Labor Standards and Welfare

MT Pointers
(Comm. Sarmen)

I.
1. What is Social Justice?
 Social justice according to Dr. Jose P. Laurel in Calalang vs. Williams, is neither communism, nor
despotism, nor atomism, nor anarchy," but the humanization of laws and the equalization of social
and economic force by the State so that justice in its rational and objectively secular conception
may at least be approximated. Social justice means the promotion of the welfare of all the people,
the adoption by the Government of measures calculated to insure economic stability of all the
competent elements of society, through the maintenance of a proper economic and social
equilibrium in the interrelations of the members of the community, constitutionally, through the
adoption of measures legally justifiable, or extra-constitutionally, through the exercise of powers
underlying the existence of all governments on the time-honored principle of salus populi est
suprema lex.

2. Art. 4, Labor Code?

 Art. 4 of the labor code provides for the rule in the construction of labor laws in general, which
provides:
“All doubts in the implementation and interpretation of the provision of this
code, including its implementing rules and regulations, shall be resolved in
favor of labor.”

3. What property right is conferred upon an employee once there is an employer-employee

relationship? (Found out that Comm. Sarmen actually took this straight out of 2006 Labor law bar
exams)
 Once an employer-employee relationship is established, such employment is treated, under our
constitutional framework, as a property right. When a person has no property, his job may possibly
be his only possession or means of livelihood and those of his dependents. When a person loses
his job, his dependents suffer as well. The worker should, therefore, be protected and insulated
against any arbitrary deprivation of his job.

Word of Caution Brads: The only way you can arrive with this answer is by reading these cases :

Philips Semiconductors [Phils.], Inc. vs. Fadriquela, G. R. No. 141717, April 14, 2004;
Philippine Geothermal, Inc. vs. NLRC, 189 SCRA 211 [1990]

Try to rephrase brads, it’s very unlikely for us mananaps to have read the case since this was never
discussed in class nor is it in our book. Answering the exact way as above would certainly raise
suspicion.
II. RECRUITMENT and PLACEMENT of Filipino Workers overseas – Who are not allowed?

 The ff. are not allowed to engage in the business of recruitment of Filipino workers overseas:
(Sec. 2, Rule I, part II – Implementing Rules)

 Travel agencies and sales agencies of airline companies;

 Officers or members of the Board of any corporation or members in a partnership engaged in
the business of a travel agency;
 Corporations and partnerships, when any of its officers, members of the board or partners, is
also an officer, member of the board or partner of a corporation or partnership engaged in the
business of a travel agency;
 Persons, partnerships or corporations which have derogatory records, such as but not limited
to the following:
o Those certified to have derogatory record or information by the National Bureau of
Investigation or by the Anti-Illegal Recruitment Branch of the POEA;
o Those against whom probable cause or prima facie finding of guilt for illegal
recruitment or other related cases exists;
o Those convicted for illegal recruitment or other related cases and/or crimes involving
moral turpitude; and
o Those agencies whose licenses have been previously revoked or cancelled by the
Administration for violation of RA 8042, PD 442 as amended and their implementing
rules and regulations as well as these rules and regulations.

All applicants for issuance/renewal of license shall be required to submit clearances from
the National Bureau of Investigation and Anti-illegal Recruitment Branch, POEA, including
clearances for their respective officers and employees.

 Any official or employee of the DOLE, POEA, OWWA, DFA and other government agencies
directly involved in the implementation of R.A. 8042, otherwise known as Migrant Workers
and Overseas Filipino Act of 1995 and/or any of his/her relatives within the fourth civil degree
of consanguinity or affinity; and
 Persons or partners, officers and Directors of corporations whose licenses have been
previously cancelled or revoked for violation of recruitment laws.

III. Can an Overseas Filipino Worker refuse to remit his earnings to his dependents?

 No, such refusal to remit his earnings to his dependents is not allowed under the law which
considers mandatory for all Filipino workers abroad to remit a portion of their foreign exchange
earnings to their families, dependents, and/or beneficiaries in the country in accordance with
rules and regulations prescribed by the Secretary of Labor. (Sec. 22, Labor Code)
IV. Can an employer and an employee enter into an agreement reducing or increasing the minimum
percentage provided for night differential pay, overtime pay, and premium pay?

 As a general rule, the parties may enter into any kind of stipulation in a contract and the same
shall be considered as the law between them, however, it must be emphasized that a labor
contract is not an ordinary contract since it is impressed with public interest. Thus, the parties are
prohibited to enter into any stipulation which may result in the reduction of any employee
benefits. In the instant case, the reduction by the employer, even with the consent of the
employee, of the legally mandated minimum percentage of such benefits as night differential
pay, overtime pay and premium pay, is not valid. On the other hand, the same may not be said on
the matter of increasing said benefits. The employer and the employee are not prohibited under
the law to enter into an agreement for the increase of whatever benefit being mandated by law
for the simple reason that any such increase certainly redounds to the benefit of the employee.

V.
1. What is Wage Distortion?
 Under the law, there is wage distortion if there is 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. (Art. 124, Labor Code)
 In fine, Wage Distortion is the effect of increasing the pay of an employee to such an amount
that either equals to, almost equals to, or completely overtakes another employee’s pay
which has not been similarly increased.

2. How should Wage Distortion be settled?

 In case of wage distortions, the employer and union shall negotiate to correct such
distortions. The dispute should be resolved through a grievance procedure or even voluntary
arbitration, in the absence of CBA, through the NCMB or a labor arbiter.

3. Can it be settled through Strike?

 Wage distortions are “Non-Strikeable”, our laws specifically provide that any issue involving
wage distortions shall not be a ground for a strike/lockout. Wage distortions should be sought
by voluntary negotiation or arbitration, and not by strikes, lockouts or other concerted
activities of the employees or management.
VI.
1. Goals and Objectives of TESDA?

 Sec. 3 of TESDA act of 1994 provides for the ff. goals and objectives:

a) Promote and strengthen the quality of technical education and skills development
programs to attain international competitiveness.
b) Focus technical education and skills development on meeting the changing demands for
quality middle-level manpower;
c) Encourage critical and creative thinking by disseminating the scientific and technical
knowledge base of middle-level manpower development programs;
d) Recognize and encourage the complementary roles of public and private institutions in
technical education and skills development and training systems;
e) Inculcate desirable values through the development of moral character with emphasis
on work ethic, self-discipline, self-reliance and nationalism.

2. What is PSLMC? what is its jurisdiction?

 This stands for Public Sector Labor-Management Committee, it has original and exclusive
jurisdiction over the ff:
o Employee Organization Disputes;
o CBA disputes;
o Questions resulting from the interpretation or implementations of CBA’s
o Unfair Labor Practice disputes
o Strike-determination

VII. Restrictions in Hiring Minors/ Minor Employees

 Sec. 12. of RA 7610 as amended provides that 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.

VIII. Can a house helper be assigned to non-household work?

 Yes, what our laws prohibit is the assignment of house helpers to non-household work at a
wage rate lower than the applicable minimum wage. A house helper therefore can be
assigned to commercial, industrial, or agricultural enterprises, provided that they be paid
accordingly. Though in such cases, they can hardly be called “house helpers”.
(Sec. 22, Art. 4, Kasambahay Law)