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LS REVIEW inequalities, and remove cultural inequities by equitably diffusing

wealth and political power for the common good.


I. Constitutional Provisions:
To this end, the State shall regulate the acquisition, ownership,
A. State Policies use, and disposition of property and its increments.

Section 9. The State shall promote a just and dynamic social order Section 2. The promotion of social justice shall include the
that will ensure the prosperity and independence of the nation and commitment to create economic opportunities based on freedom
free the people from poverty through policies that provide of initiative and self-reliance.
adequate social services, promote full employment, a rising
standard of living, and an improved quality of life for all. C. LABOR

Section 10. The State shall promote social justice in all phases of Section 3. The State shall afford full protection to labor, local and
national development. overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
Section 11. The State values the dignity of every human
person and guarantees full respect for human rights. It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful
xxx concerted activities, including the right to strike in
accordance with law. They shall be entitled to security of
Section 18. The State affirms labor as a primary social tenure, humane conditions of work, and a living wage. They
economic force. It shall protect the rights of workers and shall also participate in policy and decision-making processes
promote their welfare. affecting their rights and benefits as may be provided by law.

Section 19. The State shall develop a self-reliant and The State shall promote the principle of shared responsibility
independent national economy effectively controlled by between workers and employers and the preferential use of
Filipinos. voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster
Section 20. The State recognizes the indispensable role of the industrial peace.
private sector, encourages private enterprise, and provides
incentives to needed investments. The State shall regulate the relations between workers
and employers, recognizing the right of labor to its just share
xxx in the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and
Section 8. The right of the people, including those employed in the growth.
public and private sectors, to form unions, associations, or
societies for purposes not contrary to law shall not be
abridged. Art. 151 (153) Regulation of industrial homeworkers
Employment of industrial homeworkers and field personnel shall be regulated by
B. SOCIAL JUSTICE AND HUMAN RIGHTS the government through appropriate regulations to be issued by the Secretary of
Labor.
Section 1. The Congress shall give highest priority to the
Art. 153 – Distribution of homework –
enactment of measures that protect and enhance the right of all
the people to human dignity, reduce social, economic, and political Employer – any person includes any person, natural or artificial, who for his
account or benefit or of any person residing outside the country directly or
indirectly or through any employee, agent contractor, subcontractor or any other Only employers in highly technical industries my employ apprentices and
person: only in apprenticeable occupations approved by the Sec. Of Labor now by
a) Delivers, causes to be delivered, any goods, articles or materials to TESDA. TESDA Act (RA 7796.
be processed or fabricated in or about a home or thereafter to be
returned or to be disposed of or distributed in accordance with his Requisites for employment of apprentices:
directions; a. The employer must be engaged in a highly technical industry (a
b) Sells any goods, articles or materials to be processed or fabricated in trade, business, enterprise, industry
or about a home and then rebuys them after such processing or or other activity which utilizes the application of advanced technology
fabrication either himself or through some other person. [Rule VI, Book II, Rules]);
b. The job must be an apprenticeable occupation (as determined by
Department Order No. 5 , February 4, 1992 replaces Rule No. XIV of the TESDA).
Implementing Rules of Book III.
Aptitude testing of applicants.
Allows formation and registration of labor organizations of homeworkers;
Requires employers to pay and remit SSS, Medicare, and ECC premiums; To ensure they have the minimum qualifications, applicants are required to take
Claims of not more than P5,000.00 – RD; beyond – NLRC. aptitude tests; if employer has no capability/facility, the DOLE shall perform the
service free of charge.
Apprentices:
Organization of apprenticeship programs, voluntary. EXCEPT:
Art. 57 – Statement of Objectives a. when national security/ particular requirements for economic
development demand;
The title aims to help meet the demand of the economy for trained manpower; b. where services of foreign technicians are utilized by private
To establish a national apprenticeship program through participation of companies in apprenticeable trades, said companies are required to
employers, workers, government and non-government agencies; to establish set up appropriate apprenticeship programs.
apprenticeship standards for the protection of apprentices.
Art. 71 – Deductibility of Training Costs. – ½ of the value of labor training
Art. 58 – Definition of Terms expenses incurred is deductible from taxable income. Provided that said
deduction does not exceed ten (10%) of the direct labor wage; and provided
Apprenticeship – practical training on the job supplemented by theoretical further, that the employer pays his apprentices the minimum wage.
instruction.
Art. 72 – Apprentices without compensation. - The Sec, DOLE may authorize the
Apprentice – a worker who is covered by a written apprenticeship agreement with hiring of apprentices without compensation when the training is required by the
an individual employer or any of the recognized entities (in this Chapter). school or training program curriculum, or as a requisite for graduation or board
examination.
Apprenticeable occupation – any trade, form of employment or occupation which
requires more than three (3) months of practical on the job training supplemented Working scholar; liability of school – school liable for damages caused by
by theoretical instruction; apprentices; scholars; trainees.

Apprenticeship agreement – an employment contract wherein the employer binds Contents of apprenticeship agreement:
himself to train the apprentice and the apprentice accept the terms of the training. a. Wage rates shall at least be 75% of applicable minimum wage;
b. Apprenticeable job;
Art. 59. Qualifications of apprentice: c. Approved by the Sec. DOLE (Nitto vs. NLRC, et Al., G. R. No.
a. At least fourteen (14) years of age;(superseded by RA 7610 as 114337, Sept. 19, 1995.
amended by RA No. 7658 (Nov. 9 1993 which prohibits employment Signing of apprenticeship agreement:
of minors below 15 years of age.) a. Must be signed by the employer or his representative;
b. Possesses vocational aptitude and capacity for appropriate tests; b. If apprentice is a minor, must be signed on his behalf by his parents
c. Possesses ability to comprehend and follow oral and written or guardian, or by the DOLE.
instructions.
Venue of apprenticeship programs:
Art. 60. Employment of apprentices:
a) Conducted entirely by and within the sponsoring firm, establishment d. Work to be performed by the handicapped worker;
or entity; The agreement shall be subject to inspection by the DOLE.
b) Within the DOLE training center;
c) Initial training in trade fundamentals in a training center or other Art. 81 – Eligibility for apprenticeship – They may be hired as apprentices or
institutions with subsequent actual work participation within the learners if their handicap does not impede the performance of job operations
sponsoring firm, or entity during the final stages of the training. inthe particular occupations where they were hired.

Investigation of violations of agreement; appeal to the Sec. Of DOLE;Exhausting Magna Carta for Disabled Persons - RA 7277 approved March 24, 1992 –
administrative remedies. ensures equal opportunities for disabled persons and prohibits discrimination
against them.
LEARNERS: Persons hired as trainees in semi-skilled and other industrial
occupations which are not apprenticeable and which may be learned through _______________
practical training on the job in a relatively short period not to exceed 3 months.

Art. 74 When Learners may by hired:  Wage distortion CBA vis-à-vis wage orders – CBA creditability
a. When no experienced workers are available;
b. The employment does ot create unfair competition in terms of labor In organized establishments, wage increase given within 3 months prior
costs or impair or reduce labor standards. to the effectivity of a Wage Order shall be creditable, provided that a
provision on this is in the CBA; otherwise any increase granted by the
Art. 75. – Learnership agreement:- employer shall not be credited as compliance.
a. names and addresses of learners;
b. duration of the learnership period which shall not exceed 3 months; In unorganized establishements, wage increase granted by the employer
c. wages of learners which shall start not lower than 75% of applicable within five (5) months from effectivity of the Wage Order shall be credited
minimum wage; as compliance.
d. a commitment to employ the learners if they so desire, as regular
employees upon completion of the training. (Learners who have  Non-diminution of benefits- No Wage Order shall provide for wage rates
been suffered to work during the first 2 months shall be deemed lower than the statutory minimum prescribed by Congress.
regular employees if the training is terminated by the employer
before the end of the stipulated period through no fault of the leaner.  Worker’s preference in case of bankruptcy
e. The agreement shall be subject to inspection by the Sec. of the  Labor Code provisions for wage protection
DOLE.  Allowable deductions without employee’s consent
 Attorney’s fees and union service fee in labor cases
Art. 76 – Learners employed in peace or incentive-rate jobs during the training  Criteria/factors for wage setting
period shall be paid in full for the work done.
 C. Rest day
 Right to weekly rest day
Art. 77. Penalty clause – violations shall be subject to the general penalty clause
in this CODE.  Preference of the employee
 When work on rest day authorized
Handicapped workers (R.A. 7277) D. Holidays
Art. 78. – Handicapped workers are those whose earning capacity is impaired by 1. Right to holiday pay
age, or physical or mental deficiency or injury a) In case of absences
Art. 79 – Handicapped workers may be employed when their employment is b) In case of temporary cessation of work
necessary to prevent curtailement of employment opportunities and it does not c) Of teachers, piece workers, seafarers, seasonal workers, etc.
create unfair competetition in labor costs or lower working standards. 2. Exclusions from coverage

Art. 80 – Employment agreement: Art. 124 – minimum wage- “floor wage”- employer not compelled to grant
a. Names and addresses of handicapped workers increase across the board.
b. Rate to be paid which shall not be les thatn75% of minimum wage
applicable; Two methods of minimum wage increase: a) fixing a determinate amount to add
c. Duration of employment period to the prevailing minimum wage; b) the salary-ceiling method by which a
determinate amount is granted to employees receiving a certain denominated b) Proceedings in 128 are offshoots of inspection, while in 129 – upon
salary ceiling. complaint filed by interested party;
c) 128 involves employees still in the service while in 129 – may involve
Liability of contractor’s clients – construction, janitorial and security services, the past and present employees provided there is no demand for
principal shall pay the increases in wage; if principal fails, the contractor and the reinstatement;
clients shall be jointly and sesverally liable. d) 128 does not fix maximum money claims while in 129 money claims
must not exceed Php 5K;
Art. 125 – No wage order shall prevent workers from exercise of right to bargain;
MONEY CLAIMS ONLY – (Urbanes case – RTC breach of contract)
Art. 126 – No injunction may be issued to stop proceedings before the Regional
Wage Boards; SEnA – Single Entry Approach – Aggrieved may go to any DOLE office, get the
advice he needs, go through conciliation, etc.
Art. 127 – No wage orders granting lower than those prescribed by congress.
NOTE: Publication, public hearings, mandatory. (Cagayan Sugar Milling
Art. 128 – Visitorial Powers-The Sec. Of Labor or his authorized representatives
Co., vs. Sec. Of Labor, et al., G. R. No. 128399, 15 January 1988).
– enforcement; not rested by Php 5,000. Limit to jurisdiction of RD;
On 16 November 1993 Regional Wage Board passed Wage Order No. R02—02
SCOPE – R. A. 7730 repeals Arts. 129 and 217 (now 224 of the Labor Code). providing increase in minimum wage in Region II. More than a year later, the
Overturned rulings in Aboitiz and Servandos cases; Bombo Radyo – that the Board passed Wage Order R02-02-A amending Wage order No. R02-02 granting
existence of employer-employee relationship is a matter fraught with questions of instead for an across the board wage increase, retroactive to date of effectivity of
fact and law which is best resolved by the quasi-judicial body like the NLRC; Wage Order 02-02.

Jethro Intelligence & Security Corp and Yakult Phil. Vs. Hon. Sec. Of Labor, G. Ruling: Wage Order 02-02A was struck down as a violation of Art. 123 of
R. No. 172537, Aug. 14, 2009 – recognizes the quasi-judicial power of the the Labor Code.
Secretary of Labor and the Regional Director; they may issue writs of execution
4. CBA provision vis-à-vis overtime work
and garnishment resulting from results of inspection.
Interphil case – CBA provision – 8hrs. + 4 hrs overtime, valid.
Condition: that the employer-employee relationship still exists at the time the
Compressed Work Week (CWW) covered by DOLE Advisoroy No 02,
complaint (formal or informal) is filed. series of 2004. To be valid, conditions must be present:
BUT – where the employer contests the findings of the labor standards and 1) The scheme is supported by majority of the employees
welfare officers and raises issues which cannot be determined without affected;
considering evidentiary matters, the RD must indorse the case to the Labor 2) In firms using substances, oroperating in conditions that are
Arbiter. hazardous to health, a certification is needed from an
accredited safety organization or the firms’s safety
CBA Salary increase- charged against the 70% tuition increase (Centro Escolar committee that work beyond eight hours is within the limits or
University Faculty Union vs. Hon. CA, G. R. No. 165486, May 31, 2006); levels of exposure set by DOLE’s occupational safety and
health standards.
Art. 129 – Recovery of Wages, Simple Money Claims; 3) The DOLE regional office must be notified.
Validity of CWW Waiver upheld in Bisig ng Manggagawa sa Tryco, et al.,
128 vs. 129 - vs NLRC, G. R. No. 151309, Oct. 15, 2008.

a) 128 inspection of establishments to compel compliance with labor Flexible Work Assignments:
standards; while 129 refers to adjudication through summary
1) Reduction of workdays;
proceedings after notice and hearing; 2) Rotation of workers;
3) Forced leave;
4) Broken-time schedule; (Mabeza vs. NLRC, G. R. No. 118506, 18 April 1997).
5) Flexi-holiday schedule.
(See Art. 113 for reduction of work days which entails reduction or  Fair Day’s Wage for Fair Day’s Labor- “No work, no pay”
deduction in pay.) Where failure of a worker to work is not attributable to the employer,
the economic loss should not be shifted to the employer.
B. Wages:
 Equal pay for equal work.
Wage – means the remuneration or earnings, however designated; (International School Alliance of Educators (ISAE) vs, Quisumbing,
capable of being expressed in terms of money, whether fixed or et al. G. R. No. 128845, 1 June 2000.)
ascertained on a time,
task, piece, or commission basis or other method of calculating the  Coverage/exclusions
same, which is payable by an employer to an employee under a written Farm tenancy or leasehold, farm workers, domestic service, home
or unwritten contract of employment for work done or to be done, or for workers (persons working in their respective homes in needle work
services rendered or to be rendered and includes the fair and reasonable or in any cottage industry duly registered in accordance with law are
value, as determined by the Secretary of Labor, of board, lodging, or excluded from coverage.
other facilities customarily furnished by the employer to the employee.
“Fair and reasonable value” shall not include any profit to the employer  Wages vs. Salaries
or to any person affiliated with the employer. Wages refers to the remuneration given to lowly workers usually
doing menial jobs; salaries to employees other than farm/agricultural
 “Wage” includes sales commissions. Songco vs. NLRC, G. R. No. and ordinary labourer.
50999-501000, 23 March 1990. Zuelig terminated the services of
Songco on ground of retrenchment. Under the CBA between Zuelig Art. 99 –Regional Minimum Wages – Amended by R. A. No. 6727 (Wage
and the Union of which Songco was a member, he was entitled to a Rationalization Act, approved 9 June 1989); Creation of Regional Tripartite
retirement gratuity in an amount equivalent to one (1) month for Wages and Productivity Boards.
every year of service. The Labor Arbiter awarded him a separation
pay equivalent to his monthly salary (exclusive of commissions, Exemptions:
allowances, etc.) for every year of services; 1) Household or domestic helpers, including family drivers and persons
Held: In the computation of the separation pay and back wages, the in the personal service of another;
transportation and emergency living allowances should be taken into 2) Homeworkers engaged in needlework and other handicrafts;
account.N. B. Commissions must be earned by actual market 3) Workers employed in establishments registered with the NEDA that
transactions attributable to the employee, otherwise, no. they perform their work in their respective homes;
4) Workers in any duly registered cooperatives upon recommendation
 Wage includes facilities and commodities. Facilities refer to the fair of the Bureau of Cooperative Development upon approval of the
and reasonable value of board, lodging and/or other facilities Secretary of the DOLE, to make it viable.
customarily furnished by the employer to the employee, Ex. Food 5) Barangay Micro Business Enterprises (RA No. 9178);
and housing. He may deduct their value from the employees wages. 6) Retail business establishments employing not more than 10 (RA
6727
 Facilities vs. Supplements:
Facilities are items of expense necessary for the worker’s or his
family’s existence and subsistence hence they form part of the wage Art. 100 – Prohibition against elimination or diminution of benefits.;( practice that
and when furnished by the employer, they are deductible therefrom; has ripened into policy ).
Supplements are extra remuneration or special privileges or benefits 1) Food and meal allowance;
given to or received by workers over and above their ordinary 2) Non-conributory retirement plan
earnings or wages. 3) Monthly ECOLA;
4) Full 13th month pay;
 Requirements for deduction of value of facilities: Exceptions:
1) Proof that such facilities are customarily furnished by the trade; 1) Correction of error;
2) The provision of deductible facilities must be accepted in writing 2) Negotiated benefits;
by the employee; 3) Wage order compliance;
3) Facilities must be charged at fair and reasonable value. 4) Benefits on reimbursement basis;
5) Recalissification of position; 1) In case of force majeure rendering direct payment impossible – but
6) Contingent benefits or conditional bonus; with written authority given by the worker;
7) Incentives for productivity. 2) Where the worker has died – payment to the heirs without the
necessity of intestate proceedings. The claimants, if all of age, shall
Art. 101 – Payment by results . (Piece rate). execute an affidavit aattesting to their relationship to the deceased
Night differentials; holiday pay; and the fact that they are the heirs to the exclusion of all other
1) Under supervision – entitled to night differential; holiday pay; persons. If any of the heirs is a minor, the affidavit shall be executed
2) No supervision – not covered by the rules. on his behalf by his natural guardian or next of kin. The affidavit shall
Basis for computation – average daily earnings during 7-day period be presented to the employer who shall make payment through the
immediately preceding the regular holiday. Secretary of Labor or his representative.
Entitlement ot 13th month pay:
Art. 106 – Contractor or Subcontractor – Failure of the contractor or
Art. 102 – Forms of Payment – subcontractor to pay the wages of the workers, the employer shall be jointly and
Payment in checks or money order allowed if customary on date of the severally liable with his contractor or subcontractor to osuch employees to tohe
effectivity of the code; special circumstances as specified in appropriate extent of the work performed under the contract in the same manner and extent
regulations issued by the Secretary of Labor that he is liable to employees directly employed by him.

Ar. 103 – Time of Payment –At least every two weeks or twice a month, intervals Art. 107 – Indirect Employer – Same as preceding article. This applies to any
not exceeding sixteen days. person, partnership, association or corporation which, not being an empoyer
contracts with an independent contractor for the performance of any work, task,
For employees engage to perform a task which cannot be completed in two job, or project.
weeks –
- Payments are made at intervals of not mre than 16 days in Art. 108 – Posting of Bond – An employer or indirect employer may require the
proportion to the amount of work completed; subcontractor to put up a bond equal to the cost of labor to answer for the wages
- Final settlement is made upon completion of the work. due the employees should the contractor fail to pay the same.

Art. 104 – Place of Payment – must be paid at, or near the place of undertaken Art. 109 – Solidary Liability – Trilateral relationship: 1) the principal; 2) the
except as otherwise provided by such regulations of the Secretary of Labor under contractor/
conditions to ensure greater protection of wages. subcontractor; and 3) the workers.

Exceptions:  The cooperative as a contractor-employer?


- When it cannot be effected at or near the place of work for such  Memorandum Circular No 2012-12
reasons as deterioration of peace and order conditions, or by reason
of impending emergencies like flood etc. Art. 110. – Workers’ preference in case of Bankruptcy – claims of workers, before
- When the employer provides free transportation to qne gqdk; government and other creditors may be paid.
- Under analogous circumstances provide that the time spent for
getting their salaries are considered compensable; Art. 111 – Attorney’s fees – not more than 10% of the wages recovered. But
- Prohibited: payment of wages in any bar, night club, or day club, etc. between client and lawyer, it could be quantum meruit.
 Non-lawyers not entitled to attorney’s fees;
Payment through banks – approved by at least 25% of employees; bank is  PAO lawyers not entited.
located within 1 km radius to a commercial bank’
Art. 112 – Non-interference in disposal of wages –
Payment through ATM – allowed under Labor Advisory dated 25 November Art. 113 – Wage Deduction -
1996. Exceptions:
1) Where worker is insured with his consent and the deduction is to
Art. 105 – Direct Payment of Wages – Wages shall be paid directly to the recompense employer for premiums paid;
employee. 2) For union dues, where the right of union and workers to check off
has been recognized by the employer; with written consent of worker
Exceptions: (except non-union members who benefit from the provisions of the
CBA).;
3) In cases where employer is authorized by law or regulations issued
by the DOLE Secretary. Art. 126 – Prohibition against injunction – no injunction may be issued y any court
or tribunal against proceedings before the Regional Boards;
Art. 114 – Deposits for loss or damage –prohibited, except in trades, occupations
or business where requiring deposits is a recognized practice or is necessary Art. 127 – Non-Diminution of Benefits – No wage order shall provide for wages
and desirable as determined by the DOLE Secretary. lower than what had been fixed by Congress.
Art. 115 – Limitations – No deduction from deposits of an employee for the actual
amount of damage shall be done without first determining his responsibility for Art. 128 – Visitorial and Enforcement Power – visitorial power of the Secretary of
the loss or damage. the DOLE;
Art. 116 – Withholding of wages and kickbacks prohibited. Who determines existence of employer-employee relationship – still the labor
Art. 117 – Deduction to ensure employment. arbiter, not the Regional Director (People’s Broadcasting [Bombo Radyo Phil.,
Art. 118 – Retaliatory measures – Inc.] vs. The Sec. Of Labor, et al., G. R. No. 179652, 8 May 2009.) vs. Jethro
Ar. 119 – False Reporting – Intelligence and Security Corp., et al., vs. Hon. Sec. Of Labor, G. R. No. 172537,
Art. 120 – Creation of Naitonal Wages and Productivity Commission- 14 August 2009 – the Regional Director has quasi-judicial powers.
Aart. 121 – Powers and Functions of the Commission – RA No. 6727 (Wage
Rationalization Act) – rationale for creation – “need for a group of “thinking men Bombo Radyo revisited – Modified in an en banc decision of the Supreme Court
and women” bound by statutory standards. issued on 6 March 2012, [G. R. No. 179652]
Art. 122 – Wage Order – RTWPB fixes minimum wage; appeal to NWPC.
 Wage distortionCBA vis-à-vis wage orders – CBA creditability
NOTE: Publication, public hearings, mandatory. (Cagayan Sugar Milling  Non-diminution of benefits
Co., vs. Sec. Of Labor, et al., G. R. No. 128399, 15 Jamuary 1988).  Worker’s preference in case of bankruptcy
 Labor Code provisions for wage protection
On 16 November 1993 Regional Wage Board passed Wage Order No.  Allowable deductions without employee’s consent
R02—02 providing increase in minimum wage in Region II. More than a year  Attorney’s fees and union service fee in labor cases
later, the Board passed Wage Order R02-02-A amending Wage order No. R002-  Criteria/factors for wage setting
02 granting instead for an across the board wage increase, retroactive to date of
effectivity of Wage Order 02-02. Rest day
 Right to weekly rest day
Ruling: Wage Order 02-02A was struck down as a violation of Art. 123 of
 Preference of the employee
the Labor Code.
 When work on rest day authorized
Art. 124 – Standard/Criteria for minimum wage fixing – ________________
1) Demand for living wage; Martin Niemöller (1892–1984) was a prominent Protestant pastor who emerged
2) Wage adjustment vis-a-vis consumer price index; as an outspoken public foe of Adolf Hitler and spent the last seven years of Nazi
3) Cost of living and changes or increases thereon; rule in concentration camps.
4) The needs of the workers and their families; Niemöller is perhaps best remembered for the quotation:
5) The need of industries to invest in the countryside; First, they came for the Socialists, and I did not protest
6) Improvements in standards of living;
7) Prevailing wage levers;
Because I was not a Socialist.
8) Fair return of capital invested and capacity to pay of employers; Then they came for the Trade Unionists, and I did not protest
9) Effects on employment generation and family income; and,1`9ui Because I was not a Trade Unionist.
10) The equitable distribution and wearth along imperatives of economic Then they came for the Jews, and I did not protest
and social development. Because I was not a Jew.
Then they came for me—and there was no one left to speak for me.
Wage distortion – wage increase vs. CBA provisions. NOT STRIKEABLE.
Liability of contractors – the principal is liable; contract deemed amended as
regards wages.

Art. 125 – Freedom to Bargain –wage order cannot prevent employees from
bargaining for higher wages with their employer.

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