LABOR LAW
The State shall assure the
- signed by Marcos on May 1, 1947, and took effect on Nov. 1, 1974
- a set of substantive and procedural laws that prescribe the
principal rights and responsibilities of the industrial participants, so
as to institute social justice.
LABOR STANDARDS
- minimum requirements prescribed by existing laws, rules and
regulations relating to wages, hours of work, cost-of-living
allowance, and other monetary and welfare benefits, including
occupational, safety, and health standards.
LABOR RELATIONS
- defines the status, rights and duties, and the institutional
mechanism that govern the individual and collective infractions of
employers, employees or their representatives.
- issues about the employment tenure and termination
SOCIAL LEGISLATION
- laws that provide particular kinds of protection or benefits to
society or segments thereof in furtherance of social justice.
- definition is broader than labor law.
SOCIAL JUSTICE
- is the raison d’etre of labor laws, their basis is the police power of
the State.
- promotion of the welfare of all the people
RELATED LAWS TO LABOR CODE:
1. Art. 1700 of CC which describes basically the nature of labor-
management relations.
2. Art. 289 of RPC which punishes the use of violence or threats by
either employer or employee.
3. Other special laws such as SSS, GSIS, Agrarian Reform, 13th
Month Pay, and the Magna Carta for Public Health Workers.
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
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relations between workers and employers.
rights of workers to self-organization, collective bargaining, security
of tenure, and just and humane conditions of work.
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.
RAISON D’ETRE: Employer stands on higher footing than the
employee.
BASIS: Art. 2, Sec. 18 of the Constitution, which declares as a State
policy: “The State affirms labor as a primary social economic force. It
shall protect the rights of workers and promote their welfare.”
RIGHTS OF WORKERS UNDER THE CONSTITUTION:
1. to organize themselves;
2. to conduct collective bargaining or negotiation with management;
3. to engage in peaceful concerted activities, including to strike in
accordance with law;
4. to enjoy security of tenure;
5. to work under humane conditions;
6. to receive a living wage; and
7. to participate in policy and decision-making processes affecting
their rights and benefits as may be provided by law.
RIGHTS OF CAPITAL (Employers) UNDER THE CONSTITUTION:
“The State recognizes the indispensable role of the private sector,
encourages private enterprises, and provides incentives to needed
investments.”
MANAGEMENT RIGHTS OF THE CAPITAL:
1. Right to return of investment and to make profit
2. Right to prescribe rules
3. Right to select employees
4. Right to transfer or discharge employees
RESTRICTIONS TO MANAGEMENT RIGHTS:
(1) Law;
(2) Contract;
(3) General principles of fair play and justice.
Art. 5 - Rules and Regulations — The DOLE 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 15 days after announcement of their adoption in newspaper
of general circulation.
Note: A rule or regulation promulgated by an administrative body,
such as DOLE; to implement a law, in excess of its rule-making
authority, is void.
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.
Notes:
(1) Labor Code applies only to GOCC’s without original charter or
those incorporated under the Corporation Code, but not to
GOCC’s with original charter or those created by Congress.
(2) Labor Code applies although there is no employer-employee
relationship.
GOCC’s without original charter:
1. Philippine National Oil Corporation - Energy Development
Corporation (PNOC-EDC)
2. Food Terminal Inc. (FTI)
3. National Housing Authority (NHA)
LABOR CODE DOES NOT APPLY TO GOVERNMENT AGENCIES
(they don't have the right to strike) such as:
(1) National Parks Development Committee (in case of labor dispute,
the Public Sector Labor-Management Council has jurisdiction)
(2) Employees of Social Security System (in case of strike, RTC has
jurisdiction to hear the petition to enjoin the strike)
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OVERSEAS FILIPINO WORKER/MIGRANT WOKER
- a person who is to be engaged, is engaged or has been engaged
in a remunerated activity in a state which he or she is not a citizen,
or on board a vessel navigating the foreign seas, other than a
government ship used for military or non-commercial purposes, or
on an installation located offshore or on high seas.
WORKER
- any member of the labor force, whether employed or unemployed.
RECRUITMENT AND PLACEMENT
- 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 2 or more persons shall be deemed engaged in
recruitment and placement.
- applies to both local and overseas employment.
PRIVATE FEE-CHARGING EMPLOYMENT AGENCY
- 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.
LICENSE
- a document issued by the Department of Labor authorizing a
person or entity to operate a private employment agency.
PRIVATE RECRUITMENT ENTITY
- 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.
AUTHORITY
- 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.
SEAMAN
- any person employed in a vessel engaged in maritime navigation.
OVERSEAS EMPLOYMENT
- employment of a worker outside the Philippines.
EMIGRANT
- any person, worker or otherwise, who emigrates to a foreign
country by virtue of an immigrant visa or resident permit or its
equivalent in the country of destination.
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.
ENTITIES THAT ARE AUTHORIZED TO RECRUIT AND PLACE
WORKERS FOR LOCAL OR OVERSEAS EMPLOYMENT:
1. Public Employment Offices (PESO)
2. Private Employment Agencies
3. Shipping or Manning agents or representatives
4. POEA
5. Construction contractors if authorized to operate by DOLE and
the Construction Industry Authority
6. Members of the diplomatic corps although hirings done by them
have to be processed through POEA
7. Other persons or entities as may be authorized by DOLE
Secretary
POEA HAS ORIGINAL AND EXCLUSIVE JURISDICTION TO
HEAR AND DECIDE (Appealable to Secretary of Labor):
1. 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
2. Disciplinary action cases and other special cases which are
administrative in character, involving employees, principals,
contracting partners and Filipino migrant workers.
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Art. 18 - Ban on Direct-Hiring — No foreign employer may hire a
Filipino worker for overseas employment except through the Boards
and entities authorized by the DOLE. Direct-Hiring by members of the
diplomatic corps, international organizations and such other
employers as may be allowed by the DOLE is exempted from this
provision.
Note: Their hiring has to be processed by POEA.
DOES LABOR CODE AND ITS IRR COVERS A FILIPINO
WORKER ABROAD?
- YES. Pursuant to Lex Loci Contractus Principle which is the law of
the place where the contract is made, governs in this jurisdiction.
MINIMUM PROVISIONS IN EMPLOYMENT CONTRACTS FOR
OFW UNDER POEA-SEC (Standard Employment Contract):
1. Complete name and address of the employer/company;
2. Position and job site of the OFW
3. Basic Monthly Salary, including benefits and allowances and
mode of payment. The salary shall not be lower than the
prescribed minimum wage in the host country or prevailing
minimum wage in the NCR of PH, whichever is higher;
4. Food and accommodation or the monetary equivalent which shall
be commensurate to the cost of living in the host country, or off-
setting benefit;
5. Commencement and duration of contract;
6. Free transportation from and back to the point of hire, or off-
setting benefits, and free inland transportation at the job site or
off-setting benefits;
7. Regular work hours and day off;
8. Overtime pay for services rendered beyond the regular working
hours, rest days and holidays;
9. Vacation and sick leave for every year of service;
10. Free emergency medical and dental treatment;
11. Just causes for termination of the contract or of the services of
the workers, taking into consideration customs, traditions, norms,
mores, practices, company policies and the labor laws and social
legislation of the host country;
12. Settlement of disputes;
13. Repatriation of worker in case of imminent danger due to war,
calamity, and other analogous circumstances, at the expense of
the employer; and
14. In case of worker’s death/repatriation of OFW human remains
and personal belongings, at the expense of the employer.
NOTES:
(1) Parties to overseas employment contracts are allowed to stipulate
other terms and conditions and other benefits. These benefits
should be over and above the minimum requirements. Said
benefits shall not be contrary to law, public policy and morals.
(2) The licensed recruitment agency shall, prior to the signing of the
employment contract, inform the OFW of their rights and
obligations, and disclose the full terms and conditions of
employment. It shall likewise ensure that the OFW is provided
with a copy of the POEA-approved contract, to give the OFW
ample opportunity to examine the same.
(3) An agreement that diminishes the employee’s pay and benefits
as contained in the POEA-approved contract is void, unless such
subsequent agreement is approved by POEA. (See. Chavez vs.
Bonto-Perez, 1995 case)
(4) Unilateral termination or “Employment-at-will (EAW) contract” is
not allowed to a Filipino employed in the Philippines, but if a
Filipino is working in a foreign land where EAW is lawful, it is
allowed. (See GBMLT vs. Malinao, 2015 case)
Art. 22 - Mandatory Remittance of Foreign Exchange Earnings —
It shall be 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 and Employment.
Note: The percentage of foreign exchange remittance ranges from
50-80% of the basic salary, depending on the worker’s kind of job.
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
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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.
Note: POEA Rules also disqualify persons with derogatory records
such as those convicted for illegal recruitment or other crimes
involving moral turpitude. The same prohibition extends to any official
or employee of DOLE, POEA, OWWA, DFA and other government
agencies directly involved in the implementation of RA 8042 or any of
their relatives within the 4th civil degree.
Art. 27 - Only Filipino citizens or corporations, partnerships or entities
at least 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.
CAPITALIZATION:
1. Private employment agency for local employment
- In case of single proprietorship or partnership = minimum
networth of P1M
- In case of corporation = minimum paid up capital of P1M
2. Private recruitment or manning agency for overseas employment
- In case of single proprietorship or partnership = minimum
capitalization of P5M.
- In case of corporation = minimum paid up capital of P5M.
DISQUALIFIED TO ENGAGE IN THE BUSINESS OF
RECRUITMENT AND PLACEMENT:
1. Local Employment
a. Those who are convicted of illegal recruitment, trafficking
in persons, anti-child labor violation, or crimes involving moral
turpitude;
b. Those against whom probable cause or prima facie finding
of guilt for illegal recruitment or other related cases exist particularly
to owners or directors of agencies who have committed illegal
recruitment or other related cases;
c. Those agencies whose licenses have been previously
revoked or cancelled by the Department under Sec. 54 of DO
141-14;
d. Cooperatives whether registered or not under the
Cooperative Act of the Philippines;
e. Law enforcers and any official and employee of DOLE;
f. Sole proprietors of duly licensed agencies are prohibited
from securing another license to engage in recruitment and
placement;
g. Sole proprietors, partnerships or corporations licensed to
engage in private recruitment and placement for local employment
are prohibited from engaging in job contracting or sub-contracting
activities. (Sec. 5 of DO 141-14)
2. Overseas Employment
a. Travel and sales agencies of airline companies;
b. Officers or members of the Board of any corporation or
partners in a partnership engaged in the business of travel agency;
c. Corporations and partnerships, where any of its officers,
members of the board or partners is also an officer, members of the
board or partner of a corporation or partnership engaged in the
business of travel agency;
d. Individuals, partners, officers or directors of an insurance
company who make, propose or provide an insurance contract under
the compulsory insurance coverage for agency-hired OFWs;
e. Sole proprietors partners or officers and members of the
board with derogatory records, such as but not limited to the
following:
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1. Those convicted, or against whom probable cause or
prima facie finding of guilt for illegal recruitment or other related
crimes or offenses committed in the course of, related to, or resulting
from, illegal recruitment or for crimes involving moral turpitude;
2. Those agencies whose licenses have been revoked for
violation of RA 8042 and its IRR;
3. Those agencies whose licenses have been cancelled, or
those who, pursuant to the Order of the Administrator, were included
in the list of persons with derogatory record for violation of
recruitment laws and regulations; and
f. Any official or employee of DOLE, POEA, OWWA, DFA,
DOJ, DOH, BI, IC, NLRC, TESDA, CFO, NBI, PNP, Civil Service
Aviation Authority (CAAP), International airport authorities, and other
government agencies directly involved in the implementation of RA
8042, and/or any of his/her relatives within the 4th civil degree of
consanguinity or affinity.
VALIDITY OF LICENSE:
1. Local Employment
- 3 years from the date of issuance unless sooner revoked or
cancelled.
- An application for renewal of license must be filed not
earlier than 60 days but not later than 30 days before its expiration.
The validity of the renewed license shall start on the date of
expiration of the previous license.
2. Overseas Employment
- POEA issues provisional license valid for 2 years. If
upgraded to regular license, it is valid for the full term of 4 years from
the date of issuance of the provisional license. The application to
upgrade should be filed within 3 months before expiration of the
provisional license.
To be upgraded, it must be shown that the recruiter has
deployed at least 100 workers to its new principal, and a certificate
stating that the escrow deposit remains at P1M.
Note: The provisional license does not authorize recruitment for
domestic employment.
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.
General Rule:
Licensees or holders of authority may recruit only at their authorized
address.
Exception:
Provincial recruitment may be allowed upon written authority from
POEA, and a copy thereof shall be presented to the DOLE/Regional
Director concerned. The recruitment must be supervised by a DOLE
employee or officer designated by the RD. Such recruitment for
overseas employment cannot be lawfully done on a house-to-house
basis, in residences, or in secluded places.
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.
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.
Art. 34 - Prohibited practices — It shall be unlawful for any
individual, entity, licensee, or holder of authority:
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1. 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;
2. To furnish or publish any false notice or information or document
in relation to recruitment or employment;
3. 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.
4. 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;
5. 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;
6. 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;
7. To obstruct or attempt to obstruct inspection by the Secretary of
Labor or by his duly authorized representatives;
8. 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.
9. 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;
10. 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
11. To withhold or deny travel documents from applicant workers
before departure for monetary or financial considerations other
than those authorized under this Code and its implementing rules
and regulations.
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.
Notes:
(1) POEA and DOLE Secretary have concurrent jurisdiction to
suspend or cancel a license to recruit employees for overseas
employment.
(2) Recruitment agency is solidarily liable for the unpaid salaries of a
worker it recruited for employment with a foreign principal.
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.
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.
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 DOLE 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 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
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recruitment is deemed committed in large scale if committed against
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.
2 KINDS OF ILLEGAL RECRUITER:
1. Licensee
2. Non Licensee
ILLEGAL RECRUITMENT BY NON-LICENSEE:
- Any recruitment activity, done either for local or overseas
employment, whether for profit or not, by any individual or entity
without the required license from the BLE or POEA.
OTHER ILLEGAL RECRUITMENT ACTS BY EITHER A NON-
LICENSEE OR A LICENSEE:
1. Overcharging of the loan;
2. False Notice or information in relation to recruitment or
employment;
3. Misrepresentation to secure license
4. Inducing worker 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;
5. Inducement not to employ any worker who has not applied for
employment through his agency;
6. Recruitment for harmful jobs
7. Obstructing inspection by the Secretary or his/her authorized
representatives;
8. Contract substitution that will prejudice the worker, without the
approval of the Department
9. Misrepresentation in Documentation;
10. Non-submission of reports on the status of employment, and
other informations as may be required by Secretary under penalty
of law;
11. Involvement in travel agency;
12. Withholding of travel documents from applicant workers before
departure for monetary of financial considerations;
13. Failure to deploy without valid reason as determined by DOLE;
14. Failure to reimburse expenses incurred by the worker in
connection with his/her documentation and processing for
purposes of deployment;
15. To allow a non-filipino citizen to head or manage a recruitment
agency;
UNLAWFUL ACTS:
1. Excessive interest above 8% per annum in a loan, which will be
used for payment of legal and allowable placement fees; and to
make the migrant worker, issue a PDC in relation to the loan;
2. Imposing a specified loan entity;
3. Non-renegotiation of Loan;
4. Imposing a specified medical entity;
5. Imposing a specified training entity;
6. Violation of a suspension of a recruitment agency; and
7. Collection of insurance premiums by Recruitment agency or a
foreign principal to pass on the OFW or deduct from his/her
salary the payment of the cost of insurance fees.
ILLEGAL RECRUITMENT AS ECONOMIC SABOTAGE:
1. When illegal recruitment is committed by a syndicate, i.e., if
carried out by a group of 3 or more persons conspiring and/or
confederating with one another in carrying out any unlawful or
illegal transaction
2. When illegal recruitment is committed by a large scale, i.e., if
committed against 3 or more persons individually or as a group.
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SIMPLE ILLEGAL RECRUITMENT:
- Where illegal recruitment is proved, but the elements of “large
scale” or “syndicate” are absent, the accused can be convicted
only of “simple illegal recruitment.”
Note: In People vs. Calonzo, the Court held that, “a person
convicted for illegal recruitment under the Labor Code can be
convicted of Estafa under the RPC provided that the elements of
the crime are present, to wit: (a) the accused defrauded another
by abuse of confidence or by means of deceit; and (b) that
damage or prejudice capable of pecuniary estimation is caused
to the offended party or 3rd person.”
IT IS ENOUGH THAT THESE RECRUITERS GIVE THE
IMPRESSION THAT THEY HAVE THE ABILITY TO ENLIST
WORKERS FOR JOB PLACEMENT ABROAD IN ORDER TO
INDUCE THE LATTER TO TENDER PAYMENT OF FEES.
PERSONS LIABLE:
(1) Those who actively and consciously participated in the illegal
recruitment.
(2) In case of corporations, those corporate officers who had
knowledge of and allowed the illegal recruitment.
PENALTIES:
(1) Any person found guilty of illegal recruitment shall suffer the
penalty of imprisonment of not less than 12 years and 1 day but
not more than 20 years AND a fine of not less than P1Million nor
more than P2Million.
(2) Penalty of life imprisonment AND a fine of not less than P2Million
nor more than P5Million shall be imposed if illegal recruitment
constitutes ECONOMIC SABOTAGE
Provided, however, that the maximum penalty shall be
imposed if the person illegally recruited is less than 18 years old or
committed by a non-licensee or non-holder of authority
(3) Any person found guilty of any prohibited acts shall suffer the
penalty of imprisonment of not less than 6 years and 1 day but
 not more than 12 years AND a fine of not less than P500,000 nor
more than P1Million.
(4) If the offender is an alien, he or she shall, in addition to the
penalties herein prescribed, be deported without further
proceedings.
(5) In every case, conviction shall cause and carry the automatic
revocation of the license or registration of the recruitment/
manning agency, lending institutions, training school or medical
clinic.
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.
Notes:
(1) This only requires non-resident aliens to secure employment
permit.
(2) For immigrants and resident aliens, what is required is Alien
Employment Registration Certificate (AERC)
(3) Enterprises registered under the Omnibus Investment Code (EO
226) may, for a limited period, employ foreign nationals in
technical, supervisory, or advisory positions.
EFFECT OF LACK OF WORK PERMIT
- A foreign national working in PH without the required employment
permit may file with the NLRC an illegal dismissal case, and may win
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favorable judgment — may be recognized as an employee and the
dismissal may be declared invalid, depending on the findings of
NLRC. However, the alien cannot be awarded monetary benefits.
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 IRR shall be punished in
accordance with the provisions of Articles 303 and 304 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 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.
Art. 58 - Definition of Terms — As used in this Title:
(a) “Apprenticeship” means practical training on the job
supplemented by related theoretical instruction.
(b) An "apprentice" is a worker who is covered by a written
apprenticeship agreement with an individual employer or any of
the entities recognized under this Chapter.
(c) An “apprenticeable occupation" means any trade, form of
employment or occupation which requires more than 3 months of
practical training on the job supplemented by related theoretical
instruction.
(d) "Apprenticeship agreement" is an employment contract wherein
the employer binds himself to train the apprentice and the
apprentice in turn accepts the terms of training.
Art. 59 - Qualifications of apprentice — To qualify as an
apprentice, a person shall:
(a) Be at least 15 years of age (amended by RA 9231);
(b) Possess vocational aptitude and capacity for appropriate tests;
and  — Upon complaint of any interested person or upon its own initiative,
(c) Possess the ability to comprehend and follow oral and written
instructions.
Trade and industry associations may recommend to the Secretary of
Labor appropriate educational requirements for different occupations.
Art. 60 - Employment of apprentices — Only employers in the
highly technical industries may employ apprentices and only in
apprenticeable occupations approved by the Secretary of Labor and
Employment.
Note: TESDA IMPLEMENTS THE APPRENTICESHIP PROGRAM
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 6
months. Apprenticeship agreements providing for wage rates below
the legal minimum wage, which in no case shall start below 75% 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.
Art. 64 - Sponsoring of apprenticeship program — Any of the
apprenticeship schemes recognized herein may be undertaken or
sponsored by a single employer or firm or by a group or association
thereof or by a civic organization. Actual training of apprentices may
be undertaken:
1. In the premises of the sponsoring employer in the case of
individual apprenticeship programs;
2. In the premises of one or several designated firms in the case of
programs sponsored by a group or association of employers or by
a civic organization; or
FJTR REVIEWER - LABOR
3. In a Department of Labor and Employment training center or
other public training institution.
Art. 65 - Investigation of violation of apprenticeship agreement
the appropriate agency of the DOLE 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 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.
Art. 68 - Aptitude testing of applicants — Consonant with the
minimum qualifications of apprentice-applicants required under this
Chapter, employers or entities with duly recognized apprenticeship
programs shall have primary responsibility for providing appropriate
aptitude tests in the selection of apprentices. If they do not have
adequate facilities for the purpose, the DOLE shall perform the
service free of charge.
Art. 69 - Responsibility for theoretical instruction —
Supplementary theoretical instruction to apprentices in cases where
the program is undertaken in the plant may be done by the employer.
If the latter is not prepared to assume the responsibility, the same
may be delegated to an appropriate government agency.
Art. 70 - Voluntary organization of apprenticeship programs;
exemptions —
1. The organization of apprenticeship program shall be primarily a
voluntary undertaking by employers;
2. When national security or particular requirements of economic
development so demand, the President of the Philippines may
require compulsory training of apprentices in certain trades,
occupations, jobs or employment levels where shortage of
trained manpower is deemed critical as determined by the
Secretary of Labor and Employment. Appropriate rules in this
connection shall be promulgated by the Secretary of Labor and
Employment as the need arises; and
3. Where services of foreign technicians are utilized by private
companies in apprenticeable trades, said companies are
required to set up appropriate apprenticeship programs.
Art. 71. Deductibility of training costs — An additional deduction
from taxable income of 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 DOLE: Provided, further, That such deduction shall
not exceed 10% 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.
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.
Notes:
(1) There is no employer-employee relationship between students
and schools.
(2) If the student injures a 3rd person, the school is liable.
Art. 73 - Learners defined — Learners are persons hired as
trainees in semi-skilled and other industrial occupations which are
non-apprenticeable and which may be learned through practical
FJTR REVIEWER - LABOR
training on the job in a relatively short period of time which shall not
exceed 3 months.
LEARNERS APPRENTICE
trains in a semi-skilled job or in trains only in a highly technical
industrial occupations that industry which training exceeds
require training for less than 3 3 months
months
employer is committed to hire no such commitment exists
the learner-trainee after the
training period
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.
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 3
months;
(c) The wages or salary rates of the learners which shall begin at not
less than 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 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.
Art. 77 - Penalty clause — Any violation of this Chapter or its
implementing rules and regulations shall be subject to the general
penalty clause provided for in this Code.
Chapter III
HANDICAPPED WORKERS
Art. 78 - Definition — Handicapped workers are those whose
earning capacity is impaired by age or physical or mental deficiency
or injury.
Art. 79 - When employable — Handicapped workers may be
employed when their employment is necessary to prevent curtailment
of employment opportunities and when it does not create unfair
competition in labor costs or impair or lower working standards.
Art. 80 - Employment agreement — Any employer who employs
handicapped workers shall enter into an employment agreement with
them, which agreement shall include:
(a) The names and addresses of the handicapped workers to be
employed;
(b) The rate to be paid the handicapped workers which shall not be
less than 75% of the applicable legal minimum wage;
(c) The duration of employment period; and
(d) The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by the
Secretary of Labor or his duly authorized representative.
Art. 81 - Eligibility for apprenticeship — Subject to the appropriate
provisions of this Code, handicapped workers may be hired as
FJTR REVIEWER - LABOR
apprentices or learners if their handicap is not such as to effectively
impede the performance of job operations in the particular
occupations for which they are hired.
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.
QUALIFIED INDIVIDUAL WITH DISABILITY
- an individual with disability who, with or without reasonable
accommodation, can perform the essential functions of the
employment position that such individuals holds or desires.
NOTE: Even handicapped persons, employed by a bank to
accommodate the request of the social welfare secretary, may
become regular employees. (See Bernardo vs. NLRC)
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.
"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.
ESSENTIALITY OF EMPLOYMENT RELATIONSHIP:
(1) Contract v. Fact = Question of Law
(2) If existence of Employer-Employee Relationship (EER) depends
upon the facts of each case = Question of Fact.
EMPLOYER
- any person, natural or juridical, domestic or foreign, who carries on
in PH any trade, business, industry, undertaking or activity of any
kind and uses the services of another person who is under his
order as regards the employment.
EMPLOYEE
- any person who performs services for an employer in which either
or both mental and physical efforts are used and who receives
compensation for such services, where there is employer-employee
relationship.
4 FOLD TEST OF EMPLOYMENT RELATIONSHIP:
(1) selection and engagement of the employee;
(2) payment of wages;
(3) power of dismissal;
(4) employer’s power to control the employee with respect to the
means and methods by which the work is to be accomplished.
2-TIERED APPROACH (FRANCISCO v. NLRC):
(1) The putative employer’s power to control the employee with
respect to the means and methods by which the work is to be
accomplished; and
(2) the underlying economic realities of the activity or relationship
(ECONOMIC DEPENDENCE TEST) which depends upon the
circumstances of the whole economic activity, such as: (a) the
extent to which the services performed are an integral part of the
employer’s business; (b) the extent of the worker’s investment in
equipment and facilities; (c) the nature and degree of control
exercised by the employer; (d) the worker’s opportunity for profit
and loss; (e) the amount of initiative, skill, judgment or foresight
required for the success of the claimed independent enterprise;
(f) the permanency and duration of the relationship between the
worker and the employer; and (g) the degree of dependency of
the worker upon the employer for his continued employment in
that line of business. — The proper standard of economic
FJTR REVIEWER - LABOR
dependence is “Whether the worker is dependent on the alleged
employer for his continued employment in that line of business.”
KINDS OF EMPLOYEES:
(1) As to Tenure:
Temporary
- stays for a job for a defined or pre-agreed period
- project-based or season-related jobs
- Fixed-period employee
- probation employee (6 months period)
Permanent (regular)
- appointed to a job for an indefinite period
- one who is doing a job which is “necessary or desirable” to the
usual business of employer.
(2) As to Statutory benefits — entitlement and non-entitlement to
employment benefits is a basis of employees’ classification,
although entitlement depends on which benefit is being claimed
(3) As to wage determination — basis of pay is not a test whether the
payee is an employee or not. The test of being an employee are
the “4-fold Test” or the “Economic dependence.”
(4) As to Salary Component — (a) Daily-paid; or (b) Monthly-paid
(5) As to Rank — (a) Managerial; (b) Supervisory; or (c) Rank-and-
file
(6) As to Union Membership — managerial employees are ineligible
for union membership; Only supervisors or rank-and-file may be
classified into union or non-union members.
EMPLOYEES THAT ARE NOT COVERED BY LAW ON
CONDITIONS OF EMPLOYMENT:
(1) Government Employees except those government offices that are
incorporated under the Corporation Code;
(2) Managerial Employees which includes supervisors;
(3) Field/sales personnels;
(4) Members of the family of the employer, who are dependent on
him for their support;
(5) Domestic Helpers;
(6) 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 or the enjoyment thereof, or
minister to personal comfort, convenience or safety of the
employer, as well as the members of the employer’s household;
(Sec. 2(d), Rule 1, IRR of Book 3)
(7) Workers paid by result such as those paid per task, piece-rate
workers, and taxi drivers who do not observe any working hours.
Notes:
(1) House personnel hired by a ranking company official, a foreigner,
but paid for by the company itself, to maintain a staff house
provided for the official, are not the latter’s domestic helpers but
regular employees of the company. (Cadiz v. PH Sinter
Corporation)
(2) Waiters of a hotel is covered by this provision.
Art. 83 - Normal hours of work — The normal hours of work of any
employee shall not exceed 8hrs a day.
Health personnel in cities and municipalities with a population of at
least 1,000,000 or in hospitals and clinics with a bed capacity of at
least 100 shall hold regular office hours for 8 hours a day, for 5 days
a week, exclusive of time for meals, except where the exigencies of
the service require that such personnel work for 6 days or 48 hours,
in which case, they shall be entitled to an additional compensation of
at least 30% of their regular wage for work on the 6th 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.
Notes:
(1) Part time work is not prohibited.
(2) Work-shift exceeding 8 hours is valid as long as there is overtime
pay.
FJTR REVIEWER - LABOR
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.
HOURS WORKED:
(a) Waiting time spent by an employee shall be considered working
time if waiting is considered an integral part of his work or if the
employee is required or engaged by an employer to wait.
(b) Working while eating
(c) Working while sleeping if stipulated
(d) On Call
(e) Travel that is all in the day’s work.
(f) Travel away from home when it cuts across the employee’s
workday.
(g) Attendance at lectures, meetings, training programs, and similar
activities need not be counted as working time the following 3
criteria are met: (a) Attendance is outside the employee’s regular
working hours; (b) Attendance is voluntary; (c) The employee
does not perform any productive work during such attendance.
(h) Time spent in adjusting grievance between employer and
employees during the time the employees are required by the
employer to be on the premises.
(i) Regular full-time monthly paid teachers in a private school are
entitled to salary and emergency cost-of-living allowance during
semestral breaks.
Notes:
(1) An employee kept “within reach” through a Cellphone or other
contact device is not an employee “at work” beyond his regular
work hours.
(2) Travel from home to work and work to home is not 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 60 minutes time-off for
their regular meals.
Notes:
(1) Where the lunch period is spent predominantly for the employer’s
benefit, and cannot be utilized in the employee’s own interests,
such time constitutes work time.
(2) Where work is continuous for several shifts, the meal time breaks
should be counted as working time for purposes of overtime
compensation (National Dev’t Company v. CIR)
(3) Meal time should not be shorter than 20 minutes and not less
than 60 minutes
(4) Meal time that is less than 20 minutes is a rest period, which is
considered as hours worked.
(5) Shortened Meal Break upon Employee’s Request is allowed
Art. 86 - Night shift differential — Every employee shall be paid a
night shift differential of not less than 10% of his regular wage for
each hour of work performed between 10pm and 6am.
Notes:
(1) Night Shift Differential cannot be waived.
(2) Burden of proof that there is payment of night differential rests on
the employer.
(3) Nightshift differential and overtime pay is computed separately.
Art. 87 - Overtime work — Work may be performed beyond 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
25% thereof. Work performed beyond 8 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 30% thereof.
COMPUTATION:
Overtime hourly work x No. of hours worked in excess of 8 hours.
WORKDAY
- the 24-hour period which commences from the time the employee
regularly starts to work. (i.e., 8 am to 8 am)
FJTR REVIEWER - LABOR
REQUISITES FOR OVERTIME WORK OF SEAMEN:
(1) actual service was rendered in excess of 8 hours
(2) proof that the said work was actually performed
GENERAL RULE: Overtime pay cannot be waived
EXCEPTIONS:
(1) When the employee will receive certain benefits and privileges
which is more than what will accrue to them in overtime pay;
(2) Compressed Workweek (# of workdays is reduced but # of
working hours is increased to more than 8 hours but not entitled
to overtime pay)
COMPRESSED WORKWEEK SCHEME is valid only if the the
following conditions are met:
(1) The scheme is expressly and voluntarily supported by majority of
the employees.
(2) Certification from an accredited safety organization that the work
beyond 8 hours is within the limits or levels of exposure set by
DOLE’s occupation safety and health standards
(3) DOLE Regional Offices is duly notified.
EFFECTS OF CWW:
(1) Total number of hours work per day shall not exceed 12 hours or
48 hours a week, otherwise work performed beyond said period
is subject to overtime pay.
(2) Shall in no case result in diminution of existing benefits.
Note: Reversion to the normal 8-hour workday shall not constitute a
diminution of benefits because it is a legitimate exercise of
management prerogative, provided that the employer give prior
notice of such reversion within a reasonable period of time to the
employees.
FLEXIBLE WORK ARRANGEMENTS (FWA)
- is a better alternative than outright termination of the services of
the employees or the closure of the establishment.
- Prior to FWA implementation, the DOLE Regional Office should be
notified through a prescribed report form. (Administrative
Requirement)

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:
(1) 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;  employer may require his employees to work on any day:
(2) 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;
(3) 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;
(4) When the work is necessary to prevent loss or damage to
perishable goods; and
(5) 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.
Chapter II
WEEKLY REST PERIODS
Art. 91. Right to weekly rest day —
FJTR REVIEWER - LABOR
(1) 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 24 consecutive hours after every 6 consecutive normal work
days.
(2) 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
(1) 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 and property, or
imminent danger to public safety;
(2) In cases of urgent work to be performed on the machinery,
equipment, or installation, to avoid serious loss which the
employer would otherwise suffer;
(3) In the event of abnormal pressure of work due to special
circumstances, where the employer cannot ordinarily be expected
to resort to other measures;
(4) To prevent loss or damage to perishable goods;
(5) 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
(6) 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 —
(1) Where an employee is made or permitted to work on his
scheduled rest day, he shall be paid an additional compensation
of at least 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.
(2) 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 30% of his 11. Christmas Day;
regular wage for work performed on Sundays and holidays. 12. Rizal Day (December 30)
(3) Work performed on any special holiday shall be paid an additional
compensation of at least 30% of the regular wage of the RULE:
employee. Where such holiday work falls on the employee’s A daily-paid or monthly-paid employee, even if he does not work on a
scheduled rest day, he shall be entitled to an additional regular days, he gets 100% his usual pay; if he does work on that
compensation of at least 50% of his regular wage. day, he gets 200%.
(4) Where the collective bargaining agreement or other applicable
employment contract stipulates the payment of a higher premium COVERAGE:
pay than that prescribed under this Article, the employer shall pay Holiday pay applies to all employees except:
such higher rate. (1) Government employees with original charter
(2) Retail and Service establishments regularly employing less than
SPECIAL NON-WORKING DAYS 10 workers
1. NINOY AQUINO DAY (August 21) (3) House helpers and persons in the personal service of another
2. ALL SAINTS DAY (November 1) (4) Managerial employees
3. LAST DAY OF THE YEAR (December 31) (5) Officers or members of managerial staff
(6) Field personnel and other employees whose time and
RULE: performance is unsupervised by the employer, including those
If a daily paid employee does not work on a special non-working day, who are engaged on task or contract basis, purely commission
he gets no pay; if he works, he gets his daily basic rate plus 30%. basis or those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance thereof.
Art. 94 - Right to holiday pay —
(a) Every worker shall be paid his regular daily wage during regular MUSLIM HOLIDAYS:
holidays, except in retail and service establishments regularly (1) New Year
employing less than 10 workers; (2) Birthday of the Prophet Muhammad
(b) The employer may require an employee to work on any holiday (3) Nocturnal Journey and Ascension of Prophet Muhammad
but such employee shall be paid a compensation equivalent to
twice his regular rate; and RULE:
(c) REGULAR HOLIDAY are: Muslims and Christians working within the Muslim areas may not
1. New Year’s Day; report for work on the days designated by law as Muslim Holidays
2. Maundy Thursday; and still be paid their regular rate.
3. Good Friday;
4. Araw ng Kagitingan (April 9); Art. 95 - Right to service incentive leave —
5. Labor Day (May 1); (a) Every employee who has rendered at least 1 year of service shall
6. Independence Day (June 12); be entitled to a yearly service incentive leave of 5 days with pay.
7. National Heroes Day (Last Monday of August) (b) This provision shall not apply to those who are already enjoying
8. Eid ul-Fitr the benefit herein provided, those enjoying vacation leave with
9. Eid ul-Adha pay of at least 5 days and those employed in establishments
10. Bonifacio Day (November 30); regularly employing less than 10 employees or in establishments

FJTR REVIEWER - LABOR

 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.
Art. 96 - Service charges — All service charges collected by hotels,
restaurants and similar establishments shall be distributed at the rate
of 85% for all covered employees and 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.
BASIS OF COMPUTATION:
The basis of conversion shall be the salary rate at the date of
commutation. The use and commutation of the SIL benefit may be on
pro-rata basis. (Convertible to cash)
PATERNITY LEAVE (only to married male employees)
- 7 days with pay
- Available only for the first 4 deliveries of the legitimate spouse with
whom the husband is living.
MATERNITY LEAVE (married or not married)
- 60 days for normal delivery
- 78 days for caesarian delivery
SOLO PARENT LEAVE
- 7 day parental leave shall not be non-cumulative.
BATTERED WOMAN LEAVE
- 10 days with pay
SPECIAL LEAVE (those who undergone surgery caused by
gynecological disorder)
- 2 months with pay
NOTES:
(1) SIL of Kasambahay is not commutable
FJTR REVIEWER - LABOR
(2) Sick Leave and Vacation Leave are voluntary benefits. Hence,
not commutable.
Title II

WAGE
Chapter I
PRELIMINARY MATTERS
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.
(d) "Agriculture" includes farming in all its branches and, among
other things, includes cultivation and tillage of soil, dairying, the
production, cultivation, growing and harvesting of any agricultural
and horticultural commodities, the raising of livestock or poultry,
and any practices performed by a farmer on a farm as an incident
to or in conjunction with such farming operations, but does not
include the manufacturing or processing of sugar, coconuts,
abaca, tobacco, pineapples or other farm products.
(e) "Employ" includes to suffer or permit to work.
(f) "Wage" paid to any employee shall mean the remuneration or
earnings, however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time, task,
piece, or commission basis, or other method of calculating the
same, which is payable by an employer to an employee under a
written or unwritten contract of employment for work done or to be
done, or for services rendered or to be rendered and includes the
fair and reasonable value, as determined by the Secretary of
Labor and Employment, of board, lodging, or other facilities
customarily furnished by the employer to the employee. "Fair and
 reasonable value" shall not include any profit to the employer, or
to any person affiliated with the employer.
FACILITIES SUPPLEMENT
wage deductible not wage deductible
benefit is part of the worker’s benefit given to employee as
basic wage extra remuneration above or
over his basic salary
Determined by their PURPOSE and not the kind of the item given.
Notes:
(1) In Legal terms, wage and salary are the same.
(2) FAIR DAY’S WAGE FOR FAIR DAY’S LABOR (No work, no pay)
(3) EQUAL PAY FOR EQUAL WORK (employees working in PH,
performing similar functions and responsibilities under similar
working conditions)
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.
Chapter II
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.
EXEMPTIONS FROM COVERAGE OF MINIMUM WAGE:
(1) Domestic helpers
(2) Homeworkers engaged in needle-work
FJTR REVIEWER - LABOR
(3) Workers employed in any establishment duly registered with
National Cottage Industries and Development Authority who are
working in their respective homes
(4) Workers in any duly registered Cooperatives
(5) Barangay Micro Business Enterprise (BMBE) whose total assets
including those arising from loans but exclusive of the land on
which the particular business office, plant and equipment are
situated, shall not be more than P3Million. (DTI has the sole
power to issue Certificate of Authority for BMBEs to avail the
benefits of RA 9178)
(6) Retail and Service establishments who employs not more than
10 employees upon application filed before the appropriate
Regional Board.
(7) Distressed establishments
(8) New business enterprises
(9) Establishments adversely affected by natural calamities.
RETAIL ENTERPRISE
- one engaged in the sale of goods that are commonly bought by
private individuals for personal or household use.
SERVICE ENTERPRISE
- engaged in providing personal service to individuals for their own or
household use.
Note: Ability of the employer to pay the minimum wage is immaterial
Art. 100. Prohibition against elimination or diminution of
benefits — Nothing in this Book shall be construed to eliminate or in
any way diminish supplements, or other employee benefits being
enjoyed at the time of promulgation of this Code.
REQUISITES:
(1) The grant of benefit is founded on a policy or has ripened into a
practice over a long period;
(2) the practice is consistent and deliberate;
(3) the practice is not due to error in the construction or application
of a doubtful or difficult question of law.
(4) the diminution or discontinuance is done unilaterally by the
employer.
EXCEPTION TO NON-DIMINUTION RULE:
(1) Correction of Error
(2) Negotiated Benefits
(3) Wage Order Compliance
(4) Benefits on Reimbursement basis
(5) Reclassification of Position done in good faith
(6) Contingent benefit or conditional bonus
(7) Productivity Incentives
Art. 101 - Payment by results — The Secretary of Labor and
Employment shall regulate the payment of wages by results,
including pakyao, piecework, and other non-time work, in order to
ensure the payment of fair and reasonable wage rates, preferably
through time and motion studies or in consultation with
representatives of workers’ and employers’ organizations.
2 GROUPS OF WORKERS PAID BY RESULTS:
(1) Those whose time and performance is supervised by the
employer (usually piece-rate workers, if performs in the company
premises)
(2) Those whose time and performance is unsupervised by the
employer (pakyaw and takay workers — not entitled to night
differential and service incentive leave)
BENEFITS PAYABLE TO PIECE-RATE WORKERS:
(1) Minimum wage
(2) Yearly SIL of 5 days with pay
(3) Night shift differential
(4) Holiday Pay
(5) Meal and Rest Periods
(6) Overtime Pay (conditional)
(7) Premium Pay (conditional)
(8) 13th Month Pay if the worker has rendered at least 1 month work
during the calendar year
(9) Other benefits granted by law, or CBA
FJTR REVIEWER - LABOR
Chapter III
PAYMENT OF WAGES
Art. 102 - Forms of payment — No employer shall pay the wages of
an employee by means of promissory notes, vouchers, coupons,
tokens, tickets, chits, or any object other than legal tender, even
when expressly requested by the employee.
Payment of wages by check or money order shall be allowed
when such manner of payment is customary on the date of effectivity
of this Code, or is necessary because of special circumstances as
specified in appropriate regulations to be issued by the Secretary of
Labor and Employment or as stipulated in a CBA.
Art. 103 - Time of payment — Wages shall be paid at least once
every 2 weeks or twice a month at intervals not exceeding 16 days. If
on account of force majeure or circumstances beyond the employer’s
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 2 weeks shall be subject to the
following conditions, in the absence of a CBA or arbitration award:
(a) That payments are made at intervals not exceeding 16 days, in
proportion to the amount of work completed;
(b) That final settlement is made upon completion of the work.
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.
Note: Payment through ATM is allowed under a Labor Advisory dated
Nov. 25, 1996.
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.
Art. 106 - Contractor or subcontractor — Whenever an employer
enters into a contract with another person for the performance of the
former’s work, the employees of the contractor and of the latter’s
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
FJTR REVIEWER - LABOR
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.
LEGITIMATE CONTRACTING
ELEMENTS:
(1) he conducts an independent business
(2) with adequate capital to do the job and pay his people;
(3) exercises direct control over the performance of the workers.
Notes:
(1) A legitimate contractor, if operating all by himself, is a self-
employed.
(2) Contractor’s client is called “CONTRACTEE”.
TRILATERAL RELATIONSHIP
(1) Principal (contractee) which decides to farm out a job or service
to a contractor or subcontractor;
(2) Contractor/subcontractor which has the capacity to independently
undertake the performance of the job, work or service;
(3) Workers engaged by the contractor/subcontractor to accomplish
the job, work or service.
• Between Contractee and Contractor, Civil and Commercial laws
applies
• Between Contractor and his employees = Labor law applies
• Between Principal and Contractor’s employees, no employer-
employee relationship, because contractor, being himself a
businessman, is the employer.
WHAT IS CONTROL?
- Control over the manner or method of doing the work characterizes
employment. In contrast, control only of the desired result of the
work often indicates a contracting arrangement.
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.
Art. 108 - Posting of bond — An employer or indirect employer may
require the contractor or subcontractor 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.
Art. 109 - Solidary liability — The provisions of existing laws to the
contrary notwithstanding, every employer or indirect employer shall
be held responsible with his contractor or subcontractor for any
violation of any provision of this Code. For purposes of determining
the extent of their civil liability under this Chapter, they shall be
considered as direct employers.
(Service Agreement)
SOLIDARY LIABILITY
PRINCIPAL CONTRACTOR
- refers to liability of the principal, pursuant to Art. 109, as direct
Indirect
Employer (Employment Contract)
provision of Labor Code.
(legitimate
- also refers to liability of the principal, in the same manner and
Contracting)
extent that he/she is liable to his/her direct employees, to the
CONTRACTOR’S EMPLOYEE
FJTR REVIEWER - LABOR
DO 174 s. 2017 — IRR of Art. 106-109
CABO
- a person or group of person or to a labor group which, under the
guise of labor organization, cooperatives or any entity, supplies
worker 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.
IN-HOUSE AGENCY
- refers to a contractor which is owned, managed, or controlled
directly or indirectly by the principal or one where the principal
owns/represents any share of stock, and which operates solely
and mainly for the principal.
IN-HOUSE COOPERATIVE
- refers to a cooperative which is owned, managed, or controlled
directly or indirectly by the principal or one where the principal or
any of its officers owns/represents any equity or interest, and
which operates solely and mainly for the principal.
LABOR-ONLY CONTRACTING
- refers to arrangement where the contractor or subcontractor
merely recruits, supplies, or places workers to perform a job or
work for a principal, and its 2 elements are present.
employer together with the contractor for any violation of any
extent of the work performed under the contract when the
contractor fails to pay the wage of his/her employees, as provided
in Art. 106.
SUBSTANTIAL CAPITAL
- refers to paid up capital stock/shares at least P5Million in the case
of corporations, partnerships, and cooperations; in case of single
proprietor ship, a net worth of at least P5Million.
A B S O L U T E P R O H I B I T I O N A G A I N S T L A B O R - O N LY
CONTRACTING:
Elements:
(1) (a) Contractor or sub-contractor does not have substantial capital
or (b) he does not have investments in the form of tools,
equipments, machineries, supervision, work premises, among
others and the contractor’s employees recruited and placed are
performing activities which are directly related to the main
business operation of the principal; and
(2) Contractor or subcontractor does not exercise right to control
over the performance of the work of the employee.
OTHER ILLICIT FORMS OF EMPLOYMENT ARRANGEMENTS
(whether exercised in good faith or not)
(1) When the principal farms out work to a “Cabo”
(2) Contracting out of job or work through an In-house agency
(3) Contracting out of job or work through an In-house cooperative
which merely supplies workers to the principal.
(4) Contracting out of job or work by reason of a strike or lockout
whether actual or imminent
(5) Contracting out of job or work performed by union members and
such will interfere with their rights to self-organization
(6) Requiring the contractor’s/subcontractor’s employees to perform
functions which are currently performed by regular employees of
the principal
(7) Requiring the contractor’s/subcontractor’s employees to sign an
antedated resignation letter; a waiver of labor standards; or
quitclaim releasing the principal or contractor from liability as to
payment of future claims or require employee to become
member of a cooperative
(8) Repeated hiring by the contractor/subcontractor of employees
under an employment contract of short duration (5 by 5 - fixed
term for 5 months)
FJTR REVIEWER - LABOR
(9) Requiring employees under a contracting/subcontracting
arrangement to sign a contract fixing the period of employment
to a term shorter than the term of Service Agreement, unless the
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
(10) Such other practices, schemes or employment arrangement
designed to circumvent the right of workers to security of tenure.
PERMISSIBLE CONTRACTING OR SUBCONTRACTING
ARRANGEMENTS:
(1) The contractor or subcontractor is engaged in a distinct and
independent business
(2) The contractor or subcontractor has substantial capital to carry
out the job farmed out by the principal on his account, manner
and method, investment in the form of tools, equipments,
machineries and supervision
(3) In performing the work farmed out, the contractor or
subcontractor is free from control and/or direction of the principal
in all matters connected with the performance of the work except
as to the result thereto; and
(4) The Service Agreement ensures compliance with all the rights
and benefits for all the employees of the contractor or
subcontractor under the labor laws
RIGHTS OF CONTRACTOR’S/SUBCONTRACTOR’s
EMPLOYEES:
(1) Security of tenure and all rights and privileges as provided in the
Labor Code
(2) Safe and healthful working conditions
(3) Labor standards
(4) Retirement benefits
(5) Social security and welfare benefits
(6) Self-organization, Collective bargaining and peaceful concerted
activities including the right to strike.
REQUIRED CONTRACTS:
(1) Employment contract between contractor/subcontractor and its
employees.
(2) Service Agreement between principal and the contractor.
EFFECTS OF VIOLATIONS OF THE RIGHTS OF CONTRACTOR’S
EMPLOYEE AND REQUIRED CONTRACTS:
It shall render the principal the direct employer of the employees of
the contractor or subcontractor.
IT IS MANDATORY FOR ALL PERSONS OR ENTITIES ACTING AS
CONTRACTOR TO REGISTER WITH THE REGIONAL OFFICE OF
DOLE WHERE IT PRINCIPALLY OPERATES. FAILURE TO
REGISTER SHALL GIVE RISE TO THE PRESUMPTION THAT THE
CONTRACTOR IS ENGAGED IN LABOR-ONLY CONTRACTING.
NOTE: NFCC IS NO LONGER REQUIRED BECAUSE THE
SUBSTANTIAL CAPITAL HAS BEEN INCREASED TO P5MILLION.
BUT THE 10% ADMINISTRATION FEE IS STILL REQUIRED.
GROUNDS FOR CANCELLATION OF REGISTRATION:
The RD shall, upon verified complaint, cancel or revoke the
registration of a contractor after due process, based on any of the
following grounds:
(1) Misrepresentation of facts in application
(2) Submission of falsified or tampered application
(3) Non-Submission of Service Agreement
(4) Non-Submission of the required Semi-annual report
(5) Final findings that the contractor has engaged in labor-only
contracting and/or other illicit forms of employment arrangements
(6) Non-compliance with labor standards and working conditions
(7) Finding of violations of Rights of Contractor’s employees and
required contracts
(8) Non- Compliance with SSS, the HDMF, PAG IBIG, Philhealth,
and ECC laws
(9) Collecting any fees not authorized by law and other applicable
rules and regulations
(10) Violations of any provisions of the Labor Code.
FJTR REVIEWER - LABOR
DC 01 — CLARIFYING DO 174
DO 174 applies only to trilateral relationship which characterizes
contracting or subcontracting arrangements. It does not cover IT-
enabled services involving an entire or specific business process
such as:
(a) Business Process Outsourcing
(b) Knowledge Process Outsourcing
(c) Legal Process Outsourcing
(d) IT Infrastructure Outsourcing
(e) Application Development
(f) Hardware and/or Software Support
(g) Medical Transcription
(h) Animation Services
(i) Back Office Operations/Support
Art. 110 - Worker preference in case of bankruptcy — In the event
of bankruptcy or liquidation of an employer’s 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.
Notes:
(1) There must be a judicial declaration of bankruptcy or liquidation.
(2) In case of mortgages, the creditor should be paid first since it
has a lien over the property, after that, the employee.
(3) Art. 110 covers not only unpaid wages but also all other
monetary claims
Art. 111 - Attorney’s fees —
(a) In cases of unlawful withholding of wages, the culpable party may
be assessed attorney’s fees equivalent to ten percent of the
amount of wages recovered.
(b) It shall be unlawful for any person to demand or accept, in any
judicial or administrative proceedings for the recovery of wages,
attorney’s fees which exceed ten percent of the amount of wages
recovered.

Notes:
(1) It is in the nature of damages which is awarded to the prevailing
party, and NOT to the lawyer.
(2) As between lawyer and client, the attorney’s fees may exceed
10% on the basis of quantum meruit.
(3) PAO Lawyers are disqualified from being awarded by attorney’s
fees. (Based on jurisprudence, but the SC did not elaborate why)
Chapter IV
PROHIBITIONS REGARDING WAGES
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.
PENALTY FOR VIOLATION:
Fine of not less than P1,000 nor more than P10,000 OR
imprisonment of not less than 3 months nor more than 3 years.
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.
ADDITIONAL DEDUCTIONS ALLOWED BY LAW:
(1) Deduction for value of meals and other facilities
(2) Legal compensation (employee is indebted to the employer and
such is due and demandable)
FJTR REVIEWER - LABOR
(3) In court awards, wages may be the subject of execution or
attachment, but only for debts incurred for food, shelter, clothing,
and medical attendance.
(4) Withholding tax
(5) Salary deductions of a member of a legally established
cooperative
(6) SSS, Medicare, and PAG-IBIG Contributions
Note: An employee’s payment of obligation to a 3rd person is
deductible from the employee’s wages if the deduction is authorized
in writing by the employee.
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.
DEDUCTION FOR LOSS OR DAMAGES IS ALLOWED PROVIDED
THE FOLLOWING CONDITIONS ARE MET:
(1) The employee is clearly shown to be responsible for the loss or
damage;
(2) The employee is given ample opportunity to show cause why
deduction should not be made;
(3) The amount of deduction is fair and reasonable and shall not
exceed the actual loss or damage; and
(4) The deduction from the employee’s wage does not exceed 20%
of the employee’s wages in a week.
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 responsibility
has been clearly shown.
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 worker’s consent.
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.
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.
Note: Violation of Art. 118 is NOT strikeable since it does not
constitute ULP.
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.
Chapter V
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 DOLE for policy and program coordination.
Art. 121. Powers and functions of the Commission — The
Commission shall have the following powers and functions:
(1) 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;
FJTR REVIEWER - LABOR
(2) To formulate policies and guidelines on wages, incomes and
productivity improvement at the enterprise, industry and national
levels;
(3) To prescribe rules and guidelines for the determination of
appropriate minimum wage and productivity measures at the
regional, provincial, or industry levels;
(4) 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;
(5) 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;
(6) To review plans and programs of the Regional Tripartite Wages
and Productivity Boards to determine whether these are
consistent with national development plans;
(7) To exercise technical and administrative supervision over the
Regional Tripartite Wages and Productivity Boards;
(8) 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
(9) 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.
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
FJTR REVIEWER - LABOR
(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.
ART. 121 - NWPC ART. 122 - RTWPB
F o r m u l a t e s p o l i c i e s a n d (1) Determines and fixes the
guidelines for wages, incomes minimum wage rates
applicable in their region;
(2) Issues wage orders, subject
to the guidelines issued by
NWPC
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.
Notes:
(1) The wage in the Wage Order must not be lower than the
statutory minimum wage
(2) Public Hearings and Publication for the issuance of Wage Order
is MANDATORY.
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-à-vis the consumer price index;
(c) The cost of living and changes or increases therein;
FJTR REVIEWER - LABOR
(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.
Notes:
(1) The distortion referred in this Article refers to one ARISING from
compliance with a wage order. It does not refer, and does not
apply to a distortion arising from a revision of salary scale
initiated by the employer since it is a matter of management
judgment and discretion;
(2) Ways to correct distortion are: (a) voluntary negotiation; or (b)
arbitration;
(3) Wage distortion is Non-Strikeable.
FJTR REVIEWER - LABOR
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.
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.
Chapter VI
ADMINISTRATION AND ENFORCEMENT
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 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 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. 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.
(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.
FJTR REVIEWER - LABOR
LABOR LAW COMPLIANCE SYSTEM:
(1) Joint Assessment - evaluation done by by a DOLE Labor Law
Compliance Officer (LLCO) jointly with the employer and
employee representatives to verify extent of observance of labor
regulations
(2) Compliance Visit - DOLE Regional Office’s action in response to
a complaint filed against an establishment or to a referral from a
SEnA.
(3) Occupational Safety and Health Standards Investigation
(OSHSI) - investigation of compliance with safety and health
standards to obviate sources of accidents or dangers at the work
place.
APPEAL PROCESS:
(1) Hearing
(2) DOLE Regional Director
(3) DOLE Secretary
(4) MR with the Secretary (Mandatory)
(5) CA via certiorari (R65)
PENALTY FOR NON-COMPLIANCE:
(1) Fine or Imprisonment; and
(2) Double Indemnity which computed from the start of the effectivity
of the prescribed increase or adjustments as indicated in the
wage order. (Basis for computation is limited only to the unpaid
benefits)
Notes:
(1) Scope of visitorial and enforcement is broad enough to cover any
fact, condition or matter related to the enforcement not only of
the Labor Code but of any labor law.
(2) DOLE determines the existence of Employer-Employee
relationship, not the Labor Arbiter. (People’s Broadcasting
Service vs. Secretary of Labor, March 6, 2012).
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 (2) claim arises from employer-employee relations, whether existing
decide any matter involving the recovery of wages and other or not;
monetary claims and benefits, including legal interest, owing to an (3) the claim does not seek for reinstatement; and
employee or person employed in domestic or household service or (4) the aggregate money claim of each claimant does not exceed
househelper under this Code, arising from employer-employee P5,000.
relations: Provided, That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate money claims of NATURE OF PROCEEDING:
each employee or househelper does not exceed Five thousand - Summary and non-litigious.
pesos (P5,000.00). The Regional Director or hearing officer shall - Substantial evidence is sufficient
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 Art. 128 Art. 129
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 As to nature and - Inspection of - adjudication of
Secretary of Labor and Employment or the Regional Director directly subject of the establishments and employee’s claims
to the employee or househelper concerned. Any such sum not paid to proceedings compliance with the for wages and
the employee or househelper because he cannot be located after Labor Code and any benefits

diligent and reasonable effort to locate him within a period of three (3) other labor laws.
- initiated by sworn
years, shall be held as a special fund of the Department of Labor and - offshoots of complaints filed by
Employment to be used exclusively for the amelioration and benefit inspection done by any interested
of workers. labor officers or party.
safety engineers
Any decision or resolution of the Regional Director or hearing
officer pursuant to this provision may be appealed on the same As to workers involves employees still involves present or
grounds provided in Article 223 of this Code, within five (5) calendar involved in the service past employee at the
days from receipt of a copy of said decision or resolution, to the time of complaint is
National Labor Relations Commission which shall resolve the appeal filed
within ten (10) calendar days from the submission of the last pleading
As to No maximum monetary monetary claim per
required or allowed under its rules.
jurisdictional amount claimant should not
limitss exceed P5,000
The Secretary of Labor and Employment or his duly
authorized representative may supervise the payment of unpaid As to officers Secretary of Labor or RD or any duly
wages and other monetary claims and benefits, including legal designated any of his duly authorized hearing
interest, found owing to any employee or househelper under this authorized officer of DOLE
Code. representatives who
may be a RD or not.
REQUISITES:
(1) the claim is presented by an employee, or a person employed in As to Appeal Appealable to Appealable to NLRC
domestic or household service or house helper; Secretary of Labor

FJTR REVIEWER - LABOR

SINGLE ENTRY APPROACH (SEnA)
- Mandatory conciliation-mediation proceeding
- it does not discuss the merits of the case but only the possible
amicable settlement between the parties.
Art. 130. 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. 131. Maternity leave benefits —
(a) Every employer shall grant to any pregnant woman employee
who has rendered an aggregate service of at least 6 months for
the last 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. 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 4 deliveries by a woman employee after
the effectivity of this Code.
FJTR REVIEWER - LABOR
Art. 132. 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.
SUMMARY OF LEAVES:
HOLIDAYS - 22 days (12 regular, 3 special, 7 other)
SIL - 5 days
Maternity Leave - 60 days for normal; 78 days for caesarean
Solo Parent’s Leave - 7 days
VAWC (Battered Woman) - 10 days
Rest Days - 52 days
Special Leave (gynecological disorder) - 2 months or 60 days
Art. 133. 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.
EXCEPTION: BONA FIDE OCCUPATION QUALIFICATION (BOQF)
Elements:
(1) Employment qualification is reasonably related to the essential
operation of the job involved
(2) there is a factual basis for believing that all or substantially all
persons meeting the qualification would be unable to properly
perform duties of the job.
Art. 134. 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. 135. Prohibited acts — It shall be unlawful for any employer:
(1) To deny any woman employee the benefits provided for in this
Chapter or to discharge any woman employed by him for the
purpose of preventing her from enjoying any of the benefits
provided under this Code.
(2) To discharge such woman on account of her pregnancy, or while
on leave or in confinement due to her pregnancy;
(3) To discharge or refuse the admission of such woman upon
returning to her work for fear that she may again be pregnant.
Art. 136. 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
FJTR REVIEWER - LABOR
employee of such establishment for purposes of labor and social
legislation.
SEXUAL HARASSMENT
- is the act of demanding or requesting sexual favor, by a person
having authority or moral ascendancy over another, regardless of
whether the demand or request is accepted or not.
SEXUAL HARASSMENT CAN BE COMMITTED IN:
(1) a work-related environment; or
(2) an education or training environment
SEXUAL HARASSMENT IS COMMITTED IN A WORK-RELATED
ENVIRONMENT WHEN:
(a) Sexual favor is made as a condition for:
(1) hiring, re-employment, or continued employment of an
employee; or
(2) granting favorable terms, conditions, or privileges
(b) When sexual advances:
(1) impair the employee’s rights or privileges under existing
labor laws; or
(2) result in an intimidating, hostile, or offensive environment
for the employee.
(c) When refusal to grant the sexual favor results in limiting,
segregating, or classifying the employee which in any way would
discriminate, deprive, or diminish employment opportunities or
otherwise adversely affect said employee.
SEXUAL HARASSMENT IS COMMITTED IN AN EDUCATION OR
TRAINING ENVIRONMENT WHEN:
(a) The sexual favor is made as a condition for:
(1) giving of a passing grade;
(2) granting of honors and scholarships; or
(3) payment of benefits, privileges or considerations.
(b) the sexual advances result in an intimidating, hostile, or offensive
environment for the trainee or apprentice.
 Chapter II
EMPLOYMENT OF MINORS
Art. 137. Minimum employable age —
(a) No child below 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. (+ non-hazardous)
(b) Any person between 15 and 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 18 years of age in an undertaking which is
hazardous or deleterious in nature as determined by the
Secretary of Labor and Employment.
EXCEPTION:
Child’s employment or participation in public entertainment or
information through cinema, theater, radio, television, or other forms
of media, provided that the contract is signed by the parent or legal
guardian with the child’s express consent, and permit from DOLE.
Art. 138 - Prohibition against child discrimination — No employer
shall discriminate against any person in respect to terms and
conditions of employment on account of his age.
KASAMBAHAY LAW (Art. 139 - 153)
- Applies only to domestic workers working within the Philippines.
Domestic worker
- person engaged to work for a household within an employment
relationship.
- Persons who perform domestic work occasionally are not
considered as domestic workers
MINIMUM AGE FOR EMPLOYMENT = 15 years old
FJTR REVIEWER - LABOR
Hiring can be done:
(1) directly
(2) through a private employment agency.
(1) Medical certificate
(2) Barangay and Police clearance
(3) NBI clearance
(4) Duly authenticated birth certificate
Cost of foregoing documents shall be borne by the employer or
agency
Employment Agencies must obtain a license and authority from the
Regional office of DOLE
Liability of private employment agency is solidary with the employer
for all the wages, and other benefits due a domestic worker.
No share in the recruitment or finder’s fees shall be charged against
the domestic worker by the private employment agency or 3rd person
The employer and domestic worker must execute an employment
contract.
TERMS AND CONDITIONS OF EMPLOYMENT OF DOMESTIC
WORKERS:

(1) Health and safety

(2) Free board, lodging and medical attendance 

(3) Daily rest period of 8 hours per day

(4) Weekly rest period of at least 24 consecutive hours

(5) Appropriate compensation for assignment to non-household work
(6) Extent of duty — employer may allow a domestic worker to
temporarily perform a task for another household, but any liability
shall be borne by original employer 

(7) Minimum wage of domestic workers
(a) 2,500 - NCR
(b) 2,000 - chartered cities and first class municipalities
(c) 1,500 - other municipalities
(8) Payment of wages may is in cash directly to the domestic worker
and at least once a month;
(9) Pay slip to be kept by employer for a period of 3 years
(10) 13th month pay
(11) Leave benefits who rendered at least 1 year shall be entitled to
leave with pay for 5 days
(12) SSS, Philhealth and Pag-ibig funds
RIGHTS AND PRIVILEGES OF DOMESTIC WORKERS:
(1) Right to humane treatment
(2) Right to privacy
(3) Access to outside communication
(4) Right to education and training
OBLIGATIONS OF DOMESTIC WORKERS:
(1) render satisfactory service at all times
(2) observe the terms and conditions of the contract
(3) refrain from publicly disclosing any communication or information
pertaining to the employer or members of the household during
and after employment.
ARAW NG KASAMBAHAY = January 18
PROHIBITED ACTS:
(1) Prohibition against deposits for loss or damage
(2) Prohibition on debt bondage
(3) Prohibition on interference in the disposal of wages
(4) Prohibition against withholding of wages
WHEN THE EMPLOYMENT CAN BE TERMINATED:
(1) With just cause - any time
(2) Without just cause - at the end of stipulated period. If no stipulated
period, by giving 5 days advance notice.
EFFECT OF TERMINATION WITHOUT NOTICE OR BEFORE STIP-
ULATED PERIOD:
(1) On the part of the domestic worker (a) he forfeits any unpaid
salary equivalent to 15 days
 wages
(b) liable for the deployment expenses, if termination is done
within 6 months from hiring
FJTR REVIEWER - LABOR
(2) On the part of employer - liable for indemnity in an amount
equivalent to 15 days pay.
JUST CAUSES FOR TERMINATION BY DOMESTIC WORKER:
(1) Verbal or emotional abuse of employer
(2) inhumane treatment
(3) commission of a crime against the domestic worker
(4) Violation by employer of the contract
(5) If he is suffering from a disease prejudicial to the health of
domestic worker
(6) Other causes analogous to the foregoing
JUST CAUSES FOR TERMINATION BY EMPLOYER:
(1) Misconduct or willful disobedience
(2) Gross or habitual neglect
(3) Fraud or willful breach of trust
(4) Commission of a crime against the employer or his family
(5) Violation by domestic worker of the contract
(6) Domestic worker is suffering from a disease prejudicial to his
health
(7) other causes analogous to the foregoing
CERTIFICATE OF EMPLOYMENT shall be issued within 5 days
from request of a certificate indicating the nature, duration of
the service and work performance.
CRIMINAL ACTS:
(1) Employing a domestic worker who is below 15 years old
(2) Charging by the original employer any amount from the household
where the service of his domestic worker was temporarily
performed
(3) Requiring the domestic worker to make deposits for loss or
damage
(4)  Placing the domestic worker under debt bondage
(5) Interfering with the freedom of domestic worker to dispose of his
(6)  Withholding the wages of domestic worker
SANCTION:
Offender is subject to a fine not less than 10,000 but not more than
40,000.
Art. 154 - Coverage — This Chapter shall apply to all persons, who
shall be employed or permitted or suffered to work at night, except
those employed in agriculture, stock raising, fishing, maritime
transport and inland navigation, during a period of not less than 7
consecutive hours, including the interval from midnight to 5 am, to be
determined by the Secretary of Labor and Employment, after
consulting the workers’ representatives/labor organizations and
employers.
“Night Worker” means any employed person whose work
covers the period from 10 pm to 6 am, provided that the worker
performs no less than 6 consecutive hours of work. (DO 119-12).
Art. 155 - Health Assessment — At their request, workers shall
have the right to undergo a health assessment without charge and to
receive advice on how to reduce or avoid health problems associated
with their work:
(a) Before taking up an assignment as a night worker;
(b) At regular intervals during such an assignment; and
(c) If they experience health problems during such an assignment
which are not caused by factors other than the performance of
night work.
With the exception of a finding of unfitness for night work, the
findings of such assessments shall not be transmitted to others
without the worker’s consent and shall not be used to their detriment.
Art. 156 - Mandatory Facilities — Suitable first-aid facilities shall be
made available for workers performing night work, including
arrangements where such workers, where necessary, can be taken
immediately to a place for appropriate treatment. The employers are
likewise required to provide safe and healthful working conditions and
adequate or reasonable facilities such as sleeping or resting quarters
in the establishment and transportation from the work premises to
FJTR REVIEWER - LABOR
nearest point of their residence subject to exceptions and guidelines
to be provided by the DOLE.
Art. 157 - Transfer — Night workers who are certified as unfit for
night work, due to health reasons, shall be transferred, whenever
practicable, to a similar job for which they are fit to work.
If such transfer to a similar job is not practicable, these
workers shall be granted the same benefits as other workers who are
unable to work, or to secure employment during such period.
A night worker certified as temporarily unfit for night work
shall be given the same protection against dismissal or notice of
dismissal as other workers who are prevented from working for
reasons of health.
Art. 158 - Women Night Workers — Measures shall be taken to
ensure that an alternative to night work is available to women
workers who would otherwise be called upon to perform such work:
(a) Before and after childbirth, for a period of at least 16 weeks, which
shall be divided between the time before and after childbirth;
(b) For additional periods, in respect of which a medical certificate is
produced stating that said additional periods are necessary for the
health of the mother or child:
(a) During pregnancy
(b) During a specified time beyond the period, after childbirth is
fixed pursuant to subparagraph (a) above, the length of which
shall be determined by DOLE after consulting the labor
organizations and employers.
During the periods referred to in this Article:
(i) A woman worker shall not be dismissed or given notice of
dismissal, except for just or authorized causes provided for in this
Code that are not connected with pregnancy, childbirth or childcare
responsibilities.
(ii) A woman worker shall not lose the benefits regarding her
status, seniority, and access to promotion which may attach to her
regular night work position.
 Pregnant women and nursing mothers may be allowed to
work at night only if a competent physician, other than the company
physician, shall certify their fitness to render night work, and specify,
in the case of pregnant employees, the period of pregnancy that they
can safely work.
The measures referred to in this Article may include transfer
to day work where this is possible, the provision of social security
benefits or an extension of maternity leave.
The provisions of this Article shall not have the effect of
reducing the protection and benefits connected with maternity leave
under existing laws.
Art. 159 - Compensation — The compensation for night workers in
the form of working time, pay or similar benefits shall recognize the
exceptional nature of night work.
Art. 160 - Social Services — Appropriate social services shall be
provided for night workers and, where necessary, for workers
performing night work.
Art. 161 - Night Work Schedules — Before introducing work
schedules requiring the services of night workers, the employer shall
consult the the workers’ representatives/labor organizations
concerned on the details of such schedules and the forms of
organization of night work that are best adapted to the establishment
and its personnel, as well as on the occupational health measures
and social services which are required. In establishments employing
night workers, consultation shall take place regularly.
BOOK FOUR
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
Title I
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
Chapter I
FJTR REVIEWER - LABOR
MEDICAL AND DENTAL SERVICES
Art. 162 - First-aid treatment — Every employer shall keep in his
establishment such first-aid medicines and equipment as the nature
and conditions of work may require, in accordance with such
regulations as the DOLE shall prescribe.
The employer shall take steps for the training of a sufficient number
of employees in first-aid treatment.
Art. 163 - Emergency medical and dental services — It shall be
the duty of every employer to furnish his employees in any locality
with free medical and dental attendance and facilities consisting of:
(a) The services of a full-time registered nurse when the number of
employees exceeds 50 but not more than 200 except when the
employer does not maintain hazardous workplaces, in which
case, the services of a graduate first-aider shall be provided for
the protection of workers, where no registered nurse is available.
The Secretary of Labor and Employment shall provide by
appropriate regulations, the services that shall be required where
the number of employees does not exceed 50 and shall
determine by appropriate order, hazardous workplaces for
purposes of this Article;
(b) The services of a full-time registered nurse, a part-time physician
and dentist, and an emergency clinic, when the number of
employees exceeds 200 but not more than 300; and
(c) The services of a full-time physician, dentist and a full-time
registered nurse as well as a dental clinic and an infirmary or
emergency hospital with one bed capacity for every 100
employees when the number of employees exceeds 300.
In cases of hazardous workplaces, no employer shall engage the
services of a physician or a dentist who cannot stay in the premises
of the establishment for at least 2 hours, in the case of those
engaged on part-time basis, and not less than 8 hours, in the case of
those employed on full-time basis. Where the undertaking is non-
hazardous in nature, the physician and dentist may be engaged on
retainer basis, subject to such regulations as the Secretary of Labor
and Employment may prescribe to insure immediate availability of
medical and dental treatment and attendance in case of emergency.
Notes:
(1) This article allows employers in non-hazardous establishments to
engage “on retained basis” the services of a dentist or physician.
Nowhere does the law provide that the physician or dentist so
engaged thereby becomes a regular employee. The phrase “on
retained basis” negates the idea that this engagement necessarily
gives rise to an employer-employee relationship.
(2) For employers, employing 10 to 50 workers in the workplace, they
are required to provide a graduate first-aider who may be one of
the workers in the workplace and who has immediate access to
the first-aid medicines. (IRR in Book 4, Rule 1, Section 4)
Art. 164 - When emergency hospital not required — The
requirement for an emergency hospital or dental clinic shall not be
applicable in case there is a hospital or dental clinic which is
accessible from the employer’s establishment and he makes
arrangement for the reservation therein of the necessary beds and
dental facilities for the use of his employees.
Note: The hospital should be within 5 km from the workplace or is
accessible within 25-minute travel. The employer must provide the
transport in emergency cases.
Art. 165 - Health program — The physician engaged by an
employer shall, in addition to his duties under this Chapter, develop
and implement a comprehensive occupational health program for the
benefit of the employees of his employer.
Art. 166 - Qualifications of health personnel — The physicians,
dentists and nurses employed by employers pursuant to this Chapter
shall have the necessary training in industrial medicine and
occupational safety and health. The Secretary of Labor and
Employment, in consultation with industrial, medical, and
occupational safety and health associations, shall establish the
qualifications, criteria and conditions of employment of such health
personnel.
FJTR REVIEWER - LABOR
Art. 167 - Assistance of employer — It shall be the duty of any
employer to provide all the necessary assistance to ensure the
adequate and immediate medical and dental attendance and
treatment to an injured or sick employee in case of emergency.
FIRST-AID TREATMENT
- adequate, immediate and necessary medical and dental attention
pr remedy given in case of injury or sudden illness suffered by a
worker during employment, irrespective of whether or not such
injury or illness is work connected before more extensive medical
and/or dental treatments can be secured. It does not include
continued treatment or follow-up treatment for any injury or illness.
Chapter II
OCCUPATIONAL HEALTH AND SAFETY
Art. 168 - Safety and health standards — The Secretary of Labor
and Employment shall, by appropriate orders, set and enforce
mandatory occupational safety and health standards to eliminate or
reduce occupational safety and health hazards in all workplaces and
institute new, and update existing, programs to ensure safe and
healthful working conditions in all places of employment.
Art. 169 - Research — It shall be the responsibility of the
Department of Labor and Employment to conduct continuing studies
and research to develop innovative methods, techniques and
approaches for dealing with occupational safety and health problems;
to discover latent diseases by establishing causal connections
between diseases and work in environmental conditions; and to
develop medical criteria which will assure insofar as practicable that
no employee will suffer impairment or diminution in health, functional
capacity, or life expectancy as a result of his work and working
conditions.
Art. 170 - Training programs — The DOLE shall develop and
implement training programs to increase the number and
competence of personnel in the field of occupational safety and
industrial health.
Art. 171 - Administration of safety and health laws —
(a) The DOLE shall be solely responsible for the administration and
enforcement of occupational safety and health laws, regulations
and standards in all establishments and workplaces wherever
they may be located; however, chartered cities may be allowed to
conduct industrial safety inspections of establishments within their
respective jurisdictions where they have adequate facilities and
competent personnel for the purpose as determined by the
Department of Labor and Employment and subject to national
standards established by the latter;
(b) The Secretary of Labor and Employment may, through
appropriate regulations, collect reasonable fees for the inspection
of steam boilers, pressure vessels and pipings and electrical
installations, the test and approval for safe use of materials,
equipment and other safety devices and the approval of plans for
such materials, equipment and devices. The fee so collected shall
be deposited in the national treasury to the credit of the
occupational safety and health fund and shall be expended
exclusively for the administration and enforcement of safety and
other labor laws administered by the Department of Labor and
Employment.
Art. 163 - 171 (Made easier—based on IRR of Book 4)
MEDICAL AND DENTAL SERVICES
- applies to all employers, whether operating for profit or not, which
employs 1 or more workers.
(a) 10 - 50 workers
- graduate first-aider who may be an employee of the company +
access to first-aid medicines
(b) 51- 200 workers
- full time registered nurse
- if non hazardous, full time first-aider if a nurse is not available
(c) 201- 300 workers
- full time registered nurse
- part time physician and dentist — at least 2 hours per day
- emergency clinic
(d) 301 or more workers hazardous workplace
FJTR REVIEWER - LABOR
- full time nurse, physician and dentist — 8hrs/day
- dental clinic or emergency hospital with 1 bed capacity for every
100 workers
(e) 301 or more workers non-hazardous workplace
- full time nurse
- part time physician and dentist — at least 2 hrs/day
(f) when there are more than 1 work shift in a day, full time first-aider
for each work shift.
(g) Emergency hospital or dental clinic is not required if the workplace
is accessible to a hospital.
- For urban, 5km
- For rural, 25 minutes travel by motor vehicle
- Written contract with the hospital or dental clinic for the use in
case of emergency.
HAZARDOUS WORKPLACES
(1) nature of work exposes the workers to dangerous environmental
elements
(2) engaged in construction work, logging, firefighting, mining,
quarrying, blasting, stevedoring dock work, deep-sea fishing and
mechanized farming.
(3) engaged in the manufacture or handling of explosives and other
pyrotechnic products
(4) workers used or are exposed to heavy or power-driven
machinery or equipment
(5) workers use or are exposed to power-driven tools.
OCCUPATIONAL HEALTH AND SAFETY
- applies to all establishments, workplaces and other undertakings,
including agricultural enterprises, whether operated for profit or not
except: (1) those engaged in land, sea, air transportation, but their
dry docks, garages, hangers, maintenance, repair shops and
officers are covered; (2) residential places exclusively devoted to
dwelling purposes.
TRAINING OF PERSONNEL IN SAFETY AND HEALTH
(MANDATORY)
(a) non-hazardous establishment (50 - 400 each shift)
 - at least 1 supervisor or technical personnel shall be trained and
assigned as part time safety man — secretary of safety
committee.
(b) non-hazardous (401 or more each work shift)
- at least 2 supervisors shall be trained
- full time safety man
(c) hazardous (20 - 200 each shift)
- at least 1 of its supervisor or technical men shall be trained and
work as part time safety man — secretary of safety committee.
(d) hazardous (201 or more each shift)
- at least 2 of its supervisor or technical men shall be trained and
1 of them shall be appointed as full time safety man and
secretary of safety committee.
(e) employment of full time safety man is not required when the
employer enters into a written contract with a qualified consulting
organization which shall develop and carry out his safety and
health activities. Consultant shall visit at least 4 hours a week and
subject to call any time to conduct accident investigations and
available during scheduled inspections or surveys by Secretary of
Labor.
Title II
EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND
Chapter I
POLICY AND DEFINITIONS
Art. 172 - Policy — The State shall promote and develop a tax-
exempt employees’ compensation program whereby employees and
their dependents, in the event of work-connected disability or death,
may promptly secure adequate income benefit and medical related
benefits.
SOURCE OF COMPENSATION
- State Insurance Fund
- Both the employer and employee contributes to the fund.
- There is no need for employee’s consent before deducting their
salary.
FJTR REVIEWER - LABOR
OVERVIEW OF THE PROCESS:
(1) Work related injury or disease
(2) report to employer within 5 days — enter the notice in the
logbook
(3) Within 5 days after making the entry in the logbook, employer
must report it to SSS or GSIS
(4) SSS or GSIS decides
(5) Appeal of Employee’s Compensation Commission (ECC) within
30 days.
(6) Appeal to CA via R43
(7) Appeal to SC via R45
Art. 173 - Definition of terms — As used in this Title, unless the
context indicates otherwise:
(a) “Code” means the Labor Code of the Philippines instituted under
PD 442, as amended.
(b) "Commission" means the Employees’ Compensation Commission
created under this Title.
(c) "SSS" means the Social Security System created under RA 1161,
as amended.
(d) "GSIS" means the Government Service Insurance System
created under CA 186, as amended.
(e) "System" means the SSS or GSIS, as the case may be.
(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 CA 186, 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 RA 1161, as amended.
(h) ”Person” means any individual, partnership, firm, association,
trust, corporation or legal representative thereof.
(i) "Dependent" means the legitimate, legitimated or legally
adopted or acknowledged natural child who is unmarried,
not gainfully employed, and not over 21 years of age or over
21 years of age provided he is incapacitated and incapable of
self-support due to a physical or mental defect which is
congenital or acquired during minority; the legitimate
 spouse living with the employee and the parents of said
employee wholly dependent upon him for regular support.
(j) "Beneficiaries" means the dependent spouse until he/she
remarries and dependent children, who are the primary
beneficiaries. In their absence, the dependent parents and
subject to the restrictions imposed on dependent children,
the illegitimate children and legitimate descendants, who are
the secondary beneficiaries: Provided, That the dependent
acknowledged natural child shall be considered as a primary
beneficiary when there are no other dependent children who
are qualified and eligible for monthly income benefit.
(k) "Injury" means any harmful change in the human organism
from any accident arising out of and in the course of the
employment.
(l) "Sickness" means any illness definitely accepted as an
occupational disease listed by the Commission, or any illness
caused by employment subject to proof that the risk of contracting
the same is increased by working conditions. For this purpose,
the Commission is empowered to determine and approve
occupational diseases and work-related illnesses that may be
considered compensable based on peculiar hazards of
employment.
(m) "Death" means loss of life resulting from injury or sickness.
(n) "Disability" means loss or impairment of a physical or mental
function resulting from injury or sickness.
(o) ”Compensation" means all payments made under this Title for
income benefits and medical or related benefits.
(p) "Income benefit" means all payments made under this Title to the
providers of medical care, rehabilitation services and hospital
care.
(q) "Medical benefit" means all payments made under this Title to the
providers of medical care, rehabilitation services and hospital
care.
(r) "Related benefit" means all payments made under this Title for
appliances and supplies.
(s) "Appliances" means crutches, artificial aids and other similar
devices.
(t) "Supplies" means medicine and other medical, dental or surgical
items.
FJTR REVIEWER - LABOR
(u) "Hospital" means any medical facility, government or private,
authorized by law, an active member in good standing of the
Philippine Hospital Association and accredited by the
Commission.
(v) "Physician" means any doctor of medicine duly licensed to
practice in the Philippines, an active member in good standing of
the Philippine Medical Association and accredited by the
Commission.
(w) "Wages" or "Salary", insofar as they refer to the computation of
benefits defined in Republic Act No. 1161, as amended, for SSS
and PD 1146, as amended, for GSIS, respectively, except that
part in excess of P3,000.
(x) "Monthly salary credit" means the wage or salary base for
contributions as provided in Republic Act Numbered Eleven
hundred sixty-one, as amended, or the wages or salary.
(y) "Average monthly salary credit" in the case of the SSS means the
result obtained by dividing the sum of the monthly salary credits
in the sixty-month period immediately following the semester of
death or permanent disability by sixty (60), except where the
month of death or permanent disability falls within eighteen (18)
calendar months from the month of coverage, in which case, it is
the result obtained by dividing the sum of all monthly salary
credits paid prior to the month of contingency by the total number
of calendar months of coverage in the same period.
(z) "Average daily salary credit" in the case of the SSS means the
result obtained by dividing the sum of the six (6) highest monthly
salary credits in the twelve-month period immediately preceding
the semester of sickness or injury by one hundred eighty (180),
except where the month of injury falls within twelve (12) calendar
months from the first month of coverage, in which case it is the
result obtained by dividing the sum of all monthly salary credits by
thirty (30) times the number of calendar months of coverage in
the period.
In the case of the GSIS, the average daily salary credit shall be the
actual daily salary or wage, or the monthly salary or wage divided by
the actual number of working days of the month of contingency.
(aa) “Quarter” means a period of three (3) consecutive months
ending on the last days of March, June, September and December.
(bb) “Semester” means a period of two consecutive quarters ending
in the quarter of death, permanent disability, injury or sickness.
(cc) “Replacement ratio" - The sum of twenty percent and the
quotient obtained by dividing three hundred by the sum of three
hundred forty and the average monthly salary credit.
(dd) “Credited years of service" - For a member covered prior to
January, 1975, nineteen hundred seventy-five minus the calendar
year of coverage, plus the number of calendar years in which six or
more contributions have been paid from January, 1975 up to the
calendar year containing the semester prior to the contingency. For a
member covered on or after January, 1975, the number of calendar
years in which six or more contributions have been paid from the
year of coverage up to the calendar year containing the semester
prior to the contingency.
(ee) “Monthly income benefit" means the amount equivalent to one
hundred fifteen percent of the sum of the average monthly salary
credit multiplied by the replacement ratio; and
One and a half percent of the average monthly salary credit
for each credited year of service in excess of ten years: Provided,
That the monthly income benefit shall in no case be less than two
hundred fifty pesos.
REMEMBER: WHAT GIVES RISE TO COMPENSATION IS THE
LOSS OF EARNING CAPACITY.
FOR THE INJURY AND THE RESULTING DISABILITY OR DEATH
TO BE COMPENSABLE, THE INJURY MUST BE THE RESULT OF
AN EMPLOYMENT ACCIDENT SATISFYING ALL OF THE
FOLLOWING:
(1) The employee must have been injured at the place where his
work requires him to be;
(2) The employee must have been performing his official functions;
and
(3) If the injury is sustained elsewhere, the employee must have
been executing an order for the employer.
FJTR REVIEWER - LABOR
ARISING OUT OF
- the cause of the accident
IN THE COURSE OF
- the time, place, and circumstances under which the accident takes
place.
PROXIMATE CAUSE
- that cause, which, in natural and continuous sequence, unbroken
by any efficient intervening cause, produces the injury, and without
which the result would not have occurred.
Note: Arising out of and in the course of are separate tests which
must be independently satisfied.
24-HOUR DUTY RULE
- applies to members of the AFP and Police.
- relaxes the workplace factor but requires work-connection requisite
(Police Service Activities)
GENERAL RULE:
DIRECT PREMISE RULE — Accident should have occurred at the
place of work.
EXCEPTIONS:
(1) INGRESS-EGRESS/PROXIMITY RULE — where the employee
was injured being “immediately proximate to his workplace, the
accident in question must be deemed to have occurred within the
zone of his employment and therefore arose out of and in the
course thereof.
(2) GOING TO OR COMING FROM WORK RULE (Street Peril
Principle) —The act of employee of going to, or coming from the
workplace, must be a continuing act, that is, he had not been
diverted therefrom by any other activity, and he had not departed
from his usual route to, or from his workplace
(3) SPECIAL ERRAND — the special errand must have been official
and in connection with his work.
(4) ACTS OF MINISTRATION (Personal Comfort Doctrine) — call of
nature, drinking, urinating.
(5) SHUTTLE BUS RULE — where the company which provides the
means if transportation in going to or coming from the workplace
is liable for the injury sustained by employees while on board
said means of transportation. This is because the company
vehicle is an extension of its premises.
(6) SPECIAL ENGAGEMENT RULE (EMPLOYER-SPONSORED
ACTIVITIES — Test: Whether the recreation was for the
employee’s exclusive benefit or whether the employer had some
interest in the activity.
(7) Acts for the benefit of the employer.
(8) Acts during Emergency
DUAL PURPOSE DOCTRINE
- an injury that an employee sustains while on a trip undertaken for
the benefit of the employer even if in the course thereof, the
employee pursues also a personal purpose.
- Test: the service of the employer is at least a concurrent cause of
the trip of the employee. (ECC Resolution No. 99-08-0469)
ACTS OF GOD OR FORCE MAJUERE
— GENERAL RULE:
Employer is not liable.
— EXCEPTION:
Positional and local risks doctrine — when one in the course of his
employment is reasonably required to be at a particular place at a
particular time and there meets an accident, although one which any
other person then and there present would have met irrespective of
his employment, that accident is one “arising out of the employment”
of the person so injured.
ASSAULT
- injuries sustained by an employee while in the course of his
employement, as the result of an assault upon his person by
another employee, or by a third person, and there is no question of
the injured employee’s own culpability being involved is
compensable where, from the evidence presented, a rational mind
is able to trace the injury to a cause set in motion by the nature of
FJTR REVIEWER - LABOR
the employment, or some condition, obligation or incident therein,
and not by some other agency.
- The quarrel from origin to ending must be taken to be one.
ACCIDENT
- happens by chance or fortuitously, without intention or design, and
which is unexpected, unusual and unforeseen.
PRESUMPTIVE COMPENSABILITY
- the moment that an AFP member or a police man suffers
contingency while performing official functions, the presumption is
that it is because of the nature of his work.
EFFECTS OF VIOLATION OF RULES
— GENERAL RULE:
Compensable where:
(1) the violation of the rule itself did not bring about the cause of the
accident;
(2) there was doubt that the employee knows of the prohibition;
(3) the violation was not intentional but due to carelessness or
negligence.
— EXCEPTIONS:
(1) injury results from intoxication
(2) Willful intention to injure or kill himself or another
(3) notorious negligence
(4) if otherwise excluded from coverage of law.
SICKNESS:
- FOR THE SICKNESS AND RESULTING DISABILITY OR DEATH
TO BE COMPENSABLE:
(1) The sickness must be the result of an occupational disease listed
under Annex “A” of these rules; or
(2) If not listed, the claims must present proof that the risk of
contracting the disease is increased by the working conditions.
EVIDENCE; DEGREE OF PROOF
- substantial evidence only — a reasonable mind might accept as
adequate to support a conclusion
- It is enough that the claimant must show proof of reasonable work
connection, not necessarily direct causal relation.
ANNEX A — OCCUPATIONAL DISEASE
OCCUPATIONAL DISEASES
1. Cancer of the epithetial lining of the
bladder. (Papilloma of the bladder)
2. Cancer, epithellomatous or ulceration
of the skin or of the corneal surface of
the eye due to tar, pitch, bitumen,
mineral oil or paraffin, or any compound
product or residue of any of these
substances.
3. Cataract produced by exposure to the
glare of, or rays from molten glass or
molten or red hot metal.
4. Deafness
5. Decompression sickness
(a) Caissons disease
(b) Aeroembolism
6. Dermatitis due to irritants and
sensitizers
7. Infections
(a) Anthrax
FJTR REVIEWER - LABOR
NATURE OF EMPLOYMENT
Work involving exposure to
alphanaphthylamine, betanaphthylamin
or benzidine or any part of the salts; and
aura mine or magenta.
The use or handling of, or exposure to
tar, pitch, bitumen, mineral oil (including
paraffin) soot or any compound product
or residue of any of these substances.
Frequent and prolonged exposure to the
glare of or rays from molten glass or red
hot metal.
Any industrial operation having
excessive noise particularly in the higher
frequencies.
Any process carried on in compressed or
rarefied air.
Any process carried on in compressed
air.
Any process carried on in rarefied air.
The use or handling of chemical agents
which are skin irritants and sensitizers.
Work in connection with animals infected
with anthrax, handling of animal
carcasses including hides, hoofs and
horns.
(b) Brucellosis Any occupation involving handling of
contaminated food and drink particularly
milk, butter and cheese of infected goats
and cows.
(c) Glanders Any occupation involving handling of
equine animals or carcasses.
(d) Rabies Any occupation involving rabid dogs.
(e) Tuberculosis Any occupation involving close and
frequent contact with a source or
sources of TB infection by reason of
employment: (a) in the medical treatment
or nursing of a person suffering from TB;
(b) as a laboratory worker, pathologist or
postmortem worker, where occupation
involves working with material which is a
source of TB infection.
(f) Tularemia Any occupation involving handling of
rabbits, ground squirrels, mice or other
rodents.
(g) Weill’s disease Any occupation involving handling
of rats, mice, swine and dogs.
(h) Q. fever or e q u i n e Any occupation involving handling
encephalomyelitis of horses, cattle and sheep, or their
slaughter and meat packing.
(i) Mite dermatitis Any occupation involving handling
of fowls or pigeons.
8. Ionizing radiation disease, Exposure to X-rays, ionizing particles of
inflammation, ulceration or malignant radium or other radioactive substance or
disease of skin or subcutaneous tissues other forms of radiant energy.
of the bones or leukemia, or anemia of
the aplastic type due to X-rays, ionizing
particle radium or other radioactive
substances.
(a) Acute radiation syndrome Short duration of exposure to large
doses of X-rays, gamma rays, alpha rays
and beta rays.
(b) Chronic radiation syndrome
(c) Glass blower’s cataract
9. Poisoning and its sequelae caused by:
(a) Ammonia
(b) Arsenic or its toxic compound
(c) Benzene or its toxic homologues;
nitro and amino-toxic derivatives of
benzene or its homologue
(d) Beryllium or its toxic compounds
(e) Brass, Zinc or Nickel
(f) Carbon dioxide
(g) Carbon bisulfide
(h) Carbon monoxide
(i) Chlorine
(j) Chrome or its toxic compounds
(k) Dinitrophenol or its homologue
(l) Halogen derivatives of hydrocarbon
of the aliphatic series
(m) Lead or its toxic compounds
(n) Manganese or its toxic compounds
(o) Mercury or its toxic compounds
(p) Nitrous fumes
(q) Phosgene
(r) Phosphorus or its toxic compounds
(s) Sulfur dioxide
10. Pneumoconioses
(a) Coal miners
(b) Bysinosis
(c) Bagassosis
(d) Psittacosis
FJTR REVIEWER - LABOR
Chronic over exposure to X-rays with a
long latent period affecting the skin,
blood and reproductive organ.
Among furnace men, glass blowers,
bakers, blacksmith, foundry workers.
These are workers exposed to infrared
ray.
All work involving exposure to the risk
concerned.
Exposure to coal dust.
Exposure to cotton dust causing
weaver’s cough or mill fever.
Exposure to sugar cane dust.
Any occupation involving handling of
parrots, parakeets and other species of
birds.
11. Disease caused by abnormalities in
temperature and humidity
(a) Heat stroke/cramps/exhaustion
(b) Chilblain/frostbite/freezing
(c) Immersion foot/general hypothermia
12. Vascular disturbance in the upper
extremities due to continues vibration
from pneumatic tools or power drills,
riveting machines or hammers.
13. Viral hepatitis
14. Poisoning by cadmium
15. Leukemia and lymphoma
16. Cancer of stomach and other
lymphatic and blood forming vessels;
nasal cavity and sinuses.
17. Cancer of the lungs, liver and brain
Any occupation involving exposure to
excessive heat or cold.
Any occupation involving exposure to
excessive heat.
Any occupation involving exposure to
excessive cold.
Any occupation causing repeated
motions, vibrations and pressure of
upper extremities.
Among workers in dose and frequent
contact with (a) human blood products
and with (b) a source of vital hepatitis by
reason of employment in the medical
treatment or nursing of a person
suffering from viral hepatitis, or in a
service ancillary to such treatment or
nursing.
Among workers in battery factories who
are exposed to cadmium fumes.
Among operating room personnel due to
exposure to anesthetics.
Among woodworkers, wood product
industry carpenters, loggers and
employees in pulp and paper mills and
plywood mills.
Among vinyl chloride workers, plastic
workers.
18. Cardiovascular diseases
19. Cerebro-vascular Accidents
FJTR REVIEWER - LABOR
Under any of the ff conditions:
(a) if the heart disease was known to
have been present during
employment, there must be proof that
an acute exacerbation was clearly
precipitated by the unusual strain by
reason of the nature of his work.
(b) The strain of work that brings about
an acute attack must be of sufficient
severity and must be followed within
24 hours by the clinical signs of a
cardiac insult to constitute casual
relationship.
(c) If a person who was apparently
asymptomatic before being subjected
to strain at work showed signs and
symptoms of cardiac injury during the
performance of his work and such
symptoms and signs persisted, it is
reasonable to claim a casual
relationship.
Under all the ff conditions:
(a) There must be a history, which should
be proved, of trauma at work (to the
head specially) due to unusual and
extraordinary physical or mental
strain or event, or undue exposure to
noxious gases in industry
(b) There must be a direct connection
between the trauma or exertion in the
course of the employment and the
worker’s collapse
(c) If the trauma or exertion then and
there be caused a brain hemorrhage,
the injury may be considered as
arising from work.
20. Malaria and Schistosomiasis
21. Pneumonia
Under all the ff conditions:
(a) Through the knowledge of the
respective incubation periods of the
different types of the disease, the
physician determining the causal
relationship between the
employment and the illness of
malaria or schistosomiasis should be
able to tell whether or not the
disease of the afflicted worker
manifested itself while he was so
employed;
(b) Compensability should be based on
the principle of greater risk of
acquiring the disease in the place of
work than in the usual place of
residence of the afflicted employee
or worker
(c) The place of work of employment
has to be verified as a malarial or
schistosomal work area.
Under all the ff conditions:
(a) There must be an honest and definite
history of wetting and chilling during
the course of employment and also,
of injury to the chest wall with or
without rib fracture, or inhalation of
noxious gases, fumes and other
deleterious substances in the place of
work;
(b) There must be a direct connection
between the offending agent or event
and the worker’s illness;
(c) The signs of consolidation should
appear within a few hours and the
symptoms of initial chilling and fever
should at least be 24 hours after the
injury or exposure;
(d) The patient must manifest any of the
ff symptoms within a few days of the
accident: (1) severe chill and fever;
(2) headache and pain, agonising in
character, the side of the body; (3)
short, dry, painful cough with blood;
(4) physical signs of consolidation.
22. Hernia Under all the ff conditions:
(a) The hernia should be recent of origin
(b) Its appearance was accompanied by
pain, discolouration and evidence of a
tearing of the tissues
(c) T h e d i s e a s e w a s i m m e d i a t e l y
preceded by undue or severe strain
arising out of and in the course of
employment
(d) A protrusion or mass should appear
in the area immediately following the
alleged strain.
23. Bronchial Asthma Under all the ff conditions:
(a) There is no evidence of history of
asthma before employment;
(b) The allergen is present in the working
conditions;
(c) Sensitivity test to allergens in the
working environment should yield
positive results;
(d) A provocative test should show
positive results.
24. Osteoarthritis Any occupation involving: (a) joint strain
from carrying heavy loads, or unduly
heavy physical labor, as among laborers
and mechanics; (b) minor or major
injuries to the joint; (c) excessive use or
constant strenuous usage of a particular
joint, as among sportsmen, particularly
those who have engaged in the more
active sports activities; (d) extreme
temperature changes (humidity, heat and
cold exposures); and (e) faulty work
posture or use of vibrating tools.
FJTR REVIEWER - LABOR
25. Viral Encephalitis Any occupation involving: (a) contact
with an infected person, as in areas of
poor sanitation, with a high density of
school children, who are the most
frequent virus spreaders; (b) rural
exposure, primarily in picnics, camping
activities, fishing or hunting in, or
adjacent to, woods or subtropical
vegetations, or as among agricultural
and forest workers; and (c) contact with
other sources of infection, such as birds
and animals, as among veterinarians
and abbatoir workers.
26. Peptic Ulcer Any occupation involving prolonged
emotional or physical stress, as among
professional people, transport workers
and the like.
27. Pulmonary Tuberculosis Any occupation involving constant
exposure to harmful substances in the
working environment, in the form of
gases, fumes, vapors and dust, as in
chemical textile factories; overwork or
fatigue; and exposure to rapid variations
in temperature, high degree of humidity
and bad weather conditions.
Chapter II
COVERAGE AND LIABILITY
Art. 174 - Compulsory coverage — Coverage in the State
Insurance Fund shall be compulsory upon all employers and their
employees not over 60 years of age: Provided, That an employee
who is over 60 years of age and paying contributions to qualify for the
retirement or life insurance benefit administered by the System shall
be subject to compulsory coverage.
Note: Foreigners working in PH are covered provided they have an
Alien Employment Permit.
Art. 175 - Foreign employment — The Commission shall ensure
adequate coverage of Filipino employees employed abroad, subject
to regulations as it may prescribe.
Note: Filipinos working abroad for employers doing business in PH
are covered by Employee’s Compensation Law. They are entitled to
same benefits as for those working in PH.
Art. 176 - Effective date of coverage — Compulsory coverage of
the employer during the effectivity of this Title shall take effect on the
first day of his operation, and that of the employee, on the date of his
employment.
Art. 177 - Registration — Each employer and his employees shall
register with the System in accordance with its regulations.
Art. 178 - Limitation of liability — The State Insurance Fund shall
be liable for compensation to the employee or his dependents,
except when the disability or death was occasioned by the
employee’s intoxication, willful intention to injure or kill himself or
another, notorious negligence, or otherwise provided under this Title.
SUICIDE
— GR: Not Compensable
— EXC: If there is stipulation in the employment contract (NAESS
Shipping PH vs. NLRC, 1987 case)
NOTORIOUS NEGLIGENCE
- something more than simple or contributory negligence. It signifies
a deliberate act of the employee to disregard his own personal
safety.
Art. 179 - Extent of liability — Unless otherwise provided, the
liability of the State Insurance Fund under this Title shall be exclusive
and in place of all other liabilities of the employer to the employee,
his dependents or anyone otherwise entitled to receive damages on
behalf of the employee or his dependents. The payment of
compensation under this Title shall not bar the recovery of benefits as
provided for in Section 699 of the Revised Administrative Code, RA
FJTR REVIEWER - LABOR
1161, as amended, RA 4864 as amended, and other laws whose
benefits are administered by the System or by other agencies of the
government.
OPTIONS AVAILABLE:
(1) If you choose the benefits under the compensation law, you
cannot claim damages under the civil code, and vice versa.
(2) Simultaneous recovery under the Compensation Law and Social
Security law is allowed since the SSS Law is different from the
Labor Code.
Art. 180 - Liability of third parties —
(a) When the disability or death is caused by circumstances creating
a legal liability against a third party, the disabled employee or the
dependents, in case of his death, shall be paid by the System
under this Title. In case benefit is paid under this Title, the System
shall be subrogated to the rights of the disabled employee or the
dependents, in case of his death, in accordance with the general
law.
(b) Where the System recovers from such third party damages in
excess of those paid or allowed under this Title, such excess shall
be delivered to the disabled employee or other persons entitled
thereto, after deducting the cost of proceedings and expenses of
the System.
SUBROGATION - step into the shoe of the creditor/injured employee.
Art. 181 - Deprivation of the benefits — Except as otherwise
provided under this Title, no contract, regulation or device
whatsoever shall operate to deprive the employee or his dependents
of any part of the income benefits and medical or related services
granted under this Title. Existing medical services being provided by
the employer shall be maintained and continued to be enjoyed by
their employees.
Chapter III
ADMINISTRATION
Art. 182 - Employees’ Compensation Commission —
(a) To initiate, rationalize, and coordinate the policies of the
employees’ compensation program, the Employees’
Compensation Commission is hereby created to be composed of
five ex-officio members, namely: the Secretary of Labor and
Employment as Chairman, the GSIS General Manager, the SSS
Administrator, the Chairman of the Philippine Medical Care
Commission, and the Executive Director of the ECC Secretariat,
and two appointive members, one of whom shall represent the
employees and the other, the employers, to be appointed by the
President of the Philippines for a term of six years. The appointive
member shall have at least five years experience in workmen’s
compensation or social security programs. All vacancies shall be
filled for the unexpired term only.
(b) The Vice Chairman of the Commission shall be alternated each
year between the GSIS General Manager and the SSS
Administrator. The presence of four members shall constitute a
quorum. Each member shall receive a per diem of two hundred
pesos for every meeting that is actually attended by him,
exclusive of actual, ordinary and necessary travel and
representation expenses. In his absence, any member may
designate an official of the institution he serves on full-time basis
as his representative to act in his behalf.
(c) The general conduct of the operations and management
functions of the GSIS or SSS under this Title shall be vested in its
respective chief executive officers, who shall be immediately
responsible for carrying out the policies of the Commission.\
(d) The Commission shall have the status and category of a
government corporation, and it is hereby deemed attached to the
Department of Labor and Employment for policy coordination and
guidance.
Art. 183 - Powers and duties —The Commission shall have the
following powers and duties:
(a) To assess and fix a rate of contribution from all employers;
(b) To determine the rate of contribution payable by an employer
whose records show a high frequency of work accidents or
occupational diseases due to failure by the said employer to
observe adequate safety measures;
FJTR REVIEWER - LABOR
(c) To approve rules and regulations governing the processing of
claims and the settlement of disputes arising therefrom as
prescribed by the System;
(d) To initiate policies and programs toward adequate occupational
health and safety and accident prevention in the working
environment, rehabilitation other than those provided for under
Article 190 hereof, and other related programs and activities, and
to appropriate funds therefor;
(e) To make the necessary actuarial studies and calculations
concerning the grant of constant help and income benefits for
permanent disability or death and the rationalization of the
benefits for permanent disability and death under the Title with
benefits payable by the System for similar contingencies:
Provided, That the Commission may upgrade benefits and add
new ones subject to approval of the President: and Provided,
further, That the actuarial stability of the State Insurance Fund
shall be guaranteed: Provided, finally, That such increases in
benefits shall not require any increases in contribution, except as
provided for in paragraph (b) hereof;
(f) To appoint the personnel of its staff, subject to civil service law
and rules, but exempt from WAPCO law and regulations;
(g) To adopt annually a budget of expenditures of the Commission
and its staff chargeable against the State Insurance Fund:
Provided, That the SSS and GSIS shall advance on a quarterly
basis, the remittances of allotment of the loading fund for the
Commission’s operational expenses based on its annual budget
as duly approved by the Department of Budget and Management;
(h) To have the power to administer oath and affirmation, and to
issue subpoena and subpoena duces tecum in connection with
any question or issue arising from appealed cases under this
Title;
(i) To sue and be sued in court;
(j) To acquire property, real or personal, which may be necessary or
expedient for the attainment of the purposes of this Title;
(k) To enter into agreements or contracts for such services and as
may be needed for the proper, efficient and stable administration
of the program;
(l) To perform such other acts as it may deem appropriate for the
attainment of the purposes of the Commission and proper
enforcement of the provisions of this Title.
Art. 184 - Management of funds — All revenues collected by the
System under this Title shall be deposited, invested, administered
and disbursed in the same manner and under the same conditions,
requirements and safeguards as provided by RA 1161, as amended,
with regard to such other funds as are thereunder being paid to or
collected by the SSS and GSIS, respectively: Provided, That the
Commission, SSS and GSIS may disburse each year not more than
12% of the contribution and investment earnings collected for
operational expenses, including occupational health and safety
programs, incidental to the carrying out of this Title.
Note:
12% — allotted for administration and operational expenses
885 — allotted for compensation and benefits.
Art. 185 - Investment of funds — Provisions of existing laws to the
contrary notwithstanding, all revenues as are not needed to meet
current operational expenses under this Title shall be accumulated in
a fund to be known as the State Insurance Fund, which shall be used
exclusively for payment of the benefits under this Title, and no
amount thereof shall be used for any other purpose. All amounts
accruing to the State Insurance Fund, which is hereby established in
the SSS and GSIS, respectively, shall be deposited with any
authorized depository bank approved by the Commission, or invested
with due and prudent regard for the liquidity needs of the System.
Art. 186 - Settlement of claims — The System shall have original
and exclusive jurisdiction to settle any dispute arising from this Title
with respect to coverage, entitlement to benefits, collection and
payment of contributions and penalties thereon, or any other matter
related thereto, subject to appeal to the Commission, which shall
decide appealed cases within 20 working days from the submission
of the evidence.
FJTR REVIEWER - LABOR
Art. 187 - Review — Decisions, orders or resolutions of the
Commission may be reviewed on certiorari by the Supreme Court on
question of law upon petition of an aggrieved party within 10 days
from notice thereof.
PROCESS:
SYSTEM —> ECC —> CA via R43 —> SC via R45
Art. 188 - Enforcement of decisions —
(a) Any decision, order or resolution of the Commission shall become
final and executory if no appeal is taken therefrom within 10 days
from notice thereof. All awards granted by the Commission in
cases appealed from decisions of the System shall be effected
within 15 days from receipt of notice.
(b) In all other cases, decisions, orders and resolutions of the
Commission which have become final and executory shall be
enforced and executed in the same manner as decisions of the
RTC, and the Commission shall have the power to issue to the
city or provincial sheriff or to the sheriff whom it may appoint,
such writs of execution as may be necessary for the enforcement
of such decisions, orders or resolutions, and any person who
shall fail or refuse to comply therewith shall, upon application by
the Commission, be punished by the proper court for contempt.
Chapter IV
CONTRIBUTIONS
Art. 189 - Employers’ contributions —
(a) Under such regulations as the System may prescribe, beginning
as of the last day of the month when an employee’s compulsory
coverage takes effect and every month thereafter during his
employment, his employer shall prepare to remit to the System a
contribution equivalent to 1% of his monthly salary credit.
(b) The rate of contribution shall be reviewed periodically and subject
to the limitations herein provided, may be revised as the
experience in risk, cost of administration and actual or anticipated
as well as unexpected losses, may require.
(c) Contributions under this Title shall be paid in their entirety by the
employer and any contract or device for the deductions of any
 portion thereof from the wages or salaries of the employees shall
be null and void.
(d) When a covered employee dies, becomes disabled or is
separated from employment, his employer’s obligation to pay the
monthly contribution arising from that employment shall cease at
the end of the month of contingency and during such months that
he is not receiving wages or salary.
Art. 190 - Government guarantee — The Republic of the
Philippines guarantees the benefits prescribed under this Title, and
accepts general responsibility for the solvency of the State Insurance
Fund. In case of any deficiency, the same shall be covered by
supplemental appropriations from the national government.
Chapter V
MEDICAL BENEFITS
Art. 191 - Medical services — Immediately after an employee
contracts sickness or sustains an injury, he shall be provided by the
System during the subsequent period of his disability with such
medical services and appliances as the nature of his sickness or
injury and progress of his recovery may require, subject to the
expense limitation prescribed by the Commission.
EMPLOYEE COMPENSATION BENEFITS SUMMARIZED:
(1) Services
A. Medical services, appliances and supplies
B. Rehabilitation services
(2) Cash Income or Pension due to:
A. Temporary Total Disability
B. Permanent Total Disability
C. Permanent Partial Disability
D. Death
(3) Funeral Benefit
Note: Medical Benefit shall begin on the 1st day of injury or sickness
and lasts as long as the employee is sick because the liability for
medical care lasts during the period of disability, and does not end
when employment is terminated.
FJTR REVIEWER - LABOR
Art. 192 - Liability — The System shall have the authority to choose
or order a change of physician, hospital or rehabilitation facility for the
employee, and shall not be liable for compensation for any
aggravation of the employee’s injury or sickness resulting from
unauthorized changes by the employee of medical services,
appliances, supplies, hospitals, rehabilitation facilities or physicians.
Art. 193 - Attending physician — Any physician attending an
injured or sick employee shall comply with all the regulations of the
System and submit reports in prescribed forms at such time as may
be required concerning his condition or treatment. All medical
information relevant to the particular injury or sickness shall, on
demand, be made available to the employee or the System. No
information developed in connection with treatment or examination
for which compensation is sought shall be considered as privileged
communication.
Art. 194 - Refusal of examination or treatment — If the employee
unreasonably refuses to submit to medical examination or treatment,
the System shall stop the payment of further compensation during
such time as such refusal continues. What constitutes an
unreasonable refusal shall be determined by the System which may,
on its own initiative, determine the necessity, character and
sufficiency of any medical services furnished or to be furnished.
Art. 195 - Fees and other charges — All fees and other charges for
hospital services, medical care and appliances, including
professional fees, shall not be higher than those prevailing in wards
of hospitals for similar services to injured or sick persons in general
and shall be subject to the regulations of the Commission.
Professional fees shall only be appreciably higher than those
prescribed under RA 6111, as amended, otherwise known as the
Philippine Medical Care Act of 1969.
Art. 196 - Rehabilitation services —
(a) The System shall, as soon as practicable, establish a continuing
program, for the rehabilitation of injured and handicapped
employees who shall be entitled to rehabilitation services, which
shall consist of medical, surgical or hospital treatment, including
 appliances if they have been handicapped by the injury, to help
them become physically independent.
(b) As soon as practicable, the System shall establish centers
equipped and staffed to provide a balanced program of remedial
treatment, vocational assessment and preparation designed to
meet the individual needs of each handicapped employee to
restore him to suitable employment, including assistance as may
be within its resources, to help each rehabilitee to develop his
mental, vocational or social potential.
Chapter VI
DISABILITY BENEFITS
REMEMBER:
(1) Disability refers to the loss or impairment of earning capacity.
(2) Even if an employee suffers a work-connected injury or illness, as
long as he goes on working without any reduction whatsoever in
his earning capacity, there is no disability and, therefore, he is not
entitled to any income benefit.
Art. 197 - Temporary total disability —
(a) Under such regulations as the Commission may approve, any
employee under this Title who sustains an injury or contracts
sickness resulting in temporary total disability shall, for each day
of such a disability or fraction thereof, be paid by the System an
income benefit equivalent to 90% of his average daily salary
credit, subject to the following conditions: the daily income benefit
shall not be less than P10 nor more than P2001, nor paid for a
continuous period longer than 120 days, except as otherwise
provided for in the Rules, and the System shall be notified of the
injury or sickness.
(b) The payment of such income benefit shall be in accordance with
the regulations of the Commission.
Notes:
(1) Not more than 120 days
1 P90 is increased to P200 by ECC Resolution 12-09-21 (2012).
FJTR REVIEWER - LABOR
(2) Monthly income benefit shall be suspended if the employee fails
to submit a monthly medical report certified by its attending
physician.
(3) Relapse (nawala tapos bumalik) shall be considered independent
of, and separate from the period covered by the original disability.
Such period shall not be added to the period covered by his
original disability in the computation of his income benefit.
Art. 198 - Permanent total disability —
(a) Under such regulations as the Commission may approve, any
employee under this Title who contracts sickness or sustains an
injury resulting in his permanent total disability shall, for each
month until his death, be paid by the System during such a
disability, an amount equivalent to the monthly income benefit,
plus 10% thereof for each dependent child, but not exceeding 5,
beginning with the youngest and without substitution: Provided,
That the monthly income benefit shall be the new amount of the
monthly benefit for all covered pensioners, effective upon
approval of this Decree.
(b) The monthly income benefit shall be guaranteed for 5 years, and
shall be suspended if the employee is gainfully employed, or
recovers from his permanent total disability, or fails to present
himself for examination at least once a year upon notice by the
System, except as otherwise provided for in other laws, decrees,
orders or Letters of Instructions.
(c) The following disabilities shall be deemed total and permanent:
1. Temporary total disability lasting continuously for more than 120
days, except as otherwise provided for in the Rules;
2. Complete loss of sight of both eyes;
3. Loss of two limbs at or above the ankle or wrist;
4. Permanent complete paralysis of two limbs;
5. Brain injury resulting in incurable imbecility or insanity; and
6. Such cases as determined by the Medical Director of the System
and approved by the Commission.
(d) The number of months of paid coverage shall be defined and Provided, That such a loss shall be either the functional loss of the
approximated by a formula to be approved by the Commission. use or physical loss of the member.

Art. 199 - Permanent partial disability — (d) In case of permanent partial disability less than the total loss of
(a) Under such regulations as the Commission may approve, any the member specified in the preceding paragraph, the same monthly
employee under this Title who contracts sickness or sustains an income benefit shall be paid for a portion of the period established for
injury resulting in permanent partial disability shall, for each the total loss of the member in accordance with the proportion that
month not exceeding the period designated herein, be paid by the the partial loss bears to the total loss. If the result is a decimal
System during such a disability an income benefit for permanent fraction, the same shall be rounded off to the next higher integer.
total disability.
(b) The benefit shall be paid for not more than the period designated (e) In cases of simultaneous loss of more than 1 member or a part
in the following schedules: thereof as specified in this Article, the same monthly income benefit
shall be paid for a period equivalent to the sum of the periods
Complete and permanent No. of Months established for the loss of the member or the part thereof. If the result
loss of the use of is a decimal fraction, the same shall be rounded off to the next higher
integer.
One thumb 10
One index finger 8 (f) In cases of injuries or illnesses resulting in a permanent partial
One middle finger 6 disability not listed in the preceding schedule, the benefit shall be an
One ring finger 5 income benefit equivalent to the percentage of the permanent loss of
One little finger 3 the capacity to work.
One big toe 6
One toe 3 (g) Under such regulations as the Commission may approve, the
One arm 50 income benefit payable in case of permanent partial disability may be
One hand 39 paid in monthly pension or in lump sum if the period covered does
One foot 31 not exceed 1 year.
One leg 46
One ear 10 Notes:
Both ears 20 (1) If the indicated number of months exceeds 12, the income benefit
Hearing of one ear 10 shall be paid in monthly pension; otherwise, the System may pay
Hearing of both ears 50 in lump sum or in monthly pension.
Sight of one eye 25 (2) Conversion from Permanent Partial Disability to Permanent Total
Disability is allowed because a person’s disability may not
(c) A loss of a wrist shall be considered as a loss of the hand, and a manifest fully at one precise moment in time but rather over a
loss of an elbow shall be considered as a loss of the arm. A loss of an period of time. (GSIS vs. CA, GR No. 116015, 1996 case)
ankle shall be considered as loss of a foot, and a loss of a knee shall
be considered as a loss of the leg. A loss of more than one joint shall
be considered as a loss of one-half of the whole finger or toe:

FJTR REVIEWER - LABOR

 Chapter VII
DEATH BENEFITS
Art. 200 - Death —
(a) Under such regulations as the Commission may approve, the
System shall pay to the primary beneficiaries upon the death of
the covered employee under this Title, an amount equivalent to
his monthly income benefit, plus 10% thereof for each dependent
child, but not exceeding 5, beginning with the youngest and
without substitution, except as provided for in paragraph (j) of
Article 167 hereof: Provided, however, That the monthly income
benefit shall be guaranteed for 5 years: Provided, further, That if
he has no primary beneficiary, the System shall pay to his
secondary beneficiaries the monthly income benefit but not to
exceed 60 months: Provided, finally, That the minimum death
benefit shall not be less than P15,000.
(b) Under such regulations as the Commission may approve, the
System shall pay to the primary beneficiaries upon the death of a
covered employee who is under permanent total disability under
this Title, 80% of the monthly income benefit and his dependents
to the dependents’ pension: Provided, That the marriage must
have been validly subsisting at the time of disability: Provided,
further, That if he has no primary beneficiary, the System shall
pay to his secondary beneficiaries the monthly pension excluding
the dependents’ pension, of the remaining balance of the 5-year
guaranteed period: Provided, finally, That the minimum death
benefit shall not be less than P15,000.
(c) The monthly income benefit provided herein shall be the new
amount of the monthly income benefit for the surviving
beneficiaries upon the approval of this decree.
(d) Funeral benefit - A funeral benefit of P3,000.00 shall be paid upon
the death of a covered employee or permanently totally disabled
pensioner.
DEATH (Art. 200, par. 1):
(1) Primary beneficiary — monthly income + 10% for each dependent
child not to exceed 5, guaranteed for 5 years
(2) No primary beneficiary — monthly income not to exceed 60
months
FJTR REVIEWER - LABOR
(3) Minimum death benefit for #1 and #2 shall not be less than
P15,000.
DEATH UNDER PERMANENT TOTAL DISABILITY (Art. 200, par.
2):
(1) Primary beneficiary — 80% of monthly income + dependents
pension (for spouse, marriage must have been validly subsisting
at the time of disability)
(2) No primary beneficiary — monthly pension
(3) Minimum death benefit for #1 and #2 shall not be less than
P15,000.
IN ORDER FOR SPOUSE TO BE CONSIDERED AS DEPENDENT:
(1) living together with covered employee
(2) legitimate spouse
TWO WIVES AS CLAIMANTS:
General Rule:
ECC can determine who is the legal wife between the two claimants.
Once determined, it will be given to the legitimate spouse.
Exceptions:
(1) In Consuegra vs. GSIS, the Court held that, “in cases where the
2nd wife had in good faith contracted marriage with the decedent
notwithstanding the subsistence of his marriage with the 1st wife,
the Court has generally sought and applied a just and equitable
solution and division of the decedent’s estate among the 2
innocent surviving spouse.”
(2) Muslim wives but only up to 4 wives.
SEPARATED SPOUSE:
(1) If annulled, not entitled
(2) If legal separation,
General Rule:
Not entitled
Exception:
If the cause of the separation is done by the covered employee, the
innocent spouse is entitled to claim the death benefits.
DEATH BENEFIT ARE PAID IN THE FORM OF CASH MONTHLY
PENSION:
(1) For the primary beneficiaries, guaranteed for 5 years;
(2) for not more than 60 months to the secondary beneficiaries in
case there are no more primary beneficiaries;
(3) in no case shall the total benefit be less than P15,000.
THE BENEFICIARIES ARE:
(1) PRIMARY
A. Dependent spouse until he/she remarries;
B. Dependent Children (Legitimate, legitimated, legally adopted)
(2) SECONDARY
A. Illegitimate Children and Legitimate Descendants;
B. Parents, Grandparents, Grandchildren
Notes:
(1) If the deceased employee has no beneficiaries at the time of his
death, the death benefit shall accrue to the Employee’s
Compensation Fund.
(2) Death benefit may go beyond 5 years in some circumstances
(Atty. Fulgueras)
Chapter VIII
PROVISIONS COMMON TO INCOME BENEFITS
Art. 201 - Relationship and dependency — All questions of
relationship and dependency shall be determined as of the time of
death.
Art. 202 - Delinquent contributions —
(a) An employer who is delinquent in his contributions shall be liable
to the System for the benefits which may have been paid by the
System to his employees or their dependents, and any benefit
and expenses to which such employer is liable shall constitute a
lien on all his property, real or personal, which is hereby declared
to be preferred to any credit, except taxes. The payment by the
employer of the lump sum equivalent of such liability shall
FJTR REVIEWER - LABOR
absolve him from the payment of the delinquent contribution and
penalty thereon with respect to the employee concerned.
(b) Failure or refusal of the employer to pay or remit the contribution
herein prescribed shall not prejudice the right of the employee or
his dependents to the benefits under this Title. If the sickness,
injury, disability or death occurs before the System receives any
report of the name of his employee, the employer shall be liable
to the System for the lump sum equivalent to the benefits to
which such employee or his dependents may be entitled.
Art. 203 - Second injuries — If any employee under permanent
partial disability suffers another injury which results in a compensable
disability greater than the previous injury, the State Insurance Fund
shall be liable for the income benefit of the new disability: Provided,
That if the new disability is related to the previous disability, the
System shall be liable only for the difference in income benefits.
Art. 204 - Assignment of benefits — No claim for compensation
under this Title is transferable or liable to tax, attachment,
garnishment, levy or seizure by or under any legal process
whatsoever, either before or after receipt by the person or persons
entitled thereto, except to pay any debt of the employee to the
System.
Note: Off-setting of benefits for debts is not allowed.
Art. 205 - Earned benefits — Income benefits shall, with respect to
any period of disability, be payable in accordance with this Title to an
employee who is entitled to receive wages, salaries or allowances for
holidays, vacation or sick leaves and any other award of benefit
under a collective bargaining or other agreement.
Art. 206 - Safety devices — In case the employee’s injury or death
was due to the failure of the employer to comply with any law or to
install and maintain safety devices or to take other precautions for the
prevention of injury, said employer shall pay the State Insurance
Fund a penalty of 25% of the lump sum equivalent of the income
benefit payable by the System to the employee. All employers,
specially those who should have been paying a rate of contribution
higher than required of them under this Title, are enjoined to
undertake and strengthen measures for the occupational health and
safety of their employees.
Art. 207 - Prescriptive period — No claim for compensation shall be
given due course unless said claim is filed with the System within 3
years from the time the cause of action accrued.
RECKONING PERIOD OF THE CAUSE OF ACTION:
(1) In case of death, it is reckoned from the death.
(2) In case of injury, it is reckoned from the time the employee lost
his earning capacity, and NOT from the time the injury happened.
General Rule:
Claim must be in writing.
Exception:
Constructive filing:
(1) a verbal request for medical and hospitalization expenses made to
the employer through its treasurer;
(2) Request for financial aid in behalf of the family of deceased
worker made by the President of his union.
Note: The date of registered mailing is considered as the date of
filing and not from the date of actual receipt of employer.
Art. 208 - 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
FJTR REVIEWER - LABOR
care and dispose of the minor’s or incompetent’s property for his
benefit.
Art. 209 - Prohibition — No agent, attorney or other person
pursuing or in charge of the preparation or filing of any claim for
benefit under this Title shall demand or charge for his services any
fee, and any stipulation to the contrary shall be null and void. The
retention or deduction of any amount from any benefit granted under
this Title for the payment of fees for such services is prohibited.
Violation of any provision of this Article shall be punished by a fine of
not less than P500 nor more than P5,000, or imprisonment for not
less than 6 months nor more than 1 year, or both, at the discretion of
the court.
Note: The defaulting government agency is liable for the attorney’s
fees because it compelled the claimant to employ the services of
counsel by unjustly refusing to recognize the validity of the claim of
the employee. (L.G. Cristobal vs. ECC, GR No. L-49280, 1981 case)
Art. 210 - Exemption from levy, tax, etc — All laws to the contrary
notwithstanding, the State Insurance Fund and all its assets shall be
exempt from any tax, fee, charge, levy, or customs or import duty and
no law hereafter enacted shall apply to the State Insurance Fund
unless it is provided therein that the same is applicable by expressly
stating its name.
Chapter IX
RECORDS, REPORTS AND PENAL PROVISIONS
Art. 211 - Record of death or disability —
(a) All employers shall keep a logbook to record chronologically the
sickness, injury or death of their employees, setting forth therein
their names, dates and places of the contingency, nature of the
contingency and absences. Entries in the logbook shall be made
within 5 days from notice or knowledge of the occurrence of the
contingency. Within 5 days after entry in the logbook, the
employer shall report to the System only those contingencies he
deems to be work-connected.
(b) All entries in the employer’s logbook shall be made by the
employer or any of his authorized official after verification of the
contingencies or the employees’ absences for a period of a day
or more. Upon request by the System, the employer shall furnish
the necessary certificate regarding information about any
contingency appearing in the logbook, citing the entry number,
page number and date. Such logbook shall be made available for
inspection to the duly authorized representative of the System.
(c) Should any employer fail to record in the logbook an actual
sickness, injury or death of any of his employees within the period
prescribed herein, give false information or withhold material
information already in his possession, he shall be held liable for
50% of the lump sum equivalent of the income benefit to which
the employee may be found to be entitled, the payment of which
shall accrue to the State Insurance Fund.
(d) In case of payment of benefits for any claim which is later
determined to be fraudulent and the employer is found to be a
party to the fraud, such employer shall reimburse the System the
full amount of the compensation paid.
Art. 212 - Notice of sickness, injury or death — Notice of sickness,
injury or death shall be given to the employer by the employee or by
his dependents or anybody on his behalf within 5 days from the
occurrence of the contingency. No notice to the employer shall be
required if the contingency is known to the employer or his agents or
representatives.
Art. 213 - Penal provisions —
(a) The penal provisions of RA 1161, as amended, and CA 186, as
amended, with regard to the funds as are thereunder being paid
to, collected or disbursed by the System, shall be applicable to
the collection, administration and disbursement of the Funds
under this Title. The penal provisions on coverage shall also be
applicable.
(b) Any person who, for the purpose of securing entitlement to any
benefit or payment under this Title, or the issuance of any
certificate or document for any purpose connected with this Title,
whether for him or for some other person, commits fraud,
collusion, falsification, misrepresentation of facts or any other kind
FJTR REVIEWER - LABOR
of anomaly, shall be punished with a fine of not less than P500
nor more than P5,000 and an imprisonment for not less than 6
months nor more than 1 year, at the discretion of the court.
(c) If the act penalized by this Article is committed by any person who
has been or is employed by the Commission or System, or a
recidivist, the imprisonment shall not be less than 1 year; if
committed by a lawyer, physician or other professional, he shall,
in addition to the penalty prescribed herein, be disqualified from
the practice of his profession; and if committed by any official,
employee or personnel of the Commission, System or any
government agency, he shall, in addition to the penalty prescribed
herein, be dismissed with prejudice to re-employment in the
government service.
Art. 214 - Applicability — This Title shall apply only to injury,
sickness, disability or death occurring on or after January 1, 1975.
Art. 215 - Repeal — All existing laws, Presidential Decrees and
Letters of Instructions which are inconsistent with or contrary to this
Decree, are hereby repealed: Provided, That in the case of the GSIS,
conditions for entitlement to benefits shall be governed by the Labor
Code, as amended: Provided, however, That the formulas for
computation of benefits, as well as the contribution base, shall be
those provided under CA 186, as amended by PD 1146, plus 20%t
thereof.
General Rule:
Notice to employer is required.
Exceptions:
(1) When the employee suffers the contingency within the employer’s
premises;
(2) When the employee files an application for LOA by reason of
contingency from which he suffers;
(3) When the employer provides medical services and/or supplies to
the employee who suffers from the contingency;
(4) When the employer can be reasonably presumed to have
knowledge of the employee’s contingency, in view of the following
circumstance:
 A. Employee was performing an official function for the
employer when the contingency occurred;
B. Employee’s contingency has been publicized through mass
media outlets;
C. The specific circumstances of the occurrence of the
contingency have been such that the employer can be
reasonably presumed to have readily known it soon
thereafter;
D. Any other circumstances that may give rise to a reasonable
presumption that the employer has been aware of the
contingency.
Note: Quitclaim is null and void by reason of public policy.
Title III
MEDICARE
Art. 216 - Medical care — The Philippine Medical Care Plan shall be
implemented as provided under RA 6111, as amended.
Title IV
ADULT EDUCATION
Art. 217 - Adult education — Every employer shall render
assistance in the establishment and operation of adult education
programs for their workers and employees as prescribed by
regulations jointly approved by the Department of Labor and
Employment and the Department of Education, Culture and Sports.
TITLE 1
TERMINATION OF EMPLOYMENT
Art. 293 - Coverage — The provisions of this Title shall apply to all
establishments or undertakings, whether for profit or not.
Art. 294 - Security of tenure — In cases of regular employment, the
employer shall not terminate the services of an employee except for
a just cause or when authorized by this Title. An employee who is
unjustly dismissed from work shall be entitled to reinstatement
FJTR REVIEWER - LABOR
without loss of seniority rights and other privileges and to his full
backwages, inclusive of allowances, and to his other benefits or their
monetary equivalent computed from the time his compensation was
withheld from him up to the time of his actual reinstatement.
Notes:
(1) The policy of the state is to assure the right of workers to security
of tenure (Art. 13, Sec. 3, 1987 Constitution). The guaranty is an
act of social justice.
(2) Not limited to regular employees since the Constitution entitles “All
workers” to this right.
(3) Unilateral termination or “Employment-at-will (EAW) contract” is
not allowed to a Filipino employed in the Philippines, but if a
Filipino is working in a foreign land where EAW is lawful, it is
allowed. (See GBMLT vs. Malinao, 2015 case)
(4) You cannot contract away your right to security of tenure because
it is against public policy. (Atty. Fulgueras)
(5) Managerial employees may be terminated on the ground of loss of
confidence but such termination must be done without abuse of
discretion or in arbitrary manner by the employer.
Art. 295 - Regular and casual employment — The provisions of
written agreement to the contrary notwithstanding and regardless of
the oral agreement of the parties, an employment shall be deemed to
be regular where the employee has been engaged to perform
activities which are usually necessary or desirable in the usual
business or trade of the employer, except where the employment has
been fixed for a specific project or undertaking the completion or
termination of which has been determined at the time of the
engagement of the employee or where the work or service to be
performed is seasonal in nature and the employment is for the
duration of the season.
An employment shall be deemed to be casual if it is not covered by
the preceding paragraph: Provided, That any employee who has
rendered at least 1 year of service, whether such service is
continuous or broken, shall be considered a regular employee with
respect to the activity in which he is employed and his employment
shall continue while such activity exists.

Art. 296 - Probationary employment — Probationary employment
shall not exceed 6 months from the date the employee started
working, unless it is covered by an apprenticeship agreement
stipulating a longer period. The services of an employee who has
been engaged on a probationary basis may be terminated for a just
cause or when he fails to qualify as a regular employee in
accordance with reasonable standards made known by the employer
to the employee at the time of his engagement. An employee who is
allowed to work after a probationary period shall be considered a
regular employee.
WHO IS A REGULAR EMPLOYEE?
- Employee who has been engaged to perform activities which are
usually necessary or desirable in the usual business or trade of the
employer.
- May be terminated only for: (1) just cause; or (2) authorized cause
by the LC.
WHO IS A PROJECT EMPLOYEE?
- Employment has been fixed for a specific project or undertaking,
the completion or termination of which has been determined at the
time of the engagement of the employee.
- May be terminated only for: (1) upon completion of the project
because it is coterminous; (2) just cause; or (3) authorised cause
by the LC.
Notes:
(1) Upon the termination of the project employee due to the
completion of the project, the employer must report it to DOLE
within 30 days following the date of his termination. (Salazar vs.
NLRC and Carlos Construction, 1996 case)
(2) If the employee was terminated upon completion of the project,
he is not entitled to separation pay, and the 2 notice rule does
not apply. (Id)
REQUISITES TO BE CONSIDERED AS PROJECT EMPLOYEE:
(1) Designation of named employees as “project employees”
FJTR REVIEWER - LABOR
(2) Assignment to a specific project are effected and implemented in
good faith
WHAT ARE THE 2 TYPES OF PROJECT ACTIVITIES?
(1) A project could refer to a particular job or undertaking that is
within the regular or usual business of the employer company
BUT is distinct from the other undertakings of the company. (Ex.
Construction company who carries out 2 or more discrete
identifiable construction projects: a 25-storey hotel in Makati; and
a residential building in Baguio)
(2) A project could refer to a particular job or undertaking that is
NOT within the regular or usual business of the employer
company BUT is distinct from the other undertakings of the
company.
Note: Where the employee was repeatedly rehired due to the
demands of the business, his employment ceases to be coterminous
with specific projects. (D.M. Consunji vs. Jamin, 2012)
WHO IS A SEASONAL EMPLOYEE?
- those employed only for that season alone.
- If they are rehired, they become regular employees
- May be terminated only for: (1) just cause; or (2) authorised cause
by the LC.
WHO IS A CASUAL EMPLOYEE?
- Employee is engaged to perform a job, which is merely incidental
to the business of the employer, and such job is for a definite
period made known to the employee at the of engagement,
provided, that, any employee who has rendered at least 1 year of
service, whether such service is continuous or broken, shall be
considered a regular employee with respect to the activity in which
he is employed and his employment shall continue while such
activity exists.
- May be terminated only for: (1) just cause; or (2) authorized cause.
WHO IS A FIXED-TERM EMPLOYEE?
- Requisites: (1) fixed period was knowingly and freely agreed upon
by the parties; and (2) no vitiation of consent of the employee.
- Not provided in LC but is based on Brent vs. Zamora, 1990 case.
- Fixed-term employee is deemed regular when he is not terminated
after the lapse of the period.
- Repeated rehiring is considered regular to those people who do
not have bargaining power to bargain for the terms and conditions
of their employment. (Atty. Fulgueras)
- Best Proof is the copy of the company policy or employment
contract.
- May be terminated only for: (1) end of contract; (2) just cause; or
(3) authorized cause.
Note: For project and fixed-term employees, the employer must
inform the employee at the time of engagement, failure of which will
result to the regularization of said employees.
WHO IS A PROBATIONARY EMPLOYEE?
- one who is under observation by an employer to determine
whether he is qualified for permanent employment.
- May be terminated only for: (1) just cause; or (2) failure to qualify
as regular employee in accordance with reasonable standards
made known by the employer to the employee at the time of his
engagement.
REQUISITES OF PROBATIONARY EMPLOYMENT TO BE VALID:
(1) express agreement that he is a probationary
(2) does not exceed 6 months
(3) must provide for the qualification to be regular (either oral or
written, but latter is preferred)
(4) it is made known by the employee to the employee at the time of
his engagement.
Notes:
(1) If the employee continues to be employed beyond 6 months, he
ceases to be a probationary and becomes a regular employee.
(2) The employer must determine the fitness of the employee within
6 months, failure of which will result in the regularization of the
employee. (Atty. Fulgueras)
(3) An employer and employee may validly agree to extend the
probationary period beyond 6 months, and the employee is still
FJTR REVIEWER - LABOR
considered as probationary. This is not contrary to public policy
because such extension was made in favour of the employee to
show his fitness in the job. (Mariwasa Manufacturing vs.
Leogardo, 1989 case)
CASE DOCTRINES:
GANZON vs. ANDO
- To be considered as project-based, the employer has the burden of
proof to show that: (a) the employee was assigned to carry out a
specific project or undertaking and (b) the duration and scope of
which were specified at the time the employee was engaged for
such project or undertaking.
- Also, A project employment contract is valid under the law
provided that: (1) the period was agreed upon knowingly and
voluntarily by the parties, without any circumstances vitiating the
consent of the employee; or (2) where it satisfactorily appears that
the employer and employee dealt with each other on more or less
equal terms with no moral dominance whatever being exercised by
the former over the latter; and it is apparent from the
circumstances that the period was not imposed to preclude the
acquisition of tenurial security by the employee.
PROJECT vs. FIXED-TERM EMPLOYEE
PROJECT FIXED-TERM
the decisive determinant is the the decisive determinant is the
activity that the employee is call day certain agreed upon by the
upon to perform. parties for the commencement
and termination of the
employment relationship.
May be terminated upon the May be terminated on the
completion of the project specific date (day certain)
provided in the contract.
UST vs. SAMAHAN NG MANGGAGAWA NG UST Note: If the employee is dismissed based on the above article, he is
- There are 2 types of regular employees, namely: (a) those who are NOT entitled to a separation pay because it was due to his fault.
engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer (first DIFFERENTIATE JUST FROM AUTHORIZED CAUSE
category); and (b) those who have rendered at least 1 year of JUST CAUSE AUTHORIZED CAUSE
service, whether continuous or broken, with respect to the activity
in which they are employed (second category — regularized causes directly attributable to causes brought by the necessity
casual). the fault or negligence of the and exigencies of business,
employee. changing economic conditions
FUJI vs. ESPIRITU and illness of the employee.
- An employee can be a regular employee with a fixed-term contract.
The law does not preclude the possibility that a regular employee
may opt to have a fixed-term contract for valid reasons. This was ELEMENTS OF SERIOUS MISCONDUCT:
recognized in Brent: For as long as it was the employee who (1) There must be misconduct
requested, or bargained, that the contract have a "definite date of (2) The misconduct must be of such grave and aggravated
termination,” or that the fixed-term contract be freely entered into (3) It must relate to the performance of the employee’s duties; and
by the employer and the employee, then the validity of the fixed- (4) There must be showing that the employee becomes unfit to
term contract will be upheld. continue working for the employer.
- For dismissal on the ground of disease to be valid, 2 requirements
must be complied with: (1) the employee’s disease cannot be Example of Serious Misconduct: Sexual Harassment
cured within 6 months and his “continued employment is prohibited
by law or prejudicial to his health as well as to the health of his co- Note: If simple misconduct, you may be disciplined but not
employees”; and (2) certification issued by a competent public terminated. (Atty. Fulgueras)
health authority that even with proper medical treatment, the
disease cannot be cured within 6 months. ELEMENTS OF WILLFUL DISOBEDIENCE:
(1) There must be disobedience or insubordination
Art. 297 - Termination by employer — An employer may terminate (2) Such is willful or intentional
an employment for any of the following causes: (3) The order violated must be reasonable, lawful, and made known
(a) Serious misconduct or willful disobedience by the employee of the to the employee; and
lawful orders of his employer or representative in connection with (4) The order must pertain to the duties which he has been engaged
his work; to discharge.
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him VALID ORDER TO TRANSFER:
by his employer or duly authorized representative; (1) Employer’s order to transfer the employee must be exercised
(d) Commission of a crime or offense by the employee against the without grave abuse of discretion.
person of his employer or any immediate member of his family or (2) Such transfer is not unnecessary, inconvenient, and prejudicial to
his duly authorized representatives; and the employee.
(e) Other causes analogous to the foregoing.

FJTR REVIEWER - LABOR

 RULES ON INCONVENIENT TRANSFER:
General Rule:
Mere inconvenience do not justify disobedience to a transfer order.
Exception:
If the transfer order fails the criteria of lawfulness and
reasonableness. (Reasonableness pertains to the kind or character
of directives and commands and to the manner in which they are
made.)
TRANSFER WITH PROMOTION
- There is no law that compels an employee to accept a promotion,
as a promotion is in the nature of a gift or reward, which a person
has a right to refuse. As such, employee’s disobedience to the
transfer is valid because promotion is not an order but is in the
nature of a gift or reward which may be refused. (Dosch vs. NLRC,
1983 case)
DISTINGUISH TRANSFER FROM PROMOTION
TRANSFER PROMOTION
movement from 1 position to movement from 1 position to
another of equivalent position another of higher position.
(4) Must be in connection with the employee’s work.
TARDINESS AND ABSENTEEISM
- case to case basis but in one case, the employee’s 3 counts of
tardiness cannot be considered as gross and habitual neglect of
duty.
ATTITUDE PROBLEM
- if amounts to serious misconduct in relation to his work, the
employee may be terminated.
ABANDONMENT
- 2 elements: (1) failure to report for work or absence without valid
reason; and (2) a clear intention to sever the Employer-Employee
Relationship (this is more determinative factor).
- General Rule: Immediate filing of complaint negates abandonment
- Exception: If the employee does not disprove abandonment of
work.
ELEMENTS OF FRAUD OR WILLFUL BREACH OF TRUST:
(1) There must be an act, omission, or concealment;
(2) Such involves a breach of legal duty, trust, or confidence justly
reposed;
(3) Committed against the employer or his/her representative; and

Note: Any increase in salary Examples of Fraud or Willful breach of trust:

should only be considered
incidental but never
determinative of whether or not
a promotion is bestowed upon
an employee. (PH Telegraph vs.
CA, 2003 case)
ELEMENTS OF GROSS AND HABITUAL NEGLECT:
(1) There must be neglect of duty; and
(2) Negligence must be both gross and habitual in character.
(1) Falsification of Time Cards;
(2) Theft of company property even if its is a scrap material.
ELEMENTS OF LOSS OF CONFIDENCE:
(1) There must be an act, omission, or concealment;
(2) Such act justifies the loss of trust and confidence of the employer
to the employee;
(3) The employee must be holding a position of trust and
confidence;
(4) The loss of trust and confidence is not simulated;
(5) It should not be used as a subterfuge for causes which are
illegal, or unjustified; and
(6) It must be genuine and not a mere afterthought to justify an
earlier action taken in bad faith.

FJTR REVIEWER - LABOR


Note: This only applies to: (1) Managerial employees, or those
vested with power to lay down management policies; and (2)
Cashiers, Auditors, Property Custodians OR those who, in the normal
and routine exercise of their function, regularly handle significant
amounts of money or property of the employer. (DO 147-15)
ELEMENTS OF COMMISSION OF A CRIME OR OFFENSE:
(1) There must be an act or omission punishable/prohibited by law;
and
(2) The act or omission was committed by the employee against the
person of his employer, or any immediate member of his family
or his duly authorized representative.
Note: Conviction is not necessary because the quantum of evidence
required is only substantial.
ELEMENTS OF ANALOGOUS CAUSES:
(1) There must be an act or omission similar to those specified just
causes; and
(2) The act or omission must be voluntarily and/or willful on the part
of the employee.
Examples of Analogous causes:
(1) Theft of property of co-employee (analogous to serious
misconduct)
(2) Poor performance if it amounts to gross and habitual neglect of
duties.
Note: No act or omission shall be considered as analogous causes
unless expressly specified in the company rules and regulations or
policies. (DO 147-15, s. 2015)
Art. 298 - Closure of establishment and reduction of personnel
— The employer may also terminate the employment of any
employee due to the installation of labor-saving devices, redundancy,
retrenchment to prevent losses or the closing or cessation of
operation of the establishment or undertaking unless the closing is for
the purpose of circumventing the provisions of this Title, by serving a
FJTR REVIEWER - LABOR
written notice on the worker and the Ministry of Labor and
Employment at least 1 month before the intended date thereof. In
case of termination due to the installation of labor-saving devices or
redundancy, the worker affected thereby shall be entitled to a
separation pay equivalent to at least his 1 month pay or to at least 1
month pay for every year of service, whichever is higher. In case of
retrenchment to prevent losses and in cases of closures or cessation
of operations of establishment or undertaking not due to serious
business losses or financial reverses, the separation pay shall be
equivalent to 1 month pay or at least 1/2 month pay for every year of
service, whichever is higher. A fraction of at least 6 months shall be
considered as 1 whole year.
Art. 299 - Disease as ground for termination — An employer may
terminate the services of an employee who has been found to be
suffering from any disease and whose continued employment is
prohibited by law or is prejudicial to his health as well as to the health
of his co-employees: Provided, That he is paid separation pay
equivalent to at least 1 month salary or to 1/2 month salary for every
year of service, whichever is greater, a fraction of at least 6 months
being considered as 1 whole year.
Q: WHAT ARE THE AUTHORIZED CAUSES OF TERMINATION?
A: There are only 5 grounds, to wit:
(1) Installation of labor-saving devices;
(2) Redundancy;
(3) Retrenchment to prevent losses;
(4) Closure or cessation of operation of establishment or
undertaking;
(5) Disease.
Q: WHAT ARE THE FAIR AND REASONABLE CRITERIA IN
SELECTING THE EMPLOYEES TO BE TERMINATED?
A: The following are the fair and reasonable criteria:
(1) Status;
(2) Efficiency;
(3) Seniority;
(4) Physical fitness age;
(5) Financial hardship.
ELEMENTS OF INSTALLATION OF LABOR-SAVING DEVICES: (4) The retrenchment must be in good faith for the advancement of
(1) There must be introduction of machinery, equipment or other its interest and not to defeat or circumvent the employee’s right
devices; to security of tenure; and
(2) The introduction is done in good faith (5) The must be fair and reasonable criteria in ascertaining who
(3) The purpose of introduction must be valid such as to save on would be dismissed and who would be retained among the
cost, enhance efficiency and other justifiable economic reasons employees.
(4) There is no other option available to the employer than the
introduction of such machineries and the consequent termination Q: HOW DO YOU PROVE BUSINESS LOSSES IN
of the employment of those affected thereby. RETRENCHMENT?
(5) There must be fair and reasonable criteria in selecting the A: It must be proved by sufficient and convincing evidence such as
employees to be terminated. the presentation of the Statement of Profit and Losses of the
company signed by a CPA or audited by an independent auditor.
ELEMENTS OF REDUNDANCY: (Uichico vs. NLRC and Santos, 1997 case)
(1) There must be superfluous position or services of employees;
(2) The position or services are one excess of what is reasonably REDUNDANCY vs. RETRENCHMENT
demanded by the actual requirements of the enterprise to REDUNDANCY RETRENCHMENT
operate in an economical and efficient manner;
(3) There must be good faith in abolishing redundant positions; results from the fact that the it is linked with losses; it is a
(4) There must be fair and reasonable criteria in selecting the position of the employee has cost-cutting measure made
employees to be terminated; and become superfluous, an excess immediately necessary by
(5) There must be an adequate proof of redundancy such but not over what is actually needed, business reverses.
limited to the new staffing pattern, feasibility studies/proposal, on even if the business has not
the viability of the newly created positions, job description and suffered reverses.
the approval by the management of the restructuring.
Separation pay is higher Separation pay is lower
Examples of Redundancy:
(1) Merger or consolidation of corporation; no business losses has business losses
(2) In call centers, if the client cease to be the client of the company,
the employees working for that client becomes redundant (Atty. ELEMENTS OF CLOSURE OR CESSATION OF OPERATION:
Fulgueras); (1) There must be a decision to close or cease operation of the
(3) Reorganization of the company. enterprise by the management;
(2) The decision was made in good faith; and
ELEMENTS OF RETRENCHMENT OR DOWNSIZING: (3) There is no other option available to the employer except to
(1) The retrenchment must be reasonably necessary and likely to close or cease operations.
prevent business losses;
(2) The losses, if already incurred, must be substantial, or if only Note: If the closure or cessation of operation is due to serious
expected, are reasonably imminent; business losses or financial reverses, employees are NOT entitled to
(3) The expected or actual losses must be proved by sufficient and separation pay.
convincing evidence;

FJTR REVIEWER - LABOR

Examples of Closure or Cessation of operation: Q: When can there be a higher separation pay?
(1) Cancellation of franchise A: The following are the instances when a separation can be
(2) Union busting, which is a criminal act. (Closure in bad faith) higher than those provided by law:
(1) If there is a stipulation in the employment contract;
RULE ON SALE OF BUSINESS (2) if there is a stipulation in the CBA; or
(3) if there is no union, if there is a company policy which grants
SALE OF ASSET SALE OF STOCK
higher separation pay.
terminates the employment because does not terminate the employment
there is a change of employer, and because the employer ELEMENTS OF DISEASE:
the seller is liable for separation pay, (corporations, NOT stockholders), (1) The employee must be suffering from any disease;
BUT the buyer is neither required to remains to be the employer. (2) The continued employment of the employee is prohibited by law
retain the employees nor liable for or prejudicial to his health, as well as the health of his co-
the payment of their claims. employees; and
(3) There must be a certification by a competent public health
Notes: authority that the disease is incurable within a period of 6 months
(1) An employment contract is a contract in personam, hence, you even with proper medical treatment.
cannot sell the employees. (Atty. Fulgueras)
(2) If the buyer contractually committed itself to retain the employees Note: A medical certificate issued by the company’s physician is not
of the seller, such contractual commitment must be followed. a certificate by “competent public health authority.” (Cebu Royal Plant
(Marina Port Services vs. Iniego, 1990 case) vs. Deputy Minister of Labor, 1987 case)

RULES ON CORPORATE LIABILITIES PROCEDURES TO TERMINATE EMPLOYMENT

(Jiao vs. NLRC, 2012 case):
General Rule: Buyer corporation is not liable for the debts of the
selling corporation, provided he acted in good faith and paid
adequate consideration for such assets.
Exceptions:
(1) Buyer expressly or impliedly agrees to assume the debts;
(2) Where the transaction amounts to a merger or consolidation of
the corporation;
(3) Where the buyer corporation is merely a continuation of the
selling corporation; and
(4) Where the selling corporation fraudulently enters into the
transaction to escape liability for those debts.
Q: WHAT ARE THE 2 ASPECTS OF DUE PROCESS?
A: (1) Substantive which mandates that an employee may be
dismissed based only on just or authorized cause. (Art. 297-299)
(2) Procedural which provides that an employee may be dismissed
only after he has been given an opportunity to be heard. (2 Notice
Rule)
Q: WHAT IS AN AMPLE OPPORTUNITY TO BE HEARD?
A: It means any meaningful opportunity (verbal or written) given to
the employee to answer the charges against him and submit
evidence in support of his defense, whether in a hearing, conference,
or some other fair, reasonable way. (Perez vs. PH Telegraph, 2009
case)

Q: IS A FORMAL HEARING MANDATORY?

A: As a general rule, NO.

FJTR REVIEWER - LABOR

By way of exception, it is mandatory if:
(1) it is requested by the employee in writing;
(2) substantial evidentiary dispute exists;
(3) a company rule or practice requires it; or
(4) similar circumstances requires it.
Note: Right to counsel is not a mandatory part of due process,
except when the employee himself requests for one or that he
manifests that he wants a formal hearing on the charges against him.
(Lopez vs. Alturas Group, 2011 case)
Q: WHAT ARE THE 2 NOTICE RULE?
A: 1st notice — notice to explain
2nd notice — notice of decision
PROCEDURE FOR JUST CAUSE:
(1) The employer must give 1st written notice given to the employee
which contains:
(a) specific cause or ground for termination, and company
policy if any;
(b) detailed narration of facts and circumstances that will
serve as basis for the charge against the employee. (General
description will not suffice)
(c) a directive that the employee is given opportunity to
submit a written explanation at least 5 calendar days from the receipt
of the notice. (King of Kings Transport vs. Mamac, 2007 case)
(2) After serving the notice, the employer should afford the employee
ample opportunity to be heard and to defend himself with the
assistance of his representative if he so desires.
(3) The employer shall serve the 2nd written notice indicating its
decision.
If the termination is justified, it shall contain:
(a) all circumstances involving the charge against the
employee have been considered; and
(b) the grounds have been established to justify the
severance of his employment.
Note: The 2 notices is mandatory and shall be served personally to
the employee or to his last known address. (DO 147-15)
FJTR REVIEWER - LABOR
PROCEDURE FOR AUTHORIZED CAUSE:
It is deemed complied upon service of a written notice to the
employee and the appropriate Regional Office of the DOLE at least 1
month before the effectivity of the termination, specifying the ground
for termination.
Notes:
(1) If the termination is brought about by the completion of the
contract or phase, no prior notice is required.
(2) If the termination is brought about by the failure of an employee
to meet the standards of the employer in case of probationary
employment, it shall be sufficient that a written notice is served
upon the employee within a reasonable time from the effective
date of termination. (Azucena, Book 2, p. 922, 2016 Edition)
(3) If the employee consented to his retrenchment or voluntarily
applied for retrenchment with the employer, the required
previous notice to DOLE is not necessary as the employee
thereby acknowledged the existence of a valid cause for
termination of his employment. (Santos vs. Pepsi Cola, 2001
case)
Q: WHEN CAN THE EMPLOYER PLACE THE EMPLOYEE UNDER
PREVENTIVE SUSPENSION?
A: When the employees continued employment poses a serious and
imminent threat to the life or property of the employer or his co-
workers. (DO No. 9, Sec. 8, s. 1997)
Q: HOW LONG SHOULD PREVENTIVE SUSPENSION LAST?
A: It should not last longer than 30 days (which is without pay),
because if it exceeds beyond the 30-day period, it amounts to
constructive dismissal, BUT if the investigation is not finished within
the 30 days, it may be extended provided the employee is with pay, in
which case, there is no constructive dismissal.
 CONSEQUENCES OF TERMINATION
Q: WHAT ARE THE CONSEQUENCES OF ILLEGAL DISMISSAL
CASES?
A: The employer is liable for:
(1) Back wages; and
(2) Reinstatement
A. In case reinstatement is impossible, SEPARATION PAY.
(3) Damages.
1. BACK WAGES:
- are granted on grounds of equity for earnings which a worker has
lost due to illegal dismissal.
- recovers lost income
- basis of computation is the wage at the time of dismissal.
- it is computed from the time of illegal dismissal up to the time of
actual reinstatement.
- Employer must pay full back wages without deduction the earnings
derived elsewhere during the period of his illegal dismissal.
(Bustamante vs. NLRC and Evergreen Farms, 1996 case)
- Backwages are not immediately executory, it may be appealed.
(Atty. Fulgueras)
2. REINSTATEMENT:
- restores the employee who was unjustly dismissed to the position
from which he was removed without loss of seniority rights and the
payment of back wages
- recovers lost job
- reinstatement without the award of back wages is allowed if the
employer acted in good faith in dismissing the employee, or if the
dismissal was too harsh and it was due to the fault of the
employee. (Meralco vs. NLRC, 1989 case)
Q: WHAT ARE THE 2 TYPES OF REINSTATEMENT?
A: The 2 types are:
(1) Payroll Reinstatement - not admitted to work, but is included in the
payroll and entitled to receive his salary as if he was in fact
working. (Maranao Hotel vs. NLRC, 1994 case)
(2) Actual Reinstatement
FJTR REVIEWER - LABOR
Note: If the SC reversed the order of reinstatement, the employee
does not have the obligation to reimburse the salary he received
during reinstatement. (Garcia vs. PAL, 2009 case)
Q: WHAT IS THE RULE IF THE REINSTATEMENT WAS ORDERED
BY THE LABOR ARBITER AND NLRC?
A: If the reinstatement was ordered by LA, it is immediately
executory even pending appeal and the posting of a bond by the
employer shall not stay the execution for reinstatement. (Roquero vs.
PAL, 2003 case) However, if it is ordered by the NLRC, it is not
because it awaits the issuance of a writ of execution after the lapse of
the 10-day period to file an appeal.
2.A. SEPARATION PAY IN LIEU OF REINSTATEMENT:
- oriented towards the immediate future, the transitional period the
dismissed employee must undergo before locating a replacement
job. (Santos vs. NLRC, 1987 case)
- if the reinstatement is no longer possible due, but not limited to: (a)
business recession; (b) attainment of retirement age; (c) strained
relations; (d) merger of company; or (e) abolition of position.
- computed from the time of dismissal until the finality of the decision
ordering separation pay in lieu of reinstatement.
Q: TO WHOM DOES THE PRINCIPLE OF “STRAINED
RELATIONS” APPLIES?
A: Only to those employees who occupies a position of trust and
confidence. (Globe-Mackay Cable vs. NLRC and Salazar, 1992 case)
3. DAMAGES:
(1) Moral - awarded to compensate one for diverse injuries such as
mental anguish, besmirched reputation, wounded feelings and
social humiliation, if the employer acted in bad faith or fraud.
(2) Exemplary - if the dismissal was shown to have been effected in a
wanton, oppressive or malevolent manner. (Cocoland Dev’t vs.
NLRC and J. Mago, 1996 case)
(3) Atty’s fees - not recoverable where there is no sufficient showing
of bad faith on the part of the employer.
(4) Nominal - (see discussion below)
Q: WHAT IS THE LIABILITY OF THE EMPLOYER IF THE
DISMISSAL IS WITHOUT VALID PROCEDURE?
A: The employee remains dismissed, but the employer must pay
nominal damages, subject to the following rules:
As ruled in JAKA Food vs. Pacot, 2005 case:
(1) If the dismissal is based on just cause but the employer failed to
comply with the notice requirement, the sanction to be imposed
upon the employer should be tempered because the dismissal
was due to the employee’s fault.
(2) If the dismissal is based on authorized cause but the employer
failed to comply with the notice requirement, the sanction is lighter
if the dismissal is due to losses, but if dismissal is not due to
losses, it is higher. (Industrial Lumber, 2006 case)
4 KINDS OF SEPARATION PAY:
(1) Statutory
- those required under Art. 298 and 299 (authorized causes)
- LC only provides the minimum amount of separation pay. (see
above discussion the instances when separation pay can be
higher)
(2) Financial Assistance
- awarded only if the dismissal is based on the ground of
analogous causes under Art. 297 or “just causes”. (Toyota Motor
vs. NLRC, 2007 case)
- Basis is social justice or the doctrine of “discerning compassion”
as held in PLDT vs. NLRC, 1988 case.
- This is awarded on case to case basis and depends on the
generosity of the employer. (Atty. Fulgueras)
(3) In lieu of Reinstatement
- if reinstatement is neither possible nor advisable such as: (a)
when the employee’s position no longer exists; (b) company has
closed down; or (3) Strained relations.
(4) Employment Benefit from Employer
- Also called as “Resignation Pay” or “Gratuity”
- Arises only if there is a stipulation in the: (a) employment
contract; (b) CBA; or (c) established by a company policy or
practice.
FJTR REVIEWER - LABOR
Q: WHO ARE PERSONS LIABLE FOR WRONGFUL DISMISSAL?
A: As a general rule, the corporate officer/corporation
By way of exception, the corporate officer in his personal capacity
when the doctrine of piercing the veil applies (defeat public
convenience, fraud cases, and alter-ego cases)
Art. 300 - Termination by employee —
(1) An employee may terminate without just cause the employee-
employer relationship by serving a written notice on the employer
at least 1 month in advance. The employer upon whom no such
notice was served may hold the employee liable for damages.
(2) An employee may put an end to the relationship without serving
any notice on the employer for any of the following just causes:
A. Serious insult by the employer or his representative on the
honor and person of the employee;
B. Inhuman and unbearable treatment accorded the employee
by the employer or his representative;
C. Commission of a crime or offense by the employer or his
representative against the person of the employee or any of
the immediate members of his family; and
D. Other causes analogous to any of the foregoing.
Notes:
(1) Employer may waive the 30-day notice requirement.
(2) The 30-day notice may be extended or shortened by the
employer.
(3) In involuntary resignation, notice is not required. [Art. 300(2)]
Q: IS RESIGNATION WITHDRAWABLE?
A: As a general rule, YES, even if the employee has called it
irrevocable.
By way of exception, if the employer already approved or accepted
the resignation, its withdrawal needs the employer’s consent.
Q: IS AN EMPLOYEE WHO VOLUNTARILY RESIGNED ENTITLED
TO SEPARATION PAY?
A: As a general rule, NO!
By way of exception: (1) if there is a stipulation in the employment
contract; (2) provided in the CBA; or (3) there is a company policy or
practice.
Q : W H AT I S C O N S T R U C T I V E D I S M I S S A L / F O R C E D
RESIGNATION?
A: It is a quitting because continued employment is rendered
impossible, unreasonable or unlikely, as, an offer involving a
demotion in rank and a diminution in pay. It is also known as
dismissal in disguise.
Q : W H AT A R E T H E S I T U AT I O N S I N D I C AT I V E O F
CONSTRUCTIVE DISMISSAL?
A: The following are situations indicative of constructive dismissal:
(1) Demotion in rank
(2) Diminution of pay
(3) Preventive Suspension beyond the 30-day period without pay;
(4) If the act of the employer is unbearable to the employee that it
could foreclose any choice by the employee except to forego his
continued employment. (Hyatt Taxi vs. Catinoy, 2001 case)
(5) Change of status from regular to casual. (Sy vs. NLRC, 1989
case)
Q : C I T E S O M E I N S TA N C E S W H E N T H E R E I S N O
CONSTRUCTIVE DISMISSAL.
A: There is no constructive dismissal when:
(1) the employee voluntarily resigned (Concrete Aggregates vs.
NLRC, 1989 case)
(2) there is valid transfer (Japan Airlines Local vs. Calica, 1995
Resolution)
(3) there is resignation to avoid dismissal.
Note: The remedies in illegal dismissal cases is the same with
constructive dismissal. (Atty. Fulgueras)
Art. 301 - When employment not deemed terminated — The
bona-fide suspension of the operation of a business or undertaking
for a period not exceeding 6 months, or the fulfillment by the
employee of a military or civic duty shall not terminate employment.
FJTR REVIEWER - LABOR
In all such cases, the employer shall reinstate the employee to his
former position without loss of seniority rights if he indicates his
desire to resume his work not later than 1 month from the resumption
of operations of his employer or from his relief from the military or
civic duty.
REQUISITES:
(1) floating status is based on bona-fide suspension of operation or
undertaking or fulfilment by the employee of a military or civic
duty;
(2) floating status is done in good faith; and
(3) not exceed 6 months without pay.
Note: When the floating status of an employee lasts for more than 6
months, there is constructive dismissal.
Art. 302 - Retirement — Any employee may be retired upon
reaching the age established in the CBA or other applicable
employment contract.
In case of retirement, the employee shall be entitled to receive such
retirement benefits as he may have earned under existing laws and
any CBA and other agreements: Provided, however, That an
employee’s retirement benefits under any CBA or other agreements
shall not be less than those provided herein.
In the absence of retirement plan or agreement providing for
retirement benefits of employees in the establishment, an employee
upon reaching the age of 60 years or more, but not beyond 65 years
which is hereby declared the compulsory retirement age, who has
served at least 5 years in the said establishment, may retire and shall
be entitled to retirement pay equivalent to at least 1/2 month salary
for every year of service, a fraction of at least 6 months being
considered as 1 whole year.
Unless the parties provide for broader inclusions, the term “1/2 month
salary” shall mean 15 days plus 1/12 of the 13th Month pay and the
cash equivalent of not more than 5 days of service incentive leaves.
An underground mining employee upon reaching the age of 50 years
or more, but not beyond 60 years which is hereby declared the
compulsory retirement age for underground mine workers, who has
served at least 5 years as underground mine worker, may retire and
shall be entitled to all the retirement benefits provided for in this
Article.
Retail, service and agricultural establishments or operations
employing not more than 10 employees or workers are exempted
from the coverage of this provision.
Violation of this provision is hereby declared unlawful and subject to
the penal provisions provided under Art. 288 of this Code.
COVERAGE:
All employees in the private sector, regardless of their position,
except:
(1) Government Employees or those covered by Civil Service Law;
(2) Domestic Helpers and persons in the personal service of another
(3) Employees of retail, service and agricultural establishment or
operations regularly employing not more than 10 employees. (DO
147-15)
RULE ON RETIREMENT:
(1) Apply those stipulated in the employment contract or CBA.
(2) In the absence of #1, apply the table below.
OPTIONAL COMPULSORY
Normal workers 60-64 years 65
underground mine 50-59 60
worker
rendered at least 5 year of service, entitled to 22.5 days pay
FJTR REVIEWER - LABOR
Q: MAY AN EMPLOYEE CLAIM RETIREMENT BENEFITS AND
SEPARATION PAY SIMULTANEOUSLY?
A: As a general rule, NO!
By way of exception, if allowed in CBA (UE vs. UE Faculty
Association, 1987 case)
Note: Company Policy or CBA may make Separation Pay and
Retirement Benefit mutually exclusive. (Aquino vs. NLRC and Otis,
1992 case)
PRESCRIPTION OF ACTIONS (IRR of Book 7):
(1) Money claims — within 3 years from the time the cause of action
accrues
(2) ULP — within 1 year from the time the acts complained of were
committed;
(3) Workmen’s Compensation Claim — within 1 year from the
occurrence of injury or death
(4) Union funds — after 3 years from the date of submission of
annual financial report to DOLE or from the date the same
should have been submitted as required by law, whichever
comes earlier.
HOPE YOU FIND THIS REVIEWER HELPFUL!
TO GOD BE THE GLORY!