LABOR LAW 1 that govern the individual and collective interactions

1st Semester, AY 2008-2009 of employers, employees or their representatives.
Prof. E. (Leo) D. Battad
College of Law SOCIAL LEGISLATION VS. LABOR LAWS
University of the Philippines
Social legislation: provides particular kinds of
protection or benefits to society or segments thereof
SUGGESTED TEXTBOOK: in furtherance of social justice.

• CA Azucena, The Labor Code with Comments and Labor laws are necessarily social legislation. But to
Cases (Latest Edition) differentiate, labor laws directly affect employment
while social legislation governs effects of
REFERENCES: employment.

• Samson S. Alcantara, and Samson B. Alcantara Jr., Labor laws are social legislation but not all social
Philippine Labor and Social Legislation Annotated legislation are labor laws.
• 1987 Philippine Constitution
• The Labor Code of the Philippines and its
2. Social Justice, Const., Art. II, Sec. 10; Art.
Implementing Rules &
XIII, Sec. 1-3
Regulations
• Pertinent International Human Rights Instruments Section 10. The State shall promote social justice in
and ILO Conventions, Recommendations and Labor- all phases of national development.
related laws
• Assigned Readings Section 1. The Congress shall give highest priority to
the enactment of measures that protect and enhance
the right of all the people to human dignity, reduce
I. INTRODUCTION TO LABOR LAW social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing
A. Labor as a Concept
wealth and political power for the common good.
1. General Sense
Labor physical toil although it does not necessarily To this end, the State shall regulate the acquisition,
exclude the application of skill, thus there is skilled ownership, use, and disposition of property and its
and unskilled labor. increments.

Skill familiar knowledge of any art or sciencem Section 2. The promotion of social justice shall
united with radiness and dexterity in execution or include the commitment to create economic
performance or in the application of the art or opportunities based on freedom of initiative and self-
science to practical purposes.
reliance.
Work is broader than labor as work covers all forms
of physical or mental exertion, or both combined, for ARTICLE XIII – LABOR
the attainment of some object other than recreation Section 3. The State shall afford full protection to
or amusement per se. labor, local and overseas, organized and
unorganized, and promote full employment and
equality of employment opportunities for all.
2. Technical sense It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
Worker broader than employee as workers may and peaceful concerted activities, including the right
refer to self-employed people, and those working in
to strike in accordance with law. They shall be entitled
the service and under the control of another,
regardless of rank, title, or nature of work. to security of tenure, humane conditions of work, and
a living wage. They shall also participate in policy and
Employee salaried person working for another who decision-making processes affecting their rights and
controls or supervises the means, manner or method benefits as may be provided by law.
of doing the work.
The State shall promote the principle of shared
responsibility between workers and employers and
B. Labor Law the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their
1. Definition
mutual compliance therewith to foster industrial
Labor legislaton  labor standards + labor relations
peace.

a. consists of statutes, regulations and The State shall regulate the relations between
jurisprudence workers and employers, recognizing the right of labor
b. governing the relations between capital and to its just share in the fruits of production and the right
labor of enterprises to reasonable returns to investments,
c. by providing for certain employment and to expansion and growth.
standards and a legal framework
d. for negotiating, adjusting and administering The aim and the reason and, therefore, the
those standards and other incidents of justification of labor laws is social justice.
employment.
Social Justice: JP Laurel in Calalang neither
Labor standards: which sets out the minimum communism, nor despotism, nor atomism not
terms, conditions, and benefits of employment that anarchy but the humanization of laws and the
employers must provide or comply with and to which equalization of social and economic forces by the
employees are entitled as a matter of legal right. State so that justice in its rational and objectively
secular conception may at least be approximated.
Labor relations law: which defines the status,
rights and duties and the institutional mechanisms The promotion of the welfare of all the people, the
adoption by the Government of measures calculated
to insure economic stability of all the component State so that justice in its rational and objectively
elements of society through the maintenance of secular conception may at least be approximated.
proper economic and social equilibrium in the
interrelations of the members of the community, Social justice is the promotion of the welfare of all
constitutionality, through the adoption of measures the people, the adoption by the Government of
legally justifiable, or extra-constitutionally, through measures calculated to insure economic stability of
the exercise of powers underlying the existence of all all the component elements of society through the
governments, on the time-honored principle of salus maintenance of proper economic and social
populi est suprema lex. equilibrium in the interrelations of the members of
the community, constitutionality, through the
Labor is the primary social economic force, thus the adoption of measures legally justifiable, or extra-
State shall protect the rights of workers and promote constitutionally, through the exercise of powers
their welfare. underlying the existence of all governments, on the
time-honored principle of salus populi est suprema
Constitutional Rights and Mandates lex.

The State shall afford full protection to labor and this • Manila Electric Co. v. Sec. of Labor, 337 SCRA 90
is found in the 1935, 1973, and 1987 Consti. The (2000)
State affirms labor as a primary social economic
force thus, it shall protect the right of the workers When will the CBA take effect?
and promote their welfare.
<-o-------------------------------I x--------------------------
Basic rights of workers guaranteed by the consti: CBA expiration 6 months

1. Right to organize themselves Secretary of Labor may determine the date of
2. Conduct collective bargaining or retroactivity as part of his discretionary powers. But
negotiation with management this discretionary power shall only be exercised only
3. Engage in peaceful concerted when jurisdiction has been vested.
activities, including to strike in
accordance with law Assailed Resolution:
4. Enjoy security of tenure Article 263(g) gives the Secretary jurisdiction. CBA
5. Work under humane conditions negotiated within six months after the expiration of
6. Receive a living wage the existing CBA retroacts to the day immediately
7. Participate in policy and decision- following such date and if agreed thereafter, the
making processes affecting their effectivity depends on the agreement of the parties.
rights and benefits as may be But the law is silent as to the retroactivity of a CBA
provided by law. (Sec. 3, XIII). arbitral award or that granted not by virtue of the
Other provisions in the Consti: mutual agreement of the parties but by intervention
of the government. Despite the silence of the law,
1) Right to form unions, associations, societies the Court rules herein that CBA arbitral awards
for purposes not contrary to law. granted after six months from the expiration of the
2) Right to self organization shall not be denied last CBA shall retroact to such time agreed upon by
to government employees. both employer and the employees or their union.
3) Regular farmworkers shall have the right to Absent such an agreement as to retroactivity, the
own directly or collectively the lands they award shall retroact to the first day of the six-month
till. period following the expiration of the last day of the
4) The State shall by law and for common CBA should there be one. IN the absence of a CBA,
good, undertake in cooperation with the the Sec’s determination of the date of retroactivity as
private sector a continuing program of part of his discretionary powers over arbitral awards
urban land reform and housing. shall control.
5) The State shall protect working women by
providing safe and healthful working Held: Where an arbitral award is granted beyond six
conditions taking into account their months after the expiration of the existing CBA, and
maternal functions. there is no agreement between the parties as to the
6) Labor is entitled to seats allotted to party- date of effectivity thereof, the arbitral award shall
list representatives retroact to the first day after the six-month period
7) The State shall promote industrialization following the expiration of the last day of the CBA.
and full employment based on sound But instead of Dec 1, 1995 to Nov 30 1997 (CBA had
agricultural development and agrarian a 2-year applicability period), the Court modified it to
reform. June 1, 1996 to May 31, 1998.
8) Congress shall create an agency to promote
the viability and growth of cooperatives. On social justice: “[T]his Court cannot ignore the
9) The Govt shall increase salary scales of the enormous cost that petitioner will have to bear as a
other officials and employees of the consequence of the fill retroaction of the arbitral
National Government. award to the date of the expiry of the CBA and the
10) Career civil service employees shall be inevitable effect that it would have on the national
entitled to appropriate separation pay and economy. On the other hand, under the policy of
to retirement and other benefits under social justice, the law bends over backward to
existing laws. accommodate the interests of the working class on
the humane justification that those with less privilege
in life should have more in law. Balancing these two
a. Definition/Balancing of Interest contrasting interests, this Court turned to the
dictates of fairness and equitable justice and thus
• Calalang v. Williams, 70 Phil. 726 (1940) arrived at a formula that would address the concerns
of both sides. Thus, Arbitral award must retroact to
Social Justice: JP Laurel in Calalang neither the first day AFTER the six-month period following
communism, nor despotism, nor atomism not the last day of the CBA.
anarchy but the humanization of laws and the
equalization of social and economic forces by the Azucena:

Duman / Labor I / Prof. Battad / Page 2
The Consitution has not overlooked the rights of c. Limits of Use
capital. It provides that, “the State recognizes the
indispensable role of the private sector, encourages • PLDT v. NLRC, 164 SCRA 671 (1988)
private enterprise, and provides incentives to needed
investments (Art. II, Sec. 20). PLDT employee promised to facilitate the approval of
the complainants’ applications for telephone
While labor is entitled to a just share in the fruits of installation and then received from them an amount
production, the enterprise has an equally important of money in consideration of her promise.
right not only to reasonable returns on investment
but also to expansion and growth. The rule embodied in the Labor Code is that a person
dismissed for cause as defined therein is not entitled
Shared Responsibility between workers and to separation pay. The cases abovecited (where
employers  Preferential use of voluntary modes of different cases were cited proving that some
settling disputes. companies still allowed separation pay despite the
degree of the ground upon which the employees
a. Foundation: Police Power and State were being dismissed for) constitute the exception,
Protection based upon considerations of equity. Equity has been
defined as justice outside law, being ethical rather
While social justice is the raison d’etre of labor laws, than jural and belonging to the sphere of morals than
their basis or foundation is the police power of the of law. It is grounded on the precepts of conscience
State. and not on any sanction of positive law. Hence, it
cannot prevail against the expressed provision of the
a. State legislatures may enact laws for the labor laws allowing dismissal of employees for cause
protection of the safety and health of and without any provision for separation pay.
employees. Separation pay shall be allowed as a measure of
b. Right of every person to pursue a business, social justice only in those instances where the
occupation, or profession is subject to the employee is calidly dismissed for causes other than
paramount right of the government as a serious misconduct or those reflecting on his moral
part of its police power to impose such character. Where the reason for the valid dismissal is,
restrictions and regulations as the for example, habitual intoxication or an offense
protection of the public may require. involving moral turpitude, life theft or illicit sexual
relations with a fellow worker, the employer may not
Legal Classification: (discussed in light of the be required to give the dismissed employee
suspension of deployment of women) separation pay or financial assistance, or whatever
other name it is called on the ground of social justice.
a. such classification rest on substantial
distinctions The policy of social justice is not intended to
b. they are germane to the purpose of the law countenance wrongdoing simply because it is
c. they are not confined to existing conditions committed by the underprivileged. At best it may
d. they apply equally to all members of the mitigate the penalty but it certainly will not condone
same class the offense. Compassion for the poor is an
imperative of every humane society but only when
b. Foundation: Police Power and State Protection the recipient is not a rascal claiming an underserved
privilege. Social justice cannot be permitted to be
• CMS Estate, Inc. v. Social Security System, 132 SCRA
refuge of scoundrels any more than can equity be an
impediment to the punishment of the guilty. Those
108 (1984) who invoke social justive may do so only if their
hands are clean and their motives blameless and not
The case of two businesses, one was in real estate simply because they happen to be poor.
and the other was in the logging business. One
owner was demanding for a refund from SSS and it
refused to subscribe the employees of the 2nd • Agabon v. NLRC, 442 SCRA 573 (2004)
business to SSS because the business has not been
in operation for 2 years (which was the requirement
of the law) yet. Employees were claiming illegal dismissal. Employer
was asserting that there was abandonment.
The Social Security Law was enacted pursuant to the
policy of the government “to develop, establish Abandonment is the deliberate and unjustified
gradually and perfect a social security system which refusal of an employee to resume his employment. It
shall be suitable to the needs of the people is a form of neglect of duty, hence, a just cause for
throughout the Philippines, and shall provide termination of employment by the employer. For a
protection against the hazards of disability, sickness, valid finding of abandonment: (1) failure to report for
old age and death. It is thus clear that said work or absence without valid or justifiable reason
enactment implements the general welfare (2) clear intention to server employer-employee
mandate of the Constitution and constitutes a relationship with the second as the more
legitimate exercise of the police power of the determinative factor which is manifested by overt
State. acts from which it may be deduced that the
employees has no more intention to work.
It is the intention of the law to cover as many
persons as possible so as to promote the Wenphil or Belated Due Process Rule: where the
constitutional objective of social justice. employer had a valid reason to dismiss an employee
but did not follow the due process requirement, the
Compulsory coverage of the employer shall take dismissal may be upheld but the employer will be
effect on the first day of his operation, and that of penalized to pay an indemnity to the employee.
the employee on the date of his employment (RA
1161 as amended by RA 2658). The two year But this was re-examined in Serrano case wherein
prescription of the prior law must be considered the Court required that the employer pay the full
prevailed over by the later law and moreover, the backwages from the time of dismissal until the time
legislative intent must be given effect. the Court finds the dismissal was for a just or
authorized cause. It was because of a significant
Duman / Labor I / Prof. Battad / Page 3
number of cases involving dismissals without
requisite notices.
b. 1987 Constitution, Art. II, Secs. 5, 9, 10, 13, 14, 18;
In Agabon, the Court abandoned Serrano and Art. XIII, Secs. 1, 3, 14
followed Wenphil only that the sanctions imposed on
the employer must be stiffer than those in Wenphil.
ART. II
An employee who is clearly guilty of conduct
violative of Article 282 should not be protected by Section 5. The maintenance of peace and order, the
the Social Justice Clause of the Constitution. Social
protection of life, liberty, and property, and promotion
justice, as the terms suggests, should be used only
to correct an injustice.
of the general welfare are essential for the enjoyment
by all the people of the blessings of democracy.
JP Laurel, in Calalang: social justice must be founded
on the recognition of the necessity of Section 9. The State shall promote a just and
interdependence among diverse units of a society dynamic social order that will ensure the prosperity
and of the protection that should be equally and and independence of the nation and free the people
evenly extended to all groups as a combined forc e in from poverty through policies that provide adequate
our social and economic life, consistent with the social services, promote full employment, a rising
fundamental and paramount objective of the state of
standard of living, and an improved quality of life for
promoting the health, comfort and quiet of all
person, and of bringing about the greatest good to all.
the greatest number.
Section 10. The State shall promote social justice in
Social justice is not based on rigid formulas set in all phases of national development.
stone. It has to allow for changing times and
circumstances. Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social
5. Legal Basis
well-being. It shall inculcate in the youth patriotism
a. International Conventions and nationalism, and encourage their involvement in
public and civic affairs.
• International School Alliance of Educators v. Section 14. The State recognizes the role of women
Quisumbing, 333 SCRA 13 (2000) in nation-building, and shall ensure the fundamental
equality before the law of women and men.
Foreigner teachers were given more benefits than
the local teachers.
Section 18. The State affirms labor as a primary
International law, which springs from general social economic force. It shall protect the rights of
principle of law, likewise proscribes discrimination. workers and promote their welfare.
General principles of law include principles of equity
i.e the general principles of fairness and justice, Art. XIII
based on the test of what is reasonable.
Section 1. The Congress shall give highest priority to
The following embody the general principle against
the enactment of measures that protect and enhance
discrimination, the very antithesis of fairness and
justice. the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
• Universal Declaration of Human remove cultural inequities by equitably diffusing
Rights wealth and political power for the common good.
• The International Covenant on
Economic, Social, and Cultural Section 3. The State shall afford full protection to
Rights labor, local and overseas, organized and
• The International Convention on unorganized, and promote full employment and
the Elimination of All Forms of equality of employment opportunities for all.
Racial Discrimination It shall guarantee the rights of all workers to self-
• The Convention against organization, collective bargaining and negotiations,
Discrimination in Education and peaceful concerted activities, including the right
• The Convention Concerning to strike in accordance with law. They shall be entitled
Discrimination in Respect of
to security of tenure, humane conditions of work, and
Employment and Occupation
a living wage. They shall also participate in policy and
Mentioned in the case: decision-making processes affecting their rights and
Bargaining Unit: is a group of employees of a given benefits as may be provided by law.
employer, comprised of all or less than all of the
entire body of employees, consistent with equity to The State shall promote the principle of shared
the employer indicate to be the best suited to serve responsibility between workers and employers and
the reciprocal rights and duties of the parties under the preferential use of voluntary modes in settling
the collective bargaining provisions of the law. disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
The factors determining the appropriate collective
bargaining unit are: (1) the will of the employees (2) peace.
affinity and unity of the employees’ interest, such as
substantial similarity of work and duties, or similarity The State shall regulate the relations between
of compensation and working conditions (3) prior workers and employers, recognizing the right of labor
collective bargaining history (4) similarity of to its just share in the fruits of production and the right
employment status.

Duman / Labor I / Prof. Battad / Page 4
of enterprises to reasonable returns to investments, to the other, to give something or to render some
and to expansion and growth. service. (1254a)

Section 14. The State shall protect working women Art. 1306. The contracting parties may establish such
by providing safe and healthful working conditions, stipulations, clauses, terms and conditions as they
taking into account their maternal functions, and such may deem convenient, provided they are not contrary
facilities and opportunities that will enhance their to law, morals, good customs, public order, or public
welfare and enable them to realize their full potential policy. (1255a)
in the service of the nation.
c. Collective Bargaining Agreement
See also: 1935 Const., Art. XIV, Sec., 6; 1973
Const., Art. II, Sec. 9 • DOLE Phils. v. Pawis ng Makabayang Obrero, 395
SCRA 112 (2003)
1935 Constitution, Art. XIV, Sec. 6
Interpretation of the free meals provision in the CBA.
Section 6. The State shall afford protection to labor, Is it after the employee has worked only after more
especially to working women, and minors, and shall than three hours of work or those who have rendered
regulate the relations between the landowner and exactly three hours of overtime work?
tenant, and between labor and capital in industry and
in agriculture. The State may provide for compulsory The disputed provision of the CBA is clear and
arbitration. unambiguous. The terms of the CBA is not
susceptible to any other interpretation. Hence the
1973 Const. Art. II, Sec. 9 literal meaning of “free meals after three (3) hours of
overtime work” shall prevail, which is simply that an
employee shall be entitled to a free meal if he has
Section 9. The State shall afford protection to labor,
rendered exactly, or no less than, three hours of
promote full employment and equality in employment, overtime work, not “after more than” or “in excess
ensure equal work opportunities regardless of sex, of” three hours overtime work.
race, or creed, and regulate the relation between
workers and employers. The State shall assure the Found in the case: Management prerogative: The
rights of workers to self-organization, collective exercise of management prerogative is not unlimited.
bargaining, security of tenure, and just and humane It is subject to the limitations found in law, a
conditions of work. The State may provide for collective bargaining agreement or the general
compulsory arbitration. principles of fair play and justice. This situation
constitutes one of the limitations. The CBA is the
norm of conduct between the petitioner and private
c. Labor Code (LC) and Omnibus Rules Implementing respondent and compliance therewith is mandated
the Labor Code by the express policy of the law.

d. New Civil Code of the Philippines (NCC), Arts. 19, 21, d. Past Practices
1700-1701
• Davao Fruits Corporation v. Associated labor Union,
Art. 19. Every person must, in the exercise of his 225 SCRA 562 (1993)
rights and in the performance of his duties, act with
justice, give everyone his due, and observe honesty Issue: WON in the computation of the 13th month pay
and good faith. given by employers to their employees under PD
851, payments for sick, vacation and maternity
Art. 21. Any person who wilfully causes loss or injury leaves, premiums for work done rest days and
special holidays and pay for regular holidays may be
to another in a manner that is contrary to morals,
excluded in the computation and payment thereof,
good customs or public policy shall compensate the regardless of long-standing company practice.
latter for the damage.
A company practice favorable to the employees
Art. 1700. The relations between capital and labor are had indeed been established and the payments
not merely contractual. They are so impressed with made pursuant thereto, ripened into benefits
public interest that labor contracts must yield to the enjoyed by them. And any benefit and
common good. Therefore, such contracts are subject supplement being enjoyed by the employees
to the special laws on labor unions, collective cannot be reduced, diminished, discontinued
bargaining, strikes and lockouts, closed shop, wages, or eliminated by the employer, by virtue of Sec
10 of the Rules and Regulations Implementing
working conditions, hours of labor and similar
PD 851 and Art 100 of the Labor Code which
subjects. prohibit the diminution or elimination b the
employer of the employees’ existing benefits.
Art. 1701. Neither capital nor labor shall act
oppressively against the other, or impair the interest The considerable length of time the questioned items
or convenience of the public. had been included by petitioner indicates a unilateral
and voluntary act on its part, sufficient in itself to
negate any claim of mistake.
6. Sources of Law

a. Labor Code and Related Special Legislation
• Samahang Manggagawa sa Top Form Manufacturing-
(Implementing Rules) United Workers of the Phil. (SMTFM-UWP v. NLRC, 295
SCRA 171
b. Contract – Art. 1305-1306, New Civil Code (1998)

The case wherein the employer was charged as
Art. 1305. A contract is a meeting of minds between
having committed an unfair labor practice by
two persons whereby one binds himself, with respect bargaining in bad faith and discriminating against in
Duman / Labor I / Prof. Battad / Page 5
employees by promising at a collective bargaining The benefits/entitlements in question were never
conference to implement any government-mandated subjects of any express agreement between the
wage increases on an across-the-board basis. parties. They were never incorporated in the CBA. As
observed by the VA, the records reveal that these
Past promises which were written in the minutes of benefits/entitlements have not been subjects of any
the meeting. The proposal was never embodied in express agreement between the union and the
the CBA, thus, the promise remained just that, a company, and have not yet been incorporated in the
promise, the implementation which cannot be validly CBA.
demanded under the law.
Downtrend was clear in the service award amount
The law provides remedies to the petitioner union to and the parties’ venue were changed from paid
compel priv resp to incorporate this specific venues to one which was free of charge.
economic proposal in the CBA, which they did not do.
To be considered a “regular practice”, the
The CBA is the law between the contracting parties— giving of the bonus should have been done
the collective bargaining representative and the over a long period of time, and must be shown
employer-company. Compliance with a CBA is to have been consistent and deliberate.
mandated by the expressed policy to give protection
to labor. In the same vein, CBA provision should be e. Company Policies
“construed liberally rather than narrowly and
technically, and the courts must place a practical and
realistic construction upon it, giving due
• China Banking Corporation v. Borromeo, 440 SCRA 621
consideration to the context in which it is negotiated (2004)
and purpose which it is intended to serve. This is
founded on the dictum that a CBA is not an ordinary The case of a manager who was consistently
contract but one impressed with public interest. It promoted because of a highly satisfactory
goes without saying, however, that only provisions performance which landed him at the AVP spot only
embodied in the CBA should be so interpreted and to find out that he has done irregularities in
complied with. approving several DAUD/BP in favor of one Maniwan.

No benefits or privileges previously enjoyed by The Bank’s SOP provides a restitution/forfeiture of
petitioner union and the other employees were benefits provision.
withdrawn as a result of the manner by which private
resp implemented the wage orders. It is well recognized that company policies and
regulations are, unless shown to be grossly
oppressive or contrary to law, generally binding, and
valid on the parties and must be complied with until
finally revised or amended unilaterally or preferably
through negotiation or by competent authority.
• American Wire and Cable Daily rated Employees Moreover, management has the prerogative to
Union American Wire and Cable co., Inc., 457 SCRA discipline its employees and to impose appropriate
684 (2005) penalties on erring workers pursuant to company
rules and regulations. With more reason should these
The company suddenly withdrew and denied certain truisms apply to the respondent, who, by reason of
benefits and entitlements which the employees have his position, was required to act judiciously and to
long enjoyed like service awards, 35% premium pay exercise his authority in harmony with company
of an employee’s basic pay for work rendered during policies.
Holy Monday, Tuesday, Wednesday, December 23,
26, 27, 28, and 29, Christmas Party and Promotional Business enterprises have a prerogative to discipline
Increases. its employees and to impose appropriate penalties
on erring workers pursuant to company rules and
It is critical that a determination must be first made regulations which must be respected. The law, in
whether the benefits/entitlements are in the nature protecting the rights of labor, authorized neither
of a bonus or not, and assuming they are so, whether oppression nor self-destruction of an employer
they are demandable and enforceable obligations. company which itself is possessed of rights that must
be entitled to recognition and respect.
Bonus: is an amount granted and paid to an
employee for his industry and loyalty which 7. Classification
contributed to the success of the employer’s
business and made possible the realization of profits. a. Labor Standards
It is an act of generosity granted by an enlightened
employer to spur the employee to greater efforts for b. Labor Relations
the success of the business and realization of bigger
profits. The granting of a bonus is a management c. Welfare Legislation
prerogative, something given in addition to what is
ordinarily received by or strictly due the recipient. II. LABOR CODE OF THE PHILIPPINES
Thus, a bonus is not a demandable and enforceable
obligation, except when it is made part of the wage, A. Brief History
salary or compensation of the employee.
B. General Provisions
Issue: WON these bonuses can be considered part of
the wage or salary or compensation making them 1. 1. Decree Title, Art. 1
enforceable obligations.
ARTICLE 1. Name of Decree. - This Decree shall
Held: No. For a bonus to be enforceable, it must have be known as the "Labor Code of the Philippines".
been promised by the employer and expressly
agreed upon by the parties or it must have had a 2. Effectivity, Art. 2
fixed amount and had been a long and regular
ART. 2. Date of effectivity. - This Code shall take
practice on the part of the employer.
effect six (6) months after its promulgation.
3. Policy Declaration, Art. 3
Duman / Labor I / Prof. Battad / Page 6
ART. 3. Declaration of basic policy. - The State
shall afford protection to labor, promote full
employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the
relations between workers and employers. The
State shall assure the rights of workers to self-
organization, collective bargaining, security of
tenure, and just and humane conditions of work.

4. Construction in Favor of Labor, Art. 4

ART. 4. Construction in favor of labor. - All doubts
in the implementation and interpretation of the
provisions of this Code, including its
implementing rules and regulations, shall be
resolved in favor of labor.

• Salinas Jr. v. NLRC, 319 SCRA 54 (1999)
2. Rule Making Power, Art. 5

ART. 5. Rules and regulations. - The Department
of Labor and other government agencies charged
with the administration and enforcement of this
Code or any of its parts shall promulgate the
necessary implementing rules and regulations.
Such rules and regulations shall become
effective fifteen (15) days after announcement of
their adoption in newspapers of general
circulation.

• Kapisanan ng mga Manggagawang Pinagyakap v.
• Reyes v. Court of Appeals, 409 SCRA 267 (2003)
NLRC, 152 SCRA 6 (1987)

3. Technical Rules Not Binding, Art. 221

• G&M Philippines, Inc. v. Romil Cuambot, GR No. ART. 221. Technical rules not binding and prior resort
162308, Nov. 22, 2006 to amicable settlement. - In any proceeding before the
Commission or any of the Labor Arbiters, the rules of
evidence prevailing in courts of law or equity shall not
be controlling and it is the spirit and intention of this
Code that the Commission and its members and the
Labor Arbiters shall use every and all reasonable
means to ascertain the facts in each case speedily
Duman / Labor I / Prof. Battad / Page 7
and objectively and without regard to technicalities of ART. 217. Jurisdiction of the Labor Arbiters and the
law or procedure, all in the interest of due process. In Commission. - (a) Except as otherwise provided
any proceeding before the Commission or any Labor under this Code, the Labor Arbiters shall have original
Arbiter, the parties may be represented by legal and exclusive jurisdiction to hear and decide, within
counsel but it shall be the duty of the Chairman, any thirty (30) calendar days after the submission of the
Presiding Commissioner or Commissioner or any case by the parties for decision without extension,
Labor Arbiter to exercise complete control of the even in the absence of stenographic notes, the
proceedings at all stages. following cases involving all workers, whether
agricultural or non-agricultural:
• Huntington Steel Products, Inc. v. NLRC, 442 SCRA
551 (2004)
2. Termination disputes;

3. If accompanied with a claim for
reinstatement, those cases that workers may
file involving wages, rates of pay, hours of
work and other terms and conditions of
employment;

4. Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;

6. Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other
claims arising from employer-employee relations,
including those of persons in domestic or household
service, involving an amount exceeding five thousand
pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.

ART. 128. Visitorial and enforcement power. - (a) The
Secretary of Labor and Employment or his duly
authorized representatives, including labor regulation
4. Applicability, Art. 6, 276; Constitution, Art. IX-B, Sec. 2(1) officers, shall have access to employer’s records and
premises at any time of the day or night whenever
work is being undertaken therein, and the right to
ART. 6. Applicability. - All rights and benefits granted copy therefrom, to question any employee and
to workers under this Code shall, except as may investigate any fact, condition or matter which may be
otherwise be provided herein, apply alike to all necessary to determine violations or which may aid in
workers, whether agricultural or non-agricultural. (As the enforcement of this Code and of any labor law,
amended by Presidential Decree No. 570-A, wage order or rules and regulations issued pursuant
November 1, 1974). thereto.

ART. 276. Government employees. - The terms and (b) Notwithstanding the provisions of Articles 129 and
conditions of employment of all government 217 of this Code to the contrary, and in cases where
employees, including employees of government- the relationship of employer-employee still exists, the
owned and controlled corporations, shall be governed Secretary of Labor and Employment or his duly
by the Civil Service Law, rules and regulations. Their authorized representatives shall have the power to
salaries shall be standardized by the National issue compliance orders to give effect to the labor
Assembly as provided for in the New Constitution. standards provisions of this Code and other labor
However, there shall be no reduction of existing legislation based on the findings of labor employment
wages, benefits and other terms and conditions of and enforcement officers or industrial safety
employment being enjoyed by them at the time of the engineers made in the course of inspection. The
adoption of this Code. Secretary or his duly authorized representatives shall
issue writs of execution to the appropriate authority
for the enforcement of their orders, except in cases
Constitution, Art. IX-B, Sec. 2(1) where the employer contests the findings of the labor
employment and enforcement officer and raises
Section 2. (1) The civil service embraces all issues supported by documentary proofs which were
branches, subdivisions, instrumentalities, and not considered in the course of inspection. (As
agencies of the Government, including government- amended by Republic Act No. 7730, June 2, 1994).
owned or controlled corporations with original
charters.
An order issued by the duly authorized representative
of the Secretary of Labor and Employment under this
5. Enforcement and Sanctions – Arts. 217 (a) (2), (3),
Article may be appealed to the latter. In case said
(4), (6); 128-129; 288-292; Consti., Art III, Secs. 11
and 16 order involves a monetary award, an appeal by the
employer may be perfected only upon the posting of a
cash or surety bond issued by a reputable bonding
company duly accredited by the Secretary of Labor
Duman / Labor I / Prof. Battad / Page 8
and Employment in the amount equivalent to the exclusively for the amelioration and benefit of
monetary award in the order appealed from. (As workers.
amended by Republic Act No. 7730, June 2, 1994).
Any decision or resolution of the Regional Director or
(c) The Secretary of Labor and Employment may hearing officer pursuant to this provision may be
likewise order stoppage of work or suspension of appealed on the same grounds provided in Article 223
operations of any unit or department of an of this Code, within five (5) calendar days from receipt
establishment when non-compliance with the law or of a copy of said decision or resolution, to the
implementing rules and regulations poses grave and National Labor Relations Commission which shall
imminent danger to the health and safety of workers resolve the appeal within ten (10) calendar days from
in the workplace. Within twenty-four hours, a hearing the submission of the last pleading required or
shall be conducted to determine whether an order for allowed under its rules.
the stoppage of work or suspension of operations
shall be lifted or not. In case the violation is The Secretary of Labor and Employment or his duly
attributable to the fault of the employer, he shall pay authorized representative may supervise the payment
the employees concerned their salaries or wages of unpaid wages and other monetary claims and
during the period of such stoppage of work or benefits, including legal interest, found owing to any
suspension of operation. employee or househelper under this Code. (As
amended by Section 2, Republic Act No. 6715, March
(d) It shall be unlawful for any person or entity to 21, 1989).
obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor and ART. 288. Penalties. - Except as otherwise provided
Employment or his duly authorized representatives in this Code, or unless the acts complained of hinge
issued pursuant to the authority granted under this on a question of interpretation or implementation of
Article, and no inferior court or entity shall issue ambiguous provisions of an existing collective
temporary or permanent injunction or restraining order bargaining agreement, any violation of the provisions
or otherwise assume jurisdiction over any case of this Code declared to be unlawful or penal in nature
involving the enforcement orders issued in shall be punished with a fine of not less than One
accordance with this Article. Thousand Pesos (P1,000.00) nor more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not
(e) Any government employee found guilty of violation less than three months nor more than three years, or
of, or abuse of authority, under this Article shall, after both such fine and imprisonment at the discretion of
appropriate administrative investigation, be subject to the court.
summary dismissal from the service.
In addition to such penalty, any alien found guilty shall
(f) The Secretary of Labor and Employment may, by be summarily deported upon completion of service of
appropriate regulations, require employers to keep sentence.
and maintain such employment records as may be
necessary in aid of his visitorial and enforcement Any provision of law to the contrary notwithstanding,
powers under this Code. any criminal offense punished in this Code, shall be
under the concurrent jurisdiction of the Municipal or
ART. 129. Recovery of wages, simple money claims City Courts and the Courts of First Instance. (As
and other benefits. - Upon complaint of any interested amended by Section 3, Batas Pambansa Bilang 70).
party, the Regional Director of the Department of
Labor and Employment or any of the duly authorized ART. 289. Who are liable when committed by other
hearing officers of the Department is empowered, than natural person. - If the offense is committed by a
through summary proceeding and after due notice, to corporation, trust, firm, partnership, association or any
hear and decide any matter involving the recovery of other entity, the penalty shall be imposed upon the
wages and other monetary claims and benefits, guilty officer or officers of such corporation, trust, firm,
including legal interest, owing to an employee or partnership, association or entity.
person employed in domestic or household service or
househelper under this Code, arising from employer-
employee relations: Provided, That such complaint Title II
does not include a claim for reinstatement: Provided PRESCRIPTION OF OFFENSES AND CLAIMS
further, That the aggregate money claims of each
employee or househelper does not exceed Five ART. 290. Offenses. - Offenses penalized under this
thousand pesos (P5,000.00). The Regional Director Code and the rules and regulations issued pursuant
or hearing officer shall decide or resolve the complaint thereto shall prescribe in three (3) years.
within thirty (30) calendar days from the date of the
filing of the same. Any sum thus recovered on behalf All unfair labor practice arising from Book V shall be
of any employee or househelper pursuant to this filed with the appropriate agency within one (1) year
Article shall be held in a special deposit account by, from accrual of such unfair labor practice; otherwise,
and shall be paid on order of, the Secretary of Labor they shall be forever barred.
and Employment or the Regional Director directly to
the employee or househelper concerned. Any such
sum not paid to the employee or househelper ART. 291. Money claims. - All money claims arising
because he cannot be located after diligent and from employer-employee relations accruing during the
reasonable effort to locate him within a period of three effectivity of this Code shall be filed within three (3)
(3) years, shall be held as a special fund of the years from the time the cause of action accrued;
Department of Labor and Employment to be used otherwise they shall be forever barred.
Duman / Labor I / Prof. Battad / Page 9
All money claims accruing prior to the effectivity of (c) "Employee" includes any individual
this Code shall be filed with the appropriate entities employed by an employer.
established under this Code within one (1) year from
the date of effectivity, and shall be processed or Art. 167. Definition of Terms.—As used in this Title,
determined in accordance with the implementing rules unless the context indicates otherwise:
and regulations of the Code; otherwise, they shall be
forever barred.
(f) “Employer” means any person, natural or juridical,
employing the services of the employee.
Workmen’s compensation claims accruing prior to the
effectivity of this Code and during the period from
November 1, 1974 up to December 31, 1974, shall be (g) “Employee” means any person compulsorily
filed with the appropriate regional offices of the covered by the GSIS under Commonwealth Act
Department of Labor not later than March 31, 1975; Numbered One hundred eighty-six, as amended,
otherwise, they shall forever be barred. The claims including the members of the Armed Forces of the
shall be processed and adjudicated in accordance Philippines, and any person employed as casual,
with the law and rules at the time their causes of emergency, temporary, substitute or contractual, or
action accrued. any person compulsorily covered by the SSS under
Republic Act Numbered Eleven hundred sixty-one, as
amended.
ART. 292. Institution of money claims. - Money claims
specified in the immediately preceding Article shall be
filed before the appropriate entity independently of the (h) “Person” means any individual, partnership, firm,
criminal action that may be instituted in the proper association, trust, corporation or legal representative
courts. thereof.

Pending the final determination of the merits of money Art. 212.
claims filed with the appropriate entity, no civil action
arising from the same cause of action shall be filed (e) "Employer" includes any person acting in the
with any court. This provision shall not apply to interest of an employer, directly or indirectly. The term
employees compensation case which shall be shall not include any labor organization or any of its
processed and determined strictly in accordance with officers or agents except when acting as employer.
the pertinent provisions of this Code.
(f) "Employee" includes any person in the employ of
an employer. The term shall not be limited to the
employees of a particular employer, unless the Code
ART. III, SEC. 11 AND 16, CONSTITUTION so explicitly states. It shall include any individual
Section 11. Free access to the courts and quasi- whose work has ceased as a result of or in
judicial bodies and adequate legal assistance shall connection with any current labor dispute or because
not be denied to any person by reason of poverty. of any unfair labor practice if he has not obtained any
other substantially equivalent and regular
Section 16. All persons shall have the right to a employment.
speedy disposition of their cases before all judicial,
quasi-judicial, or administrative bodies. b. Factors/Tests

• Ruga v. NLRC, 181 SCRA 437 (1990)
C. Work Relationship

1. Employer and Employee Relationship

a. Definition of Employer and Employee, Arts. 97 (a) (b)
(c), 167 (f)
(g) (h), 212 (e) (f)

ART. 97. Definitions. - As used in this Title:

(a) "Person" means an individual, partnership,
association, corporation, business trust, legal
representatives, or any organized group of
persons.

(b) "Employer" includes any person acting
directly or indirectly in the interest of an
employer in relation to an employee and shall
include the government and all its branches,
subdivisions and instrumentalities, all
government-owned or controlled corporations
and institutions, as well as non-profit private
institutions, or organizations.

Duman / Labor I / Prof. Battad / Page 10
• Perpetual Help Credit v. Faburada et al., 366
SCRA 693 (2001)

• Angelina Francisco v. NLRC, et al., GR No.
170087, Aug. 31, 2006
• Vicente Sy v. Court of Appeals, 398 SCRA 301
(2003)

c. Piercing the Corporate Veil

• Pamplona Plantatin Co., Inc. v. Tinghil, 450 SCRA 421
(2005)
• Chavez v. NLRC, 448 SCRA 478 (2005)

Duman / Labor I / Prof. Battad / Page 11
shall be responsible to the workers in the same
manner and extent as if the latter were directly
employed by him.

ART. 107. Indirect employer. - The provisions of the
immediately preceding article shall likewise apply to
any person, partnership, association or corporation
which, not being an employer, contracts with an
independent contractor for the performance of any
work, task, job or project.

DEPARTMENT ORDER NO. 18 - 02
(Series of 2002)
.
.
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED
.
.
By virtue of the power vested in the Secretary of
Labor and Employment under Articles 5 (Rule-
making) and 106 (Contractor or Subcontractor) of
the Labor Code of the Philippines, as amended,
the following regulations governing contracting
and subcontracting arrangements are hereby
issued:
Section 1. Guiding principles. - Contracting and
subcontracting arrangements are expressly
allowed by law and are subject to regulation for
the promotion of employment and the observance
2. Independent Contractor and Labor-only Contractor, Art. of the rights of workers to just and humane
106-107, 109; DO No. 18-02, S 2002 conditions of work, security of tenure, self-
organization, and collective bargaining. Labor-
only contracting as defined herein shall be
ART. 106. Contractor or subcontractor. - Whenever an prohibited.
employer enters into a contract with another person
for the performance of the former’s work, the Section 2 . Coverage. - These Rules shall apply to
employees of the contractor and of the latter’s all parties of contracting and subcontracting
subcontractor, if any, shall be paid in accordance with arrangements where employer-employee
the provisions of this Code. relationship exists. Placement activities through
private recruitment and placement agencies as
In the event that the contractor or subcontractor fails governed by Articles 25 to 39 of the Labor Code
to pay the wages of his employees in accordance with are not covered by these Rules.
this Code, the employer shall be jointly and severally
liable with his contractor or subcontractor to such Section 3. Trilateral Relationship in Contracting
employees to the extent of the work performed under Arrangements. - In legitimate contracting, there
the contract, in the same manner and extent that he is exists a trilateral relationship under which there is
liable to employees directly employed by him. a contract for a specific job, work or service
between the principal and the contractor or
The Secretary of Labor and Employment may, by subcontractor, and a contract of employment
appropriate regulations, restrict or prohibit the between the contractor or subcontractor and its
contracting-out of labor to protect the rights of workers workers. Hence, there are three parties involved in
established under this Code. In so prohibiting or these arrangements, the principal which decides
restricting, he may make appropriate distinctions to farm out a job or service to a contractor or
between labor-only contracting and job contracting as subcontractor, the contractor or subcontractor
well as differentiations within these types of which has the capacity to independently
contracting and determine who among the parties undertake the performance of the job, work or
involved shall be considered the employer for service, and the contractual workers engaged by
purposes of this Code, to prevent any violation or the contractor or subcontractor to accomplish the
circumvention of any provision of this Code. job work or service.

There is "labor-only" contracting where the person Section 4. Definition of Basic Terms. - The
supplying workers to an employer does not have following terms as used in these Rules, shall
substantial capital or investment in the form of tools, mean:
equipment, machineries, work premises, among
others, and the workers recruited and placed by such (a) "Contracting" or "subcontracting" refers to an
person are performing activities which are directly arrangement whereby a principal agrees to put
related to the principal business of such employer. In out or farm out with a contractor or subcontractor
such cases, the person or intermediary shall be the performance or completion of a specific job,
considered merely as an agent of the employer who work or service within a definite or predetermined
Duman / Labor I / Prof. Battad / Page 12
period, regardless of whether such job, work or (b) Contracting out of work with a "cabo" as
service is to be performed or completed within or defined in Section 1 (ii), Rule I, Book V of these
outside the premises of the principal. Rules. "Cabo" refers to a person or group of
persons or to a labor group which, in the guise of
(b) "Contractor or subcontractor" refers to any a labor organization, supplies workers to an
person or entity engaged in a legitimate employer, with or without any monetary or other
contracting or subcontracting arrangement. consideration whether in the capacity of an agent
of the employer or as an ostensible independent
contractor;
(c) "Contractual employee" includes one
employed by a contractor or subcontractor to
perform or complete a job, work or service (c) Taking undue advantage of the economic
pursuant to an arrangement between the latter situation or lack of bargaining strength of the
and a principal. contractual employee, or undermining his
security of tenure or basic rights, or
circumventing the provisions of regular
(d) "Principal" refers to any employer who puts employment, in any of the following instances:
out or farms out a job, service or work to a
contractor or subcontractor.
(i) In addition to his assigned functions, requiring
the contractual employee to perform functions
Section 5. Prohibition against labor-only which are currently being performed by the
contracting. - Labor-only contracting is hereby regular employees of the principal or of the
declared prohibited. For this purpose, labor-only contractor or subcontractor;
contracting shall refer to an arrangement where
the contractor or subcontractor merely recruits,
supplies or places workers to perform a job, work (ii) Requiring him to sign, as a precondition to
or service for a principal, and any of the following employment or continued employment, an
elements are present: antedated resignation letter; a blank payroll; a
(i) The contractor or subcontractor does not have waiver of labor standards including minimum
substantial capital or investment which relates to wages and social or welfare benefits; or a
the job, work or service to be performed and the quitclaim releasing the principal, contractor or
employees recruited, supplied or placed by such subcontractor from any liability as to payment of
contractor or subcontractor are performing future claims; and
activities which are directly related to the main
business of the principal; or (iii) Requiring him to sign a contract fixing the
period of employment to a term shorter than the
(ii) the contractor does not exercise the right to term of the contract between the principal and the
control over the performance of the work of the contractor or subcontractor, unless the latter
contractual employee. contract is divisible into phases for which
substantially different skills are required and this
is made known to the employee at the time of
The foregoing provisions shall be without engagement;
prejudice to the application of Article 248 (C ) of
the Labor Code, as amended.
(d) Contracting out of a job, work or service
through an in-house agency which refers to a
"Substantial capital or investment" refers to contractor or subcontractor engaged in the
capital stocks and subscribed capitalization in the supply of labor which is owned, managed or
case of corporations, tools, equipment, controlled by the principal and which operates
implements, machineries and work premises, solely for the principal;
actually and directly used by the contractor or
subcontractor in the performance or completion
of the job, work or service contracted out. (e) Contracting out of a job, work or service
directly related to the business or operation of the
principal by reason of a strike or lockout whether
The "right to control" shall refer to the right actual or imminent;
reserved to the person for whom the services of
the contractual workers are performed, to
determine not only the end to be achieved, but (f) Contracting out of a job, work or service being
also the manner and means to be used in performed by union members when such will
reaching that end. interfere with, restrain or coerce employees in the
exercise of their rights to self organization as
provided in Art. 248 (c) of the Labor Code, as
Section 6. Prohibitions. - Notwithstanding Section amended.
5 of these Rules, the following are hereby
declared prohibited for being contrary to law or
public policy: Section 7. Existence of an employer-employee
relationship. - The contractor or subcontractor
shall be considered the employer of the
(a) Contracting out of a job, work or service when contractual employee for purposes of enforcing
not done in good faith and not justified by the the provisions of the Labor Code and other social
exigencies of the business and the same results legislation. The principal, however, shall be
in the termination of regular employees and solidarily liable with the contractor in the event of
reduction of work hours or reduction or splitting any violation of any provision of the Labor Code,
of the bargaining unit; including the failure to pay wages.
Duman / Labor I / Prof. Battad / Page 13
The principal shall be deemed the employer of the provided by law or in the contract between the
contractual employee in any of the following principal and the contractor or subcontractor.
cases as declared by a competent authority:
Section 11. Registration of Contractors or
(a) where there is labor-only contracting; or Subcontractors. - Consistent with the authority of
the Secretary of Labor and Employment to restrict
(b) where the contracting arrangement falls within or prohibit the contracting out of labor through
the prohibitions provided in Section 6 appropriate regulations, a registration system to
(Prohibitions) hereof. govern contracting arrangements and to be
implemented by the Regional Offices is hereby
established.
Section 8. Rights of Contractual Employees. -
Consistent with Section 7 of these Rules, the
contractual employee shall be entitled to all the The registration of contractors and
rights and privileges due a regular employee as subcontractors shall be necessary for purposes
provided for in the Labor Code, as amended, to of establishing an effective labor market
include the following: information and monitoring.
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive Failure to register shall give rise to the
leave, rest days, overtime pay, holiday pay, 13th presumption that the contractor is engaged in
month pay and separation pay; labor-only contracting.
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and Section 12. Requirements for registration. - A
peaceful concerted action; and contractor or subcontractor shall be listed in the
(e) Security of tenure. registry of contractors and subcontractors upon
Section 9. Contract between contractor or completion of an application form to be provided
subcontractor and contractual employee. - by the DOLE. The applicant contractor or
Notwithstanding oral or written stipulations to the subcontractor shall provide in the application
contrary, the contract between the contractor or form the following information:
subcontractor and the contractual employee,
which shall be in writing, shall include the
following terms and conditions: (a) The name and business address of the
(a) The specific description of the job, work or applicant and the area or areas where it seeks to
service to be performed by the contractual operate;
employee;
(b) The names and addresses of officers, if the
(b) The place of work and terms and conditions of applicant is a corporation, partnership,
employment, including a statement of the wage cooperative or union;
rate applicable to the individual contractual
employee; and (c) The nature of the applicant's business and the
industry or industries where the applicant seeks
(c) The term or duration of employment, which to operate;
shall be coextensive with the contract of the
principal and subcontractor, or with the specific (d) The number of regular workers; the list of
phase for which the contractual employee is clients, if any; the number of personnel assigned
engaged, as the case may be. to each client, if any and the services provided to
the client;
The contractor or subcontractor shall inform the
contractual employee of the foregoing terms and (e) The description of the phases of the contract
conditions on or before the first day of his and the number of employees covered in each
employment. phase, where appropriate; and

Section 10. Effect of Termination of Contractual (f) A copy of audited financial statements if the
Employment. - In cases of termination of applicant is a corporation, partnership,
employment prior to the expiration of the contract cooperative or a union, or copy of the latest ITR if
between the principal and the contractor or the applicant is a sole proprietorship.
subcontractor, the right of the contractual
employee to separation pay or other related The application shall be supported by:
benefits shall be governed by the applicable laws (a) A certified copy of a certificate of registration
and jurisprudence on termination of employment. of firm or business name from the Securities and
Exchange Commission (SEC), Department of
Where the termination results from the expiration Trade and Industry (DTI), Cooperative
of the contract between the principal and the Development Authority (CDA), or from the DOLE if
contractor or subcontractor, or from the the applicant is a union; and
completion of the phase of the job, work or
service for which the contractual employee is (b) A certified copy of the license or business
engaged, the latter shall not be entitled to permit issued by the local government unit or
separation pay. However, this shall be without units where the contractor or subcontractor
prejudice to completion bonuses or other operates.
emoluments, including retirement pay as may be
Duman / Labor I / Prof. Battad / Page 14
The application shall be verified and shall include subcontractor, retain one set for its file, and
an undertaking that the contractor or transmit the remaining set to the Bureau of Local
subcontractor shall abide by all applicable labor Employment within five (5) days from receipt
laws and regulations. thereof.

Section 13. Filing and processing of applications. Section 16. Delisting of contractors or
- The application and its supporting documents subcontractors. - Subject to due process, the
shall be filed in triplicate in the Regional Offices Regional Director shall cancel the registration of
where the applicant principally operates. No contractors or subcontractors based on any of
application for registration shall be accepted the following grounds:
unless all the foregoing requirements are
complied with. The contractor or subcontractor (a) Non-submission of contracts between the
shall be deemed registered upon payment of a principal and the contractor or subcontractor
registration fee of P100.00 to the Regional Office. when required to do so;

Where all the supporting documents have been (b) Non-submission of annual report;
submitted, the Regional Office shall deny or
approve the application within seven (7) working
days after its filing. (c) Findings through arbitration that the
contractor or subcontractor has engaged in labor-
only contracting and the prohibited activities as
Upon registration, the Regional Office shall return provided in Section 6 (Prohibitions) hereof; and
one set of the duly-stamped application
documents to the applicant, retain one set for its
file, and transmit the remaining set to the Bureau (d) Non-compliance with labor standards and
of Local Employment. The Bureau shall devise the working conditions.
necessary forms for the expeditious processing
of all applications for registration. Section 17. Renewal of registration of contractors
or subcontractors. - All registered contractors or
Section 14. Duty to produce copy of contract subcontractors may apply for renewal of
between the principal and the contractor or registration every three years. For this purpose,
subcontractor. - The principal or the contractor or the Tripartite Industrial Peace Council (TIPC) as
subcontractor shall be under an obligation to created under Executive Order No. 49, shall serve
produce a copy of the contract between the as the oversight committee to verify and monitor
principal and the contractor in the ordinary the following:
course of inspection. The contractor shall (a) Engaging in allowable contracting activities;
likewise be under an obligation to produce a copy and
of the contract of employment of the contractual
worker when directed to do so by the Regional (b) Compliance with administrative reporting
Director or his authorized representative. requirements.

A copy of the contract between the contractual Section 18. Enforcement of Labor Standards and
employee and the contractor or subcontractor Working Conditions. - Consistent with Article 128
shall be furnished the certified bargaining agent, (Visitorial and Enforcement Power) of the Labor
if there is any. Code, as amended, the Regional Director through
his duly authorized representatives, including
Section 15. Annual Reporting of Registered labor regulation officers shall have the authority
Contractors. - The contractor or subcontractor to conduct routine inspection of establishments
shall submit in triplicate its annual report using a engaged in contracting or subcontracting and
prescribed form to the appropriate Regional shall have access to employer's records and
Office not later than the 15th of January of the premises at any time of the day or night whenever
following year. The report shall include: work is being undertaken therein, and the right to
copy therefrom, to question any employee and
investigate any fact, condition or matter which
(a) A list of contracts entered with the principal may be necessary to determine violations or
during the subject reporting period; which may aid in the enforcement of the Labor
Code and of any labor law, wage order, or rules
(b) The number of workers covered by each and regulations issued pursuant thereto.
contract with the principal;
The findings of the duly authorized representative
(c) A sworn undertaking that the benefits from the shall be referred to the Regional Director for
Social Security System (SSS), the Home appropriate action as provided for in Article 128,
Development Mutual Fund (HDMF), PhilHealth, and shall be furnished the collective bargaining
Employees Compensation Commission (ECC), agent, if any.
and remittances to the Bureau of Internal Revenue
(BIR) due its contractual employees have been Based on the visitorial and enforcement power of
made during the subject reporting period. the Secretary of Labor and Employment in Article
128 (a), (b), (c) and (d), the Regional Director shall
The Regional Office shall return one set of the issue compliance orders to give effect to the labor
duly-stamped report to the contractor or
Duman / Labor I / Prof. Battad / Page 15
standards provisions of the Labor Code, other
labor legislation and these guidelines.

Section 19. Solidary liability. - The principal shall
be deemed as the direct employer of the • LIIKHA-PMPB v. Burlinggame corp., GR No.
contractual employees and therefore, solidarily 162833, June 15, 2007
liable with the contractor or subcontractor for
whatever monetary claims the contractual
employees may have against the former in the
case of violations as provided for in Sections 5
(Labor-Only contracting), 6 (Prohibitions), 8
(Rights of Contractual Employees) and 16
(Delisting) of these Rules. In addition, the
principal shall also be solidarily liable in case the
contract between the principal and contractor or
subcontractor is preterminated for reasons not
attributable to the fault of the contractor or
subcontractor.

Section 20. Supersession. - All rules and
regulations issued by the Secretary of Labor and
Employment inconsistent with the provisions of
this Rule are hereby superseded. Contracting or
subcontracting arrangements in the construction
industry, under the licensing coverage of the
PCAB and shall not include shipbuilding and ship b. Desirable – Unnecessary
repairing works, however, shall continue to be
governed by Department Order No. 19, series of • Coca-Cola Bottlers Phil., Inc. v. NLRC, 307 SCRA
1993. 131 (1999)

Section 21. Effectivity. - This Order shall be
effective fifteen (15) days after completion of its
publication in two (2) newspapers of general
circulation.

.
Manila, Philippines, 21 February 2002.

a. Requirements for Independent Contractor

• San Miguel Corp v. NLRC & Maliksi, GR No.
147566, Dec. 6, 2006

c. Labor Contractor Only; Requisites and Prohibition

• Manila Water Co., Inc. v. Pena, 434 SCRA 52
(2004)

Duman / Labor I / Prof. Battad / Page 16
D. Pre-employment, Recruitment and Placement
d. Effect of Finding of Workers

• San Miguel Corporation v. Abella, 461 SCRA 392
Reference: Arts. 12-42; POEA Rules; Book 1, Rules III-
VIII, Omnibus Rules; Migrant Workers and Overseas
(2005) Filipinos Act of 1995 (RA 8042); Anti-Trafficking in
Persons Act 2003 (RA 9208) and Rules and
Regulations Implementing RA 9208

1. Pre-employment Policy – Statement of
Objectives, Art. 12 (a) (f);
Const., Art. II, Sec. 9; RA 8042, Sec. 2, 4 & 5.

ART. 12. Statement of objectives. - It is the policy of
the State:

a) To promote and maintain a state of full
employment through improved manpower
training, allocation and utilization;

f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;

1987 Constitution, Art II, Sec. 9

The State shall promote a just and dynamic
social order that will ensure the prosperity
and independence of the nation and free the
people from poverty through policies that
provide adequate social services, promote
full employment, a rising standard of living,
3. Liability of Indirect Employer and an improved quality of life for all.

• Lanzaderas v. Amethyst Security & General Services,
REPUBLIC ACT NO. 8042
SEC. 2. DECLARATION OF POLICIES--
Inc., supra
(a) In the pursuit of an independent foreign
policy and while considering national
sovereignty, territorial integrity, national
interest and the right to self-determination
paramount in its relations with other states,
the State shall, at all times, uphold the
dignity of its citizens whether in country or

Duman / Labor I / Prof. Battad / Page 17
overseas, in general, and Filipino migrant shall be rendered free without prejudice to
workers, in particular. the provision of Section 36 hereof.
(b) The State shall afford full protection to Nonetheless, the deployment of Filipino
labor, local and overseas, organized and overseas workers, whether land-based or
unorganized, and promote full employment sea-based by local service contractors and
and equality of employment opportunities for manning agencies employing them shall be
all. Towards this end, the State shall provide encouraged. Appropriate incentives may be
adequate and timely social, economic and extended to them.
legal services to Filipino migrant workers.
I. DEPLOYMENT
(c) While recognizing the significant
contribution of Filipino migrant workers to the SEC. 4. Deployment of Migrant Workers -
national economy through their foreign The State shall deploy overseas Filipino
exchange remittances, the State does not workers only in countries where the rights of
promote overseas employment as a means Filipino migrant workers are protected. The
to sustain economic growth and achieve government recognizes any of the following
national development. The existence of the as guarantee on the part of the receiving
overseas employment program rests solely country for the protection and the rights of
on the assurance that the dignity and overseas Filipino workers:
fundamental human rights and freedoms of (a) It has existing labor and social laws
the Filipino citizens shall not, at any time, be protecting the rights of migrant workers;
compromised or violated. The State,
therefore, shall continuously create local (b) It is a signatory to multilateral
employment opportunities and promote the conventions, declaration or resolutions
equitable distribution of wealth and the relating to the protection of migrant workers;
benefits of development. (c) It has concluded a bilateral agreement or
(d) The State affirms the fundamental arrangement with the government protecting
equality before the law of women and men the rights of overseas Filipino workers; and
and the significant role of women in nation- (d) It is taking positive, concrete measures to
building. Recognizing the contribution of protect the rights of migrant workers.
overseas migrant women workers and their
particular vulnerabilities, the State shall SEC. 5. TERMINATION OR BAN ON
apply gender sensitive criteria in the DEPLOYMENT - Notwithstanding the
formulation and implementation of policies provisions of Section 4 hereof, the
and programs affecting migrant workers and government, in pursuit of the national
the composition of bodies tasked for the interest or when public welfare so requires,
welfare of migrant workers. may, at any time, terminate or impose a ban
on the deployment of migrant workers.
(e) Free access to the courts and quasi-
judicial bodies and adequate legal
assistance shall not be denied to any
2. Private Sector – Agencies and Entities
persons by reason of poverty. In this regard,
it is imperative that an effective mechanism a. Parties
be instituted to ensure that the rights and
interest of distressed overseas Filipinos, in 1) Worker – Art. 13 (a)
general, and Filipino migrant workers, in
particular, documented or undocumented, ART. 13. Definitions. - (a) "Worker" means
are adequately protected and safeguarded. any member of the labor force, whether employed or
unemployed.
(f) The right of Filipino migrant workers and
all overseas Filipinos to participate in the
democratic decision-making processes of 2) Private Employment Agency – Arts. 13 (c) (d), 12
the State and to be represented in (f), 14 (a)
institutions relevant to overseas employment
is recognized and guaranteed.
(g) The State recognizes that the ultimate ART. 13. (c) "Private fee-charging
protection to all migrant workers is the employment agency" means any person or
possession of skills. Pursuant to this and as entity engaged in recruitment and placement
soon as practicable, the government shall of workers for a fee which is charged,
deploy and/or allow the deployment only to directly or indirectly, from the workers or
skilled Filipino workers. employers or both.
(h) Non-governmental organizations, duly
recognized as legitimate, are partners of the (d) "License" means a document issued by
State in the protection of Filipino migrant the Department of Labor authorizing a
workers and in the promotion of their person or entity to operate a private
welfare, the State shall cooperate with them employment agency.
in a spirit of trust and mutual respect.
ART. 12. Statement of objectives. - It is the
(I) Government fees and other administrative policy of the State:
costs of recruitment, introduction, placement
and assistance to migrant workers
Duman / Labor I / Prof. Battad / Page 18
f) To strengthen the network of public promises for a fee, employment to two or
employment offices and rationalize the more persons shall be deemed engaged in
participation of the private sector in the recruitment and placement.
recruitment and placement of workers,
locally and overseas, to serve national
development objectives; 2) Overseas Employment, Sec. 6, RA 8042

ART. 14. Employment promotion. - The Sec. 6. DEFINITIONS. - For purposes of this
Secretary of Labor shall have the power and Act, illegal recruitment shall mean any act of
authority: canvassing, enlisting, contracting,
transporting, utilizing, hiring, procuring
workers and includes referring, contact
(a) To organize and establish new services, promising or advertising for
employment offices in addition to the existing employment abroad, whether for profit or
employment offices under the Department of not, when undertaken by a non-license or
Labor as the need arises; non-holder of authority contemplated under
Article 13(f) of Presidential Decree No. 442,
as amended, otherwise known as the Labor
Code of the Philippines. Provided, that such
non-license or non-holder, who, in any
manner, offers or promises for a fee
employment abroad to two or more persons
3) Private Recruitment Entity – Arts. 13 (e) (f), 12 (f), shall be deemed so engaged. It shall
14 (a)
likewise include the following acts, whether
committed by any persons, whether a non-
licensee, non-holder, licensee or holder of
ART. 13. (e) "Private recruitment entity" authority.
means any person or association engaged in
the recruitment and placement of workers, (a) To charge or accept directly or indirectly
locally or overseas, without charging, directly any amount greater than the specified in the
or indirectly, any fee from the workers or schedule of allowable fees prescribed by the
employers. Secretary of Labor and Employment, or to
make a worker pay any amount greater than
that actually received by him as a loan or
(f) "Authority" means a document issued by
advance;
the Department of Labor authorizing a
person or association to engage in (b) To furnish or publish any false notice or
recruitment and placement activities as a information or document in relation to
private recruitment entity. recruitment or employment;
(c) To give any false notice, testimony,
ART. 12. Statement of objectives. - It is the information or document or commit any act
policy of the State: of misrepresentation for the purpose of
securing a license or authority under the
f) To strengthen the network of public Labor Code;
employment offices and rationalize the
(d) To induce or attempt to induce a worker
participation of the private sector in the
already employed to quit his employment in
recruitment and placement of workers,
order to offer him another unless the transfer
locally and overseas, to serve national
is designed to liberate a worker from
development objectives;
oppressive terms and conditions of
employment;
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and (e) To influence or attempt to influence any
authority: persons or entity not to employ any worker
who has not applied for employment through
his agency;
(a) To organize and establish new
employment offices in addition to the existing (f) To engage in the recruitment of placement
employment offices under the Department of of workers in jobs harmful to public health or
Labor as the need arises; morality or to dignity of the Republic of the
Philippines;
b. Recruitment and Placement (g) To obstruct or attempt to obstruct
inspection by the Secretary of Labor and
1) Local Employment, Art. 13 (b)
Employment or by his duly authorized
representative;
(b) "Recruitment and placement" refers to
any act of canvassing, enlisting, contracting, (h) To fail to submit reports on the status of
transporting, utilizing, hiring or procuring employment, placement vacancies,
workers, and includes referrals, contract remittances of foreign exchange earnings,
services, promising or advertising for separations from jobs, departures and such
employment, locally or abroad, whether for other matters or information as may be
profit or not: Provided, That any person or required by the Secretary of Labor and
entity which, in any manner, offers or Employment;
Duman / Labor I / Prof. Battad / Page 19
(i) To substitute or alter to the prejudice of in the development and implementation of a
the worker, employment contracts approved comprehensive employment program, the
and verified by the Department of Labor and private employment sector shall participate
Employment from the time of actual signing in the recruitment and placement of workers,
thereof by the parties up to and including the locally and overseas, under such guidelines,
period of the expiration of the same without rules and regulations as may be issued by
the approval of the Department of Labor and the Secretary of Labor.
Employment;
ART. 12. Statement of objectives. - It is the
(j) For an officer or agent of a recruitment or policy of the State:
placement agency to become an officer or
member of the Board of any corporation f) To strengthen the network of public
engaged in travel agency or to be engaged employment offices and rationalize the
directly on indirectly in the management of a participation of the private sector in the
travel agency; recruitment and placement of workers,
locally and overseas, to serve national
(k) To withhold or deny travel documents development objectives;
from applicant workers before departure for
monetary or financial considerations other 2) Prohibited Business Agencies and Entities, Arts.
than those authorized under the Labor Code 16, 18, 25, 26
and its implementing rules and regulations;
(l) Failure to actually deploy without valid ART. 16. Private recruitment. - Except as provided in
reasons as determined by the Department of Chapter II of this Title, no person or entity other than
Labor and Employment; and the public employment offices, shall engage in the
recruitment and placement of workers.
(m) Failure to reimburse expenses incurred
by the workers in connection with his ART. 18. Ban on direct-hiring. - No employer may hire
documentation and processing for purposes a Filipino worker for overseas employment except
of deployment, in cases where the through the Boards and entities authorized by the
deployment does not actually take place Secretary of Labor. Direct-hiring by members of the
without the worker's fault. Illegal recruitment diplomatic corps, international organizations and such
when committed by a syndicate or in large other employers as may be allowed by the Secretary
scale shall be considered as offense of Labor is exempted from this provision.
involving economic sabotage.
ART. 25. Private sector participation in the recruitment
Illegal recruitment is deemed committed by a and placement of workers. - Pursuant to national
syndicate carried out by a group of three (3) development objectives and in order to harness and
or more persons conspiring or confederating maximize the use of private sector resources and
with one another. It is deemed committed in initiative in the development and implementation of a
large scale if committed against three (3) or comprehensive employment program, the private
more persons individually or as a group. employment sector shall participate in the recruitment
The persons criminally liable for the above and placement of workers, locally and overseas,
offenses are the principals, accomplices and under such guidelines, rules and regulations as may
accessories. In case of juridical persons, the be issued by the Secretary of Labor.
officers having control, management or
direction of their business shall be liable. ART. 26. Travel agencies prohibited to recruit. - Travel
agencies and sales agencies of airline companies are
c. Allowed and Protected Entities prohibited from engaging in the business of
recruitment and placement of workers for overseas
1) Allowed Private Agencies and Entities, Arts. 16, employment whether for profit or not.
18, 25, 12 (f)
d. Government Techniques of Regulation – Private
ART. 16. Private recruitment. - Except as Recruitment
provided in Chapter II of this Title, no person
or entity other than the public employment
offices, shall engage in the recruitment and
1) Licensing, Arts. 27, 28, 29, 30, 31, POEA rules and
Regulations, Book II, Sec. 1 and Book II, Rule II
placement of workers.
ART. 18. Ban on direct-hiring. - No employer
may hire a Filipino worker for overseas ART. 27. Citizenship requirement. - Only
employment except through the Boards and Filipino citizens or corporations, partnerships
entities authorized by the Secretary of Labor. or entities at least seventy-five percent
Direct-hiring by members of the diplomatic (75%) of the authorized and voting capital
corps, international organizations and such stock of which is owned and controlled by
other employers as may be allowed by the Filipino citizens shall be permitted to
Secretary of Labor is exempted from this participate in the recruitment and placement
provision. of workers, locally or overseas.
ART. 25. Private sector participation in the
recruitment and placement of workers. - ART. 28. Capitalization. - All applicants for
Pursuant to national development objectives authority to hire or renewal of license to
and in order to harness and maximize the recruit are required to have such substantial
use of private sector resources and initiative
Duman / Labor I / Prof. Battad / Page 20
capitalization as determined by the Secretary
of Labor. Section 1. Requirements for Issuance of
License. - Every applicant for license to
ART. 29. Non-transferability of license or operate a private employment agency or
authority. - No license or authority shall be manning agency shall submit a written
used directly or indirectly by any person application together with the following
other than the one in whose favor it was requirements:
issued or at any place other than that stated
in the license or authority be transferred, a. A certified copy of the Articles of
conveyed or assigned to any other person or Incorporation or of Partnership duly
entity. Any transfer of business address, registered with the Securities and Exchange
appointment or designation of any agent or Commission (SEC), in the case of
representative including the establishment of corporation or partnership or Certificate of
additional offices anywhere shall be subject Registration of firm or business name with
to the prior approval of the Department of the Bureau of Domestic Trade (BDT) in the
Labor. case of a single proprietorship;

ART. 30. Registration fees. - The Secretary b. Proof of financial capacity: In the case of
of Labor shall promulgate a schedule of fees a single proprietorship or partnership,
for the registration of all applicants for verified income tax returns for the past two
license or authority. (2) years and a bank certificate of a cash
deposit of P250,000.00, provided that the
ART. 31. Bonds. - All applicants for license or applicant should submit an authority to
authority shall post such cash and surety examine such bank deposit.
bonds as determined by the Secretary of
Labor to guarantee compliance with In the case of a newly organized corporation,
prescribed recruitment procedures, rules and submission of a bank certificate of a cash
regulations, and terms and conditions of deposit of at least P250,000.00 with authority
employment as may be appropriate. to examine the same. For an existing
corporation, submission of a verified financial
POEA Rules, Book II, statement, corporate tax returns for the past
LICENSING AND REGULATION two (2) years and bank certification of a cash
deposit of at least P250,000.00 with the
RULE I corresponding authority to examine such
PARTICIPATION OF THE PRIVATE SECTOR IN THE deposit.
OVERSEAS EMPLOYMENT PROGRAM
c. Escrow agreement in the amount of
Section 1. Qualifications. Only those who P200,000.00 with an accredited reputable
possess the following qualifications may be banking corporation to primarily answer for
permitted to engage in the business of valid and legal claims of recruited workers as
recruitment and placement of Filipino a result of recruitment violations or money
workers: claims;

a. Filipino citizens, partnerships or d. Clearance of all members of the Board of
corporations at least seventy five percent Directors, partner, or proprietor of the
(75%) of the authorized capital stock of applicant agency from the National Bureau
which is owned and controlled by Filipino of Investigation (NBI) and other government
citizens; agencies as the need may require, Fiscal’s
clearance in case of persons with criminal
b. A minimum capitalization of Two Million cases; provided that where the member or
Pesos (P2,000,000.00) in case of a single partner concerned is a foreigner, clearance
proprietorship or partnership and a minimum from his country of origin shall be
paid-up capital of Two Million Pesos acceptable;
(P2,000,000.00) in case of a corporation;
Provided that those with existing licenses
shall, within four years from effectivity e. Proof of marketing capability;
hereof, increase their capitalization or paid
up capital, as the case may be, to Two
Million Pesos (P2,000,000.00) at the rate of For land-based applicants:
Two Hundred Fifty Thousand Pesos
(P250,000.00) every year.
An applicant with an actual principal/foreign
c. Those not otherwise disqualified by law or employer to be serviced, shall at the time of
other government regulations to engage in application submit the following documents
the recruitment and placement of workers for for evaluation:
overseas employment.

RULE II

ISSUANCE OF LICENSE
Duman / Labor I / Prof. Battad / Page 21
(1) A duly executed Special Power of disability compensation and repatriation;
Attorney authenticated by the Philippine
Embassy/Consulate or Labor Attache in the (4) Shall guarantee compliance with the
place where the principal/employers hold existing labor and social legislations of the
their office; or Philippines and of the country of employment
of recruited workers; and
(2) A concluded service/recruitment
agreement authenticated by the Philippine (5) Shall assume full and complete
Embassy/Consulate, or Labor Attache in the responsibility for all acts of its officials,
place where the project/job site is located; employees and representatives done in
connection with recruitment and placement;
(3) An authenticated manpower mobilization
request or visa approval of not less than fifty g. List of all officials and personnel involved
(50) workers for deployment within a period in the recruitment and placement, together
not exceeding six (6) months from issuance with their appointment, bio-data and two (2)
of approved license; copies of their passport-size pictures.

h. Copy of contract of lease or proof of
building ownership together with office
An applicant who, at the time of application address.
is unable to present a foreign
principal/employer shall, upon compliance Section 2. Action on the Application. - Within
with all other licensing requirements as thirty (30) calendar days from receipt of
herein provided, be issued a provisional application or requirements including proof of
license, subject to submission of a verified payment of a non-refundable filing fee of
undertaking to deploy at least fifty (50) P5,000.00, the Administration shall evaluate
workers, exclusive of direct hired, within a pertinent documents of the applicant, inspect
period not exceeding six (6) months from the offices and equipment and recommend
date of issuance of provisional license. It is to the Secretary the approval or denial of the
understood that failure to comply with this application.
undertaking shall result in the automatic
revocation of the provisional license.
Section 3. Issuance of License. - The
Administration shall recommend to the
Secretary issuance of the corresponding
For manning applicants: license upon due evaluation and compliance
with licensing requirements and operational
(1) A duly executed Special Power of standards.
Attorney authenticated by the Philippine
Embassy/Consulate or Labor Attache in Section 4. Payment of Fees and Posting of
place where the vessel Bonds. - Upon approval of the application,
owners/operators/manager hold their the applicant shall pay a license fee of
principal office; or P30,000.00. It shall also post a cash bond of
P100,000.00 and a surety bond of
(2) A duly concluded manning agreement P50,000.00 from a bonding company
authenticated by the Philippine Embassy, acceptable to the Administration and duly
Consulate, or Labor Attache in the place accredited by the Insurance Commission.
where the vessel/owners/operators/ The bonds shall answer for all valid and legal
manager hold their principal office; claims arising from violations of the
conditions for the grant and use of the
(3) A manpower mobilization request of not license, and/or accreditation and contracts of
less than fifty (50) seafarers for deployment employment. The bonds shall likewise
within a period not exceeding six (6) months guarantee compliance with the provisions of
from issuance of approved license. the Code and its implementing rules and
regulations relating to recruitment and
f. A verified undertaking stating that the placement, the Rules of the Administration
applicant: and relevant issuances of the Department
and all liabilities which the Administration
(1) Shall select only medically and may impose. The surety bonds shall include
technically qualified recruits; the condition “that notice to the principal is
notice to the surety and that any judgment
(2) Shall assume full and complete against the principal in connection with
responsibility for all claims and liabilities matters falling under POEA’s jurisdiction
which may arise in connection with the use shall be binding and conclusive on the
of license; surety. The surety bonds shall be co-
terminus with the validity period of the
(3) Shall assume joint and solidary liability license.
with the employer for all claims and liabilities
which may arise in connection with the Section 5. Validity of License. - Every
implementation of the contract, including but license shall be valid for at least two (2)
not limited to payment of wages, death and years from the date of issuance unless
Duman / Labor I / Prof. Battad / Page 22
sooner cancelled or revoked by the with the Administration within thirty (30)
Secretary or suspended by the calendar days from the date the change was
Administration for violation of the Code and decided or approved. The corporation shall
its rules and relevant decrees, orders and be required to submit to the Administration
issuances and other rules and regulations of the Minutes of Proceedings duly certified by
the Department. Such license shall be valid the SEC, the bio-data and clearances of the
only at the place/s stated therein and when new members of the Board from the
used by the licensed person, partnership or government agencies identified in Section 1
corporation. (e) of this Rule.

Section 6. Non-Transferability of License. - Section 10. Change of Other Officers and
No license shall be transferred, conveyed or Personnel. - Every change or termination of
assigned to any person, partnership or appointment of officers, representatives and
corporation. It shall not be used directly or personnel shall be registered with the
indirectly by any person, partnership or Administration within thirty (30) calendar
corporation other than the one in whose days from the date of such change.
favor it was issued. Violation shall cause
automatic revocation of license. The Administration reserves the right to deny
the appointment of officers and employees
In case of death of the sole proprietor, and in who were directly involved in recruitment
order to prevent disruption of operation and irregularities.
so as not to prejudice the interest of
legitimate heirs, the licensed single Section 11. Appointment of
proprietorship may be allowed to continue Representatives. - Every appointment of
only for the purpose of winding up its representatives or agents of licensed agency
business operation. shall be subject to prior approval or authority
of the Administration.
Section 7. Change of
Ownership/Relationship of Single The approval may be issued upon
Proprietorship or Partnership. - Transfer or submission of or compliance with the
change of ownership of a single following requirements:
proprietorship licensed to engage in
overseas employment shall cause the a. Proposed appointment or special power of
automatic revocation of the license. The attorney;
new owner shall be required to apply for a
license in accordance with these Rules. b. Clearances of the proposed
representative or agent from NBI;
A change in the relationship of the partners
in a partnership duly licensed to engage in c. A sworn or verified statement by the
overseas employment which materially designating or appointing person or
interrupts the course of the business or company assuming full responsibility for all
results in the actual dissolution of the acts of the agent or representative done in
partnership shall likewise cause the connection with the recruitment and
automatic revocation of the license. placement of workers;

Section 8. Upgrading of Single Section 12. Publication of Change of
Proprietorship or Partnerships. - License Directors/Other Officers and Personnel/
holders which are single proprietorships or Revocation or Amendment of Appointment
partnerships may, subject to the guidelines of Representatives. - In addition to the
of the Administration, convert into requirement of registration with and
corporation for purposes of upgrading or submission to the Administration, every
raising their capabilities to respond change in the membership of the Board of
adequately to developments/changes in the Directors, resignation/termination of other
international labor market and to enable officers and personnel, revocation or
them to better comply with their amendment of appointment of
responsibilities arising from the recruitment representatives shall be published at least
and deployment of workers overseas. once in a newspaper of general circulation,
in order to bind third parties. Proof of such
The approval of merger, consolidation or publication shall be submitted to the
upgrading shall automatically revoke or Administration
cancel the licenses of the single
proprietorships, partnerships or corporations Section 13. Transfer of Business Address
so merged, consolidated or upgraded. and Studio. - Any transfer of business
address shall be effected only with prior
Section 9. Change of Directors of authority or approval of the Administration.
Corporation. - Every change in the The approval shall be issued only upon
composition of the Board of Directors of a formal notice of the intention to transfer with
corporation licensed to participate in the following attachments:
overseas employment shall be registered
Duman / Labor I / Prof. Battad / Page 23
a. Copy of the company’s notice to the BDT
or the SEC on the transfer of business d. Replenishment of the cash bond in case
address; such or any part thereof is garnished;

b. In the case of a corporation, a Board e. Proof of financial capacity such as but not
Resolution duly registered with the SEC limited to verified financial statements for the
authorizing the transfer of business address; past two (2) years, verified corporate or
individual tax returns with confirmation
receipts, and compliance with capitalization
c. In the case of a single proprietorship, a requirements and infusion thereof as the
copy of the BDT’s acknowledgment of the case may be, as certified by the Securities
notice to transfer; and and Exchange Commission;

d. Copy of the contract of lease or proof of f. Summary of deployment reports during the
building ownership. validity of the license sought to be renewed;

The new office shall be subject to the normal g. Summary of payroll reports in case of
ocular inspection procedures by duly contractors and manning agencies during
authorized representatives of the the validity of the license sought to be
Administration. renewed; and

h. Other requirements as may be imposed
A notice to the public of the new address by the Administration.
shall be published in a newspaper of general
circulation.
Section 18. Non-expiration of License. -
Where the license holder has made timely
Section 14. Establishment of Executive and sufficient application for renewal, the
Office. - The establishment of an executive existing license shall not expire until the
office outside of the registered address shall application shall have been finally
be effected only with prior approval or determined by the Administration.
authority of the Administration. The approval
may be issued upon submission of an
affidavit of undertaking to the effect that no Section 19. Action on Renewal of License. -
recruitment activity whatsoever shall be Within thirty (30) calendar days from receipt
conducted thereat and that the agency has a of the application for renewal the
valid contract of lease or building ownership. Administration shall undertake evaluation
and inspection and thereafter recommend to
the Secretary the grant or denial of the
Section 15. Establishment of Branch and application.
Extension Offices. - Branch and extension
offices may be established in areas
approved by the Secretary, subject to Section 20. Failure to Renew. - Any agency
implementing guidelines. which fails to obtain a renewal of its license
within thirty (30) calendar days from
expiration thereof, shall be immediately
Section 16. Conduct of Recruitment Outside deemed delisted and disallowed from
of Registered Office, Branch or Extension conducting recruitment and placement.
Office. - No licensed agency shall conduct
any provincial recruitment, job fairs or
recruitment activities of any form outside of Section 21. Denial of Renewal of Licenses.
the address stated in the license, - Licenses of agencies which fail to conclude
acknowledged Branch or Extension Office or a recruitment or manning agreement and/or
without first securing prior authority from the undertake minimum levels of worker
Administration of the Center. deployment and foreign exchange
generation or those which fail to meet the
minimum operational standards and
Section 17. Renewal of License. - An requirements set by the Administration, shall
agency shall submit an application for the not be renewed.
renewal thereof to the Administration. Such
application shall be supported by the
following documents: Section 22. When to Consider Cash
Bond/Deposit in Escrow Garnished. - As
soon as an Order of Garnishment is served
a. Proof of foreign exchange earnings issued upon the Administration/Bank, and the same
by the Central Bank; is correspondingly earmarked, the cash
bond/deposit in escrow of an agency shall no
b. Surety bond duly renewed or revalidated; longer be considered sufficient. The
Administration shall forthwith serve upon the
c. Escrow agreement in the amount of agency a notice to replenish.
P200,000.00 with an accredited reputable
banking corporation to primarily answer for
valid and legal claims of recruited workers as Section 23. Replenishment of Cash or
a result of recruitment violations or money Surety Bonds/Deposit in Escrow. - Within
claims; fifteen (15) calendar days from date of
receipt of notice from the Administration that
Duman / Labor I / Prof. Battad / Page 24
the bonds/deposit in escrow, or any part ART. 34. Prohibited practices. - It shall be
thereof had been garnished, the agency unlawful for any individual, entity, licensee,
shall replenish the same. Failure to or holder of authority:
replenish such bonds/deposit in escrow
within the said period shall cause the (a) To charge or accept, directly or indirectly,
suspension of the license. any amount greater than that specified in the
schedule of allowable fees prescribed by the
Section 24. Refund of Cash Bond/Release Secretary of Labor, or to make a worker pay
of Deposit in Escrow. - A licensed agency any amount greater than that actually
which voluntarily surrenders its license shall received by him as a loan or advance;
be entitled to the refund of its deposited cash
bond and release of the deposit in escrow, (b) To furnish or publish any false notice or
only after posting a surety bond of similar information or document in relation to
amount valid for four (4) years from recruitment or employment;
expiration of license.
(c) To give any false notice, testimony,
Section 25. Evaluation of Performance of information or document or commit any act
Agencies. - The Administration shall of misrepresentation for the purpose of
undertake the annual evaluation and rating securing a license or authority under this
of the performance of licensed agencies to Code.
determine the merits of their continued
participation in the overseas employment
program taking into consideration (d) To induce or attempt to induce a worker
compliance with laws and regulations and already employed to quit his employment in
such other criteria as it may deem proper. order to offer him to another unless the
transfer is designed to liberate the worker
from oppressive terms and conditions of
Section 26. Classification and Ranking. - employment;
The Administration may undertake the
classification and ranking of agencies. In
recognition of exemplary performance, it (e) To influence or to attempt to influence
may undertake schemes for incentives and any person or entity not to employ any
rewards. worker who has not applied for employment
through his agency;

2) Workers’ Fees, Art. 32 (f) To engage in the recruitment or placement
of workers in jobs harmful to public health or
ART. 32. Fees to be paid by workers. - Any morality or to the dignity of the Republic of
person applying with a private fee-charging the Philippines;
employment agency for employment
assistance shall not be charged any fee until (g) To obstruct or attempt to obstruct
he has obtained employment through its inspection by the Secretary of Labor or by
efforts or has actually commenced his duly authorized representatives;
employment. Such fee shall be always
covered with the appropriate receipt clearly
showing the amount paid. The Secretary of (h) To fail to file reports on the status of
Labor shall promulgate a schedule of employment, placement vacancies,
allowable fees. remittance of foreign exchange earnings,
separation from jobs, departures and such
other matters or information as may be
3) Reports/Employment Information, Arts. 33, 14 (d) required by the Secretary of Labor.
ART. 33. Reports on employment status. -
Whenever the public interest requires, the (i) To substitute or alter employment
Secretary of Labor may direct all persons or contracts approved and verified by the
entities within the coverage of this Title to Department of Labor from the time of actual
submit a report on the status of employment, signing thereof by the parties up to and
including job vacancies, details of job including the periods of expiration of the
requisitions, separation from jobs, wages, same without the approval of the Secretary
other terms and conditions and other of Labor;
employment data.
(j) To become an officer or member of the
ART. 14. Employment promotion. - The
Board of any corporation engaged in travel
Secretary of Labor shall have the power and
agency or to be engaged directly or indirectly
authority:
in the management of a travel agency; and
(d) To require any person, establishment,
organization or institution to submit such (k) To withhold or deny travel documents
employment information as may be from applicant workers before departure for
prescribed by the Secretary of Labor. monetary or financial considerations other
than those authorized under this Code and
4) Prohibited Practices, Art. 34 its implementing rules and regulations.

Duman / Labor I / Prof. Battad / Page 25
5) Illegal Recruitment, Art. 38; Sec. 6, RA 8042 may, at any time, inspect the premises,
books of accounts and records of any person
or entity covered by this Title, require it to
submit reports regularly on prescribed forms,
ART. 38. Illegal recruitment. - (a) Any and act on violation of any provisions of this
recruitment activities, including the prohibited Title.
practices enumerated under Article 34 of this
Code, to be undertaken by non-licensees or 7) Joint and Several Liability of Agent and Principal,
non-holders of authority, shall be deemed POEA Rules, Book II, Rule II, Sec. 1 (f)
illegal and punishable under Article 39 of this
Code. The Department of Labor and
Employment or any law enforcement officer Section 1. Requirements for Issuance of
may initiate complaints under this Article. License. - Every applicant for license to
operate a private employment agency or
(b) Illegal recruitment when committed by a manning agency shall submit a written
syndicate or in large scale shall be application together with the following
considered an offense involving economic requirements:
sabotage and shall be penalized in
accordance with Article 39 hereof. f. A verified undertaking stating that the
applicant:
Illegal recruitment is deemed committed by a
syndicate if carried out by a group of three (1) Shall select only medically and technically
(3) or more persons conspiring and/or qualified recruits;
confederating with one another in carrying
out any unlawful or illegal transaction, (2) Shall assume full and complete responsibility for
enterprise or scheme defined under the first all claims and liabilities which may arise in
paragraph hereof. Illegal recruitment is connection with the use of license;
deemed committed in large scale if
committed against three (3) or more persons (3) Shall assume joint and solidary liability with the
individually or as a group. employer for all claims and liabilities which may
arise in connection with the implementation of the
(c) The Secretary of Labor and Employment contract, including but not limited to payment of
or his duly authorized representatives shall wages, death and disability compensation and
have the power to cause the arrest and repatriation;
detention of such non-licensee or non-holder
of authority if after investigation it is (4) Shall guarantee compliance with the existing
determined that his activities constitute a labor and social legislations of the Philippines and
danger to national security and public order of the country of employment of recruited workers;
or will lead to further exploitation of job- and
seekers. The Secretary shall order the
search of the office or premises and seizure (5) Shall assume full and complete responsibility for
of documents, paraphernalia, properties and all acts of its officials, employees and
other implements used in illegal recruitment representatives done in connection with recruitment
activities and the closure of companies, and placement;
establishments and entities found to be
engaged in the recruitment of workers for e. Jurisdiction
overseas employment, without having been
licensed or authorized to do so. 1) RTC over Criminal Action arising from Illegal
Recruitment, RA No. 8042, Sec. 9
6) Enforcement
SEC. 9. VENUE. - A criminal action arising from illegal
a) Regulatory Power, Art. 36 recruitment as defined herein shall be filed with the
Regional Trial Court of the province or city where the
offense was committed or where the offended party
actually resides at the same time of the commission
ART. 36. Regulatory power. - The Secretary
of the offense: Provided, That the court where the
of Labor shall have the power to restrict and
criminal action is first filed shall acquire jurisdiction to
regulate the recruitment and placement
the exclusion of other courts. Provided, however, That
activities of all agencies within the coverage
the aforestated provisions shall also apply to those
of this Title and is hereby authorized to issue
criminal actions that have already been filed in court
orders and promulgate rules and regulations
at the time of the effectivity of this Act.
to carry out the objectives and implement the
provisions of this Title. 2) LA over Money Claims, RA 8042, Sec. 10

b) Rule-Making Power, Art. 36 SEC. 10. MONEY CLAIMS. -
Botwithstanding any provision of law to the
c) Visitorial Power, Art. 37 contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall
have the priginal and exclusive jurisdiction to
ART. 37. Visitorial Power. - The Secretary of hear and decide, within ninety (90) calendar
Labor or his duly authorized representatives days after filing of the complaint, the claims
Duman / Labor I / Prof. Battad / Page 26
arising out of an employer-employee existing laws or rules and regulations as a
relationship or by virtue of any law or consequence of violating the provisions of
contract involving Filipino workers for this paragraph.
overseas deployment including claims for
actual, moral, exemplary and other forms of 3) POEA over Administrative Cases
damages.
a) Pre-employment Cases, Omnibus rules Impl.
The liability of the
RA No. 8042, Sec. 28 (a)
principal/employer and the
recruitment/placement agency for any and all Sec. 28. Jurisdiction of the POEA. - The
claims under this section shall be joint and POEA shall exercise original and
several. This provisions shall be exclusive jurisdiction to hear and decide:
incorporated in the contract for overseas (a) all cases, which are administrative in
employment and shall be a condition character, involving or arising out of violations of
precedent for its approval. The performance rules and regulations relating to licensing and
bond to be filed by the registration of recruitment and employment
recruitment/placement agency, as provided agencies or entities; and
by law, shall be answerable for all money
claims or damages that may be awarded to b) Disciplinary Cases, Sec. 28 (b)
the workers. If the recruitment/placement (b) disciplinary action cases and other
agency is a juridical being, the corporate special cases, which are administrative in
officers and directors and partners as the character, involving employers,
case may be, shall themselves be jointly and principals, contracting partners and
solidarily liable with the corporation or Filipino migrant workers.
partnership for the aforesaid claims and
damages. 3. Public Sector Agencies – Employment Offices, Art. 12
(f); 14 (a); Sec. 3, Reorganizing POEA (EO No. 247);
Such liabilities shall continue POEA Rules
during the entire period or duration of the
employment contract and shall not be ART. 12. Statement of objectives. - It is the policy of
affected by any substitution, amendment or the State:
modification made locally or in a foreign
country of the said contract. f) To strengthen the network of public
employment offices and rationalize the
Any compromise/amicable
participation of the private sector in the
settlement or voluntary agreement on money
recruitment and placement of workers, locally
claims inclusive of damages under this
and overseas, to serve national development
section shall be paid within four (4) months
objectives;
from the approval of the settlement by the
appropriate authority.
ART. 14. Employment promotion. - The Secretary of
In case of termination of overseas Labor shall have the power and authority:
employment without just, valid or authorized
cause as defined by law or contract, the
workers shall be entitled to the full (a) To organize and establish new
reimbursement of his placement fee with employment offices in addition to the existing
interest of twelve percent (12%) per annum, employment offices under the Department of
plus his salaries for the unexpired portion of Labor as the need arises;
his employment contract or for three (3)
months for every year of the unexpired term, EO No. 247, Sec. 3. Powers and Functions. - In the
whichever is less. pursuit of its mandate, the Administration shall have
the following powers and functions:
Non-compliance with the
mandatory periods for resolutions of cases
provided under this section shall subject the (a) Regulate private sector participation in
responsible officials to any or all of the the recruitment and overseas
following penalties: placement of workers by setting up a
licensing and registration system;
(a) The salary of any such official
who fails to render his decision or resolutions (b) Formulate and implement, in
within the prescribed period shall be, or coordination with appropriate entities
caused to be, withheld until the said official concerned, when necessary, a system
complies therewith; for promoting and monitoring the
(b) Suspension for not more than overseas employment of Filipino
ninety (90) days; or workers taking into consideration their
welfare and the domestic manpower
(c) Dismissal from the service with requirements;
disqualifications to hold any appointive public
office for five (5) years. (c) Protect the rights of Filipino workers
for overseas employment to fair and
Provided, however, that the
equitable recruitment and employment
penalties herein provided shall be without
practices and ensure their welfare;
prejudice to any liability which any such
official may have incurred under other
(d) Exercise original and exclusive
Duman / Labor I / Prof. Battad / Page 27
jurisdiction to hear and decide all claims with the Department of Foreign Affairs,
arising out of an employer-employee Philippine Tourism Authority, Manila
relationship or by virtue of any law or International Airport Authority,
contract involving Filipino workers for Department of Justice, Department of
overseas employment including the Budget and Management and other
disciplinary cases; and all pre- relevant government entities, in the
employment cases which are pursuit of its objectives. The
administrative in character involving or Administration shall also establish and
arising out of violation or requirement maintain joint projects with private
laws, rules and regulations including organizations, domestic or foreign, in
money claims arising therefrom, or the furtherance of its objectives.
violation of the conditions for issuance
of license or authority to recruit workers.
4. Sanctions, Arts. 35, 39 (a) (b) (c) (d) (e); RA
8042, Secs. 6 , 7, 10
All prohibited recruitment activities and
ART. 35. Suspension and/or cancellation of
practices which are penal in character
license or authority. - The Minister of Labor
as enumerated and defined under and
shall have the power to suspend or cancel
by virtue of existing laws, shall be
any license or authority to recruit employees
prosecuted in the regular courts in
for overseas employment for violation of
close coordination with the appropriate
rules and regulations issued by the Ministry
Departments and agencies concerned;
of Labor, the Overseas Employment
Development Board, or for violation of the
(e) Maintain a registry of skills for
provisions of this and other applicable laws,
overseas placement;
General Orders and Letters of Instructions.
(f) Recruit and place workers to service
the requirements for trained and
competent Filipino workers by foreign ART. 39. Penalties. - (a) The penalty of life
governments and their instrumentalities imprisonment and a fine of One Hundred
and such other employers as public Thousand Pesos (P1000,000.00) shall be
interest may require; imposed if illegal recruitment constitutes
economic sabotage as defined herein;
(g) Promote the development of skills
and careful selection of Filipino (b) Any licensee or holder of authority found
workers; violating or causing another to violate any
provision of this Title or its implementing
(h) Undertake overseas market rules and regulations shall, upon conviction
development activities for placement of thereof, suffer the penalty of imprisonment of
Filipino workers; not less than two years nor more than five
years or a fine of not less than P10,000 nor
(i) Secure the best terms and conditions more than P50,000, or both such
of employment of Filipino contract imprisonment and fine, at the discretion of
workers and ensure compliance the court;
therewith;
(c) Any person who is neither a licensee nor
(j) Promote and protect the well-being
a holder of authority under this Title found
of Filipino workers overseas;
violating any provision thereof or its
implementing rules and regulations shall,
(k) Develop and implement programs
upon conviction thereof, suffer the penalty of
for the effective monitoring of returning
imprisonment of not less than four years nor
contract workers, promoting their re-
more than eight years or a fine of not less
training and re-employment or their
than P20,000 nor more than P100,000 or
smooth re-integration into the
both such imprisonment and fine, at the
mainstream of national economy in
discretion of the court;
coordination with other government
agencies;
(d) If the offender is a corporation,
(l) Institute a system for ensuring fair partnership, association or entity, the penalty
and speedy disposition of cases shall be imposed upon the officer or officers
involving violation or recruitment rules of the corporation, partnership, association
and regulations as well as violation of or entity responsible for violation; and if such
terms and conditions of overseas officer is an alien, he shall, in addition to the
employment; penalties herein prescribed, be deported
without further proceedings;
(m) Establish a system for speedy and
efficient enforcement of decisions laid (e) In every case, conviction shall cause and
down through the exercise of its carry the automatic revocation of the license
adjudicatory function; or authority and all the permits and privileges
granted to such person or entity under this
(n) Establish and maintain close Title, and the forfeiture of the cash and
relationship and enter into joint projects
Duman / Labor I / Prof. Battad / Page 28
surety bonds in favor of the Overseas of actual signing thereof by the parties up to and
Employment Development Board or the including the period of the expiration of the same
National Seamen Board, as the case may without the approval of the Department of Labor and
be, both of which are authorized to use the Employment;
same exclusively to promote their objectives.
(j) For an officer or agent of a recruitment or
placement agency to become an officer or member of
a. Local Employment, Art. 39 the Board of any corporation engaged in travel
agency or to be engaged directly on indirectly in the
(SEE ABOVE)
management of a travel agency;
b. Overseas Employment, Art. 35; RA 8042, Sec. 7 (k) To withhold or deny travel documents from
applicant workers before departure for monetary or
(SEE ABOVE FOR ART. 35) financial considerations other than those authorized
under the Labor Code and its implementing rules and
Sec. 6. DEFINITIONS. - For purposes of this Act, regulations;
illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, (l) Failure to actually deploy without valid reasons as
procuring workers and includes referring, contact determined by the Department of Labor and
services, promising or advertising for employment Employment; and
abroad, whether for profit or not, when undertaken by (m) Failure to reimburse expenses incurred by the
a non-license or non-holder of authority contemplated workers in connection with his documentation and
under Article 13(f) of Presidential Decree No. 442, as processing for purposes of deployment, in cases
amended, otherwise known as the Labor Code of the where the deployment does not actually take place
Philippines. Provided, that such non-license or non- without the worker's fault. Illegal recruitment when
holder, who, in any manner, offers or promises for a committed by a syndicate or in large scale shall be
fee employment abroad to two or more persons shall considered as offense involving economic sabotage.
be deemed so engaged. It shall likewise include the
following acts, whether committed by any persons, Illegal recruitment is deemed committed by a
whether a non-licensee, non-holder, licensee or syndicate carried out by a group of three (3) or more
holder of authority. persons conspiring or confederating with one another.
It is deemed committed in large scale if committed
(a) To charge or accept directly or indirectly any against three (3) or more persons individually or as a
amount greater than the specified in the schedule of group.
allowable fees prescribed by the Secretary of Labor
and Employment, or to make a worker pay any The persons criminally liable for the above offenses
amount greater than that actually received by him as are the principals, accomplices and accessories. In
a loan or advance; case of juridical persons, the officers having control,
management or direction of their business shall be
(b) To furnish or publish any false notice or liable.
information or document in relation to recruitment or
employment; SEC. 7. PENALTIES -
(c) To give any false notice, testimony, information or (a) Any person found guilty of illegal recruitment shall
document or commit any act of misrepresentation for suffer the penalty of imprisonment of not less than six
the purpose of securing a license or authority under (6) years and one (1) day but not more than twelve
the Labor Code; (12) years and a fine not less than two hundred
thousand pesos (P200,000.00) nor more than five
(d) To induce or attempt to induce a worker already hundred thousand pesos (P500,000.00).
employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a (b) The penalty of life imprisonment and a fine of not
worker from oppressive terms and conditions of less than five hundred thousand pesos (P500,000.00)
employment; nor more than one million pesos (P1,000,000.00)
shall be imposed if illegal recruitment constitutes
(e) To influence or attempt to influence any persons or economic sabotage as defined herein.
entity not to employ any worker who has not applied
for employment through his agency; Provided, however, that the maximum penalty shall
be imposed if the person illegally recruited is less than
(f) To engage in the recruitment of placement of eighteen (18) years of age or committed by a non-
workers in jobs harmful to public health or morality or licensee or non-holder of authority.
to dignity of the Republic of the Philippines;
SEC. 10. MONEY CLAIMS. - Notwithstanding any
(g) To obstruct or attempt to obstruct inspection by the provision of law to the contrary, the Labor Arbiters of
Secretary of Labor and Employment or by his duly the National Labor Relations Commission (NLRC)
authorized representative; shall have the priginal and exclusive jurisdiction to
(h) To fail to submit reports on the status of hear and decide, within ninety (90) calendar days
employment, placement vacancies, remittances of after filing of the complaint, the claims arising out of
foreign exchange earnings, separations from jobs, an employer-employee relationship or by virtue of any
departures and such other matters or information as law or contract involving Filipino workers for overseas
may be required by the Secretary of Labor and deployment including claims for actual, moral,
Employment; exemplary and other forms of damages.

(i) To substitute or alter to the prejudice of the worker, The liability of the principal/employer and
employment contracts approved and verified by the the recruitment/placement agency for any and all
Department of Labor and Employment from the time claims under this section shall be joint and several.
This provisions shall be incorporated in the contract
Duman / Labor I / Prof. Battad / Page 29
for overseas employment and shall be a condition
precedent for its approval. The performance bond to
be filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money
claims or damages that may be awarded to the
workers. If the recruitment/placement agency is a
juridical being, the corporate officers and directors
and partners as the case may be, shall themselves be
jointly and solidarily liable with the corporation or
partnership for the aforesaid claims and damages.
Such liabilities shall continue during the
entire period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in a
foreign country of the said contract.
Any compromise/amicable settlement or
voluntary agreement on money claims inclusive of
damages under this section shall be paid within four
(4) months from the approval of the settlement by the
6. Trafficking in Persons, RA 9208 and Rules and
appropriate authority. Regulations Implementing RA 9208
In case of termination of overseas
employment without just, valid or authorized cause as
defined by law or contract, the workers shall be Republic of the Philippines
entitled to the full reimbursement of his placement fee Congress of the Philippines
with interest of twelve percent (12%) per annum, plus Metro Manila
his salaries for the unexpired portion of his
employment contract or for three (3) months for every
year of the unexpired term, whichever is less. Twelfth Congress
Second Regular Session
Non-compliance with the mandatory periods
for resolutions of cases provided under this section
shall subject the responsible officials to any or all of
the following penalties:
(a) The salary of any such official who fails Begun held in Metro Manila on Monday, the
to render his decision or resolutions within the twenty-second day of July, two thousand two
prescribed period shall be, or caused to be, withheld
until the said official complies therewith; Republic Act No. 9208 May 26, 2003
(b) Suspension for not more than ninety
(90) days; or AN ACT TO INSTITUTE POLICIES TO
(c) Dismissal from the service with ELIMINATE TRAFFICKING IN PERSONS
disqualifications to hold any appointive public office ESPECIALLY WOMEN AND CHILDREN,
for five (5) years. ESTABLISHING THE NECESSARY
INSTITUTIONAL MECHANISMS FOR THE
Provided, however, that the penalties herein
provided shall be without prejudice to any liability PROTECTION AND SUPPORT OF
which any such official may have incurred under other TRAFFICKED PERSONS, PROVIDING
existing laws or rules and regulations as a PENALTIES FOR ITS VIOLATIONS, AND FOR
consequence of violating the provisions of this OTHER
paragraph.
Be it enacted by the Senate and the House of
5. Issues and Questions on Overseas Representatives of the Philippines in Congress
Employment assembled:
Readings:
Section 1. Title. This Act shall be known as the
• Soriano, Ma. Teresa M., Implications of International "Anti-Trafficking in Persons Act of 2003".
Migration, A
Focus on the Philippine Experience, PLR, Vol 20. No. 2 Section 2. Declaration of Policy. � It is hereby
(1996)
declared that the State values the dignity of
• King, Amelia M., Social and Economic Benefits and every human person and guarantees the respect
Costs, PLR, Vol. 9, No. 1 (1985).
of individual rights. In pursuit of this policy, the
• Licuanan, Patricia B. Katas ng Saudi, a closer look. State shall give highest priority to the enactment
PLR Vol. 9, No. 1 (1985). of measures and development of programs that
will promote human dignity, protect the people
from any threat of violence and exploitation,
eliminate trafficking in persons, and mitigate
pressures for involuntary migration and
Duman / Labor I / Prof. Battad / Page 30
servitude of persons, not only to support (c) Prostitution - refers to any act,
trafficked persons but more importantly, to transaction, scheme or design involving
ensure their recovery, rehabilitation and the use of a person by another, for
reintegration into the mainstream of society. sexual intercourse or lascivious conduct
in exchange for money, profit or any
It shall be a State policy to recognize the equal other consideration.
rights and inherent human dignity of women and
men as enshrined in the United Nations (d) Forced Labor and Slavery - refer to
Universal Declaration on Human Rights, United the extraction of work or services from
Nations Convention on the Rights of the Child, any person by means of enticement,
United Nations Convention on the Protection of violence, intimidation or threat, use of
Migrant Workers and their Families. United force or coercion, including deprivation
Nations Convention Against Transnational of freedom, abuse of authority or moral
Organized Crime Including its Protocol to ascendancy, debt-bondage or
Prevent, Suppress and Punish Trafficking in deception.
Persons, Especially Women and Children and
all other relevant and universally accepted (e) Sex Tourism - refers to a program
human rights instruments and other international organized by travel and tourism-related
conventions to which the Philippines is a establishments and individuals which
signatory. consists of tourism packages or
activities, utilizing and offering escort
Section 3. Definition of Terms. - As used in this and sexual services as enticement for
Act: tourists. This includes sexual services
and practices offered during rest and
(a) Trafficking in Persons - refers to the recreation periods for members of the
recruitment, transportation, transfer or military.
harboring, or receipt of persons with or
without the victim's consent or (f) Sexual Exploitation - refers to
knowledge, within or across national participation by a person in prostitution
borders by means of threat or use of or the production of pornographic
force, or other forms of coercion, materials as a result of being subjected
abduction, fraud, deception, abuse of to a threat, deception, coercion,
power or of position, taking advantage abduction, force, abuse of authority,
of the vulnerability of the person, or, the debt bondage, fraud or through abuse of
giving or receiving of payments or a victim's vulnerability.
benefits to achieve the consent of a
person having control over another (g) Debt Bondage - refers to the
person for the purpose of exploitation pledging by the debtor of his/her
which includes at a minimum, the personal services or labor or those of a
exploitation or the prostitution of others person under his/her control as security
or other forms of sexual exploitation, or payment for a debt, when the length
forced labor or services, slavery, and nature of services is not clearly
servitude or the removal or sale of defined or when the value of the
organs. services as reasonably assessed is not
applied toward the liquidation of the
The recruitment, transportation, transfer, debt.
harboring or receipt of a child for the
purpose of exploitation shall also be (h) Pornography - refers to any
considered as "trafficking in persons" representation, through publication,
even if it does not involve any of the exhibition, cinematography, indecent
means set forth in the preceding shows, information technology, or by
paragraph. whatever means, of a person engaged
in real or simulated explicit sexual
(b) Child - refers to a person below activities or any representation of the
eighteen (18) years of age or one who is sexual parts of a person for primarily
over eighteen (18) but is unable to fully sexual purposes.
take care of or protect himself/herself
from abuse, neglect, cruelty, (i) Council - shall mean the Inter-Agency
exploitation, or discrimination because Council Against Trafficking created
of a physical or mental disability or under Section 20 of this Act.
condition.

Duman / Labor I / Prof. Battad / Page 31
Section 4. Acts of Trafficking in Persons. - It Section 5. Acts that Promote Trafficking in
shall be unlawful for any person, natural or Persons. - The following acts which promote or
juridical, to commit any of the following acts: facilitate trafficking in persons, shall be unlawful:

(a) To recruit, transport, transfer; harbor, (a) To knowingly lease or sublease, use
provide, or receive a person by any or allow to be used any house, building
means, including those done under the or establishment for the purpose of
pretext of domestic or overseas promoting trafficking in persons;
employment or training or
apprenticeship, for the purpose of (b) To produce, print and issue or
prostitution, pornography, sexual distribute unissued, tampered or fake
exploitation, forced labor, slavery, counseling certificates, registration
involuntary servitude or debt bondage; stickers and certificates of any
government agency which issues these
(b) To introduce or match for money, certificates and stickers as proof of
profit, or material, economic or other compliance with government regulatory
consideration, any person or, as and pre-departure requirements for the
provided for under Republic Act No. purpose of promoting trafficking in
6955, any Filipino woman to a foreign persons;
national, for marriage for the purpose of
acquiring, buying, offering, selling or (c) To advertise, publish, print, broadcast
trading him/her to engage in prostitution, or distribute, or cause the
pornography, sexual exploitation, forced advertisement, publication, printing,
labor, slavery, involuntary servitude or broadcasting or distribution by any
debt bondage; means, including the use of information
technology and the internet, of any
(c) To offer or contract marriage, real or brochure, flyer, or any propaganda
simulated, for the purpose of acquiring, material that promotes trafficking in
buying, offering, selling, or trading them persons;
to engage in prostitution, pornography,
sexual exploitation, forced labor or (d) To assist in the conduct of
slavery, involuntary servitude or debt misrepresentation or fraud for purposes
bondage; of facilitating the acquisition of
clearances and necessary exit
(d) To undertake or organize tours and documents from government agencies
travel plans consisting of tourism that are mandated to provide pre-
packages or activities for the purpose of departure registration and services for
utilizing and offering persons for departing persons for the purpose of
prostitution, pornography or sexual promoting trafficking in persons;
exploitation;
(e) To facilitate, assist or help in the exit
(e) To maintain or hire a person to and entry of persons from/to the country
engage in prostitution or pornography; at international and local airports,
territorial boundaries and seaports who
(f) To adopt or facilitate the adoption of are in possession of unissued, tampered
persons for the purpose of prostitution, or fraudulent travel documents for the
pornography, sexual exploitation, forced purpose of promoting trafficking in
labor, slavery, involuntary servitude or persons;
debt bondage;
(f) To confiscate, conceal, or destroy the
(g) To recruit, hire, adopt, transport or passport, travel documents, or personal
abduct a person, by means of threat or documents or belongings of trafficked
use of force, fraud, deceit, violence, persons in furtherance of trafficking or to
coercion, or intimidation for the purpose prevent them from leaving the country or
of removal or sale of organs of said seeking redress from the government or
person; and appropriate agencies; and

(h) To recruit, transport or adopt a child (g) To knowingly benefit from, financial
to engage in armed activities in the or otherwise, or make use of, the labor
Philippines or abroad. or services of a person held to a
condition of involuntary servitude, forced
labor, or slavery.

Duman / Labor I / Prof. Battad / Page 32
Section 6. Qualified Trafficking in Persons. - the trafficked person or of the accused, or any
The following are considered as qualified other information tending to establish their
trafficking: identities and such circumstances or information
shall not be disclosed to the public.
(a) When the trafficked person is a child;
In cases when prosecution or trial is conducted
(b) When the adoption is effected behind closed-doors, it shall be unlawful for any
through Republic Act No. 8043, editor, publisher, and reporter or columnist in
otherwise known as the "Inter-Country case of printed materials, announcer or producer
Adoption Act of 1995" and said adoption in case of television and radio, producer and
is for the purpose of prostitution, director of a film in case of the movie industry, or
pornography, sexual exploitation, forced any person utilizing tri-media facilities or
labor, slavery, involuntary servitude or information technology to cause publicity of any
debt bondage; case of trafficking in persons.

(c) When the crime is committed by a Section 8. Prosecution of Cases. - Any person
syndicate, or in large scale. Trafficking is who has personal knowledge of the commission
deemed committed by a syndicate if of any offense under this Act, the trafficked
carried out by a group of three (3) or person, the parents, spouse, siblings, children or
more persons conspiring or legal guardian may file a complaint for
confederating with one another. It is trafficking.
deemed committed in large scale if
committed against three (3) or more Section 9. Venue. - A criminal action arising
persons, individually or as a group; from violation of this Act shall be filed where the
offense was committed, or where any of its
(d) When the offender is an ascendant, elements occurred, or where the trafficked
parent, sibling, guardian or a person person actually resides at the time of the
who exercises authority over the commission of the offense: Provided, That the
trafficked person or when the offense is court where the criminal action is first filed shall
committed by a public officer or acquire jurisdiction to the exclusion of other
employee; courts.

(e) When the trafficked person is Section 10. Penalties and Sanctions. - The
recruited to engage in prostitution with following penalties and sanctions are hereby
any member of the military or law established for the offenses enumerated in this
enforcement agencies; Act:

(f) When the offender is a member of the (a) Any person found guilty of
military or law enforcement agencies; committing any of the acts enumerated
and in Section 4 shall suffer the penalty of
imprisonment of twenty (20) years and a
fine of not less than One million pesos
(g) When by reason or on occasion of
(P1,000,000.00) but not more than Two
the act of trafficking in persons, the
million pesos (P2,000,000.00);
offended party dies, becomes insane,
suffers mutilation or is afflicted with
Human Immunodeficiency Virus (HIV) or (b) Any person found guilty of
the Acquired Immune Deficiency committing any of the acts enumerated
Syndrome (AIDS). in Section 5 shall suffer the penalty of
imprisonment of fifteen (15) years and a
fine of not less than Five hundred
Section 6. Confidentiality. - At any stage of the
thousand pesos (P500,000.00) but not
investigation, prosecution and trial of an offense
more than One million pesos
under this Act, law enforcement officers,
(P1,000,000.00);
prosecutors, judges, court personnel and
medical practitioners, as well as parties to the
case, shall recognize the right to privacy of the (c) Any person found guilty of qualified
trafficked person and the accused. Towards this trafficking under Section 6 shall suffer
end, law enforcement officers, prosecutors and the penalty of life imprisonment and a
judges to whom the complaint has been referred fine of not less than Two million pesos
may, whenever necessary to ensure a fair and (P2,000,000.00) but not more than Five
impartial proceeding, and after considering all million pesos (P5,000,000.00);
circumstances for the best interest of the parties,
order a closed-door investigation, prosecution or (d) Any person who violates Section 7
trial. The name and personal circumstances of hereof shall suffer the penalty of
Duman / Labor I / Prof. Battad / Page 33
imprisonment of six (6) years and a fine trafficked persons for prostitution shall be
of not less than Five hundred thousand penalized as follows:
pesos (P500,000.00) but not more than
One million pesos (P1,000,000.00); (a) First offense - six (6) months of
community service as may be
(e) If the offender is a corporation, determined by the court and a fine of
partnership, association, club, Fifty thousand pesos (P50,000.00); and
establishment or any juridical person,
the penalty shall be imposed upon the (b) Second and subsequent offenses -
owner, president, partner, manager, imprisonment of one (1) year and a fine
and/or any responsible officer who of One hundred thousand pesos
participated in the commission of the (P100,000.00).
crime or who shall have knowingly
permitted or failed to prevent its Section 12. Prescriptive Period. - Trafficking
commission; cases under this Act shall prescribe in ten (10)
years: Provided, however, That trafficking cases
(f) The registration with the Securities committed by a syndicate or in a large scale as
and Exchange Commission (SEC) and defined under Section 6 shall prescribe in twenty
license to operate of the erring agency, (20) years.
corporation, association, religious group,
tour or travel agent, club or The prescriptive period shall commence to run
establishment, or any place of from the day on which the trafficked person is
entertainment shall be cancelled and delivered or released from the conditions of
revoked permanently. The owner, bondage and shall be interrupted by the filing of
president, partner or manager thereof the complaint or information and shall
shall not be allowed to operate similar commence to run again when such proceedings
establishments in a different name; terminate without the accused being convicted
or acquitted or are unjustifiably stopped for any
(g) If the offender is a foreigner, he shall reason not imputable to the accused.
be immediately deported after serving
his sentence and be barred permanently Section 13. Exemption from Filing Fees. - When
from entering the country; the trafficked person institutes a separate civil
action for the recovery of civil damages, he/she
(h) Any employee or official of shall be exempt from the payment of filing fees.
government agencies who shall issue or
approve the issuance of travel exit Section 14. Confiscation and Forfeiture of the
clearances, passports, registration Proceeds and Instruments Derived from
certificates, counseling certificates, Trafficking in Persons. - In addition to the
marriage license, and other similar penalty imposed for the violation of this Act, the
documents to persons, whether juridical court shall order the confiscation and forfeiture,
or natural, recruitment agencies, in favor of the government, of all the proceeds
establishments or other individuals or and properties derived from the commission of
groups, who fail to observe the the crime, unless they are the property of a third
prescribed procedures and the person not liable for the unlawful act; Provided,
requirement as provided for by laws, however, That all awards for damages shall be
rules and regulations, shall be held taken from the personal and separate properties
administratively liable, without prejudice of the offender; Provided, further, That if such
to criminal liability under this Act. The properties are insufficient, the balance shall be
concerned government official or taken from the confiscated and forfeited
employee shall, upon conviction, be properties.
dismissed from the service and be
barred permanently to hold public office.
His/her retirement and other benefits When the proceeds, properties and instruments
shall likewise be forfeited; and of the offense have been destroyed, diminished
in value or otherwise rendered worthless by any
act or omission, directly or indirectly, of the
(i) Conviction by final judgment of the offender, or it has been concealed, removed,
adopter for any offense under this Act converted or transferred to prevent the same
shall result in the immediate rescission from being found or to avoid forfeiture or
of the decree of adoption. confiscation, the offender shall be ordered to
pay the amount equal to the value of the
Section 11. Use of Trafficked Persons. - Any proceeds, property or instruments of the offense.
person who buys or engages the services of

Duman / Labor I / Prof. Battad / Page 34
Section 15. Trust Fund. - All fines imposed It shall establish and implement a pre-
under this Act and the proceeds and properties marriage, on-site and pre-departure
forfeited and confiscated pursuant to Section 14 counseling program on intermarriages.
hereof shall accrue to a Trust Fund to be
administered and managed by the Council to be (b) Department of Social Welfare and
used exclusively for programs that will prevent Development (DSWD) - shall implement
acts of trafficking and protect, rehabilitate, rehabilitative and protective programs
reintegrate trafficked persons into the for trafficked persons. It shall provide
mainstream of society. Such programs shall counseling and temporary shelter to
include, but not limited to, the following: trafficked persons and develop a system
for accreditation among NGOs for
(a) Provision for mandatory services set purposes of establishing centers and
forth in Section 23 of this Act; programs for intervention in various
levels of the community.
(b) Sponsorship of a national research
program on trafficking and (c) Department of Labor and
establishment of a data collection Employment (DOLE) - shall ensure the
system for monitoring and evaluation strict implementation and compliance
purposes; with the rules and guidelines relative to
the employment of persons locally and
(c) Provision of necessary technical and overseas. It shall likewise monitor,
material support services to appropriate document and report cases of trafficking
government agencies and non- in persons involving employers and
government organizations (NGOs); labor recruiters.

(d) Sponsorship of conferences and (d) Department of Justice (DOJ) - shall
seminars to provide venue for ensure the prosecution of persons
consensus building amongst the public, accused of trafficking and designate and
the academe, government, NGOs and train special prosecutors who shall
international organizations; and handle and prosecute cases of
trafficking. It shall also establish a
mechanism for free legal assistance for
(e) Promotion of information and
trafficked persons, in coordination with
education campaign on trafficking.
the DSWD, Integrated Bar of the
Philippines (IBP) and other NGOs and
Section 16. Programs that Address Trafficking volunteer groups.
in Persons. - The government shall establish
and implement preventive, protective and
(e) National Commission on the Role of
rehabilitative programs for trafficked persons.
Filipino Women (NCRFW) - shall
For this purpose, the following agencies are
actively participate and coordinate in the
hereby mandated to implement the following
formulation and monitoring of policies
programs;
addressing the issue of trafficking in
persons in coordination with relevant
(a) Department of Foreign Affairs (DFA) government agencies. It shall likewise
- shall make available its resources and advocate for the inclusion of the issue of
facilities overseas for trafficked persons trafficking in persons in both its local and
regardless of their manner of entry to international advocacy for women's
the receiving country, and explore issues.
means to further enhance its assistance
in eliminating trafficking activities
(f) Bureau of Immigration (BI) - shall
through closer networking with
strictly administer and enforce
government agencies in the country and
immigration and alien administration
overseas, particularly in the formulation
laws. It shall adopt measures for the
of policies and implementation of
apprehension of suspected traffickers
relevant programs.
both at the place of arrival and
departure and shall ensure compliance
The DFA shall take necessary measures by the Filipino fiancés/fiancées and
for the efficient implementation of the spouses of foreign nationals with the
Machine Readable Passports to protect guidance and counseling requirement
the integrity of Philippine passports, as provided for in this Act.
visas and other travel documents to
reduce the incidence of trafficking
(g) Philippine National Police (PNP) -
through the use of fraudulent
shall be the primary law enforcement
identification documents.
Duman / Labor I / Prof. Battad / Page 35
agency to undertake surveillance, to the intended exploitation set forth in this Act
investigation and arrest of individuals or shall be irrelevant.
persons suspected to be engaged in
trafficking. It shall closely coordinate Section 18. Preferential Entitlement Under the
with various law enforcement agencies Witness Protection Program. - Any provision of
to secure concerted efforts for effective Republic Act No. 6981 to the contrary
investigation and apprehension of notwithstanding, any trafficked person shall be
suspected traffickers. It shall also entitled to the witness protection program
establish a system to receive complaints provided therein.
and calls to assist trafficked persons and
conduct rescue operations. Section 19. Trafficked Persons Who are
Foreign Nationals. - Subject to the guidelines
(h) Philippine Overseas Employment issued by the Council, trafficked persons in the
Administration (POEA) - shall implement Philippines who are nationals of a foreign
an effective pre-employment orientation country shall also be entitled to appropriate
seminars and pre-departure counseling protection, assistance and services available to
programs to applicants for overseas trafficked persons under this Act: Provided, That
employment. It shall likewise formulate a they shall be permitted continued presence in
system of providing free legal the Philippines for a length of time prescribed by
assistance to trafficked persons. the Council as necessary to effect the
prosecution of offenders.
(i) Department of the Interior and Local
Government (DILG) - shall institute a Section 20. Inter-Agency Council Against
systematic information and prevention Trafficking. - There is hereby established an
campaign and likewise maintain a Inter-Agency Council Against Trafficking, to be
databank for the effective monitoring, composed of the Secretary of the Department of
documentation and prosecution of cases Justice as Chairperson and the Secretary of the
on trafficking in persons. Department of Social Welfare and Development
as Co-Chairperson and shall have the following
(j) Local government units (LGUs) - shall as members:
monitor and document cases of
trafficking in persons in their areas of (a) Secretary, Department of Foreign
jurisdiction, effect the cancellation of Affairs;
licenses of establishments which violate
the provisions of this Act and ensure (b) Secretary, Department of Labor and
effective prosecution of such cases. Employment;
They shall also undertake an
information campaign against trafficking
in persons through the establishment of (c) Administrator, Philippine Overseas
the Migrants Advisory and Information Employment Administration;
Network (MAIN) desks in municipalities
or provinces in coordination with DILG, (d) Commissioner, Bureau of
Philippine Information Agency (PIA), Immigration;
Commission on Filipinos Overseas
(CFO), NGOs and other concerned (e) Director-General, Philippine National
agencies. They shall encourage and Police;
support community based initiatives
which address the trafficking in persons. (f) Chairperson, National Commission
on the Role of Filipino Women; and
In implementing this Act, the agencies
concerned may seek and enlist the (g) Three (3) representatives from
assistance of NGOs, people's NGOs, who shall be composed of one
organizations (Pos), civic organizations (1) representative each from among the
and other volunteer groups. sectors representing women, overseas
Filipino workers (OFWs) and children,
Section 17. Legal Protection to Trafficked with a proven record of involvement in
Persons. - Trafficked persons shall be the prevention and suppression of
recognized as victims of the act or acts of trafficking in persons. These
trafficking and as such shall not be penalized for representatives shall be nominated by
crimes directly related to the acts of trafficking the government agency representatives
enumerated in this Act or in obedience to the of the Council, for appointment by the
order made by the trafficker in relation thereto. President for a term of three (3) years.
In this regard, the consent of a trafficked person
Duman / Labor I / Prof. Battad / Page 36
The members of the Council may (j) Complement the shared government
designate their permanent information system for migration
representatives who shall have a rank established under Republic Act No.
not lower than an assistant secretary or 8042, otherwise known as the "Migrant
its equivalent to meetings, and shall Workers and Overseas Filipinos Act of
receive emoluments as may be 1995" with data on cases of trafficking in
determined by the Council in persons, and ensure that the proper
accordance with existing budget and agencies conduct a continuing research
accounting, rules and regulations. and study on the patterns and scheme
of trafficking in persons which shall form
Section 21. Functions of the Council. - The the basis for policy formulation and
Council shall have the following powers and program direction;
functions:
(k) Develop the mechanism to ensure
(a) Formulate a comprehensive and the timely, coordinated, and effective
integrated program to prevent and response to cases of trafficking in
suppress the trafficking in persons; persons;

(b) Promulgate rules and regulations as (l) Recommend measures to enhance
may be necessary for the effective cooperative efforts and mutual
implementation of this Act; assistance among foreign countries
through bilateral and/or multilateral
arrangements to prevent and suppress
(c) Monitor and oversee the strict
implementation of this Act; international trafficking in persons;

(m) Coordinate with the Department of
(d) Coordinate the programs and
Transportation and Communications
projects of the various member
(DOTC), Department of Trade and
agencies to effectively address the
Industry (DTI), and other NGOs in
issues and problems attendant to
monitoring the promotion of
trafficking in persons;
advertisement of trafficking in the
internet;
(e) Coordinate the conduct of massive
information dissemination and campaign
(n) Adopt measures and policies to
on the existence of the law and the
protect the rights and needs of trafficked
various issues and problems attendant
persons who are foreign nationals in the
to trafficking through the LGUs,
Philippines;
concerned agencies, and NGOs;

(o) Initiate training programs in
(f) Direct other agencies to immediately
identifying and providing the necessary
respond to the problems brought to their
intervention or assistance to trafficked
attention and report to the Council on
persons; and
action taken;

(p) Exercise all the powers and perform
(g) Assist in filing of cases against
such other functions necessary to attain
individuals, agencies, institutions or
the purposes and objectives of this Act.
establishments that violate the
provisions of this Act;
Section 22. Secretariat to the Council. - The
Department of Justice shall establish the
(h) Formulate a program for the
necessary Secretariat for the Council.
reintegration of trafficked persons in
cooperation with DOLE, DSWD,
Technical Education and Skills Section 23. Mandatory Services to Trafficked
Development Authority (TESDA), Persons. - To ensure recovery, rehabilitation and
Commission on Higher Education reintegration into the mainstream of society,
(CHED), LGUs and NGOs; concerned government agencies shall make
available the following services to trafficked
persons:
(i) Secure from any department, bureau,
office, agency, or instrumentality of the
government or from NGOs and other (a) Emergency shelter or appropriate
civic organizations such assistance as housing;
may be needed to effectively implement
this Act; (b) Counseling;
Duman / Labor I / Prof. Battad / Page 37
(c) Free legal services which shall Section 26. Extradition. - The DOJ, in
include information about the victims' consultation with DFA, shall endeavor to include
rights and the procedure for filing offenses of trafficking in persons among
complaints, claiming compensation and extraditable offenses.
such other legal remedies available to
them, in a language understood by the Section 27. Reporting Requirements. - The
trafficked person; Council shall submit to the President of the
Philippines and to Congress an annual report of
(d) Medical or psychological services; the policies, programs and activities relative to
the implementation of this Act.
(e) Livelihood and skills training; and
Section 28. Funding. - The heads of the
(f) Educational assistance to a trafficked departments and agencies concerned shall
child. immediately include in their programs and issue
such rules and regulations to implement the
provisions of this Act, the funding of which shall
Sustained supervision and follow through
be included in the annual General
mechanism that will track the progress of
Appropriations Act.
recovery, rehabilitation and reintegration of the
trafficked persons shall be adopted and carried
out. Section 29. Implementing Rules and
Regulations. - The Council shall promulgate the
necessary implementing rules and regulations
Section 24. Other Services for Trafficked
within sixty (60) days from the effectivity of this
Persons. -
Act.
(a) Legal Assistance. - Trafficked
Section 30. Non-restriction of Freedom of
persons shall be considered under the
Speech and of Association, Religion and the
category "Overseas Filipino in Distress"
Right to Travel. - Nothing in this Act shall be
and may avail of the legal assistance
interpreted as a restriction of the freedom of
created by Republic Act No. 8042,
speech and of association, religion and the right
subject to the guidelines as provided by
to travel for purposes not contrary to law as
law.
guaranteed by the Constitution.
(b) Overseas Filipino Resource Centers.
Section 31. Separability Clause. - If, for any
- The services available to overseas
reason, any section or provision of this Act is
Filipinos as provided for by Republic Act
held unconstitutional or invalid, the other
No. 8042 shall also be extended to
sections or provisions hereof shall not be
trafficked persons regardless of their
affected thereby.
immigration status in the host country.

Section 32. Repealing clause. - All laws,
(c) The Country Team Approach. - The
presidential decrees, executive orders and rules
country team approach under Executive
and regulations, or parts thereof, inconsistent
Order No. 74 of 1993, shall be the
with the provisions of this Act are hereby
operational scheme under which
repealed or modified accordingly: Provided, That
Philippine embassies abroad shall
this Act shall not in any way amend or repeal the
provide protection to trafficked persons
provision of Republic Act No. 7610, otherwise
insofar as the promotion of their welfare,
known as the "Special Protection of Children
dignity and fundamental rights are
Against Child Abuse, Exploitation and
concerned.
Discrimination Act".
Section 25. Repatriation of Trafficked Persons. -
Section 33. Effectivity. - This Act shall take
The DFA, in coordination with DOLE and other
effect fifteen (15) days from the date of its
appropriate agencies, shall have the primary
complete publication in at least two (2)
responsibility for the repatriation of trafficked
newspapers of general circulation.
persons, regardless of whether they are
documented or undocumented.
RULES AND REGULATIONS
If, however, the repatriation of the trafficked IMPLEMENTING REPUBLIC ACT NO.
persons shall expose the victims to greater risks, 9208, OTHERWISE KNOWN AS THE
the DFA shall make representation with the host “ANTI-TRAFFICKING IN PERSONS ACT
government for the extension of appropriate OF 2003”
residency permits and protection, as may be Pursuant to the authority of the Inter-Agency
legally permissible in the host country. Council Against Trafficking (IACAT) under
Duman / Labor I / Prof. Battad / Page 38
Section 29 of Republic Act No. 9208 otherwise the Elimination of the Worst Forms
known as the “Anti-Trafficking in Persons Act of of Child Labor); and
2003”, the following (viii) All other relevant and universally
rules and regulations are hereby promulgated to accepted human rights instruments
implement the provisions of said Act: and other international conventions
to which the Philippines is a State
Article I Party. In all actions concerning
GENERAL PROVISIONS children, their best interests shall be
Sec. 1. Title. These rules and regulations shall the paramount consideration.
be known and cited as “The Rules and
Regulations Implementing the Anti-Trafficking in Sec. 4. Construction. These rules and
Persons Act of 2003”. regulations shall be liberally construed in favor
of the trafficked persons to promote their human
Sec. 2. Purpose. These rules and regulations dignity; ensure their recovery, rehabilitation and
are hereby promulgated to institute policies, reintegration into the mainstream of society;
establish the institutional mechanism for the eliminate trafficking in persons; and achieve the
support and protection of trafficked persons and objectives of the Act.
prescribe the procedures and guidelines for the
implementation of Republic Act No. 9208 in
order to facilitate compliance therewith and Article II
achieve the objectives thereof. DEFINITION OF TERMS
Sec. 5. Definition of Terms. As used in these
Sec. 3. Declaration of State Policy. The State rules and regulations, unless the context
values the dignity of every human person and otherwise requires, the following terms shall be
guarantees the respect for individual rights. understood to mean:
Towards this end, the State shall give the
highest priority to the enactment of measures (a) Act — refers to Republic Act No. 9208,
and development of programs that will promote otherwise
human dignity, protect the people from any known as the “Anti-Trafficking in Persons Act of
threat of violence and exploitation, eliminate 2003”;
trafficking in persons, and mitigate pressures for
involuntary migration and servitude of persons, (b) Council — refers to the Inter-Agency Council
not only to support trafficked persons but more Against Trafficking (IACAT) created under
importantly, to ensure Section 20 of the Act;
their recovery, rehabilitation and reintegration
into the mainstream of society. (c) Trafficking in Persons — refers to the
recruitment, transportation, transfer or harboring,
The State also recognizes the equal rights and or receipt of persons, with or without the victim’s
inherent human dignity of women and men, as consent or knowledge, within or across national
well as the rights of children, as enshrined and borders by means of threat or use of force, or
guaranteed in the following international other forms of coercion, abduction, fraud,
instruments: deception, abuse of power or of position, taking
(i) Universal Declaration on Human advantage of the vulnerability of the person, or,
Rights; the giving or receiving of payments or benefits to
(ii) Convention for the Suppression of achieve the consent of a person having control
the Traffic in Persons and over another person for the purpose of
Exploitation of the Prostitution of exploitation which includes at a minimum, the
Others; exploitation or the prostitution of others or other
(iii) Convention on the Elimination of All forms of sexual exploitation, forced labor or
Forms of Discrimination Against services, slavery, servitude or the removal or
Women; sale of organs.
(iv) Convention on the Rights of the
Child and itsOptional Protocols; The recruitment, transportation, transfer,
(v) Convention on the Protection of harboring or receipt of a child for the purpose of
Migrant Workers and Members of exploitation
their Families; shall also be considered as “trafficking in
(vi) Convention Against Transnational persons” even if it does not involve any of the
OrganizedCrimes including its means set forth in the preceding paragraph.
Protocol to Prevent,Suppress and
Punish Trafficking in Persons, (d) Child — refers to a person below eighteen
Especially Women and Children; (18) years of age or one who is over eighteen
(vii) ILO Convention No. 182 (18) but is unable to fully take care of or protect
(Convention Concerning the himself/herself from abuse, neglect, cruelty,
Prohibition and Immediate Action for

Duman / Labor I / Prof. Battad / Page 39
exploitation, or discrimination because of a
physical or mental disability or condition; Sec. 6. Creation. The Inter-Agency Council
Against Trafficking (IACAT) shall be established
(e) Prostitution — refers to any act, transaction, which shall be primarily tasked to coordinate,
scheme or design involving the use of a person monitor and oversee the implementation of the
by another, for sexual intercourse or lascivious Act.
conduct in exchange for money, profit or any
other consideration; Sec. 7. Composition. The Council shall be
composed of the following:
(f) Forced Labor and Slavery — refer to the
extraction of work or services from any person (a) Secretary, Department of Justice (DOJ) as
by means of enticement, violence, intimidation Chairperson;
or threat, use of force or coercion, including (b) Secretary, Department of Social Welfare and
deprivation of freedom, abuse of authority or Development (DSWD) as Co-Chairperson;
moral ascendancy, debt-bondage or deception; (c) Secretary, Department of Foreign Affairs
(DFA) as Member;
(g) Sex Tourism — refers to a program (d) Secretary, Department of Labor and
organized by travel and tourism-related Employment
establishments and individuals which consists (DOLE) as Member;
of tourism packages or activities, utilizing and (e) Administrator, Philippine Overseas
offering escort and sexual services as Employment
enticement for tourists. This includes sexual Administration (POEA) as Member;
services and practices offered during rest and (f) Commissioner, Bureau of Immigration (BI) as
recreation periods for members of the military; Member;
(g) Director-General, Philippine National Police
(h) Sexual Exploitation — refers to participation (PNP) as Member;
by a person in prostitution or the production of (h) Chairperson, National Commission on the
pornographic Role of Filipino Women (NCRFW) as Member;
materials as a result of being subjected to a (i) One (1) representative from an NGO
threat, deception, coercion, abduction, force, representingthe women sector as Member;
abuse of authority, debt bondage, fraud or (j) One (1) representative from an NGO
through abuse of a victim’s vulnerability; representing he Overseas Filipino Workers
(OFWs) sector as Member; and
(i) Debt Bondage — refers to the pledging by the (k) One (1) representative from an NGO
debtor of his/her personal services or labor or representing he children sector as Member.
those of a person under his/her control as
security or payment for a debt, when the length The members of the Council may designate their
and nature of services is not clearly defined or permanent representatives who shall have a
when the value of the services as reasonably rank not lower than an Assistant Secretary or its
assessed is not applied toward the liquidation of equivalent to attend the meetings of the Council.
the debt;
Sec. 8. Qualifications, Selection and
(j) Pornography — refers to any representation, Appointment of NGO and its
through publication, exhibition, cinematography, Representatives. The NGOs, with national and
indecent international networks, and its representatives to
shows, information technology, or by whatever the Council must have a proven track record of
means, of a person engaged in real or simulated involvement in the prevention and suppression
explicit sexual activities or any representation of of trafficking in persons. They shall be
the sexual parts of a person primarily for sexual nominated by any
purposes; and of the government agency representatives of the
Council and shall be selected by majority vote
(k) Involuntary Servitude — refers to a condition thereof and endorsed to the President. They
of enforced, compulsory service induced by shall be appointed by the President for a term of
means of any scheme, plan or pattern, intended three (3) years.
to cause a person to believe that, if the person
did not enter into or continue in such condition, Sec. 9. Functions of the Council. The Council
that person or another person would suffer shall have the following powers and functions:
serious harm or other forms of abuse or physical
restraint, or the abuse or threatened abuse of (a) Formulate a comprehensive and integrated
the legal process. program to prevent and suppress the trafficking
in persons;
Article III (b) Promulgate rules and regulations as may be
THE INTER-AGENCY COUNCIL necessary for the effective implementation of the
AGAINST TRAFFICKING (IACAT) Act;

Duman / Labor I / Prof. Battad / Page 40
(c) Monitor and oversee the strict Sec. 10. Reportorial Function. Within sixty (60)
implementation of the Act; days after the closing of each calendar year, the
(d) Coordinate the programs and projects of the Council shall submit to the Office of the
various member agencies to effectively address President a comprehensive report on the actions
the issues and problems attendant to trafficking and programs
in persons; taken by the Council relative to and concerning
(e) Coordinate the conduct of massive the implementation of the Act.
information dissemination and campaign on the
existence of the law and the various issues and Sec. 11. Meetings of the Council. The Council
problems attendant to trafficking through the shall meet regularly at least once a month.
local government units (LGUs), concerned Special meetings may be called by the Chair as
agencies, and NGOs; the need arises. Majority of the members of the
(f) Direct other agencies to immediately respond Council
to the problems brought to their attention and shall constitute a quorum to transact business.
report to the Council on action taken;
(g) Assist in filing of cases against individuals, Sec. 12. Honoraria or Emoluments. The
agencies, institutions or establishments that Members of the Council or their designated
violate the permanent representatives shall receive
provisions of the Act; honoraria or emoluments as may be determined
(h) Formulate a program for the reintegration of by the Council in
trafficked persons in cooperation with DOLE, accordance with existing budget and accounting
DSWD, Technical Education and Skills rules and regulations.
Development Authority (TESDA), Commission
on Higher Education (CHED), LGUs and NGOs; Sec. 13. Implementation of the Law at Sub-
(i) Secure from any department, bureau, office, National and Local Levels. The Council shall,
agency, or instrumentality of the government or as far as practicable, develop mechanisms to
from NGOs ensure the implementation of the law and these
and other civic organizations such assistance as rules and regulations at the sub-national and
may be needed to effectively implement the Act; local levels
(j) Complement the shared government
information system for migration established Article IV
under Republic Act No. 8042, otherwise known SECRETARIAT
as the “Migrant Workers and Overseas Filipinos
Act of 1995” with data on cases of trafficking in SEC. 14. Organization. The Department of
persons, and ensure that the proper agencies Justice shall establish a Secretariat to assist the
conduct a continuing research and study on the Council in the performance of its functions. The
patterns and scheme of trafficking in persons Secretary of Justice shall determine the
which shall form the basis for policy formulation organizational structure and staffing pattern of
and program direction; the Secretariat.
(k) Develop the mechanism to ensure the timely
coordinated and effective response to cases of Sec. 15. Functions. The Secretariat shall have
trafficking in the following functions:
persons; (a) Coordinate and monitor, under the direction
(l) Recommend measures to enhance of the Council, the implementation of the policies
cooperative efforts and mutual assistance and guidelines promulgated by the Council;
among foreign countries through bilateral and/or (b) Establish, maintain and manage a central
multilateral arrangements to prevent and database on trafficking in persons;
suppress international trafficking in persons; (c) Provide secretariat, records keeping and
(m) Coordinate with the Department of other services to the Council; and
Transportation and Communications (DOTC), (d) Perform such other functions as may be
Department of Trade and Industry (DTI), and directed by the Council.
other NGOs in monitoring the promotion of
advertisement of trafficking in the Internet; Article V
(n) Adopt measures and policies to protect the ROLES AND RESPONSIBILITIES
rights and needs of trafficked persons who are
foreign nationals in the Philippines; Sec. 16. Common Roles and Responsibilities
(o) Initiate training programs in identifying and of Council Member Agencies. All member
roviding the necessary intervention or government agencies of the Council shall have
assistance to trafficked the following common roles and responsibilities:
persons; and (a) Develop policies and programs supportive of
(p) Exercise all the powers and perform such and consistent with the objectives of the Act;
other functions necessary to attain the purposes (b) Enhance the capability of its officers and
and objectives of the Act. personnel involved in trafficking issues and

Duman / Labor I / Prof. Battad / Page 41
concerns through appropriate training and staff trafficking and their families;
support programs; (ii) Make available skills training and livelihood
(c) Undertake information, education and services to victims/survivors of trafficking;
advocacy campaigns against trafficking in (iii) Develop program and other support
persons; interventions to facilitate the recovery and
(d) Maintain a databank on trafficking in persons reintegration of
to be shared among relevant agencies and trafficked victims into their families and
complement the central databank to be communities;
established by the Council; and (iv) Provide social welfare services to Filipino
(e) Document good practices as bases for policy victims of trafficking in other countries through
formulation and program development. the DSWD
Social Welfare Attaché and social workers
Sec. 17. Specific Roles and Responsibilities posted in foreign countries, which may include
of National Government Agencies which are but not limited to stress management,
Members of the Council. The following national repatriation and other appropriate psychosocial
government agencies, which are member interventions for their protection and welfare;
agencies of the Council, shall have, but not (v) Conduct technical assistance and capability
limited to, the following roles and responsibilities building activities for social welfare
in the prevention and suppression of trafficking officers/social workers
in persons: of LGUs and NGOs;
(vi) Accredit NGOs that provide programs and
(a) Department of Justice (DOJ) services to ensure that they meet the standards
set by the
(i) Ensure the prosecution of persons for Department; and
violations of the Act; (vii) Provide temporary shelter and psycho-
(ii) Designate and train special prosecutors who social services to foreign nationals who are
shall investigate and prosecute cases of victims of trafficking
trafficking; in persons as confirmed by the Bureau of
(iii) Establish a mechanism for free legal Immigration.
assistance for trafficked persons, in coordination
with the DSWD, Commission on Human Rights (c) Department of Foreign Affairs (DFA)
(CHR), Integrated Bar of the Philippines (IBP)
and other NGOs and volunteer groups; (i) Make available its resources and facilities
(iv) Provide, witness protection to trafficked overseas and to provide services for trafficked
victims and their witnesses; persons
(v) Conduct training and continuing education regardless of the manner of their entry to the
program on investigation and prosecution for receiving country;
trafficking in (ii) Explore means to further enhance its
persons and other related offenses for assistance in eliminating trafficking activities
prosecutors and law enforcement officers; through closer
(vi) Receive, evaluate, process and investigate networking with government agencies in the
claims for compensation by trafficked victims, country and overseas, particularly in the
when applicable, pursuant to Republic Act No. formulation of policies and implementation of
7309 (Victims Compensation relevant programs;
Act); (iii) Actively participate in bilateral, regional and
(vii) Review and recommend policies and international initiatives and cooperative
measures to enhance protection against arrangements
trafficking in persons; aimed at suppressing trafficking in persons and
(viii) Recommend the negotiation of mutual legal protecting and assisting victims of trafficking to
assistance and extradition treaties with other include monitoring of inter-country adoption
countries in cases.
coordination with the DFA; and (iv) Take necessary measures for the efficient
(ix) Coordinate with and/or provide assistance to implementation of the Machine Readable
the Anti-Money Laundering Council (AMLC) on Passports and
cases of Visas to protect the integrity of Philippine
trafficking in persons with possible money passports, visas, and other travel documents to
laundering underpinnings. reduce the incidence of trafficking in persons
through the use of fraudulent identification
(b) Department of Social Welfare and documents;
Development (DSWD) (v) Establish and implement pre-marriage, on-
site and pre-departure counseling program on
(i) Provide psycho-social counseling, temporary inter-marriages.
shelter and other support services to
victims/survivors of

Duman / Labor I / Prof. Battad / Page 42
For this purpose, the DFA shall promulgate the (iii) Adopt policies and procedures, prepare and
necessary guidelines to implement the said implement programs geared towards the
program; and eradication of
(vi) Integrate into the pre-departure orientation trafficking in persons as well as acts that
seminars for foreign service personnel a training promote trafficking in persons such as, but not
module on limited to, the following:
trafficking in persons. (a) Comprehensive and Integrated Education
Program on overseas employment which shall
(d) Department of Labor and Employment be undertaken in partnership with other relevant
(DOLE) organizations and government entities. Such
education program shall cover all stages of
(i) Ensure the strict implementation of and recruitment and employment and shall provide
compliance with rules and guidelines relative to information useful for overseas workers
the including a module on anti-trafficking program
employment of persons locally and overseas; and measures;
and
(ii) Monitor, document and report cases of (b) Nationwide multi-media and sustainable
trafficking in persons involving employers and grassroots information campaign to create
labor publicawareness on the realities of overseas
recruiters; employment and dangers of becoming victims of
(iii) Make available existing resources such as illegal trafficking activities;
employment and livelihood programs as part of
the (c) Conduct special operations, complementary
government’s measure to suppress trafficking in to the power of the PNP, on persons and entities
persons; and engaged
(iv) Conduct public awareness programs and in recruitment for overseas employment reported
activities to prevent victimization. to be violating the provisions of the Act for the
purpose of
(e) Philippine Overseas Employment effecting closure of said establishments
Administration (POEA) pursuant to the provisions of R.A. No. 8042; and

(i) Implement an effective pre-employment (d) Database of cases involving, and
orientation seminar and pre-departure personalities involved in, trafficking persons
counseling program separate and distinct from its illegal Recruitment
to applicants for overseas employment; cases for monitoring purposes;

(ii) Formulate a system providing free legal (iv) In cases of repatriation involving workers
assistance to trafficked persons which shall recruited and deployed by licensed agencies,
include the the POEA shall
following: notify the agency concerned to provide a plane
ticket or Prepaid Travel Advice (PTA) and shall
(a) Provision of legal assistance to victims of impose sanctions on said agencies for failure to
trafficking in persons by means of, or in the cooperate in providing welfare assistance to
guise of, OFWs they have deployed; and
recruitment for overseas employment, as (v) Continue to regulate private sector
defined in Section 6 of R.A. No. 8042, such as participation in the recruitment and overseas
free legal advice, assistance in the preparation placement of
and filing of administrative and criminal actions workers through its licensing and registration
for trafficking as defined in the Act, without system pursuant to its rules and regulation on
prejudice to the filing of administrative and/or overseas
criminal actions for illegal recruitment, as employment. It shall formulate and implement, in
defined in R.A.No. 8042, when proper; coordination with appropriate entities concerned,
when
(b) Assistance in the prosecution of persons who necessary, a system of promoting and
engage in, promote and facilitate trafficking in monitoring the overseas employment of Filipino
persons workers, taking into
by means of, or in the guise of, recruitment for consideration their welfare and protection from
overseas employment, as defined in Section 6 of the dangers and risks inherent in overseas
R.A. 8042; employment, including illegal trafficking.
In this connection, the POEA shall likewise
adopt a policy of confidentiality in all cases (f) Bureau of Immigration (BI)
referred to it involving
possible violations of the Act. (i) Strictly administer and enforce immigration
and alien registration laws;

Duman / Labor I / Prof. Battad / Page 43
(ii) Adopt measures for the apprehension of (a) Pursue the detection and investigation of
suspected traffickers both at the place of arrival suspected or alleged trafficking activities at
and airports
departure; through its Aviation Security Group, at seaports
(iii) Ensure compliance by the Filipino fiancés/ and/or harbors through its Maritime Group, and
fiancées and spouses of foreign nationals with at land
the predeparture and counseling program transportation terminals through its police station
requirement of the Act; and when proper, file the appropriate charges
(iv) Strictly implement the requirement for a against traffickers in the proper court;
parental travel authority duly processed by the
DSWD for (b) Coordinate with the Philippine Ports Authority
minors traveling abroad unaccompanied by one (PPA) which may have initially processed
parent, and the travel clearance for minors complaints at their “Balay Silungan sa
traveling abroad Daungan”; and
unaccompanied by both parents;
(v) Ensure compliance by Overseas Filipino (c) Coordinate with local and barangay officials
Workers of the departure requirements of the with respect to the apprehension and/or arrest of
POEA; traffickers.
(vi) Conduct periodic training and seminar on
fraudulent document detection and passenger (iii) Establish a system to receive complaints and
assessment calls to assist trafficked persons, and the
to enhance the level of skill and competence of conduct of rescue operations;
all its immigration officers and agents in (iv) Direct and supervise the enforcement of its
document fraud detection; andate under the Act and its rules and
(vii) Conduct periodic study of the trends, routes regulations;
and modus operandi employed by the traffickers (v) Supervise the conduct of investigations
including relating to apprehension occurring at land
its recruitment base, transit countries and transportation
country of destination; terminals, domestic seaports and airports and
(viii) Establish a network with other law monitor the filing of appropriate cases against
enforcement agencies and immigration traffickers;
counterparts of (vi) Formulate plans and programs for the
source, transit and destination countries to prevention and/or reduction of trafficking in
facilitate exchange and sharing of information on persons;
the activities of (vii) Integrate in the program of instruction
trafficking syndicates; comprehensive, gender sensitive and child-
(ix) Establish network with LGUs for the effective friendly
apprehension of suspected traffickers and their investigation and handling of cases of trafficking
cohorts; in persons in the Philippine National Police
(x) Develop a program for the procurement and Academy (PNPA), Philippine Public Safety
installation of International Civil Aviation College (PPSC) and other training schools
Organization operated and managed by the PNP; and
(ICAO) — compliant machine readers and fraud (viii) Establish anti-trafficking section under the
detection equipment at all international airports Women and Children Complaint Desk (WCCD)
and seaports in the country to deter trafficking in in all city
persons; and and municipal police stations.
(xi) Develop and distribute materials containing
advisory and other pertinent information to (h) National Commission on the Role of Filipino
enhance Women (NCRFW)
awareness against trafficking in persons.
(i) Actively advocate and participate in
(g) Philippine National Police (PNP) international and regional discussion and
initiatives in
(i) Undertake surveillance, investigation and trafficking in women and include the same in all
arrest of individuals or persons suspected to be of its international commitments and policy
engaged in pronouncements. Where possible and
trafficking; appropriate, work with the Department of
(ii) Coordinate closely with various law Foreign Affairs in forging bilateral and
enforcement agencies to secure concerted multilateral collaborative projects on trafficking;
efforts for effective (ii) Assist the Council in the formulation and
investigation and apprehension of suspected monitoring of policies addressing the issue of
traffickers. For this purpose, it shall also: trafficking in
persons in coordination with relevant
government agencies;

Duman / Labor I / Prof. Battad / Page 44
(iii) Assist the Council in the conduct of
information dissemination and training to (c) Department of Education (DepEd)
frontline government
agencies, NGOs and the general public; (i) Integrate in the appropriate subject areas
(iv) Assist in the development of gender core messages on migration and trafficking in
responsive documentation system in the elementary
coordination with other agencies and the and secondary levels by providing lesson with
National Statistical Coordination Board (NSCB) emphasis on their implications and social costs
through its monitoring of the situation of women to persons and country;
particularly on violence against women; (ii) Provide opportunities for trafficked persons in
(v) Assist the Council in the formulation of the educational mainstream through the basic
prevention and reintegration programs for education
victims of and non-formal education curricula; and
trafficking including the demand side; and (vi) (iii) Provide education and raise consciousness
Conduct studies on the root causes, magnitude of boys/men in schools and communities in
and forms of trafficking in women and document order to discourage the “demand side” or the
best practices in prevention programs. use/buying of trafficked women
and children.
Sec. 18. Roles and Responsibilities of Other
Relevant National Government Agencies. — (d) Department of Health (DOH)
Consistent with their mandates under existing
laws, the following agencies shall integrate (i) Make available its resources and facilities in
human trafficking issues in their strategy and providing health care to victims of trafficking
program formulation and implement programs which shall,
and services for the prevention and suppression at all times, be held confidential.
of trafficking and for the protection of trafficked
victims. (e) Department of Transportation and
They shall likewise have the following roles and Communication (DOTC)
responsibilities:
(i) Provide guidelines for the land, sea and air
(a) Department of the Interior and Local transport providers to train their personnel in
Government (DILG) trafficking
in persons;
(i) Conduct a systematic information (ii) Standardize guidelines for monitoring
dissemination/advocacy and prevention trafficking in persons in every port; and
campaign against trafficking in persons; (iii) Monitor the promotion of advertisement of
(ii) Maintain a databank for the effective trafficking in the Internet.
monitoring, documentation and prosecution of
cases on (f) Commission on Human Rights (CHR)
trafficking in persons;
(iii) Issue directives to the LGUs and barangays (i) Conduct advocacy and training programs
to institutionalize recruiter-monitoring relating to anti-trafficking;
mechanisms and (ii) Investigate and recommend for prosecution
increase public awareness regarding trafficking violations of the Act;
in persons; (iii) Provide legal and financial assistance to
(iv) Promote family and community victims of trafficking; and
empowerment to prevent trafficking in persons; (iv) Integrate anti-trafficking efforts in the
and Barangay Human Rights Action Center
(v) Strengthen, activate and mobilize existing (BHRAC); and
committees, councils, similar organizations and (v) Monitor government compliance to
special international human rights treaty obligations
bodies at the local level to prevent and suppress related to the
trafficking in persons. suppression/elimination of trafficking, particularly
the Convention for the Suppression of Traffic in
(b) Department of Tourism (DOT) Persons and Exploitation of the Prostitution of
Others, the Convention on the Elimination of All
(i) Formulate and implement preventive Forms of Discrimination Against Women, the
measures to stop sex tourism packages and Convention on the Rights of the Child, the
other activities of tourism establishments which Convention on the Protection of Migrant
might contribute to the trafficking in persons in Workers and Members of Their Families, and
coordination with local governmentunits; and the UN Convention Against Transnational
(ii) Provide training to tourist security officers on Organized Crimes including its Protocol to
surveillance, investigation and rescue operation Prevent, Suppress and Punish Trafficking in
strategies. Persons, Especially Women and Children.

Duman / Labor I / Prof. Battad / Page 45
(g) National Bureau of Investigation (NBI) (i) Integrate in its development and strategic
frameworks issues and concerns affecting
(i) Conduct surveillance, monitor and investigate trafficking in
recruiters, travel agencies, hotels and other children and ensure the adoption of such
establishments frameworks by the LGUs and other
suspected to be engaged in trafficking in stakeholders;
persons; (ii) Vigorously advocate against trafficking of
(ii) Coordinate closely with all the Council children;
member agencies for effective detection and (iii) Improve data on trafficking in children
investigation of suspected traffickers; through integration of critical and relevant
(iii) Formulate plans and programs for the indicators into the
detection and prevention of trafficking, and the monitoring system for children;
arrest and (iv) Adopt policies and measures that will protect
prosecution of suspected traffickers; and promote the rights and welfare of children
(iv) Share intelligence information on suspected victims of
traffickers to all Council member agencies when trafficking and coordinate and monitor their
necessary; implementation; and
and (v) Address issues on trafficking of children
(v) Foster cooperation and coordination with the through policy and program interventions.
law enforcement agencies of other countries and
the (k) Philippine Information Agency (PIA)
INTERPOL in the investigation and
apprehension of suspected traffickers. (i) Enhance public awareness on trafficking in
persons, pertinent laws and possible actions to
(h) Philippine Center on Transnational Crime prevent
(PCTC) victimization and re-victimization by developing
public advocacy program as well as printing and
(i) Continue to function in accordance with its distributing
mandate pursuant to Executive Order No. 62, s. appropriate information materials.
1999, on
matters concerning trafficking in persons with (l) Technical Education and Skills Development
transnational dimension; Authority (TESDA)

(ii) Undertake strategic researches on the (i) Provide skills and entrepreneurial training to
structure and dynamics of trafficking in persons trafficked victims; and
with transnational crime dimension, predict (ii) Formulate a special program to ensure the
trends and analyze given factors for the provision of appropriate skills training for
formulation of individual and collective trafficked victims.
strategies for the prevention and detection of
trafficking in persons and the apprehension of Sec. 19. Roles and Responsibilities of Local
criminal elements involved; Government Units (LGUs). The LGUs shall
(iii) Conduct case operations in coordination with have the following roles and responsibilities:
other law enforcement agencies; and
(iv) Serve as the focal point in international law (a) Monitor and document cases of trafficked
enforcement coordination on trafficking in persons in their areas of jurisdiction;
persons (b) Effect the cancellation of licenses of
particularly with the INTERPOL. establishments which violate the provisions of
the Act and
(i) Overseas Workers Welfare Administration ensure its effective prosecution;
(OWWA) (c) Undertake an information campaign against
trafficking in persons through the establishment
(i) Assist in the information and advocacy of the Migrants Advisory and Information
campaign among OFWs to prevent trafficking in Network (MAIN) desks in municipalities and
persons; provinces in coordination with the DILG, PIA,
(ii) Assist in the documentation of cases of Commission on Filipino Overseas (CFO), NGOs
trafficking and ensure the provision of its and other concerned agencies;
programs and (d) Encourage and support community based
services to OFWs and their families; and (iii) initiatives which address trafficking in persons;
Include a module on anti-trafficking to its (e) Provide basic social services for the
predeparture prevention, rescue, recovery, rehabilitation and
seminar. reintegration/after care support services to
victims of trafficking in persons and their
(j) Council for the Welfare of Children (CWC) families;

Duman / Labor I / Prof. Battad / Page 46
(f) Enact ordinances or issuances aimed at be, or has been trafficked shall immediately
providing protection and support to trafficked report the same, either orally, in writing or
persons and adopt measures to prevent and through other means, to any member of the
suppress trafficking in persons; and Council, the barangay authorities, the nearest
(g) Strengthen, activate and mobilize existing police or other law enforcement agency, the
committees, councils, similar organizations and local social welfare and development office or
special bodies the local Council for the Protection of Children.
at the provincial, city, municipal and barangay In the case of trafficking cases abroad, the
levels to prevent and suppress trafficking in report shall be made to the Philippine
persons. Embassy/Consulate which has jurisdiction over
the place where the trafficking occurred or
Sec. 20. Roles and Responsibilities of Non- where the trafficked person is
Government Organizations which are found.
Members of the Council. The NGO members
of the Council shall have the following roles and Sec. 23. Action on the Report. The agency,
responsibilities: entity or person
to whom the report is made shall immediately
(a) Assist government agencies in formulating act as soon as the report is received in
and implementing policies, programs and IEC coordination with other relevant government
campaign against trafficking; agency for appropriate intervention. For this
(b) Assist in capability-building activities of purpose, the Council shall develop a mechanism
government personnel and share their to ensure the timely, coordinated and effective
experiences and response to cases of trafficking in persons.
expertise in handling trafficking cases;
(c) Coordinate with concerned government Article VII
agencies, LGUs and other NGOs in reporting INTERCEPTION, ARREST AND
alleged perpetrators, rescuing victims of INVESTIGATION OF TRAFFICKERS
trafficking, and conducting investigation/
surveillance, if indicated; Sec. 24. Procedure in the Interception, Arrest
(d) Undertake programs and activities for the and Investigation of Traffickers in Persons at
prevention, rescue, recovery and reintegration of International Airport or Seaport. When an
the victims of offense punishable under the Act or any other
trafficking and other support services for their offense in relation thereto or in furtherance
families; thereof has been committed, or is actually being
(e) Document and/or assist in the documentation committed in the presence of an immigration
of cases of trafficking; officer assigned at the international airport or
(f) Disseminate guidelines to all its network seaport,
members, local and international, on policies he/she shall immediately cause the interception
and programs and/or arrest of the persons involved for
addressing issues on trafficking in persons; investigation. The DOJ Task Force Against
(g) Formulate educational module to address Trafficking shall cause the filing of appropriate
thedemand side of trafficking; and case in court when
(h) Perform such other tasks as may be agreed evidence warrants. If the person arrested is a
upon by the Council. foreigner, the concerned B.I.
investigating unit shall take full custody over the
Sec. 21. Assistance of Other Agencies and arrested person, conduct the investigation
Institutions. In implementing the Act and these proper motu proprio and endorse the complaint
rules and regulations, the agencies concerned and supporting documents to the prosecutor for
may seek and enlist the assistance of NGOs, inquest or MTC Judge for appropriate
people’s proceedings.
organizations (POs), civic organizations and
other volunteer groups, which will all likewise be Sec. 25. Procedure in the Interception, Arrest
encouraged to assume the same roles and and Investigation of Traffickers in Persons at
responsibilities enumerated in the preceding Local Airport, Seaport and Land
Section. Transportation Terminals. In cases where the
violation is committed at local seaport, airport or
Article VI in land transportation terminals, the members of
REPORTING OF SUSPECTED/ ALLEGED the law enforcement agency shall
TRAFFICKING INCIDENT immediately cause the interception and/or arrest
of the suspected traffickers. Thereafter, the
Sec. 22. Who May and To Whom to Report. investigation shall be conducted by the law
Any person who has any knowledge or learns of enforcement agency on the person/s
facts or circumstances that give rise to a intercepted/arrested, and
reasonable belief that a person will be, or may

Duman / Labor I / Prof. Battad / Page 47
referred to the Prosecutor’s Office of the place Sec. 29. Rescue at the Country of
where the offense was committed or to the DOJ Destination. —
Task Force Against Trafficking in Persons or
Task Force on Passport Irregularities or (a) Procedure. When the victim is a Filipino
Municipal Trial Court of national and at the time of rescue is residing
the place where the crime was committed in abroad, the embassy or consulate which has
case of municipalities and non-chartered cities jurisdiction over the place where the victim is
for purposes of inquest or preliminary residing shall verify the veracity of the report of
investigation as the case may be. incidence of trafficking and inquire about the
condition of the victim.
Sec. 26. Creation of a Joint Task Force Consistent with the country team approach, the
Against Trafficking in Persons. For the Post concerned shall send a team composed of
purpose of the above provisions, there shall be a consular officer and personnel from the
created a Joint Task Force Against Trafficking in Philippine Overseas Labor Office (POLO) or the
Persons to be assigned at airports composed of Filipino Workers Resource Center (FWRC), the
Prosecution, BI, PNP, and NBI personnel and Office of the Social Welfare Attaché as the case
another Task Force at land transportation may be, to conduct a visit to the jail,
terminals and local seaports and airports to be establishment, work site or residence of the
composed of Prosecution, PNP, BI, PPA, and victim. In the case of Posts without attached
PCG personnel. The DOJ National Task Force services, the team
Against Trafficking in Persons shall issue the will be composed of a consular officer and
necessary personnel from the Assistance-to-Nationals
operational guidelines for the effective section.
coordination, apprehension, investigation and The Post shall make representations with the
prosecution of violations of the Act. The DOJ police authorities or other relevant law
Task Force assigned at local seaports, airports enforcement agencies with respect to the
and land transportation conduct of rescue operations.
terminals shall cooperate or coordinate with the
local authorities, local social welfare and Rescue operation shall also be made in
development officers or active NGOs concerned cooperation and close coordination with some
with trafficking in persons in the locality. NGO’s, local contacts or private individuals
when necessary.
Sec. 27. Rights of the Person Arrested,
Investigated or Detained. In all cases, the In countries and areas where the services of the
rights of the person arrested, investigated or FWRC is not accessible, a mobile type of
detained as provided by the Philippine services shall be extended by the country team
Constitution and under Republic Act No. 7438 members to trafficked persons regardless of
(An Act Defining Certain Rights of Persons their status in the host country.
Arrested, Detained or Under Custodial Thereafter, the victim will be encouraged to
Investigation As Well As The Duties of the execute a sworn statement, recounting among
Arresting, Detaining and Investigating Officers, others, the people/establishment involved in the
and Providing Penalties For Violations Thereof) recruitment/transfer and deployment, the modus
shall, at all times, be respected. operandi employed to recruit, transport and
deploy the victim, and other pertinent
Article VIII information which could provide a lead in the
RESCUE/RECOVERY AND REPATRIATION investigation and eventual prosecution of the
OF VICTIMS perpetrators.

Sec. 28. The Country Team Approach. The (b) Assistance to Trafficked Persons. The
country team approach under Executive Order trafficked person shall be provided with
No. 74, series of 1993 and further enunciated in temporary shelter and other forms of assistance.
Republic Act No. 8042 shall be the operational
scheme under which Philippine embassies In countries where there is an Filipino Workers
abroad shall provide protection to trafficked Resource Center, the services available to
persons regardless of their immigration status. overseas Filipinos as provided for in Republic
Under the Country Team Approach, all officers, Act No. 8042 shall also be extended to trafficked
representatives and personnel of the Philippine persons regardless of their status in the host
government posted abroad regardless of their country.
mother agencies shall, on a per country basis,
act as one-country team with mission under the (c) Legal Assistance Fund. Trafficked persons
leadership of the Ambassador or the head of shall be considered under the category
mission. “Overseas Filipinos in
Distress” and may avail of the Legal Assistance
Fund created by Republic Act No. 8042, subject

Duman / Labor I / Prof. Battad / Page 48
to the guidelines as provided by law, including shall also be referred to the POEA for
rules and regulations issued by the DFA as appropriate action. The report shall also be
to its utilization and disbursement. forwarded to the BI for case build up. The victim
may be referred to the DSWD/Local Social
Sec. 30. Repatriation of Trafficked Persons. Welfare
The DFA, in coordination with DOLE and other And Development Office or to the NBI One-Stop
appropriate agencies, shall have the primary Shop for psychosocial interventions,
responsibility for the repatriation of trafficked psychological and medical examination and
persons, regardless of whether they are follow-through therapy sessions. Protective
documented or undocumented. custody and emergency shelter shall also be
provided to the victim, in appropriate cases.
If, however, the repatriation of trafficked persons
shall expose the victims to greater risks, the DFA Sec. 32. Rescue Within the Country. Rescue
shall make representation with the host operations within the country shall be primarily
government for the extension of appropriate undertaken by the law enforcement agencies in
residency permits coordination with LGUs, DOLE, DSWD and
and protection, as may be legally permissible in DOH. Upon receipt of a report of a suspected or
the host country. alleged trafficking ncident or activity, the law
enforcement agency to which the report is made
Sec. 31. Procedure for Repatriation. In shall conduct rescue operations of trafficked
accordance with existing rules and regulations persons. At the minimum, rescue operations
on the use and disbursement of Assistance-to- shall be guided by the following:
Nationals Fund of the DFA for the repatriation of
distressed OFWs, the Post shall immediately (a) Conduct of rescue operation of trafficked
request the DFA, through the Office of the persons shall be properly coordinated with the
Undersecretary for Migrant Workers’ Affairs concerned agencies particularly DSWD/local
(OUMWA), allocation of funds for the repatriation social welfare and development officer;
of the victim. In appropriate cases and to avoid (b) The rescue team shall ensure full protection
re-victimization, the Post may withdraw the of the rights of the trafficked person as well as
passport of the victim and forward it to the DFA the traffickers while under its custody and
and in control;
its place issue a Travel Document (FA Form (c) After the rescue operation, the investigation
79(B)) valid for direct travel to the Philippines. of the case shall be referred to the Women and
The Post concerned shall report to the DFA, Children Complaint Desk (WCCD) desk of PNP,
through the OUMWA, copy furnished the Office the Violence Against Women and Children
of Consular Affairs, the actual date of Division (VAWCD) of the NBI or other similar
repatriation and other pertinent information and units or desks;
submit a copy of the sworn statement and other (d) After the completion of the necessary
relevant documents. documents for the filing of cases, the rescue
team shall effect the appropriate and immediate
In appropriate cases, especially when the victim turn-over of the trafficked person to DSWD/local
is suffering from mental illness, has suffered social welfare and development officer; and
physical or sexual abuse or has received serious (e) In the course of investigation of the trafficked
threats to his or her life and safety, the victim will person, the investigator handling the case shall
be ensure that
met upon arrival in the Philippines by DSWD the victim shall be accorded with proper
personnel, in coordination with the Joint Task treatment and investigated in a child-friendly and
Force Against Trafficking in Persons and other gender-sensitive
government agencies such as OWWA, BI and environment. In the conduct of investigative
DOH. In the case of mentally ill patients, minors, interviews on children, the law enforcers shall
and other persons requiring special care, the likewise be guided by the Rule on the
Post shall designate a duly authorized individual Examination of a Child Witness promulgated by
to escort said victims to the Philippines. Supreme Court, as may be applicable. For this
purpose, the investigators shall be properly
The victim will be encouraged, if he or she has trained in the handling of cases of trafficked
not done so before, to execute a sworn persons.
statement with the view of filing the appropriate
charges against the suspected trafficker in the Article IX
Philippines. Should the victim request the REHABILITATION AND
assistance of DFA, OUMWA shall interview the REINTEGRATION OF VICTIMS
victim and make recommendations for
investigation with law enforcement agencies Sec. 33. Comprehensive Program. The
such as the PNP and the NBI. In cases where DSWD, LGUs and other concerned agencies
recruitment agencies are involved, the case shall provide a comprehensive, gendersensitive

Duman / Labor I / Prof. Battad / Page 49
and child friendly program for the recovery, stress and facilitate more effective crisis
rehabilitation interventions, healing and reintegration services.
and reintegration of victims/survivors of
trafficking, such as but not limited to the Sec. 36. Documentation. Data banking,
following: research and documentation of best practices in
rehabilitation and reintegration programs shall
(a) Implementation of residential care, child be conducted to identify efficient and effective
placement, educational assistance, livelihood measures and services for the victims of
and skills training trafficking and their families.
and other community-based services must be
responsive to the specific needs and problems
of the victims/survivors and their families;
(b) Active involvement and participation of the
victims/survivors in the rehabilitation and
reintegration process shall be encouraged. In
order to empower them and to prevent their re- Article X
victimization, capability building programs must PROSECUTION, CIVIL FORFEITURE AND
be provided; and Law, Rules and Local RECOVERY OF CIVIL DAMAGES
Instruments 5 3
(c) Active cooperation and coordination with Sec. 37. Who May File a Complaint.
NGOs and other members of the civil society Complaints for violations of the Act may be filed
including the business community, tourism- by the following:
related industries as well as the media in the (a) Any person who has personal knowledge of
rehabilitation and reintegration of the commission of the offense;
victims/survivors shall be undertaken. (b) The trafficked person or the offended party;
(c) Parents or legal guardians;
Sec. 34 Procedure. The following procedure (d) Spouse;
shall be undertaken in implementing a (e) Siblings; or
comprehensive program for the recovery, (f) Children.
rehabilitation and reintegration of
victims/survivors of trafficking: The foregoing persons may also seek the
assistance of the Council in the filing of
(a) The victim/survivor of trafficking may go to complaint.
the nearest DSWD/LGU Social Welfare and
Development Office for assistance; Sec. 38. Institution of Criminal Action; Effect.
(b) Upon referral/interview the DSWD/Local The institution of the criminal action before the
Government Social Worker shall conduct an Office of the Prosecutor or the court, as the case
intake assessment may be, for purposes of preliminary investigation
to determine appropriate intervention with the shall interrupt the running of the period for
victim/survivor; prescription of the offense charged. The
(c) The social worker shall prepare a social case prescriptive period shall commence to run again
study report/case summary for the when such proceedings terminate without the
victim/survivor’s admission to a residential accused being convicted or acquitted or are
facility for temporary shelter or community- unjustifiably stopped for any reason not
based services; imputable to the accused.
(d) Provide services/interventions based on the
rehabilitation plan in coordination with Sec. 39. Institution of Criminal and Civil
appropriate agencies, Actions. Pursuant to the Revised Rules on
e.g. counseling, legal, medical and educational Criminal Procedure, when a criminal action is
assistance; livelihood and/or skills training; as instituted, the civil action arising from the offense
well as appropriate services to the family of the charged shall be deemed instituted with the
trafficked victim/survivor; and criminal action unless the offended party waives
(e) Monitor implementation and periodically the civil action, reserves the right to institute it
evaluate/update the rehabilitation plan until the separately or institutes the civil action prior to
victim/ survivor has been reintegrated with the criminal action.
his/her family and community.
Sec. 40. Exemption from Filing Fees. When
Sec. 35. Capability Building of Service the trafficked person institutes a separate civil
Providers. The frontline agencies and the action for the recovery of civil damages, he/she
service providers must undergo training and shall be exempt from the payment of filing fees.
other capability building activities to enhance
their knowledge and skills in handling cases of Sec. 41. Venue. The offenses punishable under
trafficking to prevent exacerbation of traumatic the Act shall be considered as a continuing
offense and may be filed in the place where the

Duman / Labor I / Prof. Battad / Page 50
offense was committed or where any of its Sec. 45. Immunity from Criminal
elements occurred or where the trafficked Prosecution. Any person who has personal
person actually resides at the time of the knowledge in the commission of any of the
commission of the offense. Provided, that the offenses penalized under the Act and who
court where the criminal action is first filed shall voluntarily gives material information relative
acquire jurisdiction to the exclusion of other thereto and willingly testifies against the offender
courts. shall be exempt from prosecution for the offense
with reference to which his information and
Sec. 42. Forfeiture of the Proceeds and testimony were given, subject to the following
Instruments Derived from Trafficking in conditions:
Persons. —
(a) After conviction, all proceeds and (a) The information and testimony are necessary
instruments, including any real or personal for the conviction of the accused; and
property used in the commission of the offense, (b) Such information and testimony are not yet in
shall be ordered confiscated and forfeited in the possession of the state.
favor of the State unless the owner thereof can
prove the lack of knowledge of the use of such Sec. 46. Mandatory Services. To ensure
property in the said illegal activity. Any award for recovery, rehabilitation and reintegration into the
damages arising from the commission of the mainstream of society, concerned government
offense may be satisfied and charged against agencies shall make available the following
the personal and services to trafficked persons:
separate properties of the offender and if the
same is insufficient to satisfy the claim, the (a) Emergency shelter or appropriate housing;
balance shall be taken from the forfeited (b) Counseling;
properties as may be ordered by the court. (c) Free legal services which shall include
(b) During the pendency of the criminal action, information about the victims’ rights and the
no property or income used or derived therefrom procedure for filing complaints, claiming
which are subject to confiscation and forfeiture, compensation and such other legal remedies
shall be disposed, alienated or transferred and available to them, in a language understood by
the same shall be in custodia legis and no bond the trafficked person;
shall be admitted for the release of the same. (d) Medical or psychological services;
(c) The trial prosecutor shall avail of the (e) Livelihood and skills training; and
provisional remedies in criminal cases to ensure (f) Educational assistance to a trafficked child.
the confiscation,
preservation and forfeiture of the said properties. Sustained supervision and follow through
(d) If the offender is a public officer or employee, mechanism that will track the progress of
the forfeiture of his/her property found to be recovery, rehabilitation and reintegration of the
unlawfully acquired shall be governed by trafficked persons shall be adopted and carried
Republic Act No. 1379 otherwise known as “An out.
Act Declaring Forfeiture in Favor of the State
Any Property Found to Have Been Unlawfully Sec. 47. Legal Protection of Trafficked
Acquired by Any Public Officer or Employee and Persons Who are Foreign Nationals.
Providing for the Proceedings Therefore.” Trafficked persons in the Philippines who are
nationals of a foreign country shall be entitled to
Article XI appropriate protection, assistance and services
LEGAL PROTECTION AND OTHER available to the trafficked persons and shall be
SERVICES allowed to continued presence in the Philippines
for a period of fifty-nine (59) days to enable them
Sec. 43. Legal Protection. Trafficked persons to effect the prosecution of the offenders. Such
shall be recognized as victims of the act or acts period may be renewed upon showing of proof
of trafficking. As such, they shall not be by the trial prosecutor that their further testimony
penalized for crimes directly related to the acts is essential to the prosecution of the case. The
of trafficking enumerated under the Act or in trial prosecutor shall course his request for
obedience to the order made by the trafficker in extension to the Council which shall accordingly
relation thereto. In this regard, the consent of the act upon the same. If such request is granted,
trafficked person to the intended exploitation set the registration and immigration fees of
forth in the Act shall be irrelevant. such foreign nationals shall be waived. The
Council, for this purpose, shall develop
Sec. 44. Preferential Entitlement under the additional
Witness Protection Program. Any provision of guidelines to implement this provision.
Republic Act No. 6981 to the contrary
notwithstanding, any trafficked person shall be Article XII
entitled to the witness protection program TRUST FUND
provided therein.

Duman / Labor I / Prof. Battad / Page 51
Sec. 48. Trust Fund; Sources. All fines (c) Prevention, detection, investigation and
imposed under the Act and the proceeds and prosecution of trafficking in persons, including
properties forfeited and confiscated pursuant to the protection
Section 14 of the Act and Article IX, Section 5 of of victims through exchanges and joint training
these rules and at the bilateral, regional and international levels,
regulations shall accrue to a Trust Fund to be between and among relevant officials including
administered and managed by the Council. police, judges, prosecutors, immigration officers,
other law enforcement agents as well as
Sec. 49. Utilization. The Trust Fund shall be consular authorities; and
used exclusively for programs that will prevent (d) Repatriation of victims of trafficking with due
acts of trafficking and protect, rehabilitate, regard to their safety and in consideration of
reintegrate trafficked persons into the humanitarian
mainstream of society. Such programs shall and compassionate factors.
include, but not limited to the following:

(a) Provision for mandatory services set forth in
Section 23 of the Act; and Section 47 of these
Rules and Article XIV
Regulations. CONFIDENTIALITY
(b) Sponsorship of a national research program
on trafficking and establishment of a data Sec. 52. Confidentiality. At any stage of the
collection system for monitoring and evaluation investigation, prosecution and trial of an offense
purposes; under this Act, law enforcement officers,
(c) Provision of necessary technical and material prosecutors, judges, court personnel and
support services to appropriate government medical practitioners, as well as parties to the
agencies and nongovernment organizations case, shall recognize the right to privacy of the
(NGOs); trafficked person and the accused. Towards this
(d) Sponsorship of conferences and seminars to end, law enforcement officers, prosecutors and
provide venue for consensus building among the judges to whom the complaint has been referred
public, the academe, government, NGOs and may, whenever necessary to ensure a fair and
international organizations; and impartial proceeding, and after considering all
(e) Promotion of information and education circumstances for the best interest of the parties,
campaign on trafficking. order a closed-door investigation, prosecution or
trial. The name and personal circumstances of
The Trust Fund may also be used to support the the trafficked person or of the accused, or any
operations of the Secretariat. other information tending to establish their
identities and such circumstances or information
Sec. 50. Use and Disbursement of Trust shall not be disclosed to the public. In case
Fund. The use and disbursement of the trust when the prosecution or trial is conducted
fund shall be subject to the approval of at least behind closed doors, it shall be unlawful for any
two-thirds (2/3) of the members of the Council editor, publisher, reporter or columnist in case of
and shall be printed materials, announcer or producer in case
governed by existing government accounting of television and radio, producer and director of
and auditing rules and regulations. a film in case of the movie industry, or any
person utilizing tri-media or information
Article XIII technology to cause publicity of and case of
INTERNATIONAL COOPERATION trafficking in persons.
Sec. 51. International Cooperation. The
Council, in close coordination with the DFA and Article XV
other concerned agencies, shall promote OFFENSES AND PENALTIES
cooperation, technical assistance and
partnership among governments and regional Sec. 53. Acts of Trafficking in Persons. Any
and international organizations on the following person, natural or juridical, who commits any of
aspects: the following acts shall suffer the penalty of
imprisonment of twenty (20) years and a fine of
(a) Prevention, protection, prosecution, not less than One million pesos (P1,000,000.00)
repatriation and reintegration aspects of but not more than Two million pesos
trafficking in persons, especially women and (P2,000,000.00):
children;
(b) Systematic exchange of information and (a) To recruit, transport, transfer, harbor, provide,
good practices among law enforcement and or receive a person by any means, including
immigration authorities; those done under the pretext of domestic or
overseas employment or training or
apprenticeship, for the purpose of prostitution,

Duman / Labor I / Prof. Battad / Page 52
pornography, sexual exploitation, forced labor, propaganda material that promotes trafficking in
slavery, involuntary servitude or debt bondage; persons;
(b) To introduce or match for money, profit or (d) To assist in the conduct of misrepresentation
material, economic or other consideration, any or fraud for purposes of facilitating the
person or, as acquisition of clearances and necessary exit
provided for under Republic Act No. 6955, any documents from government agencies that are
Filipino woman with a foreign national, for mandated to provide pre-departure registration
marriage for the purpose of acquiring, buying, and services for departing persons for the
offering, selling or trading him/her to engage in purpose of promoting trafficking
prostitution, pornography, sexual exploitation, in persons;
forced labor, slavery, involuntary servitude or (e) To facilitate, assist or help in the exit and
debt bondage; entry of persons from/to the country at
(c) To offer or contract marriage, real or international and local airports, territorial
simulated, for the purpose of acquiring, buying, boundaries and seaports who are in possession
offering, selling, or trading them to engage in of unissued, tampered or fraudulent and travel
prostitution, pornography, sexual exploitation, documents for the purpose of promoting
forced labor or slavery, involuntary servitude or trafficking in persons;
debt bondage; (f) To confiscate, conceal, or destroy the
(d) To undertake or organize tours and travel passport, travel documents, or personal
plans consisting tourism packages or activities documents or belongings of trafficked persons in
for the purpose of utilizing and offering persons furtherance of trafficking or to prevent them from
for prostitution, pornography or sexual leaving the country or seeking redress from the
exploitation; government or appropriate agencies; and
(e) To maintain or hire a person to engage in (g) To knowingly benefit from, financial or
prostitution or pornography; otherwise or make use of, the labor or services
(f) To adopt or facilitate the adoption of persons of a person held to a condition of involuntary
for the purpose of prostitution, pornography, servitude, forced labor , or slavery.
sexual exploitation,forced labor, slavery,
involuntary servitude or debt bondage; Sec. 55. Qualified Trafficking in Persons. The
(g) To recruit, hire, adopt, transport or abduct a following are considered as qualified trafficking
person, by means of threat or use of force, and shall be penalized with the penalty of life
fraud, deceit, violence, coercion, or intimidation imprisonment and a fine of not less than Two
for the purpose of removal or sale of organs of million pesos (2,000,000.00) but not more than
said person; and Five million pesos (5,000,000.00);
(h) To recruit, transport or adopt a child to
engage in armed activities in the Philippines or (a) When the trafficked person is a child;
abroad. (b) When the adoption is effected through
Republic Act No. 8043, otherwise known as the
Sec. 54. Acts that Promote Trafficking in “Inter-Country Adoption Act of 1995” and said
Persons. Any person, natural or juridical, who adoption is for the purpose of prostitution,
shall commit the following acts which promote or pornography, sexual exploitation, forced labor,
facilitate trafficking in persons, shall be slavery, involuntary servitude or debt bondage;
penalized with the penalty of imprisonment of (c) When the crime is committed by a syndicate ,
fifteen (15) years and a fine of not less than Five or in large scale. Trafficking is deemed
hundred thousand pesos (P500,000.00) but not committed by a syndicate if carried out by a
more than One million pesos (P1,000,000.00): group of three (3) or more persons conspiring or
confederating with one another. It is deemed
(a) To knowingly lease or sublease, use or allow committed in large scale if committed against
to used any house, building or establishment for three (3) or more persons ,
the purpose of promoting trafficking in persons; individually or as a group;
(b) To produce, print and issue or distribute (d) When the offender is an ascendant, parent,
unissued, tampered or fake counseling sibling, guardian or a person who exercises
certificates, registration stickers and certificates authority over the trafficked person or when the
of any government agency which issues these offense is committed by a public officer or
certificates and stickers as proof of compliance employee;
with government regulatory and pre-departure (e) When the trafficked person is recruited to
requirements for the purpose of promoting engage in prostitution with any member of the
trafficking in persons; military or law
(c) To advertise, publish, print, broadcast or enforcement agencies;
distribute, or cause the advertisement, (f) When the offender is a member of the military
publication, printing, orlaw enforcement agencies; and
broadcasting or distribution by any means, (g) When by reason or on occasion of the act of
including the use of information technology and trafficking in persons, the offended party dies,
the internet of any brochure, flyer, or any becomes insane, suffers mutilation or is afflicted

Duman / Labor I / Prof. Battad / Page 53
with Human Immunodeficiency Virus HIV or the (a) First offense — six (6) months of community
Acquired Immune Deficiency Syndrome (AIDS). service as may be determined by the court and
a fine of Fifty thousand pesos (P50,000.00); and
Sec. 56. Violation of Confidentiality
Provisions. Any person who violates Section 7 (b) Second and subsequent offenses —
of the Act and Section 52, Article XIV hereof imprisonment of one year (1) year and a fine of
shall suffer the penalty of imprisonment of six (6) One hundred thousand pesos (P100,000.00).
years and a fine not less than Five hundred
thousand pesos (P500,000.00) but not more The Council shall coordinate with the Supreme
than One million pesos (P1,000,000.00). Court through the Office of the Court
Administrator for the issuance of appropriate
Sec. 57. Application of Penalties and Other guidelines and measures for the judiciary to
Sanctions. The following shall be applied in the implement this provision particularly on the
imposition of penalties: aspect of implementing the penalty of
community service.
(a) If the offender is a corporation, partnership,
association, club, establishment or any judicial Article XV
person, the FUNDING
penalty shall be imposed upon the owner,
president, partner, manager, and/or any Sec. 59. Inclusion in Agency Appropriations.
responsible officer who participated in the The heads of departments and agencies
commission of the crime or who shall have concerned shall immediately include in their
knowingly permitted or failed to prevent its annual appropriations the funding necessary to
commission; implement programs and services required by
(b) The registration with the Securities and the Act and these regulations.
exchange Commission (SEC) and license to
operate of the erring agency, corporation, In the interim, the funding necessary to carry out
association, religious group, tour or travel agent, their mandate under the law may be charged
club or establishment, or any place or against their Gender and Development (GAD)
entertainment shall be cancelled and revoked budget.
permanently. The owner, president, partner or
manager thereof shall not be allowed to operate Article XVII
similar establishment in a different name; FINAL PROVISIONS
(c) If the offender is a foreigner, he shall be
immediately deported after serving his sentence Sec. 60. Non-Restriction of Freedom of
and be barred Speech and of Association, Religion and the
permanently from entering the country; Right to Travel. Nothing in these rules and
(d) Any employee or official of government regulations shall be interpreted as a restriction of
agencies who shall issue or approve the the freedom and of association, religion and the
issuance of travel exit clearances, passports, right to travel for purposes not contrary to law as
registration certificates, counseling certificates, guaranteed by the Constitution.
marriage license, and other similar documents to
persons, whether judicial or natural, recruitment Sec. 61. Saving Clause. The provisions of
agencies, establishments or other individuals or Republic Act No. 7610, otherwise known as the
groups, who fail to observe the prescribed “Special Protection of Children Against Child
procedures and the requirement as provided for Abuse, Exploitation and Discrimination Act” shall
by laws, rules and regulations, shall be held remain applicable and shall not in any way be
administratively liable, without prejudice to amended or repealed by the provisions of the
criminal liability under the Act. The concerned Act and these rules and regulations.
government official or employee shall, upon
conviction, be dismissed from the service and be Sec. 62. Separability Clause. The declaration
barred permanently to hold public office. His/her of invalidity of any provision of these rules and
retirement and other benefits shall likewise be regulations or part thereof shall not affect the
forfeited; and validity of the remaining provisions.
(e) Conviction by final judgment of the adopter
for any offense under this Act shall result in the Sec. 63. Repealing Clause. Pertinent
immediate provisions of all laws, presidential decrees,
rescission of the decree of adoption. executive orders and rules and regulations, or
parts thereof, contrary to or inconsistent with the
Sec. 58. Use of Trafficked Persons. Any provisions of the Act and these rules and
person who buys or engages the services of regulations are hereby repealed or modified
trafficked persons for prostitution shall be accordingly.
penalized as follows:

Duman / Labor I / Prof. Battad / Page 54
Sec. 64. Effectivity. These rules and regulations which the AEP was issued;
shall take effect fifteen (15) days after its 1.4 Failure to renew AEP within one (1) year
complete publication in at least two (2) after its expiration.
newspapers of general circulation.
2. Petitions for cancellation or revocation of
7. Alien Employment Regulation permits issued shall be resolved within thirty
(30) calendars from receipt thereof.
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book
I, Rule XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines
for Issuance of Employment Permits to Foreign 3. Any aggrieved party may file a Motion for
Nationals); Const., Art. XII, Sec. 12 Reconsideration and/or Appeal and the
same shall be resolved based on Paragraph
4 of this Rule.

a. Coverage • General Milling Corp. v. Torres, 196 SCRA 215 (1991)

• Almodiel v. NLRC, 223 SCRA 341 (1993)

c. Validity of AEP, Omnibus Rules, Rule II.7
b. Conditions for grant of Permit, Omnibus Guidelines,
Rule III. 1, 2, 3

7. Validity of Permits - The validity of permits shall
RULE III. Revocation/Cancellation of Employment be as follows:
Permits Issued
7.1 As a general rule, the validity of permits
1. The permits issued may, motu proprio or shall be for a period of one (1) year, unless
upon a petition, be cancelled or revoked the employment contract, consultancy
based on any of the following grounds: services, or other modes of engagement or
term of office for elective officers, provides
for a longer period.
1.1 Misrepresentation of facts or falsification 7.2 The effectivity of the renewal shall be on
of the documents submitted; the day after the expiration of the previous
1.2 The foreign national has been declared permit, regardless of whether or not the
as an undesirable alien by competent renewal is granted before or after the
authorities; expiration of the previous permit.
1.3 Non-compliance with the conditions for 7.3 As a general rule, the permits shall be
Duman / Labor I / Prof. Battad / Page 55
valid only for the position and the employer Focus technical education and skills development on
for which it was issued, except in case of meeting the changing demands for quality middle-level
foreign nationals who are holders of multiple manpower;
positions in one corporation, where one AEP
shall be valid for such multiple positions. Encourage critical and creative thinking by disseminating
7.4 The permits of resident foreign nationals the scientific and technical knowledge base of middle-level
shall be valid for multiple employers, manpower development programs;
regardless of the nature and duration of their
employment, provided that they shall report Recognize and encourage the complementary roles of
changes in their employment status and the public and private institutions in technical education and
identity of their employers to the DOLE skills development and training systems; and
Regional Office which has issued the permit.
Inculcate desirable values through the development of
moral character with emphasis on work ethic, self-discipline,
self-reliance and nationalism.

d. Revocation/Cancellation/Grounds, Omnibus 2. Apprentice
Guidelines, Rule III.1
a. Definition, RA 7796, Sec. 4 (j)

RULE III. Revocation/Cancellation of Employment "Apprentice" is a person undergoing training for an
Permits Issued approved apprenticeable occupation during an
apprenticeship agreement;
1. The permits issued may, motu proprio or upon a
petition, be cancelled or revoked based on any of b. Apprenticeable Occupation, RA 7796, Sec. 4 (m)
the following grounds:
(m) "Apprenticeable Occupation" is an occupation
officially endorsed by a tripartite body and approved
1.1 Misrepresentation of facts or falsification of the for apprenticeship by the authority;
documents submitted;
1.2 The foreign national has been declared as c. Qualification, RA 7610, as amended by RA 7658, Sec.
an undesirable alien by competent authorities; 12
1.3 Non-compliance with the conditions for
which the AEP was issued;
1.4 Failure to renew AEP within one (1) year
after its expiration. REPUBLIC ACT NO. 7658

E. Human Resources Development AN ACT PROHIBITING THE EMPLOYMENT OF
CHILDREN BELOW 15 YEARS OF AGE IN PUBLIC
Reference: Arts. 57-81; Technical Education and AND PRIVATE UNDERTAKINGS, AMENDING FOR
Skills Development Authority Act of 1994 (TESDA) THIS PURPOSE SECTION 12, ARTICLE VIII OF R.
(RA 7796); Dual Training Systems Act of 1994 (RA A. 7610.
7686); Magna Carta for Disabled Persons (RA 7277)
Section 1. Section 12, Article VIII of R. A. No. 7610
1. Policy Objectives, RA 7796, Secs. 2-3 otherwise known as the "Special Protection of
Children Against Child Abuse, Exploitation and
Discrimination Act" is hereby amended to read as
SEC. 2. Declaration of Policy. - I t is hereby declared follows:
the policy of the State to provide relevant, accessible,
high quality and efficient technical education and skills "Sec. 12. Employment of Children. — Children
development in support of the development of high below fifteen (15) years of age shall not be
quality Filipino middle-level manpower responsive to employed except:
and in accordance with Philippine development goals (1) When a child works directly under the sole
and priorities. responsibility of his parents or legal guardian and
where only members of the employer's family are
employed: Provided, however, That his
The State shall encourage active participation of employment neither endangers his life, safety,
various concerned sectors, particularly private health and morals, nor impairs his normal
enterprises, being direct participants in and immediate development; Provided, further, That the parent or
beneficiaries of a trained and skilled workforce, in legal guardian shall provide the said minor child
providing technical education and skills development with the prescribed primary and/or secondary
opportunities. education; or
(2) Where a child's employment or participation in
SEC. 3. Statement of Goals and Objectives. - It is the public entertainment or information through
goal and objective of this Act to: cinema, theater, radio or television is essential:
Provided, The employment contract is concluded
Promote and strengthen the quality of technical by the child's parents or legal guardian, with the
education and skills development programs to attain express agreement of the child concerned, if
international competitiveness; possible, and the approval of the Department of
Labor and Employment: and Provided, That the
Duman / Labor I / Prof. Battad / Page 56
following requirements in all instances are strictly e. Terms and Conditions of Employment, Art. 61, 72
complied with:
(a) The employer shall ensure the protection, ART. 61. Contents of apprenticeship agreements. -
health, safety, morals and normal development of Apprenticeship agreements, including the wage rates
the child; of apprentices, shall conform to the rules issued by
the Secretary of Labor and Employment. The period
(b) The employer shall institute measures to of apprenticeship shall not exceed six months.
prevent the child's exploitation or discrimination Apprenticeship agreements providing for wage rates
taking into account the system and level of below the legal minimum wage, which in no case shall
remuneration, and the duration and arrangement start below 75 percent of the applicable minimum
of working time; and wage, may be entered into only in accordance with
(c) The employer shall formulate and implement, apprenticeship programs duly approved by the
subject to the approval and supervision of Secretary of Labor and Employment. The Department
competent authorities, a continuing program for shall develop standard model programs of
training and skills acquisition of the child. apprenticeship. (As amended by Section 1, Executive
In the above exceptional cases where any such Order No. 111, December 24, 1986).
child may be employed, the employer shall first
secure, before engaging such child, a work permit ART. 72. Apprentices without compensation. - The
from the Department of Labor and Employment Secretary of Labor and Employment may authorize
which shall ensure observance of the above the hiring of apprentices without compensation whose
requirements. training on the job is required by the school or training
The Department of Labor and Employment shall program curriculum or as requisite for graduation or
promulgate rules and regulations necessary for board examination.
the effective implementation of this Section."
3. Costs, Art. 71
Sec. 2. All laws, decrees, executive orders, rules ART. 71. Deductibility of training costs. - An additional
and regulations or parts thereof contrary to, or deduction from taxable income of one-half (1/2) of the
inconsistent with this Act are hereby modified or value of labor training expenses incurred for developing
repealed accordingly. the productivity and efficiency of apprentices shall be
Sec. 3. This Act shall take effect fifteen (15) days granted to the person or enterprise organizing an
after its complete publication in the Official apprenticeship program: Provided, That such program is
Gazette or in at least two (2) national newspapers duly recognized by the Department of Labor and
or general circulation whichever comes earlier. Employment: Provided, further, That such deduction shall
not exceed ten (10%) percent of direct labor wage: and
Approved: November 9, 1993 Provided, finally, That the person or enterprise who wishes
to avail himself or itself of this incentive should pay his
apprentices the minimum wage.
d. Allowed Employment; Requirement Program Approval
4. Enforcement, Arts. 65, 66, 67
• Nitto Enterprises v. NLRC, 258 SCRA 654 (1995)

ART. 65. Investigation of violation of apprenticeship
agreement. - Upon complaint of any interested person
or upon its own initiative, the appropriate agency of
the Department of Labor and Employment or its
authorized representative shall investigate any
violation of an apprenticeship agreement pursuant to
such rules and regulations as may be prescribed by
the Secretary of Labor and Employment.

ART. 66. Appeal to the Secretary of Labor and
Employment. - The decision of the authorized agency
of the Department of Labor and Employment may be
appealed by any aggrieved person to the Secretary of
Labor and Employment within five (5) days from
receipt of the decision. The decision of the Secretary
of Labor and Employment shall be final and
executory.

ART. 67. Exhaustion of administrative remedies. - No
person shall institute any action for the enforcement
of any apprenticeship agreement or damages for
breach of any such agreement, unless he has
exhausted all available administrative remedies.

5. Learners

a. Definition, RA 7796, Sec. 4

(n) “Learners" refer to persons hired as trainees in semi-
skills and other industrial occupations which are non-
Duman / Labor I / Prof. Battad / Page 57
apprenticeable. Learnersship programs must be approved (d) Handicap refers to a disadvantage for a given
by the Authority; individual, resulting from an impairment or a
disability, that limits or prevents the function or
b. Allowed Employment, Art. 74 (b) activity, that is considered normal given the age
and sex of the individual;
ART. 74. When learners may be hired. - Learners may be
employed when no experienced workers are available, the
employment of learners is necessary to prevent
b. Policy Declaration, RA 7277, Sec. 2
curtailment of employment opportunities, and the
employment does not create unfair competition in terms of Sec. 2. Declaration of Policy — The grant of the
labor costs or impair or lower working standards. rights and privileges for disabled persons shall be
guided by the following principles:
c. Terms and Conditions of Employment, Arts. 75, 76
(a) Disabled persons are part of Philippine
society, thus the State shall give full support to
the improvement of the total well-being of
ART. 75. Learnership agreement. - Any employer disabled persons and their integration into the
desiring to employ learners shall enter into a mainstream of society. Toward this end, the State
learnership agreement with them, which agreement shall adopt policies ensuring the rehabilitation,
shall include: self-development and self-reliance of disabled
persons. It shall develop their skills and potentials
(a) The names and addresses of the learners; to enable them to compete favorably for available
opportunities.
(b) The duration of the learnership period, which
shall not exceed three (3) months; (b) Disabled persons have the same rights as
other people to take their proper place in society.
(c) The wages or salary rates of the learners which They should be able to live freely and as
shall begin at not less than seventy-five percent independently as possible. This must be the
(75%) of the applicable minimum wage; and concern of everyone — the family, community and
all government and nongovernment
organizations. Disabled persons' rights must
(d) A commitment to employ the learners if they so never be perceived as welfare services by the
desire, as regular employees upon completion of Government.
the learnership. All learners who have been allowed
or suffered to work during the first two (2) months
shall be deemed regular employees if training is (c) The rehabilitation of the disabled persons shall
terminated by the employer before the end of the be the concern of the Government in order to
stipulated period through no fault of the learners. foster their capacity to attain a more meaningful,
productive and satisfying life. To reach out to a
greater number of disabled persons, the
The learnership agreement shall be subject to rehabilitation services and benefits shall be
inspection by the Secretary of Labor and expanded beyond the traditional urban-based
Employment or his duly authorized representative. centers to community based programs, that will
ensure full participation of different sectors as
ART. 76. Learners in piecework. - Learners supported by national and local government
employed in piece or incentive-rate jobs during the agencies.
training period shall be paid in full for the work
done. (d) The State also recognizes the role of the
private sector in promoting the welfare of
disabled persons and shall encourage partnership
6. Differently-Abled Worker (Handicapped), RA 7277
in programs that address their needs and
a. Definition, RA 7277, Sec. 4 (a) (b) (c) (d) concerns.

Sec. 4. Definition of Terms. — For purposes of (e) To facilitate integration of disabled persons
this Act, these terms are defined as follows: into the mainstream of society, the State shall
(a) Disabled persons are those suffering from advocate for and encourage respect for disabled
restriction or different abilities, as a result of a persons. The State shall exert all efforts to
mental, physical or sensory impairment, to remove all social, cultural, economic,
perform an activity in the manner or within the environmental and attitudinal barriers that are
range considered normal for a human being; prejudicial to disabled persons.

(b) Impairment is any loss, diminution or c. Coverage, RA 7277, Sec. 3
aberration of psychological, physiological, or
anatomical structure or function; Sec. 3. Coverage. — This Act shall cover all disabled
persons and, to the extent herein provided,
departments, offices and agencies of the National
(c) Disability shall mean 1) a physical or mental
Government or nongovernment organizations
impairment that substantially limits one or more
involved in the attainment of the objectives of this
psychological, physiological or anatomical
Act.
function of an individual or activities of such
individual; 2) a record of such an impairment; or d. Rights and Privileges, RA 7277, Secs. 5, 6, 7
3) being regarded as having such an impairment;

Duman / Labor I / Prof. Battad / Page 58
Sec. 5. Equal Opportunity for Employment. — No
disable person shall be denied access to e. Discrimination, RA 7277, Secs. 32, 33
opportunities for suitable employment. A qualified
disabled employee shall be subject to the same Sec. 32. Discrimination on Employment. — No
terms and conditions of employment and the entity, whether public or private, shall
same compensation, privileges, benefits, fringe discriminate against a qualified disabled person
benefits, incentives or allowances as a qualified by reason of disability in regard to job application
able bodied person. procedures, the hiring, promotion, or discharge of
Five percent (5%) of all casual emergency and employees, employee compensation, job training,
contractual positions in the Departments of Social and other terms, conditions, and privileges of
Welfare and Development; Health; Education, employment. The following constitute acts of
Culture and Sports; and other government discrimination:
agencies, offices or corporations engaged in (a) Limiting, segregating or classifying a disabled
social development shall be reserved for disabled job applicant in such a manner that adversely
persons. affects his work opportunities;

Sec. 6. Sheltered Employment — If suitable (b) Using qualification standards, employment
employment for disabled persons cannot be tests or other selection criteria that screen out or
found through open employment as provided in tend to screen out a disabled person unless such
the immediately preceding Section, the State shall standards, tests or other selection criteria are
endeavor to provide it by means of sheltered shown to be job-related for the position in
employment. In the placement of disabled question and are consistent with business
persons in sheltered employment, it shall accord necessity;
due regard to the individual qualities, vocational
goals and inclinations to ensure a good working (c) Utilizing standards, criteria, or methods of
atmosphere and efficient production. administration that:

Sec. 7. Apprenticeship. — Subject to the (1) have the effect of discrimination on the basis
provisions of the Labor Code as amended, of disability; or
disabled persons shall be eligible as apprentices
or learners: Provided, That their handicap is not (2) perpetuate the discrimination of others who
as much as to effectively impede the performance are subject to common administrative control.
of job operations in the particular occupation for (d) Providing less compensation, such as salary,
which they are hired; Provided, further, That after wage or other forms of remuneration and fringe
the lapse of the period of apprenticeship, if found benefits, to a qualified disabled employee, by
satisfactory in the job performance, they shall be reason of his disability, than the amount to which
eligible for employment. a non-disabled person performing the same work
is entitled;

• Bernardo v. NLRC & FEBTC, 310 SCRA 186 (1999)
(e) Favoring a non-disabled employee over a
qualified disabled employee with respect to
promotion, training opportunities, study and
scholarship grants, solely on account of the
latter's disability;

(f) Re-assigning or transferring a disabled
employee to a job or position he cannot perform
by reason of his disability;

(g) Dismissing or terminating the services of a
disabled employee by reason of his disability
unless the employer can prove that he impairs the
satisfactory performance of the work involved to
the prejudice of the business entity: Provided,
however, That the employer first sought to
provide reasonable accommodations for disabled
persons;

(h) Failing to select or administer in the most
effective manner employment tests which
accurately reflect the skills, aptitude or other
factor of the disabled applicant or employee that
such tests purports to measure, rather than the
impaired sensory, manual or speaking skills of
such applicant or employee, if any; and

(i) Excluding disabled persons from membership
in labor unions or similar organizations.

Duman / Labor I / Prof. Battad / Page 59
Sec. 33. Employment Entrance Examination. — exceeding One hundred thousand pesos
Upon an offer of employment, a disabled (P100,000.00) or imprisonment of not less than six
applicant may be subjected to medical (6) months but not more than two (2) years, or
examination, on the following occasions: both at the discretion of the court; and
(a) all entering employees are subjected to such
an examination regardless of disability; (2) for any subsequent violation, a fine of not less
than One hundred thousand pesos (P100,000.00)
(b) information obtained during the medical but not exceeding Two hundred thousand pesos
condition or history of the applicant is collected (P200,000.00) or imprisonment for not less than
and maintained on separate forms and in separate two (2) years but not more than six (6) years, or
medical files and is treated as a confidential both at the discretion of the court.
medical record; Provided, however, That: (b) Any person who abuses the privileges granted
(1) supervisors and managers may be informed herein shall be punished with imprisonment of not
regarding necessary restrictions on the work or less than six (6) months or a fine of not less than
duties of the employees and necessary Five thousand pesos (P5,000.00), but not more
accommodations; than Fifty thousand pesos (P50,000.00), or both, at
the discretion of the court.
(2) first aid and safety personnel may be informed,
when appropriate, if the disability may require (c) If the violator is a corporation, organization or
emergency treatment; any similar entity, the officials thereof directly
involved shall be liable therefor.
(3) government officials investigating compliance
with this Act shall be provided relevant (d) If the violator is an alien or a foreigner, he shall
information on request; and be deported immediately after service of sentence
without further deportation proceedings.
(4) the results of such examination are used only
in accordance with this Act. NOTES:

f. Enforcement, Secs. 44, 45, 46 ___________________________________________
___________________________________________
Sec. 44. Enforcement by the Secretary of Justice. ___________________________________________
— ___________________________________________
(a) Denial of Right ___________________________________________
(1) Duty to Investigate — the Secretary of Justice ___________________________________________
shall investigate alleged violations of this Act, and
___________________________________________
shall undertake periodic reviews of compliance of
covered entities under this Act. ___________________________________________
(b) Potential Violations — If the Secretary of ___________________________________________
Justice has reasonable cause to believe that — ___________________________________________
(1) any person or group of persons is engaged in ___________________________________________
a pattern or practice of discrimination under this ___________________________________________
Act; or ___________________________________________
___________________________________________
(2) any person or group or persons has been ___________________________________________
discriminated against under this Act and such ___________________________________________
discrimination raises an issue of general public ___________________________________________
importance, the Secretary of Justice may
commence a legal action in any appropriate
___________________________________________
court. ___________________________________________
Sec. 45. Authority of Court. — The court may ___________________________________________
grant any equitable relief that such court ___________________________________________
considers to be appropriate, including, to the ___________________________________________
extent required by this Act: ___________________________________________
(a) granting temporary, preliminary or permanent ___________________________________________
relief; ___________________________________________
___________________________________________
(b) providing an auxiliary aid or service, ___________________________________________
modification of policy, practice or procedure, or
___________________________________________
alternative method; and
___________________________________________
___________________________________________
(c) making facilities readily accessible to and
___________________________________________
usable by individuals with disabilities.
___________________________________________
___________________________________________
Sec. 46. Penal Clause. — (a) Any person who
___________________________________________
violates any provision of this Act shall suffer the
following penalties: ___________________________________________
(1) for the first violation, a fine of not less than ___________________________________________
Fifty thousand pesos (P50,000.00) but not ___________________________________________
Duman / Labor I / Prof. Battad / Page 60
___________________________________________ SECTION 1. Coverage. — This Rule shall apply to all
aliens employed or seeking employment in the
___________________________________________
Philippines, and their present or prospective
___________________________________________ employers.
___________________________________________
___________________________________________ SECTION 2. Submission of list. — All employers
___________________________________________ employing foreign nationals, whether resident or
___________________________________________ non-resident shall submit a list of such nationals to
the Bureau indicating their names, citizenship,
___________________ foreign and local addresses; nature of employment
and status of stay in the Philippines.
Habol:
Alien Employment Regulation
SECTION 3. Registration of resident aliens. — All
employed resident aliens shall register with the
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book
Bureau under such guidelines as may be issued by it.
I, Rule XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines
for Issuance of Employment Permits to Foreign
Nationals); Const., Art. XII, Sec. 12 SECTION 4. Employment permit required for entry. —
No alien seeking employment, whether on resident or
Labor Code non-resident status, may enter the Philippines
Art. 12 (e) To regulate the employment of aliens, without first securing an employment permit from
including the establishment of a registration and/or the Department of Labor and Employment. If an alien
work permit system; enters the country under a non-working visa and
wishes to be employed thereafter, he may only be
allowed to be employed upon presentation of a duly
ART. 40. Employment permit of non-resident aliens. -
approved employment permit.
Any alien seeking admission to the Philippines for
employment purposes and any domestic or foreign
employer who desires to engage an alien for SECTION 5. Requirements for employment permit
employment in the Philippines shall obtain an application. — The application for an employment
employment permit from the Department of Labor. permit shall be accompanied by the following:

The employment permit may be issued to a non- (a) Curriculum vitae duly signed by the applicant
resident alien or to the applicant employer after a indicating his educational background, his work
determination of the non-availability of a person in experience and other data showing that he
the Philippines who is competent, able and willing at possesses high technical skills in his trade or
the time of application to perform the services for profession;
which the alien is desired.
(b) Contract of employment between the employer
For an enterprise registered in preferred areas of and the principal which shall embody the following,
investments, said employment permit may be issued among others:
upon recommendation of the government agency
charged with the supervision of said registered
(1) That the non-resident alien worker shall comply
enterprise.
with all applicable laws and rules and regulations of
the Philippines;
ART. 41. Prohibition against transfer of employment.
- (a) After the issuance of an employment permit, the
(2) That the non-resident alien worker and the
alien shall not transfer to another job or change his
employer shall bind themselves to train at least two
employer without prior approval of the Secretary of
(2) Filipino understudies for a period to be
Labor.
determined by the Secretary of Labor and
Employment; and
(b) Any non-resident alien who shall take up
employment in violation of the provision of this Title
(3) That he shall not engage in any gainful
and its implementing rules and regulations shall be
employment other than that for which he was issued
punished in accordance with the provisions of
a permit.
Articles 289 and 290 of the Labor Code.

(c) A designation by the employer of at least two (2)
In addition, the alien worker shall be subject to
understudies for every alien worker. Such
deportation after service of his sentence.
understudies must be the most ranking regular
employees in the section or department for which
ART. 42. Submission of list. - Any employer the expatriates are being hired to ensure the actual
employing non-resident foreign nationals on the transfer of technology.
effective date of this Code shall submit a list of such SECTION 6. Issuances of employment permit. — The
nationals to the Secretary of Labor within thirty (30) Secretary of Labor and Employment may issue an
days after such date indicating their names, employment permit to the applicant based on:
citizenship, foreign and local addresses, nature of a) Compliance by the applicant and his employer
employment and status of stay in the country. The with the requirements of Section 2 hereof;
Secretary of Labor shall then determine if they are
entitled to an employment permit.
b) Report of the Bureau Director as to the availability
or non-availability of any person in the Philippines
Omnibus Rules, Book I, Rule XIV
who is competent, able, and willing to do the job for
which the services of the applicant are desired;
RULE XIV
Employment of Aliens
c) His assessment as to whether or not the
employment of the applicant will redound to the
national interest;
Duman / Labor I / Prof. Battad / Page 61
d) Admissibility of the alien as certified by the 1.4. Agencies, organizations or individuals
Commission on Immigration and Deportation; whether public or private, who secure the
services of foreign professionals to practice their
e) The recommendation of the Board of Investments professions in the Philippines in the Philippines
or other appropriate government agencies if the under reciprocity and other international
applicant will be employed in preferred areas of agreements;
investments or in accordance with imperatives of
economic developments; and 1.5. Non-Indo-Chinese Refugees who are asylum
seekers and given refugee status by the United
f) Payments of a P100.00 fee. Nations High Commissioner on Refugees
(UNHCR) or the Department of Justice under DOJ
SECTION 7. Duration of employment permit. — Department Order No. 94, series of 1998;
Subject to renewal upon showing of good cause, the
employment permit shall be valid for a minimum 1.6. Resident foreign nationals seeking
period of one (1) year starting from the date of its employment in the Philippines.
issuance unless sooner revoked by the Secretary of 2. Exemption. The following categories of foreign
Labor and Employment for violation of any provisions nationals are exempt from securing an
of the Code or of these Rules.
employment permit in order to work in the
Philippines.
SECTION 8. Advice to Commission on Immigration 2.1 All members of the diplomatic services and
and Deportation. — The Bureau shall advice the foreign government officials accredited by the
Commission on Immigration and Deportation on the
Philippine Government;
issuance of an employment permit to an applicant.
2.2 Officers and staff of international
organizations of which the Philippine government
SECTION 9. Understudy Training Program. — The is a cooperating member, and their legitimate
employer shall submit a training program for his spouse desiring to work in the Philippines;
understudies to the Bureau within thirty (30) days
2.3 Foreign nationals elected as members of the
upon arrival of the alien workers. The supervision of
the training program shall be the responsibility of the Governing board who do not occupy any other
Bureau and shall be in accordance with standards position, but have only voting rights in the
established by the Secretary of Labor and corporation; and
Employment. 2.4 All foreign nationals granted exemption by
special laws and all other laws that may be
Omnibus Guidelines for Issuance of promulgated by the Congress.
Employment Permits to Foreign Nationals –DO Rule II
12, November 12, 2001. Procedures in the Processing of Applications for
AEP
DEPARTMENT ORDER NO. 12
(Series of 2001) 1. All foreign nationals seeking employment in the
. Philippines under Rule 1 hereof or their
. prospective employers, shall file their
OMNIBUS GUIDELINES FOR THE ISSUANCE OF applications with the DOLE Regional Office
EMPLOYMENT PERMITS TO FOREIGN having jurisdiction over the intended place of
NATIONALS. work.
.
. 2. Fees - The applicant shall pay filing, publication
Pursuant to the provisions of Articles 5 and 40 of and permit fees in the amount of Eight thousand
P. D. 442, as amended, the provisions of Rule XIV, pesos (P8,000.00) for each application for AEP
Book I of its Implementing Rules and Regulations, with a validity of one (1) year. Three thousand
Section 17(5), Chapter 4, Title VII of the pesos (P3,000.00) shall be charged for every
Administrative Code of 1987, the following additional year of validity or a fraction thereof.
Omnibus Guidelines for the issuance of
Employment Permits are hereby promulgated: 3. An AEP shall be issued based on the following:
Rule I
Coverage and Exemption 3.1. Compliance bye the applicant employer or the
foreign national with the substantive and
1. The following shall apply for Alien Employment documentary requirements;
Permit (AEP):
1.1. All foreign nationals seeking admission to the 3.2. Determination of the DOLE Secretary that
Philippines for the purpose of employment; there is no Filipino national who is competent,
able and willing to do the job for which the
1.2. Missionaries or religious workers who intend services of the applicant is desired;
to engage in gainful employment;
3.3. Assessment of the DOLE Secretary that the
1.3. Holders of Special Investors Resident Visa employment of the foreign national will redound
(SIRV), Special Retirees Resident Visa (SRRV), to national benefit;
Treaty Traders Visa (9d) or Special Non-immigrant 4. Denial of Application for AEP - An application
Visa (47(a)2), who occupy any executive, advisory, for AEP may be denied based on the ground of
supervisory, or technical position in any non-compliance with any of the requirements for
establishment; issuance of AEP or for misrepresentation of facts
in the application or submission of falsified or
tampered documents.
Duman / Labor I / Prof. Battad / Page 62
Foreign nationals whose applications have been
denied shall not be allowed to re-apply in any of 1.4 Failure to renew AEP within one (1) year after
the DOLE Regional Offices. its expiration.
2. Petitions for cancellation or revocation of
5. Renewal of Permit - An application for renewal permits issued shall be resolved within thirty (30)
of AEP shall be filed at least fifteen (15) days calendars from receipt thereof.
before its expiration. For elective officers,
applications for renewal shall be filed upon 3. Any aggrieved party may file a Motion for
election or at least thirty (30) days before the Reconsideration and/or Appeal and the same shall
effectivity of the applicant's term of office if the be resolved based on Paragraph 4 of this Rule.
succeeding term of office is ascertained.
4. Remedies in Case of Denial or Cancellation - A
Failure to file the application for renewal of permit Motion for Reconsideration maybe filed by an
within the prescribed period shall be subject to aggrieved party within seven (7) calendar days
fines of Five Thousand Pesos (5,000.00), if filed after receipt of the Order of Denial/Cancellation.
within six (6) months after the prescribed period The DOLE Regional Director shall resolve the said
and Ten Thousand Pesos (10,000.00), if filed after Motion for Reconsideration within ten (10)
six (6) months. Failure to renew the AEP within calendar days from receipt thereof.
one (1) year after its expiration shall be a cause
for its revocation or cancellation.
A motion for Reconsideration filed after the period
of seven (7) calendar days but within ten (10)
6. The employer shall notify the DOLE-RO which calendar days after receipt of the denial shall be
issued the permit of the date of the assumption to treated as an appeal.
duty of the foreign national within thirty (30) days
from issuance of the permit.
An appeal from the decision of the DOLE Regional
Director may be filed with the Secretary of labor
7. Validity of Permits - The validity of permits shall and Employment within ten (10) calendar days
be as follows: from receipt of an Order from the DOLE Regional
Director. The decision of the Secretary of Labor
7.1. As a general rule, the validity of permits shall and Employment shall be final and unappealable.
be for a period of one (1) year, unless the
employment contract, consultancy services, or
other modes of engagement or term of office for Rule IV
elective officers, provides for a longer period. Penal and Transitory Provisions
7.2. The effectivity of the renewal shall be on the 1. The DOLE Regional Directors, after due notice
day after the expiration of the previous permit, and hearing, shall have the power to order and
regardless of whether or not the renewal is impose a fine of Five Thousand Pesos (P5,000.00)
granted before or after the expiration of the on foreign nationals found working without an
previous permit. AEP for less than one (1) year and Ten Thousand
Pesos (P10,000.00) for more than one (1) year.
7.3. As a general rule, the permits shall be valid
only for the position and the employer for which it
was issued, except in case of foreign nationals 2. All applications for employment
who are holders of multiple positions in one permit/certificates pending at the DOLE-RO upon
corporation, where one AEP shall be valid for the effectivity of these Guidelines shall be
such multiple positions. covered and processed under the provisions of
these Guidelines.
7.4. The permits of resident foreign nationals shall
be valid for multiple employers, regardless of the 3. Holders of provisional and extended AEPs
nature and duration of their employment, issued under Memorandum dated 24 August 2001
provided that they shall report changes in their regarding Alternative Interim Measures for the
employment status and the identity of their Issuance of Alien Employment Permits, shall
employers to the DOLE Regional Office which has apply for an AEP pursuant to these Guidelines on
issued the permit. or before the expiration of the provisional and
Rule III extended AEP.
Revocation/Cancellation of Employment Permits
Issued 4. Foreign nationals who are already working in
the country and who have not yet secured the
1. The permits issued may, motu proprio or upon requisite employment permit shall have ninety
a petition, be cancelled or revoked based on any (90) days from the effectivity of these Guidelines
of the following grounds: to secure the said employment permit without
1.1 Misrepresentation of facts or falsification of penalty.
the documents submitted;

1.2 The foreign national has been declared as an Rule V
undesirable alien by competent authorities; Miscellaneous Provisions

1.3 Non-compliance with the conditions for which
the AEP was issued; 1. Manual of Operations. - The Bureau of Local
Duman / Labor I / Prof. Battad / Page 63
Employment shall issue a Manual of Operations to work for six (6) days or forty-eight (48) hours, in which
implement the provisions of these Guidelines. case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their
2. Separability Clause. - If any provision or part of regular wage for work on the sixth day. For purposes
this Department Order or the application thereof of this Article, "health personnel" shall include resident
to any person or circumstance is held invalid by physicians, nurses, nutritionists, dietitians,
the Courts, the remaining valid provisions of this pharmacists, social workers, laboratory technicians,
Department Order shall not be affected. paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
3. Repealing Clause. - All guidelines, rules and
regulations and agreements inconsistent herewith ART. 84. Hours worked. - Hours worked shall include
are hereby repealed or modified accordingly. (a) all time during which an employee is required to
be on duty or to be at a prescribed workplace; and (b)
all time during which an employee is suffered or
4. Effectivity. - These guidelines shall take effect permitted to work.
fifteen (15) days after its publication in two (2)
newspapers of general circulation.
Constitution, Art. XII, Sec. 12 Rest periods of short duration during working hours
shall be counted as hours worked.
Section 12. The State shall promote the preferential
use of Filipino labor, domestic materials and locally ART. 85. Meal periods. - Subject to such regulations
produced goods, and adopt measures that help make as the Secretary of Labor may prescribe, it shall be
them competitive. the duty of every employer to give his employees not
less than sixty (60) minutes time-off for their regular
meals.
F. Conditions of Work

Reference: Arts. 82-90; Omnibus Rules, Book III, ART. 86. Night shift differential. - Every employee
Rules l, lA, ll shall be paid a night shift differential of not less than
ten percent (10%) of his regular wage for each hour of
Title I work performed between ten o’clock in the evening
WORKING CONDITIONS and six o’clock in the morning.
AND REST PERIODS

Chapter I ART. 87. Overtime work. - Work may be performed
HOURS OF WORK beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an additional
ART. 82. Coverage. - The provisions of this Title shall compensation equivalent to his regular wage plus at
apply to employees in all establishments and least twenty-five percent (25%) thereof. Work
undertakings whether for profit or not, but not to performed beyond eight hours on a holiday or rest
government employees, managerial employees, field day shall be paid an additional compensation
personnel, members of the family of the employer equivalent to the rate of the first eight hours on a
who are dependent on him for support, domestic holiday or rest day plus at least thirty percent (30%)
helpers, persons in the personal service of another, thereof.
and workers who are paid by results as determined by
the Secretary of Labor in appropriate regulations. ART. 88. Undertime not offset by overtime. -
Undertime work on any particular day shall not be
As used herein, "managerial employees" refer to offset by overtime work on any other day. Permission
those whose primary duty consists of the given to the employee to go on leave on some other
management of the establishment in which they are day of the week shall not exempt the employer from
employed or of a department or subdivision thereof, paying the additional compensation required in this
and to other officers or members of the managerial Chapter.
staff.
ART. 89. Emergency overtime work. - Any employee
"Field personnel" shall refer to non-agricultural may be required by the employer to perform overtime
employees who regularly perform their duties away work in any of the following cases:chan robles virtual
from the principal place of business or branch office of law library
the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty. (a) When the country is at war or when any other
national or local emergency has been declared by the
ART. 83. Normal hours of work. - The normal hours of National Assembly or the Chief Executive;
work of any employee shall not exceed eight (8) hours
a day. (b) When it is necessary to prevent loss of life or
property or in case of imminent danger to public
Health personnel in cities and municipalities with a safety due to an actual or impending emergency in
population of at least one million (1,000,000) or in the locality caused by serious accidents, fire, flood,
hospitals and clinics with a bed capacity of at least typhoon, earthquake, epidemic, or other disaster or
one hundred (100) shall hold regular office hours for calamity;
eight (8) hours a day, for five (5) days a week,
exclusive of time for meals, except where the (c) When there is urgent work to be performed on
exigencies of the service require that such personnel machines, installations, or equipment, in order to
Duman / Labor I / Prof. Battad / Page 64
avoid serious loss or damage to the employer or (2) Customarily and regularly exercise discretion and
some other cause of similar nature; independent judgment; and

(d) When the work is necessary to prevent loss or (3) (i) Regularly and directly assist a proprietor or a
damage to perishable goods; and managerial employee whose primary duty consists of
the management of the establishment in which he is
(e) Where the completion or continuation of the work employed or subdivision thereof; or (ii) execute under
started before the eighth hour is necessary to prevent general supervision work along specialized or
serious obstruction or prejudice to the business or technical lines requiring special training, experience,
operations of the employer. or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
Any employee required to render overtime work under
this Article shall be paid the additional compensation (4) Who do not devote more than 20 percent of their
required in this Chapter. hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3)
ART. 90. Computation of additional compensation. - above.
For purposes of computing overtime and other
additional remuneration as required by this Chapter,
the "regular wage" of an employee shall include the (d) Domestic servants and persons in the personal
cash wage only, without deduction on account of service of another if they perform such services in the
facilities provided by the employer. employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
BOOK THREE safety of the employer as well as the members of his
Conditions of Employment employer's household.

RULE I (e) Workers who are paid by results, including those
Hours of Work who are paid on piece-work, "takay," "pakiao" or task
basis, and other non-time work if their output rates are
SECTION 1. General statement on coverage. — The in accordance with the standards prescribed under
provisions of this Rule shall apply to all employees in Section 8, Rule VII, Book Three of these regulations,
all establishments and undertakings, whether or where such rates have been fixed by the Secretary
operated for profit or not, except to those specifically of Labor and Employment in accordance with the
exempted under Section 2 hereof. aforesaid Section.

SECTION 2. Exemption. — The provisions of this (f) Non-agricultural field personnel if they regularly
Rule shall not apply to the following persons if they perform their duties away from the principal or branch
qualify for exemption under the conditions set forth office or place of business of the employer and whose
herein: actual hours of work in the field cannot be determined
with reasonable certainty.
(a) Government employees whether employed by the
National Government or any of its political SECTION 3. Hours worked. — The following shall be
subdivision, including those employed in government- considered as compensable hours worked:
owned and/or controlled corporations;
(a) All time during which an employee is required to
(b) Managerial employees, if they meet all of the be on duty or to be at the employer's premises or to
following conditions: be at a prescribed work place; and

(1) Their primary duty consists of the management of (b) All time during which an employee is suffered or
the establishment in which they are employed or of a permitted to work.
department or sub-division thereof.
SECTION 4. Principles in determining hours worked.
(2) They customarily and regularly direct the work of — The following general principles shall govern in
two or more employees therein. determining whether the time spent by an employee is
considered hours worked for purposes of this Rule:
(3) They have the authority to hire or fire employees
of lower rank; or their suggestions and (a) All hours are hours worked which the employee is
recommendations as to hiring and firing and as to the required to give his employer, regardless of whether
promotion or any other change of status of other or not such hours are spent in productive labor or
employees, are given particular weight. involve physical or mental exertion.

(c) Officers or members of a managerial staff if they (b) An employee need not leave the premises of the
perform the following duties and responsibilities: work place in order that his rest period shall not be
counted, it being enough that he stops working, may
(1) The primary duty consists of the performance of rest completely and may leave his work place, to go
work directly related to management policies of their elsewhere, whether within or outside the premises of
employer; his work place.

Duman / Labor I / Prof. Battad / Page 65
(c) If the work performed was necessary, or it Rest periods or coffee breaks running from five (5) to
benefited the employer, or the employee could not twenty (20) minutes shall be considered as
abandon his work at the end of his normal working compensable working time.
hours because he had no replacement, all time spent
for such work shall be considered as hours worked, if SECTION 8. Overtime pay. — Any employee covered
the work was with the knowledge of his employer or by this Rule who is permitted or required to work
immediate supervisor. beyond eight (8) hours on ordinary working days shall
be paid an additional compensation for the overtime
(d) The time during which an employee is inactive by work in the amount equivalent to his regular wage
reason of interruptions in his work beyond his control plus at least twenty-five percent (25%) thereof.
shall be considered working time either if the
imminence of the resumption of work requires the SECTION 9. Premium and overtime pay for holiday
employee's presence at the place of work or if the and rest day work. — (a) Except employees referred
interval is too brief to be utilized effectively and to under Section 2 of this Rule, an employee who is
gainfully in the employee's own interest. permitted or suffered to work on special holidays or
on his designated rest days not falling on regular
SECTION 5. Waiting time. — (a) Waiting time spent holidays, shall be paid with an additional
by an employee shall be considered as working time if compensation as premium pay of not less than thirty
waiting is an integral part of his work or the employee percent (30%) of his regular wage. For work
is required or engaged by the employer to wait. performed in excess of eight (8) hours on special
holidays and rest days not falling on regular holidays,
(b) An employee who is required to remain on call in an employee shall be paid an additional
the employer's premises or so close thereto that he compensation for the overtime work equivalent to his
cannot use the time effectively and gainfully for his rate for the first eight hours on a special holiday or
own purpose shall be considered as working while on rest day plus at least thirty percent (30%) thereof.
call. An employee who is not required to leave word at
his home or with company officials where he may be (b) Employees of public utility enterprises as well as
reached is not working while on call. those employed in non-profit institutions and
organizations shall be entitled to the premium and
SECTION 6. Lectures, meetings, training programs. overtime pay provided herein, unless they are
— Attendance at lectures, meetings, training specifically excluded from the coverage of this Rule
programs, and other similar activities shall not be as provided in Section 2 hereof.
counted as working time if all of the following
conditions are met: (c) The payment of additional compensation for work
performed on regular holidays shall be governed by
(a) Attendance is outside of the employee's regular Rule IV, Book Three, of these Rules.
working hours;
SECTION 10. Compulsory overtime work. — In any of
(b) Attendance is in fact voluntary; and the following cases, an employer may require any of
his employees to work beyond eight (8) hours a day,
provided that the employee required to render
(c) The employee does not perform any productive overtime work is paid the additional compensation
work during such attendance. required by these regulations:

SECTION 7. Meal and Rest Periods. — Every (a) When the country is at war or when any other
employer shall give his employees, regardless of sex, national or local emergency has been declared by
not less than one (1) hour time-off for regular meals, Congress or the Chief Executive;
except in the following cases when a meal period of
not less than twenty (20) minutes may be given by the
employer provided that such shorter meal period is (b) When overtime work is necessary to prevent loss
credited as compensable hours worked of the of life or property, or in case of imminent danger to
employee: public safety due to actual or impending emergency in
the locality caused by serious accident, fire, floods,
typhoons, earthquake, epidemic or other disaster or
(a) Where the work is non-manual work in nature or calamities;
does not involve strenuous physical exertion;
(c) When there is urgent work to be performed on
(b) Where the establishment regularly operates not machines, installations, or equipment, in order to
less than sixteen (16) hours a day; avoid serious loss or damage to the employer or
some other causes of similar nature;
(c) In case of actual or impending emergencies or
there is urgent work to be performed on machineries, (d) When the work is necessary to prevent loss or
equipment or installations to avoid serious loss which damage to perishable goods;
the employer would otherwise suffer; and
(e) When the completion or continuation of work
(d) Where the work is necessary to prevent serious started before the 8th hour is necessary to prevent
loss of perishable goods. serious obstruction or prejudice to the business or
operations of the employer; or

Duman / Labor I / Prof. Battad / Page 66
(f) When overtime work is necessary to avail of shall not be more than eight (8) hours in any one day
favorable weather or environmental conditions where nor more than forty (40) hours in any one week.
performance or quality of work is dependent thereon.
For purposes of this Rule a "day" shall mean a work
In cases not falling within any of these enumerated in day of twenty-four (24) consecutive hours beginning
this Section, no employee may be made to work at the same time each calendar year. A "week" shall
beyond eight hours a day against his will. mean the work of 168 consecutive hours, or seven
consecutive 24-hour work days, beginning at the
RULE I-A same hour and on the same calendar day each
Hours of Work of Hospital and Clinic Personnel calendar week.

SECTION 1. General statement on coverage. — This SECTION 6. Regular working days. — The regular
Rule shall apply to: working days of covered employees shall not be more
than five days in a work week. The work week may
begin at any hour and on any day, including Saturday
(a) All hospitals and clinics, including those with a bed or Sunday, designated by the employer.
capacity of less than one hundred (100) which are
situated in cities or municipalities with a population of
one million or more; and Employers are not precluded from changing the time
at which the work day or work week begins, provided
that the change is not intended to evade the
(b) All hospitals and clinics with a bed capacity of at requirements of this Rule.
least one hundred (100), irrespective of the size of the
population of the city or municipality where they may
be situated. SECTION 7. Overtime work. — Where the exigencies
of the service so require as determined by the
employer, any employee covered by this Rule may be
SECTION 2. Hospitals or clinics within the meaning of scheduled to work for more than five (5) days or forty
this Rule. — The terms "hospitals" and "clinics" as (40) hours a week, provided that the employee is paid
used in this Rule shall mean a place devoted primarily for the overtime work an additional compensation
to the maintenance and operation of facilities for the equivalent to his regular wage plus at least thirty
diagnosis, treatment and care of individuals suffering percent (30%) thereof, subject to the provisions of this
from illness, disease, injury, or deformity, or in need of Book on the payment of additional compensation for
obstetrical or other medical and nursing care. Either work performed on special and regular holidays and
term shall also be construed as any institution, on rest days.
building, or place where there are installed beds, or
cribs, or bassinets for twenty-four (24) hours use or
longer by patients in the treatment of disease, injuries, SECTION 8. Hours worked. — In determining the
deformities, or abnormal physical and mental states, compensable hours of work of hospital and clinic
maternity cases or sanitorial care; or infirmaries, personnel covered by this Rule, the pertinent
nurseries, dispensaries, and such other similar names provisions of Rule 1 of this Book shall apply.
by which they may be designated.
SECTION 9. Additional compensation. — Hospital
SECTION 3. Determination of bed capacity and and clinic personnel covered by this Rule, with the
population. — (a) For purposes of determining the exception of those employed by the Government,
applicability of this Rule, the actual bed capacity of shall be entitled to an additional compensation for
the hospital or clinic at the time of such determination work performed on regular and special holidays and
shall be considered, regardless of the actual or bed rest days as provided in this Book. Such employees
occupancy. The bed capacity of hospital or clinic as shall also be entitled to overtime pay for services
determined by the Bureau of Medical Services rendered in excess of forty hours a week, or in excess
pursuant to Republic Act No. 4226, otherwise known of eight hours a day, whichever will yield the higher
as the Hospital Licensure Act, shall prima facie be additional compensation to the employee in the work
considered as the actual bed capacity of such hospital week.
or clinic.
SECTION 10. Relation to Rule I. — All provisions of
(b) The size of the population of the city or Rule I of this Book which are not inconsistent with this
municipality shall be determined from the latest official Rule shall be deemed applicable to hospital and clinic
census issued by the Bureau of the Census and personnel.
Statistics.
RULE II
SECTION 4. Personnel covered by this Rule. — This Night Shift Differential
Rule applies to all persons employed by any private
or public hospital or clinic mentioned in Section 1 SECTION 1. Coverage. — This Rule shall apply to all
hereof, and shall include, but not limited to, resident employees except:
physicians, nurses, nutritionists, dieticians,
pharmacists, social workers, laboratory technicians (a) Those of the government and any of its political
paramedical technicians, psychologists, midwives, subdivisions, including government-owned and/or
and attendants. controlled corporations;

SECTION 5. Regular working hours. — The regular (b) Those of retail and service establishments
working hours of any person covered by this Rule regularly employing not more than five (5) workers;
Duman / Labor I / Prof. Battad / Page 67
(c) Domestic helpers and persons in the personal
service of another;

(d) Managerial employees as defined in Book Three
of this Code;

(e) Field personnel and other employees whose time
and performance is unsupervised by the employer
including those who are engaged on task or contract
basis, purely commission basis, or those who are paid
a fixed amount for performing work irrespective of the
time consumed in the performance thereof.

SECTION 2. Night shift differential. — An employee
shall be paid night shift differential of no less than ten b. Coverage/Exemptions, Art. 82, 276; Rule l, Sec.s 1-4
per cent (10%) of his regular wage for each hour of
(See Above)
work performed between ten o'clock in the evening
and six o'clock in the morning. 1) Government Employees, Const., Art. IX-B,
Sec. 2(1)
SECTION 3. Additional compensation. — Where an
employee is permitted or suffered to work on the
period covered after his work schedule, he shall be ARTICLE IX – B. THE CIVIL SERVICE
entitled to his regular wage plus at least twenty-five COMMISSION
per cent (25%) and an additional amount of no less Section 2. (1) The civil service embraces all
than ten per cent (10%) of such overtime rate for each branches, subdivisions, instrumentalities, and
hour or work performed between 10 p.m. to 6 a.m. agencies of the Government, including government-
owned or controlled corporations with original
charters.
SECTION 4. Additional compensation on scheduled
rest day/special holiday. — An employee who is 2) Managerial Employees, Art. 82; Rule I, Sec.
required or permitted to work on the period covered 2 (b)
during rest days and/or special holidays not falling on (c)
regular holidays, shall be paid a compensation
equivalent to his regular wage plus at least thirty
(30%) per cent and an additional amount of not less
than ten (10%) per cent of such premium pay rate for (b) Managerial employees, if they meet all of the
each hour of work performed. following conditions:

SECTION 5. Additional compensation on regular (1) Their primary duty consists of the management of
holidays. — For work on the period covered during the establishment in which they are employed or of a
regular holidays, an employee shall be entitled to his department or sub-division thereof.
regular wage during these days plus an additional
compensation of no less than ten (10%) per cent of (2) They customarily and regularly direct the work of
such premium rate for each hour of work performed. two or more employees therein.

SECTION 6. Relation to agreements. — Nothing in (3) They have the authority to hire or fire employees
this Rule shall justify an employer in withdrawing or of lower rank; or their suggestions and
reducing any benefits, supplements or payments as recommendations as to hiring and firing and as to the
provided in existing individual or collective promotion or any other change of status of other
agreements or employer practice or policy. employees, are given particular weight.

1. Hours of Work
(c) Officers or members of a managerial staff if they
a. Regulation; Rationale perform the following duties and responsibilities:

• Manila Terminal Co. Inc. v. CIR, 91 Phil. 625 (1952) (1) The primary duty consists of the performance of
work directly related to management policies of their
employer;

(2) Customarily and regularly exercise discretion and
independent judgment; and

(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or
technical lines requiring special training, experience,

Duman / Labor I / Prof. Battad / Page 68
or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and

(4) Who do not devote more than 20 percent of their
hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3)
above.

3) Field Personnel, Art. 82; Rule I, Sec. 2 (f)

• Asia Pacific Christening, Inc. v. Farolan, 393 SCRA 454 • Merdicar Fishing Corp v. NLRC, 297 SCRA 440 (1998)
(2004)

• Auto Bus Transport Systems, Inc. v. Bautista, 458
SCRA 578 (2005)
• Charlito Peñranda v. Baganga Plywood Corp., et al.,
G.R. 159577, May 3, 2006

Duman / Labor I / Prof. Battad / Page 69
• Labor Congress v. NLRC, 290 SCRA 509 (1998)

4) Dependent Family Members

5) Domestic Helpers, Art. 141, 145; Rule I, Sec. 2 (d) c. Normal Hours of Work, Art. 83

Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 141. Coverage. - This Chapter shall apply to all ART. 83. Normal hours of work. - The normal hours of
persons rendering services in households for work of any employee shall not exceed eight (8)
compensation. hours a day.

"Domestic or household service" shall mean service Health personnel in cities and municipalities with a
in the employer’s home which is usually necessary or population of at least one million (1,000,000) or in
desirable for the maintenance and enjoyment thereof hospitals and clinics with a bed capacity of at least
and includes ministering to the personal comfort and one hundred (100) shall hold regular office hours for
convenience of the members of the employer’s eight (8) hours a day, for five (5) days a week,
household, including services of family drivers. exclusive of time for meals, except where the
exigencies of the service require that such personnel
work for six (6) days or forty-eight (48) hours, in
ART. 145. Assignment to non-household work. - No which case, they shall be entitled to an additional
househelper shall be assigned to work in a compensation of at least thirty percent (30%) of their
commercial, industrial or agricultural enterprise at a regular wage for work on the sixth day. For purposes
wage or salary rate lower than that provided for of this Article, "health personnel" shall include
agricultural or non-agricultural workers as prescribed resident physicians, nurses, nutritionists, dietitians,
herein. pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
(d) Domestic servants and persons in the personal
service of another if they perform such services in the
employer's home which are usually necessary or d. Compensable Hours of Work – In general
desirable for the maintenance and enjoyment thereof,
1) On Duty, Art. 84 (a); Rule I, Sec. 3 (a), Sec. 4
or minister to the personal comfort, convenience, or
(a)
safety of the employer as well as the members of his
employer's household.
ART. 84. Hours worked. - Hours worked shall include
6) Persons in the Personal Service of Another, Rule I, (a) all time during which an employee is required to
Sec. 2 (d) be on duty or to be at a prescribed workplace; and
(b) all time during which an employee is suffered or
permitted to work.
(d) Domestic servants and persons in the personal
service of another if they perform such services in the Rest periods of short duration during working hours
employer's home which are usually necessary or shall be counted as hours worked.
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or SECTION 3. Hours worked. — The following shall be
safety of the employer as well as the members of his considered as compensable hours worked:
employer's household.
(a) All time during which an employee is required to
7) Piece Workers, Rule I, Sec. 2 (e)
be on duty or to be at the employer's premises or to
be at a prescribed work place; and

(e) Workers who are paid by results, including those
SECTION 4. Principles in determining hours worked.
who are paid on piece-work, "takay," "pakiao" or task
— The following general principles shall govern in
basis, and other non-time work if their output rates are
determining whether the time spent by an employee is
in accordance with the standards prescribed under
considered hours worked for purposes of this Rule:
Section 8, Rule VII, Book Three of these regulations,
or where such rates have been fixed by the Secretary
of Labor and Employment in accordance with the (a) All hours are hours worked which the employee is
aforesaid Section. required to give his employer, regardless of whether
or not such hours are spent in productive labor or
involve physical or mental exertion.

Duman / Labor I / Prof. Battad / Page 70
credited as compensable hours worked of the
3) At Work, Art. 84 (b); Rule I, Sec. 3 (b) employee:

• Philippine Airlines, Inc. v. NLRC, 302 SCRA 582 (1999)
ART. 84. Hours worked. - Hours worked shall include
(a) all time during which an employee is required to
be on duty or to be at a prescribed workplace; and
(b) all time during which an employee is suffered or
permitted to work.

Sec. 3(b) All time during which an employee is
suffered or permitted to work.

e. Specific Rules

1) Rest Period
b) Shorter Meal Period (Less than One Hour, but Not
a) Short Duration or “Coffee Break”, Art. 84, 2nd par.; Less than 20 min.), Rule I, Sec. 7, 1st par.
Book III, Rule I, Sec. 7, 2nd par.
(See Above)

Rest periods of short duration during working hours 4) Waiting Time, Rule I, Sec. 5 (a)
shall be counted as hours worked.
SECTION 5. Waiting time. — (a) Waiting time spent by
SECTION 7. Meal and Rest Periods. — Every employer an employee shall be considered as working time if
shall give his employees, regardless of sex, not less waiting is an integral part of his work or the
than one (1) hour time-off for regular meals, except employee is required or engaged by the employer to
in the following cases when a meal period of not less wait.
than twenty (20) minutes may be given by the
employer provided that such shorter meal period is • Arica v. NLRC, 170 SCRA 776 (1989)
credited as compensable hours worked of the
employee:

Rest periods or coffee breaks running from five (5) to
twenty (20) minutes shall be considered as
compensable working time.

b) More than 20 min., Rules I, Sec. 4 (b)

SECTION 4. Principles in determining hours
worked. — The following general principles shall
govern in determining whether the time spent by an
employee is considered hours worked for purposes of
this Rule:

(b) An employee need not leave the premises of
the work place in order that his rest period shall not
be counted, it being enough that he stops working,
may rest completely and may leave his work place,
to go elsewhere, whether within or outside the
premises of his work place.

2) Meal Period

a) Regular Meal Period (One Hour), Art. 85; Rule I, Sec. 7,
1st par. 4) On Call, Rule I, Sec. 5 (b)

ART. 85. Meal periods. - Subject to such regulations b) An employee who is required to remain on call in
as the Secretary of Labor may prescribe, it shall be the employer's premises or so close thereto that he
the duty of every employer to give his employees not cannot use the time effectively and gainfully for his
less than sixty (60) minutes time-off for their regular own purpose shall be considered as working while on
meals. call. An employee who is not required to leave word
at his home or with company officials where he may
SECTION 7. Meal and Rest Periods. — Every employer be reached is not working while on call.
shall give his employees, regardless of sex, not less
than one (1) hour time-off for regular meals, except 5) Inactive due to Work Interruptions, Book III, Rule
in the following cases when a meal period of not less I, Sec. 4 (d)
than twenty (20) minutes may be given by the
employer provided that such shorter meal period is SECTION 4. Principles in determining hours worked.
— The following general principles shall govern in
Duman / Labor I / Prof. Battad / Page 71
determining whether the time spent by an employee
is considered hours worked for purposes of this Rule:

(d) The time during which an employee is inactive by
reason of interruptions in his work beyond his control
shall be considered working time either if the f. Overtime Work Pay, Arts. 87-90; Rule I, Secs. 8-11
imminence of the resumption of work requires the
employee's presence at the place of work or if the
interval is too brief to be utilized effectively and
ART. 87. Overtime work. - Work may be performed
gainfully in the employee's own interest.
beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an
additional compensation equivalent to his regular
• University of Pangasinan Faculty Union v. University wage plus at least twenty-five percent (25%)
of Pangasinan, 127 SCRA 691 (1984) thereof. Work performed beyond eight hours on a
holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first
eight hours on a holiday or rest day plus at least
thirty percent (30%) thereof.

ART. 88. Undertime not offset by overtime. -
Undertime work on any particular day shall not be
offset by overtime work on any other day.
Permission given to the employee to go on leave
on some other day of the week shall not exempt
6) Work after Normal Hours, Rule I, Sec. 4 (c) the employer from paying the additional
compensation required in this Chapter.
(c) If the work performed was necessary, or it
benefited the employer, or the employee could not
abandon his work at the end of his normal working ART. 89. Emergency overtime work. - Any
hours because he had no replacement, all time spent employee may be required by the employer to
for such work shall be considered as hours worked, if perform overtime work in any of the following
the work was with the knowledge of his employer or cases:chan robles virtual law library
immediate supervisor.
(a) When the country is at war or when any other
7) Lectures, Meetings, Training Programs, Rule I, Sec. national or local emergency has been declared by
6 the National Assembly or the Chief Executive;

(b) When it is necessary to prevent loss of life or
SECTION 6. Lectures, meetings, training programs. — property or in case of imminent danger to public
Attendance at lectures, meetings, training programs, safety due to an actual or impending emergency in
and other similar activities shall not be counted as the locality caused by serious accidents, fire, flood,
working time if all of the following conditions are typhoon, earthquake, epidemic, or other disaster
met: or calamity;

(a) Attendance is outside of the employee's regular (c) When there is urgent work to be performed on
working hours; machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or
(b) Attendance is in fact voluntary; and some other cause of similar nature;

(c) The employee does not perform any productive (d) When the work is necessary to prevent loss or
work during such attendance. damage to perishable goods; and

8) Travel Time (e) Where the completion or continuation of the
work started before the eighth hour is necessary to
• Rada v. NLRC, 205 SCRA 69 (1992) prevent serious obstruction or prejudice to the
business or operations of the employer.

Any employee required to render overtime work
under this Article shall be paid the additional
compensation required in this Chapter.

ART. 90. Computation of additional compensation. -
For purposes of computing overtime and other
additional remuneration as required by this
Chapter, the "regular wage" of an employee shall
include the cash wage only, without deduction on
account of facilities provided by the employer.

RULE I

SECTION 8. Overtime pay. — Any employee covered
by this Rule who is permitted or required to work
beyond eight (8) hours on ordinary working days
shall be paid an additional compensation for the
overtime work in the amount equivalent to his
Duman / Labor I / Prof. Battad / Page 72
regular wage plus at least twenty-five percent (25%) 3) Undertime Work/Leave, Art. 88
thereof.
4) Additional Compensation, Art. 87
SECTION 9. Premium and overtime pay for holiday
5) No Computation Formula Basic Contract
and rest day work. — (a) Except employees referred
to under Section 2 of this Rule, an employee who is
permitted or suffered to work on special holidays or • Manila Terminal Co., Inc. v. CIR, supra
on his designated rest days not falling on regular
holidays, shall be paid with an additional
compensation as premium pay of not less than thirty
percent (30%) of his regular wage. For work
performed in excess of eight (8) hours on special
holidays and rest days not falling on regular holidays,
an employee shall be paid an additional
compensation for the overtime work equivalent to his
rate for the first eight hours on a special holiday or
rest day plus at least thirty percent (30%) thereof.

(b) Employees of public utility enterprises as well as
those employed in non-profit institutions and
organizations shall be entitled to the premium and
overtime pay provided herein, unless they are
specifically excluded from the coverage of this Rule
as provided in Section 2 hereof.

(c) The payment of additional compensation for work
performed on regular holidays shall be governed by
Rule IV, Book Three, of these Rules.

SECTION 10. Compulsory overtime work. — In any of
the following cases, an employer may require any of 6) Proof of Work/Employer Obligation
his employees to work beyond eight (8) hours a day,
provided that the employee required to render • Social Security System v. Court of Appeals, 348 SCRA
overtime work is paid the additional compensation 1 (2000)
required by these regulations:

(a) When the country is at war or when any other
national or local emergency has been declared by
Congress or the Chief Executive;

(b) When overtime work is necessary to prevent loss
of life or property, or in case of imminent danger to
public safety due to actual or impending emergency
in the locality caused by serious accident, fire, floods,
typhoons, earthquake, epidemic or other disaster or
calamities;

(c) When there is urgent work to be performed on
machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or
some other causes of similar nature;

(d) When the work is necessary to prevent loss or
damage to perishable goods;

(e) When the completion or continuation of work
started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or
operations of the employer; or

(f) When overtime work is necessary to avail of
favorable weather or environmental conditions where g. Nightwork, Art. 86; Rule II, Secs. 1-6
performance or quality of work is dependent thereon.
ART. 86. Night shift differential. - Every employee
In cases not falling within any of these enumerated in shall be paid a night shift differential of not less than
this Section, no employee may be made to work ten percent (10%) of his regular wage for each hour
beyond eight hours a day against his will. of work performed between ten o’clock in the
evening and six o’clock in the morning.
1) Overtime in Ordinary Working Day, Art. 87;
Rule I, Sec. 8
SECTION 1. General statement on coverage. — This
2) Emergency or Compulsory Overtime Work, Rule shall apply to all employers whether operating
Art. 89 for profit or not, including public utilities operated by
private persons.
Duman / Labor I / Prof. Battad / Page 73
SECTION 2. Business on Sundays/Holidays. — All No employee shall be required against his will to
establishments and enterprises may operate or open work on his scheduled rest day except under
for business on Sundays and holidays provided that circumstances provided in this Section: Provided,
the employees are given the weekly rest day and the However, that where an employee volunteers to work
benefits as provided in this Rule. on his rest day under other circumstances, he shall
express such desire in writing, subject to the
provisions of Section 7 hereof regarding additional
SECTION 3. Weekly rest day. — Every employer shall
compensation.
give his employees a rest period of not less than
twenty-four (24) consecutive hours after every six
consecutive normal work days. 1) Coverage/Exclusion, Rule II, Sec. 1

SECTION 4. Preference of employee. — The 2) Additional Compensation, Art. 86
preference of the employee as to his weekly day of
rest shall be respected by the employer if the same
is based on religious grounds. The employee shall • Shell Oil Co. of the Philippines, Ltd. v. National Labor
make known his preference to the employer in Union, 81 Phil. 315 (1948)
writing at least seven (7) days before the desired
effectivity of the initial rest day so preferred.

Where, however, the choice of the employee as to
his rest day based on religious grounds will inevitably
result in serious prejudice or obstruction to the
operations of the undertaking and the employer
cannot normally be expected to resort to other
remedial measures, the employer may so schedule
the weekly rest day of his choice for at least two (2)
days in a month.

SECTION 5. Schedule of rest day. — (a) Where the
weekly rest is given to all employees simultaneously,
the employer shall make known such rest period by 2. Weekly rest Periods
means of a written notice posted conspicuously in
the work place at least one week before it becomes Reference: Arts. 91-93; Omnibus Rules,
effective. Book III, Rule III, Secs. 1-9

(b) Where the rest period is not granted to all
employees simultaneously and collectively, the Chapter II
employer shall make known to the employees their WEEKLY REST PERIODS
respective schedules of weekly rest through written ART. 91. Right to weekly rest day. - (a) It shall be the
notices posted conspicuously in the work place at duty of every employer, whether operating for profit
least one week before they become effective. or not, to provide each of his employees a rest period
of not less than twenty-four (24) consecutive hours
after every six (6) consecutive normal work days.
SECTION 6. When work on rest day authorized. — An
employer may require any of his employees to work
on his scheduled rest day for the duration of the (b) The employer shall determine and schedule the
following emergencies and exceptional conditions: weekly rest day of his employees subject to
collective bargaining agreement and to such rules
and regulations as the Secretary of Labor and
(a) In case of actual or impending emergencies Employment may provide. However, the employer
caused by serious accident, fire, flood, typhoon, shall respect the preference of employees as to their
earthquake, epidemic or other disaster or calamity, weekly rest day when such preference is based on
to prevent loss of life or property, or in cases of force religious grounds.
majeure or imminent danger to public safety;
ART. 92. When employer may require work on a rest
(b) In case of urgent work to be performed on day. - The employer may require his employees to
machineries, equipment or installations to avoid work on any day:
serious loss which the employer would otherwise
suffer;
(a) In case of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
(c) In the event of abnormal pressure of work due to earthquake, epidemic or other disaster or calamity to
special circumstances, where the employer cannot prevent loss of life and property, or imminent danger
ordinarily be expected to resort to other measures; to public safety;

(d) To prevent serious loss of perishable goods; (b) In cases of urgent work to be performed on the
machinery, equipment, or installation, to avoid
(e) Where the nature of the work is such that the serious loss which the employer would otherwise
employees have to work continuously for seven (7) suffer;
days in a week or more, as in the case of the crew
members of a vessel to complete a voyage and in (c) In the event of abnormal pressure of work due to
other similar cases; and special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
(f) When the work is necessary to avail of favorable
weather or environmental conditions where (d) To prevent loss or damage to perishable goods;
performance or quality of work is dependent thereon.

Duman / Labor I / Prof. Battad / Page 74
(e) Where the nature of the work requires continuous SECTION 5. Schedule of rest day. — (a) Where the
operations and the stoppage of work may result in weekly rest is given to all employees simultaneously,
irreparable injury or loss to the employer; and the employer shall make known such rest period by
means of a written notice posted conspicuously in
the work place at least one week before it becomes
(f) Under other circumstances analogous or similar to
effective.
the foregoing as determined by the Secretary of
Labor and Employment.
(b) Where the rest period is not granted to all
employees simultaneously and collectively, the
ART. 93. Compensation for rest day, Sunday or
employer shall make known to the employees their
holiday work. - (a) Where an employee is made or
respective schedules of weekly rest through written
permitted to work on his scheduled rest day, he shall
notices posted conspicuously in the work place at
be paid an additional compensation of at least thirty
least one week before they become effective.
percent (30%) of his regular wage. An employee shall
be entitled to such additional compensation for work
performed on Sunday only when it is his established SECTION 6. When work on rest day authorized. — An
rest day.chan robles virtual law library employer may require any of his employees to work
on his scheduled rest day for the duration of the
following emergencies and exceptional conditions:
(b) When the nature of the work of the employee is
such that he has no regular workdays and no regular
rest days can be scheduled, he shall be paid an (a) In case of actual or impending emergencies
additional compensation of at least thirty percent caused by serious accident, fire, flood, typhoon,
(30%) of his regular wage for work performed on earthquake, epidemic or other disaster or calamity,
Sundays and holidays. to prevent loss of life or property, or in cases of force
majeure or imminent danger to public safety;
(c) Work performed on any special holiday shall be
paid an additional compensation of at least thirty (b) In case of urgent work to be performed on
percent (30%) of the regular wage of the employee. machineries, equipment or installations to avoid
Where such holiday work falls on the employee’s serious loss which the employer would otherwise
scheduled rest day, he shall be entitled to an suffer;
additional compensation of at least fifty per cent
(50%) of his regular wage.
(c) In the event of abnormal pressure of work due to
special circumstances, where the employer cannot
(d) Where the collective bargaining agreement or ordinarily be expected to resort to other measures;
other applicable employment contract stipulates the
payment of a higher premium pay than that
(d) To prevent serious loss of perishable goods;
prescribed under this Article, the employer shall pay
such higher rate.
(e) Where the nature of the work is such that the
employees have to work continuously for seven (7)
days in a week or more, as in the case of the crew
Weekly Rest Periods
members of a vessel to complete a voyage and in
other similar cases; and
SECTION 1. General statement on coverage. — This
Rule shall apply to all employers whether operating
(f) When the work is necessary to avail of favorable
for profit or not, including public utilities operated by
weather or environmental conditions where
private persons.
performance or quality of work is dependent thereon.

SECTION 2. Business on Sundays/Holidays. — All
No employee shall be required against his will to
establishments and enterprises may operate or open
work on his scheduled rest day except under
for business on Sundays and holidays provided that
circumstances provided in this Section: Provided,
the employees are given the weekly rest day and the
However, that where an employee volunteers to work
benefits as provided in this Rule.
on his rest day under other circumstances, he shall
express such desire in writing, subject to the
SECTION 3. Weekly rest day. — Every employer shall provisions of Section 7 hereof regarding additional
give his employees a rest period of not less than compensation.
twenty-four (24) consecutive hours after every six
consecutive normal work days.
SECTION 7. Compensation on rest
day/Sunday/holiday. — (a) Except those employees
SECTION 4. Preference of employee. — The referred to under Section 2, Rule I, Book Three, an
preference of the employee as to his weekly day of employee who is made or permitted to work on his
rest shall be respected by the employer if the same scheduled rest day shall be paid with an additional
is based on religious grounds. The employee shall compensation of at least 30% of his regular wage. An
make known his preference to the employer in employee shall be entitled to such additional
writing at least seven (7) days before the desired compensation for work performed on a Sunday only
effectivity of the initial rest day so preferred. when it is his established rest day.

Where, however, the choice of the employee as to (b) Where the nature of the work of the employee is
his rest day based on religious grounds will inevitably such that he has no regular work days and no regular
result in serious prejudice or obstruction to the rest days can be scheduled, he shall be paid an
operations of the undertaking and the employer additional compensation of at least 30% of his
cannot normally be expected to resort to other regular wage for work performed on Sundays and
remedial measures, the employer may so schedule holidays.
the weekly rest day of his choice for at least two (2)
days in a month.
(c) Work performed on any special holiday shall be
paid with an additional compensation of at least 30%
Duman / Labor I / Prof. Battad / Page 75
of the regular wage of the employees. Where such
holiday work falls on the employee's scheduled rest
day, he shall be entitled to additional compensation
of at least 50% of his regular wage.

(d) The payment of additional compensation for work
performed on regular holiday shall be governed by
Rule IV, Book Three, of these regulations.

(e) Where the collective bargaining agreement or
other applicable employment contract stipulates the
payment of a higher premium pay than that
prescribed under this Section, the employer shall pay
such higher rate.

SECTION 8. Paid-off days. — Nothing in this Rule shall
justify an employer in reducing the compensation of
his employees for the unworked Sundays, holidays,
or other rest days which are considered paid-off days
or holidays by agreement or practice subsisting upon
the effectivity of the Code.

SECTION 9. Relation to agreements. — Nothing
herein shall prevent the employer and his employees
or their representatives in entering into any
agreement with terms more favorable to the c. Premium Pay, Art. 93 9a) (b) (c)
employees than those provided herein, or be used to
diminish any benefit granted to the employees under
existing laws, agreements, and voluntary employer d. CBA on Higher Premium Pay, Art. 93 (d)
practices.
3. Holidays

Reference: art. 94; Executive Order 203 (1987);
Omnibus Rules, Book III, Rule IV

Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES
AND SERVICE CHARGES
ART. 94. Right to holiday pay. - (a) Every worker shall
be paid his regular daily wage during regular
holidays, except in retail and service establishments
regularly employing less than ten (10) workers;
a. Coverage, Art. 82, 91; Rule III, Sec. 1
(b) The employer may require an employee to work
ART. 82. Coverage. - The provisions of this Title shall
on any holiday but such employee shall be paid a
apply to employees in all establishments and
compensation equivalent to twice his regular rate;
undertakings whether for profit or not, but not to
and
government employees, managerial employees, field
personnel, members of the family of the employer
who are dependent on him for support, domestic (c) As used in this Article, "holiday" includes: New
helpers, persons in the personal service of another, Year’s Day, Maundy Thursday, Good Friday, the ninth
and workers who are paid by results as determined of April, the first of May, the twelfth of June, the
by the Secretary of Labor in appropriate regulations. fourth of July, the thirtieth of November, the twenty-
fifth and thirtieth of December and the day
designated by law for holding a general election.
As used herein, "managerial employees" refer to
those whose primary duty consists of the
management of the establishment in which they are EXECUTIVE ORDER NO. 203 June 30, 1987
employed or of a department or subdivision thereof,
and to other officers or members of the managerial
staff. PROVIDING A LIST OF REGULAR HOLIDAYS AND
SPECIAL DAYS TO BE OBSERVED THROUGHOUT
THE PHILIPPINES AND FOR OTHER PURPOSES
"Field personnel" shall refer to non-agricultural
employees who regularly perform their duties away
from the principal place of business or branch office WHEREAS, a Cabinet Assistance Secretariat
of the employer and whose actual hours of work in Committee was constituted to review all existing
the field cannot be determined with reasonable public holidays;
certainty.

WHEREAS, there are too many holidays being
b. Determination; compulsory Work; Compensation, observed which has caused confusion among the
Arts. 91, 92 public.

• Manila Electric Co. v. Public Utilities Employees Assn,
79 Phil. 409 NOW, THEREFORE, I, CORAZON C. AQUINO,
President of the Philippines, do hereby order:

Duman / Labor I / Prof. Battad / Page 76
Sec. 1. Unless otherwise modified by law, order or SECTION 2. Status of employees paid by the month.
proclamation, the following regular holidays and — Employees who are uniformly paid by the month,
special days shall be observed in this country: irrespective of the number of working days therein,
with a salary of not less than the statutory or
A. Regular Holidays established minimum wage shall be paid for all days
New Year's Day January in the month whether worked or not.
Maundy Thursday Movable date
Good Friday Movable date For this purpose, the monthly minimum wage shall
not be less than the statutory minimum wage
Araw ng Kagitingan April 9 multiplied by 365 days divided by twelve.
(Bataan and Corregidor
Day) SECTION 3. Holiday Pay. — Every employer shall pay
Labor Day May 1 his employees their regular daily wage for any
worked regular holidays.
Independence Day June 12
National Heroes Day Last Sunday of
As used in the rule, the term 'regular holiday' shall
August
exclusively refer to: New Year's Day, Maundy
Bonifacio Day November 30 Thursday, Good Friday, the ninth of April, the first of
Christmas Day December 25 May, the twelfth of June, the last Sunday of August,
the thirtieth of November, the twenty-fifth and
Rizal Day December 30 thirtieth of December. Nationwide special days shall
B. Nationwide Special Days include the first of November and the last day of
December.
All Saints Day November 1
Last Day of the Year December 31 As used in this Rule legal or regular holiday and
special holiday shall now be referred to as 'regular
holiday' and 'special day', respectively.
Sec. 2. Henceforth, the terms "legal or regular
holiday" and "special holiday", as used in laws, SECTION 4. Compensation for holiday work. — Any
orders, rules and regulations or other issuances shall employee who is permitted or suffered to work on
now be referred to as "regular holiday" and "special any regular holiday, not exceeding eight (8) hours,
day", respectively. shall be paid at least two hundred percent (200%) of
his regular daily wage. If the holiday work falls on the
scheduled rest day of the employee, he shall be
Sec. 3. All laws, orders, issuances, rules and entitled to an additional premium pay of at least 30%
regulations or parts thereof inconsistent with this of his regular holiday rate of 200% based on his
Executive Order are hereby repealed or modified regular wage rate.
accordingly.
SECTION 5. Overtime pay for holiday work. — For
work performed in excess of eight hours on a regular
Sec. 4. This Executive Order shall take effect
holiday, an employee shall be paid an additional
immediately. compensation for the overtime work equivalent to his
rate for the first eight hours on such holiday work
Done in the City of Manila, this 30th day of June, in plus at least 30% thereof.
the year of Our Lord, nineteen hundred and eighty-
seven. Where the regular holiday work exceeding eight
hours falls on the scheduled rest day of the
employee, he shall be paid an additional
RULE IV
compensation for the overtime work equivalent to his
Holidays with Pay
regular holiday-rest day for the first 8 hours plus 30%
thereof. The regular holiday rest day rate of an
SECTION 1. Coverage. — This rule shall apply to all employee shall consist of 200% of his regular daily
employees except: wage rate plus 30% thereof.

(a) Those of the government and any of the political SECTION 6. Absences. — (a) All covered employees
subdivision, including government-owned and shall be entitled to the benefit provided herein when
controlled corporation; they are on leave of absence with pay. Employees
who are on leave of absence without pay on the day
immediately preceding a regular holiday may not be
(b) Those of retail and service establishments
paid the required holiday pay if he has not worked on
regularly employing less than ten (10) workers;
such regular holiday.

(c) Domestic helpers and persons in the personal
(b) Employees shall grant the same percentage of
service of another;
the holiday pay as the benefit granted by competent
authority in the form of employee's compensation or
(d) Managerial employees as defined in Book Three social security payment, whichever is higher, if they
of the Code; are not reporting for work while on such benefits.

(e) Field personnel and other employees whose time (c) Where the day immediately preceding the holiday
and performance is unsupervised by the employer is a non-working day in the establishment or the
including those who are engaged on task or contract scheduled rest day of the employee, he shall not be
basis, purely commission basis, or those who are deemed to be on leave of absence on that day, in
paid a fixed amount for performing work irrespective which case he shall be entitled to the holiday pay if
of the time consumed in the performance thereof. he worked on the day immediately preceding the
non-working day or rest day.
Duman / Labor I / Prof. Battad / Page 77
SECTION 7. Temporary or periodic shutdown and g) “Service Establishment” is one principally
temporary cessation of work. — (a) In cases of engaged in the sale of service to individuals for their
temporary or periodic shutdown and temporary own or household use and is generally recognized as
cessation of work of an establishment, as when a such;
yearly inventory or when the repair or cleaning of
machineries and equipment is undertaken, the
regular holidays falling within the period shall be b. Coverage/Exclusions, Art. 94 (a)
compensated in accordance with this Rule.
ART. 94. Right to holiday pay. - (a) Every worker shall
(b) The regular holiday during the cessation of be paid his regular daily wage during regular
operation of an enterprise due to business reverses holidays, except in retail and service establishments
as authorized by the Secretary of Labor and regularly employing less than ten (10) workers;
Employment may not be paid by the employer.
• Mantrade/FMMC Division Employees and Workers
SECTION 8. Holiday pay of certain employees. — (a) Union v. Bacungan, 144 SCRA 510 (1986)
Private school teachers, including faculty members of
colleges and universities, may not be paid for the
regular holidays during semestral vacations. They
shall, however, be paid for the regular holidays
during Christmas vacation;

(b) Where a covered employee, is paid by results or
output, such as payment on piece work, his holiday
pay shall not be less than his average daily earnings
for the last seven (7) actual working days preceding
the regular holiday; Provided, However, that in no
case shall the holiday pay be less than the applicable
statutory minimum wage rate.

(c) Seasonal workers may not be paid the required
holiday pay during off-season when they are not at
work.

(d) Workers who have no regular working days shall
be entitled to the benefits provided in this Rule.

SECTION 9. Regular holiday falling on rest days or
Sundays. — (a) A regular holiday falling on the
employee's rest day shall be compensated
accordingly.

(b) Where a regular holiday falls on a Sunday, the
following day shall be considered a special holiday
for purposes of the Labor Code, unless said day is
also a regular holiday.
• Cirineo Bowling Plaza, Inc. v. Gerry Sensing, et al.,
448 SCRA 175 (2005)
SECTION 10. Successive regular holidays. — Where
there are two (2) successive regular holidays, like
Holy Thursday and Good Friday, an employee may
not be paid for both holidays if he absents himself
from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which
case he is entitled to his holiday pay on the second
holiday.

SECTION 11. Relation to agreements. — Nothing in
this Rule shall justify an employer in withdrawing or
reducing any benefits, supplements or payments for
unworked holidays as provided in existing individual
or collective agreement or employer practice or
policy.

a. Definition

1) Retail Establishments, Rule Impl. RA 6727,
par. F

f) “Retail Establishment” is one principally engaged
in the sale of goods to end-users for personal or
household use;

2) Service Establishment, Rule Impl. RA 6727,
par. g

Duman / Labor I / Prof. Battad / Page 78
c. Holiday Pay, Art. 94 (b)

(b) The employer may require an employee to work
on any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate;
and

1) Faculty in Private School, Rule IV, Sec. 8 (a)

SECTION 8. Holiday pay of certain employees. — (a)
Private school teachers, including faculty members of
colleges and universities, may not be paid for the
regular holidays during semestral vacations. They
shall, however, be paid for the regular holidays
during Christmas vacation;

6) Divisor as Factor

• Trans-Asia Phil. Employees Association v. NLRC, 320
SCRA 347 (1999) 8) Muslim Holiday, Art. 169-172; PD 1083 (Feb. 1977)

BOOK FIVE
MISCELLANEOUS AND TRANSITORY
PROVISIONS

TITLE I
MUSLIM HOLIDAYS

Article 169. Official Muslim holidays. The following
are hereby recognized as legal Muslim holidays:

(a) 'Amun Jadid (New Year), which falls on
the first day of the first lunar month of
Muharram;

(b) Maulid-un-Nabi (Birthday of the Prophet
Muhammad), which falls on the twelfth day
of the third lunar month of Rabi-ul-Awwal;

(c) Lailatul Isra Wal Mi'raj (Nocturnal Journey
and Ascension of the Prophet Muhammad),
which falls on the twenty-seventh day of the
seventh lunar month of Rajab;
7) Sunday, Art. 93 9a), 2nd Sentence; Rule III, Sec. 2
(d) 'Id-ul-Fitr (Hari Raya Pausa), which falls
ART. 93. Compensation for rest day, Sunday or
on the first day of the tenth lunar month of
holiday work. - (a) Where an employee is made or
Shawwal, commemorating the end of the
permitted to work on his scheduled rest day, he shall
fasting season; and
be paid an additional compensation of at least thirty
percent (30%) of his regular wage. An employee shall
be entitled to such additional compensation for work (e) 'Id-ul-Adha (Hari Raja Haji), which falls on
performed on Sunday only when it is his established the tenth day of the twelfth lunar month of
rest day. Dhu 1-Hijja.

Article 170. Provinces and cities where officially
SECTION 2. Business on Sundays/Holidays. — All
observed.
establishments and enterprises may operate or open
for business on Sundays and holidays provided that
the employees are given the weekly rest day and the (1) Muslim holidays shall be officially
benefits as provided in this Rule. observed in the Provinces of Basilan, Lanao
del Norte, Lanao del Sur, Maguindanao,
• Wellington Investment Inc. v. Trajano, 245 SCRA North Cotabato, Sultan Kudarat, Sulu, Tawi-
561 (1995) Tawi, Zamboanga del Norte and Zamboanga
del Sur, and in the Cities of Cotabato, Iligan,
Marawi, Pagadian, and Zamboanga and in
such other Muslim provinces and cities as
may hereafter be created.

(2) Upon proclamation by the President of
the Philippines, Muslim holidays may also be
officially observed in other provinces and
cities.

Duman / Labor I / Prof. Battad / Page 79
Article 171. Dates of observance. The dates of he worked on the day immediately preceding the
Muslim holidays shall be determined by the Office of non-working day or rest day.
the President of the Philippines in accordance with
the Muslim Lunar Calendar (Hijra). 4. Service Incentive Leave

Reference: Art. 95; Omnibus Rules, Book III, Rule
Article 172. Observance of Muslim employees.
V

(1) All Muslim government officials and
employees in places other than those
ART. 95. Right to service incentive leave. - (a) Every
enumerated under Article 170 shall also be
employee who has rendered at least one year of
excused from reporting to office in order
service shall be entitled to a yearly service incentive
that they may be able to observe Muslim
leave of five days with pay.
holidays.

(b) This provision shall not apply to those who are
(2) The President of the Philippines may, by
already enjoying the benefit herein provided, those
proclamation, require private offices,
enjoying vacation leave with pay of at least five days
agencies or establishments to excuse their
and those employed in establishments regularly
Muslim employees from reporting for work
employing less than ten employees or in
during a Muslim holiday without reduction in
establishments exempted from granting this benefit
their usual compensation.
by the Secretary of Labor and Employment after
considering the viability or financial condition of such
establishment.

• San Miguel Corp. v. Court of Appeals, 375 SCRA 311 (c) The grant of benefit in excess of that provided
(2002) herein shall not be made a subject of arbitration or
any court or administrative action.

a. Coverage, Art. 95 (a) (b)

• Makati Haberdashery Inc. N. NLRC, 179 SCRA 449
(1989)

d. Absences, Rule lV, Secs. 6 (a), 10

SECTION 6. Absences. — (a) All covered employees
shall be entitled to the benefit provided herein when
• Labor Congress v. NLRC, supra
they are on leave of absence with pay. Employees
b. Computation and Liability
who are on leave of absence without pay on the day
immediately preceding a regular holiday may not be
paid the required holiday pay if he has not worked on • Sentinel Security Agency, Inc. v. NLRC, 295 SCRA
such regular holiday. 123 1998)

SECTION 10. Successive regular holidays. — Where
there are two (2) successive regular holidays, like
Holy Thursday and Good Friday, an employee may
not be paid for both holidays if he absents himself
from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which
case he is entitled to his holiday pay on the second
holiday.

e. Non-Working/Schedule of Rest Day, Rule IV, Sec. 6 (c)

(c) Where the day immediately preceding the holiday
is a non-working day in the establishment or the
scheduled rest day of the employee, he shall not be
deemed to be on leave of absence on that day, in
which case he shall be entitled to the holiday pay if
Duman / Labor I / Prof. Battad / Page 80
Twenty-five thousand pesos (P25,000) or
imprisonment of not less than thirty (30)days nor more
than six (6) months.

If the violation is committed by a corporation, trust
or firm, partnership, association or any other entity,
the penalty of imprisonment shall be imposed on the
entity's responsible officers, including, but not limited
to, the president, vice-president, chief executive
officer, general manager, managing director or
partner directly responsible therefor.
• Auto Bus Transport Systems, Inc. v. Bautista,
supra SECTION 6. Nondiminution Clause. - Nothing in
this Act shall be construed to reduce any existing
5. Paternity Leave, Paternity Leave of 1996 (RA 8187), benefits of any form granted under existing laws,
Secs. 1-6; Impl. Rules decrees, executive orders, or any
contract agreement or policy between employer and
REPUBLIC ACT NO. 8187 employee.

AN ACT GRANTING PATERNITY LEAVE OF SECTION 7. Repealing Clause. - All laws,
SEVEN (7) DAYS WITH FULL PAY TO ALL ordinances, rules, regulations, issuances, or parts
MARRIED MALE EMPLOYEES IN THE PRIVATE thereof which are inconsistent with this Act are
AND PUBLIC SECTORS FOR THE FIRST FOUR (4) hereby repealed or modified accordingly.
DELIVERIES OF THE LEGITIMATE SPOUSE WITH
WHOM HE IS COHABITING AND FOR OTHER SECTION 8. Effectivity. - This Act shall take effect
PURPOSES. (15) days from its publication in the Official Gazette
or in at least two (2) newspapers of national
circulation.
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled: Approved:

SECTION 1. Short Title. - This Act shall be known
as the "Paternity Leave Act of 1996".
(SGD.) NEPTALI A. GONZALES
President of the Senate
SECTION 2. Notwithstanding any law, rules and
regulations to the contrary, every married male
employee in the private and public sectors shall be
entitled to a paternity leave of seven (7) days with full (SGD.) JOSE DE VENECIA, JR.
pay for the first four (4) deliveries of the legitimate Speaker of the House of Representatives
spouse with whom he is cohabiting. The male
employee applying for paternity leave shall notify his
employer of the pregnancy of his legitimate spouse
and the expected date of such delivery.
This Act, which is a consolidation of Senate Bill
No. 1032 and House Bill No. 7134 was finally passed
For purposes, of this Act, delivery shall include
by the Senate and the House of Representatives on
childbirth or any miscarriage.
June 8, 1996.
SECTION 3. Definition of Term. - For purposes of
this Act, Paternity Leave refers to the benefits
granted to a married male employee allowing him not
to report for work for seven (7) 1. Parental Leave, Solo Parents’ Welfare Act of 2000 (RA
days but continues to earn the compensation therefor, 8972); Impl. Rules
on the condition that his spouse has delivered a child
or suffered a miscarriage for purposes of enabling
him to effectively lend
support to his wife in her period of recovery and/or in REPUBLIC ACT NO. 8972
the nursing of the newly-born child.
AN ACT PROVIDING FOR BENEFITS AND
SECTION 4. The Secretary of Labor and PRIVILEGES TO SOLO PARENTS AND THEIR
Employment, the Chairman of the Civil Service CHILDREN, APPROPRIATING FUNDS THEREFOR
Commission and the Secretary of Health shall, within AND FOR OTHER PURPOSES
thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary Be it enacted by the Senate and House of
for the proper implementation of the provisions Representatives of the Philippines Congress
hereof. assembled:
SECTION 5. Any person, corporation, trust, firm,
partnership, association or entity found violating this Section 1. Title. - This Act shall be known as the
Act or the rules and regulations promulgated "Solo Parents' Welfare Act of 2000."
thereunder shall be punished by a fine not exceeding

Duman / Labor I / Prof. Battad / Page 81
Section 2. Declaration of Policy. - It is the policy of (8) Unmarried mother/father who
the State to promote the family as the foundation of has preferred to keep and rear
the nation, strengthen its solidarity and ensure its total her/his child/children instead of
development. Towards this end, it shall develop a having others care for them or give
comprehensive program of services for solo parents them up to a welfare institution;
and their children to be carried out by the Department
of Social Welfare and Development (DSWD), the (9) Any other person who solely
Department of Health (DOH), the Department of provides parental care and support
Education, Culture and Sports (DECS), the to a child or children;
Department of the Interior and Local Government
(DILG), the Commission on Higher Education
(CHED), the Technical Education and Skills (10) Any family member who
Development Authority (TESDA), the National assumes the responsibility of head
Housing Authority (NHA), the Department of Labor of family as a result of the death,
and Employment (DOLE) and other related abandonment, disappearance or
government and nongovernment agencies. prolonged absence of the parents
or solo parent.
Section 3. Definition of Terms. - Whenever used in
this Act, the following terms shall mean as follows: A change in the status or
circumstance of the parent claiming
benefits under this Act, such that
(a) "Solo parent" - any individual who falls he/she is no longer left alone with
under any of the following categories: the responsibility of parenthood,
shall terminate his/her eligibility for
(1) A woman who gives birth as a these benefits.
result of rape and other crimes
against chastity even without a final (b) "Children" - refer to those living with and
conviction of the offender: Provided, dependent upon the solo parent for support
That the mother keeps and raises who are unmarried, unemployed and not
the child; more than eighteen (18) years of age, or
even over eighteen (18) years but are
(2) Parent left solo or alone with the incapable of self-support because of mental
responsibility of parenthood due to and/or physical defect/disability.
death of spouse;
(c) "Parental responsibility" - with respect to
(3) Parent left solo or alone with the their minor children shall refer to the rights
responsibility of parenthood while and duties of the parents as defined in Article
the spouse is detained or is serving 220 of Executive Order No. 209, as
sentence for a criminal conviction amended, otherwise known as the "Family
for at least one (1) year; Code of the Philippines."

(4) Parent left solo or alone with the (d) "Parental leave" - shall mean leave
responsibility of parenthood due to benefits granted to a solo parent to enable
physical and/or mental incapacity of him/her to perform parental duties and
spouse as certified by a public responsibilities where physical presence is
medical practitioner; required.

(5) Parent left solo or alone with the (e) "Flexible work schedule" - is the right
responsibility of parenthood due to granted to a solo parent employee to vary
legal separation or de facto his/her arrival and departure time without
separation from spouse for at least affecting the core work hours as defined by
one (1) year, as long as he/she is the employer.
entrusted with the custody of the
children; Section 4. Criteria for Support. - Any solo parent
whose income in the place of domicile falls below the
(6) Parent left solo or alone with the poverty threshold as set by the National Economic
responsibility of parenthood due to and Development Authority (NEDA) and subject to the
declaration of nullity or annulment assessment of the DSWD worker in the area shall be
of marriage as decreed by a court eligible for assistance: Provided, however, That any
or by a church as long as he/she is solo parent whose income is above the poverty
entrusted with the custody of the threshold shall enjoy the benefits mentioned in
children; Sections 6, 7 and 8 of this Act.

(7) Parent left solo or alone with the Section 5. Comprehensive Package of Social
responsibility of parenthood due to Development and Welfare Services. - A
abandonment of spouse for at least comprehensive package of social development and
one (1) year; welfare services for solo parents and their families will
be developed by the DSWD, DOH, DECS, CHED,
TESDA, DOLE, NHA and DILG, in coordination with

Duman / Labor I / Prof. Battad / Page 82
local government units and a nongovernmental (2) Nonformal education programs
organization with proven track record in providing appropriate for solo parents and their
services for solo parents. children.

The DSWD shall coordinate with concerned agencies The DECS, CHED and TESDA shall promulgate rules
the implementation of the comprehensive package of and regulations for the proper implementation of this
social development and welfare services for solo program.
parents and their families. The package will initially
include: Section 10. Housing Benefits. - Solo parents shall be
given allocation in housing projects and shall be
(a) Livelihood development services which provided with liberal terms of payment on said
include trainings on livelihood skills, basic government low-cost housing projects in accordance
business management, value orientation and with housing law provisions prioritizing applicants
the provision of seed capital or job below the poverty line as declared by the NEDA.
placement.
Section 11. Medical Assistance. - The DOH shall
(b) Counseling services which include develop a comprehensive health care program for
individual, peer group or family counseling. solo parents and their children. The program shall be
This will focus on the resolution of personal implemented by the DOH through their retained
relationship and role conflicts. hospitals and medical centers and the local
government units (LGUs) through their
(c) Parent effectiveness services which provincial/district/city/municipal hospitals and rural
include the provision and expansion of health units (RHUs).
knowledge and skills of the solo parent on
early childhood development, behavior Section 12. Additional Powers and Functions of the
management, health care, rights and duties DSWD. � The DSWD shall perform the following
of parents and children. additional powers and functions relative to the welfare
of solo parents and their families:
(d) Critical incidence stress debriefing which
includes preventive stress management (a) Conduct research necessary to: (1)
strategy designed to assist solo parents in develop a new body of knowledge on solo
coping with crisis situations and cases of parents; (2) define executive and legislative
abuse. measures needed to promote and protect
the interest of solo parents and their
(e) Special projects for individuals in need of children; and (3) assess the effectiveness of
protection which include temporary shelter, programs designed for disadvantaged solo
counseling, legal assistance, medical care, parents and their children;
self-concept or ego-building, crisis
management and spiritual enrichment. (b) Coordinate the activities of various
governmental and nongovernmental
Section 6. Flexible Work Schedule. - The employer organizations engaged in promoting and
shall provide for a flexible working schedule for solo protecting the interests of solo parents and
parents: Provided, That the same shall not affect their children; and
individual and company productivity: Provided,
further, That any employer may request exemption (c) Monitor the implementation of the
from the above requirements from the DOLE on provisions of this Act and suggest
certain meritorious grounds. mechanisms by which such provisions are
effectively implemented.
Section 7. Work Discrimination. - No employer shall
discriminate against any solo parent employee with Section 13. Implementing Rules and Regulations. -
respect to terms and conditions of employment on An interagency committee headed by the DSWD, in
account of his/her status. coordination with the DOH, DECS, CHED, TESDA,
DOLE, NHA, and DILG is hereby established which
Section 8. Parental Leave. - In addition to leave shall formulate, within ninety (90) days upon the
privileges under existing laws, parental leave of not effectivity of this Act, the implementing rules and
more than seven (7) working days every year shall be regulations in consultation with the local government
granted to any solo parent employee who has units, nongovernment organizations and people's
rendered service of at least one (1) year. organizations.

Section 9. Educational Benefits. - The DECS, CHED Section 14. Appropriations. - The amount necessary
and TESDA shall provide the following benefits and to carry out the provisions of this Act shall be included
privileges: in the budget of concerned government agencies in
the General Appropriations Act of the year following
its enactment into law and thereafter.1awphil.net
(1) Scholarship programs for qualified solo
parents and their children in institutions of
basic, tertiary and technical/skills education; Section 15. Repealing Clause. - All laws, decrees,
and executive orders, administrative orders or parts

Duman / Labor I / Prof. Battad / Page 83
thereof inconsistent with the provisions of this Act are AN ACT PROVIDING FOR BENEFITS AND
hereby repealed, amended or modified accordingly. PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR
Section 16. Separability Clause. - If any provision of AND FOR OTHER PURPOSES
this Act is held invalid or unconstitutional, other ARTICLE I
provisions not affected thereby shall continue to be in TITLE, PURPOSE AND CONSTRUCTION
full force and effect. Section 1. Title – These rules shall be known and
cited as the Rules and Regulations Implementing
Republic Act No. 8972, more commonly known as the
Section 17. Effectivity Clause. - This Act shall take Solo Parents’ Welfare Act of 2000.
effect fifteen (15) days following its complete Section 2. Purpose – These Rules are promulgated to
publication in the Official Gazette or in at least two (2) prescribe the procedure and guidelines for the
newspaper of general circulation. implementation of the Solo Parents’ Welfare Act of
2000 in order to facilitate the compliance therewith
Approved. and to achieve the objectives thereof.
Section 3. Construction – These Rules shall be
(Sgd.) liberally construed in favor of the solo parent and
applied in accordance with and in furtherance of the
policy and objectives of the law. In case of conflict
JOSEPH EJERCITO ESTRADA and/or ambiguity, which may arise in the
President of the Philippines implementation of these Rules, the concerned
agencies shall issue the necessary clarification.
Republic of the Philippines ARTICLE II
National Economic Development Authority DECLARATION OF POLICIES AND OBJECTIVES
SOCIAL DEVELOPMENT COMMITTEE (SDC) Section 4. Declaration of Policy – It is the policy of the
Resolution No.2 (Series 2002) State to promote the family as the foundation of the
APPROVING THE IMPLEMENTING RULES AND nation, strengthen its solidarity and ensure its total
REGULATIONS (IRR) development. Towards this end, it shall develop a
OF REPUBLIC ACT 8972 PROVIDING FOR comprehensive program of services for solo parents
BENEFITS AND PRIVILEGES and their children to be carried out by the Department
TO SOLO PARENTS AND THEIR CHILDREN of Social Welfare and Development (DSWD), the
WHEREAS, it is the policy of the State to promote the Department of Health (DOH), the Department of
family as the foundation of the nation, strengthen its Education (DepEd), the Department of the Interior
solidarity and ensure its total development; and Local Government (DILG), the Commission on
WHEREAS, in support of this State policy, R.A. 8972, Higher Education (CHED), the Technical Education
otherwise known as the Solo Parents’ Welfare Act of and Skills Development Authority (TESDA), the
2000, has been enacted to develop a comprehensive National Housing Authority (NHA), the Department of
program for social development and welfare services Labor and Employment (DOLE) and other related
for solo parents and their children; government agencies and non-government
WHEREAS, to ensure the implementation of the Act, organizations or civil society.
the Department of Social Welfare and Development Section 5. Objective – These Rules and Regulations
was tasked to coordinate with concerned agencies seek to clarify the scope and application of the Act in
and perform additional functions relative to the order that the proper parties may avail of its benefits.
welfare and development of solo parents and their ARTICLE III
children; DEFINITION OF TERMS
WHEREAS, an interagency committee headed by Section 6. Definition of terms – As used in these
DSWD and participated in by the Departments of Rules, the following terms shall mean as follows:
Health (DOH), Education (DepEd), Labor and
Employment (DOLE), and Interior and Local (a) “Act” – the Solo Parents’ Welfare Act of
Government (DILG), Commission on Higher 2000;
Education (CHED), Technical Education and Skills
Development Authority (TESDA), and National (b) “Solo Parent” – any individual who falls
Housing Authority (NHA) drafted the IRR in under any of the following categories:
consultation with the local government units, non-
government organizations and people’s organizations; (1) A woman who gives birth as a
WHEREAS, the draft IRR was deliberated upon and result of rape or crimes against chastity,
approved by the members of the SDC-Cabinet level even without a final conviction of the
subject to the incorporation of certain comments offender: Provided, that the mother keeps
during its meeting on the 10th day of April 2002; and raises the child;
NOW, THEREFORE, BE IT RESOLVED, AS IT IS
HEREBY RESOLVED, by the Chairman and (2) Parent left solo or alone with the
members of the NEDA Board’s Social Development responsibility of parenthood due to death of
Committee-Cabinet level, to approve the IRR of R.A. spouse;
8972.
RESOLVED FURTHER, that this IRR shall be (3) Parent left solo or alone with the
published at least in one newspaper of general responsibility of parenthood while the spouse
circulation. is detained, or is serving sentence for a
Adopted, this 10 day of April in the year of our Lord, criminal conviction for at least one (1) year;
Two Thousand and Two, Pasig City.
The law applies to the spouses of prisoners, whether
RULES AND REGULATIONS IN THE or not a final judgement has been rendered, provided
IMPLEMENTATION OF REPUBLIC ACT NO. 8972,
Duman / Labor I / Prof. Battad / Page 84
they are in detention for a minimum period of one (1) (f) “Parental responsibility” – with respect to
year; their minor children shall refer to the rights and duties
of the parents as defined in Article 220 of Executive
(4) Parent left solo or alone with the Order No. 209, as amended, otherwise known as the
responsibility of parenthood due to physical “Family Code of the Philippines,” and hereunder
and/or mental incapacity of spouse as enumerated as follows:
certified by a public medical practitioner;
(1) To keep them in their company,
(5) Parent left solo or alone with the to support, educate and instruct them by
responsibility of parenthood due to legal right precept and good example and to
separation or de facto separation from provide for their upbringing in keeping with
spouse for at least one (1) year: Provided, their means;
that he or she is entrusted with the custody
of the children; (2) To give them love and affection,
advice and counsel, companionship and
(6) Parent left solo or alone with the understanding;
responsibility of parenthood due to
declaration of nullity or annulment of (3) To provide them with moral and
marrriage as decreed by a court or by a spiritual guidance, inculcate in them honesty,
church: Provided, that he/she is entrusted integrity, self-discipline, self-reliance,
with the custody of the children; industry and thrift, stimulate their interest in
civic affairs, and inspire in them compliance
(7) Parent left solo or alone with the with the duties of citizenship;
responsibility of parenthood due to
abandonment of spouse for at least one (1) (4) To furnish them with good and
year; wholesome educational materials, supervise
their activities, recreation and association
(8) Unmarried mother/father who with others, protect them from bad company,
has preferred to keep and rear his/her and prevent them from acquiring habits
child/children instead of having others care detrimental to their health, studies and
for them or give them up to a welfare morals;
institution;
(5) To represent them in all matters
(9) Any other person who solely affecting their interest;
provides parental care and support to a child
or children provided he/she is duly licensed (6) To demand from them respect
as a foster parent by the DSWD or duly and obedience;
appointed legal guardian by the court;
(7) To Impose discipline on them as
(10) Any family member who may be required under the circumstances;
assumes the responsibility of head of family and
as a result of the death, abandonment,
disappearance, or absence lasts for at least (8) To perform such other duties as
one (1) year. are imposed by law and upon parents and
guardians;
A change in the status or circumstance of the parent
claiming benefits under the Act, such that he/she is no (g) “Parental leave” – shall mean leave
longer left alone with the responsibility of parenthood, benefits granted to a solo parent to enable him/her to
shall terminate his/her eligibility for these benefits; perform parental duties and responsibilities where
physical presence is required;
(c) “Family” – shall refer to the Solo Parent
and his/her child/children; Provided, however, that the (h) “Flexible work schedule” – is the right
family member referred to in Section 3, paragraph granted to a solo parent employee to vary his/her
(a)(10) of these Rules shall include any relative by arrival and departure time without affecting the core
consanguinity up to the fourth civil degree. These work hours as defined by the employer;
persons shall include, but are not limited to, any
uncle, aunt, grandfather, grandmother, niece, nephew, (i) “DSWD” – shall refer to the Department of
or cousin; Social Welfare and Development;

(d) “Social Worker” – a person who is a (j) “DOH” – shall refer to the Department of
graduate of Social Work and duly registered pursuant Health;
to Republic Act 4373 and employed with the Social (k) “DOLE” – shall refer to the Department of
Welfare and Development Office of the local Labor and Employment;
government unit where the solo parent resides;
(l) “DepEd” – shall refer to the Department of
(e) “Children” – refer to those living with and Education;
dependent upon the solo parent for support who are
unmarried, unemployed and below eighteen (18) (m) “DILG” – shall refer to the Department of
years of age, or even eighteen (18) years and the Interior and Local Government;
above but are incapable of self-support and/or
mentally and/or physically challenged; (n) “CHED” – shall refer to the Commission
on Higher Education;
Duman / Labor I / Prof. Battad / Page 85
(o) “NHA” – shall refer to the National
Housing Authority;

(p) “TESDA” – shall refer to the Technical
Education and Skills Development Authority;

(q) “NEDA” – shall refer to the National
Economic and Development Authority;

(r) “NSCB” – shall refer to the National
Statistical Coordination Board, an attached agency of
NEDA and responsible for determining the regional
poverty threshold.

ARTICLE IV
CRITERIA FOR SUPPORT
Section 7. Criteria for Support – Any solo parent
whose income in the place of domicile falls equal to
or below the poverty threshold as set by the NSCB
and subject to the assessment of the duly appointed
or designated social worker in the area shall be
eligible for assistance: Provided, however, That any
solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in
Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of
domicile shall refer to the residence mentioned in
Section 8(a) of these Rules.
Section 8. Qualifications of Solo Parent – A solo
parent seeking benefits other than those provided for
under Sections 16, 17, 18, 19, 20, 21 and 23 of these
Rules shall be qualified on the basis of the following:

(a) A resident of the area where the
assistance is sought, as certified by
the barangay captain; Provided, that
if the solo parent is a transferee from
another barangay, he/she is required
to secure a clearance from his/her
previous barangay, indicating
whether or not he/she has availed of
any benefits for solo parents, and
the nature of such benefits.

(b) With an income level equal to or below
the poverty threshold as set forth by
NSCB and assessed by a social worker
as provided for under Section 7 of
these Rules.

Duman / Labor I / Prof. Battad / Page 86
Section 9. Assessment –an applicant who manifests agency concerned providing the
the need for assistance under the Act is subject to appropriate assistance/service.
assessment by a social worker at the city/municipal
Social Welfare and Development Office. The (f) The social worker shall inform the solo
assessment shall cover, but not be limited to, the parent of the status of his/her
following: application within thirty (30) working
days from the filing of such and shall
(a) Determination of the applicant’s category require him/her to visit the
as enumerated in Article III Section 6 agency/institution providing the
paragraph (b) of these Rules; assistance. In case the applicant is not
qualified for services under this Act,
(b) Evaluation of the needs of the applicant he/she will be referred to the
and his/her children as basis for appropriate agency/program for
provision of the appropriate service and assistance.
intervention;
(g) Upon the favorable evaluation of the
(c) Identification of the level of readiness of social worker, a Solo Parent
the applicant to receive a particular Identification Card shall be issued on
service/assistance, which shall serve as the solo parent within 30 days upon
basis for the conduct of social application duly signed by the
preparation activities prior to the city/municipal Social Welfare Officer
provision of such service/assistance; and the city/municipal mayor. The Solo
and Parent Identification Card is necessary
for the availment of benefits under the
(d) Identification of existing and potentially Act and these Rules. Such Identification
available resources that may support Card shall be valid for only one (1) year,
the applicant and his/her children. but may be renewed subject to a new
assessment and evaluation;
Section 10. Procedure in Accessing Services for Solo
Parents - A person who needs assistance under this (h) For the public’s information and
Act shall comply with the following process; guidance, a list of persons who applied
and those who were able to avail of the
(a) Visit the Social Welfare and Development benefits under this Act shall be made
Office of the city or municipality of available by the concerned
her/his residence to manifest her/his city/municipal social welfare and
need for assistance; development office which processed
their applications.
(b) Fill up application form for the assistance,
indicating but not limited to, the Section 11. Procedure for Application of Benefits – An
following information: applicant who was determined by a social worker to
be eligible for assistance may apply for benefits under
1. Name this Act through the following;

2. Age (a) The solo parent may go to the agency
providing such benefit bringing with
3. Address/Area of Domicile her/him the Identification Card issued
by the Municipal/City Social Welfare
4. Income per month and Development Office;

5. Source/s of income (b) Undergo the necessary qualifying
activities required by the agency as
6. Number of children prescribed by these Rules; and

7. Circumstances of being solo; (c) Comply with the requirements set forth by
the agency providing the service for the
(c) Undergo the necessary assessment duration of the assistance (e.g.
process as stipulated in Section 9 schooling, housing) subject to existing
Article IV of these Rules; rules of the agencies concerned.

(d) A Social Case Study Report shall be Section 12. Procedure for Termination of Benefits
prepared by the social worker based on
the information/data provided for by the (a) A solo parent shall manifest to the Social
applicant, as well as his/her Welfare Office his/her intention to
assessment of said applicant, indicating withdraw the availment of the benefits
therein the appropriate services under this Act.
needed.
(b) If the solo parent does not voluntarily
(e) The Social Case Study Report, together manifest his/her intention to terminate
with a referral letter prepared by the the provision of benefits and services
social worker, shall be forwarded by the before the lapse of one year from the
Office of the City/Municipal Social issuance of the Solo Parent I.D., the
Welfare and Development Office to the Social Worker, based on a report by the
Duman / Labor I / Prof. Battad / Page 87
employer or any interested person shall benefits of this item shall be provided for by the DOLE
conduct the necessary and TESDA; the provision of seed capital shall be
assessment/evaluation to ascertain if guided by the credit policy of the National Credit
grounds for termination and withdrawal Council as contained in E.O. No. 138, “Rationalization
of benefits exist. The Identification Card of Government Directed Credit Program”, passed in
shall cease to be effective upon the 1999.
lapse of one year from issuance, unless
renewed based on a new assessment (b) Counseling services, which include
and evaluation. Failure to renew will individual, peer group or family
mean that he/she has changed counseling. These will focus on the
his/her status as a solo parent. resolution of personal relationship and
role conflicts.
(c) The solo parent shall be informed of the
result of the assessment/evaluation and The criteria and procedure for evaluation of
termination of the service, if warranted, beneficiaries for the purposes of availing of the
through written notice. The termination benefits of this item shall be provided for by the
shall take effect 30 days from the DSWD;
receipt of the notice of termination. In
cases when the service cannot be (c) Parent effectiveness services which
terminated in a period of one month, include the provision and expansion of
e.g. schooling, the service shall be knowledge and skills of the solo parent
completed until its due time. on early childhood development,
behavior management, health care and
The NHA and other participating housing agencies proper nutrition, rights and duties of
shall issue the guidelines in the termination of housing parents and children;
benefits provided in sections 23 and 24 of these
Rules. (d) Critical incidence stress debriefing, which
(d) The solo parent and his/her children shall includes preventive stress management
undergo psychosocial counseling with strategy designed to assist solo parents
the social worker to prepare them for in coping with crisis situations and
independent living. cases of abuse;

Section 13. Relocation of the Family – In the event a (e) Special projects for individuals in need of
solo parent decides to relocate his/her family, he/she protection which include temporary
shall inform the city/municipal Social Welfare and shelter, counseling, legal assistance,
Development Office. Said office shall thereupon medical care, self-concept or ego-
transmit the records to the city/municipal Social building, crisis management and
Welfare and Development Office of the place of spiritual enrichment.
relocation.
Section 14. Duty to Monitor – It shall be the duty of Section 16. Flexible Work Schedule – The employer
the city/municipal Social Welfare Officer who receives shall provide for a flexible work schedule for solo
said records, to assign a social worker to monitor the parents: Provided, That the same shall not affect
status of the relocated solo parent and his/her family. individual and company productivity: Provided further,
Moreover, it shall also be the duty of said officer to That any employer may request exemption from the
coordinate with the concerned agencies of any above requirements from the DOLE on certain
changes in the status of the solo parent receiving meritorious grounds.
benefits from said agencies. In the case of employees in the government service,
ARTICLE V flexible working hours will be subject to the discretion
BENEFITS of the head of the agency. In no case shall the weekly
Section 15. Comprehensive Package of Social working hours be reduced in the event the agency
Development and Welfare Services – A adopts the flexible working hours schedule format
comprehensive package of social development and (flexi-time). In the adoption of flexi-time, the core
welfare services for solo parents and their families will working hours shall be prescribed taking into
be developed by the DSWD, DOH, DepEd, CHED, consideration the needs of the service..
TESDA, DOLE, NHA and DILG, in coordination with Section 17. Work Discrimination – No
local government units and non-governmental employer shall discriminate against any solo parent
organizations with proven track record in providing employee with respect to terms and conditions of
services for solo parents. employment on account of his/her status.
The DSWD shall coordinate with concerned agencies Section 18. Parental Leave – In addition to leave
the implementation of the comprehensive package of privileges under existing laws, parental leave of not
social development and welfare services for solo more than seven (7) working days every year shall be
parents and their families. The package will initially granted to any solo parent employee who has
include: rendered service of at least one (1) year. The seven-
day parental leave shall be non-cumulative.
(a) Livelihood development services, which Section 19. Conditions for Entitlement of Parental
include training on livelihood skills, Leave – A solo parent shall be entitled to parental
basic business management, value leave provided that:
orientation and the provision of seed
capital or job placement. (a) He/She has rendered at least one (1)
year of service whether continuous or
The criteria and procedure for evaluation of broken at the time of the affectivity of
beneficiaries for the purposes of availing of the the Act;
Duman / Labor I / Prof. Battad / Page 88
regulations of participating housing agencies shall be
(b) He/She has notified his/her employer of provided with liberal terms of payment on government
the availment thereof within a low-cost housing projects, in accordance with housing
reasonable time period; and law provisions, prioritizing applicants below the
poverty line as declared by the NSCB.
(c) He/She has presented a Solo Parent Section24. The NHA shall make available housing
Identification Card to his/her employer. units to solo parents in its housing projects subject to
existing disposition policies or may refer them to other
Section 20. Non-conversion of Parental Leave – In housing projects, as appropriate, provided that:
the event that the parental leave is not availed of, said
leave shall not be convertible to cash unless (a) The identified solo parent must be eligible
specifically agreed upon previously. However, if said for assistance under the provisions of
leave were denied an employee as a result of non- this Act;
compliance with the provisions of these Rules by an
employer, the aforementioned leave may be used a (b) Solo parents applying for housing
basis for the computation of damages. benefits must meet the qualification
Section 21. Crediting of Existing Leave – If there is an criteria for housing assistance under
existing or similar benefit under a company policy, or Republic Act 7279, or the Urban
a collective bargaining agreement or collective Development and Housing Act
negotiation agreement the same shall be credited as (UDHA) and other NHA eligibility
such. If the same is greater than the seven (7) days criteria under existing policies, rules
provided for in the Act, the greater benefit shall and regulations; and
prevail.
Emergency or contingency leave provided under a (c) Eligible solo parents shall file their
company policy or a collective bargaining agreement application for housing unit directly
shall not be credited as compliance with the parental with the concerned NHA Project
leave provided for under the Act and these Rules. Offices.

Section 22. Educational Benefits – The DepEd, CHED Upon written request, the NHA shall provide the
and TESDA shall provide the following benefits and DSWD a listing of NHA projects with available
privileges: housing units for disposition. This list shall be updated
and provided semi-annually.
(a) Scholarship programs for qualified solo Section 25. Medical Assistance – The DOH shall
parents and their children in develop a comprehensive health care program for
institutions of basic, tertiary and solo parents and their children. The program shall be
technical/skills education; implemented by the DOH through their retained
hospitals and medical centers and the local
(b) Non-formal education programs government units (LGUs) through their
appropriate for solo parents and their provincial/district/city/municipal hospitals and rural
children. health units (RHUs).
Section 26. Essential Health Packages – To ensure
Application Procedure: the state of well-being of the solo parent and his/her
family, healthy/medical services shall be made
1. Applicant must secure application form available at all times, in all levels of health care
from either DepEd, CHED and TESDA delivery system as mentioned in the previous section.
depending on their need; These health/medical services shall be part of the
regular essential health packages being provided at
2. Submit the duly accomplished application various stages of life.
form together with the required
documents to the appropriate agency. ARTICLE VI
ADDITIONAL POWERS AND FUNCTIONS OF THE
The following are the documents required to be DSWD
attached with the application: Section 27. Additional Powers and Functions of the
DSWD – The DSWD shall perform the following
1. Solo Parent Identification Card additional powers and functions relative to the welfare
and development of solo parents and their families:
2. Barangay Clearance
(a) Conduct research necessary to:
3. Birth Certificate
(1) develop a new body of knowledge
4. Notice of admission from the on solo parents;
school
(2) Define executive and legislative
5. Original or Certified True Copy of measures needed to promote and
the transcript of record, or the protect the interest of solo parents
Report Care of the last year the and their children; and
applicant attended school.
(3) Assess the effectiveness of policies
Section 23. Housing Benefits – Solo parents who and programs designed for solo
meet the eligibility criteria for housing assistance parents and their children;
under R.A. No. 7279 (Urban Development and
Housing Act of 1992) and other related rules and
Duman / Labor I / Prof. Battad / Page 89
The commissioning or contracting out for the conduct RULE VI
of said research shall be inherent in the performance Service Charges
of herein function;
SECTION 1. Coverage. — This rule shall apply only to
(b) Coordinate the activities of various establishments collecting service charges such as
government agencies, LGUs, and non- hotels, restaurants, lodging houses, night clubs,
government organizations engaged in cocktail lounge, massage clinics, bars, casinos and
promoting and protecting the interests gambling houses, and similar enterprises, including
those entities operating primarily as private
of solo parents and their children;
subsidiaries of the Government.

(c) Coordinate the dissemination of
information concerning the benefits of SECTION 2. Employees covered. — This rule shall
apply to all employees of covered employers,
the Act and these Rules, as well as
regardless of their positions, designations or
other advocacy activities; and employment status, and irrespective of the method
by which their wages are paid except to managerial
(d) Monitor the implementation of the employees.
provisions of this Act and suggest
mechanisms by which such provisions
As used herein, a "managerial employee" shall mean
are efficiently and effectively one who is vested with powers or prerogatives to lay
implemented. down and execute management policies and/or to
hire, transfer, suspend, lay-off, recall, discharge,
Section 28. Review Committee – A special review assign, or discipline employees or to effectively
committee comprised of members from the DSWD, recommend such managerial actions. All employees
DOH, DepEd, DILG, CHED, TESDA, NHA, DOLE not falling within this definition shall be considered
and other related government agencies and non- rank-and-file employees.
government organizations or civil society involved in
the implementation of the provisions of the Act shall SECTION 3. Distribution of service charges. — All
be created and headed by the DSWD for the purpose service charges collected by covered employers shall
of evaluating the efficacy and relevancy of the be distributed at the rate of 85% for the employees
provisions of the Act to the present situation. and 15% for the management. The 85% shall be
distributed equally among the covered employees.
The duties and responsibilities of the members of this
The 15% shall be for the disposition by management
Review Committee shall be considered as part of their to answer for losses and breakages and distribution
regular functions. to managerial employees at the discretion of the
management in the latter case.
ARTICLE VII
FINAL PROVISIONS SECTION 4. Frequency of distribution. — The shares
Section 29. Appropriations – The amount necessary referred to herein shall be distributed and paid to the
to carry out the provisions of the Act shall be included employees not less than once every two (2) weeks or
in the budget of concerned government agencies in twice a month at intervals not exceeding sixteen (16)
the General Appropriations Act of the year following days.
its enactment into law and thereafter.
Section 30. Repealing Clause – All laws, decrees, SECTION 5. Integration of service charges. — In case
executive orders, administrative orders or parts the service charges is abolished the share of covered
thereof inconsistent with the provisions of the Act are employees shall be considered integrated in their
hereby repealed, amended or modified accordingly. wages. The basis of the amount to be integrated
Section 31. Separability Clause – If any provision of shall be the average monthly share of each
the Act is held invalid or unconstitutional, other employee for the past twelve (12) months
provisions not affected thereby shall continue to be in immediately preceding the abolition of withdrawal of
such charges.
full force and effect.
Section 32. Effectivity Clause – These Implementing
Rules and Regulations shall take effect fifteen (15) SECTION 6. Relation to agreements. — Nothing in this
days following its publication in one (1) national Rule shall prevent the employer and his employees
from entering into any agreement with terms more
newspaper of general circulation.
favorable to the employees than those provided
herein, or be used to diminish any benefit granted to
the employees under existing laws, agreement and
7. Service Charges
voluntary employer practice.
Reference: Art. 96; Omnibus Rules, Book III, Rule VI
SECTION 7. This rule shall be without prejudice to
existing, future collective bargaining agreements.
ART. 96. Service charges. - All service charges
collected by hotels, restaurants and similar Nothing in this rule shall be construed to justify the
establishments shall be distributed at the rate of reduction or diminution of any benefit being enjoyed
eighty-five percent (85%) for all covered employees by any employee at the time of effectivity of this
and fifteen percent (15%) for management. The rule.
share of the employees shall be equally distributed
among them. In case the service charge is abolished,
a. Covered Employees, Art. 96
the share of the covered employees shall be
considered integrated in their wages.
b. Sharing, Art. 96

Duman / Labor I / Prof. Battad / Page 90
G. Minimum Wages and Wage Fixing Machinery f) "Retail Establishment" is one principally engaged in
the sale of goods to end-users for personal or
Reference: Art. 96; Omnibus Rules, Book III, Rules household use;
VII-VIII
g) "Service Establishment" is one primarily engaged
ART. 99. Regional minimum wages. - The minimum
in the sale of service to individuals for their own or
wage rates for agricultural and non-agricultural
household use and is generally recognized as such;
employees and workers in each and every region of
the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards. (As h) "Cottage/Handicraft Establishment" is one
amended by Section 3, Republic Act No. 6727, June engaged in an economic endeavor in which the
9, 1989). products are primarily done in the home or such
other places for profit which requires manual
Art XIII, Section 3. The State shall afford full dexterity and craftsmanship and whose capitalization
protection to labor, local and overseas, organized does not exceed P500,000, regardless of previous
and unorganized, and promote full employment and registration with the defunct NACIDA;
equality of employment opportunities for all.
i) "National Capital Region" covers the cities of
It shall guarantee the rights of all workers to self- Kalookan, Manila, Pasay and Quezon and the
organization, collective bargaining and negotiations, municipalities of Las Piñas, Makati, Malabon,
and peaceful concerted activities, including the right Mandaluyong, Marikina, Muntinlupa, Navotas,
to strike in accordance with law. They shall be Parañaque, Pasig, Pateros, San Juan, Taguig and
entitled to security of tenure, humane conditions of Valenzuela;
work, and a living wage. They shall also participate in
policy and decision-making processes affecting their
j) "Region III" covers the provinces of Bataan,
rights and benefits as may be provided by law.
Bulacan, Nueva Ecija, Pampanga, Tarlac, and
Zambales and the cities of Angeles, Cabanatuan,
The State shall promote the principle of shared Olongapo, Palayan and San Jose;
responsibility between workers and employers and
the preferential use of voluntary modes in settling
k) "Region IV" covers the provinces of Aurora,
disputes, including conciliation, and shall enforce
Batangas, Cavite, Laguna, Marinduque, Occidental
their mutual compliance therewith to foster industrial
Mindoro, Palawan, Quezon, Rizal and Romblon and
peace.
the cities of Batangas, Cavite, Lipa, Lucena, Puerto
Princesa, San Pablo, Tagaytay and Trece Martires;
The State shall regulate the relations between
workers and employers, recognizing the right of labor
l) "Department" refers to the Department of Labor
to its just share in the fruits of production and the
and Employment;
right of enterprises to reasonable returns to
investments, and to expansion and growth.
m) "Secretary" means the Secretary of Labor and
Employment;
RULE VII
Wages n) "Basic Wage" means all remuneration or earnings
paid by an employer to a worker for services
rendered on normal working days and hours but does
SECTION 1. Definition of Terms. As used in this Rules
not include cost-of-living allowances, profit sharing

payments, premium payments, 13th month pay or
other monetary benefits which are not considered as
a) "Act" means Republic Act No. 6727; part of or integrated into the regular salary of the
workers on the date the Act became effective."
b) "Commission" means the National Wages and
Productivity Commission; o) "Statutory Minimum Wage" is the lowest wage
fixed by law that an employer can pay his workers;
c) "Board" means the Regional Tripartite Wages and
Productivity Board; p) "Wage Distortion" means a situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
d) "Agriculture" refers to all farming activities in all
quantitative differences in wage or salary rates
its branches and includes among others, the
between and among employee groups in an
cultivation and tillage of the soil, production,
establishment as to effectively obliterate the
cultivation, growing and harvesting of any
distinctions embodied in such wage structure based
agricultural or horticultural commodities, dairying,
on skills, length of service, or other logical bases of
raising of livestock or poultry, the culture of fish and
differentiation;
other aquatic products in farms or ponds, and any
activities performed by a farmer or on a farm as an
incident to or in conjunction with such farming q) "Capitalization" means paid-up capital, in the case
operations, but does not include the manufacturing of a corporation, and total invested capital, in the
and/or processing of sugar, coconut, abaca, tobacco, case of a partnership or single proprietorship.
pineapple, aquatic or other farm products;
CHAPTER I
e) "Plantation Agricultural Enterprise" is one engaged Wage Increase
in agriculture within an area of more than 24
hectares in a locality and/or which employs at least
SECTION 1. Coverage. — The wage increase
20 workers. Any other agricultural enterprise shall be
prescribed under the Act shall apply to all workers
considered as "Non-Plantation Agricultural
and employees in the private sector regardless of
Enterprises";

Duman / Labor I / Prof. Battad / Page 91
their position, designation or status, and irrespective (i) P3,257.50 — where the workers and employees
of the method by which their wages are paid, except: work everyday, including premium payments for
Sundays or rest days, special days and regular
holidays.
a) Household or domestic helpers, including family
drivers and workers in the personal service of
another; (ii) P3,041.67 — where the workers and employees
do not work but considered paid on rest days, special
days and regular holidays.
b) Workers and employees in retail/service
establishments regularly employing not more than
10 workers, when exempted from compliance with (iii) P2,616.67 — where the workers and employees
the Act, for a period fixed by the Commission/Boards do not work and are not considered paid on Sundays
in accordance with Section 4 (c) of the Act and or rest days.
Section 15, Chapter 1 of these Rules;
(iv) P2,183.33 — where the workers and employees
c) Workers and employees in new business do not work and are not considered paid on
enterprises outside the National Capital Region and Saturdays and Sundays or rest days.
export processing zones for a period of not more
than two or three years, as the case may be, from
c) Workers and employees who, prior to July 1, 1989,
the start of operations when exempted in accordance
were receiving a basic wage of more than P100.00
with Section 5 of the Act and Section 15, Chapter I of
per day or its monthly equivalent, are not by law
these Rules;
entitled to the wage increase provided under the Act.
They may however, receive wage increases through
d) Workers and employees receiving a basic wage of the correction of wage distortions in accordance with
more than P100.00 per day. Section 16, Chapter I of these Rules.

SECTION 2. Effectivity. — The Act takes effect on July SECTION 5. Daily Statutory Minimum Wage Rates. —
1, 1989, 15 days following its complete publication in The daily minimum wage rates of workers and
two newspapers of general circulation on June 15, employees shall be as follows:
1989 pursuant to Section 15 thereof.
Sector/Industry Under Under
SECTION 3. Amount of Minimum Wage Increase. — R. A. 6640 R. A. 6727
Effective July 1, 1989, the daily statutory minimum (Effective (Effective
wage rates of covered workers and employees shall Dec. 14, July 1,
be increased as follows: 1987) 1989)

a) P25.00 for those in the National Capital Region; A. NATIONAL CAPITAL REGION

b) P25.00 for those outside the National Capital Non-Agriculture P64.00 P89.00
Region, except for the following:
Agriculture
P20.00 for those in plantation agricultural enterprises Plantation 54.00 79.00
with an annual gross sales of less than P5 million in
the fiscal year immediately preceding the effectivity
Non-Plantation 43.50 68.50
of the Act;

Cottage/Handicraft
P15.00 for those in the following enterprises:
Employing more than 30
workers 52.00 77.00
1. Non-plantation agriculture
Employing not more than
2. Cottage/handicraft 30 workers 50.00 75.00

3. Retail/Service regularly employing not more than Private Hospitals
10 workers With bed capacity of more
than 100 64.00 89.00
4. Business enterprises with a capitalization of not
more than P500,000 and employing not more than With bed capacity of 100
20 workers. or less 60.00 85.00

SECTION 4. When Wage Increase Due Other Workers. Retail/Service
— a) All workers and employees who, prior to July 1, Employing more than 15
1989, were already receiving a basic wage above the workers 64.00 89.00
statutory minimum wage rates provided under
Republic Act 6640 but not over P100.00 per day shall
Employing 11 to 15
receive a wage increase equivalent to that provided
workers 60.00 85.00
in the preceding Section.

Employing not more than
b) Those receiving not more than the following
10 workers 43.00 68.00
monthly basic wage rates prior to July 1, 1989 shall
be deemed covered by the preceding subsection:
B. OUTSIDE NATIONAL CAPITAL REGION

Duman / Labor I / Prof. Battad / Page 92
Non-Agriculture 64.00 89.00 Municipalities and Cities
w/ population of not more
than 150,000
Agriculture
Plantation with annual gross
sales of P5M or more 54.00 79.00 Employing more than 10
workers 60.00
75.00
Plantation with annual gross
sales of less than P5M 54.00 74.00
SECTION 6. Suggested Formula in Determining the
Equivalent Monthly Statutory Minimum Wage Rates.
Non-plantation 43.50 58.50
— Without prejudice to existing company practices,
agreements or policies, the following formula may be
Cottage/Handicraft used as guides in determining the equivalent
Employing more than monthly statutory minimum wage rates:
30 workers 52.00 67.00
a) For those who are required to work everyday
Employing not more including Sundays or rest days, special days and
than 30 workers 50.00 65.00 regular holidays:

Private Hospitals 60.00 85.00 Equivalent Applicable daily wage rate (ADR) x 390.90
days
Retail/Service
Cities w/ population of more Monthly = ———————————————————
than 150,000
Rate (EMR) 12
Employing more than
15 workers 64.00 89.00
Where 390.90 days =

Employing 11 to 15 workers 60.00 85.00
302 days Ordinary working days

Employing not more than
20 days 10 regular holidays x 200%
10 workers 43.00 58.00

66.30 days 51 rest days x 130%
Sugar Mills

2.60 days 2 special days x 130%
Agriculture

390.90 days Total equivalent number of days.
Plantation w/ annual gross
sales of P5M or more 48.50 73.50
b) For those who do not work but considered paid on
rest days, special days and regular holidays:
Plantation w/ annual gross
ADR x 365 days
sales of less than P5M 48.50 68.50

EMR = ————————
Non-plantation 43.50 58.50

12
Business Enterprises w/ Capitalization
of not more than P500,000 and
employing not more than 20 workers Where 365 days =
Non-Agriculture 64.00 79.00
302 days Ordinary working days
Agriculture Plantation
Products Other than Sugar 54.00 69.00
51 days Rest days

Sugar 48.50
10 days Regular holidays
63.50

2 days Special days
Private Hospitals 60.00 75.00

365 days Total equivalent number of days
Retail/Service
Cities w/ population of more
than 150,000 c) For those who do not work and are not considered
paid on Sundays or rest days:
ADR x 314 days
Employing more than
15 workers 64.00
79.00 EMR = ———————

Employing 11 to 15 workers 60.00 75.00 12

Where 314 days =
Duman / Labor I / Prof. Battad / Page 93
302 days Ordinary working days a) All workers paid by results, including those who
are paid on piecework, takay, pakyaw, or task basis,
shall receive not less than the applicable statutory
10 days Regular holidays
minimum wage rates prescribed under the Act for
the normal working hours which shall not exceed
2 days Special days (If considered eight hours work a day, or a proportion thereof for
work of less than the normal working hours.
paid; If actually worked,
The adjusted minimum wage rates for workers paid
by results shall be computed in accordance with the
this is equivalent to 2.6 days)
following steps:

314 days Total equivalent number of days
1) Amount of increase in AMW - Previous AMW x 100
= % Increase;
d) For those who do not work and are not considered
paid on Saturdays or rest days:
2) Existing rate/piece x % increase = increase in
ADR x 262 days
rate/piece;

EMR = ———————
3) Existing rate/piece + increase in rate/piece =
Adjusted rate/piece.
12
Where AMW is the applicable minimum wage rate.
Where 262 days =
b) The wage rates of workers who are paid by results
250 days Ordinary working days shall continue to be established in accordance with
Article 101 of the Labor Code, as amended and its
implementing regulations.
10 days Regular holidays

SECTION 10. Wages of Special Groups of Workers. —
2 days Special days (If considered paid; If actually
Wages of apprentices, learners and handicapped
workers shall in no case be less than 75 percent of
worked, this is equivalent to 2.6 days) the applicable statutory minimum wage rates.

262 days Total equivalent number of days All recognized learnership and apprenticeship
agreements entered into before July 1, 1989 shall be
considered as automatically modified insofar as their
Note: For workers whose rest days fall on Sundays,
wage clauses are concerned to reflect the increases
the number of rest days in a year is reduced from 52
prescribed under the Act.
to 51 days, the last Sunday of August being a regular
holiday under Executive Order No. 201. For purposes
of computation, said holiday, although still a rest day SECTION 11. Application to Contractors. — In the
for them, is included in the ten regular holidays. For case of contracts for construction projects and for
workers whose rest days do not fall on Sundays, the security, janitorial and similar services, the
number of rest days is 52 days, as there are 52 prescribed wage increases shall be borne by the
weeks in a year. principals or clients of the construction/service
contractors and the contract shall be deemed
amended accordingly. In the event, however, that the
Nothing herein shall be considered as authorizing the
principal or client fails to pay the prescribed wage
reduction of benefits granted under existing
rates, the construction/service contractor shall be
agreements or employer practices/policies.
jointly and severally liable with his principal or client.

SECTION 7. Basis of Minimum Wages Rates. — The
SECTION 12. Application to Private Educational
statutory minimum wage rules prescribed under the
Institution. — Private educational institutions which
Act shall be for the normal working hours, which shall
increased tuition fees beginning school year 1989-
not exceed eight hours work a day.
1990 shall comply with the P25.00 per day wage
increase prescribed under the Act effective as
SECTION 8. Creditable Wage Increase. — follows:

a) No wage increase shall be credited as compliance a) In cases where the tuition fee increase was
with the increases prescribed under the Act unless effected before the effectivity of the Act, the wage
expressly provided under collective bargaining increase shall take effect only July 1, 1989.
agreements; and, such wage increase was granted
not earlier than April 1, 1989 but not later than July
b) In cases where the tuition fee increase was
1, 1989. Where the wage increase granted is less
effected on or after the effectivity of the Act, the
than the prescribed increase under the Act, the
wage increase shall take effect not later than the
employer shall pay the difference.
date the school actually increased tuition but in the
latter case, such wage increase may not be made
b) Anniversary wage increase provided in collective retroactive in July 1, 1989.
agreements, merit wage increase, and those
resulting from the regularization or promotion of
Beginning school year 1990-1991, all schools shall
employees shall not be credited as compliance
implement the wage increase regardless of whether
thereto.
or not they have actually increased tuition fees.

SECTION 9. Workers Paid by Results. —
Duman / Labor I / Prof. Battad / Page 94
SECTION 13. Mobile and Branch Workers. — The The NLRC shall conduct continuous hearings and
statutory minimum wage rates of workers, who by decide any dispute arising from wage distortions
the nature of their work have to travel, shall be those within twenty calendar days from the time said
applicable in the domicile or head office of the dispute is formally submitted to it for arbitration. The
employer. pendency of a dispute arising from a wage distortion
shall not in any way delay the applicability of the
increases in the wage rates prescribed under the Act.
The minimum wage rates of workers working in
branches or agencies of establishments in or outside
the National Capital Region shall be those applicable Any issue involving wage distortion shall not be a
in the place where they are stationed. ground for a strike/lockout.

SECTION 14. Transfer of Personnel. — The transfer of SECTION 17. Complaints for Non-Compliance. —
personnel to areas outside the National Capital Complaints for non-compliance with the wage
Region shall not be a valid ground for the reduction increases prescribed under the Act shall be filed with
of the wage rates being enjoyed by the workers prior the Regional Offices of the Department having
to such transfer. The workers transferred to the jurisdiction over the workplace and shall be the
National Capital Region shall be entitled to the subject of enforcement proceedings under Articles
minimum wage rate applicable therein. 128 and 129 of the Labor Code, as amended.

SECTION 15. Exemptions. — SECTION 18. Conduct of inspection by the
Department. — The Department shall conduct
inspections of establishments, as often as necessary,
a) The following establishments may be exempted
to determine whether the workers are paid the
from compliance with the wage increase prescribed
prescribed wage rates and other benefits granted by
under the Act:
law or any Wage Order. In the conduct of inspection
in unionized companies, Department inspectors shall
1) Retail/Service establishments regularly employing always be accompanied by the president or other
not more than 10 workers upon application with and responsible officer of the recognized bargaining unit
as determined by the appropriate Board in or of any interested union. In the case of non-
accordance with applicable guidelines to be issued unionized establishments, a worker representing the
by the Commission. workers in the said company shall accompany the
inspector.
2) New business enterprises that may be established
outside the National Capital Region and export The worker's representative shall have the right to
processing zones from July 1, 1989 to June 30, 1993, submit his own findings to the Department and to
whose operation or investments need initial testify on the same if he does not concur with the
assistance may be exempted for not more than three findings of the labor inspector.
years from the start of operations, subject to
guidelines to be issued by the Secretary in
SECTION 19. Payment of Wages. — Upon written
consultation with the Department of Trade and
petition of the majority of the workers and
Industry and the Department of Agriculture.
employees concerned, all private establishments,
companies, businesses and other entities with at
New business enterprises in Region III (Central least twenty workers and located within one
Luzon) and Region IV (Southern Tagalog) may be kilometer radius to a commercial, savings or rural
exempted for two years only from start of operations, bank, shall pay the wages and other benefits of their
except those that may be established in the workers through any of said banks, within the period
provinces of Palawan, Oriental Mindoro, Occidental and in the manner and form prescribed under the
Mindoro, Marinduque, Romblon, Quezon and Aurora, Labor Code as amended.
which may also be exempted for not more than three
years from the start of operations.
SECTION 20. Duty of Bank. — Whenever applicable
and upon request of concerned worker or union, the
b) Whenever an application for exemption has been bank through which wages and other benefits are
duly filed with the appropriate office in the paid issue a certification of the record of payment of
Department/Board, action by the Regional Office of said wages and benefits of a particular worker or
the Department on any complaints for alleged non- workers for a particular payroll period.
compliance with the Act shall be deferred pending
resolution of the applicant for exemption.
CHAPTER II
The National Wages and Productivity Commission
c) In the event that the application for exemption is and Regional Tripartite Wages and Productivity
not granted, the workers and employees shall Boards
receive the appropriate compensation due them as
provided for under the Act plus interest of one
SECTION 1. Commission. — The National Wages and
percent per month retroactive to July 1, 1989 or the
Productivity Commission created under the Act shall
start of operations whichever is applicable.
hold office in the National Capital Region. The
Commission shall be attached to the Department for
SECTION 16. Effects on Existing Wage Structure. — policy and program coordination.
Where the application of the wage increase
prescribed herein results in distortions in the wage
SECTION 2. Powers and Functions of the Commission.
structure within an establishment which gives rise to
— The Commission shall have the following powers
a dispute therein, such dispute shall first be settled
and functions:
voluntarily between the parties. In the event of a
deadlock, such dispute shall be finally resolved
through compulsory arbitration by the regional a) To act as the national consultative and advisory
arbitration branch of the National Labor Relations body to the President of the Philippines and Congress
Commission (NLRC) having jurisdiction over the on matters relating to wages, incomes and
workplace. productivity;
Duman / Labor I / Prof. Battad / Page 95
b) To formulate policies and guidelines on wages, SECTION 5. Regional Tripartite Wages and
incomes and productivity improvement at the Productivity Boards. — The Regional Wages and
enterprise, industry and national levels; Productivity Boards created under the Act in all
regions, including autonomous regions as may be
established by law, shall hold offices in areas where
c) To prescribe rules and guidelines for the
the Regional Offices of the Department are located.
determination of appropriate minimum wage and
productivity measures at the regional, provincial or
industry levels; SECTION 6. Powers and Functions of the Boards. —
The Boards shall have the following powers and
functions:
d) To review regional wage levels set by the Regional
Tripartite Wages and Productivity Board to determine
if these are in accordance with prescribed guidelines a) To develop plans, programs and projects relative
and national development plans; to wages, incomes and productivity improvement for
their respective regions;
e) To undertake studies, researches and surveys
necessary for the attainment of its functions and b) To determine and fix minimum wage rates
objectives, and to collect and compile data and applicable in their region, provinces or industries
periodically disseminate information on wages and therein and to issue the corresponding wage orders,
productivity and other related information, including, subject to guidelines issued by the Commission;
but not limited to, employment, cost-of-living, labor
costs, investments and returns;
c) To undertake studies, researches, and surveys
necessary for the attainment of their functions,
f) To review plans and programs of the Regional objectives and programs, and to collect and compile
Tripartite Wages and Productivity Boards to data on wages, incomes, productivity and other
determine whether these are consistent with national related information and periodically disseminate the
development plans; same;

g) To exercise technical and administrative d) To coordinate with the other Boards as may be
supervision over the Regional Tripartite Wages and necessary to attain the policy and intention of the
Productivity Boards; Labor Code;

h) To call, from time to time, a national tripartite e) To receive, process and act on applications for
conference of representatives of government, exemption from prescribed wage rates as may be
workers and employers for the consideration of provided by law or any Wage Order; and
measures to promote wage rationalization and
productivity; and
f) To exercise such other powers and functions as
may be necessary to carry out their mandate under
i) To exercise such powers and functions as may be the Labor Code.
necessary to implement this Act.
Implementation of the plans, programs and projects
SECTION 3. Composition of the Commission. — The of the Boards shall be through the respective
Commission shall be composed of the Secretary as Regional Offices of the Department, provided,
ex-officio Chairman, the Director General of the however, that the Boards shall have technical
National Economic and Development Authority supervision over the Regional Office of the
(NEDA) as ex-officio Vice-Chairman and two Department with respect to the implementation of
members each from workers and employers sectors these plans, programs and projects.
who shall be appointed by the President for a term of
five years upon recommendation of the Secretary.
SECTION 7. Compositions of the Boards. — Each
The recommendees shall be selected from the lists of
Board shall be composed of the Regional Director of
nominees submitted by the workers' and employers'
the Department as Chairman, the Regional Directors
sectors. The Executive Director of the Commission
of the National Economic and Development Authority
Secretariat shall be also a member of the
(NEDA) and Department of Trade and Industry (DTI)
Commission.
as Vice-Chairmen and two members each of workers
and employers sectors who shall be appointed by the
The members of the Commission representing labor President for a term of five years upon the
and management shall have the same rank, recommendation of the Secretary. The
emoluments, allowances and other benefits as those recommendees shall be selected from the list of
prescribed by law for labor and management nominees submitted by the workers and employers
representatives in the Employees' Compensation sectors.
Commission.
Each Board shall be assisted by a Secretariat.
SECTION 4. Commission Secretariat. — The
Commission shall be assisted by a Secretariat to be
SECTION 8. Authority to Organize and Appoint
headed by an Executive Director and two Deputy
Personnel. — The Chairman of the Commission shall
Directors who shall be appointed by the President
organize such units and appoint the necessary
upon recommendation of the Secretary.
personnel of the Commission and Board Secretaries,
subject to pertinent laws, rules and regulations.
The Executive Director shall have the rank of a
Department Assistant Secretary, while the Deputy
CHAPTER III
Directors that of a Bureau Director. The Executive
Minimum Wage Determination
Director and Deputy Directors shall receive the
corresponding salary, benefits and other emoluments
of the positions. SECTION 1. Regional Minimum Wages. — The
minimum wage rates for agricultural and non-

Duman / Labor I / Prof. Battad / Page 96
agricultural workers and employees in every region Order unless the person appealing such order files
shall be those prescribed by the Boards which shall in with the Commission an undertaking with a surety or
no case be lower than the statutory minimum wage sureties in such amount as may be fixed by the
rates. These wage rates may include wages by Commission.
industry, province or locality as may be deemed
necessary by the Boards.
SECTION 7. Wage Distortions. — Where the
application of any wage increase resulting from a
SECTION 2. Standards/Criteria for Minimum Wage Wage Order issued by any Board results in distortions
Fixing. — The regional minimum wages to be in the wage structure within an establishment, the
established by the Boards shall be as nearly employer and the union shall negotiate to correct the
adequate as is economically feasible to maintain the distortions using the grievance procedure under their
minimum standards of living necessary for the collective bargaining agreement. If it remains
health, efficiency and general well-being of the unresolved, it shall be decided through voluntary
workers within the framework of the national arbitration ten calendar days from the time the
economic and social development programs. In the dispute was referred for voluntary arbitration, unless
determination of regional minimum wages, the otherwise agreed by the parties in writing.
Boards, shall, among other relevant factors, consider
the following:
Where there are no collective agreements or
recognized labor unions, the employer and workers
a) The demand for living wages; shall endeavor to correct the wage distortion. Any
dispute arising therefrom shall be settled through the
National Conciliation and Mediation Board and if it
b) Wage adjustment vis-a-vis the consumer price
remains unresolved after ten calendar days of
index;
conciliation, it shall be referred to the appropriate
branch of the National Labor Relations Commission
c) The cost of living and changes or increases (NLRC). The NLRC shall conduct continuous hearings
therein; and decide the dispute within twenty calendar days
from the time said dispute is submitted for
compulsory arbitration.
d) The needs of workers and their families;

The pendency of a dispute arising from a wage
e) The need to induce industries to invest in
distortion shall not in any way delay the applicability
countryside;
of any wage increase prescribed pursuant to the
provisions of law or Wage Order.
f) Improvements in standards of living;
SECTION 8. Non-Diminution of Benefits. — Nothing in
g) The prevailing wage levels; the Act and in these Rules shall be construed to
reduce any existing laws, decrees, issuances,
executive orders, and/or under any contract or
h) Fair return of the capital invested and capacity to
agreement between the workers and employers.
pay of employers;

SECTION 9. Prohibition Against Injunction. — No
i) Effects on employment generation and family
preliminary or permanent injunction or temporary
income; and
restraining order may be issued by any court,
tribunal or other entity against any proceedings
j) The equitable distribution of income and wealth before the Commission or Boards.
along the imperatives of economic and social
development.
SECTION 10. Penal Provisions. — Any person,
corporation trust, firm, partnership, association or
SECTION 3. Wage Order. — Whenever conditions in entity which refuses or fails to pay any of the
the region so warrant, the Board shall investigate prescribed increases or adjustments in the wage
and study all pertinent facts; and, based on rates made in accordance with the Act shall be
standards and criteria prescribed herein, shall punished by a fine not exceeding P25,000 and/or
determine whether a Wage Order should be issued. imprisonment of not less than one year nor more
than two years: Provided, that any person convicted
under the Act shall not be entitled to the benefits
In the performance of its wage determining
provided for under the Probation Law.
functions, the Board shall conduct public hearings
and consultations giving notices to employees' and
employers' groups, provincial, city and municipal If the violation is committed by a corporation, trust or
officials and other interested parties. firm, partnership, association or any other entity, the
penalty of imprisonment shall be imposed upon the
entity's responsible officers, including, but not limited
SECTION 4. Effectivity of Wage Order. — Any Wage
to, the president, vice-president, chief executive
Order issued by the Board shall take effect 15 days
officer, general manager, managing director or
after its complete publication in at least one
partner.
newspaper of general circulation in the region.

SECTION 11. Registration/Reporting Requirement. —
SECTION 5. Appeal to the Commission. — Any party
Any person, company, corporation, partnership or
aggrieved by the Wage Order issued by the Board
any other entity engaged in business shall submit
may file an appeal with the Commission within ten
annually a verified itemized listing of their labor
calendar days from the publication of the Order. The
component to the appropriate Board and the National
Commission shall decide the appeal within sixty
Statistics Office not later than January 31 of each
calendar days from the date of filing.
year, starting on January 31, 1990 in accordance with
the form to be prescribed by the Commission. The
SECTION 6. Effect of Appeal. — The filing of the listing shall specify the names, salaries and wages of
appeal shall not suspend the effectivity of the Wage their workers and employees below the managerial
Duman / Labor I / Prof. Battad / Page 97
level including learners, apprentices and RULE VIII
disabled/handicapped workers. Payment of Wages

CHAPTER IV SECTION 1. Manner of wage payment. — As a
Transitory Provisions general rule, wages shall be paid in legal tender and
the use of tokens, promissory notes, vouchers,
coupons, or any other form alleged to represent legal
SECTION 1. Abolition of the National Wages Council
tender is absolutely prohibited even when expressly
and the National Productivity Commission. — The
requested by the employee.
National Wages Council created under Executive
Order No. 614 and the National Productivity
Commission created under Executive Order No. 615 SECTION 2. Payment by check. — Payment of wages
are abolished. All properties, records, equipment, by bank checks, postal checks or money orders is
buildings, facilities, and other assets, liabilities and allowed where such manner of wage payment is
appropriations of and belonging to the customary on the date of the effectivity of the Code,
abovementioned offices, as well as other matters where it is so stipulated in a collective agreement, or
pending herein, shall be transferred to the where all of the following conditions are met:
Commission. All personnel of the above abolished
offices shall continue to function in a hold-over
(a) There is a bank or other facility for encashment
capacity and shall be preferentially considered for
within a radius of one (1) kilometer from the
appointments to or placements in the
workplace;
Commission/Boards.

(b) The employer or any of his agents or
Any official or employee separated from the service
representatives does not receive any pecuniary
as a result of the abolition of offices pursuant to the
benefit directly or indirectly from the arrangement;
Act shall be entitled to appropriate separation pay of
one month salary for every year of service and/or
retirement and other benefits accruing to them under (c) The employees are given reasonable time during
existing laws. In lieu thereof, at the option of the banking hours to withdraw their wages from the bank
employee, he shall be preferentially considered for which time shall be considered as compensable
employment in the government or in any of its hours worked if done during working hours; and
subdivisions, instrumentalities, or agencies, including
government owned or controlled corporations and
(d) The payment by check is with the written consent
their subsidiaries.
of the employees concerned if there is no collective
agreement authorizing the payment of wages by
SECTION 2. Interim Processing of Applications for bank checks.
Exemption and Submission of Reports. — Pending the
operationalization of the Commission and Boards, the
SECTION 3. Time of payment. — (a) Wages shall be
National Wages Council shall, in the interim, receive
paid not less than once every two (2) weeks or twice
and process applications for exemption subject to
a month at intervals not exceeding sixteen (16) days,
guidelines to be issued by the Secretary, in
unless payment cannot be made with such regularity
accordance with Section 11 of the Act.
due to force majeure or circumstances beyond the
employer's control in which case the employer shall
Reports of establishments on their labor component, pay the wages immediately after such force majeure
including wages and salaries of their workers or circumstances have ceased.
prescribed under the Act, shall be submitted to the
National Wages Council through the Regional Offices
(b) In case of payment of wages by results involving
of the Department.
work which cannot be finished in two (2) weeks,
payment shall be made at intervals not exceeding
SECTION 3. Funding Requirement. — The funds sixteen days in proportion to the amount of work
necessary to carry out the provisions of the Act shall completed. Final settlement shall be made
be taken from the Compensation and Organization immediately upon completion of the work.
Adjustment Fund, the Contingent Fund, and other
savings under Republic Act No. 6688, otherwise
SECTION 4. Place of payment. — As a general rule,
known as the General Appropriations Act of 1989, or
the place of payment shall be at or near the place of
from any unappropriated funds of the National
undertaking. Payment in a place other than the work
Treasury; Provided, that the funding requirements
place shall be permissible only under the following
necessary to implement the Act shall be included in
circumstances:
the annual General Appropriations Act for the
succeeding years.
(a) When payment cannot be effected at or near the
place of work by reason of the deterioration of peace
SECTION 4. Repealing Clause. — All laws, orders,
and order conditions, or by reason of actual or
issuances, rules and regulations or parts thereof
impending emergencies caused by fire, flood,
inconsistent with the provisions of the Act and this
epidemic or other calamity rendering payment
Rules are hereby repealed, amended or modified
thereat impossible;
accordingly. If any provision or part of the Act and
this Rules, or the application thereof to any person or
circumstance is held invalid or unconstitutional, the (b) When the employer provides free transportation
remainder of the Act and these Rules or the to the employees back and forth; and
application of such provision or part thereof to other
persons or circumstance shall not be affected
(c) Under any other analogous circumstances;
thereby.
Provided, That the time spent by the employees in
collecting their wages shall be considered as
SECTION 5. Effectivity. — These rules shall take effect compensable hours worked;
on July 1, 1989.

Duman / Labor I / Prof. Battad / Page 98
(d) No employer shall pay his employees in any bar, (1) Does not have substantial capital or investment
night or day club, drinking establishment, massage in the form of tools, equipment, machineries, work
clinic, dance hall, or other similar places or in places premises and other materials; and
where games are played with stakes of money or
things representing money except in the case of
(2) The workers recruited and placed by such person
persons employed in said places.
are performing activities which are directly related to
the principal business or operations of the employer
SECTION 5. Direct payment of wages. — Payment of in which workers are habitually employed.
wages shall be made direct to the employee entitled
thereto except in the following cases:
(b) Labor-only contracting as defined herein is hereby
prohibited and the person acting as contractor shall
(a) Where the employer is authorized in writing by be considered merely as an agent or intermediary of
the employee to pay his wages to a member of his the employer who shall be responsible to the workers
family; in the same manner and extent as if the latter were
directly employed by him.
(b) Where payment to another person of any part of
the employee's wages is authorized by existing law, (c) For cases not falling under this Rule, the Secretary
including payments for the insurance premiums of of Labor and Employment shall determine through
the employee and union dues where the right to appropriate orders whether or not the contracting
check-off has been recognized by the employer in out of labor is permissible in the light of the
accordance with a collective agreement or circumstances of each case and after considering the
authorized in writing by the individual employees operating needs of the employer and the rights of
concerned; or the workers involved. In such case, he may prescribe
conditions and restrictions to insure the protection
and welfare of the workers.
(c) In case of death of the employee as provided in
the succeeding Section.
SECTION 10. Payment of wages in case of
bankruptcy. — Unpaid wages earned by the
SECTION 6. Wages of deceased employee. — The
employees before the declaration of bankruptcy or
payment of the wages of a deceased employee shall
judicial liquidation of the employer's business shall
be made to his heirs without the necessity of
be given first preference and shall be paid in full
intestate proceedings. When the heirs are of age,
before other creditors may establish any claim to a
they shall execute an affidavit attesting to their
share in the assets of the employer.
relationship to the deceased and the fact that they
are his heirs to the exclusion of all other persons. In
case any of the heirs is a minor, such affidavit shall SECTION 11. Attorney's fees. — Attorney's fees in
be executed in his behalf by his natural guardian or any judicial or administrative proceedings for the
next of kin. Upon presentation of the affidavit to the recovery of wages shall not exceed 10 percent of the
employer, he shall make payment to the heirs as amount awarded. The fees may be deducted from
representative of the Secretary of Labor and the total amount due the winning party.
Employment.
SECTION 12. Non-interference in disposal of wages.
SECTION 7. Civil liability of employer and contractors. — No employer shall limit or otherwise interfere with
— Every employer or indirect employer shall be the freedom of any employee to dispose of his wages
jointly and severally liable with his contractor or sub- and no employer shall in any manner oblige any of
contractor for the unpaid wages of the employees of his employees to patronize any store or avail of the
the latter. Such employer or indirect employer may services offered by any person.
require the contractor or sub-contractor to furnish a
bond equal to the cost of labor under contract on
SECTION 13. Wages deduction. — Deductions from
condition that the bond will answer for the wages
the wages of the employees may be made by the
due the employees should the contractor or
employer in any of the following cases:
subcontractor, as the case may be, fail to pay the
same.
(a) When the deductions are authorized by law,
including deductions for the insurance premiums
SECTION 8. Job Contracting. — There is job
advanced by the employer in behalf of the employee
contracting permissible under the Code if the
as well as union dues where the right to check-off
following conditions are met:
has been recognized by the employer or authorized
in writing by the individual employee himself.
(a) The contractor carries on an independent
business and undertakes the contract work on his
(b) When the deductions are with the written
own account under his own responsibility according
authorization of the employees for payment to the
to his own manner and method, free from the control
third person and the employer agrees to do so;
and direction of his employer or principal in all
Provided, That the latter does not receive any
matters connected with the performance of the work
pecuniary benefit, directly or indirectly, from the
except as to the results thereof; and
transaction.

(b) The contractor has substantial capital or
SECTION 14. Deduction for loss or damage. — Where
investment in the form of tools, equipment,
the employer is engaged in a trade, occupation or
machineries, work premises, and other materials
business where the practice of making deductions or
which are necessary in the conduct of his business.
requiring deposits is recognized to answer for the
reimbursement of loss or damage to tools, materials,
SECTION 9. Labor-only contracting. — (a) Any person or equipment supplied by the employer to the
who undertakes to supply workers to an employer employee, the employer may make wage deductions
shall be deemed to be engaged in labor-only or require the employees to make deposits from
contracting where such person: which deductions shall be made, subject to the
following conditions:
Duman / Labor I / Prof. Battad / Page 99
(a) That the employee concerned is clearly shown to service and persons working in their respective
be responsible for the loss or damage; homes in needle work or in any cottage industry
duly registered in accordance with law.
(b) That the employee is given reasonable
opportunity to show cause why deduction should not
be made; • Philippine Fisheries Development Authority v.
NLRC, 213 SCRA 621 (1992)
(c) That the amount of such deduction is fair and
reasonable and shall not exceed the actual loss or
damage; and

(d) That the deduction from the wages of the
employee does not exceed 20 percent of the
employee's wages in a week.

1. Minimum Wage, Art. 99; Consti., Art. XIII,
Sec. 3

MINIMUM WAGE RATES

ART. 99. Regional minimum wages. - The minimum
wage rates for agricultural and non-agricultural
employees and workers in each and every region of
the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards. (As
amended by Section 3, Republic Act No. 6727, June
9, 1989).

Art XIII, Section 3. The State shall afford full
protection to labor, local and overseas, organized
and unorganized, and promote full employment and
equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, b. Rules
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be 1) Definition
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in
policy and decision-making processes affecting their • Chavez v. NLRC, supra
rights and benefits as may be provided by law.
2) No Work, No Pay (A fair day’s wage for a fair
day’s labor)
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling • Aklan Electric Corp., Inc. v. NLRC, 323 SCRA 259
disputes, including conciliation, and shall enforce
(2000)
their mutual compliance therewith to foster industrial
peace.

The State shall regulate the relations between
workers and employers, recognizing the right of labor
to its just share in the fruits of production and the
right of enterprises to reasonable returns to
investments, and to expansion and growth.

a. Coverage, Arts. 97 (b) (c) (e), 98

ART. 97. Definitions. - As used in this Title:

(b) "Employer" includes any person acting directly
or indirectly in the interest of an employer in
relation to an employee and shall include the
government and all its branches, subdivisions and
instrumentalities, all government-owned or
controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
3) Equal Pay for Work of Equal Value
(c) "Employee" includes any individual employed by
an employer.
• International School Alliance of Educators v.
Quisumbing, supra
e) "Employ" includes to suffer or permit to work.

ART. 98. Application of Title. - This Title shall not
apply to farm tenancy or leasehold, domestic
Duman / Labor I / Prof. Battad / Page 100
• Bankard Employers Union v. NLRC, 423 SCRA
148 (2004)

2) Facilities and
Supplements/Allowances

• Millares v. NLRC & PICOP, 305 SCRA 500 (1999)

4) Form: Agreement for
Compensation of Services

• Arms Taxi v. NLRC, 219 SCRA 306 (1993)

3) Cash Wage/Commission
c. Minimum Wage

1) Determination of Compliance with Minimum
• Songco v. NLRC, 183 SCRA 610 (1990)
Wage

• Iran v. NLRC, 289 SCRA 433 (1998)

Duman / Labor I / Prof. Battad / Page 101
4) Gratuity and Salary/Wages,
Difference

• Plastic Town Center corp. v. NLRC, 172 SCRA 580
(1989)

• Boie Takeda v. De la Serna, 228 SCRA 329 (1993)

5) Effect on Benefits
• Philippine Duplicators v. NLRC, 241 SCRA 380
• Davao Fruits Corporation v. Associated Labor
(1995)
Union, 225 SCRA 562 (1993)

Duman / Labor I / Prof. Battad / Page 102
amended, is hereby amended and Articles 120, 121,
122, 123, 124, 126 and 127 are hereby incorporated
into Presidential Decree No. 442, as amended, to
read as follows:

"Art. 99. Regional Minimum Wages. - The minimum
wage rates for agricultural and non-agricultural
employees and workers in each and every region of
the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards."

"Art. 120. Creation of the National Wages and
Productivity Commission. - There is hereby created a
2. Wage Fixing Machinery National Wages and Productivity Commission,
hereinafter referred to as the Commission, which shall
Reference: Wage Rationalization Act (RA
6727); Art. 120-127; Omnibus Rules, Book III, Rule IX be attached to the Department of Labor and
Employment (DOLE) for policy and program
Republic of the Philippines coordination."
Congress of the Philippines
Metro Manila "Art. 121. Powers and Functions of the
Second Regular Session Commission. - The Commission shall have the
Begun and held in Metro Manila, on Monday, the following powers and functions:
twenty-
fifth day of July, nineteen hundred and eighty-eight (a) To act as the national consultative and advisory
body to the President of the Philippines and Congress
[REPUBLIC ACT NO. 6727] on matters relating to wages, incomes and
productivity;
AN ACT TO RATIONALIZE WAGE POLICY
DETERMINATION BY ESTABLISHING THE (b) To formulate policies and guidelines on wages,
MECHANISM AND PROPER STANDARDS
incomes and productivity improvement at the
THEREFOR, AMENDING FOR THE PURPOSE enterprise, industry and national levels;
ARTICLE 99 OF, AND INCORPORATING ARTICLES
120, 121, 122, 123, 124, 126 AND 127 INTO,
PRESIDENTIAL DECREE NO. 442, AS AMENDED, (c) To prescribe rules and guidelines for the
OTHERWISE KNOWN AS THE LABOR CODE OF determination of appropriate minimum wage and
THE PHILIPPINES, FIXING NEW WAGE RATES, productivity measures at the regional, provincial or
PROVIDING WAGE INCENTIVES FOR INDUSTRIAL industry levels;
DISPERSAL TO THE COUNTRYSIDE, AND FOR
OTHER PURPOSES (d) To review regional wage levels set by the Regional
Tripartite Wages and Productivity Boards to determine
Be it enacted by the Senate and House of if these are in accordance with prescribed guidelines
Representatives of the Philippines in Congress and national development plans;
assembled:
(e) To undertake studies, researches and surveys
Sec. 1. This Act shall be known as the "Wage necessary for the attainment of its functions and
Rationalization Act." objectives, and to collect and compile data and
periodically disseminate information on wages and
productivity and other related information, including,
Sec. 2. It is hereby declared the policy of the State but not limited to, employment, cost-of-living, labor
to rationalize the fixing of minimum wages and to
costs, investments and returns;
promote productivity-improvement and gain-sharing
measures to ensure a decent standard of living for the
workers and their families; to guarantee the rights of (f) To review plans and programs of the Regional
labor to its just share in the fruits of production; to Tripartite Wages and Productivity Boards to determine
enhance employment generation in the countryside whether these are consistent with national
through industry dispersal; and to allow business and development plans;
industry reasonable returns on investment, expansion
and growth. (g) To exercise technical and administrative
supervision over the Regional Tripartite Wages and
The State shall promote collective bargaining as Productivity Boards;
the primary mode of setting wages and other terms
and conditions of employment; and, whenever (h) To call, from time to time, a national tripartite
necessary, the minimum wage rates shall be adjusted conference of representatives of government, workers
in a fair and equitable manner, considering existing and employers for the consideration of measures to
regional disparities in the cost of living and other promote wage rationalization and productivity; and
socio-economic factors and the national economic
and social development plans.
(i) To exercise such powers and functions as may be
necessary to implement this Act.
Sec. 3. In line with the declared policy under this
Act, Article 99 of Presidential Decree No. 442, as
Duman / Labor I / Prof. Battad / Page 103
"The Commission shall be composed of the (e) To receive, process and act on applications for
Secretary of Labor and Employment as ex-officio exemption from prescribed wage rates as may be
chairman, the Director-General of the National provided by law or any Wage Order; and
Economic and Development Authority (NEDA) as ex-
officio vice-chairman, and two (2) members each from (f) To exercise such other powers and functions as
workers and employers sectors who shall be may be necessary to carry out their mandate under
appointed by the President of the Philippines upon this Code.
recommendation of the Secretary of Labor and
Employment to be made on the basis of the list of
nominees submitted by the workers and employers "Implementation of the plans, programs and
sectors, respectively, and who shall serve for a term projects of the Regional Boards referred to in the
of five (5) years. The Executive Director of the second paragraph, letter (a) of this Article, shall be
Commission Secretariat shall also be a member of through the respective regional offices of the
the Commission." Department of Labor and Employment within their
territorial jurisdiction; Provided, however, That the
Regional Boards shall have technical supervision over
"The Commission shall be assisted by a Secretariat the regional office of the Department of Labor and
to be headed by an Executive Director and two (2) Employment with respect to the implementation of
Deputy Directors, who shall be appointed by the said plans, programs and projects.
President of the Philippines, upon recommendation of
the Secretary of Labor and Employment."
"Each Regional Board shall be composed of the
Regional Director of the Department of Labor and
"The Executive Director shall have the same rank, Employment as chairman, the Regional Directors of
salary, benefits and other emoluments as that of a the National Economic and Development Authority
Department Assistant Secretary, while the Deputy and Department of Trade and Industry as vice-
Directors shall have the same rank, salary, benefits chairmen and two (2) members each from workers
and other emoluments as that of a Bureau Director. and employers sectors who shall be appointed by the
The members of the Commission representing labor President of the Philippines, upon recommendation of
and management shall have the same rank, the Secretary of Labor and Employment, to be made
emoluments, allowances and other benefits as those on the basis of the list of nominees submitted by the
prescribed by law for labor and management workers and employers sectors, respectively, and who
representatives in the Employees' Compensation shall serve for a term of five (5) years.
Commission."
"Each Regional Board to be headed by its chairman
"Art. 122. Creation of Regional Tripartite Wages shall be assisted by a Secretariat."
and Productivity Boards. - There is hereby created
Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all "Art. 123. Wage Order. - Whenever conditions in
regions, including autonomous regions as may be the region so warrant, the Regional Board shall
established by law. The Commission shall determine investigate and study all pertinent facts; and, based
the offices/headquarters of the respective Regional on the standards and criteria herein prescribed, shall
Boards. proceed to determine whether a Wage Order should
be issued.
"The Regional Boards shall have the following
powers and functions in their respective territorial Any such Wage Order shall take effect after fifteen
jurisdiction: (15) days from its complete publication in at least one
(l) newspaper of general circulation in the region.
(a) To develop plans, programs and projects relative
to wages, incomes and productivity improvement for "In the performance of its wage-determining
their respective regions; functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees'
and employers' groups, provincial, city and municipal
(b) To determine and fix minimum wage rates officials and other interested parties.
applicable in their region, provinces or industries
therein and to issue the corresponding wage orders,
subject to guidelines issued by the Commission; "Any party aggrieved by the Wage Order issued by
the Regional Board may appeal such order to the
Commission within ten (l0) calendar days from the
(c) To undertake studies, researches, and surveys publication of such order. It shall be mandatory for the
necessary for the attainment of their functions, Commission to decide such appeal within sixty (60)
objectives and programs, and to collect and compile calendar days from the filing thereof.
data on wages, incomes, productivity and other
related information and periodically disseminate the
same; "The filing of the appeal does not operate to stay
the order unless the person appealing such order
shall file with the Commission an undertaking with a
(d) To coordinate with the other Regional Boards as surety or sureties satisfactory to the Commission for
may be necessary to attain the policy and intention of the payment to the employees affected by the order of
this Code; the corresponding increase, in the event such order is
affirmed."

Duman / Labor I / Prof. Battad / Page 104
"Art. 124. Standards/Criteria for Minimum Wage days from the time said dispute was referred to
Fixing. The regional minimum wages to be voluntary arbitration.
established by the Regional Board shall be as nearly
adequate as is economically feasible to maintain the "In cases where there are no collective agreements
minimum standards of living necessary for the health, or recognized labor unions, the employers and
efficiency and general well-being of the employees workers shall endeavor to correct such distortions.
within the framework of the national economic and Any dispute arising therefrom shall be settled through
social development program. In the determination of the National Conciliation and Mediation Board and, if
such regional minimum wages, the Regional Board it remains unresolved after ten (10) calendar days of
shall, among other relevant factors, consider the conciliation, shall be referred to the appropriate
following: branch of the National Labor Relations Commission
(NLRC). It shall be mandatory for the NLRC to
(a) The demand for living wages; conduct continuous hearings and decide the dispute
within twenty (20) calendar days from the time said
(b) Wage adjustment vis-à-vis the consumer price dispute is submitted for compulsory arbitration.
index;
"The pendency of a dispute arising from a wage
(c) The cost of living and changes or increases distortion shall not in any way delay the applicability of
therein; any increase in prescribed wage rates pursuant to the
provisions of law or Wage Order.
(d) The needs of workers and their families;

(e) The need to induce industries to invest in the "As used, herein, a wage distortion shall mean a
countryside; situation where an increase in prescribed wage rates
results in the elimination or severe contraction of
(f) Improvements in standards of living; intentional quantitative differences in wage or salary
rates between and among employee groups in an
(g) The prevailing wage levels; establishment as to effectively obliterate the
distinctions embodied in such wage structure based
(h) Fair return of the capital invested and capacity to on skills, length of service, or other logical bases of
pay of employers; differentiation.

(i) Effects on employment generation and family "All workers paid by result, including those who are
income; and paid on piecework, takay, pakyaw or task basis, shall
receive not less than the prescribed wage rates per
(j) The equitable distribution of income and wealth eight (8) hours work a day, or a proportion thereof for
along the imperatives of economic and social working less than eight (8) hours.
development.
"All recognized learnership and apprenticeship
"The wages prescribed in accordance with the agreements shall be considered automatically
provisions of this Title shall be the standard prevailing modified insofar as their wage clauses are concerned
minimum wages in every region. These wages shall to reflect the prescribed wage rates."
include wages varying with industries, provinces or
localities if in the judgment of the Regional Board "Art. 126. Prohibition Against Injunction. - No
conditions make such local differentiation proper and preliminary or permanent injunction or temporary
necessary to effectuate the purpose of this Title. restraining order may be issued by any court, tribunal
or other entity against any proceedings before the
"Any person, company, corporation, partnership or Commission or the Regional Boards."
any other entity engaged in business shall file and
register annually with the appropriate Regional Board, "Art. 127. Non-Diminution of Benefits. - No Wage
Commission and the National Statistics Office an Order issued by any Regional Board shall provide for
itemized listing of their labor component, specifying wage rates lower than the statutory minimum wage
the names of their workers and employees below the rates prescribed by Congress."
managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under
the terms prescribed in the employment contracts, Sec. 4. (a) Upon the effectivity of this Act, the
and their corresponding salaries and wages. statutory minimum wage rates of all workers and
employees in the private sector, whether agricultural
or non-agricultural, shall be increased by twenty-five
"Where the application of any prescribed wage pesos (P25.00) per day, except that workers and
increase by virtue of a law or Wage Order issued by employees in plantation agricultural enterprises
any Regional Board results in distortions of the wage outside of the National Capital Region (NCR) with an
structure within an establishment, the employer and annual gross sales of less than five million pesos
the union shall negotiate to correct the distortions. (P5,000,000.00) in the preceding year shall be paid
Any dispute arising from wage distortions shall be an increase of twenty pesos (P20.00), and except
resolved through the grievance procedure under their further that workers and employees of
collective bargaining agreement and, if it remains cottage/handicraft industries, non-plantation
unresolved, through voluntary arbitration. Unless agricultural enterprises, retail/service establishments
otherwise agreed by the parties in writing, such regularly employing not more than ten (10) workers,
dispute shall be decided by the voluntary arbitrator or and business enterprises with a capitalization of not
panel of voluntary arbitrators within ten (10) calendar more than five hundred thousand pesos
Duman / Labor I / Prof. Battad / Page 105
(P500,000.00) and employing not more than twenty between the parties and in the event of a deadlock,
(20) employees, which are located or operating the same shall be finally resolved through compulsory
outside the NCR, shall be paid only an increase of arbitration by the regional arbitration branch of the
fifteen pesos (P15.00): Provided, That those already National Labor Relations Commission (NLRC) having
receiving above the minimum wage rates up to one jurisdiction over the workplace.
hundred pesos (P100.00) shall also receive an
increase of twenty-five pesos (P25.00) per day, and It shall be mandatory for the NLRC to conduct
except that the workers and employees mentioned in continuous hearings and decide any dispute arising
the first exception clause of this section shall also be under this Section within twenty(20) calendar days
paid only an increase of twenty-pesos (P20.00), and from the time said dispute is formally submitted to it
except further that those employees enumerated in for arbitration. The pendency of a dispute arising from
the second exception clause of this Section shall also a wage distortion shall not in any way delay the
be paid only an increase of fifteen pesos (P15.00): applicability of the increases in the wage rates
Provide, further, That the appropriate Regional Board prescribed under this Section.
is hereby authorized to grant additional increases to
the workers and employees mentioned in the
exception clauses of this Section if, on the basis of its Sec. 5. Within a period of four (4) years from the
determination pursuant to Article 124 of the Labor effectivity of this Act and without prejudice to
Code such increases are necessary. collective bargaining negotiations or agreements or
other employment contracts between employers and
workers, new business enterprises that may be
(b) The increase of twenty-five pesos (P25.00) established outside the NCR and export processing
prescribed under this Section shall apply to all zones whose operation or investments need initial
workers and employees entitled to the same in private assistance as may be determined by the Department
educational institutions as soon as they have of Labor and Employment in consultation with the
increased or are granted authority to increase their Department of Trade and Industry or the Department
tuition fees during school year 1989-1990. Otherwise, of Agriculture, as the case may be shall be exempt
such increase shall be so applicable not later than the from the application of this Act for not more than three
opening of the next school year beginning 1990. (3) years from the start of their operations: Provided,
That such new business enterprises established in
(c) Exempted from the provisions of this Act are Region III (Central Luzon) and Region IV (Southern
household or domestic helpers and persons Tagalog) shall be exempt from such increases only for
employed in the personal service of another, including two (2) years from the start of their operations, except
family drivers. those established in the Provinces of Palawan,
Oriental Mindoro, Occidental Mindoro, Marinduque,
Retail/service establishments regularly employing Romblon, Quezon and Aurora, which shall enjoy such
not more than ten (10) workers may be exempted exemption for not more than three (3) years from the
from the applicability of this Act upon application with start of their operations.
and as determined by the appropriate Regional Board
in accordance with the applicable rules and Sec. 6. In the case of contracts for construction
regulations issued by the Commission. Whenever an projects and for security, janitorial and similar
application for exemption has been duly filed with the services, the prescribed increases in the wage rates
appropriate Regional Board, action on any complaint of the workers shall be borne by the principals or
for alleged non-compliance with this Act shall be clients of the construction/service contractors and the
deferred pending resolution of the application for contract shall be deemed amended accordingly. In the
exemption by the appropriate Regional Board. event, however, that the principal or client fails to pay
the prescribed wage rates, the construction/service
In the event that applications for exemptions are contractor shall be jointly and severally liable with his
not granted, employees shall receive the appropriate principal or client.
compensation due them as provided for by this Act
plus interest of one percent (1%) per month Sec. 7. Upon written petition of the majority of the
retroactive to the effectivity of this Act. employees or workers concerned, all private
establishments, companies, businesses, and other
(d) If expressly provided for and agreed upon in the entities with twenty five (25) or more employees and
collective bargaining agreements, all increases in the located within one (1) kilometer radius to a
daily basic wage rates granted by the employers three commercial, savings or rural bank shall pay the
(3) months before the effectivity of this Act shall be wages and other benefits of their employees through
credited as compliance with the increases in the wage any of said banks and within the period for payment of
rates prescribed herein, provided that, where such wages fixed by Presidential Decree No. 442, as
increases are less than the prescribed increases in amended, otherwise known as the Labor Code of the
the wage rates under this Act, the employer shall pay Philippines.
the difference. Such increases shall not include
anniversary wage increases, merit wage increases Sec. 8. Whenever applicable and upon request of a
and those resulting from the regularization or concerned worker or union, the bank shall issue a
promotion of employees. certification of the record of payment of wages of a
particular worker or workers for a particular payroll
Where the application of the increases in the wage period.
rate under this Section results in distortions as
defined under existing laws in the wage structure Sec. 9. The Department of Labor and Employment
within an establishment and gives rise to a dispute shall conduct inspections as often as possible within
therein, such dispute shall first be settled voluntarily its manpower constraint of the payroll and other
Duman / Labor I / Prof. Battad / Page 106
financial records kept by the company or business to Sec. 13. The Secretary of Labor and Employment
determine whether the workers are paid the shall promulgate the necessary rules and regulations
prescribed wage rates and other benefits granted by to implement the provisions of this Act.
law or any Wage Order. In unionized companies, the
Department of Labor and Employment inspectors Sec. 14. All laws, orders, issuances, rules and
shall always be accompanied by the president or any regulations or parts thereof inconsistent with the
responsible officer of the recognized bargaining unit provisions of this Act are hereby repealed, amended
of any interested union in the conduct of the or modified accordingly. In any provision or part of this
inspection. In non-unionized companies, Act, or the application thereof to any person or
establishments or businesses, the inspection shall be circumstance, is held invalid or unconstitutional, the
carried out in the presence of a worker representing remainder of this Act or the application of such
the workers in the said company. The workers' provision or part thereof to other persons or
representative shall have the right to submit his own circumstances shall not be affected thereby.
findings to the Department of Labor and Employment
and to testify on the same if he cannot concur with the
findings of the labor inspector. Nothing in this Act shall be construed to reduce any
existing wage rates, allowances and benefits of any
form under existing laws, decrees, issuances,
Sec. 10. The funds necessary to carry out the executive orders, and/or under any contract or
provisions of this Act shall be taken from the agreement between the workers and employers.
Compensation and Organizational Adjustment Fund,
the Contingent Fund, and other savings under
Republic Act No. 6688, otherwise known as the Sec. 15. This Act shall take effect fifteen (15) days
General Appropriations Act of 1989, or from any after its complete publication in the Official Gazette or
unappropriated funds of the National Treasury: in at least two (2) national newspapers of general
Provided, That the funding requirements necessary to circulation, whichever comes earlier.
implement this Act shall be included in the annual
General Appropriations Act for the succeeding years.
WAGE STUDIES, WAGE
Sec. 11. The National Wages Council created AGREEMENTS
under Executive Order No. 614 and the National AND WAGE DETERMINATION
Productivity Commission created under Executive ART. 120. Creation of National Wages and
Order No. 615 are hereby abolished. All properties, Productivity Commission. - There is hereby created a
records, equipment, buildings, facilities, and other National Wages and Productivity Commission,
assets, liabilities and appropriations of and belonging hereinafter referred to as the Commission, which
to the abovementioned offices, as well as other shall be attached to the Department of Labor and
Employment (DOLE) for policy and program
matters pending therein, shall be transferred to the
coordination. (As amended by Republic Act No. 6727,
Commission. All personnel of the above abolished June 9, 1989).
offices shall continue to function in a holdover
capacity and shall be preferentially considered for
appointments to or placement in the Commission. ART. 121. Powers and functions of the Commission. -
The Commission shall have the following powers and
functions:
Any official or employee separated from the service
as a result of the abolition of offices pursuant to this (a) To act as the national consultative and advisory
Act shall be entitled to appropriate separation pay and body to the President of the Philippines and Congress
retirement and other benefits accruing to them under on matters relating to wages, incomes and
existing laws. In lieu thereof, at the option of the productivity;
employee, he shall be preferentially considered for
employment in the government or in any of its (b) To formulate policies and guidelines on wages,
subdivisions, instrumentalities, or agencies, including incomes and productivity improvement at the
government-owned or controlled corporations and enterprise, industry and national levels;
their subsidiaries.
(c) To prescribe rules and guidelines for the
Sec. 12. Any person, corporation, trust, firm, determination of appropriate minimum wage and
partnership, association or entity which refuses or productivity measures at the regional, provincial, or
fails to pay any of the prescribed increases or industry levels;
adjustments in the wage rates made in accordance
with this Act shall be punished by a fine not exceeding (d) To review regional wage levels set by the Regional
twenty-five thousand pesos (P25,000.00) and/or Tripartite Wages and Productivity Boards to
imprisonment of not less than one (1) year nor more determine if these are in accordance with prescribed
than two (2) years: Provided, That any person guidelines and national development plans;
convicted under this Act shall not be entitled to the
benefits provided for under the Probation Law. (e) To undertake studies, researches and surveys
necessary for the attainment of its functions and
objectives, and to collect and compile data and
If the violation is committed by a corporation, trust periodically disseminate information on wages and
or firm, partnership, association or any other entity, productivity and other related information, including,
the penalty of imprisonment shall be imposed upon but not limited to, employment, cost-of-living, labor
the entity's responsible officers, including, but not costs, investments and returns;
limited to, the president, vice president, chief
executive officer, general manager, managing director (f) To review plans and programs of the Regional
or partner. Tripartite Wages and Productivity Boards to
Duman / Labor I / Prof. Battad / Page 107
determine whether these are consistent with national (c) To undertake studies, researches, and surveys
development plans; necessary for the attainment of their functions,
objectives and programs, and to collect and compile
data on wages, incomes, productivity and other
(g) To exercise technical and administrative
related information and periodically disseminate the
supervision over the Regional Tripartite Wages and
same;
Productivity Boards;chan robles virtual law library

(d) To coordinate with the other Regional Boards as
(h) To call, from time to time, a national tripartite
may be necessary to attain the policy and intention
conference of representatives of government,
of this Code;
workers and employers for the consideration of
measures to promote wage rationalization and
productivity; and (e) To receive, process and act on applications for
exemption from prescribed wage rates as may be
provided by law or any Wage Order; and
(i) To exercise such powers and functions as may be
necessary to implement this Act.
(f) To exercise such other powers and functions as
may be necessary to carry out their mandate under
The Commission shall be composed of the Secretary
this Code.
of Labor and Employment as ex-officio chairman, the
Director-General of the National Economic and
Development Authority (NEDA) as ex-officio vice- Implementation of the plans, programs, and projects
chairman, and two (2) members each from workers’ of the Regional Boards referred to in the second
and employers’ sectors who shall be appointed by paragraph, letter (a) of this Article, shall be through
the President of the Philippines upon the respective regional offices of the Department of
recommendation of the Secretary of Labor and Labor and Employment within their territorial
Employment to be made on the basis of the list of jurisdiction; Provided, however, That the Regional
nominees submitted by the workers’ and employers’ Boards shall have technical supervision over the
sectors, respectively, and who shall serve for a term regional office of the Department of Labor and
of five (5) years. The Executive Director of the Employment with respect to the implementation of
Commission shall also be a member of the said plans, programs and projects.
Commission.
Each Regional Board shall be composed of the
The Commission shall be assisted by a Secretariat to Regional Director of the Department of Labor and
be headed by an Executive Director and two (2) Employment as chairman, the Regional Directors of
Deputy Directors, who shall be appointed by the the National Economic and Development Authority
President of the Philippines, upon the and the Department of Trade and Industry as vice-
recommendation of the Secretary of Labor and chairmen and two (2) members each from workers’
Employment. and employers’ sectors who shall be appointed by
the President of the Philippines, upon the
recommendation of the Secretary of Labor and
The Executive Director shall have the same rank,
Employment, to be made on the basis of the list of
salary, benefits and other emoluments as that of a
nominees submitted by the workers’ and employers’
Department Assistant Secretary, while the Deputy
sectors, respectively, and who shall serve for a term
Directors shall have the same rank, salary, benefits
of five (5) years.
and other emoluments as that of a Bureau Director.
The members of the Commission representing labor
and management shall have the same rank, Each Regional Board to be headed by its chairman
emoluments, allowances and other benefits as those shall be assisted by a Secretariat. (As amended by
prescribed by law for labor and management Republic Act No. 6727, June 9, 1989).
representatives in the Employees’ Compensation
Commission. (As amended by Republic Act No. 6727,
ART. 123. Wage Order. - Whenever conditions in the
June 9, 1989).
region so warrant, the Regional Board shall
investigate and study all pertinent facts; and based
ART. 122. Creation of Regional Tripartite Wages and on the standards and criteria herein prescribed, shall
Productivity Boards. - There is hereby created proceed to determine whether a Wage Order should
Regional Tripartite Wages and Productivity Boards, be issued. Any such Wage Order shall take effect
hereinafter referred to as Regional Boards, in all after fifteen (15) days from its complete publication
regions, including autonomous regions as may be in at least one (1) newspaper of general circulation in
established by law. The Commission shall determine the region.
the offices/headquarters of the respective Regional
Boards.
In the performance of its wage-determining
functions, the Regional Board shall conduct public
The Regional Boards shall have the following powers hearings/consultations, giving notices to employees’
and functions in their respective territorial and employers’ groups, provincial, city and municipal
jurisdictions: officials and other interested parties.

(a) To develop plans, programs and projects relative Any party aggrieved by the Wage Order issued by
to wages, incomes and productivity improvement for the Regional Board may appeal such order to the
their respective regions; Commission within ten (10) calendar days from the
publication of such order. It shall be mandatory for
the Commission to decide such appeal within sixty
(b) To determine and fix minimum wage rates
(60) calendar days from the filing thereof.
applicable in their regions, provinces or industries
therein and to issue the corresponding wage orders,
subject to guidelines issued by the Commission; The filing of the appeal does not stay the order
unless the person appealing such order shall file with
the Commission, an undertaking with a surety or
sureties satisfactory to the Commission for the
Duman / Labor I / Prof. Battad / Page 108
payment to the employees affected by the order of the union shall negotiate to correct the distortions.
the corresponding increase, in the event such order Any dispute arising from wage distortions shall be
is affirmed. (As amended by Republic Act No. 6727, resolved through the grievance procedure under
June 9, 1989). their collective bargaining agreement and, if it
remains unresolved, through voluntary arbitration.
Unless otherwise agreed by the parties in writing,
ART. 124. Standards/Criteria for minimum wage
such dispute shall be decided by the voluntary
fixing. - The regional minimum wages to be
arbitrators within ten (10) calendar days from the
established by the Regional Board shall be as nearly
time said dispute was referred to voluntary
adequate as is economically feasible to maintain the
arbitration.
minimum standards of living necessary for the
health, efficiency and general well-being of the
employees within the framework of the national In cases where there are no collective agreements or
economic and social development program. In the recognized labor unions, the employers and workers
determination of such regional minimum wages, the shall endeavor to correct such distortions. Any
Regional Board shall, among other relevant factors, dispute arising therefrom shall be settled through the
consider the following: National Conciliation and Mediation Board and, if it
remains unresolved after ten (10) calendar days of
conciliation, shall be referred to the appropriate
branch of the National Labor Relations Commission
(a) The demand for living wages;
(NLRC). It shall be mandatory for the NLRC to
conduct continuous hearings and decide the dispute
(b) Wage adjustment vis-à-vis the consumer price within twenty (20) calendar days from the time said
index; dispute is submitted for compulsory arbitration.

(c) The cost of living and changes or increases The pendency of a dispute arising from a wage
therein; distortion shall not in any way delay the applicability
of any increase in prescribed wage rates pursuant to
the provisions of law or wage order.
(d) The needs of workers and their families;

As used herein, a wage distortion shall mean a
(e) The need to induce industries to invest in the
situation where an increase in prescribed wage rates
countryside;
results in the elimination or severe contraction of
intentional quantitative differences in wage or salary
(f) Improvements in standards of living; rates between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure based
(g) The prevailing wage levels;
on skills, length of service, or other logical bases of
differentiation.
(h) Fair return of the capital invested and capacity to
pay of employers;
All workers paid by result, including those who are
paid on piecework, takay, pakyaw or task basis, shall
(i) Effects on employment generation and family receive not less than the prescribed wage rates per
income; and eight (8) hours of work a day, or a proportion thereof
for working less than eight (8) hours.
(j) The equitable distribution of income and wealth
along the imperatives of economic and social All recognized learnership and apprenticeship
development. agreements shall be considered automatically
modified insofar as their wage clauses are concerned
to reflect the prescribed wage rates. (As amended by
Republic Act No. 6727, June 9, 1989).

The wages prescribed in accordance with the
ART. 125. Freedom to bargain. - No wage order shall
provisions of this Title shall be the standard
be construed to prevent workers in particular firms or
prevailing minimum wages in every region. These
enterprises or industries from bargaining for higher
wages shall include wages varying with industries,
wages with their respective employers. (As amended
provinces or localities if in the judgment of the
by Republic Act No. 6727, June 9, 1989).
Regional Board, conditions make such local
differentiation proper and necessary to effectuate
the purpose of this Title. ART. 126. Prohibition against injunction. – No
preliminary or permanent injunction or temporary
restraining order may be issued by any court,
Any person, company, corporation, partnership or
tribunal or other entity against any proceedings
any other entity engaged in business shall file and
before the Commission or the Regional Boards. (As
register annually with the appropriate Regional
amended by Republic Act No. 6727, June 9, 1989).
Board, Commission and the National Statistics Office,
an itemized listing of their labor component,
specifying the names of their workers and employees ART. 127. Non-diminution of benefits. - No wage order
below the managerial level, including learners, issued by any regional board shall provide for wage
apprentices and disabled/handicapped workers who rates lower than the statutory minimum wage rates
were hired under the terms prescribed in the prescribed by Congress. (As amended by Republic
employment contracts, and their corresponding Act No. 6727, June 9, 1989).
salaries and wages.
RULE IX
Where the application of any prescribed wage Wage Studies and Determination
increase by virtue of a law or wage order issued by
any Regional Board results in distortions of the wage
SECTION 1. Definition of terms. — (a) "Industry" shall
structure within an establishment, the employer and
mean any identifiable group of productive units or
Duman / Labor I / Prof. Battad / Page 109
enterprises, whether operated for profit or not, in connection with industry studies and wage fixing
engaged in similar or allied economic activities in hearings or in aid of the Commission's deliberations.
which individuals are gainfully employed.
SECTION 8. Schedule of hearings and notices. — The
(b) A "branch" of an industry is a work, product or Commission shall prepare a schedule of hearings for
service grouping thereof which can be considered a the reception of evidence necessary for wage fixing
distinct division for wage-fixing purposes. in an industry, including a list of witnesses that it will
invite and the date, time and place of the hearings. A
notice thereof to all sectors of the industry shall be
(c) "Substantial number" shall mean such an
given in the most expeditious manner. It may have
appreciable number of employees in an industry as,
prior consultations with labor and management
in the Commission's opinion, considering all relevant
leaders in the industry for the above purpose.
facts, may require action under Art. 121 of the Code
to effectuate the purposes of wage determination,
regardless of the proportion of such employees to the SECTION 9. Unsolicited testimony. — Persons who
total number of employees in the industry. offer to testify before the Commission shall be heard
only after the Commission is satisfied, upon brief
preliminary examination, that they are in possession
SECTION 2. Wage studies. — The National Wages
of facts relevant to the subject of inquiry. The
Council shall conduct a continuing study of wage
Chairman, or in other cases, the person conducting
rates and other economic conditions in all industries,
the hearing, shall revise the schedule of hearings
agricultural and non-agricultural. The results of such
whenever necessary to achieve logical sequence of
study shall be periodically disseminated to the
testimony.
government, labor and management sectors for their
information and guidance.
SECTION 10. Compulsory processes. — Recourse to
compulsory processes under the Revised
SECTION 3. Wages recommendation. — If after such
Administrative Code to ensure the attendance of
study, the Commission is of the opinion that a
witnesses and/or the production of relevant
substantial number of employees in any given
documentary evidence shall be used only on
industry or branch thereof are receiving wages,
occasions of extreme importance and after other
which although complying with the minimum
means shall have failed, subject to the approval of
provided by law, are less than sufficient to maintain
the Secretary of Labor and Employment.
them in health, efficiency and general well-being,
taking into account, among others, the peculiar
circumstances of the industry and its geographical SECTION 11. Hearings; where, by whom conducted.
location, the Commission shall, with the approval of — Commission hearings may be conducted by the
the Secretary of Labor and Employment, proceed to Commission en banc, or, when authorized by the
determine whether a wage recommendation should Commission, by any member or hearing officer
be issued. designated by the Chairman. The hearings may be
held wherever the industry or branches thereof are
situated; otherwise they shall be held in the Greater
SECTION 4. Criteria for wage fixing. — (a) In addition
Manila Area. The hearings shall be open to the
to the criteria established by Art. 123 of the Code for
public.
minimum wage fixing, the Commission shall
consider, among other factors, social services and
benefits given free to workers and the possible effect SECTION 12. Hearings before single member or
of a given increase in the minimum wage on prices, hearing officer. — Hearings conducted by a duly
money supply, employment, labor mobility and authorized member or hearing officer shall be
productivity, labor organization efficacy, domestic considered as hearings before the Commission. The
and foreign trade, and other relevant indicators of records of such hearings shall be submitted to the
social and economic development. Commission as soon as they are completed,
indicating the time and place of the hearings and the
appearances thereat, together with a brief statement
(b) Where a fair return to capital invested cannot be
of the findings and recommendations of the member
reasonably determined, or where the industry
or hearing officer concerned.
concerned is not operated for profit, its capacity to
pay, taking into account all resources available to it,
shall be considered. SECTION 13. Testimony under oath. — The testimony
of all witnesses shall be made under oath or
affirmation and shall be taken down and transcribed
SECTION 5. Quorum. — Three (3) members of the
by a duly appointed stenographic reporter.
Commission, including its Chairman, shall constitute
a quorum to transact the Commission's business.
SECTION 14. Non-applicability of technical rules. —
The technical rules of evidence applied by the courts
SECTION 6. Commission actions, number of votes
in proceedings at law or equity shall not strictly apply
required. — The votes of at least three (3) members
in any proceedings conducted before the
of the Commission shall be necessary to effect any
Commission.
decision or recommendation it is authorized to issue
under the Code and this rule: Provided, That in the
internal regulation and direction of the functions of SECTION 15. Stipulation of fact. — Stipulations of fact
the Commission's staff including the conduct of may be admitted with respect to any matter at issue
administrative processes and the maintenance of in the proceedings.
proper liaison and coordination with other
organizations, the Chairman shall not need the
SECTION 16. Documentary evidence. — Written
consent of the Commission or any member thereof.
evidence submitted to the Commission or any
member or hearing officer shall be properly marked
SECTION 7. Outside assistance. — The Commission to facilitate identification.
may call upon the assistance and cooperation of any
government agency or official, and may invite any
SECTION 17. Submission of industry-report. — Within
private person or organization to furnish information
sixty (60) working days from the date of the first
Duman / Labor I / Prof. Battad / Page 110
hearing, the Commission shall submit to the b. Agencies in Wage Fixing Machinery
Secretary of Labor and Employment an "Industry
Report" which shall relate in brief the operations that 1) National Wages and Productivity
led thereto, the basic findings of economic facts Commission, RA 6727, Sec. 3; Arts. 120, 121, 126
about the industry and the recommendations made
on the basis thereof.

SECTION 18. Action by the Secretary of Labor and
Employment. — Within thirty (30) working days after
the submission of the "Industry Report," the
Secretary of Labor and Employment shall either
reject or approve the recommendation of the
Commission in accordance with Art. 122 of the Code.
If he approves the recommendation, he shall issue a
Wage Order adopting the same, subject to the
approval of the President of the Philippines,
prescribing the minimum wage or wages for the
industry concerned.

SECTION 19. Wage Order. — The Wage Order shall 2) Regional Tripartite Wages and Productivity
specify the industry or branch to which the minimum Board, RA 6727, Sec. 3; Arts. 122, 126
wages prescribed therein shall apply; Provided, That
no definite rates shall be prescribed for specific job • Nasipit Lumber Co. v. NLRC, 289 SCRA 667
titles in the industry. (1998)

SECTION 20. Varying minimum wages. — To justify
different minimum wages for different localities, the
economic and other conditions found in a particular
locality must not only be more or less uniform therein
but also different from those prevailing in other
localities.

SECTION 21. Publication of Wage Order. — Only such
portions of a Wage Order shall be published as shall
effectively give notice to all interested parties that
such an Order has been issued, the industry affected,
the minimum wages prescribed and the date of its
effectivity.

SECTION 22. Effectivity. — A Wage Order shall
become effective after fifteen (15) days from its
publication as provided in Article 124 of the Code.

SECTION 23. Internal rules of the Commission. —
Subject to the approval of the Secretary of Labor and
Employment, the National Wages Council may issue
rules and regulations governing its internal
procedure.

c. Standards/Criteria for Minimum Wage Fixing, RA
a. Rationale for Wage Rationalization, RA 6727, 6727, Sec. 3; Art. 124
Sec. 2
d. Wage Order, Arts. 123, 124

1) Methods of Fixing
Sec. 2. It is hereby declared the policy of the State to
rationalize the fixing of minimum wages and to
a) Floor Wage method
promote productivity-improvement and gain-sharing
measures to ensure a decent standard of living for
b) Salary – Ceiling Method
the workers and their families; to guarantee the
rights of labor to its just share in the fruits of
production; to enhance employment generation in • Employers Confederation of the Phil. V. National
the countryside through industry dispersal; and to Wage and Productivity Commission, 201 SCRA
allow business and industry reasonable returns on 759 (1991)
investment, expansion and growth.

The State shall promote collective bargaining as the
primary mode of setting wages and other terms and
conditions of employment; and, whenever necessary,
the minimum wage rates shall be adjusted in a fair
and equitable manner, considering existing regional
disparities in the cost of living and other socio-
economic factors and the national economic and
social development plans.

Duman / Labor I / Prof. Battad / Page 111
ART. 202. Erroneous payment. - (a) If the System in
good faith pays income benefit to a dependent who
is inferior in right to another dependent or with
whom another dependent is entitled to share, such
payments shall discharge the System from liability,
unless and until such other dependent notifies the
System of his claim prior to the payments.

(b) In case of doubt as to the respective rights of
rival claimants, the System is hereby empowered to
determine as to whom payments should be made in
accordance with such regulations as the Commission
may approve. If the money is payable to a minor or
incompetent, payment shall be made by the System
to such person or persons as it may consider to be
best qualified to take care and dispose of the minor’s
or incompetent’s property for his benefit.
2) Validity
NCC Art. 1705. The laborer's wages shall be paid in
• Cagayan Sugar Milling Co. v. Secretary, DOLE, legal currency.
284 SCRA 150 (1998)
SECTION 1. Manner of wage payment. — As a
general rule, wages shall be paid in legal tender and
the use of tokens, promissory notes, vouchers,
coupons, or any other form alleged to represent legal
tender is absolutely prohibited even when expressly
requested by the employee.

SECTION 2. Payment by check. — Payment of wages
by bank checks, postal checks or money orders is
allowed where such manner of wage payment is
customary on the date of the effectivity of the Code,
where it is so stipulated in a collective agreement, or
where all of the following conditions are met:

(a) There is a bank or other facility for encashment
within a radius of one (1) kilometer from the
workplace;

(b) The employer or any of his agents or
representatives does not receive any pecuniary
benefit directly or indirectly from the arrangement;

(c) The employees are given reasonable time during
banking hours to withdraw their wages from the bank
which time shall be considered as compensable
3) Wage Distortion hours worked if done during working hours; and

• Prubankers Association v. Prudential Bank & (d) The payment by check is with the written consent
Trust Co., 302 SCRA 74 (1999) of the employees concerned if there is no collective
agreement authorizing the payment of wages by
bank checks.

• Congson v. NLRC, 243 SCRA 260 (1995)

3. Wage Payment and Protection

a. Form of Payment, Art. 202; Civil Code, Art.
1705; Rule VIII, Secs. 1, 2
Duman / Labor I / Prof. Battad / Page 112
(c) Under any other analogous circumstances;
Provided, That the time spent by the employees in
collecting their wages shall be considered as
compensable hours worked;

(d) No employer shall pay his employees in any bar,
night or day club, drinking establishment, massage
clinic, dance hall, or other similar places or in places
where games are played with stakes of money or
things representing money except in the case of
persons employed in said places.
b. Time of Payment, Art. 103, Sec. 3

LC ART. 104. Place of payment. - Payment of wages
shall be made at or near the place of undertaking,
ART. 103. Time of payment. - Wages shall be paid at
except as otherwise provided by such regulations as
least once every two (2) weeks or twice a month at
the Secretary of Labor and Employment may
intervals not exceeding sixteen (16) days. If on
prescribe under conditions to ensure greater
account of force majeure or circumstances beyond
protection of wages.
the employer’s control, payment of wages on or
within the time herein provided cannot be made, the
employer shall pay the wages immediately after such See: Labor Advisory on Payment of Salaries Thru
force majeure or circumstances have ceased. No Automated Teller Machines (ATM)
employer shall make payment with less frequency
than once a month.

The payment of wages of employees engaged to
d. Person to Pay, Art. 105, Secs. 5, 6
perform a task which cannot be completed in two (2)
weeks shall be subject to the following conditions, in
the absence of a collective bargaining agreement or
arbitration award: SECTION 5. Direct payment of wages. — Payment of
wages shall be made direct to the employee entitled
thereto except in the following cases:
(1) That payments are made at intervals not
exceeding sixteen (16) days, in proportion to the
amount of work completed; (a) Where the employer is authorized in writing by
the employee to pay his wages to a member of his
family;
(2) That final settlement is made upon completion of
the work.
(b) Where payment to another person of any part of
the employee's wages is authorized by existing law,
SECTION 3. Time of payment. — (a) Wages shall be
including payments for the insurance premiums of
paid not less than once every two (2) weeks or twice
the employee and union dues where the right to
a month at intervals not exceeding sixteen (16) days,
check-off has been recognized by the employer in
unless payment cannot be made with such regularity
accordance with a collective agreement or
due to force majeure or circumstances beyond the
authorized in writing by the individual employees
employer's control in which case the employer shall
concerned; or
pay the wages immediately after such force majeure
or circumstances have ceased.
(c) In case of death of the employee as provided in
the succeeding Section.
(b) In case of payment of wages by results involving
work which cannot be finished in two (2) weeks,
payment shall be made at intervals not exceeding SECTION 6. Wages of deceased employee. — The
sixteen days in proportion to the amount of work payment of the wages of a deceased employee shall
completed. Final settlement shall be made be made to his heirs without the necessity of
immediately upon completion of the work. intestate proceedings. When the heirs are of age,
they shall execute an affidavit attesting to their
relationship to the deceased and the fact that they
c. Place of Payment, Art. 104, Sec. 4
are his heirs to the exclusion of all other persons. In
case any of the heirs is a minor, such affidavit shall
be executed in his behalf by his natural guardian or
SECTION 4. Place of payment. — As a general rule, next of kin. Upon presentation of the affidavit to the
the place of payment shall be at or near the place of employer, he shall make payment to the heirs as
undertaking. Payment in a place other than the work representative of the Secretary of Labor and
place shall be permissible only under the following Employment.
circumstances:
ART. 105. Direct payment of wages. - Wages shall be
(a) When payment cannot be effected at or near the paid directly to the workers to whom they are due,
place of work by reason of the deterioration of peace except:
and order conditions, or by reason of actual or
impending emergencies caused by fire, flood,
(a) In cases of force majeure rendering such payment
epidemic or other calamity rendering payment
impossible or under other special circumstances to
thereat impossible;
be determined by the Secretary of Labor and
Employment in appropriate regulations, in which
(b) When the employer provides free transportation case, the worker may be paid through another
to the employees back and forth; and person under written authority given by the worker
for the purpose; or

Duman / Labor I / Prof. Battad / Page 113
(b) Where the worker has died, in which case, the operating needs of the employer and the rights of
employer may pay the wages of the deceased worker the workers involved. In such case, he may prescribe
to the heirs of the latter without the necessity of conditions and restrictions to insure the protection
intestate proceedings. The claimants, if they are all and welfare of the workers.
of age, shall execute an affidavit attesting to their
relationship to the deceased and the fact that they
b. Wage Deduction, Art. 113; Rule VIII, Sec. 10
are his heirs, to the exclusion of all other persons. If
any of the heirs is a minor, the affidavit shall be
executed on his behalf by his natural guardian or
next-of-kin. The affidavit shall be presented to the ART. 113. Wage deduction. - No employer, in his own
employer who shall make payment through the behalf or in behalf of any person, shall make any
Secretary of Labor and Employment or his deduction from the wages of his employees, except:
representative. The representative of the Secretary
of Labor and Employment shall act as referee in
(a) In cases where the worker is insured with his
dividing the amount paid among the heirs. The
consent by the employer, and the deduction is to
payment of wages under this Article shall absolve the
recompense the employer for the amount paid by
employer of any further liability with respect to the
him as premium on the insurance;
amount paid.

(b) For union dues, in cases where the right of the
• Bermiso v. Escano, Inc., 105 Phil. 231 (1959)
worker or his union to check-off has been recognized
by the employer or authorized in writing by the
individual worker concerned; and

(c) In cases where the employer is authorized by law
or regulations issued by the Secretary of Labor and
Employment.

SECTION 10. Payment of wages in case of
bankruptcy. — Unpaid wages earned by the
employees before the declaration of bankruptcy or
judicial liquidation of the employer's business shall
be given first preference and shall be paid in full
4. Wage Prohibitions before other creditors may establish any claim to a
share in the assets of the employer.
a. Wage Interference in Disposal of Wages, Art.
112; Rule VIII, Sec. 9

a. Wage Interference in Disposal of Wages, • Apodaca v. NLRC, 172 SCRA 442 (1989)
Art. 112; Rule VIII, Sec. 9

ART. 112. Non-interference in disposal of wages. - No
employer shall limit or otherwise interfere with the
freedom of any employee to dispose of his wages. He
shall not in any manner force, compel, or oblige his
employees to purchase merchandise, commodities or
other property from any other person, or otherwise
make use of any store or services of such employer
or any other person.

SECTION 9. Labor-only contracting. — (a) Any person
who undertakes to supply workers to an employer
shall be deemed to be engaged in labor-only
contracting where such person:

(1) Does not have substantial capital or investment
in the form of tools, equipment, machineries, work
premises and other materials; and

(2) The workers recruited and placed by such person
are performing activities which are directly related to
the principal business or operations of the employer
in which workers are habitually employed.
c. Requirement to make Deposits for Loss or
(b) Labor-only contracting as defined herein is hereby Damage, Art. Arts. 114, 115; Rule VIII, Sec. 11
prohibited and the person acting as contractor shall
be considered merely as an agent or intermediary 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.
ART. 114. Deposits for loss or damage. - No
employer shall require his worker to make deposits
(c) For cases not falling under this Rule, the Secretary from which deductions shall be made for the
of Labor and Employment shall determine through reimbursement of loss of or damage to tools,
appropriate orders whether or not the contracting materials, or equipment supplied by the employer,
out of labor is permissible in the light of the except when the employer is engaged in such
circumstances of each case and after considering the trades, occupations or business where the practice
Duman / Labor I / Prof. Battad / Page 114
of making deductions or requiring deposits is a f. Deduction to Ensure Employment, Art. 117
recognized one, or is necessary or desirable as
determined by the Secretary of Labor and
Employment in appropriate rules and regulations.
ART. 117. Deduction to ensure employment. - It shall
be unlawful to make any deduction from the wages
ART. 115. Limitations. - No deduction from the
of any employee for the benefit of the employer or
deposits of an employee for the actual amount of
his representative or intermediary as consideration of
the loss or damage shall be made unless the
a promise of employment or retention in
employee has been heard thereon, and his
employment.

SECTION 11. Attorney's fees. — Attorney's fees in
any judicial or administrative proceedings for the g. Retaliatory Measures, Art. 118
recovery of wages shall not exceed 10 percent of
the amount awarded. The fees may be deducted ART. 118. Retaliatory measures. - It shall be unlawful
from the total amount due the winning party for an employer to refuse to pay or reduce the wages
responsibility has been clearly shown. and benefits, discharge or in any manner
discriminate against any employee who has filed any
complaint or instituted any proceeding under this
• Dentech Manufacturing Corp. NLRC, 172 SCRA Title or has testified or is about to testify in such
588 (1989) proceedings.

h. False Reporting, Art. 119; Rule X, Sec. 13

ART. 119. False reporting. - It shall be unlawful for
any person to make any statement, report, or record
filed or kept pursuant to the provisions of this Code
knowing such statement, report or record to be false
in any material respect.

SECTION 13. False reporting. — It shall be unlawful
• Five J Taxi v. NLRC, 235 SCRA 556 (1994) for any employer or any person to make any false
statement, report or record on matters required to be
kept or maintained pursuant to the provisions of this
Rule.

i. Keeping of Employee’s Records in a Place other
than the Workplace

• South Motorists Enterprises v. Tosoc, 181 SCRA
386 (1990)

e. Withholding of Wages, Art. 116; Civil Code, Art.
1706

ART. 116. Withholding of wages and kickbacks
prohibited. - It shall be unlawful for any person,
directly or indirectly, to withhold any amount from
the wages of a worker or induce him to give up any
part of his wages by force, stealth, intimidation, j. Garnishment/Execution, Civil Code, Art. 1708
threat or by any other means whatsoever without
the worker’s consent.

NCC Art. 1708. The laborer's wages shall not be
NCC Art. 1706. Withholding of the wages, except subject to execution or attachment, except for debts
for a debt due, shall not be made by the employer. incurred for food, shelter, clothing and medical
attendance.

Duman / Labor I / Prof. Battad / Page 115
• GAA v. Court of Appeals, 140 SCRA 304 (1985) shall constitute an encumbrance on the immovable
or real right:

(3) Claims of laborers, masons, mechanics and other
workmen, as well as of architects, engineers and
contractors, engaged in the construction,
reconstruction or repair of buildings, canals or other
works, upon said buildings, canals or other works;
xxx

Art. 2244. With reference to other property, real and
personal, of the debtor, the following claims or
credits shall be preferred in the order named:

(2) Credits for services rendered the insolvent by
employees, laborers, or household helpers for one
year preceding the commencement of the
proceedings in insolvency; xxx

Art. 1207. The concurrence of two or more creditors
or of two or more debtors in one and the same
• Special Steel Corp. v. Villareal, 434 SCRA 19 obligation does not imply that each one of the former
(2004) has a right to demand, or that each one of the latter
is bound to render, entire compliance with the
prestation. There is a solidary liability only when the
obligation expressly so states, or when the law or the
nature of the obligation requires solidarity. (1137a)

5. Work Preference in the Event of Bankruptcy,
Art. 110; Book III, Rule VIII, Sec. 7; civil Code, Arts.
1207, 2241 (6), 2242 (3), 2244 (2)

• Republic v. Peralta, 150 SCRA 37 (1987)
LC ART. 110. Worker preference in case of
bankruptcy. - In the event of bankruptcy or
liquidation of an employer’s business, his workers
shall enjoy first preference as regards their wages
and other monetary claims, any provisions of law to
the contrary notwithstanding. Such unpaid wages
and monetary claims shall be paid in full before
claims of the government and other creditors may be
paid. (As amended by Section 1, Republic Act No.
6715, March 21, 1989).

IRR SECTION 7. Civil liability of employer and
contractors. — Every employer or indirect employer
shall be jointly and severally liable with his
contractor or sub-contractor for the unpaid wages of
the employees of the latter. Such employer or
indirect employer may require the contractor or sub-
contractor 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.

NCC Art. 2241. With reference to specific movable
property of the debtor, the following claims or liens
shall be preferred:

(6) Claims for laborers' wages, on the goods
manufactured or the work done; xxx
• Manila Banking Corp. v. NLRC, 279 SCRA 602,
621-642 (1997)

Art. 2242. With reference to specific immovable
property and real rights of the debtor, the following
claims, mortgages and liens shall be preferred, and

Duman / Labor I / Prof. Battad / Page 116
establishment when non-compliance with the law or
implementing rules and regulations poses grave and
imminent danger to the health and safety of workers
in the workplace. Within twenty-four hours, a hearing
shall be conducted to determine whether an order for
the stoppage of work or suspension of operations
shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay
the employees concerned their salaries or wages
during the period of such stoppage of work or
suspension of operation.

(d) It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives
issued pursuant to the authority granted under this
Article, and no inferior court or entity shall issue
temporary or permanent injunction or restraining
order or otherwise assume jurisdiction over any case
involving the enforcement orders issued in
accordance with this Article.

(e) Any government employee found guilty of
violation of, or abuse of authority, under this Article
shall, after appropriate administrative investigation,
6. Wage Recovery/Jurisdiction, arts. 128, 129, be subject to summary dismissal from the service.
217, 111; Book III, Rule X, Secs. 1-5
(f) The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep
ART. 128. Visitorial and enforcement power. - (a) The
and maintain such employment records as may be
Secretary of Labor and Employment or his duly
necessary in aid of his visitorial and enforcement
authorized representatives, including labor regulation
powers under this Code.
officers, shall have access to employer’s records and
premises at any time of the day or night whenever
work is being undertaken therein, and the right to ART. 129. Recovery of wages, simple money claims
copy therefrom, to question any employee and and other benefits. - Upon complaint of any
investigate any fact, condition or matter which may interested party, the Regional Director of the
be necessary to determine violations or which may Department of Labor and Employment or any of the
aid in the enforcement of this Code and of any labor duly authorized hearing officers of the Department is
law, wage order or rules and regulations issued empowered, through summary proceeding and after
pursuant thereto. due notice, to hear and decide any matter involving
the recovery of wages and other monetary claims
and benefits, including legal interest, owing to an
(b) Notwithstanding the provisions of Articles 129
employee or person employed in domestic or
and 217 of this Code to the contrary, and in cases
household service or househelper under this Code,
where the relationship of employer-employee still
arising from employer-employee relations: Provided,
exists, the Secretary of Labor and Employment or his
That such complaint does not include a claim for
duly authorized representatives shall have the power
reinstatement: Provided further, That the aggregate
to issue compliance orders to give effect to the labor
money claims of each employee or househelper does
standards provisions of this Code and other labor
not exceed Five thousand pesos (P5,000.00). The
legislation based on the findings of labor
Regional Director or hearing officer shall decide or
employment and enforcement officers or industrial
resolve the complaint within thirty (30) calendar days
safety engineers made in the course of inspection.
from the date of the filing of the same. Any sum thus
The Secretary or his duly authorized representatives
recovered on behalf of any employee or househelper
shall issue writs of execution to the appropriate
pursuant to this Article shall be held in a special
authority for the enforcement of their orders, except
deposit account by, and shall be paid on order of, the
in cases where the employer contests the findings of
Secretary of Labor and Employment or the Regional
the labor employment and enforcement officer and
Director directly to the employee or househelper
raises issues supported by documentary proofs which
concerned. Any such sum not paid to the employee
were not considered in the course of inspection. (As
or househelper because he cannot be located after
amended by Republic Act No. 7730, June 2, 1994).
diligent and reasonable effort to locate him within a
period of three (3) years, shall be held as a special
An order issued by the duly authorized fund of the Department of Labor and Employment to
representative of the Secretary of Labor and be used exclusively for the amelioration and benefit
Employment under this Article may be appealed to of workers.
the latter. In case said order involves a monetary
award, an appeal by the employer may be perfected
Any decision or resolution of the Regional Director or
only upon the posting of a cash or surety bond issued
hearing officer pursuant to this provision may be
by a reputable bonding company duly accredited by
appealed on the same grounds provided in Article
the Secretary of Labor and Employment in the
223 of this Code, within five (5) calendar days from
amount equivalent to the monetary award in the
receipt of a copy of said decision or resolution, to the
order appealed from. (As amended by Republic Act
National Labor Relations Commission which shall
No. 7730, June 2, 1994).
resolve the appeal within ten (10) calendar days from
the submission of the last pleading required or
(c) The Secretary of Labor and Employment may allowed under its rules.chan robles virtual law library
likewise order stoppage of work or suspension of
operations of any unit or department of an

Duman / Labor I / Prof. Battad / Page 117
The Secretary of Labor and Employment or his duly SECTION 2. Enforcement power. — (a) The Regional
authorized representative may supervise the Director in cases where employer relations shall
payment of unpaid wages and other monetary claims exist, shall have the power to order and administer,
and benefits, including legal interest, found owing to after due notice and hearing, compliance with the
any employee or househelper under this Code. (As labor standards provisions of the Code and other
amended by Section 2, Republic Act No. 6715, March labor legislations based on the findings of the Labor
21, 1989). Regulation Officers or Industrial Safety Engineers
(Labor Standard and Welfare Officer) and made in the
course of inspection, and to issue writs of execution
ART. 217. Jurisdiction of the Labor Arbiters and the
to the appropriate authority of the enforcement of his
Commission. - (a) Except as otherwise provided
order. In line with the provisions of Article 128 in
under this Code, the Labor Arbiters shall have
relation to Articles 289 and 290 of the Labor Code as
original and exclusive jurisdiction to hear and decide,
amended in cases, however, where the employer
within thirty (30) calendar days after the submission
contests the findings of the Labor Standards and
of the case by the parties for decision without
Welfare Officers and raises issues which cannot be
extension, even in the absence of stenographic
resolved without considering evidentiary matters
notes, the following cases involving all workers,
that are not verifiable in the normal course of
whether agricultural or non-agricultural:
inspection, the Regional Director concerned shall
indorse the case to the appropriate arbitration
1. Unfair labor practice cases; branch of the National Labor Relations Commission
for adjudication.
2. Termination disputes;
(b) The Regional Director shall give the employer
3. If accompanied with a claim for reinstatement, fifteen (15) days within which to comply with his
those cases that workers may file involving wages, order before issuing a writ of execution. Copy of such
rates of pay, hours of work and other terms and order or writ of execution shall immediately be
conditions of employment; furnished the Secretary of Labor and Employment.

4. Claims for actual, moral, exemplary and other SECTION 3. Enforcement power on health and safety
forms of damages arising from the employer- of workers. — (a) The Regional Director may likewise
employee relations; order stoppage of work or suspension of operations
of any unit or department of an establishment when
non-compliance with the law, safety order or
5. Cases arising from any violation of Article 264 of implementing rules and regulations poses grave and
this Code, including questions involving the legality imminent danger to the health and safety of workers
of strikes and lockouts; and in the workplace.

6. Except claims for Employees Compensation, Social (b) Within 24 hours from issuance of the order of
Security, Medicare and maternity benefits, all other stoppage or suspension, a hearing shall be
claims arising from employer-employee relations, conducted to determine whether the order for the
including those of persons in domestic or household stoppage of work or suspension of operation shall be
service, involving an amount exceeding five lifted or not. The proceedings shall be terminated
thousand pesos (P5,000.00) regardless of whether within seventy-two (72) hours and a copy of such
accompanied with a claim for reinstatement. order or resolution shall be immediately furnished
the Secretary of Labor and Employment. In case the
(b) The Commission shall have exclusive appellate jurisdiction violation is attributable to the fault of the employer,
he shall pay the employees concerned their salaries
over all cases decided by Labor Arbiters. or wages during the period of such stoppage of work
or suspension of operation.

(c) Cases arising from the interpretation or
implementation of collective bargaining agreements SECTION 4. Power to review. — (a) The Secretary of
and those arising from the interpretation or Labor and Employment, at his own initiative or upon
enforcement of company personnel policies shall be request of the employer and/or employee, may
disposed of by the Labor Arbiter by referring the review the order of the Regional Director. The order
same to the grievance machinery and voluntary of the Regional Director shall be immediately final
arbitration as may be provided in said agreements. and executory unless stayed by the Secretary of
(As amended by Section 9, Republic Act No. 6715, Labor and Employment upon posting by the
March 21, 1989). employer of a reasonable cash or surety bond as
fixed by the Regional Director.
ART. 111. Attorney’s fees. - (a) In cases of unlawful
withholding of wages, the culpable party may be (b) In aid of his power of review, the Secretary of
assessed attorney’s fees equivalent to ten percent of Labor and Employment may direct the Bureau of
the amount of wages recovered. Working Conditions to evaluate the findings or orders
of the Regional Director. The decision of the
Secretary of Labor and Employment shall be final and
SECTION 1. Visitorial power. — The Secretary of executory.
Labor and Employment or his duly authorized
representatives, including Labor Regulations Officers SECTION 5. Interference and injunctions prohibited.
or Industrial Safety Engineers, shall have access to — It shall be unlawful for any person or entity to
employer's records and premises at any time of the obstruct, impede, delay or otherwise render
day or night whenever work is being undertaken ineffective the exercise of the enforcement power of
therein, and right to copy therefrom, to question any the Secretary of Labor and Employment, Regional
employee, and to investigate any fact, condition or Director or their duly authorized representatives
matter relevant to the enforcement of any provision pursuant to the authority granted by the Code and its
of the Code and of any labor law, wage order or rules implementing rules and regulations, and no inferior
and regulations issued pursuant thereto. court or entity shall issue temporary or permanent
injunction or restraining order or otherwise assume
Duman / Labor I / Prof. Battad / Page 118
jurisdiction over any case involving the enforcement
orders issued in accordance with the Code. In
addition to the penalties provided for by the Labor
Code, any government employees found guilty of
violation or abuse of authority, shall be subject to the
provisions of Presidential Decree No. 6.

• Cirineo Bowling Plaza v. Gerry Sensing, supra

• Ultra Villa Food Haus v. Geniston, 309 SCRA 17
(1999)

• San Miguel Corporation v. Court of Appeals,
supra
• Guico v. Sec. of Labor, 298 SCRA 667 (1998)

3. Rationale, PD 851, Whereas
H. Thirteenth Month Pay Clauses and LImitations

1. History of the Law WHEREAS, it is necessary to further protect the level
of real wages from the ravage of worldwide inflation;

• Dentech Mfg. Corp. v. NLRC, supra WHEREAS, there has been no increase in the legal
minimum wage rates since 1970;
2. Coverage
WHEREAS, the Christmas season is an opportune
• Archilles Manufacturing Corp. v, NLRC, 244 SCRA time for society to show its concern for the plight of
750 (1995) the working masses so they may properly celebrate
Christmas and New Year.

Section 1. All employers are hereby required to pay
all their employees receiving a basic salary of not
more than P1,000 a month, regardless of the nature
of their employment, a 13th-month pay not later
than December 24 of every year.

Sec. 2. Employers already paying their employees a
13th-month pay or its equivalent are not covered by
this Decree.

Duman / Labor I / Prof. Battad / Page 119
4. Amount and Date of Payment

a. Basic Wage/Commissions

• Boie Takeda v. Dela Serna, Supra
• Iran v. NLRC, supra
d. Diminution
• Honda Philippines Inc. v. Samahan ng Malayang
Manggagawa sa Honda, 460 SCRA 186 (2005) • Davao Fruits Corp. v. Associated Labor Unions,
supra

I. Bonus

1. Nature

• Philippine Duplicators Inc. v. NLRC, 241 SCRA
380 (1995)

b. Substitute Payment

• Framanlis Farms, Inc. v. NLRC, 171 SCRA 87
(1989)

c. 14th Month Pay
2. Definition; When Demandable

• Kamaya Port Hotel v. NLRC, 177 SCRA 160 • Marcos v. NLRC, 248 SCRA 146 (1995)
(1989)

Duman / Labor I / Prof. Battad / Page 120
(c) In any agricultural undertaking at nighttime
unless she is given a period of rest of not less than
nine (9) consecutive hours.

ART. 131. Exceptions. - The prohibitions prescribed by
the preceding Article shall not apply in any of the
• Business Information Systems and Services, Inc. following cases:
v. NLRC, 221 SCRA 9 (1993)Philippine Appliance
Corp. v. Court of Appeals, 430 SCRA 525 (2004) (a) In cases of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disasters or calamity,
to prevent loss of life or property, or in cases of force
majeure or imminent danger to public safety;

(b) In case of urgent work to be performed on
machineries, equipment or installation, to avoid
serious loss which the employer would otherwise
suffer;

(c) Where the work is necessary to prevent serious
loss of perishable goods;

(d) Where the woman employee holds a responsible
position of managerial or technical nature, or where
the woman employee has been engaged to provide
health and welfare services;

(e) Where the nature of the work requires the manual
skill and dexterity of women workers and the same
cannot be performed with equal efficiency by male
workers;

(f) Where the women employees are immediate
members of the family operating the establishment
• American Wire and Cable Daily Rated Employees or undertaking; and
Union v. American Wire and Cable Co., Inc., 457
SCRA 684 (2005)
(g) Under other analogous cases exempted by the
Secretary of Labor and Employment in appropriate
regulations.

ART. 132. Facilities for women. - The Secretary of
Labor and Employment shall establish standards that
will ensure the safety and health of women
employees. In appropriate cases, he shall, by
regulations, require any employer to:

(a) Provide seats proper for women and permit them
to use such seats when they are free from work and
during working hours, provided they can perform
J. Working Conditions for Special Group their duties in this position without detriment to
of Workers efficiency;

1. Women, Arts. 130-138; Omnibus Rules, Book (b) To establish separate toilet rooms and lavatories
III, Rule XII, Sec. 1; Constitution, Arts. II, Sec. 13 & for men and women and provide at least a dressing
XIII, Sec. 14; Convention on the Elimination of All room for women;
Forms of Discrimination Against Women (CEDAW),
Arts. 11-13; ILO Convention Nos. 100 & 111
(c) To establish a nursery in a workplace for the
Chapter I benefit of the women employees therein; and
EMPLOYMENT OF WOMEN
ART. 130. Nightwork prohibition. - No woman, (d) To determine appropriate minimum age and other
regardless of age, shall be employed or permitted or standards for retirement or termination in special
suffered to work, with or without compensation: occupations such as those of flight attendants and
the like.
(a) In any industrial undertaking or branch thereof
between ten o’clock at night and six o’clock in the ART. 133. Maternity leave benefits. - (a) Every
morning of the following day; or employer shall grant to any pregnant woman
employee who has rendered an aggregate service of
(b) In any commercial or non-industrial undertaking at least six (6) months for the last twelve (12)
or branch thereof, other than agricultural, between months, maternity leave of at least two (2) weeks
midnight and six o’clock in the morning of the prior to the expected date of delivery and another
following day; or four (4) weeks after normal delivery or abortion with
full pay based on her regular or average weekly
wages. The employer may require from any woman
Duman / Labor I / Prof. Battad / Page 121
employee applying for maternity leave the ART. 137. Prohibited acts. - (a) It shall be unlawful for
production of a medical certificate stating that any employer:
delivery will probably take place within two weeks.
(1) To deny any woman employee the benefits
(b) The maternity leave shall be extended without provided for in this Chapter or to discharge any
pay on account of illness medically certified to arise woman employed by him for the purpose of
out of the pregnancy, delivery, abortion or preventing her from enjoying any of the benefits
miscarriage, which renders the woman unfit for work, provided under this Code.
unless she has earned unused leave credits from
which such extended leave may be charged.
(2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement due
(c) The maternity leave provided in this Article shall to her pregnancy;
be paid by the employer only for the first four (4)
deliveries by a woman employee after the effectivity
(3) To discharge or refuse the admission of such
of this Code.
woman upon returning to her work for fear that she
may again be pregnant.
ART. 134. Family planning services; incentives for
family planning. - (a) Establishments which are
ART. 138. Classification of certain women workers . -
required by law to maintain a clinic or infirmary shall
Any woman who is permitted or suffered to work,
provide free family planning services to their
with or without compensation, in any night club,
employees which shall include, but not be limited to,
cocktail lounge, massage clinic, bar or similar
the application or use of contraceptive pills and
establishments under the effective control or
intrauterine devices.
supervision of the employer for a substantial period
of time as determined by the Secretary of Labor and
(b) In coordination with other agencies of the Employment, shall be considered as an employee of
government engaged in the promotion of family such establishment for purposes of labor and social
planning, the Department of Labor and Employment legislation.
shall develop and prescribe incentive bonus schemes
to encourage family planning among female workers
RULE XII
in any establishment or enterprise.
Employment of Women and Minors

ART. 135. Discrimination prohibited. - It shall be
SECTION 1. General statement on coverage. — This
unlawful for any employer to discriminate against
Rule shall apply to all employers, whether operating
any woman employee with respect to terms and
for profit or not, including educational, religious and
conditions of employment solely on account of her
charitable institutions, except to the Government and
sex.
to government-owned or controlled corporations and
to employers of household helpers and persons in
The following are acts of discrimination: their personal service insofar as such workers are
concerned.
(a) Payment of a lesser compensation, including
wage, salary or other form of remuneration and Constitution Art. II, Section 13. The State
fringe benefits, to a female employees as against a recognizes the vital role of the youth in nation-building
male employee, for work of equal value; and and shall promote and protect their physical, moral,
spiritual, intellectual, and social well-being. It shall
(b) Favoring a male employee over a female inculcate in the youth patriotism and nationalism, and
employee with respect to promotion, training encourage their involvement in public and civic affairs.
opportunities, study and scholarship grants solely on
account of their sexes. ARTICLE XIII – WOMEN
Section 14. The State shall protect working women
Criminal liability for the willful commission of any by providing safe and healthful working conditions,
unlawful act as provided in this Article or any taking into account their maternal functions, and such
violation of the rules and regulations issued pursuant facilities and opportunities that will enhance their
to Section 2 hereof shall be penalized as provided in
welfare and enable them to realize their full potential
Articles 288 and 289 of this Code: Provided, That the
institution of any criminal action under this provision
in the service of the nation.
shall not bar the aggrieved employee from filing an
entirely separate and distinct action for money
claims, which may include claims for damages and
other affirmative reliefs. The actions hereby
authorized shall proceed independently of each
other. (As amended by Republic Act No. 6725, May
12, 1989).

CEDAW
ART. 136. Stipulation against marriage. - It shall be Article 11
unlawful for an employer to require as a condition of
employment or continuation of employment that a
1. States Parties shall take all appropriate measures
woman employee shall not get married, or to to eliminate discrimination against women in the field
stipulate expressly or tacitly that upon getting of employment in order to ensure, on a basis of
married, a woman employee shall be deemed equality of men and women, the same rights, in
resigned or separated, or to actually dismiss, particular:
discharge, discriminate or otherwise prejudice a (a) The right to work as an inalienable right of all
woman employee merely by reason of her marriage. human beings;

Duman / Labor I / Prof. Battad / Page 122
(b) The right to the same employment opportunities, Article 13
including the application of the same criteria for States Parties shall take all appropriate measures to
selection in matters of employment; eliminate discrimination against women in other areas
of economic and social life in order to ensure, on a
(c) The right to free choice of profession and basis of equality of men and women, the same rights,
employment, the right to promotion, job security and in particular:
all benefits and conditions of service and the right to (a) The right to family benefits;
receive vocational training and retraining, including
apprenticeships, advanced vocational training and (b) The right to bank loans, mortgages and other
recurrent training; forms of financial credit;

(d) The right to equal remuneration, including (c) The right to participate in recreational activities,
benefits, and to equal treatment in respect of work of sports and all aspects of cultural life.
equal value, as well as equality of treatment in the
evaluation of the quality of work;
C100 Equal Remuneration Convention, 1951
(e) The right to social security, particularly in cases of
retirement, unemployment, sickness, invalidity and old Convention concerning Equal Remuneration for Men
age and other incapacity to work, as well as the right and Women Workers for Work of Equal Value (Note:
to paid leave; Date of coming into force: 23:05:1953.)
Convention:C100
Place:Geneva
(f) The right to protection of health and to safety in Session of the Conference:34
working conditions, including the safeguarding of the Date of adoption:29:06:1951
function of reproduction. Subject classification: Equal Remuneration
Subject classification: Women
Subject: Equality of Opportunity and Treatment
2. In order to prevent discrimination against women
on the grounds of marriage or maternity and to ensure
their effective right to work, States Parties shall take
appropriate measures: The General Conference of the International Labour
(a) To prohibit, subject to the imposition of sanctions, Organisation,
dismissal on the grounds of pregnancy or of maternity
leave and discrimination in dismissals on the basis of Having been convened at Geneva by the Governing
marital status; Body of the International Labour Office, and having
met in its Thirty-fourth Session on 6 June 1951, and
(b) To introduce maternity leave with pay or with
comparable social benefits without loss of former Having decided upon the adoption of certain
employment, seniority or social allowances; proposals with regard to the principle of equal
remuneration for men and women workers for work
of equal value, which is the seventh item on the
(c) To encourage the provision of the necessary agenda of the session, and
supporting social services to enable parents to
combine family obligations with work responsibilities
Having determined that these proposals shall take
and participation in public life, in particular through the form of an international Convention,
promoting the establishment and development of a
network of child-care facilities;
adopts this twenty-ninth day of June of the year one
thousand nine hundred and fifty-one the following
(d) To provide special protection to women during Convention, which may be cited as the Equal
pregnancy in types of work proved to be harmful to Remuneration Convention, 1951:
them.
Article 1
3. Protective legislation relating to matters covered in
this article shall be reviewed periodically in the light of For the purpose of this Convention--
scientific and technological knowledge and shall be
revised, repealed or extended as necessary. (a) the term remuneration includes the ordinary,
basic or minimum wage or salary and any additional
Article 12 emoluments whatsoever payable directly or
1. States Parties shall take all appropriate measures indirectly, whether in cash or in kind, by the
to eliminate discrimination against women in the field employer to the worker and arising out of the
of health care in order to ensure, on a basis of worker's employment;
equality of men and women, access to health care
services, including those related to family planning. (b) the term equal remuneration for men and
women workers for work of equal value refers to
rates of remuneration established without
2. Notwithstanding the provisions of paragraph I of
discrimination based on sex.
this article, States Parties shall ensure to women
appropriate services in connection with pregnancy,
confinement and the post-natal period, granting free Article 2
services where necessary, as well as adequate
nutrition during pregnancy and lactation. 1. Each Member shall, by means appropriate to the
methods in operation for determining rates of

Duman / Labor I / Prof. Battad / Page 123
remuneration, promote and, in so far as is consistent Constitution of the International Labour Organisation
with such methods, ensure the application to all shall indicate --
workers of the principle of equal remuneration for
men and women workers for work of equal value.
a) the territories in respect of which the Member
concerned undertakes that the provisions of the
2. This principle may be applied by means of-- Convention shall be applied without modification;

(a) national laws or regulations; b) the territories in respect of which it undertakes
that the provisions of the Convention shall be applied
subject to modifications, together with details of the
(b) legally established or recognised machinery for
said modifications;
wage determination;

c) the territories in respect of which the Convention
(c) collective agreements between employers and
is inapplicable and in such cases the grounds on
workers; or
which it is inapplicable;

(d) a combination of these various means.
d) the territories in respect of which it reserves its
decision pending further consideration of the
Article 3 position.

1. Where such action will assist in giving effect to the 2. The undertakings referred to in subparagraphs (a)
provisions of this Convention measures shall be and (b) of paragraph 1 of this Article shall be deemed
taken to promote objective appraisal of jobs on the to be an integral part of the ratification and shall
basis of the work to be performed. have the force of ratification.

2. The methods to be followed in this appraisal may 3. Any Member may at any time by a subsequent
be decided upon by the authorities responsible for declaration cancel in whole or in part any reservation
the determination of rates of remuneration, or, where made in its original declaration in virtue of
such rates are determined by collective agreements, subparagraph (b), (c) or (d) of paragraph 1 of this
by the partíes thereto. Article.

3. Differential rates between workers which 4. Any Member may, at any time at which the
correspond, without regard to sex, to differences, as Convention is subject to denunciation in accordance
determined by such objective appraisal, in the work with the provisions of Article 9, communicate to the
to be performed shall not be considered as being Director-General a declaration modifying in any other
contrary to the principle of equal remuneration for respect the terms of any former declaration and
men and women workers for work of equal value. stating the present position in respect of such
territories as it may specify.
Article 4
Article 8
Each Member shall co-operate as appropriate with
the employers' and workers' organisations concerned 1. Declarations communicated to the Director-
for the purpose of giving effect to the provisions of General of the International Labour Office in
this Convention. accordance with paragraph 4 or 5 of Article 35 of the
Constitution of the International Labour Organisation
shall indicate whether the provisions of the
Article 5
Convention will be applied in the territory concerned
without modification or subject to modifications;
The formal ratifications of this Convention shall be when the declaration indicates that the provisions of
communicated to the Director-General of the the Convention will be applied subject to
International Labour Office for registration. modifications, it shall give details of the said
modifications.
Article 6
2. The Member, Members or international authority
concerned may at any time by a subsequent
1. This Convention shall be binding only upon those
declaration renounce in whole or in part the right to
Members of the International Labour Organisation
have recourse to any modification indicated in any
whose ratifications have been registered with the
former declaration.
Director-General.

3. The Member, Members or international authority
2. It shall come into force twelve months after the
concerned may, at any time at which this Convention
date on which the ratifications of two Members have
is subject to denunciation in accordance with the
been registered with the Director-General.
provisions of Article 9, communicate to the Director-
General a declaration modifying in any other respect
3. Thereafter, this Convention shall come into force the terms of any former declaration and stating the
for any Member twelve months after the date on present position in respect of the application of the
which its ratification has been registered. Convention.

Article 7 Article 9

1. Declarations communicated to the Director- 1. A Member which has ratified this Convention may
General of the International Labour Office in denounce it after the expiration of ten years from the
accordance with paragraph 2 of Article 35 of the date on which the Convention first comes into force,

Duman / Labor I / Prof. Battad / Page 124
by an act communicated to the Director-General of Article 14
the International Labour Office for registration. Such
denunciation shall not take effect until one year after
The English and French versions of the text of this
the date on which it is registered.
Convention are equally authoritative.

2. Each Member which has ratified this Convention
C111 Discrimination (Employment and
and which does not, within the year following the
Occupation) Convention, 1958
expiration of the period of ten years mentioned in the
preceding paragraph, exercise the right of
denunciation provided for in this Article, will be Convention concerning Discrimination in Respect of
bound for another period of ten years and, Employment and Occupation (Note: Date of coming
thereafter, may denounce this Convention at the into force: 15:06:1960.)
expiration of each period of ten years under the Convention:C111
terms provided for in this Article. Place:Geneva
Session of the Conference:42
Date of adoption:25:06:1958
Article 10
Subject classification: Non-discrimination
(Employment and Occupation)
1. The Director-General of the International Labour Subject classification: Women
Office shall notify all Members of the International Subject: Equality of Opportunity and Treatment
Labour Organisation of the registration of all
ratifications, declarations and denunciations
communicated to him by the Members of the
Organisation. The General Conference of the International Labour
Organisation,
2. When notifying the Members of the Organisation of
the registration of the second ratification Having been convened at Geneva by the Governing
communicated to him, the Director-General shall Body of the International Labour Office, and having
draw the attention of the Members of the met in its Forty-second Session on 4 June 1958, and
Organisation to the date upon which the Convention
will come into force.
Having decided upon the adoption of certain
proposals with regard to discrimination in the field of
Article 11 employment and occupation, which is the fourth item
on the agenda of the session, and
The Director-General of the International Labour
Office shall communicate to the Secretary-General of Having determined that these proposals shall take
the United Nations for registration in accordance with the form of an international Convention, and
Article 102 of the Charter of the United Nations full
particulars of all ratifications, declarations and acts
Considering that the Declaration of Philadelphia
of denunciation registered by him in accordance with
affirms that all human beings, irrespective of race,
the provisions of the preceding articles.
creed or sex, have the right to pursue both their
material well-being and their spiritual development in
Article 12 conditions of freedom and dignity, of economic
security and equal opportunity, and
At such times as may consider necessary the
Governing Body of the International Labour Office Considering further that discrimination constitutes a
shall present to the General Conference a report on violation of rights enunciated by the Universal
the working of this Convention and shall examine the Declaration of Human Rights,
desirability of placing on the agenda of the
Conference the question of its revision in whole or in
adopts this twenty-fifth day of June of the year one
part.
thousand nine hundred and fifty-eight the following
Convention, which may be cited as the
Article 13 Discrimination (Employment and Occupation)
Convention, 1958:
1. Should the Conference adopt a new Convention
revising this Convention in whole or in part, then, Article 1
unless the new Convention otherwise provides--
1. For the purpose of this Convention the term
a) the ratification by a Member of the new revising discrimination includes--
Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
(a) any distinction, exclusion or preference made on
provisions of Article 9 above, if and when the new
the basis of race, colour, sex, religion, political
revising Convention shall have come into force;
opinion, national extraction or social origin, which
has the effect of nullifying or impairing equality of
b) as from the date when the new revising opportunity or treatment in employment or
Convention comes into force this Convention shall occupation;
cease to be open to ratification by the Members.
(b) such other distinction, exclusion or preference
2. This Convention shall in any case remain in force which has the effect of nullifying or impairing
in its actual form and content for those Members equality of opportunity or treatment in employment
which have ratified it but have not ratified the or occupation as may be determined by the Member
revising Convention. concerned after consultation with representative
employers' and workers' organisations, where such
exist, and with other appropriate bodies.

Duman / Labor I / Prof. Battad / Page 125
2. Any distinction, exclusion or preference in respect organisations, where such exist, determine that other
of a particular job based on the inherent special measures designed to meet the particular
requirements thereof shall not be deemed to be requirements of persons who, for reasons such as
discrimination. sex, age, disablement, family responsibilities or
social or cultural status, are generally recognised to
require special protection or assistance, shall not be
3. For the purpose of this Convention the terms
deemed to be discrimination.
employment and occupation include access to
vocational training, access to employment and to
particular occupations, and terms and conditions of Article 6
employment.
Each Member which ratifies this Convention
Article 2 undertakes to apply it to non-metropolitan territories
in accordance with the provisions of the Constitution
of the International Labour Organisation.
Each Member for which this Convention is in force
undertakes to declare and pursue a national policy
designed to promote, by methods appropriate to Article 7
national conditions and practice, equality of
opportunity and treatment in respect of employment
The formal ratifications of this Convention shall be
and occupation, with a view to eliminating any
communicated to the Director-General of the
discrimination in respect thereof.
International Labour Office for registration.

Article 3
Article 8

Each Member for which this Convention is in force
1. This Convention shall be binding only upon those
undertakes, by methods appropriate to national
Members of the International Labour Organisation
conditions and practice--
whose ratifications have been registered with the
Director-General.
(a) to seek the co-operation of employers' and
workers' organisations and other appropriate bodies
2. It shall come into force twelve months after the
in promoting the acceptance and observance of this
date on which the ratifications of two Members have
policy;
been registered with the Director-General.

(b) to enact such legislation and to promote such
3. Thereafter, this Convention shall come into force
educational programmes as may be calculated to
for any Member twelve months after the date on
secure the acceptance and observance of the policy;
which its ratification has been registered.

(c) to repeal any statutory provisions and modify any
Article 9
administrative instructions or practices which are
inconsistent with the policy;
1. A Member which has ratified this Convention may
denounce it after the expiration of ten years from the
(d) to pursue the policy in respect of employment
date on which the Convention first comes into force,
under the direct control of a national authority;
by an act communicated to the Director-General of
the International Labour Office for registration. Such
(e) to ensure observance of the policy in the denunciation shall not take effect until one year after
activities of vocational guidance, vocational training the date on which it is registered.
and placement services under the direction of a
national authority;
2. Each Member which has ratified this Convention
and which does not, within the year following the
(f) to indicate in its annual reports on the application expiration of the period of ten years mentioned in the
of the Convention the action taken in pursuance of preceding paragraph, exercise the right of
the policy and the results secured by such action. denunciation provided for in this Article, will be
bound for another period of ten years and,
thereafter, may denounce this Convention at the
Article 4
expiration of each period of ten years under the
terms provided for in this Article.
Any measures affecting an individual who is
justifiably suspected of, or engaged in, activities
Article 10
prejudicial to the security of the State shall not be
deemed to be discrimination, provided that the
individual concerned shall have the right to appeal to 1. The Director-General of the International Labour
a competent body established in accordance with Office shall notify all Members of the International
national practice. Labour Organisation of the registration of all
ratifications and denunciations communicated to him
by the Members of the Organisation.
Article 5

2. When notifying the Members of the Organisation of
1. Special measures of protection or assistance
the registration of the second ratification
provided for in other Conventions or
communicated to him, the Director-General shall
Recommendations adopted by the International
draw the attention of the Members of the
Labour Conference shall not be deemed to be
Organisation to the date upon which the Convention
discrimination.
will come into force.

2. Any Member may, after consultation with
Article 11
representative employers' and workers'
Duman / Labor I / Prof. Battad / Page 126
The Director-General of the International Labour
Office shall communicate to the Secretary-General of
the United Nations for registration in accordance with
Article 102 of the Charter of the United Nations full
particulars of all ratifications and acts of
denunciation registered by him in accordance with
the provisions of the preceding Articles.
b. Women under the Constitution, Art. II, Sec. 14;
Article 12 Art XIII, Sec 14

• Philippine Association of Service Exporters v.
At such times as it may consider necessary the
Governing Body of the International Labour Office Drilon, 163 SCRA 386 (1988)
shall present to the General Conference a report on
the working of this Convention and shall examine the
desirability of placing on the agenda of the
Conference the question of its revision in whole or in
part.

Article 13

1. Should the Conference adopt a new Convention
revising this Convention in whole or in part, then,
unless the new Convention otherwise provides:

a) the ratification by a Member of the new revising
Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
provisions of Article 9 above, if and when the new
revising Convention shall have come into force;

b) as from the date when the new revising
Convention comes into force, this Convention shall
cease to be open to ratification by the Members.
• Phil. Telegraph and Telephone Co. v. NLRC, 272
2. This Convention shall in any case remain in force SCRA 596 (1997)
in its actual form and content for those Members
which have ratified it but have not ratified the
revising Convention.

Article 14

The English and French versions of the text of this
Convention are equally authoritative.

a. Equality: Formal Equality vs. Substantive
Equality

Readings:

• Bartlett, Katharine, Gender Law, in Duke Journal
of Gender Law and Policy (1994)
• Formal Equality and Substantive Equality in the
Textbook on Gender and the Law by Angela
Harris
• Baldoz, Rosalinda, Job discrimination against
women in the work environment: the Philippine
setting, PLR, Vol. 24, No. 1 (2000).

c. Coverage, Rule XII, Sec. I

Employment of Women and Minors

SECTION 1. General statement on coverage. — This
Rule shall apply to all employers, whether operating
for profit or not, including educational, religious and
charitable institutions, except to the Government and
to government-owned or controlled corporations and
to employers of household helpers and persons in
their personal service insofar as such workers are
concerned.
Duman / Labor I / Prof. Battad / Page 127
(a) Payment of a lesser compensation, including
wage, salary or other form of remuneration and
fringe benefits, to a female employees as against a
male employee, for work of equal value; and
d. Prohibited Acts
(b) Favoring a male employee over a female
1) Night Work/Exception, Art. 130-131
employee with respect to promotion, training
opportunities, study and scholarship grants solely on
ART. 130. Nightwork prohibition. - No woman,
account of their sexes.
regardless of age, shall be employed or permitted or
suffered to work, with or without compensation:
Criminal liability for the willful commission of any
unlawful act as provided in this Article or any
(a) In any industrial undertaking or branch thereof
violation of the rules and regulations issued pursuant
between ten o’clock at night and six o’clock in the
to Section 2 hereof shall be penalized as provided in
morning of the following day; or
Articles 288 and 289 of this Code: Provided, That the
institution of any criminal action under this provision
(b) In any commercial or non-industrial undertaking shall not bar the aggrieved employee from filing an
or branch thereof, other than agricultural, between entirely separate and distinct action for money
midnight and six o’clock in the morning of the claims, which may include claims for damages and
following day; or other affirmative reliefs. The actions hereby
authorized shall proceed independently of each
other. (As amended by Republic Act No. 6725, May
(c) In any agricultural undertaking at nighttime
12, 1989).
unless she is given a period of rest of not less than
nine (9) consecutive hours.
10) Stipulation Against Marriage, Art. 136
ART. 131. Exceptions. - The prohibitions prescribed by
the preceding Article shall not apply in any of the ART. 136. Stipulation against marriage. - It shall be
following cases: unlawful for an employer to require as a condition of
employment or continuation of employment that a
woman employee shall not get married, or to
(a) In cases of actual or impending emergencies
stipulate expressly or tacitly that upon getting
caused by serious accident, fire, flood, typhoon,
married, a woman employee shall be deemed
earthquake, epidemic or other disasters or calamity,
resigned or separated, or to actually dismiss,
to prevent loss of life or property, or in cases of force
discharge, discriminate or otherwise prejudice a
majeure or imminent danger to public safety;
woman employee merely by reason of her marriage.

(b) In case of urgent work to be performed on
machineries, equipment or installation, to avoid
• Duncan Association of Detailman – PTGWO v.
serious loss which the employer would otherwise Glaxo Wellcome Philippines, Inc., 438 SCRA 343
suffer; (2004)

(c) Where the work is necessary to prevent serious
loss of perishable goods;

(d) Where the woman employee holds a responsible
position of managerial or technical nature, or where
the woman employee has been engaged to provide
health and welfare services;

(e) Where the nature of the work requires the manual
skill and dexterity of women workers and the same
cannot be performed with equal efficiency by male
workers;

(f) Where the women employees are immediate
members of the family operating the establishment
or undertaking; and

(g) Under other analogous cases exempted by the
Secretary of Labor and Employment in appropriate
regulations.

9) Discrimination, Art. 135 11) Discharge on Account of Pregnancy, Art. 137

ART. 135. Discrimination prohibited. - It shall be
unlawful for any employer to discriminate against ART. 137. Prohibited acts. - (a) It shall be unlawful for
any woman employee with respect to terms and any employer:
conditions of employment solely on account of her
sex. (1) To deny any woman employee the benefits
provided for in this Chapter or to discharge any
The following are acts of discrimination: woman employed by him for the purpose of
preventing her from enjoying any of the benefits
provided under this Code.
Duman / Labor I / Prof. Battad / Page 128
(2) To discharge such woman on account of her contributions in the twelve-month period
pregnancy, or while on leave or in confinement due immediately preceding the semester of her childbirth
to her pregnancy; or miscarriage shall be paid a daily maternity benefit
equivalent to one hundred percent (100%) of her
average daily salary credit for sixty (60) days or
(3) To discharge or refuse the admission of such
seventy-eight (78) days in case of caesarian delivery,
woman upon returning to her work for fear that she
subject to the following conditions:
may again be pregnant.

"(a) That the employee shall have notified her
employer of her pregnancy and the probable date of
her childbirth, which notice shall be transmitted to
the SSS in accordance with the rules and regulations
it may provide;
d. Facilities, Art. 132, 134
"(b) The full payment shall be advanced by the
employer within thirty (30) days from the filing of the
ART. 132. Facilities for women. - The Secretary of maternity leave application;
Labor and Employment shall establish standards that
will ensure the safety and health of women
"(c) That payment of daily maternity benefits shall be
employees. In appropriate cases, he shall, by
a bar to the recovery of sickness benefits provided
regulations, require any employer to:
by this Act for the same period for which daily
maternity benefits have been received;
(a) Provide seats proper for women and permit them
to use such seats when they are free from work and
"(d) That the maternity benefits provided under this
during working hours, provided they can perform
section shall be paid only for the first four (4)
their duties in this position without detriment to
deliveries or miscarriages;
efficiency;

"(e) That the SSS shall immediately reimburse the
(b) To establish separate toilet rooms and lavatories
employer of one hundred percent (100%) of the
for men and women and provide at least a dressing
amount of maternity benefits advanced to the
room for women;
employee by the employer upon receipt of
satisfactory proof of such payment and legality
(c) To establish a nursery in a workplace for the thereof; and
benefit of the women employees therein; and
"(f) That if an employee member should give birth or
(d) To determine appropriate minimum age and other suffer miscarriage without the required contributions
standards for retirement or termination in special having been remitted for her by her employer to the
occupations such as those of flight attendants and SSS, or without the latter having been previously
the like. notified by the employer of the time of the
pregnancy, the employer shall pay to the SSS
damages equivalent to the benefits which said
ART. 134. Family planning services; incentives for
employee member would otherwise have been
family planning. - (a) Establishments which are
entitled to.
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, g. Sexual Harassment (RA 7877)
the application or use of contraceptive pills and
intrauterine devices.

(b) In coordination with other agencies of the REPUBLIC ACT NO. 7877
government engaged in the promotion of family
planning, the Department of Labor and Employment AN ACT DECLARING SEXUAL HARASSMENT
shall develop and prescribe incentive bonus schemes UNLAWFUL IN THE EMPLOYMENT, EDUACATION
to encourage family planning among female workers
OR TRAINING ENVIRONMENT, AND FOR OTHER
in any establishment or enterprise.
PURPOSES

e. Special Women Workers, 138 Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
ART. 138. Classification of certain women workers . - assembled:
Any woman who is permitted or suffered to work,
with or without compensation, in any night club,
cocktail lounge, massage clinic, bar or similar Section 1. Title. – This Act shall be known as the
establishments under the effective control or "Anti-Sexual Harassment Act of 1995."
supervision of the employer for a substantial period
of time as determined by the Secretary of Labor and
Employment, shall be considered as an employee of Sec. 2. Declaration of Policy. – The State shall
such establishment for purposes of labor and social value the dignity of every individual, enhance the
legislation. development of it human resources, guarantee full
respect for human rights, and uphold the dignity of
f. Maternity Leave, Social Security Law of 1997 (RA workers, employees, applicants for employment,
1161, as amended by RA 8282), Sec. 14-A, RA students or those undergoing training, instruction or
828 education. Towards this end, all forms of sexual
harassment in the employment, education or training
"SEC. 14-A. Maternity Leave Benefit. - A female environment are hereby declared unlawful.
member who has paid at least three (3) monthly
Duman / Labor I / Prof. Battad / Page 129
Sec. 3. Work, Education or Training-related for the resolution, settlement or prosecution of acts of
Sexual Harassment Defined. – Work, education or sexual harassment. Towards this end, the employer or
training-related sexual harassment is committed by an head of office shall:
employee, manager, supervisor, agent of the
employer, teacher, instructor, professor, coach, (a) Promulgate appropriate rules and
trainor, or any other person who, having authority, regulations in consultation with the jointly approved by
influence or moral ascendancy over another in a work the employees or students or trainees, through their
or training or education environment, demands, duly designated representatives, prescribing the
requests or otherwise requires any sexual favor from procedure for the investigation or sexual harassment
the other, regardless of whether the demand, request cases and the administrative sanctions therefor.
or requirement for submission is accepted by the
object of said Act.
Administrative sanctions shall not be a bar to
prosecution in the proper courts for unlawful acts of
(a) In a work-related or employment sexual harassment.
environment, sexual harassment is committed when:
The said rules and regulations issued pursuant
(1) The sexual favor is made as a condition to this section (a) shall include, among others,
in the hiring or in the employment, re-employment or guidelines on proper decorum in the workplace and
continued employment of said individual, or in educational or training institutions.
granting said individual favorable compensation,
terms, conditions, promotions, or privileges; or the
refusal to grant the sexual favor results in limiting, (c) Create a committee on decorum and
segregating or classifying the employee which in a investigation of cases on sexual harassment. The
way would discriminate, deprive or diminish committee shall conduct meetings, as the case may
employment opportunities or otherwise adversely be, with other officers and employees, teachers,
affect said employee; instructors, professors, coaches, trainors and
students or trainees to increase understanding and
prevent incidents of sexual harassment. It shall also
(2) The above acts would impair the conduct the investigation of the alleged cases
employee’s rights or privileges under existing labor constituting sexual harassment.
laws; or
In the case of a work-related environment, the
(3) The above acts would result in an committee shall be composed of at least one (1)
intimidating, hostile, or offensive environment for the representative each from the management, the union,
employee. if any, the employees from the supervisory rank, and
from the rank and file employees.
(b) In an education or training environment,
sexual harassment is committed: In the case of the educational or training
institution, the committee shall be composed of at
(1) Against one who is under the care, least one (1) representative from the administration,
custody or supervision of the offender; the trainors, teachers, instructors, professors or
coaches and students or trainees, as the case maybe.
(2) Against one whose education, training,
apprenticeship or tutorship is entrusted to the "The employer or head of office, educational or
offender; training institution shall disseminate or post a copy of
this Act for the information of all concerned.
(3) When the sexual favor is made a
condition to the giving of a passing grade, or the Sec. 5. Liability of the Employer, Head of Office,
granting of honors and scholarships, or the payment Educational or Training Institution. – The employer or
of a stipend, allowance or other benefits, privileges, or head of office, educational training institution shall be
considerations; or solidarily liable for damage arising from the acts of
sexual harassment committed in the employment,
(4) When the sexual advances result in an education or training environment if the employer or
intimidating, hostile or offensive environment for the head of office, educational or training institution is
student, trainee or apprentice. informed of such acts by the offended party and no
immediate action is taken thereon.
Any person who directs or induces
another to commit any act of sexual harassment as Sec. 6. Independent Action for Damages. –
herein defined, or who cooperates in the commission Nothing in this Act shall preclude the victim of work,
thereof by another without which it would not have education or training-related sexual harassment from
been committed, shall also be held liable under this instituting a separate and independent action for
Act. damages and other affirmative relief.

Sec.4. Duty of the Employer or Head of Office in Sec. 7. Penalties. – Any person who violates the
a Work-related, Education or Training Environment. – provisions of this Act shall, upon conviction, be
It shall be the duty of the employer or the head of the penalized by imprisonment of not less than one (1)
work-related, educational or training environment or month nor more than six (6) months, or a fine of not
institution, to prevent or deter the commission of acts less than Ten thousand pesos (P10,000) nor more
of sexual harassment and to provide the procedures
Duman / Labor I / Prof. Battad / Page 130
than Twenty thousand pesos (P20,000), or both such
fine and imprisonment at the discretion of the court.

Any action arising from the violation of the
provision of this Act shall prescribe in three (3) years.

Sec. 8. Separability Clause – If any portion or
provision of this Act is declared void and
unconstitutional, the remaining portions or provisions
hereof shall not be affected by such declaration.

Sec.9. Repealing Clause. – All laws, decrees,
orders, rules and regulations, other issuances, or
parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

Sec.10. Effectivity Clause. – This Act shall take • Renato S. Gatbonton v. NLRC, et al., 479 SCRA
416 (2006)
effect fifteen (15) days after its complete publication in
at least two (2) national newspaper of general
circulation.

• Libres v. NLRC, 307 SCRA 675 (1999)

2. Minors

Reference: Art.s 139-140; Omnibus Rules,
Book III, Rule XII, Secs. 2-3; Special Protection of
Children Act of 2003 (RA 7610, as amended by RA
9231); ILO Convention No.182 and ILO
Recommendation No. 190

EMPLOYMENT OF MINORS
ART. 139. Minimum employable age. - (a) No child
below fifteen (15) years of age shall be employed,
except when he works directly under the sole
• Philippine Aelous Automotive United Corp. v. responsibility of his parents or guardian, and his
employment does not in any way interfere with his
NLRC, 331SCRA 237 (2000)
schooling.

(b) Any person between fifteen (15) and eighteen
(18) years of age may be employed for such number
of hours and such periods of the day as determined
by the Secretary of Labor and Employment in
appropriate regulations.

(c) The foregoing provisions shall in no case allow the
employment of a person below eighteen (18) years
of age in an undertaking which is hazardous or
deleterious in nature as determined by the Secretary
of Labor and Employment.

Duman / Labor I / Prof. Battad / Page 131
ART. 140. Prohibition against child discrimination. - provide sanctions for their commission and carry out a
No employer shall discriminate against any person in program for prevention and deterrence of and crisis
respect to terms and conditions of employment on intervention in situations of child abuse, exploitation
account of his age.
and discrimination. The State shall intervene on
behalf of the child when the parent, guardian, teacher
SECTION 2. Employable age. — Children below fifteen or person having care or custody of the child fails or is
(15) years of age may be allowed to work under the unable to protect the child against abuse, exploitation
direct responsibility of their parents or guardians in and discrimination or when such acts against the child
any non-hazardous undertaking where the work will
are committed by the said parent, guardian, teacher
not in any way interfere with their schooling. In such
cases, the children shall not be considered as or person having care and custody of the same.
employees of the employers or their parents or
guardians. "It shall be the policy of the State to protect and
rehabilitate children gravely threatened or
SECTION 3. Eligibility for employment. — Any person endangered by circumstances which affect or will
of either sex, between 15 and 18 years of age, may affect their survival and normal development and over
be employed in any non-hazardous work. No which they have no control.
employer shall discriminate against such person in
regard to terms and conditions of employment on
account of his age. "The best interests of children shall be the paramount
consideration in all actions concerning them, whether
undertaken by public or private social welfare
For purposes of this Rule, a non-hazardous work or
undertaking shall mean any work or activity in which institutions, courts of law, administrative authorities,
the employee is not exposed to any risk which and legislative bodies, consistent with the principle of
constitutes an imminent danger to his safety and First Call for Children as enunciated in the United
health. The Secretary of Labor and Employment shall Nations Convention on the Rights of the Child. Every
from time to time publish a list of hazardous work effort shall be exerted to promote the welfare of
and activities in which persons 18 years of age and children and enhance their opportunities for a useful
below cannot be employed. and happy life."

Republic of the Philippines Section 2. Section 12 of the same Act, as amended,
Congress of the Philippines is hereby further amended to read as follows:
Metro Manila
"Sec. 2. Employment of Children - Children below
Twelfth Congress fifteen (15) years of age shall not be employed
Third Regular Session except:

"1) When a child works directly under the sole
responsibility of his/her parents or legal guardian and
Begun and held in Metro Manila, on Monday, the where only members of his/her family are employed:
twenty-eighth day of July, two thousand three. Provided, however, That his/her employment neither
endangers his/her life, safety, health, and morals, nor
Republic Act No. 9231 December 19, 2003 impairs his/her normal development: Provided,
further, That the parent or legal guardian shall provide
the said child with the prescribed primary and/or
AN ACT PROVIDING FOR THE ELIMINATION OF secondary education; or
THE WORST FORMS OF CHILD LABOR AND
AFFORDING STRONGER PROTECTION FOR THE
WORKING CHILD, AMENDING FOR THIS "2) Where a child's employment or participation in
PURPOSE REPUBLIC ACTNO. 7610, AS public entertainment or information through cinema,
AMENDED, OTHERWISE KNOWN AS THE theater, radio, television or other forms of media is
"SPECIAL PROTECTION OF CHILDREN AGAINST essential: Provided, That the employment contract is
CHILD ABUSE, EXPLOITATION AND concluded by the child's parents or legal guardian,
DISCRIMINATION ACT" with the express agreement of the child concerned, if
possible, and the approval of the Department of Labor
and Employment: Provided, further, That the following
Be it enacted by the Senate and the House of requirements in all instances are strictly complied
Representatives of the Philippines in Congress with:
assembled:
"(a) The employer shall ensure the protection, health,
Section 1. Section 2 of Republic Act No. 7610, as safety, morals and normal development of the child;
amended, otherwise known as the "Special Protection
of Children Against Child Abuse, Exploitation and
Discrimination Act", is hereby amended to read as "(b) The employer shall institute measures to prevent
follows: the child's exploitation or discrimination taking into
account the system and level of remuneration, and
the duration and arrangement of working time; and
"Sec. 2. Declaration of State Policy and Principles. - It
is hereby declared to be the policy of the State to
provide special protection to children from all forms of "(c) The employer shall formulate and implement,
abuse, neglect, cruelty, exploitation and subject to the approval and supervision of competent
discrimination, and other conditions prejudicial to their authorities, a continuing program for training and skills
development including child labor and its worst forms; acquisition of the child.

Duman / Labor I / Prof. Battad / Page 132
"In the above-exceptional cases where any such child control over the trust fund upon reaching the age of
may be employed, the employer shall first secure, majority.
before engaging such child, a work permit from the
Department of Labor and Employment which shall "Sec. 12-D. Prohibition Against Worst Forms of Child
ensure observance of the above requirements. Labor. - No child shall be engaged in the worst forms
of child labor. The phrase "worst forms of child labor"
"For purposes of this Article, the term "child" shall shall refer to any of the following:
apply to all persons under eighteen (18) years of
age." "(1) All forms of slavery, as defined under the "Anti-
trafficking in Persons Act of 2003", or practices similar
Section 3. The same Act, as amended, is hereby to slavery such as sale and trafficking of children,
further amended by adding new sections to be debt bondage and serfdom and forced or compulsory
denominated as Sections 12-A, 12-B, 12-C, and 12-D labor, including recruitment of children for use in
to read as follows: armed conflict; or

"Sec. 2-A. Hours of Work of a Working Child. - Under "(2) The use, procuring, offering or exposing of a child
the exceptions provided in Section 12 of this Act, as for prostitution, for the production of pornography or
amended: for pornographic performances; or

"(1) A child below fifteen (15) years of age may be "(3) The use, procuring or offering of a child for illegal
allowed to work for not more than twenty (20) hours a or illicit activities, including the production and
week: Provided, That the work shall not be more than trafficking of dangerous drugs and volatile substances
four (4) hours at any given day; prohibited under existing laws; or

"(2) A child fifteen (15) years of age but below "(4) Work which, by its nature or the circumstances in
eighteen (18) shall not be allowed to work for more which it is carried out, is hazardous or likely to be
than eight (8) hours a day, and in no case beyond harmful to the health, safety or morals of children,
forty (40) hours a week; such that it:

"(3) No child below fifteen (15) years of age shall be "a) Debases, degrades or demeans the intrinsic worth
allowed to work between eight o'clock in the evening and dignity of a child as a human being; or
and six o'clock in the morning of the following day and
no child fifteen (15) years of age but below eighteen "b) Exposes the child to physical, emotional or sexual
(18) shall be allowed to work between ten o'clock in abuse, or is found to be highly stressful
the evening and six o'clock in the morning of the psychologically or may prejudice morals; or
following day."
"c) Is performed underground, underwater or at
"Sec. 12-B. Ownership, Usage and Administration of dangerous heights; or
the Working Child's Income. - The wages, salaries,
earnings and other income of the working child shall
belong to him/her in ownership and shall be set aside "d) Involves the use of dangerous machinery,
primarily for his/her support, education or skills equipment and tools such as power-driven or
acquisition and secondarily to the collective needs of explosive power-actuated tools; or
the family: Provided, That not more than twenty
percent (20%) of the child's income may be used for "e) Exposes the child to physical danger such as, but
the collective needs of the family. not limited to the dangerous feats of balancing,
physical strength or contortion, or which requires the
"The income of the working child and/or the property manual transport of heavy loads; or
acquired through the work of the child shall be
administered by both parents. In the absence or "f) Is performed in an unhealthy environment
incapacity of either of the parents, the other parent exposing the child to hazardous working conditions,
shall administer the same. In case both parents are elements, substances, co-agents or processes
absent or incapacitated, the order of preference on involving ionizing, radiation, fire, flammable
parental authority as provided for under the Family substances, noxious components and the like, or to
Code shall apply. extreme temperatures, noise levels, or vibrations; or

"Sec. 12-C. Trust Fund to Preserve Part of the "g) Is performed under particularly difficult conditions;
Working Child's Income. - The parent or legal or
guardian of a working child below eighteen (18) years
of age shall set up a trust fund for at least thirty "h) Exposes the child to biological agents such as
percent (30%) of the earnings of the child whose bacteria, fungi, viruses, protozoans, nematodes and
wages and salaries from work and other income other parasites; or
amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render
a semi-annual accounting of the fund to the "i) Involves the manufacture or handling of explosives
Department of Labor and Employment, in compliance and other pyrotechnic products."
with the provisions of this Act. The child shall have full

Duman / Labor I / Prof. Battad / Page 133
Section 4. Section 13 of the same Act is hereby with the penalty provided for by R. A. 9208 otherwise
amended to read as follows: known as the "Anti-trafficking in Persons Act of 2003":
Provided, That Such penalty shall be imposed in its
"Sec. 13. Access to Education and Training for maximum period.
Working Children - "a) No child shall be deprived of
formal or non-formal education. In all cases of "d) Any person who violates Section 12-D (3) shall be
employment allowed in this Act, the employer shall prosecuted and penalized in accordance with R.A.
provide a working child with access to at least primary 9165, otherwise known as the "Comprehensive
and secondary education. Dangerous Drugs Act of 2002"; Provided, That such
penalty shall be imposed in its maximum period.
"b) To ensure and guarantee the access of the
working child to education and training, the "e) If a corporation commits any of the violations
Department of Education (DEPED) shall: (1) aforecited, the board of directors/trustees and officers,
formulate, promulgate, and implement relevant and which include the president, treasurer and secretary
effective course designs and educational programs; of the said corporation who participated in or
(2) conduct the necessary training for the knowingly allowed the violation, shall be penalized
implementation of the appropriate curriculum for the accordingly as provided for under this Section.
purpose; (3) ensure the availability of the needed
educational facilities and materials; and (4) conduct "f) Parents, biological or by legal fiction, and legal
continuing research and development program for the guardians found to be violating Sections 12, 12-A, 12-
necessary and relevant alternative education of the B and 12-C of this Act shall pay a fine of not less than
working child. Ten thousand pesos (P10,000.00) but not more than
One hundred thousand pesos (P100,000.00), or be
"c) The DEPED shall promulgate a course design required to render community service for not less than
under its non-formal education program aimed at thirty (30) days but not more than one (1) year, or
promoting the intellectual, moral and vocational both such fine and community service at the
efficiency of working children who have not discretion of the court: Provided, That the maximum
undergone or finished elementary or secondary length of community service shall be imposed on
education. Such course design shall integrate the parents or legal guardians who have violated the
learning process deemed most effective under given provisions of this Act three (3) times; Provided,
circumstances." further, That in addition to the community service, the
penalty of imprisonment of thirty (30) days but not
Section 5. Section 14 of the same Act is hereby more than one (1) year or both at the discretion of the
amended to read as follows: court, shall be imposed on the parents or legal
guardians who have violated the provisions of this Act
more than three (3) times.
"Sec. 14. Prohibition on the Employment of Children
in Certain Advertisements. - No child shall be
employed as a model in any advertisement directly or "g) The Secretary, of Labor and Employment or
indirectly promoting alcoholic beverages, intoxicating his/her duly authorized representative may, after due
drinks, tobacco and its byproducts, gambling or any notice and hearing, order the closure of any business
form of violence or pornography." firm or establishment found to have violated any of
the provisions of this Act more than three (3) times.
He/she shall likewise order the immediate closure of
Section 6. Section 16 of the same Act, is hereby such firm or establishment if:
amended to read as follows:
"(1) The violation of any provision of this Act has
"Sec. 16. Penal Provisions - resulted in the death, insanity or serious physical
injury of a child employed in such establishment; or
"a) Any employer who violates Sections 12, 12-A, and
Section 14 of this act, as amended, shall be penalized "(2) Such firm or establishment is engaged or
by imprisonment of six (6) months and one (1) day to employed in prostitution or in obscene or lewd shows.
six (6) years or a fine of not less than Fifty thousand
pesos (P50,000.00) but not more than Three hundred
thousand pesos (P300,000.00) or both at the "h) In case of such closure, the employer shall be
discretion of the court. required to pay the employee(s) the separation pay
and other monetary benefits provided for by law."
"b) Any person who violates the provision of Section
12-D of this act or the employer of the subcontractor Section 7. The same Act is hereby further amended
who employs, or the one who facilitates the by adding a new section to be denominated as
employment of a child in hazardous work, shall suffer Section 16-A, to read as follows:
the penalty of a fine of not less than One hundred
thousand pesos (P100,000.00) but not more than One "Sec. 16-A. Trust Fund from Fines and Penalties -
million pesos (P1,000,000.00), or imprisonment of not The fine imposed by the court shall be treated as a
less than twelve (12) years and one (1) day to twenty Trust Fund, administered by the Department of Labor
(20) years, or both such fine and imprisonment at the and Employment and disbursed exclusively for the
discretion of the court. needs, including the costs of rehabilitation and
reintegration into the mainstream of society of the
"c) Any person who violates Sections 12-D(1) and 12- working children who are victims of the violations of
D(2) shall be prosecuted and penalized in accordance
Duman / Labor I / Prof. Battad / Page 134
this Act, and for the programs and projects that will the right to free legal, medical and psycho-social
prevent acts of child labor." services to be provided by the State."

Section 8. Section 27 of the same Act is hereby Section 10. Implementing Rules and Regulations -
amended to read as follows: The Secretary of Labor and Employment, in
coordination with the Committees on Labor and
"Sec. 27. Who May File a Complaint - Complaints on Employment of both Houses of Congress, shall issue
cases of unlawful acts committed against children as the necessary Implementing Rules and Regulations
enumerated herein may be filed by the following: (IRR) to effectively implement the provisions of this
Act, in consultation with concerned public and private
sectors, within sixty (60) days from the effectivity of
"(a) Offended party; this Act.

"(b) Parents or guardians; Such rules and regulations shall take effect upon their
publication in two (2) national newspapers of general
"(c) Ascendant or collateral relative within the third circulation.
degree of consanguinity;
Section 11. Separability Clause. - If any provision of
"(d) Officer, social worker or representative of a this Act is declared invalid or unconstitutional, the
licensed child-caring institution; validity of the remaining provisions hereof shall
remain in full force and effect.
"(e) Officer or social worker of the Department of
Social Welfare and Development; Section 12. Repealing Clause. - All laws, decrees, or
rules inconsistent with the provisions of this Act are
"(f) Barangay chairman of the place where the hereby repealed or modified accordingly.
violation occurred, where the child is residing or
employed; or Section 13. Effectivity. - This Act shall take effect
fifteen (15) days from the date of its complete
"(g) At least three (3) concerned, responsible citizens publication in the Official Gazette or in at least two (2)
where the violation occurred." national newspapers of general circulation.

Section 9. The same Act is hereby further amended C182 Worst Forms of Child Labour Convention,
by adding new sections to Section 16 to be 1999
denominated as Sections 16-A, 16-B and 16-C to
read as follows: Convention concerning the Prohibition and Immediate
Action for the Elimination of the Worst Forms of Child
"Sec. 16-A. Jurisdiction - The family courts shall have Labour (Note: Date of coming into force: 19:11:2000)
original jurisdiction over all cases involving offenses Convention:C182
punishable under this Act: Provided, That in cities or Place:Geneva
provinces where there are no family courts yet, the Session of the Conference:87
regional trial courts and the municipal trial courts shall Date of adoption:17:06:1999
have concurrent jurisdiction depending on the Subject classification: Elimination of Child Labour
penalties prescribed for the offense charged. Subject classification: Children and Young Persons
Subject: Elimination of Child Labour and
Protection of Children and Young Persons
"The preliminary investigation of cases filed under this
Act shall be terminated within a period of thirty (30)
days from the date of filing.
The General Conference of the International Labour
Organization,
"If the preliminary investigation establishes a prima
facie case, then the corresponding information shall
be filed in court within forty eight (48) hours from the Having been convened at Geneva by the Governing
termination of the investigation. Body of the International Labour Office, and having
met in its 87th Session on 1 June 1999, and
"Trial of cases under this Act shall be terminated by
the court not later than ninety (90) days from the date Considering the need to adopt new instruments for
of filing of information. Decision on said cases shall the prohibition and elimination of the worst forms of
be rendered within a period of fifteen (15) days from child labour, as the main priority for national and
the date of submission of the case. international action, including international
cooperation and assistance, to complement the
"Sec. 15. Exemptions from Filing Fees. - When the Convention and the Recommendation concerning
Minimum Age for Admission to Employment, 1973,
victim of child labor institutes a separate civil action
for the recovery of civil damages, he/she shall be which remain fundamental instruments on child
labour, and
exempt from payment of filing fees.

"Sec. 16-C. Access to Immediate Legal, Medical and Considering that the effective elimination of the worst
forms of child labour requires immediate and
Psycho-Social Services - The working child shall have
comprehensive action, taking into account the

Duman / Labor I / Prof. Battad / Page 135
importance of free basic education and the need to (b) the use, procuring or offering of a child for
remove the children concerned from all such work prostitution, for the production of pornography or for
and to provide for their rehabilitation and social pornographic performances;
integration while addressing the needs of their
families, and (c) the use, procuring or offering of a child for illicit
activities, in particular for the production and
Recalling the resolution concerning the elimination of trafficking of drugs as defined in the relevant
child labour adopted by the International Labour international treaties;
Conference at its 83rd Session in 1996, and
(d) work which, by its nature or the circumstances in
Recognizing that child labour is to a great extent which it is carried out, is likely to harm the health,
caused by poverty and that the long-term solution lies safety or morals of children.
in sustained economic growth leading to social
progress, in particular poverty alleviation and Article 4
universal education, and
1. The types of work referred to under Article 3(d)
Recalling the Convention on the Rights of the Child shall be determined by national laws or regulations or
adopted by the United Nations General Assembly on by the competent authority, after consultation with the
20 November 1989, and organizations of employers and workers concerned,
taking into consideration relevant international
Recalling the ILO Declaration on Fundamental standards, in particular Paragraphs 3 and 4 of the
Principles and Rights at Work and its Follow-up, Worst Forms of Child Labour Recommendation, 1999.
adopted by the International Labour Conference at its
86th Session in 1998, and 2. The competent authority, after consultation with the
organizations of employers and workers concerned,
Recalling that some of the worst forms of child labour shall identify where the types of work so determined
are covered by other international instruments, in exist.
particular the Forced Labour Convention, 1930, and
the United Nations Supplementary Convention on the 3. The list of the types of work determined under
Abolition of Slavery, the Slave Trade, and Institutions paragraph 1 of this Article shall be periodically
and Practices Similar to Slavery, 1956, and examined and revised as necessary, in consultation
with the organizations of employers and workers
Having decided upon the adoption of certain concerned.
proposals with regard to child labour, which is the
fourth item on the agenda of the session, and Article 5

Having determined that these proposals shall take the Each Member shall, after consultation with employers'
form of an international Convention; and workers' organizations, establish or designate
appropriate mechanisms to monitor the
adopts this seventeenth day of June of the year one implementation of the provisions giving effect to this
thousand nine hundred and ninety-nine the following Convention.
Convention, which may be cited as the Worst Forms
of Child Labour Convention, 1999. Article 6

Article 1 1. Each Member shall design and implement
programmes of action to eliminate as a priority the
Each Member which ratifies this Convention shall take worst forms of child labour.
immediate and effective measures to secure the
prohibition and elimination of the worst forms of child 2. Such programmes of action shall be designed and
labour as a matter of urgency. implemented in consultation with relevant government
institutions and employers' and workers'
Article 2 organizations, taking into consideration the views of
other concerned groups as appropriate.
For the purposes of this Convention, the term child
shall apply to all persons under the age of 18. Article 7

Article 3 1. Each Member shall take all necessary measures to
ensure the effective implementation and enforcement
For the purposes of this Convention, the term the of the provisions giving effect to this Convention
worst forms of child labour comprises: including the provision and application of penal
sanctions or, as appropriate, other sanctions.
(a) all forms of slavery or practices similar to slavery,
such as the sale and trafficking of children, debt 2. Each Member shall, taking into account the
bondage and serfdom and forced or compulsory importance of education in eliminating child labour,
labour, including forced or compulsory recruitment of take effective and time-bound measures to:
children for use in armed conflict;

Duman / Labor I / Prof. Battad / Page 136
(a) prevent the engagement of children in the worst denunciation provided for in this Article, will be bound
forms of child labour; for another period of ten years and, thereafter, may
denounce this Convention at the expiration of each
(b) provide the necessary and appropriate direct period of ten years under the terms provided for in
assistance for the removal of children from the worst this Article.
forms of child labour and for their rehabilitation and
social integration; Article 12

(c) ensure access to free basic education, and, 1. The Director-General of the International Labour
wherever possible and appropriate, vocational Office shall notify all Members of the International
training, for all children removed from the worst forms Labour Organization of the registration of all
of child labour; ratifications and acts of denunciation communicated
by the Members of the Organization.
(d) identify and reach out to children at special risk;
and 2. When notifying the Members of the Organization of
the registration of the second ratification, the Director-
(e) take account of the special situation of girls. General shall draw the attention of the Members of
the Organization to the date upon which the
Convention shall come into force.
3. Each Member shall designate the competent
authority responsible for the implementation of the
provisions giving effect to this Convention. Article 13

Article 8 The Director-General of the International Labour
Office shall communicate to the Secretary-General of
the United Nations, for registration in accordance with
Members shall take appropriate steps to assist one article 102 of the Charter of the United Nations, full
another in giving effect to the provisions of this particulars of all ratifications and acts of denunciation
Convention through enhanced international registered by the Director-General in accordance with
cooperation and/or assistance including support for the provisions of the preceding Articles.
social and economic development, poverty
eradication programmes and universal education.
Article 14
Article 9
At such times as it may consider necessary, the
Governing Body of the International Labour Office
The formal ratifications of this Convention shall be shall present to the General Conference a report on
communicated to the Director-General of the the working of this Convention and shall examine the
International Labour Office for registration. desirability of placing on the agenda of the
Conference the question of its revision in whole or in
Article 10 part.

1. This Convention shall be binding only upon those Article 15
Members of the International Labour Organization
whose ratifications have been registered with the 1. Should the Conference adopt a new Convention
Director-General of the International Labour Office. revising this Convention in whole or in part, then,
unless the new Convention otherwise provides --
2. It shall come into force 12 months after the date on
which the ratifications of two Members have been (a) the ratification by a Member of the new revising
registered with the Director-General. Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
3. Thereafter, this Convention shall come into force provisions of Article 11 above, if and when the new
for any Member 12 months after the date on which its revising Convention shall have come into force;
ratification has been registered.
(b) as from the date when the new revising
Article 11 Convention comes into force, this Convention shall
cease to be open to ratification by the Members.
1. A Member which has ratified this Convention may
denounce it after the expiration of ten years from the 2. This Convention shall in any case remain in force in
date on which the Convention first comes into force, its actual form and content for those Members which
by an act communicated to the Director-General of have ratified it but have not ratified the revising
the International Labour Office for registration. Such Convention.
denunciation shall not take effect until one year after
the date on which it is registered. Article 16

2. Each Member which has ratified this Convention The English and French versions of the text of this
and which does not, within the year following the Convention are equally authoritative.
expiration of the period of ten years mentioned in the
preceding paragraph, exercise the right of
Duman / Labor I / Prof. Battad / Page 137
R190 Worst Forms of Child Labour (c) giving special attention to:
Recommendation, 1999
(i) younger children;
Recommendation concerning the prohibition and
immediate action for the elimination of the worst forms (ii) the girl child;
of child labour
Place:Geneva
Session of the Conference:87 (iii) the problem of hidden work situations, in which
Date of adoption:17:06:1999 girls are at special risk;
Subject classification: Elimination of Child Labour
Subject classification: Children and Young Persons (iv) other groups of children with special vulnerabilities
Subject: Elimination of Child Labour and or needs;
Protection of Children and Young Persons
(d) identifying, reaching out to and working with
communities where children are at special risk;
The General Conference of the International Labour
Organization, (e) informing, sensitizing and mobilizing public opinion
and concerned groups, including children and their
Having been convened at Geneva by the Governing families.
Body of the International Labour Office, and having
met in its Eighty-seventh Session on 1 June 1999, II. Hazardous work
and
3. In determining the types of work referred to under
Having adopted the Worst Forms of Child Labour Article 3(d) of the Convention, and in identifying
Convention, 1999, and where they exist, consideration should be given, inter
alia, to:
Having decided upon the adoption of certain
proposals with regard to child labour, which is the (a) work which exposes children to physical,
fourth item on the agenda of the session, and psychological or sexual abuse;

Having determined that these proposals shall take the (b) work underground, under water, at dangerous
form of a Recommendation supplementing the Worst heights or in confined spaces;
Forms of Child Labour Convention, 1999;
(c) work with dangerous machinery, equipment and
adopts this seventeenth day of June of the year one tools, or which involves the manual handling or
thousand nine hundred and ninety-nine the following transport of heavy loads;
Recommendation, which may be cited as the Worst
Forms of Child Labour Recommendation, 1999. (d) work in an unhealthy environment which may, for
example, expose children to hazardous substances,
1. The provisions of this Recommendation agents or processes, or to temperatures, noise levels,
supplement those of the Worst Forms of Child Labour or vibrations damaging to their health;
Convention, 1999 (hereafter referred to as "the
Convention"), and should be applied in conjunction (e) work under particularly difficult conditions such as
with them. work for long hours or during the night or work where
the child is unreasonably confined to the premises of
I. Programmes of action the employer.

2. The programmes of action referred to in Article 6 of 4. For the types of work referred to under Article 3(d)
the Convention should be designed and implemented of the Convention and Paragraph 3 above, national
as a matter of urgency, in consultation with relevant laws or regulations or the competent authority could,
government institutions and employers' and workers' after consultation with the workers' and employers'
organizations, taking into consideration the views of organizations concerned, authorize employment or
the children directly affected by the worst forms of work as from the age of 16 on condition that the
child labour, their families and, as appropriate, other health, safety and morals of the children concerned
concerned groups committed to the aims of the are fully protected, and that the children have
Convention and this Recommendation. Such received adequate specific instruction or vocational
programmes should aim at, inter alia: training in the relevant branch of activity.

(a) identifying and denouncing the worst forms of child III. Implementation
labour;
5. (1) Detailed information and statistical data on the
(b) preventing the engagement of children in or nature and extent of child labour should be compiled
removing them from the worst forms of child labour, and kept up to date to serve as a basis for
protecting them from reprisals and providing for their determining priorities for national action for the
rehabilitation and social integration through measures abolition of child labour, in particular for the prohibition
which address their educational, physical and and elimination of its worst forms as a matter of
psychological needs; urgency.
Duman / Labor I / Prof. Battad / Page 138
(2) As far as possible, such information and statistical (b) the use, procuring or offering of a child for
data should include data disaggregated by sex, age prostitution, for the production of pornography or for
group, occupation, branch of economic activity, status pornographic performances; and
in employment, school attendance and geographical
location. The importance of an effective system of (c) the use, procuring or offering of a child for illicit
birth registration, including the issuing of birth activities, in particular for the production and
certificates, should be taken into account. trafficking of drugs as defined in the relevant
international treaties, or for activities which involve the
(3) Relevant data concerning violations of national unlawful carrying or use of firearms or other weapons.
provisions for the prohibition and elimination of the
worst forms of child labour should be compiled and 13. Members should ensure that penalties including,
kept up to date. where appropriate, criminal penalties are applied for
violations of the national provisions for the prohibition
6. The compilation and processing of the information and elimination of any type of work referred to in
and data referred to in Paragraph 5 above should be Article 3(d) of the Convention.
carried out with due regard for the right to privacy.
14. Members should also provide as a matter of
7. The information compiled under Paragraph 5 above urgency for other criminal, civil or administrative
should be communicated to the International Labour remedies, where appropriate, to ensure the effective
Office on a regular basis. enforcement of national provisions for the prohibition
and elimination of the worst forms of child labour,
8. Members should establish or designate appropriate such as special supervision of enterprises which have
national mechanisms to monitor the implementation of used the worst forms of child labour, and, in cases of
national provisions for the prohibition and elimination persistent violation, consideration of temporary or
of the worst forms of child labour, after consultation permanent revoking of permits to operate.
with employers' and workers' organizations.
15. Other measures aimed at the prohibition and
9. Members should ensure that the competent elimination of the worst forms of child labour might
authorities which have responsibilities for include the following:
implementing national provisions for the prohibition
and elimination of the worst forms of child labour (a) informing, sensitizing and mobilizing the general
cooperate with each other and coordinate their public, including national and local political leaders,
activities. parliamentarians and the judiciary;

10. National laws or regulations or the competent (b) involving and training employers' and workers'
authority should determine the persons to be held organizations and civic organizations;
responsible in the event of non-compliance with
national provisions for the prohibition and elimination (c) providing appropriate training for the government
of the worst forms of child labour. officials concerned, especially inspectors and law
enforcement officials, and for other relevant
11. Members should, in so far as it is compatible with professionals;
national law, cooperate with international efforts
aimed at the prohibition and elimination of the worst (d) providing for the prosecution in their own country
forms of child labour as a matter of urgency by: of the Member's nationals who commit offences under
its national provisions for the prohibition and
(a) gathering and exchanging information concerning immediate elimination of the worst forms of child
criminal offences, including those involving labour even when these offences are committed in
international networks; another country;

(b) detecting and prosecuting those involved in the (e) simplifying legal and administrative procedures
sale and trafficking of children, or in the use, and ensuring that they are appropriate and prompt;
procuring or offering of children for illicit activities, for
prostitution, for the production of pornography or for (f) encouraging the development of policies by
pornographic performances; undertakings to promote the aims of the Convention;

(c) registering perpetrators of such offences. (g) monitoring and giving publicity to best practices on
the elimination of child labour;
12. Members should provide that the following worst
forms of child labour are criminal offences: (h) giving publicity to legal or other provisions on child
labour in the different languages or dialects;
(a) all forms of slavery or practices similar to slavery,
such as the sale and trafficking of children, debt (i) establishing special complaints procedures and
bondage and serfdom and forced or compulsory making provisions to protect from discrimination and
labour, including forced or compulsory recruitment of reprisals those who legitimately expose violations of
children for use in armed conflict; the provisions of the Convention, as well as
establishing helplines or points of contact and
ombudspersons;
Duman / Labor I / Prof. Battad / Page 139
(j) adopting appropriate measures to improve the however, That his employment neither
educational infrastructure and the training of teachers endangers his life, safety and health and
to meet the needs of boys and girls; morals, nor impairs his normal development:
Provided, further, That the parent or legal
(k) as far as possible, taking into account in national guardian shall provide the said minor child
programmes of action: with the prescribed primary and/or
secondary education; or
(i) the need for job creation and vocational training for
the parents and adults in the families of children (2) When a child's employment or
working in the conditions covered by the Convention; participation in public & entertainment or
and information through cinema, theater, radio or
television is essential: Provided, The
employment contract concluded by the
(ii) the need for sensitizing parents to the problem of child's parent or guardian, with the express
children working in such conditions. agreement of the child concerned, if
possible, and the approval of the Department
16. Enhanced international cooperation and/or of Labor and Employment: Provided, That
assistance among Members for the prohibition and the following requirements in all instances
effective elimination of the worst forms of child labour are strictly complied with:
should complement national efforts and may, as
appropriate, be developed and implemented in (a) The employer shall ensure the protection,
consultation with employers' and workers' health, safety and morals of the child;
organizations. Such international cooperation and/or
assistance should include:
(b) the employer shall institute measures to
prevent the child's exploitation or
(a) mobilizing resources for national or international discrimination taking into account the system
programmes; and level of remuneration, and the duration
and arrangement of working time; and;
(b) mutual legal assistance;
(c) The employer shall formulate and
(c) technical assistance including the exchange of implement, subject to the approval and
information; supervision of competent authorities, a
continuing program for training and skill
(d) support for social and economic development, acquisition of the child.
poverty eradication programmes and universal
education. In the above exceptional cases where any such child
may be employed, the employer shall first secure,
before engaging such child, a work permit from the
a. Minors under the Constitution, Art. II, Sec. 13 Department of Labor and Employment which shall
ensure observance of the above requirement.
Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social The Department of Labor Employment shall
well-being. It shall inculcate in the youth patriotism promulgate rules and regulations necessary for the
and nationalism, and encourage their involvement in effective implementation of this Section.
public and civic affairs.
Section 13. Non-formal Education for Working
b. Coverage, RA 9231, Sec. 2, par. 3 on Sec. 12; Children. - The Department of Education, Culture and
Book III, Rule XII, Sec. 1 Sports shall promulgate a course design under its
non-formal education program aimed at promoting the
(See Above) intellectual, moral and vocational efficiency of working
children who have not undergone or finished
c. Employment of Children, Art. 139; RA 7610, Sec. elementary or secondary education. Such course
12-16; DOLE Memo Circular No. 2, S 1998 design shall integrate the learning process deemed
Re; Hazardous and Non-Hazardous most effective under given circumstances.
Establishments

RA 7610 Section 14. Prohibition on the Employment of
Children in Certain Advertisements. - No person shall
employ child models in all commercials or
ARTICLE VIII advertisements promoting alcoholic beverages,
Working Children intoxicating drinks, tobacco and its byproducts and
violence.
Section 12. Employment of Children. - Children
below fifteen (15) years of age may be employed Section 15. Duty of Employer. - Every employer shall
except: comply with the duties provided for in Articles 108 and
109 of Presidential Decree No. 603.
(1) When a child works directly under the
sole responsibility of his parents or legal Section 16. Penalties. - Any person who shall violate
guardian and where only members of the any provision of this Article shall suffer the penalty of
employer's family are employed: Provided,
Duman / Labor I / Prof. Battad / Page 140
a fine of not less than One thousand pesos (P1,000) ART. 143. Minimum wage. - (a) Househelpers shall be
but not more than Ten thousand pesos (P10,000) or paid the following minimum wage rates:
imprisonment of not less than three (3) months but
not more than three (3) years, or both at the discretion (1) Eight hundred pesos (P800.00) a month for
of the court; Provided, That, in case of repeated househelpers in Manila, Quezon, Pasay, and Caloocan
violations of the provisions of this Article, the cities and municipalities of Makati, San Juan,
offender's license to operate shall be revoked. Mandaluyong, Muntinlupa, Navotas, Malabon,
Parañaque, Las Piñas, Pasig, Marikina, Valenzuela,
Taguig and Pateros in Metro Manila and in highly
urbanized cities;
d. Hours of Work, RA 9231, Sec. 3 on Sec. 12-a
(2) Six hundred fifty pesos (P650.00) a month for
e. Prohibitions Against Worst Forms of Child Labor, those in other chartered cities and first-class
Sec. 3 on Sec. 12-d; Sec 5 on sec. 14 municipalities; and

(3) Five hundred fifty pesos (P550.00) a month for
those in other municipalities.

Provided, That the employers shall review the
f. Discrimination, Art. 140 employment contracts of their househelpers every
three (3) years with the end in view of improving the
g. Jurisdiction, Sec. 9 on Sec. 16-A terms and conditions thereof.

Reading: Provided, further, That those househelpers who are
receiving at least One thousand pesos (P1,000.00)
• Del Rosario and Bonga, Issues and Gaps shall be covered by the Social Security System (SSS)
Governing Child Labor, in Child Labor in the and be entitled to all the benefits provided
Philippines, A Review of Selected Studies and thereunder. (As amended by Republic Act No. 7655,
Policy Papers, pp. 178-183 (2000). August 19, 1993).

ART. 144. Minimum cash wage. - The minimum wage
rates prescribed under this Chapter shall be the basic
cash wages which shall be paid to the househelpers
in addition to lodging, food and medical attendance.

ART. 145. Assignment to non-household work. - No
househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
agricultural or non-agricultural workers as prescribed
herein.

ART. 146. Opportunity for education. - If the
househelper is under the age of eighteen (18) years,
the employer shall give him or her an opportunity for
at least elementary education. The cost of education
shall be part of the househelper’s compensation,
unless there is a stipulation to the contrary.

3. Househelpers/Caregivers ART. 147. Treatment of househelpers. - The employer
shall treat the househelper in a just and humane
Reference: Arts. 141-152; Omnibus Rules, Book III, manner. In no case shall physical violence be used
Rule XIII upon the househelper.

Chapter III ART. 148. Board, lodging, and medical attendance. -
EMPLOYMENT OF HOUSEHELPERS The employer shall furnish the househelper, free of
ART. 141. Coverage. - This Chapter shall apply to all charge, suitable and sanitary living quarters as well
persons rendering services in households for as adequate food and medical attendance.
compensation.
ART. 149. Indemnity for unjust termination of
"Domestic or household service" shall mean service services. - If the period of household service is fixed,
in the employer’s home which is usually necessary or neither the employer nor the househelper may
desirable for the maintenance and enjoyment thereof terminate the contract before the expiration of the
and includes ministering to the personal comfort and term, except for a just cause. If the househelper is
convenience of the members of the employer’s unjustly dismissed, he or she shall be paid the
household, including services of family drivers. compensation already earned plus that for fifteen
(15) days by way of indemnity.
ART. 142. Contract of domestic service. - The original
contract of domestic service shall not last for more If the househelper leaves without justifiable reason,
than two (2) years but it may be renewed for such he or she shall forfeit any unpaid salary due him or
periods as may be agreed upon by the parties. her not exceeding fifteen (15) days.

Duman / Labor I / Prof. Battad / Page 141
ART. 150. Service of termination notice. - If the (b) Forty-five pesos (P45.00) a month for those
duration of the household service is not determined employed in other chartered cities and first class
either in stipulation or by the nature of the service, municipalities; and
the employer or the househelper may give notice to
put an end to the relationship five (5) days before the
(c) Thirty pesos (P30.00) a month for those in other
intended termination of the service.
municipalities.

ART. 151. Employment certification. - Upon the
SECTION 6. Equivalent daily rate. — The equivalent
severance of the household service relation, the
minimum daily wage rate of househelpers shall be
employer shall give the househelper a written
determined by dividing the applicable minimum
statement of the nature and duration of the service
monthly rate by thirty (30) days.
and his or her efficiency and conduct as househelper.

SECTION 7. Payment by results. — Where the method
ART. 152. Employment record. - The employer may
of payment of wages agreed upon by the employer
keep such records as he may deem necessary to
and the househelper is by piece or output basis, the
reflect the actual terms and conditions of
piece or output rates shall be such as will assure the
employment of his househelper, which the latter
househelper of the minimum monthly or the
shall authenticate by signature or thumbmark upon
equivalent daily rate as provided in this issuance.
request of the employer.

SECTION 8. Minimum cash wage. — The minimum
wage rates prescribed under this Rule shall be basic
cash wages which shall be paid to the househelpers
in addition to lodging, food and medical attendance.

SECTION 9. Time and manner of payment. — Wages
shall be paid directly to the househelper to whom
they are due at least once a month. No deductions
RULE XIII
therefrom shall be made by the employer unless
Employment of Househelpers
authorized by the househelper himself or by existing
laws.
SECTION 1. General statement on coverage. — (a)
The provisions of this Rule shall apply to all
SECTION 10. Assignment to non-household work. —
househelpers whether employed on full or part-time
No househelper shall be assigned to work in a
basis.
commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
(b) The term "househelper" as used herein is agricultural and non-agricultural workers.
synonymous to the term "domestic servant" and
shall refer to any person, whether male or female,
SECTION 11. Opportunity for education. — If the
who renders services in and about the employer's
househelper is under the age of eighteen (18) years,
home and which services are usually necessary or
the employer shall give him or her an opportunity for
desirable for the maintenance and enjoyment
at least elementary education. The cost of such
thereof, and ministers exclusively to the personal
education shall be part of the househelper's
comfort and enjoyment of the employer's family.
compensation, unless there is a stipulation to the
contrary.
SECTION 2. Method of payment not determinant. —
The provisions of this Rule shall apply irrespective of
SECTION 12. Treatment of househelpers. — The
the method of payment of wages agreed upon by the
employer shall treat the househelper in a just and
employer and househelper, whether it be hourly,
humane manner. In no case shall physical violence
daily, weekly, or monthly, or by piece or output
be inflicted upon the househelper.
basis.

SECTION 13. Board, lodging and medical attendance.
SECTION 3. Children of househelpers. — The children
— The employer shall furnish the househelper free
and relatives of a househelper who live under the
suitable and sanitary living quarters as well as
employer's roof and who share the accommodations
adequate food and medical attendance.
provided for the househelpers by the employer shall
not be deemed as househelpers if they are not
otherwise engaged as such and are not required to SECTION 14. Indemnity for unjust termination of
perform any substantial household work. service. — If the period for household service is fixed,
neither the employer nor the househelper may
terminate the contract before the expiration of the
SECTION 4. Employment contract. — The initial
term, except for a just cause. If the househelper is
contract for household service shall not last for more
unjustly dismissed, he or she shall be paid the
than two (2) years. However, such contract may be
compensation already earned plus that for fifteen
renewed from year to year.
(15) days by way of indemnity.

SECTION 5. Minimum monthly wage. — The minimum
If the househelper leaves without justifiable reason,
compensation of househelpers shall not be less than
he or she shall forfeit any unpaid salary due him or
the following rates:
her not exceeding fifteen (15) days.

(a) Sixty pesos (P60.00) a month for those employed
SECTION 15. Employment certification. — Upon the
in the cities of Manila, Quezon, Pasay and Caloocan,
severance of the household service relationship, the
and in the municipalities of Makati, San Juan,
househelper may demand from the employer a
Mandaluyong, Muntinlupa, Navotas, Malabon,
written statement of the nature and duration of the
Parañaque, Las Piñas, Pasig and Marikina, in the
service and his or her efficiency and conduct as
Province of Rizal.
househelper.
Duman / Labor I / Prof. Battad / Page 142
SECTION 16. Funeral expenses. — In case of death of
the househelper, the employer shall bear the funeral
expenses commensurate to the standards of life of
the deceased.

SECTION 17. Disposition of the househelper's body.
— Unless so desired by the househelper or by his or
her guardian with court approval, the transfer or use
of the body of the deceased househelper for
purposes other than burial is prohibited. When so
authorized by the househelper, the transfer, use and
disposition of the body shall be in accordance with
the provisions of Republic Act No. 349.

SECTION 18. Employment records. — The employer
may keep such records as he may deem necessary to
reflect the actual terms and conditions of
employment of his househelper which the latter shall
authenticate by signature or thumbmark upon
request of the employer.

SECTION 19. Prohibited reduction of pay. — When the
compensation of the househelper before the
promulgation of these regulations is higher than that e. Conditions of Employment, Arts. 121-152; Civil
prescribed in the Code and in this issuance, the same Code, Arts. 1689-1699
shall not be reduced or diminished by the employer
on or after said date.
ART. 151. Employment certification. - Upon the
SECTION 20. Relation to other laws and agreements. severance of the household service relation, the
— Nothing in this Rule shall deprive a househelper of employer shall give the househelper a written
the right to seek higher wages, shorter working hours statement of the nature and duration of the service
and better working conditions than those prescribed and his or her efficiency and conduct as househelper.
herein, nor justify an employer in reducing any
benefit or privilege granted to the househelper under
ART. 152. Employment record. - The employer may
existing laws, agreements or voluntary employer
keep such records as he may deem necessary to
practices with terms more favorable to the
reflect the actual terms and conditions of
househelpers than those prescribed in this Rule.
employment of his househelper, which the latter
shall authenticate by signature or thumbmark upon
a. Definition, Rule XIII, Sec. 1 (b) request of the employer.

(b) The term "househelper" as used herein is
CIVIL CODE
synonymous to the term "domestic servant" and
Art. 1689. Household service shall always be
shall refer to any person, whether male or female,
reasonably compensated. Any stipulation that
who renders services in and about the employer's
household service is without compensation shall be
home and which services are usually necessary or
void. Such compensation shall be in addition to the
desirable for the maintenance and enjoyment
house helper's lodging, food, and medical
thereof, and ministers exclusively to the personal
attendance.
comfort and enjoyment of the employer's family.

b. Coverage, Art. 141 Art. 1690. The head of the family shall furnish, free of
charge, to the house helper, suitable and sanitary
ART. 141. Coverage. - This Chapter shall apply to all quarters as well as adequate food and medical
persons rendering services in households for attendance.
compensation.
Art. 1691. If the house helper is under the age of
"Domestic or household service" shall mean service eighteen years, the head of the family shall give an
in the employer’s home which is usually necessary or opportunity to the house helper for at least
desirable for the maintenance and enjoyment thereof elementary education. The cost of such education
and includes ministering to the personal comfort and shall be a part of the house helper's compensation,
convenience of the members of the employer’s unless there is a stipulation to the contrary.
household, including services of family drivers.
Art. 1692. No contract for household service shall last
c. Non-Household Work, Art. 145 for more than two years. However, such contract
may be renewed from year to year.
ART. 145. Assignment to non-household work. - No
househelper shall be assigned to work in a
Art. 1693. The house helper's clothes shall be subject
commercial, industrial or agricultural enterprise at a
to stipulation. However, any contract for household
wage or salary rate lower than that provided for
service shall be void if thereby the house helper
agricultural or non-agricultural workers as prescribed
cannot afford to acquire suitable clothing.
herein.

Art. 1694. The head of the family shall treat the
• Apex Mining Co. NLRC, 196 SCRA 251 (1991)
house helper in a just and humane manner. In no
case shall physical violence be used upon the house
helper.

Duman / Labor I / Prof. Battad / Page 143
Art. 1695. House helper shall not be required to work homeworkers includes any person,
more than ten hours a day. Every house helper shall natural or artificial who, for his
be allowed four days' vacation each month, with pay. account or benefit, or on behalf of
any person residing outside the
country, directly or indirectly, or
Art. 1696. In case of death of the house helper, the
through an employee, agent
head of the family shall bear the funeral expenses if
contractor, sub-contractor or any
the house helper has no relatives in the place where
other person:
the head of the family lives, with sufficient means
therefor.
(1) Delivers, or causes to be
delivered, any goods, articles or
Art. 1697. If the period for household service is fixed
materials to be processed or
neither the head of the family nor the house helper
fabricated in or about a home and
may terminate the contract before the expiration of
thereafter to be returned or to be
the term, except for a just cause. If the house helper
disposed of or distributed in
is unjustly dismissed, he shall be paid the
accordance with his directions; or
compensation already earned plus that for fifteen
days by way of indemnity. If the house helper leaves
without justifiable reason, he shall forfeit any salary (2) Sells any goods, articles or materials to be
due him and unpaid, for not exceeding fifteen days. processed or fabricated in or about a home and then
rebuys them after such processing or fabrication,
either by himself or through some other person.
Art. 1698. If the duration of the household service is
not determined either by stipulation or by the nature
of the service, the head of the family or the house
helper may give notice to put an end to the service RULE XIV
relation, according to the following rules: Employment of Homeworkers

(1) If the compensation is paid by the day, SECTION 1. General statement on coverage. — This
notice may be given on any day that the Rule shall apply to any homeworker who performs in
service shall end at the close of the or about his home any processing of goods or
following day; materials, in whole or in part, which have been
furnished directly or indirectly by an employer and
thereafter to be returned to the latter.
(2) If the compensation is paid by the week,
notice may be given, at the latest on the
first business day of the week, that the SECTION 2. Definitions. — As used in this Rule, the
service shall be terminated at the end of the following terms shall have the meanings indicated
seventh day from the beginning of the hereunder:
week;
(a) "Home" means any room, house, apartment, or
(3) If the compensation is paid by the other premises used regularly, in whole or in part, as
month, notice may be given, at the latest, a dwelling place, except those situated within the
on the fifth day of the month, that the premises or compound of an employer, contractor,
service shall cease at the end of the month. and the work performed therein is under the active
or personal supervision by, or for, the latter.
Art. 1699. Upon the extinguishment of the service
relation, the house helper may demand from the (b) "Employer" means any natural or artificial person
head of the family a written statement on the nature who, for his own account or benefit, or on behalf of
and duration of the service and the efficiency and any person residing outside the Philippines, directly
conduct of the house helper. or indirectly, or through any employee, agent,
contractor, sub-contractor; or any other person:
3. Homeworkers
(1) Delivers or causes to be delivered any goods or
a. Coverage and Regulation, Arts. 153-155; DO articles to be processed in or about a home and
5, DOLE, 4 Feb. 1992, now Book III, Rule XIV thereafter to be returned or to be disposed of or
distributed in accordance with his direction; or
ART. 153. Regulation of industrial homeworkers. - The
employment of industrial homeworkers and field
(2) Sells any goods or articles for the purpose of
personnel shall be regulated by the government
having such goods or articles processed in or about a
through the appropriate regulations issued by the
home and then repurchases them himself or through
Secretary of Labor and Employment to ensure the
another after such processing.
general welfare and protection of homeworkers and
field personnel and the industries employing them.
(c) "Contractor" or "sub-contractor" means any
person who, for the account or benefit of an
ART. 154. Regulations of Secretary
employer, delivers or caused to be delivered to a
of Labor. - The regulations or orders
homeworker goods or articles to be processed in or
to be issued pursuant to this
about his home and thereafter to be returned,
Chapter shall be designed to
disposed of or distributed in accordance with the
assure the minimum terms and
direction of the employer.
conditions of employment
applicable to the industrial
homeworkers or field personnel (d) "Processing" means manufacturing, fabricating,
involved. finishing, repairing, altering, packing, wrapping or
handling any material.
ART. 155. Distribution of
homework. - For purposes of this SECTION 3. Payment for work. — (a) Immediately
Chapter, the "employer" of upon receipt of the finished goods or articles, the
Duman / Labor I / Prof. Battad / Page 144
employer shall pay the homeworker or the contractor c. Registration, Secs. 4-6
or sub-contractor, as the case may be, for the work
performed; Provided, However, that where payment d. Conditions of Employment/Deductions, Secs.
is made to a contractor or sub-contractor, the 6-9
homeworker shall be paid within the week after the
contractor or sub-contractor has collected the goods f. Joint and Several Liability of
or articles from the homeworkers.
Employer/Contractor, Sec. 11

(b) The Secretary of Labor and Employment shall g. Prohibitions, Sec. 13
from time to time establish the standard minimum
piece or output rate in appropriate orders for the
particular work or processing to be performed by the h. Enforcement, Sec. 10
homeworkers.

SECTION 4. Deductions. — No employee, contractor,
or sub-contractor shall make any deduction from the NOTES:
homeworker's earnings for the value of materials
which have been lost, destroyed, soiled or otherwise
damaged unless the following conditions are met: ___________________________________________
___________________________________________
(a) The homeworker concerned is clearly shown to be ___________________________________________
responsible for the loss or damage; ___________________________________________
___________________________________________
(b) The employee is given reasonable opportunity to ___________________________________________
show cause why deductions should not be made; ___________________________________________
___________________________________________
(c) The amount of such deduction is fair and ___________________________________________
reasonable and shall not exceed the actual loss or ___________________________________________
damages; and
___________________________________________
___________________________________________
(d) The deduction is made at such rate that the
amount deducted does not exceed 20% of the ___________________________________________
homeworker's earnings in a week. ___________________________________________
___________________________________________
SECTION 5. Conditions for payment of work. — (a) ___________________________________________
The employer may require the homeworker to re-do ___________________________________________
work which has been improperly executed without ___________________________________________
having to pay the stipulated rate more than once.
___________________________________________
___________________________________________
(b) An employer, contractor, or sub-contractor need
not pay the homeworker for any work which has ___________________________________________
been done on goods and articles which have been ___________________________________________
returned for reasons attributable to the fault of the ___________________________________________
homeworker. ___________________________________________
___________________________________________
SECTION 6. Disagreement between homeworkers and ___________________________________________
employer. — In cases of disagreement between the
homeworker and the employer, contractor or sub- ___________________________________________
contractor on matters falling under Section 4 (a), 5 ___________________________________________
and 6 of this Rule, either party may refer the case to ___________________________________________
the Regional Office having jurisdiction over the
___________________________________________
homeworker. The Regional Office shall decide the
case within ten (10) working days from receipt of the ___________________________________________
case. Its decision shall be final and unappealable. ___________________________________________
___________________________________________
SECTION 7. Liability of employer and contractor. — ___________________________________________
Whenever an employer shall contract with another ___________________________________________
for the performance of the employer's work, it shall
___________________________________________
be the duty of such employer to provide in such
contract that the employees or homeworkers of the ___________________________________________
contractor and the latter's sub-contractor shall be ___________________________________________
paid in accordance with the provisions of this Rule. In ___________________________________________
the event that such contractor or sub-contractor fails
___________________________________________
to pay the wages or earnings of his employees or
homeworkers as specified in this Rule, such employer ___________________________________________
shall be jointly and severally liable with the ___________________________________________
contractor or sub-contractor to the workers of the ___________________________________________
latter, to the extent that such work is performed
under such contract, in the same manner as if the
___________________________________________
employees or homeworkers were directly engaged by ___________________________________________
the employer. ___________________________________________
___________________________________________
b. Definition, DO 5, Sec. 2, DO 5 ___________________________________________
___________________________________________
Duman / Labor I / Prof. Battad / Page 145
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________

Duman / Labor I / Prof. Battad / Page 146
K. Mental, Dental and Occupational Safety
• Magsalin v. National Organization of Working
Men, 403 SCRA 199 (2003)
Reference: Art. 156-165; Omnibus Rules, • Hacienda Fatima v. National Federation of
Book IV, Rule I, Secs. 1-10; Rule II, Secs. 1-!0 Sugarcane Workers Food and General Trade, 396
SCRA 518 (2003)
1. Coverage, Rule I, Sec. 1 • Pentagon International Shipping, Inc. v.
Adelantar, 235 SCRA 342 (2004)
2. First Aid Treatment, Art. 156
• Lopez v. Metropolitan Waterworks and Sewerage
3. Emergency Medical and Dental System, 462 SCRA 428 (2005)
Services
3) Extended Period
a. When Required, Art. 157
• Andon Electric co., Inc. v. NLRC, 308 SCRA 340
b. When Not Required, Art. 158 (1999)
4. Employer assistance, Art. 161 4) Repeated Renewal of Contract
5. Occupational Safety and Health
Standards, Training of • Maraguinot v. NLRC, 284 SCRA 539 (1998)
Supervisor/Technician
• Universal Plastic Corp. v. Catapang, 473 SCRA
a. When Required, Rule II, Secs. 5 (a) (d) 189 (2005)

b. When Not Required, Rule II, Sec. 5 (e)
b. Project Employee, art. 280, 1st par.
6. Enforcement/DOLE Obligations,
Arts. 162-165 1) Definition

Note: Arts. 166-208: repealed by SSS Law • Imbuido v. NLRC, 329 SCRA 357 (2000)
of 1997 (RA 1161, as amended); Re: Art. 209, see • Association of Trade Union v. Comm. Abella, 323
National Health Insurance act of 1995 (RA 7875); SCRA 50 (2005)
Book IV, Rule II, Sec. 8
2) Project Employees
L. Employee Classification

1. Coverage, Art. 278 • Sandoval Shipyards, Inc. v. NLRC, 136 SCRA 674
(1985)
2. Employer Recognition • Villa v. NLRC, 284 SCRA 105 (1998)
• Chua v. Court of Appeals, 440 SCRA 121 (2004)
• Philippine Federation of Credit Cooperatives, Inc.
v. NLRC, 300 SCRA 72 (1998) 3) Workpool Employees

• Pangilinan v. General Milling corp., 434 SCRA 159 • Aguilar Corp. v. NLRC, 269 SCRA 596 (1997)
(2004)
• Maraguinot v. NLRC, supra
3. Employer Determination/Designation Casual, Art. 280, 2nd par.; Omnibus rules,
Book VI, Rule 1, Sec. 5 (b)
• De Leon v. NLRC, 176 SCRA 615 (1989)
1) Nature of Work
• Violeta v. NLRC, 280 SCRA 520 (1997)
• San Miguel Corporation v. NLRC, 297 SCRA 277
(1998) • A.M. Oreta and Co. Inc. v. NLRC, 176 SCRA 218
(1989)
4. Management Prerogative 2) One Year Service

• Manila Electric Co. v. NLRC, 263 SCRA 531 • Kimberly v. Drilon, 185 SCRA 190 (1990)
(1996)
• Integrated Contractor and Plumbing Works, Inc.
• PAL, Inc. v. Pascua, 409 SCRA 195 (2003) v. Court of Appeals, 464 SCRA 544 (2005)
• Coca-cola Bottlers Phil., Inc. Sales Force Union-
PTGWO-BALAIS v. Coca-cola Bottlers Phil., Inc.,
• San Miguel Corp. v. Abella, supra
GR No. 155651, 464 SCRA 507 (2005)
c. Fixed-Term
5. Kinds of Employee
• Brent School v. Zamora, 181 SCRA 702 (1990)
a. Regular Employees, art. 280, 1 par.; 280,
st • Palomares v. NLRC, 277 SCRA 439 (1997)
2nd par.; 281, last sentence; 75(d); Omnibus rules, • Philips Semiconductor etc. v. Fadriquela, 422
Book VI, Rule 1, Secs. 5(a), (b) and 6. SCRA 408 (2004)

1) Type d. Seasonal

• Pangilinan v. General Milling Corporation., 434 • Phil. Tobacco Flue-curing & Redrying Corp. v.
SCRA 159 (2004) NLRC, 300 SCRA 37 (1998)
• Hacienda Bino v. Cuenca, 456 SCRA 300 (2005)
2) Nature of Work
e. Probationary
• Perpetual Help Credit Corp., Inc. v. Faburada, et
1) Definition
al., 366 SCRA 693 ( 2001)
Duman / Labor I / Prof. Battad / Page 147
• Perpetual Help Credit Corp., Inc. v. Faburada,
• Philippine Federation of Credit Cooperatives, Inc. supra
v. NLRC, supra
• Cebu Marine Beach Resort v. NLRC, 414 SCRA
e. Burden of Proof
173 (2003) • Azcor Manufacturing v. NLRC, 303 SCRA 26
(1999)
2) Employer Right to Set Period/Obligation
• Chavez v. NLRC, supra
• Orient Express Placement Philippines v. NLRC,
f. Measure of Penalty
273 SCRA 256 1997)
• Farrol v. Court of Appeals, 435 SCRA 543 (2000)
3) Duration/Exception
• Valiao v. Court of Appeals, 435 SCRA 543 (2004)

• A Prime Security Services, Inv. V. NLRC, 322 • Etcuban v. Sulpicio Lines, Inc. 448 SCRA 516
SCRA 283 (2000) (2005)
• Mitsubishi Motors v. NLRC, 226 SCRA 417 (1993)
g. Factors
4) Criteria Regularization
• Associated Labor Union v. NLRC, 302 SCRA 708
• Alcira v. NLRC, 431 SCRA 508 (2004) (1999)
• Philippine Long distance Telephone C. Inc. v.
5) Extension of Contract NLRC, 303 SCRA 9 (1999)

3. Termination of Employment by Employee
• Mariwasa Manufacturing, Inc. v. Leogardo, 169
SCRA 465 (1989) a. Resignation

6) Absorbed Employees • Cheniver Deco Print v. NLRC, 325 SCRA 758
(2000)
• Cebu Stevedoring Co. Inc. v. Regional Director, • China Banking Corp. v. Borromeo, supra
168 SCRA 315 (1988)
• Willi Hahn Enterprises v. Maghuyo, 447 SCRA
7) Rule on Private School Teachers 349 (2004)
• BMG Records (Phils.), Inc. et al. v. Aida C.
• Escorpizo v. Univ. of Baguio, 306 SCRA 497 Aparecio, et al., GR 153290, Sept. 5, 2007
(1999)
1) Just Causes, Art. 285 (b)
• La Consolacion College v. NLRC, 366 SCRA 226
(2001) 2) Without Just Cause – Requisites, Art. 285 (a);
• Chiang Kai Sheck College v. Court of Appeals, Const. Art. III, Sec. 18 (2)
437 SCRA 171 (2004)
• Pascua v. NLRC, 287 SCRA 554 (1998)
I. Termination of Employment • Azcor v. NLRC, supra
• Phil. Wireless Inc. v. NLRC, 310 SCRA 653 (1999)
1. Coverage, Art. 278; Book VI, Rule 1, Sec. 1
• A Prime Security Services, Inc. v. NLRC, supra
2. Security of Tenure, Art 279; 277 (b)
b. Performance of Military or Civic duty, Art.
a. Nature/Rationale 286, Book VI, Rule I, Sec. 12

• Llosa Tan v. Silahis Internatioinal Hotel, 181
4. Termination of Employment by Employer
SCRA 738 (1990) a. Basis of Right and Requirements, Arts. 282-284;
• Sonza v. ABS-CBN Broadcasting Corp., 431 SCRA 277 (b)
381 (2004)
• Metro Eye Security, Inc. v. Julie V. Solsona, GR 1) Basis
No. 167637, Sept. 28, 2007
• PLDT v. Tolentino, 438 SCRA 555 (2004)
b. Coverage
2) Substantive and Procedural Due Process
• Labajo v. Alejandro, 165 SCRA 747 (1988)
• Skihworld Management and marketing • Philippine National Bank v. Cabanag, 460 SCRA
514 (2005)
Corporation v. NLRC, 186 SCRA 465 (1990)
• Interorient Maritime Enterprises Inc. v. NLRC,
235 SCRA 268 (1994)

c. Management Prerogative

• Philippine American Life & General Insurance Co.
v. Gramaze, 442 SCRA 274 (2004)

d. Requisites for Lawful Dismissal

Duman / Labor I / Prof. Battad / Page 148
b. Just Causes – Substantive Due Process
• Ramoran v. Jardine CMG, Inc. 326 SCRA 208
(2000)
1) Serious Misconduct/Willful Disobedience
(Insubordination) g) Habitual Infractions
• Valiao v. Court of Appeals, supra
• Villamor Golf Club v. Phil, 472 SCRA 36 (2005) • Gustilo v. Wyeth Phil., Inc., 440 SCRA 67 (2004)
• Coca-Cola Bottlers, Phil., Inc. v. Kapisanan ng
Malayang Manggagawa sa Coca-Cola, 452 SCRA h) Immorality
480 (2005)
• R Transport Corp. v. Ejaneira, 428 SCRA 725 • Santos v. NLRC, 287 SCRA 117 (1998)
(2004)
• Micro Sales Operation Network v. NLRC, 472 i) Conviction of Crime
SCRA 328 (2005)
• Sampaguita Garments Corp. v. NLRC, 233 SCRA
2) Gross and Habitual Neglect of Duties 260 1994)

j) Qualification Requirements
• Cebu Filveneer Corporation v. NLRC, 286 SCRA
556 (1998)
• Lanzaderas v. Amethyst Security & General
• Reyes v. Maxims Tea House, 398 SCRA 288
Services, Inc., supra
(2003)
• Chua v. NLRC, 453 SCRA 244 (2005) 7) Constructive Dismissal

3) Fraud or Willful Breach of Trust
• Philippine American Life v. Gramaje, 442 SCRA
• Santos v. San Miguel Corp., 399 SCRA 172 274 (2003)
(2003) • Dinglasan v. Atienza, 433 SCRA 263 (2004)
• Dela Cruz , NLRC, 416 SCRA 226 (2003) • Dusit Hotel Nikko v. National Union in Hotel,
• Phil. National Construction Corp. v. Matias, 395 Restaurant and Allied Industires, 466 SCRA 374
SCRA 720 (2003) (2005)
• Angelina Francisco v. NLRC, et al., supra
4) Commission of Crime, Art. 282 (d)
8) Transfer
• Sampaguita Garments Corporation v. NLRC, 233
SCRA 260 (1994) • OSS Security and Allied Services Inc. v. NLRC,
325 SCRA 157 (2000)
5) Analogous, Art. 282 (e) • Lanzaderas v. Amethyst Security and General
Services, Inc., supra
• Cathedral School of Technology v. NLRC, 214 • Mendoza v, Rural Bank, etc., 433 SCRA 756
(2004)
SCRA 551, 559 (1992)
9) Promotion
6) Others – Just Causes Claimed by Employer

a) Abandonment • Phil. Telegraph & Telephone Corp. v. Court of
Appeals, 412 SCRA 263 (2003)
• Nueva Ecija Electric Cooperative v. NLRC, 461
SCRA169 (2005) 10) Preventive Suspension
• Chavez v. NLRC, supra
• Floren Hotel v. NLRC, 456 SCRA 128 (2005) • Philippine Airlines, Inc. v. NLRC, 292 SCRA 40
(1998)
b) Courtesy Resignation
11) Residency Training
• Batongbacal v. Associated Bank, 168 SCRA 600
(1988) • Felix v. Buenaseda, 240 SCRA 139 (1995)
c) Change of Ownership
c. Substantive Requirements – Business
Related Causes, Art. 283
• Manlimos v. NLRC, 242 SCRA 145 (1995)
1) Basis
d) Habitual Absenteeism
• Edge Apparel Inc. v. NLRC, 286 SCRA 302 (1998)
• Union Motor Corp. v. NLRC, 445 SCRA 683 (2004)
2) Business Related or Authorized Causes
e) Fixed-Term Employment
a) Installation of Labor Saving Devices, Art. 283
• Magsalin v. National Organization of Working
Men, supra • Complex Electronics Employees Assn. v. NLRC,
310 SCRA 403 (1999)
f) Past offenses
b) Retrenchment to Prevent Losses, Art. 283
• La Carlota Planters Assn. v. NLRC, 298 SCRA 252
(1998)

Duman / Labor I / Prof. Battad / Page 149
• Asian Alcohol Corp. v. NLRC, 305 SCRA 415
• Equitable PCIBank v. Caguioa, 466 SCRA 658
(1999)
(2005)
• NDC-Guthrie Plantations, Inc. v. NLRC, 362 SCRA
416.(2001) 7) Degree of Proof/Substantial Evidence

• Composite Enterprises, Inc. v. Emilio M.
Caparoso, et al., GR No. 159919, Aug. 8, 2007 • Philtread Tire & Tubber Corp. v. Vicente, 441
SCRA 574 (2004)
c) Redundancy, Art. 283 • Etcuban v. Sulpicio Lines, Inc., supra

• Asufrin v. San Miguel Corp., 425 SCRA 270 8) Prescription
(2004)
• Golden Tread Knitting Industries, Inc. v. NLRC, • Salvador v. Phil. Mining service Corp., 395 SCRA
304 SCRA 568 729 (2003)
• Lopez Sugar Corp. v. Franco, 458 SCRA 515
(2005) 9) Dismissal of Case, Purely on Technical Ground

d) Closure of Business, Art. 283
• Quintano v. NLRC, 446 SCRA 195 (2004)

• Mac Adams Metal Engineering Workers Union- 10) Criminal Cases
Independent v. Mac Adams Metal Engineering,
414 SCRA 411 (2003)
• Quiambao v. NLRC, 254 SCRA 211 (1996)
• SSS v. Hon. Chaves, 440 SCRA 269 (2004)
• ME-SHURN Corporation v. ME-SHURN Workers 5. Reliefs/Remedies in Illegal Dismissal, Art.
279; 223
Union-FSM, 448 SCRA 41 (2005)
a. In General; Twin Remedies
e) Temporary Closure, Art. 286

• Valdez v. NLRC, 286 SCRA 87 (1998) • Nueva Ecija Electric Cooperative v. NLRC, supra
• Mt. Carmel College v. Jocelyn Resuena, et al., GR
3) Disease, Art 284 No. 173076, October 10, 2007
• Lorenzo Ma. D.G. Aguilar v. Burger Machine
• Vicente Sy v. Court of Appeals, supra Holdings Corp., et al., GR 172062, Feb. 21, 2007

d. Procedural Requirements, Art. 277 (b); Book 1) Reinstatement
VI, Rule I, Secs. 1-3 Omnibus Rules
a) Definition
1) In General/Liability for Non-Compliance with
Procedural Requirements • PNOC-EDC, et al. v. Abella, 448 SCRA 549 (2005)
• Pheschem Industrial Corp. v. Moldez, 458 SCRA
339 (2005)
• Serrano v. NLRC, 323 SCRA 445 (2000)
• Santos v. San Miguel Corp., supra b) Effect of Failure to Ask Relief

• Agabon v. NLRC, supra
• Pheschem Industrial Corp. v. Moldez, supra
2) Right to Counsel
c) Exceptions
• Salaw v. NLRC, 202 SCRA 7, 12-15 (1991)
i) Closure of Business
3) Notice ii) Economic Business Conditions

• Agabon v. NLRC, supra • Union of Supervisors (RB) NATU, etc. v. Sec. of
• Caingat v. NLRC, 453 SCRA 142 (2005) Labor, 128 SCRA 442 (1984)

4) Hearing iii) Employee’s Unsuitability

a) Hearing • Divine Word High School v. NLRC, 143 SCRA 346
(1986)
• Permex, Inc. v. NLRC, 323 SCRA 121 (2000)
• Arboleda v. NLRC, 303 SCRA 39 (1999) iv) Employee’s Retirement/Overage

b) Use of Position Paper • Espejo v. NLRC, 255 SCRA 430 (1996)

• Shoppes Manila, Inc. v. NLRC, 419 SCRA 354 v) Antipathy and Antagonism –
(2004) Strained Relations

5) Decision/Award – Const., Art. VIII, Sec. 14 • Acesite Corp. v. NLRC, 449 SCRA 360 (2005)
• BPI Employees Union v. BPI, 454 SCRA 357
• Pepsi-Cola Products Phil., Inc. v. Court of
(2005)
Appeals, 443 SCRA 580 (2004) • Sagum v. Court of Appeals, 459 SCRA 223 (2005)
6) Burden of Proof vi) Not Feasible
Duman / Labor I / Prof. Battad / Page 150
1) When Allowed
• Bustamante v. NLRC, 265 SCRA 1 (1996)

c) Offer to Reinstate
• Philippine Long Distance Telephone Co. v. NLRC,
164 SCRA 671 (1988)
• Pinero v. NLRC, 437 SCRA 112 (2004)
• Ranara v. NLRC, 212 SCRA 631 (1992)
2) When Not Allowed
2) Backwages
• Phil. Construction Corp. v. NLRC, 170 SCRA 207
a) Effect of Failure to Claim (1989)
• Chua v. NLRC, 218 SCRA 545 (1993)
• De La Cruz v. NLRC, 299 SCRA 1 (1998)
e. Indemnity
b) Effect of Failure to Order
• Arms Taxi v. NLRC, supra
• Aurora Land etc. v. NLRC, 212 SCRA 48 (1997)
• Serrano v. NLRC, supra
• St. Michael’s Inst. v. Santos, 371 SCRA 383
(2001) f. Liability of Corporate Officers

b) Computation
• Acesite Corp. v. NLRC, supra
• Mercury Drug Co. Inc. v. CIR, 56 SCRA 694
(1974) J. Retirement, Art. 287; Book VI, Rule II,
Omnibus Rules; RA No. 7641; RA No. 8558 (1998) ;
• Bustamante v. NLRC, supra Labor Advisory on Retirement Pay (Oct. 1999)
• Torres v. NLRC, 330 SCRA 311 (2000)
• Kay Products, Inc. v. CA464 SCRA 544 (2005) 1. Retirement
• Standard Electric Manufacturing Corp. v.
Standard Electric Employees Union, 468 SCRA a. Types of Retirement Plan
316 (2005)
• BPI Employees Union v. BPI, supra • PAL v. Airline Pilots’ Association of the Phil., 373
SCRA 302 (2002)
c) Fringe Benefit • Naguit v. NLRC, 408 SCRA 617 (2003)

• Aurora Land etc. v. NLRC, supra
• Sta. Catalina College v. NLRC, 416 SCRA 233
(2003)
b. Damages • Gerlach v. Reuters Ltd., Phil. 448 SCRA 535
(2005)
• Collegio de San Juan de Letran-Calamba v. Villas,
399 SCRA 550 (2003) 1) Basis
• Tolosa v. NLRC, 401 SCRA 391 (2003)
• Maguiling v. Phil. Tuberculosis Society, Inc. 450 • Gamogamo v. PNOC shipping and Transport
SCRA 465 (2005) Corp., 381 SCRA 742 (2002)
• Acesite Corp v. NLRC, supra 2) Interpretation
• Sagum v. Court of Appeals, 459 SCRA 223 (2005)
• Lopez v. National Steel Corp., 423 SCRA 109
• Central Luzon Conference v. CA, 466 SCRA 711
(2004)
(04)
• Solomon v. Association of International Shipping
c. Separation Pay Lines, Inc., 457 SCRA 254 (2005)

1) When – As Alternative 4) Eligibility

• Coca-Cola Bottlers Phils. Inc. v. Vital, 438 SCRA • Brion v. South Phil. Union Mission of the Seventh
278 (2004) Day Adventist Church, 307 SCRA 497 (1999)
• National Federation of Labor v. Court of Appeals,
440 SCRA 604 (2004) REMINDERS:
• Etcuban Jr. v. Sulpicio Lines, Inc., supra
1. Voluntary recitation will be graded generously.
• Composite enterprises, Inc. v. Emilio M. The professor however reserves the right to call
Caparoso, et al., supra on students for recitation.

2) Computation/Rationale 2. The 20% rule on absences will be strictly
observed. Three times of tardiness will be
• Business Day Information Systems and Services, considered absent. All those who come between
15 to 30 minutes after the class will be marked
Inc. v. NLRC, 221 SCRA 9 (1993)
“late”; after 30 mins, “absent”.
• Millares v. NLRC, 305 SCRA 500 (1999)
3. No make-up mid-term examination will be given.
3) Effect of Receipt

• Arino v. NLRC, 290 SCRA 489 (1998) REQUIREMENT:

c. Financial Assistance Attendance/Recitation/Assigned Work -
30%
Duman / Labor I / Prof. Battad / Page 151
Mid-Term Examination -
30%
Final Examination -
30%

Duman / Labor I / Prof. Battad / Page 152