LABOR STANDARDS REVIEWER
LABOR STANDARDS o Learners
I. LABOR STANDARDS
What is labor standards?
• Giving what is due to the worker
• Minimum terms and conditions of employment that an
employer must provide to the workers
• Labor standards are fluid. What may be true now may not
be true in the future
• LABOR STANDARDS are those labor statutes that prescribe
standards relating to terms and conditions of
employment for compliance by employers
o like the laws on hours of work, weekly rest
periods, holiday pay, wages, and laws dealing
with women, minors, house-helpers, and
industrial home-workers.
Purpose of Labor standards (APIR)
1. Alleviate the plight of workers
2. Protection to workers against injustices
3. Impose sanctions on those who violate
4. Redress for violation of basic employee rights
Coverage of labor laws on standards
• Wages
• Working conditions and rest periods
o Hours of work
o Weekly rest periods
o Holiday, service incentive leaves and service charge
o 13th month pay
• Working conditions for special groups of employees
o Women
o Minors
o Househelpers
o Homeworkers
o Apprentices
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o Handicapped
• Termination of employment
o Substantive due process
o Procedural due process
o Compliance with the two notice requirement
1. Notice of the violation
2. Notice of termination
When can labor laws on standards apply? Labor laws can only
apply when there is an employer-employee relationship
When is there EMPLOYER-EMPLOYEE Relationship?
• Jeepney driver and owners
o The boundary system is only the mode of
compensation
o The owners of the jeepney still exercise control over
the drivers in determining the route
• There is NO employer-employee relationship in:
o Company and agent of company paid in commission –
the company does not have control over the agent
o Resident physician and the training hospital – residency
is simply a continuation of their medical course. It is a
pursuit of further education on a specific discipline.
How to determine the existence of the employer-employee
relationship:
The 4-Fold Test: When there is –
1. Selection and engagement of employees
2. Payment of wages
3. Power of dismissal
4. Power to control the employees conduct
a. Control of employees conduct is the most crucial and
determinative indicator of the existence of the
employer-employee relationship
The 2-Tiered Test for EMPLOYER-EMPLOYEE RELATIONSHIP –
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Economic reality test:
• Find the employee if he is economically dependent on the
other, then there is employer-employee relationship.
• Orosco v. 5th Division of the Court of Appeals
o Orosco was terminated. His case for illegal dismisal
was dismissed.
 Court held that he was an independent
contractor.
 Petitioner’s main occupation is not a columnist.
She herself admits that she contributes articles
to other publications. Thus she not fully
dependent on Philippine Daily Inquirer.
o Orosco was considered as a freelance writer. Economic
reality test was applied.
• Sonsa v. NLRC
Contract of employment
• Not an ordinary contract. It is also endowed with public
interest.
• Chavez v. NLRC
o Can a contract between an employer and
employee be determinative of an employer-
employee relationship.
o The contract stated that Chavez was not an employee.
o Other provisions of the contract showed that it was a
contract of employment between an employer and
employee.
o Court held that existence of an employer-
employee relationship cannot be repudiated
in an employment contract when the facts
clearly showed otherwise.
o Employment status is defined by law and not
what the parties say it should be.
The exclusivity provision
• Generally invalid, EXCEPT when:
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o Position of the employee is such that it would be
presumed that if he transfers to a competing
employer, what he knows can be used by the
competitor against the previous employer.
(trade secrets)
• Consulta v. Court of Appeals
o The appointment of the complainant provided that she
must represent the company on an exclusive basis and
must not directly or indirectly engage with other
companies that compete against her employer.
o Restriction was considered reasonable because it only
limited transactions with other companies that
competed with that of her employer.
o What is prohibited is an encompassing
restriction.
 In another case, although the restriction was
broad, it was held to be reasonable because it
was only for a limited time and place. (Del
Castillo v. Richmond)
Retainership agreement – a work for hire contract. It falls between
a one-time contract and full-time employment. Its distinguishing
feature is that the employer pays in advance for work to
be specified later. Additional contracts regarding the
performance of this work may also apply.
• Coca-Cola Bottlers, Phil. v. Climaco
o Whether employer-employee relationship exists under
a retainership agreement.
o Court held that the company lacked the power of
control over the performance of the respondent by his
duties. Dr. Climaco was declared not an employee for
being udner a retainership agreement.
o Dr. Climaco was not told how to conduct his physical
examination. What is important is that the control
refers to how the work should be done.
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General rule when it comes to resident physicians: there is • All benefits of the employee under the CBA
employee-employer relationship. EXCEPT WHEN: o Severance pay
• When there is a training agreement. o Unpaid salaries for work done
The training program is duly accredited or approved by the
government agency The following determines the amount of wages:
1. Collective bargaining agreement – provided that what the
LABOR-ONLY CONTRACTING JOB-ONLY CONTRACTING wage prescribed is more than what is under the law.
When there is no sufficient The person is in an independent 2. employment contract – provided that what the wage
capital and equipment. Can only business BUT the capital and prescribed is more than what is under the law.
supply labor facilities belongs to the principal 3. Law
No relationship between Carries on an independent
contractor and employee. The business and undertakes work Note: Collective bargaining agreement determines the rights of the
relationship is between the on his own account employees. When there is a CBA, this becomes the law between the
employee and the principal employer and employee provided that it does not violate law or
employer public morals
Example: agencies who hire
people and assign them to Facilities
companies • articles or services for the benefit of the employee or
*An independent contractor has all the facilities. The person his family
transacting with the independent contractor only has control • Items of expense necessary for the laborer’s and his family’s
over the result of the work of the independent contractor. existence

II. WAGES To allow deduction in the value of facilities from the

employer’s wages
A. Wages a. proof that such facilities are customarily furnished by the
• Wages are defined as: trade
1. Renumeration or earnings
2. expressed in terms of money b. provision of deductible facilities is voluntarily accepted in
3. fixed or acscertained on a: writing by the employee
a. time
b. task c. facilities are charged at fair and reasonable value
c. piece or
d. commission basis Mere availment is not sufficient to allow deductions from
4. payable by an employer to an employee employee’s wages.
5. under a written or unwritten contract
6. for work done or to be done. Food or snacks: supplements not facilities

What are considered to be part of wages? Supplements

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• constitute extra remuneration or special privileges or benefits c. workers employed in cottage industries duly registered in
given to or received by the laborers over and above their accordance with law and who perform work in their homes
ordinary earnings or wages.
• Independent of the wage and not deductible d. workers duly registered cooperatives as recommended by the
• For the benefit of the employer bureau of cooperative development and approved by the
Secretary of Labor
What an employee has worked for, his employer must pay.
e. Farm Tenancy of lease hold
WAGES SALARIES
paid to blue collar workers, paid to white collar workers. Equal Pay for Equal Work
for skilled or unskilled manual denotes a higher grade of • Persons who work with substantially equal
labor paid at stated daily, employment, a superior grade qualifications, skill, effort and responsibility, under
weekly, monthly or seasonal of services and a position of similar conditions should be paid similar salaries.
periods. office.
• If an employer accords employees the same position and rank,
NOT subject to execution or excluded in the computation of the presumption is that these employees perform equal work.
attachment except for debts basic salary
incurred for food, shelther, • sick, vacation and o Presumption: Same position and rank, equal
clothing and, medical maternity leaves work
attendance (Rosario Gaa v • nigh differentials
Court of Appeals) • regular holiday pay
• premiums for work done B. Minimum Wage Rates
on rest days and special • Lowest basic wage rate fixed by law that an employer can pay
holidays his employees (statutory minimum wage)

Living wage
• economically feasible to maintain the minimum standards of
living necessary for the health and efficiency and general well-
being of the employees within the framework of the national
economic and social development program.
Exclusions from coverage
a. persons in the personal service of another
b. homeworkers engaged in needlework
RA 6727 (Wage Rationalization Act)
• Mandates the fixing of the statutory minimum wages
applicable to different industrial sectors, namely, non-
agricultural, agricultural plantation and non- plantation,
cottage/handicraft, and retail/service, depending on the
number of workers or capitalization or annual gross sales in
some sectors
• Established the Regional Tripartite Wages and Productivity
Boards which has the authority to fix the wage rates

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 LABOR STANDARDS REVIEWER
Coverage
• Wage increases apply to all private sector workers and
employees regardless of their position, designation, or status,
and irrespective of the method by which their wages are paid
Exclusions
1. Househelpers, family drivers and workers in the personal
service of another
2. Workers and employees
o In retail service establishments regularly employing not
more than 10
o Distressed establishments
o Other firms or employers as determined by the board,
when specifically exempted from compliance for a
period fixed by the board.
3. Workers of registered Barangay Micro Business Enterprises
with Certificates of Authority issued by the Office of the
Municipal or City Treasurer
Minimum wage of workers paid by results is determined
through:
a. Time and motion studies
b. Consultation with representatives of employers and workers
organizations in a tripartite conference called by the DOLE
Secretary
Ability to Pay is Immaterial
• Serious business losses is not a defense to payment of labor
standards benefits. Employer cannot exempt himself form
liability to pay minimum wages because of poor
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financial condition of the company; the payment of
minimum wages is not dependent on the employer’s ability to
pay.
Non Diminution
General Rule: Nothing in the Labor Code shall be construed to
eliminate or in any way diminish supplements, or other employee
benefits being enjoyed at the time of the promulgation of this Code.
Benefits being given to employees cannot be taken back or
reduced unilaterally by the employer because the benefit has
become part of the employment contract, written or
unwritten.
Exception: To correct and error, otherwise, if the error is left
uncorrected for a reasonable period of time, it ripens into a company
policy and employees can demand for it as a matter of right.
Bonuses does not form part of salary. Generally, they are not
demandable. However, the following are demandable
bonuses:
1. When given with condition
2. 13th month salary
a. 14th or more are no longer demandable
3. When it forms part of the contract
4. When given as company policy for at least 6 months,
customary or voluntary employer practice
a. Requisites for voluntary employer practice such
that the same cannot be unilaterally withdrawn
anymore:
i. Practiced over a long period of time
ii. Consistent and deliberate
Four Elements of Wage distortion
a. Existing hierarchy of positions with corresponding salary
rates
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b. Significant change in the salary rate of a lower pay class facility for encashment employee to receive their
with a concomitant increase in the salary rate of a higher one within a radius of 1 wage within the period and in
kilometer from the the amount prescribed under
c. Elimination of the distinction between the two levels workplace the Labor Code
o The employer, or any of
d. Existence of the distortion in the same region of the his agents or • There is a bank or ATM facility
country representative, does not within a radius of 1 km
receive any pecuniary
benefit, directly or • Employer shall issue a
C. Payment of Wages indirectly, from the evidencing payment of wages,
arrangement. benefits and deductions for a
Art. 102 Forms of payment – An employee may only be paid by o The employees are given particular period upon request
legal tender by the employer Art 1705 of the Civil Code – laborer’s reasonable time during of the concerned employee
wages shall be paid in legal currency. banking hours to withdraw
their wages from the bank • ATM system of payment will
Promissory notes, vouchers, tokens, tickets, chits, or any object other which time shall be not result in diminution of
than legal tender, even when expressly requested by the employee considered as benefits and privileges of the
are not allowed. compensable hours worked employee and neither the
if done during working latter incurs additional
Legal tender – that currency sufficient under the law to effect hours expenses in the process
payment of a debt or obligation (Sibal, Phil. Legal Encyclopedia, 608) o The payment by is with
the written consent of the • Employer shall assume full
All notes, coins, currencies issued by the Central Bank are legal employees concerned if responsibility in case the
tender for all debts, public and private. A check is not legal tender. there is no collective wage protection provisions of
WHEN PAYMENT OF CHECK WHEN PAYMENT THROUGH agreement authorizing the law and regulations are not
OR MONEY IS ALLOWED ATM IS ALLOWED payment of wages by bank complied with under the
• When such manner of • With the written consent of checks. arrangement
payment is customary on the the employee
date of effectivity of this Code
• Because of special • Employees are given Penalty for Violation – Art 288 of the RPC imposes a penalty of
circumstances in appropriate reasonable time to withdraw arresto mayor or a fine ranging from 200-500 pesos or both to any
regulations issued by the their wages from the bank person who shall pay the wages due a laborer employed by him by
Secretary of Labor and facility, and if done during means of tokens or objects other than legal currency of the
Employment working hours, shall be Philippines.
• When stipulated in the CBA or considered as compensable
where all these conditions are hours worked Art. 103 Time of payment – wages shall be paid at least once
met: every two weeks or twice a month at intervals not exceeding
o There is a bank or other • System shall allow the sixteen days.

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Exceptions:
1. Force majeure or circumstances beyond the employer’s
control provided that he pays the wages immediately after
2. Wages of employees engaged to perform tasks that
cannot be completed in two weeks. In the absence of a
CBA or arbitration award:
a. Payments are made at intervals not exceeding sixteen
days , in proportion to the amount of work completed
b. Final settlement shall be made upon completion of
work
Art. 104 Place of Payment – Payment of wages shall be made at or
near the place of undertaking except as otherwise provided by such
regulations Secretary of Labor and Employment may prescribe under
conditions to ensure greater protection of wages
Rule VIII, Section 4
a. As a general rule, the place of payment shall be at or near the
place of undertaking unless:
1. Reason of the deterioration of peace and order
conditions or of actual or impending emergencies
caused by fire, flood, epidemic or other calamity
rendering payment impossible
2. Employer provides free transportation back and forth
3. Time spent by the employees in collecting wages shall
be considered compensable hours
b. No employer shall pay his employees in any bar, night or day club,
drinking establishment, massage clinic, dance hall or other similar
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places or in places where games are played with stakes of money or
thing reperesenting money except in the case of persons employed in
said places.
Art. 105 Direct Payment of Wages Wages shall be paid directly to
the workers to who they are due
Exceptions:
a. Force Majeure – during which case the wages may be paid to
another person under a written authority given by the
worker.
b. When the worker has died – payment to the heirs without
need for intestate proceedings. Claimants shall execute an
affidavit attesting to their relationship to the deceasese.
c. In case of conflicting claims over the uncollected wages of
deceased employee:” It should be borne in mind that in cases
where the second wife had in good faith contracted marriage
with the decedent notwithstanding the existence of his
marriage with the first wife, the court has generally sought
and applied a just and equitable solution and division of the
decedent’s estate among the two innocent parties”.
Payment through Contractor
The leader who a contracted a stevedoring work may receive
payment of wages for the workers. The wages was undertaken by not
in their individual capacities but as a group through their leader-
contractor.
Contractor or subcontractor
Art106 – When an employer enters into a contract for the
performance of its work, the employees of the contractor and of the
latter’s subcontractor shall be paid in accordance with the provisions
of this Code. In the event that the contractor or subcontractor
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fails to pay the wages of his employees in accordance with
this Code, the employer shall be jointly and severally liable
with his contractor or subcontractor to such employees to the
extent of the work performed under the contract, in the same manner
and extent that he is liable to employees directly employed by him.
The Secretary of Labor and Employment may, by appropriate
regulations, restrict or prohibit the contracting-out of labor to protect
the rights of workers.
There is "labor-only" contracting where the person supplying
workers to an employer does not have substantial capital or
investment in the form of tools, equipment, machineries, work
premises, among others, and the workers recruited and placed by
such person are performing activities which are directly related to the
principal business of such employer. In such cases, the person or
intermediary shall be considered merely as an agent of the employer
who shall be responsible to the workers in the same manner and
extent as if the latter were directly employed by him.
Purpose of the law – to protect the workers from some
unscrupulous employers. Thus, the law creates an employer-
employee relationship between the employer and the contractor’s
workers.
Directly related activities and activities necessary or
desirable in the usual business or trade
Directly related activities – those which are directly related to the
principal business of the employer – covered by Art 106
Activities necessary or desirable in the usual business or trade –
covered by Article 280
Legal effect of a finding that the contractor is merely a “labor
only” contractor – employer is responsible to the employee of
the the labor only contractor as though they were directly
employed by him
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In house agency – a contractor or subcontractor engaged in the
supply of labor which is: a.)owned and controlled by the principal:
and b.) operates solely for the principal owning managing, or
controlling it. This is contrary to law public policy.
Job contracting – allowed by law if:
a. Contractor carries out an independent business and
undertakes the contract work on his own account, under his
own responsibility, according to his own manner and method,
from the contorl and direction of his employer or principal in
all matters connected with the performance of work except as
to results;
b. The contract has substantial capital or investment in the form
of tools, equipment, machineries, work premises and other
materials which are necessary in the conduct of his business.
There is no employer-employee relationship between contractors,
employees and the principal. However, when a contractor fails to pay
the wages of his employees, he becomes obliged to do so as though
he were the employer, but only for this purpose.
Indirect employer – one who contracts with an independent
contractor for the performance of any work, task, job or project nor
directly related to the employer’s business.
Posting of bond – An employer or indirect employer may require
the contractor or subcontractor to furnish a bond equal to the cost
of labor under contract, on condition that the bond will answer for the
wages due the employees should the contractor or subcontractor, as
the case may be, fail to pay the same.
Solidary liability – Other provisions of the law notwithstanding,
every employer or indirect employer shall be held responsible
with his contractor or subcontractor for any violation of any
provision of this Code. For purposes of determining the extent of
their civil liability under this Chapter, they shall be considered as
direct employers.
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Worker preference in case of bankruptcy – In the event of
bankruptcy or liquidation of an employer’s business, his
workers shall enjoy first preference as regards their wages
and other monetary claims, any provisions of law to the
contrary notwithstanding. Such unpaid wages and monetary
claims shall be paid in full before claims of the government and other
creditors may be paid. (As amended by Section 1, Republic Act No.
6715, March 21, 1989).
Attorney’s fees – (a) In cases of unlawful withholding of wages, the
culpable party may be assessed attorney’s fees equivalent to ten
percent of the amount of wages recovered; (b) It shall be unlawful for
any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s fees which exceed
ten percent of the amount of wages recovered.
D. Prohibitions Regarding Wages
o No employer shall limit or otherwise interfere with the freedom of
any employee to dispose of his wages;
o Oblige any of his employees to patronize any store or avail of the
services offered by any person.
o Wage Deductions: No employer on his behalf or on behalf
of any person make any deductions from the wages of his
employees.
Note: Article 1706 allows deduction for a debt due the employer.
Which law shall prevail?
o Deduction from employee’s salary as the company’s share for
job procurement, even if based on a contract in writing;
[Commando Security Agency vs. NLRC, 211 SCRA 645 (1992)].
The contract is void ab initio being contrary to law and public
policy. [Mercury Drug Co., Inc., vs. Dayao, 117 SCRA 99, 166
(1982)];
o An employee’s obligations arising from non-payment of stock
subscription to the corporation cannot be deducted from the
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wages of the employee. [Apodaca vs. NLRC, 172 SCRA 442
(1989)].
o Deductions to ensure employment – deductions in
consideration of employment or retention in employment.
o Retaliatory measures – refusal to pay, or to reduce wages and
benefits, discharge or in any manner discriminate against an
employee who has filed any complaint or instituted any
proceeding under this title or has testified or is about to testify
in such proceedings. (P. D. 850).
Exceptions:
1. To recompense employer for payment of premiums in case
employee is insured by the employer with his consent;
2. For union dues where the right of the worker or his union to
check off is recognized by the employer and authorized by the
individual worker;
3. In other cases where the deduction is authorized by law or
regulation issued by the Secretary of Labor, ex.: taxes
(withholding taxes); SSS contributions; Philhealth contributions;
agency fees; Abad -deduction from employees’ wages of
debt due the employer. Art. 1706, Civil Code, vs. Art. 114,
Labor Code.
4. Illegal Deposits – [Five J Taxi vs. NLRC, 235 SCRA 556 (1994)]
It was held that the P15 daily deposit made by taxi drivers to
defray shortage in their “boundary” is covered by the general
prohibition under Art. 114 of the Labor Code.  not an
exception
5. Where the deductions are for the payment to a third person
and the employer agrees to do so, provided that the latter does
not receive any pecuniary benefit, directly or indirectly from the
transaction;
6. Deductions to answer for loss of damage, under these
conditions:
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a) Employer is engaged in a trade, occupation or business
where the practice is recognized, to answer for loss or damage
to tools, materials, or equipment supplied by the employer to
the employee;
b) The employee is shown to be responsible for the loss or
damage;
c) That the amount of such deductions is fair and
reasonable shall not exceed the actual loss or damage;
d) The deduction does not exceed 20% of the employee’s
wages in a week.
No Work-No Pay Principle
o The age-old principle governing the relations between labor
and capital, that is, a fair day’s work for a fair days’ labor
remains as the basis in determining employees’ wages.
(Aklan Electric Coop., Inc., vs. NLRC, 323 SCRA 258).If there is
no work performed by the employee, there can be no wage
paid unless the worker is able and willing to work but was
illegally dismissed or locked-out or illegally prevented from
working.
o The doctrine of "no-work-no-pay" is a fundamental axiom
in industrial relations. The philosophy is very simple. When a
person is employed, it is expected that the work assigned will
be carried out. When this work is not done, the employee is
not eligible for payment of any salary. Even when a general
strike or countrywide ban disrupts public transport systems,
and consequently employees are unable to reach their
workplaces, the same principle prevails. Even die-hard trade
union leaders respect this principle of equity and natural
justice. "No work, no pay" lays a strong foundation to
industrial peace and harmony in the long run.[5]
A person can be marked dies-non, if:
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1. Absent without proper permission.
2. When on duty left without proper permission.
3. While in office but refused to perform duties.
In cases of such wilful and unauthorised absence from work, the
leave sanctioning authority may decide and order that the
days on which the work is not performed be treated as dies
non on the principle of no work no pay. This will be without
prejudice to any other action that the competent authority might take
against the persons resorting to such practises.
Lawyer hired on contingent basis – A lawyer dismissed by the
clients because he refused to represent them in an out-of-court
settlement has no right to interfere in the implementation of their
claims in his efforts to collect attorney’s fees not due him. (Chua vs.
NLRC 190 SCRA 558).
The financial capacity and economic status of the clients can be
taken into account in fixing the reasonableness of the attorney’s fees.
However, where the clients are mere janitors whose fees are so low,
the equivalent of 50% is excessive. (Atty. Taganas vs. NLRC, 64 SCAD
226, G. R. No.118746, 7Sept. 1995).
When the issues are so simple, neither novel nor difficult, award of
10% attorney’s fees may be considered excessive. The Court may
reduce the same. (D. M. Consunji vs. NLRC, 143 SCR 204).
Attorney’s Fees Deleted – Where the award of moral and
exemplary damages was eliminated, so to was the award of
attorney’s fees. (Audion Electric Co., Inc., vs. NLRC, G.R. No. 106648,
17 June 1999).
III. WORKING CONDITIONS AND REST PERIODS
A. Working Hours
Coverage
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• This shall apply to all employees in all establishments or
undertakings, whether operated for profit or not.
Exemptions
1. Government employees, including those employed in
government-owned and/or controlled corporations
2. Managerial employees
a. one who can lay down management policies, or who
can fire, hire, demote or promote or who can
effectively recommend the fore going courses of
action.
b. Rationale: such workers are not usually employed for
evey hour of work but their compensation is
determined considering their special training,
experience or knowledge which requires the exercise of
discretion and independent judgment, or perform work
related to management policies.
c. they are not feasibile to provide a fixed hourly rate of
pay or maximum hours of labor.
3. Managerial Staff – vested with powers or perogatives
to lay down and execute management policies
a. primary duty consists of the performance of work
directly related to management policies of their
employer
b. customarily and regularly exercise discretion and
independent judgment
c. regularly and directly assist the managerial employee
d. they execute work along specialized or technical lines
requiring special training, experience of knowledge
e. they execute special tasks and assignments
f. they do not devote more than 20% of their hours
worked in a work-week activities
g. A supervisor is deemed a member of the managerial
staff because he oversees the operation of the
business of the company and performance of the
workers, which require discretion and independent
judgment.
4. Field Personnel
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a. Since they work away from his employer’s place of
business, hence not subject to personal supervision of
employer. Employer has no knowledge of how many
hours he works per day.
5. Family members
6. Domestic helpers and persons in the personal service of
another
7. Workers paid by results
a. Because they are paid by fixed amount for work done,
regardless of the time spent in accomplishing the work
Hours of Work
• Normal hours of work shall not exceed 8 hours a day.
• Health personnel in cities and municipalities with a population
of at least 1 million or in hospitals and clinics with a bed
capacity of at least 100 shall hold regular office hours for 8
hours a day for 5 days a week, exclusive for time of meals.
o If exigencies of their service require that personnel
work for 6 days or 48 hrs, they shall be entitled to 30^
% of their regular wage for work on the sixth day.
• Who are health personnel?
o resident physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
Hours worked shall include:
• all time during which an employee is required to be on
duty or to be at a prescribed workplace; and
• all time during which an employee is suffered or
permitted to work.
o Rest period of short duration during working hours shall
be counted as hours worked.
Meal Break
• It shall be the duty of every employer to give his employees
not less than 60 mins time-off for their regular meals.
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• If meal/rest period is less than 20 mins, it is credited as a
compensable hours worked.
• If work is continuous, mealtime breaks should be counted as
working time for purposes of computing overtime
compensation.
• Meal break of more than one hour is part of hours worked.
• Employees on call – meal break is part of hours worked.
o When the laborers are required to standby for
Working time aboard a vessel
emergency work or where such meal hour is not one
complete rest, it is considered overtime.
o This happens when employees are told to hurry up
eating to perform work during emergency work.
When idle time not counted as working time:
• The idle time that an employee may spend for resting and
when he may leave the spot or place of work is not counted as
Commuting time
working time when the work is broken or not continuous.
• Even if laborers did not leave the premises, it being enough
that he cease to work and rest completely, rest would not be
counted as working hours.
Waiting time
Travel time
• It is compensable if the employee is subject to the absolute
control of the employer such that the employee is
effectively deprived of the time to attend to other
personal pursuits.
• If waiting is an integral part of his work or he is required by the
employer to wait, it shall be considered as working time.
• An employee who is not required to leave word at his home or
with company officials where he may be reached is not
working while on call.
Work interruption due to brownouts
According to Policy Instruction No. 36 of DOLE:
1. Brownouts not exceeding 20 mins shall be treated as
compensable working hours
2. Brownouts more than 20 mins may not be treated as
12
working hours IF:
a. employees can leave their workplace or go elsewhere
b. employees can use their time effectively for their own
interest
c. Here, employers can extend working hours
outside the regular schedule without being liable
for overtime pay.
• Since seamen are required to stay on board their vessels by
the nature of their duties, the correct criterion for determining
whether they are entitled to overtime pay is NOT whether they
were on board and cannot leave ship beyond the regular 8 hrs
a day BUT whether they actually rendered service in
excess of the said 8 hrs.
• Normally, it is not hours of work.
• However, it is compensated as working hours if employee is
required to perform substantial work under the control and
supervision of the employer.
• Official travel away from the workplace is counted as working
hours if:
o within the regular scheduled administrative workweek
o outside the hours of the employee’s regularly
scheduled administrative workweek and meets one of
the four conditions:
 involves the performance or work (e.g.
driving a loaded truck)
 incident to travel that involves
performance or work while traveling (e.g.
driving an empty truck back)
 carried out under arduous and unusual
conditions (travel on rough terrain/ severe
weather)
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 LABOR STANDARDS REVIEWER
 results from an uncontrollable event (job-
related court appearance required by court
subpoena)
Overtime Work – work performed beyond 8hrs a day
• Rationale: he puts in more effort and is delayed in going home
to his family to enjoy the comfort, and might miss important
prearranged engagement.
• should be paid additional compensation equivalent to his
regular wage plus at least 25%
• during holidays or rest day – additional compensation
equivalent to his regular wage plus at least 30%
• Undertime on a particular day is not offset by overtime
on any other day.
• General Rule: Overtime pay cannot be waived.
o Any quitclaim that a worker agrees to forego such
payment is null and void
• Exception:
o Built-in overtime pay – Non-payment of overtime pay is
valid here because it was already provided in the
written contract with a “built-in” overtime pay and
signed by Director of the Bureau of Employment
Services and enforced by the employer.
o Adoption of Compressed workweek (CWW) on
voluntary basis.
 Conditions of CWW scheme recognized by
DOLE:
• undertaken as a result of an express and
voluntary agreement of majority of the
covered employees.
• In firms hazardous to one’s health (use of
chemicals or other substances), there
must be a certification from an
accredited health and safety
organization that work beyond 8 hours is
tolerable.
• The employer shall notify DOLE of the
13
adoption of the scheme.
o Effects of CWW:
 Work beyond 8 hours is not compensable by
overtime premium unless there is a more
favorable practice in the firm.
 Reversion to the normal 8 hour workday shall
not constitute a diminution of benefits.
Emergency overtime work – every employee required to
render overtime work shall be paid additional compensation
• When the country is at war or when there is any national or
local emergency declared by congress or chief executive
• Imminent danger to public safety due to accidents, fire
,flood, typhoon, etc
• When there is urgent work to be performed on machines,
installations, or equipment to avoid further damage to the
employer
• When work is necessary to prevent loss or damage to
perishable goods
• Where the completion or continuation of the work started
before the eighth hour is necessary to prevent serious
obstruction or prejudice to the business or operations of
the employer.
• Claim of overtime pay is not justified if without written
authority to render overtime after office hours during
Sundays and holidays.
• Proof of Overtime claim
o Presentation of payrolls, daily time records and similar
documents
o In cases of OFWs, they should allege overtime pay with
particularity. If n006Ft, the local recruitment agency
who deployed the OFWs to the foreign principal could
have obtained the records from the principal to refute
the claim for overtime pay. The local recruitment
agency is solidarily liable with the foreign principal for
the overtime pay claims of the complainants.
• CBA provision may oblige the workers to work beyond eight
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 LABOR STANDARDS REVIEWER
hours
o Working hours may be changed at the discretion of the
company if the change is necessary for its operations.
o If employees assented to this arrangement, they are
deemed to have waived the normal 8-hour schedule.
Night shift/ Night differential – work staring from 10pm to
6am
• every employee shall be paid of not less than 10% of his
regular wage for each hour of work.
• Based on public policy, hence it CANNOT BE WAIVED.
B. Weekly Rest Periods
Right to Weekly rest day
• It is the duty of the employer, whether for profit or not, to
provide each employees a rest period of not less than 24
consecutive hours after every 6 consecutive normal
work days.
• Employer shall determine and schedule the weekly rest day
subject to CBA and the rules and regulations of Sec. of Labor
and Employment.
Preference of Employee
• Employee shall make known his preferred weekly day rest to
his employer in writing at least 7 days before the desired
effectivity of the initial rest day.
• If preferred schedule of rest day based on religious grounds
that is in conflict with the operations, the employer may
schedule the weekly rest day of his choice for at least 2 days
in a month.
Schedule of rest day – made known through written notice by
the employer posted in the work place one week before it
becomes effective
When employer may require work on a rest day:
14
• Actual or impending emergencies caused by disasters or
calamities to prevent loss of life, property or imminent danger
• Urgent work to be performed on machinery to avoid loss
that employer might suffer
• Abnormal pressure of work due to special circumstances
• Prevent loss on perishable goods
• When the nature of work requires continuous operations and
stoppage may result in irreparable injury or loss to the
employer
• Under similar circumstances determined by Sec of Labor and
Employment
• no employee may be compelled against his will to work
for more than 8 hrs
Compensation for rest day, Sunday or holiday work
• When required to work on a rest day
o Additional compensation of at least 30% of his regular
wage. An employee is entitled to such for work
performed on Sunday only when it is his established
rest day.
• When the nature of work has no regular workdays and no
regular rest days can be scheduled
o Additional compensation of at least 30% of his regular
wage performed on Sundays and holidays.
• Work performed on special holiday
o Additional compensation of at least 30% of his regular
wage. If such holiday work is his scheduled rest day,
the worker is entitled to an additional compensation of
50% of his regular wage.
• Where CBA agreement or other employment contract
stipulates higher premium pay than the prescribed one,
employer shall pay such higher rate
Holidays
• Every employee covered by Holiday pay rule is entitled to
his/her daily basic wage and ECOLA. Hence, employee is
entitled to at least 100% of his/her basic wage (plus
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 LABOR STANDARDS REVIEWER 15

ECOLA) even if he did not report for work, PROVIDED he his rate for the first 8 hours on such holiday work plus at least
is present or is on leave of absence with pay on the work day 30%.
immediately preceding the holiday. • When overtime work falls on his scheduled rest day, he is
entitled to an additional compensation for the overtime work
Right to holiday pay equivalent to his regular holiday rest day for the first 8 hours
• Shall apply to all employees EXCEPT: plus at least 30%.it shall consist of 200% of his regular daily
o retail service establishments regularly employing less wage rate plus 30%.
than (10) workers
o government and any of political subdivision, including Divisors
GOCC • Divisor assumes an important role in determining W/N holiday
o domestic helpers and persons in the personal service pay is already included in the monthly paid employee’s salary.
o managerial employees • General Rule:
o field personnel o A company with a 6-day working schedule, divisor 314
What are covered by holidays? The term ‘regular holiday’ shall means that legal holidays are already included in the
exclusively refer to: monthly pay of the employee
1. New Year’s Day, o for company with a 5-day working schedule, divisor
2. Maundy Thursday, 261 means that the holiday pay is already included in
3. Good Friday, the monthly salary.
4. the ninth of April, • If two regular holidays fall on the same date, the
5. the First of May, worker should be paid for both days
6. the twelfth of June, • Art 94 affords workers the enjoyment of paid regular holidays.
7. the last Sunday of August, It is mandatory regardless whether an employee is paid on a
8. the thirtieth of November, monthly or daily basis.
9. the twenty-fifth and thirtieth of December.
10. Nationwide special days(special holiday) shall include the first Service incentive leaves
of November and the last day of December • Coverage – This shall apply to all employees EXCEPT:
o government and any of its political subdivisions
Compensation for holiday work o domestic helpers and in the personal service of another
• Any employee permitted to work on any regular holiday, not o managerial employees
exceeding 8 hours, shall be paid at least 200% of his o field personnel or any other employees whose
regular daily wage. performance is unsupervised by employer including
• If the holiday work falls on his scheduled rest day, he shall be task or contract basis, purely commission basis and
entitled to an additional premium pay of at least 30% of his those paid in fixed amount
regular holiday rate of 200% based on his regular wage o those who are already enjoying this benefit
rate. o those enjoying vacation leave with pay if at least five
days
Overtime pay for holiday work: o those employed in establishments regularly employing
• Additional compensation for the overtime work equivalent to
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 LABOR STANDARDS REVIEWER
less than 10 employees
o All employees who have rendered at least one
year of service shall be entitled to a yearly
service incentive leave of five days with pay.
 “at least one year” shall mean service for not
less than 12 months whether continuous or
broken reckoned from the date the employee
started working
o it is demandable after 1 yr of service
Commutation of unused service incentive leave credit
• The employee may choose to either use his leave credits or
commute it to its monetary equivalent if not used at the end
of the year
• If he does not use or commute it, he is entitled upon
resignation or separation to its commutation
Other leave benefits:
• Vacation and Sick Leave
o not mandated by law
o once granted as a practice and policy, they can no
longer be withdrawn
o it must be demanded in its opportune time. If not, he
waives it
• Maternity Leave
o RA 7322 – increased maternity benefits
o "Maternity Leave Benefit. - A covered female
employee who has paid at least three monthly
maternity contributions in the twelve-month period
preceding the semester of her childbirth, abortion or
miscarriage and who is currently employed shall be
paid a daily maternity benefit equivalent to one
hundred percent (100%) of her present basic salary,
allowances and other benefits or the cash equivalent of
such benefits for sixty (60) days subject to the
following conditions:
 Employee should inform of her pregnancy and
the probable date of her childbirth
16
 Payment shall be advanced by the employer in
two equal instalments within 30 days from
the filing of the application
 In case of caesarean delivery, employee shall be
paid the daily maternity benefit for 78 days
 Payment of daily maternal benefits is a bar to
recovery of sickness benefits for 60 days
 Maternity benefit shall only be for the first four
deliveries
 SSS shall immediately reimburse the employer
100% of the advanced payment to the
employee upon proving of such payment
 If an employee should give birth or suffer
abortion or miscarriage without the
contributions remitted to them by the employer
to the SSS, without SSS being notified by the
employer, the employer shall pay to SSS
damages equivalent to the benefits which the
employee should have been entitled to, and the
SSS shall pay such amount to the employee
concerned.
• Paternity Leave
o RA 8187
o Coverage – shall apply to every male employee in the
private sector
o Paternity leave benefits for 7 days with full pay for the
first 4 deliveries by his lawful spouse
o Conditions for entitlement
 he is an employee at the time of the delivery of
the child
 he is cohabiting with his spouse at the time of
birth or miscarriage
 the wife has given birth or suffer miscarriage
Application for leave
• shall apply within a reasonable period of time (walangsinabi
kung ilan)
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 LABOR STANDARDS REVIEWER
• apply within such period provided by CBA
When availed
• after delivery by his wife
• total number of days shall not exceed 7 days for each delivery
• It shall be full pay consisting of basic salary for the
seven days he is not allowed not to report for work
• It is not convertible to cash in case it is not availed.
Parental Leave
• Granted to solo parents
• Solo Parents Welfare Act – enacted on Nov 7 2000
o To promote the family as the foundation of the nation,
strengthen its solidarity and ensure its total
development
o Covers the ff:
 seven working days leave privilege for every
year for every solo parents
 flexible work schedule
 prohibition against discrimination of solo parent
employee with respect to the terms and
conditions of employment on account of his/her
status
o Solo parent
 Defined to include :any unmarried mother or
father who has preferred to keep and rear
her/his children instead of having others care for
them or give them up to a welfare institution”
• The Handbook on Workers’ Statutory Monetary Benefits of the
Bureau of Working Conditions of DOLE (2006) provides
guidelines on Parental Leave for Solo parents:
o Coverage – granted to any solo parent who is left with
the responsibility of parenthood due to:
 Giving birth because of rape, or other crimes
against chasitity
 Death of spouse
 Spouse is detained for criminal convicton for at
least 1 yr
17
 Physical/mental incapacity of spouse certified
by a public medical practitioner
 Legal separation or de facto separation for 1 yr
provided that he/she is entrusted of the children
 Declaration of nullity/ annulment of marriage
provided that he/she is entrusted the custody of
children
 Abandonment of spouse for at least 1 yr
 Unmarried father/mother
 Any other person who provides solely the
parental care and support to children provided
that he/she duly licensed as foster parent by
DSWD or by court
 Any family member who assumes responsibility
of head of the family due to the death,
abandonment, disappearance or prolonged
absence of parents for 1 yr
o Conditions for entitlement
 he/she has rendered 1 yr of service whether
continuous or broken
 he/she notified the employer within a
reasonable period of time
 he/she presented to the employer a Solo Parent
Identification Card w/c may be obtained from
DSWD
o If not availed, it shall not be convertible to cash unless
specifically agreed.
o If there is a similar benefit under company policy or
CBA, it shall be considered. If it is greater than 7 days,
then the greater benefit shall prevail.
o Emergency or contingency leave provided in the
company policy or CBA is not credited as parental
leave under RA 8972
o If a change of status occurs, such that he is no longer
left alone with the sole responsibility of parenthood, his
eligibility to the benefit is TERMINATED.
• Leave for victims of violence against women and their children
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 LABOR STANDARDS REVIEWER
(RA 9262)
o pertains to any act/s committed by any person against
a woman, his wife, former wife, or against a woman
with whom the person has or had a sexual or dating
relationship
o Covers private women sector employees who are
victims defined in RA9262 (preceeding
paragraph)
o Leave benefits shall cover the days that the woman
employee has to attend to medical and legal concerns
o To be entitled:
 To be entitled, victim-employee to present to
her employer a certification from the Punong
Barangay or prosecutor or the clerk of court
Benefit
• Shall be entitled up to ten days with full pay. It shall be
extended when the need arises.
• if not availed, it cannot be converted into cash.
Military Leave
• Under PD 183 – any employee with annual gross business of
not less than P250,000 and with a personnel force of at least
20 employees, who is called to undergo refresher training, or
mobilization or assembly test, or training in the AFP shall not
lose his position due to absence in the fulfilment of military
obligation provided that the employer shall be entitled to
claim the salaries paid to the employee during such training as
a deductible item in its income tax return.
• Under Labor Code – The fulfilment by the employee of a
military or civic duty shall not terminate employment
• In such cases, employer shall reinstate the employee to his
former position without loss of seniority rights if he indicates
to resume his work not later than 1 month from relief
from the military or civic duty
Service charges
18
• All service charge collected by establishments shall be
distributed at the rate of 85% equally for all covered
employees and 15% for the management.
• Shares hall be distributed and paid to the employees not less
than once every two weeks or twice a month at intervals not
exceeding 16 days
• If the company stopped collecting service fees, the average
share previously enjoyed for the past 12 months immediately
preceding such stoppage shall be integrated into their basic
wages.
IV. THIRTEENTH MONTH PAY
A. Purpose
• Under PD 851 which was enacted on Dec. 16, 1975, it
required employers to pay a 13th month pay, it was issued
to protect the level of real wages from inflation.
• To alleviate the plight of the workers and to help them cope
with the increases in the cost of living.
o It is an additional income based on wage but not part
of wage.
• It is exempted from income tax.
B. Time of payment
• It is paid not later than dec. 24 of each year.
o But employer may give ½ of the required 13th month
pay before the opening of the regular school year and
the other half on Dec. 24.
• The frequency may be the subject of agreement between the
employer and the recognized agent of the employees.
C. Coverage
• Only the rank and file employees are entitled to the 13th
month pay provided that they have worked for at least
1month during the calendar year.
o Rank and file employees – those who are not vested
with powers or prerogative to lay down and execute
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 LABOR STANDARDS REVIEWER
management policies and/or to hire, transfer, suspend,
layoff, recall, discharge, assign or discipline employees.
o Simply those who are not managerial employees.
• Piece-rate workers are entitled also since they’re employees
and not independent contractors.
• Those paid a fixed or guaranteed wage plus commission,
based on their earnings during the calendar year.
• Employees with multiple workers.
o Government employees working part time in priv.
enterprises, including private educational institutions
whether on full or part-time basis. 13th pay should be
given to them by their private employers regardless of
their total earnings from each of all their employers.
D. Not covered
• Managerial employees but company policy or established
practice may cover them.
• Sea-farers are not entitled since they are contractual
employees. PD 851 contemplates the situation of land-
based workers and not sea-farers who earn more than
the former.
• The following employers are not covered:
o government and any of its political subdivisions,
government – owned and controlled corporations
except corporations operating essentially as privates
subsidiaries of the government
o Employers already paying 13th month pay or more in a
calendar year or its equivalent
o Employers of household helpers or persons in the
personal service of another
o Those paid purely on commission, boundary or task
basis and those who are paid a fixed amount for
performing specific work, irrespective of the time
consumed in the performance of it
E. Computation
• It is 1/12 of the total basic salary earned by an
19
employee within a calendar year.
• The basic salary of an employee is used as the basis. Any
compensation or remuneration not part of basic salary is
excluded as basis.
• Basic salary – all remuneration or earnings paid by his
employer for his services rendered but does not include
allowances and monetary benefits.
o Commissions are included in the basis salary for
purposes of computing 13th month pay.
o Profit –sharing/productivity bonuses are not part of the
computation for basic salary.
The minimum amount required by law shall not be less than 1/12 of
the total basic salary earned by an employee within a calendar year.
F. Pro-rated 13th month pay
• The pro-ration of 13th month pay is applied in cases of
resignation or separation from work.
• The computation should be based on the length of service
and not on the actual wage earned by the worker.
• EXCEPTION – Employees, who are paid a guaranteed
minimum wage or commission earned, whichever is higher,
entitled to the 13th month pay based on total earnings.
G. Equivalents of 13th month pay
• Mid-year bonus and Christmas bonus.
• Bonus must be at least equal to the 13th month pay due the
employee; otherwise, the employer shall pay the difference
Benefits in form of food or free electricity are not proper
substitute for 13th month pay including year-end rewards for
loyalty and service.
BONUS UNDER CBA 13th month pay
Source: Contract between the Source: PD851.
management and the employees.
It is an obligation created from It is mandated by law.
the contact.
Gives higher reward to the senior Based only on the length of work
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 LABOR STANDARDS REVIEWER
employees. within the calendar year.
H. Bonus
• It is given out of gratuity of the employer but it is demandable
or enforceable obligation when it is made part of the
wage/salary of the employee.
• If it is additional compensation which employer promised and
agreed to give without any conditions imposed for its payment
it is part of wages. (CONDITIONS: success of business,
production output)
o Simply: If it is stated in the employees contact, then it
is mandatory.
I. Non-inclusion in regular wage
The mandated 13th month pay need not be credited as part of
regular wage for purpose of determining overtime and
premium payments, fringe benefits as well as SS, Medicare
and private retirement plans.
V. WORKING CONDITIONS FOR SPECIAL GROUPS OF
EMPLOYEES
A. Employment of Women
ART. 130. NIGHTWORK PROHIBITION
No woman, regardless of age, shall be employed or permitted or
suffered to work, with or without compensation:
(a) Industrial undertaking – between 10:00pm to 6:00pm
(b) Commercial or non-industrial undertaking – between 10:00pm
to 6:00pm
(c) Agricultural undertaking – at nighttime unless she is given a
period of rest of not less than nine consecutive hours.
Exceptions on nightwork prohibition of women:
(a) Disaster or force majeure, in order to prevent loss of life or
property.
(b) Urgent work on machineries to avoid serious loss.
20
(c) To prevent serious loss of perishable goods.
(d) Woman employee holds managerial or technical position, or
where she has been engaged to provide health and welfare
services.
(e) The work requires the manual skill and dexterity of women.
(f) The women employees are immediate members of the family
operating the establishment.
(g) Other analogous cases exempted by the Secretary of Labor.
What are the facilities for women employees that an
employer should provide?
(a) Proper seats which they can use when they are free from work
and during working hours, provided they are still efficient in this
position.
(b) Separate toilet room, lavatory and dressing room.
(c) Nursery
(d) Standards for retirement or termination in special occupation.
ART. 133. MATERNITY LEAVE BENEFITS
(a) Any pregnant women employee who has rendered an aggregate
service of at least six months for the last twelve months is entitled to
maternity leave benefits of at least two weeks prior to the
expected date of delivery and another four weeks after normal
delivery or abortion with full pay based on her regular or
average weekly rates.
(b) The maternity leave shall be extended without pay on account of
illness medically certified to arise out of the pregnancy, delivery,
abortion, or miscarriage.
(c) Maternity leave is applicable only for the first four deliveries by a
woman employee.
MATERNITY LEAVE UNDER SSS LAW
Qualifications:
1. The female member should be employed at the time of the
delivery, miscarriage, or abortion.
2. She must have given the required notification to the SSS thru her
employer.
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 LABOR STANDARDS REVIEWER
3. Her employer must have paid at least three months of maternity
contributions within the twelve-month period immediately before the
semester of contingency.
How much is the maternity benefit under SSS Law?
100% of her average daily salary credit for 60 days or 78 days in case
of caesarian delivery.
Every pregnant women in the private sector, whether married or
unmarried, is entitled to the maternity leave benefits. (No. XI, DOLE
Handbook on Worker’s Statutory Benefits)
ART. 134. FAMILY PLANNING SERVICES; INCENTIVES FOR
FAMILY PLANNING
(a) Establishments which are required by law to maintain a clinic or
infirmary shall provide free family planning services to their
employees which shall include but not be limited to, the application
or use of contraceptive pills and intrauterine devices.
(b) DOLE shall develop bonus schemes to encourage family planning
among female workers in any establishment. Discrimination of
women employee is prohibited.
What are considered acts of discrimination?
1. Payment of a lesser compensation to a female employee as
against a male employee for work of equal value.
2. Favoring a male employee over a female employee with respect to
promotion, training opportunities, study and scholarship grants.
3. To deny or discharge any women employee the benefits provided
under the Labor Code.
4. To discharge a woman employee because of her pregnancy.
5. To refuse the admission of such woman employee upon getting to
her work for fear that she may again be pregnant.
ART. 136. STIPULATION AGAINST MARRIAGE
It shall be unlawful for an employer to require as a condition of
employment or continuation of employment that women employees
shall not get married, or be deemed resigned upon getting married,
21
or to actually dismiss, discharge, discriminate or otherwise prejudice
a woman employee merely by reason of marriage.
Any woman who is (1) permitted or suffered to work with or without
compensation (2) in any night club, cocktail lounge, massage clinic,
bar or similar establishment (3) under the effective control or
supervision of the employer for a substantial period of time as
determined by DOLE Secretary, is deemed an employee of such
establishment.
B. Employment of Minors
MINIMUM EMPLOYABLE AGE
The minimum employable age is 15.
A child below 15 years of age may be allowed to work for not more
than 4 hours at any given day, nor more than 20 hours a week.
A child 15 years of age but below 18 shall not be allowed to work for
more than 8 hours a day, and in no case beyond 40 hours a week.
(R.A. 7610)
No child below 15 years of age shall be employed, except
• when he works under the sole responsibility of his
parents or guardian, and
• his employment does not in any way interfere with his
schooling.
C. Employment of Househelp
Domestic or household service shall mean services in the
employer’s home which is usually necessary or desirable for
the maintenance and enjoyment thereof and includes ministering
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 LABOR STANDARDS REVIEWER 22

to the personal comfort and convenience of the members of the the applicable legal minimum wage.
employer’s household, including services of family drivers. Trains in a semi-skilled job or Trains in a highly skilled job
industrial occupations that or in a job found only in a
The contract of domestic service shall not last for more than 2 years require training for less than highly technical industry
but may be renewed for such periods as may be agreed upon by the three months. hence training period
parties. exceeds three months.
Learnership is allowed even for Employment of apprentices is
A househelper shall not be assigned to non-household work. non-technical jobs. legally allowed only in highly
technical industries.
If the period of household service is fixed, neither the employer nor Involves theoretical
the househelper may terminate the contract before expiration of the perspective.
term except for just cause. If unjustly dismissed, he or she shall be
A learner is not an apprentice, but an apprentice is
paid the compensation already earned plus that for 15 days by way of
conceptually also a learner.
indemnity. If he/she leaves without justifiable reason, he/she shall
forfeit any unpaid salary due him/her not exceeding 15days.
Qualifications:
If there is no contract, the employer or househelper may give notice 1. At least 15 but less than 18, only in nonhazardous
to put an end to the relationship 5 days before the intended occupations
termination of service. 2. Physically fit (need not be physically fit unless it is essential
D. Apprentices to the expeditious and effective learning of the occupation.)
3. Possess vocational attitude.
Apprenticeship is the arrangement and the period when an upcoming 4. Ability to comprehend and follow oral and written
worker undergoes hands-on training, more or less formal, to instructions.
learn the ropes of a skilled job.

Objectives: • Apprenticeship period shall not exceed six months.

1. To help the demand of the economy for trained manpower.
2. To establish a national apprenticeship program through
the participation of employers, workers and government and
non-government agencies.
3. To establish apprenticeship standards for the protection
of apprentices.
LEARNERSHIP APPRENTICESHIP
Both mean training periods for jobs requiring skills that can be
acquired through actual work experience.
Because both learner and apprentice are not as fully productive
as regular workers, they receive paid wages 25% lower than
• Hours of work – 8 hours.
o Time spent in a theoretical instructions shall be
considered as hours of work and shall be reckoned
jointly with on-the-job training time in computing in the
agreement the appropriate periods for giving wage
increases to the apprentice.
o An apprentice may be allowed to work overtime
provided there are no available regular workers
to do the job, which overtime shall be credited to
his training time.
• Previous training or experience shall be given due credit
therefor.

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 LABOR STANDARDS REVIEWER 23

• Parties to the agreement – Partnership agreement shall be

signed by the employer or his duly authorized representative Coverage – This rule applies to all establishments, undertakings,
and by the apprentice. If minor, it shall be signed by his parent whether operated for profit or not, including educational, medical,
or guardian, or by an authorized representative of the DOLE. charitable and religious institutions and organizations, in cases of
• Ratio of theoretical and on-the-job training – 100 hours of regular employment with the exception of the Government and it
theoretical instructions for every 2000 hours of practical or on- political subdivisions including government owned or controlled
the-job training corporations.
• Wages – Shall start at 75% of the statutory minimum
wage for the first 6 months. Thereafter, he shall be Termination of employees:
paid the full minimum.
REGULAR EMPLOYEE PROBATIONARY EMPLOYEE
E. Learners Just cause Just cause
Authorized cause provided by Authorized cause provided by law
Learner is a person hired as a trainee in industrial occupations which law
are nonapprenticeable and which may be learned through practical Failure to qualify in accordance
training on the job for a period not exceeding 3 months. with standards of the employer
made known to him at the start of
• Wages – not exceeding 6 months. Thereafter he becomes employment.
regular worker.
• Minor below 15 cannot be employed as learner. Those below
18 may only be employed in nonhazardous occupations. JUST CAUSE AUTHORIZED CAUSE TERMINATION
BY EMPLOYEE
F. Handicapped Workers W/O JUST CAUSE
Neglect of duties Redundancy Serious insult by
• Those whose earning capacity is impaired by age or Disobedience Retrenchment the employer
physical or mental deficiency or injury. Attempt against the Installation of labor Inhuman or
• They may be employed when their employment is necessary life of the employer saving devices unbearable
to prevent curtailment of employment opportunities and when Breach of trust Closure of business treatment
it does not create unfair competition in labor costs or impair Other analogous Commission of
working standards. crime against the
• Wage shall at least 75% of the minimum wage. employee
• They shall not be precluded from employment if their Other analogous
handicap is not such as to effectively impede in the Separation pay, as a Separation pay
performance of job operations in the particular trade or rule, will NOT be paid required
occupation.
Types of employment:
VI. TERMINATION OF EMPLOYMENT
1. Regular employment - when an employee has been engaged to
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 LABOR STANDARDS REVIEWER
perform activities which are usually necessary or desirable in the
usual business or trade of the employer except:
a. where the employment has been fixed for a specific
project or undertaking the completion or termination of
which has been determined at the time of the engagement
of the employee; or
b. where the work or service to be performed is seasonal in
nature and the employment is for the duration of the
season.
c. a probationary employee who is allowed to work beyond
the probationary period shall be considered a regular
employee.
2. Casual employment - Employment shall be deemed casual in
nature if it is not covered by the preceding paragraph
UNLESS the employee has rendered at least one year (six
months) of service whether such service is continuous or not, with
regard to the activity in which he is employed and his
employment shall continue while such activity exists.
3. Probationary employment - There is probationary employment
where the employee, upon employment is made to undergo a
trial period during which the employer determines his
fitness to qualify for regular employment, based on
reasonable standards made known to him at the time of
engagement.
Rules on probationary employment:
a. Where the work for which the employee was engaged is
learnable or apprenticeable, in accordance with the standards
prescribed by the DOLE, the probationary period shall be
limited to the authorized learnership or apprenticeship
period, whichever is applicable;
b. Where the work is neither learnable or apprenticeable, the
probationary period shall not exceed six (6) months
reckoned from the date the employee actually started;
c. The services of a probationary employee may be terminated only
24
for a just cause or authorized cause, or when he fails to qualify as
a regular employee in accordance with the reasonable standards
prescribed by the employer; and
d. In all cases involving probationary employees, the employer shall
make known the standards under which he will qualify as a
regular employee at the time of his engagement.
Employees covered by contracting or subcontracting
arrangement may NOT be dismissed prior to the expiration of
the contract between the principal and the contractor or
subcontractor as defined in Rule VIII-A, Book III.
NOTE: Trilateral Relationship in Contracting Arrangements – In a
legitimate contracting there exists a trilateral relationship under
which there is:
a. a contract for a specific job, work or service between the
principal and the contractor or subcontractor;
b. an employment contract between the contractor or
subcontractor and its workers.
Parties
1. The principal which decides to farm out a job or service to a
contractor;
2. The contractor or subcontractor which has the capacity to
independently undertake the performance of the job, work, or
service; and
3. The contractual workers engaged by the contractor or
subcontracot to accomplish the job, work or service.
Exceptions:
• for just and authorized causes;
• completion of the phase of the contract for which the
employee was engaged.
BUT – subject to the requirements of due process and notice.
IN ALL CASES, the standards of due process shall be observed:
• A written notice served on the employee specifying the
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 LABOR STANDARDS REVIEWER 25

ground or grounds for termination, and giving said

employee reasonable opportunity within which to explain his Requirement: Service of formal notice to the employees
side; affected and the Department of Labor and Employment at least
• A hearing or conference during which the employee one (1) month before intended date of closure or cessation of
concerned, with the assistance of counsel if he so desires, is operation.
given opportunity to respond to the charge, present his
evidence, or rebut the evidence presented against him; and, Separation pay for terminated employees as to the cause:
• A written notice of termination served on the employee REDUNDANCY OR
CLOSURES OR TERMINATION DUE
indicating that upon due consideration of all circumstances, LABOR SAVING
RETRENCHMENT TO DISEASE
grounds have been established to justify his termination. DEVICES
at least one (1) one (1) month pay or one (1) month pay or
For probationary employees – due to completion of a contract or month pay or to at at least one-half at least one-half
phase thereof - notice of failure to meet standards of the company least one (1/2) (1/2) month pay for (1/2) month pay for
within a reasonable time before effectivity of termination. month pay for every every year of every year of
year of service, service, whichever is service, whichever is
The following are just causes for termination of employment: whichever is higher. higher. higher.
1. Serious misconduct or wilful disobedience by the A fraction of at least six (6) months shall be considered one (1) whole
employee of the lawful orders of his employer or year. (BP Blg. 130).
representative in connection with his work;
2. Gross and habitual neglect by the employee of his duties; Art. 284 Disease as ground for termination - An employee who
has been found to be suffering from any disease and whose
3. Fraud or wilful breach by the employee of the trust
continued employment is prohibited by law or is prejudicial to his
reposed in him by his employer his duly authorized
health as well as to the health of his co-employees.
representative;
4. Commission of a crime or offense by the employee against Book VI Rule I Sec. 8. – The employer shall not terminate the
the person of his employer or any immediate member of his employment unless there is a certification issued by a
family or his duly authorized representative; and, competent public health authority that the disease is of such
5. Other causes analogous to the foregoing. (Batas Pambansa nature or at such stage that it cannot be cured within a
Blg. 130) period of six (6) months even with proper medical treatment.

Art. 283 Closure of establishment and reduction of personnel
Termination due to:
• the installation of labor-saving devices, redundancy;
• retrenchment to prevent losses;
• closing or cessation of operation of the establishment or
undertaking
o UNLESS the same is for the purpose of circumventing
the provisions of this Title.
If the ailment can be cured within the period, the employee shall not
be terminated. Instead, the employer shall ask him to take leave, to
be reinstated later to his former position immediately upon
restoration of his normal health.
Basis of termination pay – The last salary of the employee unless it
was reduced by the employer to defeat the law in which case the
salary before the reduction shall be the basis.

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 LABOR STANDARDS REVIEWER
Art. 285 Termination by employee – An employee may
terminate without just cause the employer-employee relationship
by serving a written notice at least a month in advance. Without such
notice, the employer may hold the employee liable for damages.
No notice is required under the following circumstances:
1. Serious insult by the employer or his representative on the
honor and person of the employee;
2. Inhuman and unbearable treatment accorded the
employee by the employer or his representative;
3. Commission of a crime or offense by the employer or his
representative against the person of the employee or
any of the immediate members of his family; and,
4. Other causes analogous to any of the foregoing.
Art. 286 When employment not deemed terminated –
1. Bona fide suspension of the operation of a business or
undertaking for a period not exceeding 6 months;
2. Fulfilment by the employee of a military or civic duty.
In all such cases the employer shall reinstate the employee to his
former position without loss of seniority rights if he indicates his
desire to resume his work not later than one month from the
resumption of operations OR from his relief from the military or civic
duty.
Notes: Substantive and Procedural due process –
• Legality of the ground as provided under Art. 282;
• Legality of the manner of dismissal – observance of the
procedural requirements. (due process).(Aurelio vs. NLRC, 221
SCRA 432 [1993]); Shoemart, vs. NLRC 176 scra 385 [1989])
3. Failure to qualify as regular employee –International Catholic
Migration Committee vs. NLRC, 169 SCRA 606 [1989])
4. Abandonment as ground for termination – to constitute a
valid cause for termination must be a deliberate unjustified
26
refusal of the employee to resume his employment. (Nueva
Ecija Electric Cooperative vs. Minister of Labor, 184 SCRA 25
[1990]), coupled with a clear absence of any intention of returning
to his or her work (C. Planas Commercial vs. NLRC, 303 SCRA 49
[1999]).
a. Filing of a complaint for illegal dismissal negates
employer’s theory of abandonment. – (Rizada vs. NLRC
315 SCRA 316 [1999])
An employee entitled to immediate reinstatement per Labor Arbiter’s
order but refuses the reinstatement, not deemed to have abandoned
job. – (Jardin Davis vs. NLRC, 225 SCRA 757 [1993])
When closure is due to serious business losses or financial reverses,
financial bankruptcy, not obliged to pay separation pay. (North Davao
Mining & Development Corporation vs. NLRC, 254 SCRA 721 [1996])
Distinction between Redundancy and Retrenchment –
Burden of proof upon employer to show compliance with the twin
requirements of notices and hearing. (Viola Cruz vs. NLRC, 324
SCRA770 [2000]) Farrol v. Court of Appeals, 325 SCRA 331 [2000]};
Savellana vs. I.T. [International] Corporation, 356 SCRA 451 [2001].
SOCIAL LEGISLATION
RA 9710 MAGNA CARTA FOR WOMEN
What is discrimination against women? The Magna Carta of
Women defines discrimination against women as:
• any gender-based distinction, exclusion, or
restriction which has the effect or purpose of impairing
or nullifying the recognition, enjoyment, or exercise by
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 LABOR STANDARDS REVIEWER
women, irrespective of their marital status, on a basis of
equality of men and women, of human rights and fundamental
freedoms in the political, economic, social, cultural, civil or any
other field;
• any act or omission, including by law, policy, administrative
measure, or practice, that directly or indirectly excludes
or restricts women in the recognition and promotion of
their rights and their access to and enjoyment of
opportunities, benefits, or privileges;
• a measure or practice of general application that fails to
provide for mechanisms to offset or address sex or
gender-based disadvantages or limitations of women,
as a result of which women are denied or restricted in the
recognition and protection of their rights and in their access to
and enjoyment of opportunities, benefits, or privileges; or
women, more than men are shown to have suffered the
greater adverse effects of those measures or practices; and
• discrimination compounded by or intersecting with other
grounds, status, or condition, such as ethnicity, age, poverty,
or religion.
Principles of human rights and rights of women
Human rights are:
1. universal and inalienable
2. indivisible
3. inherent to the dignity of every human being
4. interdependent and interrelated
What are the rights of women guaranteed under the Magna
Carta of Women?
• All rights in the Philippine Constitution and those rights
recognized under international instruments duly signed and
ratified by the Philippines, in consonance with Philippine laws.
These rights shall be enjoyed without discrimination since the
law prohibits discrimination against women, whether done by
public and private entities or individuals.
27
The Magna Carta of Women also spells out every woman's
right to:
• Protection from all forms of violence, including those
committed by the State.
• Protection and security in times of disaster, calamities and
other crisis situations, especially in all phases of relief,
recovery, rehabilitation and construction efforts, including
protection from sexual exploitation and other sexual and
gender-based violence.
• Participation and representation, including undertaking
temporary special measures and affirmative actions to
accelerate and ensure women's equitable participation and
representation in the third level civil service, development
councils and planning bodies, as well as political parties and
international bodies, including the private sector.
• Equal treatment before the law, including the State's review
and when necessary amendment or repeal of existing laws
that are discriminatory to women;
• Equal access and elimination of discrimination against women
in education, scholarships and training.
o This includes revising educational materials and
curricula to remove gender stereotypes and images,
and outlawing the expulsion, non-readmission,
prohibiting enrollment and other related discrimination
against women students and faculty due to pregnancy
outside of marriage;
• Equal participation in sports.
o This includes measures to ensure that gender-based
discrimination in competitive and non-competitive
sports is removed so that women and girls can benefit
from sports development;
• Non-discrimination in employment in the field of military,
police and other similar services.
o This includes according the same promotional
privileges and opportunities as their men counterpart,
including pay increases, additional benefits, and
awards, based on competency and quality of
performance.
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 LABOR STANDARDS REVIEWER
• Non-discriminatory and non-derogatory portrayal of women in
media and film to raise the consciousness of the general
public in recognizing the dignity of women and the role and
contribution of women in family, community, and the society
through the strategic use of mass media;
• Comprehensive health services and health information and
education covering all stages of a woman's life cycle.
• Leave benefits of two (2) months with full pay based on gross
monthly compensation, for women employees who undergo
surgery caused by gynecological disorders, provided that they
have rendered continuous aggregate employment service of
at least six (6) months for the last twelve (12) months;
• Equal rights in all matters relating to marriage and family
relations.
o The State shall ensure the same rights of women and
men to: enter into and leave marriages, freely choose a
spouse, decide on the number and spacing of their
children, enjoy personal rights including the choice of a
profession, own, acquire, and administer their property,
and acquire, change, or retain their nationality.
The Magna Carta of Women also guarantees the civil, political
and economic rights of women in the marginalized sectors,
particularly their right to:
• Food security and resources for food production, including
equal rights in the titling of the land and issuance of
stewardship contracts and patents;
• Localized, accessible, secure and affordable housing;
• Employment, livelihood, credit, capital and technology;
• Skills training, scholarships, especially in research and
development aimed towards women friendly farm technology;
• Representation and participation in policy-making or decision-
making bodies in the regional, national, and international
levels;
• Access to information regarding policies on women, including
programs, projects and funding outlays that affect them;
• Social protection;
28
• Recognition and preservation of cultural identity and integrity
provided that these cultural systems and practices are not
discriminatory to women;
• Inclusion in discussions on peace and development;
• Services and interventions for women in especially difficult
circumstances or WEDC;
• Protection of girl-children against all forms of discrimination in
education, health and nutrition, and skills development; and
• Protection of women senior citizens.
Marginalized refers to the disadvantaged or vulnerable persons or
groups who are mostly living in poverty and have little or no access
to land and other resources, basic social and economic services.
These include but not limited to women in the following sectors and
groups: (SFU-WWM-IMC-SDS)
• Small farmers and rural workers,
• Fisherfolk,
• Urban poor,
• Workers in the formal economy, Workers in the informal
economy,
• Migrant workers,
• Indigenous Peoples,
• Moro, Children, Senior citizens,
• Disabled persons
• Solo parents
Who’s primary duty is it to implement and give force and
effect to the magna carta of women?
• The State, the private sector, society in general, and all
individuals shall contribute to the recognition, respect and
promotion of the rights of women defined and guaranteed in
the Magna Carta of Women.
What are the specific duties of government under the magna
carta of women?
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 LABOR STANDARDS REVIEWER
• The Philippine Government shall be the primary duty-bearer in
implementing the said law. This means that all government
offices, including local government units and government-
owned and controlled corporations shall be responsible to
implement the provisions of Magna Carta of Women that falls
within their mandate, particularly those that guarantee rights
of women that require specific action from the State.
• As the primary duty-bearer, the Government is tasked to:
o refrain from discriminating against women and
violating their rights;
o protect women against discrimination and from
violation of their rights by private corporations, entities,
and individuals;
o promote and fulfill the rights of women in all spheres,
including their rights to substantive equality and non-
discrimination.
• The Government shall fulfill these duties through the
development and implementation of laws, policies,
regulatory instruments, administrative guidelines, and
other appropriate measures, including temporary special
measures. It shall also establish mechanisms to promote the
coherent and integrated implementation of the Magna Carta
of Women and other related laws and policies to effectively
stop discrimination against Filipino women.
Pura’s tips:
The MCW focuses on providing equal opportunities for men and
women.
• See Chapter 1, Sec. 2 of RA 9710
• The MCW is also in compliance with the CEDAW
Implications on Labor Laws:
• Sec, 13
• Sec. 17
• Right to decent work standards for women
29
MIGRANT WORKERS AND OVERSEAS FILIPINO ACT OF 1995
(RA 8042) AS AMENDED AND FURTHER AMENDED BY RA 10022
Date of effectivity: August 13, 2010
Overseas Filipino Worker (OFW)
• Interchangeably used with migrant workers
• Person who is (1) to be engaged, (2) is engaged or (3) has
been engaged in a remunerated activity in a state of which he
is not a citizen.
• Person who works on a vessel navigating the foreign seas
o except: government ship used for military or non-
commercial purposes.
• Person working on an installation located offshore or on the
high seas
Deployment of Migrant Workers
• State may only allow deployment of migrant workers only in
countries where the rights of the Filipino Migrant
Workers are protected.
• The following are considered as sufficient guarantees for
the protection of the OFWs:
1. Has existing labor and social laws
2. Signatory to multilateral conventions, declarations or
resolutions relating to the protection of OFWs
3. Concluded a bilateral agreement with the government
4. Taking positive and concrete measures to protect the
rights of the OFWs
Note: no permit for deployment shall be issued by the POEA in the
absence of a clear showing that any of the mentioned guarantees
exists. In the case of MWs, the employment contract has to be
approved by the POEA.
The State shall also allow the deployment of overseas Filipino
workers to:
1. Vessels navigating on the foreign seas or to installations
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 LABOR STANDARDS REVIEWER
located offshore whose owners or employers are compliant
with internationalo laws.
2. Companies and contractors with international operations
a. Provided that they are compliant with standards,
conditions and requirements as embodied in the
employment contracts prescribed by the POEA.
Termination or Ban on Deployment
• The POEA may impose a ban or termination of deployment to
countries that may be found not complying with the
aformentioned conditions and guarantees.
• In pursuit of national interest or when public welfare so
requires.
What is illegal recruitment?
• Art. 38 of RA 10022 defines such as;
o Any act of: (CECTUHP)
 Canvassing
 Enlisting
 Transporting
 Contracting
 Hiring
 Utilizing
 Procuring workers
o Including
 Referring contract services
 Promising or
 Advertising for employment
o Whether for profit or not, when undertaken by non-
licensee or non-holder of authority.
The following are prohibited acts:
• Charge or accept directly or indirectly any amount greater
than that specified in the schedule of allowable fees
prescribed by the Secretary of Labor and Employment or to
make a worker pay or acknowledge any amount greater than
that actually received by him as a loan or advance.
30
• Furnish or publish any false notice or information or document
in relation to recruitment or employment.
• Give any flase notice, testimony, information or document or
commit any act of misrepresentation for the purpose of
securing a license or authority under the Labor Code or for the
purpose of documenting hired workers with the POEA.
• Induce or attempt to induce a worker already employed to quit
his employment.
o Unless the transfer will liberate the worker from
oppresive terms and conditions of employment.
• Influence or attempt to influence any person or entity not to
employ any worker who has not applied for employment
through his agency.
• Engage in the recruitment or placement of workers in jobs
harmful to public health or morality.
Who are liable?
• Principals, accomplices and accessories
• In case of juridical persons, the officers who has
ownership, control, management or direction of the
business who are responsible for the commission of the
offense and the responsible employees/agents.
SYNDICATED ILLEGAL LARGE SCALE ILLEGAL
RECRUITMENT RECRUITMENT
Carried out by (3) or more Committed against (3) or
persons conspiring or more persons individually or as a
confederating with one another. group.
Look at the number of the people Look at the number of people
who committed. who were victimized.
Jurisdiction
1. Labor Arbiter (NLRC) has original and exclusive
jurisdiction over:
a. Money claims arising out of an ER-EE relationship
b. By virtue of any law or contract involving Filipino
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 LABOR STANDARDS REVIEWER
workers for overseas deployment including claims for
actual, moral, exemplary and other forms of damages.
2. POEA – responsible for promoting overseas employment and
protect rights.
a. Retains original and exclusive jurisdiction to hear and
decide:
i. Administrative cases involving violation of rules
and regulations relating to licensing and
registration of recruitment and employment
agencies or entities;
ii. Disciplinary action cases and other special
cases which are administrative in character
involving employers, principals, contracting
partners and Filipino MWs.
Pura’s tip: the regulatory functions of the POEA will be faced
out within 5 years.
3. RTC
a. Criminal action arising from illegal recruitment shall be
filed with the RTC of the province or city where the
offense was committed or where the offended party
actually resides at the time of the commission of the
offense.
b. Once the RTC acquires jurisdiction, other courts are
excluded.
Effects of termination of overseas employment WITHOUT
JUST, VALID OR AUTHORIZED CAUSE
• Worker shall be entitled to the following:
o Full reimbursement of his placement fee
o Deductions made with interest at 12% per annum
o Salaries for the unexpired portion of his employment
contract or for the three months for every year of the
unexpired term, whichever is less.
SOCIAL SECURITY SYSTEM (RA 1161 AS AMENDED BY RA
8282)
31
Declaration of policy:
• It is the policy of the RP to establish a sound and viable social
security service
• Promote social justice to members and prevent hazards
• Resulting in loss of income or financial burden
• The main beneficiaries of the law are the workers and
subsidiary beneficiaries.
Powers and duties of SSS – Sec. 4
• Proprietary powers. It is a juridical person that’s why it has the
power and right to acquire properties through its semi
facilities.
• They can project how much they should be collecting and how
much they can provide to their members through their
actuary.
Settlement of disputes – Sec. 5
• Because of the functions of SSS, it is not a remote possibility
that somehow it will be involved in disputes; or its members
be involved in one dispute or another.
• These disputes arising under this act, with respect to
coverage, shall be cognizable by the comission.
• These disputes may be heard either by the comission or by
any of its members
o They also have a legal department.
• The decision of the comission shall be appealable to the Court
of Appeals.
o Same procedure as if the decision was from a trial
court.
Definition of terms – Sec. 8
• Dependents – the following are considered to be dependents:
o Legal spouse entitled by law to receive support from
the member
o Legitimate, legitimated, legally adopted child
o Illegitimate child
 Unmarried
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 LABOR STANDARDS REVIEWER
 Not employed
 Has not reached 21 y/o
 If over 21 y/o, he is congenitally or while still a
minor has been permanently incapacitated and
incapable of self-support, physically or mentally
o Parent who is receiving regular support
• Monthly salary credit – compensation base for contributions
and benefits as indicated in the schedule
o If for example, you have 2 employers and you have a
salary under the monthly salaray credit for both jobs.
Under the law, there is only 1 membership entitiled per
person.
o 1ER = P6,000 and 2ER = P6,000
o The member shall use the same SS number. The 2E
shall only pay for the contribution proportional to that
of the salary he is paying.
o If the 2ER shall pay a salary that will exceed the
monthly maximum salary credit, the 2ER shall only pay
for the salary up to the amount that meets the monthly
maximum salary credit.
• Remittance of contribution
o If the employer fails to remit on time, they shall pay for
additional 3%
o If the employer habitually fails to remit, an estafa
case may be filed against the employer
 This is estafa because of the contributions that
should be yours.
• Coverage of SSS
o Compulsory upon all employees not over 60 years of
age and their employers
o Spouses may be covered on a voluntary basis
o Filipinos recruited by foreign-based employers for employment
abroad may be covered by the SSS on a voluntary basis.
• Beneficiaries – the dependent spouse until he or she
remarries, the dependent legitimate, legitimated or legally
adopted and illegitimate children who shall be the primary
beneficiaries:
32
o That the dependent illegitimate children shall be
entitled to 50% of the share of the legitimate,
legitimated or legally adopted children.
o In the absence of the legitimate, legitiamated or legally
adopted children, illegitimate children shall be entitled
to 100% of the benefits
o In their absence, the dependent parents shall be the
secondary beneficiaries
o In the absence of all the foregoing, any person
designated by the employee as their secondary
beneficiary.
• Contingency – the retirement, death, disability, injury or
sickness and maternity of the member.
RA 7875 AN ACT INSTITUTING A NATIONAL HEALTH
INSURANCE PROGRAM FOR ALL FILIPINOS AND ESTABLISHING
THE PHILIPPINE HEALTH INSURANCE CORPORATION FOR THE
PURPOSE.
Dependents – legal dependents of a member are:
• Legitimate spouse WHO IS NOT A MEMBER
• Legitimate, legitimated, illegitemate, legally adopted children
o Provided acknowledged with evidence
o Under 21 years
o If over 21, must be suffering from a disability rendering
him totally dependent for support
• Parents who are 60 y/o or above whose monthly income is
below or above P5,000
Benefit package
• The following categeries:
o In patient hospital care
o Out patient hospital care
Entitlement to benefits
• A member whose premium contributions for at least 3 months
have been paid within 6 months prior to the 1st day of
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 LABOR STANDARDS REVIEWER 33

availment shall be entitled to the benefits of the program. shall be entitled to security of tenure, humane conditions of work,
Provided that he pays contributions with sufficient regularity. and a living wage. They shall also participate in policy and decision-
o Provided further the he is not currently subject to legal making processes affecting their rights and benefits as may be
penalties. provided by law.
o “sufficient regularity” pertains to the history of the
payment of premiums. The State shall promote the principle of shared responsibility
• At least 3 months contribution between workers and employers and the preferential use of voluntary
• 6 months prior to availment/ confinement modes in settling disputes, including conciliation, and shall enforce
• You have to be employed for 6 months prior to confinement their mutual compliance therewith to foster industrial peace.
and you have at least 3 months contribution to avail.
The State shall regulate the relations between workers and
Quasi judicial powers employers, recognizing the right of labor to its just share in the fruits
of production and the right of enterprises to reasonable returns to
• Render deicisions
investments, and to expansion and growth.
• Shall conduct proceedings or any part thereof in public or
executive manner depending on the case
3 parts of the provision
• They are more of an administrative body with regard to
• Economic
procedure. But they have a quasi judicial function.
o Full protection to labor:
 Local
RA 9241 AN ACT AMENDING REPUBLIC ACT NO. 7875,
OTHERWISE KNOWN AS “AN ACT INSTITUTING A NATIONAL  Overseas
HEALTH INSURANCE PROGRAM FOR ALL FILIPINOS AND  Organized
ESTABLISHING THE PHILIPPINE HEALTH INSURANCE  Unorganized
CORPORATION FOR THE PURPOSE.” o Promote full employment and equality of employment
opportunities
• In the old law, those suffering from congenital diseases were o Guarantee the rights of workers:
not included.  Self-organization
• Provisions are almost just the same with RA7875  Collective bargaining and negotiations
 Peaceful concerted activities
1987 CONSTITUTION  Right to strike
ARTICLE XIII, Section 3 o Entitlement to:
 Security of tenure
Section 3. The State shall afford full protection to labor, local and  Humane conditions of work
overseas, organized and unorganized, and promote full employment  Living wage
and equality of employment opportunities for all. • Dispute settlement
It shall guarantee the rights of all workers to self-organization, o Promote principle of share resposibility between
collective bargaining and negotiations, and peaceful concerted
workers and employers
activities, including the right to strike in accordance with law. They
o Preferential use of voluntary modes of settling disputes
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o Enforce mutual compliance to foster industrial peace amounting to NOT MORE

• State regulation of employee-employer relationship THAN P5,000
o Recognize the right of labor to its just share in the Contempt cases
fruits of production
o Right of enterprises to reasonable returns on
investments, expansion and growth CHAPTER II: POWERS AND DUTIES
Art. 217: JURISDICTION OF LABOR ARBITERS AND THE
COMMISSION
NATIONAL LABOR RELATIONS COMMISSION
AS AMENDED BY RA 9347 Exclusive and original jurisdiction of Labor Arbiters – the
following cases involving all workers, whether agricultural or non-
CHAPTER I: CREATION AND COMPOSITION agricultural
ART. 213: NATIONAL LABOR RELATIONS COMMISSION (UTR-DVO-DCDO)
(as amended by RA 9347) 1. ULP casses
2. Termination disputes
National Labor Relations Commission (NLRC) 3. Claim for reinstatement that workers (including overseas
• an administrative body with quasi-judicial functions and workers) file involving the following:
the principal government agency that heards and decides a. Wages
labor management disputes. b. Rates of pay
• attached to the DOLE for program and policy coordination c. Hours of work
only. d. Other terms and conditions of employment
• Composed of the following: This is limited only to those arising from statutes or
o 1 chairman contracts other than the CBA.
o 23 members 4. Claims for damages arising from ER-EE relations
a. Actual
Jurisdiction of the NLRC b. Moral
EXCLUSIVE AND ORIGINAL EXCLUSIVE APPELLATE c. Exemplary
Certified cases – cases certified Cases decided by Labor Arbiters d. Other forms
to it for compulsory arbitration by under Art. 217(b) of the Labor 5. Cases arising out of violation of Art. 264, including questions
the Secretary of Labor under Art. Code and Sec. 10 of RA8042 involving legality of strikes and lockouts
263 or the President under Art. (Migrant Workers Act) 6. Monetary claims of overseas contract workers arising from ER-
264 EE relations under the Migrant Workers Act
Injunction cases under Art. 218 Cases decided by the Regional 7. Wage distortion disputes in unorganized establishments not
and 264 Offices of DOLE in the exercise of voluntarily settled by the parties
its adjudicatory function under 8. Enforcement of compromise agreements when there is non-
Art. 129 of the Labor Code over compliance by any of the parties
monetary claims of workers 9. Other cases as provided by law

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 LABOR STANDARDS REVIEWER
Note: Although the provision speaks of exclusive and original
jurisdiction of Labor Arbiters, the cases enumerated may be
submitted to a voluntary arbitrator by agreement of parties under
Art. 262. THE LAW PREFERS VOLUNTARY OVER COMPULSORY
ARBITRATION.
The Labor Arbiters has jurisdiction over controversies involving
employers and employees only if there is a REASONABLE
CAUSAL CONNECTION BETWEEN THE CLAIM ASSERTED AND
THE ER-EE RELATIONSHIP. Without such link, the complaint is
cognizable by the regular court.
The following cases must be disposed of the Labor Arbiter by
referring the same to the greivance machinery and voluntary
arbitration:
• Disputes over the interpration or implementation of the
CBA
• Disputes over the interpretation or enforcement of the
company personnel policies
2005 NLRC Rules of Procedure on Venue of Filing Cases
1. All cases which Labor Arbiters have authority to decide may
be filed in the Regional Arbitration Branch (RAB) having
jurisdiction over the workplace of the complainant/petitioner.
a. WORKPLACE is understood to be the place or locality
where the employee is regularly assigned when the
cause of action arose.
i. In case of field employees, ambulant or itinerant
workers, their workplace is:
1. Where they are regularly assigned
2. Where they are supposed to regularly
receive their salaries and wages
3. Where they receive their work
instructions from
4. Where they report the results of their
assignments to their employers
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2. Where 2 or more RABs have jurisdiction over the workplace,
the first to acquire jurisdiction shall exclude others.
3. Improper venue when not objected to before filing of position
papers shall be deemed waived.
4. Venue may be changed by written agreement of the parties or
when there Commission or Labor Arbiter so orders, upon
motion by the proper party in meritorious cases.
5. For overseas contract workers, where the complainant resides
or where the principal office of the respondent employer office
is located, at the option of the complainant.
Pura’s tip: When you file a case for illegal dismissal, always include
backwages. Always pray for reinstatement. So that if the dismissal is
ruled as illegal, there is reinstatement. As long as there is no ruling,
the backwages shall continue to accrue.
On the complaint:
• Look into how the labor standards are being violated? Does
the employer observe the minimum standards of
employment?
o Are they being paid holiday pay?
o Are they being paid their night differential?
The Labor Arbiter will schedule the case for compulsory concillation.
Efforts will be exerted to settle the case amicably.
Section 4. Prohibited pleadings
1. Motion to dismiss the case
2. Bill of particulars
3. Relief for new judgement
4. Motion for new trial
5. Petition for review from judgement
6. Certiorari, mandamus or prohibition
When the decision is adverse to you, file a notice of appeal with a
memorandum of appeal within 10 days with the NLRC. The employer
also files a bond.
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Art. 221: TECHNICAL RULES NOT BINDING AND

PRIOR RESORT TO AMICABLE SETTLEMENT Note: No motion for reconsideration is available in questioning the
Labor Arbiter’s decision.
Quasi-judicial bodies like the NLRC are not bound by technical rules of
procedure of adjudication of cases. Period for appeal is NOT EXTENDIBLE – the perfection of an
appeal within the statutory/reglementary period is not only
The following are prohibited pleadings and motions under 2005 mandatory but also jurisdictional. Failure to do so renders the
NLRC Rules of Procedure questioned decision final and executory as to deprive the appellate
1. Motion to dismiss, except: court of jurisdiction to alter the final judgement of the Regional
a. on the ground of lack of jurisdiction over the subject Directors and Labor Arbiters.
matter
b. Improper venue Requisites for the perfection of an appeal to the NLRC:
c. Res judicata 1. Verified memorandum of appeal
d. Prescription and forum shopping a. Containing the grounds, issues raised and arguments
2. Motion for bill of particulars propounded and reliefs sought within the required
3. Petition for relief from judgement when filed with the labor period of appeal
arbiter b. Statement of the date appellant received the appealed
4. Petition for Certiorari, Prohibition and Mandamus decisio, order or resolution
5. Motion to declare respondent in default 2. In (3) legibly typewritten or printed copies
6. Motion for reconsideration or appeal from any interlocutory 3. Proof of payment of the required appeal fee
order 4. In case of monetary award, an appeal by the employer may be
perfected only by the posting of a bond (appeal bond).
Amicable settlement – the Labor Arbiter shall exert all efforts to 5. Proof of service upon the other parties
arrive at an amicable settlement of a labor dispute within its 6. Certificate of non-forum shopping
jurisdiction on or before its first hearing or during the mandatory
conferences set for the purpose.

CHAPTER III; APPEAL TO THE NLRC

Art. 223: appeal

Grounds for an appeal (FLEP):

• If the discussion, order or award was secured through
Fraud or coercion, including graft and corruption
• If made purely on questions of Law
• If serious Errors in the findings of facts are raised which
would cause grave or irrepairable damage to the appellant
• If there is Prima facie evidence of abuse of discretion on
the part of the Labor Arbiter
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