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University of Santo Tomas Labor Law Review

Faculty of Civil Law Dean Salvador A. Poquiz


A.Y. 2017 – 2018, 1st Semester( (4A)
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LABOR STANDARDS Purpose of Labor Laws

GENERAL PRINCIPLES AND CONCEPTS IN - Intended to protect the worker from the mighty and
correct the injustices that are inherent in EER
LABOR LAW - Provides set of restrictions upon the worker in his
relationship with the employer and vice-versa in
Labor
order to maintain industrial peace and harmony;
- Limited Concept: Physical or mental exertion thereby promoting industrial democracy.
necessary to produce goods - Promote the welfare of the people based on the Latin
- Broad Concept: Includes the labor force who are maxim “salus populi est suprema lex,” the welfare of
employed or those who are able and willing to work the people is the first law.
but are temporarily or involuntarily unemployed.
Sources of Labor Laws
Labor Law
a. Primary Sources
- All the rules governing the conditions under which b. Auxiliary Sources
the persons may work under the control of other
Legal Bases of Labor and Social Legislation
persons called employers.
A. Police Power
Labor Standards Labor Relations Social Legislation
Terms and matters arising out governs EER - make such wholesome and reasonable laws, not repugnant to
conditions of of employer- while the the Constitution, as it shall judge to be for the good and
employment as employee employee is not welfare of the state and its people.
affecting wages or relationship (EER) “at work” due to
monetary benefits, involving the hazards beyond his - includes everything essential to the public safety, health,
hours of work, concerted action control arising morals, to justify the destruction or abatement by summary
cost of living on the part of the from employment proceedings of whatever may be regarded as public nuisance.
allowances, and workers which is which immobilize
occupational usually related him from working. a. interest of the public generally
health, safety and with right to self- b. means are reasonably necessary for the
welfare of organization, accomplishment of the purpose
workers. collective
bargaining, and Salus populi est suprema lex (the welfare of the people is the
negotiation supreme law of the land)
process.
Sic utere tuo ut alienum non laedas (so use your own sa not to
injure another’s property)
Taxonomy of Labor Laws:
B. Social Justice Clause
1. Protective Legislations
2. Welfare or Social Legislations Social justice is "neither communism, nor
3. Diplomatic Legislations despotism, nor atomism, nor anarchy," but the
4. Administrative Legislations humanization of laws and the equalization of
5. Labor Relations Legislations social and economic forces by the State so that
6. Labor Standards Legislations justice in its rational and objectively secular
conception may at least be approximated. Social
Labor Law vs. Social Legislation justice means the promotion of the welfare of all
the people, the adoption by the Government of
Labor Law Social Legislation measures calculated to insure economic stability
affects actual effects of employment of all the competent elements of society, through
employment the maintenance of a proper economic and
meet daily needs of long-range benefits social equilibrium in the interrelations of the
workers members of the community, constitutionally,
employment for profit or employment for gain or through the adoption of measures legally
gain non-profit justifiable, or extra-constitutionally, through the
work of the employee life of the employee exercise of powers underlying the existence of
paid by employer paid by government all governments on the time-honored principle
agencies of salus populi est suprema lex. Social justice,
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
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therefore, must be founded on the recognition of decision-making processes affecting their rights
the necessity of interdependence among divers and benefits as may be provided by law.
and diverse units of a society and of the
protection that should be equally and evenly The State shall promote the principle of shared
extended to all groups as a combined force in responsibility between workers and employers
our social and economic life, consistent with the and the preferential use of voluntary modes in
fundamental and paramount objective of the settling disputes, including conciliation, and
state of promoting the health, comfort, and quiet shall enforce their mutual compliance therewith
of all persons, and of bringing about "the to foster industrial peace.
greatest good to the greatest number."1

Guarantees equality of opportunity, equality of political rights, The State shall regulate the relations between
equality before the law, equality between values given and workers and employers, recognizing the right of
labor to its just share in the fruits of production
received, equitable sharing of the social and material goods on
and the right of enterprises to reasonable
the basis of efforts exerted in their production.
returns on investments, and to expansion and
Well-being and economic security of all the people is the end growth. 3
and justice means.
All doubts in the implementation and interpretation of labor
Object of social justice: Common Man, his social and law, rules and regulations, are liberally construed in favor of
economic uplift. labor.

Prof. Powell: He who is less favored in life is more favored in - Due to labor’s economic dependence upon the
law capital, it is considered as the weaker factor of
production and therefore needs protection from the
Right of property must never be exercised for the detriment of state
the common good. - Labor is relatively more perishable than other
economic goods
Distributive Justice
The right to labor is a property right
The State shall promote social justice to ensure
the dignity, welfare, and security of all the - his means of livelihood
people. Towards this end, the State shall - he cannot be deprived of his labor or work without
regulate the acquisition, ownership, use, due process of law.
enjoyment, and disposition of private property, - When a person has no property, his job may possibly
and equitably diffuse property ownership and be his only possession or means of livelihood for him
profits.2 and his family

The right to property is held under the implied Capital and Labor are indispensable partners.
obligation that the owner’s utendi shall not be
prejudicial to the community. D. Doctrine of Incorporation

C. Protection to Labor Clause The Philippines … adopts the generally


accepted principles of international law as part
of the law of the land…4
The State shall afford full protection to labor,
local and overseas, organized and unorganized,
E. Social Service Clause
and promote full employment and equality of
employment opportunities for all. - May bring suit to protect the property rights of the
people, enforce charities of public nature, defend
It shall guarantee the rights of all workers to interests of helpless infants and lunatics, or provide
self-organization, collective bargaining and for confinement of minors in reformatories where
negotiations, and peaceful concerted activities, they may receive training and education.
including the right to strike in accordance with - Concept of laissez faire (non-governmental
law. They shall be entitled to security of tenure, interference in business or economic affairs) is not
humane conditions of work, and a living wage. fully embraced.
They shall also participate in policy and

1 3
Calalang vs. Williams, 70 Phil 726 (1940). Section 3, Article XIII of the 1987 Constitution
2 4
Section 6, Art. II of the 1973 Constitution. Section 2, Art. II of the 1987 Constitution
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
4a |3

F. Full Employment Clause Right to Equal Protection of the Law

Full Employment Unemployment Equal protection of the law


- those who want to - Involuntary idleness
work at the on the part of an - No person or class of person shall be denied of the
prevailing rates of employee who is same protection of the law which is enjoyed by other
pay are able to find able and willing to classes of persons under like circumstances.
work without undue work but could - Extends only to civil rights
difficulty hardly find one - Safeguard against acts of the State and not against the
- There are more job conduct of private individuals or persons
openings than there - Restraint on all 3 departments of government and on
are job applicants the subordinate instrumentalities and subdivisions
thereof.

Constitutional Rights of Workers


G. Freedom from Poverty Clause
A. Right to Self-Organization
Poverty
The right of the people, including those
- low status, with little to lose, little to respect, little to employed in the public and private sectors, to
be proud of, little to sustain efforts to improve. form unions, associations, or societies for
- feeling of missing much in life, because of the lack of purposes not contrary to law shall not be
satisfaction in the vicinity, and lack of satisfaction of abridged.6
the fundamental wishes
- Freedom from poverty can be attained only upon full - P.D. 823: encourages trade unionism and free
satisfaction of the basic necessities of life brought collective bargaining within the framework of
about by full employment a rising standard of living, arbitration, voluntary and mandatory.
and an improved quality of life for all. - Chief Justice Hughes: They were organized out of the
necessities of the situation.
Standard of Living vs. Cost of Living
Government employees have the rights to organize and
Standard of Living Cost of Living negotiate under the Constitution, but they cannot call or join a
“what” facilities are needed “how much” facilities that an strike arising from the dissatisfaction on terms and conditions
by an employee necessary to employee would could cost in of employment.
assure himself and his family order to maintain his standard
- the government as the employer assumes that since it
a life worthy of human of living worthy of human
represents the sovereign power, it must reserve the
dignity dignity.
right to determine the terms and conditions of
Plane of Living
employment under which its employees work.
- level upon which an employee actually lives. - strike of government employees is an insurrection of
against public authority.
H. Freedom from Association Clause
Government employees should not be treated similarly with
I. Due Process Clause employees in the private sector.

No person shall be deprived of life, liberty, or Government Employees Employees in Private Sector
property without due process of law, nor shall - government is - private enterprise is
any person be denied the equal protection of the established to promote created for profit or gain
laws.5 the common good
- terms and conditions of - employment is
Due process of law employment are fixed governed by labor law
by law and determined through
a. a law which hears before it condemns; the machinery of
b. Which proceeds upon inquiry; and collective bargaining
c. renders judgment only after trial - public funds are - funds are contributed by
appropriated pursuant to private individuals or
law enacted by institutions

5 6
Section 1, Art. III of the 1987 Constitution. Section 8, Art. III of the 1987 Constitution.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
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Congress F. Right to Peaceful Concerted Activities


- doctrine of State - possesses no sovereign
Sovereignty which at all. - Designed by workers to express their collective
underlies the existence demands through the machinery of boycott, pickets,
of all governments and strikes which are forms of free expression
based on the principle of guaranteed under the Constitution. To be legal, the
salus populi est suprema same must be conducted in a peaceful manner.
lex
G. Right to Strike

B. Right to Collective Bargaining Strike

- It is through collective bargaining that employees are - temporary stoppage of work by the concerted action
enabled to obtain a relative equality of bargaining of the employees as a result of any industrial or labor
power of the employer, for it compels him to deal dispute designed to compel the employer to accede to
with them as a group rather than as isolated certain demands of the employees
individuals
H. Right to a Living Wage
- It is through collective bargaining that employees
obtain a measure of self-government in their working Minimum Wage vs. Living Wage
world.
Minimum Wage Living Wage
C. Right to Security of Tenure
- Set a barrier below Not a mere subsistence wage
which wages may not but one sufficient to enable
- In cases of regular employment, the employer shall
fall the worker to live in
terminate the services of an employee for just and
- Insure a rock-bottom reasonable comfort, a wage
authorized causes.
protection to a wage that can provide him and his
Tenure vs. Security of Tenure earner family a decent standard
- Minimum Wage in living wage
Tenure Security of Tenure NCR: P475.00
Permanent or regular status Right of worker to be secure (agricultural) or P512
granted a worker usually after or to continue in employment (non-agricultural) -
a probationary or trial period. until the same is terminated effective October 5,
by authorized or just causes 2017
provided by law.

I. Right to Participate in Policy and Decision-making


D. Right to just and humane conditions of work Processes

- Refers to fair wages and equal remuneration for work - Expressed through labor machineries such as
of equal value, safe and healthy working conditions, collective bargaining, collective negotiations, labor
equal opportunity to promotion and rest, leisure and management councils, work councils, and through
reasonable limitation of working hours. tripartite conferences.

E. Right to Collective Negotiations J. Right to Just Share in the Fruits of Production

Collective Bargaining Collective Negotiations Fruits of Production


applies to union in the private applicable in unionism in the
- Covers not only salaries, wages, benefits, but also
sector government of public sector
includes profits

NOTE: While it is true that the State guarantees “the right of


all workers to self-organization, collective bargaining and
negotiations,” employees of the government sector cannot
collectively bargain on terms and conditions of employment
simply because the same are fixed by law and determined by
civil service law, rules and regulations.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
4a |5

Limitation on the enactment of labor legislation 4. in the exercise of police regulation of the state
or city, citizens may be required to help in the
1. Observance on non-impairment of contracts repair of public highways and streets; and
5. exceptional service
No law impairing the obligations of contracts
shall be passed7. 4. Observance of the equal protection of the law

Impairment Equal protection of the law

- when one party is placed in a position when one party - no person or class of persons shall be denied the same
is placed in a position disadvantageous to his protection of the law which is enjoyed by other
interests. classes of persons under like circumstances, in their
lives, in their liberty, and in their pursuit of
The obligation of contracts is subordinated to the valid happiness.
exercise of police power. - All persons shall be treated alike under like
circumstances and conditions both in the privileges
A law impairing the obligations of contract is not a violation conferred and liabilities imposed.
of the constitutional prohibition because what is sought to be
protected is the welfare of the working class. Principles in Labor under the Civil Code:
Labor contracts are not merely contractual because they are 1. Principle of Non-Oppression
impressed with public interest
Neither capital not labor shall act oppressively
- all labor contracts must yield to common good. against the other, it impair the interest or
convenience of the public.9
2. Observance of non-delegation of legislative power
2. Principle of Liberal Construction in favor of Labor
The power conferred upon Congress to make laws cannot be
delegated by that department to any other body or authority. In case of doubt, all labor legislations and all
labor contracts shall be construed in favor of
The delegated power constitutes not only a right but also a the safety and decent living of the laborer10.
duty to be performed by the delegate through the
instrumentality of his own judgment, acting immediately upon Rule of construction in favor of law applies only in case of
the matter of legislation and not another doubt. If the contractual provision is crystal-clear, then it must
be applied in accordance with its expressed terms. Verba legis
3. Observance of the constitutional provision against non est recedendum, from the words of the statute there can be
involuntary servitude no departure.
No involuntary servitude in any form shall exist 3. Labor’s wage is not subject to Execution
except as a punishment for a crime whereof the
party shall have been duly convicted.8 The laborer’s wages shall not be subject to
execution or attachment, except for debts
Purpose of prohibition: abolish slavery of whatever incurred for food, shelter, clothing, and medical
name, form, and all its badges; to render impossible attendance.11
any state of bondage; to make labor free by prohibiting
the control by which the personal services of one man 4. Employer cannot retain laborer’s tools
is disposed of or coerced for another’s benefit which is
the essence of involuntary servitude. The employer shall neither seize nor retain any
tool or other articles belonging to the laborer.12
XPN:
5. Right to Dismiss, subject to State Regulation
1. punishment of a crime;
2. citizens are required to render personal Dismissal of laborer shall be subject to the
military or civil services; supervision of the government, under special
3. ordinary case of restraint of personal liberty; laws.13

9
Article 1702, Civil Code.
10
Article 1702, Civil Code.
7 11
Section 10, Art. III of the 1987 Constitution. Article 1708, Civil Code.
8 12
Section 18, par. 2, Art. III of the 1987 Constitution. Article 1709, Civil Code.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
4a |6

The right to hire or dismiss is a management prerogative. government-owned and -controlled corporations
(GOCCs) with original charters.
- Such management right must be exercised in good
faith. 5. Creation of Overseas Employment Development Board and
- Dismissal of the employee must be done without National Seaman Board
abuse of discretion and must be done for just and
authorized causes as provided for under the laws. - determine and implement policies that protect
- In exercising such right, it can adopt valid and Overseas Filipino Workers (OFWs) from economic
equitable grounds as basis for effecting retrenchment exploitation and oppression.
or separation from the service of an employee such as
the adoption of LIFO Rule (Last in, first out). 6. Incorporation of Agrarian Reform

THE LABOR CODE OF THE PHILIPPINES - emphasizes the state policy on Social Justice
P.D. 442, as amended 7. Updating of all Labor and Social Legislation
PRELIMINARY TITLE
- In order to harmonize them with national
Chapter I development priorities based on Social Justice
GENERAL PROVISIONS
The Labor Code has 7 Books:
ARTICLE 1. Name of Decree.
I. Pre-employment
This Decree shall be known as the "Labor Code of the o Recruitment and placement of workers; and
Philippines". o Employment of non-resident aliens.
II. Human Resources Development
Labor Code: o National manpower development program;
and
- It is the charter of human rights and a bill of o Training and employment of special workers
obligations for every working man III. Conditions of Employment
- Purpose: to afford protection to labor, promote o Working conditions, rest periods, etc.
employment and human resources development and IV. Health, Safety, and Social Welfare Benefits
insure industrial peace based on social justice. o Covering medical, dental, and occupational
safety.
Basic Reforms and Features of the Labor Code
V. Labor Relations
1. Emancipation of Labor Relations o Labor organizations;
o Unfair labor practices;
2. Transformation of Workmen’s Compensation o Collective bargaining;
o Strikes;
- from an employer’s liability to a social security o Lockouts; etc.
scheme by integrating the same with the Social VI. Post-Employment
Security System (SSS) and the Government o Termination of employment; and
Insurance System (GSIS). o Retirement from the service
- Speedy delivery of benefits to an injured or disabled VII. Penal Provisions, Prescription, Transitory, and Final
worker is effected. Provisions

3. Abolition of the Permit System These Books can be classified into three main parts:

- -abolished the permit system in labor administration. I. Pre-employment;


- Reporting system is introduced to eradicate the II. State of Employment; and
breeding place of graft and corruption. III. Post-Employment

4. Placing of Government Corporations with Original Charters ARTICLE 2. Date of effectivity.


under the Civil Service
This Code shall take effect six (6) months after its promulgation.
- Scope of Civil Service was expanded to embrace
- Promulgated on: May 1, 1974
every branch, agency, subdivision, and
- Took effect on: November 1. 1974
instrumentality of the Government, including

13
Article 1710, Civil Code.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
4a |7

ARTICLE 3. Declaration of basic policy. Purpose of Liberal Construction:


The State shall afford protection to labor, promote full o Those who have less in life, should have
employment, ensure equal work opportunities regardless of sex, more in law.
race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self- ARTICLE 5. Rules and regulations.
organization, collective bargaining, security of tenure, and just
and humane conditions of work. The Department of Labor and other government agencies
charged with the administration and enforcement of this Code or
Purpose of affording protection to labor any of its parts shall promulgate the necessary implementing
rules and regulations. Such rules and regulations shall become
- Place labor on an equal plane with management with effective fifteen (15) days after announcement of their adoption in
all its powers and influence in negotiating for the newspapers of general circulation.
advancement of his interest and the defense of his
rights. Extent and Limits of Rule-making Power:
- Employment must be decent, just, and humane.
- Regulations adopted under legislative authority by a
Extent and Limits to Protection particular department must be in harmony with the
provisions of the law and for the sole purpose of
Principle of protection extends upon an employee who is carrying into effect its general provisions.
abused either by the employer or by the union leadership or - By its provisions, the law cannot be extended.
their respective representatives - So long as they relate solely on to carrying into effect
the provisions of the law, they are valid.
Right is unavailing in the following instances: - Rules and regulations which are merely executive or
administrative views as to the meaning and
1. Protection to labor is not a license to condone construction of the statute are not controlling on the
wrongdoings. courts, and cannot alter or extend the plain meaning
2. The care and solicitude in the protection and of a statute, although they are entitled to great weight
vindication of the rights of workers cannot justify where the statue is ambiguous.
disregard of relevant facts in the construction of the
text of applicable rules in order to arrive at a ARTICLE 6. Applicability.
disposition in favor of an employee.
3. To disregard the employer’s own rights and interests All rights and benefits granted to workers under this Code shall,
solely on the basis of concern and solicitude for labor except as may otherwise be provided herein, apply alike to all
is unjust and unacceptable. workers, whether agricultural or non-agricultural. (As amended
by Presidential Decree No. 570-A, November 1, 1974)
4. Where both parties have violated the law, neither
party is entitled to protection. Purposes:
5. The constitutional policy to provide full protection to
labor is not meant to be a sword to oppress 1. To encourage workers to seek jobs in agricultural
employers. undertakings; and
6. The liberal construction in favor of labor must not 2. Balance of labor supply would be maintained in the
sacrifice the fundamental principles of due process industrial and agricultural sectors, reducing labor
for the protection of the rich and the poor. oversupply in the urban areas.
7. Protection to labor does not mean that every labor
dispute will be decided in favor of labor. Employer-Employee Relationship (EER)
8. In affording full protection to labor, the State must
ensure equal work opportunities to all employees - Existence of the EER is the jurisdictional foundation
regardless of sex, race, or creed. for a compensation claim.

ARTICLE 4. Construction in favor of labor. Commencement of EER


All doubts in the implementation and interpretation of the - Created by an employment contract, whether express
provisions of this Code, including its implementing rules and or implied.
regulations, shall be resolved in favor of labor.
- Proof of hire by competent person, either by the
a. If provision is crystal-clear: apply in accordance with employer or through an authorized representative or
express terms agent.
b. If provision is doubtful: apply liberal construction in
favor of labor
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
4a |8

Hiring of Competent Person - Employment relationship is not terminated in an


illegal dismissal case.
a. agent with actual authority;
b. agent with apparent authority; or Employee illegally dismissed is entitled to the following:
c. done without authority, but subsequently
ratified either expressly or impliedly. 1. reinstatement without loss of seniority rights;
2. full backwages inclusive of allowances,
- Contract of employment marks the beginning of damages, and other benefits
employment, not the commencement of work.
Government employees and employees of GOCCs, with
Four-fold test (Economic or Economic Reality Test) original charters, shall be governed by the Civil Service Law.

a. manner of selection and engagement of putative Corporations organized Corporations not directly
employee pursuant to a Legislative Chartered or created by a
b. mode of payment of wages; Charter or Special Law Special Law but were
c. presence or absence of the power of dismissal; and acquired or taken over by
d. presence or absence of a power to control the putative Corporations created under
employee’s conduct. Special Laws
o Refers merely to the existence of power and GOCC’s with original subsidiaries or corporate
not the actual exercise thereof charters offsprings
governed by Civil Service governed by the Labor Code
To bolster the payment of wages and control test, the Law
existing economic conditions prevailing between parties
are also applied in determining EER.
Manner of Creation Test (Original Charter Test)
Factors that determine Control Test:
GOCC
Rules that merely serve as Rules that fix Methodology
Guidelines - Capital stock is owned by the government even if the
no EER establishes EER corporation is organized in accordance with the
promotes the result binds or restricts the party corporation law.
hired to the use of such - Test: Manner of its Creation
means or methods o Government corporations created by special
charters are subject to its provisions while
those incorporated under the general
1. Skills rendered, source of instrumentalities and tools, Corporation law are not within its coverage
location of the work, duration of the relationship,
hired third party’s discretion when and how long to Working Scholars
work, manner of payment, whether work is part of
regular business of hiring party, and contract GR: Working scholars are not employees where students work
provision on benefits.14 for their employees in exchange for the privilege to
2. Worker performs subject to employer’s study free of charge, provided the students are given
specifications.15 real opportunity necessary to finish their chosen
courses under such arrangement.16
Termination of EER
XPN: For purposes of imposing liability for tortuous acts, the
GR: An employer may not terminate the services of an working scholar is considered an employee and the
employee. school as employer.17

XPN: 1. Just causes; or Resident Physicians as Employees


2. Authorized causes.
GR: No EER between resident physicians and hospitals.
An employee may terminate without just cause by serving a
written notice on the employer atleast 1 month in advance. XPN: 1. There is training agreement between them; and
2. Training program is duly accredited or approved
Effects of Illegal Dismissal by the appropriate government agency.

14 16
Sonza vs. ABS-CBN, G.R. No. 138051 (2004). Section 14, Rule X, Book III, IRR of P.D. 442.
15 17
Beng vs. ILMUP, G.R. No. 32245 (1979). Filamer Christian Institute vs. IAC, 212 SCRA 637.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
A.Y. 2017 – 2018, 1st Semester( (4A)
4a |9

Lawyers as Employees Chapter II


EMANCIPATION OF TENANTS
- In-house lawyers are employees of the company.18 ARTICLE 7. Statement of objectives.

Professors as Employees Inasmuch as the old concept of land ownership by a few has
spawned valid and legitimate grievances that gave rise to violent
The university exercises effective control and supervision over conflict and social tension and the redress of such legitimate
grievances being one of the fundamental objectives of the New
the work of professors which includes:
Society, it has become imperative to start reformation with the
emancipation of the tiller of the soil from his bondage.
a. What subjects to be taught, when and where to be
taught; Emancipation of tenants
b. Receipt of regular compensation; and
c. If service is unsatisfactory, they can be dismissed.19 - By virtue of PD No. 2, the entire country was
proclaimed as a land reform area.
Jeepney Drivers as Employees - Tenants emancipated by transferring to them the
ownership of the land they till and providing
The jeepney owner still exercises control and supervision over
instruments and mechanism.
the driver by seeing to it that he negotiated the route
prescribed by the government agency. 20 Agrarian Reform
Caddies of Golf Clubs not Employees - Redistribution of lands, regardless of crops or fruits
produced, to farmers and regular farm workers who
Although caddies submit to some supervision of their conduct
are landless.
in the Golf Club while enjoying the pursuit of their occupation
within the premises; however they do not observe working Purpose of the law
hours and are free to leave anytime they please or stay away
for as long as they like.21 - Tenants of Luzon has suffered a life of bondage,
without hope of salvation or improvement.
Crew Members not Employees of Boat Owner
ARTICLE 8. Transfer of lands to tenant-workers.
- Relationship between crew members and boat owner
is that of a joint venture; no EER. Being a vital part of the labor force, tenant-farmers on private
a. Crew members do not receive compensation; agricultural lands primarily devoted to rice and corn under a
b. Divide/share in the first catch; system of share crop or lease tenancy whether classified as landed
c. Venture to the sea regardless of the direction of estate or not shall be deemed owner of a portion constituting a
the boat owner; and family-size farm of five (5) hectares, if not irrigated and three (3)
d. Crew members join the expedition upon hectares, if irrigated.
invitation of the ship master even without the In all cases, the land owner may retain an area of not more than
knowledge of the boat owner. seven (7) hectares if such landowner is cultivating such area or
will now cultivate it.
Medical Consultant not Employees
Retention limit
GR: No EER between a hospital and medical consultants
- Landowner may retain not more than 5 hectares of
- Not under the effective control and supervision of the his agricultural land
hospital - 3 hectares may be awarded to each child of the
- Receive honorarium or fees on matters that require landowner, subject to the following qualifications:
consultation/advice by consultants a. Atleast 15 years of age; and
b. Actually tilling the land or directly
XPN: for purposes of allocating responsibility in medical managing the farm.
negligence cases (tortuous cases), EER exists. - A landowner who had retained 7 hectares under PD
No. 27 will not be affected by the retention limit.

Lands obtained through homestead patent

- PD No. 27 inapplicable to lands covered by


18
homestead patents
Hydro-Resources vs. Paglilauan, 172 SCRA 399.
19
FEATU University vs. Bautista, 18 SCRA 1191.
- Original homestead grantees or their direct
20
CLFW vs. Abbas, 18 SCRA 71; Jardin vs. NLRC, 326 SCRA 299. compulsory heirs who still own the original
21
Manila Golf and Country Club, Inc. vs. IAC, 237 SCRA 207.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 10

homestead at the time of the approval of the law shall shares, physical assets, or other qualified
retain the same areas as long as they continue to investments;
cultivate said homestead. c. Tax credit which can be used against any tax
- Lands obtained through homestead patent are not liability; and
covered by agrarian reform law. d. LBP bonds.

Livestock and poultry lands not covered. ARTICLE 10. Conditions of ownership.

ARTICLE 9. Determination of land value. No title to the land acquired by the tenant-farmer under
Presidential Decree No. 27 shall be actually issued to him unless
For the purpose of determining the cost of the land to be and until he has become a full-fledged member of a duly
transferred to the tenant-farmer, the value of the land shall be recognized farmers’ cooperative.
equivalent to two and one-half (2-1/2) times the average harvest
of three (3) normal crop years immediately preceding the Title to the land acquired pursuant to Presidential Decree No. 27
promulgation of Presidential Decree No. 27 on October 21, 1972. or the Land Reform Program of the Government shall not be
transferable except by hereditary succession or to the
The total cost of the land, including interest at the rate of six Government in accordance with the provisions of Presidential
percent (6%) per annum, shall be paid by the tenant in fifteen Decree No. 27, the Code of Agrarian Reforms and other existing
(15) years of fifteen (15) equal annual amortizations. laws and regulations.

In case of default, the amortization due shall be paid by the ARTICLE 11. Implementing agency.
farmers’ cooperative in which the defaulting tenant-farmer is a
member, with the cooperative having a right of recourse against The Department of Agrarian Reform shall promulgate the
him. necessary rules and regulations to implement the provisions of
this Chapter.
The government shall guarantee such amortizations with shares
of stock in government-owned and government-controlled Implementing agency; Jurisdiction
corporations.
- Department of Agrarian Reform (DAR) has the
Determination of just compensation power to issue rules and regulations to carry-out the
objects and purposes of the Comprehensive Agrarian
- Titles of all expropriated properties shall be Reform Law (CARL) of 1998 (RA No. 6657).
transferred to the State only upon full payment of Exclusive Original Jurisdiction:
compensation to their respective owners. a. Falling under exclusive jurisdiction of DAR
and Department of Environment and Natural
Factors to be considered in determining just Resources (DENR);
compensation: b. Petitions for determination of just
compensation; and – RTC acting as special
a. Cost of acquisition of land; agrarian court
b. Nature, actual use, and income; c. Prosecution of all criminal offenses under
c. Sworn valuation by the owner; RA No. 6657. – RTC acting as special
d. Tax declaration; agrarian court.
e. Assessment made by government assessors; Quasi-judicial powers
f. Social and economic benefits contributed by the a. Summon witnesses, administer oaths, take
farmers, farm workers, and by the government; testimonies, require submission of papers;
and b. Compel production of books, documents and
g. Non-payment of taxes and loans. answers to interrogatories;
c. Issue subpoena ad testificandum and
subpoena duces tecum;
Valuation and mode of compensation d. Enforce its writs through sheriffs or duly
deputized officers; and
- Land Bank of the Philippines (LBP) is mandated by e. Punish direct and indirect contempt.
law to compensate the landowner
Requisites before DARAB acquires jurisdiction in a tenancy
Mode of payment agreement dispute

a. Cash payment; a. Parties are the landowner and the tenant or


b. Shares of stocks in government-owned or agricultural lessee;
controlled corporations (GOCCs), LBP preferred b. Subject matter is agricultural land;
c. Consent between the parties to the relationship;
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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d. Purpose of relationship is to bring about agricultural "License" means a document issued by the Department of Labor
production; authorizing a person or entity to operate a private employment
e. Personal cultivation on the part of the tenant or agency.
agricultural lessee; and
"Private recruitment entity" means any person or association
f. Harvest is shares between the landowner and the engaged in the recruitment and placement of workers, locally or
tenant or agricultural lessee. overseas, without charging, directly or indirectly, any fee from
the workers or employers.
DAR is not governed by technical rules of procedure and
evidence. "Authority" means a document issued by the Department of
Labor authorizing a person or association to engage in
BOOK ONE recruitment and placement activities as a private recruitment
entity.
PRE-EMPLOYMENT
"Seaman" means any person employed in a vessel engaged in
ARTICLE 12. Statement of objectives. maritime navigation.

It is the policy of the State: "Overseas employment" means employment of a worker outside
the Philippines.
a. To promote and maintain a state of full employment
through improved manpower training, allocation and "Emigrant" means any person, worker or otherwise, who
utilization; emigrates to a foreign country by virtue of an immigrant visa or
b. To protect every citizen desiring to work locally or resident permit or its equivalent in the country of destination.
overseas by securing for him the best possible terms and
conditions of employment; Recruitment and Placement
c. To facilitate a free choice of available employment by
persons seeking work in conformity with the national - The presumption is that the individual or entity is
interest; engaged in recruitment and placement whenever he
d. To facilitate and regulate the movement of workers in
or it is dealing with two or more persons to whom
conformity with the national interest;
e. To regulate the employment of aliens, including the consideration of a fee, an offer, or promise of
establishment of a registration and/or work permit employment is made in the course of canvassing,
system; enlisting, contracting, transporting, utilizing, hiring,,
f. To strengthen the network of public employment offices or procuring of workers.
and rationalize the participation of the private sector in - The number of persons dealt with is not an essential
the recruitment and placement of workers, locally and agreement of recruitment and placement of workers.
overseas, to serve national development objectives; - Where a fee is collected in consideration of a promise
g. To insure careful selection of Filipino workers for or offer of employment to 2 or more prospective
overseas employment in order to protect the good name
of the Philippines abroad.
workers, it shall be deemed that the individual or
entity is engaged in the act of recruitment and
Title I placement.
RECRUITMENT AND PLACEMENT OF WORKERS
ARTICLE 14. Employment promotion.
Chapter I
GENERAL PROVISIONS The Secretary of Labor shall have the power and authority:

ARTICLE 13. Definitions. a. To organize and establish new employment offices in


addition to the existing employment offices under the
"Worker" means any member of the labor force, whether Department of Labor as the need arises;
employed or unemployed. b. To organize and establish a nationwide job clearance
and information system to inform applicants registering
"Recruitment and placement" refers to any act of canvassing, with a particular employment office of job opportunities
enlisting, contracting, transporting, utilizing, hiring or procuring in other parts of the country as well as job opportunities
workers, and includes referrals, contract services, promising or abroad;
advertising for employment, locally or abroad, whether for profit c. To develop and organize a program that will facilitate
or not: Provided, That any person or entity which, in any occupational, industrial and geographical mobility of
manner, offers or promises for a fee, employment to two or more labor and provide assistance in the relocation of
persons shall be deemed engaged in recruitment and placement. workers from one area to another; and
d. To require any person, establishment, organization or
"Private fee-charging employment agency" means any person or institution to submit such employment information as
entity engaged in recruitment and placement of workers for a fee may be prescribed by the Secretary of Labor.
which is charged, directly or indirectly, from the workers or
employers or both.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 12

Submission of Reports The Bureau of Employment Services (BES) abolished and


replaced by the Philippine Overseas Employment
At then of each month, an employer with atleast 6 employees Administration (POEA)
is required to submit to the nearest public employment office
of the following: - The Bureau of Employment Services was abolished
by virtue of E.O. 797 creating the POEA.
a. list of existing job vacancies or opening;
b. list of new employees, if any; Functions of BES assumed by:
c. termination, lay-off, or retirement;
d. total number of employed workers for the period; and - Domestic employment functions – assumed by the
e. request for assistance if needed to fill vacancies or Bureau of Local Employment (BLE)
openings. - Overseas Functions – assumed by POEA

ARTICLE 15. Bureau of Employment Services. ARTICLE 16. Private recruitment.

The Bureau of Employment Services shall be primarily Except as provided in Chapter II of this Title, no person or entity
responsible for developing and monitoring a comprehensive other than the public employment offices, shall engage in the
employment program. It shall have the power and duty: recruitment and placement of workers.

1. To formulate and develop plans and programs to Purpose of the law


implement the employment promotion objectives of this
Title; The commission of the malpractices by fly-by-night or private
2. To establish and maintain a registration and/or recruiters against unsuspecting workers who intend to work
licensing system to regulate private sector participation locally or overseas.
in the recruitment and placement of workers, locally
and overseas, and to secure the best possible terms and Who may engage in Recruitment and Placement
conditions of employment for Filipino contract workers
and compliance therewith under such rules and GR: Only public employment offices can engage in
regulations as may be issued by the Minister of Labor;
3. To formulate and develop employment programs
recruitment and placement of workers for local and
designed to benefit disadvantaged groups and overseas employment.
communities;
4. To establish and maintain a registration and/or work XPN: Private sector is given the privilege to engage in
permit system to regulate the employment of aliens; recruitment and placement, but limited to
5. To develop a labor market information system in aid of employment agencies, recruitment entities, shipping
proper manpower and development planning; or manning agents, and such other persons as may be
6. To develop a responsive vocational guidance and testing authorized by the Secretary of Labor and
system in aid of proper human resources allocation; and Employment (SOLE).
7. To maintain a central registry of skills, except seamen.
ARTICLE 17. Overseas Employment Development Board.
The regional offices of the Ministry of Labor shall have the
original and exclusive jurisdiction over all matters or cases An Overseas Employment Development Board is hereby created
involving employer-employee relations including money claims, to undertake, in cooperation with relevant entities and agencies, a
arising out of or by virtue of any law or contracts involving systematic program for overseas employment of Filipino workers
Filipino workers for overseas employment except seamen: in excess of domestic needs and to protect their rights to fair and
Provided, That the Bureau of Employment Services may, in the equitable employment practices. It shall have the power and
case of the National Capital Region, exercise such power, duty:
whenever the Minister of Labor deems it appropriate. The
decisions of the regional offices of the Bureau of Employment 1. To promote the overseas employment of Filipino
Services, if so authorized by the Minister of Labor as provided in workers through a comprehensive market promotion
this Article, shall be appealable to the National Labor Relations and development program;
Commission upon the same grounds provided in Article 223 2. To secure the best possible terms and conditions of
hereof. The decisions of the National Labor Relations employment of Filipino contract workers on a
Commission shall be final and inappealable. (Superseded by government-to-government basis and to ensure
Exec. Order 797, May 1, 1982). compliance therewith;
3. To recruit and place workers for overseas employment
The Minister of Labor shall have the power to impose and collect on a government-to-government arrangement and in
fees based on rates recommended by the Bureau of Employment such other sectors as policy may dictate; and
Services. Such fees shall be deposited in the National Treasury as 4. To act as secretariat for the Board of Trustees of the
a special account of the General Fund, for the promotion of the Welfare and Training Fund for Overseas Workers.
objectives of the Bureau of Employment Services, subject to the
provisions of Section 40 of Presidential Decree No. 1177.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 13

worker’s next-of-kin and the nearest Embassy or


Consulate through the Office of the Labor Attaché;
Overseas Employment Development Board (OEDB) abolished g. Assistance in the remittance of worker’s salaries,
and replaced by POEA. allowances or allotments to his beneficiaries; and
h. Free and adequate lodging facilities or compensatory
- The powers and functions of the OEDB were taken food allowance at prevailing cost of living standards
over by the POEA. at the jobsite.
Philippine Overseas Employment Administration The solidary liability of the principal/employer and the
recruitment/placement agency for any and all claims shall be
Regulatory Powers of POEA incorporated in the contract for overseas employment and shall
be a condition precedent for its approval.
a. Issuance of license;
b. Suspension, cancellation, or revocation of license; Recruitment and Placement by the POEA
c. Approval of transfer of business address;
d. Approval of establishment of executive office outside POEA is authorized to recruit and place workers primarily on:
of the registered address;
e. Approval of appointment of representatives or agents; a. Government-to-government arrangements;
f. Accreditation of principals or projects; b. Service the hirings of foreign government ministries
g. Revocation or accreditation; and instrumentalities; and
h. Closure of agencies engaged in illegal recruitment c. Recruit and place workers for foreign employers in
activities; and such sectors as policy may dictate.
i. Registration of any change in the composition of the
Board of Directors, officers, and personnel of Documentary Requirements from Employers:
recruitment agency.
a. Work permit or visa assurance of workers, where
Quasi-judicial Powers of POEA applicable;
b. Recruitment order which shall state the number and
The POEA exercises original and exclusive jurisdiction to hear categories of workers needed, compensation benefits,
and decide: qualification, guidelines, testing procedures, etc.
c. Model employment contract; and
a. Disciplinary cases involving OFWs; d. Other documents which the Administration may find
b. All pre-employment cases which are administrative necessary.
in character, involving or arising out of recruitment
laws, rules and regulations including money claims Procedures in Recruitment and Placement
arising therefrom or violation of the conditions for
issuance of license to recruit workers a. Interview and Selection
c. Conciliate complains of workers or their families o An employer hiring through the
arising out of the enforcement of the contract as well Administration shall select his workers from
as matters not related to contractual obligations. the manpower pool developed and
maintained by the Administration;
Minimum requirements for overseas employment contracts: b. Medical Examination
o Selected workers shall undergo and pass a
a. Guaranteed wages, for regular working hours and standard pre-employment medical
overtime pay for services rendered beyond regular examination conducted by a duly accredited
work hours in accordance with the standards medical retainer of the Administration;
established by the Administration; c. Travel Arrangements
b. Free transportation from point of hire to site of o The employer shall assume the full cost of
employment and return; worker's transportation to and from the place
c. Free emergency medical and dental treatment and of work;
facilities; d. Orientation
d. Just causes for the termination of the contract or of o Before departure for the worksite, hired
the services of the workers; workers shall undergo the required Pre-
e. Workmen’s compensation benefits and war hazard Departure Orientation Seminar (PDOS).
protection;
f. Repatriation of workers remains and properties in ARTICLE 18. Ban on direct-hiring.
case of death to the point of hire, or if this is not
possible under the circumstances, the proper No employer may hire a Filipino worker for overseas
disposition thereof, upon prior arrangement with the employment except through the Boards and entities authorized
by the Secretary of Labor. Direct-hiring by members of the
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 14

diplomatic corps, international organizations and such other Purpose of the law
employers as may be allowed by the Secretary of Labor is
exempted from this provision. - To inform the home country of the status of the
workers employed in their respective areas of
Purpose of the law assignment;
- Greatly help the home country in the formulation of
- The good name of the country can best be protected
its labor policies and guidelines; and
with the careful processing of worker’s papers thus,
- To insure that conract workers are not exploited or
eliminating misfit, poorly trained, and incompetent
abused by foreign principal employers.
workers.
ARTICLE 22. Mandatory remittance of foreign exchange
Ban on Direct-Hiring does not apply to: earnings.

1. Members of the diplomatic corps; It shall be mandatory for all Filipino workers abroad to remit a
2. Members of International organizations; portion of their foreign exchange earnings to their families,
3. Other employees who may be allowed by the SOLE dependents, and/or beneficiaries in the country in accordance
or directly hire their workers; and with rules and regulations prescribed by the Secretary of
4. Name hire Labor.
o Individual workers who are able to secure
contracts for overseas employment on their Purpose of the law
own without the assistance or participation
of any agency. - To boost the Philippine foreign exchange reserves;
o He should still undergo processing by - To protect the welfare of families, dependents, and
POEA. beneficiaries of OFWs and ensure that foreign
exchange earnings are remitted and sold for pesos to
ARTICLE 19. (Superseded by B.P. 79: AN ACT CREATING authorized banks in the Philippines.
THE COMMISSION ON FILIPINOS OVERSEAS AND FOR
OTHER PURPOSES) Mandatory Remittance

ARTICLE 20. (Superseded by E.O. 797: REORGANIZING THE - Amount or portion of the basic salary of the OFW
MINISTRY OF LABOR AND EMPLOYMENT, CREATING required to be remitted by the workers to their
THE PHILIPPINE OVERSEAS EMPLOYMENT beneficiaries in the Philippines and sold for pesos to
ADMINISTRATION, AND FOR OTHER PURPOSES)
the Philippine banking system.
ARTICLE 21. Foreign service role and participation.
GR: It is mandatory for all OFWs to remit a portion of their
To provide ample protection to Filipino workers abroad, the foreign exchange earnings to their families,
labor attaches, the labor reporting officers duly designated by the dependents, and/or beneficiaries in the country
Secretary of Labor and the Philippine diplomatic or consular through the Banko Sentral ng Pilipinas (BSP) and
officials concerned shall, even without prior instruction or advice DOLE authorized agents.
from the home office, exercise the power and duty:
Otherwise:
a. To provide all Filipino workers within their jurisdiction
assistance on all matters arising out of employment; 1. OFW shall be suspended/excluded from the list
b. To insure that Filipino workers are not exploited or of eligible workers for overseas employment
discriminated against;
2. In cases of subsequent violations, they will be
c. To verify and certify as requisite to authentication that
the terms and conditions of employment in contracts
repatriated at their own expenses or their
involving Filipino workers are in accordance with the employer’s expense.
Labor Code and rules and regulations of the Overseas
Employment Development Board and National Seamen XPN:
Board;
d. To make continuing studies or researches and 1. Where worker’s immediate family members,
recommendations on the various aspects of the dependents, or beneficiaries are residing with him
employment market within their jurisdiction; abroad;
e. To gather and analyze information on the employment 2. Filipino servicemen working in the military
situation and its probable trends, and to make such installations; and
information available; and 3. Immigrants and Filipino professionals and employees
f. To perform such other duties as may be required of
working with the united Nations agencies or
them from time to time.
specialized bodies.

ARTICLE 23. (Repealed)


University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 15

ARTICLE 24. (Repealed) Blacklisting of Employers, Principals and Contracting Parties


Chapter II - Employers, principals and contracting partners,
REGULATION OF RECRUITMENT AND PLACEMENT including natural persons found defaulting on their
ACTIVITIES contractual obligations to workers, agencies and/or
ARTICLE 25. Private sector participation in the recruitment and
violating rules and regulations on overseas
placement of workers. employment or committing grave misconduct and
offenses involving moral turpitude shall be prohibited
Pursuant to national development objectives and in order to from participating in the overseas employment
harness and maximize the use of private sector resources and program.
initiative in the development and implementation of a
comprehensive employment program, the private employment Mandatory Benefits
sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and Due to hazards inherent in overseas employment, the
regulations as may be issued by the Secretary of Labor. following benefits are mandatory:
Private Sector Participation 1. Personal Accident and Life Insurance
o Mandatory requirement for all land-based
The following persons or entities in the private sector may
workers.
engage in the recruitment and placement of workers either for
o Provided by the employer without any cost
overseas employment:
to the employee.
a. Private employment agency; o If the death is due to the accident, murder, or
o Any person or entity engaged in the assault, he is entitled to an additional
recruitment and placement of workers for a equivalent amount of life insurance.
fee which is charged, directly or indirectly, o The personal accident insurance shall cover
from the workers, or employers, or both. accidental death, dismemberment, and
b. Private recruitment entity; disability.
o Any person or association engaged in the 2. War-risk Insurance
recruitment and placement of workers, o Mandatory requirement or all land-based
locally or overseas, without charging, workers bound for areas declared by the
directly or indirectly, any fee from the POEA as war-risk areas shall be provided by
workers or employers. the employer at no cost to the worker
c. Shipping or manning agency; and o Addition to the mandatory personal accident
o Any person, partnership, or corporation duly and life insurance
licensed by the SOLE to recruit seafarers for 3. War-risk Premium Pay
vessels plying international waters and for o Mandatory requirement for all seafarers who
related maritime activities. sail on a vessel into areas declared by the
d. Such other persons or entities as may be provided by POEA as war-risk trading areas
the SOLE.
Monetary Claims of Migrant Workers
A verified undertaking is a condition sine qua non for the
Under Sec. 10 if R.A. 8042, the amount of monetary award
issuance of a license.
depends upon the term or duration of his contract of
- The verified undertaking shall state that the private employment:
recruitment agency would assume joint and solidary a. If duration of employment contract is less than 1
liability with the employer for all claims and
year; or
liabilities which might arise in connection with the
o Illegally dismissed OFW shall be entitled to
implementation of the contract of employment. all his salaries for the unexpired portion
- Rationale for joint and solidary liability: thereof.
o Employees with legitimate demands against b. If duration of employment contract is atleast 1 year or
the employer would be helpless to enforce more.
them because the employer has no office or o Illegally dismissed OFW shall be entitled to
properties in this jurisdiction. “whichever is less” between his “salaries for
o Assures that employees have remedies the unexpired portion of his employment
available in this jurisdiction even if the contract” or his salaries “for 3 months for
culpable employer is beyond the reach of every year of the unexpired term.”
our courts.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 16

The clause “or for 3 months for every year of the unexpired Disciplinary action against an OFW
term, whichever is less” is declared unconstitutional for being
discriminatory. 22 - should be filed within 3 years from the time the cause
of action accrues; otherwise it shall be barred forever.
The rule now is that an illegally dismissed OFW is now
entitled to all his salaries for the entire unexpired portion of Pre-employment cases that are administrative in nature arising
his employment contract, regardless of the stipulated term or out of recruitment laws, rules and regulations, including
duration. Such payment is a form of indemnity and not in the money claims or those involving violation of the conditions
nature of backwages or separation pay. for the issuance of a license to recruit

Disciplinary Action for Overseas Contract Workers - should be filed within 3 years from the date the cause
of action accrues; otherwise the same shall be barred
- Complaints for breach of discipline against a contract forever.
worker shall be filed with the Adjudication Office or
Regional Office, as the case may be. ARTICLE 26. Travel agencies prohibited to recruit.
- The Administration may, motu proprio, undertake a
Travel agencies and sales agencies of airline companies are
disciplinary action against a worker for breach of
prohibited from engaging in the business of recruitment and
contract. placement of workers for overseas employment whether for
profit or not.
Penalties for Breach of Discipline
Purpose of Prohibition
a. Stern warning;
b. Repatriation to the Philippines at the worker’s - Travel agencies are under the supervisory powers of
expense; the Department of Tourism (DOT) not the DOLE.
c. Suspension; - Confusion may arise to the detriment and
d. Disqualification from the overseas employment disadvantage of an overseas applicant-worker or may
program; and lead to the exploitation of the applicant-worker who
e. In case of seamen, delisting from the registry. will be at the economic mercy of the travel agency or
sales agencies of airline company from the time his
Grounds for Disciplinary Action papers are processed to the rime he departs.
1. Commission of a felony or crime punishable by Persons Disqualified from engaging in Recruitment and
Philippine Laws or by the laws of the host country; Placement
2. Drug addiction or possession or trafficking of
prohibited drugs; a. Travel agencies and sales agencies of airline
3. Desertion or abandonment; companies;
4. Drunkenness, especially where the laws of the host b. Officers or members of the Board of any corporation
country prohibit intoxicating drinks; or members in a partnership engaged in the business
5. Gambling especially where the laws of the host of a travel agency;
country prohibit the same; c. Corporations and partnerships, when any of its
6. Initiating or joining a strike or work stoppage where officers, members of the board or partners, is also an
the laws of the host country prohibit strikes or similar officer, member of the board or partner of a
actions; corporation or partnership engaged in the business of
7. Creating trouble at the worksite or in the vessel; a travel agency;
8. Embezzlement of company funds or moneys and d. Persons, partnerships, or corporations which have
properties or a fellow worker entrusted for delivery to derogatory records, such as, but not limited to the
kin or relatives in the Philippines; following:
9. Theft or robbery; 1. Those certified to have derogatory record or
10. Prostitution; information by the National Bureau of
11. Vandalism or destroying company property; Investigation (NBI) or by the Anti-Illegal
12. Gunrunning or possession of deadly weapons; Recruitment Branch of the POEA;
13. Violation/s of the sacred practices of the host 2. Those against whom probable cause or prima
country; and facie finding of guilt for illegal recruitment or
14. Unjustified breach of government approved other related cases exists;
employment contract. 3. Those convicted for illegal recruitment or other
related cases and/or crimes involving moral
Prescriptive Period turpitude; and
4. Those agencies whose licenses have been
22
Serrano vs. Gallant Maritime, G.R. No. 167614 (2009). previously revoked or cancelled by the
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 17

Administration for violation of R.A. 8042, P.D. Nature of License or Authority


442 as amended, and their implementing rules
and regulations (IRR), as well as these rules and - A privilege which could be reasonably regulated by
regulations. the State by virtue of its inherent police power.
e. Any officials or employees of the DOLE, POEA, - Once the license or authority is granted, it is non-
OWWA, DFA, and other government agencies transferrable.
directly involved in the implementation of R.A. - It is personal in nature for it was granted upon
804223 and/or any of his/her relatives within the 4th fulfillment of some requirements by the applicant.
civil degree of consanguinity or affinity; and - It is not a contract and does not create any vested
f. Persons or partners, officers, and Directors of right.
corporations whose licenses have been previously - It may be withdrawn at the discretion of the authority
cancelled or revoked for violation of recruitment issuing the same.
laws.
Limitations on the Use of License
ARTICLE 27. Citizenship requirement.
a. cannot be used directly or indirectly by any person
Only Filipino citizens or corporations, partnerships or entities at other than one in whose favor it was issued;
least seventy-five percent (75%) of the authorized and voting b. cannot be used in any place other than that stated in
capital stock of which is owned and controlled by Filipino citizens the license or authority;
shall be permitted to participate in the recruitment and
c. cannot be transferred, conveyed, or assigned to any
placement of workers, locally or overseas.
person or entity; and
- The privilege to engage in recruitment and placement d. in case of death of the sole proprietor, the license
of workers is available only to Filipino citizens, may be extended upon request of the heirs to
partnerships, or corporations with atleast 75% of the continue only for the purpose of winding up business
authorized and voting capital stock owned and operations.
controlled by Filipino Citizens.
A. Change of ownership as a single proprietor:
ARTICLE 28. Capitalization.
- Causes the automatic revocation of the license.
All applicants for authority to hire or renewal of license to recruit - The new owner shall be required to apply for a
are required to have such substantial capitalization as license.
determined by the Secretary of Labor.
B. Change in the relationship of partners in a partnership
Capitalization Requirement
- Actual dissolution of the partnership.
a. Single Proprietorship/Partnership: minimum of - Automatic revocation of the license.
P2,000,000.00
b. Corporation: minimum of P2,000,000.00 paid-up C. Change of officers and personnel
capital
- Change should be registered with the POEA within
Those existing licenses shall, within 4 years from effectivity 30 days from the effectivity of such changes.
hereof, increase their capitalization or paid up capital, as the - Change should be published atleast once in a
case may be, to P2,000,000.00 at the rate of P250,000.00 newspaper of general circulation, in order to bind 3 rd
every year. parties. Proof of publication must be submitted to the
POEA.
ARTICLE 29. Non-transferability of license or authority.
ARTICLE 30. Registration fees.
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 The Secretary of Labor shall promulgate a schedule of fees for
place other than that stated in the license or authority be the registration of all applicants for license or authority.
transferred, conveyed or assigned to any other person or entity.
Any transfer of business address, appointment or designation of Registration Fees
any agent or representative including the establishment of
additional offices anywhere shall be subject to the prior approval a. Issuance of license: P50,000.00
of the Department of Labor. b. Escrow Agreement: P1,000,000.00 with an accredited
reputable bank
c. Surety Bond: P100,000.00 from a bonding company
acceptable to POEA and accredited by the Insurance
Commission
23
Migrant Workers and Overseas Filipino Act of 1995
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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A.Y. 2017 – 2018, 1st Semester a | 18

ARTICLE 31. Bonds. covered with the appropriate receipt clearly showing the amount
paid. The Secretary of Labor shall promulgate a schedule of
All applicants for license or authority shall post such cash and allowable fees.
surety bonds as determined by the Secretary of Labor to
guarantee compliance with prescribed recruitment procedures, Fees paid by Workers
rules and regulations, and terms and conditions of employment
as may be appropriate. - Private employment agencies may charge placement
fees as may be authorized by the Secretary from a
Purpose on Bond-posting and Escrow Deposit hired worker to cover costs of placement and
documentation services such as trade or skill testing,
- Answers for all valid and legal claims arising from medical examination, passport, visa, clearances,
violations of the conditions for the grant and use of
inoculation, airport terminal fee, notarials, among
the license, and/or accreditation and contracts of
others.
employment
- Guarantees compliance with the provisions of the Prohibition on Charging Fees
Code and its IRR, the rules of the POEA, and other
relevant issuances of the DOLE a. Placement fees cannot be collected from a hired
- The surety bonds shall include the condition “that worker until after he has signed the employment
notice to the principal is notice to the surety and that contract and shall be covered by receipts clearly
any judgment against the principal in connection with showing the amount paid;
matters falling under POEA’s jurisdiction shall be b. Manning agencies shall not charge any fee from
binding and conclusive on the surety.” The surety seafarer-applicants for its recruitment and placement
bonds shall be co-terminus with the validity period of services; and
the license. c. No other fees or charges including processing fees
- Insure more care on the part of the local agent in its shall be imposed against any worker.
choice of the foreign principal to whom our overseas
workers are to be sent. ARTICLE 33. Reports on employment status.
- Insure that if the rights of the OFWs are violated by
their employer, recourse would still be available to Whenever the public interest requires, the Secretary of Labor
may direct all persons or entities within the coverage of this Title
them against local companies that recruited them for
to submit a report on the status of employment, including job
the foreign principal. vacancies, details of job requisitions, separation from jobs, wages,
other terms and conditions and other employment data.
Garnishment of Bonds
Purpose of the law
- Primarily reserves the bond for employment-related
claims of OFWs for violation of laws. - Serves as guidelines in the formulation of national
labor policies;
Replenishment of Surety Bond/Escrow Deposit - Can be the basis of preventive or remedial
legislations; and
- Within fifteen (15) calendar days from date of receipt
- Scarce or over supply of labor supply could easily be
of notice from the Administration that the
determined.
bonds/deposit in escrow, or any part thereof had been
garnished. ARTICLE 34. Prohibited practices.
- Failure to replenish within the said period:
suspension of the license. It shall be unlawful for any individual, entity, licensee, or holder
of authority:
Release of Escrow Deposit
a. To charge or accept, directly or indirectly, any amount
- A licensed agency which voluntarily surrenders its greater than that specified in the schedule of allowable
license shall be entitled to the refund of its deposited fees prescribed by the Secretary of Labor, or to make a
cash bond and release of the deposit in escrow, only worker pay any amount greater than that actually
after posting a surety bond of similar amount valid received by him as a loan or advance;
b. To furnish or publish any false notice or information or
for four (4) years from expiration of license. document in relation to recruitment or employment;
c. To give any false notice, testimony, information or
ARTICLE 32. Fees to be paid by workers.
document or commit any act of misrepresentation for
the purpose of securing a license or authority under this
Any person applying with a private fee-charging employment
Code.
agency for employment assistance shall not be charged any fee
d. To induce or attempt to induce a worker already
until he has obtained employment through its efforts or has
employed to quit his employment in order to offer him
actually commenced employment. Such fee shall be always
to another unless the transfer is designed to liberate the
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 19

worker from oppressive terms and conditions of where the fee charged is excessive or contrary to
employment; what is prescribed by the Secretary of Labor and
e. To influence or to attempt to influence any person or Employment;
entity not to employ any worker who has not applied for b. Engaging in act/s of misrepresentation, in
employment through his agency;
relation to recruitment and placement of workers,
f. To engage in the recruitment or placement of workers
in jobs harmful to public health or morality or to the such as: publication or advertisement of false or
dignity of the Republic of the Philippines; deceptive notices or information or submission for
g. To obstruct or attempt to obstruct inspection by the processing of documents which are fraudulent or
Secretary of Labor or by his duly authorized containing false information;
representatives; c. Inducing or attempting to induce an already
h. To fail to file reports on the status of employment, employed worker to transfer from or leave his
placement vacancies, remittance of foreign exchange employment for another unless the transfer is
earnings, separation from jobs, departures and such designed to liberate a worker from oppressive terms
other matters or information as may be required by the
and conditions or employment;
Secretary of Labor.
i. To substitute or alter employment contracts approved d. Influencing or attempting to influence any person
and verified by the Department of Labor from the time or entity not to employ any worker who has not
of actual signing thereof by the parties up to and applied for employment through his agency;
including the periods of expiration of the same without e. Obstructing or attempting to obstruct inspection by
the approval of the Secretary of Labor; the Secretary, the Administrator or their duly
j. To become an officer or member of the Board of any authorized representatives;
corporation engaged in travel agency or to be engaged f. Substituting or altering employment contracts and
directly or indirectly in the management of a travel other documents approved and verified by the
agency; and
Administration from the time of actual signing
k. To withhold or deny travel documents from applicant
workers before departure for monetary or financial thereof by the parties up to and including the period
considerations other than those authorized under this of expiration of the same without Administration’s
Code and its implementing rules and regulations. approval;
g. Failure to file reports as may be required by the
Purpose of the law Administration;
h. For the owner, partner, or officer/s of any licensed
- Regulate, if not totally eliminate, malpractices agency to become an officer or member of the Board
regarding recruitment and placement; and of any corporation or partnership engaged directly or
- Effective implementation of all pertinent laws, rules indirectly in the management of a travel agency;
and regulations on recruitment and placement. i. Unreasonable withholding or denying travel or other
pertinent documents from workers for monetary
Substitution of Employment Contracts [Art. 34, (i)] considerations or reasons other than those authorized
under the Code and its implementing rules and
- Employees shall not be placed in a disadvantageous regulations;
position j. Engaging in recruitment activities in places other
- To see to it that the contract is within the minimum than that specified in the license without previous
standards set by the POEA authorization from the Administration;
k. Appointing or designating agents, representatives or
There is no prohibition against stipulating in a contract more
employees without prior approval from the
benefits to the employee than those required by law.
Administration;
ARTICLE 35. Suspension and/or cancellation of license or l. Falsifying or altering travel documents;
authority. m. Deploying workers whose employment and travel
documents were not processed by the Administration;
The Minister of Labor shall have the power to suspend or cancel n. Deploying workers or seafarers to vessels or
any license or authority to recruit employees for overseas principals not accredited by the Administration;
employment for violation of rules and regulations issued by the o. Publishing or causing the publication of overseas job
Ministry of Labor, the Overseas Employment Development vacancies in violation of the prescribed rules;
Board, or for violation of the provisions of this and other
p. Failure to deploy workers within the prescribed
applicable laws, General Orders and Letters of Instructions.
period without valid reason;
Grounds for Suspension/Cancellation of License q. Disregard of lawful orders, notices and other
processes issued by the Administration;
a. Charging, imposing or accepting directly or r. Coercing workers to accept prejudicial arrangements
indirectly, any amount of money goods or services, in exchange for certain benefits that rightfully belong
or any fee or bond for any purpose whatsoever before to the workers;
employment is obtained for an applicant worker or
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 20

s. Withholding of workers’ salaries or remittances regulations. Inspection shall be conducted in the


without justifiable reasons ; following manner:
t. Violation of other pertinent provisions of the Code
and other relevant laws, rules and regulations, a. Before the issuance or renewal of license or
guidelines and other issuances on recruitment and authority.
placement of workers for overseas employment and b. In case of transfer of office or establishment.
the protection of their welfare; and c. Upon complaint or report of violation of existing
u. Committing any other acts similar or analogous to the rules and regulations.
foregoing.
Authority to inspect
Grounds for Revocation of License
- With written authority from the POEA Administrator.
a. Violation/s of the conditions of license;
b. Engaging in act/s of misrepresentation for the Subject of Inspection
purpose of securing a license or renewal thereof, such
as giving false testimonies or falsified documents; - Depends upon the purpose of inspection
c. Engaging in the recruitment or placement of workers - May inspect the premises, and require production of
in jobs harmful to public health or morality or to the documents and records of the agency.
dignity of the Republic of the Philippines;
Procedures of Inspection:
d. Incurring an accumulated three (3) counts of
suspension by an agency based on final and a. Inspection shall be conducted during office house by
executory orders within the validity period of its a team of atleast 2 duly authorized inspectors, I the
license. presence of the manager of the office or any office
Chapter III
personnel;
MISCELLANEOUS PROVISIONS b. Inspection reports shall be submitted to the POEA
within 24 hours after inspection;
ARTICLE 36. Regulatory power. c. Violations found in the course of the inspections shall
constitute a ground for:
The Secretary of Labor shall have the power to restrict and 1. Imposition of appropriate sanctions; or
regulate the recruitment and placement activities of all agencies 2. Denial of application for issuance and renewal of
within the coverage of this Title and is hereby authorized to issue license.
orders and promulgate rules and regulations to carry out the
objectives and implement the provisions of this Title. ARTICLE 38. Illegal recruitment.
ARTICLE 37. Visitorial Power. a. Any recruitment activities, including the prohibited
practices enumerated under Article 34 of this Code, to
The Secretary of Labor or his duly authorized representatives be undertaken by non-licensees or non-holders of
may, at any time, inspect the premises, books of accounts and authority, shall be deemed illegal and punishable under
records of any person or entity covered by this Title, require it to Article 39 of this Code. The Department of Labor and
submit reports regularly on prescribed forms, and act on Employment or any law enforcement officer may
violation of any provisions of this Title. initiate complaints under this Article.
b. Illegal recruitment when committed by a syndicate or in
Regulatory and visitorial power, an exercise of police large scale shall be considered an offense involving
regulation economic sabotage and shall be penalized in accordance
with Article 39 hereof.
A. Regulatory powers:
Illegal recruitment is deemed committed by a syndicate
- May inspect the premises, books of accounts and if carried out by a group of three (3) or more persons
records of any person covered by the provisions on conspiring and/or confederating with one another in
recruitment and placement of workers. carrying out any unlawful or illegal transaction,
enterprise or scheme defined under the first paragraph
B. Visitorial powers: hereof.

- The proceeding before the SOLE or his agents Illegal recruitment is deemed committed in large scale if
exercising visitorial powers is summary in nature committed against three (3) or more persons
individually or as a group.
c. The Secretary of Labor and Employment or his duly
Inspection of Agencies
authorized representatives shall have the power to cause the
arrest and detention of such non-licensee or non-holder of
All agencies are subject to periodic inspection by the authority if after investigation it is determined that his
POEA to determine compliance with existing rules and activities constitute a danger to national security and public
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 21

order or will lead to further exploitation of job-seekers. The Four Types of Illegal Recruitment24
Secretary shall order the search of the office or premises
and seizure of documents, paraphernalia, properties and a. Simple or licensee –committed by a licensee or
other implements used in illegal recruitment activities and holder of authority against one or two persons only;
the closure of companies, establishments and entities found b. Non-licensee –committed by any person who is
to be engaged in the recruitment of workers for overseas
neither a licensee nor a holder of authority;
employment, without having been licensed or authorized to
do so. (Declared unconstitutional in Salazar vs. Achacoso, c. Syndicated – committed by a syndicate if carried out
183 SCRA 145, 1990) by a group of 3 or more persons in conspiracy or
confederation with one another; and
Illegal Recruitment d. Large-scale or Qualified – committed against 3 or
more persons, individually or as a group.
- Recruitment activities, including prohibited practices
enumerated under Article 34 undertaken by non- Essential Elements of Illegal Recruitment
licensees or non-holders of authority.
a. Offender is a licensee/non-licensee or holder/non-
XPN: holder of authority engaged in the recruitment and
placement of workers
a. School and civic, charitable organizations or b. Offender undertakes either any recruitment activities
employers for their own use, subject to rules defined under Art. 34 of the Labor Code
and regulations of the SOLE
b. Direct hiring by members of the diplomatic Arrest of Illegal Recruiters
corps, international organizations, and other
employers allowed by the SOLE. - SOLE may no longer issue a search warrant or arrest
- Gives the impression that he has the power to send warrants
workers abroad for work such that the later were - Authorities must go through a judicial process
convinced to part with their money in order to be so
employed GR: Only judge can issue a search warrant or warrant of
- Money is not material to a prosecution of illegal arrest
recruitment (illegal recruitment is defined whether for
XPN: Deportation of illegal and undesirable aliens
profit or not)
1. President
Doctrine of Imputed Knowledge
2. Commission of Immigration25
- An employee of a company or corporation engaged in ARTICLE 39. Penalties.26
illegal recruitment may be held liable as a principal
by direct participation, together with its employer, if SEC. 7. PENALTIES -
it is shown that he actively and consciously
participate d in the recruitment process. a. Any person found guilty of illegal recruitment shall
suffer the penalty of imprisonment of not less than six
Non-Licensee or Non-Holder of Authority (6) years and one (1) day but not more than twelve (12)
years and a fine not less than two hundred thousand
- any person, partnership or corporation who has not pesos (P200,000.00) nor more than five hundred
been issued a valid license to engage in recruitment thousand pesos (P500,000.00).
and placement, or whose license has been suspended, b. The penalty of life imprisonment and a fine of not less
than five hundred thousand pesos (P500,000.00) nor
revoked or cancelled. more than one million pesos (P1,000,000.00) shall be
imposed if illegal recruitment constitutes economic
Four Types of Illegal Recruitment under the Revised Penal sabotage as defined herein.
Code:
Provided, however, that the maximum penalty shall be
1. Estafa by falsely pretending to possess power, imposed if the person illegally recruited is less than eighteen
influence, qualification, property, credit, agency, (18) years of age or committed by a non-licensee or non-
business, or imaginary transaction, or by means of holder of authority.
other similar deceits
2. Falsification of public official documents
3. Complex crime of Estafa thru falsification of public
official documents
4. Direct bribery
24
People vs. Sadiosa, G.R. No. 107084 (1998).
25
Salazar vs. Achacoso, 183 SCRA 145 (1990).
26
Repealed by RA No. 8042, Sec. 7).
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 22

A. Penalty for Simple Illegal Recruitment engage an alien for employment in the Philippines shall obtain an
employment permit from the Department of Labor.
- Imprisonment: not less than 6 years and 1 day but not
more that 12 years The employment permit may be issued to a non-resident alien or
- Fine: not less than P200,000.00 nor more than to the applicant employer after a determination of the non-
availability of a person in the Philippines who is competent, able
P500,000.00 and willing at the time of application to perform the services for
which the alien is desired.
B. Penalty for Economic Sabotage
For an enterprise registered in preferred areas of investments,
- Imprisonment: Life imprisonment said employment permit may be issued upon recommendation of
- Fine: not less than P500,000.00 not more than the government agency charged with the supervision of said
P1,000,000.00 registered enterprise.
The maximum penalty shall be imposed if the person illegally Purpose of Requiring Alien’s Employment Permit
recruited is less than 18 years of age by a non-licensee/holder
of authority. - Aliens are prohibited to be employed in
establishments or entities which have under their
Conviction carries with it the automatic revocation of the name or control a right, franchise, privilege, property
license or authority, forfeiture of the cash and surety bond, and or business, the exercise of enjoyment of which is
conviction for the crime of Estafa if found guilty thereof. expressly reserved by the Philippine Constitution or
the law to citizens of the Philippines or to
A recruitment agency is solidarily liable with a foreign corporations or associations atleast 60% of the capital
principal for the unpaid salaries of a worker it recruited for of which is owned by such citizens.28
employment. - Aspect of nationalism
- To allow aliens to work locally will deprive other
Venue of Criminal Action
Filipinos of their opportunity to get employed.
a. RTC of the province or city where the offense was - Aggravate the already growing proliferation of
committed; or overstaying aliens in the country.
b. Where the offended party actually resides at the time
Persons required to Secure Employment Permit (Alien
of the commission of the offense.
Employment Permit)
Mandatory periods for resolution of Illegal Recruitment Cases
- Non-resident foreign nationals who intend to engage
Preliminary Investigation (PI): in gainful employment in the Philippines

- terminated within 30 days from date of filing Persons exempted from securing the Permit

Filing of Information in Court: a. All members of the diplomatic services and foreign
government officials accredited by and with
a. If PI conducted by the Prosecutor: 24 hours from reciprocity arrangement with the Philippine
termination of investigation Government;
b. If PI conducted by the Judge: 48 hours from date of b. Officers and Staff of International organizations of
receipt of records of the case which the Philippine government is a member, and
their legitimate spouses desiring to work in the
Prescriptive Periods Philippines;
c. Foreign nationals elected as members of the
a. Simple Illegal Recruitment: 5 years Governing Board who do not occupy any other
b. Economic Sabotage: 20 years position, but only voting rights in the corporation;
d. All foreign nationals granted exemption by law;
Title II e. Owners and representatives of foreign principals,
EMPLOYMENT OF NON-RESIDENT ALIENS whose companies are accredited by the POEA, who
come to the Philippines for a limited period solely for
ARTICLE 40. Employment permit of non-resident aliens.27
the purpose of interviewing Filipino applicants for
Any alien seeking admission to the Philippines for employment employment abroad;
purposes and any domestic or foreign employer who desires to f. Foreign nationals who come to the Philippines to
teach, present, and/or conduct research studies in
universities and colleges as visiting, exchange or
27
See D.O. No. 75 dated May 31, 2006 (Revised Riles for the Issuance of
28
Employment Permits to Foreign Nationals) C.A. No. 108, as amended by P.D. 715 (Anti-Dummy Law)
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 23

adjunct professors under formal agreements between Penalty for Working without an Alien Employment Permit
the universities or colleges; or between the Philippine
government; provided that the exemption is on a - Fine: P10,000.00 for every year or a fraction thereof
reciprocal basis; and
g. Resident foreign national. ARTICLE 41. Prohibition against transfer of employment

After the issuance of an employment permit, the alien shall not


Validity of Alien Employment Permit
transfer to another job or change his employer without prior
approval of the Secretary of Labor.
GR: 1 year
Any non-resident alien who shall take up employment in violation
XPN: Unless the employment contract, consultancy of the provision of this Title and its implementing rules and
services, or other modes of engagement regulations shall be punished in accordance with the provisions of
provides, which in no case shall exceed 5 years. Articles 289 and 290 of the Labor Code.

Suspension of Alien Employment Permit In addition, the alien worker shall be subject to deportation after
service of his sentence.
- suspended by the Regional Office on the following
grounds: Prohibition against transfer of employment
a. Continued stay of the foreign national may result
in the damage to the interest of the industry of - Transfer should be made with approval f the SOLE
country; or - Purpose: aliens may pose a threat to national security
b. Employment of the foreign national is suspended and public order if their primary purpose is not
by the employer of by order of the court. employment but to instigate people to rise up against
the government
Cancellation of Alien Employment Permit
Penalties for Violation29
Regional Director (RD) may cancel or revoke the permit on
the following grounds: a. Fine: not less than P1,000.00 nor more than
P10,000.00;
a. Non-compliance with any of the requirements or b. Imprisonment not less than 3 months nor more than 3
conditions of the Alien Employment Permit years;
b. Misrepresentation of facts in the application c. Both fine and imprisonment at the discretion of the
c. Submission of falsified or tampered documents court;
d. Meritorious objection or information against the d. Summary deportation upon service of sentence; and
employment of the foreign national as determined by e. Cancellation or revocation of alien employment
the RD permit.
e. Foreign national has a derogatory record; and
f. Employer terminated the employment of the foreign ARTICLE 42. Submission of list.
national
Any employer employing non-resident foreign nationals on the
effective date of this Code shall submit a list of such nationals to
Petitions for cancellation of the permit shall be resolved the Secretary of Labor within thirty (30) days after such date
within 30 days from receipt thereof. indicating their names, citizenship, foreign and local addresses,
nature of employment and status of stay in the country. The
Remedies in case of suspension, cancellation, revocation of Secretary of Labor shall then determine if they are entitled to an
Alien Employment Permit employment permit.

A. Motion for Reconsideration (MR) Purpose of the law


o Filed within 7 days after receipt of the
suspension/cancellation/revocation order - To monitor the influx of foreign nationals into the
o RD shall resolve MR within 10 days from Philippines;
receipt thereof - The list provides fresh data in policy-formulation and
B. Appeal decision-making in the field of labor;
o To the SOLE - Government could regulate the employment of
o Filed within 10 days from its receipt foreign workers; and
o The decision of the SOLE shall be final and - Submission of list of foreign nationals is one of the
unappealable. conditions for issuance of and employment permit.
o If MR is filed after 7 days by not later than
10 days from receipt of the denial, it shall be
treated as an appeal.
29
Arts. 288 & 289, P.D. No. 442.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 24

BOOK TWO In addition:


HUMAN RESOURCES DEVELOPMENT PROGRAM - 2 representatives from the employer/industry
organization (one shall be a woman)
Title I
- 3 representatives from national associations of private
NATIONAL MANPOWER DEVELOPMENT PROGRAM
technical-vocational education and training
Chapter I institutions (one shall be a woman)
NATIONAL POLICIES AND ADMINISTRATIVE
MACHINERY FOR THEIR IMPLEMENTATION Powers and Functions:

ARTICLE 43 – 56 (Superseded by R.A. 7796: AN ACT - The Authority shall primarily be responsible for
CREATING THE TECHNICAL EDUCATION AND SKILLS formulating, continuing, coordinated and fully
DEVELOPMENT AUTHORITY, PROVIDING FOR ITS integrated technical education and skills development
POWERS, STRUCTURE AND FOR OTHER PURPOSES) policies, plans and programs.

Power of Review
Technical Education and Skills Development Authority - The Secretariat shall be headed by a Director-
(TESDA) replace and absorbed the following: General, who shall likewise be a member of the
TESDA Board. The Director-General shall be
 National Manpower and Youth Council (NMYC);
appointed by the President of the Philippines and
 Bureau of Technical and Vocational Education shall enjoy the benefits, privileges and emoluments
(BTVE); equivalent to the rank of Undersecretary.
 personnel and functions pertaining to technical- - As Chief Executive Officer of the TESDA
vocational education in the regional offices of the Secretariat, the Director General shall exercise
Department of Education, Culture and Sports general supervision and control over its technical and
(DECS); and administrative personnel.
 apprenticeship program of the BLE.
Skill Development Centers
Declaration of Policy:
- The Authority shall strengthen the network of
- to provide relevant, accessible, high quality and national, regional and local skills training centers for
efficient technical education and skills development the purpose of promoting skills development.
in support of the development of high quality Filipino - This network shall include skills training centers in
middle-level manpower responsive to and in vocational and technical schools, technical institutes,
accordance with Philippine development goals and polytechnic colleges, and all other duly accredited
priorities. public and private dual system educational
- encourage active participation of various concerned institutions.
sectors, particularly private enterprises, being direct
participants in and immediate beneficiaries of a Comprehensive Development Plan
trained and skilled work force, in providing technical
education and skills development opportunities. - It shall be the plan for technical education and skill
development for the entire country within the
Composed mainly of: framework of the National Development Plan.
- Provide for a reformed industry-based training
A. TESDA Board program including apprenticeship, dual training
B. TESDA Secretariat system, and other similar schemes intended to:
a. Promote maximum protection and welfare of the
Composition and Appointment of TESDA Board worker-trainee;
b. Improve quality and relevance and social
SOLE Chairman
accountability of technical education and skills
Secretary of DepEd Co-Chairperson
development;
Secretary of DTI Co-Chairperson
c. Accelerate the employment-generation efforts of
Secretary of DOA Member the government; and
Secretary of DILG Member d. Expand the range of opportunities for upward
Director-General of TESDA Member social mobility of the school-going population
Secretariat beyond the traditional higher levels of formal
education.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
( 4(4A)
A.Y. 2017 – 2018, 1st Semester a | 25

Middle-level Manpower Apprentice

a. who have acquired practical skills and knowledge - Refer to definition under Art. 58
through formal or non-formal education and training - Person undergoing training for an approved
equivalent to at least a secondary education but apprenticeable occupation
preferably a post-secondary education with a - Once he has completed the apprenticeship training,
corresponding degree or diploma; or he can qualify for work in a highly-skilled trade.
b. skilled workers who have become highly competent
in their trade or craft as attested by industry. Apprenticeship

Establishment of Administration of National Skills Trade - Refer to definition under Art. 58


Standards
Significance or Apprenticeship
- level of fraduated level of proficiency generally
accepted by industry in specific jobs, tasks, trades, or - Fills the demands of employers for workers in certain
occupation. trades or occupations which require special skills.

Title II Nature of an Apprenticeship Program


TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
GR: Voluntary undertaking
Chapter I
APPRENTICES XPN: Compulsory apprenticeship

ARTICLE 57. Statement of objectives. 1. when national security or particular requirements


of economic development so demand.
This Title aims: 2. where services of foreign technicians are utilized
a. To help meet the demand of the economy for trained
by private companies in apprenticeable trades,
manpower; said companies are required to set-up
b. To establish a national apprenticeship program through apprenticeship programs.
the participation of employers, workers and
government and non-government agencies; and On-the-job Training (OJT)
c. To establish apprenticeship standards for the protection
of apprentices. - Practical work experience through actual
participation in productive activities given to or
ARTICLE 58. Definition of Terms. acquired by an apprenticeship.
- Must specifically be described in the apprenticeship
As used in this Title:
standards of a particular program.
a. "Apprenticeship" means practical training on the job - It may be undertaken in:
supplemented by related theoretical instruction. a. The plant, shop or premises of the employer or
b. An "apprentice" is a worker who is covered by a firm concerned If the apprenticeship program is
written apprenticeship agreement with an individual organized by an individual or firm;
employer or any of the entities recognized under this b. The premises of one or several firms designated
Chapter. for the purpose by the organizer of the program
c. An "apprenticeable occupation" means any trade, form if such organizer is an association of employer
of employment or occupation which requires more than civic groups, and the like; and
three (3) months of practical training on the job
c. The DOLE Training Center or other public
supplemented by related theoretical instruction.
training institutions with which the TESDA has
It is one officially endorsed by a tripartite body and made appropriate arrangements.
approved for apprenticeship by the Authority. (R.A.
7796) ARTICLE 59. Qualifications of apprentice.

d. "Apprenticeship agreement" is an employment contract To qualify as an apprentice, a person shall:


wherein the employer binds himself to train the
apprentice and the apprentice in turn accepts the terms a. Be at least fourteen (14) years of age;30
of training for a recognized apprenticeable occupation b. Possess vocational aptitude and capacity for
emphasizing the rights, duties, and responsibilities of appropriate tests; and
each party. (R.A. 7796) c. Possess the ability to comprehend and follow oral and
written instructions.

30
See Sec. 12 of RA No. 7610, as amended by Sec. 2 of RA No. 9231.
University of Santo Tomas Labor Law Review
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Trade and industry associations may recommend to the wage rates below the legal minimum wage, which in no case shall
Secretary of Labor appropriate educational requirements start below 75 percent of the applicable minimum wage, may be
for different occupations. entered into only in accordance with apprenticeship programs
duly approved by the Secretary of Labor and Employment. The
Qualifications of an Apprentice Department shall develop standard model programs of
apprenticeship. (As amended by Section 1, Executive Order No.
a. Be atleast 15 years of age; 111, December 24, 1986)
o Those who are 15 but less than 18 may be
eligible for apprenticeship only in non- Apprenticeship Contract
hazardous occupations
o Rules provide for 15 years but the codal - An agreement whereby the employer binds himself to
provision shall prevail (14 years of age). train the apprentice and the apprentice in turn accepts
b. Be physically fit for the occupation; the terms of the training.
o Total physical fitness need not be requires - The agreement shall be signed by the employer or his
unless it is essential to the expeditious and duly authorized representative and by the apprentice
effective learning of the occupation. - An apprenticeship agreement with a minor shall be
o Only physical defects which constitute real signed in his behalf by his parent or guardian, or an
impediments to effective performance as authorized representative of DOLE.
determined by the plant apprenticeship
Defective Contract
committee may disqualify an applicant.
o Physical examination of apprenticeship- The agreement should be submitted to:
applicants preparatory to employment shall
be provided free of charge by DOH, or any - The DOLE-TESDA within 5 working days from
governmental hospital. If not feasible, firm the date of execution; and
or entity screening the applicant should - the agency which shall provide for the
provide it for free. compulsory theoretical instruction.
c. Possess vocational aptitude and capacity for the
particular occupation as established through Enforcement of a Contract
appropriate tests; and
o Aptitude tests should be provided by the - should first exhaust administrative remedies prior to
employer, but if unable to do so the DOLE enforcement of contract.
shall provide it for free of charge.
d. Possesses the ability to comprehend and follow oral Termination of Contract
and written instructions.
- either party to the apprenticeship agreement may
ARTICLE 60. Employment of apprentices. terminate the agreement after the probationary period
only for a valid cause.
Only employers in the highly technical industries may employ
apprentices and only in apprenticeable occupations approved by By the Employer By the Apprentice
the Secretary of Labor and Employment. (As amended by a. habitual absenteeism; a. substandard or
Section 1, Executive Order No. 111, December 24, 1986)
b. willful disobedience of deleterious working
- Only employers in highly-technical industries may company rules or conditions within the
enter into apprenticeship agreements. insubordination to a employer’s premises;
o Highly-technical industry refers to a trade, lawful order of a b. repeated violations by the
business, enterprise, industry or other superior; employer of the terms of
activity which utilizes the application of c. poor physical condition, the apprenticeship
advanced technology. permanent disability, or agreement;
- Only in apprenticeable trades and occupations as prolonged illness which c. cruel or inhumane
approved by the SOLE. incapacitated the treatment by the
- Form of employment which requires for proficiency apprentice from employer or his
more than 3 months of practical training on the job working; subordinates;
with compulsory related theoretical instructions. d. theft or malicious d. personal problems which
destruction of company in the opinion of the
ARTICLE 61. Contents of apprenticeship agreements. property and/or apprentice shall prevent
equipment; him from a satisfactory
Apprenticeship agreements, including the wage rates of e. poor efficiency of performance of his job;
apprentices, shall conform to the rules issued by the Secretary of performance on the job and
Labor and Employment. The period of apprenticeship shall not or in the classroom for a e. bad health or continuing
exceed six months. Apprenticeship agreements providing for prolonged period despite illness.
University of Santo Tomas Labor Law Review
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warnings duly given; an authorized representative of the Department of Labor, and


and the same shall be binding during its lifetime.
f. engaging in violence or
Every apprenticeship agreement entered into under this Title
other forms of gross
shall be ratified by the appropriate apprenticeship committees, if
misconduct inside the any, and a copy thereof shall be furnished both the employer and
employer’s premises. the apprentice.

Ratification of apprenticeship contracts


In case of pre-termination of the apprenticeship agreement, the
apprentice is not considered as a regular employee. - Appropriate apprenticeship committee

Apprentice’s Compensation Tripartite Apprenticeship Committees:

- Start at 75% of the statutory minimum wage for the 1. Management;


first 6 months; 2. Labor; and
- Thereafter, he shall be paid the full minimum wage, 3. Government
including the full cost-of-living allowances (COLA)
- May receive no compensation whenever the OJT is If not feasible, it shall be composed of:
required by the school curriculum as a prerequisite
for graduation or for taking a government board a. technical personnel in the plant, trade, or
examination. industry concerned;
b. labor management representatives
Working Hours
Article 63. Venue of apprenticeship programs.
- Not exceed the minimum number of hours prescribed
Any firm, employer, group or association, industry organization
by law
or civic group wishing to organize an apprenticeship program
- Time spent in compulsory theoretical instruction is may choose from any of the following apprenticeship schemes as
considered as hours of work the training venue for apprentice:
- Apprentice may render overtime work provided:
o There are no available regular workers to do a. Apprenticeship conducted entirely by and within the
the job; and sponsoring firm, establishment or entity;
o He be paid accordingly. b. Apprenticeship entirely within a Department of Labor
and Employment training center or other public
Apprenticeship period is treated as probationary period training institution; or
c. Initial training in trade fundamentals in a training
Probationary Period center or other institution with subsequent actual work
participation within the sponsoring firm or entity
during the final stage of training.
- Span of time within which the employer is able to
determine employee’s fitness, characteristics, and
Venues of Apprenticeship Programs
habits to a given job.
- Period where one has to familiarize or learn the job; 1. Sponsoring firm’s or employer’s premises
- If the job is apprenticeable, then the probationary 2. Training centers of the DOLE; or
period is the apprenticeable period which is more 3. Public training institutions, or a combination of both.
than 3 months or less
- Upon completion of the apprenticeship of learnership ARTICLE 64. Sponsoring of apprenticeship program.
period, they may become regular employees.
- After the training period, they shall no longer Any of the apprenticeship schemes recognized herein may be
undergo a probationary period undertaken or sponsored by a single employer or firm or by a
o Otherwise, it is tantamount to double group or association thereof or by a civic organization. Actual
training of apprentices may be undertaken:
probation
a. In the premises of the sponsoring employer in the case
ARTICLE 62. Signing of apprenticeship agreement. of individual apprenticeship programs;
b. In the premises of one or several designated firms in the
Every apprenticeship agreement shall be signed by the employer
case of programs sponsored by a group or association of
or his agent, or by an authorized representative of any of the
employers or by a civic organization; or
recognized organizations, associations or groups and by the
c. In a Department of Labor and Employment training
apprentice.
center or other public training institution.
An apprenticeship agreement with a minor shall be signed in his
behalf by his parent or guardian, if the latter is not available, by
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Sponsorship of Apprenticeship Programs; Sine qua non DOLE - The plant apprenticeship committee shall have initial
prior approval responsibility for settling differences arising out of
such apprenticeship contract.
Apprenticeship programs can be sponsored by the following: o Has the authority to mediate and/or settle in
the 1st instance the differences between the
a. In the plant, shop, or premises of the employer firm employer and apprentice arising out of their
concerned if the apprenticeship program is organized agreement.
by an individual employer or firm;
b. In the premises of one or several firms designated for ARTICLE 68. Aptitude testing of applicants.
the purpose by the organizer of the program if such
organizer is an association of employers, civic Consonant with the minimum qualifications of apprentice-
groups, or the like applicants required under this Chapter, employers or entities
c. In a DOLE Training Center or other public training with duly recognized apprenticeship programs shall have
primary responsibility for providing appropriate aptitude tests in
institutions with which TESDA has made appropriate
the selection of apprentices. If they do not have adequate facilities
arrangements. for the purpose, the Department of Labor and Employment shall
perform the service free of charge.
Prior approval by DOLE of the proposed apprenticeship
program is a condition sine qua non before an apprenticeship ARTICLE 69. Responsibility for theoretical instruction.
agreement can be validly entered into.
Supplementary theoretical instruction to apprentices in cases
ARTICLE 65. Investigation of violation of apprenticeship where the program is undertaken in the plant may be done by the
agreement. employer. If the latter is not prepared to assume the
responsibility, the same may be delegated to an appropriate
Upon complaint of any interested person or upon its own government agency.
initiative, the appropriate agency of the Department of Labor
and Employment or its authorized representative shall Theoretical Instructions by Employer
investigate any violation of an apprenticeship agreement
pursuant to such rules and regulations as may be prescribed by Indicate his intention to assume such responsibility in the
the Secretary of Labor and Employment. apprenticeship standards of his program.
ARTICLE 66. Appeal to the Secretary of Labor and ARTICLE 70. Voluntary organization of apprenticeship
Employment. programs; exemptions.
The decision of the authorized agency of the Department of a. The organization of apprenticeship program shall be
Labor and Employment may be appealed by any aggrieved primarily a voluntary undertaking by employers;
person to the Secretary of Labor and Employment within five (5) b. When national security or particular requirements of
days from receipt of the decision. The decision of the Secretary of economic development so demand, the President of the
Labor and Employment shall be final and executory. Philippines may require compulsory training of
apprentices in certain trades, occupations, jobs or
Quasi-judicial Procedures employment levels where shortage of trained manpower
is deemed critical as determined by the Secretary of
1. Investigation Labor and Employment. Appropriate rules in this
o Upon complaint of any interested person or connection shall be promulgated by the Secretary of
upon its own initiative, the DOLE or its Labor and Employment as the need arises; and
authorized representative investigates any c. Where services of foreign technicians are utilized by
violation of an apprenticeship contract private companies in apprenticeable trades, said
2. Appeal companies are required to set up appropriate
apprenticeship programs.
o The SOLE has appellate jurisdiction over
decisions for violation of such contract Purpose of the law
ARTICLE 67. Exhaustion of administrative remedies.
- To discourage employment of aliens which will
No person shall institute any action for the enforcement of any likely displace a Filipino worker of his opportunity or
apprenticeship agreement or damages for breach of any such chance of employment.
agreement, unless he has exhausted all available administrative
remedies. ARTICLE 71. Deductibility of training costs.

Doctrine of Exhaustion of Administrative Remedies An additional deduction from taxable income of one-half (1/2) of
the value of labor training expenses incurred for developing the
- Where an administrative remedy is provided by law, productivity and efficiency of apprentices shall be granted to the
person or enterprise organizing an apprenticeship program:
relief must first be sought by exhausting such
Provided, That such program is duly recognized by the
remedies before the courts will act.
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Department of Labor and Employment: Provided, further, That there are no experienced there are experienced
such deduction shall not exceed ten (10%) percent of direct labor employees. employees.
wage: and Provided, finally, That the person or enterprise who OJT of a learner need not be supplemented by theoretical
wishes to avail himself or itself of this incentive should pay his
instruction.
apprentices the minimum wage.
ARTICLE 74. When learners may be hired.
Purpose of the law
Learners may be employed when no experienced workers are
Provide an incentive in the form of additional tax deduction to available, the employment of learners is necessary to prevent
persons or enterprises undertaking apprenticeship programs curtailment of employment opportunities, and the employment
subject to the following conditions: does not create unfair competition in terms of labor costs or
impair or lower working standards.
a. apprenticeship program undertaken by the employer
is recognized by the DOLE Employment of Learners
b. the apprentices should be paid the minimum wage;
and - When no experienced workers are available
c. the deduction should not exceed 10% of the total - In order to prevent curtailment of employment
direct labor wage expended by the employer during opportunities, and such will not create unfair
the taxable year. competition in terms of labor costs or impair lower
working standards.
ARTICLE 72. Apprentices without compensation.
Approval of Learnership Program
The Secretary of Labor and Employment may authorize the
hiring of apprentices without compensation whose training on the - Submission to the Apprenticeship Division of the
job is required by the school or training program curriculum or Regional Office concerned of the learnership
as requisite for graduation or board examination. program.
- Learnership program is subject to periodic inspection
Apprenticeship without compensation
by the SOLE or his duly authorized representatives.
a. A pre-requisite for graduation; or - Under R.A. 7796, the program must be approved by
b. A requirement for taking a government board TESDA.
examination
Employment of Learner-Minors
Chapter II
LEARNERS - A minor below 15 years of age shall not be eligible
for employment as a learner
ARTICLE 73. Learners defined. - Those below 18 may only be employed in non-
hazardous occupations
Learners are persons hired as trainees in semi-skilled and other
industrial occupations which are non-apprenticeable and which Cancellation of Learnership Programs
may be learned through practical training on the job in a
relatively short period of time which shall not exceed three (3) - SOLE may cancel a learnership program.
months. - If upon inquiry that the justification for the program
no longer exists.
Leaner
ARTICLE 75. Learnership agreement.
- Refer to definition under Art. 73
- Learnership programs must be approved by the Any employer desiring to employ learners shall enter into a
DOLE learnership agreement with them, which agreement shall include:

Learners vs. Apprentices a. The names and addresses of the learners;


b. The duration of the learnership period, which shall not
Learners Apprentices exceed three (3) months;
trained in non-apprenticeable trained in apprenticeable c. The wages or salary rates of the learners which shall
occupations. occupations. begin at not less than seventy-five percent (75%) of the
applicable minimum wage; and
always paid at not less than may be paid the full
d. A commitment to employ the learners if they so desire,
75% of minimum wage. minimum wage. as regular employees upon completion of the
Learners employed in piece Apprentices may not be paid learnership. All learners who have been allowed or
or incentive-rate jobs are paid in cases specified under Art. suffered to work during the first two (2) months shall be
in full for the work done. 72. deemed regular employees if training is terminated by
may be employed only when may be employed even if the employer before the end of the stipulated period
through no fault of the learners.
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The learnership agreement shall be subject to inspection by the Despite the aforementioned, he is still employable under
Secretary of Labor and Employment or his duly authorized the following conditions:
representative.
a. The employment is necessary in order to prevent
A learner who has worked during the first 2 months shall be curtailment of employment opportunities;
deemed a regular employee if training is terminated by the
b. Employment does not create unfair competition
employer before the end of the stipulated period through no fault
of the learner. in labor costs;
c. Employment will not impair or lower working
Parties to learnership agreement standards; and
d. Handicapped worker must be paid not less than
- Signed by the employer or his duly authorized agent 75% of the appropriate minimum wage.
and the learner
o If learner is a minor, signed by learner with Disabled Worker
conformity of his parent or guardian.
- Copies of learnership agreement furnished5 days Whose earning capacity is impaired by:
from execution to:
a. Mental, physical, or sensory deficiency; or
1. Learner;
b. Injury
2. TESDA; and
3. Apprenticeship Division Access to equal work opportunities
ARTICLE 76. Learners in piecework.
- A qualified disabled employee shall be subject to the
Learners employed in piece or incentive-rate jobs during the same terms and the conditions of the employment,
training period shall be paid in full for the work done. and the same compensation, privileges, benefits,
fringe benefits, incentives, allowances as a qualified
Compensation of learners and able-bodied person.
- No entity shall discriminate against a qualified
GR: Not less than 75% of the minimum wage disabled person by reason of disability in regard of:
a. Job application procedures;
XPN: if learner working on piece or incentive-rate jobs, they b. Hiring;
are entitled to full pay work done. c. Promotion or discharge of employees;
d. Employees’ compensation; and
ARTICLE 77. Penalty clause.
e. Privileges of employment.
Any violation of this Chapter or its implementing rules and
regulations shall be subject to the general penalty clause provided Incentives for employing disabled persons
for in this Code.
- Additional deduction from their gross income
Chapter III o 15% of the total amount paid as salaries and
HANDICAPPED WORKERS wages to disabled persons.

ARTICLE 78. Definition. ARTICLE 80. Employment agreement.

Handicapped workers are those whose earning capacity is Any employer who employs handicapped workers shall enter into
impaired by age or physical or mental deficiency or injury. an employment agreement with them, which agreement shall
include:
ARTICLE 79. (Superseded by Secs. 5 and 32 of R.A. 7277: AN
ACT PROVIDING FOR THE REHABILITATION, SELF- a. The names and addresses of the handicapped workers
DEVELOPMENT AND SELF-RELIANCE OF DISABLED to be employed;
PERSON AND THEIR INTEGRATION INTO THE b. The rate to be paid the handicapped workers which
MAINSTREAM OF SOCIETY AND FOR OTHER shall not be less than seventy five (75%) percent of the
PURPOSES.) applicable legal minimum wage;
c. The duration of employment period; and
Handicapped Worker d. The work to be performed by handicapped workers.

Whose earning capacity is impaired by: The employment agreement shall be subject to inspection by the
Secretary of Labor or his duly authorized representative.
a. Age;
b. Physical or mental deficiency; or Full wage rate for handicapped workers/disabled workers
c. Injury.
a. Labor Code: not less than 75% of the applicable
minimum wage
University of Santo Tomas Labor Law Review
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b. R.A. 7277: full amount of the minimum wage (this of work in the field cannot be determined with reasonable
prevails) certainty.

Copy of agreement furnished to the following: Coverage of Title I, Book III

a. Handicapped worker; and GR: Covers all employees in establishment.


b. DOLE-TESDA
XPN: not entitled to overtime pay (OTP), premium pay for
The SOLE or his authorized representative may inspect form rest days and holiday pay (PP), night shift differential
time to time the working conditions of handicapped workers pay (NSD), holiday pay (HP), service incentive leave
or persons with disabilities to verify compliance by the parties (SIL), and service charges.
with their employment agreement.
a. Government Employees;
ARTICLE 81. Eligibility for apprenticeship. b. Managerial Employees;
c. Officers and members of the managerial staff;
Subject to the appropriate provisions of this Code, handicapped d. Field personnel;
workers may be hired as apprentices or learners if their handicap e. Members of the family of the employer who are
is not such as to effectively impede the performance of job dependent on him for support;
operations in the particular occupations for which they are hired. f. Domestic helpers;
g. Persons in the personal service of another; and
Handicapped workers as apprentices or learners
h. Workers paid by results.
- Handicapped workers are eligible for employment as
Government Employees
apprentices or learners if their handicap is such that it
does not impede the performance of job operations in - Those employed by the national government or any
the particular trade or occupation which is the subject
of its political subdivisions including those employed
of the apprenticeship or learnership program in GOCCs.
Disability must be related to work for which he was hired. - Governed by Civil Service Law:

2 kinds of GOCCs:
- Otherwise, he is not considered as a handicapped or
disabled worker. a. GOCC with original charters: governed by Civil
BOOK THREE Service Law
b. GOCC without original charters: governed by
CONDITIONS OF EMPLOYMENT Labor Code

Title I Managerial Employees


WORKING CONDITIONS AND REST PERIODS
1. Their primary duty consists of the management of the
Chapter I establishment in which they are employed or of a
HOURS OF WORK department or sub-division thereof;
2. They customarily and regularly direct the work of
ARTICLE 82. Coverage.
two or more employees therein; and
The provisions of this Title shall apply to employees in all 3. They have the authority to hire or fire employees of
establishments and undertakings whether for profit or not, but lower rank; or their suggestions and
not to government employees, managerial employees, field recommendations as to hiring and firing and as to the
personnel, members of the family of the employer who are promotion or any other change of status of other
dependent on him for support, domestic helpers, persons in the employees, are given particular weight.
personal service of another, and workers who are paid by results - Employed as such by virtue of their special training
as determined by the Secretary of Labor in appropriate or expertise, experience, or knowledge and for
regulations.
positions which require the exercise of independent
As used herein, "managerial employees" refer to those whose judgment and discretion.
primary duty consists of the management of the establishment in
which they are employed or of a department or subdivision Officers or Members of managerial staff
thereof, and to other officers or members of the managerial staff.
1. The primary duty consists of the performance of
"Field personnel" shall refer to non-agricultural employees who work directly related to management policies of their
regularly perform their duties away from the principal place of employer;
business or branch office of the employer and whose actual hours 2. Customarily and regularly exercise discretion and
independent judgment;
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3. Regularly and directly assist a proprietor or a Piece work


managerial employee whose primary duty consists of
the management of the establishment in which he is o unit of work produced or the quantity
employed or subdivision thereof; or (ii) execute thereof.
under general supervision work along specialized or
technical lines requiring special training, experience, Task work
or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and o task itself; completion of work.
4. Who do not devote more than 20 percent of their ARTICLE 83. Normal hours of work.
hours worked in a work week to activities which are
not directly and closely related to the performance of The normal hours of work of any employee shall not exceed eight
the work described in paragraphs (1), (2) and (3) (8) hours a day.
above.
- Customarily and regularly exercise discretion and Health personnel in cities and municipalities with a population of
independent judgment, that is, their powers are not at least one million (1,000,000) or in hospitals and clinics with a
subject to evaluation, review, and final action by the bed capacity of at least one hundred (100) shall hold regular
office hours for eight (8) hours a day, for five (5) days a week,
department heads and other higher executives of the
exclusive of time for meals, except where the exigencies of the
company. service require that such personnel work for six (6) days or forty-
eight (48) hours, in which case, they shall be entitled to an
Domestic servants/persons in the personal service of another additional compensation of at least thirty percent (30%) of their
regular wage for work on the sixth day. For purposes of this
- perform such services in the employer's home which Article, "health personnel" shall include resident physicians,
are usually necessary or desirable for the maintenance nurses, nutritionists, dietitians, pharmacists, social workers,
and enjoyment thereof, or minister to the personal laboratory technicians, paramedical technicians, psychologists,
comfort, convenience, or safety of the employer as midwives, attendants and all other hospital or clinic personnel.
well as the members of his employer's household.
- Once a househelper is employed, she cannot later on The 8-hour requirement does not however, preclude the
employer in the exercise of its management prerogatives to
be transferred to the business undertaking of the
reduce the number of working hours, provided that there is no
employer. diminution of existing benefits.
- Persons in personal service need not render services
in or about the employer’s home. It is a management prerogative whenever exigencies require, to
change the working hours of its employees as loans as such
Field personnel prerogative is exercised in good faith.

- Non-agricultural employees who regularly perform Workdays can be reduced on account of serious business losses
their duties away from the principal place of business incurred by the company.
or branch office of the employer
- Actual work hours cannot be determined with Compressed work week (CWW) schedule 31
reasonable certainty.
- alternative arrangement whereby the normal working
- Free from the personal supervision of their employer
period during the week is reduced less than 6 days by
making the latter unable to determine the actual
the total number of hours worked during the week
number of work hours expended for the employer’s
shall remain at 48 hours. It has the following effects:
interest.
1. Work beyond 8 hours will not be
Members of the family compensable by OT provided that the total
number of hours worked per day shall not
- Should be dependent upon him for support exceed 12 hours a day or 48 hours a week
- Husband and wife, parents and children, other shall be subject to OT;
ascendants and descendants, brothers and sisters 2. Employees under a CWW scheme are
(whether full or half-blood.). entitled to meal periods not less than 60
minutes, rest days, holiday pay (HP), rest
Workers paid by results pay (RP), or leaves, in accordance with law
or applicable collective bargaining
- Includes those who are paid on piece-work, "takay," agreement or company policy or practice;
"pakiao" or task basis and
- Payment determined by the results of the work 3. Adoption of CWW scheme should not result
performed or the number of units produced in diminution of benefits.

31
DOLE Department Order No. 2 (2004).
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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A.Y. 2017 – 2018, 1st Semester a | 33

Purpose of limiting work hours interval is too brief to be utilized effectively and
gainfully in the employee's own interest.
- The law is designed not only to safeguard the health
and welfare of the laborer or employee, but in a way Instances of working time
minimize unemployment by forcing employers, in
cases where more than 8-hour operation is necessary, 1. Work for the benefit of the employer;
to utilize different shifts of employees working only 2. Compensable idle time;
for 8 hours each. 3. Travel time in connection with the work of the
employee;
Hospital employees not entitled to full weekly salary with paid 4. Time spent which an employee is inactive by reason
2 days’ off although they completed the 40-hour/5-day work of interruptions beyond his control (idle-time pay);
week.
Brownouts running for more than 20 minutes not
ARTICLE 84. Hours worked. treated as compensable working hours if:
Hours worked shall include (a) all time during which an a. The employees can leave their workplace or
employee is required to be on duty or to be at a prescribed go elsewhere within or without the work
workplace; and (b) all time during which an employee is suffered
premises; and
or permitted to work.
b. The employee can use the time effectively
Rest periods of short duration during working hours shall be for their own interest.
counted as hours worked. 5. Waiting time if waiting is an integral part of his work
where he is under the absolute control of the
Compensable hours worked employer;
6. When an employee who is required to remain on call
1. All time during which an employee is required to be in the employer’s premises or so close thereto that he
on duty or to be at the employer’s premises or to be at cannot use the time effectively and gainfully for his
a prescribed workplace; and own purpose shall be considered as working while on
2. All time during which an employee is suffered or call;
permitted to work 7. Sleeping time if the nature of the employee’s work
3. Rest periods of short duration (coffee break or snack allows sleeping without interrupting or prejudicing
time) the performance of his work;
8. Attendance in lectures, meetings, and training
= time during which an employee is actually working/ programs;
Principles in determining hours worked Not compensable if:
1. All hours are hours worked which the employee is a. attendance is outside employee’s regular
required to give his employer, regardless of whether working hours
or not such hours are spent in productive labor or b. attendance is in fact voluntary;
involve physical or mental exertion. c. The employee does not perform any
2. An employee need not leave the premises of the work productive work during such attendance
place in order that his rest period shall not be 9. Preliminary work and postliminary work if pursued
counted, it being enough that he stops working, may necessarily and primarily for the employer’s benefit;
rest completely and may leave his work place, to go 10. Rest period running from 5 – 20 minutes ; and
elsewhere, whether within or outside the premises of 11. Semestral breaks of teachers.
his work place.
3. If the work performed was necessary, or it benefited ARTICLE 85. Meal periods.
the employer, or the employee could not abandon his
work at the end of his normal working hours because Subject to such regulations as the Secretary of Labor may
he had no replacement, all time spent for such work prescribe, it shall be the duty of every employer to give his
shall be considered as hours worked, if the work was employees not less than sixty (60) minutes time-off for their
regular meals.
with the knowledge of his employer or immediate
supervisor. GR: Employees entitled to atleast 1 hour time-off for regular
4. The time during which an employee is inactive by meal which can be taken inside or outside the company
reason of interruptions in his work beyond his control premises.
shall be considered working time either if the
imminence of the resumption of work requires the - Meal periods not compensated
employee's presence at the place of work or if the
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XPN: Employer can prescribe shorter meal period of at least ARTICLE 87. Overtime work.
20 minutes if:
Work may be performed beyond eight (8) hours a day provided
1. Work is non-manual in nature or does not involve that the employee is paid for the overtime work, an additional
strenuous physical exertion; compensation equivalent to his regular wage plus at least twenty-
five percent (25%) thereof. Work performed beyond eight hours
2. Where the establishment regularly operates not less
on a holiday or rest day shall be paid an additional compensation
than 16 hours a day; equivalent to the rate of the first eight hours on a holiday or rest
3. In cases of actual impending emergencies or there is day plus at least thirty percent (30%) thereof.
urgent work to be performed on machineries,
equipment, or installation to avoid serious loss which Purpose of granting OT pay
the employer would otherwise suffer; and
4. Where the work is necessary to prevent serious loss - Additional compensation for work beyond the normal
of perishable goods. working hours

ARTICLE 86. Night shift differential. Overtime Work

Every employee shall be paid a night shift differential of not less - Service rendered in excess of an in addition to 8
than ten percent (10%) of his regular wage for each hour of work hours on ordinary working days
performed between ten o’clock in the evening and six o’clock in
the morning. Computation
Purpose of granting NSD  Basic (wage) x 100% = Premium
- Give premium to wok when an employee is supposed  Basic x 125% = Overtime
to be sleeping;
Working on holiday or rest day (not exceeding 8 hours)
- Working at night is violative of the law of nature for
it is the period for rest and sleep; Basic x 130% = Premium
- Greater burden on the worker;
- More strenuous and onerous; and Working on holiday or rest day (exceeding 8 hours)
- Night work has many inconveniences.
Basic x 169% = Overtime
Coverage
Condition for entitlement of OT pay
GR: all employees
- Entitlement must be established by sufficient proof
XPN:
Overtime pay of seaman
a. Government employees including those employed in
GOCCs with original charters; - Whether they actually rendered service in excess of
b. Employees of retail and service establishments said number of hours
regularly employing not more than five (5) workers; - Hours worked: actual service rendered on board.
c. Domestic helpers;
d. Persons in the personal service of another; Overtime pay of tugboat engineer
e. Managerial employees;
f. Officers and members of the managerial staff; - There must still be specific evidence showing that he
g. Field personnel and other employees whose time and had been working all that time beyond 8 hours.
performance is unsupervised by the employer;
h. Employees engaged on task or contract basis, purely Right to claim OT pay is not waivable
commission basis, or those who are paid a fixed
- Overtime pay is governed by the law and not by the
amount for performing work irrespective of the time
agreement of the parties.
consumed in the performance thereof; and
i. Members of the family of the employer who are
Principle of estoppel and laches not applicable
dependent upon him for support.
- The receipt of OT pay (payment for work done in
Computation excess of the 8-hour work) will not preclude the right
to NSD pay (payment for work done at night)
Basic Pay x 110% (for each hour
8 between 10:00pm to
6:00am)
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Overload work vs. Overtime work Compulsory OT work

Overload work Overtime work In addition to the cases specified under Art. 89, an additional
may be performed within or work rendered in excess of case would be:
outside 8 hours a day the normal working hours of
8 hours a day. f. When the OT work is necessary to avail of favorable
weather or environmental conditions where
performance or quality of work is dependent thereon.
Chinese overtime against public policy
If the worker willfully refuses to perform OT work in any of
- System of OT pay in which salaried employee’s the above instances, then he may legally be dismissed
regular rate is calculated by dividing his salary by the
total number of hours he works. - Tantamount to an act of insubordination
- The greater number of hours, the lower the rate of - Highest form of disloyalty against the country if such
pay per hour. work is needed to meet national emergency.

ARTICLE 88. Undertime not offset by overtime. ARTICLE 90. Computation of additional compensation.

Undertime work on any particular day shall not be offset by For purposes of computing overtime and other additional
overtime work on any other day. Permission given to the remuneration as required by this Chapter, the "regular wage" of
employee to go on leave on some other day of the week shall not an employee shall include the cash wage only, without deduction
exempt the employer from paying the additional compensation on account of facilities provided by the employer.
required in this Chapter.
Regular Wage
Purpose of prohibition undertime offset by overtime
- All payments which the parties have agreed shall be
- Offsetting the overtime with undertime and at the received during the work week, including piecework
same time charging said under time to the accrued wages, differential payments for working at
leave is unfair and cannot be done. undesirable times, such as at night or on Sundays and
- Great advantage of the employer for it will exempt holidays and the cost of board and lodging
him from paying additional pay for OT work. customarily furnished the employee.
- Does not include cost-of-living allowance (COLA),
ARTICLE 89. Emergency overtime work. longevity pay, or other fringe benefits.

Any employee may be required by the employer to perform Chapter II


overtime work in any of the following cases: WEEKLY REST PERIODS

a. When the country is at war or when any other national ARTICLE 91. Right to weekly rest day.
or local emergency has been declared by the National
Assembly or the Chief Executive; a. It shall be the duty of every employer, whether
b. When it is necessary to prevent loss of life or property operating for profit or not, to provide each of his
or in case of imminent danger to public safety due to an employees a rest period of not less than twenty-four (24)
actual or impending emergency in the locality caused by consecutive hours after every six (6) consecutive normal
serious accidents, fire, flood, typhoon, earthquake, work days.
epidemic, or other disaster or calamity; b. The employer shall determine and schedule the weekly
c. When there is urgent work to be performed on rest day of his employees subject to collective
machines, installations, or equipment, in order to avoid bargaining agreement and to such rules and regulations
serious loss or damage to the employer or some other as the Secretary of Labor and Employment may
cause of similar nature; provide. However, the employer shall respect the
d. When the work is necessary to prevent loss or damage preference of employees as to their weekly rest day
to perishable goods; and when such preference is based on religious grounds.
e. Where the completion or continuation of the work
started before the eighth hour is necessary to prevent Purpose of the law
serious obstruction or prejudice to the business or
operations of the employer. - Needed by employee to rejuvenate and revitalize his
lost energy in order to raise the rate of his output.
Any employee required to render overtime work under this
Article shall be paid the additional compensation required in this Weekly rest day
Chapter.
- Every employer shall give his employees a rest
period of not less than 24 consecutive hours after
every 6 consecutive normal work days.
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Rest day not necessarily Sunday or holiday If the employee volunteers to work on his rest day under the
circumstances, he shall express such desire in writing, subject
- All establishments and enterprises may operate or to the provision regarding additional compensation.
open for business on Sundays and holidays provided
that the employees are given the weekly rest day and ARTICLE 93. Compensation for rest day, Sunday or holiday
the benefits provided under the law, work.

Preference of employee a. Where an employee is made or permitted to work on his


scheduled rest day, he shall be paid an additional
- The preference of the employee as to his weekly day compensation of at least thirty percent (30%) of his
regular wage. An employee shall be entitled to such
of rest shall be respected by the employer if the same
additional compensation for work performed on
is based on religious grounds. Sunday only when it is his established rest day.
b. When the nature of the work of the employee is such
XPN: if the choice will inevitably result in serious that he has no regular workdays and no regular rest
prejudice or obstruction to the operation of the days can be scheduled, he shall be paid an additional
undertaking, and the employer cannot normally be compensation of at least thirty percent (30%) of his
expected to resort to other remedial measure, the regular wage for work performed on Sundays and
employer may so schedule the weekly rest day of holidays.
their choice for atleast 2 days in a month. c. Work performed on any special holiday shall be paid an
additional compensation of at least thirty percent (30%)
- The employee shall make known his preference to the of the regular wage of the employee. Where such
holiday work falls on the employee’s scheduled rest day,
employer:
he shall be entitled to an additional compensation of at
a. In writing; and least fifty per cent (50%) of his regular wage.
b. Atleast 7 days before the desired effectivity of d. Where the collective bargaining agreement or other
the initial rest day preferred. applicable employment contract stipulates the payment
of a higher premium pay than that prescribed under
ARTICLE 92. When employer may require work on a rest day. this Article, the employer shall pay such higher rate.
The employer may require his employees to work on any day:
Premium Pay (or Differential Compensation)
a. In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, - Additional pay granted to a covered employee for
epidemic or other disaster or calamity to prevent loss of
services rendered on holiday and rest days
life and property, or imminent danger to public safety;
b. In cases of urgent work to be performed on the - Paid for extra work performed outside the normally
machinery, equipment, or installation, to avoid serious scheduled daylight working hours, or at other
loss which the employer would otherwise suffer; personal inconvenience to the employee.
c. In the event of abnormal pressure of work due to - A form of punitive pay for it was intended to punish
special circumstances, where the employer cannot the employer who made extra demands on his
ordinarily be expected to resort to other measures; employees and encourage him to schedule his
d. To prevent loss or damage to perishable goods; operations more carefully.
e. Where the nature of the work requires continuous
operations and the stoppage of work may result in Premium pay for work on a rest day, Sunday, or holiday
irreparable injury or loss to the employer; and
f. Under other circumstances analogous or similar to the GR: all employees entitled to premium pay
foregoing as determined by the Secretary of Labor and
Employment.
a. XPN:
Compulsory work on rest day government employees;
b. Managerial employees;
GR: Work on a rest day is a voluntary undertaking. c. Officers or members of the managerial staff;
d. Domestic servants and those in personal service;
XPN: In addition to the grounds under Art. 92: e. Workers paid by results or on piece work; and
f. Non-agricultural field personnel.
g. when the work is necessary to avail of a favorable
weather condition or environmental conditions Rates:
where performance or quality of work is
dependent thereon. A. Additional compensation for work on a scheduled
work rest day:
No employee shall be required against his will to work on his
scheduled rest day except as provided under the laws. Basic x 130% = Premium
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B. Additional Compensation for work on Sunday only Purpose of Holiday pay


when it falls on the scheduled rest day:
- Secure payment of undiminished monthly income
Basic x 130% = Premium undisturbed by any work interruption.
- Conducive to greater output.
C. Additional compensation for work on a Sunday and - Benefitting the daily-paid workers whose income is
holidays when nature of work of an employee is such circumscribed by the principles of “no work, no pay.”
that he has no regular workdays and rest days scheduled:
Regular and Special Holidays
Basic x 130% = Premium
Regular holidays
D. Additional compensation for work on any legal
holiday: New Year’s Day January 1
Maundy Thursday Movable Date
Basic x 130% - Premium Good Friday Movable Date
Eidul Fitr Movable Date
E. Additional compensation where holiday work also
Araw ng Kagitingan April 9
falls on scheduled rest day:
Labor Day May 1
Basic x 150% = Premium Independence Day June 12
National Heroes’ Day Last Sunday of August
F. If the CBA or other employment contracts provide for Bonifacio Day November 30
higher premiums, such as 70% of the minimum wage Christmas Day December 25
Rizal Day December 30
Basic x 170% = Premium

Chapter III For movable holidays, the President shall issue a proclamation
HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE atleast 6 months prior to the holiday concerned, specific date
CHARGES
shall be declared as a non-working day.
ARTICLE 94. Right to holiday pay.
Special Holidays
a. Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service Ninoy Aquino Day August 21
establishments regularly employing less than ten (10) All Saints Day November 1
workers; Last day of the year December 31
b. The employer may require an employee to work on any
holiday but such employee shall be paid a compensation
equivalent to twice his regular rate; and Regular Holiday vs. Special Holiday
c. As used in this Article, "holiday" includes: New Year’s
Day, Maundy Thursday, Good Friday, the ninth of
Regular Holiday Special Holiday
April, the first of May, the twelfth of June, the fourth of
July, the thirtieth of November, the twenty-fifth and if employee does not report, if employee does not report,
thirtieth of December and the day designated by law for entitled to 100% of regular not entitled to any
holding a general election. wage. compensation.
if employee reports, entitled if employee reports, entitled
Legal holiday to 200% of regular wage. to 130% (or 150% if special
holiday falls on rest day).
- Day designated or set apart by the legislature, for a
purpose within the meaning of the term “holiday,” in
order to commemorate an important event. Rates of Holiday pay

Holiday pay If worked on regular holiday (not exceeding 8 hours)

- Form of premium accorded to an employee who does Basic x 200% = Premium


not work on regular holidays.
- If he works, he is entitled to an additional If worked on regular holiday (exceeding 8 hours)
compensation over his regular or basic remuneration
known as premium pay. Basic x 260% = Overtime
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If worked on regular holiday which is also scheduled rest day g. Field personnel and other employees whose time and
(not exceeding 8 hours) performance is unsupervised by the employer;
h. Workers paid by results; and
Basic x 260% = Premium i. Members of the family of the employer who are
dependent upon him for support.
If worked on regular holiday which is also scheduled rest day
(exceeding 8 hours) Effects of Absences on Holiday pay successive regular holiday

Basic x 338% = Overtime If employee (EE) on leave of  (entitled to holiday pay)


absence (LOA) with pay
If not worked on regular holiday = 100% If EE on LOA without pay on  (not entitled to holiday pay)
the day immediately
Monthly-paid employees are not excluded from the benefits of
preceding the regular holiday
holiday pay.
If immediately preceding the 
Operative Fact Doctrine holiday is a non-working day
or the scheduled rest day of
- Non-payment of holiday pay benefits pursuant to the an employee and should have
rule which excluded employees uniformly paid by the worked during the non-
month from the same, was in compliance with such working day/rest day
presumably valid rule until it was declared null and If there are 2 successive 
void. regular holidays (Holy
Thursday and Good Friday),
Monthly –paid vs. Daily-paid employees and EE absents himself from
work without pay on the day
Monthly-paid Daily-paid immediately preceding the 1st
whose salary includes paid on the days he actually regular holiday.
payments for every day of the worked except unworked If there are 2 successive  (2nd holiday pay)
month although he does not regular holidays when he is regular holidays (Holy
regularly work on his rest present or on leave of Thursday and Good Friday),
days, Sundays, and holidays. absence with pay on the and EE works on the 1st
working day immediately holiday.
preceding the legal holiday.

Effect of business closure on holiday pay


Significance of Divisor in determining payment of holiday pay
for monthly paid employees a. In cases of temporary or periodic shutdown and
temporary cessation of work of an establishment, as
- Significant in determining whether or not the holiday when a yearly inventory or when the repair or
pay has already been included in the salary of the cleaning of machineries and equipment is undertaken,
monthly-paid employees. the regular holidays falling within the period shall be
a. 6-day working period: The divisor of 314 indicates compensated in accordance with this Rule.
that the 11 legal holidays have already been included b. The regular holiday during the cessation of operation
in the salary of monthly-paid employees. of an enterprise due to business reverses as
b. 5-day working period: The divisor of 261 indicates authorized by the Secretary of Labor and
that the 11 legal holidays have already been included Employment may not be paid by the employer.
in the salary of the monthly-paid employees.
Double Holiday Pay
GR: all employees entitled to holiday pay
- If 2 regular holidays fall on the same day, the
XPN: employees should be paid 400% of the basic wage for
both holidays provided:
a. Government employees including those working in o Has worked on that day; or
GOCCs with original charters; o Was on LOA with pay; or
b. Employees of retail and service establishments o Was on authorized absence on the day prior
regularly employing less than ten (10) workers; to the regular holiday.
c. Domestic helpers;
d. Persons in the personal service of another;
e. Managerial employees;
f. Officers and members of a managerial staff;
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ARTICLE 95. Right to service incentive leave. b. Employees of retail and service establishments
regularly employing less than ten (10) workers;
a. Every employee who has rendered at least one year of c. Domestic helpers;
service shall be entitled to a yearly service incentive d. Persons in the personal service of another;
leave of five days with pay.
b. This provision shall not apply to those who are already
e. Managerial employees;
enjoying the benefit herein provided, those enjoying f. Officers and members of a managerial staff;
vacation leave with pay of at least five days and those g. Field personnel and other employees whose time and
employed in establishments regularly employing less performance is unsupervised by the employer;
than ten employees or in establishments exempted from h. Workers paid by results;
granting this benefit by the Secretary of Labor and i. Members of the family of the employer who are
Employment after considering the viability or financial dependent upon him for support; and
condition of such establishment. j. Those enjoying vacation leave with pay of atleast 5
c. The grant of benefit in excess of that provided herein
days.
shall not be made a subject of arbitration or any court
or administrative action.
Leave with pay
Purpose of the law
- Economic benefits stipulated in the CBA are, by their
- Afford the employee a chance to get a much needed nature, intended to be replacements for regular
rest to replenish his worn out energies and acquire a income which otherwise would not be earned because
new vitality to enable him to efficiently perform his an employee is not working during the period of said
duties, and not merely to give him additional salary leaves.
or bounty - Employee entitled to full compensation during the
period of his leave of absence.
Right to Service Incentive Leave - (e.g.) victims of RA 9262 are entitled to paid leave of
absence for 10 days.
- 5-day SIL with pay
- Employees who have rendered atleast 1 year of ARTICLE 96. Service charges.
service which
All service charges collected by hotels, restaurants and similar
- may be used as sick or vacation leave establishments shall be distributed at the rate of eighty-five
- Right only starts a year after commencement of the percent (85%) for all covered employees and fifteen percent
service. (15%) for management. The share of the employees shall be
- No law that makes the grant of vacation leave equally distributed among them. In case the service charge is
mandatory on the part of the management. abolished, the share of the covered employees shall be considered
- Claim for vacation pay can only be availed through integrated in their wages.
an agreement or through voluntary unilateral grant by
the employer. Applicability
- Vacation and sick leaves when accorded by the
- Applies only to business establishments collecting
employer becomes a matter of right and not a mere
service charges.
privilege on the part of the employees.
GR: All employees are covered, regardless of their
Meaning of “atleast 1 year service”
position, designation, employment stats, irrespective of
- 12 months, whether continuous or broken, reckoned the method by which their wages are paid.
from the day the employee started working, including
XPN: managerial employees
authorized absences and paid regular holidays.
Distribution of service charges
Convertible to cash equivalent
a. Covered employees: 85%
- convertible to its cash equivalent based on the salary
b. Management: 15% to answer for losses, breakages,
rate at the date of the commutation.
and for distribution to managerial employees (at the
- Commutable if unused at the end of the year
discretion of management).
GR: employees who have rendered atleast 1 year of service are
Shall be done not less than once every 2 weeks or twice a
entitled to SIL.
month at intervals not exceeding 16 days
XPN:

a. Government employees including those working in


GOCCs with original charters;
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Abolition of service charges of board, lodging, or other facilities customarily


furnished by the employer to the employee. "Fair and
Share shall be considered integrated in their wages reasonable value" shall not include any profit to the
employer, or to any person affiliated with the employer.
Basis of amount: average monthly share of each employee for
the past 12 months immediately preceding the abolition or Wages vs. Salaries
withdrawal of such charges.
Wages Salaries
Advantages of the law compensation for manual higher grade of employment,
labor, skilled or unskilled, or a superior grade of
a. Highly paid employees are excluded from the benefit; paid at stated times and services and implies a
b. Those entitled will benefit equally from the service measured by the day, week, position or office
charges, unlike before when those receiving higher month, or season
salaries were getting more service charges; Art. 1708 of NCC: not Art. 1708 of NCC: subject to
c. Equal distribution is easier to compute and less subject to garnishment/attachment
susceptible to manipulation; and garnishment/attachment
d. In case the service charge is abolished, the workers Labor Code: wage and salary are synonymous, Distinction is
are guaranteed continued enjoyment of the benefit only a matter of legal semantics.
through integration.

Title II Twin attributes of wages:


WAGES
a. Cash wage – ready money paid by the employer for
Chapter I services rendered by the employee.
PRELIMINARY MATTERS
b. Facilities – articles or services customarily given for
ARTICLE 97. Definitions.
the benefit of the employee and are voluntarily
accepted by him. (e.g.) rice ration, housing,
As used in this Title: recreational facilities, medical treatment to
dependents, school facilities, cost of light, water, fuel,
a. "Person" means an individual, partnership, association, meals, or snacks.
corporation, business trust, legal representatives, or any
organized group of persons. Wages also cover all benefits of the employees under the
b. "Employer" includes any person acting directly or CBA.
indirectly in the interest of an employer in relation to an
employee and shall include the government and all its Facilities as part of wages; requirements for deduction
branches, subdivisions and instrumentalities, all
government-owned or controlled corporations and Facilities could be deducted if employer complied with
institutions, as well as non-profit private institutions, or
organizations.
the following:
c. "Employee" includes any individual employed by an
employer. a. proof must be shown that such facilities are
d. "Agriculture" includes farming in all its branches and, customarily furnished by the trade; and
among other things, includes cultivation and tillage of b. provision of deductible facilities must be
soil, dairying, the production, cultivation, growing and voluntarily accepted in writing
harvesting of any agricultural and horticultural
commodities, the raising of livestock or poultry, and any Facilities must be charged at a fair and reasonable value.
practices performed by a farmer on a farm as an
incident to or in conjunction with such farming Determination of facilities beneficial to employer or employee
operations, but does not include the manufacturing or
processing of sugar, coconuts, abaca, tobacco, - Articles or services which are not of benefit to the
pineapples or other farm products. employee cannot be charges against the cash wage of
e. "Employ" includes to suffer or permit to work. an employee.
f. "Wage" paid to any employee shall mean the
- Articles or tools of the trade are primarily for the
remuneration or earnings, however designated, capable
of being expressed in terms of money, whether fixed or
benefit of the employer or necessary to the conduct of
ascertained on a time, task, piece, or commission basis, his business cannot be deducted from the employer’s
or other method of calculating the same, which is wages because they are not considered as facilities.
payable by an employer to an employee under a written
or unwritten contract of employment for work done or Acceptance of facilities is voluntary.
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,
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Wages vs. Tips Productivity bonus not legally demandable

Wages Tips - Something extra for which no specific additional


directly paid to an employee directly paid to an employee services rendered by any particular employee.
by the employer by the customer
mandatory voluntary Productivity bonus vs. Commission

Productivity bonus Commission


Supplements not part of wages tied to the productivity or intimately related to or
profit generation of the directly proportional to the
- Extra remunerations or benefits given to an employee employer corporation extent or energy of an
- Not considered as part of wages, their value cannot employee’s endeavors
be deducted from the cash wage of an employee not directly dependent on the paid upon specific results
extent an individual achieved by a salesman-
Controlling test for the grant (whether it is a facility or employee exerts himself employee
supplement) is its purpose. something extra for which no percentage of the sales closed
specific additional services by a salesman and operates as
Bonuses are rendered an integral part of such
salesman’s basic pay
- Payment in excess of regular or guaranteed wages.
- Granted to an employee for his tangible contribution
to the success of the employer’s business, without Bonus treated as not part of wages
which the employer may not realize bigger profits.
- Act of generosity for which a worker should be - if bonus is paid only upon realization of profits or
grateful and thankful. amount of production or output.
Bonus as demandable obligation Voluntary and contractual bonuses equivalent to 13 th month
pay
- Payment of bonus is a management function, not a
demandable and enforceable obligation. Extras, casuals, and seasonal workers entitled to 13 th month
- It is a voluntary undertaking and entirely dependent pay
on the financial capability of the employer to give it.
- all rank and file employees of employers are entitled
XPN: Bonus can be demanded as a matter of right to the benefits regardless of their position,
designation, or employment status, and irrespective
a. If it is given without any condition; hence it is a of the method which their wages are paid, provided
part of the wage or salary; they have worked for atleast 1 month during the
b. If the grant is the result of an agreement, such as calendar year.
the CBA;
c. If it is given on account of company policy or 13th month pay
practice; and
d. If the grant is mandated by law. Employees are entitled to 13th month pay regardless of amount
of compensation they receive and of the nature of their
employment.

Bonus treated as part of wages Employees entitled to 13th Employers not covered to
month pay give 13th month pay
a. If it is an additional compensation which the a. piece-rate workers; a. government and any of
employer promise and agreed to give without any b. receiving regular its political subdivisions;
condition imposed for its payment; and commission (provided b. employers already paying
b. If it has ripened into a practice through the passage of he has worked for their employees a 13th
a considerable length of time and has consequently atleast 1 month during month pay or its
become part of the terms and conditions of the calendar year; equivalent at the time of
employment or by virtue of its long and regular c. dismissed or resigned issuance of 13th month
concession employee prior to the pay law;
payment of 13th month c. employers of household
If the employer suffered business losses, it is not obliged
pay; helpers and persons in
to pay such benefits.
d. government employees personal service of
working as part-time in another;
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private sector; and d. employers of those who Standards for wage rate determination
e. those with multiple are paid on purely
employers commission, boundary, - Minimum wage rates are prescribed by the Regional
f. private school teachers. or task basis; Tripartite Wages and Productivity Board (RTWPB)
e. employers of seafarers; a. Demand for living wages;
and b. Wage adjustments vis-à-vis consumer-price or cost-
f. employers to managerial of-living index;
employees. c. Cost of living and changes or increases therein;
d. Needs of workers and their families;
e. Need to induce industries to invest in the countryside;
f. Improvements in standards of living;
ARTICLE 98. Application of Title. g. Prevailing wage levels;
h. Fair return of capital invested and capacity to pay
This Title shall not apply to farm tenancy or leasehold, domestic employees;
service and persons working in their respective homes in needle i. Effects on employment generation and family
work or in any cottage industry duly registered in accordance
income; and
with law.
j. Equitable distribution of income and wealth.
Applicability
Economically feasible
Title II of Book III of the Labor Code does not apply to:
- Not prevent the industry from operating efficiently
a. Farm tenancy or leasehold; and prosperously over the long run.
b. Domestic helpers;
c. Persons in the personal service of another; Two methods in determining wages
d. Homeworkers engaged in needlework;
a. Floor-wage: involves the fixing of a determinate
e. Workers in establishments duly registered with the
amount that would be added to the prevailing
National Cottage Industries and Development
statutory minimum wage; or
Authority (NACIDA); and
b. Salary-ceiling: involves wage adjustment applied to
f. Workers in duly registered cooperatives when so
employees receiving a certain denominated salary
recommended by the Bureau of Cooperative
ceiling.
Development and upon approval by the SOLE.
Two methods of payment
Chapter II
MINIMUM WAGE RATES
a. Time wages: pay by the hour, day, or month, without
ARTICLE 99. Regional minimum wages. specifying the work to be done; or
b. Production wages: pay related to the amount of work
The minimum wage rates for agricultural and non-agricultural the individual or group performs regardless of the
employees and workers in each and every region of the country time involved in its performance.
shall be those prescribed by the Regional Tripartite Wages and
Productivity Boards. (As amended by Section 3, Republic Act No. Minimum wage is non-negotiable and non-waivable
6727, June 9, 1989).
- Minimum wage fixed by law is mandatory
Purpose of the law - The enactment is compulsory in nature in order to
insure decent living conditions.
- Promote welfare of the workers in the minimum
wage law; NCR (effective October 7, 2017):
- Equalize the bargaining power between the employer
and the employee; a. Non-agricultural: P512.00
- Preventive action, not remedial, for it settles the wage b. Agricultural: P475.00
rates before industrial disputes;
- Set a barrier below which wage may not fall, in order
to develop competition on a high level of efficiency
ARTICLE 100. Prohibition against elimination or diminution of
rather than competition on a low level of wages; and benefits.
- Encourages competition above the lower limits set by
law. 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.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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Principle of non-diminution of benefits period of time as the same may ripen into company
practice.
- Concerned only with benefits already enjoyed on the
date of the promulgation of the law or of the ARTICLE 101. Payment by results.
effectivity of the wage order, and does not purport to
apply to situations arising thereafter. The Secretary of Labor and Employment shall regulate the
payment of wages by results, including pakiao, piecework, and
Purpose of non-diminution of benefits 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
- Prohibit employers from reducing benefits already
employers’ organizations.
enjoyed by the employees
Purpose of the law
If there is an impelling reasonable justification of the
diminution or reduction because of an emergency or - Insure the payment of fair and reasonable wage rates
exigency, or business losses, such diminution or reduction to “worker paid by results” who should be protected
would be valid, provided it is duly approved by the SOLE from unjust and unfair employers whose only
or his duly authorized representative. concern is their interest.
Salary increase should not be construed as promotion. Piece-rate workers vs. Task workers
Promotion vs. Demotion Piece-rate Task
paid a standard amount for paid in terms of completion
Promotion Demotion
every piece or unit of work of the work
Advancement from one movement from one position
produced regardless of the
position to another with an to another involving issuance
time expended in producing
increase in duties and of appointment with
the same
responsibilities and usually diminution in duties,
accompanied by an increase responsibilities, status, or
in salary. rank which may or may not Chapter III
involve reduction in salary. PAYMENT OF WAGES

ARTICLE 102. Forms of payment.


Facilities
No employer shall pay the wages of an employee by means of
- Articles or services for the benefit of the employee or promissory notes, vouchers, coupons, tokens, tickets, chits, or any
his family but shall not include tools of trade or object other than legal tender, even when expressly requested by
articles or service primarily for the benefit of the the employee.
employer necessary to conduct of the employer’s
Payment of wages by check or money order shall be allowed
business. when such manner of payment is customary on the date of
- The fair reasonable value of facilities is determined to effectivity of this Code, or is necessary because of special
be the cost of operation and maintenance, including circumstances as specified in appropriate regulations to be issued
adequate depreciation plus reasonable allowance. by the Secretary of Labor and Employment or as stipulated in a
collective bargaining agreement.
Stoplock gate or non-chargeability clause
Payment of wages by check or money order shall be allowed
- Benefits derived from law are exclusive benefits when:
arrived at through negotiation and agreement
- Having entered into an agreement with its employees, a. Such manner is customary on the day of effectivity of
an employer may not be allowed to renege on its this code; or
obligation under a CBA should, at the same time, the b. Necessary because of special circumstances as
law grants the employees the same or better terms specified in appropriate regulations to be issued by
and conditions of employment. the SOLE.

Legal Tender

Benefit acquired through company practice - Currency sufficient under the law to effect payment
of a debt or obligation
- Employee can demand as a matter of right benefits - Debtor can compel a creditor to accept in payment of
granted by the employer for a considerable, long a debt money, when tendered in the right amount
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- All notes, coins, currencies issued by the Central payment of wages on or within the time herein provided cannot
Bank be made, the employer shall pay the wages immediately after
- Check is not a legal tender such force majeure or circumstances have ceased. No employer
shall make payment with less frequency than once a month.
Fair day’s wage for a fair day’s labor
The payment of wages of employees engaged to perform a task
which cannot be completed in two (2) weeks shall be subject to
- Payment of wages is based primarily on the work the following conditions, in the absence of a collective bargaining
performed by him for the benefit of the employer agreement or arbitration award:
- If he does not perform his work, he should not expect
any wage from the employer. 1. That payments are made at intervals not exceeding
sixteen (16) days, in proportion to the amount of work
Payment of wage through automated teller machine (ATM) of completed;
banks allowed. 2. That final settlement is made upon completion of the
work.
a. With written consent of the employee;
b. Employees are given reasonable time to withdraw Frequency of payment
their wages from the bank facility;
c. Received within the period and in the amount - Paid twice a month at intervals not exceeding 16
prescribed under the Labor Code; days, unless prevented by force majeure or
d. There is a bank or ATM facility within the radius of 1 circumstances beyond control, in which case the
kilometer from the workplace; employer shall pay the wages immediately after the
e. Upon request of the employee, employer shall issue a force majeure or circumstances have ceased.
record evidencing payment of wages, benefits, and
Frequency of payment for task work
deduction for a particular period;
f. ATM system of payment will not result in diminution a. Payments are made at intervals not exceeding 16
of benefits and privileges; and days, in proportion to the amount of work completed;
g. Employer shall assume full responsibility in case and
wage protection provisions of law and regulations are b. That final settlement is made upon completion of
not complied with under the agreement. work.
Payment if wages by check allowed under the following Purpose of the frequency of payment
circumstances:
- Enable the worker to use the money to meet the basic
a. Manner is customary on the date of the effectivity of necessities of life
the Labor Code;
- Undue delay in the payment of wages constitutes
b. Stipulated in the CBA; and unjust and inhumane condition of work for which the
c. Where the following conditions are complied with:
employer may be held liable.
1. There is a bank or facility for encashment within
the radius of 1 km from the workplace; ARTICLE 104. Place of payment.
2. Employer or his representative does not receive
any pecuniary benefit directly or indirectly from Payment of wages shall be made at or near the place of
the arrangement; undertaking, except as otherwise provided by such regulations as
3. Employee is given reasonable time to withdraw the Secretary of Labor and Employment may prescribe under
their wages during banking hours which time is conditions to ensure greater protection of wages.
treated as compensable hours worked; and
Place of payment
4. Payment of check is with written consent of the
employees. - At or near the place of undertaking
Penalty for violation: Payment made at another place may be made when:
Art. 288 of the Revised Penal Code (RPC): a. There are actual or impending emergencies;
b. Employer provides free transportation to the
 Imprisonment: arresto mayor
employees back and forth; or
 Fine: P200 – P500 c. Under any analogous circumstance, provided that the
ARTICLE 103. Time of payment.
time spent by the employees in collecting their wages
shall be considered as compensable work hours.
Wages shall be paid at least once every two (2) weeks or twice a
month at intervals not exceeding sixteen (16) days. If on account
of force majeure or circumstances beyond the employer’s control,
University of Santo Tomas Labor Law Review
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Payment made in recreational establishments of the contractor and of the latter’s subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
- Employer is prohibited from paying the wages of an
employee in a bar, night or day club, drinking In the event that the contractor or subcontractor fails to pay the
establishment, massage clinic, dance hall, or other wages of his employees in accordance with this Code, the
employer shall be jointly and severally liable with his contractor
similar places where games are played with stakes of or subcontractor to such employees to the extent of the work
money or things representing money. performed under the contract, in the same manner and extent
- Prohibition does not apply to those working in said that he is liable to employees directly employed by him.
places
- Purpose: to prevent employee from unnecessarily The Secretary of Labor and Employment may, by appropriate
spending his hard-earned money in these areas of regulations, restrict or prohibit the contracting-out of labor to
temptation that may cause miserable starvation to protect the rights of workers established under this Code. In so
him and his family. prohibiting or restricting, he may make appropriate distinctions
between labor-only contracting and job contracting as well as
ARTICLE 105. Direct payment of wages. differentiations within these types of contracting and determine
who among the parties involved shall be considered the employer
Wages shall be paid directly to the workers to whom they are for purposes of this Code, to prevent any violation or
due, except: circumvention of any provision of this Code.

a. In cases of force majeure rendering such payment There is "labor-only" contracting where the person supplying
impossible or under other special circumstances to be workers to an employer does not have substantial capital or
determined by the Secretary of Labor and Employment investment in the form of tools, equipment, machineries, work
in appropriate regulations, in which case, the worker premises, among others, and the workers recruited and placed by
may be paid through another person under written such person are performing activities which are directly related
authority given by the worker for the purpose; or to the principal business of such employer. In such cases, the
person or intermediary shall be considered merely as an agent of
b. Where the worker has died, in which case, the employer
may pay the wages of the deceased worker to the heirs the employer who shall be responsible to the workers in the same
manner and extent as if the latter were directly employed by him.
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 Purpose of the law
deceased and the fact that they are his heirs, to the
exclusion of all other persons. If any of the heirs is a - Prohibition of labor-only contracting and creation of
minor, the affidavit shall be executed on his behalf by EER between employer and the contractor’s workers
his natural guardian or next-of-kin. The affidavit shall for the protection of the laborers.
be presented to the employer who shall make payment
through the Secretary of Labor and Employment or his Labor-only Contracting (non-permissible)
representative. The representative of the Secretary of
Labor and Employment shall act as referee in dividing There is labor-only contracting when the contractor supplying
the amount paid among the heirs. The payment of workers to an employer:
wages under this Article shall absolve the employer of
any further liability with respect to the amount paid. a. Does not have substantial capital or investment (in
the form of tools, equipment, machineries, work
GR: Direct payment to workers of wages. premises, and other materials) to actually perform the
job, work, or service under its own account and
XPN: Payment made to another person: responsibility; or
b. The workers recruited and placed by such person are
a. Where the employee authorizes his employer in
performing activities which are directly related to the
writing to pay his wages to a member of his family;
b. When payment to another person is authorized by principal business of such employer.
law; “Directly related activities” vs. “Activities necessary or
c. Payments for insurance premium of the employee
desirable in the usual business or trade”
and union dues where the right to check-off has been
recognized by the employer in accordance with a activities necessary or
collective bargaining agreement or when such Directly related activities desirable in the usual trade or
payment is authorized in writing by the individual- business
employees concerned; or governed by Art. 106 governed by Art. 280
d. In case of death of the employee. standard used in determining determine regular or casual
ARTICLE 106. Contractor or subcontractor.
whether or not labor-only employment
contracting exists
Whenever an employer enters into a contract with another
person for the performance of the former’s work, the employees
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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Legal effect of finding contractor a “labor-only contractor” Independent contractor

- Contractor considered as an agent of the employer; - Those who undertake job contracting.
- Employer is directly liable to the employees of the - Exercises independent employment, contracting to do
labor-only contractor; a piece of work according to their own methods and
- Establishes an EER between the employer and without being subject to control of their employer
employees of the labor-only contractor; and except as to the result of their work.
- Holds both the employer and the labor-only - Person who has no capital or money of his own to
contractor liable to the employee. pay his laborers or to comply with his obligations
with them, ho files no bond to answer for the
In-house agency fulfillment of his contracts with his employer falls
short of the requisites necessary.
- Refers to a contractor or subcontractor engaged in the
supply of labor which: ARTICLE 108. Posting of bond.
a. Is owned, managed, or controlled by the
principal; and An employer or indirect employer may require the contractor or
b. Operates solely for the principal owning, subcontractor to furnish a bond equal to the cost of labor under
managing, or controlling it. contract, on condition that the bond will answer for the wages
due the employees should the contractor or subcontractor, as the
- Contracting through an in-house agency is contrary to case may be, fail to pay the same.
law or public policy.
Purpose of the law
Job Contracting (permissible)
- Protect employees from economic exploits by
a. The independent contractor carries on an independent unscrupulous contractors or subcontractors who may
business and undertakes the contract work on his own declare at will that they are losing due to financial
account under his own responsibility according to his difficulties; thus employees may not be paid their
own manner and method, free from the control and wages.
direction of his employer or principal in all matters
connected with the performance of the work except Amount of bond posted
as to the results thereof; and
b. The independent contractor has substantial capital or - Equal to the cost of labor under the contract.
investment in the form of tools, equipment, - Should the contractor or subcontractor fail to pay the
machineries, work premises, and other materials wages due the employees, the bond shall answer.
which are necessary in the conduct of his business.
Failure to post a bond
The law does not require both substantial capital and
investments. - Employer must answer for whatever liabilities the
contractor may have incurred to his employees
There is no EER in job contracting. - Employer may claim reimbursement from the
contractor as to whatever amount he has paid.
- Employer is merely an indirect employer of the
employees of the independent contractor. ARTICLE 109. Solidary liability.
- It creates an EER between the employer and
employee of the contractor if the contractor fails to The provisions of existing laws to the contrary notwithstanding,
pay the wages of his employees. every employer or indirect employer shall be held responsible
with his contractor or subcontractor for any violation of any
ARTICLE 107. Indirect employer. provision of this Code. For purposes of determining the extent of
their civil liability under this Chapter, they shall be considered as
The provisions of the immediately preceding article shall likewise direct employers.
apply to any person, partnership, association or corporation
which, not being an employer, contracts with an independent Liability for unpaid wages
contractor for the performance of any work, task, job or project.
- Indirect employer is solidarily liable with the
Indirect or statutory employer independent contractor for any violation thereof.

- Enters into a contract with an independent contractor Purpose of solidary liability:


for the performance of any work, task, job, or project
not directly related to the employer’s business. - Guarantees the payment of the worker’s performance
of any work, task, job, or project, giving them ample
protection as mandated by the 1987 Constitution.
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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Insolvency nor a prerequisite for solidary liability do not attach to specific property
properties
- The rule is: in Job contracting, the employer is jointly bestows upon the preferred Art. 110 does not establish a
and severally liable with the contractor. creditor an advantage of lien
having his credit satisfied
Onus probandi: contractor first ahead of other claims
which may be established
- To prove that he/it has substantial capital, investment,
against the debtor after a
tools, etc.
formal declaration of
ARTICLE 110. Worker preference in case of bankruptcy. bankruptcy of judicial
declaration pursuant to Art.
In the event of bankruptcy or liquidation of an employer’s 110
business, his workers shall enjoy first preference as regards their not an interest in property interest in property
wages and other monetary claims, any provisions of law to the cannot exist or operate except may exist against the property
contrary notwithstanding. Such unpaid wages and monetary where the debtor is unable to of a solvent debtor
claims shall be paid in full before claims of the government and pay his debts in full
other creditors may be paid. (As amended by Section 1, Republic
Act No. 6715, March 21, 1989)
a creditor having an inferior if property encumbered with
credit who levies and does a lien is sold, it is sold subject
Purpose of worker’s enjoyment of first preference not sell subject to the superior to the lien.
preference
- It is but humane and partakes of the divine that labor, no COA against any other has a right of action against
as human beings, must be treated over and above creditor any person who takes the
chattels, machineries, and other kinds of properties property upon which he has a
and the interests of the employer who can afford to lien
survive the hardships of life better than their workers.

Art. 110 in relation to NCC GR: Mortgage is superior to a worker’s preference, for a
preference of credit applies only to claims which do not attach
- Art. 110 may still be invoked in the absence of to specific properties; while a lien creates a specific charge on
formal declaration of bankruptcy or judicial particular property.
liquidation order.
XPN: if there is a formal declaration of bankruptcy or judicial
Formal declaration of bankruptcy must be present in order that liquidation, mortgage credits are subordinate to worker’s
the worker’s preference may be enforced. claim.

Inapplicability of Art. 110 in extrajudicial proceedings Taxes vis-à-vis money claims of workers

- In effect puts the worker in a better position than the - The claim of the BIR for unpaid tobacco inspection
state which could only assert its own preference in fees constitutes a claim for unpaid internal revenue
case of a judicial proceeding. taxes which gives rise to a tax lien upon all the
properties and assets, movable and immovable, of the
Superiority of tax lien principle taxpayer. But the claim for separation pay may be
given effect only after the BIR’s claim for unpaid
- Art. 110 creates no lien, but only a preference of tobacco inspection fees shall have been satisfied out
credit in favor of employees. of the products so manufactures by the insolvent.32
- During bankruptcy, insolvency, or liquidation
proceedings involving the existing properties of the ARTICLE 111. Attorney’s fees.
employer, the employees have the advantage of
having their unpaid wages satisfied ahead of certain In cases of unlawful withholding of wages, the culpable party
claims which may be proved therein. may be assessed attorney’s fees equivalent to ten percent of the
- In the absence of bankruptcy or judicial liquidation of amount of wages recovered.
the employer, the claim of the government predicated
It shall be unlawful for any person to demand or accept, in any
on a tax lien is superior to the claim of a private judicial or administrative proceedings for the recovery of wages,
litigant predicated on a judgment. attorney’s fees which exceed ten percent of the amount of wages
recovered.
Preference of credit vs. Lien

Preference of credit Lien


applies only to claims which creates a charge on a specific 32
Republic vs. Peralta, 150 SCRA 37.
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10% attorney’s fees ARTICLE 113. Wage deduction.

- Situation: judicial or administrative proceedings for No employer, in his own behalf or in behalf of any person, shall
the recovery of wages. make any deduction from the wages of his employees, except:
- Upon termination of the proceedings, the law allows
In cases where the worker is insured with his consent by the
a deduction for attorney’s fees of 10% from the total employer, and the deduction is to recompense the employer for
amount due to a winning party. the amount paid by him as premium on the insurance;
- The extraordinary concept of attorney’s fees in the
nature of indemnity for damages ordered by the Court For union dues, in cases where the right of the worker or his
to be paid by the losing party in a litigation is the one union to check-off has been recognized by the employer or
contemplated under Art. 111. authorized in writing by the individual worker concerned; and
- Attorney’s fees may be awarded only when the
In cases where the employer is authorized by law or regulations
withholding of wages is unlawful.
issued by the Secretary of Labor and Employment.
Court may fix attorney’s fees below 10%
Purpose of the law
Standard for payment of attorney’s fees:
- Prevent or forestall the commission of unwarranted
a. Must be reasonable (must have a bearing on the practices of employers by making unnecessary
importance of the subject matter in controversy); deductions without the employee’s knowledge or
b. Extent of the services rendered; and authorization.
c. Professional standing of the lawyer.
GR: Wage deduction not allowed
When the questions involved in the litigation are neither
XPN:
novel nor difficult, and considering the quantity and
character of the services rendered and the length of time a. Deductions are authorized by law, including
the case has been pending, an award of exactly 10% may deductions for insurance premiums and union dues
be considered utterly excessive and unreasonable; hence, where the right to check-off has been recognized by
the Court may reduce it. the employer or authorized in writing by the
individual employee himself;
Lawyer hired on contingent basis has no right to interfere in
b. Deductions are with written authorization of the
the implementation of their claims in his efforts to collect
employees for payment to a 3rd person and employer
attorney’s fees not due him.
agrees so, provided that the employer does not
A non-lawyer of the Philippine bar who represents a party receive any pecuniary benefit, directly or indirectly,
does not by itself entitle him to attorney’s fees. from the transaction;
c. Deductions made in pursuant to the order of the
When the award of moral and exemplary damages is court;
eliminated, the award for attorney’s fees must likewise be d. Deductions, as agency fees, from salary of non-
eliminated. member provided that he accepts the benefits in the
CBA; and
Chapter IV e. Deductions are made for habitual tardiness or
PROHIBITIONS REGARDING WAGES absence as a form of disciplinary measure, (known as
docking).
ARTICLE 112. Non-interference in disposal of wages.
A. Authorized deductions by law:
No employer shall limit or otherwise interfere with the freedom
of any employee to dispose of his wages. He shall not in any 1. Deductions for facilities;
manner force, compel, or oblige his employees to purchase
2. Deductions for loss or damage to tools, materials,
merchandise, commodities or other property from any other
person, or otherwise make use of any store or services of such equipment supplied by the employer in trade,
employer or any other person. occupation, or business where the practice of making
deduction is recognized;
Employer’s malpractice is penalized under the RPC: 3. Deductions for taxes;
4. Deductions for social security, Philhealth, and Pag-
 Fine: P200.00 – P500.00 IBIG premiums;
 Imprisonment: arresto mayor 5. Deduction for employee’s compensation premiums;
6. Deduction for a demandable debt due to the
employer; and
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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A.Y. 2017 – 2018, 1st Semester a | 49

7. Deductions made in case of judgment against the Illegal Deposits


debtor-worker where wages may be subject of
attachment or execution but only debts incurred for - A taxi company that requires its drivers to make daily
food, shelter, clothing, and medical attendance. deposits to defray any shortage in their boundary.

Check-off ARTICLE 115. Limitations.

- System by which union dues and other assessments No deduction from the deposits of an employee for the actual
are deducted from the employee’s wage by the amount of the loss or damage shall be made unless the employee
has been heard thereon, and his responsibility has been clearly
employer upon authorization from the worker or by shown.
mandate of law.
- Duration: good only as the employees remain The right to be heard
members of the union concerned
- Compulsory check-off - No one shall be personally bound until he has been
o May be enforced with the consent of the afforded
employer or by authority in writing by the
employees Conditions for making deductions from wages or deposits of
an employee
B. Deductions for absences and tardiness (Principle of No-
Work No-Pay) a. Employee concerned must be clearly shown to be
responsible for the loss or damage; and
- “fair day’s wage for a fair day’s labor” remains as the b. Employees should be given reasonable opportunity to
basic factor in determining employee’s wages. show cause why deduction should not be made.
- If no work performed by the employee, there can be
no wage to be paid. ARTICLE 116. Withholding of wages and kickbacks prohibited.
o Unless the worker is able and willing to
work but was illegally dismissed or locked- It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce him
out or illegally prevented from working.
to give up any part of his wages by force, stealth, intimidation,
threat or by any other means whatsoever without the worker’s
Illegal Deductions consent.
- 25% deduction representing employer’s share in Kickback
procuring job placement for employee.
- Non-payment of stock subscription cannot be offset - Compulsory withholding of a portion of an
against a monetary claim of an employee against the employee’s wages by the employer or his agent as a
company. condition to maintain employment or as a bribe for
obtaining a job.
ARTICLE 114. Deposits for loss or damage. - Unlawful because it transgresses right to poverty and
No employer shall require his worker to make deposits from protection of labor envisioned in the Constitution
which deductions shall be made for the reimbursement of loss of
or damage to tools, materials, or equipment supplied by the Prohibition has a social impact for it affects not only the
employer, except when the employer is engaged in such trades, employee, but also his family.
occupations or business where the practice of making deductions
or requiring deposits is a recognized one, or is necessary or Authorized withholding of wages
desirable as determined by the Secretary of Labor and
Employment in appropriate rules and regulations. a. Withholding of wages for a debt that is due and
demandable; and
Conditions for deductions for loss or damage: b. Execution or attachment for debts incurred for food,
shelter, clothing, and medical attendance.
a. The employee concerned is clearly shown to be
responsible for the loss or damage; ARTICLE 117. Deduction to ensure employment.
b. Employee is given reasonable opportunity to show
cause why deduction should be made; It shall be unlawful to make any deduction from the wages of any
c. Amount of such deduction is fair and reasonable and employee for the benefit of the employer or his representative or
shall not exceed the actual loss or damage; and intermediary as consideration of a promise of employment or
retention in employment.
d. Deduction from the wages does not exceed 20% of
the employee’s wages in a week.
University of Santo Tomas Labor Law Review
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Deduction to retain employment - When the minimum output rates of non-time workers
have been fixed by DOLE, CBA, or in accordance
- Deductions made from wages as a consideration of a with Sec. 8, Rule VII, Book III of the IRR of the
promise for employment or retention of employment Labor Code, employer may dispense with the keeping
is unlawful (also a form of kickback). of time records.
ARTICLE 118. Retaliatory measures. Place of records
It shall be unlawful for an employer to refuse to pay or reduce - All employment records shall be kept and maintained
the wages and benefits, discharge or in any manner discriminate
in or about the premises of the workplace.
against any employee who has filed any complaint or instituted
any proceeding under this Title or has testified or is about to - Main or branch office or establishment, where
testify in such proceedings. employees concerned are regularly assigned.

Unlawful retaliatory acts include: Preservation of records

a. Refusal to pay or reduction of wages or benefits due; - All employment records shall be kept, maintained
b. Discharge an employee (illegal dismissal); and and preserved for at least 3 years from the date of last
c. Discriminate against an employee. entry in the records.

If retaliatory act has a reasonable and causal connection with Chapter V


the constitutional right of workers to self-organization, then it WAGE STUDIES, WAGE AGREEMENTS AND WAGE
DETERMINATION
is treated as an unfair labor practice. ARTICLE 120. Creation of National Wages and Productivity
Commission.
Penalty for retaliatory acts
There is hereby created a National Wages and Productivity
- Art. 288 of the Labor Code Commission, hereinafter referred to as the Commission, which
shall be attached to the Department of Labor and Employment
ARTICLE 119. False reporting. (DOLE) for policy and program coordination. (As amended by
Republic Act No. 6727, June 9, 1989).
It shall be unlawful for any person to make any statement,
report, or record filed or kept pursuant to the provisions of this Composition of National Wage and Productivity Commission
Code knowing such statement, report or record to be false in any (NWPC):
material respect.
1. SOLE (as ex-officio chairman);
False Reporting
2. Director-General of NEDA (as ex-officio vice-
- Employer is mandated by law to keep records that are chairman);
genuine and authentic in all its material respect. 3. 2 members each from workers and employers sectors
who shall be appointed by the President for a term of
Records include: 5 years upon recommendation of SOLE on the basis
of the list submitted by the employees and employers
1. Payrolls; and sectors; and
2. Time records 4. Executive Director of NWPC Secretariat (as
member).
Time records of executives
Same rank, emoluments, allowances, and other benefits as
- Managerial employees, officers, or members of the those prescribed by law for labor and management
managerial staff, as well as non-agricultural field representatives in the Employees Compensation
personnel, need not be required to keep individual Commission.
time records, provided that a record of their daily
attendance or the days they actually reported for the ARTICLE 121. Powers and functions of the Commission.
woks is kept by the employer.
The Commission shall have the following powers and functions:
Time Records of workers paid by results a. To act as the national consultative and advisory body to
the President of the Philippines and Congress on
- Employers shall keep and maintain their production matters relating to wages, incomes and productivity;
records showing their daily output, gross earning, and b. To formulate policies and guidelines on wages, incomes
the actual number of working hours spent by the and productivity improvement at the enterprise,
employees on the job. industry and national levels;
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c. To prescribe rules and guidelines for the determination The Regional Boards shall have the following powers and
of appropriate minimum wage and productivity functions in their respective territorial jurisdictions:
measures at the regional, provincial, or industry levels;
d. To review regional wage levels set by the Regional a. To develop plans, programs and projects relative to
Tripartite Wages and Productivity Boards to determine wages, incomes and productivity improvement for their
if these are in accordance with prescribed guidelines respective regions;
and national development plans; b. To determine and fix minimum wage rates applicable in
e. To undertake studies, researches and surveys necessary their regions, provinces or industries therein and to
for the attainment of its functions and objectives, and to issue the corresponding wage orders, subject to
collect and compile data and periodically disseminate guidelines issued by the Commission;
information on wages and productivity and other c. To undertake studies, researches, and surveys necessary
related information, including, but not limited to, for the attainment of their functions, objectives and
employment, cost-of-living, labor costs, investments and programs, and to collect and compile data on wages,
returns; incomes, productivity and other related information
f. To review plans and programs of the Regional and periodically disseminate the same;
Tripartite Wages and Productivity Boards to determine d. To coordinate with the other Regional Boards as may be
whether these are consistent with national development necessary to attain the policy and intention of this Code;
plans; e. To receive, process and act on applications for
g. To exercise technical and administrative supervision exemption from prescribed wage rates as may be
over the Regional Tripartite Wages and Productivity provided by law or any Wage Order; and
Boards; f. To exercise such other powers and functions as may be
h. To call, from time to time, a national tripartite necessary to carry out their mandate under this Code.
conference of representatives of government, workers
and employers for the consideration of measures to Implementation of the plans, programs, and projects of the
promote wage rationalization and productivity; and Regional Boards referred to in the second paragraph, letter (a) of
i. To exercise such powers and functions as may be this Article, shall be through the respective regional offices of the
necessary to implement this Act. Department of Labor and Employment within their territorial
jurisdiction; Provided, however, That the Regional Boards shall
The Commission shall be composed of the Secretary of Labor have technical supervision over the regional office of the
and Employment as ex-officio chairman, the Director-General of Department of Labor and Employment with respect to the
the National Economic and Development Authority (NEDA) as implementation of said plans, programs and projects.
ex-officio vice-chairman, and two (2) members each from
workers’ and employers’ sectors who shall be appointed by the Each Regional Board shall be composed of the Regional Director
President of the Philippines upon recommendation of the of the Department of Labor and Employment as chairman, the
Secretary of Labor and Employment to be made on the basis of Regional Directors of the National Economic and Development
the list of nominees submitted by the workers’ and employers’ Authority and the Department of Trade and Industry as vice-
sectors, respectively, and who shall serve for a term of five (5) chairmen and two (2) members each from workers’ and
years. The Executive Director of the Commission shall also be a employers’ sectors who shall be appointed by the President of the
member of the Commission. Philippines, upon the recommendation of the Secretary of Labor
and Employment, to be made on the basis of the list of nominees
The Commission shall be assisted by a Secretariat to be headed submitted by the workers’ and employers’ sectors, respectively,
by an Executive Director and two (2) Deputy Directors, who shall and who shall serve for a term of five (5) years.
be appointed by the President of the Philippines, upon the
recommendation of the Secretary of Labor and Employment. Each Regional Board to be headed by its chairman shall be
assisted by a Secretariat. (As amended by Republic Act No. 6727,
The Executive Director shall have the same rank, salary, benefits June 9, 1989)
and other emoluments as that of a Department Assistant
Secretary, while the Deputy Directors shall have the same rank, Composition of the Regional Wages and Productivity Board
salary, benefits and other emoluments as that of a Bureau (RWPB):
Director. The members of the Commission representing labor
and management shall have the same rank, emoluments, 1. RD of DOLE (as chairman);
allowances and other benefits as those prescribed by law for 2. RDs of NEDA and DTI (as vice-chairman);
labor and management representatives in the Employees’ 3. 2 members each from workers and employers sectors
Compensation Commission. (As amended by Republic Act No.
who shall be appointed by the President for a term of
6727, June 9, 1989)
5 years upon recommendation of SOLE on the basis
ARTICLE 122. Creation of Regional Tripartite Wages and of the list submitted by the employees and employers
Productivity Boards. sectors

There is hereby created Regional Tripartite Wages and Each Board is assisted by a Secretariat.
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.
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Nature of the Board Frequency of Wage Order

- Tripartite body whose composition comes from 3 - May not be disturbed for 12 months from its
sectors: effectivity, and no petition for wage increase shall be
a. Government; entertained within the same period.
b. Labor; and
c. Management. XPN: supervening conditions

Purpose of the Law Effectivity of Wage Order

- Conduct a continuing study of wage rates in various - Take effect 15 days after its publication in atleast 1
agricultural and non-agricultural industries all over newspaper of general circulation in the region.
the country for the purpose of ascertaining whether a
substantial number of employees in a given industry Appeal to the Commissioner
are receiving wages.
- Keystone to collective bargaining. - Filing of a verified appeal not later than 10 days from
the date of publication of the order.
ARTICLE 123. Wage Order. - Appeal shall be accompanied by a memorandum of
appeal which shall state the grounds relied upon the
Whenever conditions in the region so warrant, the Regional arguments in support thereof.
Board shall investigate and study all pertinent facts; and based
on the standards and criteria herein prescribed, shall proceed to Grounds for Appeal
determine whether a Wage Order should be issued. Any such
Wage Order shall take effect after fifteen (15) days from its a. Non-conformity with the prescribed guidelines or
complete publication in at least one (1) newspaper of general procedures;
circulation in the region. b. Questions of law; and
In the performance of its wage-determining functions, the c. Grave abuse of discretion
Regional Board shall conduct public hearings/consultations,
giving notices to employees’ and employers’ groups, provincial, Period to act on appeal
city and municipal officials and other interested parties.
- Immediately upon receipt of the appeal, Board
Any party aggrieved by the Wage Order issued by the Regional Secretariat shall transmit to the Commission
Board may appeal such order to the Commission within ten (10) Secretariat.
calendar days from the publication of such order. It shall be - Commission shall decide 60 days from filing.
mandatory for the Commission to decide such appeal within sixty
(60) calendar days from the filing thereof. Effect of appeal
The filing of the appeal does not stay the order unless the person - not operate to stay the Order
appealing such order shall file with the Commission, an XPN: party appealing shall file with the Commission
undertaking with a surety or sureties satisfactory to the
Commission for the payment to the employees affected by the
an undertaking with a surety or sureties (surety bond)
order of the corresponding increase, in the event such order is satisfactory to the Commission for payment to
affirmed. (As amended by Republic Act No. 6727, June 9, 1989) employees affected by the Order of the corresponding
increase, in the event such order is affirmed.
Issuance of Wage Order
Public hearing conducted for wage determination
- Within 30 days after conclusion of the last hearing,
Board shall decide on the merits of the petitions, and - otherwise, violation of Article 123 of the LC and due
issue a wage order establishing the minimum wage process.
rates to be paid by employers in the region which
shall in no case be lower than the statutory minimum Inspections conducted for compliance with Wage Order
wage rates.
- to determine whether employees are paid the
Contents: prescribed minimum wage rates and other benefits
granted by law or the Wage Order.
1. Region, province, or industry to which the minimum a. Unionized companies: DOLE inspectors
wage rates prescribed therein shall apply; and accompanied by president or any responsible
2. Exemptions, if any. officer of the recognized unit or interested union
during inspection.
b. Non-unionized: carried out in the presence of a
worker representing workers in said company.
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Complaints for non-compliance with wage increases f. Improvements in standards of living;


g. The prevailing wage levels;
- Filed with Regional Offices of the Department h. Fair return of the capital invested and capacity to pay
having jurisdiction over the workplace and shall be of employers;
subject to enforcement proceedings. i. Effects on employment generation and family income;
and
j. The equitable distribution of income and wealth along
Penalty for non-compliance
the imperatives of economic and social development.
 Fine: P25,000.00 – P100,000.00 The wages prescribed in accordance with the provisions of this
 Imprisonment: 2 years – 4 years Title shall be the standard prevailing minimum wages in every
 Any person convicted under this Act shall not be region. These wages shall include wages varying with industries,
entitled to the benefits provided under the Probation provinces or localities if in the judgment of the Regional Board,
Law. conditions make such local differentiation proper and necessary
 Employer to pay an amount double the unpaid to effectuate the purpose of this Title.
benefits owing to the employee. Any person, company, corporation, partnership or any other
entity engaged in business shall file and register annually with the
Doctrine of double indemnity; Concept and computation appropriate Regional Board, Commission and the National
Statistics Office, an itemized listing of their labor component,
- Payment to a concerned employee of the prescribed specifying the names of their workers and employees below the
increase or adjustments in the wage rate which was managerial level, including learners, apprentices and
not paid by an employer in an amount equivalent to disabled/handicapped workers who were hired under the terms
twice the unpaid benefits owing to such employee. prescribed in the employment contracts, and their corresponding
- Unpaid benefit serves as the principal basis for salaries and wages.
computing the double indemnity.
Where the application of any prescribed wage increase by virtue
- Partial payment: basis of computation of double
of a law or wage order issued by any Regional Board results in
indemnity is the balance of the unpaid benefits. distortions of the wage structure within an establishment, the
employer and the union shall negotiate to correct the distortions.
Application of RA 6727 to special group of workers Any dispute arising from wage distortions shall be resolved
through the grievance procedure under their collective
Apprentice, learners, and handicapped workers bargaining agreement and, if it remains unresolved, through
voluntary arbitration. Unless otherwise agreed by the parties in
- Wages cannot be less than 75% of the applicable writing, such dispute shall be decided by the voluntary
statutory minimum wage rates. arbitrators within ten (10) calendar days from the time said
dispute was referred to voluntary arbitration.
Contracts for construction projects and for security, janitorial,
and similar services In cases where there are no collective agreements or recognized
labor unions, the employers and workers shall endeavor to
- Increases shall be borne by the principals or clients of correct such distortions. Any dispute arising therefrom shall be
the construction/service contractors and the contract settled through the National Conciliation and Mediation Board
and, if it remains unresolved after ten (10) calendar days of
shall be deemed amended accordingly.
conciliation, shall be referred to the appropriate branch of the
- If principal or client fails to pay, construction/service National Labor Relations Commission (NLRC). It shall be
contractors shall be jointly and severally liable with mandatory for the NLRC to conduct continuous hearings and
his principal or client. decide the dispute within twenty (20) calendar days from the time
said dispute is submitted for compulsory arbitration.
ARTICLE 124. Standards/Criteria for minimum wage fixing.
The pendency of a dispute arising from a wage distortion shall
The regional minimum wages to be established by the Regional not in any way delay the applicability of any increase in
Board shall be as nearly adequate as is economically feasible to prescribed wage rates pursuant to the provisions of law or wage
maintain the minimum standards of living necessary for the order.
health, efficiency and general well-being of the employees within
the framework of the national economic and social development As used herein, a wage distortion shall mean a situation where an
program. In the determination of such regional minimum wages, increase in prescribed wage rates results in the elimination or
the Regional Board shall, among other relevant factors, consider severe contraction of intentional quantitative differences in wage
the following: or salary rates between and among employee groups in an
establishment as to effectively obliterate the distinctions
a. The demand for living wages; embodied in such wage structure based on skills, length of
b. Wage adjustment vis-à-vis the consumer price index; service, or other logical bases of differentiation.
c. The cost of living and changes or increases therein;
d. The needs of workers and their families; All workers paid by result, including those who are paid on
e. The need to induce industries to invest in the piecework, takay, pakiao or task basis, shall receive not less than
countryside;
University of Santo Tomas Labor Law Review
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the prescribed wage rates per eight (8) hours of work a day, or a Formula in determining distortion adjustment
proportion thereof for working less than eight (8) hours.
Minimum Wage Distortion
= % x Prescribed Increased =
All recognized learnership and apprenticeship agreements shall Actual Salary Adjustment
be considered automatically modified insofar as their wage
clauses are concerned to reflect the prescribed wage rates. (As Wage Distortion is a non-strikeable issue.
amended by Republic Act No. 6727, June 9, 1989)
ARTICLE 125. Freedom to bargain.
Wage Distortion
No wage order shall be construed to prevent workers in
- Presupposes an increase in the compensation of the particular firms or enterprises or industries from bargaining for
lower pay class in an office hierarchy without a higher wages with their respective employers. (As amended by
corresponding raise for high-level employees in the Republic Act No. 6727, June 9, 1989)
same region of the country, resulting in the
elimination or severe diminution of the distinction Freedom to bargain
between 2 groups or classes.
- Disparity in wages between employees holding - No Wage Order issued shall be construed to prevent
similar positions but in different regions is NOT workers from bargaining for higher wages with their
wage distortion. respective employers. What is prohibited is
- Elements: bargaining for wages below the floor set by law or
a. An existing hierarchy of positions with Wage Order. Worker is free to bargain for higher
corresponding salary rates; wages which right still subsists.
b. Significant change or increase in the salary rate
Employee may be paid a higher minimum wage under the
of a lower pay class without a corresponding
following instances:
increase in the salary rate of a higher one;
c. Elimination of the distinction between the 2 a. By CBA;
groups or classes; and b. By voluntary or compulsory arbitration award;
d. Distortion exists in the same region of the c. By assumption of jurisdiction award;
country. d. By company policy or practice; or
e. By productivity incentives program or agreement
Settlement of wage distortion
pursuant to RA 6971.
Unionized establishment Non-unionized establishment
Credibility clause in Wage Orders
1. Grievance machinery 1. employer and employee
2. Voluntary arbitration shall endeavor to correct The law allows the parties to apply wage and allowance
the wage distortion increases stipulated in the CBA to any statutory wage and
2. National Conciliation and allowance adjustments during the effectivity of such
Mediation Board agreement
(NCMB)
3. NLRC XPN: parties agree that such increases shall be exclusive
of any wage and allowance increases that may be
provided by law as a result of any economic change.
Pendency of dispute does not delay the applicability of any
wage increase prescribed pursuant to provisions of law or ARTICLE 126. Prohibition against injunction.
Wage Order.
No preliminary or permanent injunction or temporary
Negotiated wage increases to correct wage distortion is restraining order may be issued by any court, tribunal or other
allowed. entity against any proceedings before the Commission or the
Regional Boards. (As amended by Republic Act No. 6727, June 9,
- Recognition and validation of wage increases given 1989)
by the employers either unilaterally or as a result of
Purpose of the law
collective bargaining negotiations for the purpose of
correcting wage distortion is in keeping with public a. Proceedings before the Commission or the Board are
policy of encouraging employers to grant wage and beyond the reach of injunctive powers of judicial or
allowance increases to their employers which are quasi-judicial bodies.
higher than the minimum rates of increases b. For the Commission to perform their functions
prescribed by statute or administrative regulation. speedily without regard to unnecessary interventions
which may tremendously affect the wage-fixing
University of Santo Tomas Labor Law Review
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functions necessary to maintain peace and harmony twenty-four hours, a hearing shall be conducted to
in the working world. determine whether an order for the stoppage of work or
suspension of operations shall be lifted or not. In case
ARTICLE 127. Non-diminution of benefits. the violation is attributable to the fault of the employer,
he shall pay the employees concerned their salaries or
No wage order issued by any regional board shall provide for wages during the period of such stoppage of work or
wage rates lower than the statutory minimum wage rates suspension of operation.
prescribed by Congress. (As amended by Republic Act No. 6727, d. It shall be unlawful for any person or entity to obstruct,
June 9, 1989) impede, delay or otherwise render ineffective the orders
of the Secretary of Labor and Employment or his duly
Principle of non-diminution of benefits authorized representatives issued pursuant to the
authority granted under this Article, and no inferior
c. Board’s power to fix a wage is limited that it should court or entity shall issue temporary or permanent
not be less than what has been prescribed by injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement
Congress.
orders issued in accordance with this Article.
e. Any government employee found guilty of violation of,
Chapter VI
or abuse of authority, under this Article shall, after
ADMINISTRATION AND ENFORCEMENT
appropriate administrative investigation, be subject to
ARTICLE 128. Visitorial and enforcement power.
summary dismissal from the service.
f. The Secretary of Labor and Employment may, by
a. The Secretary of Labor and Employment or his duly
appropriate regulations, require employers to keep and
authorized representatives, including labor regulation
maintain such employment records as may be necessary
officers, shall have access to employer’s records and
in aid of his visitorial and enforcement powers under
premises at any time of the day or night whenever work
this Code.
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
Powers granted under Article 128 in the nature of quasi-
determine violations or which may aid in the judicial power
enforcement of this Code and of any labor law, wage
order or rules and regulations issued pursuant thereto. 1. Visitorial power; and
b. Notwithstanding the provisions of Articles 129 and 217 2. Enforcement power
of this Code to the contrary, and in cases where the
relationship of employer-employee still exists, the A. Visitorial Power
Secretary of Labor and Employment or his duly
authorized representatives shall have the power to issue a. exercise of power of inspection
compliance orders to give effect to the labor standards b. SOLE or his duly authorized representative shall:
provisions of this Code and other labor legislation based 1. Have access to employer’s records and premises
on the findings of labor employment and enforcement at any time of the day or night whenever work is
officers or industrial safety engineers made in the
being undertaken wherein;
course of inspection. The Secretary or his duly
authorized representatives shall issue writs of execution
2. Right to copy therefrom; and
to the appropriate authority for the enforcement of 3. To question any employee and investigate any
their orders, except in cases where the employer fact, condition, or matter which may be
contests the findings of the labor employment and necessary to determine any violation of labor
enforcement officer and raises issues supported by standards or may aid the enforcement of the LC
documentary proofs which were not considered in the or any labor law, wage order, or rules and
course of inspection. (As amended by Republic Act No. regulation.
7730, June 2, 1994). c. Inspection can be initiated:
An order issued by the duly authorized representative
1. Motu proprio by the Regional Office; or
of the Secretary of Labor and Employment under this
Article may be appealed to the latter. In case said order 2. Complaint inspection duly filed with the
involves a monetary award, an appeal by the employer Regional Office for alleged violations of labor
may be perfected only upon the posting of a cash or standards.
surety bond issued by a reputable bonding company
duly accredited by the Secretary of Labor and Labor Standards Complaint
Employment in the amount equivalent to the monetary
award in the order appealed from. (As amended by d. Referred to a Labor Standards and Welfare Officer
Republic Act No. 7730, June 2, 1994) (LWSO) for field inspection.
c. The Secretary of Labor and Employment may likewise e. If EER no longer exists, money claims shall be filed
order stoppage of work or suspension of operations of with the labor arbiters.
any unit or department of an establishment when non- f. Scope: thorough inquiry into and verification of the
compliance with the law or implementing rules and
compliance by employer with existing labor
regulations poses grave and imminent danger to the
health and safety of workers in the workplace. Within
University of Santo Tomas Labor Law Review
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standards and shall cover all workers similarly Limitations of the enforcement power
situated.
a. Enforcement power will not apply to those who were
Nature of proceedings before Regional Office no longer employed with the establishment at the
time the complaint was filed, having resigned or
g. Summary and non-litigious retired from their jobs.
h. Technicalities of law and procedure and the rules
governing admissibility and sufficiency of evidence Separated employees can file their complaint with the
obtaining in the courts of law shall not strictly apply arbitration branch of the NLRC or regional office of
thereto. the DOLE, provided that

Contested cases 1. the claim does not exceed P5,000.00; and


2. the employee does not seek reinstatement
i. Endorsement of such case to the appropriate b. power to order compliance with labor standards
Arbitration Branch of the NLRC. provisions may not be exercised where the employer
contest or questions the findings of labor enforcement
Finality of Decisions officers and raises issues which cannot be determined
without taking into consideration evidentiary matters
j. Orders of RD in the exercise of enforcement power not verifiable in the normal course of inspection.
are generally final and executory.
XPN: unless appealed to the SOLE within 10 Once contested, RD ceases to have competence to
days from receipt. take cognizance and must refer it to arbitration
k. Decisions, orders, or resolutions of SOLE shall branch of the NLRC for hearing and judgment.
become final and executory after 10 days from
receipt. Within 3 days from receipt of records, RD Principle of jurisdiction by estoppel
shall issue a writ of execution to enforce the order or
decision of the Secretary. - When jurisdiction has legally attached to a case
l. Filing of certiorari before SC shall not stay the brought before the Regional Office of the DOLE, it is
execution of the order or decision unless: not lost or divested on account of some new
1. Aggrieved party secures a TRO from court allegation in the plaintiff’s pleading.
within 15 days from the date of finality of order - Once vested, jurisdiction continues until the entire
or decision; or controversy is decided.
2. Posts a supersedeas bond in an amount adequate
to protect the interests of the prevailing party Amount of claim not a limitation
subject to the approval of the Secretary.
- Even if amount of claim exceeds P5,000.00, it does
B. Enforcement Power not necessarily remove from the RD’s competence to
decide monetary claim for he may still exercise
Conditions for the exercise of enforcement power: enforcement power.

1. EER still exists; Power to review enforcement order


2. Findings of labor regulation officers or industrial
safety engineers were made in the course of - SOLE, upon his own initiative or upon request of the
inspection; and employer, may review the order of the RD.
3. Employer does not contest such findings nor raise
issues which cannot be resolved without considering Interference and injunctions prohibited
evidentiary matters which are not verifiable in the
normal course of inspection. - - unlawful for any person or entity to obstruct,
impede, delay, or otherwise render ineffective the
Enforcement power on health and safety of workers exercise of enforcement power by the SOLE or his
duly authorized representatives.
m. RD or SOLE may order stoppage of work or - Inferior courts are prohibited from issuing temporary
suspension of operation of any unit or department of or permanent injunction or restraining order and from
any establishment if there exists in the workplace a assuming jurisdiction over any case involving
condition that poses a grave and imminent danger to enforcement orders issued in accordance with LC.
the health and safety of the workers which cannot be
corrected. Penalty

- Criminally liable under Art. 288 of LC;


- Summary dismissal for government officials.
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ARTICLE 129. Recovery of wages, simple money claims and Enforcement Power Adjudicatory Power
other benefits. RD -> SOLE RD -> NLRC
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,
Grounds for Appeal
through summary proceeding and after due notice, to hear and
decide any matter involving the recovery of wages and other a. There is prima facie evidence of abuse of discretion;
monetary claims and benefits, including legal interest, owing to b. Order/decision was secured through fraud, coercion,
an employee or person employed in domestic or household or graft and corruption;
service or househelper under this Code, arising from employer- c. Appeal is made on purely questions of law; and
employee relations: Provided, That such complaint does not d. There are serious in findings of cat which if not
include a claim for reinstatement: Provided further, That the corrected, would cause grave or irreparable damage
aggregate money claims of each employee or househelper does or inquiry to the appellant.
not exceed Five thousand pesos (P5,000.00). The Regional
Director or hearing officer shall decide or resolve the complaint Prescriptive for filing money claims
within thirty (30) calendar days from the date of the filing of the
same. Any sum thus recovered on behalf of any employee or
- 3 years from the time the COA accrued, otherwise
househelper pursuant to this Article shall be held in a special
deposit account by, and shall be paid on order of, the Secretary of they shall be barred forever.
Labor and Employment or the Regional Director directly to the
employee or househelper concerned. Any such sum not paid to ARTICLE 130 (Repealed by RA 10151) [132.] Facilities for
the employee or househelper because he cannot be located after women.
diligent and reasonable effort to locate him within a period of
The Secretary of Labor and Employment shall establish
three (3) years, shall be held as a special fund of the Department
standards that will ensure the safety and health of women
of Labor and Employment to be used exclusively for the
employees. In appropriate cases, he shall, by regulations, require
amelioration and benefit of workers.
any employer to:
Any decision or resolution of the Regional Director or hearing
a. Provide seats proper for women and permit them to use
officer pursuant to this provision may be appealed on the same
such seats when they are free from work and during
grounds provided in Article 229 of this Code, within five (5)
working hours, provided they can perform their duties
calendar days from receipt of a copy of said decision or
in this position without detriment to efficiency;
resolution, to the National Labor Relations Commission which
b. To establish separate toilet rooms and lavatories for
shall resolve the appeal within ten (10) calendar days from the
men and women and provide at least a dressing room
submission of the last pleading required or allowed under its
for women;
rules.
c. To establish a nursery in a workplace for the benefit of
The Secretary of Labor and Employment or his duly authorized the women employees therein; and
representative may supervise the payment of unpaid wages and d. To determine appropriate minimum age and other
other monetary claims and benefits, including legal interest, standards for retirement or termination in special
found owing to any employee or househelper under this Code. occupations such as those of flight attendants and the
(As amended by Section 2, Republic Act No. 6715, March 21, like.
1989)
Facilities for women-EE
Adjudicatory power
a. Seats that could be used by the women-EE during
- Power to try, hear, decide, and determine any claim breaktime or during working hours, provided the
for recovery of wages, simple money claims, and same will not affect efficiency;
other benefits. b. Separate toilet rooms and lavatories for women EEs;
c. Separate dressing room; and
Requisites d. Nursery in workplace
o Refers to an area in a workplace where
a. Claim is filed by an employee or person employed in working mother feed their infants
domestic or household service, or househelper; o Where the young children are left during
b. Claim arises from EER; working hours.
c. Claimant, no longer employed, does not seek for
reinstatement; and ARTICLE 131 (Repealed by RA 8282 - Social Security Act of
d. Aggregate money claim, including legal interest, of 1997 and RA 8187 - Paternity Leave Act of 1996)
each employee or househelper does not exceed
Maternity leave integrated under Social Security Law
P5,000.00.
 Normal delivery: 60 days
Appeal
 Caesarian delivery: 78 days
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Maternity leave benefits shall only be paid for the 1 st 4 - Granted after delivery by his wife, without prejudice
deliveries or miscarriages. of allowing the employee to avail of the benefit
before or during the delivery.
Conditions to entitlement to maternity leave benefits:
Non-commutation of benefits
a. Should have been employed at the time of
delivery, miscarriage, or abortion; - In the event that paternity leave benefits are not
b. Must have notified SSS through employer; and availed of, said leave shall not be convertible to cash.
c. Employer must have paid atleast 3 months of
maternity contributions within the 12-month Crediting of existing benefits
period immediately before the semester of
contingency. - If existing paternity leave benefits is greater than the
benefit provided under the law, the greater benefit
Pregnant woman regardless of status is entitled to maternity shall prevail;
leave benefits - If the existing paternity leave is less than that
provided under the law, the existing benefit shall be
- Being an unmarried woman is not an obstacle to the adjusted to the extent of the difference/
grant of maternity leave benefits. - Where a contract, company policy, or CBA provides
for an emergency or contingency leave without
Maternity leave benefits excluded in the computation of 13th specific provisions on paternity leave, paternity leave
month pay as herein provided shall apply in full.
- Maternity leave benefits are granted in lieu of wages. Parental leave for solo parents
GR: Voluntary or self-employed members are not entitled to - Solo parents are entitled to leave of 7 working days
maternity leave benefits because the law requires that the - Purpose: to enable the solo parent to perform parental
corresponding maternity contributions be paid by employers. duties and responsibilities where his or her physical
presence is needed.
XPN: if employees have qualifying contributions using the
new contribution schedule, they shall be entitled to maternity Conditions:
benefits.33
a. Solo parent must render atleast 1 year of service,
Free family planning services whether continuous or broken;
b. Must notify the employer of the availments
- Employers who habitually employ more than 200 thereof within a reasonable period of time; and
employees shall provide free family planning service c. Must present his solo identification card to the
to their employees and spouses which shall include, employer
but not limited to the application and use of
contraceptives. Categories of a solo parent
Paternity leave law a. A woman who gives birth as a result of rape and
other crimes against chastity even without a final
 7 days with full pay conviction of the offender: Provided, That the mother
keeps and raises the child;
Paternity leave benefits shall only be paid for the first 4 b. Parent left solo or alone with the responsibility of
deliveries of the legitimate spouse with whom he is parenthood due to
cohabiting. 1. death of spouse;
2. detention or service of sentence of spouse for a
- Leave benefits granted to a married man employee
criminal conviction for at least 1 year;
allowing him not t report for work for 7 days but
3. physical and/or mental incapacity of spouse as
continues to earn compensation.
certified by a public medical practitioner;
- Purpose: lending support to his wife during her
4. legal separation or de facto separation from
period of recovery and/or nursing of the newly born
spouse for at least 1 year, as long as he/she is
child.
entrusted with the custody of the children;
Availment of benefits 5. declaration of nullity or annulment of marriage
as decreed by a court or by a church as long as
he/she is entrusted with the custody of the
children;
33
6. abandonment of spouse for at least 1 year;
Circular 36-C (24 May 1997).
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c. Unmarried mother/father who has preferred to keep c. Discrimination in hiring – favoring male rather than
and rear her/his child/children instead of having female employees in terms of hiring where the
others care for them or give them up to a welfare particular job can equally be handled by a woman;
institution; and
d. Any other person who solely provides parental care d. Discrimination in dismissal – favoring a male rather
and support to a child or children; than a female employee in terms of dismissal of
e. Any family member who assumes the responsibility personnel or the application of the last in/first out
of head of family as a result of the death, (LIFO) principle or other retrenchment policy of the
abandonment, disappearance or prolonged absence of employer.
the parents or solo parent.
Institution of any criminal action under this provision shall not
ARTICLE 132 [134] Family planning services; incentives for bar the aggrieved employee from money claims, which may
family planning. include claims for damages and other affirmative reliefs.
a. Establishments which are required by law to maintain a ARTICLE 134 [136] Stipulation against marriage.
clinic or infirmary shall provide free family planning
services to their employees which shall include, but not It shall be unlawful for an employer to require as a condition of
be limited to, the application or use of contraceptive employment or continuation of employment that a woman
pills and intrauterine devices. employee shall not get married, or to stipulate expressly or tacitly
b. In coordination with other agencies of the government that upon getting married, a woman employee shall be deemed
engaged in the promotion of family planning, the resigned or separated, or to actually dismiss, discharge,
Department of Labor and Employment shall develop discriminate or otherwise prejudice a woman employee merely
and prescribe incentive bonus schemes to encourage by reason of her marriage.
family planning among female workers in any
establishment or enterprise. Stipulations against marriage
ARTICLE 133 [135] Discrimination prohibited.  A company regulation which states that a flight
It shall be unlawful for any employer to discriminate against any
attendant must be single otherwise their employment
woman employee with respect to terms and conditions of shall be terminated cannot be legally enforced and is
employment solely on account of her sex. in violation of Articles 133 and 134 of the LC. To get
married does not necessarily mean to get
The following are acts of discrimination: pregnancy.34
 Non-acceptance or disqualification of an employee
a. Payment of a lesser compensation, including wage, who contracts marriage is also a violation of Articles
salary or other form of remuneration and fringe
133 and 134 of the LC.35
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
Standard of reasonable test; bona-fide occupational
respect to promotion, training opportunities, study and qualification test
scholarship grants solely on account of their sexes.
- Employer has the burden of proof to prove the
Criminal liability for the willful commission of any unlawful act existence of a reasonable business necessity that
as provided in this Article or any violation of the rules and would justify an employment policy.
regulations issued pursuant to Section 2 hereof shall be penalized  Employer’s policy prohibiting an employee from
as provided in Articles 288 and 289 of this Code: Provided, That having a relationship with an employee of a
the institution of any criminal action under this provision shall competitor company is a valid exercise of
not bar the aggrieved employee from filing an entirely separate
management prerogative for it has the right to guard
and distinct action for money claims, which may include claims
for damages and other affirmative reliefs. The actions hereby its trade secrets, manufacturing formulas, marketing
authorized shall proceed independently of each other. (As strategies, and other confidential programs and
amended by Republic Act No. 6725, May 12, 1989) information from competitors, especially so that they
are rival companies in the highly competitive
Acts of Discrimination pharmaceutical industry.36

a. Discrimination in pay – payment for a lesser


compensation including wage, salary, or other forms
of remuneration and fringe benefits, to a female
employee against a male employee;
b. Discrimination in employment opportunity – favoring
male rather than female employees in terms of 34
Zialcita v. PAL & PT&T v. NLRC.
promotion, transfer, training opportunities, study and 35
PT&T v. NLRC.
scholarship grants solely on account of their sexes; 36
Duncan Asso. Of Detailment v. Glaxo Wellcome Phils., Inc.
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ARTICLE 135 [137] Prohibited acts. Sexual violence


It shall be unlawful for any employer: - act which is sexual in nature, committed against a
woman or her child. It includes but is not limited to:
1. To deny any woman employee the benefits provided for
a. rape, sexual harassment, acts of lasciviousness,
in this Chapter or to discharge any woman employed by
him for the purpose of preventing her from enjoying
treating a woman or her child as a sex object,
any of the benefits provided under this Code. making demeaning and sexually suggestive
2. To discharge such woman on account of her pregnancy, remarks, physically attacking the sexual parts of
or while on leave or in confinement due to her the victim's body, forcing her/him to watch
pregnancy; obscene publications and indecent shows or
3. To discharge or refuse the admission of such woman forcing the woman or her child to do indecent
upon returning to her work for fear that she may again acts and/or make films thereof, forcing the wife
be pregnant. and mistress/lover to live in the conjugal home or
sleep together in the same room with the abuser;
Unlawful acts against women
b. acts causing or attempting to cause the victim to
a. Discharge any woman employed by him for the engage in any sexual activity by force, threat of
purpose of preventing such woman from enjoying the force, physical or other harm or threat of
maternity leave, facilities and other benefits provided physical or other harm or coercion;
under the LC; c. Prostituting the woman or child.
b. Discharge such woman on account of her pregnancy,
Psychological violence
or while on leave or in confinement due to her
pregnancy; - acts or omissions causing or likely to cause mental or
c. Discharge or refuse the admission of such woman emotional suffering of the victim such as but not
upon returning to her work for fear that she may limited to intimidation, harassment, stalking, damage
again be pregnancy; to property, public ridicule or humiliation, repeated
d. Discharge of any woman or any other employee verbal abuse and mental infidelity. It includes causing
having filed a complaint or having testified or being or allowing the victim to witness the physical, sexual
about to testify under the LC; or psychological abuse of a member of the family to
e. Require as a condition for or continuation of which the victim belongs, or to witness pornography
employment that a woman employee shall not get in any form or to witness abusive injury to pets or to
married or to stipulate expressly or tacitly that upon unlawful or unwanted deprivation of the right to
getting married a woman-employee shall be deemed custody and/or visitation of common children.
resigned, separated, or to actually dismiss, discharge,
discriminate, or otherwise prejudice a Economic abuse
woman0employee merely by reason of her marriage;
and - acts that make or attempt to make a woman
f. Deny any woman the benefits of employment or financially dependent which includes, but is not
other statutory benefits, or relations, either by affinity limited to the following:
or consanguinity. 1. withdrawal of financial support or
preventing the victim from engaging in any
Violence against women and their children legitimate profession, occupation, business
or activity, except in cases wherein the other
- any act or a series of acts committed by any person spouse/partner objects on valid, serious and
against a woman who is his wife, former wife, or moral grounds as defined in Article 73 of the
against a woman with whom the person has or had a Family Code;
sexual or dating relationship, or with whom he has a 2. deprivation or threat of deprivation of
common child, or against her child whether financial resources and the right to the use
legitimate or illegitimate, within or without the and enjoyment of the conjugal, community
family abode, which result in or is likely to result in or property owned in common;
physical, sexual, psychological harm or suffering, or 3. destroying household property;
economic abuse including threats of such acts, 4. controlling the victims' own money or
battery, assault, coercion, harassment or arbitrary properties or solely controlling the conjugal
deprivation of liberty. money or properties.
Physical violence

- acts that include bodily or physical harm


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Battery Where to apply:

- refers to an act of inflicting physical harm upon the - RTC, MeTC, MTC, MCTC with territorial
woman or her child resulting to the physical and jurisdiction over the place of residence of the
psychological or emotional distress. petitioner;
- Family Court
Battered Woman Syndrome (BWS)
Violence against women and children considered a public
- refers to a scientifically defined pattern of offense which may be prosecuted upon the filing of a
psychological and behavioral symptoms found in complaint by any citizen having personal knowledge of the
women living in battering relationships as a result of circumstances involving the commission of the crime.
cumulative abuse.
Prescriptive period under the RA 9262
Dating relationship
- 20 years for Secs. 5 (a) to 5(f); or
- refers to a situation wherein the parties live as - 10 years for Secs. 5 (g) to 5(i).
husband and wife without the benefit of marriage or
are romantically involved over time and on a Battered woman syndrome as a defense
continuing basis during the course of the relationship.
A casual acquaintance or ordinary socialization - Victim-survivors suffering from BWS do not incur
between two individuals in a business or social any criminal or civil liability notwithstanding the
context is not a dating relationship. absence of any of the elements for justifying
circumstances of self-defense under the RPC.
Jurisdiction over cases of violence - In the determination of BWS, the court shall be
assisted by psychiatrists/psychologists.
- RTC designated as a Family Court - Existence of BWS does not in itself establish the
- In the absence of family courts, RTC where the crime legal right of the woman to kill her abusive partner.
or any of its elements was committed at the option of Evidence must still be considered in the context of
the complainant. self-defense.
Protection Order Sexual harassment of women penalized
- Issued for the purpose of preventing further acts of - Work, education or training-related sexual
violence against a woman or her child and granting harassment is committed by an employer, employee,
other necessary relief. manager, supervisor, agent of the employer, teacher,
instructor, professor, coach, trainer, or any other
May be filed by the following: person who, having authority, influence or moral
ascendancy over another in a work or training or
a. Offended party education environment, demands, requests or
b. Parents or guardians of offended party otherwise requires any sexual favor from the other,
c. Ascendants, descendants, or collateral relatives regardless of whether the demand, request or
within the 4th civil degree of consanguinity or requirement for submission is accepted by the object
affinity;
of said Act.
d. Officers or social workers of the DSWD or
social workers of local government units A. In a work-related or employment environment, sexual
(LGUs); harassment is committed when:
e. Police officers, preferably those in charge of
women and children’s desks; 1. The sexual favor is made as a condition in the
f. Punong Barangay or Barangay Kagawad; hiring or in the employment, re-employment or
g. Lawyer, counselor, therapist, or healthcare continued employment of said individual, or in
provider of the petitioner and granting said individual favorable compensation,
h. Atleast 2 concerned responsible citizens of the terms of conditions, promotions, or privileges;
city or municipality where the violence against or the refusal to grant the sexual favor results in
women and their children occurred and who has limiting, segregating or classifying the employee
personal knowledge of the offense committed. which in any way would discriminate, deprive
or diminish employment opportunities or
otherwise adversely affect said employee;
2. The above acts would impair the employee's
rights or privileges under existing labor laws; or
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3. The above acts would result in an intimidating, such periods of the day as determined by the Secretary
hostile, or offensive environment for the of Labor and Employment in appropriate regulations.
employee. 3. The foregoing provisions shall in no case allow the
employment of a person below eighteen (18) years of age
B. In an education or training environment, sexual in an undertaking which is hazardous or deleterious in
nature as determined by the Secretary of Labor and
harassment is committed:
Employment.
1. Against one who is under the care, custody or Employment of children in deleterious undertaking id
supervision of the offender;
prohibited
2. Against one whose education, training,
apprenticeship or tutorship is entrusted to the Employment of children below 15 years of age
offender;
3. When the sexual favor is made a condition to the GR: employment of children below 15 years of age if
giving of a passing grade, or the granting of prohibited
honors and scholarships, or the payment of a
stipend, allowance or other benefits, privileges, XPN:
or consideration; or
4. When the sexual advances result in an A. When the child works directly under the
intimidating, hostile or offensive environment for responsibility of his/her parents or legal guardian
the student, trainee or apprentice. who employ members of his/her family only but
under the following conditions:
ARTICLE 136 [138] Classification of certain women workers. 1. Employment does not endanger the child’s life,
safety, health, and morals;
Any woman who is permitted or suffered to work, with or 2. Employment does not impair the child’s normal
without compensation, in any night club, cocktail lounge,
development;
massage clinic, bar or similar establishments under the effective
control or supervision of the employer for a substantial period of 3. Employer-parent or legal guardian provides the
time as determined by the Secretary of Labor and Employment, child with primary and/or secondary education
shall be considered as an employee of such establishment for prescribed by the DepEd.
purposes of labor and social legislation. B. When the child’s employment or participation in
public entertainment or information through cinema,
Status of women-workers in certain workplaces theater, radio, or television is essential, provided the
following conditions are complied with:
- Considered an employee of such establishment for 1. Employment does not involve advertisement or
purposes of labor and social legislation. commercials promoting alcohol, beverages,
- No employer shall discriminate against such intoxicating drinks, tobacco, and its by-products
employees or in any manner reduce whatever benefits or exhibiting violence’
they are now enjoying. 2. There is written contract approved by the DOLE,
and such contract was concluded by the child’s
Hospitality girls not employees in certain instances parents or legal guardians with the express
agreement of the child concerned; and
- If the night club operator neither controls nor directs
C. Conditions prescribed above are met.
the hostesses on the details and manner of their work
in the entertainment of night club patrons and that, Absolutely prohibited employment
having no fixed hours of work, said hostesses may
come and go as they please; they are, therefore, not a. Employment of a child below 18 years of age in an
employees of the night club operators. undertaking which is hazardous or deleterious in
- Considered as if they are under the effective control nature
or supervision of the employer for a substantial b. Employment of child models in all commercial or
period of time. advertisements promoting alcoholic beverages,
intoxicating drinks, tobacco, and its by-products, and
ARTICLE 137 [139] Minimum employable age. violence.
1. No child below fifteen (15) years of age shall be
Strict compliance of the requirements on the employment of
employed, except when he works directly under the sole
responsibility of his parents or guardian, and his children
employment does not in any way interfere with his
schooling. a. Employer shall ensure the protection, health, safety,
2. Any person between fifteen (15) and eighteen (18) years morals, and normal development of the child;
of age may be employed for such number of hours and b. Employer shall institute measures to prevent the
child’s exploitation or discrimination; and
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c. Employer shall formulate and implement a 2. The use, procuring, offering or exposing of a child
continuing program for training and skills acquisition for prostitution, for the production of pornography or
of the child. for pornographic performances; or
3. The use, procuring or offering of a child for illegal or
Hours of work of a working child illicit activities, including the production and
trafficking of dangerous drugs and volatile substances
a. A child below fifteen (15) years of age may be prohibited under existing laws; or
allowed to work for not more than twenty (20) hours 4. Work which, by its nature or the circumstances in
a week: Provided, That the work shall not be more which it is carried out, is hazardous or likely to be
than four (4) hours at any given day; harmful to the health, safety or morals of children
b. A child fifteen (15) years of age but below eighteen
(18) shall not be allowed to work for more than eight Hazardous or harmful circumstances
(8) hours a day, and in no case beyond forty (40)
hours a week; 1. Debases, degrades or demeans the intrinsic worth and
c. No child below fifteen (15) years of age shall be dignity of a child as a human being; or
allowed to work between eight o'clock in the evening 2. Exposes the child to physical, emotional or sexual
and six o'clock in the morning of the following day abuse, or is found to be highly stressful
and no child fifteen (15) years of age but below psychologically or may prejudice morals; or
eighteen (18) shall be allowed to work between ten 3. Is performed underground, underwater or at
o'clock in the evening and six o'clock in the morning dangerous heights; or
of the following day. 4. Involves the use of dangerous machinery, equipment
and tools such as power-driven or explosive power-
Administration of the working child’s income actuated tools; or
5. Exposes the child to physical danger such as, but not
- Belong to the child in his/her ownership limited to the dangerous feats of balancing, physical
a. Primary: support, education, skills acquisition of strength or contortion, or which requires the manual
the child; and transport of heavy loads; or
b. Secondary: collective needs of the family. 6. Is performed in an unhealthy environment exposing
o Not more than 20% of the child’s income the child to hazardous working conditions, elements,
may be used for the collective needs of the substances, co-agents or processes involving
family. ionizing, radiation, fire, flammable substances,
noxious components and the like, or to extreme
Trust fund of the working child’s income temperatures, noise levels, or vibrations; or
7. Is performed under particularly difficult conditions;
- 30% of the earnings of the child whose wages and
or
salaries from work and other income amount to
8. Exposes the child to biological agents such as
atleast P200,000.00 annually.
bacteria, fungi, viruses, protozoans, nematodes and
- The child shall have full control over the trust fund
other parasites; or
upon reaching the age of majority.
9. Involves the manufacture or handling of explosives
ARTICLE 138 [140] Prohibition against child discrimination. and other pyrotechnic products."

No employer shall discriminate against any person in respect to Who may file complaint
terms and conditions of employment on account of his age.
a. Offended party;
Purpose of the law b. Parents or guardians;
c. Ascendant or collateral relative within the third
- Children are easy preys of abusive employers as they degree of consanguinity;
are unskilled and inexperienced. d. Officer, social worker or representative of a licensed
- Effect the constitutional mandate of affording child-caring institution;
protection to labor. e. Officer or social worker of the Department of Social
Welfare and Development;
Worst Forms of Child Labor f. Barangay chairman of the place where the violation
occurred, where the child is residing or employed; or
1. All forms of slavery, as defined under the "Anti- g. At least three (3) concerned, responsible citizens
trafficking in Persons Act of 2003", or practices where the violation occurred."
similar to slavery such as sale and trafficking of
children, debt bondage and serfdom and forced or
compulsory labor, including recruitment of children
for use in armed conflict; or
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Jurisdiction over cases SEC. 3. Coverage. – This Act applies to all domestic workers
employed and working within the country.
- Family Courts
- In the absence of family courts, RTCs and MTCs, SEC. 4. Definition of Terms. – As used in this Act, the term:
depending on the penalties prescribed for the offenses
(a) Debt bondage refers to the rendering of service by the
charged. domestic worker as security or payment for a debt where the
length and nature of service is not clearly defined or when the
DOLE’s closure order; benefits of victim-employee value of the service is not reasonably applied in the payment of
the debt.
Violation of any of the provisions of this Act more than
three (3) times. He/she shall likewise order the immediate (b) Deployment expenses refers to expenses that are directly used
closure of such firm or establishment if: for the transfer of the domestic worker from place of origin to the
place of work covering the cost of transportation. Advances or
1. The violation of any provision of this Act has loans by the domestic worker are not included in the definition of
resulted in the death, insanity or serious physical deployment expenses.
injury of a child employed in such establishment;
or (c) Domestic work refers to work performed in or for a household
or households.
2. Such firm or establishment is engaged or
employed in prostitution or in obscene or lewd (d) Domestic worker or “Kasambahay” refers to any person
shows. engaged in domestic work within an employment relationship
such as, but not limited to, the following: general househelp,
Chapter III nursemaid or “yaya”, cook, gardener, or laundry person, but
EMPLOYMENT OF HOUSEHELPERS shall exclude any person who performs domestic work only
occasionally or sporadically and not on an occupational basis.
Article 139 – 150 repealed by RA 10361
The term shall not include children who are under foster family
RA 10361 arrangement, and are provided access to education and given an
AN ACT INSTITUTING POLICIES FOR THE PROTECTION allowance incidental to education, i.e. “baon”, transportation,
AND WELFARE OF DOMESTIC WORKERS school projects and school activities.
Domestic Workers Act
(e) Employer refers to any person who engages and controls the
ARTICLE I services of a domestic worker and is party to the employment
GENERAL PROVISIONS contract.

SECTION 1. Short Title. – This Act shall be known as the (f) Household refers to the immediate members of the family or
“Domestic Workers Act” or “Batas Kasambahay”. the occupants of the house that are directly provided services by
the domestic worker.
SEC. 2. Declaration of Policies. – It is hereby declared that:
(g) Private Employment Agency (PEA) refers to any individual,
(a) The State strongly affirms labor as a primary social force and legitimate partnership, corporation or entity licensed to engage in
is committed to respect, promote, protect and realize the the recruitment and placement of domestic workers for local
fundamental principles and rights at work including, but not employment.
limited to, abolition of child labor, elimination of all forms of
forced labor, discrimination in employment and occupation, and (h) Working children, as used under this Act, refers to domestic
trafficking in persons, especially women and children; workers who are fifteen (15) years old and above but below
eighteen (18) years old.
(b) The State adheres to internationally accepted working
conditions for workers in general, and establishes labor Coverage
standards for domestic workers in particular, towards decent
employment and income, enhanced coverage of social protection, - All domestic workers employed and working within
respect for human rights and strengthened social dialogue;
the country
(c) The State recognizes the need to protect the rights of domestic
workers against abuse, harassment, violence, economic Domestic work
exploitation and performance of work that is hazardous to their
physical and mental health; and - work performed in or for a household or households

(d) The State, in protecting domestic workers and recognizing Domestic worker
their special needs to ensure safe and healthful working
conditions, promotes gender-sensitive measures in the - refers to any person engaged in domestic work within
formulation and implementation of policies and programs an employment relationship such as, but not limited
affecting the local domestic work. to, the following: general househelp, nursemaid or
“yaya”, cook, gardener, or laundry person, but shall
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exclude any person who performs domestic work suit involves the employer or any member of the household in a
only occasionally or sporadically and not on an crime against persons, property, personal liberty and security,
occupational basis. and chastity.

Standard of treatment The employer shall provide the domestic worker with the
following:
- The employer or any member of the household shall
not subject a domestic worker or “kasambahay” to a. basic necessities to include at least three (3) adequate
any kind of abuse nor inflict any form of physical meals a day;
violence or harassment or any act tending to degrade b. humane sleeping arrangements that ensure safety.
the dignity of a domestic worker. c. appropriate rest and assistance to the domestic; and
worker in case of illnesses and injuries sustained
ARTICLE II during service without loss of benefits.
RIGHTS AND PRIVILEGES
No withdrawal of the basic necessities shall be allowed as
SEC. 5. Standard of Treatment. – The employer or any member punishment or disciplinary action to the domestic worker.
of the household shall not subject a domestic worker or
“kasambahay” to any kind of abuse nor inflict any form of Employer shall respect the privacy of the domestic worker.
physical violence or harassment or any act tending to degrade the
dignity of a domestic worker. Employer shall grant the domestic worker access to outside
communication during free time.
SEC. 6. Board, Lodging and Medical Attendance. – The employer
shall provide for the basic necessities of the domestic worker to
XPN: in case of emergency, access to communication
include at least three (3) adequate meals a day and humane
sleeping arrangements that ensure safety. may be granted during work time.

The employer shall provide appropriate rest and assistance to the Right to education and training
domestic worker in case of illnesses and injuries sustained during
service without loss of benefits. - The employer shall afford the domestic worker the
opportunity to finish basic education and may allow
At no instance shall the employer withdraw or hold in abeyance access to alternative learning systems and, as far as
the provision of these basic necessities as punishment or practicable, higher education or technical and
disciplinary action to the domestic worker. vocational training.
SEC. 7. Guarantee of Privacy. – Respect for the privacy of the Prohibition against privileged communication
domestic worker shall be guaranteed at all times and shall extend
to all forms of communication and personal effects. This GR: All communication and information pertaining to
guarantee equally recognizes that the domestic worker is obliged
to render satisfactory service at all times.
the employer or members of the household shall be
treated as privileged and confidential, and shall not be
SEC. 8. Access to Outside Communication. – The employer shall publicly disclosed by the domestic worker during and
grant the domestic worker access to outside communication after employment.
during free time: Provided, That in case of emergency, access to
communication shall be granted even during work time. Should XPN: when the suit involves the employer or any
the domestic worker make use of the employer’s telephone or member of the household in a crime against persons,
other communication facilities, the costs shall be borne by the property, personal liberty and security, and chastity.
domestic worker, unless such charges are waived by the
employer. ARTICLE III
PRE-EMPLOYMENT
SEC. 9. Right to Education and Training. – The employer shall
afford the domestic worker the opportunity to finish basic SEC. 11. Employment Contract. – An employment contract shall
education and may allow access to alternative learning systems be executed by and between the domestic worker and the
and, as far as practicable, higher education or technical and employer before the commencement of the service in a language
vocational training. The employer shall adjust the work schedule or dialect understood by both the domestic worker and the
of the domestic worker to allow such access to education or employer. The domestic worker shall be provided a copy of the
training without hampering the services required by the duly signed employment contract which must include the
employer. following:
SEC. 10. Prohibition Against Privileged Information. – All (a) Duties and responsibilities of the domestic worker;
communication and information pertaining to the employer or
members of the household shall be treated as privileged and (b) Period of employment;
confidential, and shall not be publicly disclosed by the domestic
worker during and after employment. Such privileged (c) Compensation;
information shall be inadmissible in evidence except when the
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(d) Authorized deductions; SEC. 15. Prohibition on Debt Bondage. – It shall be unlawful for
the employer or any person acting on behalf of the employer to
(e) Hours of work and proportionate additional payment; place the domestic worker under debt bondage.

(f) Rest days and allowable leaves; SEC. 16. Employment Age of Domestic Workers. – It shall be
unlawful to employ any person below fifteen (15) years of age as a
(g) Board, lodging and medical attention; domestic worker. Employment of working children, as defined
under this Act, shall be subject to the provisions of Section 10(A),
(h) Agreements on deployment expenses, if any; paragraph 2 of Section 12-A, paragraph 4 of Section 12-D, and
Section 13 of Republic Act No. 7610, as amended, otherwise
(i) Loan agreement; known as the “Special Protection of Children Against Child
Abuse, Exploitation and Discrimination Act”.
(j) Termination of employment; and
Working children shall be entitled to minimum wage, and all
(k) Any other lawful condition agreed upon by both parties. benefits provided under this Act.

The Department of Labor and Employment (DOLE) shall Any employer who has been sentenced by a court of law of any
develop a model employment contract for domestic workers offense against a working child under this Act shall be meted out
which shall, at all times, be made available free of charge to with a penalty one degree higher and shall be prohibited from
domestic workers, employers, representative organizations and hiring a working child.
the general public. The DOLE shall widely disseminate
information to domestic workers and employers on the use of SEC. 17. Employer’s Reportorial Duties. – The employers shall
such model employment contract. register all domestic workers under their employment in the
Registry of Domestic Workers in the barangay where the
In cases where the employment of the domestic worker is employer’s residence is located. The Department of the Interior
facilitated through a private employment agency, the PEA shall and Local Government (DILG) shall, in coordination with the
keep a copy of all employment contracts of domestic workers and DOLE, formulate a registration system for this purpose.
shall be made available for verification and inspection by the
DOLE. SEC. 18. Skills Training, Assessment and Certification. – To
ensure productivity and assure quality services, the DOLE,
SEC. 12. Pre-Employment Requirement. – Prior to the execution through the Technical Education and Skills Development
of the employment contract, the employer may require the Authority (TESDA), shall facilitate access of domestic workers to
following from the domestic worker: efficient training, assessment and certification based on a duly
promulgated training regulation.
(a) Medical certificate or a health certificate issued by a local
government health officer; Employment Contract
(b) Barangay and police clearance; - executed by and between the domestic worker and
the employer;
(c) National Bureau of Investigation (NBI) clearance; and
- before the commencement of the service; and
(d) Duly authenticated birth certificate or if not available, any - in a language or dialect understood by both the
other document showing the age of the domestic worker such as domestic worker and the employer.
voter’s identification card, baptismal record or passport. - (DOLE) shall develop a model employment contract
for domestic workers which shall, at all times, be
However, Section 12(a), (b), (c) and (d) shall be standard made available free of charge to domestic workers,
requirements when the employment of the domestic worker is employers, representative organizations and the
facilitated through the PEA.
general public.
The cost of the foregoing shall be borne by the prospective
employer or agency, as the case may be. Pre-employment requirements

SEC. 13. Recruitment and Finder’s Fees. – Regardless of whether a. Medical certificate or a health certificate issued by a
the domestic worker was hired through a private employment local government health officer;
agency or a third party, no share in the recruitment or finder’s b. Barangay and police clearance;
fees shall be charged against the domestic worker by the said c. National Bureau of Investigation (NBI) clearance;
private employment agency or third party. and
d. Duly authenticated birth certificate or if not available,
SEC. 14. Deposits for Loss or Damage. – It shall be unlawful for any other document showing the age of the domestic
the employer or any other person to require a domestic worker to
make deposits from which deductions shall be made for the
worker such as voter’s identification card, baptismal
reimbursement of loss or damage to tools, materials, furniture record or passport.
and equipment in the household.
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Recruitment and finder’s fees incurred by the domestic worker on account of such arrangement
shall be borne by the original employer. In addition, such work
- No share in the recruitment or finder’s fees shall be performed outside the household shall entitle the domestic
charged against the domestic worker by the said worker to an additional payment of not less than the existing
private employment agency or third party. minimum wage rate of a domestic worker. It shall be unlawful
for the original employer to charge any amount from the said
household where the service of the domestic worker was
Deposits for loss or damage
temporarily performed.
- unlawful for the employer or any other person to SEC 24. Minimum Wage. – The minimum wage of domestic
require a domestic worker to make deposits from workers shall not be less than the following:
which deductions shall be made for the
reimbursement of loss or damage to tools, materials, (a) Two thousand five hundred pesos (P2,500.00) a month for
furniture and equipment in the household. those employed in the National Capital Region (NCR);

Employment age of domestic workers (b) Two thousand pesos (P2,000.00) a month for those employed
in chartered cities and first class municipalities; and
- unlawful to employ any person below fifteen (15)
years of age as a domestic worker. (c) One thousand five hundred pesos (P1,500.00) a month for
those employed in other municipalities.
- Working children (domestic workers who are 15
years old and above but below 18 years old) shall be After one (1) year from the effectivity of this Act, and
entitled to minimum wage, and all benefits. periodically thereafter, the Regional Tripartite and Productivity
Wage Boards (RTPWBs) shall review, and if proper, determine
ARTICLE IV and adjust the minimum wage rates of domestic workers.
EMPLOYMENT – TERMS AND CONDITIONS
SEC 25. Payment of Wages. – Payment of wages shall be made on
SEC. 19. Health and Safety. – The employer shall safeguard the time directly to the domestic worker to whom they are due in
health and safety of the domestic worker in accordance with laws, cash at least once a month. The employer, unless allowed by the
rules and regulations, with due consideration of the peculiar domestic worker through a written consent, shall make no
nature of domestic work. deductions from the wages other than that which is mandated by
law. No employer shall pay the wages of a domestic worker by
SEC. 20. Daily Rest Period. – The domestic worker shall be means of promissory notes, vouchers, coupons, tokens, tickets,
entitled to an aggregate daily rest period of eight (8) hours per chits, or any object other than the cash wage as provided for
day. under this Act.

SEC. 21. Weekly Rest Period. – The domestic worker shall be The domestic worker is entitled to a thirteenth month pay as
entitled to at least twenty-four (24) consecutive hours of rest in a provided for by law.
week. The employer and the domestic worker shall agree in
writing on the schedule of the weekly rest day of the domestic SEC. 26. Pay Slip. – The employer shall at all times provide the
worker: Provided, That the employer shall respect the preference domestic worker with a copy of the pay slip containing the
of the domestic worker as to the weekly rest day when such amount paid in cash every pay day, and indicating all deductions
preference is based on religious grounds. Nothing in this made, if any. The copies of the pay slip shall be kept by the
provision shall deprive the domestic worker and the employer employer for a period of three (3) years.
from agreeing to the following:
SEC. 27. Prohibition on Interference in the Disposal of Wages. –
(a) Offsetting a day of absence with a particular rest day; It shall be unlawful for the employer to interfere with the
freedom of any domestic worker to dispose of the latter’s wages.
(b) Waiving a particular rest day in return for an equivalent The employer shall not force, compel or oblige the domestic
daily rate of pay; worker to purchase merchandise, commodities or other
properties from the employer or from any other person, or
(c) Accumulating rest days not exceeding five (5) days; or otherwise make use of any store or services of such employer or
any other person.
(d) Other similar arrangements.
SEC 28. Prohibition Against Withholding of Wages. – It shall be
SEC. 22. Assignment to Non-household Work. – No domestic unlawful for an employer, directly or indirectly, to withhold the
worker shall be assigned to work in a commercial, industrial or wages of the domestic worker. If the domestic worker leaves
agricultural enterprise at a wage rate lower than that provided without any justifiable reason, any unpaid salary for a period not
for agricultural or nonagricultural workers. In such cases, the exceeding fifteen (15) days shall be forfeited. Likewise, the
domestic worker shall be paid the applicable minimum wage. employer shall not induce the domestic worker to give up any
part of the wages by force, stealth, intimidation, threat or by any
SEC. 23. Extent of Duty. – The domestic worker and the other means whatsoever.
employer may mutually agree for the former to temporarily
perform a task that is outside the latter’s household for the SEC. 29. Leave Benefits. – A domestic worker who has rendered
benefit of another household. However, any liability that will be at least one (1) year of service shall be entitled to an annual
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service incentive leave of five (5) days with pay: Provided, That c. P1,500.00 a month for those employed in other
any unused portion of said annual leave shall not be cumulative municipalities.
or carried over to the succeeding years. Unused leaves shall not
be convertible to cash. The employer shall make no deductions from the wages
other than that which is mandated by law.
SEC. 30. Social and Other Benefits. – A domestic worker who has
rendered at least one (1) month of service shall be covered by the
XPN: unless allowed by the domestic worker through
Social Security System (SSS), the Philippine Health Insurance
Corporation (PhilHealth), and the Home Development Mutual a written consent,
Fund or Pag-IBIG, and shall be entitled to all the benefits in
accordance with the pertinent provisions provided by law. Prohibition against withholding of wages

Premium payments or contributions shall be shouldered by the - It shall be unlawful for an employer, directly or
employer. However, if the domestic worker is receiving a wage of indirectly, to withhold the wages of the domestic
Five thousand pesos (P5,000.00) and above per month, the worker.
domestic worker shall pay the proportionate share in the - If the domestic worker leaves without any justifiable
premium payments or contributions, as provided by law. reason, any unpaid salary, for a period not exceeding
15 days, shall be forfeited.
The domestic worker shall be entitled to all other benefits under
existing laws.
- Employer shall not induce the domestic worker to
give up any part of the wages by force, stealth,
SEC. 31. Rescue and Rehabilitation of Abused Domestic intimidation, threat or by any other means
Workers. – Any abused or exploited domestic worker shall be whatsoever.
immediately rescued by a municipal or city social welfare officer
or a social welfare officer from the Department of Social Welfare Leave benefits
and Development (DSWD) in coordination with the concerned
barangay officials. The DSWD and the DILG shall develop a - Persons entitled: A domestic worker who has
standard operating procedure for the rescue and rehabilitation of rendered at least 1 year of service
abused domestic workers, and in coordination with the DOLE, - Duration: 5 days with pay
for possible subsequent job placement. - Any unused portion of said annual leave shall not be
cumulative or carried over to the succeeding years.
Daily rest period: 8 hours per day
- Unused leaves shall not be convertible to cash.
Weekly rest period: 24 consecutive hours
Social and other benefits
- employer and the domestic worker shall agree in
writing on the schedule of the weekly rest day of the - Persons covered: A domestic worker who has
domestic worker: rendered at least 1 month of service
- employer shall respect the preference of the domestic - Coverage: SSS, PhilHealth, and Pag-IBIG.
worker as to the weekly rest day when such - Premium payments or contributions shall be
preference is based on religious grounds. shouldered by the employer.
XPN: If the domestic worker is receiving a wage
- Employer and domestic worker can stipulate on the
following: of P5,000.00 and above per month, the domestic
a. Offsetting a day of absence with a particular rest worker shall pay the proportionate share.
day;
ARTICLE V
b. Waiving a particular rest day in return for an
POST EMPLOYMENT
equivalent daily rate of pay;
c. Accumulating rest days not exceeding five (5) SEC. 32. Termination of Service. – Neither the domestic worker
days; or nor the employer may terminate the contract before the
d. Other similar arrangements. expiration of the term except for grounds provided for in
Sections 33 and 34 of this Act. If the domestic worker is unjustly
No domestic worker shall be assigned to work in a dismissed, the domestic worker shall be paid the compensation
commercial, industrial or agricultural enterprise at a wage rate already earned plus the equivalent of fifteen (15) days work by
lower than that provided for agricultural or nonagricultural way of indemnity. If the domestic worker leaves without
workers. justifiable reason, any unpaid salary due not exceeding the
equivalent fifteen (15) days work shall be forfeited. In addition,
the employer may recover from the domestic worker costs
Minimum Wage shall not be less than:
incurred related to the deployment expenses, if any: Provided,
That the service has been terminated within six (6) months from
a. P2,500.00 a month for those employed in the
the domestic worker’s employment.
National Capital Region (NCR);
b. P2,000.00 a month for those employed in chartered If the duration of the domestic service is not determined either in
cities and first class municipalities; and stipulation or by the nature of the service, the employer or the
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domestic worker may give notice to end the working relationship Termination of service
five (5) days before the intended termination of the service.
GR: Neither the domestic worker nor the employer may
The domestic worker and the employer may mutually agree upon terminate the contract before the expiration of the term.
written notice to pre-terminate the contract of employment to
end the employment relationship. XPN:
SEC. 33. Termination Initiated by the Domestic Worker. – The
A. Termination by Domestic Worker
domestic worker may terminate the employment relationship at
any time before the expiration of the contract for any of the
following causes:
1. Verbal or emotional abuse of the domestic
worker by the employer or any member of the
(a) Verbal or emotional abuse of the domestic worker by the household;
employer or any member of the household; 2. Inhuman treatment including physical abuse of
the domestic worker by the employer or any
(b) Inhuman treatment including physical abuse of the domestic member of the household;
worker by the employer or any member of the household; 3. Commission of a crime or offense against the
domestic worker by the employer or any member
(c) Commission of a crime or offense against the domestic worker
by the employer or any member of the household;
of the household;
4. Violation by the employer of the terms and
(d) Violation by the employer of the terms and conditions of the conditions of the employment contract and other
employment contract and other standards set forth under this standards set forth under this law;
law; 5. Any disease prejudicial to the health of the
domestic worker, the employer, or member/s of
(e) Any disease prejudicial to the health of the domestic worker, the household; and
the employer, or member/s of the household; and 6. Other causes analogous to the foregoing.
(f) Other causes analogous to the foregoing.
B. Termination by Employer
SEC. 34. Termination Initiated by the Employer. – An employer
may terminate the services of the domestic worker at any time 1. Misconduct or willful disobedience by the
before the expiration of the contract, for any of the following domestic worker of the lawful order of the
causes: employer in connection with the former’s work;
2. Gross or habitual neglect or inefficiency by the
(a) Misconduct or willful disobedience by the domestic worker of domestic worker in the performance of duties;
the lawful order of the employer in connection with the former’s 3. Fraud or willful breach of the trust reposed by
work; the employer on the domestic worker;
4. Commission of a crime or offense by the
(b) Gross or habitual neglect or inefficiency by the domestic
worker in the performance of duties; domestic worker against the person of the
employer or any immediate member of the
(c) Fraud or willful breach of the trust reposed by the employer employer’s family;
on the domestic worker; 5. Violation by the domestic worker of the terms
and conditions of the employment contract and
(d) Commission of a crime or offense by the domestic worker other standards set forth under this law;
against the person of the employer or any immediate member of 6. Any disease prejudicial to the health of the
the employer’s family; domestic worker, the employer, or member/s of
(e) Violation by the domestic worker of the terms and conditions
the household; and
of the employment contract and other standards set forth under 7. Other causes analogous to the foregoing.
this law;
Unjust dismissal of domestic worker
(f) Any disease prejudicial to the health of the domestic worker,
the employer, or member/s of the household; and - shall be paid the compensation already earned +
equivalent of 15 days work
(g) Other causes analogous to the foregoing.
Abandonment by domestic worker without justifiable reason
SEC. 35. Employment Certification. – Upon the severance of the
employment relationship, the employer shall issue the domestic - any unpaid salary due not exceeding the equivalent
worker within five (5) days from request a certificate of 15 days work shall be forfeited
employment indicating the nature, duration of the service and
- employer may recover from the domestic worker
work performance.
costs incurred related to the deployment expenses.
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- Provided, That the service has been terminated within - jointly and severally liable with the employer for all
six (6) months from the domestic worker’s the wages, wage-related benefits, and other benefits
employment. due a domestic worker.

If the duration of the domestic service is not determined either ARTICLE VII
in stipulation or by the nature of the service, the employer or SETTLEMENT OF DISPUTES
the domestic worker may give notice to end the working
relationship five (5) days before the intended termination of SEC. 37. Mechanism for Settlement of Disputes. – All labor-
related disputes shall be elevated to the DOLE Regional Office
the service. having jurisdiction over the workplace without prejudice to the
filing of a civil or criminal action in appropriate cases. The
The domestic worker and the employer may mutually agree DOLE Regional Office shall exhaust all conciliation and
upon written notice to pre-terminate the contract of mediation efforts before a decision shall be rendered.
employment to end the employment relationship.
Ordinary crimes or offenses committed under the Revised Penal
ARTICLE VI Code and other special penal laws by either party shall be filed
PRIVATE EMPLOYMENT AGENCIES (PEA) with the regular courts.

SEC. 36. Regulation of Private Employment Agencies (PEAs). –  Labor-related disputes: DOLE Regional Office
The DOLE shall, through a system of licensing and regulation, having jurisdiction over the workplace without
ensure the protection of domestic workers hired through the
prejudice to the filing of a civil or criminal action in
PEAs.
appropriate cases. The DOLE Regional Office shall
The PEA shall be jointly and severally liable with the employer exhaust all conciliation and mediation efforts before a
for all the wages, wage-related benefits, and other benefits due a decision shall be rendered.
domestic worker.  Ordinary crimes or offenses: regular courts.

The provision of Presidential Decree No. 442, as amended, ARTICLE VIII


otherwise known as the “Labor Code of the Philippines”, on SPECIAL PROVISIONS
qualifications of the PEAs with regard to nationality, net worth,
owners and officers, office space and other requirements, as well SEC. 38. Information Program. – The DOLE shall, in
as non-transferability of license and commission of prohibited coordination with the DILG, the SSS, the PhilHealth and Pag-
practices, shall apply. IBIG develop and implement a continuous information
dissemination program on the provisions of this Act, both at the
In addition, PEAs shall have the following responsibilities: national and local level, immediately after the enactment of this
law.
(a) Ensure that domestic workers are not charged or levied any
recruitment or placement fees; SEC. 39. “Araw Ng Mga Kasambahay”. – The date upon which
the President shall approve this “Domestic Workers Act” shall be
(b) Ensure that the employment agreement between the domestic designated as the “Araw ng mga Kasambahay”.
worker and the employer stipulates the terms and conditions of
employment and all the benefits prescribed by this Act; ARTICLE IX
PENAL AND MISCELLANEOUS PROVISIONS
(c) Provide a pre-employment orientation briefing to the
domestic worker and the employer about their rights and SEC. 40. Penalty. – Any violation of the provisions of this Act
responsibilities in accordance with this Act; declared unlawful shall be punishable with a fine of not less than
Ten thousand pesos (P10,000.00) but not more than Forty
(d) Keep copies of employment contracts and agreements thousand pesos (P40,000.00) without prejudice to the filing of
pertaining to recruited domestic workers which shall be made appropriate civil or criminal action by the aggrieved party.
available during inspections or whenever required by the DOLE
or local government officials; SEC. 41. Transitory Provision; Non-Diminution of Benefits. – All
existing arrangements between a domestic worker and the
(e) Assist domestic workers with respect to complaints or employer shall be adjusted to conform to the minimum standards
grievances against their employers; and set by this Act within a period of sixty (60) days after the
effectivity of this Act: Provided, That adjustments pertaining to
(f) Cooperate with government agencies in rescue operations wages shall take effect immediately after the determination and
involving abused or exploited domestic workers. issuance of the appropriate wage order by the RTWPBs:
Provided, further, That nothing in this Act shall be construed to
Private Employment Agency cause the diminution or substitution of any benefits and
privileges currently enjoyed by the domestic worker hired
- refers to any individual, legitimate partnership, directly or through an agency.
corporation or entity licensed to engage in the
recruitment and placement of domestic workers for SEC. 42. Implementing Rules and Regulations. – Within ninety
local employment. (90) days from the effectivity of this Act, the Secretary of Labor
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and Employment, the Secretary of Social Welfare and Homeworkers have the right to self-organization.
Development, the Secretary of the Interior and Local
Government, and the Director General of the Philippine National ARTICLE 152 [154] Regulations of Secretary of Labor.
Police, in coordination with other concerned government
agencies and accredited nongovernment organizations (NGOs) The regulations or orders to be issued pursuant to this Chapter
assisting domestic workers, shall promulgate the necessary rules shall be designed to assure the minimum terms and conditions of
and regulations for the effective implementation of this Act. employment applicable to the industrial homeworkers or field
personnel involved.
Fine: P10,000.00 – P40,000.00
- RD shall have the power to order and administer
ARTICLE X compliance with the provisions of law and
FINAL PROVISIONS regulations affecting terms and conditions of
employment of homeworkers.
SEC. 43. Separability Clause. – If any provision or part of this
Act is declared invalid or unconstitutional, the remaining parts
- Complaints for violations of labor standards and
or provisions not affected shall remain in full force and effect. terms and conditions of employment involving
money claims of homeworkers not exceeding
SEC. 44. Repealing Clause. – All articles or provisions of Chapter P5,000.00 per homeworker shall be heard and
III (Employment of Househelpers) of Presidential Decree No. decided by RD.
442, as amended and renumbered by Republic Act No. 10151 are
hereby expressly repealed. All laws, decrees, executive orders, If it exceeds P5,000.00: Regional Arbitration
issuances, rules and regulations or parts thereof inconsistent with Branch of NLRC
the provisions of this Act are hereby repealed or modified
accordingly. ARTICLE 153 [155] Distribution of Homework.

SEC. 45. Effectivity Clause. – This Act shall take effect fifteen For purposes of this Chapter, the "employer" of homeworkers
(15) days after its complete publication in the Official Gazette or includes any person, natural or artificial who, for his account or
in at least two (2) national newspapers of general circulation. benefit, or on behalf of any person residing outside the country,
directly or indirectly, or through an employee, agent contractor,
Chapter IV sub-contractor or any other person:
EMPLOYMENT OF HOMEWORKERS
1. Delivers, or causes to be delivered, any goods, articles or
ARTICLE 151 [153] Regulation of industrial homeworkers. materials to be processed or fabricated in or about a
home and thereafter to be returned or to be disposed of
The employment of industrial homeworkers and field personnel or distributed in accordance with his directions; or
shall be regulated by the government through the appropriate 2. Sells any goods, articles or materials to be processed or
regulations issued by the Secretary of Labor and Employment to fabricated in or about a home and then rebuys them
ensure the general welfare and protection of homeworkers and after such processing or fabrication, either by himself or
field personnel and the industries employing them. through some other person.

Industrial Homeworker Payment of homeworkers


- Worker engaged in industrial homework - Immediately upon receipt of the finished goods or
- Performs in or about his home any processing of articles, he employer shall pay the homeworker or
goods, materials, in whole or in part, which have contractor or subcontractor for the work performed.
been furnished directly or indirectly, by an employer
and thereafter to be returned by the latter. Employer’s solidary liability

Industrial homework - If the contractor or subcontractor fails to pay the


wages or earnings of his employees of homeworkers,
- System of production under which work for an the employer shall be jointly and severally liable, to
employer or contractor is carried out by a the extent of the work performed under the contract,
homeworker at his home. as if the employees were directly engaged by the
employer.
Prohibition against homework

No homework is allowed to manufacture or process the


following:

a. Explosives, fireworks, and similar articles;


b. Drugs and poisons; and
c. Other articles, the processing of which requires
exposure to toxic substances.
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Chapter V "(b) At regular intervals during such an assignment; and


EMPLOYMENT OF NIGHT WORKERS37
"(c) If they experience health problems during such, an
ARTICLE 154 Coverage. assignment which are not caused by factors other than the
performance of night work.
This chapter' shall apply to all persons, who shall be employed or
permitted or suffered to work at night, except those employed in "With the exception of a finding of unfitness for night work, the
agriculture, stock raising, fishing, maritime transport and inland findings of such assessments shall not be transmitted to others
navigation, during a period of not less than seven (7) consecutive without the workers' consent and shall not be used to their
hours, including the interval from midnight to five o'clock in the detriment."
morning, to be determined by the Secretary of Labor and
Employment, after consulting the workers' representatives/labor Right to free health assessment before undergoing night work
organizations and employers.
a. Before taking up an assignment as a night worker;
"'Night worker' means any employed person whose work b. At regular intervals during such an assignment; and
requires performance of a substantial number of hours of night c. If they experience health problems during such, an
work which exceeds a specified limit. This limit shall be fixed by
assignment which are not caused by factors other
the Secretary of Labor after consulting the workers'
representatives/labor organizations and employers." than the performance of night work.

Women are now allowed to work at night under RA 10151. Findings of such assessments shall not be transmitted to
others without the workers' consent and shall not be used
GR: Pregnant women and nursing mothers are not allowed to to their detriment.
work at night
XPN: finding of unfitness for night work.
XPN:
ARTICLE 156 Mandatory Facilities.
1. Certified by competent physician other than the
Suitable first·aid facilities shall be made available for workers
company physician; and performing night work, including arrangements where such
2. In the case of pregnant women, the physician workers, where necessary, can be taken immediately to a place
specifies the period of pregnancy that they can safely for appropriate treatment. The employers are likewise required
work. to provide safe and healthful working conditions and adequate or
reasonable facilities such as sleeping or resting quarters in the
Coverage establishment and transportation from the work premises to the
nearest point of their residence subject to exceptions and
 Covered: All persons employed or permitted to suffer guidelines to be provided by the DOLE."
work at night (which includes 12:00mn – 5:00 am)
for a period of 7 consecutive hours Right to safe and healthful working conditions
 Not covered: Employed in agriculture, stock raising,
a. Suitable first-aid facilities;
fishing, maritime transport, and inland navigation are
b. Sleeping or resting quarters in the establishment; and
not covered.
c. Transportation from work premises to nearest point f
Night worker their residences.

ARTICLE 157 Transfer.


- any employed person whose work requires
performance of a substantial number of hours of night Night workers who are certified as unfit for night work, due to
work which exceeds a specified limit. This limit shall health reasons, shall be transferred, whenever practicable, to a
be fixed by the Secretary of Labor after consulting similar job for which they are fit to work.
the workers' representatives/labor organizations and
employers "If such transfer to a similar job is not practicable, these workers
shall be granted the same benefits as other workers who are
ARTICLE 155 Health Assessment. unable to work, or to secure employment during such period.

At their request, workers shall have the right to undergo a health "A night worker certified as temporarily unfit for night work
assessment without charge and to receive advice on how to shall be given the same protection against dismissal or notice of
reduce or avoid health problems associated with their work: dismissal as other workers who are prevented from working for
reasons of health."
"(a) Before taking up an assignment as a night worker;

37
As amended by RA 10151, An Act Allowing the Employment of Night
Workers, Thereby Repealing Articles 130 And 131 Of PD 442, As Amended.
University of Santo Tomas Labor Law Review
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Right to be transferred to a similar job for which they are fit to "The provisions of this article shall not leave
work the effect of reducing the protection and
benefits connected with maternity leave under
- Night workers who are certified as unfit for night existing laws."
work, due to health reasons, shall be transferred,
whenever practicable, to a similar job for which they Women Night Workers
are fit to work.
Right of pregnant women to alternatives to night work
- If such transfer to a similar job is not practicable,
these workers shall be granted the same benefits as a. Before and after childbirth, for a period of at least
other workers who are unable to work, or to secure sixteen (16) weeks, which shall be divided between
employment during such period. the time before and after childbirth;
- A night worker certified as temporarily unfit for night b. For additional periods, in respect of winch a medical
work shall be given the same protection against certificate IS produced stating that said additional
dismissal or notice of dismissal as other workers who periods are necessary for the health of the mother or
are prevented from working for reasons of health." child:
1. During pregnancy;
ARTICLE 158 Women Night Workers.
2. During a specified time beyond the period, after
Measures shall be taken to ensure that an alternative to night childbirth is fixed pursuant to subparagraph (a)
work is available to women workers who would otherwise be above, the length of which shall be determined
called upon to perform such work: by the DOLE after consulting the labor
organizations and employers.
"(a) Before and after childbirth, for a period of at least sixteen
(16) weeks, which shall be divided between the time before and Alternatives include transfer to day work.
after childbirth;
Right of pregnant women against dismissal and diminution of
"(b) For additional periods, in respect of winch a medical benefits
certificate IS produced stating that said additional periods are
necessary for the health of the mother or child:
- Woman worker shall not lose the benefits regarding
"(1) During pregnancy; her status, seniority, and access to promotion which
may attach to her regular night work position.
"(2) During a specified time beyond the period, after
childbirth is fixed pursuant to subparagraph (a) above, ARTICLE 159 Compensation.
the length of which shall be determined by the DOLE
after consulting the labor organizations and employers. The compensation for night workers in the form of working time,
pay or similar benefits shall recognize the exceptional nature of
"During the periods referred to in this article: night work."

"(i) A woman worker shall not be dismissed or - The compensation for night workers in the form of working
given notice of dismissal, except for just or time, pay or similar benefits shall recognize the exceptional
authorized causes provided for in this Code nature of night work.
that are not connected with pregnancy,
childbirth and childcare responsibilities. ARTICLE 160 Social Services.

"(ii) A woman worker shall not lose the Appropriate social services shall be provided for night workers
benefits regarding her status, seniority, and and, where necessary, for workers performing night work."
access to promotion which may attach to her
regular night work position. Mandatory facilities required from employers

"Pregnant women and nursing mothers may a. Sleeping or resting quarters;


be allowed to work .at night only if a b. First-aid;
competent physician, other than the company c. Transportation facilities; and
physician, shall certify their fitness to render d. Social services.
night work, and specify, in the case of
pregnant employees, the period of the ARTICLE 161 Night Work Schedules.
pregnancy that they can safely work.
Before introducing work schedules requiring the services of night
"The measures referred to in this article may workers, the employer shall consult the workers'
include transfer to day work where this is representatives/labor organizations concerned on the details of
possible, the provision of social security such schedules and the forms of organization of night work that
benefits or an extension of maternity leave. are best adapted to the establishment and its personnel, as well as
on the occupational health measures and social services which are
University of Santo Tomas Labor Law Review
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required. In establishments employing night workers, than two hundred (200) except when the employer does
consultation shall take place regularly." not maintain hazardous workplaces, in which case, the
services of a graduate first-aider shall be provided for
Right to regular consultation the protection of workers, where no registered nurse is
available. The Secretary of Labor and Employment
a. Schedules and the forms of organizations of night shall provide by appropriate regulations, the services
work that are best adapted to the establishment and that shall be required where the number of employees
its personnel; and does not exceed fifty (50) and shall determine by
appropriate order, hazardous workplaces for purposes
b. Occupational health measures and social services.
of this Article;
2. The services of a full-time registered nurse, a part-time
Right of night workers to be consulted before the introduction
physician and dentist, and an emergency clinic, when
of work schedules the number of employees exceeds two hundred (200) but
not more than three hundred (300); and
- Employer is required to consult the workers’ 3. The services of a full-time physician, dentist and a full-
representatives/labor organizations concerned, before time registered nurse as well as a dental clinic and an
introducing work schedules requiring the services of infirmary or emergency hospital with one bed capacity
night workers, on the details of such schedules and for every one hundred (100) employees when the
the forms of organization of night work that are best number of employees exceeds three hundred (300).
adapted to the establishment and its personnel, as
well as on the occupational health measures and In cases of hazardous workplaces, no employer shall engage the
services of a physician or a dentist who cannot stay in the
social services which are required. premises of the establishment for at least two (2) hours, in the
case of those engaged on part-time basis, and not less than eight
BOOK IV
(8) hours, in the case of those employed on full-time basis. Where
the undertaking is non-hazardous in nature, the physician and
HEALTH, SAFETY, AND SOCIAL WELFARE BENEFITS
dentist may be engaged on retainer basis, subject to such
regulations as the Secretary of Labor and Employment may
Title I
prescribe to insure immediate availability of medical and dental
MEDICAL, DENTAL, AND OCCUPATIONAL SAFETY
treatment and attendance in case of emergency. (As amended by
Chapter I Presidential Decree NO. 570-A, Section 26)
MEDICAL AND DENTAL SERVICES
Emergency Medical and Dental Service
ARTICLE 162 [156] First-aid treatment.
- Mandatory obligation of every employer to provide
Every employer shall keep in his establishment such first-aid free medical and dental services and facilities that can
medicines and equipment as the nature and conditions of work be made available in emergency situations, such as
may require, in accordance with such regulations as the heart failures or cardiac attacks.
Department of Labor and Employment shall prescribe. - Medical and dental services depend on the number of
employees and the nature of the workplace.
The employer shall take steps for the training of a sufficient
number of employees in first-aid treatment.
No. of workers Medical personnel
First-aid treatment 10 – 50 1 graduate first-aider
1 full-time registered nurse
51 – 200
- Mandatory requirement for all employers to keep in 1 firs-aider
their establishment such firs- aid medicines and 1 full-time nurse
equipment as the nature and conditions of work may 1 part-time physician
201 – 300
require 1 part-time dentist
- Employer is also required to take steps for the emergency clinic
training of sufficient number of employees in first-aid 1 full-time nurse
treatment. 1 full-time physician
- First-aid does not include continued treatment or exceeding 300 1 full-time dentist
follow-up treatment for an injury or illness. dental clinic
infirmary/emergency hospital
ARTICLE 163 [157] Emergency medical and dental services.

It shall be the duty of every employer to furnish his employees in Part-time basis
any locality with free medical and dental attendance and facilities
consisting of: - Atleast 2 hours a day where the establishment has
more than 1 work shift a day.
1. The services of a full-time registered nurse when the
number of employees exceeds fifty (50) but not more
Full-time basis
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- At least 8 hours a day where the workplace has more e. Develop and implement a comprehensive
than 1 work shift a day. occupational health program for the employees of the
establishment.
Hazardous workplaces
ARTICLE 166 [160] Qualifications of health personnel.
a. Where the nature of work exposes the workers to
dangerous environmental elements, contaminants or The physicians, dentists and nurses employed by employers
work conditions; pursuant to this Chapter shall have the necessary training in
b. Where the workers are engaged in construction work, industrial medicine and occupational safety and health. The
Secretary of Labor and Employment, in consultation with
logging, firefighting, mining, quarrying, blasting, industrial, medical, and occupational safety and health
stevedoring, dock work, deep sea fishing, and associations, shall establish the qualifications, criteria and
mechanical farming; conditions of employment of such health personnel.
c. Where the workers are engaged in the manufacture or
handling of explosives and other pyrotechnic Minimum qualifications of health personnel
products;
d. Where the workers use or are exposed to heavy or Health personnel Qualifications
power-driven machinery or equipment; and  able to read and write
e. Workers use or are exposed to power-driven tools.  must have completed a
First-aider
course in first aid duly
ARTICLE 164 [158] When emergency hospital not required. certified
The requirement for an emergency hospital or dental clinic shall  passed Board Exams
not be applicable in case there is a hospital or dental clinic which  duly licensed to practice
is accessible from the employer’s establishment and he makes Nurse
nursing in the Philippines
arrangement for the reservation therein of the necessary beds  with atleast 50 hours of
and dental facilities for the use of his employees. training in occupational
nursing
Emergency hospital not required
 passed Board Exams
- Applicable for establishments with over 300  duly licensed to practice
employees medicine in the
- Employer is exempted from the requirement if a Physician Philippines
hospital or dental clinic accessible from the  graduate of training
employer’s establishment where he enters into an course in occupational
agreement for the reservation of the necessary beds medicine
and dental facilities for the use of his employer in  passed Board Exams
case of emergency.  duly licensed to practice
- It is considered as accessible if it is not more than 5 dentistry in the
kms from the workplace in an urban area or could be Dentist Philippines
reached for 25 minutes in case of rural areas.  completed a training in
occupational dental
ARTICLE 165 [159] Health program. services
The physician engaged by an employer shall, in addition to his
duties under this Chapter, develop and implement a ARTICLE 167 [161] Assistance of employer.
comprehensive occupational health program for the benefit of the
employees of his employer. It shall be the duty of any employer to provide all the necessary
assistance to ensure the adequate and immediate medical and
Duties of physician dental attendance and treatment to an injured or sick employee
in case of emergency.
a. Provide medical services to workers in cases of
emergency Employer’s assistance
b. Conduct pre-employment medical examination free
of charge, for the proper placement of workers; - It is the duty and obligation of any employer to
c. Conduct annual physical examination of workers, provide all the necessary assistance to ensure
free of charge; adequate and immediate medical attendance and
d. Collaborate closely with safety and technical treatment to an injured or sick employee in case of
personnel of the establishment to assure selection and emergency.
placement of workers; and
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Chapter II Training programs


OCCUPATIONAL HEALTH AND SAFETY
- Purpose:
ARTICLE 168 [162] Safety and health standards. - to increase the competence of occupational health and
safety personnel
The Secretary of Labor and Employment shall, by appropriate
orders, set and enforce mandatory occupational safety and health - To keep them informed of the latest trends, practices,
standards to eliminate or reduce occupational safety and health and technology in accident prevention.
hazards in all workplaces and institute new, and update existing,
programs to ensure safe and healthful working conditions in all ARTICLE 171 [165] Administration of safety and health
places of employment. laws.

Purpose 1. The Department of Labor and Employment shall be


solely responsible for the administration and
- Protect every working man against the hazards of enforcement of occupational safety and health laws,
injury, sickness, or death through safe and healthful regulations and standards in all establishments and
workplaces wherever they may be located; however,
working conditions chartered cities may be allowed to conduct industrial
safety inspections of establishments within their
Coverage respective jurisdictions where they have adequate
facilities and competent personnel for the purpose as
- All establishments, workplaces, and other determined by the Department of Labor and
undertakings, including agricultural enterprises, Employment and subject to national standards
whether operated for profit or not. established by the latter.
XPN: 2. The Secretary of Labor and Employment may, through
a. Those engaged in land, sea, and air appropriate regulations, collect reasonable fees for the
transportation; inspection of steam boilers, pressure vessels and pipings
XPN: dry docks, garages, hangars, and electrical installations, the test and approval for
safe use of materials, equipment and other safety
maintenance and repair shops and
devices and the approval of plans for such materials,
offices are covered. equipment and devices. The fee so collected shall be
b. Residential places exclusively devoted to deposited in the national treasury to the credit of the
dwelling purposes; and occupational safety and health fund and shall be
c. Activities of a lessee regarding safety of expended exclusively for the administration and
mining installations. enforcement of safety and other labor laws
administered by the Department of Labor and
ARTICLE 169 [163] Research. Employment.

It shall be the responsibility of the Department of Labor and Administration of safety and health laws
Employment to conduct continuing studies and research to
develop innovative methods, techniques and approaches for - DOLE has the sole responsibility for the
dealing with occupational safety and health problems; to discover administration and enforcement of occupational
latent diseases by establishing causal connections between safety and health laws in all workplaces wherever
diseases and work in environmental conditions; and to develop they may be located.
medical criteria which will assure insofar as practicable that no
employee will suffer impairment or diminution in health,
XPN: It may be delegated to chartered cities
functional capacity, or life expectancy as a result of his work and provided that they have adequate facilities and
working conditions. competent personnel for the purpose as
determined by DOLE.
Continuing studies and research o Effectivity: approval of SOLE
o Duration: effective until withdrawn by
- Purpose: SOLE
a. to establish safe exposure levels for various
periods of employment; and Mandatory obligation
b. to study new problems in occupational safety and
health. Persons Obligations
 keep and maintain his
ARTICLE 170 [164] Training programs. workplace free from
work hazards that are
The Department of Labor and Employment shall develop and Employer causing or likely to cause
implement training programs to increase the number and
competence of personnel in the field of occupational safety and
physical harm to the
industrial health. workers or damage to
property
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 cooperate with the e. Assist government agencies in the conduct of


employer in carrying out health and safety inspection or other programs.
the provisions of the law
 report to his supervisors Duties of safety man
Employee any work hazard that
made by the employer in a. Act as employer’s principal assistant and
compliance with consultant in the application of programs to
Occupational Health and remove the hazards from the workplace to
correct unsafe practices
Safety Standards
b. Serves as secretary to the Safety Committee;
 comply with all with and
c. Acts in an advisory capacity on all matters
all regulations and other
Other persons pertaining to safety for the guidance of
subsequent issuances of
employer and employees;
the SOLE.
d. Conducts investigation of accidents as
member of the Safety Committee;
e. Coordinates all safety training programs or the
Registration of business
employees and employer;
- Where: Regional office or authorized representative f. Conducts safety inspection as member of the
having jurisdiction thereof committee;
- When: 30 days before operation g. Maintains or helps in the maintenance of an
- Registration shall be free of charge efficient accident record system and
XPN: re-registration as if it were a new coordinate actions taken by supervisors to
establishment eliminate causes of accidents;
h. Provides assistance to government agencies in
Safety committee the conduct of health inspection, accident
investigation, or any other related programs;
- Should be organized within 1 month from the date and
the business starts operating. i. For purposes of effectiveness in a workplace,
- Shall be re-organized every January of the following he shall report directly to the employer.
year.
Inspection of workplace
Duties of a safety committee
- Every employer shall give the SOLE or his duly
a. Plan and develop accident prevention program; authorized representative access to its premises and
b. Direct the accident prevention efforts of the records at any time of the day or night when there is
establishment; work being undertaken to determine compliance with
c. Conduct safety meetings atleast once a month; existing laws, rules, and regulations.
d. Review reports of inspection, accident - Frequency: atleast once a year
investigation, and implementation of program;
e. Submit report of meetings and activities to the Types of inspection
manager;
f. Provide necessary assistance to government A. Technical safety inspection
inspecting authorities in the proper conduct of
- Inspection for purposes of safety determination of
their activities; and
boil, pressure vessels, internal combustion engines,
g. Initiate and supervise safety training for
electrical installations, elevators, hoisting equipment,
employees.
and other mechanical equipment.
Duties of employees
B. General Safety Inspection
a. Work in accordance with accepted safety
- Inspection of work environment including the
practices and standards established by the
location and operation of machinery other than those
employer in compliance with the provisions of
covered by technical safety inspections, adequacy of
this standards;
work space, ventilation, lighting, conditions of work
b. Report unsafe conditions and practices to the
environment, handling, storage and work procedures,
supervisor by making suggestions for correction
protection facilities and other safety and health
or removal of accident hazards;
hazards in the workplace.
c. Serve as members of the Safety Committee;
d. Cooperate actively with the Safety Committee;
and
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Duplication of inspection  the illness was legally compensability have


presumed to have risen been stricken off
- When the authority has been delegated, the DOLE out of employment  sickness must be the
shall not conduct similar inspection activities in the result of an occupational
area covered by the delegation disease listed in the “List
XPN: authority revoked, or for audit purposes. of Occupational
Diseases”
TITLE II
EMPLOYEES COMPENSATION AND STATE INSURANCE
FUND
Effectivity date of ECL: January 1, 1975
CHAPTER I
POLICY AND DEFINITIONS ARTICLE 173 [167] Definition of terms.

ARTICLE 172 [166] Policy. As used in this Title, unless the context indicates otherwise:

The State shall promote and develop a tax-exempt employees’ "Code" means the Labor Code of the Philippines instituted
compensation program whereby employees and their dependents, under Presidential Decree Numbered four hundred forty-two, as
in the event of work-connected disability or death, may promptly amended.
secure adequate income benefit and medical related benefits.
"Commission" means the Employees’ Compensation
Commission created under this Title.
Purpose
"SSS" means the Social Security System created under Republic
- Provide security against hazards of life characteristic Act Numbered Eleven hundred sixty-one, as amended.
of the modern industrial revolution.
- (eg). Accident, illness, old-age, loss of employment, "GSIS" means the Government Service Insurance System
etc. created under Commonwealth Act Numbered One hundred
- Employer’s usual defenses against claims filed by the eighty-six, as amended.
employee:
1. Employer exercised reasonable care in "System" means the SSS or GSIS, as the case may be.
providing a safe place to work, safe tools,
"Employer" means any person, natural or juridical, employing
and appliances; the services of the employee.
2. Doctrine of assumption of risk;
3. Negligence of a co-employee; and "Employee" means any person compulsorily covered by the
4. Contributory negligence. GSIS under Commonwealth Act Numbered One hundred eighty-
- Underlying theory of workmen’s compensation law is six, as amended, including the members of the Armed Forces of
to require the industry to pay for the damage it causes the Philippines, and any person employed as casual, emergency,
by making a reasonable compensation for injuries temporary, substitute or contractual, or any person compulsorily
incident to employment. covered by the SSS under Republic Act Numbered Eleven
hundred sixty-one, as amended.
Basic features of the new Employee’s Compensation Program "Person" means any individual, partnership, firm, association,
trust, corporation or legal representative thereof.
a. Integration of benefits;
b. Increase in benefits; "Dependent" means the legitimate, legitimated or legally adopted
c. Prompt payment of income benefits; or acknowledged natural child who is unmarried, not gainfully
d. Legal services dispensed with; employed, and not over twenty-one (21) years of age or over
e. Wider coverage; and twenty-one (21) years of age provided he is incapacitated and
f. More balanced rehabilitation program. incapable of self-support due to a physical or mental defect which
is congenital or acquired during minority; the legitimate spouse
Principle of social security living with the employee and the parents of said employee wholly
dependent upon him for regular support.
- Commission administers and settles claims from a
"Beneficiaries" means the dependent spouse until he/she
fund under its exclusive control.
remarries and dependent children, who are the primary
beneficiaries. In their absence, the dependent parents and subject
Workmen’s compensation act (WCA) vs. employees to the restrictions imposed on dependent children, the illegitimate
compensation law (ECL) children and legitimate descendants, who are the secondary
beneficiaries: Provided, That the dependent acknowledged
WCA ECL natural child shall be considered as a primary beneficiary when
 presumption of  principles of aggravation there are no other dependent children who are qualified and
compensability is applied and presumption of eligible for monthly income benefit.
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"Injury" means any harmful change in the human organism credits paid prior to the month of contingency by the total
from any accident arising out of and in the course of the number of calendar months of coverage in the same period.
employment.
"Average daily salary credit" in the case of the SSS means the
"Sickness" means any illness definitely accepted as an result obtained by dividing the sum of the six (6) highest monthly
occupational disease listed by the Commission, or any illness salary credits in the twelve-month period immediately preceding
caused by employment subject to proof that the risk of the semester of sickness or injury by one hundred eighty (180),
contracting the same is increased by working conditions. For this except where the month of injury falls within twelve (12)
purpose, the Commission is empowered to determine and calendar months from the first month of coverage, in which case
approve occupational diseases and work-related illnesses that it is the result obtained by dividing the sum of all monthly salary
may be considered compensable based on peculiar hazards of credits by thirty (30) times the number of calendar months of
employment. coverage in the period.

"Death" means loss of life resulting from injury or sickness. 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
"Disability" means loss or impairment of a physical or mental divided by the actual number of working days of the month of
function resulting from injury or sickness. contingency.

"Compensation" means all payments made under this Title for "Quarter" means a period of three (3) consecutive months ending
income benefits and medical or related benefits. on the last days of March, June, September and December.

"Income benefit" means all payments made under this Title to "Semester" means a period of two consecutive quarters ending in
the providers of medical care, rehabilitation services and hospital the quarter of death, permanent disability, injury or sickness.
care.
"Replacement ratio" - The sum of twenty percent and the
"Medical benefit" means all payments made under this Title to quotient obtained by dividing three hundred by the sum of three
the providers of medical care, rehabilitation services and hospital hundred forty and the average monthly salary credit.
care.
"Credited years of service" - For a member covered prior to
"Related benefit" means all payments made under this Title for January, 1975, nineteen hundred seventy-five minus the calendar
appliances and supplies. year of coverage, plus the number of calendar years in which six
or more contributions have been paid from January, 1975 up to
"Appliances" means crutches, artificial aids and other similar the calendar year containing the semester prior to the
devices. contingency. For a member covered on or after January, 1975,
the number of calendar years in which six or more contributions
"Supplies" means medicine and other medical, dental or surgical have been paid from the year of coverage up to the calendar year
items. containing the semester prior to the contingency.

"Hospital" means any medical facility, government or private, "Monthly income benefit" means the amount equivalent to one
authorized by law, an active member in good standing of the hundred fifteen percent of the sum of the average monthly salary
Philippine Hospital Association and accredited by the credit multiplied by the replacement ratio, and one and a half
Commission. percent of the average monthly salary credit for each credited
year of service in excess of ten years: Provided, That the monthly
"Physician" means any doctor of medicine duly licensed to income benefit shall in no case be less than two hundred fifty
practice in the Philippines, an active member in good standing of pesos.
the Philippine Medical Association and accredited by the
Commission. Chapter II
COVERAGE AND LIABILITY
"Wages" or "Salary", insofar as they refer to the computation of
benefits defined in Republic Act No. 1161, as amended, for SSS ARTICLE 174 [168] Compulsory coverage.
and Presidential Decree No. 1146, as amended, for GSIS,
respectively, except that part in excess of Three Thousand Pesos. Coverage in the State Insurance Fund shall be compulsory upon
all employers and their employees not over sixty (60) years of
"Monthly salary credit" means the wage or salary base for age: Provided, That an employee who is over (60) years of age
contributions as provided in Republic Act Numbered Eleven and paying contributions to qualify for the retirement or life
hundred sixty-one, as amended, or the wages or salary. insurance benefit administered by the System shall be subject to
compulsory coverage.
"Average monthly salary credit" in the case of the SSS means the
result obtained by dividing the sum of the monthly salary credits Compulsory coverage
in the sixty-month period immediately following the semester of
death or permanent disability by sixty (60), except where the a. Every employer shall be covered.
month of death or permanent disability falls within eighteen (18) b. Every employee not over 60 years of age shall be
calendar months from the month of coverage, in which case, it is
covered.
the result obtained by dividing the sum of all monthly salary
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c. An employee over 60 years of age shall be covered if Mechanics of the State Insurance Fund
he had been paying contributions to the System prior
to age 60 and has not been compulsorily retired. - Build up by the contributions of employers based on
d. An employee who is coverable by both the GSIS and the salaries of their employees.
SSS shall be compulsorily covered by both Systems. - Sick employee simply filed a claim with a new
neutral Employees Compensation Commission
ARTICLE 175 [169] Foreign employment. (ECC) which determines on the basis of the
employee’s supporting papers and medical evidence
The Commission shall ensure adequate coverage of Filipino whether or not compensation may be paid.
employees employed abroad, subject to regulations as it may
- Employer’s duty is to pay the regular monthly
prescribe.
premiums to the scheme.
Foreign employment
Compensable sickness
- Filipinos working abroad in the service of an
employer who carries on in the Philippines any trade, - Any illness listed as an occupational disease by the
business, industry, undertaking, or activities of any ECC;
kind are also covered. - Any illness caused by the employment, subject to
proof that risk of contracting the same is increased by
ARTICLE 176 [170] Effective date of coverage. working conditions (known as the theory of increased
risk)
Compulsory coverage of the employer during the effectivity of - When the worker is exposed to adverse working
this Title shall take effect on the first day of his operation, and conditions, or the risk of contracting the disease was
that of the employee, on the date of his employment. increased by the working condition
Effectivity date of coverage Occupational disease
 st
Employers: 1 day of operation but not earlier than - Results from the nature of employment and by nature
January 1, 1975 is meant conditions to which all employees of a class
 Employees: 1st day of employment are subject and which produce the disease as a natural
incident of a particular occupation, and attach to that
ARTICLE 177 [171] Registration. occupation a hazard which distinguishes it from the
Each employer and his employees shall register with the System
usual run of the occupations and is in excess of the
in accordance with its regulations. hazard attending employment in general.
a. Occurs in association with particular types of
Registration as requirement occupation
b. Disability due to injurious exposure grows gradually
- Employer and employees shall register with the over a period of time.
system
- Only one registration is needed for SSS, Philhealth, Doctrine of presumptive compensability and theory of
and Employees Compensation aggravation
 Private sector: SSS
 Public sector: GSIS - Abandoned under the new LC
- While these doctrines may have been abandoned, the
Penalty for non-registration liberality of the law still subsists. 38
- For claims that have accrued prior to the new LC, the
 Fine: P1,000.00 – P10,000.00 above rules should apply.
 Imprisonment: duration of the violation or non-
compliance or until such time that the Conditions for compensability of occupational disease
rectification of the violation has been made, at
a. Employee’s work must involve the risk described
the discretion of the court.
herein;
ARTICLE 178 [171] Limitation of liability. b. Disease was contracted as a result of the employee’s
exposure to the described risks;
The State Insurance Fund shall be liable for compensation to the c. Disease was contracted within a period of exposure
employee or his dependents, except when the disability or death and under such other factors necessary to contract it;
was occasioned by the employee’s intoxication, willful intention to and
injure or kill himself or another, notorious negligence, or d. No notorious negligence on the part of the employee.
otherwise provided under this Title.
38
Lazo vs. ECC (1990).
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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A.Y. 2017 – 2018, 1st Semester a | 81

NOTE: For the list of occupational diseases, refer to pp. “Arising out of” vs. In the course of”
384 – 391 of Labor Standards Law (2012) of Dean
Poquiz. Arising out of In the course of
 results from a risk or  doing the duty which he
Crucial test of compensability hazard which is is required to perform
necessarily or ordinarily  refers to time, place, and
- Existence of EER which is the jurisdictional or reasonably inherent circumstances
foundation for recovery of compensation under the in or incident to the
law. conduct of such work or
business
Proof is necessary and required
 refers to the origin or
cause of the accident
 If a claimant cannot prove the necessary work
and are descriptive of its
connection because the causes of the disease are still
character
unknown, it must be presumed that working
conditions increased the risk of contracting ailment.
 If there is no proof of the required work connection, Compensable injuries
the disease is not compensable.
a. Peculiar risks;
Employment is not a sole factor b. Street perils;
c. Acts of ministration (Personal comfort doctrine);
- It is enough that employment had contributed even in
d. Acts of God;
a small degree to the development of the disease.
e. Assaults;
Compensable illness XPN: assault occasional not attributable to
employment is not compensable
NOTE: refer to pp. 392 - 393 of Labor Standards Law f. Recreational activities;
(2012) of Dean Poquiz g. Acts for the benefit of the employer; and
h. Acts during emergency
Non-compensable illness
NOTE: refer to pp. 395 - 397 of Labor Standards Law
NOTE: refer to pp. 394 of Labor Standards Law (2012) of (2012) of Dean Poquiz.
Dean Poquiz
Compensable off-premise injuries
Injury
NOTE: refer to pp. 397 – 398 of Labor Standards Law
- Harmful change in the human organism from any (2012) of Dean Poquiz
accident sustained at work at the workplace, or
elsewhere while executing an order for the employer. Coming and going rule

Conditions for compensability of injuries - In the absence of special circumstance, and employee
injured in going to, or coming from his place of work
Result of an accident that satisfies all the following conditions: is excluded from the benefits of WCA.
- And injury is suffered as a consequence of risk and
a. Employee must have been injured at the place where hazards to which all members of the traveling public
his work requires him to be; are subject rather than risk and hazards having to do
b. Employee must have been performing his official with and originating in the work or business of the
functions; and employer
c. If injury was sustained elsewhere, employee must - Employer is not an insurer against all accidental
have been executing an order for the employer injuries which might happen to an employee while in
the course of employment.
“in the course of employment”
XPN:
- Takes place within the period of employment, at
a place where the employee may be, and while a. where the employee is proceeding to or from his
he is fulfilling his duties or is engaged in doing work on the premises of his employer;
something incidental thereto. b. where the employee is about to enter or about to
leave the premises of his employer by way of the
exclusive or customary means of ingress and
egress; (Proximity Rule)
University of Santo Tomas Labor Law Review
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o Injury sustained off the employer’s premise, C. Notorious Negligence


but while in close proximity thereto and
while using a customary means of ingress - more than simple or contributory negligence.
and egress, is deemed compensable. - employee deliberately disregarded his own
c. where the employee is charged, while on his way personal safety.
to or from his place of employment or at his - presumption: employee, by his instinct of self-
home, or during his employment, with some duty preservation takes precaution to avoid such
or special errand connected with his danger unless a willful intention is attributed to
employment; and him to end his life.
d. where the employer, as an incident of the
employment, provides the means of ARTICLE 179 [173] Extent of liability.
transportation to and from the place of
Unless otherwise provided, the liability of the State Insurance
employment. Fund under this Title shall be exclusive and in place of all other
liabilities of the employer to the employee, his dependents or
Injuries excluded from payment of compensation (State anyone otherwise entitled to receive damages on behalf of the
Insurance Fund’s limited liability or Principle of Exclusion) employee or his dependents. The payment of compensation under
this Title shall not bar the recovery of benefits as provided for in
Employee or his dependents are not entitled to Section 699 of the Revised Administrative Code, Republic Act
compensation for injury, sickness, disability, or death Numbered Eleven hundred sixty-one, as amended, Republic Act
occasioned by the following: Numbered Forty-eight hundred sixty-four as amended, and other
laws whose benefits are administered by the System or by other
A. Intoxication agencies of the government. (As amended by Presidential Decree
No. 1921).
- intoxication must be the proximate cause of
death or injury to preclude compensation
- he is not entirely himself or that his judgment is
impaired and his act, work, or conduct is visibly Exclusiveness of liability of the State Insurance Fund (SIF)
impaired
- employee who qualifies for the benefits shall have the
Conditions: option to choose the law under which the benefits
will be paid to him.
a. Proof of actual intoxication; - Employee cannot avail himself at the same time of
b. Intoxication must be of such degree that the similar benefits provided by different laws
employee is incapacitated from substantially - Employer may continue to grant benefits already
engaging in employment and performing his earned by the employees under any collective
task; bargaining agreement or any other arrangement.
c. Intoxication must be the probable cause of
the injury; and Benefits excluded by SIF
d. Intoxication must not only be the proximate
a. Gratuity benefits under Revised Administrative
cause but the employment thereof must not
Code;
be a contributing cause.
b. Retirement, disability, sickness, and death benefits
B. self-inflicted injuries under SSS Law;
c. Life insurance, disability, and retirement benefits
- intentionally self-inflicted or when an employee under GSIS Law;
has committed suicide. d. Gratuities and pensions for death and disabilities
- Willful intent to injure or kill one’s self or incurred in line of duty under R.A. 610;
another will preclude payment of compensation. e. Medical benefits administered by Philippine Health
Insurance Corporation;
XPN: Instances when suicide does not bar payment f. Other benefits granted by other laws and
of compensation: administered either by GSIS or SSS.

a. Results from insanity resulting from Right of option granted to and injured worker:
compensable injury or disease;
b. Occurs during a delirium resulting from a. Avail the compensation benefits under the LC; or
compensable injury or disease; and b. Sue the employer for damages under the NCC
c. Flows from an uncontrollable impulse
arising from compensable injury or disease. NOTE: Once the selection has been effected, the injured
worker or his heirs are no longer free to opt for the other
remedy, they cannot pursue both actions simultaneously.
University of Santo Tomas Labor Law Review
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ARTICLE 180 [174] Liability of third party/ies. five years experience in workmen’s compensation or
social security programs. All vacancies shall be filled for
1. When the disability or death is caused by circumstances the unexpired term only. (As amended by Section 19 [c],
creating a legal liability against a third party, the Executive Order No. 126)
disabled employee or the dependents, in case of his 2. The Vice Chairman of the Commission shall be
death, shall be paid by the System under this Title. In alternated each year between the GSIS General
case benefit is paid under this Title, the System shall be Manager and the SSS Administrator. The presence of
subrogated to the rights of the disabled employee or the four members shall constitute a quorum. Each member
dependents, in case of his death, in accordance with the shall receive a per diem of two hundred pesos for every
general law. meeting that is actually attended by him, exclusive of
2. Where the System recovers from such third party actual, ordinary and necessary travel and
damages in excess of those paid or allowed under this representation expenses. In his absence, any member
Title, such excess shall be delivered to the disabled may designate an official of the institution he serves on
employee or other persons entitled thereto, after full-time basis as his representative to act in his behalf.
deducting the cost of proceedings and expenses of the (As amended by Section 2, Presidential Decree No.
System. 1368)
3. The general conduct of the operations and management
Liabilities of 3rd parties functions of the GSIS or SSS under this Title shall be
vested in its respective chief executive officers, who shall
a. Claim compensation from the LC; or be immediately responsible for carrying out the policies
o System is subrogated to the rights of the of the Commission.
injured party or his dependents in 4. The Commission shall have the status and category of a
accordance with the general law. government corporation, and it is hereby deemed
attached to the Department of Labor and Employment
b. Sue for damages in accordance with law. for policy coordination and guidance. (As amended by
Section 2, Presidential Decree No. 1368)
NOTE: injured employee cannot claim payment twice for
the same injuries, from the 3rd party and from the Composition of ECC
SSS/GSIS.
SOLE Chairman
ARTICLE 181 [175] Deprivation of the benefits.
Executive Dir. Of ECC Member
Except as otherwise provided under this Title, no contract, GSIS General Manager Member
regulation or device whatsoever shall operate to deprive the SSS Administrator Member
employee or his dependents of any part of the income benefits President, PhilHealth Member
and medical or related services granted under this Title. Existing Employee’s Representative Member
medical services being provided by the employer shall be Employer’s Representative Member
maintained and continued to be enjoyed by their employees.

No deprivation of benefits
Qualification
a. Medical services, appliances, and supplies;
- Appointive members (EE’s and ER’s representatives)
b. Rehabilitation services;
should have atleast 5 years experience in Workmen’s
c. Temporary total disability;
compensation or social security program
d. Permanent partial disability; and
e. Death. ECC is a government corporation which is attached to DOLE.
Chapter III ARTICLE 183 [177] Powers and duties.
ADMINISTRATION
The Commission shall have the following powers and duties:
ARTICLE 182 [176] Employees’ Compensation Commission.
1. To assess and fix a rate of contribution from all
1. To initiate, rationalize, and coordinate the policies of employers;
the employees’ compensation program, the Employees’ 2. To determine the rate of contribution payable by an
Compensation Commission is hereby created to be employer whose records show a high frequency of work
composed of five ex-officio members, namely: the accidents or occupational diseases due to failure by the
Secretary of Labor and Employment as Chairman, the said employer to observe adequate safety measures;
GSIS General Manager, the SSS Administrator, the 3. To approve rules and regulations governing the
Chairman of the Philippine Medical Care Commission, processing of claims and the settlement of disputes
and the Executive Director of the ECC Secretariat, and arising therefrom as prescribed by the System;
two appointive members, one of whom shall represent 4. To initiate policies and programs toward adequate
the employees and the other, the employers, to be occupational health and safety and accident prevention
appointed by the President of the Philippines for a term in the working environment, rehabilitation other than
of six years. The appointive member shall have at least those provided for under Article 190 hereof, and other
University of Santo Tomas Labor Law Review
Faculty of Civil Law Dean Salvador A. Poquiz
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related programs and activities, and to appropriate Disbursement of funds


funds therefor; (As amended by Section 3, Presidential
Decree No. 1368) - Limited to 12% of the contributions and investment
5. To make the necessary actuarial studies and earnings collected.
calculations concerning the grant of constant help and - Purpose of limitation: protect contributions belonging
income benefits for permanent disability or death and
to covered member-employees which are trust funds.
the rationalization of the benefits for permanent
disability and death under the Title with benefits
ARTICLE 185 [179] Investment of funds.
payable by the System for similar contingencies:
Provided, That the Commission may upgrade benefits
Provisions of existing laws to the contrary notwithstanding, all
and add new ones subject to approval of the President:
revenues as are not needed to meet current operational expenses
and Provided, further, That the actuarial stability of the
under this Title shall be accumulated in a fund to be known as
State Insurance Fund shall be guaranteed: Provided,
the State Insurance Fund, which shall be used exclusively for
finally, That such increases in benefits shall not require
payment of the benefits under this Title, and no amount thereof
any increases in contribution, except as provided for in
shall be used for any other purpose. All amounts accruing to the
paragraph (b) hereof; (As amended by Section 3,
State Insurance Fund, which is hereby established in the SSS and
Presidential Decree No. 1641)
GSIS, respectively, shall be deposited with any authorized
6. To appoint the personnel of its staff, subject to civil
depository bank approved by the Commission, or invested with
service law and rules, but exempt from WAPCO law
due and prudent regard for the liquidity needs of the System. (As
and regulations;
amended by Section 4, Presidential Decree No. 1368)
7. 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
Investment of funds
advance on a quarterly basis, the remittances of
allotment of the loading fund for the Commission’s - SIF should be exclusively used for payment of
operational expenses based on its annual budget as duly employee’s compensation benefits.
approved by the Department of Budget and - Can be invested with due regard of liquidity of the
Management; (As amended by Section 3, Presidential system.
Decree No. 1921)
8. To have the power to administer oath and affirmation, ARTICLE 186 [180] Settlement of claims.
and to issue subpoena and subpoena duces tecum in
connection with any question or issue arising from The System shall have original and exclusive jurisdiction to settle
appealed cases under this Title; any dispute arising from this Title with respect to coverage,
9. To sue and be sued in court; entitlement to benefits, collection and payment of contributions
10. To acquire property, real or personal, which may be and penalties thereon, or any other matter related thereto,
necessary or expedient for the attainment of the subject to appeal to the Commission, which shall decide appealed
purposes of this Title; cases within twenty (20) working days from the submission of the
11. To enter into agreements or contracts for such services evidence.
and as may be needed for the proper, efficient and
stable administration of the program; Filing of claims
12. To perform such other acts as it may deem appropriate
for the attainment of the purposes of the Commission  filed by accredited
and proper enforcement of the provisions of this Title. physician or accredited
(As amended by Section 18, Presidential Decree No. Claims for Medical Benefits
hospital
850)
 filed with SSS/GSIS
- In addition to those stated under this Article, ECC has
the power to determine and approve additional  filed by employee, his
occupational diseases and work-related illnesses with dependents, or his
specific criteria based on the peculiar hazards of employer on his behalf
employment.  filed with SSS/GSIS
Claims for Income Benefits
 should be filed within 3
ARTICLE 184 [178] Management of funds. years from the time that
the COA accrued
All revenues collected by the System under this Title shall be (otherwise, barred)
deposited, invested, administered and disbursed in the same
manner and under the same conditions, requirements and
safeguards as provided by Republic Act Numbered eleven
Appeals
hundred sixty-one, 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
- if claim is denied, can appeal to ECC
disburse each year not more than twelve percent of the - period: within 10 days from receipt of decision
contribution and investment earnings collected for operational - appeal should be filed with SSS/GSIS
expenses, including occupational health and safety programs,
incidental to the carrying out of this Title.
University of Santo Tomas Labor Law Review
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ARTICLE 187 [181] Review. and actual or anticipated as well as unexpected losses,
may require.
Decisions, orders or resolutions of the Commission may be c. Contributions under this Title shall be paid in their
reviewed on certiorari by the Supreme Court on question of law entirety by the employer and any contract or device for
upon petition of an aggrieved party within ten (10) days from the deductions of any portion thereof from the wages or
notice thereof. salaries of the employees shall be null and void.
d. When a covered employee dies, becomes disabled or is
- decisions, orders, or resolutions of the ECC may be separated from employment, his employer’s obligation
reviewed on certiorari by the SC on questions of law to pay the monthly contribution arising from that
- period: within 10 days from notice employment shall cease at the end of the month of
- Motion for reconsideration is not required contingency and during such months that he is not
receiving wages or salary.
ARTICLE 188 [182] Enforcement of decisions.
Employer’s contribution
a. Any decision, order or resolution of the Commission
shall become final and executory if no appeal is taken monthly contribution: 1% of
therefrom within ten (10) days from notice thereof. All actual wages or salary
GSIS
awards granted by the Commission in cases appealed received by him as of the last
from decisions of the System shall be effected within day of the month
fifteen days from receipt of notice. monthly contribution: 1% of
b. In all other cases, decisions, orders and resolutions of SSS monthly salary credit as of
the Commission which have become final and executory
the last dat of the month
shall be enforced and executed in the same manner as
decisions of the Court of First Instance, and the
Commission shall have the power to issue to the city or
provincial sheriff or to the sheriff whom it may appoint, Effect of death of death or separation
such writs of execution as may be necessary for the
enforcement of such decisions, orders or resolutions, - Employer’s obligation to pay the monthly
and any person who shall fail or refuse to comply contribution ceases on the last day of the month of
therewith shall, upon application by the Commission, be contingency.
punished by the proper court for contempt.
Effects of disability
Finality and enforcement of decision; appeal taken to CA
within 15 days - Employer’s obligation to pay the monthly
contribution shall be suspended during the months
Finality of decision of ECC: if no appeal was taken within that he is not receiving salary or wages.
10 days from notice
Non-refundable
- Where appeal is taken: Court of Appeals (according
to Revised Administrative Circular 1-95) - Refund of required contributions is not allowed.
- Period: within 15 days from notice of award,
judgment, final order, or resolution of ECC ARTICLE 190 [184] Government guarantee.

ECC has the power to issue writ of execution necessary The Republic of the Philippines guarantees the benefits
for the enforcement of such decision, order, or resolution. 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
- Failure to comply with writ of execution: punished
appropriations from the national government.
for contempt.
Government guarantee
Chapter IV
CONTRIBUTIONS
- Government guarantees benefits provided under the
ARTICLE 189 [183] Employers’ contributions. law and accepts general responsibility for the
solvency of the SIF.
a. Under such regulations as the System may prescribe,
beginning as of the last day of the month when an Chapter V
employee’s compulsory coverage takes effect and every MEDICAL BENEFITS
month thereafter during his employment, his employer
shall prepare to remit to the System a contribution Article 191 [185] Medical services.
equivalent to one percent of his monthly salary credit.
b. The rate of contribution shall be reviewed periodically Immediately after an employee contracts sickness or sustains an
and subject to the limitations herein provided, may be injury, he shall be provided by the System during the subsequent
revised as the experience in risk, cost of administration period of his disability with such medical services and appliances
University of Santo Tomas Labor Law Review
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as the nature of his sickness or injury and progress of his Medical information in connection with treatment or
recovery may require, subject to the expense limitation examination for which compensation is sought is not
prescribed by the Commission. considered as privileged communication.
Medical services ARTICLE 194 [188] Refusal of examination or treatment.

a. Ward services during confinement in an accredited If the employee unreasonably refuses to submit to medical
hospital examination or treatment, the System shall stop the payment of
b. Subsequent domiciliary care by an accredited further compensation during such time as such refusal continues.
physician What constitutes an unreasonable refusal shall be determined by
c. Medicines the System which may, on its own initiative, determine the
d. Ambulatory services in an accredited hospital, in case necessity, character and sufficiency of any medical services
furnished or to be furnished.
of injury.
Effect of refusal to submit to medical examination
Conditions for entitlement
- System can stop payment of compensation benefits if
Duly reported to the system;
employee unreasonably refuses to submit to medical
Sustains injury or contracts sickness; examination or treatment

ARTICLE 195 [189] Fees and other charges.


System has been duly notified of the injury or sickness.
All fees and other charges for hospital services, medical care and
Period of entitlement appliances, including professional fees, shall not be higher than
those prevailing in wards of hospitals for similar services to
 Beginning the 1st day of injury or sickness; injured or sick persons in general and shall be subject to the
 During subsequent period of disability; and regulations of the Commission. Professional fees shall only be
 As the progress of his recovery may require. appreciably higher than those prescribed under Republic Act
Numbered sixty-one hundred eleven, as amended, otherwise
ARTICLE 192 [186] Liability. known as the Philippine Medical Care Act of 1969.

The System shall have the authority to choose or order a change Fees and other charges
of physician, hospital or rehabilitation facility for the employee,
and shall not be liable for compensation for any aggravation of a. Hospital confinement;
the employee’s injury or sickness resulting from unauthorized b. Domiciliary care;
changes by the employee of medical services, appliances, supplies, c. Ambulatory care; and
hospitals, rehabilitation facilities or physicians. d. Surgical expense benefit.
System not liable ARTICLE 196 [190] Rehabilitation services.
- System is not liable for unauthorized changes in a. The System shall, as soon as practicable, establish a
medical services, appliances, supplies, hospitals, continuing program, for the rehabilitation of injured
rehabilitation services, or physicians. and handicapped employees who shall be entitled to
rehabilitation services, which shall consist of medical,
ARTICLE 193 [187] Attending physician. surgical or hospital treatment, including appliances if
they have been handicapped by the injury, to help them
Any physician attending an injured or sick employee shall become physically independent.
comply with all the regulations of the System and submit reports b. As soon as practicable, the System shall establish
in prescribed forms at such time as may be required concerning centers equipped and staffed to provide a balanced
his condition or treatment. All medical information relevant to program of remedial treatment, vocational assessment
the particular injury or sickness shall, on demand, be made and preparation designed to meet the individual needs
available to the employee or the System. No information of each handicapped employee to restore him to suitable
developed in connection with treatment or examination for which employment, including assistance as may be within its
compensation is sought shall be considered as privileged resources, to help each rehabilitee to develop his mental,
communication. vocational or social potential.

Duty of attending physician Rehabilitation

- Should comply with all regulations of the system and - process by which there is provided a balanced
submit medical reports in prescribed forms 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
University of Santo Tomas Labor Law Review
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within its resources to help each rehabilitee to shall be notified of the injury or sickness. (As amended
develop his mental, vocational or social potentials. by Section 2, Executive Order No. 179)
b. The payment of such income benefit shall be in
Nature of coverage accordance with the regulations of the Commission. (As
amended by Section 19, Presidential Decree No. 850)
- voluntary
Temporary Total Disability (TTFD)
Conditions for entitlement
- As result of the injury or sickness, employee is
a. Has reported to the system; a. unable to perform any gainful occupation for
b. Sustains permanent disability as a result of a continuous period not exceeding 120 days;
compensable injury or sickness; and or
c. Has not been placed in suitable employment. b. injury or sickness still requires medical
attendance beyond 120 days but not to
Period of entitlement exceed 240 days.

- Provided during the period of disability unless Conditions for entitlement


suspended or terminated under the following
grounds: a. Employee has been duly reported to the system;
a. Suitable employment; b. Employee sustains temporary total disability as a
b. Self-termination; or result of injury or sickness; and
c. Suspension or termination of such services c. System has been duly notified of the injury or
by rehabilitation center. sickness which caused his disability.

Extent of services Period for entitlement

- medical-surgical management, hospitalization, - Income benefit shall be paid beginning on the 1 st


necessary appliances and supplies, vocational training day of the disability
and assistance for placement. (Transportation - Shall not be paid longer than 120 consecutive
allowances between place of residence and the days
rehabilitation facility, lunch, and dormitory
allowances in appropriate cases may be included in XPN: if injury or sickness requires medical
the extent of services). attendance beyond 120 days but not beyond
240 days from onset of liability.
Limits of system’s liability
- After employee’s full recovery, period covered
System shall not be legally responsible when the injury, by a relapse or recurrence of illness resulting in
sickness, disability or death during the rehabilitation is disability shall be considered independent of and
occasioned by any of the following: separate from the period covered by the original
disability.
a. Intoxication;
b. Willful intention to injure or kill himself or Amount
another; or
c. Notorious negligence. - 90% of average daily salary credit
- daily income benefit shall not be less than
Chapter VI P10.00 nor more than P90.00
DISABILITY BENEFITS - Should not be paid more than 120 days

ARTICLE 197 [191] Temporary total disability. XPN: injury or sickness requires more
extensive treatment that lasts beyond 120
a. Under such regulations as the Commission may days.
approve, any employee under this Title who sustains an
injury or contracts sickness resulting in temporary total Suspension of income benefit
disability shall, for each day of such a disability or
fraction thereof, be paid by the System an income
- Employee’s failure to submit a monthly medical
benefit equivalent to ninety percent of his average daily
report certified by his attending physician.
salary credit, subject to the following conditions: the
daily income benefit shall not be less than Ten Pesos nor
ARTICLE 198 [192] Permanent total disability.
more than Ninety Pesos, nor paid for a continuous
period longer than one hundred twenty days, except as
a. Under such regulations as the Commission may
otherwise provided for in the Rules, and the System
approve, any employee under this Title who contracts
University of Santo Tomas Labor Law Review
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sickness or sustains an injury resulting in his permanent Amount of benefit


total disability shall, for each month until his death, be
paid by the System during such a disability, an amount - Each dependent child, not exceeding 5, shall be
equivalent to the monthly income benefit, plus ten entitled to 10% of the monthly income benefit of
percent thereof for each dependent child, but not the employee.
exceeding five, beginning with the youngest and without
- SSS: 115% of the average salary credit x
substitution: Provided, That the monthly income benefit
shall be the new amount of the monthly benefit for all replacement ratio and 1 ½ of average monthly
covered pensioners, effective upon approval of this salary credit for each credited year of service in
Decree. excess of 10 years.
b. The monthly income benefit shall be guaranteed for five - GSIS: basic monthly pension + 20% thereof, but
years, and shall be suspended if the employee is not less than P250.00 not more than the actual
gainfully employed, or recovers from his permanent salary at the time of contingency.
total disability, or fails to present himself for
examination at least once a year upon notice by the Suspension of income benefit
System, except as otherwise provided for in other laws,
decrees, orders or Letters of Instructions. (As amended a. Failure to present himself for examination at
by Section 5, Presidential Decree No. 1641)
least once a year upon notice by the System;
c. The following disabilities shall be deemed total and
permanent:
b. Failure to submit a quarterly medical report
1. Temporary total disability lasting continuously for certified by his attending physician as required
more than one hundred twenty days, except as under Sec. 5 of Rule IV hereof;
otherwise provided for in the Rules; c. Complete or full recovery from his permanent
2. Complete loss of sight of both eyes; disability, or
3. Loss of two limbs at or above the ankle or wrist; d. Upon being gainfully employed.
4. Permanent complete paralysis of two limbs;
5. Brain injury resulting in incurable imbecility or ARTICLE 199 [193] Permanent partial disability.
insanity; and
6. Such cases as determined by the Medical Director a. Under such regulations as the Commission may
of the System and approved by the Commission. approve, any employee under this Title who contracts
d. The number of months of paid coverage shall be defined sickness or sustains an injury resulting in permanent
and approximated by a formula to be approved by the partial disability shall, for each month not exceeding the
Commission. period designated herein, be paid by the System during
such a disability an income benefit for permanent total
Permanent Total Disability (PTD) disability.
b. The benefit shall be paid for not more than the period
- As a result of injury or sickness, employee is unable designated in the following schedules:
to perform any gainful occupation for a continuous
period exceeding 120 days Complete and permanent No. of months
loss of the use of
XPN: disability not exceeding 240 days id declared 1 thumb 10
as temporary total disability. 1 index finger 8
1 middle finger 6
Conditions for entitlement 1 ring finger 5
1 little finger 3
a. Employee has been duly reported to the System; 1 big toe 6
b. Employee sustains the permanent total disability any toe 3
as a result of injury or sickness; and 1 arm 50
1 hand 39
c. System has been duly notified of the injury or
1 foot 31
sickness which caused his disability.
1 leg 46
1 ear 10
Period of entitlement
both ears 20
hearing of 1 ear 10
- Full monthly income benefit shall be paid for all
hearing of both ears 50
compensable months of disability.
sight of 1 eye 25
- Monthly income benefit is guaranteed for 5
years. c. A loss of a wrist shall be considered as a loss of the
hand, and a loss of an elbow shall be considered as a loss
of the arm. A loss of an 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
University of Santo Tomas Labor Law Review
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toe: Provided, That such a loss shall be either the 1 hand 39


functional loss of the use or physical loss of the member. 1 foot 31
(As amended by Section 7, Presidential Decree No. 1 leg 46
1368)
d. In case of permanent partial disability less than the total 1 ear 10
loss of the member specified in the preceding both ears 20
paragraph, the same monthly income benefit shall be hearing of 1 ear 10
paid for a portion of the period established for the total hearing of both ears 50
loss of the member in accordance with the proportion sight of 1 eye 25
that the partial loss bears to the total loss. If the result is
a decimal fraction, the same shall be rounded off to the
next higher integer.
Amount of benefit
e. In cases of simultaneous loss of more than one member
or a part thereof as specified in this Article, the same
monthly income benefit shall be paid for a period
- If disability exceeds 12 months, income benefit shall
equivalent to the sum of the periods established for the be paid in monthly pension
loss of the member or the part thereof. If the result is a - System may pay income benefit in lump sum.
decimal fraction, the same shall be rounded off to the
next higher integer. Chapter VII
f. In cases of injuries or illnesses resulting in a permanent DEATH BENEFITS
partial disability not listed in the preceding schedule,
the benefit shall be an income benefit equivalent to the ARTICLE 200 [194] Death.
percentage of the permanent loss of the capacity to
work. (As added by Section 7, Presidential Decree No. a. Under such regulations as the Commission may
1368) approve, the System shall pay to the primary
g. Under such regulations as the Commission may beneficiaries upon the death of the covered employee
approve, the income benefit payable in case of under this Title, an amount equivalent to his monthly
permanent partial disability may be paid in monthly income benefit, plus ten percent thereof for each
pension or in lump sum if the period covered does not dependent child, but not exceeding five, beginning with
exceed one year. (As added by Section 7, Presidential the youngest and without substitution, except as
Decree No. 1368) provided for in paragraph (j) of Article 167 hereof:
Provided, however, That the monthly income benefit
Permanent Partial Disability (PPD) shall be guaranteed for five years: Provided, further,
That if he has no primary beneficiary, the System shall
- As a result of injury or sickness, employee suffers a pay to his secondary beneficiaries the monthly income
benefit but not to exceed sixty months: Provided,
permanent partial loss of the use of any part of his
finally, That the minimum death benefit shall not be less
body than fifteen thousand pesos. (As amended by Section 4,
- employee loses the use of any particular anatomical Presidential Decree No. 1921)
part of his body which disables him to continue with b. Under such regulations as the Commission may
his former work. approve, the System shall pay to the primary
beneficiaries upon the death of a covered employee who
Conditions of entitlement is under permanent total disability under this Title,
eighty percent of the monthly income benefit and his
a. Employee has been duly reported to the System; dependents to the dependents’ pension: Provided, That
b. Employee sustains the permanent partial disability as the marriage must have been validly subsisting at the
a result of the injury or sickness; and time of disability: Provided, further, That if he has no
c. System has been duly notified of the injury or primary beneficiary, the System shall pay to his
secondary beneficiaries the monthly pension excluding
sickness which caused his disability. the dependents’ pension, of the remaining balance of the
five-year guaranteed period: Provided, finally, That the
Period of entitlement minimum death benefit shall not be less than fifteen
thousand pesos. (As amended by Section 4, Presidential
Complete and permanent loss No. of months Decree No. 1921)
of the use of c. The monthly income benefit provided herein shall be
1 thumb 10 the new amount of the monthly income benefit for the
1 index finger 8 surviving beneficiaries upon the approval of this decree.
1 middle finger 6 (As amended by Section 8, Presidential Decree No.
1368)
1 ring finger 5
d. Funeral benefit. - A funeral benefit of Three thousand
1 little finger 3 pesos (P3,000.00) shall be paid upon the death of a
1 big toe 6 covered employee or permanently totally disabled
any toe 3 pensioner. (As amended by Section 3, Executive Order
1 arm 50 No. 179)
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Conditions for entitlement - Not exceed 60 months and aggregate income not
less than P15,000.00.
a. Employee has been duly reported to the System; - If receiving income benefit for PTD at the time
b. Employee died as a result of an injury or sickness; of death: monthly pensions excluding pension of
and remaining balance of 5-year guaranteed period.
c. System has been duly notified of his death, as well as
the injury or sickness which caused his death. Entitlement to funeral benefits

A. Primary beneficiaries a. Surviving spouse; or


b. Legitimate child who spent for the funeral services;
1. Legitimate spouse or
2. Legitimate, legitimated, legally adopted or c. Other person who can show incontrovertible proof or
acknowledged natural children proof of his having borne the funeral expenses.
a. Unmarried
b. Not gainfully employed Chapter VIII
c. Not over 21 years of age or over 21 years PROVISIONS COMMON TO INCOME BENEFITS
provided he is incapacitated and incapable of
self-support due to physical or mental defect ARTICLE 201 [195] Relationship and dependency.
which is congenital or acquired during minority. All questions of relationship and dependency shall be determined
as of the time of death.
B. Secondary Beneficiaries
Nature of relationship
1. Legitimate parents
2. Legitimate descendants, illegitimate children - Legitimate relationship
a. unmarried,
b. not gainfully employed Dependency
c. not over 21 years of age, or over 21 years
provided he is incapacitated and incapable of - Relationship between 2 persons where the claimant-
self-support due to physical or mental defect beneficiary looks up to or relies for support upon
which is congenital or acquired during minority. another for the purpose of maintaining himself
consistent to the dependent’s station in life
Priority Rule
Proof of relationship
- primary beneficiaries shall have priority claim to
death benefits over secondary beneficiaries - Dependency must be established by submission of
1. primary beneficiaries proof of filiation.
2. Secondary beneficiaries a. Record of birth;
3. ECC b. any authentic document;
c. final judgment of the court;
Amount of income benefit d. continuous possession of a status of a legitimate
child; or
A. Primary Beneficiaries e. Marriage certificate.
- equivalent to monthly income benefit for ARTICLE 202 [196] Delinquent contributions.
permanent total disability (guaranteed for 5
years), increased by 10% for each dependent a. An employer who is delinquent in his contributions
child not exceeding 5 shall be liable to the System for the benefits which may
- GSIS: aggregate monthly benefit payable shall have been paid by the System to his employees or their
not exceed monthly wage or salary actually dependents, and any benefit and expenses to which such
employer is liable shall constitute a lien on all his
received by employee at the time of his death
property, real or personal, which is hereby declared to
- Shall not be less than P15,000.00 be preferred to any credit, except taxes. The payment
- Shall be paid during the entire period for which by the employer of the lump sum equivalent of such
they are entitled thereto. liability shall absolve him from the payment of the
- If receiving PTD at the time of death: 80% delinquent contribution and penalty thereon with
monthly income benefit + dependent’s pension respect to the employee concerned.
10% for every dependent child not exceeding 5 b. Failure or refusal of the employer to pay or remit the
contribution herein prescribed shall not prejudice the
B. Secondary Beneficiaries 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
University of Santo Tomas Labor Law Review
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the name of his employee, the employer shall be liable to entitled to receive wages, salaries or allowances for holidays,
the System for the lump sum equivalent to the benefits vacation or sick leaves and any other award of benefit under a
to which such employee or his dependents may be collective bargaining or other agreement.
entitled.
Earned benefits
Liability of delinquent employer
- Takes the form of accrued leave credits such as
a. Benefits which may have been paid to his employee vacation leaves and sick leaves.
or their dependents; and - Though not reporting, employee gets paid for same
b. Fine of not less than P1,000.00 nor more than against leave credits
P10,000.00, and/or imprisonment for the duration of - Receipt of such payment will not bar receipt of
the violation or non-compliance or until such time compensation benefits from SIF administered by
that a rectification of the violation has been made, at SSS.
the discretion of the court;
c. 3% penalty/mo. From the date the contribution falls ARTICLE 206 [200] Safety devices.
due until paid.
In case the employee’s injury or death was due to the failure of
Payment does not erase criminal liability. the employer to comply with any law or to install and maintain
safety devices or to take other precautions for the prevention of
ARTICLE 203 [197] Second injuries. injury, said employer shall pay the State Insurance Fund a
penalty of twenty-five percent (25%) of the lump sum equivalent
If any employee under permanent partial disability suffers of the income benefit payable by the System to the employee. All
another injury which results in a compensable disability greater employers, especially those who should have been paying a rate of
than the previous injury, the State Insurance Fund shall be liable contribution higher than required of them under this Title, are
for the income benefit of the new disability: Provided, That if the enjoined to undertake and strengthen measures for the
new disability is related to the previous disability, the System occupational health and safety of their employees.
shall be liable only for the difference in income benefits.
Effect of failure to install safety devices
Liability to second injuries
- Penalty: 25% of lump sum equivalent of income
- SIF is liable for income benefit of the new disability benefit payable by system
if employee is under PPD suffers another
compensable injury greater than previous injury. ARTICLE 207 [201] Prescriptive period.
- If new liability is related to previous disability, SIF
No claim for compensation shall be given due course unless said
only liable for difference. claim is filed with the System within three (3) years from the time
the cause of action accrued. (As amended by Section 5,
ARTICLE 204 [198] Assignment of benefits. Presidential Decree No. 1921)
No claim for compensation under this Title is transferable or
Prescriptive period of filing of claims
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
- 3 years from the time the COA accrued (otherwise
of the employee to the System. barred by prescription)

Principle of non-assignment of benefits ARTICLE 208 [202] Erroneous payment.

a. If the System in good faith pays income benefit to a


- Compensation benefits are unassignable, not subject
dependent who is inferior in right to another dependent
to tax, and not subject to execution, attachment, or with whom another dependent is entitled to share,
garnishment, levy, or seizure, exempted from such payments shall discharge the System from liability,
creditor’s claims. 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
Purpose of law determine as to whom payments should be made in
accordance with such regulations as the Commission
- Free award from any liability or charge so that may approve. If the money is payable to a minor or
claimant may enjoy it to the fullest. incompetent, payment shall be made by the System to
such person or persons as it may consider to be best
ARTICLE 205 [199] Earned benefits. qualified to take care and dispose of the minor’s or
incompetent’s property for his benefit.
Income benefits shall, with respect to any period of disability, be
payable in accordance with this Title to an employee who is
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Erroneous payment absences. Entries in the logbook shall be made within


five days from notice or knowledge of the occurrence of
- Payment in good faith made by system to a the contingency. Within five days after entry in the
dependent with inferior right discharges the system logbook, the employer shall report to the System only
from liability those contingencies he deems to be work-connected.
b. All entries in the employer’s logbook shall be made by
XPN: dependent with superior right notifies
the employer or any of his authorized official after
system of his claim prior to payment. verification of the contingencies or the employees’
absences for a period of a day or more. Upon request by
ARTICLE 209 [203] Prohibition. the System, the employer shall furnish the necessary
certificate regarding information about any contingency
No agent, attorney or other person pursuing or in charge of the appearing in the logbook, citing the entry number, page
preparation or filing of any claim for benefit under this Title number and date. Such logbook shall be made available
shall demand or charge for his services any fee, and any for inspection to the duly authorized representative of
stipulation to the contrary shall be null and void. The retention the System.
or deduction of any amount from any benefit granted under this c. Should any employer fail to record in the logbook an
Title for the payment of fees for such services is prohibited. actual sickness, injury or death of any of his employees
Violation of any provision of this Article shall be punished by a within the period prescribed herein, give false
fine of not less than five hundred pesos nor more than five information or withhold material information already
thousand pesos, or imprisonment for not less than six months nor in his possession, he shall be held liable for fifty percent
more than one year, or both, at the discretion of the court. of the lump sum equivalent of the income benefit to
which the employee may be found to be entitled, the
Prohibition on award of Attorney’s fees payment of which shall accrue to the State Insurance
Fund.
- Purpose: promote the lot of the working man d. In case of payment of benefits for any claim which is
promoting speedy social justice later determined to be fraudulent and the employer is
- Defaulting employer or government agency remains found to be a party to the fraud, such employer shall
liable for attorney’s fees reimburse the System the full amount of the
compensation paid.
Award of attorney’s fees
Employer’s logbook
- Separate and distinct item from compensation
benefits - Within 5 days from notice or knowledge of
- No prohibition against imposing 10% attorney’s fee occurrence of contingency, employer is required to
on the employer for the benefit of claimant’s counsel. record chronologically actual sickness, injure, or
death of employees in logbook.
ARTICLE 210 [204] Exemption from levy, tax, etc. - Failure to record: employer liable to SIF for 50% of
lump sum equivalent of income benefit due to
All laws to the contrary notwithstanding, the State Insurance employee
Fund and all its assets shall be exempt from any tax, fee, charge,
levy, or customs or import duty and no law hereafter enacted ARTICLE 212 [206] Notice of sickness, injury or death.
shall apply to the State Insurance Fund unless it is provided
therein that the same is applicable by expressly stating its name. Notice of sickness, injury or death shall be given to the employer
by the employee or by his dependents or anybody on his behalf
Exemption from levy, tax, etc. within five days from the occurrence of the contingency. No
notice to the employer shall be required if the contingency is
Purpose known to the employer or his agents or representatives.

- Aimed at promoting the lot of the working man Purpose of notice of sickness, death, injury to employer
completely securing payment of compensation
benefits free from attachment, garnishment, - Entries shall be made within 5 days from notice or
execution, levy, tax, or charges. knowledge of occurrence of contingency
- Report to SIF shall be made within 5 days from entry.

CHAPTER IX Notice not required


RECORDS, REPORTS, and PENAL PROVISIONS
a. Medical, surgical, and hospital services and supplies
ARTICLE 211 [205] Record of death or disability. have been voluntarily furnished by employer
b. Employer or his duly authorized representatives had
a. All employers shall keep a logbook to record
chronologically the sickness, injury or death of their actual knowledge of the contingency; and
employees, setting forth therein their names, dates and c. Employer did not suffer by delay or failure to give
places of the contingency, nature of the contingency and notice.
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ARTICLE 213 [207] Penal provisions. of benefits, as well as the contribution base, shall be those
provided under Commonwealth Act Numbered One Hundred
a. The penal provisions of Republic Act Numbered Eleven Eighty-Six, as amended by Presidential Decree No. 1146, plus
Hundred Sixty-One, as amended, and Commonwealth twenty percent thereof. (As added by Section 9, Presidential
Act Numbered One Hundred Eighty-Six, as amended, Decree No. 1368 [May 1, 1978] and subsequently amended by
with regard to the funds as are thereunder being paid Section 7, Presidential Decree No. 1641)
to, collected or disbursed by the System, shall be
applicable to the collection, administration and - LC only applies on employee’s compensation
disbursement of the Funds under this Title. The penal
provisions on coverage shall also be applicable. Title III
b. Any person who, for the purpose of securing entitlement MEDICARE
to any benefit or payment under this Title, or the
issuance of any certificate or document for any purpose ARTICLE 216 [209] Medical care.39
connected with this Title, whether for him or for some
other person, commits fraud, collusion, falsification, The Philippine Medical Care Plan shall be implemented as
misrepresentation of facts or any other kind of anomaly, provided under Republic Act Numbered Sixty-One Hundred
shall be punished with a fine of not less than five Eleven, as amended.
hundred pesos nor more than five thousand pesos and
an imprisonment for not less than six months nor more National Health Insurance Act of 1995 (RA 7875 as amended
than one year, at the discretion of the court. by RA 9241)
c. If the act penalized by this Article is committed by any
person who has been or is employed by the Commission - provide health insurance coverage and ensure
or System, or a recidivist, the imprisonment shall not be affordable, acceptable, available and accessible health
less than one year; if committed by a lawyer, physician
care services for all citizens of the Philippines
or other professional, he shall, in addition to the penalty
prescribed herein, be disqualified from the practice of - means for the healthy to help pay for the care of the
his profession; and if committed by any official, sick and for those who can afford medical care to
employee or personnel of the Commission, System or subsidize those who cannot.
any government agency, he shall, in addition to the - limited to paying for the utilization of health services
penalty prescribed herein, be dismissed with prejudice by covered beneficiaries or to purchasing health
to re-employment in the government service. services in behalf of such beneficiaries.
Table of penalty Title IV
ADULT EDUCATION
a. Imprisonment for not less than 1 year – person who
has been or is employed by the ECC, SSS, or GSIS, ARTICLE 216 [210] Adult education.
or a recidivist;
b. Disqualification from practice of profession – lawyer, Every employer shall render assistance in the establishment and
physician, or any other professional; operation of adult education programs for their workers and
employees as prescribed by regulations jointly approved by the
c. Dismissal with prejudice to re-employment in Department of Labor and Employment and the Department of
government service – any official, employee, or Education, Culture and Sports.
personnel of ECC, SSS, GSIS, or any governmental
agency. - Employer shall assist its workers and employees in
establishment and operation of adult education
ARTICLE 214 [208] Applicability. programs
This Title shall apply only to injury, sickness, disability or death
- Should confirm to prescribed regulations jointly
occurring on or after January 1, 1975. approved and issued by DOLE and DepEd
- May be initiated jointly or either employer or
Applicability employee.

- Only to injury, sickness, disability, or death occurring


on or after January 1, 1975.

ARTICLE 215 [208-A] 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 39
RA No. 7875, as amended by RA No. 9241, Instituting the National Health
amended: Provided, however, That the formulas for computation Insurance Program and establishing the Philippine Health Insurance
Corporation.