause of this section shall also be paid only an increase
of twenty-pesos (P20.00), and except further that those employees enumerated in the second exception clause of
this Section shall also be paid only an increase of fifteen pesos (P15.00): Provide, further, That the appropriate
Regional Board is hereby authorized to grant additional increases to the workers and employees mentioned in the
exception clauses of this Section if, on the basis of its determination pursuant to Article 124 of the Labor Code such
increases are necessary.
(b) The increase of twenty-five pesos (P25.00) prescribed under this Section shall apply to all workers and
employees entitled to the same in private educational institutions as soon as they have increased or are granted
authority to increase their tuition fees during school year 1989-1990. Otherwise, such increase shall be so applicable
not later than the opening of the next school year beginning 1990.
(c) Exempted from the provisions of this Act are household or domestic helpers and persons employed in the
personal service of another, including family drivers.
Retail/service establishments regularly employing not more than ten (10) workers may be exempted from the
applicability of this Act upon application with and as determined by the appropriate Regional Board in accordance
with the applicable rules and regulations issued by the Commission. Whenever an application for exemption has
been duly filed with the appropriate Regional Board, action on any complaint for alleged non-compliance with this Act
shall be deferred pending resolution of the application for exemption by the appropriate Regional Board.
In the event that applications for exemptions are not granted, employees shall receive the appropriate
compensation due them as provided for by this Act plus interest of one percent (1%) per month retroactive to the
effectivity of this Act.
(d) If expressly provided for and agreed upon in the collective bargaining agreements, all increases in the daily
basic wage rates granted by the employers three (3) months before the effectivity of this Act shall be credited as
compliance with the increases in the wage rates prescribed herein, provided that, where such increases are less than
the prescribed increases in the wage rates under this Act, the employer shall pay the difference. Such increases shall
not include anniversary wage increases, merit wage increases and those resulting from the regularization or
promotion of employees.
Where the application of the increases in the wage rate under this Section results in distortions as defined under
existing laws in the wage structure within an establishment and gives rise to a dispute therein, such dispute shall first
be settled voluntarily between the parties and in the event of a deadlock, the same shall be finally resolved through
compulsory arbitration by the regional arbitration branch of the National Labor Relations Commission (NLRC) having
jurisdiction over the workplace.
It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute arising under this
Section within twenty(20) calendar days from the time said dispute is formally submitted to it for arbitration. The
pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of the increases in the
wage rates prescribed under this Section.
Sec. 5. Within a period of four (4) years from the effectivity of this Act and without prejudice to collective bargaining
negotiations or agreements or other employment contracts between employers and workers, new business
enterprises that may be established outside the NCR and export processing zones whose operation or investments
need initial assistance as may be determined by the Department of Labor and Employment in consultation with the
Department of Trade and Industry or the Department of Agriculture, as the case may be shall be exempt from the
application of this Act for not more than three (3) years from the start of their operations: Provided, That such new
business enterprises established in Region III (Central Luzon) and Region IV (Southern Tagalog) shall be exempt
from such increases only for two (2) years from the start of their operations, except those established in the Provinces
of Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon and Aurora, which shall enjoy
such exemption for not more than three (3) years from the start of their operations.
Sec. 6. In the case of contracts for construction projects and for security, janitorial and similar services, the
prescribed increases in the wage rates of the workers shall be borne by the principals or clients of the
construction/service contractors and the contract shall be deemed amended accordingly. In the event, however, that
the principal or client fails to pay the prescribed wage rates, the construction/service contractor shall be jointly and
severally liable with his principal or client.
Sec. 7. Upon written petition of the majority of the employees or workers concerned, all private establishments,
companies, businesses, and other entities with twenty five (25) or more employees and located within one (1)
kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees
through any of said banks and within the period for payment of wages fixed by Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the Philippines.
Sec. 8. Whenever applicable and upon request of a concerned worker or union, the bank shall issue a certification
of the record of payment of wages of a particular worker or workers for a particular payroll period.
Sec. 9. The Department of Labor and Employment shall conduct inspections as often as possible within its
manpower constraint of the payroll and other financial records kept by the company or business to determine whether
the workers are paid the prescribed wage rates and other benefits granted by law or any Wage Order. In unionized
companies, the Department of Labor and Employment inspectors shall always be accompanied by the president or
any responsible officer of the recognized bargaining unit of any interested union in the conduct of the inspection. In
non-unionized companies, establishments or businesses, the inspection shall be carried out in the presence of a
worker representing the workers in the said company. The workers' representative shall have the right to submit his
own findings to the Department of Labor and Employment and to testify on the same if he cannot concur with the
findings of the labor inspector.
Sec. 10. The funds necessary to carry out the provisions of this Act shall be taken from the Compensation and
Organizational Adjustment Fund, the Contingent Fund, and other savings under Republic Act No. 6688, otherwise
known as the General Appropriations Act of 1989, or from any unappropriated funds of the National Treasury:
Provided, That the funding requirements necessary to implement this Act shall be included in the annual General
Appropriations Act for the succeeding years.
Sec. 11. The National Wages Council created under Executive Order No. 614 and the National Productivity
Commission created under Executive Order No. 615 are hereby abolished. All properties, records, equipment,
buildings, facilities, and other assets, liabilities and appropriations of and belonging to the abovementioned offices, as
well as other matters pending therein, shall be transferred to the Commission. All personnel of the above abolished
offices shall continue to function in a holdover capacity and shall be preferentially considered for appointments to or
placement in the Commission.
Any official or employee separated from the service as a result of the abolition of offices pursuant to this Act shall
be entitled to appropriate separation pay and retirement and other benefits accruing to them under existing laws. In
lieu thereof, at the option of the employee, he shall be preferentially considered for employment in the government or
in any of its subdivisions, instrumentalities, or agencies, including government-owned or controlled corporations and
their subsidiaries.
Sec. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of
the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a
fine not exceeding twenty-five thousand pesos (P25,000.00) and/or imprisonment of not less than one (1) year nor
more than two (2) years: Provided, That any person convicted under this Act shall not be entitled to the benefits
provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty
of imprisonment shall be imposed upon the entity's responsible officers, including, but not limited to, the president,
vice president, chief executive officer, general manager, managing director or partner.
Sec. 13. The Secretary of Labor and Employment shall promulgate the necessary rules and regulations to
implement the provisions of this Act.
Sec. 14. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this
Act are hereby repealed, amended or modified accordingly. In any provision or part of this Act, or the application
thereof to any person or circumstance, is held invalid or unconstitutional, the remainder of this Act or the application
of such provision or part thereof to other persons or circumstances shall not be affected thereby.
Nothing in this Act shall be construed to reduce any existing wage rates, allowances and benefits of any form
under existing laws, decrees, issuances, executive orders, and/or under any contract or agreement between the
workers and employers.
Sec. 15. 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.
WAGE STUDIES, WAGE AGREEMENTS

AND WAGE DETERMINATION
ART. 120. Creation of National Wages and Productivity Commission. - There is hereby created a National Wages and Productivity
Commission, hereinafter referred to as the Commission, which shall be attached to the Department of Labor and Employment
(DOLE) for policy and program coordination. (As amended by Republic Act No. 6727, June 9, 1989).
ART. 121. Powers and functions of the Commission. - The Commission shall have the following powers and functions:
(a) To act as the national consultative and advisory body to the President of the Philippines and Congress on matters relating to
wages, incomes and productivity;
(b) To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise, industry and national
levels;
(c) To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity measures at the regional,
provincial, or industry levels;
(d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine if these are in
accordance with prescribed guidelines and national development plans;
(e) To undertake studies, researches and surveys necessary for the attainment of its functions and objectives, and to collect and
compile data and periodically disseminate information on wages and productivity and other related information, including, but not
limited to, employment, cost-of-living, labor costs, investments and returns;
(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to determine whether these are
consistent with national development plans;
(g) To exercise technical and administrative supervision over the Regional Tripartite Wages and Productivity Boards;chan robles
virtual law library
(h) To call, from time to time, a national tripartite conference of representatives of government, workers and employers for the
consideration of measures to promote wage rationalization and productivity; and
(i) To exercise such powers and functions as may be necessary to implement this Act.
The Commission shall be composed of the Secretary of Labor and Employment as ex-officio chairman, the Director-General of the
National Economic and Development Authority (NEDA) as ex-officio vice-chairman, and two (2) members each from workers and
employers sectors who shall be appointed by the President of the Philippines upon recommendation of the Secretary of Labor and
Employment to be made on the basis of the list of nominees submitted by the workers and employers sectors, respectively, and
who shall serve for a term of five (5) years. The Executive Director of the Commission shall also be a member of the Commission.
The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two (2) Deputy Directors, who shall
be appointed by the President of the Philippines, upon the recommendation of the Secretary of Labor and Employment.
The Executive Director shall have the same rank, salary, benefits and other emoluments as that of a Department Assistant
Secretary, while the Deputy Directors shall have the same rank, salary, benefits and other emoluments as that of a Bureau Director.
The members of the Commission representing labor and management shall have the same rank, emoluments, allowances and other
benefits as those prescribed by law for labor and management representatives in the Employees Compensation Commission. (As
amended by Republic Act No. 6727, June 9, 1989).
ART. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby created Regional Tripartite Wages and
Productivity Boards, hereinafter referred to as Regional Boards, in all regions, including autonomous regions as may be established
by law. The Commission shall determine the offices/headquarters of the respective Regional Boards.
The Regional Boards shall have the following powers and functions in their respective territorial jurisdictions:
(a) To develop plans, programs and projects relative to wages, incomes and productivity improvement for their respective regions;
(b) To determine and fix minimum wage rates applicable in their regions, provinces or industries therein and to issue the
corresponding wage orders, subject to guidelines issued by the Commission;
(c) To undertake studies, researches, and surveys necessary for the attainment of their functions, objectives and programs, and to
collect and compile data on wages, incomes, productivity and other related information and periodically disseminate the same;
(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and intention of this Code;
(e) To receive, process and act on applications for exemption from prescribed wage rates as may be provided by law or any Wage
Order; and
(f) To exercise such other powers and functions as may be necessary to carry out their mandate under this Code.
Implementation of the plans, programs, and projects of the Regional Boards referred to in the second paragraph, letter (a) of this
Article, shall be through the respective regional offices of the Department of Labor and Employment within their territorial
jurisdiction; Provided, however, That the Regional Boards shall have technical supervision over the regional office of the
Department of Labor and Employment with respect to the implementation of said plans, programs and projects.
Each Regional Board shall be composed of the Regional Director of the Department of Labor and Employment as chairman, the
Regional Directors of the National Economic and Development Authority and the Department of Trade and Industry as vice-
chairmen and two (2) members each from workers and employers sectors who shall be appointed by the President of the
Philippines, upon the recommendation of the Secretary of Labor and Employment, to be made on the basis of the list of nominees
submitted by the workers and employers sectors, respectively, and who shall serve for a term of five (5) years.
Each Regional Board to be headed by its chairman shall be assisted by a Secretariat. (As amended by Republic Act No. 6727, June
9, 1989).
ART. 123. Wage Order. - Whenever conditions in the region so warrant, the Regional Board shall investigate and study all pertinent
facts; and based on the standards and criteria herein prescribed, shall proceed to determine whether a Wage Order should be
issued. Any such Wage Order shall take effect after fifteen (15) days from its complete publication in at least one (1) newspaper of
general circulation in the region.
In the performance of its wage-determining functions, the Regional Board shall conduct public hearings/consultations, giving notices
to employees and employers groups, provincial, city and municipal officials and other interested parties.
Any party aggrieved by the Wage Order issued by the Regional Board may appeal such order to the Commission within ten (10)
calendar days from the publication of such order. It shall be mandatory for the Commission to decide such appeal within sixty (60)
calendar days from the filing thereof.
The filing of the appeal does not stay the order unless the person appealing such order shall file with the Commission, an
undertaking with a surety or sureties satisfactory to the Commission for the payment to the employees affected by the order of the
corresponding increase, in the event such order is affirmed. (As amended by Republic Act No. 6727, June 9, 1989).
ART. 124. Standards/Criteria for minimum wage fixing. - The regional minimum wages to be established by the Regional Board shall
be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency
and general well-being of the employees within the framework of the national economic and social development program. In the
determination of such regional minimum wages, the Regional Board shall, among other relevant factors, consider the following:
(a) The demand for living wages;
(b) Wage adjustment vis--vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of economic and social development.
The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing minimum wages in every
region. These wages shall include wages varying with industries, provinces or localities if in the judgment of the Regional Board,
conditions make such local differentiation proper and necessary to effectuate the purpose of this Title.
Any person, company, corporation, partnership or any other entity engaged in business shall file and register annually with the
appropriate Regional Board, Commission and the National Statistics Office, an itemized listing of their labor component, specifying
the names of their workers and employees below the managerial level, including learners, apprentices and disabled/handicapped
workers who were hired under the terms prescribed in the employment contracts, and their corresponding salaries and wages.
Where the application of any prescribed wage increase by virtue of a law or wage order issued by any Regional Board results in
distortions of the wage structure within an establishment, the employer and the union shall negotiate to correct the distortions. Any
dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement
and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing, such dispute shall be
decided by the voluntary arbitrators within ten (10) calendar days from the time said dispute was referred to voluntary arbitration.
In cases where there are no collective agreements or recognized labor unions, the employers and workers shall endeavor to correct
such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board and, if it
remains unresolved after ten (10) calendar days of conciliation, shall be referred to the appropriate branch of the National Labor
Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous hearings and decide the dispute within
twenty (20) calendar days from the time said dispute is submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any increase in prescribed
wage rates pursuant to the provisions of law or wage order.
As used herein, a wage distortion shall mean a situation where an increase in prescribed wage rates results in the elimination or
severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an
establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or
other logical bases of differentiation.
All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive not less than the
prescribed wage rates per eight (8) hours of work a day, or a proportion thereof for working less than eight (8) hours.
All recognized learnership and apprenticeship agreements shall be considered automatically modified insofar as their wage clauses
are concerned to reflect the prescribed wage rates. (As amended by Republic Act No. 6727, June 9, 1989).
ART. 125. Freedom to bargain. - No wage order shall be construed to prevent workers in particular firms or enterprises or industries
from bargaining for higher wages with their respective employers. (As amended by Republic Act No. 6727, June 9, 1989).
ART. 126. Prohibition against injunction. No preliminary or permanent injunction or temporary restraining order may be issued by
any court, tribunal or other entity against any proceedings before the Commission or the Regional Boards. (As amended by Republic
Act No. 6727, June 9, 1989).
ART. 127. Non-diminution of benefits. - No wage order issued by any regional board shall provide for wage rates lower than the
statutory minimum wage rates prescribed by Congress. (As amended by Republic Act No. 6727, June 9, 1989).
RULE IX
Wage Studies and Determination
SECTION 1. Definition of terms. (a) "Industry" shall mean any identifiable group of productive units or enterprises, whether
operated for profit or not, engaged in similar or allied economic activities in which individuals are gainfully employed.
(b) A "branch" of an industry is a work, product or service grouping thereof which can be considered a distinct division for wage-
fixing purposes.
(c) "Substantial number" shall mean such an appreciable number of employees in an industry as, in the Commission's opinion,
considering all relevant facts, may require action under Art. 121 of the Code to effectuate the purposes of wage determination,
regardless of the proportion of such employees to the total number of employees in the industry.
SECTION 2. Wage studies. The National Wages Council shall conduct a continuing study of wage rates and other economic
conditions in all industries, agricultural and non-agricultural. The results of such study shall be periodically disseminated to the
government, labor and management sectors for their information and guidance.
SECTION 3. Wages recommendation. If after such study, the Commission is of the opinion that a substantial number of
employees in any given industry or branch thereof are receiving wages, which although complying with the minimum provided by
law, are less than sufficient to maintain them in health, efficiency and general well-being, taking into account, among others, the
peculiar circumstances of the industry and its geographical location, the Commission shall, with the approval of the Secretary of
Labor and Employment, proceed to determine whether a wage recommendation should be issued.
SECTION 4. Criteria for wage fixing. (a) In addition to the criteria established by Art. 123 of the Code for minimum wage fixing,
the Commission shall consider, among other factors, social services and benefits given free to workers and the possible effect of a
given increase in the minimum wage on prices, money supply, employment, labor mobility and productivity, labor organization
efficacy, domestic and foreign trade, and other relevant indicators of social and economic development.
(b) Where a fair return to capital invested cannot be reasonably determined, or where the industry concerned is not operated for
profit, its capacity to pay, taking into account all resources available to it, shall be considered.
SECTION 5. Quorum. Three (3) members of the Commission, including its Chairman, shall constitute a quorum to transact the
Commission's business.
SECTION 6. Commission actions, number of votes required. The votes of at least three (3) members of the Commission shall be
necessary to effect any decision or recommendation it is authorized to issue under the Code and this rule: Provided, That in the
internal regulation and direction of the functions of the Commission's staff including the conduct of administrative processes and the
maintenance of proper liaison and coordination with other organizations, the Chairman shall not need the consent of the
Commission or any member thereof.
SECTION 7. Outside assistance. The Commission may call upon the assistance and cooperation of any government agency or
official, and may invite any private person or organization to furnish information in connection with industry studies and wage fixing
hearings or in aid of the Commission's deliberations.
SECTION 8. Schedule of hearings and notices. The Commission shall prepare a schedule of hearings for the reception of evidence
necessary for wage fixing in an industry, including a list of witnesses that it will invite and the date, time and place of the hearings.
A notice thereof to all sectors of the industry shall be given in the most expeditious manner. It may have prior consultations with
labor and management leaders in the industry for the above purpose.
SECTION 9. Unsolicited testimony. Persons who offer to testify before the Commission shall be heard only after the Commission
is satisfied, upon brief preliminary examination, that they are in possession of facts relevant to the subject of inquiry. The Chairman,
or in other cases, the person conducting the hearing, shall revise the schedule of hearings whenever necessary to achieve logical
sequence of testimony.
SECTION 10. Compulsory processes. Recourse to compulsory processes under the Revised Administrative Code to ensure the
attendance of witnesses and/or the production of relevant documentary evidence shall be used only on occasions of extreme
importance and after other means shall have failed, subject to the approval of the Secretary of Labor and Employment.
SECTION 11. Hearings; where, by whom conducted. Commission hearings may be conducted by the Commission en banc, or,
when authorized by the Commission, by any member or hearing officer designated by the Chairman. The hearings may be held
wherever the industry or branches thereof are situated; otherwise they shall be held in the Greater Manila Area. The hearings shall
be open to the public.
SECTION 12. Hearings before single member or hearing officer. Hearings conducted by a duly authorized member or hearing
officer shall be considered as hearings before the Commission. The records of such hearings shall be submitted to the Commission
as soon as they are completed, indicating the time and place of the hearings and the appearances thereat, together with a brief
statement of the findings and recommendations of the member or hearing officer concerned.
SECTION 13. Testimony under oath. The testimony of all witnesses shall be made under oath or affirmation and shall be taken
down and transcribed by a duly appointed stenographic reporter.
SECTION 14. Non-applicability of technical rules. The technical rules of evidence applied by the courts in proceedings at law or
equity shall not strictly apply in any proceedings conducted before the Commission.
SECTION 15. Stipulation of fact. Stipulations of fact may be admitted with respect to any matter at issue in the proceedings.
SECTION 16. Documentary evidence. Written evidence submitted to the Commission or any member or hearing officer shall be
properly marked to facilitate identification.
SECTION 17. Submission of industry-report. Within sixty (60) working days from the date of the first hearing, the Commission
shall submit to the Secretary of Labor and Employment an "Industry Report" which shall relate in brief the operations that led
thereto, the basic findings of economic facts about the industry and the recommendations made on the basis thereof.
SECTION 18. Action by the Secretary of Labor and Employment. Within thirty (30) working days after the submission of the
"Industry Report," the Secretary of Labor and Employment shall either reject or approve the recommendation of the Commission in
accordance with Art. 122 of the Code. If he approves the recommendation, he shall issue a Wage Order adopting the same, subject
to the approval of the President of the Philippines, prescribing the minimum wage or wages for the industry concerned.
SECTION 19. Wage Order. The Wage Order shall specify the industry or branch to which the minimum wages prescribed therein
shall apply; Provided, That no definite rates shall be prescribed for specific job titles in the industry.
SECTION 20. Varying minimum wages. To justify different minimum wages for different localities, the economic and other
conditions found in a particular locality must not only be more or less uniform therein but also different from those prevailing in
other localities.
SECTION 21. Publication of Wage Order. Only such portions of a Wage Order shall be published as shall effectively give notice to
all interested parties that such an Order has been issued, the industry affected, the minimum wages prescribed and the date of its
effectivity.
SECTION 22. Effectivity. A Wage Order shall become effective after fifteen (15) days from its publication as provided in Article
124 of the Code.
SECTION 23. Internal rules of the Commission. Subject to the approval of the Secretary of Labor and Employment, the National
Wages Council may issue rules and regulations governing its internal procedure.
a. Rationale for Wage Rationalization, RA 6727, Sec. 2
Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to promote productivity-
improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families; to guarantee the
rights of labor to its just share in the fruits of production; to enhance employment generation in the countryside through industry
dispersal; and to allow business and industry reasonable returns on investment, expansion and growth.
The State shall promote collective bargaining as the primary mode of setting wages and other terms and conditions of employment;
and, whenever necessary, the minimum wage rates shall be adjusted in a fair and equitable manner, considering existing regional
disparities in the cost of living and other socio-economic factors and the national economic and social development plans.
b. Agencies in Wage Fixing Machinery
1) National Wages and Productivity Commission, RA 6727, Sec. 3; Arts. 120, 121, 126
2) Regional Tripartite Wages and Productivity Board, RA 6727, Sec. 3; Arts. 122, 126
Nasipit Lumber Co. v. NLRC, 289 SCRA 667 (1998)

c. Standards/Criteria for Minimum Wage Fixing, RA 6727, Sec. 3; Art. 124
d. Wage Order, Arts. 123, 124
1) Methods of Fixing
a) Floor Wage method
b) Salary Ceiling Method
Employers Confederation of the Phil. V. National Wage and Productivity Commission, 201 SCRA 759 (1991)
2) Validity
Cagayan Sugar Milling Co. v. Secretary, DOLE, 284 SCRA 150 (1998)
3) Wage Distortion
Prubankers Association v. Prudential Bank & Trust Co., 302 SCRA 74 (1999)
3. Wage Payment and Protection
a. Form of Payment, Art. 202; Civil Code, Art. 1705; Rule VIII, Secs. 1, 2
ART. 202. Erroneous payment. - (a) If the System in good faith pays income benefit to a dependent who is inferior in right to
another dependent or with whom another dependent is entitled to share, such payments shall discharge the System from liability,
unless and until such other dependent notifies the System of his claim prior to the payments.
(b) In case of doubt as to the respective rights of rival claimants, the System is hereby empowered to determine as to whom
payments should be made in accordance with such regulations as the Commission may approve. If the money is payable to a minor
or incompetent, payment shall be made by the System to such person or persons as it may consider to be best qualified to take
care and dispose of the minors or incompetents property for his benefit.
NCC Art. 1705. The laborer's wages shall be paid in legal currency.
SECTION 1. Manner of wage payment. As a general rule, wages shall be paid in legal tender and the use of tokens, promissory
notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely prohibited even when expressly
requested by the employee.
SECTION 2. Payment by check. Payment of wages by bank checks, postal checks or money orders is allowed where such manner
of wage payment is customary on the date of the effectivity of the Code, where it is so stipulated in a collective agreement, or
where all of the following conditions are met:
(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;
(b) The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the
arrangement;
(c) The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be
considered as compensable hours worked if done during working hours; and
(d) The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing
the payment of wages by bank checks.
Congson v. NLRC, 243 SCRA 260 (1995)
b. Time of Payment, Art. 103, Sec. 3
ART. 103. Time of payment. - Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding
sixteen (16) days. If on account of force majeure or circumstances beyond the employers control, payment of wages on or within
the time herein provided cannot be made, the employer shall pay the wages immediately after such force majeure or circumstances
have ceased. No employer shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a task which cannot be completed in two (2) weeks shall be subject to
the following conditions, in the absence of a collective bargaining agreement or arbitration award:
(1) That payments are made at intervals not exceeding sixteen (16) days, in proportion to the amount of work completed;
(2) That final settlement is made upon completion of the work.
SECTION 3. Time of payment. (a) Wages shall be paid not less than once every two (2) weeks or twice a month at intervals not
exceeding sixteen (16) days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond
the employer's control in which case the employer shall pay the wages immediately after such force majeure or circumstances have
ceased.
(b) In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be made at
intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be made immediately
upon completion of the work.
c. Place of Payment, Art. 104, Sec. 4
SECTION 4. Place of payment. As a general rule, the place of payment shall be at or near the place of undertaking. Payment in a
place other than the work place shall be permissible only under the following circumstances:
(a) When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions, or
by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity rendering payment thereat
impossible;
(b) When the employer provides free transportation to the employees back and forth; and
(c) Under any other analogous circumstances; Provided, That the time spent by the employees in collecting their wages shall be
considered as compensable hours worked;
(d) No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall, or other
similar places or in places where games are played with stakes of money or things representing money except in the case of
persons employed in said places.
LC ART. 104. Place of payment. - Payment of wages shall be made at or near the place of undertaking, except as otherwise
provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater
protection of wages.
See: Labor Advisory on Payment of Salaries Thru Automated Teller Machines (ATM)
d. Person to Pay, Art. 105, Secs. 5, 6
SECTION 5. Direct payment of wages. Payment of wages shall be made direct to the employee entitled thereto except in the
following cases:
(a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family;
(b) Where payment to another person of any part of the employee's wages is authorized by existing law, including payments for the
insurance premiums of the employee and union dues where the right to check-off has been recognized by the employer in
accordance with a collective agreement or authorized in writing by the individual employees concerned; or
(c) In case of death of the employee as provided in the succeeding Section.
SECTION 6. Wages of deceased employee. The payment of the wages of a deceased employee shall be made to his heirs
without the necessity of intestate proceedings. When the heirs are of age, they shall execute an affidavit attesting to their
relationship to the deceased and the fact that they are his heirs to the exclusion of all other persons. In case any of the heirs is a
minor, such affidavit shall be executed in his behalf by his natural guardian or next of kin. Upon presentation of the affidavit to the
employer, he shall make payment to the heirs as representative of the Secretary of Labor and Employment.
ART. 105. Direct payment of wages. - Wages shall be paid directly to the workers to whom they are due, except:
(a) In cases of force majeure rendering such payment impossible or under other special circumstances to be determined by the
Secretary of Labor and Employment in appropriate regulations, in which case, the worker may be paid through another person
under written authority given by the worker for the purpose; or
(b) Where the worker has died, in which case, the employer may pay the wages of the deceased worker to the heirs of the latter
without the necessity of intestate proceedings. The claimants, if they are all of age, shall execute an affidavit attesting to their
relationship to the deceased and the fact that they are his heirs, to the exclusion of all other persons. If any of the heirs is a minor,
the affidavit shall be executed on his behalf by his natural guardian or next-of-kin. The affidavit shall be presented to the employer
who shall make payment through the Secretary of Labor and Employment or his representative. The representative of the Secretary
of Labor and Employment shall act as referee in dividing the amount paid among the heirs. The payment of wages under this Article
shall absolve the employer of any further liability with respect to the amount paid.
Bermiso v. Escano, Inc., 105 Phil. 231 (1959)
4. Wage Prohibitions
a. Wage Interference in Disposal of Wages, Art. 112; Rule VIII, Sec. 9
a. Wage Interference in Disposal of Wages, Art. 112; Rule VIII, Sec. 9
ART. 112. Non-interference in disposal of wages. - No employer shall limit or otherwise interfere with the freedom of any employee
to dispose of his wages. He shall not in any manner force, compel, or oblige his employees to purchase merchandise, commodities
or other property from any other person, or otherwise make use of any store or services of such employer or any other person.
SECTION 9. Labor-only contracting. (a) Any person who undertakes to supply workers to an employer shall be deemed to be
engaged in labor-only contracting where such person:
(1) Does not have substantial capital or investment in the form of tools, equipment, machineries, work premises and other
materials; and
(2) The workers recruited and placed by such person are performing activities which are directly related to the principal business or
operations of the employer in which workers are habitually employed.
(b) Labor-only contracting as defined herein is hereby prohibited and the person acting as contractor shall be considered merely as
an agent or intermediary of the employer who shall be responsible to the workers in the same manner and extent as if the latter
were directly employed by him.
(c) For cases not falling under this Rule, the Secretary of Labor and Employment shall determine through appropriate orders
whether or not the contracting out of labor is permissible in the light of the circumstances of each case and after considering the
operating needs of the employer and the rights of the workers involved. In such case, he may prescribe conditions and restrictions
to insure the protection and welfare of the workers.
b. Wage Deduction, Art. 113; Rule VIII, Sec. 10
ART. 113. Wage deduction. - No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages
of his employees, except:
(a) In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for
the amount paid by him as premium on the insurance;
(b) For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or
authorized in writing by the individual worker concerned; and
(c) In cases where the employer is authorized by law or regulations issued by the Secretary of Labor and Employment.
SECTION 10. Payment of wages in case of bankruptcy. Unpaid wages earned by the employees before the declaration of
bankruptcy or judicial liquidation of the employer's business shall be given first preference and shall be paid in full before other
creditors may establish any claim to a share in the assets of the employer.
Apodaca v. NLRC, 172 SCRA 442 (1989)
c. Requirement to make Deposits for Loss or Damage, Art. Arts. 114, 115; Rule VIII, Sec. 11
ART. 114. Deposits for loss or damage. - No employer shall require his worker to make deposits from which deductions shall be
made for the reimbursement of loss of or damage to tools, materials, or equipment supplied by the employer, except when the
employer is engaged in such trades, occupations or business where the practice of making deductions or requiring deposits is a
recognized one, or is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate rules and
regulations.
ART. 115. Limitations. - No deduction from the deposits of an employee for the actual amount of the loss or damage shall be
made unless the employee has been heard thereon, and his
SECTION 11. Attorney's fees. Attorney's fees in any judicial or administrative proceedings for the recovery of wages shall not
exceed 10 percent of the amount awarded. The fees may be deducted from the total amount due the winning party responsibility
has been clearly shown.
Dentech Manufacturing Corp. NLRC, 172 SCRA 588 (1989)

Five J Taxi v. NLRC, 235 SCRA 556 (1994)
e. Withholding of Wages, Art. 116; Civil Code, Art. 1706
ART. 116. Withholding of wages and kickbacks prohibited. - It shall be unlawful for any person, directly or indirectly, to withhold
any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by
any other means whatsoever without the workers consent.
NCC Art. 1706. Withholding of the wages, except for a debt due, shall not be made by the employer.
f. Deduction to Ensure Employment, Art. 117
ART. 117. Deduction to ensure employment. - It shall be unlawful to make any deduction from the wages of any employee for the
benefit of the employer or his representative or intermediary as consideration of a promise of employment or retention in
employment.
g. Retaliatory Measures, Art. 118
ART. 118. Retaliatory measures. - It shall be unlawful for an employer to refuse to pay or reduce the wages and benefits, discharge
or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has
testified or is about to testify in such proceedings.
h. False Reporting, Art. 119; Rule X, Sec. 13

ART. 119. False reporting. - It shall be unlawful for any person to make any statement, report, or record filed or kept pursuant to
the provisions of this Code knowing such statement, report or record to be false in any material respect.
SECTION 13. False reporting. It shall be unlawful for any employer or any person to make any false statement, report or record
on matters required to be kept or maintained pursuant to the provisions of this Rule.
i. Keeping of Employees Records in a Place other than the Workplace
South Motorists Enterprises v. Tosoc, 181 SCRA 386 (1990)
j. Garnishment/Execution, Civil Code, Art. 1708
NCC Art. 1708. The laborer's wages shall not be subject to execution or attachment, except for debts incurred for food, shelter,
clothing and medical attendance.
GAA v. Court of Appeals, 140 SCRA 304 (1985)
Special Steel Corp. v. Villareal, 434 SCRA 19 (2004)

5. Work Preference in the Event of Bankruptcy, Art. 110; Book III, Rule VIII, Sec. 7; civil Code, Arts. 1207, 2241 (6), 2242
(3), 2244 (2)
LC ART. 110. Worker preference in case of bankruptcy. - In the event of bankruptcy or liquidation of an employers business, his
workers shall enjoy first preference as regards their wages and other monetary claims, any provisions of law to the contrary
notwithstanding. Such unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors
may be paid. (As amended by Section 1, Republic Act No. 6715, March 21, 1989).
IRR SECTION 7. Civil liability of employer and contractors. Every employer or indirect employer shall be jointly and severally
liable with his contractor or sub-contractor for the unpaid wages of the employees of the latter. Such employer or indirect employer
may require the contractor or sub-contractor to furnish a bond equal to the cost of labor under contract on condition that the bond
will answer for the wages due the employees should the contractor or subcontractor, as the case may be, fail to pay the same.
NCC Art. 2241. With reference to specific movable property of the debtor, the following claims or liens shall be preferred:
(6) Claims for laborers' wages, on the goods manufactured or the work done; xxx
Art. 2242. With reference to specific immovable property and real rights of the debtor, the following claims, mortgages and liens
shall be preferred, and shall constitute an encumbrance on the immovable or real right:
(3) Claims of laborers, masons, mechanics and other workmen, as well as of architects, engineers and contractors, engaged in the
construction, reconstruction or repair of buildings, canals or other works, upon said buildings, canals or other works; xxx
Art. 2244. With reference to other property, real and personal, of the debtor, the following claims or credits shall be preferred in the
order named:
(2) Credits for services rendered the insolvent by employees, laborers, or household helpers for one year preceding the
commencement of the proceedings in insolvency; xxx
Art. 1207. The concurrence of two or more creditors or of two or more debtors in one and the same obligation does not imply that
each one of the former has a right to demand, or that each one of the latter is bound to render, entire compliance with the
prestation. There is a solidary liability only when the obligation expressly so states, or when the law or the nature of the obligation
requires solidarity. (1137a)
Republic v. Peralta, 150 SCRA 37 (1987)

Manila Banking Corp. v. NLRC, 279 SCRA 602, 621-642 (1997)
6. Wage Recovery/Jurisdiction, arts. 128, 129, 217, 111; Book III, Rule X, Secs. 1-5
ART. 128. Visitorial and enforcement power. - (a) The Secretary of Labor and Employment or his duly authorized representatives,
including labor regulation officers, shall have access to employers records and premises at any time of the day or night whenever
work is being undertaken therein, and the right to copy therefrom, to question any employee and investigate any fact, condition or
matter which may be necessary to determine violations or which may aid in the enforcement of this Code and of any labor law,
wage order or rules and regulations issued pursuant thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and in cases where the relationship of
employer-employee still exists, the Secretary of Labor and Employment or his duly authorized representatives shall have the power
to issue compliance orders to give effect to the labor standards provisions of this Code and other labor legislation based on the
findings of labor employment and enforcement officers or industrial safety engineers made in the course of inspection. The
Secretary or his duly authorized representatives shall issue writs of execution to the appropriate authority for the enforcement of
their orders, except in cases where the employer contests the findings of the labor employment and enforcement officer and raises
issues supported by documentary proofs which were not considered in the course of inspection. (As amended by Republic Act No.
7730, June 2, 1994).
An order issued by the duly authorized representative of the Secretary of Labor and Employment under this Article may be appealed
to the latter. In case said order involves 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 Secretary of Labor and Employment in the
amount equivalent to the monetary award in the order appealed from. (As amended by Republic Act No. 7730, June 2, 1994).
(c) The Secretary of Labor and Employment may likewise order stoppage of work or suspension of operations of any unit or
department of an establishment when non-compliance with the law or implementing rules and regulations poses grave and
imminent danger to the health and safety of workers in the workplace. Within twenty-four hours, a hearing shall be conducted to
determine whether an order for the stoppage of work or suspension of operations shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay the employees concerned their salaries or wages during the period of such
stoppage of work or suspension of operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the orders of the
Secretary of Labor and Employment or his duly authorized representatives issued pursuant to the authority granted under this
Article, and no inferior court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement orders issued in accordance with this Article.
(e) Any government employee found guilty of violation of, or abuse of authority, under this Article shall, after appropriate
administrative investigation, be subject to summary dismissal from the service.
(f) The Secretary of Labor and Employment may, by appropriate regulations, require employers to keep and maintain such
employment records as may be necessary in aid of his visitorial and enforcement powers under this Code.
ART. 129. Recovery of wages, simple money claims and other benefits. - Upon complaint of any interested party, the Regional
Director of the Department of Labor and Employment or any of the duly authorized hearing officers of the Department is
empowered, through summary proceeding and after due notice, to hear and decide any matter involving the recovery of wages and
other monetary claims and benefits, including legal interest, owing to an employee or person employed in domestic or household
service or househelper under this Code, arising from employer-employee relations: Provided, That such complaint does not include
a claim for reinstatement: Provided further, That the aggregate money claims of each employee or househelper does not exceed
Five thousand pesos (P5,000.00). The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30)
calendar days from the date of the filing of the same. Any sum thus recovered on behalf of any employee or househelper pursuant
to this Article shall be held in a special deposit account by, and shall be paid on order of, the Secretary of Labor and Employment or
the Regional Director directly to the employee or househelper concerned. Any such sum not paid to the employee or househelper
because he cannot be located after diligent and reasonable effort to locate him within a period of three (3) years, shall be held as a
special fund of the Department of Labor and Employment to be used exclusively for the amelioration and benefit of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on the same
grounds provided in Article 223 of this Code, within five (5) calendar days from receipt of a copy of said decision or resolution, to
the National Labor Relations Commission which shall resolve the appeal within ten (10) calendar days from the submission of the
last pleading required or allowed under its rules.chan robles virtual law library
The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid wages and
other monetary claims and benefits, including legal interest, found owing to any employee or househelper under this Code. (As
amended by Section 2, Republic Act No. 6715, March 21, 1989).
ART. 217. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as otherwise provided under this Code, the Labor
Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the
case by the parties for decision without extension, even in the absence of stenographic notes, the following cases involving all
workers, whether agricultural or non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work
and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality of strikes and lockouts; and
6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other claims arising from
employer-employee relations, including those of persons in domestic or household service, involving an amount exceeding five
thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.
(c) Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from the
interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the same to the
grievance machinery and voluntary arbitration as may be provided in said agreements. (As amended by Section 9, Republic Act No.
6715, March 21, 1989).
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.
SECTION 1. Visitorial power. The Secretary of Labor and Employment or his duly authorized representatives, including Labor
Regulations Officers or Industrial Safety Engineers, shall have access to employer's records and premises at any time of the day or
night whenever work is being undertaken therein, and right to copy therefrom, to question any employee, and to investigate any
fact, condition or matter relevant to the enforcement of any provision of the Code and of any labor law, wage order or rules and
regulations issued pursuant thereto.
SECTION 2. Enforcement power. (a) The Regional Director in cases where employer relations shall exist, shall have the power to
order and administer, after due notice and hearing, compliance with the labor standards provisions of the Code and other labor
legislations based on the findings of the Labor Regulation Officers or Industrial Safety Engineers (Labor Standard and Welfare
Officer) and made in the course of inspection, and to issue writs of execution to the appropriate authority of the enforcement of his
order. In line with the provisions of Article 128 in relation to Articles 289 and 290 of the Labor Code as amended in cases, however,
where the employer contests the findings of the Labor Standards and Welfare Officers and raises issues which cannot be resolved
without considering evidentiary matters that are not verifiable in the normal course of inspection, the Regional Director concerned
shall indorse the case to the appropriate arbitration branch of the National Labor Relations Commission for adjudication.
(b) The Regional Director shall give the employer fifteen (15) days within which to comply with his order before issuing a writ of
execution. Copy of such order or writ of execution shall immediately be furnished the Secretary of Labor and Employment.
SECTION 3. Enforcement power on health and safety of workers. (a) The Regional Director may likewise order stoppage of work
or suspension of operations of any unit or department of an establishment when non-compliance with the law, safety order or
implementing rules and regulations poses grave and imminent danger to the health and safety of workers in the workplace.
(b) Within 24 hours from issuance of the order of stoppage or suspension, a hearing shall be conducted to determine whether the
order for the stoppage of work or suspension of operation shall be lifted or not. The proceedings shall be terminated within
seventy-two (72) hours and a copy of such order or resolution shall be immediately furnished the Secretary of Labor and
Employment. In case the violation is attributable to the fault of the employer, he shall pay the employees concerned their salaries or
wages during the period of such stoppage of work or suspension of operation.
SECTION 4. Power to review. (a) The Secretary of Labor and Employment, at his own initiative or upon request of the employer
and/or employee, may review the order of the Regional Director. The order of the Regional Director shall be immediately final and
executory unless stayed by the Secretary of Labor and Employment upon posting by the employer of a reasonable cash or surety
bond as fixed by the Regional Director.
(b) In aid of his power of review, the Secretary of Labor and Employment may direct the Bureau of Working Conditions to evaluate
the findings or orders of the Regional Director. The decision of the Secretary of Labor and Employment shall be final and executory.
SECTION 5. Interference and injunctions prohibited. It shall be unlawful for any person or entity to obstruct, impede, delay or
otherwise render ineffective the exercise of the enforcement power of the Secretary of Labor and Employment, Regional Director or
their duly authorized representatives pursuant to the authority granted by the Code and its implementing rules and regulations, and
no inferior court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over
any case involving the enforcement orders issued in accordance with the Code. In addition to the penalties provided for by the
Labor Code, any government employees found guilty of violation or abuse of authority, shall be subject to the provisions of
Presidential Decree No. 6.
Cirineo Bowling Plaza v. Gerry Sensing, supra
San Miguel Corporation v. Court of Appeals, supra

Guico v. Sec. of Labor, 298 SCRA 667 (1998)
H. Thirteenth Month Pay
1. History of the Law
Dentech Mfg. Corp. v. NLRC, supra
2. Coverage
Archilles Manufacturing Corp. v, NLRC, 244 SCRA 750 (1995)
Ultra Villa Food Haus v. Geniston, 309 SCRA 17 (1999)

3. Rationale, PD 851, Whereas Clauses and LImitations
WHEREAS, it is necessary to further protect the level of real wages from the ravage of worldwide inflation;
WHEREAS, there has been no increase in the legal minimum wage rates since 1970;
WHEREAS, the Christmas season is an opportune time for society to show its concern for the plight of the working masses so they
may properly celebrate Christmas and New Year.
Section 1. All employers are hereby required to pay all their employees receiving a basic salary of not more than P1,000 a month,
regardless of the nature of their employment, a 13th-month pay not later than December 24 of every year.
Sec. 2. Employers already paying their employees a 13th-month pay or its equivalent are not covered by this Decree.
4. Amount and Date of Payment
a. Basic Wage/Commissions
Boie Takeda v. Dela Serna, Supra

Iran v. NLRC, supra
Honda Philippines Inc. v. Samahan ng Malayang Manggagawa sa Honda, 460 SCRA 186 (2005)
b. Substitute Payment
Framanlis Farms, Inc. v. NLRC, 171 SCRA 87 (1989)

c. 14th Month Pay
Kamaya Port Hotel v. NLRC, 177 SCRA 160 (1989)
d. Diminution
Davao Fruits Corp. v. Associated Labor Unions, supra
I. Bonus
1. Nature
Philippine Duplicators Inc. v. NLRC, 241 SCRA 380 (1995)

2. Definition; When Demandable
Marcos v. NLRC, 248 SCRA 146 (1995)
Business Information Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993)Philippine Appliance Corp. v.
Court of Appeals, 430 SCRA 525 (2004)
American Wire and Cable Daily Rated Employees Union v. American Wire and Cable Co., Inc., 457 SCRA
684 (2005)
J. Working Conditions for Special Group of Workers
1. Women, Arts. 130-138; Omnibus Rules, Book III, Rule XII, Sec. 1; Constitution, Arts. II, Sec. 13 & XIII, Sec. 14;
Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), Arts. 11-13; ILO Convention Nos. 100 & 111
Chapter I
EMPLOYMENT OF WOMEN
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 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
(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.
ART. 132. Facilities for women. - The 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:
(a) 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;
(b) To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women;
(c) To establish a nursery in a workplace for the benefit of the women employees therein; and
(d) To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those
of flight attendants and the like.
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.
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.
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.
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).
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.
ART. 137. Prohibited acts. - (a) 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.
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 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.
RULE XII
Employment of Women and Minors
SECTION 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.
Constitution Art. II, Section 13. The State recognizes the vital role of the youth in nation-building 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.
ARTICLE XIII WOMEN

Section 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.
CEDAW
Article 11
1. States Parties shall take all appropriate measures to eliminate discrimination against women in the field of
employment in order to ensure, on a basis of equality of men and women, the same rights, in particular:
(a) The right to work as an inalienable right of all human beings;
(b) The right to the same employment opportunities, including the application of the same criteria for selection in
matters of employment;
(c) The right to free choice of profession and employment, the right to promotion, job security and all benefits and
conditions of service and the right to receive vocational training and retraining, including apprenticeships, advanced
vocational training and recurrent training;
(d) The right to equal remuneration, including benefits, and to equal treatment in respect of work of equal value, as
well as equality of treatment in the evaluation of the quality of work;
(e) The right to social security, particularly in cases of retirement, unemployment, sickness, invalidity and old age and
other incapacity to work, as well as the right to paid leave;
(f) The right to protection of health and to safety in working conditions, including the safeguarding of the function of
reproduction.
2. In order to prevent discrimination against women on the grounds of marriage or maternity and to ensure their
effective right to work, States Parties shall take appropriate measures:
(a) To prohibit, subject to the imposition of sanctions, dismissal on the grounds of pregnancy or of maternity leave
and discrimination in dismissals on the basis of marital status;
(b) To introduce maternity leave with pay or with comparable social benefits without loss of former employment,
seniority or social allowances;
(c) To encourage the provision of the necessary supporting social services to enable parents to combine family
obligations with work responsibilities and participation in public life, in particular through promoting the establishment
and development of a network of child-care facilities;
(d) To provide special protection to women during pregnancy in types of work proved to be harmful to them.
3. Protective legislation relating to matters covered in this article shall be reviewed periodically in the light of scientific
and technological knowledge and shall be revised, repealed or extended as necessary.
Article 12
1. States Parties shall take all appropriate measures to eliminate discrimination against women in the field of health
care in order to ensure, on a basis of equality of men and women, access to health care services, including those
related to family planning.
2. Notwithstanding the provisions of paragraph I of this article, States Parties shall ensure to women appropriate
services in connection with pregnancy, confinement and the post-natal period, granting free services where
necessary, as well as adequate nutrition during pregnancy and lactation.
Article 13
States Parties shall take all appropriate measures to eliminate discrimination against women in other areas of
economic and social life in order to ensure, on a basis of equality of men and women, the same rights, in particular:
(a) The right to family benefits;
(b) The right to bank loans, mortgages and other forms of financial credit;
(c) The right to participate in recreational activities, sports and all aspects of cultural life.
C100 Equal Remuneration Convention, 1951
Convention concerning Equal Remuneration for Men and Women Workers for Work of Equal Value (Note: Date of coming into force:
23:05:1953.)
Convention:C100
Place:Geneva
Session of the Conference:34
Date of adoption:29:06:1951
Subject classification: Equal Remuneration
Subject classification: Women
Subject: Equality of Opportunity and Treatment
The General Conference of the International Labour Organisation,
Having been convened at Geneva by the Governing Body of the International Labour Office, and having met in its Thirty-fourth
Session on 6 June 1951, and
Having decided upon the adoption of certain proposals with regard to the principle of equal remuneration for men and women
workers for work of equal value, which is the seventh item on the agenda of the session, and
Having determined that these proposals shall take the form of an international Convention,
adopts this twenty-ninth day of June of the year one thousand nine hundred and fifty-one the following Convention, which may be
cited as the Equal Remuneration Convention, 1951:
Article 1
For the purpose of this Convention--

(a) the term remuneration includes the ordinary, basic or minimum wage or salary and any additional emoluments whatsoever
payable directly or indirectly, whether in cash or in kind, by the employer to the worker and arising out of the worker's employment;
(b) the term equal remuneration for men and women workers for work of equal value refers to rates of remuneration
established without discrimination based on sex.
Article 2
1. Each Member shall, by means appropriate to the methods in operation for determining rates of remuneration, promote and, in so
far as is consistent with such methods, ensure the application to all workers of the principle of equal remuneration for men and
women workers for work of equal value.
2. This principle may be applied by means of--
(a) national laws or regulations;
(b) legally established or recognised machinery for wage determination;
(c) collective agreements between employers and workers; or
(d) a combination of these various means.
Article 3
1. Where such action will assist in giving effect to the provisions of this Convention measures shall be taken to promote objective
appraisal of jobs on the basis of the work to be performed.
2. The methods to be followed in this appraisal may be decided upon by the authorities responsible for the determination of rates of
remuneration, or, where such rates are determined by collective agreements, by the partes thereto.
3. Differential rates between workers which correspond, without regard to sex, to differences, as determined by such objective
appraisal, in the work to be performed shall not be considered as being contrary to the principle of equal remuneration for men and
women workers for work of equal value.
Article 4
Each Member shall co-operate as appropriate with the employers' and workers' organisations concerned for the purpose of giving
effect to the provisions of this Convention.
Article 5
The formal ratifications of this Convention shall be communicated to the Director-General of the International Labour Office for
registration.
Article 6
1. This Convention shall be binding only upon those Members of the International Labour Organisation whose ratifications have
been registered with the Director-General.
2. It shall come into force twelve months after the date on which the ratifications of two Members have been registered with the
Director-General.
3. Thereafter, this Convention shall come into force for any Member twelve months after the date on which its ratification has been
registered.
Article 7
1. Declarations communicated to the Director-General of the International Labour Office in accordance with paragraph 2 of Article
35 of the Constitution of the International Labour Organisation shall indicate --
a) the territories in respect of which the Member concerned undertakes that the provisions of the Convention shall be applied
without modification;
b) the territories in respect of which it undertakes that the provisions of the Convention shall be applied subject to modifications,
together with details of the said modifications;
c) the territories in respect of which the Convention is inapplicable and in such cases the grounds on which it is inapplicable;
d) the territories in respect of which it reserves its decision pending further consideration of the position.
2. The undertakings referred to in subparagraphs (a) and (b) of paragraph 1 of this Article shall be deemed to be an integral part of
the ratification and shall have the force of ratification.
3. Any Member may at any time by a subsequent declaration cancel in whole or in part any reservation made in its original
declaration in virtue of subparagraph (b), (c) or (d) of paragraph 1 of this Article.
4. Any Member may, at any time at which the Convention is subject to denunciation in accordance with the provisions of Article 9,
communicate to the Director-General a declaration modifying in any other respect the terms of any former declaration and stating
the present position in respect of such territories as it may specify.
Article 8
1. Declarations communicated to the Director-General of the International Labour Office in accordance with paragraph 4 or 5 of
Article 35 of the Constitution of the International Labour Organisation shall indicate whether the provisions of the Convention will be
applied in the territory concerned without modification or subject to modifications; when the declaration indicates that the
provisions of the Convention will be applied subject to modifications, it shall give details of the said modifications.
2. The Member, Members or international authority concerned may at any time by a subsequent declaration renounce in whole or in
part the right to have recourse to any modification indicated in any former declaration.
3. The Member, Members or international authority concerned may, at any time at which this Convention is subject to denunciation
in accordance with the provisions of Article 9, communicate to the Director-General a declaration modifying in any other respect the
terms of any former declaration and stating the present position in respect of the application of the Convention.
Article 9
1. A Member which has ratified this Convention may denounce it after the expiration of ten years from the date on which the
Convention first comes into force, by an act communicated to the Director-General of the International Labour Office for
registration. Such denunciation shall not take effect until one year after the date on which it is registered.
2. Each Member which has ratified this Convention and which does not, within the year following the expiration of the period of ten
years mentioned in the preceding paragraph, exercise the right of denunciation provided for in this Article, will be bound for another
period of ten years and, thereafter, may denounce this Convention at the expiration of each period of ten years under the terms
provided for in this Article.
Article 10
1. The Director-General of the International Labour Office shall notify all Members of the International Labour Organisation of the
registration of all ratifications, declarations and denunciations communicated to him by the Members of the Organisation.
2. When notifying the Members of the Organisation of the registration of the second ratification communicated to him, the Director-
General shall draw the attention of the Members of the Organisation to the date upon which the Convention will come into force.
Article 11
The Director-General of the International Labour Office shall communicate to the Secretary-General of the United Nations for
registration in accordance with Article 102 of the Charter of the United Nations full particulars of all ratifications, declarations and
acts of denunciation registered by him in accordance with the provisions of the preceding articles.
Article 12
At such times as may consider necessary the Governing Body of the International Labour Office shall present to the General
Conference a report on the working of this Convention and shall examine the desirability of placing on the agenda of the
Conference the question of its revision in whole or in part.
Article 13
1. Should the Conference adopt a new Convention revising this Convention in whole or in part, then, unless the new Convention
otherwise provides--
a) the ratification by a Member of the new revising Convention shall ipso jure involve the immediate denunciation of this
Convention, notwithstanding the provisions of Article 9 above, if and when the new revising Convention shall have come into force;
b) as from the date when the new revising Convention comes into force this Convention shall cease to be open to ratification by the
Members.
2. This Convention shall in any case remain in force in its actual form and content for those Members which have ratified it but have
not ratified the revising Convention.
Article 14
The English and French versions of the text of this Convention are equally authoritative.
C111 Discrimination (Employment and Occupation) Convention, 1958
Convention concerning Discrimination in Respect of Employment and Occupation (Note: Date of coming into force: 15:06:1960.)
Convention:C111
Place:Geneva
Subject classification: Non-discrimination (Employment and Occupation)
Subject classification: Women
Subject: Equality of Opportunity and Treatment
The General Conference of the International Labour Organisation,
Having been convened at Geneva by the Governing Body of the International Labour Office, and having met in its Forty-second
Session on 4 June 1958, and
Having decided upon the adoption of certain proposals with regard to discrimination in the field of employment and occupation,
which is the fourth item on the agenda of the session, and
Having determined that these proposals shall take the form of an international Convention, and
Considering that the Declaration of Philadelphia affirms that all human beings, irrespective of race, creed or sex, have the right to
pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and
equal opportunity, and
Considering further that discrimination constitutes a violation of rights enunciated by the Universal Declaration of Human Rights,
adopts this twenty-fifth day of June of the year one thousand nine hundred and fifty-eight the following Convention, which may be
cited as the Discrimination (Employment and Occupation) Convention, 1958:
Article 1
1. For the purpose of this Convention the term discrimination includes--
(a) any distinction, exclusion or preference made on the basis of race, colour, sex, religion, political opinion, national extraction or
social origin, which has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation;
(b) such other distinction, exclusion or preference which has the effect of nullifying or impairing equality of opportunity or treatment
in employment or occupation as may be determined by the Member concerned after consultation with representative employers'
and workers' organisations, where such exist, and with other appropriate bodies.
2. Any distinction, exclusion or preference in respect of a particular job based on the inherent requirements thereof shall not be
deemed to be discrimination.
3. For the purpose of this Convention the terms employment and occupation include access to vocational training, access to
employment and to particular occupations, and terms and conditions of employment.
Article 2
Each Member for which this Convention is in force undertakes to declare and pursue a national policy designed to promote, by
methods appropriate to national conditions and practice, equality of opportunity and treatment in respect of employment and
occupation, with a view to eliminating any discrimination in respect thereof.
Article 3
Each Member for which this Convention is in force undertakes, by methods appropriate to national conditions and practice--
(a) to seek the co-operation of employers' and workers' organisations and other appropriate bodies in promoting the acceptance
and observance of this policy;
(b) to enact such legislation and to promote such educational programmes as may be calculated to secure the acceptance and
observance of the policy;
(c) to repeal any statutory provisions and modify any administrative instructions or practices which are inconsistent with the policy;
(d) to pursue the policy in respect of employment under the direct control of a national authority;
(e) to ensure observance of the policy in the activities of vocational guidance, vocational training and placement services under the
direction of a national authority;
(f) to indicate in its annual reports on the application of the Convention the action taken in pursuance of the policy and the results
secured by such action.
Article 4
Any measures affecting an individual who is justifiably suspected of, or engaged in, activities prejudicial to the security of the State
shall not be deemed to be discrimination, provided that the individual concerned shall have the right to appeal to a competent body
established in accordance with national practice.
Article 5
1. Special measures of protection or assistance provided for in other Conventions or Recommendations adopted by the International
Labour Conference shall not be deemed to be discrimination.
2. Any Member may, after consultation with representative employers' and workers' organisations, where such exist, determine that
other special measures designed to meet the particular requirements of persons who, for reasons such as sex, age, disablement,
family responsibilities or social or cultural status, are generally recognised to require special protection or assistance, shall not be
deemed to be discrimination.
Article 6
Each Member which ratifies this Convention undertakes to apply it to non-metropolitan territories in accordance with the provisions
of the Constitution of the International Labour Organisation.
Article 7
The formal ratifications of this Convention shall be communicated to the Director-General of the International Labour Office for
registration.
Article 8
1. This Convention shall be binding only upon those Members of the International Labour Organisation whose ratifications have
been registered with the Director-General.
2. It shall come into force twelve months after the date on which the ratifications of two Members have been registered with the
Director-General.
3. Thereafter, this Convention shall come into force for any Member twelve months after the date on which its ratification has been
registered.
Article 9
1. A Member which has ratified this Convention may denounce it after the expiration of ten years from the date on which the
Convention first comes into force, by an act communicated to the Director-General of the International Labour Office for
registration. Such denunciation shall not take effect until one year after the date on which it is registered.
2. Each Member which has ratified this Convention and which does not, within the year following the expiration of the period of ten
years mentioned in the preceding paragraph, exercise the right of denunciation provided for in this Article, will be bound for another
period of ten years and, thereafter, may denounce this Convention at the expiration of each period of ten years under the terms
provided for in this Article.
Article 10
1. The Director-General of the International Labour Office shall notify all Members of the International Labour Organisation of the
registration of all ratifications and denunciations communicated to him by the Members of the Organisation.
2. When notifying the Members of the Organisation of the registration of the second ratification communicated to him, the Director-
General shall draw the attention of the Members of the Organisation to the date upon which the Convention will come into force.
Article 11
The Director-General of the International Labour Office shall communicate to the Secretary-General of the United Nations for
registration in accordance with Article 102 of the Charter of the United Nations full particulars of all ratifications and acts of
denunciation registered by him in accordance with the provisions of the preceding Articles.
Article 12
At such times as it may consider necessary the Governing Body of the International Labour Office shall present to the General
Conference a report on the working of this Convention and shall examine the desirability of placing on the agenda of the
Conference the question of its revision in whole or in part.
Article 13
1. Should the Conference adopt a new Convention revising this Convention in whole or in part, then, unless the new Convention
otherwise provides:
a) the ratification by a Member of the new revising Convention shall ipso jure involve the immediate denunciation of this
Convention, notwithstanding the provisions of Article 9 above, if and when the new revising Convention shall have come into force;
b) as from the date when the new revising Convention comes into force, this Convention shall cease to be open to ratification by
the Members.
2. This Convention shall in any case remain in force in its actual form and content for those Members which have ratified it but have
not ratified the revising Convention.
Article 14
a. Equality: Formal Equality vs. Substantive Equality
Readings:
Bartlett, Katharine, Gender Law, in Duke Journal of Gender Law and Policy (1994)
Formal Equality and Substantive Equality in the Textbook on Gender and the Law by Angela Harris
Baldoz, Rosalinda, Job discrimination against women in the work environment: the Philippine setting, PLR,
Vol. 24, No. 1 (2000).
b. Women under the Constitution, Art. II, Sec. 14; Art XIII, Sec 14
Philippine Association of Service Exporters v. Drilon, 163 SCRA 386 (1988)

Phil. Telegraph and Telephone Co. v. NLRC, 272 SCRA 596 (1997)
c. Coverage, Rule XII, Sec. I
Employment of Women and Minors
SECTION 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.
d. Prohibited Acts
1) Night Work/Exception, Art. 130-131
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 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
(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.
9) Discrimination, Art. 135
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.
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).
10) Stipulation Against Marriage, Art. 136
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.
Duncan Association of Detailman PTGWO v. Glaxo Wellcome Philippines, Inc., 438 SCRA 343 (2004)
11) Discharge on Account of Pregnancy, Art. 137
ART. 137. Prohibited acts. - (a) 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.
d. Facilities, Art. 132, 134
ART. 132. Facilities for women. - The 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:
(a) 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;
(b) To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women;
(c) To establish a nursery in a workplace for the benefit of the women employees therein; and
(d) To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those
of flight attendants and the like.
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.
e. Special Women Workers, 138
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 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.
f. Maternity Leave, Social Security Law of 1997 (RA 1161, as amended by RA 8282), Sec. 14-A, RA 828
"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) monthly contributions in the twelve-month
period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one
hundred percent (100%) of her average daily salary credit for sixty (60) days or seventy-eight (78) days in case of caesarian
delivery, subject to the following conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall
be transmitted to the SSS in accordance with the rules and regulations it may provide;
"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application;
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same
period for which daily maternity benefits have been received;
"(d) That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits
advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for
her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy,
the employer shall pay to the SSS damages equivalent to the benefits which said employee member would otherwise have been
entitled to.
g. Sexual Harassment (RA 7877)
AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN THE EMPLOYMENT, EDUACATION OR

TRAINING ENVIRONMENT, AND FOR OTHER PURPOSES
Section 1. Title. This Act shall be known as the "Anti-Sexual Harassment Act of 1995."
Sec. 2. Declaration of Policy. The State shall value the dignity of every individual, enhance the development of
it 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.
Sec. 3. Work, Education or Training-related Sexual Harassment Defined. Work, education or training-related
sexual harassment is committed by an 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, conditions, promotions,
or privileges; or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which
in a way would discriminate, deprive or diminish employment opportunities or otherwise adversely affect said
employee;
(2) The above acts would impair the employees 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 considerations; 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.
Sec.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 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 the jointly approved by the
employees or students or trainees, through their duly designated representatives, prescribing the procedure for the
investigation or 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 section (a) shall include, among others, guidelines on
proper decorum in the workplace and educational or training institutions.
(c) Create a committee on decorum and investigation of cases on sexual harassment. The committee shall
conduct meetings, as the case may be, with other 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 the 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, teachers, instructors, professors or coaches and students or
trainees, as the case maybe.
"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.
Sec. 5. Liability of the Employer, Head of Office, Educational or Training Institution. The employer or head of
office, educational training institution shall be solidarily liable for damage 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 thereon.
Sec. 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.
Sec. 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 provision of this Act shall prescribe in three (3) years.
Sec. 8. Separability Clause If any portion or provision of this Act is declared void and unconstitutional, the
remaining portions or provisions hereof shall not be affected by such declaration.
Sec.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.
Sec.10. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete publication in at least
two (2) national newspaper of general circulation.
Libres v. NLRC, 307 SCRA 675 (1999)
Philippine Aelous Automotive United Corp. v. NLRC, 331SCRA 237 (2000)

Renato S. Gatbonton v. NLRC, et al., 479 SCRA 416 (2006)
2. Minors
Reference: Art.s 139-140; Omnibus Rules, Book III, Rule XII, Secs. 2-3; Special Protection of Children Act of 2003 (RA
7610, as amended by RA 9231); ILO Convention No.182 and ILO Recommendation No. 190
EMPLOYMENT OF MINORS
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.
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.
SECTION 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.
SECTION 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.

Metro Manila
Twelfth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand three.
Republic Act No. 9231 December 19, 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 REPUBLIC ACTNO.
7610, AS AMENDED, OTHERWISE KNOWN AS THE "SPECIAL PROTECTION OF CHILDREN AGAINST CHILD
ABUSE, EXPLOITATION AND DISCRIMINATION ACT"
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
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. 2. 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. 2-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."
"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 semi-annual 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 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."
"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."
"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;
"(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 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.
"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.
C182 Worst Forms of Child Labour Convention, 1999
Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour
(Note: Date of coming into force: 19:11:2000)
Convention:C182
Place:Geneva
Subject classification: Elimination of Child Labour
Subject classification: Children and Young Persons
Subject: Elimination of Child Labour and Protection of Children and Young Persons
The General Conference of the International Labour Organization,
Having been convened at Geneva by the Governing Body of the International Labour Office, and having met in its
87th Session on 1 June 1999, and
Considering the need to adopt new instruments for the prohibition and elimination of the worst forms of child labour,
as the main priority for national and international action, including international cooperation and assistance, to
complement the Convention and the Recommendation concerning Minimum Age for Admission to Employment,
1973, which remain fundamental instruments on child labour, and
Considering that the effective elimination of the worst forms of child labour requires immediate and comprehensive
action, taking into account the importance of free basic education and the need to remove the children concerned
from all such work and to provide for their rehabilitation and social integration while addressing the needs of their
families, and
Recalling the resolution concerning the elimination of child labour adopted by the International Labour Conference at
its 83rd Session in 1996, and
Recognizing that child labour is to a great extent caused by poverty and that the long-term solution lies in sustained
economic growth leading to social progress, in particular poverty alleviation and universal education, and
Recalling the Convention on the Rights of the Child adopted by the United Nations General Assembly on 20
November 1989, and
Recalling the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, adopted by the
International Labour Conference at its 86th Session in 1998, and
Recalling that some of the worst forms of child labour are covered by other international instruments, in particular the
Forced Labour Convention, 1930, and the United Nations Supplementary Convention on the Abolition of Slavery, the
Slave Trade, and Institutions and Practices Similar to Slavery, 1956, and
Having decided upon the adoption of certain proposals with regard to child labour, which is the fourth item on the
agenda of the session, and
Having determined that these proposals shall take the form of an international Convention;
adopts this seventeenth day of June of the year one thousand nine hundred and ninety-nine the following
Convention, which may be cited as the Worst Forms of Child Labour Convention, 1999.
Article 1
Each Member which ratifies this Convention shall take immediate and effective measures to secure the prohibition
and elimination of the worst forms of child labour as a matter of urgency.
Article 2
For the purposes of this Convention, the term child shall apply to all persons under the age of 18.
Article 3
For the purposes of this Convention, the term the worst forms of child labour comprises:
(a) all forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and
serfdom and forced or compulsory labour, including forced or compulsory recruitment of children for use in armed
conflict;
(b) the use, procuring or offering of a child for prostitution, for the production of pornography or for pornographic
performances;
(c) the use, procuring or offering of a child for illicit activities, in particular for the production and trafficking of drugs as
defined in the relevant international treaties;
(d) work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or
morals of children.
Article 4
1. The types of work referred to under Article 3(d) shall be determined by national laws or regulations or by the
competent authority, after consultation with the organizations of employers and workers concerned, taking into
consideration relevant international standards, in particular Paragraphs 3 and 4 of the Worst Forms of Child Labour
Recommendation, 1999.
2. The competent authority, after consultation with the organizations of employers and workers concerned, shall
identify where the types of work so determined exist.
3. The list of the types of work determined under paragraph 1 of this Article shall be periodically examined and
revised as necessary, in consultation with the organizations of employers and workers concerned.
Article 5
Each Member shall, after consultation with employers' and workers' organizations, establish or designate appropriate
mechanisms to monitor the implementation of the provisions giving effect to this Convention.
Article 6
1. Each Member shall design and implement programmes of action to eliminate as a priority the worst forms of child
labour.
2. Such programmes of action shall be designed and implemented in consultation with relevant government
institutions and employers' and workers' organizations, taking into consideration the views of other concerned groups
as appropriate.
Article 7
1. Each Member shall take all necessary measures to ensure the effective implementation and enforcement of the
provisions giving effect to this Convention including the provision and application of penal sanctions or, as
appropriate, other sanctions.
2. Each Member shall, taking into account the importance of education in eliminating child labour, take effective and
time-bound measures to:
(a) prevent the engagement of children in the worst forms of child labour;
(b) provide the necessary and appropriate direct assistance for the removal of children from the worst forms of child
labour and for their rehabilitation and social integration;
(c) ensure access to free basic education, and, wherever possible and appropriate, vocational training, for all children
removed from the worst forms of child labour;
(d) identify and reach out to children at special risk; and
(e) take account of the special situation of girls.
3. Each Member shall designate the competent authority responsible for the implementation of the provisions giving
effect to this Convention.
Article 8
Members shall take appropriate steps to assist one another in giving effect to the provisions of this Convention
through enhanced international cooperation and/or assistance including support for social and economic
development, poverty eradication programmes and universal education.
Article 9
The formal ratifications of this Convention shall be communicated to the Director-General of the International Labour
Office for registration.
Article 10
1. This Convention shall be binding only upon those Members of the International Labour Organization whose
ratifications have been registered with the Director-General of the International Labour Office.
2. It shall come into force 12 months after the date on which the ratifications of two Members have been registered
with the Director-General.
3. Thereafter, this Convention shall come into force for any Member 12 months after the date on which its ratification
has been registered.
Article 11
1. A Member which has ratified this Convention may denounce it after the expiration of ten years from the date on
which the Convention first comes into force, by an act communicated to the Director-General of the International
Labour Office for registration. Such denunciation shall not take effect until one year after the date on which it is
registered.
2. Each Member which has ratified this Convention and which does not, within the year following the expiration of the
period of ten years mentioned in the preceding paragraph, exercise the right of denunciation provided for in this
Article, will be bound for another period of ten years and, thereafter, may denounce this Convention at the expiration
of each period of ten years under the terms provided for in this Article.
Article 12
1. The Director-General of the International Labour Office shall notify all Members of the International Labour
Organization of the registration of all ratifications and acts of denunciation communicated by the Members of the
Organization.
2. When notifying the Members of the Organization of the registration of the second ratification, the Director-General
shall draw the attention of the Members of the Organization to the date upon which the Convention shall come into
force.
Article 13
The Director-General of the International Labour Office shall communicate to the Secretary-General of the United
Nations, for registration in accordance with article 102 of the Charter of the United Nations, full particulars of all
ratifications and acts of denunciation registered by the Director-General in accordance with the provisions of the
preceding Articles.
Article 14
At such times as it may consider necessary, the Governing Body of the International Labour Office shall present to
the General Conference a report on the working of this Convention and shall examine the desirability of placing on
the agenda of the Conference the question of its revision in whole or in part.
Article 15
1. Should the Conference adopt a new Convention revising this Convention in whole or in part, then, unless the new
Convention otherwise provides --
(a) the ratification by a Member of the new revising Convention shall ipso jure involve the immediate denunciation of
this Convention, notwithstanding the provisions of Article 11 above, if and when the new revising Convention shall
have come into force;
(b) as from the date when the new revising Convention comes into force, this Convention shall cease to be open to
ratification by the Members.
2. This Convention shall in any case remain in force in its actual form and content for those Members which have
ratified it but have not ratified the revising Convention.
Article 16
R190 Worst Forms of Child Labour Recommendation, 1999
Recommendation concerning the prohibition and immediate action for the elimination of the worst forms of child
labour
Place:Geneva
Subject classification: Elimination of Child Labour
Subject classification: Children and Young Persons
Subject: Elimination of Child Labour and Protection of Children and Young Persons
The General Conference of the International Labour Organization,
Having been convened at Geneva by the Governing Body of the International Labour Office, and having met in its
Eighty-seventh Session on 1 June 1999, and
Having adopted the Worst Forms of Child Labour Convention, 1999, and
Having decided upon the adoption of certain proposals with regard to child labour, which is the fourth item on the
agenda of the session, and
Having determined that these proposals shall take the form of a Recommendation supplementing the Worst Forms of
Child Labour Convention, 1999;
adopts this seventeenth day of June of the year one thousand nine hundred and ninety-nine the following
Recommendation, which may be cited as the Worst Forms of Child Labour Recommendation, 1999.
1. The provisions of this Recommendation supplement those of the Worst Forms of Child Labour Convention, 1999
(hereafter referred to as "the Convention"), and should be applied in conjunction with them.
I. Programmes of action
2. The programmes of action referred to in Article 6 of the Convention should be designed and implemented as a
matter of urgency, in consultation with relevant government institutions and employers' and workers' organizations,
taking into consideration the views of the children directly affected by the worst forms of child labour, their families
and, as appropriate, other concerned groups committed to the aims of the Convention and this Recommendation.
Such programmes should aim at, inter alia:
(a) identifying and denouncing the worst forms of child labour;
(b) preventing the engagement of children in or removing them from the worst forms of child labour, protecting them
from reprisals and providing for their rehabilitation and social integration through measures which address their
educational, physical and psychological needs;
(c) giving special attention to:

(i) younger children;
(ii) the girl child;
(iii) the problem of hidden work situations, in which girls are at special risk;
(iv) other groups of children with special vulnerabilities or needs;
(d) identifying, reaching out to and working with communities where children are at special risk;
(e) informing, sensitizing and mobilizing public opinion and concerned groups, including children and their families.
II. Hazardous work
3. In determining the types of work referred to under Article 3(d) of the Convention, and in identifying where they
exist, consideration should be given, inter alia, to:
(a) work which exposes children to physical, psychological or sexual abuse;
(b) work underground, under water, at dangerous heights or in confined spaces;
(c) work with dangerous machinery, equipment and tools, or which involves the manual handling or transport of heavy
loads;
(d) work in an unhealthy environment which may, for example, expose children to hazardous substances, agents or
processes, or to temperatures, noise levels, or vibrations damaging to their health;
(e) 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.
4. For the types of work referred to under Article 3(d) of the Convention and Paragraph 3 above, national laws or
regulations or the competent authority could, after consultation with the workers' and employers' organizations
concerned, authorize employment or work as from the age of 16 on condition that the health, safety and morals of the
children concerned are fully protected, and that the children have received adequate specific instruction or vocational
training in the relevant branch of activity.
III. Implementation
5. (1) Detailed information and statistical data on the nature and extent of child labour should be compiled and kept
up to date to serve as a basis for determining priorities for national action for the abolition of child labour, in particular
for the prohibition and elimination of its worst forms as a matter of urgency.
(2) As far as possible, such information and statistical data should include data disaggregated by sex, age group,
occupation, branch of economic activity, status in employment, school attendance and geographical location. The
importance of an effective system of birth registration, including the issuing of birth certificates, should be taken into
account.
(3) Relevant data concerning violations of national provisions for the prohibition and elimination of the worst forms of
child labour should be compiled and kept up to date.
6. The compilation and processing of the information and data referred to in Paragraph 5 above should be carried out
with due regard for the right to privacy.
7. The information compiled under Paragraph 5 above should be communicated to the International Labour Office on
a regular basis.
8. Members should establish or designate appropriate national mechanisms to monitor the implementation of national
provisions for the prohibition and elimination of the worst forms of child labour, after consultation with employers' and
workers' organizations.
9. Members should ensure that the competent authorities which have responsibilities for implementing national
provisions for the prohibition and elimination of the worst forms of child labour cooperate with each other and
coordinate their activities.
10. National laws or regulations or the competent authority should determine the persons to be held responsible in
the event of non-compliance with national provisions for the prohibition and elimination of the worst forms of child
labour.
11. Members should, in so far as it is compatible with national law, cooperate with international efforts aimed at the
prohibition and elimination of the worst forms of child labour as a matter of urgency by:
(a) gathering and exchanging information concerning criminal offences, including those involving international
networks;
(b) detecting and prosecuting those involved in the sale and trafficking of children, or in the use, procuring or offering
of children for illicit activities, for prostitution, for the production of pornography or for pornographic performances;
(c) registering perpetrators of such offences.
12. Members should provide that the following worst forms of child labour are criminal offences:
(a) all forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage and
serfdom and forced or compulsory labour, including forced or compulsory recruitment of children for use in armed
conflict;
(b) the use, procuring or offering of a child for prostitution, for the production of pornography or for pornographic
performances; and
(c) the use, procuring or offering of a child for illicit activities, in particular for the production and trafficking of drugs as
defined in the relevant international treaties, or for activities which involve the unlawful carrying or use of firearms or
other weapons.
13. Members should ensure that penalties including, where appropriate, criminal penalties are applied for violations of
the national provisions for the prohibition and elimination of any type of work referred to in Article 3(d) of the
Convention.
14. Members should also provide as a matter of urgency for other criminal, civil or administrative remedies, where
appropriate, to ensure the effective enforcement of national provisions for the prohibition and elimination of the worst
forms of child labour, such as special supervision of enterprises which have used the worst forms of child labour, and,
in cases of persistent violation, consideration of temporary or permanent revoking of permits to operate.
15. Other measures aimed at the prohibition and elimination of the worst forms of child labour might include the
following:
(a) informing, sensitizing and mobilizing the general public, including national and local political leaders,
parliamentarians and the judiciary;
(b) involving and training employers' and workers' organizations and civic organizations;
(c) providing appropriate training for the government officials concerned, especially inspectors and law enforcement
officials, and for other relevant professionals;
(d) providing for the prosecution in their own country of the Member's nationals who commit offences under its
national provisions for the prohibition and immediate elimination of the worst forms of child labour even when these
offences are committed in another country;
(e) simplifying legal and administrative procedures and ensuring that they are appropriate and prompt;
(f) encouraging the development of policies by undertakings to promote the aims of the Convention;
(g) monitoring and giving publicity to best practices on the elimination of child labour;
(h) giving publicity to legal or other provisions on child labour in the different languages or dialects;
(i) establishing special complaints procedures and making provisions to protect from discrimination and reprisals
those who legitimately expose violations of the provisions of the Convention, as well as establishing helplines or
points of contact and ombudspersons;
(j) adopting appropriate measures to improve the educational infrastructure and the training of teachers to meet the
needs of boys and girls;
(k) as far as possible, taking into account in national programmes of action:
(i) the need for job creation and vocational training for the parents and adults in the families of children working in the
conditions covered by the Convention; and
(ii) the need for sensitizing parents to the problem of children working in such conditions.
16. Enhanced international cooperation and/or assistance among Members for the prohibition and effective
elimination of the worst forms of child labour should complement national efforts and may, as appropriate, be
developed and implemented in consultation with employers' and workers' organizations. Such international
cooperation and/or assistance should include:
(a) mobilizing resources for national or international programmes;
(b) mutual legal assistance;
(c) technical assistance including the exchange of information;
(d) support for social and economic development, poverty eradication programmes and universal education.
a. Minors under the Constitution, Art. II, Sec. 13
Section 13. The State recognizes the vital role of the youth in nation-building 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.
b. Coverage, RA 9231, Sec. 2, par. 3 on Sec. 12; Book III, Rule XII, Sec. 1
(See Above)
c. Employment of Children, Art. 139; RA 7610, Sec. 12-16; DOLE Memo Circular No. 2, S 1998 Re; Hazardous
and Non-Hazardous Establishments
RA 7610
ARTICLE VIII
Working 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
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.
d. Hours of Work, RA 9231, Sec. 3 on Sec. 12-a
e. Prohibitions Against Worst Forms of Child Labor, Sec. 3 on Sec. 12-d; Sec 5 on sec. 14
f. Discrimination, Art. 140
g. Jurisdiction, Sec. 9 on Sec. 16-A

Reading:
Del Rosario and Bonga, Issues and Gaps Governing Child Labor, in Child Labor in the Philippines, A Review of
Selected Studies and Policy Papers, pp. 178-183 (2000).
3. Househelpers/Caregivers
Reference: Arts. 141-152; Omnibus Rules, Book III, Rule XIII
Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 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.
ART. 143. Minimum wage. - (a) Househelpers shall be paid the following minimum wage rates:
(1) 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;
(2) Six hundred fifty pesos (P650.00) a month for those in other chartered cities and first-class municipalities; and
(3) 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).
ART. 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.
ART. 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.
ART. 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.
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.
ART. 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.
ART. 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.
ART. 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.
ART. 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.
RULE XIII
Employment of Househelpers
SECTION 1. General statement on coverage. (a) The provisions of this Rule shall apply to all househelpers whether employed on
full or part-time basis.
(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.
SECTION 2. Method of payment not determinant. The provisions of this Rule shall apply irrespective of the method of payment of
wages agreed upon by the employer and househelper, whether it be hourly, daily, weekly, or monthly, or by piece or output basis.
SECTION 3. Children of househelpers. The children and relatives of a househelper who live under the employer's roof and who
share the accommodations provided for the househelpers by the employer shall not be deemed as househelpers if they are not
otherwise engaged as such and are not required to perform any substantial household work.
SECTION 4. Employment contract. The initial contract for household service shall not last for more than two (2) years. However,
such contract may be renewed from year to year.
SECTION 5. Minimum monthly wage. The minimum compensation of househelpers shall not be less than the following rates:
(a) Sixty pesos (P60.00) a month for those employed in the cities of Manila, Quezon, Pasay and Caloocan, and in the municipalities
of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas, Malabon, Paraaque, Las Pias, Pasig and Marikina, in the Province of
Rizal.
(b) Forty-five pesos (P45.00) a month for those employed in other chartered cities and first class municipalities; and
(c) Thirty pesos (P30.00) a month for those in other municipalities.
SECTION 6. Equivalent daily rate. The equivalent minimum daily wage rate of househelpers shall be determined by dividing the
applicable minimum monthly rate by thirty (30) days.
SECTION 7. Payment by results. Where the method of payment of wages agreed upon by the employer and the househelper is
by piece or output basis, the piece or output rates shall be such as will assure the househelper of the minimum monthly or the
equivalent daily rate as provided in this issuance.
SECTION 8. Minimum cash wage. The minimum wage rates prescribed under this Rule shall be basic cash wages which shall be
paid to the househelpers in addition to lodging, food and medical attendance.
SECTION 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.
SECTION 10. 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 and non-agricultural workers.
SECTION 11. 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 such education shall be part of the househelper's
compensation, unless there is a stipulation to the contrary.
SECTION 12. Treatment of househelpers. The employer shall treat the househelper in a just and humane manner. In no case
shall physical violence be inflicted upon the househelper.
SECTION 13. Board, lodging and medical attendance. The employer shall furnish the househelper free suitable and sanitary living
quarters as well as adequate food and medical attendance.
SECTION 14. Indemnity for unjust termination of service. If the period for 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.
SECTION 15. Employment certification. Upon the severance of the household service relationship, the househelper may demand
from the employer a written statement of the nature and duration of the service and his or her efficiency and conduct as
househelper.
SECTION 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.
SECTION 17. Disposition of the househelper's body. Unless so desired by the househelper or by his or her guardian with court
approval, the transfer or use of the body of the deceased househelper for purposes other than burial is prohibited. When so
authorized by the househelper, the transfer, use and disposition of the body shall be in accordance with the provisions of Republic
Act No. 349.
SECTION 18. Employment records. 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.
SECTION 19. Prohibited reduction of pay. When the compensation of the househelper before the promulgation of these
regulations is higher than that prescribed in the Code and in this issuance, the same shall not be reduced or diminished by the
employer on or after said date.
SECTION 20. Relation to other laws and agreements. Nothing in this Rule shall deprive a househelper of the right to seek higher
wages, shorter working hours and better working conditions than those prescribed herein, nor justify an employer in reducing any
benefit or privilege granted to the househelper under existing laws, agreements or voluntary employer practices with terms more
favorable to the househelpers than those prescribed in this Rule.
a. Definition, Rule XIII, Sec. 1 (b)
(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.
b. Coverage, Art. 141
c. Non-Household Work, Art. 145
Apex Mining Co. NLRC, 196 SCRA 251 (1991)
e. Conditions of Employment, Arts. 121-152; Civil Code, Arts. 1689-1699
ART. 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.
ART. 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. 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.
Art. 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.
Art. 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.
Art. 1692. No contract for household service shall last for more than two years. However, such contract may be renewed from year
to year.
Art. 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.
Art. 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.
Art. 1695. House helper 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.
Art. 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.
Art. 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.
Art. 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.
Art. 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.
3. Homeworkers
a. Coverage and Regulation, Arts. 153-155; DO 5, DOLE, 4 Feb. 1992, now Book III, Rule XIV
ART. 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 homeworkers and field personnel and the industries employing them.
ART. 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.
ART. 155. Distribution of homework. - For purposes of this Chapter, the "employer" of homeworkers includes
any 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, sub-contractor 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
directions; or
(2) 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.
RULE XIV
Employment of Homeworkers
SECTION 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.
SECTION 2. Definitions. As used in this Rule, the following terms shall have the meanings indicated hereunder:
(a) "Home" means any room, house, apartment, or other premises used regularly, in whole or in part, as a dwelling place, except
those situated within the premises or compound of an employer, contractor, and the work performed therein is under the active or
personal supervision by, or for, the latter.
(b) "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, sub-contractor; or any other person:
(1) Delivers or causes to be delivered any goods or articles to be processed 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 or articles 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.
(c) "Contractor" or "sub-contractor" means any person who, for the account or benefit of an employer, delivers or caused 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.
(d) "Processing" means manufacturing, fabricating, finishing, repairing, altering, packing, wrapping or handling any material.
SECTION 3. Payment for work. (a) Immediately upon receipt of the finished goods or articles, the employer shall pay the
homeworker or the contractor or sub-contractor, as the case may be, for the work performed; Provided, However, that where
payment is made to a contractor or sub-contractor, the homeworker shall be paid within the week after the contractor or sub-
contractor has collected the goods or articles from the homeworkers.
(b) The Secretary of Labor and Employment shall from time to time establish the standard minimum piece or output rate in
appropriate orders for the particular work or processing to be performed by the homeworkers.
SECTION 4. Deductions. No employee, contractor, or sub-contractor 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 employee 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 damages; 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.
SECTION 5. Conditions for payment of work. (a) The employer may require the homeworker to re-do work which has been
improperly executed without having to pay the stipulated rate more than once.
(b) An employer, contractor, or sub-contractor 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.
SECTION 6. Disagreement between homeworkers and employer. In cases of disagreement between the homeworker and the
employer, contractor or sub-contractor on matters falling under Section 4 (a), 5 and 6 of this Rule, either party may refer the case
to the Regional Office having jurisdiction over 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 unappealable.
SECTION 7. Liability of employer and contractor. 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 sub-contractor shall be paid in accordance with the provisions of this Rule. In the event that such
contractor or sub-contractor 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 sub-contractor to the workers of the latter, to the 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.
b. Definition, DO 5, Sec. 2, DO 5
c. Registration, Secs. 4-6
d. Conditions of Employment/Deductions, Secs. 6-9
f. Joint and Several Liability of Employer/Contractor, Sec. 11
g. Prohibitions, Sec. 13
h. Enforcement, Sec. 10
NOTES:
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K. Mental, Dental and Occupational Safety
Reference: Art. 156-165; Omnibus Rules, Book IV, Rule I, Secs. 1-10; Rule II, Secs. 1-!0
1. Coverage, Rule I, Sec. 1
2. First Aid Treatment, Art. 156
3. Emergency Medical and Dental Services
a. When Required, Art. 157
b. When Not Required, Art. 158
4. Employer assistance, Art. 161

5. Occupational Safety and Health Standards, Training of
Supervisor/Technician
a. When Required, Rule II, Secs. 5 (a) (d)
b. When Not Required, Rule II, Sec. 5 (e)
6. Enforcement/DOLE Obligations, Arts. 162-165
Note: Arts. 166-208: repealed by SSS Law of 1997 (RA 1161, as amended); Re: Art. 209, see National Health Insurance
act of 1995 (RA 7875); Book IV, Rule II, Sec. 8
L. Employee Classification
1. Coverage, Art. 278
2. Employer Recognition
Philippine Federation of Credit Cooperatives, Inc. v. NLRC, 300 SCRA 72 (1998)

Pangilinan v. General Milling corp., 434 SCRA 159 (2004)
3. Employer Determination/Designation
De Leon v. NLRC, 176 SCRA 615 (1989)

Violeta v. NLRC, 280 SCRA 520 (1997)
San Miguel Corporation v. NLRC, 297 SCRA 277 (1998)
4. Management Prerogative
Manila Electric Co. v. NLRC, 263 SCRA 531 (1996)

PAL, Inc. v. Pascua, 409 SCRA 195 (2003)
Coca-cola Bottlers Phil., Inc. Sales Force Union-PTGWO-BALAIS v. Coca-cola Bottlers Phil., Inc., GR No. 155651,
464 SCRA 507 (2005)
5. Kinds of Employee
a. Regular Employees, art. 280, 1st par.; 280, 2nd par.; 281, last sentence; 75(d); Omnibus rules, Book VI, Rule 1, Secs.
5(a), (b) and 6.
1) Type
Pangilinan v. General Milling Corporation., 434 SCRA 159 (2004)
2) Nature of Work
Perpetual Help Credit Corp., Inc. v. Faburada, et al., 366 SCRA 693 ( 2001)
Magsalin v. National Organization of Working Men, 403 SCRA 199 (2003)
Hacienda Fatima v. National Federation of Sugarcane Workers Food and General Trade, 396 SCRA 518 (2003)
Pentagon International Shipping, Inc. v. Adelantar, 235 SCRA 342 (2004)
Lopez v. Metropolitan Waterworks and Sewerage System, 462 SCRA 428 (2005)
3) Extended Period
Andon Electric co., Inc. v. NLRC, 308 SCRA 340 (1999)
4) Repeated Renewal of Contract
Maraguinot v. NLRC, 284 SCRA 539 (1998)

Universal Plastic Corp. v. Catapang, 473 SCRA 189 (2005)
b. Project Employee, art. 280, 1st par.
1) Definition
Imbuido v. NLRC, 329 SCRA 357 (2000)

Association of Trade Union v. Comm. Abella, 323 SCRA 50 (2005)
2) Project Employees
Sandoval Shipyards, Inc. v. NLRC, 136 SCRA 674 (1985)

Villa v. NLRC, 284 SCRA 105 (1998)
Chua v. Court of Appeals, 440 SCRA 121 (2004)
3) Workpool Employees
Aguilar Corp. v. NLRC, 269 SCRA 596 (1997)

Maraguinot v. NLRC, supra
Casual, Art. 280, 2nd par.; Omnibus rules, Book VI, Rule 1, Sec. 5 (b)
1) Nature of Work
A.M. Oreta and Co. Inc. v. NLRC, 176 SCRA 218 (1989)
2) One Year Service
Kimberly v. Drilon, 185 SCRA 190 (1990)

Integrated Contractor and Plumbing Works, Inc. v. Court of Appeals, 464 SCRA 544 (2005)
San Miguel Corp. v. Abella, supra
c. Fixed-Term
Brent School v. Zamora, 181 SCRA 702 (1990)

Palomares v. NLRC, 277 SCRA 439 (1997)
Philips Semiconductor etc. v. Fadriquela, 422 SCRA 408 (2004)
d. Seasonal
Phil. Tobacco Flue-curing & Redrying Corp. v. NLRC, 300 SCRA 37 (1998)
Hacienda Bino v. Cuenca, 456 SCRA 300 (2005)
e. Probationary
1) Definition
Philippine Federation of Credit Cooperatives, Inc. v. NLRC, supra
Cebu Marine Beach Resort v. NLRC, 414 SCRA 173 (2003)
2) Employer Right to Set Period/Obligation
Orient Express Placement Philippines v. NLRC, 273 SCRA 256 1997)
3) Duration/Exception
A Prime Security Services, Inv. V. NLRC, 322 SCRA 283 (2000)

Mitsubishi Motors v. NLRC, 226 SCRA 417 (1993)
4) Criteria Regularization
Alcira v. NLRC, 431 SCRA 508 (2004)
5) Extension of Contract
Mariwasa Manufacturing, Inc. v. Leogardo, 169 SCRA 465 (1989)
6) Absorbed Employees
Cebu Stevedoring Co. Inc. v. Regional Director, 168 SCRA 315 (1988)
7) Rule on Private School Teachers
Escorpizo v. Univ. of Baguio, 306 SCRA 497 (1999)

La Consolacion College v. NLRC, 366 SCRA 226 (2001)
Chiang Kai Sheck College v. Court of Appeals, 437 SCRA 171 (2004)
I. Termination of Employment
1. Coverage, Art. 278; Book VI, Rule 1, Sec. 1
2. Security of Tenure, Art 279; 277 (b)
a. Nature/Rationale
Llosa Tan v. Silahis Internatioinal Hotel, 181 SCRA 738 (1990)

Sonza v. ABS-CBN Broadcasting Corp., 431 SCRA 381 (2004)
Metro Eye Security, Inc. v. Julie V. Solsona, GR No. 167637, Sept. 28, 2007
b. Coverage
Labajo v. Alejandro, 165 SCRA 747 (1988)

Skihworld Management and marketing Corporation v. NLRC, 186 SCRA 465 (1990)
Interorient Maritime Enterprises Inc. v. NLRC, 235 SCRA 268 (1994)
c. Management Prerogative
Philippine American Life & General Insurance Co. v. Gramaze, 442 SCRA 274 (2004)
d. Requisites for Lawful Dismissal
Perpetual Help Credit Corp., Inc. v. Faburada, supra
e. Burden of Proof
Azcor Manufacturing v. NLRC, 303 SCRA 26 (1999)

f. Measure of Penalty
Farrol v. Court of Appeals, 435 SCRA 543 (2000)

Valiao v. Court of Appeals, 435 SCRA 543 (2004)
Etcuban v. Sulpicio Lines, Inc. 448 SCRA 516 (2005)
g. Factors
Associated Labor Union v. NLRC, 302 SCRA 708 (1999)

Philippine Long distance Telephone C. Inc. v. NLRC, 303 SCRA 9 (1999)
3. Termination of Employment by Employee
a. Resignation
Cheniver Deco Print v. NLRC, 325 SCRA 758 (2000)

China Banking Corp. v. Borromeo, supra
Willi Hahn Enterprises v. Maghuyo, 447 SCRA 349 (2004)
BMG Records (Phils.), Inc. et al. v. Aida C. Aparecio, et al., GR 153290, Sept. 5, 2007
1) Just Causes, Art. 285 (b)
2) Without Just Cause Requisites, Art. 285 (a); Const. Art. III, Sec. 18 (2)
Pascua v. NLRC, 287 SCRA 554 (1998)

Azcor v. NLRC, supra
Phil. Wireless Inc. v. NLRC, 310 SCRA 653 (1999)
A Prime Security Services, Inc. v. NLRC, supra
b. Performance of Military or Civic duty, Art. 286, Book VI, Rule I, Sec. 12
4. Termination of Employment by Employer
a. Basis of Right and Requirements, Arts. 282-284; 277 (b)
1) Basis
PLDT v. Tolentino, 438 SCRA 555 (2004)
2) Substantive and Procedural Due Process
Philippine National Bank v. Cabanag, 460 SCRA 514 (2005)

b. Just Causes Substantive Due Process
1) Serious Misconduct/Willful Disobedience (Insubordination)

Valiao v. Court of Appeals, supra
Villamor Golf Club v. Phil, 472 SCRA 36 (2005)
Coca-Cola Bottlers, Phil., Inc. v. Kapisanan ng Malayang Manggagawa sa Coca-Cola, 452 SCRA 480
(2005)
R Transport Corp. v. Ejaneira, 428 SCRA 725 (2004)
Micro Sales Operation Network v. NLRC, 472 SCRA 328 (2005)
2) Gross and Habitual Neglect of Duties
Cebu Filveneer Corporation v. NLRC, 286 SCRA 556 (1998)

Reyes v. Maxims Tea House, 398 SCRA 288 (2003)
Chua v. NLRC, 453 SCRA 244 (2005)
3) Fraud or Willful Breach of Trust
Santos v. San Miguel Corp., 399 SCRA 172 (2003)

Dela Cruz , NLRC, 416 SCRA 226 (2003)
Phil. National Construction Corp. v. Matias, 395 SCRA 720 (2003)
4) Commission of Crime, Art. 282 (d)
Sampaguita Garments Corporation v. NLRC, 233 SCRA 260 (1994)
5) Analogous, Art. 282 (e)
Cathedral School of Technology v. NLRC, 214 SCRA 551, 559 (1992)
6) Others Just Causes Claimed by Employer
a) Abandonment
Nueva Ecija Electric Cooperative v. NLRC, 461 SCRA169 (2005)

Floren Hotel v. NLRC, 456 SCRA 128 (2005)
b) Courtesy Resignation
Batongbacal v. Associated Bank, 168 SCRA 600 (1988)
c) Change of Ownership
Manlimos v. NLRC, 242 SCRA 145 (1995)
d) Habitual Absenteeism
Union Motor Corp. v. NLRC, 445 SCRA 683 (2004)
e) Fixed-Term Employment
Magsalin v. National Organization of Working Men, supra
f) Past offenses
La Carlota Planters Assn. v. NLRC, 298 SCRA 252 (1998)

Ramoran v. Jardine CMG, Inc. 326 SCRA 208 (2000)
g) Habitual Infractions
Gustilo v. Wyeth Phil., Inc., 440 SCRA 67 (2004)
h) Immorality
Santos v. NLRC, 287 SCRA 117 (1998)

i) Conviction of Crime
Sampaguita Garments Corp. v. NLRC, 233 SCRA 260 1994)
j) Qualification Requirements
Lanzaderas v. Amethyst Security & General Services, Inc., supra
7) Constructive Dismissal
Philippine American Life v. Gramaje, 442 SCRA 274 (2003)

Dinglasan v. Atienza, 433 SCRA 263 (2004)
Dusit Hotel Nikko v. National Union in Hotel, Restaurant and Allied Industires, 466 SCRA 374
(2005)
Angelina Francisco v. NLRC, et al., supra
8) Transfer
OSS Security and Allied Services Inc. v. NLRC, 325 SCRA 157 (2000)
Lanzaderas v. Amethyst Security and General Services, Inc., supra
Mendoza v, Rural Bank, etc., 433 SCRA 756 (2004)
9) Promotion
Phil. Telegraph & Telephone Corp. v. Court of Appeals, 412 SCRA 263 (2003)
10) Preventive Suspension
Philippine Airlines, Inc. v. NLRC, 292 SCRA 40 (1998)
11) Residency Training
Felix v. Buenaseda, 240 SCRA 139 (1995)
c. Substantive Requirements Business Related Causes, Art. 283
1) Basis
Edge Apparel Inc. v. NLRC, 286 SCRA 302 (1998)
2) Business Related or Authorized Causes
a) Installation of Labor Saving Devices, Art. 283
Complex Electronics Employees Assn. v. NLRC, 310 SCRA 403 (1999)
b) Retrenchment to Prevent Losses, Art. 283
Asian Alcohol Corp. v. NLRC, 305 SCRA 415 (1999)

NDC-Guthrie Plantations, Inc. v. NLRC, 362 SCRA 416.(2001)
Composite Enterprises, Inc. v. Emilio M. Caparoso, et al., GR No. 159919, Aug. 8, 2007
c) Redundancy, Art. 283
Asufrin v. San Miguel Corp., 425 SCRA 270 (2004)

Golden Tread Knitting Industries, Inc. v. NLRC, 304 SCRA 568
Lopez Sugar Corp. v. Franco, 458 SCRA 515 (2005)
d) Closure of Business, Art. 283
Mac Adams Metal Engineering Workers Union-Independent v. Mac Adams Metal Engineering, 414
SCRA 411 (2003)
SSS v. Hon. Chaves, 440 SCRA 269 (2004)
ME-SHURN Corporation v. ME-SHURN Workers Union-FSM, 448 SCRA 41 (2005)
e) Temporary Closure, Art. 286

Valdez v. NLRC, 286 SCRA 87 (1998)
3) Disease, Art 284
Vicente Sy v. Court of Appeals, supra
d. Procedural Requirements, Art. 277 (b); Book VI, Rule I, Secs. 1-3 Omnibus Rules
1) In General/Liability for Non-Compliance with Procedural Requirements
Serrano v. NLRC, 323 SCRA 445 (2000)

Santos v. San Miguel Corp., supra
Agabon v. NLRC, supra
2) Right to Counsel
Salaw v. NLRC, 202 SCRA 7, 12-15 (1991)
3) Notice
Agabon v. NLRC, supra

Caingat v. NLRC, 453 SCRA 142 (2005)
4) Hearing
a) Hearing
Permex, Inc. v. NLRC, 323 SCRA 121 (2000)

Arboleda v. NLRC, 303 SCRA 39 (1999)
b) Use of Position Paper
Shoppes Manila, Inc. v. NLRC, 419 SCRA 354 (2004)
5) Decision/Award Const., Art. VIII, Sec. 14
Pepsi-Cola Products Phil., Inc. v. Court of Appeals, 443 SCRA 580 (2004)
6) Burden of Proof
Equitable PCIBank v. Caguioa, 466 SCRA 658 (2005)
7) Degree of Proof/Substantial Evidence
Philtread Tire & Tubber Corp. v. Vicente, 441 SCRA 574 (2004)
Etcuban v. Sulpicio Lines, Inc., supra
8) Prescription
Salvador v. Phil. Mining service Corp., 395 SCRA 729 (2003)
9) Dismissal of Case, Purely on Technical Ground
Quintano v. NLRC, 446 SCRA 195 (2004)
10) Criminal Cases
Quiambao v. NLRC, 254 SCRA 211 (1996)
5. Reliefs/Remedies in Illegal Dismissal, Art. 279; 223
a. In General; Twin Remedies
Nueva Ecija Electric Cooperative v. NLRC, supra

Mt. Carmel College v. Jocelyn Resuena, et al., GR No. 173076, October 10, 2007
Lorenzo Ma. D.G. Aguilar v. Burger Machine Holdings Corp., et al., GR 172062, Feb. 21, 2007
1) Reinstatement
a) Definition
PNOC-EDC, et al. v. Abella, 448 SCRA 549 (2005)

Pheschem Industrial Corp. v. Moldez, 458 SCRA 339 (2005)
b) Effect of Failure to Ask Relief
Pheschem Industrial Corp. v. Moldez, supra
c) Exceptions
i) Closure of Business
ii) Economic Business Conditions
Union of Supervisors (RB) NATU, etc. v. Sec. of Labor, 128 SCRA 442 (1984)
iii) Employees Unsuitability
Divine Word High School v. NLRC, 143 SCRA 346 (1986)
iv) Employees Retirement/Overage
Espejo v. NLRC, 255 SCRA 430 (1996)
v) Antipathy and Antagonism Strained Relations
Acesite Corp. v. NLRC, 449 SCRA 360 (2005)

BPI Employees Union v. BPI, 454 SCRA 357 (2005)
Sagum v. Court of Appeals, 459 SCRA 223 (2005)
vi) Not Feasible
Bustamante v. NLRC, 265 SCRA 1 (1996)
c) Offer to Reinstate
Ranara v. NLRC, 212 SCRA 631 (1992)
2) Backwages
a) Effect of Failure to Claim
De La Cruz v. NLRC, 299 SCRA 1 (1998)
b) Effect of Failure to Order
Aurora Land etc. v. NLRC, 212 SCRA 48 (1997)

St. Michaels Inst. v. Santos, 371 SCRA 383 (2001)
b) Computation
Mercury Drug Co. Inc. v. CIR, 56 SCRA 694 (1974)

Bustamante v. NLRC, supra
Torres v. NLRC, 330 SCRA 311 (2000)
Kay Products, Inc. v. CA464 SCRA 544 (2005)
Standard Electric Manufacturing Corp. v. Standard Electric Employees Union, 468 SCRA 316 (2005)
BPI Employees Union v. BPI, supra
c) Fringe Benefit
Aurora Land etc. v. NLRC, supra
b. Damages
Collegio de San Juan de Letran-Calamba v. Villas, 399 SCRA 550 (2003)
Tolosa v. NLRC, 401 SCRA 391 (2003)
Maguiling v. Phil. Tuberculosis Society, Inc. 450 SCRA 465 (2005)
Acesite Corp v. NLRC, supra
Sagum v. Court of Appeals, 459 SCRA 223 (2005)
Central Luzon Conference v. CA, 466 SCRA 711 (04)
c. Separation Pay
1) When As Alternative
Coca-Cola Bottlers Phils. Inc. v. Vital, 438 SCRA 278 (2004)

National Federation of Labor v. Court of Appeals, 440 SCRA 604 (2004)
Etcuban Jr. v. Sulpicio Lines, Inc., supra
Composite enterprises, Inc. v. Emilio M. Caparoso, et al., supra
2) Computation/Rationale
Business Day Information Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993)
Millares v. NLRC, 305 SCRA 500 (1999)
3) Effect of Receipt
Arino v. NLRC, 290 SCRA 489 (1998)
c. Financial Assistance
1) When Allowed
Philippine Long Distance Telephone Co. v. NLRC, 164 SCRA 671 (1988)
Pinero v. NLRC, 437 SCRA 112 (2004)
2) When Not Allowed
Phil. Construction Corp. v. NLRC, 170 SCRA 207 (1989)

Chua v. NLRC, 218 SCRA 545 (1993)
e. Indemnity
Arms Taxi v. NLRC, supra

Serrano v. NLRC, supra
f. Liability of Corporate Officers
Acesite Corp. v. NLRC, supra
J. Retirement, Art. 287; Book VI, Rule II, Omnibus Rules; RA No. 7641; RA No. 8558 (1998) ; Labor Advisory on
Retirement Pay (Oct. 1999)
1. Retirement
a. Types of Retirement Plan
PAL v. Airline Pilots Association of the Phil., 373 SCRA 302 (2002)
Naguit v. NLRC, 408 SCRA 617 (2003)
Sta. Catalina College v. NLRC, 416 SCRA 233 (2003)
Gerlach v. Reuters Ltd., Phil. 448 SCRA 535 (2005)
1) Basis
Gamogamo v. PNOC shipping and Transport Corp., 381 SCRA 742 (2002)
2) Interpretation
Lopez v. National Steel Corp., 423 SCRA 109 (2004)

Solomon v. Association of International Shipping Lines, Inc., 457 SCRA 254 (2005)
4) Eligibility
Brion v. South Phil. Union Mission of the Seventh Day Adventist Church, 307 SCRA 497 (1999)
REMINDERS:
1. Voluntary recitation will be graded generously. The professor however reserves the right to call on students for
recitation.
2. The 20% rule on absences will be strictly observed. Three times of tardiness will be considered absent. All those who
come between 15 to 30 minutes after the class will be marked late; after 30 mins, absent.
3. No make-up mid-term examination will be given.
REQUIREMENT:
Attendance/Recitation/Assigned Work - 30%

Mid-Term Examination - 30%
Final Examination - 30%

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LABOR LAW 1

1st Semester, AY 2008-2009

I. INTRODUCTION TO LABOR LAW

Labor legislaton labor standards + labor relations

a. consists of statutes, regulations and jurisprudence

SOCIAL LEGISLATION VS. LABOR LAWS

ARTICLE XIII LABOR

Constitutional Rights and Mandates

Basic rights of workers guaranteed by the consti:

1. Right to organize themselves

Calalang v. Williams, 70 Phil. 726 (1940)

Manila Electric Co. v. Sec. of Labor, 337 SCRA 90 (2000)

When will the CBA take effect?

a. Foundation: Police Power and State Protection

Legal Classification: (discussed in light of the suspension of deployment of women)

a. such classification rest on substantial distinctions

b. Foundation: Police Power and State Protection

PLDT v. NLRC, 164 SCRA 671 (1988)

Agabon v. NLRC, 442 SCRA 573 (2004)

International School Alliance of Educators v. Quisumbing, 333 SCRA 13 (2000)

Universal Declaration of Human Rights

Mentioned in the case:

1935 Constitution, Art. XIV, Sec. 6

1973 Const. Art. II, Sec. 9

a. Labor Code and Related Special Legislation (Implementing Rules)

b. Contract Art. 1305-1306, New Civil Code

c. Collective Bargaining Agreement

DOLE Phils. v. Pawis ng Makabayang Obrero, 395 SCRA 112 (2003)

China Banking Corporation v. Borromeo, 440 SCRA 621 (2004)

The Banks SOP provides a restitution/forfeiture of benefits provision.

II. LABOR CODE OF THE PHILIPPINES

1. 1. Decree Title, Art. 1

4. Construction in Favor of Labor, Art. 4

Salinas Jr. v. NLRC, 319 SCRA 54 (1999)

Reyes v. Court of Appeals, 409 SCRA 267 (2003)

2. Rule Making Power, Art. 5

Kapisanan ng mga Manggagawang Pinagyakap v. NLRC, 152 SCRA 6 (1987)

Huntington Steel Products, Inc. v. NLRC, 442 SCRA 551 (2004)

4. Applicability, Art. 6, 276; Constitution, Art. IX-B, Sec. 2(1)

Constitution, Art. IX-B, Sec. 2(1)

ART. III, SEC. 11 AND 16, CONSTITUTION

1. Employer and Employee Relationship

ART. 97. Definitions. - As used in this Title:

(c) "Employee" includes any individual employed by an employer.

Ruga v. NLRC, 181 SCRA 437 (1990)

Perpetual Help Credit v. Faburada et al., 366 SCRA 693 (2001)

Angelina Francisco v. NLRC, et al., GR No. 170087, Aug. 31, 2006

Pamplona Plantatin Co., Inc. v. Tinghil, 450 SCRA 421 (2005)

DEPARTMENT ORDER NO. 18 - 02

Section 3. Trilateral Relationship in Contracting Arrangements. - In legitimate contracting, there exists a

(ii) Requiring him to sign, as a precondition to employment or continued employment, an antedated

Section 7. Existence of an employer-employee relationship. - The contractor or subcontractor shall be

(a) where there is labor-only contracting; or

The application shall be supported by:

(b) Non-submission of annual report;

(d) Non-compliance with labor standards and working conditions.

Section 17. Renewal of registration of contractors or subcontractors. - All registered contractors or

(b) Compliance with administrative reporting requirements.

a. Requirements for Independent Contractor

LIIKHA-PMPB v. Burlinggame corp., GR No. 162833, June 15, 2007

Coca-Cola Bottlers Phil., Inc. v. NLRC, 307 SCRA 131 (1999)

c. Labor Contractor Only; Requisites and Prohibition

Manila Water Co., Inc. v. Pena, 434 SCRA 52 (2004)