LABOR LAW REVIEWER

SERVICE CHARGES
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.
-distributed equally regardless of position or employment status.
- distribution shall be done twice a month.
- 15% management share may answer for losses and breakages.
- may also distribute to the managers at the discretion of the management.

13 month pay
-

Not a statutory obligation, required by PD 851

Additional income based on wage but is not part of wage
1/12th of the total basic salary earned by employee within a calendar year
All are entitled to this benefit provided that they have worked for at least one
month during the calendar year
- Employee who has resigned were terminated at any time before the time for
payment of the 13th Month payment is entitled to this benefit pro rata. (All are
entitled to this benefit provided that they have worked for at least one month
during the calendar year
- Employee who has resigned were terminated at any time before the time for
payment of the 13th Month payment is entitled to this benefit pro rata. (in
proportion to the length of time he worked during the year)
Exception
- Managerial employee unless established practice of the company
- Employers who already paying their employees a 13 th Month pay or its
equivalent.
- Government Employees
Remarks/Notes
o Bonus provided in the CBA is meant to be in addition to the legally
required 13th Month pay.
o Earnings and other remuneration which are not part of the basic salary
shall not be included in the computation of the 13 th Month pay.
Commission v. Basic Salary
Wage- paid to any employee
In terms of Money
Which is payable by the employer
For the services rendered or to be render

PRESCRIPTIVE PERIOD FOR MONEY CLAIMS

Art 207. Penal Provisions .
(b) any person securing entitlement to any benefit or payment under this title,
whether for him or for some person, commits fraud, collusion, falsification,
misrepresentation of facts or any other anomaly shall be punishable with a fine not
less than 500 pesos nor not more than 5,000
(c) Commit by any person who has been employed by the Commission, or recidivist,
the imprisonment shall not be less than one (1) year;
-if committed by lawyers, physicians or other professional, shall be disqualified from
the practice of his profession;
- if committed by any official, employee or personnel of this commission, shall be
dismissed with prejudiced to reemployment if the government services.
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 claim 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 PROCESS IN ACCORDANCE
WITH THE IRR OF THE CODE; otherwise they shall be forever barred;
Workermens compensation claims accruing PRIOR to the effectivity of this
CODE and DURING the period of Nov. 1, 1974 up to Dec 31, 1974, shall be
filed within the appropriate offices of DOLE not later that March 31, 1975;
otherwise they shall be forever barred.

Remarks:
-

Money Claim is considered to be property within the protection of

constitutional guarantee of DUE PROCESS OF LAW
The PRESCRIPTIVE PERIOD for filing of Illegal dismissal complaint is
FOUR (4) YEARS and not three.
Prescription/PRESCRIPTIVE PERIOD refers to the length of time within
which an action or complaint can be filed. It fixes a deadline or expiry date.
After that date, the complaint cannot be entertained.
Regarding MONEY CLAIMS, an employee who was illegally dismissed is
entitled to recover benefits he lost, such as the value of SIL. The recoverable
value of SIL does not have to be limited to 3 years.

ART 292 INSTITUTION OF MONEY CLAIMS

-

Money claims shall be filed before the appropriate entity INDEPENDENTLY OF

THE CRIMINAL ACTION that may be instituted in the proper courts.
No civil action arising from the same cause shall be filed with any court.
Not apply to employee compensation cases.

SERVICE INCENTIVE LEAVE

Art 95. Service Incentive Leave
-

Every employee who has rendered atleast one (1) YEAR of service shall be
entitle to a yearly service incentive leave of five (5) DAYS with pay.
Shall not apply to those:
o who are already enjoying the benefit herein;
o those enjoying vacation leave with pay atleast five (5) days; and
o those employed in establishment regularly employing less than 10
employees
o other establishment exempted from granting this benefit by the
Secretary of the Labor
Benefit in excess shall not be made a subject or arbitration or any court or
administrative action.

REMARKS:
-

No law requires VL or SL to private employees. It depends on the voluntary

employer policy or CBA.
S.I.L is LEGALLY REQUIRED, as well as the PATERNITY LEAVE, MATERNITY
LEAVE and PARENTAL LEAVE (Solo Parent Acts).
Unused SIL at the end of the year should be converted to cash.
Piece-rate employees are entitled to holiday pay, service incentive leave and
other specific benefits.

VISITORIAL POWER
Art 37. Visitorial Power The Secretary of Labor or his duly authorized
representative 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 violations of any provisions of this Title.
Art 128. Visitorial and Enforcement Power
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The Secretary of Labor shall have:

o Access to employers records and premises at any time;
o To copy therefrom;
o To question any employee and investigate any fact, condition r matter
which may be necessary to determine violations.
o Power to order stoppage of work or suspension of operations of any
unit or department of an establishment when non compliance which
poses grave and imminent danger to the health and safety of workers
o Require employers to keep and maintain such employment recrds as
may be necessary in aid of his visitorial and enforcement power under
this code.
The Secretary of Labor shall have: (in cases where EER still exists)
o The power to issue compliance orders to give effect to labor legislation
based on the findings of labor employment and enforcement

Power to issue writs of execution to the appropriate authority for the

enforcement of their orders (strictly for inspection)

Art 274. Visitorial Power

Remarks :
-

Request of examination of books of accounts of labor union or organization

shall be filed with the Regional Office that issued certificate of registration/
certificate of creation of chartered local
Request for examination of books of account of federations/national unions
and trade unions center shall be filed with the Bureau of Labor Relations.
Complaint or petition for audit examination of funds and book of accounts
shall prescribe within 3 years from the date of submission of the annual
financial report to the Department.
Decision granting the conduct of audit shall include the appointment of the
Audit Examiner and the directive to submit report and recommendations
within 10 days from termination of audit.
The decision granting the conduct of audit is interlocutory and shall not be
appealable.
The decision denying or dismissing the complaint r petition for audit may be
appealed within 10 days from the receipt thereof.

LABOR STANDARDS
II. LEAVES
A. SERVICE INCENTIVE LEAVE
B. MATERNITY LEAVE
a. Any employer shall grant t 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 (2) weeks prior to
the expected date of delivery and another (4) weeks after normal
delivery or abortion with full pay based on her regular or average
weekly wages. Employer may require a production f a medical
certificate stating the delivery will probably take place within two
weeks.
b. The maternity leave shall be paid by the employer only for the first
four (4) deliviries by a woman employee
Remarks:
RA 8282 (SSS law) provides specific benefits for Maternity leave for a female
member who has paid at least 3 monthly contributions in their 12 month
period immediately preceding the semester of her childbirth/miscarriage,
shall be entitled for 1 whole salary for 6o days of 78 days for caesarean
delivery.
- Requisite:
o Employee shall notify her employer of her pregnancy;
o Full payment shall be advanced by the employer within 30 days from
filing maternity leave;

Payment of maternity leave is a bar o receive other sickness leave at

the same period;
o Maternity leave be paid for the 1st 4 deliveries f miscarriage;
o SSS shall immediately reimburse the employer of 100% of amount of
maternity benefits
C. PATERNITY LEAVE
- As provided under R.A 8187, it grants 7 days of paternity leave with full pay
to married male employees, provided:
A married employee is employed at the time of the delivery of
his child
He is cohabitating with hi spouse
Has applied the paternity leave;
Wife has given birth
D. PATERNAL LEAVE
- As provided by the Solo Parent Act (RA 8972) it provides a leave privilege of
not more than 7 working days every year to any solo parent who has
rendered service for at least 1 year
- Applicable for any woman who gives birth as a result of
o Rape;
o Widow
o Legally separated
E. BATTERED WOMAN LEAVE
- As provided by RA 9262 (Anti VAWC Act) it provides a paid leave up to ten
(10) days in addition to other leave. It is extendible when necessity is arises.
- It covers the day of medical to seeking legal actions
- Not convertible to cash
o

III WORKERS
A. WOMEN WORKERS
a. ACTS OF DISCRIMINATION
i. Payment of lesser compensation to female employee as against
a male employee, for equal value of work;
ii. Favoring a male employee over a female with respect to
promotion solely on account of sexes.
b. STIPULATION AGAINST MARRIAGE
i. Company policy of not accepting a married applicant or to deem
resigned upon marriage of a female employee, is discriminatory
and therefore, illegal.
c. PROHIBITED ACTS AGAINST WOMEN
i. To deny any woman employee from the enjoyment of her
benefits;
ii. Discharge such woman on account of her pregnancy;
iii. Discharge or refuse the admission of such woman upon
returning for fear that she may again be pregnant
d. CLASSIFICATION OF CERTAIN WOMEN WORKERS
i. Woman employee in club, restaurant etc. which is under the
effective control or supervision of the employer for a substantial

period of time as determined by the Secretary of labor, is

considered as an employee of that establishment.
e. SEXUAL HARRASSMENT
i. As provided by the RA 7877, SH victim maybe a male or female.
ii. It is committed when a person demand, request, requires any
sexual favour from another.
iii. It maybe an employer, employee, supervisor, agent or any other
person with authority.
iv. Valid reason to dismiss. Mala in se.
f. PENALTIES and LIABILITIES
i. Not less than 1,000 nor more than 10,ooo and imprisonment of
not less than 3 months nor more than 3 years or both
ii. Alien be deported upon completion of sentence
iii. MTC
iv. Liability shall be imposed to the guilty officer/officers of the corp.
B. EMPLOYMENT OF MINOR WORKERS
a. CHILDREN Person below 18 years of age or those over but are
unable to fully take care/protect of themselves from abuse, neglect,
cruelty, exploitation, discrimination because of their physical, mental
disability or condition
b. WORKING CHILD Any person between 15 and 18 years of age may
be employed fr such number of hours and such period of the day as
determined by the Secretary of Labor in appropriate regulations
c. PERIOD OF HOURS
i. A child below 15 not more than 20 hours a week; not more
than 4 hours a day
ii. 15 but below 18 not more than 8 hours a day and in no case
beyond 40 a week
iii. No (i) shall work between 8 in the evening til 6 in the morning;
No (ii) shall be allowed to work between 10 in the evening til 6 in
the morning
d. PROHIBITIONS/EXCEPTION
i. No child below 15 shall be employed, except:
1. when he works directly under the sole responsibility of
his parents and his employment does not in any way
interfere with the schooling.
2. His employment neither endangered his life, safety,
health and morals
C. HOUSEHELPERS
a. Coverage : all person rendering household service for compensation
i. Household Service services in the employers home which
necessary for the maintenance thereof.
b. Contract: Not more than 2 years but may renew
c. Minimum Wage: 800,650 and 550 in addition to the lodging, food and
medical attendance.
d. Education : for household worker 18 below shall be given an
opportunity to study at least elementary. The cost of such education be
part of compensation.
e. Treatment : shall be treat in a just and humane manner

f. Illegal termination : paid for compensation already earned plus 16

days by way of indemnity
g. Termination Notice: at least 5 days
D. EMPLOYMENT OF HOMEWORKERS (INDUSTRIAL HOMEWORKERS
FACTORY WORKER)
a. shall be regulated by the Government through appropriate regulations
issued by the DOLE
E. HANDICAPPED WORKERS
a. Are those earning capacity is impaired by age or physical or mental
deficiency or injury.
b. Handicapped may be employed when their employment is necessary
to prevent curtailment and does not create unfair competition and
labor.
c. Employment Agreement:
i. Name and Address of the handicapped worker;
ii. Rate to be paid which shall not be less than 75% of MW;
iii. Duration of the working period
iv. The nature of work to be performed.
d. No disabled person shall be denied access to opportunity of
suitable employment
e. May acquire a status of regular employee
f. Eligible for apprenticeship if their disability is not effectively
impede the performance of job