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LAB OR LAW 1

1 st S eme st er, A Y 2 008-2 009 Social legislation: provides particular kinds of protection or
Prof. E. (Leo) D. Battad benefits to society or segments thereof in furtherance of
College of Law social justice.
University of the Philippines
Labor laws are necessarily social legislation. But to
differentiate, labor laws directly affect employment while
SUGG ES TED TE XTB OO K: social legislation governs effects of employment.

CA Azucena, The Labor Code with Comments and Cases Labor laws are social legislation but not all social legislation
(Latest Edition) are labor laws.

RE FE RE NCE S:
2. Social Justice, Const., Art. II, Sec. 10; Art. XIII,
Samson S. Alcantara, and Samson B. Alcantara Jr., Philippine Sec. 1-3
Labor and Social Legislation Annotated
1987 Philippine Constitution Section 10. The State shall promote social justice in
The Labor Code of the Philippines and its Implementing all phases of national development.
Rules &
Regulations Section 1. The Congress shall give highest priority to
the enactment of measures that protect and enhance
Pertinent International Human Rights Instruments and ILO
the right of all the people to human dignity, reduce
Conventions, Recommendations and Labor-related laws
social, economic, and political inequalities, and
Assigned Readings
remove cultural inequities by equitably diffusing
wealth and political power for the common good.
I. IN TR ODU CT ION TO L ABO R L AW
To this end, the State shall regulate the acquisition,
A. La bor a s a Con cep t ownership, use, and disposition of property and its
increments.
1. General Sense
Labor physical toil although it does not necessarily exclude Section 2. The promotion of social justice shall
the application of skill, thus there is skilled and unskilled include the commitment to create economic
labor. opportunities based on freedom of initiative and self-
reliance.
Skill familiar knowledge of any art or sciencem united with
radiness and dexterity in execution or performance or in the ARTICLE XIII LABOR
application of the art or science to practical purposes. Section 3. The State shall afford full protection to
labor, local and overseas, organized and
Work is broader than labor as work covers all forms of
unorganized, and promote full employment and
physical or mental exertion, or both combined, for the
attainment of some object other than recreation or
equality of employment opportunities for all.
amusement per se. It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
2. Technical sense to strike in accordance with law. They shall be entitled
to security of tenure, humane conditions of work, and
Worker broader than employee as workers may refer to a living wage. They shall also participate in policy and
self-employed people, and those working in the service and decision-making processes affecting their rights and
under the control of another, regardless of rank, title, or benefits as may be provided by law.
nature of work.
The State shall promote the principle of shared
Employee salaried person working for another who responsibility between workers and employers and
controls or supervises the means, manner or method of the preferential use of voluntary modes in settling
doing the work.
disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
B. La bor L aw peace.

1. Definition The State shall regulate the relations between


workers and employers, recognizing the right of labor
Labor legislaton labor standards + labor relations to its just share in the fruits of production and the right
of enterprises to reasonable returns to investments,
a. consists of statutes, regulations and jurisprudence and to expansion and growth.
b. governing the relations between capital and labor
c. by providing for certain employment standards The aim and the reason and, therefore, the justification of
and a legal framework labor laws is social justice.
d. for negotiating, adjusting and administering those
standards and other incidents of employment. So cial Jus ti ce: JP Laurel in Calalang neither
communism, nor despotism, nor atomism not anarchy but
La bor stan da rd s: which sets out the minimum terms, the humanization of laws and the equalization of social and
conditions, and benefits of employment that employers must economic forces by the State so that justice in its rational
provide or comply with and to which employees are entitled and objectively secular conception may at least be
as a matter of legal right. approximated.

La bor rela tio ns law: which defines the status, rights and The promotion of the welfare of all the people, the adoption
duties and the institutional mechanisms that govern the by the Government of measures calculated to insure
individual and collective interactions of employers, economic stability of all the component elements of society
employees or their representatives. through the maintenance of proper economic and social
equilibrium in the interrelations of the members of the
SOCIAL LEGISLATION VS. LABOR LAWS community, constitutionality, through the adoption of
measures legally justifiable, or extra-constitutionally, through adoption of measures legally justifiable, or extra-
the exercise of powers underlying the existence of all constitutionally, through the exercise of powers underlying
governments, on the time-honored principle of salus populi the existence of all governments, on the time-honored
est suprema lex. principle of salus populi est suprema lex.

Labor is the primary social economic force, thus the State Manila Electric Co. v. Sec. of Labor, 337 SCRA 90 (2000)
shall protect the rights of workers and promote their welfare.
When will the CBA take effect?
Con st it ut ion al R ig ht s a nd Ma nda tes
<-o-------------------------------I x--------------------------
The State shall afford full protection to labor and this is CBA expiration 6 months
found in the 1935, 1973, and 1987 Consti. The State affirms
labor as a primary social economic force thus, it shall protect Secretary of Labor may determine the date of retroactivity
the right of the workers and promote their welfare. as part of his discretionary powers. But this discretionary
power shall only be exercised only when jurisdiction has
Basic rights of workers guaranteed by the consti: been vested.

1. Right to organize themselves Assailed Resolution:


2. Conduct collective bargaining or Article 263(g) gives the Secretary jurisdiction. CBA
negotiation with management negotiated within six months after the expiration of the
3. Engage in peaceful concerted activities, existing CBA retroacts to the day immediately following such
including to strike in accordance with date and if agreed thereafter, the effectivity depends on the
law agreement of the parties. But the law is silent as to the
4. Enjoy security of tenure retroactivity of a CBA arbitral award or that granted not by
5. Work under humane conditions virtue of the mutual agreement of the parties but by
6. Receive a living wage intervention of the government. Despite the silence of the
7. Participate in policy and decision-making law, the Court rules herein that CBA arbitral awards granted
processes affecting their rights and after six months from the expiration of the last CBA shall
benefits as may be provided by law. retroact to such time agreed upon by both employer and the
(Sec. 3, XIII). employees or their union. Absent such an agreement as to
Other provisions in the Consti: retroactivity, the award shall retroact to the first day of the
six-month period following the expiration of the last day of
1) Right to form unions, associations, societies for the CBA should there be one. IN the absence of a CBA, the
purposes not contrary to law. Secs determination of the date of retroactivity as part of his
2) Right to self organization shall not be denied to discretionary powers over arbitral awards shall control.
government employees.
3) Regular farmworkers shall have the right to own Held: Where an arbitral award is granted beyond six months
directly or collectively the lands they till. after the expiration of the existing CBA, and there is no
4) The State shall by law and for common good, agreement between the parties as to the date of effectivity
undertake in cooperation with the private sector a thereof, the arbitral award shall retroact to the first day after
continuing program of urban land reform and the six-month period following the expiration of the last day
housing. of the CBA. But instead of Dec 1, 1995 to Nov 30 1997 (CBA
5) The State shall protect working women by had a 2-year applicability period), the Court modified it to
providing safe and healthful working conditions June 1, 1996 to May 31, 1998.
taking into account their maternal functions.
6) Labor is entitled to seats allotted to party-list On so cial justi ce : [T]his Court cannot ignore the
representatives enormous cost that petitioner will have to bear as a
7) The State shall promote industrialization and full consequence of the fill retroaction of the arbitral award to
employment based on sound agricultural the date of the expiry of the CBA and the inevitable effect
development and agrarian reform. that it would have on the national economy. On the other
8) Congress shall create an agency to promote the hand, under the policy of social justice, the law bends over
viability and growth of cooperatives. backward to accommodate the interests of the working class
9) The Govt shall increase salary scales of the other on the humane justification that those with less privilege in
officials and employees of the National life should have more in law. Balancing these two
Government. contrasting interests, this Court turned to the dictates of
10) Career civil service employees shall be entitled to fairness and equitable justice and thus arrived at a formula
appropriate separation pay and to retirement and that would address the concerns of both sides. Thus, Arbitral
other benefits under existing laws. award must retroact to the first day AFTER the six-month
period following the last day of the CBA.

a. Definition/Balancing of Interest Azucena:

Calalang v. Williams, 70 Phil. 726 (1940) The Consitution has not overlooked the rights of capital. It
provides that, the State recognizes the indispensable role of
So cial Jus ti ce: JP Laurel in Calalang neither the private sector, encourages private enterprise, and
communism, nor despotism, nor atomism not anarchy but provides incentives to needed investments (Art. II, Sec. 20).
the humanization of laws and the equalization of social and
economic forces by the State so that justice in its rational While labor is entitled to a just share in the fruits of
and objectively secular conception may at least be production, the enterprise has an equally important right not
approximated. only to reasonable returns on investment but also to
expansion and growth.
Social justice is the promotion of the welfare of all the
people, the adoption by the Government of measures Shared Responsibility between workers and employers
calculated to insure economic stability of all the component Preferential use of voluntary modes of settling disputes.
elements of society through the maintenance of proper
economic and social equilibrium in the interrelations of the a. Foundation: Police Power and State Protection
members of the community, constitutionality, through the
Duman / Labor I / Prof. Battad / Page 2
While social justice is the raison detre of labor laws, their employees for cause and without any provision for
basis or foundation is the police power of the State. separation pay.
Separation pay shall be allowed as a measure of social
a. State legislatures may enact laws for the justice only in those instances where the employee is calidly
protection of the safety and health of employees. dismissed for causes other than serious misconduct or those
b. Right of every person to pursue a business, reflecting on his moral character. Where the reason for the
occupation, or profession is subject to the valid dismissal is, for example, habitual intoxication or an
paramount right of the government as a part of its offense involving moral turpitude, life theft or illicit sexual
police power to impose such restrictions and relations with a fellow worker, the employer may not be
regulations as the protection of the public may required to give the dismissed employee separation pay or
require. financial assistance, or whatever other name it is called on
the ground of social justice.
Legal Classification: (discussed in light of the suspension of
deployment of women) The policy of social justice is not intended to countenance
wrongdoing simply because it is committed by the
a. such classification rest on substantial distinctions underprivileged. At best it may mitigate the penalty but it
b. they are germane to the purpose of the law certainly will not condone the offense. Compassion for the
c. they are not confined to existing conditions poor is an imperative of every humane society but only when
d. they apply equally to all members of the same the recipient is not a rascal claiming an underserved
class privilege. Social justice cannot be permitted to be refuge of
scoundrels any more than can equity be an impediment to
b. Foundation: Police Power and State Protection the punishment of the guilty. Those who invoke social justive
may do so only if their hands are clean and their motives
CMS Estate, Inc. v. Social Security System, 132 SCRA 108
blameless and not simply because they happen to be poor.
(1984)
Agabon v. NLRC, 442 SCRA 573 (2004)
The case of two businesses, one was in real estate and the
other was in the logging business. One owner was
demanding for a refund from SSS and it refused to subscribe Employees were claiming illegal dismissal. Employer was
the employees of the 2nd business to SSS because the asserting that there was abandonment.
business has not been in operation for 2 years (which was
the requirement of the law) yet. Abandonment is the deliberate and unjustified refusal of an
employee to resume his employment. It is a form of neglect
The Social Security Law was enacted pursuant to the policy of duty, hence, a just cause for termination of employment
of the government to develop, establish gradually and by the employer. For a valid finding of abandonment: (1)
perfect a social security system which shall be suitable to the failure to report for work or absence without valid or
needs of the people throughout the Philippines, and shall justifiable reason (2) clear intention to server employer-
provide protection against the hazards of disability, sickness, employee relationship with the second as the more
old age and death. It is thus clea r that sa id determinative factor which is manifested by overt acts from
en ac tme nt implem en ts th e ge ne ral welf ar e which it may be deduced that the employees has no more
ma nda te of th e Con st it ut ion an d co ns ti tu te s a intention to work.
legi tima te exerci se of the poli ce pow er of the
Sta te. Wenph il or Bela ted Due Proc es s Rul e: where the
employer had a valid reason to dismiss an employee but did
It is the intention of the law to cover as many persons as not follow the due process requirement, the dismissal may
possible so as to promote the constitutional objective of be upheld but the employer will be penalized to pay an
social justice. indemnity to the employee.

Compulsory coverage of the employer shall take effect on But this was re-examined in Se rr an o ca se wherein the
the first day of his operation, and that of the employee on Court required that the employer pay the full backwages
the date of his employment (RA 1161 as amended by RA from the time of dismissal until the time the Court finds the
2658). The two year prescription of the prior law must be dismissal was for a just or authorized cause. It was because
considered prevailed over by the later law and moreover, the of a significant number of cases involving dismissals without
legislative intent must be given effect. requisite notices.

c. Limits of Use In Agabon, the Court abandoned Serrano and followed


Wenphil only that the sanctions imposed on the employer
PLDT v. NLRC, 164 SCRA 671 (1988) must be stiffer than those in Wenphil.

PLDT employee promised to facilitate the approval of the An employee who is clearly guilty of conduct violative of
complainants applications for telephone installation and then Article 282 should not be protected by the Social Justice
received from them an amount of money in consideration of Clause of the Constitution. Social justice, as the terms
her promise. suggests, should be used only to correct an injustice.

The rule embodied in the Labor Code is that a person JP Laurel, in Calalang: social justice must be founded on the
dismissed for cause as defined therein is not entitled to recognition of the necessity of interdependence among
separation pay. The cases abovecited (where different cases diverse units of a society and of the protection that should
were cited proving that some companies still allowed be equally and evenly extended to all groups as a combined
separation pay despite the degree of the ground upon which forc e in our social and economic life, consistent with the
the employees were being dismissed for) constitute the fundamental and paramount objective of the state of
exception, based upon considerations of equity. Equity has promoting the health, comfort and quiet of all person, and of
been defined as justice outside law, being ethical rather than bringing about the gr ea te st good to the gr ea te st
jural and belonging to the sphere of morals than of law. It is numb er.
grounded on the precepts of conscience and not on any
sanction of positive law. Hence, it cannot prevail against the Social justice is not based on rigid formulas set in stone. It
expressed provision of the labor laws allowing dismissal of has to allow for changing times and circumstances.

Duman / Labor I / Prof. Battad / Page 3


and nationalism, and encourage their involvement in
public and civic affairs.
5. Legal Basis
Section 14. The State recognizes the role of women
a. International Conventions in nation-building, and shall ensure the fundamental
equality before the law of women and men.
International School Alliance of Educators v. Quisumbing,
333 SCRA 13 (2000) Section 18. The State affirms labor as a primary
social economic force. It shall protect the rights of
Foreigner teachers were given more benefits than the local workers and promote their welfare.
teachers.
Art. XIII
International law, which springs from general principle of
law, likewise proscribes discrimination. General principles of Section 1. The Congress shall give highest priority to
law include principles of equity i.e the general principles of
the enactment of measures that protect and enhance
fairness and justice, based on the test of what is reasonable.
the right of all the people to human dignity, reduce
The following embody the general principle against social, economic, and political inequalities, and
discrimination, the very antithesis of fairness and justice. remove cultural inequities by equitably diffusing
wealth and political power for the common good.
Universal Declaration of Human Rights
The International Covenant on Section 3. The State shall afford full protection to
Economic, Social, and Cultural Rights labor, local and overseas, organized and
The International Convention on the unorganized, and promote full employment and
Elimination of All Forms of Racial equality of employment opportunities for all.
Discrimination It shall guarantee the rights of all workers to self-
The Convention against Discrimination organization, collective bargaining and negotiations,
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
decision-making processes affecting their rights and
Mentioned in the case: benefits as may be provided by law.
Bar gai ni ng Uni t: is a group of employees of a given
employer, comprised of all or less than all of the entire body The State shall promote the principle of shared
of employees, consistent with equity to the employer
responsibility between workers and employers and
indicate to be the best suited to serve the reciprocal rights
and duties of the parties under the collective bargaining
the preferential use of voluntary modes in settling
provisions of the law. disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
The factors determining the appropriate collective bargaining peace.
unit are: (1) the will of the employees (2) affinity and unity
of the employees interest, such as substantial similarity of The State shall regulate the relations between
work and duties, or similarity of compensation and working workers and employers, recognizing the right of labor
conditions (3) prior collective bargaining history (4) similarity to its just share in the fruits of production and the right
of employment status. of enterprises to reasonable returns to investments,
and to expansion and growth.
b. 1987 Constitution, Art. II, Secs. 5, 9, 10, 13, 14, 18; Art. Section 14. The State shall protect working women
XIII, Secs. 1, 3, 14 by providing safe and healthful working conditions,
taking into account their maternal functions, and such
facilities and opportunities that will enhance their
ART. II
welfare and enable them to realize their full potential
in the service of the nation.
Section 5. The maintenance of peace and order, the
protection of life, liberty, and property, and promotion
See also: 1935 Const., Art. XIV, Sec., 6; 1973 Const., Art. II,
of the general welfare are essential for the enjoyment Sec. 9
by all the people of the blessings of democracy.
193 5 Con st it ut ion , Ar t. XIV , Se c. 6
Section 9. The State shall promote a just and
dynamic social order that will ensure the prosperity Section 6. The State shall afford protection to labor,
and independence of the nation and free the people especially to working women, and minors, and shall
from poverty through policies that provide adequate regulate the relations between the landowner and
social services, promote full employment, a rising tenant, and between labor and capital in industry and
standard of living, and an improved quality of life for in agriculture. The State may provide for compulsory
all. arbitration.

Section 10. The State shall promote social justice in 1973 Const. Art. II, Sec. 9
all phases of national development.
Section 9. The State shall afford protection to labor,
Section 13. The State recognizes the vital role of the promote full employment and equality in employment,
youth in nation-building and shall promote and protect ensure equal work opportunities regardless of sex,
their physical, moral, spiritual, intellectual, and social race, or creed, and regulate the relation between
well-being. It shall inculcate in the youth patriotism workers and employers. The State shall assure the
Duman / Labor I / Prof. Battad / Page 4
rights of workers to self-organization, collective Found in the case: Management prerogative: The exercise of
bargaining, security of tenure, and just and humane management prerogative is not unlimited. It is subject to the
conditions of work. The State may provide for limitations found in law, a collective bargaining agreement or
compulsory arbitration. the general 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 respondent and
c. Labor Code (LC) and Omnibus Rules Implementing the Labor compliance therewith is mandated by the express policy of
Code the law.

d. New Civil Code of the Philippines (NCC), Arts. 19, 21, 1700- d. Past Practices
1701
Davao Fruits Corporation v. Associated labor Union, 225
Art. 19. Every person must, in the exercise of his 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 given
and good faith. by employers to their employees under PD 851, payments
for sick, vacation and maternity leaves, premiums for work
Art. 21. Any person who wilfully causes loss or injury done rest days and special holidays and pay for regular
to another in a manner that is contrary to morals, holidays may be excluded in the computation and payment
good customs or public policy shall compensate the thereof, regardless of long-standing company practice.
latter for the damage.
A compa ny pr ac tic e f avor able to the e mploy ees ha d
Art. 1700. The relations between capital and labor are in deed be en est abli sh ed an d the pa yme nt s ma de
pu rs ua nt ther et o, ripe ned in to ben efits en joy ed by
not merely contractual. They are so impressed with
them . An d any be nefi t and supple men t bein g
public interest that labor contracts must yield to the
en joy ed by the empl oy ee s can no t be red uc ed,
common good. Therefore, such contracts are subject dimi nis he d, di sco nt in ue d or elimi na ted by th e
to the special laws on labor unions, collective empl oy er, by vi rt ue of Se c 10 of the Rule s an d
bargaining, strikes and lockouts, closed shop, wages, Reg ula tion s Impl eme nti ng PD 851 and Art 100 of
working conditions, hours of labor and similar the Labor Co de whi ch pro hibi t th e dimi nu tio n or
subjects. elimi na tio n b the employ er of th e empl oy ee s
ex is ti ng b en efits .
Art. 1701. Neither capital nor labor shall act
oppressively against the other, or impair the interest The considerable length of time the questioned items had
or convenience of the public. 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
Samahang Manggagawa sa Top Form Manufacturing-United
a. Labor Code and Related Special Legislation (Implementing
Workers of the Phil. (SMTFM-UWP v. NLRC, 295 SCRA 171
Rules)
(1998)
b. Contract Art. 1305-1306, New Civil Code
The case wherein the employer was charged as having
committed an unfair labor practice by bargaining in bad faith
Art. 1305. A contract is a meeting of minds between and discriminating against in employees by promising at a
two persons whereby one binds himself, with respect collective bargaining conference to implement any
to the other, to give something or to render some government-mandated wage increases on an across-the-
service. (1254a) board basis.

Art. 1306. The contracting parties may establish such Past promises which were written in the minutes of the
stipulations, clauses, terms and conditions as they meeting. The proposal was never embodied in the CBA,
may deem convenient, provided they are not contrary thus, the promise remained just that, a promise, the
to law, morals, good customs, public order, or public implementation which cannot be validly demanded under the
policy. (1255a) law.

c. Collective Bargaining Agreement The law provides remedies to the petitioner union to compel
priv resp to incorporate this specific economic proposal in
the CBA, which they did not do.
DOLE Phils. v. Pawis ng Makabayang Obrero, 395 SCRA 112
(2003) The CBA is the law between the contracting partiesthe
collective bargaining representative and the employer-
Interpretation of the free meals provision in the CBA. Is it company. Compliance with a CBA is mandated by the
after the employee has worked only after more than three expressed policy to give protection to labor. In the same
hours of work or those who have rendered exactly three vein, CBA provision should be construed liberally rather
hours of overtime work? than narrowly and technically, and the courts must place a
practical and realistic construction upon it, giving due
The disputed provision of the CBA is clear and unambiguous. consideration to the context in which it is negotiated and
The terms of the CBA is not susceptible to any other purpose which it is intended to serve. This is founded on the
interpretation. Hence the literal meaning of free meals after dictum that a CBA is not an ordinary contract but one
three (3) hours of overtime work shall prevail, which is impressed with public interest. It goes without saying,
simply that an employee shall be entitled to a free meal if he however, that only provisions embodied in the CBA should be
has rendered exactly, or no less than, three hours of so interpreted and complied with.
overtime work, not after more than or in excess of three
hours overtime work. No benefits or privileges previously enjoyed by petitioner
union and the other employees were withdrawn as a result

Duman / Labor I / Prof. Battad / Page 5


of the manner by which private resp implemented the wage complied with until finally revised or amended unilaterally or
orders. preferably through negotiation or by competent authority.
Moreover, management has the prerogative to discipline its
employees and to impose appropriate penalties on erring
workers pursuant to company rules and regulations. With
more reason should these truisms apply to the respondent,
who, by reason of his position, was required to act
American Wire and Cable Daily rated Employees Union
judiciously and to exercise his authority in harmony with
American Wire and Cable co., Inc., 457 SCRA 684 (2005) company policies.
The company suddenly withdrew and denied certain benefits Business enterprises have a prerogative to discipline its
and entitlements which the employees have long enjoyed employees and to impose appropriate penalties on erring
like service awards, 35% premium pay of an employees workers pursuant to company rules and regulations which
basic pay for work rendered during Holy Monday, Tuesday, must be respected. The law, in protecting the rights of labor,
Wednesday, December 23, 26, 27, 28, and 29, Christmas authorized neither oppression nor self-destruction of an
Party and Promotional Increases. employer company which itself is possessed of rights that
must be entitled to recognition and respect.
It is critical that a determination must be first made whether
the benefits/entitlements are in the nature of a bonus or 7. Classification
not, and assuming they are so, whether they are
demandable and enforceable obligations. a. Labor Standards
Bon us : is an amount granted and paid to an employee for b. Labor Relations
his industry and loyalty which contributed to the success of
the employers business and made possible the realization of c. Welfare Legislation
profits. It is an act of generosity granted by an enlightened
employer to spur the employee to greater efforts for the II . LAB OR CO DE O F T HE PH IL IPP INE S
success of the business and realization of bigger profits. The
granting of a bonus is a management prerogative, A. Brief H is to ry
something given in addition to what is ordinarily received by
or strictly due the recipient. Thus, a bonus is not a B. Gen er al P rov isio ns
demandable and enforceable obligation, except when it is
made part of the wage, salary or compensation of the 1. 1. Decree Title, Art. 1
employee.
ARTICLE 1. Name of Decree. - This Decree shall
Issue: WON these bonuses can be considered part of the
be known as the "Labor Code of the Philippines".
wage or salary or compensation making them enforceable
obligations.
2. Effectivity, Art. 2
Held: No. For a bonus to be enforceable, it must have been ART. 2. Date of effectivity. - This Code shall take
promised by the employer and expressly agreed upon by the effect six (6) months after its promulgation.
parties or it must have had a fixed amount and had been a 3. Policy Declaration, Art. 3
long and regular practice on the part of the employer.
ART. 3. Declaration of basic policy. - The State
The benefits/entitlements in question were never subjects of shall afford protection to labor, promote full
any express agreement between the parties. They were employment, ensure equal work opportunities
never incorporated in the CBA. As observed by the VA, the regardless of sex, race or creed and regulate the
records reveal that these benefits/entitlements have not relations between workers and employers. The
been subjects of any express agreement between the union State shall assure the rights of workers to self-
and the company, and have not yet been incorporated in the organization, collective bargaining, security of
CBA. tenure, and just and humane conditions of work.
Downtrend was clear in the service award amount and the 4. Construction in Favor of Labor, Art. 4
parties venue were changed from paid venues to one which
was free of charge.
ART. 4. Construction in favor of labor. - All doubts
in the implementation and interpretation of the
To be con sid er ed a r eg ula r pract ice , the givi ng of
the bon us sho uld ha ve be en don e over a lo ng provisions of this Code, including its
pe riod of time, an d mus t be shown to have bee n implementing rules and regulations, shall be
co ns is te nt an d d eliber at e. resolved in favor of labor.

e. Company Policies
Salinas Jr. v. NLRC, 319 SCRA 54 (1999)
China Banking Corporation v. Borromeo, 440 SCRA 621 (2004)

The case of a manager who was consistently promoted


because of a highly satisfactory performance which landed
him at the AVP spot only to find out that he has done
irregularities in approving several DAUD/BP in favor of one
Maniwan.

The Banks SOP provides a restitution/forfeiture of benefits


provision.

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
Duman / Labor I / Prof. Battad / Page 6
their adoption in newspapers of general
circulation.

Reyes v. Court of Appeals, 409 SCRA 267 (2003)

Kapisanan ng mga Manggagawang Pinagyakap v. NLRC, 152


SCRA 6 (1987)

G&M Philippines, Inc. v. Romil Cuambot, GR No. 162308,


Nov. 22, 2006
3. Technical Rules Not Binding, Art. 221

ART. 221. Technical rules not binding and prior resort


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
and objectively and without regard to technicalities of
law or procedure, all in the interest of due process. In
any proceeding before the Commission or any Labor
Arbiter, the parties may be represented by legal
counsel but it shall be the duty of the Chairman, any
Presiding Commissioner or Commissioner or any
Labor Arbiter to exercise complete control of the
proceedings at all stages.

Huntington Steel Products, Inc. v. NLRC, 442 SCRA 551


(2004)

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

Duman / Labor I / Prof. Battad / Page 7


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
officers, shall have access to employers records and
premises at any time of the day or night whenever
4. Applicability, Art. 6, 276; Constitution, Art. IX-B, Sec. 2(1) work is being undertaken therein, and the right to
copy therefrom, to question any employee and
investigate any fact, condition or matter which may be
necessary to determine violations or which may aid in
ART. 6. Applicability. - All rights and benefits granted the enforcement of this Code and of any labor law,
to workers under this Code shall, except as may wage order or rules and regulations issued pursuant
otherwise be provided herein, apply alike to all thereto.
workers, whether agricultural or non-agricultural. (As
amended by Presidential Decree No. 570-A,
November 1, 1974). (b) Notwithstanding the provisions of Articles 129 and
217 of this Code to the contrary, and in cases where
the relationship of employer-employee still exists, the
ART. 276. Government employees. - The terms and Secretary of Labor and Employment or his duly
conditions of employment of all government authorized representatives shall have the power to
employees, including employees of government- issue compliance orders to give effect to the labor
owned and controlled corporations, shall be governed standards provisions of this Code and other labor
by the Civil Service Law, rules and regulations. Their legislation based on the findings of labor employment
salaries shall be standardized by the National and enforcement officers or industrial safety
Assembly as provided for in the New Constitution. engineers made in the course of inspection. The
However, there shall be no reduction of existing Secretary or his duly authorized representatives shall
wages, benefits and other terms and conditions of issue writs of execution to the appropriate authority
employment being enjoyed by them at the time of the for the enforcement of their orders, except in cases
adoption of this Code. where the employer contests the findings of the labor
employment and enforcement officer and raises
Con st it ut ion , Ar t. IX -B , Se c. 2 (1) issues supported by documentary proofs which were
not considered in the course of inspection. (As
Section 2. (1) The civil service embraces all amended by Republic Act No. 7730, June 2, 1994).
branches, subdivisions, instrumentalities, and
agencies of the Government, including government-
An order issued by the duly authorized representative
owned or controlled corporations with original
of the Secretary of Labor and Employment under this
charters.
Article may be appealed to the latter. In case said
order involves a monetary award, an appeal by the
5. Enforcement and Sanctions Arts. 217 (a) (2), (3), (4), (6); employer may be perfected only upon the posting of a
128-129; 288-292; Consti., Art III, Secs. 11 and 16 cash or surety bond issued by a reputable bonding
company duly accredited by the Secretary of Labor
ART. 217. Jurisdiction of the Labor Arbiters and the and Employment in the amount equivalent to the
Commission. - (a) Except as otherwise provided monetary award in the order appealed from. (As
under this Code, the Labor Arbiters shall have original amended by Republic Act No. 7730, June 2, 1994).
and exclusive jurisdiction to hear and decide, within
thirty (30) calendar days after the submission of the
case by the parties for decision without extension, (c) The Secretary of Labor and Employment may
even in the absence of stenographic notes, the likewise order stoppage of work or suspension of
following cases involving all workers, whether operations of any unit or department of an
agricultural or non-agricultural: 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
2. Termination disputes; shall be conducted to determine whether an order for
the stoppage of work or suspension of operations
3. If accompanied with a claim for shall be lifted or not. In case the violation is
reinstatement, those cases that workers may attributable to the fault of the employer, he shall pay
file involving wages, rates of pay, hours of the employees concerned their salaries or wages
work and other terms and conditions of during the period of such stoppage of work or
employment; suspension of operation.

4. Claims for actual, moral, exemplary and (d) It shall be unlawful for any person or entity to
other forms of damages arising from the obstruct, impede, delay or otherwise render
employer-employee relations; ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives
6. Except claims for Employees Compensation, Social issued pursuant to the authority granted under this
Security, Medicare and maternity benefits, all other Article, and no inferior court or entity shall issue
claims arising from employer-employee relations, temporary or permanent injunction or restraining order
including those of persons in domestic or household or otherwise assume jurisdiction over any case
Duman / Labor I / Prof. Battad / Page 8
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- Title II
employee relations: Provided, That such complaint PRESCRIPTION OF OFFENSES AND CLAIMS
does not include a claim for reinstatement: Provided
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 ART. 291. Money claims. - All money claims arising
sum not paid to the employee or househelper from employer-employee relations accruing during the
because he cannot be located after diligent and effectivity of this Code shall be filed within three (3)
reasonable effort to locate him within a period of three years from the time the cause of action accrued;
(3) years, shall be held as a special fund of the otherwise they shall be forever barred.
Department of Labor and Employment to be used
exclusively for the amelioration and benefit of
workers. All money claims accruing prior to the effectivity of
this Code shall be filed with the appropriate entities
established under this Code within one (1) year from
Any decision or resolution of the Regional Director or the date of effectivity, and shall be processed or
hearing officer pursuant to this provision may be determined in accordance with the implementing rules
appealed on the same grounds provided in Article 223 and regulations of the Code; otherwise, they shall be
of this Code, within five (5) calendar days from receipt forever barred.
of a copy of said decision or resolution, to the
National Labor Relations Commission which shall
resolve the appeal within ten (10) calendar days from Workmens compensation claims accruing prior to the
the submission of the last pleading required or effectivity of this Code and during the period from
allowed under its rules. November 1, 1974 up to December 31, 1974, shall be
filed with the appropriate regional offices of the
Department of Labor not later than March 31, 1975;
The Secretary of Labor and Employment or his duly otherwise, they shall forever be barred. The claims
authorized representative may supervise the payment shall be processed and adjudicated in accordance
of unpaid wages and other monetary claims and with the law and rules at the time their causes of
benefits, including legal interest, found owing to any action accrued.
employee or househelper under this Code. (As
amended by Section 2, Republic Act No. 6715, March
21, 1989). ART. 292. Institution of money claims. - Money claims
specified in the immediately preceding Article shall be
filed before the appropriate entity independently of the
ART. 288. Penalties. - Except as otherwise provided criminal action that may be instituted in the proper
in this Code, or unless the acts complained of hinge courts.
on a question of interpretation or implementation of
ambiguous provisions of an existing collective
bargaining agreement, any violation of the provisions Pending the final determination of the merits of money
of this Code declared to be unlawful or penal in nature claims filed with the appropriate entity, no civil action
Duman / Labor I / Prof. Battad / Page 9
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. Wor k R el at ion sh ip

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.

(c) "Employee" includes any individual


employed by an employer.
Perpetual Help Credit v. Faburada et al., 366 SCRA 693
(2001)
Art. 167. Definition of Terms.As used in this Title,
unless the context indicates otherwise:

(f) Employer means any person, natural or juridical,


employing the services of the employee.

(g) Employee means any person compulsorily


covered by the GSIS under Commonwealth Act
Numbered One hundred eighty-six, as amended,
including the members of the Armed Forces of the
Philippines, and any person employed as casual,
emergency, temporary, substitute or contractual, or
any person compulsorily covered by the SSS under
Republic Act Numbered Eleven hundred sixty-one, as
amended.

(h) Person means any individual, partnership, firm,


association, trust, corporation or legal representative
thereof.

Art. 212.

Duman / Labor I / Prof. Battad / Page 10



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

c. Piercing the Corporate Veil

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

Duman / Labor I / Prof. Battad / Page 11


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
2. Independent Contractor and Labor-only Contractor, Art. 106-107,
the promotion of employment and the observance
109; DO No. 18-02, S 2002 of the rights of workers to just and humane
conditions of work, security of tenure, self-
organization, and collective bargaining. Labor-
ART. 106. Contractor or subcontractor. - Whenever an only contracting as defined herein shall be
employer enters into a contract with another person prohibited.
for the performance of the formers work, the
employees of the contractor and of the latters
Section 2 . Coverage. - These Rules shall apply to
subcontractor, if any, shall be paid in accordance with
all parties of contracting and subcontracting
the provisions of this Code.
arrangements where employer-employee
relationship exists. Placement activities through
In the event that the contractor or subcontractor fails private recruitment and placement agencies as
to pay the wages of his employees in accordance with governed by Articles 25 to 39 of the Labor Code
this Code, the employer shall be jointly and severally are not covered by these Rules.
liable with his contractor or subcontractor to such
employees to the extent of the work performed under
Section 3. Trilateral Relationship in Contracting
the contract, in the same manner and extent that he is
Arrangements. - In legitimate contracting, there
liable to employees directly employed by him.
exists a trilateral relationship under which there is
a contract for a specific job, work or service
The Secretary of Labor and Employment may, by between the principal and the contractor or
appropriate regulations, restrict or prohibit the subcontractor, and a contract of employment
contracting-out of labor to protect the rights of workers between the contractor or subcontractor and its
established under this Code. In so prohibiting or workers. Hence, there are three parties involved in
restricting, he may make appropriate distinctions these arrangements, the principal which decides
between labor-only contracting and job contracting as to farm out a job or service to a contractor or
well as differentiations within these types of subcontractor, the contractor or subcontractor
contracting and determine who among the parties which has the capacity to independently
involved shall be considered the employer for undertake the performance of the job, work or
purposes of this Code, to prevent any violation or service, and the contractual workers engaged by
circumvention of any provision of this Code. the contractor or subcontractor to accomplish the
job work or service.
There is "labor-only" contracting where the person
supplying workers to an employer does not have Section 4. Definition of Basic Terms. - The
substantial capital or investment in the form of tools, following terms as used in these Rules, shall
equipment, machineries, work premises, among mean:
others, and the workers recruited and placed by such
person are performing activities which are directly
(a) "Contracting" or "subcontracting" refers to an
related to the principal business of such employer. In
arrangement whereby a principal agrees to put
such cases, the person or intermediary shall be
out or farm out with a contractor or subcontractor
considered merely as an agent of the employer who
the performance or completion of a specific job,
shall be responsible to the workers in the same
work or service within a definite or predetermined
manner and extent as if the latter were directly
period, regardless of whether such job, work or
employed by him.
service is to be performed or completed within or
outside the premises of the principal.
ART. 107. Indirect employer. - The provisions of the
immediately preceding article shall likewise apply to
(b) "Contractor or subcontractor" refers to any
any person, partnership, association or corporation
person or entity engaged in a legitimate
which, not being an employer, contracts with an
contracting or subcontracting arrangement.
independent contractor for the performance of any
work, task, job or project.
(c) "Contractual employee" includes one
employed by a contractor or subcontractor to
DEPARTMENT ORDER NO. 18 - 02
perform or complete a job, work or service
(Series of 2002)
pursuant to an arrangement between the latter
.
and a principal.
.
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED (d) "Principal" refers to any employer who puts
. out or farms out a job, service or work to a
. contractor or subcontractor.

Duman / Labor I / Prof. Battad / Page 12


Section 5. Prohibition against labor-only (i) In addition to his assigned functions, requiring
contracting. - Labor-only contracting is hereby the contractual employee to perform functions
declared prohibited. For this purpose, labor-only which are currently being performed by the
contracting shall refer to an arrangement where regular employees of the principal or of the
the contractor or subcontractor merely recruits, contractor or subcontractor;
supplies or places workers to perform a job, work
or service for a principal, and any of the following (ii) Requiring him to sign, as a precondition to
elements are present: employment or continued employment, an
(i) The contractor or subcontractor does not have antedated resignation letter; a blank payroll; a
substantial capital or investment which relates to waiver of labor standards including minimum
the job, work or service to be performed and the wages and social or welfare benefits; or a
employees recruited, supplied or placed by such quitclaim releasing the principal, contractor or
contractor or subcontractor are performing subcontractor from any liability as to payment of
activities which are directly related to the main future claims; and
business of the principal; or
(iii) Requiring him to sign a contract fixing the
(ii) the contractor does not exercise the right to period of employment to a term shorter than the
control over the performance of the work of the term of the contract between the principal and the
contractual employee. contractor or subcontractor, unless the latter
contract is divisible into phases for which
The foregoing provisions shall be without substantially different skills are required and this
prejudice to the application of Article 248 (C ) of is made known to the employee at the time of
the Labor Code, as amended. engagement;

"Substantial capital or investment" refers to (d) Contracting out of a job, work or service
capital stocks and subscribed capitalization in the through an in-house agency which refers to a
case of corporations, tools, equipment, contractor or subcontractor engaged in the
implements, machineries and work premises, supply of labor which is owned, managed or
actually and directly used by the contractor or controlled by the principal and which operates
subcontractor in the performance or completion solely for the principal;
of the job, work or service contracted out.
(e) Contracting out of a job, work or service
The "right to control" shall refer to the right directly related to the business or operation of the
reserved to the person for whom the services of principal by reason of a strike or lockout whether
the contractual workers are performed, to actual or imminent;
determine not only the end to be achieved, but
also the manner and means to be used in (f) Contracting out of a job, work or service being
reaching that end. performed by union members when such will
interfere with, restrain or coerce employees in the
Section 6. Prohibitions. - Notwithstanding Section exercise of their rights to self organization as
5 of these Rules, the following are hereby provided in Art. 248 (c) of the Labor Code, as
declared prohibited for being contrary to law or amended.
public policy:
Section 7. Existence of an employer-employee
(a) Contracting out of a job, work or service when relationship. - The contractor or subcontractor
not done in good faith and not justified by the shall be considered the employer of the
exigencies of the business and the same results contractual employee for purposes of enforcing
in the termination of regular employees and the provisions of the Labor Code and other social
reduction of work hours or reduction or splitting legislation. The principal, however, shall be
of the bargaining unit; solidarily liable with the contractor in the event of
any violation of any provision of the Labor Code,
(b) Contracting out of work with a "cabo" as including the failure to pay wages.
defined in Section 1 (ii), Rule I, Book V of these The principal shall be deemed the employer of the
Rules. "Cabo" refers to a person or group of contractual employee in any of the following
persons or to a labor group which, in the guise of cases as declared by a competent authority:
a labor organization, supplies workers to an
employer, with or without any monetary or other (a) where there is labor-only contracting; or
consideration whether in the capacity of an agent
of the employer or as an ostensible independent (b) where the contracting arrangement falls within
contractor; the prohibitions provided in Section 6
(Prohibitions) hereof.
(c) Taking undue advantage of the economic
situation or lack of bargaining strength of the Section 8. Rights of Contractual Employees. -
contractual employee, or undermining his Consistent with Section 7 of these Rules, the
security of tenure or basic rights, or contractual employee shall be entitled to all the
circumventing the provisions of regular rights and privileges due a regular employee as
employment, in any of the following instances: provided for in the Labor Code, as amended, to
include the following:

Duman / Labor I / Prof. Battad / Page 13


(a) Safe and healthful working conditions; Failure to register shall give rise to the
(b) Labor standards such as service incentive presumption that the contractor is engaged in
leave, rest days, overtime pay, holiday pay, 13th labor-only contracting.
month pay and separation pay;
(c) Social security and welfare benefits; Section 12. Requirements for registration. - A
(d) Self-organization, collective bargaining and contractor or subcontractor shall be listed in the
peaceful concerted action; and registry of contractors and subcontractors upon
(e) Security of tenure. completion of an application form to be provided
Section 9. Contract between contractor or by the DOLE. The applicant contractor or
subcontractor and contractual employee. - subcontractor shall provide in the application
Notwithstanding oral or written stipulations to the form the following information:
contrary, the contract between the contractor or
subcontractor and the contractual employee,
which shall be in writing, shall include the (a) The name and business address of the
following terms and conditions: applicant and the area or areas where it seeks to
(a) The specific description of the job, work or operate;
service to be performed by the contractual
employee; (b) The names and addresses of officers, if the
applicant is a corporation, partnership,
(b) The place of work and terms and conditions of cooperative or union;
employment, including a statement of the wage
rate applicable to the individual contractual (c) The nature of the applicant's business and the
employee; and industry or industries where the applicant seeks
to operate;
(c) The term or duration of employment, which
shall be coextensive with the contract of the (d) The number of regular workers; the list of
principal and subcontractor, or with the specific clients, if any; the number of personnel assigned
phase for which the contractual employee is to each client, if any and the services provided to
engaged, as the case may be. the client;

The contractor or subcontractor shall inform the (e) The description of the phases of the contract
contractual employee of the foregoing terms and and the number of employees covered in each
conditions on or before the first day of his phase, where appropriate; and
employment.
(f) A copy of audited financial statements if the
Section 10. Effect of Termination of Contractual applicant is a corporation, partnership,
Employment. - In cases of termination of cooperative or a union, or copy of the latest ITR if
employment prior to the expiration of the contract the applicant is a sole proprietorship.
between the principal and the contractor or
subcontractor, the right of the contractual The application shall be supported by:
employee to separation pay or other related (a) A certified copy of a certificate of registration
benefits shall be governed by the applicable laws of firm or business name from the Securities and
and jurisprudence on termination of employment. Exchange Commission (SEC), Department of
Trade and Industry (DTI), Cooperative
Where the termination results from the expiration Development Authority (CDA), or from the DOLE if
of the contract between the principal and the the applicant is a union; and
contractor or subcontractor, or from the
completion of the phase of the job, work or (b) A certified copy of the license or business
service for which the contractual employee is permit issued by the local government unit or
engaged, the latter shall not be entitled to units where the contractor or subcontractor
separation pay. However, this shall be without operates.
prejudice to completion bonuses or other
emoluments, including retirement pay as may be
provided by law or in the contract between the The application shall be verified and shall include
principal and the contractor or subcontractor. an undertaking that the contractor or
subcontractor shall abide by all applicable labor
laws and regulations.
Section 11. Registration of Contractors or
Subcontractors. - Consistent with the authority of
the Secretary of Labor and Employment to restrict Section 13. Filing and processing of applications.
or prohibit the contracting out of labor through - The application and its supporting documents
appropriate regulations, a registration system to shall be filed in triplicate in the Regional Offices
govern contracting arrangements and to be where the applicant principally operates. No
implemented by the Regional Offices is hereby application for registration shall be accepted
established. unless all the foregoing requirements are
complied with. The contractor or subcontractor
shall be deemed registered upon payment of a
The registration of contractors and registration fee of P100.00 to the Regional Office.
subcontractors shall be necessary for purposes
of establishing an effective labor market
information and monitoring.
Duman / Labor I / Prof. Battad / Page 14
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 (c) Findings through arbitration that the
days after its filing. 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 (d) Non-compliance with labor standards and
file, and transmit the remaining set to the Bureau working conditions.
of Local Employment. The Bureau shall devise the
necessary forms for the expeditious processing
of all applications for registration. Section 17. Renewal of registration of contractors
or subcontractors. - All registered contractors or
subcontractors may apply for renewal of
Section 14. Duty to produce copy of contract registration every three years. For this purpose,
between the principal and the contractor or the Tripartite Industrial Peace Council (TIPC) as
subcontractor. - The principal or the contractor or created under Executive Order No. 49, shall serve
subcontractor shall be under an obligation to as the oversight committee to verify and monitor
produce a copy of the contract between the the following:
principal and the contractor in the ordinary (a) Engaging in allowable contracting activities;
course of inspection. The contractor shall and
likewise be under an obligation to produce a copy
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
labor regulation officers shall have the authority
Section 15. Annual Reporting of Registered to conduct routine inspection of establishments
Contractors. - The contractor or subcontractor engaged in contracting or subcontracting and
shall submit in triplicate its annual report using a shall have access to employer's records and
prescribed form to the appropriate Regional premises at any time of the day or night whenever
Office not later than the 15th of January of the work is being undertaken therein, and the right to
following year. The report shall include: 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 standards provisions of the Labor Code, other
subcontractor, retain one set for its file, and labor legislation and these guidelines.
transmit the remaining set to the Bureau of Local
Employment within five (5) days from receipt Section 19. Solidary liability. - The principal shall
thereof. be deemed as the direct employer of the
contractual employees and therefore, solidarily
Section 16. Delisting of contractors or liable with the contractor or subcontractor for
subcontractors. - Subject to due process, the whatever monetary claims the contractual
Regional Director shall cancel the registration of employees may have against the former in the
contractors or subcontractors based on any of case of violations as provided for in Sections 5
the following grounds: (Labor-Only contracting), 6 (Prohibitions), 8
(Rights of Contractual Employees) and 16
(Delisting) of these Rules. In addition, the
(a) Non-submission of contracts between the principal shall also be solidarily liable in case the
principal and the contractor or subcontractor contract between the principal and contractor or
when required to do so; subcontractor is preterminated for reasons not

Duman / Labor I / Prof. Battad / Page 15


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
repairing works, however, shall continue to be
governed by Department Order No. 19, series of b. Desirable Unnecessary
1993.
Coca-Cola Bottlers Phil., Inc. v. NLRC, 307 SCRA 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)

LIIKHA-PMPB v. Burlinggame corp., GR No. 162833,


June 15, 2007

Duman / Labor I / Prof. Battad / Page 16


d. Effect of Finding D. Pr e-e mplo yme nt , Rec ruit men t an d Pl ace men t of
Work er s
San Miguel Corporation v. Abella, 461 SCRA 392 (2005)
Reference: Arts. 12-42; POEA Rules; Book 1, Rules III-VIII,
Omnibus Rules; Migrant Workers and Overseas 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, Inc.,


REPUBLIC ACT NO. 8042
SEC. 2. DECLARATION OF POLICIES--
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
overseas, in general, and Filipino migrant
workers, in particular.
(b) 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. Towards this end, the State shall provide
adequate and timely social, economic and
legal services to Filipino migrant workers.
(c) While recognizing the significant
contribution of Filipino migrant workers to the
national economy through their foreign
exchange remittances, the State does not
promote overseas employment as a means
Duman / Labor I / Prof. Battad / Page 17
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
the Filipino citizens shall not, at any time, be (a) It has existing labor and social laws
compromised or violated. The State, protecting the rights of migrant workers;
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-
building. Recognizing the contribution of (d) It is taking positive, concrete measures to
overseas migrant women workers and their protect the rights of migrant workers.
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
(e) Free access to the courts and quasi- on the deployment of migrant workers.
judicial bodies and adequate legal
assistance shall not be denied to any
persons by reason of poverty. In this regard, 2. Private Sector Agencies and Entities
it is imperative that an effective mechanism
be instituted to ensure that the rights and a. Parties
interest of distressed overseas Filipinos, in
general, and Filipino migrant workers, in 1) Worker Art. 13 (a)
particular, documented or undocumented,
are adequately protected and safeguarded. ART. 13. Definitions. - (a) "Worker" means
any member of the labor force, whether employed or
(f) The right of Filipino migrant workers and unemployed.
all overseas Filipinos to participate in the
democratic decision-making processes of
the State and to be represented in 2) Private Employment Agency Arts. 13 (c) (d), 12 (f), 14
institutions relevant to overseas employment (a)
is recognized and guaranteed.
(g) The State recognizes that the ultimate
protection to all migrant workers is the ART. 13. (c) "Private fee-charging
possession of skills. Pursuant to this and as employment agency" means any person or
soon as practicable, the government shall entity engaged in recruitment and placement
deploy and/or allow the deployment only to of workers for a fee which is charged,
skilled Filipino workers. directly or indirectly, from the workers or
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.
(I) Government fees and other administrative ART. 12. Statement of objectives. - It is the
costs of recruitment, introduction, placement policy of the State:
and assistance to migrant workers
shall be rendered free without prejudice to
the provision of Section 36 hereof. f) To strengthen the network of public
employment offices and rationalize the
Nonetheless, the deployment of Filipino participation of the private sector in the
overseas workers, whether land-based or recruitment and placement of workers,
sea-based by local service contractors and locally and overseas, to serve national
manning agencies employing them shall be development objectives;
encouraged. Appropriate incentives may be
extended to them. ART. 14. Employment promotion. - The
I. DEPLOYMENT Secretary of Labor shall have the power and
authority:
SEC. 4. Deployment of Migrant Workers -
The State shall deploy overseas Filipino
workers only in countries where the rights of (a) To organize and establish new
Filipino migrant workers are protected. The employment offices in addition to the existing

Duman / Labor I / Prof. Battad / Page 18


employment offices under the Department of employment abroad, whether for profit or
Labor as the need arises; not, when undertaken by a non-license or
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
3) Private Recruitment Entity Arts. 13 (e) (f), 12 (f), 14 employment abroad to two or more persons
(a) shall be deemed so engaged. It shall
likewise include the following acts, whether
committed by any persons, whether a non-
ART. 13. (e) "Private recruitment entity" licensee, non-holder, licensee or holder of
means any person or association engaged in authority.
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
(f) "Authority" means a document issued by that actually received by him as a loan or
the Department of Labor authorizing a advance;
person or association to engage in
recruitment and placement activities as a (b) To furnish or publish any false notice or
private recruitment entity. information or document in relation to
recruitment or employment;

ART. 12. Statement of objectives. - It is the (c) To give any false notice, testimony,
policy of the State: information or document or commit any act
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
participation of the private sector in the (d) To induce or attempt to induce a worker
recruitment and placement of workers, already employed to quit his employment in
locally and overseas, to serve national order to offer him another unless the transfer
development objectives; is designed to liberate a worker from
oppressive terms and conditions of
ART. 14. Employment promotion. - The employment;
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
(a) To organize and establish new his agency;
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
1) Local Employment, Art. 13 (b) inspection by the Secretary of Labor and
Employment or by his duly authorized
(b) "Recruitment and placement" refers to representative;
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;
promises for a fee, employment to two or
more persons shall be deemed engaged in (i) To substitute or alter to the prejudice of
recruitment and placement. the worker, employment contracts approved
and verified by the Department of Labor and
Employment from the time of actual signing
thereof by the parties up to and including the
2) Overseas Employment, Sec. 6, RA 8042
period of the expiration of the same without
Sec. 6. DEFINITIONS. - For purposes of this the approval of the Department of Labor and
Act, illegal recruitment shall mean any act of Employment;
canvassing, enlisting, contracting, (j) For an officer or agent of a recruitment or
transporting, utilizing, hiring, procuring placement agency to become an officer or
workers and includes referring, contact member of the Board of any corporation
services, promising or advertising for engaged in travel agency or to be engaged
Duman / Labor I / Prof. Battad / Page 19
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
than those authorized under the Labor Code 2) Prohibited Business Agencies and Entities, Arts. 16, 18,
and its implementing rules and regulations; 25, 26

(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
of deployment, in cases where the a Filipino worker for overseas employment except
through the Boards and entities authorized by the
deployment does not actually take place
without the worker's fault. Illegal recruitment Secretary of Labor. Direct-hiring by members of the
diplomatic corps, international organizations and such
when committed by a syndicate or in large
scale shall be considered as offense other employers as may be allowed by the Secretary
of Labor is exempted from this provision.
involving economic sabotage.
Illegal recruitment is deemed committed by a ART. 25. Private sector participation in the recruitment
syndicate carried out by a group of three (3) and placement of workers. - Pursuant to national
or more persons conspiring or confederating development objectives and in order to harness and
with one another. It is deemed committed in maximize the use of private sector resources and
large scale if committed against three (3) or initiative in the development and implementation of a
more persons individually or as a group. comprehensive employment program, the private
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, 18, 25,
employment whether for profit or not.
12 (f)

ART. 16. Private recruitment. - Except as d. Government Techniques of Regulation Private Recruitment
provided in Chapter II of this Title, no person
or entity other than the public employment 1) Licensing, Arts. 27, 28, 29, 30, 31, POEA rules and
offices, shall engage in the recruitment 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


ART. 28. Capitalization. - All applicants for
recruitment and placement of workers. -
authority to hire or renewal of license to
Pursuant to national development objectives
recruit are required to have such substantial
and in order to harness and maximize the
capitalization as determined by the Secretary
use of private sector resources and initiative
of Labor.
in the development and implementation of a
comprehensive employment program, the
private employment sector shall participate ART. 29. Non-transferability of license or
in the recruitment and placement of workers, authority. - No license or authority shall be
locally and overseas, under such guidelines, used directly or indirectly by any person
rules and regulations as may be issued by other than the one in whose favor it was
the Secretary of Labor. issued or at any place other than that stated
in the license or authority be transferred,
ART. 12. Statement of objectives. - It is the conveyed or assigned to any other person or
policy of the State: entity. Any transfer of business address,
f) To strengthen the network of public appointment or designation of any agent or
employment offices and rationalize the representative including the establishment of

Duman / Labor I / Prof. Battad / Page 20


additional offices anywhere shall be subject Commission (SEC), in the case of
to the prior approval of the Department of corporation or partnership or Certificate of
Labor. Registration of firm or business name with
the Bureau of Domestic Trade (BDT) in the
ART. 30. Registration fees. - The Secretary case of a single proprietorship;
of Labor shall promulgate a schedule of fees
for the registration of all applicants for b. Proof of financial capacity: In the case of
license or authority. a single proprietorship or partnership,
verified income tax returns for the past two
ART. 31. Bonds. - All applicants for license or (2) years and a bank certificate of a cash
authority shall post such cash and surety deposit of P250,000.00, provided that the
bonds as determined by the Secretary of applicant should submit an authority to
Labor to guarantee compliance with examine such bank deposit.
prescribed recruitment procedures, rules and
regulations, and terms and conditions of In the case of a newly organized corporation,
employment as may be appropriate. submission of a bank certificate of a cash
deposit of at least P250,000.00 with authority
POEA Rules, Book II, to examine the same. For an existing
LICENSING AND REGULATION corporation, submission of a verified financial
statement, corporate tax returns for the past
RULE I two (2) years and bank certification of a cash
PARTICIPATION OF THE PRIVATE SECTOR IN THE deposit of at least P250,000.00 with the
OVERSEAS EMPLOYMENT PROGRAM corresponding authority to examine such
deposit.
Section 1. Qualifications. Only those who
possess the following qualifications may be c. Escrow agreement in the amount of
permitted to engage in the business of P200,000.00 with an accredited reputable
recruitment and placement of Filipino banking corporation to primarily answer for
workers: valid and legal claims of recruited workers as
a result of recruitment violations or money
a. Filipino citizens, partnerships or claims;
corporations at least seventy five percent
(75%) of the authorized capital stock of d. Clearance of all members of the Board of
which is owned and controlled by Filipino Directors, partner, or proprietor of the
citizens; applicant agency from the National Bureau
of Investigation (NBI) and other government
b. A minimum capitalization of Two Million agencies as the need may require, Fiscals
Pesos (P2,000,000.00) in case of a single clearance in case of persons with criminal
proprietorship or partnership and a minimum cases; provided that where the member or
paid-up capital of Two Million Pesos partner concerned is a foreigner, clearance
(P2,000,000.00) in case of a corporation; from his country of origin shall be
Provided that those with existing licenses acceptable;
shall, within four years from effectivity
hereof, increase their capitalization or paid
up capital, as the case may be, to Two e. Proof of marketing capability;
Million Pesos (P2,000,000.00) at the rate of
Two Hundred Fifty Thousand Pesos
(P250,000.00) every year. For land-based applicants:

c. Those not otherwise disqualified by law or


other government regulations to engage in An applicant with an actual principal/foreign
the recruitment and placement of workers for employer to be serviced, shall at the time of
overseas employment. application submit the following documents
for evaluation:
RULE II

ISSUANCE OF LICENSE
(1) A duly executed Special Power of
Attorney authenticated by the Philippine
Section 1. Requirements for Issuance of Embassy/Consulate or Labor Attache in the
License. - Every applicant for license to place where the principal/employers hold
operate a private employment agency or their office; or
manning agency shall submit a written
application together with the following (2) A concluded service/recruitment
requirements: agreement authenticated by the Philippine
Embassy/Consulate, or Labor Attache in the
a. A certified copy of the Articles of place where the project/job site is located;
Incorporation or of Partnership duly
registered with the Securities and Exchange (3) An authenticated manpower mobilization

Duman / Labor I / Prof. Battad / Page 21


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
may impose. The surety bonds shall include
(1) Shall select only medically and the condition that notice to the principal is
technically qualified recruits; notice to the surety and that any judgment
against the principal in connection with
(2) Shall assume full and complete matters falling under POEAs jurisdiction
responsibility for all claims and liabilities shall be binding and conclusive on the
which may arise in connection with the use surety. The surety bonds shall be co-
of license; terminus with the validity period of the
license.
(3) Shall assume joint and solidary liability
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
disability compensation and repatriation; sooner cancelled or revoked by the
Secretary or suspended by the
(4) Shall guarantee compliance with the Administration for violation of the Code and
existing labor and social legislations of the its rules and relevant decrees, orders and
Philippines and of the country of employment issuances and other rules and regulations of
of recruited workers; and the Department. Such license shall be valid
only at the place/s stated therein and when
(5) Shall assume full and complete used by the licensed person, partnership or
responsibility for all acts of its officials, corporation.
employees and representatives done in
connection with recruitment and placement; Section 6. Non-Transferability of License. -
No license shall be transferred, conveyed or
Duman / Labor I / Prof. Battad / Page 22
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
with the Administration within thirty (30) a. Copy of the companys notice to the BDT
calendar days from the date the change was or the SEC on the transfer of business
decided or approved. The corporation shall address;
be required to submit to the Administration
the Minutes of Proceedings duly certified by b. In the case of a corporation, a Board
the SEC, the bio-data and clearances of the Resolution duly registered with the SEC
new members of the Board from the authorizing the transfer of business address;
government agencies identified in Section 1
(e) of this Rule.
c. In the case of a single proprietorship, a
Section 10. Change of Other Officers and copy of the BDTs acknowledgment of the
Personnel. - Every change or termination of notice to transfer; and

Duman / Labor I / Prof. Battad / Page 23


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
d. Replenishment of the cash bond in case the bonds/deposit in escrow, or any part
such or any part thereof is garnished; thereof had been garnished, the agency
shall replenish the same. Failure to
e. Proof of financial capacity such as but not replenish such bonds/deposit in escrow
limited to verified financial statements for the within the said period shall cause the
past two (2) years, verified corporate or suspension of the license.
individual tax returns with confirmation
receipts, and compliance with capitalization Section 24. Refund of Cash Bond/Release
requirements and infusion thereof as the of Deposit in Escrow. - A licensed agency
case may be, as certified by the Securities which voluntarily surrenders its license shall
and Exchange Commission; be entitled to the refund of its deposited cash
bond and release of the deposit in escrow,
Duman / Labor I / Prof. Battad / Page 24
only after posting a surety bond of similar (b) To furnish or publish any false notice or
amount valid for four (4) years from information or document in relation to
expiration of license. recruitment or employment;

Section 25. Evaluation of Performance of (c) To give any false notice, testimony,
Agencies. - The Administration shall information or document or commit any act
undertake the annual evaluation and rating of misrepresentation for the purpose of
of the performance of licensed agencies to securing a license or authority under this
determine the merits of their continued Code.
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
Section 26. Classification and Ranking. - from oppressive terms and conditions of
The Administration may undertake the employment;
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
he has obtained employment through its (g) To obstruct or attempt to obstruct
efforts or has actually commenced inspection by the Secretary of Labor or by
employment. Such fee shall be always his duly authorized representatives;
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
3) Reports/Employment Information, Arts. 33, 14 (d) other matters or information as may be
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.
ART. 14. Employment promotion. - The (j) To become an officer or member of the
Secretary of Labor shall have the power and Board of any corporation engaged in travel
authority: agency or to be engaged directly or indirectly
in the management of a travel agency; and
(d) To require any person, establishment,
organization or institution to submit such
employment information as may be (k) To withhold or deny travel documents
prescribed by the Secretary of Labor. from applicant workers before departure for
monetary or financial considerations other
than those authorized under this Code and
4) Prohibited Practices, Art. 34 its implementing rules and regulations.

5) Illegal Recruitment, Art. 38; Sec. 6, RA 8042


ART. 34. Prohibited practices. - It shall be
unlawful for any individual, entity, licensee,
or holder of authority:
ART. 38. Illegal recruitment. - (a) Any
(a) To charge or accept, directly or indirectly, recruitment activities, including the prohibited
any amount greater than that specified in the practices enumerated under Article 34 of this
schedule of allowable fees prescribed by the Code, to be undertaken by non-licensees or
Secretary of Labor, or to make a worker pay non-holders of authority, shall be deemed
any amount greater than that actually illegal and punishable under Article 39 of this
received by him as a loan or advance; Code. The Department of Labor and
Duman / Labor I / Prof. Battad / Page 25
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


recruitment as defined herein shall be filed with the
a) Regulatory Power, Art. 36
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
may, at any time, inspect the premises, arising out of an employer-employee
books of accounts and records of any person relationship or by virtue of any law or
or entity covered by this Title, require it to contract involving Filipino workers for
submit reports regularly on prescribed forms, overseas deployment including claims for
and act on violation of any provisions of this actual, moral, exemplary and other forms of
Title. damages.
The liability of the
7) Joint and Several Liability of Agent and Principal, POEA principal/employer and the
Rules, Book II, Rule II, Sec. 1 (f) recruitment/placement agency for any and all
claims under this section shall be joint and
several. This provisions shall be
Duman / Labor I / Prof. Battad / Page 26
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); POEA Rules
Such liabilities shall continue
during the entire period or duration of the ART. 12. Statement of objectives. - It is the policy of
employment contract and shall not be the State:
affected by any substitution, amendment or
modification made locally or in a foreign f) To strengthen the network of public
country of the said contract. employment offices and rationalize the
participation of the private sector in the
Any compromise/amicable recruitment and placement of workers, locally
settlement or voluntary agreement on money and overseas, to serve national development
claims inclusive of damages under this objectives;
section shall be paid within four (4) months
from the approval of the settlement by the
appropriate authority. ART. 14. Employment promotion. - The Secretary of
Labor shall have the power and authority:
In case of termination of overseas
employment without just, valid or authorized
(a) To organize and establish new
cause as defined by law or contract, the
employment offices in addition to the existing
workers shall be entitled to the full
employment offices under the Department of
reimbursement of his placement fee with
Labor as the need arises;
interest of twelve percent (12%) per annum,
plus his salaries for the unexpired portion of
his employment contract or for three (3) EO No. 247, Sec. 3. Powers and Functions. - In the
months for every year of the unexpired term, pursuit of its mandate, the Administration shall have
whichever is less. the following powers and functions:
Non-compliance with the
mandatory periods for resolutions of cases (a) Regulate private sector participation in
provided under this section shall subject the the recruitment and overseas
responsible officials to any or all of the placement of workers by setting up a
following penalties: licensing and registration system;

(a) The salary of any such official (b) Formulate and implement, in
who fails to render his decision or resolutions coordination with appropriate entities
within the prescribed period shall be, or concerned, when necessary, a system
caused to be, withheld until the said official for promoting and monitoring the
complies therewith; overseas employment of Filipino
workers taking into consideration their
(b) Suspension for not more than
welfare and the domestic manpower
ninety (90) days; or
requirements;
(c) Dismissal from the service with
disqualifications to hold any appointive public (c) Protect the rights of Filipino workers
office for five (5) years. for overseas employment to fair and
equitable recruitment and employment
Provided, however, that the practices and ensure their welfare;
penalties herein provided shall be without
prejudice to any liability which any such (d) Exercise original and exclusive
official may have incurred under other jurisdiction to hear and decide all claims
existing laws or rules and regulations as a arising out of an employer-employee
consequence of violating the provisions of relationship or by virtue of any law or
this paragraph. contract involving Filipino workers for
overseas employment including the
3) POEA over Administrative Cases disciplinary cases; and all pre-
employment cases which are
a) Pre-employment Cases, Omnibus rules Impl. RA No. administrative in character involving or
8042, Sec. 28 (a) arising out of violation or requirement
laws, rules and regulations including
Sec. 28. Jurisdiction of the POEA. - The money claims arising therefrom, or
POEA shall exercise original and violation of the conditions for issuance
exclusive jurisdiction to hear and decide: of license or authority to recruit workers.
Duman / Labor I / Prof. Battad / Page 27
4. Sanctions, Arts. 35, 39 (a) (b) (c) (d) (e); RA
8042, Secs. 6 , 7, 10
All prohibited recruitment activities and
practices which are penal in character ART. 35. Suspension and/or cancellation of
as enumerated and defined under and license or authority. - The Minister of Labor
by virtue of existing laws, shall be shall have the power to suspend or cancel
prosecuted in the regular courts in any license or authority to recruit employees
close coordination with the appropriate for overseas employment for violation of
Departments and agencies concerned; rules and regulations issued by the Ministry
of Labor, the Overseas Employment
(e) Maintain a registry of skills for Development Board, or for violation of the
overseas placement; provisions of this and other applicable laws,
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;

(j) Promote and protect the well-being (c) Any person who is neither a licensee nor
of Filipino workers overseas; a holder of authority under this Title found
violating any provision thereof or its
(k) Develop and implement programs implementing rules and regulations shall,
for the effective monitoring of returning upon conviction thereof, suffer the penalty of
contract workers, promoting their re- imprisonment of not less than four years nor
training and re-employment or their more than eight years or a fine of not less
smooth re-integration into the than P20,000 nor more than P100,000 or
mainstream of national economy in both such imprisonment and fine, at the
coordination with other government discretion of the court;
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
surety bonds in favor of the Overseas
with the Department of Foreign Affairs,
Employment Development Board or the
Philippine Tourism Authority, Manila
National Seamen Board, as the case may
International Airport Authority,
be, both of which are authorized to use the
Department of Justice, Department of
same exclusively to promote their objectives.
Budget and Management and other
relevant government entities, in the
pursuit of its objectives. The a. Local Employment, Art. 39
Administration shall also establish and
maintain joint projects with private (SEE ABOVE)
organizations, domestic or foreign, in
the furtherance of its objectives. b. Overseas Employment, Art. 35; RA 8042, Sec. 7

(SEE ABOVE FOR ART. 35)


Duman / Labor I / Prof. Battad / Page 28
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.
of actual signing thereof by the parties up to and This provisions shall be incorporated in the contract
including the period of the expiration of the same for overseas employment and shall be a condition
without the approval of the Department of Labor and precedent for its approval. The performance bond to
Employment; be filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money
(j) For an officer or agent of a recruitment or claims or damages that may be awarded to the
placement agency to become an officer or member of workers. If the recruitment/placement agency is a
the Board of any corporation engaged in travel juridical being, the corporate officers and directors
agency or to be engaged directly on indirectly in the and partners as the case may be, shall themselves be
management of a travel agency; jointly and solidarily liable with the corporation or
partnership for the aforesaid claims and damages.
(k) To withhold or deny travel documents from
applicant workers before departure for monetary or Such liabilities shall continue during the
financial considerations other than those authorized entire period or duration of the employment contract
Duman / Labor I / Prof. Battad / Page 29
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
appropriate authority.
6. Trafficking in Persons, RA 9208 and Rules and Regulations
In case of termination of overseas Implementing RA 9208
employment without just, valid or authorized cause as
defined by law or contract, the workers shall be
entitled to the full reimbursement of his placement fee
Republic of the Philippines
with interest of twelve percent (12%) per annum, plus
his salaries for the unexpired portion of his Congress of the Philippines
employment contract or for three (3) months for every Metro Manila
year of the unexpired term, whichever is less.
Non-compliance with the mandatory periods Twelfth Congress
for resolutions of cases provided under this section Second Regular Session
shall subject the responsible officials to any or all of
the following penalties:
(a) The salary of any such official who fails
to render his decision or resolutions within the Begun held in Metro Manila on Monday, the
prescribed period shall be, or caused to be, withheld twenty-second day of July, two thousand two
until the said official complies therewith;
(b) Suspension for not more than ninety Republic Act No. 9208 May 26, 2003
(90) days; or
(c) Dismissal from the service with AN ACT TO INSTITUTE POLICIES TO
disqualifications to hold any appointive public office ELIMINATE TRAFFICKING IN PERSONS
for five (5) years. ESPECIALLY WOMEN AND CHILDREN,
Provided, however, that the penalties herein ESTABLISHING THE NECESSARY
provided shall be without prejudice to any liability INSTITUTIONAL MECHANISMS FOR THE
which any such official may have incurred under other PROTECTION AND SUPPORT OF
existing laws or rules and regulations as a TRAFFICKED PERSONS, PROVIDING
consequence of violating the provisions of this PENALTIES FOR ITS VIOLATIONS, AND FOR
paragraph. OTHER

5. Issues and Questions on Overseas Employment Be it enacted by the Senate and the House of
Representatives of the Philippines in Congress
Readings:
assembled:
Soriano, Ma. Teresa M., Implications of International
Migration, A Section 1. Title. This Act shall be known as the
Focus on the Philippine Experience, PLR, Vol 20. No. 2 "Anti-Trafficking in Persons Act of 2003".
(1996)
King, Amelia M., Social and Economic Benefits and Costs, Section 2. Declaration of Policy. It is hereby
PLR, Vol. 9, No. 1 (1985). declared that the State values the dignity of
Licuanan, Patricia B. Katas ng Saudi, a closer look. PLR Vol. every human person and guarantees the respect
9, No. 1 (1985). of individual rights. In pursuit of this policy, the
State shall give highest priority to the enactment
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
servitude of persons, not only to support
trafficked persons but more importantly, to
ensure their recovery, rehabilitation and
reintegration into the mainstream of society.

It shall be a State policy to recognize the equal


rights and inherent human dignity of women and
men as enshrined in the United Nations
Universal Declaration on Human Rights, United
Nations Convention on the Rights of the Child,
Duman / Labor I / Prof. Battad / Page 30
United Nations Convention on the Protection of force or coercion, including deprivation
Migrant Workers and their Families. United of freedom, abuse of authority or moral
Nations Convention Against Transnational ascendancy, debt-bondage or
Organized Crime Including its Protocol to deception.
Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children and (e) Sex Tourism - refers to a program
all other relevant and universally accepted organized by travel and tourism-related
human rights instruments and other international establishments and individuals which
conventions to which the Philippines is a consists of tourism packages or
signatory. activities, utilizing and offering escort
and sexual services as enticement for
Section 3. Definition of Terms. - As used in this tourists. This includes sexual services
Act: and practices offered during rest and
recreation periods for members of the
(a) Trafficking in Persons - refers to the military.
recruitment, transportation, transfer or
harboring, or receipt of persons with or (f) Sexual Exploitation - refers to
without the victim's consent or participation by a person in prostitution
knowledge, within or across national or the production of pornographic
borders by means of threat or use of materials as a result of being subjected
force, or other forms of coercion, to a threat, deception, coercion,
abduction, fraud, deception, abuse of abduction, force, abuse of authority,
power or of position, taking advantage debt bondage, fraud or through abuse of
of the vulnerability of the person, or, the a victim's vulnerability.
giving or receiving of payments or
benefits to achieve the consent of a (g) Debt Bondage - refers to the
person having control over another pledging by the debtor of his/her
person for the purpose of exploitation personal services or labor or those of a
which includes at a minimum, the person under his/her control as security
exploitation or the prostitution of others or payment for a debt, when the length
or other forms of sexual exploitation, and nature of services is not clearly
forced labor or services, slavery, defined or when the value of the
servitude or the removal or sale of services as reasonably assessed is not
organs. applied toward the liquidation of the
debt.
The recruitment, transportation, transfer,
harboring or receipt of a child for the (h) Pornography - refers to any
purpose of exploitation shall also be representation, through publication,
considered as "trafficking in persons" exhibition, cinematography, indecent
even if it does not involve any of the shows, information technology, or by
means set forth in the preceding whatever means, of a person engaged
paragraph. in real or simulated explicit sexual
activities or any representation of the
(b) Child - refers to a person below sexual parts of a person for primarily
eighteen (18) years of age or one who is sexual purposes.
over eighteen (18) but is unable to fully
take care of or protect himself/herself (i) Council - shall mean the Inter-Agency
from abuse, neglect, cruelty, Council Against Trafficking created
exploitation, or discrimination because under Section 20 of this Act.
of a physical or mental disability or
condition. Section 4. Acts of Trafficking in Persons. - It
shall be unlawful for any person, natural or
(c) Prostitution - refers to any act, juridical, to commit any of the following acts:
transaction, scheme or design involving
the use of a person by another, for (a) To recruit, transport, transfer; harbor,
sexual intercourse or lascivious conduct provide, or receive a person by any
in exchange for money, profit or any means, including those done under the
other consideration. pretext of domestic or overseas
employment or training or
(d) Forced Labor and Slavery - refer to apprenticeship, for the purpose of
the extraction of work or services from prostitution, pornography, sexual
any person by means of enticement, exploitation, forced labor, slavery,
violence, intimidation or threat, use of involuntary servitude or debt bondage;
Duman / Labor I / Prof. Battad / Page 31
(b) To introduce or match for money, compliance with government regulatory
profit, or material, economic or other and pre-departure requirements for the
consideration, any person or, as purpose of promoting trafficking in
provided for under Republic Act No. persons;
6955, any Filipino woman to a foreign
national, for marriage for the purpose of (c) To advertise, publish, print, broadcast
acquiring, buying, offering, selling or or distribute, or cause the
trading him/her to engage in prostitution, advertisement, publication, printing,
pornography, sexual exploitation, forced broadcasting or distribution by any
labor, slavery, involuntary servitude or means, including the use of information
debt bondage; technology and the internet, of any
brochure, flyer, or any propaganda
(c) To offer or contract marriage, real or material that promotes trafficking in
simulated, for the purpose of acquiring, persons;
buying, offering, selling, or trading them
to engage in prostitution, pornography, (d) To assist in the conduct of
sexual exploitation, forced labor or misrepresentation or fraud for purposes
slavery, involuntary servitude or debt of facilitating the acquisition of
bondage; clearances and necessary exit
documents from government agencies
(d) To undertake or organize tours and that are mandated to provide pre-
travel plans consisting of tourism departure registration and services for
packages or activities for the purpose of departing persons for the purpose of
utilizing and offering persons for promoting trafficking in persons;
prostitution, pornography or sexual
exploitation; (e) To facilitate, assist or help in the exit
and entry of persons from/to the country
(e) To maintain or hire a person to at international and local airports,
engage in prostitution or pornography; territorial boundaries and seaports who
are in possession of unissued, tampered
(f) To adopt or facilitate the adoption of or fraudulent travel documents for the
persons for the purpose of prostitution, purpose of promoting trafficking in
pornography, sexual exploitation, forced persons;
labor, slavery, involuntary servitude or
debt bondage; (f) To confiscate, conceal, or destroy the
passport, travel documents, or personal
(g) To recruit, hire, adopt, transport or documents or belongings of trafficked
abduct a person, by means of threat or persons in furtherance of trafficking or to
use of force, fraud, deceit, violence, prevent them from leaving the country or
coercion, or intimidation for the purpose seeking redress from the government or
of removal or sale of organs of said appropriate agencies; and
person; and
(g) To knowingly benefit from, financial
(h) To recruit, transport or adopt a child or otherwise, or make use of, the labor
to engage in armed activities in the or services of a person held to a
Philippines or abroad. condition of involuntary servitude, forced
labor, or slavery.
Section 5. Acts that Promote Trafficking in
Persons. - The following acts which promote or Section 6. Qualified Trafficking in Persons. -
facilitate trafficking in persons, shall be unlawful: The following are considered as qualified
trafficking:
(a) To knowingly lease or sublease, use
or allow to be used any house, building (a) When the trafficked person is a child;
or establishment for the purpose of
promoting trafficking in persons; (b) When the adoption is effected
through Republic Act No. 8043,
(b) To produce, print and issue or otherwise known as the "Inter-Country
distribute unissued, tampered or fake Adoption Act of 1995" and said adoption
counseling certificates, registration is for the purpose of prostitution,
stickers and certificates of any pornography, sexual exploitation, forced
government agency which issues these labor, slavery, involuntary servitude or
certificates and stickers as proof of debt bondage;

Duman / Labor I / Prof. Battad / Page 32


(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
(g) When by reason or on occasion of fine of not less than One million pesos
the act of trafficking in persons, the (P1,000,000.00) but not more than Two
offended party dies, becomes insane, million pesos (P2,000,000.00);
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
Section 6. Confidentiality. - At any stage of the fine of not less than Five hundred
investigation, prosecution and trial of an offense thousand pesos (P500,000.00) but not
under this Act, law enforcement officers, more than One million pesos
prosecutors, judges, court personnel and (P1,000,000.00);
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
the trafficked person or of the accused, or any imprisonment of six (6) years and a fine
other information tending to establish their of not less than Five hundred thousand
identities and such circumstances or information pesos (P500,000.00) but not more than
shall not be disclosed to the public. One million pesos (P1,000,000.00);

In cases when prosecution or trial is conducted (e) If the offender is a corporation,


behind closed-doors, it shall be unlawful for any partnership, association, club,
editor, publisher, and reporter or columnist in establishment or any juridical person,
case of printed materials, announcer or producer the penalty shall be imposed upon the
in case of television and radio, producer and owner, president, partner, manager,
director of a film in case of the movie industry, or and/or any responsible officer who
any person utilizing tri-media facilities or participated in the commission of the
information technology to cause publicity of any crime or who shall have knowingly
case of trafficking in persons. permitted or failed to prevent its
commission;
Duman / Labor I / Prof. Battad / Page 33
(f) The registration with the Securities defined under Section 6 shall prescribe in twenty
and Exchange Commission (SEC) and (20) years.
license to operate of the erring agency,
corporation, association, religious group, The prescriptive period shall commence to run
tour or travel agent, club or from the day on which the trafficked person is
establishment, or any place of delivered or released from the conditions of
entertainment shall be cancelled and bondage and shall be interrupted by the filing of
revoked permanently. The owner, the complaint or information and shall
president, partner or manager thereof commence to run again when such proceedings
shall not be allowed to operate similar terminate without the accused being convicted
establishments in a different name; or acquitted or are unjustifiably stopped for any
reason not imputable to the accused.
(g) If the offender is a foreigner, he shall
be immediately deported after serving Section 13. Exemption from Filing Fees. - When
his sentence and be barred permanently the trafficked person institutes a separate civil
from entering the country; action for the recovery of civil damages, he/she
shall be exempt from the payment of filing fees.
(h) Any employee or official of
government agencies who shall issue or Section 14. Confiscation and Forfeiture of the
approve the issuance of travel exit Proceeds and Instruments Derived from
clearances, passports, registration Trafficking in Persons. - In addition to the
certificates, counseling certificates, penalty imposed for the violation of this Act, the
marriage license, and other similar court shall order the confiscation and forfeiture,
documents to persons, whether juridical in favor of the government, of all the proceeds
or natural, recruitment agencies, and properties derived from the commission of
establishments or other individuals or the crime, unless they are the property of a third
groups, who fail to observe the person not liable for the unlawful act; Provided,
prescribed procedures and the however, That all awards for damages shall be
requirement as provided for by laws, taken from the personal and separate properties
rules and regulations, shall be held of the offender; Provided, further, That if such
administratively liable, without prejudice properties are insufficient, the balance shall be
to criminal liability under this Act. The taken from the confiscated and forfeited
concerned government official or properties.
employee shall, upon conviction, be
dismissed from the service and be When the proceeds, properties and instruments
barred permanently to hold public office. of the offense have been destroyed, diminished
His/her retirement and other benefits in value or otherwise rendered worthless by any
shall likewise be forfeited; and act or omission, directly or indirectly, of the
offender, or it has been concealed, removed,
(i) Conviction by final judgment of the converted or transferred to prevent the same
adopter for any offense under this Act from being found or to avoid forfeiture or
shall result in the immediate rescission confiscation, the offender shall be ordered to
of the decree of adoption. pay the amount equal to the value of the
proceeds, property or instruments of the offense.
Section 11. Use of Trafficked Persons. - Any
person who buys or engages the services of Section 15. Trust Fund. - All fines imposed
trafficked persons for prostitution shall be under this Act and the proceeds and properties
penalized as follows: forfeited and confiscated pursuant to Section 14
hereof shall accrue to a Trust Fund to be
(a) First offense - six (6) months of administered and managed by the Council to be
community service as may be used exclusively for programs that will prevent
determined by the court and a fine of acts of trafficking and protect, rehabilitate,
Fifty thousand pesos (P50,000.00); and reintegrate trafficked persons into the
mainstream of society. Such programs shall
(b) Second and subsequent offenses - include, but not limited to, the following:
imprisonment of one (1) year and a fine
of One hundred thousand pesos (a) Provision for mandatory services set
(P100,000.00). forth in Section 23 of this Act;

Section 12. Prescriptive Period. - Trafficking (b) Sponsorship of a national research


cases under this Act shall prescribe in ten (10) program on trafficking and
years: Provided, however, That trafficking cases establishment of a data collection
committed by a syndicate or in a large scale as
Duman / Labor I / Prof. Battad / Page 34
system for monitoring and evaluation (c) Department of Labor and
purposes; Employment (DOLE) - shall ensure the
strict implementation and compliance
(c) Provision of necessary technical and with the rules and guidelines relative to
material support services to appropriate the employment of persons locally and
government agencies and non- overseas. It shall likewise monitor,
government organizations (NGOs); document and report cases of trafficking
in persons involving employers and
labor recruiters.
(d) Sponsorship of conferences and
seminars to provide venue for
consensus building amongst the public, (d) Department of Justice (DOJ) - shall
the academe, government, NGOs and ensure the prosecution of persons
international organizations; and accused of trafficking and designate and
train special prosecutors who shall
handle and prosecute cases of
(e) Promotion of information and
trafficking. It shall also establish a
education campaign on trafficking.
mechanism for free legal assistance for
trafficked persons, in coordination with
Section 16. Programs that Address Trafficking the DSWD, Integrated Bar of the
in Persons. - The government shall establish Philippines (IBP) and other NGOs and
and implement preventive, protective and volunteer groups.
rehabilitative programs for trafficked persons.
For this purpose, the following agencies are
(e) National Commission on the Role of
hereby mandated to implement the following
programs; Filipino Women (NCRFW) - shall
actively participate and coordinate in the
formulation and monitoring of policies
(a) Department of Foreign Affairs (DFA) addressing the issue of trafficking in
- shall make available its resources and persons in coordination with relevant
facilities overseas for trafficked persons government agencies. It shall likewise
regardless of their manner of entry to advocate for the inclusion of the issue of
the receiving country, and explore trafficking in persons in both its local and
means to further enhance its assistance international advocacy for women's
in eliminating trafficking activities issues.
through closer networking with
government agencies in the country and
(f) Bureau of Immigration (BI) - shall
overseas, particularly in the formulation
strictly administer and enforce
of policies and implementation of
immigration and alien administration
relevant programs.
laws. It shall adopt measures for the
apprehension of suspected traffickers
The DFA shall take necessary measures both at the place of arrival and
for the efficient implementation of the departure and shall ensure compliance
Machine Readable Passports to protect by the Filipino fiancs/fiances and
the integrity of Philippine passports, spouses of foreign nationals with the
visas and other travel documents to guidance and counseling requirement
reduce the incidence of trafficking as provided for in this Act.
through the use of fraudulent
identification documents.
(g) Philippine National Police (PNP) -
shall be the primary law enforcement
It shall establish and implement a pre- agency to undertake surveillance,
marriage, on-site and pre-departure investigation and arrest of individuals or
counseling program on intermarriages. persons suspected to be engaged in
trafficking. It shall closely coordinate
(b) Department of Social Welfare and with various law enforcement agencies
Development (DSWD) - shall implement to secure concerted efforts for effective
rehabilitative and protective programs investigation and apprehension of
for trafficked persons. It shall provide suspected traffickers. It shall also
counseling and temporary shelter to establish a system to receive complaints
trafficked persons and develop a system and calls to assist trafficked persons and
for accreditation among NGOs for conduct rescue operations.
purposes of establishing centers and
programs for intervention in various (h) Philippine Overseas Employment
levels of the community. Administration (POEA) - shall implement
an effective pre-employment orientation
Duman / Labor I / Prof. Battad / Page 35
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 (c) Administrator, Philippine Overseas
in persons through the establishment of Employment Administration;
the Migrants Advisory and Information
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
to the intended exploitation set forth in this Act The members of the Council may
shall be irrelevant. designate their permanent
representatives who shall have a rank
Section 18. Preferential Entitlement Under the not lower than an assistant secretary or
Witness Protection Program. - Any provision of its equivalent to meetings, and shall
Republic Act No. 6981 to the contrary receive emoluments as may be
notwithstanding, any trafficked person shall be determined by the Council in
entitled to the witness protection program accordance with existing budget and
provided therein. accounting, rules and regulations.

Section 19. Trafficked Persons Who are Section 21. Functions of the Council. - The
Foreign Nationals. - Subject to the guidelines Council shall have the following powers and
issued by the Council, trafficked persons in the functions:
Philippines who are nationals of a foreign
country shall also be entitled to appropriate
Duman / Labor I / Prof. Battad / Page 36
(a) Formulate a comprehensive and (k) Develop the mechanism to ensure
integrated program to prevent and the timely, coordinated, and effective
suppress the trafficking in persons; response to cases of trafficking in
persons;
(b) Promulgate rules and regulations as
may be necessary for the effective (l) Recommend measures to enhance
implementation of this Act; cooperative efforts and mutual
assistance among foreign countries
(c) Monitor and oversee the strict through bilateral and/or multilateral
implementation of this Act; arrangements to prevent and suppress
international trafficking in persons;
(d) Coordinate the programs and
projects of the various member (m) Coordinate with the Department of
agencies to effectively address the Transportation and Communications
issues and problems attendant to (DOTC), Department of Trade and
trafficking in persons; Industry (DTI), and other NGOs in
monitoring the promotion of
advertisement of trafficking in the
(e) Coordinate the conduct of massive
internet;
information dissemination and campaign
on the existence of the law and the
various issues and problems attendant (n) Adopt measures and policies to
to trafficking through the LGUs, protect the rights and needs of trafficked
concerned agencies, and NGOs; persons who are foreign nationals in the
Philippines;
(f) Direct other agencies to immediately
respond to the problems brought to their (o) Initiate training programs in
attention and report to the Council on identifying and providing the necessary
action taken; intervention or assistance to trafficked
persons; and
(g) Assist in filing of cases against
individuals, agencies, institutions or (p) Exercise all the powers and perform
establishments that violate the such other functions necessary to attain
provisions of this Act; the purposes and objectives of this Act.

(h) Formulate a program for the Section 22. Secretariat to the Council. - The
reintegration of trafficked persons in Department of Justice shall establish the
cooperation with DOLE, DSWD, necessary Secretariat for the Council.
Technical Education and Skills
Development Authority (TESDA), Section 23. Mandatory Services to Trafficked
Commission on Higher Education Persons. - To ensure recovery, rehabilitation and
(CHED), LGUs and NGOs; reintegration into the mainstream of society,
concerned government agencies shall make
(i) Secure from any department, bureau, available the following services to trafficked
office, agency, or instrumentality of the persons:
government or from NGOs and other
civic organizations such assistance as (a) Emergency shelter or appropriate
may be needed to effectively implement housing;
this Act;
(b) Counseling;
(j) Complement the shared government
information system for migration (c) Free legal services which shall
established under Republic Act No. include information about the victims'
8042, otherwise known as the "Migrant rights and the procedure for filing
Workers and Overseas Filipinos Act of complaints, claiming compensation and
1995" with data on cases of trafficking in such other legal remedies available to
persons, and ensure that the proper them, in a language understood by the
agencies conduct a continuing research trafficked person;
and study on the patterns and scheme
of trafficking in persons which shall form (d) Medical or psychological services;
the basis for policy formulation and
program direction;
(e) Livelihood and skills training; and

Duman / Labor I / Prof. Battad / Page 37


(f) Educational assistance to a trafficked Section 28. Funding. - The heads of the
child. departments and agencies concerned shall
immediately include in their programs and issue
Sustained supervision and follow through such rules and regulations to implement the
mechanism that will track the progress of provisions of this Act, the funding of which shall
recovery, rehabilitation and reintegration of the be included in the annual General
trafficked persons shall be adopted and carried Appropriations Act.
out.
Section 29. Implementing Rules and
Section 24. Other Services for Trafficked Regulations. - The Council shall promulgate the
Persons. - necessary implementing rules and regulations
within sixty (60) days from the effectivity of this
Act.
(a) Legal Assistance. - Trafficked
persons shall be considered under the
category "Overseas Filipino in Distress" Section 30. Non-restriction of Freedom of
and may avail of the legal assistance Speech and of Association, Religion and the
created by Republic Act No. 8042, Right to Travel. - Nothing in this Act shall be
subject to the guidelines as provided by interpreted as a restriction of the freedom of
law. speech and of association, religion and the right
to travel for purposes not contrary to law as
guaranteed by the Constitution.
(b) Overseas Filipino Resource Centers.
- The services available to overseas
Filipinos as provided for by Republic Act Section 31. Separability Clause. - If, for any
No. 8042 shall also be extended to reason, any section or provision of this Act is
trafficked persons regardless of their held unconstitutional or invalid, the other
immigration status in the host country. sections or provisions hereof shall not be
affected thereby.
(c) The Country Team Approach. - The
country team approach under Executive Section 32. Repealing clause. - All laws,
Order No. 74 of 1993, shall be the presidential decrees, executive orders and rules
operational scheme under which and regulations, or parts thereof, inconsistent
Philippine embassies abroad shall with the provisions of this Act are hereby
provide protection to trafficked persons repealed or modified accordingly: Provided, That
insofar as the promotion of their welfare, this Act shall not in any way amend or repeal the
dignity and fundamental rights are provision of Republic Act No. 7610, otherwise
concerned. known as the "Special Protection of Children
Against Child Abuse, Exploitation and
Discrimination Act".
Section 25. Repatriation of Trafficked Persons. -
The DFA, in coordination with DOLE and other
appropriate agencies, shall have the primary Section 33. Effectivity. - This Act shall take
responsibility for the repatriation of trafficked effect fifteen (15) days from the date of its
persons, regardless of whether they are complete publication in at least two (2)
documented or undocumented. newspapers of general circulation.

If, however, the repatriation of the trafficked RULES AND REGULATIONS


persons shall expose the victims to greater risks, IMPLEMENTING REPUBLIC ACT NO.
the DFA shall make representation with the host 9208, OTHERWISE KNOWN AS THE
government for the extension of appropriate ANTI-TRAFFICKING IN PERSONS ACT
residency permits and protection, as may be OF 2003
legally permissible in the host country. Pursuant to the authority of the Inter-Agency
Council Against Trafficking (IACAT) under
Section 26. Extradition. - The DOJ, in Section 29 of Republic Act No. 9208 otherwise
consultation with DFA, shall endeavor to include known as the Anti-Trafficking in Persons Act of
offenses of trafficking in persons among 2003, the following
extraditable offenses. rules and regulations are hereby promulgated to
implement the provisions of said Act:
Section 27. Reporting Requirements. - The
Council shall submit to the President of the Article I
Philippines and to Congress an annual report of GENERAL PROVISIONS
the policies, programs and activities relative to Sec. 1. Title. These rules and regulations shall
the implementation of this Act. be known and cited as The Rules and
Regulations Implementing the Anti-Trafficking in
Persons Act of 2003.
Duman / Labor I / Prof. Battad / Page 38
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 victims
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 exploitation, or discrimination because of a
the Elimination of the Worst Forms physical or mental disability or condition;
of Child Labor); and
(viii) All other relevant and universally (e) Prostitution refers to any act, transaction,
accepted human rights instruments scheme or design involving the use of a person
and other international conventions by another, for sexual intercourse or lascivious
to which the Philippines is a State conduct in exchange for money, profit or any
Party. In all actions concerning other consideration;
children, their best interests shall be
the paramount consideration. (f) Forced Labor and Slavery refer to the
extraction of work or services from any person
Sec. 4. Construction. These rules and by means of enticement, violence, intimidation
regulations shall be liberally construed in favor or threat, use of force or coercion, including

Duman / Labor I / Prof. Battad / Page 39


deprivation of freedom, abuse of authority or (b) Secretary, Department of Social Welfare and
moral ascendancy, debt-bondage or deception; Development (DSWD) as Co-Chairperson;
(c) Secretary, Department of Foreign Affairs
(g) Sex Tourism refers to a program (DFA) as Member;
organized by travel and tourism-related (d) Secretary, Department of Labor and
establishments and individuals which consists Employment
of tourism packages or activities, utilizing and (DOLE) as Member;
offering escort and sexual services as (e) Administrator, Philippine Overseas
enticement for tourists. This includes sexual Employment
services and practices offered during rest and Administration (POEA) as Member;
recreation periods for members of the military; (f) Commissioner, Bureau of Immigration (BI) as
Member;
(h) Sexual Exploitation refers to participation (g) Director-General, Philippine National Police
by a person in prostitution or the production of (PNP) as Member;
pornographic (h) Chairperson, National Commission on the
materials as a result of being subjected to a Role of Filipino Women (NCRFW) as Member;
threat, deception, coercion, abduction, force, (i) One (1) representative from an NGO
abuse of authority, debt bondage, fraud or representingthe women sector as Member;
through abuse of a victims vulnerability; (j) One (1) representative from an NGO
representing he Overseas Filipino Workers
(i) Debt Bondage refers to the pledging by the (OFWs) sector as Member; and
debtor of his/her personal services or labor or (k) One (1) representative from an NGO
those of a person under his/her control as representing he children sector as Member.
security or payment for a debt, when the length
and nature of services is not clearly defined or The members of the Council may designate their
when the value of the services as reasonably permanent representatives who shall have a
assessed is not applied toward the liquidation of rank not lower than an Assistant Secretary or its
the debt; equivalent to attend the meetings of the Council.

(j) Pornography refers to any representation, Sec. 8. Qualifications, Selection and


through publication, exhibition, cinematography, Appointment of NGO and its
indecent Representatives. The NGOs, with national and
shows, information technology, or by whatever international networks, and its representatives to
means, of a person engaged in real or simulated the Council must have a proven track record of
explicit sexual activities or any representation of involvement in the prevention and suppression
the sexual parts of a person primarily for sexual of trafficking in persons. They shall be
purposes; and nominated by any
of the government agency representatives of the
(k) Involuntary Servitude refers to a condition Council and shall be selected by majority vote
of enforced, compulsory service induced by thereof and endorsed to the President. They
means of any scheme, plan or pattern, intended shall be appointed by the President for a term of
to cause a person to believe that, if the person three (3) years.
did not enter into or continue in such condition,
that person or another person would suffer Sec. 9. Functions of the Council. The Council
serious harm or other forms of abuse or physical shall have the following powers and functions:
restraint, or the abuse or threatened abuse of
the legal process. (a) Formulate a comprehensive and integrated
program to prevent and suppress the trafficking
Article III in persons;
THE INTER-AGENCY COUNCIL (b) Promulgate rules and regulations as may be
AGAINST TRAFFICKING (IACAT) necessary for the effective implementation of the
Act;
Sec. 6. Creation. The Inter-Agency Council (c) Monitor and oversee the strict
Against Trafficking (IACAT) shall be established implementation of the Act;
which shall be primarily tasked to coordinate, (d) Coordinate the programs and projects of the
monitor and oversee the implementation of the various member agencies to effectively address
Act. the issues and problems attendant to trafficking
in persons;
Sec. 7. Composition. The Council shall be (e) Coordinate the conduct of massive
composed of the following: information dissemination and campaign on the
existence of the law and the various issues and
(a) Secretary, Department of Justice (DOJ) as problems attendant to trafficking through the
Chairperson; local government units (LGUs), concerned
agencies, and NGOs;

Duman / Labor I / Prof. Battad / Page 40


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

Duman / Labor I / Prof. Battad / Page 41


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

Duman / Labor I / Prof. Battad / Page 42


(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
governments 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;
(iii) Adopt policies and procedures, prepare and (ii) Adopt measures for the apprehension of
implement programs geared towards the suspected traffickers both at the place of arrival
eradication of and
trafficking in persons as well as acts that departure;
promote trafficking in persons such as, but not (iii) Ensure compliance by the Filipino fiancs/
limited to, the following: fiances and spouses of foreign nationals with
(a) Comprehensive and Integrated Education the predeparture and counseling program
Program on overseas employment which shall requirement of the Act;
be undertaken in partnership with other relevant (iv) Strictly implement the requirement for a
organizations and government entities. Such parental travel authority duly processed by the
education program shall cover all stages of DSWD for

Duman / Labor I / Prof. Battad / Page 43


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

Duman / Labor I / Prof. Battad / Page 44


(v) Assist the Council in the formulation of (ii) Provide opportunities for trafficked persons in
prevention and reintegration programs for the educational mainstream through the basic
victims of education
trafficking including the demand side; and (vi) and non-formal education curricula; and
Conduct studies on the root causes, magnitude (iii) Provide education and raise consciousness
and forms of trafficking in women and document of boys/men in schools and communities in
best practices in prevention programs. order to discourage the demand side or the
use/buying of trafficked women
Sec. 18. Roles and Responsibilities of Other and children.
Relevant National Government Agencies.
Consistent with their mandates under existing (d) Department of Health (DOH)
laws, the following agencies shall integrate
human trafficking issues in their strategy and (i) Make available its resources and facilities in
program formulation and implement programs providing health care to victims of trafficking
and services for the prevention and suppression which shall,
of trafficking and for the protection of trafficked at all times, be held confidential.
victims.
They shall likewise have the following roles and (e) Department of Transportation and
responsibilities: Communication (DOTC)

(a) Department of the Interior and Local (i) Provide guidelines for the land, sea and air
Government (DILG) transport providers to train their personnel in
trafficking
(i) Conduct a systematic information in persons;
dissemination/advocacy and prevention (ii) Standardize guidelines for monitoring
campaign against trafficking in persons; trafficking in persons in every port; and
(ii) Maintain a databank for the effective (iii) Monitor the promotion of advertisement of
monitoring, documentation and prosecution of trafficking in the Internet.
cases on
trafficking in persons; (f) Commission on Human Rights (CHR)
(iii) Issue directives to the LGUs and barangays
to institutionalize recruiter-monitoring (i) Conduct advocacy and training programs
mechanisms and relating to anti-trafficking;
increase public awareness regarding trafficking (ii) Investigate and recommend for prosecution
in persons; violations of the Act;
(iv) Promote family and community (iii) Provide legal and financial assistance to
empowerment to prevent trafficking in persons; victims of trafficking; and
and (iv) Integrate anti-trafficking efforts in the
(v) Strengthen, activate and mobilize existing Barangay Human Rights Action Center
committees, councils, similar organizations and (BHRAC); and
special (v) Monitor government compliance to
bodies at the local level to prevent and suppress international human rights treaty obligations
trafficking in persons. related to the
suppression/elimination of trafficking, particularly
(b) Department of Tourism (DOT) the Convention for the Suppression of Traffic in
Persons and Exploitation of the Prostitution of
(i) Formulate and implement preventive Others, the Convention on the Elimination of All
measures to stop sex tourism packages and Forms of Discrimination Against Women, the
other activities of tourism establishments which Convention on the Rights of the Child, the
might contribute to the trafficking in persons in Convention on the Protection of Migrant
coordination with local governmentunits; and Workers and Members of Their Families, and
(ii) Provide training to tourist security officers on the UN Convention Against Transnational
surveillance, investigation and rescue operation Organized Crimes including its Protocol to
strategies. Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children.
(c) Department of Education (DepEd)
(g) National Bureau of Investigation (NBI)
(i) Integrate in the appropriate subject areas
core messages on migration and trafficking in (i) Conduct surveillance, monitor and investigate
the elementary recruiters, travel agencies, hotels and other
and secondary levels by providing lesson with establishments
emphasis on their implications and social costs suspected to be engaged in trafficking in
to persons and country; persons;

Duman / Labor I / Prof. Battad / Page 45


(ii) Coordinate closely with all the Council (ii) Vigorously advocate against trafficking of
member agencies for effective detection and children;
investigation of suspected traffickers; (iii) Improve data on trafficking in children
(iii) Formulate plans and programs for the through integration of critical and relevant
detection and prevention of trafficking, and the indicators into the
arrest and monitoring system for children;
prosecution of suspected traffickers; (iv) Adopt policies and measures that will protect
(iv) Share intelligence information on suspected and promote the rights and welfare of children
traffickers to all Council member agencies when victims of
necessary; trafficking and coordinate and monitor their
and implementation; and
(v) Foster cooperation and coordination with the (v) Address issues on trafficking of children
law enforcement agencies of other countries and through policy and program interventions.
the
INTERPOL in the investigation and (k) Philippine Information Agency (PIA)
apprehension of suspected traffickers.
(i) Enhance public awareness on trafficking in
(h) Philippine Center on Transnational Crime persons, pertinent laws and possible actions to
(PCTC) prevent
victimization and re-victimization by developing
(i) Continue to function in accordance with its public advocacy program as well as printing and
mandate pursuant to Executive Order No. 62, s. distributing
1999, on appropriate information materials.
matters concerning trafficking in persons with
transnational dimension; (l) Technical Education and Skills Development
Authority (TESDA)
(ii) Undertake strategic researches on the
structure and dynamics of trafficking in persons (i) Provide skills and entrepreneurial training to
with transnational crime dimension, predict trafficked victims; and
trends and analyze given factors for the (ii) Formulate a special program to ensure the
formulation of individual and collective provision of appropriate skills training for
strategies for the prevention and detection of trafficked victims.
trafficking in persons and the apprehension of
criminal elements involved; Sec. 19. Roles and Responsibilities of Local
(iii) Conduct case operations in coordination with Government Units (LGUs). The LGUs shall
other law enforcement agencies; and have the following roles and responsibilities:
(iv) Serve as the focal point in international law
enforcement coordination on trafficking in (a) Monitor and document cases of trafficked
persons persons in their areas of jurisdiction;
particularly with the INTERPOL. (b) Effect the cancellation of licenses of
establishments which violate the provisions of
(i) Overseas Workers Welfare Administration the Act and
(OWWA) ensure its effective prosecution;
(c) Undertake an information campaign against
(i) Assist in the information and advocacy trafficking in persons through the establishment
campaign among OFWs to prevent trafficking in of the Migrants Advisory and Information
persons; Network (MAIN) desks in municipalities and
(ii) Assist in the documentation of cases of provinces in coordination with the DILG, PIA,
trafficking and ensure the provision of its Commission on Filipino Overseas (CFO), NGOs
programs and and other concerned agencies;
services to OFWs and their families; and (iii) (d) Encourage and support community based
Include a module on anti-trafficking to its initiatives which address trafficking in persons;
predeparture (e) Provide basic social services for the
seminar. prevention, rescue, recovery, rehabilitation and
reintegration/after care support services to
(j) Council for the Welfare of Children (CWC) victims of trafficking in persons and their
families;
(i) Integrate in its development and strategic (f) Enact ordinances or issuances aimed at
frameworks issues and concerns affecting providing protection and support to trafficked
trafficking in persons and adopt measures to prevent and
children and ensure the adoption of such suppress trafficking in persons; and
frameworks by the LGUs and other (g) Strengthen, activate and mobilize existing
stakeholders; committees, councils, similar organizations and
special bodies

Duman / Labor I / Prof. Battad / Page 46


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
peoples 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 referred to the Prosecutors Office of the place
be, or has been trafficked shall immediately where the offense was committed or to the DOJ
report the same, either orally, in writing or Task Force Against Trafficking in Persons or
through other means, to any member of the Task Force on Passport Irregularities or
Council, the barangay authorities, the nearest Municipal Trial Court of
police or other law enforcement agency, the the place where the crime was committed in
local social welfare and development office or case of municipalities and non-chartered cities
the local Council for the Protection of Children.

Duman / Labor I / Prof. Battad / Page 47


for purposes of inquest or preliminary incidence of trafficking and inquire about the
investigation as the case may be. condition of the victim.
Consistent with the country team approach, the
Sec. 26. Creation of a Joint Task Force Post concerned shall send a team composed of
Against Trafficking in Persons. For the a consular officer and personnel from the
purpose of the above provisions, there shall be Philippine Overseas Labor Office (POLO) or the
created a Joint Task Force Against Trafficking in Filipino Workers Resource Center (FWRC), the
Persons to be assigned at airports composed of Office of the Social Welfare Attach as the case
Prosecution, BI, PNP, and NBI personnel and may be, to conduct a visit to the jail,
another Task Force at land transportation establishment, work site or residence of the
terminals and local seaports and airports to be victim. In the case of Posts without attached
composed of Prosecution, PNP, BI, PPA, and services, the team
PCG personnel. The DOJ National Task Force will be composed of a consular officer and
Against Trafficking in Persons shall issue the personnel from the Assistance-to-Nationals
necessary section.
operational guidelines for the effective The Post shall make representations with the
coordination, apprehension, investigation and police authorities or other relevant law
prosecution of violations of the Act. The DOJ enforcement agencies with respect to the
Task Force assigned at local seaports, airports conduct of rescue operations.
and land transportation
terminals shall cooperate or coordinate with the Rescue operation shall also be made in
local authorities, local social welfare and cooperation and close coordination with some
development officers or active NGOs concerned NGOs, local contacts or private individuals
with trafficking in persons in the locality. when necessary.

Sec. 27. Rights of the Person Arrested, In countries and areas where the services of the
Investigated or Detained. In all cases, the FWRC is not accessible, a mobile type of
rights of the person arrested, investigated or services shall be extended by the country team
detained as provided by the Philippine members to trafficked persons regardless of
Constitution and under Republic Act No. 7438 their status in the host country.
(An Act Defining Certain Rights of Persons Thereafter, the victim will be encouraged to
Arrested, Detained or Under Custodial execute a sworn statement, recounting among
Investigation As Well As The Duties of the others, the people/establishment involved in the
Arresting, Detaining and Investigating Officers, recruitment/transfer and deployment, the modus
and Providing Penalties For Violations Thereof) operandi employed to recruit, transport and
shall, at all times, be respected. deploy the victim, and other pertinent
information which could provide a lead in the
Article VIII investigation and eventual prosecution of the
RESCUE/RECOVERY AND REPATRIATION perpetrators.
OF VICTIMS
(b) Assistance to Trafficked Persons. The
Sec. 28. The Country Team Approach. The trafficked person shall be provided with
country team approach under Executive Order temporary shelter and other forms of assistance.
No. 74, series of 1993 and further enunciated in
Republic Act No. 8042 shall be the operational In countries where there is an Filipino Workers
scheme under which Philippine embassies Resource Center, the services available to
abroad shall provide protection to trafficked overseas Filipinos as provided for in Republic
persons regardless of their immigration status. Act No. 8042 shall also be extended to trafficked
Under the Country Team Approach, all officers, persons regardless of their status in the host
representatives and personnel of the Philippine country.
government posted abroad regardless of their
mother agencies shall, on a per country basis, (c) Legal Assistance Fund. Trafficked persons
act as one-country team with mission under the shall be considered under the category
leadership of the Ambassador or the head of Overseas Filipinos in
mission. Distress and may avail of the Legal Assistance
Fund created by Republic Act No. 8042, subject
Sec. 29. Rescue at the Country of to the guidelines as provided by law, including
Destination. rules and regulations issued by the DFA as
to its utilization and disbursement.
(a) Procedure. When the victim is a Filipino
national and at the time of rescue is residing Sec. 30. Repatriation of Trafficked Persons.
abroad, the embassy or consulate which has The DFA, in coordination with DOLE and other
jurisdiction over the place where the victim is appropriate agencies, shall have the primary
residing shall verify the veracity of the report of responsibility for the repatriation of trafficked

Duman / Labor I / Prof. Battad / Page 48


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
shall also be referred to the POEA for and child friendly program for the recovery,
appropriate action. The report shall also be rehabilitation
forwarded to the BI for case build up. The victim and reintegration of victims/survivors of
may be referred to the DSWD/Local Social trafficking, such as but not limited to the
Welfare following:
And Development Office or to the NBI One-Stop
Shop for psychosocial interventions,
psychological and medical examination and

Duman / Labor I / Prof. Battad / Page 49


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

Duman / Labor I / Prof. Battad / Page 50


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.
Sec. 45. Immunity from Criminal Sec. 48. Trust Fund; Sources. All fines
Prosecution. Any person who has personal imposed under the Act and the proceeds and
knowledge in the commission of any of the properties forfeited and confiscated pursuant to
offenses penalized under the Act and who Section 14 of the Act and Article IX, Section 5 of
voluntarily gives material information relative these rules and
thereto and willingly testifies against the offender regulations shall accrue to a Trust Fund to be
shall be exempt from prosecution for the offense administered and managed by the Council.

Duman / Labor I / Prof. Battad / Page 51


(d) Repatriation of victims of trafficking with due
Sec. 49. Utilization. The Trust Fund shall be regard to their safety and in consideration of
used exclusively for programs that will prevent humanitarian
acts of trafficking and protect, rehabilitate, and compassionate factors.
reintegrate trafficked persons into the
mainstream of society. Such programs shall
include, but not limited to the following:

(a) Provision for mandatory services set forth in Article XIV


Section 23 of the Act; and Section 47 of these CONFIDENTIALITY
Rules and
Regulations. Sec. 52. Confidentiality. At any stage of the
(b) Sponsorship of a national research program investigation, prosecution and trial of an offense
on trafficking and establishment of a data under this Act, law enforcement officers,
collection system for monitoring and evaluation prosecutors, judges, court personnel and
purposes; medical practitioners, as well as parties to the
(c) Provision of necessary technical and material case, shall recognize the right to privacy of the
support services to appropriate government trafficked person and the accused. Towards this
agencies and nongovernment organizations end, law enforcement officers, prosecutors and
(NGOs); judges to whom the complaint has been referred
(d) Sponsorship of conferences and seminars to may, whenever necessary to ensure a fair and
provide venue for consensus building among the impartial proceeding, and after considering all
public, the academe, government, NGOs and circumstances for the best interest of the parties,
international organizations; and order a closed-door investigation, prosecution or
(e) Promotion of information and education trial. The name and personal circumstances of
campaign on trafficking. the trafficked person or of the accused, or any
other information tending to establish their
The Trust Fund may also be used to support the identities and such circumstances or information
operations of the Secretariat. shall not be disclosed to the public. In case
when the prosecution or trial is conducted
Sec. 50. Use and Disbursement of Trust behind closed doors, it shall be unlawful for any
Fund. The use and disbursement of the trust editor, publisher, reporter or columnist in case of
fund shall be subject to the approval of at least printed materials, announcer or producer in case
two-thirds (2/3) of the members of the Council of television and radio, producer and director of
and shall be a film in case of the movie industry, or any
governed by existing government accounting person utilizing tri-media or information
and auditing rules and regulations. technology to cause publicity of and case of
trafficking in persons.
Article XIII
INTERNATIONAL COOPERATION Article XV
Sec. 51. International Cooperation. The OFFENSES AND PENALTIES
Council, in close coordination with the DFA and
other concerned agencies, shall promote Sec. 53. Acts of Trafficking in Persons. Any
cooperation, technical assistance and person, natural or juridical, who commits any of
partnership among governments and regional the following acts shall suffer the penalty of
and international organizations on the following imprisonment of twenty (20) years and a fine of
aspects: not less than One million pesos (P1,000,000.00)
but not more than Two million pesos
(a) Prevention, protection, prosecution, (P2,000,000.00):
repatriation and reintegration aspects of
trafficking in persons, especially women and (a) To recruit, transport, transfer, harbor, provide,
children; or receive a person by any means, including
(b) Systematic exchange of information and those done under the pretext of domestic or
good practices among law enforcement and overseas employment or training or
immigration authorities; apprenticeship, for the purpose of prostitution,
(c) Prevention, detection, investigation and pornography, sexual exploitation, forced labor,
prosecution of trafficking in persons, including slavery, involuntary servitude or debt bondage;
the protection (b) To introduce or match for money, profit or
of victims through exchanges and joint training material, economic or other consideration, any
at the bilateral, regional and international levels, person or, as
between and among relevant officials including provided for under Republic Act No. 6955, any
police, judges, prosecutors, immigration officers, Filipino woman with a foreign national, for
other law enforcement agents as well as marriage for the purpose of acquiring, buying,
consular authorities; and offering, selling or trading him/her to engage in

Duman / Labor I / Prof. Battad / Page 52


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
propaganda material that promotes trafficking in with Human Immunodeficiency Virus HIV or the
persons; Acquired Immune Deficiency Syndrome (AIDS).
(d) To assist in the conduct of misrepresentation
or fraud for purposes of facilitating the Sec. 56. Violation of Confidentiality
acquisition of clearances and necessary exit Provisions. Any person who violates Section 7
documents from government agencies that are of the Act and Section 52, Article XIV hereof
mandated to provide pre-departure registration shall suffer the penalty of imprisonment of six (6)
and services for departing persons for the years and a fine not less than Five hundred
purpose of promoting trafficking

Duman / Labor I / Prof. Battad / Page 53


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:
Sec. 64. Effectivity. These rules and regulations
(a) First offense six (6) months of community shall take effect fifteen (15) days after its
service as may be determined by the court and complete publication in at least two (2)
a fine of Fifty thousand pesos (P50,000.00); and newspapers of general circulation.

(b) Second and subsequent offenses 7. Alien Employment Regulation


imprisonment of one year (1) year and a fine of Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book I, Rule
One hundred thousand pesos (P100,000.00). XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines for Issuance
of Employment Permits to Foreign Nationals); Const., Art.
XII, Sec. 12
Duman / Labor I / Prof. Battad / Page 54
3. Any aggrieved party may file a Motion for
Reconsideration and/or Appeal and the
same shall be resolved based on Paragraph
4 of this Rule.

a. Coverage

Almodiel v. NLRC, 223 SCRA 341 (1993) General Milling Corp. v. Torres, 196 SCRA 215 (1991)

b. Conditions for grant of Permit, Omnibus Guidelines, Rule III.


1, 2, 3 c. Validity of AEP, Omnibus Rules, Rule II.7

RULE III. Revocation/Cancellation of Employment 7. Validity of Permits - The validity of permits shall
Permits Issued be as follows:

1. The permits issued may, motu proprio or 7.1 As a general rule, the validity of permits
upon a petition, be cancelled or revoked shall be for a period of one (1) year, unless
based on any of the following grounds: the employment contract, consultancy
services, or other modes of engagement or
1.1 Misrepresentation of facts or falsification term of office for elective officers, provides
of the documents submitted; for a longer period.
1.2 The foreign national has been declared 7.2 The effectivity of the renewal shall be on
as an undesirable alien by competent the day after the expiration of the previous
authorities; permit, regardless of whether or not the
1.3 Non-compliance with the conditions for renewal is granted before or after the
which the AEP was issued; expiration of the previous permit.
1.4 Failure to renew AEP within one (1) year 7.3 As a general rule, the permits shall be
after its expiration. valid only for the position and the employer
for which it was issued, except in case of
2. Petitions for cancellation or revocation of foreign nationals who are holders of multiple
permits issued shall be resolved within thirty positions in one corporation, where one AEP
(30) calendars from receipt thereof. shall be valid for such multiple positions.
7.4 The permits of resident foreign nationals
shall be valid for multiple employers,

Duman / Labor I / Prof. Battad / Page 55


regardless of the nature and duration of their manpower development programs;
employment, provided that they shall report
changes in their employment status and the Recognize and encourage the complementary roles of
identity of their employers to the DOLE public and private institutions in technical education and
Regional Office which has issued the permit. skills development and training systems; and

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 Guidelines, Rule


III.1 2. Apprentice

a. Definition, RA 7796, Sec. 4 (j)


RULE III. Revocation/Cancellation of Employment
Permits Issued "Apprentice" is a person undergoing training for an
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
the following grounds: b. Apprenticeable Occupation, RA 7796, Sec. 4 (m)

(m) "Apprenticeable Occupation" is an occupation


1.1 Misrepresentation of facts or falsification of the officially endorsed by a tripartite body and approved
documents submitted; for apprenticeship by the authority;
1.2 The foreign national has been declared as
an undesirable alien by competent authorities;
1.3 Non-compliance with the conditions for
c. Qualification, RA 7610, as amended by RA 7658, Sec. 12
which the AEP was issued;
1.4 Failure to renew AEP within one (1) year
after its expiration. REPUBLIC ACT NO. 7658

E. Hu ma n R eso ur ce s Dev elop men t AN ACT PROHIBITING THE EMPLOYMENT OF


CHILDREN BELOW 15 YEARS OF AGE IN PUBLIC
Reference: Arts. 57-81; Technical Education and Skills AND PRIVATE UNDERTAKINGS, AMENDING FOR
Development Authority Act of 1994 (TESDA) (RA 7796); THIS PURPOSE SECTION 12, ARTICLE VIII OF R.
Dual Training Systems Act of 1994 (RA 7686); Magna Carta A. 7610.
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
Focus technical education and skills development on following requirements in all instances are strictly
meeting the changing demands for quality middle-level complied with:
manpower; (a) The employer shall ensure the protection,
health, safety, morals and normal development of
Encourage critical and creative thinking by disseminating the child;
the scientific and technical knowledge base of middle-level
Duman / Labor I / Prof. Battad / Page 56
(b) The employer shall institute measures to the Secretary of Labor and Employment. The period
prevent the child's exploitation or discrimination of apprenticeship shall not exceed six months.
taking into account the system and level of Apprenticeship agreements providing for wage rates
remuneration, and the duration and arrangement below the legal minimum wage, which in no case shall
of working time; and start below 75 percent of the applicable minimum
(c) The employer shall formulate and implement, wage, may be entered into only in accordance with
subject to the approval and supervision of apprenticeship programs duly approved by the
competent authorities, a continuing program for Secretary of Labor and Employment. The Department
training and skills acquisition of the child. shall develop standard model programs of
In the above exceptional cases where any such apprenticeship. (As amended by Section 1, Executive
child may be employed, the employer shall first Order No. 111, December 24, 1986).
secure, before engaging such child, a work permit
from the Department of Labor and Employment ART. 72. Apprentices without compensation. - The
which shall ensure observance of the above Secretary of Labor and Employment may authorize
requirements. the hiring of apprentices without compensation whose
The Department of Labor and Employment shall training on the job is required by the school or training
promulgate rules and regulations necessary for program curriculum or as requisite for graduation or
the effective implementation of this Section." board examination.
Sec. 2. All laws, decrees, executive orders, rules 3. Costs, Art. 71
and regulations or parts thereof contrary to, or ART. 71. Deductibility of training costs. - An additional
inconsistent with this Act are hereby modified or deduction from taxable income of one-half (1/2) of the
repealed accordingly. value of labor training expenses incurred for developing
Sec. 3. This Act shall take effect fifteen (15) days the productivity and efficiency of apprentices shall be
after its complete publication in the Official granted to the person or enterprise organizing an
Gazette or in at least two (2) national newspapers apprenticeship program: Provided, That such program is
or general circulation whichever comes earlier. duly recognized by the Department of Labor and
Employment: Provided, further, That such deduction shall
Approved: November 9, 1993 not exceed ten (10%) percent of direct labor wage: and
Provided, finally, That the person or enterprise who wishes
to avail himself or itself of this incentive should pay his
d. Allowed Employment; Requirement Program Approval
apprentices the minimum wage.
Nitto Enterprises v. NLRC, 258 SCRA 654 (1995)
4. Enforcement, Arts. 65, 66, 67

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-


e. Terms and Conditions of Employment, Art. 61, 72 skills and other industrial occupations which are non-
apprenticeable. Learnersship programs must be approved
by the Authority;
ART. 61. Contents of apprenticeship agreements. -
Apprenticeship agreements, including the wage rates b. Allowed Employment, Art. 74 (b)
of apprentices, shall conform to the rules issued by
Duman / Labor I / Prof. Battad / Page 57
ART. 74. When learners may be hired. - Learners may be activity, that is considered normal given the age
employed when no experienced workers are available, the and sex of the individual;
employment of learners is necessary to prevent
curtailment of employment opportunities, and the
employment does not create unfair competition in terms of b. Policy Declaration, RA 7277, Sec. 2
labor costs or impair or lower working standards.
Sec. 2. Declaration of Policy The grant of the
c. Terms and Conditions of Employment, Arts. 75, 76 rights and privileges for disabled persons shall be
guided by the following principles:
(a) Disabled persons are part of Philippine
ART. 75. Learnership agreement. - Any employer society, thus the State shall give full support to
desiring to employ learners shall enter into a the improvement of the total well-being of
learnership agreement with them, which agreement disabled persons and their integration into the
shall include: mainstream of society. Toward this end, the State
shall adopt policies ensuring the rehabilitation,
(a) The names and addresses of the learners; self-development and self-reliance of disabled
persons. It shall develop their skills and potentials
to enable them to compete favorably for available
(b) The duration of the learnership period, which opportunities.
shall not exceed three (3) months;
(b) Disabled persons have the same rights as
(c) The wages or salary rates of the learners which other people to take their proper place in society.
shall begin at not less than seventy-five percent They should be able to live freely and as
(75%) of the applicable minimum wage; and independently as possible. This must be the
concern of everyone the family, community and
(d) A commitment to employ the learners if they so all government and nongovernment
desire, as regular employees upon completion of organizations. Disabled persons' rights must
the learnership. All learners who have been allowed never be perceived as welfare services by the
or suffered to work during the first two (2) months Government.
shall be deemed regular employees if training is
terminated by the employer before the end of the (c) The rehabilitation of the disabled persons shall
stipulated period through no fault of the learners. be the concern of the Government in order to
foster their capacity to attain a more meaningful,
The learnership agreement shall be subject to productive and satisfying life. To reach out to a
inspection by the Secretary of Labor and greater number of disabled persons, the
Employment or his duly authorized representative. rehabilitation services and benefits shall be
expanded beyond the traditional urban-based
ART. 76. Learners in piecework. - Learners centers to community based programs, that will
ensure full participation of different sectors as
employed in piece or incentive-rate jobs during the
training period shall be paid in full for the work supported by national and local government
agencies.
done.

(d) The State also recognizes the role of the


6. Differently-Abled Worker (Handicapped), RA 7277 private sector in promoting the welfare of
disabled persons and shall encourage partnership
a. Definition, RA 7277, Sec. 4 (a) (b) (c) (d) in programs that address their needs and
concerns.
Sec. 4. Definition of Terms. For purposes of
this Act, these terms are defined as follows:
(a) Disabled persons are those suffering from (e) To facilitate integration of disabled persons
restriction or different abilities, as a result of a into the mainstream of society, the State shall
mental, physical or sensory impairment, to advocate for and encourage respect for disabled
perform an activity in the manner or within the persons. The State shall exert all efforts to
range considered normal for a human being; remove all social, cultural, economic,
environmental and attitudinal barriers that are
prejudicial to disabled persons.
(b) Impairment is any loss, diminution or
aberration of psychological, physiological, or
c. Coverage, RA 7277, Sec. 3
anatomical structure or function;
Sec. 3. Coverage. This Act shall cover all disabled
(c) Disability shall mean 1) a physical or mental persons and, to the extent herein provided,
impairment that substantially limits one or more departments, offices and agencies of the National
psychological, physiological or anatomical Government or nongovernment organizations
function of an individual or activities of such involved in the attainment of the objectives of this
individual; 2) a record of such an impairment; or Act.
3) being regarded as having such an impairment;
d. Rights and Privileges, RA 7277, Secs. 5, 6, 7
(d) Handicap refers to a disadvantage for a given
individual, resulting from an impairment or a Sec. 5. Equal Opportunity for Employment. No
disability, that limits or prevents the function or disable person shall be denied access to
opportunities for suitable employment. A qualified
Duman / Labor I / Prof. Battad / Page 58
disabled employee shall be subject to the same
terms and conditions of employment and the Sec. 32. Discrimination on Employment. No
same compensation, privileges, benefits, fringe entity, whether public or private, shall
benefits, incentives or allowances as a qualified discriminate against a qualified disabled person
able bodied person. by reason of disability in regard to job application
Five percent (5%) of all casual emergency and procedures, the hiring, promotion, or discharge of
contractual positions in the Departments of Social employees, employee compensation, job training,
Welfare and Development; Health; Education, and other terms, conditions, and privileges of
Culture and Sports; and other government employment. The following constitute acts of
agencies, offices or corporations engaged in discrimination:
social development shall be reserved for disabled (a) Limiting, segregating or classifying a disabled
persons. job applicant in such a manner that adversely
affects his work opportunities;
Sec. 6. Sheltered Employment If suitable
employment for disabled persons cannot be (b) Using qualification standards, employment
found through open employment as provided in tests or other selection criteria that screen out or
the immediately preceding Section, the State shall tend to screen out a disabled person unless such
endeavor to provide it by means of sheltered standards, tests or other selection criteria are
employment. In the placement of disabled shown to be job-related for the position in
persons in sheltered employment, it shall accord question and are consistent with business
due regard to the individual qualities, vocational necessity;
goals and inclinations to ensure a good working
atmosphere and efficient production. (c) Utilizing standards, criteria, or methods of
administration that:
Sec. 7. Apprenticeship. Subject to the
provisions of the Labor Code as amended, (1) have the effect of discrimination on the basis
disabled persons shall be eligible as apprentices of disability; or
or learners: Provided, That their handicap is not
as much as to effectively impede the performance
of job operations in the particular occupation for (2) perpetuate the discrimination of others who
which they are hired; Provided, further, That after are subject to common administrative control.
the lapse of the period of apprenticeship, if found (d) Providing less compensation, such as salary,
satisfactory in the job performance, they shall be wage or other forms of remuneration and fringe
eligible for employment. benefits, to a qualified disabled employee, by
reason of his disability, than the amount to which
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.

e. Discrimination, RA 7277, Secs. 32, 33


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.
_______________________________________
_______________________________________
SECTION 3. Registration of resident aliens. All employed
_______________________________________ resident aliens shall register with the Bureau under such
_______________________________________ guidelines as may be issued by it.
_______________________________________
_______________________________________ SECTION 4. Employment permit required for entry. No
alien seeking employment, whether on resident or non-
Habol : resident status, may enter the Philippines without first
Alien Employment Regulation securing an employment permit from the Department of
Labor and Employment. If an alien enters the country under
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book I, Rule a non-working visa and wishes to be employed thereafter, he
XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines for Issuance may only be allowed to be employed upon presentation of a
of Employment Permits to Foreign Nationals); Const., Art. duly approved employment permit.
XII, Sec. 12
SECTION 5. Requirements for employment permit
La bor C ode application. The application for an employment permit
Art. 12 (e) To regulate the employment of aliens, including shall be accompanied by the following:
the establishment of a registration and/or work permit
system;
(a) Curriculum vitae duly signed by the applicant indicating
his educational background, his work experience and other
ART. 40. Employment permit of non-resident aliens. - Any data showing that he possesses high technical skills in his
alien seeking admission to the Philippines for employment trade or profession;
purposes and any domestic or foreign employer who desires
to engage an alien for employment in the Philippines shall
(b) Contract of employment between the employer and the
obtain an employment permit from the Department of Labor.
principal which shall embody the following, among others:

The employment permit may be issued to a non-resident


(1) That the non-resident alien worker shall comply with all
alien or to the applicant employer after a determination of
applicable laws and rules and regulations of the Philippines;
the non-availability of a person in the Philippines who is
competent, able and willing at the time of application to
perform the services for which the alien is desired. (2) That the non-resident alien worker and the employer
shall bind themselves to train at least two (2) Filipino
understudies for a period to be determined by the Secretary
For an enterprise registered in preferred areas of
of Labor and Employment; and
investments, said employment permit may be issued upon
recommendation of the government agency charged with
the supervision of said registered enterprise. (3) That he shall not engage in any gainful employment
other than that for which he was issued a permit.
ART. 41. Prohibition against transfer of employment. - (a)
After the issuance of an employment permit, the alien shall (c) A designation by the employer of at least two (2)
not transfer to another job or change his employer without understudies for every alien worker. Such understudies must
prior approval of the Secretary of Labor. be the most ranking regular employees in the section or
department for which the expatriates are being hired to
ensure the actual transfer of technology.
(b) Any non-resident alien who shall take up employment in
SECTION 6. Issuances of employment permit. The
violation of the provision of this Title and its implementing
Secretary of Labor and Employment may issue an
rules and regulations shall be punished in accordance with
employment permit to the applicant based on:
the provisions of Articles 289 and 290 of the Labor Code.
a) Compliance by the applicant and his employer with the
requirements of Section 2 hereof;
In addition, the alien worker shall be subject to deportation
after service of his sentence.
b) Report of the Bureau Director as to the availability or non-
availability of any person in the Philippines who is
ART. 42. Submission of list. - Any employer employing non- competent, able, and willing to do the job for which the
resident foreign nationals on the effective date of this Code services of the applicant are desired;
shall submit a list of such nationals to the Secretary of Labor
within thirty (30) days after such date indicating their
c) His assessment as to whether or not the employment of
names, citizenship, foreign and local addresses, nature of
the applicant will redound to the national interest;
employment and status of stay in the country. The Secretary
of Labor shall then determine if they are entitled to an
employment permit. d) Admissibility of the alien as certified by the Commission
on Immigration and Deportation;
Om ni bu s R ule s, Book I , R ul e XIV
e) The recommendation of the Board of Investments or
RULE XIV other appropriate government agencies if the applicant will
Employment of Aliens
Duman / Labor I / Prof. Battad / Page 61
be employed in preferred areas of investments or in 1.5. Non-Indo-Chinese Refugees who are asylum
accordance with imperatives of economic developments; and seekers and given refugee status by the United
Nations High Commissioner on Refugees
f) Payments of a P100.00 fee. (UNHCR) or the Department of Justice under DOJ
Department Order No. 94, series of 1998;
SECTION 7. Duration of employment permit. Subject to
renewal upon showing of good cause, the employment 1.6. Resident foreign nationals seeking
permit shall be valid for a minimum period of one (1) year employment in the Philippines.
starting from the date of its issuance unless sooner revoked 2. Exemption. The following categories of foreign
by the Secretary of Labor and Employment for violation of nationals are exempt from securing an
any provisions of the Code or of these Rules. employment permit in order to work in the
Philippines.
SECTION 8. Advice to Commission on Immigration and
2.1 All members of the diplomatic services and
Deportation. The Bureau shall advice the Commission on foreign government officials accredited by the
Immigration and Deportation on the issuance of an Philippine Government;
employment permit to an applicant. 2.2 Officers and staff of international
organizations of which the Philippine government
is a cooperating member, and their legitimate
SECTION 9. Understudy Training Program. The employer
shall submit a training program for his understudies to the
spouse desiring to work in the Philippines;
Bureau within thirty (30) days upon arrival of the alien 2.3 Foreign nationals elected as members of the
workers. The supervision of the training program shall be Governing board who do not occupy any other
the responsibility of the Bureau and shall be in accordance position, but have only voting rights in the
with standards 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
Om ni bu s Gu idelin es for Iss uan ce of Emp loy men t promulgated by the Congress.
Permit s to F ore ign N atio nal s D O 1 2, Nov emb er 1 2, Rule II
200 1. Procedures in the Processing of Applications for
AEP
DEPARTMENT ORDER NO. 12
1. All foreign nationals seeking employment in the
(Series of 2001) Philippines under Rule 1 hereof or their
.
prospective employers, shall file their
. applications with the DOLE Regional Office
OMNIBUS GUIDELINES FOR THE ISSUANCE OF
having jurisdiction over the intended place of
EMPLOYMENT PERMITS TO FOREIGN work.
NATIONALS.
.
. 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
3.1. Compliance bye the applicant employer or the
Coverage and Exemption
foreign national with the substantive and
documentary requirements;
1. The following shall apply for Alien Employment
Permit (AEP):
3.2. Determination of the DOLE Secretary that
1.1. All foreign nationals seeking admission to the
there is no Filipino national who is competent,
Philippines for the purpose of employment;
able and willing to do the job for which the
services of the applicant is desired;
1.2. Missionaries or religious workers who intend
to engage in gainful employment;
3.3. Assessment of the DOLE Secretary that the
employment of the foreign national will redound
1.3. Holders of Special Investors Resident Visa
to national benefit;
(SIRV), Special Retirees Resident Visa (SRRV),
4. Denial of Application for AEP - An application
Treaty Traders Visa (9d) or Special Non-immigrant
for AEP may be denied based on the ground of
Visa (47(a)2), who occupy any executive, advisory,
non-compliance with any of the requirements for
supervisory, or technical position in any
issuance of AEP or for misrepresentation of facts
establishment;
in the application or submission of falsified or
tampered documents.
1.4. Agencies, organizations or individuals
whether public or private, who secure the
services of foreign professionals to practice their Foreign nationals whose applications have been
professions in the Philippines in the Philippines denied shall not be allowed to re-apply in any of
under reciprocity and other international the DOLE Regional Offices.
agreements;

Duman / Labor I / Prof. Battad / Page 62


5. Renewal of Permit - An application for renewal 2. Petitions for cancellation or revocation of
of AEP shall be filed at least fifteen (15) days permits issued shall be resolved within thirty (30)
before its expiration. For elective officers, calendars from receipt thereof.
applications for renewal shall be filed upon
election or at least thirty (30) days before the 3. Any aggrieved party may file a Motion for
effectivity of the applicant's term of office if the Reconsideration and/or Appeal and the same shall
succeeding term of office is ascertained. be resolved based on Paragraph 4 of this Rule.
Failure to file the application for renewal of permit
within the prescribed period shall be subject to 4. Remedies in Case of Denial or Cancellation - A
fines of Five Thousand Pesos (5,000.00), if filed Motion for Reconsideration maybe filed by an
within six (6) months after the prescribed period aggrieved party within seven (7) calendar days
and Ten Thousand Pesos (10,000.00), if filed after after receipt of the Order of Denial/Cancellation.
six (6) months. Failure to renew the AEP within The DOLE Regional Director shall resolve the said
one (1) year after its expiration shall be a cause Motion for Reconsideration within ten (10)
for its revocation or cancellation. calendar days from receipt thereof.

6. The employer shall notify the DOLE-RO which A motion for Reconsideration filed after the period
issued the permit of the date of the assumption to of seven (7) calendar days but within ten (10)
duty of the foreign national within thirty (30) days calendar days after receipt of the denial shall be
from issuance of the permit. treated as an appeal.

7. Validity of Permits - The validity of permits shall An appeal from the decision of the DOLE Regional
be as follows: Director may be filed with the Secretary of labor
and Employment within ten (10) calendar days
from receipt of an Order from the DOLE Regional
7.1. As a general rule, the validity of permits shall Director. The decision of the Secretary of Labor
be for a period of one (1) year, unless the and Employment shall be final and unappealable.
employment contract, consultancy services, or
other modes of engagement or term of office for
elective officers, provides for a longer period.
Rule IV
7.2. The effectivity of the renewal shall be on the Penal and Transitory Provisions
day after the expiration of the previous permit,
regardless of whether or not the renewal is 1. The DOLE Regional Directors, after due notice
granted before or after the expiration of the and hearing, shall have the power to order and
previous permit. impose a fine of Five Thousand Pesos (P5,000.00)
on foreign nationals found working without an
7.3. As a general rule, the permits shall be valid AEP for less than one (1) year and Ten Thousand
only for the position and the employer for which it Pesos (P10,000.00) for more than one (1) year.
was issued, except in case of foreign nationals
who are holders of multiple positions in one 2. All applications for employment
corporation, where one AEP shall be valid for permit/certificates pending at the DOLE-RO upon
such multiple positions. the effectivity of these Guidelines shall be
covered and processed under the provisions of
7.4. The permits of resident foreign nationals shall these Guidelines.
be valid for multiple employers, regardless of the
nature and duration of their employment, 3. Holders of provisional and extended AEPs
provided that they shall report changes in their issued under Memorandum dated 24 August 2001
employment status and the identity of their regarding Alternative Interim Measures for the
employers to the DOLE Regional Office which has Issuance of Alien Employment Permits, shall
issued the permit. apply for an AEP pursuant to these Guidelines on
Rule III or before the expiration of the provisional and
Revocation/Cancellation of Employment Permits extended AEP.
Issued

1. The permits issued may, motu proprio or upon 4. Foreign nationals who are already working in
a petition, be cancelled or revoked based on any the country and who have not yet secured the
of the following grounds: requisite employment permit shall have ninety
1.1 Misrepresentation of facts or falsification of (90) days from the effectivity of these Guidelines
the documents submitted; to secure the said employment permit without
penalty.
1.2 The foreign national has been declared as an
undesirable alien by competent authorities; Rule V
Miscellaneous Provisions
1.3 Non-compliance with the conditions for which
the AEP was issued;
1. Manual of Operations. - The Bureau of Local
1.4 Failure to renew AEP within one (1) year after
Employment shall issue a Manual of Operations to
its expiration.
implement the provisions of these Guidelines.

Duman / Labor I / Prof. Battad / Page 63


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)
4. Effectivity. - These guidelines shall take effect all time during which an employee is suffered or
fifteen (15) days after its publication in two (2) permitted to work.
newspapers of general circulation.
Con st it ut ion , Ar t. XI I, S ec. 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
F. Con ditio ns of W ork meals.

Reference: Arts. 82-90; Omnibus Rules, Book III, Rules l, ART. 86. Night shift differential. - Every employee
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 oclock in the evening
WORKING CONDITIONS and six oclock 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
work for six (6) days or forty-eight (48) hours, in which avoid serious loss or damage to the employer or
case, they shall be entitled to an additional some other cause of similar nature;
compensation of at least thirty percent (30%) of their
Duman / Labor I / Prof. Battad / Page 64
(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.

(2) Customarily and regularly exercise discretion and (c) If the work performed was necessary, or it
independent judgment; and benefited the employer, or the employee could not
abandon his work at the end of his normal working
Duman / Labor I / Prof. Battad / Page 65
hours because he had no replacement, all time spent SECTION 8. Overtime pay. Any employee covered
for such work shall be considered as hours worked, if by this Rule who is permitted or required to work
the work was with the knowledge of his employer or beyond eight (8) hours on ordinary working days shall
immediate supervisor. be paid an additional compensation for the overtime
work in the amount equivalent to his regular wage
(d) The time during which an employee is inactive by plus at least twenty-five percent (25%) thereof.
reason of interruptions in his work beyond his control
shall be considered working time either if the SECTION 9. Premium and overtime pay for holiday
imminence of the resumption of work requires the and rest day work. (a) Except employees referred
employee's presence at the place of work or if the to under Section 2 of this Rule, an employee who is
interval is too brief to be utilized effectively and permitted or suffered to work on special holidays or
gainfully in the employee's own interest. on his designated rest days not falling on regular
holidays, shall be paid with an additional
SECTION 5. Waiting time. (a) Waiting time spent compensation as premium pay of not less than thirty
by an employee shall be considered as working time if percent (30%) of his regular wage. For work
waiting is an integral part of his work or the employee performed in excess of eight (8) hours on special
is required or engaged by the employer to wait. holidays and rest days not falling on regular holidays,
an employee shall be paid an additional
compensation for the overtime work equivalent to his
(b) An employee who is required to remain on call in rate for the first eight hours on a special holiday or
the employer's premises or so close thereto that he rest day plus at least thirty percent (30%) thereof.
cannot use the time effectively and gainfully for his
own purpose shall be considered as working while on
call. An employee who is not required to leave word at (b) Employees of public utility enterprises as well as
his home or with company officials where he may be those employed in non-profit institutions and
reached is not working while on call. organizations shall be entitled to the premium and
overtime pay provided herein, unless they are
specifically excluded from the coverage of this Rule
SECTION 6. Lectures, meetings, training programs. as provided in Section 2 hereof.
Attendance at lectures, meetings, training
programs, and other similar activities shall not be
counted as working time if all of the following (c) The payment of additional compensation for work
conditions are met: performed on regular holidays shall be governed by
Rule IV, Book Three, of these Rules.
(a) Attendance is outside of the employee's regular
working hours; SECTION 10. Compulsory overtime work. In any of
the following cases, an employer may require any of
his employees to work beyond eight (8) hours a day,
(b) Attendance is in fact voluntary; and provided that the employee required to render
overtime work is paid the additional compensation
(c) The employee does not perform any productive required by these regulations:
work during such attendance.
(a) When the country is at war or when any other
SECTION 7. Meal and Rest Periods. Every national or local emergency has been declared by
employer shall give his employees, regardless of sex, Congress or the Chief Executive;
not less than one (1) hour time-off for regular meals,
except in the following cases when a meal period of (b) When overtime work is necessary to prevent loss
not less than twenty (20) minutes may be given by the of life or property, or in case of imminent danger to
employer provided that such shorter meal period is public safety due to actual or impending emergency in
credited as compensable hours worked of the the locality caused by serious accident, fire, floods,
employee: typhoons, earthquake, epidemic or other disaster or
calamities;
(a) Where the work is non-manual work in nature or
does not involve strenuous physical exertion; (c) When there is urgent work to be performed on
machines, installations, or equipment, in order to
(b) Where the establishment regularly operates not avoid serious loss or damage to the employer or
less than sixteen (16) hours a day; some other causes of similar nature;

(c) In case of actual or impending emergencies or (d) When the work is necessary to prevent loss or
there is urgent work to be performed on machineries, damage to perishable goods;
equipment or installations to avoid serious loss which
the employer would otherwise suffer; and (e) When the completion or continuation of work
started before the 8th hour is necessary to prevent
(d) Where the work is necessary to prevent serious serious obstruction or prejudice to the business or
loss of perishable goods. operations of the employer; or

Rest periods or coffee breaks running from five (5) to (f) When overtime work is necessary to avail of
twenty (20) minutes shall be considered as favorable weather or environmental conditions where
compensable working time. performance or quality of work is dependent thereon.

Duman / Labor I / Prof. Battad / Page 66


In cases not falling within any of these enumerated in For purposes of this Rule a "day" shall mean a work
this Section, no employee may be made to work day of twenty-four (24) consecutive hours beginning
beyond eight hours a day against his will. at the same time each calendar year. A "week" shall
mean the work of 168 consecutive hours, or seven
RULE I-A consecutive 24-hour work days, beginning at the
Hours of Work of Hospital and Clinic Personnel same hour and on the same calendar day each
calendar week.
SECTION 1. General statement on coverage. This
Rule shall apply to: SECTION 6. Regular working days. The regular
working days of covered employees shall not be more
than five days in a work week. The work week may
(a) All hospitals and clinics, including those with a bed begin at any hour and on any day, including Saturday
capacity of less than one hundred (100) which are or Sunday, designated by the employer.
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
(b) All hospitals and clinics with a bed capacity of at that the change is not intended to evade the
least one hundred (100), irrespective of the size of the requirements of this Rule.
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
SECTION 2. Hospitals or clinics within the meaning of employer, any employee covered by this Rule may be
this Rule. The terms "hospitals" and "clinics" as scheduled to work for more than five (5) days or forty
used in this Rule shall mean a place devoted primarily (40) hours a week, provided that the employee is paid
to the maintenance and operation of facilities for the for the overtime work an additional compensation
diagnosis, treatment and care of individuals suffering equivalent to his regular wage plus at least thirty
from illness, disease, injury, or deformity, or in need of percent (30%) thereof, subject to the provisions of this
obstetrical or other medical and nursing care. Either Book on the payment of additional compensation for
term shall also be construed as any institution, work performed on special and regular holidays and
building, or place where there are installed beds, or on rest days.
cribs, or bassinets for twenty-four (24) hours use or
longer by patients in the treatment of disease, injuries,
deformities, or abnormal physical and mental states, SECTION 8. Hours worked. In determining the
maternity cases or sanitorial care; or infirmaries, compensable hours of work of hospital and clinic
nurseries, dispensaries, and such other similar names personnel covered by this Rule, the pertinent
by which they may be designated. provisions of Rule 1 of this Book shall apply.

SECTION 3. Determination of bed capacity and SECTION 9. Additional compensation. Hospital


population. (a) For purposes of determining the and clinic personnel covered by this Rule, with the
applicability of this Rule, the actual bed capacity of exception of those employed by the Government,
the hospital or clinic at the time of such determination shall be entitled to an additional compensation for
shall be considered, regardless of the actual or bed work performed on regular and special holidays and
occupancy. The bed capacity of hospital or clinic as rest days as provided in this Book. Such employees
determined by the Bureau of Medical Services shall also be entitled to overtime pay for services
pursuant to Republic Act No. 4226, otherwise known rendered in excess of forty hours a week, or in excess
as the Hospital Licensure Act, shall prima facie be of eight hours a day, whichever will yield the higher
considered as the actual bed capacity of such hospital additional compensation to the employee in the work
or clinic. week.

(b) The size of the population of the city or SECTION 10. Relation to Rule I. All provisions of
municipality shall be determined from the latest official Rule I of this Book which are not inconsistent with this
census issued by the Bureau of the Census and Rule shall be deemed applicable to hospital and clinic
Statistics. personnel.

SECTION 4. Personnel covered by this Rule. This RULE II


Rule applies to all persons employed by any private Night Shift Differential
or public hospital or clinic mentioned in Section 1
hereof, and shall include, but not limited to, resident SECTION 1. Coverage. This Rule shall apply to all
physicians, nurses, nutritionists, dieticians, employees except:
pharmacists, social workers, laboratory technicians
paramedical technicians, psychologists, midwives, (a) Those of the government and any of its political
and attendants. subdivisions, including government-owned and/or
controlled corporations;
SECTION 5. Regular working hours. The regular
working hours of any person covered by this Rule (b) Those of retail and service establishments
shall not be more than eight (8) hours in any one day regularly employing not more than five (5) workers;
nor more than forty (40) hours in any one week.
(c) Domestic helpers and persons in the personal
service of another;
Duman / Labor I / Prof. Battad / Page 67
(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
per cent (10%) of his regular wage for each hour of b. Coverage/Exemptions, Art. 82, 276; Rule l, Sec.s 1-4
work performed between ten o'clock in the evening
and six o'clock in the morning. (See Above)

1) Government Employees, Const., Art. IX-B, Sec.


SECTION 3. Additional compensation. Where an 2(1)
employee is permitted or suffered to work on the
period covered after his work schedule, he shall be
entitled to his regular wage plus at least twenty-five ARTICLE IX B. THE CIVIL SERVICE
per cent (25%) and an additional amount of no less COMMISSION
than ten per cent (10%) of such overtime rate for each Section 2. (1) The civil service embraces all
hour or work performed between 10 p.m. to 6 a.m. branches, subdivisions, instrumentalities, and
agencies of the Government, including government-
owned or controlled corporations with original
SECTION 4. Additional compensation on scheduled
rest day/special holiday. An employee who is charters.
required or permitted to work on the period covered
2) Managerial Employees, Art. 82; Rule I, Sec. 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
each hour of work performed. (b) Managerial employees, if they meet all of the
following conditions:

SECTION 5. Additional compensation on regular


holidays. For work on the period covered during (1) Their primary duty consists of the management of
regular holidays, an employee shall be entitled to his the establishment in which they are employed or of a
regular wage during these days plus an additional department or sub-division thereof.
compensation of no less than ten (10%) per cent of
such premium rate for each hour of work performed. (2) They customarily and regularly direct the work of
two or more employees therein.
SECTION 6. Relation to agreements. Nothing in
this Rule shall justify an employer in withdrawing or (3) They have the authority to hire or fire employees
reducing any benefits, supplements or payments as of lower rank; or their suggestions and
provided in existing individual or collective recommendations as to hiring and firing and as to the
agreements or employer practice or policy. promotion or any other change of status of other
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,
or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and

Duman / Labor I / Prof. Battad / Page 68


(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.

Asia Pacific Christening, Inc. v. Farolan, 393 SCRA 454 3) Field Personnel, Art. 82; Rule I, Sec. 2 (f)
(2004)
Merdicar Fishing Corp v. NLRC, 297 SCRA 440 (1998)

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

Duman / Labor I / Prof. Battad / Page 69


4) Dependent Family Members c. Normal Hours of Work, Art. 83

5) Domestic Helpers, Art. 141, 145; Rule I, Sec. 2 (d)


ART. 83. Normal hours of work. - The normal hours of work
Chapter III
of any employee shall not exceed eight (8) hours a day.
EMPLOYMENT OF HOUSEHELPERS
ART. 141. Coverage. - This Chapter shall apply to all persons
rendering services in households for compensation. Health personnel in cities and municipalities with a
population of at least one million (1,000,000) or in hospitals
and clinics with a bed capacity of at least one hundred (100)
"Domestic or household service" shall mean service in the
shall hold regular office hours for eight (8) hours a day, for
employers home which is usually necessary or desirable for
five (5) days a week, exclusive of time for meals, except
the maintenance and enjoyment thereof and includes
where the exigencies of the service require that such
ministering to the personal comfort and convenience of the
personnel work for six (6) days or forty-eight (48) hours, in
members of the employers household, including services of
which case, they shall be entitled to an additional
family drivers.
compensation of at least thirty percent (30%) of their
regular wage for work on the sixth day. For purposes of this
ART. 145. Assignment to non-household work. - No Article, "health personnel" shall include resident physicians,
househelper shall be assigned to work in a commercial, nurses, nutritionists, dietitians, pharmacists, social workers,
industrial or agricultural enterprise at a wage or salary rate laboratory technicians, paramedical technicians,
lower than that provided for agricultural or non-agricultural psychologists, midwives, attendants and all other hospital or
workers as prescribed herein. clinic personnel.

(d) Domestic servants and persons in the personal d. Compensable Hours of Work In general
service of another if they perform such services in the
employer's home which are usually necessary or 1) On Duty, Art. 84 (a); Rule I, Sec. 3 (a), Sec. 4 (a)
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his ART. 84. Hours worked. - Hours worked shall include (a) all
employer's household. 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.
6) Persons in the Personal Service of Another, Rule I, Sec. 2 (d)

Rest periods of short duration during working hours shall be


counted as hours worked.
(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 SECTION 3. Hours worked. The following shall be
desirable for the maintenance and enjoyment thereof, considered as compensable hours worked:
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his (a) All time during which an employee is required to
employer's household. be on duty or to be at the employer's premises or to
be at a prescribed work place; and
7) Piece Workers, Rule I, Sec. 2 (e)
SECTION 4. Principles in determining hours worked.
The following general principles shall govern in
(e) Workers who are paid by results, including those determining whether the time spent by an employee is
who are paid on piece-work, "takay," "pakiao" or task considered hours worked for purposes of this Rule:
basis, and other non-time work if their output rates are
in accordance with the standards prescribed under (a) All hours are hours worked which the employee is
Section 8, Rule VII, Book Three of these regulations, required to give his employer, regardless of whether
or where such rates have been fixed by the Secretary or not such hours are spent in productive labor or
of Labor and Employment in accordance with the involve physical or mental exertion.
aforesaid Section.

Labor Congress v. NLRC, 290 SCRA 509 (1998)


3) At Work, Art. 84 (b); Rule I, Sec. 3 (b)

Duman / Labor I / Prof. Battad / Page 70


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 b) Shorter Meal Period (Less than One Hour, but Not Less
than 20 min.), Rule I, Sec. 7, 1st par.
1) Rest Period
(See Above)
a) Short Duration or Coffee Break, Art. 84, 2nd par.; Book III,
Rule I, Sec. 7, 2nd par. 4) Waiting Time, Rule I, Sec. 5 (a)

SECTION 5. Waiting time. (a) Waiting time spent by an


Rest periods of short duration during working hours shall be employee shall be considered as working time if waiting is
counted as hours worked. an integral part of his work or the employee is required or
engaged by the employer to wait.
SECTION 7. Meal and Rest Periods. Every employer shall
Arica v. NLRC, 170 SCRA 776 (1989)
give his employees, regardless of sex, not less than one (1)
hour time-off for regular meals, 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 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 4) On Call, Rule I, Sec. 5 (b)
par.
b) An employee who is required to remain on call in the
ART. 85. Meal periods. - Subject to such regulations as the employer's premises or so close thereto that he cannot use
Secretary of Labor may prescribe, it shall be the duty of the time effectively and gainfully for his own purpose shall
every employer to give his employees not less than sixty be considered as working while on call. An employee who is
(60) minutes time-off for their regular meals. not required to leave word at his home or with company
officials where he may be reached is not working while on
SECTION 7. Meal and Rest Periods. Every employer shall call.
give his employees, regardless of sex, not less than one (1)
hour time-off for regular meals, except in the following cases 5) Inactive due to Work Interruptions, Book III, Rule I,
when a meal period of not less than twenty (20) minutes Sec. 4 (d)
may be given by the employer provided that such shorter
meal period is credited as compensable hours worked of the SECTION 4. Principles in determining hours worked. The
employee: following general principles shall govern in determining
whether the time spent by an employee is considered hours
Philippine Airlines, Inc. v. NLRC, 302 SCRA 582 (1999) 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 imminence of the
resumption of work requires the employee's presence at the

Duman / Labor I / Prof. Battad / Page 71


place of work or if the interval is too brief to be utilized ART. 87. Overtime work. - Work may be performed
effectively and 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 wage plus at least twenty-five
percent (25%) thereof. Work performed beyond eight
University of Pangasinan Faculty Union v. University of
hours on a holiday or rest day shall be paid an additional
Pangasinan, 127 SCRA 691 (1984) 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 the employer from paying the additional
compensation required in this Chapter.
6) Work after Normal Hours, Rule I, Sec. 4 (c)
ART. 89. Emergency overtime work. - Any employee may
(c) If the work performed was necessary, or it benefited the be required by the employer to perform overtime work in
employer, or the employee could not abandon his work at any of the following cases:chan robles virtual law library
the end of his normal working hours because he had no
replacement, all time spent for such work shall be
considered as hours worked, if the work was with the (a) When the country is at war or when any other national
knowledge of his employer or immediate supervisor. or local emergency has been declared by the National
Assembly or the Chief Executive;
7) Lectures, Meetings, Training Programs, Rule I, Sec. 6
(b) When it is necessary to prevent loss of life or property
or in case of imminent danger to public safety due to an
SECTION 6. Lectures, meetings, training programs. actual or impending emergency in the locality caused by
Attendance at lectures, meetings, training programs, and serious accidents, fire, flood, typhoon, earthquake,
other similar activities shall not be counted as working time epidemic, or other disaster or calamity;
if all of the following conditions are met:
(c) When there is urgent work to be performed on
(a) Attendance is outside of the employee's regular working machines, installations, or equipment, in order to avoid
hours; serious loss or damage to the employer or some other
cause of similar nature;

(b) Attendance is in fact voluntary; and


(d) When the work is necessary to prevent loss or
damage to perishable goods; and
(c) The employee does not perform any productive work
during such attendance.
(e) Where the completion or continuation of the work
started before the eighth hour is necessary to prevent
8) Travel Time serious obstruction or prejudice to the business or
operations of the employer.
Rada v. NLRC, 205 SCRA 69 (1992)

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 regular wage plus at least twenty-five
percent (25%) thereof.

SECTION 9. Premium and overtime pay for holiday 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 on his designated rest days not
f. Overtime Work Pay, Arts. 87-90; Rule I, Secs. 8-11
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

Duman / Labor I / Prof. Battad / Page 72


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 his 6) Proof of Work/Employer Obligation
employees to work beyond eight (8) hours a day, provided
that the employee required to render overtime work is paid Social Security System v. Court of Appeals, 348 SCRA 1
the additional compensation required by these regulations: (2000)

(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 performance or
quality of work is dependent thereon.
g. Nightwork, Art. 86; Rule II, Secs. 1-6
In cases not falling within any of these enumerated in this
Section, no employee may be made to work beyond eight ART. 86. Night shift differential. - Every employee shall be
hours a day against his will. paid a night shift differential of not less than ten percent
(10%) of his regular wage for each hour of work performed
1) Overtime in Ordinary Working Day, Art. 87; Rule I, between ten oclock in the evening and six oclock in the
Sec. 8 morning.

2) Emergency or Compulsory Overtime Work, Art. 89


SECTION 1. General statement on coverage. This Rule
3) Undertime Work/Leave, Art. 88 shall apply to all employers whether operating for profit or
not, including public utilities operated by private persons.
4) Additional Compensation, Art. 87
SECTION 2. Business on Sundays/Holidays. All
5) No Computation Formula Basic Contract
establishments and enterprises may operate or open for
business on Sundays and holidays provided that the
Manila Terminal Co., Inc. v. CIR, supra employees are given the weekly rest day and the benefits as
provided in this Rule.

SECTION 3. Weekly rest day. Every employer shall give


his employees a rest period of not less than twenty-four (24)
consecutive hours after every six consecutive normal work
days.
Duman / Labor I / Prof. Battad / Page 73
SECTION 4. Preference of employee. The preference of
the employee as to his weekly day of rest shall be respected
Shell Oil Co. of the Philippines, Ltd. v. National Labor Union,
by the employer if the same is based on religious grounds. 81 Phil. 315 (1948)
The employee shall make known his preference to the
employer in 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 means of a written 2. Weekly rest Periods
notice posted conspicuously in the work place at least one
week before it becomes effective. Reference: Arts. 91-93; Omnibus Rules, Book III,
Rule III, Secs. 1-9

(b) Where the rest period is not granted to all employees


simultaneously and collectively, the employer shall make Chapter II
known to the employees their respective schedules of WEEKLY REST PERIODS
weekly rest through written notices posted conspicuously in ART. 91. Right to weekly rest day. - (a) It shall be the duty
the work place at least one week before they become of every employer, whether operating for profit or not, to
effective. provide each of his employees a rest period of not less than
twenty-four (24) consecutive hours after every six (6)
SECTION 6. When work on rest day authorized. An consecutive normal work days.
employer may require any of his employees to work on his
scheduled rest day for the duration of the following (b) The employer shall determine and schedule the weekly
emergencies and exceptional conditions: rest day of his employees subject to collective bargaining
agreement and to such rules and regulations as the
(a) In case of actual or impending emergencies caused by Secretary of Labor and Employment may provide. However,
serious accident, fire, flood, typhoon, earthquake, epidemic the employer shall respect the preference of employees as to
or other disaster or calamity, to prevent loss of life or their weekly rest day when such preference is based on
property, or in cases of force majeure or imminent danger to religious grounds.
public safety;
ART. 92. When employer may require work on a rest day. -
(b) In case of urgent work to be performed on machineries, The employer may require his employees to work on any
equipment or installations to avoid serious loss which the day:
employer would otherwise suffer;
(a) In case of actual or impending emergencies caused by
(c) In the event of abnormal pressure of work due to special serious accident, fire, flood, typhoon, earthquake, epidemic
circumstances, where the employer cannot ordinarily be or other disaster or calamity to prevent loss of life and
expected to resort to other measures; property, or imminent danger 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 serious loss
which the employer would otherwise suffer;
(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 members of a vessel to (c) In the event of abnormal pressure of work due to special
complete a voyage and in other similar cases; and 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 performance or quality of (d) To prevent loss or damage to perishable goods;
work is dependent thereon.
(e) Where the nature of the work requires continuous
No employee shall be required against his will to work on his operations and the stoppage of work may result in
scheduled rest day except under circumstances provided in irreparable injury or loss to the employer; and
this Section: Provided, However, that where an employee
volunteers to work on his rest day under other (f) Under other circumstances analogous or similar to the
circumstances, he shall express such desire in writing, foregoing as determined by the Secretary of Labor and
subject to the provisions of Section 7 hereof regarding Employment.
additional compensation.

ART. 93. Compensation for rest day, Sunday or holiday work.


1) Coverage/Exclusion, Rule II, Sec. 1 - (a) Where an employee is made or permitted to work on
his scheduled rest day, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular
2) Additional Compensation, Art. 86
wage. An employee shall be entitled to such additional

Duman / Labor I / Prof. Battad / Page 74


compensation for work performed on Sunday only when it is (a) In case of actual or impending emergencies caused by
his established rest day.chan robles virtual law library serious accident, fire, flood, typhoon, earthquake, epidemic
or other disaster or calamity, to prevent loss of life or
property, or in cases of force majeure or imminent danger to
(b) When the nature of the work of the employee is such
public safety;
that he has no regular workdays and no regular rest days
can be scheduled, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular (b) In case of urgent work to be performed on machineries,
wage for work performed on Sundays and holidays. equipment or installations to avoid serious loss which the
employer would otherwise suffer;
(c) Work performed on any special holiday shall be paid an
additional compensation of at least thirty percent (30%) of (c) In the event of abnormal pressure of work due to special
the regular wage of the employee. Where such holiday work circumstances, where the employer cannot ordinarily be
falls on the employees scheduled rest day, he shall be expected to resort to other measures;
entitled to an additional compensation of at least fifty per
cent (50%) of his regular wage.
(d) To prevent serious loss of perishable goods;

(d) Where the collective bargaining agreement or other


(e) Where the nature of the work is such that the employees
applicable employment contract stipulates the payment of a
have to work continuously for seven (7) days in a week or
higher premium pay than that prescribed under this Article,
more, as in the case of the crew members of a vessel to
the employer shall pay such higher rate.
complete a voyage and in other similar cases; and

(f) When the work is necessary to avail of favorable weather


Weekly Rest Periods
or environmental conditions where performance or quality of
work is dependent thereon.
SECTION 1. General statement on coverage. This Rule
shall apply to all employers whether operating for profit or
No employee shall be required against his will to work on his
not, including public utilities operated by private persons.
scheduled rest day except under circumstances provided in
this Section: Provided, However, that where an employee
SECTION 2. Business on Sundays/Holidays. All volunteers to work on his rest day under other
establishments and enterprises may operate or open for circumstances, he shall express such desire in writing,
business on Sundays and holidays provided that the subject to the provisions of Section 7 hereof regarding
employees are given the weekly rest day and the benefits as additional compensation.
provided in this Rule.
SECTION 7. Compensation on rest day/Sunday/holiday.
SECTION 3. Weekly rest day. Every employer shall give (a) Except those employees referred to under Section 2,
his employees a rest period of not less than twenty-four (24) Rule I, Book Three, an employee who is made or permitted
consecutive hours after every six consecutive normal work to work on his scheduled rest day shall be paid with an
days. additional compensation of at least 30% of his regular wage.
An employee shall be entitled to such additional
compensation for work performed on a Sunday only when it
SECTION 4. Preference of employee. The preference of
is his established rest day.
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 make known his preference to the (b) Where the nature of the work of the employee is such
employer in writing at least seven (7) days before the that he has no regular work days and no regular rest days
desired effectivity of the initial rest day so preferred. can be scheduled, he shall be paid an additional
compensation of at least 30% of his regular wage for work
performed on Sundays and holidays.
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 (c) Work performed on any special holiday shall be paid with
undertaking and the employer cannot normally be expected an additional compensation of at least 30% of the regular
to resort to other remedial measures, the employer may so wage of the employees. Where such holiday work falls on
schedule the weekly rest day of his choice for at least two the employee's scheduled rest day, he shall be entitled to
(2) days in a month. additional compensation of at least 50% of his regular wage.

SECTION 5. Schedule of rest day. (a) Where the weekly (d) The payment of additional compensation for work
rest is given to all employees simultaneously, the employer performed on regular holiday shall be governed by Rule IV,
shall make known such rest period by means of a written Book Three, of these regulations.
notice posted conspicuously in the work place at least one
week before it becomes effective.
(e) Where the collective bargaining agreement or other
applicable employment contract stipulates the payment of a
(b) Where the rest period is not granted to all employees higher premium pay than that prescribed under this Section,
simultaneously and collectively, the employer shall make the employer shall pay such higher rate.
known to the employees their respective schedules of
weekly rest through written notices posted conspicuously in
SECTION 8. Paid-off days. Nothing in this Rule shall justify
the work place at least one week before they become
an employer in reducing the compensation of his employees
effective.
for the unworked Sundays, holidays, or other rest days
which are considered paid-off days or holidays by agreement
SECTION 6. When work on rest day authorized. An or practice subsisting upon the effectivity of the Code.
employer may require any of his employees to work on his
scheduled rest day for the duration of the following
SECTION 9. Relation to agreements. Nothing herein shall
emergencies and exceptional conditions:
prevent the employer and his employees or their
Duman / Labor I / Prof. Battad / Page 75
representatives in entering into any agreement with terms c. Premium Pay, Art. 93 9a) (b) (c)
more favorable to the employees than those provided
herein, or be used to diminish any benefit granted to the
employees under existing laws, agreements, and voluntary d. CBA on Higher Premium Pay, Art. 93 (d)
employer 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

ART. 82. Coverage. - The provisions of this Title shall apply (b) The employer may require an employee to work on any
to employees in all establishments and undertakings holiday but such employee shall be paid a compensation
whether for profit or not, but not to government employees, equivalent to twice his regular rate; and
managerial employees, field personnel, members of the
family of the employer who are dependent on him for (c) As used in this Article, "holiday" includes: New Years
support, domestic helpers, persons in the personal service of Day, Maundy Thursday, Good Friday, the ninth of April, the
another, and workers who are paid by results as determined first of May, the twelfth of June, the fourth of July, the
by the Secretary of Labor in appropriate regulations. thirtieth of November, the twenty-fifth and thirtieth of
December and the day designated by law for holding a
As used herein, "managerial employees" refer to those general election.
whose primary duty consists of the management of the
establishment in which they are employed or of a EXECUTIVE ORDER NO. 203 June 30, 1987
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
"Field personnel" shall refer to non-agricultural employees THE PHILIPPINES AND FOR OTHER PURPOSES
who regularly perform their duties away from the principal
place of business or branch office of the employer and
whose actual hours of work in the field cannot be WHEREAS, a Cabinet Assistance Secretariat
determined with reasonable certainty. Committee was constituted to review all existing
public holidays;
b. Determination; compulsory Work; Compensation, Arts. 91,
92 WHEREAS, there are too many holidays being
observed which has caused confusion among the
Manila Electric Co. v. Public Utilities Employees Assn, 79 Phil. public.
409
NOW, THEREFORE, I, CORAZON C. AQUINO,
President of the Philippines, do hereby order:

Sec. 1. Unless otherwise modified by law, order or


proclamation, the following regular holidays and
special days shall be observed in this country:
A. Regular Holidays
New Year's Day January
Maundy Thursday Movable date
Good Friday Movable date
Araw ng Kagitingan April 9
(Bataan and Corregidor
Day)
Labor Day May 1
Independence Day June 12
National Heroes Day Last Sunday of
August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
B. Nationwide Special Days
All Saints Day November 1
Last Day of the Year December 31

Duman / Labor I / Prof. Battad / Page 76


Sec. 2. Henceforth, the terms "legal or regular As used in this Rule legal or regular holiday and special
holiday" and "special holiday", as used in laws, holiday shall now be referred to as 'regular holiday' and
orders, rules and regulations or other issuances shall 'special day', respectively.
now be referred to as "regular holiday" and "special
day", respectively. SECTION 4. Compensation for holiday work. Any
employee who is permitted or suffered to work on any
Sec. 3. All laws, orders, issuances, rules and regular holiday, not exceeding eight (8) hours, shall be paid
at least two hundred percent (200%) of his regular daily
regulations or parts thereof inconsistent with this
wage. If the holiday work falls on the scheduled rest day of
Executive Order are hereby repealed or modified the employee, he shall be entitled to an additional premium
accordingly. pay of at least 30% of his regular holiday rate of 200%
based on his regular wage rate.
Sec. 4. This Executive Order shall take effect
immediately. SECTION 5. Overtime pay for holiday work. For work
performed in excess of eight hours on a regular holiday, an
Done in the City of Manila, this 30th day of June, in employee shall be paid an additional compensation for the
the year of Our Lord, nineteen hundred and eighty- overtime work equivalent to his rate for the first eight hours
on such holiday work plus at least 30% thereof.
seven.

Where the regular holiday work exceeding eight hours falls


RULE IV
on the scheduled rest day of the employee, he shall be paid
Holidays with Pay
an additional compensation for the overtime work equivalent
to his regular holiday-rest day for the first 8 hours plus 30%
SECTION 1. Coverage. This rule shall apply to all thereof. The regular holiday rest day rate of an employee
employees except: shall consist of 200% of his regular daily wage rate plus
30% thereof.
(a) Those of the government and any of the political
subdivision, including government-owned and controlled SECTION 6. Absences. (a) All covered employees shall be
corporation; entitled to the benefit provided herein when they are on
leave of absence with pay. Employees who are on leave of
(b) Those of retail and service establishments regularly absence without pay on the day immediately preceding a
employing less than ten (10) workers; regular holiday may not be paid the required holiday pay if
he has not worked on such regular holiday.

(c) Domestic helpers and persons in the personal service of


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

(e) Field personnel and other employees whose time and (c) Where the day immediately preceding the holiday is a
performance is unsupervised by the employer including non-working day in the establishment or the scheduled rest
those who are engaged on task or contract basis, purely day of the employee, he shall not be deemed to be on leave
commission basis, or those who are paid a fixed amount for of absence on that day, in which case he shall be entitled to
performing work irrespective of the time consumed in the the holiday pay if he worked on the day immediately
performance thereof. preceding the non-working day or rest day.

SECTION 2. Status of employees paid by the month. SECTION 7. Temporary or periodic shutdown and temporary
Employees who are uniformly paid by the month, cessation of work. (a) In cases of temporary or periodic
irrespective of the number of working days therein, with a shutdown and temporary cessation of work of an
salary of not less than the statutory or established minimum establishment, as when a yearly inventory or when the
wage shall be paid for all days in the month whether worked repair or cleaning of machineries and equipment is
or not. undertaken, the regular holidays falling within the period
shall be compensated in accordance with this Rule.
For this purpose, the monthly minimum wage shall not be
less than the statutory minimum wage multiplied by 365 (b) The regular holiday during the cessation of operation of
days divided by twelve. an enterprise due to business reverses as authorized by the
Secretary of Labor and Employment may not be paid by the
SECTION 3. Holiday Pay. Every employer shall pay his employer.
employees their regular daily wage for any worked regular
holidays. SECTION 8. Holiday pay of certain employees. (a) Private
school teachers, including faculty members of colleges and
As used in the rule, the term 'regular holiday' shall universities, may not be paid for the regular holidays during
exclusively refer to: New Year's Day, Maundy Thursday, Good semestral vacations. They shall, however, be paid for the
Friday, the ninth of April, the first of May, the twelfth of regular holidays during Christmas vacation;
June, the last Sunday of August, the thirtieth of November,
the twenty-fifth and thirtieth of December. Nationwide (b) Where a covered employee, is paid by results or output,
special days shall include the first of November and the last such as payment on piece work, his holiday pay shall not be
day of December. 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.

Duman / Labor I / Prof. Battad / Page 77


(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.
Cirineo Bowling Plaza, Inc. v. Gerry Sensing, et al., 448 SCRA
(b) Where a regular holiday falls on a Sunday, the following 175 (2005)
day shall be considered a special holiday for purposes of the
Labor Code, unless said day is also a regular holiday.

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

g) Service Establishment is one principally engaged in the


sale of service to individuals for their own or household use
and is generally recognized as such;
c. Holiday Pay, Art. 94 (b)

b. Coverage/Exclusions, Art. 94 (a) (b) The employer may require an employee to work on any
holiday but such employee shall be paid a compensation
ART. 94. Right to holiday pay. - (a) Every worker shall be equivalent to twice his regular rate; and
paid his regular daily wage during regular holidays, except in
retail and service establishments regularly employing less 1) Faculty in Private School, Rule IV, Sec. 8 (a)
than ten (10) workers;
SECTION 8. Holiday pay of certain employees. (a) Private
Mantrade/FMMC Division Employees and Workers Union v. school teachers, including faculty members of colleges and
Bacungan, 144 SCRA 510 (1986) 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)

Duman / Labor I / Prof. Battad / Page 78


(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 on the
first day of the tenth lunar month of Shawwal,
ART. 93. Compensation for rest day, Sunday or holiday work. commemorating the end of the fasting season;
- (a) Where an employee is made or permitted to work on and
his scheduled rest day, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular (e) 'Id-ul-Adha (Hari Raja Haji), which falls on the
wage. An employee shall be entitled to such additional tenth day of the twelfth lunar month of Dhu 1-
compensation for work performed on Sunday only when it is Hijja.
his established rest day.

Ar ti cle 1 70. Provinces and cities where officially observed.


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

Ar ti cle 1 71. Dates of observance. The dates of Muslim


holidays shall be determined by the Office of the President
of the Philippines in accordance with the Muslim Lunar
Calendar (Hijra).

Ar ti cle 1 72. Observance of Muslim employees.

(1) All Muslim government officials and employees


in places other than those enumerated under
Article 170 shall also be excused from reporting to
office in order that they may be able to observe
Muslim holidays.

(2) The President of the Philippines may, by


proclamation, require private offices, agencies or
establishments to excuse their Muslim employees
from reporting for work during a Muslim holiday
without reduction in their usual compensation.

San Miguel Corp. v. Court of Appeals, 375 SCRA 311 (2002)


8) Muslim Holiday, Art. 169-172; PD 1083 (Feb. 1977)

BO OK FI VE
MI SCE LL AN EOU S AN D T RAN SI TORY PR OV ISI ON S

TI TL E I
MU SL IM H OL IDA YS

Ar ti cle 1 69. Official Muslim holidays. The following are


hereby recognized as legal Muslim holidays:

Duman / Labor I / Prof. Battad / Page 79


d. Absences, Rule lV, Secs. 6 (a), 10
Labor Congress v. NLRC, supra

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

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 he worked on the day immediately
preceding the non-working day or rest day.

4. Service Incentive Leave

Reference: Art. 95; Omnibus Rules, Book III, Rule V

ART. 95. Right to service incentive leave. - (a) Every


employee who has rendered at least one year of service
shall be entitled to a yearly service incentive leave of five
days with pay. Auto Bus Transport Systems, Inc. v. Bautista, supra

(b) This provision shall not apply to those who are already 5. Paternity Leave, Paternity Leave of 1996 (RA 8187), Secs. 1-
enjoying the benefit herein provided, those enjoying 6; Impl. Rules
vacation leave with pay of at least five days and those
employed in establishments regularly employing less than
REPUBLIC ACT NO. 8187
ten employees or in establishments exempted from granting
this benefit by the Secretary of Labor and Employment after
considering the viability or financial condition of such AN ACT GRANTING PATERNITY LEAVE OF
establishment. SEVEN (7) DAYS WITH FULL PAY TO ALL
MARRIED MALE EMPLOYEES IN THE PRIVATE
AND PUBLIC SECTORS FOR THE FIRST FOUR (4)
(c) The grant of benefit in excess of that provided herein
DELIVERIES OF THE LEGITIMATE SPOUSE WITH
shall not be made a subject of arbitration or any court or
WHOM HE IS COHABITING AND FOR OTHER
administrative action.
PURPOSES.

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


Be it enacted by the Senate and House of
Makati Haberdashery Inc. N. NLRC, 179 SCRA 449 (1989) Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. - This Act shall be known


as the "Paternity Leave Act of 1996".

SECTION 2. Notwithstanding any law, rules and


regulations to the contrary, every married male
employee in the private and public sectors shall be
Duman / Labor I / Prof. Battad / Page 80
entitled to a paternity leave of seven (7) days with full
pay for the first four (4) deliveries of the legitimate (SGD.) JOSE DE VENECIA, JR.
spouse with whom he is cohabiting. The male Speaker of the House of Representatives
employee applying for paternity leave shall notify his
employer of the pregnancy of his legitimate spouse
and the expected date of such delivery.

For purposes, of this Act, delivery shall include This Act, which is a consolidation of Senate Bill
childbirth or any miscarriage. No. 1032 and House Bill No. 7134 was finally passed
by the Senate and the House of Representatives on
SECTION 3. Definition of Term. - For purposes of June 8, 1996.
this Act, Paternity Leave refers to the benefits
granted to a married male employee allowing him not
to report for work for seven (7)
days but continues to earn the compensation therefor,
on the condition that his spouse has delivered a child 1. Parental Leave, Solo Parents Welfare Act of 2000 (RA 8972);
or suffered a miscarriage for purposes of enabling Impl. Rules
him to effectively lend
support to his wife in her period of recovery and/or in
the nursing of the newly-born child. REPUBLIC ACT NO. 8972

SECTION 4. The Secretary of Labor and AN ACT PROVIDING FOR BENEFITS AND
Employment, the Chairman of the Civil Service PRIVILEGES TO SOLO PARENTS AND THEIR
Commission and the Secretary of Health shall, within CHILDREN, APPROPRIATING FUNDS THEREFOR
thirty (30) days from the effectivity of AND FOR OTHER PURPOSES
this Act, issue such rules and regulations necessary
for the proper implementation of the provisions
hereof. Be it enacted by the Senate and House of
Representatives of the Philippines Congress
SECTION 5. Any person, corporation, trust, firm, assembled:
partnership, association or entity found violating this
Act or the rules and regulations promulgated Section 1. Title. - This Act shall be known as the
thereunder shall be punished by a fine not exceeding "Solo Parents' Welfare Act of 2000."
Twenty-five thousand pesos (P25,000) or
imprisonment of not less than thirty (30)days nor more Section 2. Declaration of Policy. - It is the policy of
than six (6) months. the State to promote the family as the foundation of
the nation, strengthen its solidarity and ensure its total
If the violation is committed by a corporation, trust development. Towards this end, it shall develop a
or firm, partnership, association or any other entity, comprehensive program of services for solo parents
the penalty of imprisonment shall be imposed on the and their children to be carried out by the Department
entity's responsible officers, including, but not limited of Social Welfare and Development (DSWD), the
to, the president, vice-president, chief executive Department of Health (DOH), the Department of
officer, general manager, managing director or Education, Culture and Sports (DECS), the
partner directly responsible therefor. Department of the Interior and Local Government
(DILG), the Commission on Higher Education
SECTION 6. Nondiminution Clause. - Nothing in (CHED), the Technical Education and Skills
this Act shall be construed to reduce any existing Development Authority (TESDA), the National
benefits of any form granted under existing laws, Housing Authority (NHA), the Department of Labor
decrees, executive orders, or any and Employment (DOLE) and other related
contract agreement or policy between employer and government and nongovernment agencies.
employee.

SECTION 7. Repealing Clause. - All laws, Section 3. Definition of Terms. - Whenever used in
ordinances, rules, regulations, issuances, or parts this Act, the following terms shall mean as follows:
thereof which are inconsistent with this Act are
hereby repealed or modified accordingly. (a) "Solo parent" - any individual who falls
under any of the following categories:
SECTION 8. Effectivity. - This Act shall take effect
(15) days from its publication in the Official Gazette
(1) A woman who gives birth as a
or in at least two (2) newspapers of national
result of rape and other crimes
circulation.
against chastity even without a final
conviction of the offender: Provided,
That the mother keeps and raises
Approved: the child;

(2) Parent left solo or alone with the


(SGD.) NEPTALI A. GONZALES responsibility of parenthood due to
President of the Senate death of spouse;

Duman / Labor I / Prof. Battad / Page 81


(3) Parent left solo or alone with the and duties of the parents as defined in Article
responsibility of parenthood while 220 of Executive Order No. 209, as
the spouse is detained or is serving amended, otherwise known as the "Family
sentence for a criminal conviction Code of the Philippines."
for at least one (1) year;
(d) "Parental leave" - shall mean leave
(4) Parent left solo or alone with the benefits granted to a solo parent to enable
responsibility of parenthood due to him/her to perform parental duties and
physical and/or mental incapacity of responsibilities where physical presence is
spouse as certified by a public required.
medical practitioner;
(e) "Flexible work schedule" - is the right
(5) Parent left solo or alone with the granted to a solo parent employee to vary
responsibility of parenthood due to his/her arrival and departure time without
legal separation or de facto affecting the core work hours as defined by
separation from spouse for at least the employer.
one (1) year, as long as he/she is
entrusted with the custody of the Section 4. Criteria for Support. - Any solo parent
children; whose income in the place of domicile falls below the
poverty threshold as set by the National Economic
(6) Parent left solo or alone with the and Development Authority (NEDA) and subject to the
responsibility of parenthood due to assessment of the DSWD worker in the area shall be
declaration of nullity or annulment eligible for assistance: Provided, however, That any
of marriage as decreed by a court solo parent whose income is above the poverty
or by a church as long as he/she is threshold shall enjoy the benefits mentioned in
entrusted with the custody of the Sections 6, 7 and 8 of this Act.
children;
Section 5. Comprehensive Package of Social
(7) Parent left solo or alone with the Development and Welfare Services. - A
responsibility of parenthood due to comprehensive package of social development and
abandonment of spouse for at least welfare services for solo parents and their families will
one (1) year; be developed by the DSWD, DOH, DECS, CHED,
TESDA, DOLE, NHA and DILG, in coordination with
(8) Unmarried mother/father who local government units and a nongovernmental
has preferred to keep and rear organization with proven track record in providing
her/his child/children instead of services for solo parents.
having others care for them or give
them up to a welfare institution; The DSWD shall coordinate with concerned agencies
the implementation of the comprehensive package of
(9) Any other person who solely social development and welfare services for solo
provides parental care and support parents and their families. The package will initially
to a child or children; include:

(10) Any family member who (a) Livelihood development services which
assumes the responsibility of head include trainings on livelihood skills, basic
of family as a result of the death, business management, value orientation and
abandonment, disappearance or the provision of seed capital or job
prolonged absence of the parents placement.
or solo parent.
(b) Counseling services which include
A change in the status or individual, peer group or family counseling.
circumstance of the parent claiming This will focus on the resolution of personal
benefits under this Act, such that relationship and role conflicts.
he/she is no longer left alone with
the responsibility of parenthood, (c) Parent effectiveness services which
shall terminate his/her eligibility for include the provision and expansion of
these benefits. knowledge and skills of the solo parent on
early childhood development, behavior
(b) "Children" - refer to those living with and management, health care, rights and duties
dependent upon the solo parent for support of parents and children.
who are unmarried, unemployed and not
more than eighteen (18) years of age, or (d) Critical incidence stress debriefing which
even over eighteen (18) years but are includes preventive stress management
incapable of self-support because of mental strategy designed to assist solo parents in
and/or physical defect/disability. coping with crisis situations and cases of
abuse.
(c) "Parental responsibility" - with respect to
their minor children shall refer to the rights
Duman / Labor I / Prof. Battad / Page 82
(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
(1) Scholarship programs for qualified solo its enactment into law and thereafter.1awphil.net
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
thereof inconsistent with the provisions of this Act are
(2) Nonformal education programs hereby repealed, amended or modified accordingly.
appropriate for solo parents and their
children. Section 16. Separability Clause. - If any provision of
this Act is held invalid or unconstitutional, other
The DECS, CHED and TESDA shall promulgate rules provisions not affected thereby shall continue to be in
and regulations for the proper implementation of this full force and effect.
program.
Section 17. Effectivity Clause. - This Act shall take
Section 10. Housing Benefits. - Solo parents shall be effect fifteen (15) days following its complete
given allocation in housing projects and shall be publication in the Official Gazette or in at least two (2)
provided with liberal terms of payment on said newspaper of general circulation.
government low-cost housing projects in accordance
with housing law provisions prioritizing applicants Approved.
below the poverty line as declared by the NEDA.
(Sgd.)
Section 11. Medical Assistance. - The DOH shall
develop a comprehensive health care program for JOSEPH EJERCITO ESTRADA
solo parents and their children. The program shall be President of the Philippines
implemented by the DOH through their retained
hospitals and medical centers and the local Republic of the Philippines
government units (LGUs) through their National Economic Development Authority
provincial/district/city/municipal hospitals and rural SOCIAL DEVELOPMENT COMMITTEE (SDC)
health units (RHUs). Resolution No.2 (Series 2002)
APPROVING THE IMPLEMENTING RULES AND
Section 12. Additional Powers and Functions of the REGULATIONS (IRR)
DSWD. The DSWD shall perform the following OF REPUBLIC ACT 8972 PROVIDING FOR
additional powers and functions relative to the welfare BENEFITS AND PRIVILEGES
of solo parents and their families: TO SOLO PARENTS AND THEIR CHILDREN
WHEREAS, it is the policy of the State to promote the
(a) Conduct research necessary to: (1) family as the foundation of the nation, strengthen its
develop a new body of knowledge on solo solidarity and ensure its total development;
parents; (2) define executive and legislative WHEREAS, in support of this State policy, R.A. 8972,
measures needed to promote and protect otherwise known as the Solo Parents Welfare Act of
the interest of solo parents and their 2000, has been enacted to develop a comprehensive
Duman / Labor I / Prof. Battad / Page 83
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 peoples 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 Boards 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, they are in detention for a minimum period of one (1)
AN ACT PROVIDING FOR BENEFITS AND year;
PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR (4) Parent left solo or alone with the
AND FOR OTHER PURPOSES responsibility of parenthood due to physical
ARTICLE I and/or mental incapacity of spouse as
TITLE, PURPOSE AND CONSTRUCTION certified by a public medical practitioner;
Section 1. Title These rules shall be known and
cited as the Rules and Regulations Implementing (5) Parent left solo or alone with the
Republic Act No. 8972, more commonly known as the responsibility of parenthood due to legal
Solo Parents Welfare Act of 2000. separation or de facto separation from
Section 2. Purpose These Rules are promulgated to spouse for at least one (1) year: Provided,
prescribe the procedure and guidelines for the that he or she is entrusted with the custody
implementation of the Solo Parents Welfare Act of of the children;
2000 in order to facilitate the compliance therewith
and to achieve the objectives thereof. (6) Parent left solo or alone with the
Section 3. Construction These Rules shall be responsibility of parenthood due to
liberally construed in favor of the solo parent and declaration of nullity or annulment of
applied in accordance with and in furtherance of the marrriage as decreed by a court or by a
policy and objectives of the law. In case of conflict church: Provided, that he/she is entrusted
and/or ambiguity, which may arise in the with the custody of the children;
implementation of these Rules, the concerned
agencies shall issue the necessary clarification. (7) Parent left solo or alone with the
ARTICLE II responsibility of parenthood due to
DECLARATION OF POLICIES AND OBJECTIVES abandonment of spouse for at least one (1)
Section 4. Declaration of Policy It is the policy of the year;
State to promote the family as the foundation of the
nation, strengthen its solidarity and ensure its total (8) Unmarried mother/father who
development. Towards this end, it shall develop a has preferred to keep and rear his/her
comprehensive program of services for solo parents child/children instead of having others care
and their children to be carried out by the Department for them or give them up to a welfare
of Social Welfare and Development (DSWD), the institution;
Department of Health (DOH), the Department of
Education (DepEd), the Department of the Interior (9) Any other person who solely
and Local Government (DILG), the Commission on provides parental care and support to a child
Higher Education (CHED), the Technical Education or children provided he/she is duly licensed
and Skills Development Authority (TESDA), the as a foster parent by the DSWD or duly
National Housing Authority (NHA), the Department of appointed legal guardian by the court;
Duman / Labor I / Prof. Battad / Page 84
(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;
(f) Parental responsibility with respect to
their minor children shall refer to the rights and duties (o) NHA shall refer to the National
of the parents as defined in Article 220 of Executive Housing Authority;
Order No. 209, as amended, otherwise known as the
Family Code of the Philippines, and hereunder (p) TESDA shall refer to the Technical
enumerated as follows: Education and Skills Development Authority;

(1) To keep them in their company, (q) NEDA shall refer to the National
to support, educate and instruct them by Economic and Development Authority;
right precept and good example and to
provide for their upbringing in keeping with (r) NSCB shall refer to the National
their means; Statistical Coordination Board, an attached agency of
NEDA and responsible for determining the regional
(2) To give them love and affection, poverty threshold.
advice and counsel, companionship and
understanding; ARTICLE IV
CRITERIA FOR SUPPORT
(3) To provide them with moral and Section 7. Criteria for Support Any solo parent
spiritual guidance, inculcate in them honesty, whose income in the place of domicile falls equal to
integrity, self-discipline, self-reliance, or below the poverty threshold as set by the NSCB
industry and thrift, stimulate their interest in and subject to the assessment of the duly appointed
civic affairs, and inspire in them compliance or designated social worker in the area shall be
with the duties of citizenship; eligible for assistance: Provided, however, That any
solo parent whose income is above the poverty
(4) To furnish them with good and threshold shall enjoy the benefits mentioned in
wholesome educational materials, supervise Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules.
their activities, recreation and association For purposes of the Act and these Rules, the place of
with others, protect them from bad company, domicile shall refer to the residence mentioned in
and prevent them from acquiring habits Section 8(a) of these Rules.
detrimental to their health, studies and Section 8. Qualifications of Solo Parent A solo
morals; parent seeking benefits other than those provided for
under Sections 16, 17, 18, 19, 20, 21 and 23 of these
(5) To represent them in all matters Rules shall be qualified on the basis of the following:
affecting their interest;
(a) A resident of the area where the
(6) To demand from them respect assistance is sought, as certified by
and obedience; the barangay captain; Provided, that
if the solo parent is a transferee from
Duman / Labor I / Prof. Battad / Page 85
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 applicants 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 publics 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 hotels,
government agencies, LGUs, and non- restaurants, lodging houses, night clubs, cocktail lounge,
government organizations engaged in massage clinics, bars, casinos and gambling houses, and
promoting and protecting the interests similar enterprises, including those entities operating
of solo parents and their children; primarily as private subsidiaries of the Government.

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

ART. 96. Service charges. - All service charges collected by a. Covered Employees, Art. 96
hotels, restaurants and similar establishments shall be
distributed at the rate of eighty-five percent (85%) for all b. Sharing, Art. 96
covered employees and fifteen percent (15%) for
management. The share of the employees shall be equally
distributed among them. In case the service charge is
abolished, the share of the covered employees shall be
considered integrated in their wages.

Duman / Labor I / Prof. Battad / Page 90


G. Mi nim um Wag es an d W age F ix in g Ma chi ne ry g) "Service Establishment" is one primarily engaged in the
sale of service to individuals for their own or household use
Reference: Art. 96; Omnibus Rules, Book III, Rules VII-VIII and is generally recognized as such;

ART. 99. Regional minimum wages. - The minimum wage


h) "Cottage/Handicraft Establishment" is one engaged in an
rates for agricultural and non-agricultural employees and
economic endeavor in which the products are primarily done
workers in each and every region of the country shall be
in the home or such other places for profit which requires
those prescribed by the Regional Tripartite Wages and
manual dexterity and craftsmanship and whose capitalization
Productivity Boards. (As amended by Section 3, Republic Act
does not exceed P500,000, regardless of previous
No. 6727, June 9, 1989).
registration with the defunct NACIDA;
Art XIII, Section 3. The State shall afford full protection to
labor, local and overseas, organized and unorganized, and i) "National Capital Region" covers the cities of Kalookan,
promote full employment and equality of employment Manila, Pasay and Quezon and the municipalities of Las
opportunities for all. Pias, Makati, Malabon, Mandaluyong, Marikina, Muntinlupa,
Navotas, Paraaque, Pasig, Pateros, San Juan, Taguig and
Valenzuela;
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in j) "Region III" covers the provinces of Bataan, Bulacan,
accordance with law. They shall be entitled to security of Nueva Ecija, Pampanga, Tarlac, and Zambales and the cities
tenure, humane conditions of work, and a living wage. They of Angeles, Cabanatuan, Olongapo, Palayan and San Jose;
shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by k) "Region IV" covers the provinces of Aurora, Batangas,
law. Cavite, Laguna, Marinduque, Occidental Mindoro, Palawan,
Quezon, Rizal and Romblon and the cities of Batangas,
The State shall promote the principle of shared responsibility Cavite, Lipa, Lucena, Puerto Princesa, San Pablo, Tagaytay
between workers and employers and the preferential use of and Trece Martires;
voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster l) "Department" refers to the Department of Labor and
industrial peace. Employment;

The State shall regulate the relations between workers and m) "Secretary" means the Secretary of Labor and
employers, recognizing the right of labor to its just share in Employment;
the fruits of production and the right of enterprises to
reasonable returns to investments, and to expansion and
growth. 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 not include cost-of-living
allowances, profit sharing payments, premium payments,
RULE VII 13th month pay or other monetary benefits which are not
Wages considered as part of or integrated into the regular salary of
the workers on the date the Act became effective."
SECTION 1. Definition of Terms. As used in this Rules
o) "Statutory Minimum Wage" is the lowest wage fixed by
a) "Act" means Republic Act No. 6727; law that an employer can pay his workers;

b) "Commission" means the National Wages and Productivity p) "Wage Distortion" means a situation where an increase in
Commission; prescribed wage rates results in the elimination or severe
contraction of intentional quantitative differences in wage or
salary rates between and among employee groups in an
c) "Board" means the Regional Tripartite Wages and
establishment as to effectively obliterate the distinctions
Productivity Board;
embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation;
d) "Agriculture" refers to all farming activities in all its
branches and includes among others, the cultivation and
q) "Capitalization" means paid-up capital, in the case of a
tillage of the soil, production, cultivation, growing and
corporation, and total invested capital, in the case of a
harvesting of any agricultural or horticultural commodities,
partnership or single proprietorship.
dairying, raising of livestock or poultry, the culture of fish
and other aquatic products in farms or ponds, and any
activities performed by a farmer or on a farm as an incident CHAPTER I
to or in conjunction with such farming operations, but does Wage Increase
not include the manufacturing and/or processing of sugar,
coconut, abaca, tobacco, pineapple, aquatic or other farm SECTION 1. Coverage. The wage increase prescribed
products; under the Act shall apply to all workers and employees in
the private sector regardless of their position, designation or
e) "Plantation Agricultural Enterprise" is one engaged in status, and irrespective of the method by which their wages
agriculture within an area of more than 24 hectares in a are paid, except:
locality and/or which employs at least 20 workers. Any other
agricultural enterprise shall be considered as "Non-Plantation a) Household or domestic helpers, including family drivers
Agricultural Enterprises"; and workers in the personal service of another;

f) "Retail Establishment" is one principally engaged in the b) Workers and employees in retail/service establishments
sale of goods to end-users for personal or household use; regularly employing not more than 10 workers, when
exempted from compliance with the Act, for a period fixed
Duman / Labor I / Prof. Battad / Page 91
by the Commission/Boards in accordance with Section 4 (c) c) Workers and employees who, prior to July 1, 1989, were
of the Act and Section 15, Chapter 1 of these Rules; receiving a basic wage of more than P100.00 per day or its
monthly equivalent, are not by law entitled to the wage
increase provided under the Act. They may however, receive
c) Workers and employees in new business enterprises
wage increases through the correction of wage distortions in
outside the National Capital Region and export processing
accordance with Section 16, Chapter I of these Rules.
zones for a period of not more than two or three years, as
the case may be, from the start of operations when
exempted in accordance with Section 5 of the Act and SECTION 5. Daily Statutory Minimum Wage Rates. The
Section 15, Chapter I of these Rules; daily minimum wage rates of workers and employees shall
be as follows:
d) Workers and employees receiving a basic wage of more
than P100.00 per day. Sector/Industry Under Under
R. A. 6640 R. A. 6727
(Effective (Effective
SECTION 2. Effectivity. The Act takes effect on July 1,
Dec. 14, July 1,
1989, 15 days following its complete publication in two
1987) 1989)
newspapers of general circulation on June 15, 1989 pursuant
to Section 15 thereof.
A. NATIONAL CAPITAL REGION
SECTION 3. Amount of Minimum Wage Increase. Effective
July 1, 1989, the daily statutory minimum wage rates of Non-Agriculture P64.00 P89.00
covered workers and employees shall be increased as
follows:
Agriculture
Plantation 54.00 79.00
a) P25.00 for those in the National Capital Region;
Non-Plantation 43.50 68.50
b) P25.00 for those outside the National Capital Region,
except for the following:
Cottage/Handicraft
Employing more than 30
P20.00 for those in plantation agricultural enterprises with workers 52.00 77.00
an annual gross sales of less than P5 million in the fiscal
year immediately preceding the effectivity of the Act;
Employing not more than
30 workers 50.00 75.00
P15.00 for those in the following enterprises:
Private Hospitals
1. Non-plantation agriculture With bed capacity of more
than 100 64.00 89.00
2. Cottage/handicraft
With bed capacity of 100
or less 60.00 85.00
3. Retail/Service regularly employing not more than 10
workers
Retail/Service
Employing more than 15
4. Business enterprises with a capitalization of not more than
workers 64.00 89.00
P500,000 and employing not more than 20 workers.

Employing 11 to 15
SECTION 4. When Wage Increase Due Other Workers. a)
workers 60.00 85.00
All workers and employees who, prior to July 1, 1989, were
already receiving a basic wage above the statutory minimum
wage rates provided under Republic Act 6640 but not over Employing not more than
P100.00 per day shall receive a wage increase equivalent to 10 workers 43.00 68.00
that provided in the preceding Section.
B. OUTSIDE NATIONAL CAPITAL REGION
b) Those receiving not more than the following monthly
basic wage rates prior to July 1, 1989 shall be deemed
Non-Agriculture 64.00 89.00
covered by the preceding subsection:

Agriculture
(i) P3,257.50 where the workers and employees work
Plantation with annual gross
everyday, including premium payments for Sundays or rest
sales of P5M or more 54.00 79.00
days, special days and regular holidays.

Plantation with annual gross


(ii) P3,041.67 where the workers and employees do not
sales of less than P5M 54.00 74.00
work but considered paid on rest days, special days and
regular holidays.
Non-plantation 43.50 58.50
(iii) P2,616.67 where the workers and employees do not
work and are not considered paid on Sundays or rest days. Cottage/Handicraft
Employing more than
30 workers 52.00 67.00
(iv) P2,183.33 where the workers and employees do not
work and are not considered paid on Saturdays and Sundays
or rest days.
Duman / Labor I / Prof. Battad / Page 92
Employing not more Equivalent Applicable daily wage rate (ADR) x 390.90 days
than 30 workers 50.00 65.00
Monthly =
Private Hospitals 60.00 85.00
Rate (EMR) 12
Retail/Service
Cities w/ population of more
Where 390.90 days =
than 150,000

302 days Ordinary working days


Employing more than
15 workers 64.00 89.00
20 days 10 regular holidays x 200%
Employing 11 to 15 workers 60.00 85.00
66.30 days 51 rest days x 130%
Employing not more than
10 workers 43.00 58.00 2.60 days 2 special days x 130%

Sugar Mills 390.90 days Total equivalent number of days.

Agriculture b) For those who do not work but considered paid on rest
days, special days and regular holidays:
ADR x 365 days
Plantation w/ annual gross
sales of P5M or more 48.50 73.50
EMR =
Plantation w/ annual gross
sales of less than P5M 48.50 68.50 12

Non-plantation 43.50 58.50 Where 365 days =

Business Enterprises w/ Capitalization 302 days Ordinary working days


of not more than P500,000 and
employing not more than 20 workers 51 days Rest days
Non-Agriculture 64.00 79.00

10 days Regular holidays


Agriculture Plantation
Products Other than Sugar 54.00 69.00
2 days Special days
Sugar 48.50 63.50
365 days Total equivalent number of days
Private Hospitals 60.00 75.00
c) For those who do not work and are not considered paid
on Sundays or rest days:
Retail/Service ADR x 314 days
Cities w/ population of more
than 150,000
EMR =
Employing more than
15 workers 64.00 79.00 12

Employing 11 to 15 workers 60.00 75.00 Where 314 days =

Municipalities and Cities 302 days Ordinary working days


w/ population of not more
than 150,000 10 days Regular holidays

Employing more than 10 2 days Special days (If considered


workers 60.00 75.00

paid; If actually worked,


SECTION 6. Suggested Formula in Determining the
Equivalent Monthly Statutory Minimum Wage Rates.
Without prejudice to existing company practices, agreements this is equivalent to 2.6 days)
or policies, the following formula may be used as guides in
determining the equivalent monthly statutory minimum 314 days Total equivalent number of days
wage rates:
d) For those who do not work and are not considered paid
a) For those who are required to work everyday including on Saturdays or rest days:
Sundays or rest days, special days and regular holidays: ADR x 262 days

Duman / Labor I / Prof. Battad / Page 93


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 shall
continue to be established in accordance with Article 101 of
250 days Ordinary working days
the Labor Code, as amended and its implementing
regulations.
10 days Regular holidays
SECTION 10. Wages of Special Groups of Workers. Wages
2 days Special days (If considered paid; If actually of apprentices, learners and handicapped workers shall in no
case be less than 75 percent of the applicable statutory
worked, this is equivalent to 2.6 days) 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 wage clauses are
Note: For workers whose rest days fall on Sundays, the concerned to reflect the increases prescribed under the Act.
number of rest days in a year is reduced from 52 to 51 days,
the last Sunday of August being a regular holiday under
Executive Order No. 201. For purposes of computation, said SECTION 11. Application to Contractors. In the case of
holiday, although still a rest day for them, is included in the contracts for construction projects and for security, janitorial
ten regular holidays. For workers whose rest days do not fall and similar services, the prescribed wage increases shall be
on Sundays, the number of rest days is 52 days, as there borne by the principals or clients of the construction/service
are 52 weeks in a year. contractors and the contract shall be deemed amended
accordingly. In the event, however, that the principal or
client fails to pay the prescribed wage rates, the
Nothing herein shall be considered as authorizing the construction/service contractor shall be jointly and severally
reduction of benefits granted under existing agreements or liable with his principal or client.
employer practices/policies.
SECTION 12. Application to Private Educational Institution.
SECTION 7. Basis of Minimum Wages Rates. The statutory Private educational institutions which increased tuition
minimum wage rules prescribed under the Act shall be for fees beginning school year 1989-1990 shall comply with the
the normal working hours, which shall not exceed eight P25.00 per day wage increase prescribed under the Act
hours work a day. effective as follows:

SECTION 8. Creditable Wage Increase. a) In cases where the tuition fee increase was effected
before the effectivity of the Act, the wage increase shall take
a) No wage increase shall be credited as compliance with effect only July 1, 1989.
the increases prescribed under the Act unless expressly
provided under collective bargaining agreements; and, such b) In cases where the tuition fee increase was effected on or
wage increase was granted not earlier than April 1, 1989 but after the effectivity of the Act, the wage increase shall take
not later than July 1, 1989. Where the wage increase effect not later than the date the school actually increased
granted is less than the prescribed increase under the Act, tuition but in the latter case, such wage increase may not be
the employer shall pay the difference. made retroactive in July 1, 1989.

b) Anniversary wage increase provided in collective Beginning school year 1990-1991, all schools shall
agreements, merit wage increase, and those resulting from implement the wage increase regardless of whether or not
the regularization or promotion of employees shall not be they have actually increased tuition fees.
credited as compliance thereto.
SECTION 13. Mobile and Branch Workers. The statutory
SECTION 9. Workers Paid by Results. minimum wage rates of workers, who by the nature of their
work have to travel, shall be those applicable in the domicile
a) All workers paid by results, including those who are paid or head office of the employer.
on piecework, takay, pakyaw, or task basis, shall receive not
less than the applicable statutory minimum wage rates The minimum wage rates of workers working in branches or
prescribed under the Act for the normal working hours which agencies of establishments in or outside the National Capital
shall not exceed eight hours work a day, or a proportion Region shall be those applicable in the place where they are
thereof for work of less than the normal working hours. stationed.

The adjusted minimum wage rates for workers paid by SECTION 14. Transfer of Personnel. The transfer of
results shall be computed in accordance with the following personnel to areas outside the National Capital Region shall
steps: not be a valid ground for the reduction of the wage rates
being enjoyed by the workers prior to such transfer. The
1) Amount of increase in AMW - Previous AMW x 100 = % workers transferred to the National Capital Region shall be
Increase; entitled to the minimum wage rate applicable therein.

2) Existing rate/piece x % increase = increase in rate/piece; SECTION 15. Exemptions.

a) The following establishments may be exempted from


compliance with the wage increase prescribed under the Act:
Duman / Labor I / Prof. Battad / Page 94
1) Retail/Service establishments regularly employing not The worker's representative shall have the right to submit
more than 10 workers upon application with and as his own findings to the Department and to testify on the
determined by the appropriate Board in accordance with same if he does not concur with the findings of the labor
applicable guidelines to be issued by the Commission. inspector.

2) New business enterprises that may be established outside SECTION 19. Payment of Wages. Upon written petition of
the National Capital Region and export processing zones the majority of the workers and employees concerned, all
from July 1, 1989 to June 30, 1993, whose operation or private establishments, companies, businesses and other
investments need initial assistance may be exempted for not entities with at least twenty workers and located within one
more than three years from the start of operations, subject kilometer radius to a commercial, savings or rural bank, shall
to guidelines to be issued by the Secretary in consultation pay the wages and other benefits of their workers through
with the Department of Trade and Industry and the any of said banks, within the period and in the manner and
Department of Agriculture. form prescribed under the Labor Code as amended.

New business enterprises in Region III (Central Luzon) and SECTION 20. Duty of Bank. Whenever applicable and
Region IV (Southern Tagalog) may be exempted for two upon request of concerned worker or union, the bank
years only from start of operations, except those that may through which wages and other benefits are paid issue a
be established in the provinces of Palawan, Oriental Mindoro, certification of the record of payment of said wages and
Occidental Mindoro, Marinduque, Romblon, Quezon and benefits of a particular worker or workers for a particular
Aurora, which may also be exempted for not more than payroll period.
three years from the start of operations.
CHAPTER II
b) Whenever an application for exemption has been duly The National Wages and Productivity Commission and
filed with the appropriate office in the Department/Board, Regional Tripartite Wages and Productivity Boards
action by the Regional Office of the Department on any
complaints for alleged non-compliance with the Act shall be
SECTION 1. Commission. The National Wages and
deferred pending resolution of the applicant for exemption.
Productivity Commission created under the Act shall hold
office in the National Capital Region. The Commission shall
c) In the event that the application for exemption is not be attached to the Department for policy and program
granted, the workers and employees shall receive the coordination.
appropriate compensation due them as provided for under
the Act plus interest of one percent per month retroactive to
SECTION 2. Powers and Functions of the Commission.
July 1, 1989 or the start of operations whichever is
The Commission shall have the following powers and
applicable.
functions:

SECTION 16. Effects on Existing Wage Structure. Where


a) To act as the national consultative and advisory body to
the application of the wage increase prescribed herein
the President of the Philippines and Congress on matters
results in distortions in the wage structure within an
relating to wages, incomes and productivity;
establishment which gives rise to a dispute therein, such
dispute shall first be settled voluntarily between the parties.
In the event of a deadlock, such dispute shall be finally b) To formulate policies and guidelines on wages, incomes
resolved through compulsory arbitration by the regional and productivity improvement at the enterprise, industry and
arbitration branch of the National Labor Relations national levels;
Commission (NLRC) having jurisdiction over the workplace.
c) To prescribe rules and guidelines for the determination of
The NLRC shall conduct continuous hearings and decide any appropriate minimum wage and productivity measures at the
dispute arising from wage distortions within twenty calendar regional, provincial or industry levels;
days from the time said dispute is formally submitted to it
for arbitration. The pendency of a dispute arising from a d) To review regional wage levels set by the Regional
wage distortion shall not in any way delay the applicability of Tripartite Wages and Productivity Board to determine if these
the increases in the wage rates prescribed under the Act. are in accordance with prescribed guidelines and national
development plans;
Any issue involving wage distortion shall not be a ground for
a strike/lockout. e) To undertake studies, researches and surveys necessary
for the attainment of its functions and objectives, and to
SECTION 17. Complaints for Non-Compliance. Complaints collect and compile data and periodically disseminate
for non-compliance with the wage increases prescribed information on wages and productivity and other related
under the Act shall be filed with the Regional Offices of the information, including, but not limited to, employment, cost-
Department having jurisdiction over the workplace and shall of-living, labor costs, investments and returns;
be the subject of enforcement proceedings under Articles
128 and 129 of the Labor Code, as amended. f) To review plans and programs of the Regional Tripartite
Wages and Productivity Boards to determine whether these
SECTION 18. Conduct of inspection by the Department. are consistent with national development plans;
The Department shall conduct inspections of establishments,
as often as necessary, to determine whether the workers are g) To exercise technical and administrative supervision over
paid the prescribed wage rates and other benefits granted the Regional Tripartite Wages and Productivity Boards;
by law or any Wage Order. In the conduct of inspection in
unionized companies, Department inspectors shall always be
accompanied by the president or other responsible officer of h) To call, from time to time, a national tripartite conference
the recognized bargaining unit or of any interested union. In of representatives of government, workers and employers
the case of non-unionized establishments, a worker for the consideration of measures to promote wage
representing the workers in the said company shall rationalization and productivity; and
accompany the inspector.
Duman / Labor I / Prof. Battad / Page 95
i) To exercise such powers and functions as may be have technical supervision over the Regional Office of the
necessary to implement this Act. Department with respect to the implementation of these
plans, programs and projects.
SECTION 3. Composition of the Commission. The
Commission shall be composed of the Secretary as ex-officio SECTION 7. Compositions of the Boards. Each Board shall
Chairman, the Director General of the National Economic be composed of the Regional Director of the Department as
and Development Authority (NEDA) as ex-officio Vice- Chairman, the Regional Directors of the National Economic
Chairman and two members each from workers and and Development Authority (NEDA) and Department of
employers sectors who shall be appointed by the President Trade and Industry (DTI) as Vice-Chairmen and two
for a term of five years upon recommendation of the members each of workers and employers sectors who shall
Secretary. The recommendees shall be selected from the be appointed by the President for a term of five years upon
lists of nominees submitted by the workers' and employers' the recommendation of the Secretary. The recommendees
sectors. The Executive Director of the Commission shall be selected from the list of nominees submitted by the
Secretariat shall be also a member of the Commission. workers and employers sectors.

The members of the Commission representing labor and Each Board shall be assisted by a Secretariat.
management shall have the same rank, emoluments,
allowances and other benefits as those prescribed by law for
SECTION 8. Authority to Organize and Appoint Personnel.
labor and management representatives in the Employees'
The Chairman of the Commission shall organize such units
Compensation Commission.
and appoint the necessary personnel of the Commission and
Board Secretaries, subject to pertinent laws, rules and
SECTION 4. Commission Secretariat. The Commission regulations.
shall be assisted by a Secretariat to be headed by an
Executive Director and two Deputy Directors who shall be
CHAPTER III
appointed by the President upon recommendation of the
Minimum Wage Determination
Secretary.

SECTION 1. Regional Minimum Wages. The minimum


The Executive Director shall have the rank of a Department
wage rates for agricultural and non-agricultural workers and
Assistant Secretary, while the Deputy Directors that of a
employees in every region shall be those prescribed by the
Bureau Director. The Executive Director and Deputy Directors
Boards which shall in no case be lower than the statutory
shall receive the corresponding salary, benefits and other
minimum wage rates. These wage rates may include wages
emoluments of the positions.
by industry, province or locality as may be deemed
necessary by the Boards.
SECTION 5. Regional Tripartite Wages and Productivity
Boards. The Regional Wages and Productivity Boards
SECTION 2. Standards/Criteria for Minimum Wage Fixing.
created under the Act in all regions, including autonomous
The regional minimum wages to be established by the
regions as may be established by law, shall hold offices in
Boards shall be as nearly adequate as is economically
areas where the Regional Offices of the Department are
feasible to maintain the minimum standards of living
located.
necessary for the health, efficiency and general well-being of
the workers within the framework of the national economic
SECTION 6. Powers and Functions of the Boards. The and social development programs. In the determination of
Boards shall have the following powers and functions: regional minimum wages, the Boards, shall, among other
relevant factors, consider the following:
a) To develop plans, programs and projects relative to
wages, incomes and productivity improvement for their a) The demand for living wages;
respective regions;
b) Wage adjustment vis-a-vis the consumer price index;
b) To determine and fix minimum wage rates applicable in
their region, provinces or industries therein and to issue the
c) The cost of living and changes or increases therein;
corresponding wage orders, subject to guidelines issued by
the Commission;
d) The needs of workers and their families;
c) To undertake studies, researches, and surveys necessary
for the attainment of their functions, objectives and e) The need to induce industries to invest in countryside;
programs, and to collect and compile data on wages,
incomes, productivity and other related information and f) Improvements in standards of living;
periodically disseminate the same;

g) The prevailing wage levels;


d) To coordinate with the other Boards as may be necessary
to attain the policy and intention of the Labor Code;
h) Fair return of the capital invested and capacity to pay of
employers;
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) Effects on employment generation and family income; and

f) To exercise such other powers and functions as may be j) The equitable distribution of income and wealth along the
necessary to carry out their mandate under the Labor Code. imperatives of economic and social development.

Implementation of the plans, programs and projects of the SECTION 3. Wage Order. Whenever conditions in the
Boards shall be through the respective Regional Offices of region so warrant, the Board shall investigate and study all
the Department, provided, however, that the Boards shall pertinent facts; and, based on standards and criteria

Duman / Labor I / Prof. Battad / Page 96


prescribed herein, shall determine whether a Wage Order the Act shall not be entitled to the benefits provided for
should be issued. under the Probation Law.

In the performance of its wage determining functions, the If the violation is committed by a corporation, trust or firm,
Board shall conduct public hearings and consultations giving partnership, association or any other entity, the penalty of
notices to employees' and employers' groups, provincial, city imprisonment shall be imposed upon the entity's responsible
and municipal officials and other interested parties. officers, including, but not limited to, the president, vice-
president, chief executive officer, general manager,
managing director or partner.
SECTION 4. Effectivity of Wage Order. Any Wage Order
issued by the Board shall take effect 15 days after its
complete publication in at least one newspaper of general SECTION 11. Registration/Reporting Requirement. Any
circulation in the region. person, company, corporation, partnership or any other
entity engaged in business shall submit annually a verified
itemized listing of their labor component to the appropriate
SECTION 5. Appeal to the Commission. Any party
Board and the National Statistics Office not later than
aggrieved by the Wage Order issued by the Board may file
January 31 of each year, starting on January 31, 1990 in
an appeal with the Commission within ten calendar days
accordance with the form to be prescribed by the
from the publication of the Order. The Commission shall
Commission. The listing shall specify the names, salaries and
decide the appeal within sixty calendar days from the date of
wages of their workers and employees below the managerial
filing.
level including learners, apprentices and
disabled/handicapped workers.
SECTION 6. Effect of Appeal. The filing of the appeal shall
not suspend the effectivity of the Wage Order unless the
CHAPTER IV
person appealing such order files with the Commission an
Transitory Provisions
undertaking with a surety or sureties in such amount as may
be fixed by the Commission.
SECTION 1. Abolition of the National Wages Council and the
National Productivity Commission. The National Wages
SECTION 7. Wage Distortions. Where the application of
Council created under Executive Order No. 614 and the
any wage increase resulting from a Wage Order issued by
National Productivity Commission created under Executive
any Board results in distortions in the wage structure within
Order No. 615 are abolished. All properties, records,
an establishment, the employer and the union shall
equipment, buildings, facilities, and other assets, liabilities
negotiate to correct the distortions using the grievance
and appropriations of and belonging to the abovementioned
procedure under their collective bargaining agreement. If it
offices, as well as other matters pending herein, shall be
remains unresolved, it shall be decided through voluntary
transferred to the Commission. All personnel of the above
arbitration ten calendar days from the time the dispute was
abolished offices shall continue to function in a hold-over
referred for voluntary arbitration, unless otherwise agreed by
capacity and shall be preferentially considered for
the parties in writing.
appointments to or placements in the Commission/Boards.

Where there are no collective agreements or recognized


Any official or employee separated from the service as a
labor unions, the employer and workers shall endeavor to
result of the abolition of offices pursuant to the Act shall be
correct the wage distortion. Any dispute arising therefrom
entitled to appropriate separation pay of one month salary
shall be settled through the National Conciliation and
for every year of service and/or retirement and other
Mediation Board and if it remains unresolved after ten
benefits accruing to them under existing laws. In lieu
calendar days of conciliation, it shall be referred to the
thereof, at the option of the employee, he shall be
appropriate branch of the National Labor Relations
preferentially considered for employment in the government
Commission (NLRC). The NLRC shall conduct continuous
or in any of its subdivisions, instrumentalities, or agencies,
hearings and decide the dispute within twenty calendar days
including government owned or controlled corporations and
from the time said dispute is submitted for compulsory
their subsidiaries.
arbitration.

SECTION 2. Interim Processing of Applications for Exemption


The pendency of a dispute arising from a wage distortion
and Submission of Reports. Pending the operationalization
shall not in any way delay the applicability of any wage
of the Commission and Boards, the National Wages Council
increase prescribed pursuant to the provisions of law or
shall, in the interim, receive and process applications for
Wage Order.
exemption subject to guidelines to be issued by the
Secretary, in accordance with Section 11 of the Act.
SECTION 8. Non-Diminution of Benefits. Nothing in the
Act and in these Rules shall be construed to reduce any
Reports of establishments on their labor component,
existing laws, decrees, issuances, executive orders, and/or
including wages and salaries of their workers prescribed
under any contract or agreement between the workers and
under the Act, shall be submitted to the National Wages
employers.
Council through the Regional Offices of the Department.

SECTION 9. Prohibition Against Injunction. No preliminary


SECTION 3. Funding Requirement. The funds necessary
or permanent injunction or temporary restraining order may
to carry out the provisions of the Act shall be taken from the
be issued by any court, tribunal or other entity against any
Compensation and Organization Adjustment Fund, the
proceedings before the Commission or Boards.
Contingent Fund, and other savings under Republic Act No.
6688, otherwise known as the General Appropriations Act of
SECTION 10. Penal Provisions. Any person, corporation 1989, or from any unappropriated funds of the National
trust, firm, partnership, association or entity which refuses Treasury; Provided, that the funding requirements necessary
or fails to pay any of the prescribed increases or to implement the Act shall be included in the annual General
adjustments in the wage rates made in accordance with the Appropriations Act for the succeeding years.
Act shall be punished by a fine not exceeding P25,000
and/or imprisonment of not less than one year nor more
SECTION 4. Repealing Clause. All laws, orders, issuances,
than two years: Provided, that any person convicted under
rules and regulations or parts thereof inconsistent with the
Duman / Labor I / Prof. Battad / Page 97
provisions of the Act and this Rules are hereby repealed, (c) Under any other analogous circumstances; Provided,
amended or modified accordingly. If any provision or part of That the time spent by the employees in collecting their
the Act and this Rules, or the application thereof to any wages shall be considered as compensable hours worked;
person or circumstance is held invalid or unconstitutional,
the remainder of the Act and these Rules or the application
(d) No employer shall pay his employees in any bar, night or
of such provision or part thereof to other persons or
day club, drinking establishment, massage clinic, dance hall,
circumstance shall not be affected thereby.
or other similar places or in places where games are played
with stakes of money or things representing money except
SECTION 5. Effectivity. These rules shall take effect on in the case of persons employed in said places.
July 1, 1989.
SECTION 5. Direct payment of wages. Payment of wages
RULE VIII shall be made direct to the employee entitled thereto except
Payment of Wages in the following cases:

SECTION 1. Manner of wage payment. As a general rule, (a) Where the employer is authorized in writing by the
wages shall be paid in legal tender and the use of tokens, employee to pay his wages to a member of his family;
promissory notes, vouchers, coupons, or any other form
alleged to represent legal tender is absolutely prohibited
(b) Where payment to another person of any part of the
even when expressly requested by the employee.
employee's wages is authorized by existing law, including
payments for the insurance premiums of the employee and
SECTION 2. Payment by check. Payment of wages by union dues where the right to check-off has been recognized
bank checks, postal checks or money orders is allowed by the employer in accordance with a collective agreement
where such manner of wage payment is customary on the or authorized in writing by the individual employees
date of the effectivity of the Code, where it is so stipulated concerned; or
in a collective agreement, or where all of the following
conditions are met:
(c) In case of death of the employee as provided in the
succeeding Section.
(a) There is a bank or other facility for encashment within a
radius of one (1) kilometer from the workplace;
SECTION 6. Wages of deceased employee. The payment
of the wages of a deceased employee shall be made to his
(b) The employer or any of his agents or representatives heirs without the necessity of intestate proceedings. When
does not receive any pecuniary benefit directly or indirectly the heirs are of age, they shall execute an affidavit attesting
from the arrangement; to their 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 be executed in
(c) The employees are given reasonable time during banking
his behalf by his natural guardian or next of kin. Upon
hours to withdraw their wages from the bank which time
presentation of the affidavit to the employer, he shall make
shall be considered as compensable hours worked if done
payment to the heirs as representative of the Secretary of
during working hours; and
Labor and Employment.

(d) The payment by check is with the written consent of the


SECTION 7. Civil liability of employer and contractors.
employees concerned if there is no collective agreement
Every employer or indirect employer shall be jointly and
authorizing the payment of wages by bank checks.
severally liable with his contractor or sub-contractor for the
unpaid wages of the employees of the latter. Such employer
SECTION 3. Time of payment. (a) Wages shall be paid not or indirect employer may require the contractor or sub-
less than once every two (2) weeks or twice a month at contractor to furnish a bond equal to the cost of labor under
intervals not exceeding sixteen (16) days, unless payment contract on condition that the bond will answer for the
cannot be made with such regularity due to force majeure or wages due the employees should the contractor or
circumstances beyond the employer's control in which case subcontractor, as the case may be, fail to pay the same.
the employer shall pay the wages immediately after such
force majeure or circumstances have ceased.
SECTION 8. Job Contracting. There is job contracting
permissible under the Code if the following conditions are
(b) In case of payment of wages by results involving work met:
which cannot be finished in two (2) weeks, payment shall be
made at intervals not exceeding sixteen days in proportion
(a) The contractor carries on an independent business and
to the amount of work completed. Final settlement shall be
undertakes the contract work on his own account under his
made immediately upon completion of the work.
own responsibility according to his own manner and method,
free from the control and direction of his employer or
SECTION 4. Place of payment. As a general rule, the principal in all matters connected with the performance of
place of payment shall be at or near the place of the work except as to the results thereof; and
undertaking. Payment in a place other than the work place
shall be permissible only under the following circumstances:
(b) The contractor has substantial capital or investment in
the form of tools, equipment, machineries, work premises,
(a) When payment cannot be effected at or near the place and other materials which are necessary in the conduct of
of work by reason of the deterioration of peace and order his business.
conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering
SECTION 9. Labor-only contracting. (a) Any person who
payment thereat impossible;
undertakes to supply workers to an employer shall be
deemed to be engaged in labor-only contracting where such
(b) When the employer provides free transportation to the person:
employees back and forth; and

Duman / Labor I / Prof. Battad / Page 98


(1) Does not have substantial capital or investment in the (a) That the employee concerned is clearly shown to be
form of tools, equipment, machineries, work premises and responsible for the loss or damage;
other materials; and
(b) That the employee is given reasonable opportunity to
(2) The workers recruited and placed by such person are show cause why deduction should not be made;
performing activities which are directly related to the
principal business or operations of the employer in which
(c) That the amount of such deduction is fair and reasonable
workers are habitually employed.
and shall not exceed the actual loss or damage; and

(b) Labor-only contracting as defined herein is hereby


(d) That the deduction from the wages of the employee
prohibited and the person acting as contractor shall be
does not exceed 20 percent of the employee's wages in a
considered merely as an agent or intermediary of the
week.
employer who shall be responsible to the workers in the
same manner and extent as if the latter were directly
employed by him.
1. Minimum Wage, Art. 99; Consti., Art. XIII, Sec. 3
(c) For cases not falling under this Rule, the Secretary of
MINIMUM WAGE RATES
Labor and Employment shall determine through appropriate
orders whether or not the contracting out of labor is
ART. 99. Regional minimum wages. - The minimum wage
permissible in the light of the circumstances of each case
rates for agricultural and non-agricultural employees and
and after considering the operating needs of the employer
workers in each and every region of the country shall be
and the rights of the workers involved. In such case, he may
those prescribed by the Regional Tripartite Wages and
prescribe conditions and restrictions to insure the protection
Productivity Boards. (As amended by Section 3, Republic Act
and welfare of the workers.
No. 6727, June 9, 1989).

SECTION 10. Payment of wages in case of bankruptcy. Art XIII, Section 3. The State shall afford full protection to
Unpaid wages earned by the employees before the labor, local and overseas, organized and unorganized, and
declaration of bankruptcy or judicial liquidation of the promote full employment and equality of employment
employer's business shall be given first preference and shall opportunities for all.
be paid in full before other creditors may establish any claim
to a share in the assets of the employer.
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations, and
SECTION 11. Attorney's fees. Attorney's fees in any peaceful concerted activities, including the right to strike in
judicial or administrative proceedings for the recovery of accordance with law. They shall be entitled to security of
wages shall not exceed 10 percent of the amount awarded. tenure, humane conditions of work, and a living wage. They
The fees may be deducted from the total amount due the shall also participate in policy and decision-making processes
winning party. affecting their rights and benefits as may be provided by
law.
SECTION 12. Non-interference in disposal of wages. No
employer shall limit or otherwise interfere with the freedom The State shall promote the principle of shared responsibility
of any employee to dispose of his wages and no employer between workers and employers and the preferential use of
shall in any manner oblige any of his employees to patronize voluntary modes in settling disputes, including conciliation,
any store or avail of the services offered by any person. and shall enforce their mutual compliance therewith to foster
industrial peace.
SECTION 13. Wages deduction. Deductions from the
wages of the employees may be made by the employer in The State shall regulate the relations between workers and
any of the following cases: 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
(a) When the deductions are authorized by law, including
growth.
deductions for the insurance premiums advanced by the
employer in behalf of the employee as well as union dues
a. Coverage, Arts. 97 (b) (c) (e), 98
where the right to check-off has been recognized by the
employer or authorized in writing by the individual employee
ART. 97. Definitions. - As used in this Title:
himself.

(b) "Employer" includes any person acting directly or


(b) When the deductions are with the written authorization
indirectly in the interest of an employer in relation to an
of the employees for payment to the third person and the
employee and shall include the government and all its
employer agrees to do so; Provided, That the latter does not
branches, subdivisions and instrumentalities, all
receive any pecuniary benefit, directly or indirectly, from the
government-owned or controlled corporations and
transaction.
institutions, as well as non-profit private institutions, or
organizations.
SECTION 14. Deduction for loss or damage. Where the
employer is engaged in a trade, occupation or business
(c) "Employee" includes any individual employed by an
where the practice of making deductions or requiring
employer.
deposits is recognized to answer for the reimbursement of
loss or damage to tools, materials, or equipment supplied by
the employer to the employee, the employer may make e) "Employ" includes to suffer or permit to work.
wage deductions or require the employees to make deposits
from which deductions shall be made, subject to the ART. 98. Application of Title. - This Title shall not apply to
following conditions: farm tenancy or leasehold, domestic service and persons
working in their respective homes in needle work or in any
cottage industry duly registered in accordance with law.

Duman / Labor I / Prof. Battad / Page 99


Bankard Employers Union v. NLRC, 423 SCRA 148
(2004)
Philippine Fisheries Development Authority v. NLRC,
213 SCRA 621 (1992)

4) Form: Agreement for Compensation of


b. Rules
Services
1) Definition
Arms Taxi v. NLRC, 219 SCRA 306 (1993)

Chavez v. NLRC, supra

2) No Work, No Pay (A fair days wage for a fair days


labor)

Aklan Electric Corp., Inc. v. NLRC, 323 SCRA 259 (2000)

3) Equal Pay for Work of Equal Value


c. Minimum Wage
International School Alliance of Educators v. 1) Determination of Compliance with Minimum Wage
Quisumbing, supra
Iran v. NLRC, 289 SCRA 433 (1998)

Duman / Labor I / Prof. Battad / Page 100


2) Facilities and Supplements/Allowances Boie Takeda v. De la Serna, 228 SCRA 329 (1993)

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

3) Cash Wage/Commission
Philippine Duplicators v. NLRC, 241 SCRA 380 (1995)

Songco v. NLRC, 183 SCRA 610 (1990)

Duman / Labor I / Prof. Battad / Page 101


4) Gratuity and Salary/Wages, Difference 2. Wage Fixing Machinery

Plastic Town Center corp. v. NLRC, 172 SCRA 580 Reference: Wage Rationalization Act (RA 6727);
(1989) Art. 120-127; Omnibus Rules, Book III, Rule IX

Republic of the Philippines


Congress of the Philippines
Metro Manila
Second Regular Session
Begun and held in Metro Manila, on Monday, the
twenty-
fifth day of July, nineteen hundred and eighty-eight

[REPUBLIC ACT NO. 6727]

AN ACT TO RATIONALIZE WAGE POLICY


DETERMINATION BY ESTABLISHING THE
MECHANISM AND PROPER STANDARDS
THEREFOR, AMENDING FOR THE PURPOSE
ARTICLE 99 OF, AND INCORPORATING ARTICLES
120, 121, 122, 123, 124, 126 AND 127 INTO,
PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF
THE PHILIPPINES, FIXING NEW WAGE RATES,
PROVIDING WAGE INCENTIVES FOR INDUSTRIAL
DISPERSAL TO THE COUNTRYSIDE, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of


Representatives of the Philippines in Congress
assembled:

Sec. 1. This Act shall be known as the "Wage


Rationalization Act."

Sec. 2. It is hereby declared the policy of the State


to rationalize the fixing of minimum wages and to
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
5) Effect on Benefits labor to its just share in the fruits of production; to
enhance employment generation in the countryside
Davao Fruits Corporation v. Associated Labor Union, through industry dispersal; and to allow business and
225 SCRA 562 (1993) industry reasonable returns on 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
Duman / Labor I / Prof. Battad / Page 102
in a fair and equitable manner, considering existing (h) To call, from time to time, a national tripartite
regional disparities in the cost of living and other conference of representatives of government, workers
socio-economic factors and the national economic and employers for the consideration of measures to
and social development plans. promote wage rationalization and productivity; and

Sec. 3. In line with the declared policy under this (i) To exercise such powers and functions as may be
Act, Article 99 of Presidential Decree No. 442, as necessary to implement this Act.
amended, is hereby amended and Articles 120, 121,
122, 123, 124, 126 and 127 are hereby incorporated "The Commission shall be composed of the
into Presidential Decree No. 442, as amended, to Secretary of Labor and Employment as ex-officio
read as follows: chairman, the Director-General of the National
Economic and Development Authority (NEDA) as ex-
"Art. 99. Regional Minimum Wages. - The minimum officio vice-chairman, and two (2) members each from
wage rates for agricultural and non-agricultural workers and employers sectors who shall be
employees and workers in each and every region of appointed by the President of the Philippines upon
the country shall be those prescribed by the Regional recommendation of the Secretary of Labor and
Tripartite Wages and Productivity Boards." Employment to be made on the basis of the list of
nominees submitted by the workers and employers
"Art. 120. Creation of the National Wages and sectors, respectively, and who shall serve for a term
Productivity Commission. - There is hereby created a of five (5) years. The Executive Director of the
National Wages and Productivity Commission, Commission Secretariat shall also be a member of
hereinafter referred to as the Commission, which shall the Commission."
be attached to the Department of Labor and
Employment (DOLE) for policy and program "The Commission shall be assisted by a Secretariat
coordination." to be headed by an Executive Director and two (2)
Deputy Directors, who shall be appointed by the
"Art. 121. Powers and Functions of the President of the Philippines, upon recommendation of
Commission. - The Commission shall have the the Secretary of Labor and Employment."
following powers and functions:
"The Executive Director shall have the same rank,
(a) To act as the national consultative and advisory salary, benefits and other emoluments as that of a
body to the President of the Philippines and Congress Department Assistant Secretary, while the Deputy
on matters relating to wages, incomes and Directors shall have the same rank, salary, benefits
productivity; and other emoluments as that of a Bureau Director.
The members of the Commission representing labor
and management shall have the same rank,
(b) To formulate policies and guidelines on wages, emoluments, allowances and other benefits as those
incomes and productivity improvement at the prescribed by law for labor and management
enterprise, industry and national levels; representatives in the Employees' Compensation
Commission."
(c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and "Art. 122. Creation of Regional Tripartite Wages
productivity measures at the regional, provincial or and Productivity Boards. - There is hereby created
industry levels; Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all
(d) To review regional wage levels set by the Regional regions, including autonomous regions as may be
Tripartite Wages and Productivity Boards to determine established by law. The Commission shall determine
if these are in accordance with prescribed guidelines the offices/headquarters of the respective Regional
and national development plans; Boards.

(e) To undertake studies, researches and surveys "The Regional Boards shall have the following
necessary for the attainment of its functions and powers and functions in their respective territorial
objectives, and to collect and compile data and jurisdiction:
periodically disseminate information on wages and
productivity and other related information, including, (a) To develop plans, programs and projects relative
but not limited to, employment, cost-of-living, labor to wages, incomes and productivity improvement for
costs, investments and returns; their respective regions;

(f) To review plans and programs of the Regional (b) To determine and fix minimum wage rates
Tripartite Wages and Productivity Boards to determine applicable in their region, provinces or industries
whether these are consistent with national therein and to issue the corresponding wage orders,
development plans; subject to guidelines issued by the Commission;

(g) To exercise technical and administrative (c) To undertake studies, researches, and surveys
supervision over the Regional Tripartite Wages and necessary for the attainment of their functions,
Productivity Boards; objectives and programs, and to collect and compile
data on wages, incomes, productivity and other

Duman / Labor I / Prof. Battad / Page 103


related information and periodically disseminate the shall file with the Commission an undertaking with a
same; surety or sureties satisfactory to the Commission for
the payment to the employees affected by the order of
(d) To coordinate with the other Regional Boards as the corresponding increase, in the event such order is
may be necessary to attain the policy and intention of affirmed."
this Code;
"Art. 124. Standards/Criteria for Minimum Wage
(e) To receive, process and act on applications for Fixing. The regional minimum wages to be
exemption from prescribed wage rates as may be established by the Regional Board shall be as nearly
provided by law or any Wage Order; and adequate as is economically feasible to maintain the
minimum standards of living necessary for the health,
efficiency and general well-being of the employees
(f) To exercise such other powers and functions as within the framework of the national economic and
may be necessary to carry out their mandate under social development program. In the determination of
this Code. such regional minimum wages, the Regional Board
shall, among other relevant factors, consider the
"Implementation of the plans, programs and following:
projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be (a) The demand for living wages;
through the respective regional offices of the
Department of Labor and Employment within their (b) Wage adjustment vis--vis the consumer price
territorial jurisdiction; Provided, however, That the index;
Regional Boards shall have technical supervision over
the regional office of the Department of Labor and (c) The cost of living and changes or increases
Employment with respect to the implementation of therein;
said plans, programs and projects.
(d) The needs of workers and their families;
"Each Regional Board shall be composed of the
Regional Director of the Department of Labor and (e) The need to induce industries to invest in the
Employment as chairman, the Regional Directors of countryside;
the National Economic and Development Authority
and Department of Trade and Industry as vice- (f) Improvements in standards of living;
chairmen and two (2) members each from workers
and employers sectors who shall be appointed by the (g) The prevailing wage levels;
President of the Philippines, upon recommendation of
the Secretary of Labor and Employment, to be made (h) Fair return of the capital invested and capacity to
on the basis of the list of nominees submitted by the pay of employers;
workers and employers sectors, respectively, and who
shall serve for a term of five (5) years. (i) Effects on employment generation and family
income; and
"Each Regional Board to be headed by its chairman
shall be assisted by a Secretariat." (j) The equitable distribution of income and wealth
along the imperatives of economic and social
development.
"Art. 123. Wage Order. - Whenever conditions in
the region so warrant, the Regional Board shall
investigate and study all pertinent facts; and, based "The wages prescribed in accordance with the
on the standards and criteria herein prescribed, shall provisions of this Title shall be the standard prevailing
proceed to determine whether a Wage Order should minimum wages in every region. These wages shall
be issued. include wages varying with industries, provinces or
localities if in the judgment of the Regional Board
conditions make such local differentiation proper and
Any such Wage Order shall take effect after fifteen necessary to effectuate the purpose of this Title.
(15) days from its complete publication in at least one
(l) newspaper of general circulation in the region.
"Any person, company, corporation, partnership or
any other entity engaged in business shall file and
"In the performance of its wage-determining register annually with the appropriate Regional Board,
functions, the Regional Board shall conduct public Commission and the National Statistics Office an
hearings/consultations, giving notices to employees' itemized listing of their labor component, specifying
and employers' groups, provincial, city and municipal the names of their workers and employees below the
officials and other interested parties. managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under
"Any party aggrieved by the Wage Order issued by the terms prescribed in the employment contracts,
the Regional Board may appeal such order to the and their corresponding salaries and wages.
Commission within ten (l0) calendar days from the
publication of such order. It shall be mandatory for the "Where the application of any prescribed wage
Commission to decide such appeal within sixty (60) increase by virtue of a law or Wage Order issued by
calendar days from the filing thereof. any Regional Board results in distortions of the wage
structure within an establishment, the employer and
"The filing of the appeal does not operate to stay the union shall negotiate to correct the distortions.
the order unless the person appealing such order Any dispute arising from wage distortions shall be
Duman / Labor I / Prof. Battad / Page 104
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
days from the time said dispute was referred to (P500,000.00) and employing not more than twenty
voluntary arbitration. (20) employees, which are located or operating
outside the NCR, shall be paid only an increase of
"In cases where there are no collective agreements fifteen pesos (P15.00): Provided, That those already
or recognized labor unions, the employers and receiving above the minimum wage rates up to one
workers shall endeavor to correct such distortions. hundred pesos (P100.00) shall also receive an
Any dispute arising therefrom shall be settled through increase of twenty-five pesos (P25.00) per day, and
the National Conciliation and Mediation Board and, if except that the workers and employees mentioned in
it remains unresolved after ten (10) calendar days of the first exception clause of this section shall also be
conciliation, shall be referred to the appropriate paid only an increase of twenty-pesos (P20.00), and
branch of the National Labor Relations Commission except further that those employees enumerated in
(NLRC). It shall be mandatory for the NLRC to the second exception clause of this Section shall also
conduct continuous hearings and decide the dispute be paid only an increase of fifteen pesos (P15.00):
within twenty (20) calendar days from the time said Provide, further, That the appropriate Regional Board
dispute is submitted for compulsory arbitration. 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
"The pendency of a dispute arising from a wage determination pursuant to Article 124 of the Labor
distortion shall not in any way delay the applicability of Code such increases are necessary.
any increase in prescribed wage rates pursuant to the
provisions of law or Wage Order.
(b) The increase of twenty-five pesos (P25.00)
prescribed under this Section shall apply to all
"As used, herein, a wage distortion shall mean a workers and employees entitled to the same in private
situation where an increase in prescribed wage rates educational institutions as soon as they have
results in the elimination or severe contraction of increased or are granted authority to increase their
intentional quantitative differences in wage or salary tuition fees during school year 1989-1990. Otherwise,
rates between and among employee groups in an such increase shall be so applicable not later than the
establishment as to effectively obliterate the opening of the next school year beginning 1990.
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation. (c) Exempted from the provisions of this Act are
household or domestic helpers and persons
employed in the personal service of another, including
"All workers paid by result, including those who are family drivers.
paid on piecework, takay, pakyaw or task basis, shall
receive not less than the prescribed wage rates per
eight (8) hours work a day, or a proportion thereof for Retail/service establishments regularly employing
working less than eight (8) hours. not more than ten (10) workers may be exempted
from the applicability of this Act upon application with
and as determined by the appropriate Regional Board
"All recognized learnership and apprenticeship in accordance with the applicable rules and
agreements shall be considered automatically regulations issued by the Commission. Whenever an
modified insofar as their wage clauses are concerned application for exemption has been duly filed with the
to reflect the prescribed wage rates." appropriate Regional Board, action on any complaint
for alleged non-compliance with this Act shall be
"Art. 126. Prohibition Against Injunction. - No deferred pending resolution of the application for
preliminary or permanent injunction or temporary exemption by the appropriate Regional Board.
restraining order may be issued by any court, tribunal
or other entity against any proceedings before the In the event that applications for exemptions are
Commission or the Regional Boards." not granted, employees shall receive the appropriate
compensation due them as provided for by this Act
"Art. 127. Non-Diminution of Benefits. - No Wage plus interest of one percent (1%) per month
Order issued by any Regional Board shall provide for retroactive to the effectivity of this Act.
wage rates lower than the statutory minimum wage
rates prescribed by Congress." (d) If expressly provided for and agreed upon in the
collective bargaining agreements, all increases in the
Sec. 4. (a) Upon the effectivity of this Act, the daily basic wage rates granted by the employers three
statutory minimum wage rates of all workers and (3) months before the effectivity of this Act shall be
employees in the private sector, whether agricultural credited as compliance with the increases in the wage
or non-agricultural, shall be increased by twenty-five rates prescribed herein, provided that, where such
pesos (P25.00) per day, except that workers and increases are less than the prescribed increases in
employees in plantation agricultural enterprises the wage rates under this Act, the employer shall pay
outside of the National Capital Region (NCR) with an the difference. Such increases shall not include
annual gross sales of less than five million pesos anniversary wage increases, merit wage increases
(P5,000,000.00) in the preceding year shall be paid and those resulting from the regularization or
an increase of twenty pesos (P20.00), and except promotion of employees.
Duman / Labor I / Prof. Battad / Page 105
Where the application of the increases in the wage particular worker or workers for a particular payroll
rate under this Section results in distortions as period.
defined under existing laws in the wage structure
within an establishment and gives rise to a dispute Sec. 9. The Department of Labor and Employment
therein, such dispute shall first be settled voluntarily shall conduct inspections as often as possible within
between the parties and in the event of a deadlock, its manpower constraint of the payroll and other
the same shall be finally resolved through compulsory financial records kept by the company or business to
arbitration by the regional arbitration branch of the determine whether the workers are paid the
National Labor Relations Commission (NLRC) having prescribed wage rates and other benefits granted by
jurisdiction over the workplace. law or any Wage Order. In unionized companies, the
Department of Labor and Employment inspectors
It shall be mandatory for the NLRC to conduct shall always be accompanied by the president or any
continuous hearings and decide any dispute arising responsible officer of the recognized bargaining unit
under this Section within twenty(20) calendar days of any interested union in the conduct of the
from the time said dispute is formally submitted to it inspection. In non-unionized companies,
for arbitration. The pendency of a dispute arising from establishments or businesses, the inspection shall be
a wage distortion shall not in any way delay the carried out in the presence of a worker representing
applicability of the increases in the wage rates the workers in the said company. The workers'
prescribed under this Section. representative shall have the right to submit his own
findings to the Department of Labor and Employment
Sec. 5. Within a period of four (4) years from the and to testify on the same if he cannot concur with the
effectivity of this Act and without prejudice to findings of the labor inspector.
collective bargaining negotiations or agreements or
other employment contracts between employers and Sec. 10. The funds necessary to carry out the
workers, new business enterprises that may be provisions of this Act shall be taken from the
established outside the NCR and export processing Compensation and Organizational Adjustment Fund,
zones whose operation or investments need initial the Contingent Fund, and other savings under
assistance as may be determined by the Department Republic Act No. 6688, otherwise known as the
of Labor and Employment in consultation with the General Appropriations Act of 1989, or from any
Department of Trade and Industry or the Department unappropriated funds of the National Treasury:
of Agriculture, as the case may be shall be exempt Provided, That the funding requirements necessary to
from the application of this Act for not more than three implement this Act shall be included in the annual
(3) years from the start of their operations: Provided, General Appropriations Act for the succeeding years.
That such new business enterprises established in
Region III (Central Luzon) and Region IV (Southern Sec. 11. The National Wages Council created
Tagalog) shall be exempt from such increases only for under Executive Order No. 614 and the National
two (2) years from the start of their operations, except Productivity Commission created under Executive
those established in the Provinces of Palawan, Order No. 615 are hereby abolished. All properties,
Oriental Mindoro, Occidental Mindoro, Marinduque, records, equipment, buildings, facilities, and other
Romblon, Quezon and Aurora, which shall enjoy such assets, liabilities and appropriations of and belonging
exemption for not more than three (3) years from the to the abovementioned offices, as well as other
start of their operations. matters pending therein, shall be transferred to the
Commission. All personnel of the above abolished
Sec. 6. In the case of contracts for construction offices shall continue to function in a holdover
projects and for security, janitorial and similar capacity and shall be preferentially considered for
services, the prescribed increases in the wage rates appointments to or placement in the Commission.
of the workers shall be borne by the principals or
clients of the construction/service contractors and the Any official or employee separated from the service
contract shall be deemed amended accordingly. In the as a result of the abolition of offices pursuant to this
event, however, that the principal or client fails to pay Act shall be entitled to appropriate separation pay and
the prescribed wage rates, the construction/service retirement and other benefits accruing to them under
contractor shall be jointly and severally liable with his existing laws. In lieu thereof, at the option of the
principal or client. employee, he shall be preferentially considered for
employment in the government or in any of its
Sec. 7. Upon written petition of the majority of the subdivisions, instrumentalities, or agencies, including
employees or workers concerned, all private government-owned or controlled corporations and
establishments, companies, businesses, and other their subsidiaries.
entities with twenty five (25) or more employees and
located within one (1) kilometer radius to a Sec. 12. Any person, corporation, trust, firm,
commercial, savings or rural bank shall pay the partnership, association or entity which refuses or
wages and other benefits of their employees through fails to pay any of the prescribed increases or
any of said banks and within the period for payment of adjustments in the wage rates made in accordance
wages fixed by Presidential Decree No. 442, as with this Act shall be punished by a fine not exceeding
amended, otherwise known as the Labor Code of the twenty-five thousand pesos (P25,000.00) and/or
Philippines. imprisonment of not less than one (1) year nor more
than two (2) years: Provided, That any person
Sec. 8. Whenever applicable and upon request of a convicted under this Act shall not be entitled to the
concerned worker or union, the bank shall issue a benefits provided for under the Probation Law.
certification of the record of payment of wages of a

Duman / Labor I / Prof. Battad / Page 106


If the violation is committed by a corporation, trust information, including, but not limited to, employment, cost-
or firm, partnership, association or any other entity, of-living, labor costs, investments and returns;
the penalty of imprisonment shall be imposed upon
the entity's responsible officers, including, but not (f) To review plans and programs of the Regional Tripartite
limited to, the president, vice president, chief Wages and Productivity Boards to determine whether these
executive officer, general manager, managing director are consistent with national development plans;
or partner.
(g) To exercise technical and administrative supervision over
Sec. 13. The Secretary of Labor and Employment the Regional Tripartite Wages and Productivity Boards;chan
shall promulgate the necessary rules and regulations robles virtual law library
to implement the provisions of this Act.
(h) To call, from time to time, a national tripartite conference
Sec. 14. All laws, orders, issuances, rules and of representatives of government, workers and employers
regulations or parts thereof inconsistent with the for the consideration of measures to promote wage
rationalization and productivity; and
provisions of this Act are hereby repealed, amended
or modified accordingly. In any provision or part of this
Act, or the application thereof to any person or (i) To exercise such powers and functions as may be
circumstance, is held invalid or unconstitutional, the necessary to implement this Act.
remainder of this Act or the application of such
provision or part thereof to other persons or The Commission shall be composed of the Secretary of
circumstances shall not be affected thereby. Labor and Employment as ex-officio chairman, the Director-
General of the National Economic and Development
Authority (NEDA) as ex-officio vice-chairman, and two (2)
Nothing in this Act shall be construed to reduce any
members each from workers and employers sectors who
existing wage rates, allowances and benefits of any shall be appointed by the President of the Philippines upon
form under existing laws, decrees, issuances, recommendation of the Secretary of Labor and Employment
executive orders, and/or under any contract or to be made on the basis of the list of nominees submitted by
agreement between the workers and employers. the workers and employers sectors, respectively, and who
shall serve for a term of five (5) years. The Executive
Sec. 15. This Act shall take effect fifteen (15) days Director of the Commission shall also be a member of the
after its complete publication in the Official Gazette or Commission.
in at least two (2) national newspapers of general
circulation, whichever comes earlier. The Commission shall be assisted by a Secretariat to be
headed by an Executive Director and two (2) Deputy
Directors, who shall be appointed by the President of the
WAGE STUDIES, WAGE Philippines, upon the recommendation of the Secretary of
Labor and Employment.
AGREEMENTS
AND WAGE DETERMINATION The Executive Director shall have the same rank, salary,
ART. 120. Creation of National Wages and Productivity benefits and other emoluments as that of a Department
Commission. - There is hereby created a National Wages and Assistant Secretary, while the Deputy Directors shall have
Productivity Commission, hereinafter referred to as the the same rank, salary, benefits and other emoluments as
Commission, which shall be attached to the Department of that of a Bureau Director. The members of the Commission
Labor and Employment (DOLE) for policy and program representing labor and management shall have the same
coordination. (As amended by Republic Act No. 6727, June rank, emoluments, allowances and other benefits as those
9, 1989). prescribed by law for labor and management representatives
in the Employees Compensation Commission. (As amended
by Republic Act No. 6727, June 9, 1989).
ART. 121. Powers and functions of the Commission. - The
Commission shall have the following powers and functions:
ART. 122. Creation of Regional Tripartite Wages and
(a) To act as the national consultative and advisory body to Productivity Boards. - There is hereby created Regional
Tripartite Wages and Productivity Boards, hereinafter
the President of the Philippines and Congress on matters
referred to as Regional Boards, in all regions, including
relating to wages, incomes and productivity;
autonomous regions as may be established by law. The
Commission shall determine the offices/headquarters of the
(b) To formulate policies and guidelines on wages, incomes respective Regional Boards.
and productivity improvement at the enterprise, industry and
national levels;
The Regional Boards shall have the following powers and
functions in their respective territorial jurisdictions:
(c) To prescribe rules and guidelines for the determination of
appropriate minimum wage and productivity measures at the
(a) To develop plans, programs and projects relative to
regional, provincial, or industry levels;
wages, incomes and productivity improvement for their
respective regions;
(d) To review regional wage levels set by the Regional
Tripartite Wages and Productivity Boards to determine if
(b) To determine and fix minimum wage rates applicable in
these are in accordance with prescribed guidelines and
their regions, provinces or industries therein and to issue the
national development plans;
corresponding wage orders, subject to guidelines issued by
the Commission;
(e) To undertake studies, researches and surveys necessary
for the attainment of its functions and objectives, and to
(c) To undertake studies, researches, and surveys necessary
collect and compile data and periodically disseminate
for the attainment of their functions, objectives and
information on wages and productivity and other related
Duman / Labor I / Prof. Battad / Page 107
programs, and to collect and compile data on wages, Board shall be as nearly adequate as is economically feasible
incomes, productivity and other related information and to maintain the minimum standards of living necessary for
periodically disseminate the same; the health, efficiency and general well-being of the
employees within the framework of the national economic
and social development program. In the determination of
(d) To coordinate with the other Regional Boards as may be
such regional minimum wages, the Regional Board shall,
necessary to attain the policy and intention of this Code;
among other relevant factors, consider the following:

(e) To receive, process and act on applications for exemption


from prescribed wage rates as may be provided by law or
(a) The demand for living wages;
any Wage Order; and

(b) Wage adjustment vis--vis the consumer price index;


(f) To exercise such other powers and functions as may be
necessary to carry out their mandate under this Code.
(c) The cost of living and changes or increases therein;
Implementation of the plans, programs, and projects of the
Regional Boards referred to in the second paragraph, letter (d) The needs of workers and their families;
(a) of this Article, shall be through the respective regional
offices of the Department of Labor and Employment within
(e) The need to induce industries to invest in the
their territorial jurisdiction; Provided, however, That the
countryside;
Regional Boards shall have technical supervision over the
regional office of the Department of Labor and Employment
with respect to the implementation of said plans, programs (f) Improvements in standards of living;
and projects.
(g) The prevailing wage levels;
Each Regional Board shall be composed of the Regional
Director of the Department of Labor and Employment as (h) Fair return of the capital invested and capacity to pay of
chairman, the Regional Directors of the National Economic employers;
and Development Authority and the Department of Trade
and Industry as vice-chairmen and two (2) members each
from workers and employers sectors who shall be appointed (i) Effects on employment generation and family income;
by the President of the Philippines, upon the and
recommendation of the Secretary of Labor and Employment,
to be made on the basis of the list of nominees submitted by (j) The equitable distribution of income and wealth along the
the workers and employers sectors, respectively, and who imperatives of economic and social development.
shall serve for a term of five (5) years.

Each Regional Board to be headed by its chairman shall be


assisted by a Secretariat. (As amended by Republic Act No.
6727, June 9, 1989). The wages prescribed in accordance with the provisions of
this Title shall be the standard prevailing minimum wages in
every region. These wages shall include wages varying with
ART. 123. Wage Order. - Whenever conditions in the region industries, provinces or localities if in the judgment of the
so warrant, the Regional Board shall investigate and study all Regional Board, conditions make such local differentiation
pertinent facts; and based on the standards and criteria proper and necessary to effectuate the purpose of this Title.
herein prescribed, shall proceed to determine whether a
Wage Order should be issued. Any such Wage Order shall
take effect after fifteen (15) days from its complete Any person, company, corporation, partnership or any other
publication in at least one (1) newspaper of general entity engaged in business shall file and register annually
circulation in the region. with the appropriate Regional Board, Commission and the
National Statistics Office, an itemized listing of their labor
component, specifying the names of their workers and
In the performance of its wage-determining functions, the employees below the managerial level, including learners,
Regional Board shall conduct public hearings/consultations, apprentices and disabled/handicapped workers who were
giving notices to employees and employers groups, hired under the terms prescribed in the employment
provincial, city and municipal officials and other interested contracts, and their corresponding salaries and wages.
parties.

Where the application of any prescribed wage increase by


Any party aggrieved by the Wage Order issued by the virtue of a law or wage order issued by any Regional Board
Regional Board may appeal such order to the Commission results in distortions of the wage structure within an
within ten (10) calendar days from the publication of such establishment, the employer and the union shall negotiate to
order. It shall be mandatory for the Commission to decide correct the distortions. Any dispute arising from wage
such appeal within sixty (60) calendar days from the filing distortions shall be resolved through the grievance
thereof. procedure under their collective bargaining agreement and,
if it remains unresolved, through voluntary arbitration.
The filing of the appeal does not stay the order unless the Unless otherwise agreed by the parties in writing, such
person appealing such order shall file with the Commission, dispute shall be decided by the voluntary arbitrators within
an undertaking with a surety or sureties satisfactory to the ten (10) calendar days from the time said dispute was
Commission for the payment to the employees affected by referred to voluntary arbitration.
the order of the corresponding increase, in the event such
order is affirmed. (As amended by Republic Act No. 6727, In cases where there are no collective agreements or
June 9, 1989). recognized labor unions, the employers and workers shall
endeavor to correct such distortions. Any dispute arising
ART. 124. Standards/Criteria for minimum wage fixing. - The therefrom shall be settled through the National Conciliation
regional minimum wages to be established by the Regional and Mediation Board and, if it remains unresolved after ten
Duman / Labor I / Prof. Battad / Page 108
(10) calendar days of conciliation, shall be referred to the SECTION 2. Wage studies. The National Wages Council
appropriate branch of the National Labor Relations shall conduct a continuing study of wage rates and other
Commission (NLRC). It shall be mandatory for the NLRC to economic conditions in all industries, agricultural and non-
conduct continuous hearings and decide the dispute within agricultural. The results of such study shall be periodically
twenty (20) calendar days from the time said dispute is disseminated to the government, labor and management
submitted for compulsory arbitration. sectors for their information and guidance.

The pendency of a dispute arising from a wage distortion SECTION 3. Wages recommendation. If after such study,
shall not in any way delay the applicability of any increase in the Commission is of the opinion that a substantial number
prescribed wage rates pursuant to the provisions of law or of employees in any given industry or branch thereof are
wage order. receiving wages, which although complying with the
minimum provided by law, are less than sufficient to
maintain them in health, efficiency and general well-being,
As used herein, a wage distortion shall mean a situation
taking into account, among others, the peculiar
where an increase in prescribed wage rates results in the
circumstances of the industry and its geographical location,
elimination or severe contraction of intentional quantitative
the Commission shall, with the approval of the Secretary of
differences in wage or salary rates between and among
Labor and Employment, proceed to determine whether a
employee groups in an establishment as to effectively
wage recommendation should be issued.
obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of
differentiation. SECTION 4. Criteria for wage fixing. (a) In addition to the
criteria established by Art. 123 of the Code for minimum
wage fixing, the Commission shall consider, among other
All workers paid by result, including those who are paid on
factors, social services and benefits given free to workers
piecework, takay, pakyaw or task basis, shall receive not less
and the possible effect of a given increase in the minimum
than the prescribed wage rates per eight (8) hours of work a
wage on prices, money supply, employment, labor mobility
day, or a proportion thereof for working less than eight (8)
and productivity, labor organization efficacy, domestic and
hours.
foreign trade, and other relevant indicators of social and
economic development.
All recognized learnership and apprenticeship agreements
shall be considered automatically modified insofar as their
(b) Where a fair return to capital invested cannot be
wage clauses are concerned to reflect the prescribed wage
reasonably determined, or where the industry concerned is
rates. (As amended by Republic Act No. 6727, June 9, 1989).
not operated for profit, its capacity to pay, taking into
account all resources available to it, shall be considered.
ART. 125. Freedom to bargain. - No wage order shall be
construed to prevent workers in particular firms or
SECTION 5. Quorum. Three (3) members of the
enterprises or industries from bargaining for higher wages
Commission, including its Chairman, shall constitute a
with their respective employers. (As amended by Republic
quorum to transact the Commission's business.
Act No. 6727, June 9, 1989).

SECTION 6. Commission actions, number of votes required.


ART. 126. Prohibition against injunction. No preliminary or
The votes of at least three (3) members of the
permanent injunction or temporary restraining order may be
Commission shall be necessary to effect any decision or
issued by any court, tribunal or other entity against any
recommendation it is authorized to issue under the Code and
proceedings before the Commission or the Regional Boards.
this rule: Provided, That in the internal regulation and
(As amended by Republic Act No. 6727, June 9, 1989).
direction of the functions of the Commission's staff including
the conduct of administrative processes and the
ART. 127. Non-diminution of benefits. - No wage order maintenance of proper liaison and coordination with other
issued by any regional board shall provide for wage rates organizations, the Chairman shall not need the consent of
lower than the statutory minimum wage rates prescribed by the Commission or any member thereof.
Congress. (As amended by Republic Act No. 6727, June 9,
1989).
SECTION 7. Outside assistance. The Commission may call
upon the assistance and cooperation of any government
RULE IX agency or official, and may invite any private person or
Wage Studies and Determination organization to furnish information in connection with
industry studies and wage fixing hearings or in aid of the
SECTION 1. Definition of terms. (a) "Industry" shall mean Commission's deliberations.
any identifiable group of productive units or enterprises,
whether operated for profit or not, engaged in similar or SECTION 8. Schedule of hearings and notices. The
allied economic activities in which individuals are gainfully Commission shall prepare a schedule of hearings for the
employed. reception of evidence necessary for wage fixing in an
industry, including a list of witnesses that it will invite and
(b) A "branch" of an industry is a work, product or service the date, time and place of the hearings. A notice thereof to
grouping thereof which can be considered a distinct division all sectors of the industry shall be given in the most
for wage-fixing purposes. expeditious manner. It may have prior consultations with
labor and management leaders in the industry for the above
purpose.
(c) "Substantial number" shall mean such an appreciable
number of employees in an industry as, in the Commission's
opinion, considering all relevant facts, may require action SECTION 9. Unsolicited testimony. Persons who offer to
under Art. 121 of the Code to effectuate the purposes of testify before the Commission shall be heard only after the
wage determination, regardless of the proportion of such Commission is satisfied, upon brief preliminary examination,
employees to the total number of employees in the industry. that they are in possession of facts relevant to the subject of
inquiry. The Chairman, or in other cases, the person
conducting the hearing, shall revise the schedule of hearings

Duman / Labor I / Prof. Battad / Page 109


whenever necessary to achieve logical sequence of SECTION 20. Varying minimum wages. To justify different
testimony. 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
SECTION 10. Compulsory processes. Recourse to
prevailing in other localities.
compulsory processes under the Revised Administrative
Code to ensure the attendance of witnesses and/or the
production of relevant documentary evidence shall be used SECTION 21. Publication of Wage Order. Only such
only on occasions of extreme importance and after other portions of a Wage Order shall be published as shall
means shall have failed, subject to the approval of the effectively give notice to all interested parties that such an
Secretary of Labor and Employment. Order has been issued, the industry affected, the minimum
wages prescribed and the date of its effectivity.
SECTION 11. Hearings; where, by whom conducted.
Commission hearings may be conducted by the Commission SECTION 22. Effectivity. A Wage Order shall become
en banc, or, when authorized by the Commission, by any effective after fifteen (15) days from its publication as
member or hearing officer designated by the Chairman. The provided in Article 124 of the Code.
hearings may be held wherever the industry or branches
thereof are situated; otherwise they shall be held in the
SECTION 23. Internal rules of the Commission. Subject to
Greater Manila Area. The hearings shall be open to the
the approval of the Secretary of Labor and Employment, the
public.
National Wages Council may issue rules and regulations
governing its internal procedure.
SECTION 12. Hearings before single member or hearing
officer. Hearings conducted by a duly authorized member
or hearing officer shall be considered as hearings before the
Commission. The records of such hearings shall be a. Rationale for Wage Rationalization, RA 6727, Sec. 2
submitted to the Commission as soon as they are completed,
indicating the time and place of the hearings and the
appearances thereat, together with a brief statement of the Sec. 2. It is hereby declared the policy of the State to
findings and recommendations of the member or hearing rationalize the fixing of minimum wages and to promote
officer concerned. productivity-improvement and gain-sharing measures to
ensure a decent standard of living for the workers and their
SECTION 13. Testimony under oath. The testimony of all families; to guarantee the rights of labor to its just share in
witnesses shall be made under oath or affirmation and shall the fruits of production; to enhance employment generation
be taken down and transcribed by a duly appointed in the countryside through industry dispersal; and to allow
stenographic reporter. business and industry reasonable returns on investment,
expansion and growth.
SECTION 14. Non-applicability of technical rules. The
technical rules of evidence applied by the courts in The State shall promote collective bargaining as the primary
proceedings at law or equity shall not strictly apply in any mode of setting wages and other terms and conditions of
proceedings conducted before the Commission. 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
SECTION 15. Stipulation of fact. Stipulations of fact may
and other socio-economic factors and the national economic
be admitted with respect to any matter at issue in the
and social development plans.
proceedings.

b. Agencies in Wage Fixing Machinery


SECTION 16. Documentary evidence. Written evidence
submitted to the Commission or any member or hearing
1) National Wages and Productivity Commission, RA
officer shall be properly marked to facilitate identification.
6727, Sec. 3; Arts. 120, 121, 126

SECTION 17. Submission of industry-report. Within sixty


(60) working days from the date of the first hearing, the
Commission shall submit to the Secretary of Labor and
Employment an "Industry Report" which shall relate in brief
the operations that led thereto, the basic findings of
economic facts 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
2) Regional Tripartite Wages and Productivity Board,
approval of the President of the Philippines, prescribing the
RA 6727, Sec. 3; Arts. 122, 126
minimum wage or wages for the industry concerned.
Nasipit Lumber Co. v. NLRC, 289 SCRA 667 (1998)
SECTION 19. Wage Order. The Wage Order shall specify
the industry or branch to which the minimum wages
prescribed therein shall apply; Provided, That no definite
rates shall be prescribed for specific job titles in the industry.

Duman / Labor I / Prof. Battad / Page 110


c. Standards/Criteria for Minimum Wage Fixing, RA 6727,
3) Wage Distortion
Sec. 3; Art. 124

d. Wage Order, Arts. 123, 124 Prubankers Association v. Prudential Bank & Trust Co.,
302 SCRA 74 (1999)
1) Methods of Fixing

a) Floor Wage method

b) Salary Ceiling Method

Employers Confederation of the Phil. V. National Wage


and Productivity Commission, 201 SCRA 759 (1991)

3. Wage Payment and Protection

a. Form of Payment, Art. 202; Civil Code, Art. 1705;


Rule VIII, Secs. 1, 2

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
2) Validity to be best qualified to take care and dispose of the minors
or incompetents property for his benefit.
Cagayan Sugar Milling Co. v. Secretary, DOLE, 284
SCRA 150 (1998) NCC Art. 1705. The laborer's wages shall be paid in legal
currency.

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
Duman / Labor I / Prof. Battad / Page 111
alleged to represent legal tender is absolutely prohibited subject to the following conditions, in the absence of a
even when expressly requested by the employee. collective bargaining agreement or arbitration award:

SECTION 2. Payment by check. Payment of wages by (1) That payments are made at intervals not exceeding
bank checks, postal checks or money orders is allowed sixteen (16) days, in proportion to the amount of work
where such manner of wage payment is customary on the completed;
date of the effectivity of the Code, where it is so stipulated
in a collective agreement, or where all of the following
(2) That final settlement is made upon completion of the
conditions are met:
work.

(a) There is a bank or other facility for encashment within a


SECTION 3. Time of payment. (a) Wages shall be paid not
radius of one (1) kilometer from the workplace;
less than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days, unless payment
(b) The employer or any of his agents or representatives cannot be made with such regularity due to force majeure or
does not receive any pecuniary benefit directly or indirectly circumstances beyond the employer's control in which case
from the arrangement; the employer shall pay the wages immediately after such
force majeure or circumstances have ceased.
(c) The employees are given reasonable time during banking
hours to withdraw their wages from the bank which time (b) In case of payment of wages by results involving work
shall be considered as compensable hours worked if done which cannot be finished in two (2) weeks, payment shall be
during working hours; and made at intervals not exceeding sixteen days in proportion
to the amount of work completed. Final settlement shall be
made immediately upon completion of the work.
(d) The payment by check is with the written consent of the
employees concerned if there is no collective agreement
authorizing the payment of wages by bank checks. c. Place of Payment, Art. 104, Sec. 4

Congson v. NLRC, 243 SCRA 260 (1995)


SECTION 4. Place of payment. As a general rule, the
place of payment shall be at or near the place of
undertaking. Payment in a place other than the work place
shall be permissible only under the following circumstances:

(a) When payment cannot be effected at or near the place


of work by reason of the deterioration of peace and order
conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering
payment thereat impossible;

(b) When the employer provides free transportation to the


employees back and forth; and

(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.

LC ART. 104. Place of payment. - Payment of wages shall be


made at or near the place of undertaking, except as
otherwise provided by such regulations as the Secretary of
Labor and Employment may prescribe under conditions to
b. Time of Payment, Art. 103, Sec. 3 ensure greater protection of wages.

See: Labor Advisory on Payment of Salaries Thru Automated


ART. 103. Time of payment. - Wages shall be paid at least Teller Machines (ATM)
once every two (2) weeks or twice a month at intervals not
exceeding sixteen (16) days. If on account of force majeure
or circumstances beyond the employers control, payment of
wages on or within the time herein provided cannot be
made, the employer shall pay the wages immediately after d. Person to Pay, Art. 105, Secs. 5, 6
such force majeure or circumstances have ceased. No
employer shall make payment with less frequency than once
a month.
SECTION 5. Direct payment of wages. Payment of wages
shall be made direct to the employee entitled thereto except
The payment of wages of employees engaged to perform a in the following cases:
task which cannot be completed in two (2) weeks shall be

Duman / Labor I / Prof. Battad / Page 112


(a) Where the employer is authorized in writing by the ART. 112. Non-interference in disposal of wages. - No
employee to pay his wages to a member of his family; 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
(b) Where payment to another person of any part of the
merchandise, commodities or other property from any other
employee's wages is authorized by existing law, including
person, or otherwise make use of any store or services of
payments for the insurance premiums of the employee and
such employer or any other person.
union dues where the right to check-off has been recognized
by the employer in accordance with a collective agreement
or authorized in writing by the individual employees
concerned; or 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
(c) In case of death of the employee as provided in the
person:
succeeding Section.

(1) Does not have substantial capital or investment in the


SECTION 6. Wages of deceased employee. The payment
form of tools, equipment, machineries, work premises and
of the wages of a deceased employee shall be made to his
other materials; and
heirs without the necessity of 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 (2) The workers recruited and placed by such person are
are his heirs to the exclusion of all other persons. In case performing activities which are directly related to the
any of the heirs is a minor, such affidavit shall be executed in principal business or operations of the employer in which
his behalf by his natural guardian or next of kin. Upon workers are habitually employed.
presentation of the affidavit to the employer, he shall make
payment to the heirs as representative of the Secretary of
(b) Labor-only contracting as defined herein is hereby
Labor and Employment.
prohibited and the person acting as contractor shall be
considered merely as an agent or intermediary of the
ART. 105. Direct payment of wages. - Wages shall be paid employer who shall be responsible to the workers in the
directly to the workers to whom they are due, except: same manner and extent as if the latter were directly
employed by him.
(a) In cases of force majeure rendering such payment
impossible or under other special circumstances to be (c) For cases not falling under this Rule, the Secretary of
determined by the Secretary of Labor and Employment in Labor and Employment shall determine through appropriate
appropriate regulations, in which case, the worker may be orders whether or not the contracting out of labor is
paid through another person under written authority given permissible in the light of the circumstances of each case
by the worker for the purpose; or and after considering the operating needs of the employer
and the rights of the workers involved. In such case, he may
prescribe conditions and restrictions to insure the protection
(b) Where the worker has died, in which case, the employer
and welfare of the workers.
may pay the wages of the deceased worker to the heirs of
the latter without the necessity of intestate proceedings. The
claimants, if they are all of age, shall execute an affidavit b. Wage Deduction, Art. 113; Rule VIII, Sec. 10
attesting to their relationship to the deceased and the fact
that they are his heirs, to the exclusion of all other persons.
If any of the heirs is a minor, the affidavit shall be executed
ART. 113. Wage deduction. - No employer, in his own behalf
on his behalf by his natural guardian or next-of-kin. The
or in behalf of any person, shall make any deduction from
affidavit shall be presented to the employer who shall make
the wages of his employees, except:
payment through the Secretary of Labor and Employment or
his representative. The representative of the Secretary of
Labor and Employment shall act as referee in dividing the (a) In cases where the worker is insured with his consent by
amount paid among the heirs. The payment of wages under the employer, and the deduction is to recompense the
this Article shall absolve the employer of any further liability employer for the amount paid by him as premium on the
with respect to the amount paid. insurance;

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

(c) In cases where the employer is authorized by law or


regulations issued by the Secretary of Labor and
Employment.

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

Duman / Labor I / Prof. Battad / Page 113


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

c. Requirement to make Deposits for Loss or


Damage, Art. Arts. 114, 115; Rule VIII, Sec. 11 ART. 116. Withholding of wages and kickbacks prohibited. -
It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce
him to give up any part of his wages by force, stealth,
intimidation, threat or by any other means whatsoever
without the workers consent.
ART. 114. Deposits for loss or damage. - No employer shall
require his worker to make deposits from which deductions
shall be made for the reimbursement of loss of or damage NCC Art. 1706. Withholding of the wages, except for a
to tools, materials, or equipment supplied by the employer, debt due, shall not be made by the employer.
except when the employer is engaged in such trades,
occupations or business where the practice of making
deductions or requiring deposits is a recognized one, or is f. Deduction to Ensure Employment, Art. 117
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 of any
ART. 115. Limitations. - No deduction from the deposits of employee for the benefit of the employer or his
an employee for the actual amount of the loss or damage representative or intermediary as consideration of a promise
shall be made unless the employee has been heard of employment or retention in employment.
thereon, and his
g. Retaliatory Measures, Art. 118
SECTION 11. Attorney's fees. Attorney's fees in any
judicial or administrative proceedings for the recovery of ART. 118. Retaliatory measures. - It shall be unlawful for an
wages shall not exceed 10 percent of the amount awarded. employer to refuse to pay or reduce the wages and benefits,
The fees may be deducted from the total amount due the discharge or in any manner discriminate against any
winning party responsibility has been clearly shown. employee who has filed any complaint or instituted any
proceeding under this Title or has testified or is about to
testify in such proceedings.
Dentech Manufacturing Corp. NLRC, 172 SCRA 588
(1989)
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 for any


employer or any person to make any false statement, report
or record on matters required to be kept or maintained
Five J Taxi v. NLRC, 235 SCRA 556 (1994)
pursuant to the provisions of this Rule.

i. Keeping of Employees Records in a Place other than


the Workplace

Duman / Labor I / Prof. Battad / Page 114


South Motorists Enterprises v. Tosoc, 181 SCRA 386
(1990)
LC ART. 110. Worker preference in case of bankruptcy. - In
the event of bankruptcy or liquidation of an employers
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
j. Garnishment/Execution, Civil Code, Art. 1708
Art. 2242. With reference to specific immovable property and
real rights of the debtor, the following claims, mortgages and
liens shall be preferred, and shall constitute an encumbrance
NCC Art. 1708. The laborer's wages shall not be subject to on the immovable or real right:
execution or attachment, except for debts incurred for food,
shelter, clothing and medical attendance.
(3) Claims of laborers, masons, mechanics and other
workmen, as well as of architects, engineers and
GAA v. Court of Appeals, 140 SCRA 304 (1985) 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 obligation does
not imply that each one of the former 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)
Special Steel Corp. v. Villareal, 434 SCRA 19 (2004)

Republic v. Peralta, 150 SCRA 37 (1987)


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)

Duman / Labor I / Prof. Battad / Page 115


relationship of employer-employee still exists, the Secretary
of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance
orders to give effect to the labor standards provisions of this
Code and other labor legislation based on the findings of
labor employment and enforcement officers or industrial
safety engineers made in the course of inspection. The
Secretary or his duly authorized representatives shall issue
writs of execution to the appropriate authority for the
enforcement of their orders, except in cases where the
employer contests the findings of the labor employment and
enforcement officer and raises issues supported by
documentary proofs which were not considered in the course
of inspection. (As amended by Republic Act No. 7730, June
2, 1994).

An order issued by the duly authorized representative of the


Secretary of Labor and Employment under this Article may
be appealed to the latter. In case said order involves a
monetary award, an appeal by the employer may be
perfected only upon the posting of a cash or surety bond
issued by a reputable bonding company duly accredited by
the Secretary of Labor and Employment in the amount
equivalent to the monetary award in the order appealed
from. (As amended by Republic Act No. 7730, June 2, 1994).
Manila Banking Corp. v. NLRC, 279 SCRA 602, 621-642
(1997) (c) The Secretary of Labor and Employment may likewise
order stoppage of work or suspension of operations of any
unit or department of an establishment when non-
compliance with the law or implementing rules and
regulations poses grave and imminent danger to the health
and safety of workers in the workplace. Within twenty-four
hours, a hearing shall be conducted to determine whether
an order for the stoppage of work or suspension of
operations shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay the
employees concerned their salaries or wages during the
period of such stoppage of work or suspension of operation.

(d) It shall be unlawful for any person or entity to obstruct,


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

(e) Any government employee found guilty of violation of, or


abuse of authority, under this Article shall, after appropriate
administrative investigation, be subject to summary
dismissal from the service.

(f) The Secretary of Labor and Employment may, by


appropriate regulations, require employers to keep and
maintain such employment records as may be necessary in
6. Wage Recovery/Jurisdiction, arts. 128, 129, 217, aid of his visitorial and enforcement powers under this Code.
111; Book III, Rule X, Secs. 1-5
ART. 129. Recovery of wages, simple money claims and
other benefits. - Upon complaint of any interested party, the
ART. 128. Visitorial and enforcement power. - (a) The Regional Director of the Department of Labor and
Secretary of Labor and Employment or his duly authorized Employment or any of the duly authorized hearing officers of
representatives, including labor regulation officers, shall the Department is empowered, through summary
have access to employers records and premises at any time proceeding and after due notice, to hear and decide any
of the day or night whenever work is being undertaken matter involving the recovery of wages and other monetary
therein, and the right to copy therefrom, to question any claims and benefits, including legal interest, owing to an
employee and investigate any fact, condition or matter which employee or person employed in domestic or household
may be necessary to determine violations or which may aid service or househelper under this Code, arising from
in the enforcement of this Code and of any labor law, wage employer-employee relations: Provided, That such complaint
order or rules and regulations issued pursuant thereto. does not include a claim for reinstatement: Provided further,
That the aggregate money claims of each employee or
(b) Notwithstanding the provisions of Articles 129 and 217 of househelper does not exceed Five thousand pesos
this Code to the contrary, and in cases where the (P5,000.00). The Regional Director or hearing officer shall
Duman / Labor I / Prof. Battad / Page 116
decide or resolve the complaint within thirty (30) calendar amended by Section 9, Republic Act No. 6715, March 21,
days from the date of the filing of the same. Any sum thus 1989).
recovered on behalf of any employee or househelper
pursuant to this Article shall be held in a special deposit ART. 111. Attorneys fees. - (a) In cases of unlawful
account by, and shall be paid on order of, the Secretary of withholding of wages, the culpable party may be assessed
Labor and Employment or the Regional Director directly to attorneys fees equivalent to ten percent of the amount of
the employee or househelper concerned. Any such sum not wages recovered.
paid to the employee or househelper because he cannot be
located after diligent and reasonable effort to locate him
within a period of three (3) years, shall be held as a special
SECTION 1. Visitorial power. The Secretary of Labor and
fund of the Department of Labor and Employment to be
Employment or his duly authorized representatives, including
used exclusively for the amelioration and benefit of workers.
Labor Regulations Officers or Industrial Safety Engineers,
shall have access to employer's records and premises at any
Any decision or resolution of the Regional Director or hearing time of the day or night whenever work is being undertaken
officer pursuant to this provision may be appealed on the therein, and right to copy therefrom, to question any
same grounds provided in Article 223 of this Code, within employee, and to investigate any fact, condition or matter
five (5) calendar days from receipt of a copy of said decision relevant to the enforcement of any provision of the Code
or resolution, to the National Labor Relations Commission and of any labor law, wage order or rules and regulations
which shall resolve the appeal within ten (10) calendar days issued pursuant thereto.
from the submission of the last pleading required or allowed
under its rules.chan robles virtual law library
SECTION 2. Enforcement power. (a) The Regional Director
in cases where employer relations shall exist, shall have the
The Secretary of Labor and Employment or his duly power to order and administer, after due notice and hearing,
authorized representative may supervise the payment of compliance with the labor standards provisions of the Code
unpaid wages and other monetary claims and benefits, and other labor legislations based on the findings of the
including legal interest, found owing to any employee or Labor Regulation Officers or Industrial Safety Engineers
househelper under this Code. (As amended by Section 2, (Labor Standard and Welfare Officer) and made in the
Republic Act No. 6715, March 21, 1989). course of inspection, and to issue writs of execution to the
appropriate authority of the enforcement of his order. In line
with the provisions of Article 128 in relation to Articles 289
ART. 217. Jurisdiction of the Labor Arbiters and the
and 290 of the Labor Code as amended in cases, however,
Commission. - (a) Except as otherwise provided under this
where the employer contests the findings of the Labor
Code, the Labor Arbiters shall have original and exclusive
Standards and Welfare Officers and raises issues which
jurisdiction to hear and decide, within thirty (30) calendar
cannot be resolved without considering evidentiary matters
days after the submission of the case by the parties for
that are not verifiable in the normal course of inspection, the
decision without extension, even in the absence of
Regional Director concerned shall indorse the case to the
stenographic notes, the following cases involving all workers,
appropriate arbitration branch of the National Labor
whether agricultural or non-agricultural:
Relations Commission for adjudication.

1. Unfair labor practice cases;


(b) The Regional Director shall give the employer fifteen (15)
days within which to comply with his order before issuing a
2. Termination disputes; writ of execution. Copy of such order or writ of execution
shall immediately be furnished the Secretary of Labor and
3. If accompanied with a claim for reinstatement, those Employment.
cases that workers may file involving wages, rates of pay,
hours of work and other terms and conditions of SECTION 3. Enforcement power on health and safety of
employment; workers. (a) The Regional Director may likewise order
stoppage of work or suspension of operations of any unit or
4. Claims for actual, moral, exemplary and other forms of department of an establishment when non-compliance with
damages arising from the employer-employee relations; the law, safety order or implementing rules and regulations
poses grave and imminent danger to the health and safety
of workers in the workplace.
5. Cases arising from any violation of Article 264 of this
Code, including questions involving the legality of strikes and
lockouts; and (b) Within 24 hours from issuance of the order of stoppage
or suspension, a hearing shall be conducted to determine
whether the order for the stoppage of work or suspension of
6. Except claims for Employees Compensation, Social operation shall be lifted or not. The proceedings shall be
Security, Medicare and maternity benefits, all other claims terminated within seventy-two (72) hours and a copy of
arising from employer-employee relations, including those of such order or resolution shall be immediately furnished the
persons in domestic or household service, involving an Secretary of Labor and Employment. In case the violation is
amount exceeding five thousand pesos (P5,000.00) attributable to the fault of the employer, he shall pay the
regardless of whether accompanied with a claim for employees concerned their salaries or wages during the
reinstatement. period of such stoppage of work or suspension of operation.

(b) The Commission shall have exclusive appellate jurisdiction


SECTION 4. Power to review. (a) The Secretary of Labor
and Employment, at his own initiative or upon request of the
over all cases decided by Labor Arbiters.
employer and/or employee, may review the order of the
Regional Director. The order of the Regional Director shall be
(c) Cases arising from the interpretation or implementation immediately final and executory unless stayed by the
of collective bargaining agreements and those arising from Secretary of Labor and Employment upon posting by the
the interpretation or enforcement of company personnel employer of a reasonable cash or surety bond as fixed by
policies shall be disposed of by the Labor Arbiter by referring the Regional Director.
the same to the grievance machinery and voluntary
arbitration as may be provided in said agreements. (As
Duman / Labor I / Prof. Battad / Page 117
(b) In aid of his power of review, the Secretary of Labor and
Employment may direct the Bureau of Working Conditions to 2. Coverage
evaluate the findings or orders of the Regional Director. The
decision of the Secretary of Labor and Employment shall be Archilles Manufacturing Corp. v, NLRC, 244 SCRA 750
final and executory. (1995)

SECTION 5. Interference and injunctions prohibited. It


shall be unlawful for any person or entity to obstruct,
impede, delay or otherwise render ineffective the exercise of
the enforcement power of the Secretary of Labor and
Employment, Regional Director or their duly authorized
representatives pursuant to the authority granted by the
Code and its implementing rules and regulations, 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 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)

H. Thi rte en th M on th P ay
3. Rationale, PD 851, Whereas Clauses and
LImitations
1. History of the Law
WHEREAS, it is necessary to further protect the level of real
Dentech Mfg. Corp. v. NLRC, supra wages from the ravage of worldwide inflation;
Duman / Labor I / Prof. Battad / Page 118
WHEREAS, there has been no increase in the legal minimum
wage rates since 1970;

WHEREAS, the Christmas season is an opportune time for


society to show its concern for the plight of 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.

4. Amount and Date of Payment

a. Basic Wage/Commissions

Boie Takeda v. Dela Serna, Supra


Iran v. NLRC, supra

Honda Philippines Inc. v. Samahan ng Malayang d. Diminution


Manggagawa sa Honda, 460 SCRA 186 (2005)
Davao Fruits Corp. v. Associated Labor Unions, supra

I. Bon us

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 (1989)
Marcos v. NLRC, 248 SCRA 146 (1995)
Duman / Labor I / Prof. Battad / Page 119
1. Women, Arts. 130-138; Omnibus Rules, Book III,
Rule XII, Sec. 1; Constitution, Arts. II, Sec. 13 & XIII, Sec.
14; Convention on the Elimination of All Forms of
Discrimination Against Women (CEDAW), Arts. 11-13; ILO
Convention Nos. 100 & 111

Chapter I
EMPLOYMENT OF WOMEN
ART. 130. Nightwork prohibition. - No woman, regardless of
age, shall be employed or permitted or suffered to work,
with or without compensation:

(a) In any industrial undertaking or branch thereof between


ten oclock at night and six oclock in the morning of the
following day; or

(b) In any commercial or non-industrial undertaking or


branch thereof, other than agricultural, between midnight
and six oclock in the morning of the following day; or

(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


Business Information Systems and Services, Inc. v. preceding Article shall not apply in any of the following
NLRC, 221 SCRA 9 (1993)Philippine Appliance Corp. v. cases:
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 or undertaking; and
American Wire and Cable Daily Rated Employees Union
v. American Wire and Cable Co., Inc., 457 SCRA 684 (g) Under other analogous cases exempted by the Secretary
(2005) 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 their duties in this position
without detriment to efficiency;

(b) To establish separate toilet rooms and lavatories for men


and women and provide at least a dressing room for
J. Wor kin g Con ditio ns for Spe cial Gr ou p of women;
Work er s

Duman / Labor I / Prof. Battad / Page 120


(c) To establish a nursery in a workplace for the benefit of ART. 136. Stipulation against marriage. - It shall be unlawful
the women employees therein; and for an employer to require as a condition of employment or
continuation of employment that a woman employee shall
not get married, or to stipulate expressly or tacitly that upon
(d) To determine appropriate minimum age and other
getting married, a woman employee shall be deemed
standards for retirement or termination in special
resigned or separated, or to actually dismiss, discharge,
occupations such as those of flight attendants and the like.
discriminate or otherwise prejudice a woman employee
merely by reason of her marriage.
ART. 133. Maternity leave benefits. - (a) Every employer
shall grant to any pregnant woman employee who has
ART. 137. Prohibited acts. - (a) It shall be unlawful for any
rendered an aggregate service of at least six (6) months for
employer:
the last twelve (12) months, maternity leave of at least two
(2) weeks prior to the expected date of delivery and another
four (4) weeks after normal delivery or abortion with full pay (1) To deny any woman employee the benefits provided for
based on her regular or average weekly wages. The in this Chapter or to discharge any woman employed by him
employer may require from any woman employee applying for the purpose of preventing her from enjoying any of the
for maternity leave the production of a medical certificate benefits provided under this Code.
stating that delivery will probably take place within two
weeks.
(2) To discharge such woman on account of her pregnancy,
or while on leave or in confinement due to her pregnancy;
(b) The maternity leave shall be extended without pay on
account of illness medically certified to arise out of the
(3) To discharge or refuse the admission of such woman
pregnancy, delivery, abortion or miscarriage, which renders
upon returning to her work for fear that she may again be
the woman unfit for work, unless she has earned unused
pregnant.
leave credits from which such extended leave may be
charged.
ART. 138. Classification of certain women workers . - Any
woman who is permitted or suffered to work, with or without
(c) The maternity leave provided in this Article shall be paid
compensation, in any night club, cocktail lounge, massage
by the employer only for the first four (4) deliveries by a
clinic, bar or similar establishments under the effective
woman employee after the effectivity of this Code.
control or supervision of the employer for a substantial
period of time as determined by the Secretary of Labor and
ART. 134. Family planning services; incentives for family Employment, shall be considered as an employee of such
planning. - (a) Establishments which are required by law to establishment for purposes of labor and social legislation.
maintain a clinic or infirmary shall provide free family
planning services to their employees which shall include, but
RULE XII
not be limited to, the application or use of contraceptive pills
Employment of Women and Minors
and intrauterine devices.

SECTION 1. General statement on coverage. This Rule


(b) In coordination with other agencies of the government
shall apply to all employers, whether operating for profit or
engaged in the promotion of family planning, the
not, including educational, religious and charitable
Department of Labor and Employment shall develop and
institutions, except to the Government and to government-
prescribe incentive bonus schemes to encourage family
owned or controlled corporations and to employers of
planning among female workers in any establishment or
household helpers and persons in their personal service
enterprise.
insofar as such workers are concerned.

ART. 135. Discrimination prohibited. - It shall be unlawful for


Constitution Art. II, Section 13. The State
any employer to discriminate against any woman employee
with respect to terms and conditions of employment solely
recognizes the vital role of the youth in nation-building
on account of her sex. and shall promote and protect their physical, moral,
spiritual, intellectual, and social well-being. It shall
inculcate in the youth patriotism and nationalism, and
The following are acts of discrimination: encourage their involvement in public and civic affairs.

(a) Payment of a lesser compensation, including wage, ARTICLE XIII WOMEN


salary or other form of remuneration and fringe benefits, to Section 14. The State shall protect working women
a female employees as against a male employee, for work of by providing safe and healthful working conditions,
equal value; and taking into account their maternal functions, and such
facilities and opportunities that will enhance their
(b) Favoring a male employee over a female employee with welfare and enable them to realize their full potential
respect to promotion, training opportunities, study and in the service of the nation.
scholarship grants solely on account of their sexes.

Criminal liability for the willful commission of any unlawful


act as provided in this Article or any violation of the rules
and regulations issued pursuant to Section 2 hereof shall be
penalized as provided in Articles 288 and 289 of this Code:
Provided, That the institution of any criminal action under
this provision shall not bar the aggrieved employee from
filing an entirely separate and distinct action for money CEDA W
claims, which may include claims for damages and other Article 11
affirmative reliefs. The actions hereby authorized shall 1. States Parties shall take all appropriate measures
proceed independently of each other. (As amended by to eliminate discrimination against women in the field
Republic Act No. 6725, May 12, 1989). of employment in order to ensure, on a basis of

Duman / Labor I / Prof. Battad / Page 121


equality of men and women, the same rights, in appropriate services in connection with pregnancy,
particular: confinement and the post-natal period, granting free
(a) The right to work as an inalienable right of all services where necessary, as well as adequate
human beings; nutrition during pregnancy and lactation.

(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;
C1 00 E qu al R emu ne ratio n C on vent ion, 195 1
(e) The right to social security, particularly in cases of
retirement, unemployment, sickness, invalidity and old Convention concerning Equal Remuneration for Men and
age and other incapacity to work, as well as the right Women Workers for Work of Equal Value (Note: Date of
to paid leave; coming into force: 23:05:1953.)
Convention:C100
(f) The right to protection of health and to safety in Place:Geneva
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
2. In order to prevent discrimination against women Subject: Eq uali ty of O ppo rt un it y a nd T reat men t
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
marital status; Having been convened at Geneva by the Governing 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 proposals with
employment, seniority or social allowances;
regard to the principle of equal remuneration for men and
women workers for work of equal value, which is the
(c) To encourage the provision of the necessary seventh item on the 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 the form
and participation in public life, in particular through 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 Remuneration
pregnancy in types of work proved to be harmful to 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 rem une ratio n includes the ordinary, basic or
minimum wage or salary and any additional emoluments
Article 12 whatsoever payable directly or indirectly, whether in cash or
1. States Parties shall take all appropriate measures in kind, by the employer to the worker and arising out of the
to eliminate discrimination against women in the field worker's employment;
of health care in order to ensure, on a basis of
equality of men and women, access to health care
(b) the term eq ual re mu ne ratio n f or me n a nd wome n
services, including those related to family planning. work ers f or wo rk of equ al v alu e refers to rates of
remuneration established without discrimination based on
2. Notwithstanding the provisions of paragraph I of sex.
this article, States Parties shall ensure to women
Duman / Labor I / Prof. Battad / Page 122
Article 2 1. Declarations communicated to the Director-General of the
International Labour Office in accordance with paragraph 2
of Article 35 of the Constitution of the International Labour
1. Each Member shall, by means appropriate to the methods
Organisation shall indicate --
in operation for determining rates of remuneration, promote
and, in so far as is consistent with such methods, ensure the
application to all workers of the principle of equal a) the territories in respect of which the Member concerned
remuneration for men and women workers for work of equal undertakes that the provisions of the Convention shall be
value. applied without modification;

2. This principle may be applied by means of-- 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 said modifications;
(a) national laws or regulations;

c) the territories in respect of which the Convention is


(b) legally established or recognised machinery for wage
inapplicable and in such cases the grounds on which it is
determination;
inapplicable;

(c) collective agreements between employers and workers;


d) the territories in respect of which it reserves its decision
or
pending further consideration of the position.

(d) a combination of these various means.


2. The undertakings referred to in subparagraphs (a) and (b)
of paragraph 1 of this Article shall be deemed to be an
Article 3 integral part of the ratification and shall have the force of
ratification.
1. Where such action will assist in giving effect to the
provisions of this Convention measures shall be taken to 3. Any Member may at any time by a subsequent declaration
promote objective appraisal of jobs on the basis of the work cancel in whole or in part any reservation made in its original
to be performed. declaration in virtue of subparagraph (b), (c) or (d) of
paragraph 1 of this Article.
2. The methods to be followed in this appraisal may be
decided upon by the authorities responsible for the 4. Any Member may, at any time at which the Convention is
determination of rates of remuneration, or, where such rates subject to denunciation in accordance with the provisions of
are determined by collective agreements, by the partes Article 9, communicate to the Director-General a declaration
thereto. modifying in any other respect the terms of any former
declaration and stating the present position in respect of
3. Differential rates between workers which correspond, such territories as it may specify.
without regard to sex, to differences, as determined by such
objective appraisal, in the work to be performed shall not be Article 8
considered as being contrary to the principle of equal
remuneration for men and women workers for work of equal
1. Declarations communicated to the Director-General of the
value.
International Labour Office in accordance with paragraph 4
or 5 of Article 35 of the Constitution of the International
Article 4 Labour Organisation shall indicate whether the provisions of
the Convention will be applied in the territory concerned
Each Member shall co-operate as appropriate with the without modification or subject to modifications; when the
employers' and workers' organisations concerned for the declaration indicates that the provisions of the Convention
purpose of giving effect to the provisions of this Convention. will be applied subject to modifications, it shall give details
of the said modifications.

Article 5
2. The Member, Members or international authority
concerned may at any time by a subsequent declaration
The formal ratifications of this Convention shall be renounce in whole or in part the right to have recourse to
communicated to the Director-General of the International any modification indicated in any former declaration.
Labour Office for registration.
3. The Member, Members or international authority
Article 6 concerned may, at any time at which this Convention is
subject to denunciation in accordance with the provisions of
1. This Convention shall be binding only upon those Article 9, communicate to the Director-General a declaration
Members of the International Labour Organisation whose modifying in any other respect the terms of any former
ratifications have been registered with the Director-General. declaration and stating the present position in respect of the
application of the Convention.

2. It shall come into force twelve months after the date on


which the ratifications of two Members have been registered Article 9
with the Director-General.
1. A Member which has ratified this Convention may
3. Thereafter, this Convention shall come into force for any denounce it after the expiration of ten years from the date
Member twelve months after the date on which its on which the Convention first comes into force, by an act
ratification has been registered. communicated to the Director-General of the International
Labour Office for registration. Such denunciation shall not
take effect until one year after the date on which it is
Article 7 registered.
Duman / Labor I / Prof. Battad / Page 123
2. Each Member which has ratified this Convention and Convention concerning Discrimination in Respect of
which does not, within the year following the expiration of Employment and Occupation (Note: Date of coming into
the period of ten years mentioned in the preceding force: 15:06:1960.)
paragraph, exercise the right of denunciation provided for in Convention:C111
this Article, will be bound for another period of ten years Place:Geneva
and, thereafter, may denounce this Convention at the Session of the Conference:42
expiration of each period of ten years under the terms Date of adoption:25:06:1958
provided for in this Article. Subject classification: Non-discrimination (Employment and
Occupation)
Subject classification: Women
Article 10
Subject: Eq uali ty of O ppo rt un it y a nd T reat men t

1. The Director-General of the International Labour Office


shall notify all Members of the International Labour
Organisation of the registration of all ratifications, The General Conference of the International Labour
declarations and denunciations communicated to him by the Organisation,
Members of the Organisation.
Having been convened at Geneva by the Governing Body of
2. When notifying the Members of the Organisation of the the International Labour Office, and having met in its Forty-
registration of the second ratification communicated to him, second Session on 4 June 1958, and
the Director-General shall draw the attention of the Members
of the Organisation to the date upon which the Convention
Having decided upon the adoption of certain proposals with
will come into force.
regard to discrimination in the field of employment and
occupation, which is the fourth item on the agenda of the
Article 11 session, and

The Director-General of the International Labour Office shall Having determined that these proposals shall take the form
communicate to the Secretary-General of the United Nations of an international Convention, and
for registration in accordance with Article 102 of the Charter
of the United Nations full particulars of all ratifications,
Considering that the Declaration of Philadelphia affirms that
declarations and acts of denunciation registered by him in
all human beings, irrespective of race, creed or sex, have the
accordance with the provisions of the preceding articles.
right to pursue both their material well-being and their
spiritual development in conditions of freedom and dignity,
Article 12 of economic security and equal opportunity, and

At such times as may consider necessary the Governing Considering further that discrimination constitutes a violation
Body of the International Labour Office shall present to the of rights enunciated by the Universal Declaration of Human
General Conference a report on the working of this Rights,
Convention and shall examine the desirability of placing on
the agenda of the Conference the question of its revision in
adopts this twenty-fifth day of June of the year one
whole or in part.
thousand nine hundred and fifty-eight the following
Convention, which may be cited as the Discrimination
Article 13 (Employment and Occupation) Convention, 1958:

1. Should the Conference adopt a new Convention revising Article 1


this Convention in whole or in part, then, unless the new
Convention otherwise provides--
1. For the purpose of this Convention the term
dis cr imin at ion includes--
a) the ratification by a Member of the new revising
Convention shall ipso jure involve the immediate
(a) any distinction, exclusion or preference made on the
denunciation of this Convention, notwithstanding the
basis of race, colour, sex, religion, political opinion, national
provisions of Article 9 above, if and when the new revising
extraction or social origin, which has the effect of nullifying
Convention shall have come into force;
or impairing equality of opportunity or treatment in
employment or occupation;
b) as from the date when the new revising Convention
comes into force this Convention shall cease to be open to
(b) such other distinction, exclusion or preference which has
ratification by the Members.
the effect of nullifying or impairing equality of opportunity or
treatment in employment or occupation as may be
2. This Convention shall in any case remain in force in its determined by the Member concerned after consultation
actual form and content for those Members which have with representative employers' and workers' organisations,
ratified it but have not ratified the revising Convention. where such exist, and with other appropriate bodies.

2. Any distinction, exclusion or preference in respect of a


particular job based on the inherent requirements thereof
shall not be deemed to be discrimination.
Article 14

3. For the purpose of this Convention the terms


The English and French versions of the text of this
empl oym en t and occ upa tio n include access to vocational
Convention are equally authoritative.
training, access to employment and to particular
occupations, and terms and conditions of employment.
C1 11 Di sc rimi na tio n ( Emp loy men t an d O cc upa tion )
Con ven tio n, 1 958
Duman / Labor I / Prof. Battad / Page 124
Article 2 Article 7

Each Member for which this Convention is in force The formal ratifications of this Convention shall be
undertakes to declare and pursue a national policy designed communicated to the Director-General of the International
to promote, by methods appropriate to national conditions Labour Office for registration.
and practice, equality of opportunity and treatment in
respect of employment and occupation, with a view to
Article 8
eliminating any discrimination in respect thereof.

1. This Convention shall be binding only upon those


Article 3
Members of the International Labour Organisation whose
ratifications have been registered with the Director-General.
Each Member for which this Convention is in force
undertakes, by methods appropriate to national conditions
2. It shall come into force twelve months after the date on
and practice--
which the ratifications of two Members have been registered
with the Director-General.
(a) to seek the co-operation of employers' and workers'
organisations and other appropriate bodies in promoting the
3. Thereafter, this Convention shall come into force for any
acceptance and observance of this policy;
Member twelve months after the date on which its
ratification has been registered.
(b) to enact such legislation and to promote such
educational programmes as may be calculated to secure the
Article 9
acceptance and observance of the policy;

1. A Member which has ratified this Convention may


(c) to repeal any statutory provisions and modify any
denounce it after the expiration of ten years from the date
administrative instructions or practices which are
on which the Convention first comes into force, by an act
inconsistent with the policy;
communicated to the Director-General of the International
Labour Office for registration. Such denunciation shall not
(d) to pursue the policy in respect of employment under the take effect until one year after the date on which it is
direct control of a national authority; registered.

(e) to ensure observance of the policy in the activities of 2. Each Member which has ratified this Convention and
vocational guidance, vocational training and placement which does not, within the year following the expiration of
services under the direction of a national authority; the period of ten years mentioned in the preceding
paragraph, exercise the right of denunciation provided for in
this Article, will be bound for another period of ten years
(f) to indicate in its annual reports on the application of the
and, thereafter, may denounce this Convention at the
Convention the action taken in pursuance of the policy and
expiration of each period of ten years under the terms
the results secured by such action.
provided for in this Article.

Article 4
Article 10

Any measures affecting an individual who is justifiably


1. The Director-General of the International Labour Office
suspected of, or engaged in, activities prejudicial to the
shall notify all Members of the International Labour
security of the State shall not be deemed to be
Organisation of the registration of all ratifications and
discrimination, provided that the individual concerned shall
denunciations communicated to him by the Members of the
have the right to appeal to a competent body established in
Organisation.
accordance with national practice.

2. When notifying the Members of the Organisation of the


Article 5
registration of the second ratification communicated to him,
the Director-General shall draw the attention of the Members
1. Special measures of protection or assistance provided for of the Organisation to the date upon which the Convention
in other Conventions or Recommendations adopted by the will come into force.
International Labour Conference shall not be deemed to be
discrimination.
Article 11

2. Any Member may, after consultation with representative


The Director-General of the International Labour Office shall
employers' and workers' organisations, where such exist,
communicate to the Secretary-General of the United Nations
determine that other special measures designed to meet the
for registration in accordance with Article 102 of the Charter
particular requirements of persons who, for reasons such as
of the United Nations full particulars of all ratifications and
sex, age, disablement, family responsibilities or social or
acts of denunciation registered by him in accordance with
cultural status, are generally recognised to require special
the provisions of the preceding Articles.
protection or assistance, shall not be deemed to be
discrimination.
Article 12
Article 6
At such times as it may consider necessary the Governing
Body of the International Labour Office shall present to the
Each Member which ratifies this Convention undertakes to
General Conference a report on the working of this
apply it to non-metropolitan territories in accordance with
Convention and shall examine the desirability of placing on
the provisions of the Constitution of the International Labour
the agenda of the Conference the question of its revision in
Organisation.
whole or in part.
Duman / Labor I / Prof. Battad / Page 125
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 SCRA


2. This Convention shall in any case remain in force in its 596 (1997)
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.

b. Women under the Constitution, Art. II, Sec. 14; Art


d. Prohibited Acts
XIII, Sec 14
1) Night Work/Exception, Art. 130-131
Philippine Association of Service Exporters v. Drilon,
163 SCRA 386 (1988) ART. 130. Nightwork prohibition. - No woman, regardless of
age, shall be employed or permitted or suffered to work,
with or without compensation:

(a) In any industrial undertaking or branch thereof between


ten oclock at night and six oclock in the morning of the
following day; or

Duman / Labor I / Prof. Battad / Page 126


(b) In any commercial or non-industrial undertaking or 10) Stipulation Against Marriage, Art. 136
branch thereof, other than agricultural, between midnight
and six oclock in the morning of the following day; or
ART. 136. Stipulation against marriage. - It shall be unlawful
for an employer to require as a condition of employment or
(c) In any agricultural undertaking at nighttime unless she is continuation of employment that a woman employee shall
given a period of rest of not less than nine (9) consecutive not get married, or to stipulate expressly or tacitly that upon
hours. getting married, a woman employee shall be deemed
resigned or separated, or to actually dismiss, discharge,
discriminate or otherwise prejudice a woman employee
ART. 131. Exceptions. - The prohibitions prescribed by the
merely by reason of her marriage.
preceding Article shall not apply in any of the following
cases:
Duncan Association of Detailman PTGWO v. Glaxo
(a) In cases of actual or impending emergencies caused by Wellcome Philippines, Inc., 438 SCRA 343 (2004)
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 or undertaking; and

11) Discharge on Account of Pregnancy, Art. 137


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

ART. 137. Prohibited acts. - (a) It shall be unlawful for any


employer:
9) Discrimination, Art. 135
(1) To deny any woman employee the benefits provided for
ART. 135. Discrimination prohibited. - It shall be unlawful for in this Chapter or to discharge any woman employed by him
any employer to discriminate against any woman employee for the purpose of preventing her from enjoying any of the
with respect to terms and conditions of employment solely benefits provided under this Code.
on account of her sex.
(2) To discharge such woman on account of her pregnancy,
The following are acts of discrimination: or while on leave or in confinement due to her pregnancy;

(a) Payment of a lesser compensation, including wage, (3) To discharge or refuse the admission of such woman
salary or other form of remuneration and fringe benefits, to upon returning to her work for fear that she may again be
a female employees as against a male employee, for work of pregnant.
equal value; and

(b) Favoring a male employee over a female employee with


respect to promotion, training opportunities, study and
scholarship grants solely on account of their sexes.
d. Facilities, Art. 132, 134
Criminal liability for the willful commission of any unlawful
act as provided in this Article or any violation of the rules
and regulations issued pursuant to Section 2 hereof shall be
ART. 132. Facilities for women. - The Secretary of Labor and
penalized as provided in Articles 288 and 289 of this Code:
Employment shall establish standards that will ensure the
Provided, That the institution of any criminal action under
safety and health of women employees. In appropriate
this provision shall not bar the aggrieved employee from
cases, he shall, by regulations, require any employer to:
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 (a) Provide seats proper for women and permit them to use
proceed independently of each other. (As amended by such seats when they are free from work and during working
Republic Act No. 6725, May 12, 1989).
Duman / Labor I / Prof. Battad / Page 127
hours, provided they can perform their duties in this position benefits advanced to the employee by the employer upon
without detriment to efficiency; receipt of satisfactory proof of such payment and legality
thereof; and
(b) To establish separate toilet rooms and lavatories for men
and women and provide at least a dressing room for "(f) That if an employee member should give birth or suffer
women; miscarriage without the required contributions having been
remitted for her by her employer to the SSS, or without the
latter having been previously notified by the employer of the
(c) To establish a nursery in a workplace for the benefit of
time of the pregnancy, the employer shall pay to the SSS
the women employees therein; and
damages equivalent to the benefits which said employee
member would otherwise have been entitled to.
(d) To determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and the like. g. Sexual Harassment (RA 7877)

ART. 134. Family planning services; incentives for family


planning. - (a) Establishments which are required by law to REPUBLIC ACT NO. 7877
maintain a clinic or infirmary shall provide free family
planning services to their employees which shall include, but
not be limited to, the application or use of contraceptive pills
AN ACT DECLARING SEXUAL HARASSMENT
and intrauterine devices. UNLAWFUL IN THE EMPLOYMENT, EDUACATION
OR TRAINING ENVIRONMENT, AND FOR OTHER
PURPOSES
(b) In coordination with other agencies of the government
engaged in the promotion of family planning, the
Department of Labor and Employment shall develop and Be it enacted by the Senate and House of
prescribe incentive bonus schemes to encourage family Representatives of the Philippines in Congress
planning among female workers in any establishment or assembled:
enterprise.
Section 1. Title. This Act shall be known as the
e. Special Women Workers, 138 "Anti-Sexual Harassment Act of 1995."

ART. 138. Classification of certain women workers . - Any Sec. 2. Declaration of Policy. The State shall
woman who is permitted or suffered to work, with or without value the dignity of every individual, enhance the
compensation, in any night club, cocktail lounge, massage development of it human resources, guarantee full
clinic, bar or similar establishments under the effective
respect for human rights, and uphold the dignity of
control or supervision of the employer for a substantial
workers, employees, applicants for employment,
period of time as determined by the Secretary of Labor and
Employment, shall be considered as an employee of such students or those undergoing training, instruction or
establishment for purposes of labor and social legislation. education. Towards this end, all forms of sexual
harassment in the employment, education or training
environment are hereby declared unlawful.
f. Maternity Leave, Social Security Law of 1997 (RA 1161,
as amended by RA 8282), Sec. 14-A, RA 828
Sec. 3. Work, Education or Training-related
Sexual Harassment Defined. Work, education or
"SEC. 14-A. Maternity Leave Benefit. - A female member
who has paid at least three (3) monthly contributions in the training-related sexual harassment is committed by an
twelve-month period immediately preceding the semester of employee, manager, supervisor, agent of the
her childbirth or miscarriage shall be paid a daily maternity employer, teacher, instructor, professor, coach,
benefit equivalent to one hundred percent (100%) of her trainor, or any other person who, having authority,
average daily salary credit for sixty (60) days or seventy- influence or moral ascendancy over another in a work
eight (78) days in case of caesarian delivery, subject to the or training or education environment, demands,
following conditions: requests or otherwise requires any sexual favor from
the other, regardless of whether the demand, request
"(a) That the employee shall have notified her employer of or requirement for submission is accepted by the
her pregnancy and the probable date of her childbirth, which object of said Act.
notice shall be transmitted to the SSS in accordance with the
rules and regulations it may provide; (a) In a work-related or employment
environment, sexual harassment is committed when:
"(b) The full payment shall be advanced by the employer
within thirty (30) days from the filing of the maternity leave
(1) The sexual favor is made as a condition
application;
in the hiring or in the employment, re-employment or
continued employment of said individual, or in
"(c) That payment of daily maternity benefits shall be a bar granting said individual favorable compensation,
to the recovery of sickness benefits provided by this Act for terms, conditions, promotions, or privileges; or the
the same period for which daily maternity benefits have refusal to grant the sexual favor results in limiting,
been received;
segregating or classifying the employee which in a
way would discriminate, deprive or diminish
"(d) That the maternity benefits provided under this section employment opportunities or otherwise adversely
shall be paid only for the first four (4) deliveries or affect said employee;
miscarriages;

"(e) That the SSS shall immediately reimburse the employer


of one hundred percent (100%) of the amount of maternity
Duman / Labor I / Prof. Battad / Page 128
(2) The above acts would impair the prevent incidents of sexual harassment. It shall also
employees rights or privileges under existing labor conduct the investigation of the alleged cases
laws; or constituting sexual harassment.

(3) The above acts would result in an In the case of a work-related environment, the
intimidating, hostile, or offensive environment for the committee shall be composed of at least one (1)
employee. representative each from the management, the union,
if any, the employees from the supervisory rank, and
(b) In an education or training environment, from the rank and file employees.
sexual harassment is committed:
In the case of the educational or training
(1) Against one who is under the care, institution, the committee shall be composed of at
custody or supervision of the offender; least one (1) representative from the administration,
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
offender; "The employer or head of office, educational or
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
granting of honors and scholarships, or the payment Sec. 5. Liability of the Employer, Head of Office,
of a stipend, allowance or other benefits, privileges, or Educational or Training Institution. The employer or
considerations; or head of office, educational training institution shall be
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 than Twenty thousand pesos (P20,000), or both such
for the resolution, settlement or prosecution of acts of fine and imprisonment at the discretion of the court.
sexual harassment. Towards this end, the employer or
head of office shall:
Any action arising from the violation of the
provision of this Act shall prescribe in three (3) years.
(a) Promulgate appropriate rules and
regulations in consultation with the jointly approved by
the employees or students or trainees, through their Sec. 8. Separability Clause If any portion or
duly designated representatives, prescribing the provision of this Act is declared void and
procedure for the investigation or sexual harassment unconstitutional, the remaining portions or provisions
cases and the administrative sanctions therefor. hereof shall not be affected by such declaration.

Administrative sanctions shall not be a bar to Sec.9. Repealing Clause. All laws, decrees,
prosecution in the proper courts for unlawful acts of orders, rules and regulations, other issuances, or
sexual harassment. parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.
The said rules and regulations issued pursuant
to this section (a) shall include, among others, Sec.10. Effectivity Clause. This Act shall take
guidelines on proper decorum in the workplace and effect fifteen (15) days after its complete publication in
educational or training institutions. at least two (2) national newspaper of general
circulation.
(c) Create a committee on decorum and
Libres v. NLRC, 307 SCRA 675 (1999)
investigation of cases on sexual harassment. The
committee shall conduct meetings, as the case may
be, with other officers and employees, teachers,
instructors, professors, coaches, trainors and
students or trainees to increase understanding and

Duman / Labor I / Prof. Battad / Page 129


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
Philippine Aelous Automotive United Corp. v. NLRC, works directly under the sole responsibility of his parents or
331SCRA 237 (2000) guardian, and his employment does not in any way interfere
with his 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.

ART. 140. Prohibition against child discrimination. - No


employer shall discriminate against any person in respect to
terms and conditions of employment on account of his age.

SECTION 2. Employable age. Children below fifteen (15)


years of age may be allowed to work under the direct
responsibility of their parents or guardians in any non-
hazardous undertaking where the work will not in any way
interfere with their schooling. In such cases, the children
shall not be considered as employees of the employers or
their parents or guardians.

SECTION 3. Eligibility for employment. Any person of


either sex, between 15 and 18 years of age, may be
employed in any non-hazardous work. No employer shall
discriminate against such person in regard to terms and
conditions of employment on account of his age.

For purposes of this Rule, a non-hazardous work or


undertaking shall mean any work or activity in which the
Renato S. Gatbonton v. NLRC, et al., 479 SCRA 416 employee is not exposed to any risk which constitutes an
imminent danger to his safety and health. The Secretary of
(2006)
Labor and Employment shall from time to time publish a list
of hazardous work and activities in which persons 18 years
of age and below cannot be employed.

Republic of the Philippines


Congress of the Philippines
Metro Manila

Duman / Labor I / Prof. Battad / Page 130


Twelfth Congress "Sec. 2. Employment of Children - Children below
Third Regular Session fifteen (15) years of age shall not be employed
except:

"1) When a child works directly under the sole


Begun and held in Metro Manila, on Monday, the responsibility of his/her parents or legal guardian and
twenty-eighth day of July, two thousand three. where only members of his/her family are employed:
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
AN ACT PROVIDING FOR THE ELIMINATION OF the said child with the prescribed primary and/or
THE WORST FORMS OF CHILD LABOR AND secondary education; or
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
Be it enacted by the Senate and the House of and Employment: Provided, further, That the following
Representatives of the Philippines in Congress requirements in all instances are strictly complied
assembled: with:

Section 1. Section 2 of Republic Act No. 7610, as "(a) The employer shall ensure the protection, health,
amended, otherwise known as the "Special Protection safety, morals and normal development of the child;
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
"Sec. 2. Declaration of State Policy and Principles. - It the duration and arrangement of working time; and
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.
provide sanctions for their commission and carry out a
program for prevention and deterrence of and crisis
intervention in situations of child abuse, exploitation "In the above-exceptional cases where any such child
and discrimination. The State shall intervene on may be employed, the employer shall first secure,
behalf of the child when the parent, guardian, teacher before engaging such child, a work permit from the
or person having care or custody of the child fails or is Department of Labor and Employment which shall
unable to protect the child against abuse, exploitation ensure observance of the above requirements.
and discrimination or when such acts against the child
are committed by the said parent, guardian, teacher "For purposes of this Article, the term "child" shall
or person having care and custody of the same. apply to all persons under eighteen (18) years of
age."
"It shall be the policy of the State to protect and
rehabilitate children gravely threatened or Section 3. The same Act, as amended, is hereby
endangered by circumstances which affect or will further amended by adding new sections to be
affect their survival and normal development and over denominated as Sections 12-A, 12-B, 12-C, and 12-D
which they have no control. to read as follows:

"The best interests of children shall be the paramount "Sec. 2-A. Hours of Work of a Working Child. - Under
consideration in all actions concerning them, whether the exceptions provided in Section 12 of this Act, as
undertaken by public or private social welfare amended:
institutions, courts of law, administrative authorities,
and legislative bodies, consistent with the principle of "(1) A child below fifteen (15) years of age may be
First Call for Children as enunciated in the United allowed to work for not more than twenty (20) hours a
Nations Convention on the Rights of the Child. Every week: Provided, That the work shall not be more than
effort shall be exerted to promote the welfare of four (4) hours at any given day;
children and enhance their opportunities for a useful
and happy life."
"(2) A child fifteen (15) years of age but below
eighteen (18) shall not be allowed to work for more
Section 2. Section 12 of the same Act, as amended, than eight (8) hours a day, and in no case beyond
is hereby further amended to read as follows: forty (40) hours a week;

Duman / Labor I / Prof. Battad / Page 131


"(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
control over the trust fund upon reaching the age of Section 4. Section 13 of the same Act is hereby
majority. amended to read as follows:

"Sec. 12-D. Prohibition Against Worst Forms of Child "Sec. 13. Access to Education and Training for
Labor. - No child shall be engaged in the worst forms Working Children - "a) No child shall be deprived of
of child labor. The phrase "worst forms of child labor" formal or non-formal education. In all cases of
shall refer to any of the following: employment allowed in this Act, the employer shall
provide a working child with access to at least primary
"(1) All forms of slavery, as defined under the "Anti- and secondary education.
trafficking in Persons Act of 2003", or practices similar
to slavery such as sale and trafficking of children, "b) To ensure and guarantee the access of the
debt bondage and serfdom and forced or compulsory working child to education and training, the
labor, including recruitment of children for use in Department of Education (DEPED) shall: (1)
armed conflict; or formulate, promulgate, and implement relevant and
effective course designs and educational programs;
"(2) The use, procuring, offering or exposing of a child (2) conduct the necessary training for the
for prostitution, for the production of pornography or implementation of the appropriate curriculum for the
for pornographic performances; or purpose; (3) ensure the availability of the needed
educational facilities and materials; and (4) conduct
continuing research and development program for the
"(3) The use, procuring or offering of a child for illegal necessary and relevant alternative education of the
or illicit activities, including the production and working child.
trafficking of dangerous drugs and volatile substances
prohibited under existing laws; or
"c) The DEPED shall promulgate a course design
under its non-formal education program aimed at
"(4) Work which, by its nature or the circumstances in promoting the intellectual, moral and vocational
which it is carried out, is hazardous or likely to be efficiency of working children who have not
harmful to the health, safety or morals of children, undergone or finished elementary or secondary
such that it: education. Such course design shall integrate the
learning process deemed most effective under given
circumstances."

Duman / Labor I / Prof. Battad / Page 132


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
"Sec. 14. Prohibition on the Employment of Children more than three (3) times.
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.
Section 6. Section 16 of the same Act, is hereby He/she shall likewise order the immediate closure of
amended to read as follows: such firm or establishment if:

"Sec. 16. Penal Provisions - "(1) The violation of any provision of this Act has
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
by imprisonment of six (6) months and one (1) day to "(2) Such firm or establishment is engaged or
six (6) years or a fine of not less than Fifty thousand employed in prostitution or in obscene or lewd shows.
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 this Act, and for the programs and projects that will
with the penalty provided for by R. A. 9208 otherwise prevent acts of child labor."
known as the "Anti-trafficking in Persons Act of 2003":
Provided, That Such penalty shall be imposed in its Section 8. Section 27 of the same Act is hereby
maximum period. amended to read as follows:

"d) Any person who violates Section 12-D (3) shall be "Sec. 27. Who May File a Complaint - Complaints on
prosecuted and penalized in accordance with R.A. cases of unlawful acts committed against children as
9165, otherwise known as the "Comprehensive enumerated herein may be filed by the following:
Dangerous Drugs Act of 2002"; Provided, That such
penalty shall be imposed in its maximum period.
"(a) Offended party;
"e) If a corporation commits any of the violations
aforecited, the board of directors/trustees and officers, "(b) Parents or guardians;
which include the president, treasurer and secretary
of the said corporation who participated in or "(c) Ascendant or collateral relative within the third
knowingly allowed the violation, shall be penalized degree of consanguinity;
accordingly as provided for under this Section.
"(d) Officer, social worker or representative of a
"f) Parents, biological or by legal fiction, and legal licensed child-caring institution;
guardians found to be violating Sections 12, 12-A, 12-
B and 12-C of this Act shall pay a fine of not less than "(e) Officer or social worker of the Department of
Ten thousand pesos (P10,000.00) but not more than Social Welfare and Development;
One hundred thousand pesos (P100,000.00), or be
required to render community service for not less than
thirty (30) days but not more than one (1) year, or "(f) Barangay chairman of the place where the
both such fine and community service at the violation occurred, where the child is residing or
discretion of the court: Provided, That the maximum employed; or
length of community service shall be imposed on
parents or legal guardians who have violated the "(g) At least three (3) concerned, responsible citizens
provisions of this Act three (3) times; Provided, where the violation occurred."
further, That in addition to the community service, the
penalty of imprisonment of thirty (30) days but not

Duman / Labor I / Prof. Battad / Page 133


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
"The preliminary investigation of cases filed under this Protection of Children and Young Persons
Act shall be terminated within a period of thirty (30)
days from the date of filing.
The General Conference of the International Labour
"If the preliminary investigation establishes a prima Organization,
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
victim of child labor institutes a separate civil action Minimum Age for Admission to Employment, 1973,
for the recovery of civil damages, he/she shall be which remain fundamental instruments on child
exempt from payment of filing fees. labour, and

"Sec. 16-C. Access to Immediate Legal, Medical and Considering that the effective elimination of the worst
Psycho-Social Services - The working child shall have forms of child labour requires immediate and
the right to free legal, medical and psycho-social comprehensive action, taking into account the
services to be provided by the State." importance of free basic education and the need to
remove the children concerned from all such work
Section 10. Implementing Rules and Regulations - and to provide for their rehabilitation and social
The Secretary of Labor and Employment, in integration while addressing the needs of their
coordination with the Committees on Labor and families, and
Employment of both Houses of Congress, shall issue
the necessary Implementing Rules and Regulations Recalling the resolution concerning the elimination of
(IRR) to effectively implement the provisions of this child labour adopted by the International Labour
Act, in consultation with concerned public and private Conference at its 83rd Session in 1996, and
sectors, within sixty (60) days from the effectivity of
this Act. Recognizing that child labour is to a great extent
caused by poverty and that the long-term solution lies
Such rules and regulations shall take effect upon their in sustained economic growth leading to social
publication in two (2) national newspapers of general progress, in particular poverty alleviation and
circulation. universal education, and

Section 11. Separability Clause. - If any provision of Recalling the Convention on the Rights of the Child
this Act is declared invalid or unconstitutional, the adopted by the United Nations General Assembly on
validity of the remaining provisions hereof shall 20 November 1989, and
remain in full force and effect.
Recalling the ILO Declaration on Fundamental
Section 12. Repealing Clause. - All laws, decrees, or Principles and Rights at Work and its Follow-up,
rules inconsistent with the provisions of this Act are adopted by the International Labour Conference at its
hereby repealed or modified accordingly. 86th Session in 1998, and

Section 13. Effectivity. - This Act shall take effect Recalling that some of the worst forms of child labour
fifteen (15) days from the date of its complete are covered by other international instruments, in
publication in the Official Gazette or in at least two (2) particular the Forced Labour Convention, 1930, and
national newspapers of general circulation. the United Nations Supplementary Convention on the
Abolition of Slavery, the Slave Trade, and Institutions
and Practices Similar to Slavery, 1956, and

Duman / Labor I / Prof. Battad / Page 134


Having decided upon the adoption of certain with the organizations of employers and workers
proposals with regard to child labour, which is the concerned.
fourth item on the agenda of the session, and
Article 5
Having determined that these proposals shall take the
form of an international Convention; Each Member shall, after consultation with employers'
and workers' organizations, establish or designate
adopts this seventeenth day of June of the year one appropriate mechanisms to monitor the
thousand nine hundred and ninety-nine the following implementation of the provisions giving effect to this
Convention, which may be cited as the Worst Forms Convention.
of Child Labour Convention, 1999.
Article 6
Article 1
1. Each Member shall design and implement
Each Member which ratifies this Convention shall take programmes of action to eliminate as a priority the
immediate and effective measures to secure the worst forms of child labour.
prohibition and elimination of the worst forms of child
labour as a matter of urgency. 2. Such programmes of action shall be designed and
implemented in consultation with relevant government
Article 2 institutions and employers' and workers'
organizations, taking into consideration the views of
For the purposes of this Convention, the term child other concerned groups as appropriate.
shall apply to all persons under the age of 18.
Article 7
Article 3
1. Each Member shall take all necessary measures to
For the purposes of this Convention, the term the ensure the effective implementation and enforcement
worst forms of child labour comprises: of the provisions giving effect to this Convention
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
bondage and serfdom and forced or compulsory 2. Each Member shall, taking into account the
labour, including forced or compulsory recruitment of importance of education in eliminating child labour,
children for use in armed conflict; take effective and time-bound measures to:

(b) the use, procuring or offering of a child for (a) prevent the engagement of children in the worst
prostitution, for the production of pornography or for forms of child labour;
pornographic performances;
(b) provide the necessary and appropriate direct
(c) the use, procuring or offering of a child for illicit assistance for the removal of children from the worst
activities, in particular for the production and forms of child labour and for their rehabilitation and
trafficking of drugs as defined in the relevant social integration;
international treaties;
(c) ensure access to free basic education, and,
(d) work which, by its nature or the circumstances in wherever possible and appropriate, vocational
which it is carried out, is likely to harm the health, training, for all children removed from the worst forms
safety or morals of children. of child labour;

Article 4 (d) identify and reach out to children at special risk;


and
1. The types of work referred to under Article 3(d)
shall be determined by national laws or regulations or (e) take account of the special situation of girls.
by the competent authority, after consultation with the
organizations of employers and workers concerned, 3. Each Member shall designate the competent
taking into consideration relevant international authority responsible for the implementation of the
standards, in particular Paragraphs 3 and 4 of the provisions giving effect to this Convention.
Worst Forms of Child Labour Recommendation, 1999.
Article 8
2. The competent authority, after consultation with the
organizations of employers and workers concerned, Members shall take appropriate steps to assist one
shall identify where the types of work so determined another in giving effect to the provisions of this
exist. Convention through enhanced international
cooperation and/or assistance including support for
3. The list of the types of work determined under social and economic development, poverty
paragraph 1 of this Article shall be periodically eradication programmes and universal education.
examined and revised as necessary, in consultation
Duman / Labor I / Prof. Battad / Page 135
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
part.
Article 10
Article 15
1. This Convention shall be binding only upon those
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
provisions of Article 11 above, if and when the new
3. Thereafter, this Convention shall come into force revising Convention shall have come into force;
for any Member 12 months after the date on which its
ratification has been registered.
(b) as from the date when the new revising
Convention comes into force, this Convention shall
Article 11 cease to be open to ratification by the Members.

1. A Member which has ratified this Convention may 2. This Convention shall in any case remain in force in
denounce it after the expiration of ten years from the its actual form and content for those Members which
date on which the Convention first comes into force, have ratified it but have not ratified the revising
by an act communicated to the Director-General of Convention.
the International Labour Office for registration. Such
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 R190 Worst Forms of Child Labour
denunciation provided for in this Article, will be bound Recommendation, 1999
for another period of ten years and, thereafter, may
denounce this Convention at the expiration of each Recommendation concerning the prohibition and
period of ten years under the terms provided for in immediate action for the elimination of the worst forms
this Article. of child labour
Place:Geneva
Article 12 Session of the Conference:87
Date of adoption:17:06:1999
1. The Director-General of the International Labour Subject classification: Elimination of Child Labour
Office shall notify all Members of the International Subject classification: Children and Young Persons
Labour Organization of the registration of all Subject: Elimination of Child Labour and
ratifications and acts of denunciation communicated Protection of Children and Young Persons
by the Members of the Organization.

2. When notifying the Members of the Organization of The General Conference of the International Labour
the registration of the second ratification, the Director- Organization,
General shall draw the attention of the Members of
the Organization to the date upon which the Having been convened at Geneva by the Governing
Convention shall come into force. Body of the International Labour Office, and having
met in its Eighty-seventh Session on 1 June 1999,
Article 13 and

The Director-General of the International Labour Having adopted the Worst Forms of Child Labour
Office shall communicate to the Secretary-General of Convention, 1999, and
the United Nations, for registration in accordance with
article 102 of the Charter of the United Nations, full Having decided upon the adoption of certain
particulars of all ratifications and acts of denunciation proposals with regard to child labour, which is the
registered by the Director-General in accordance with fourth item on the agenda of the session, and
the provisions of the preceding Articles.

Article 14

Duman / Labor I / Prof. Battad / Page 136


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.

(c) giving special attention to: (2) As far as possible, such information and statistical
data should include data disaggregated by sex, age
(i) younger children; group, occupation, branch of economic activity, status
in employment, school attendance and geographical
location. The importance of an effective system of
(ii) the girl child; birth registration, including the issuing of birth
certificates, should be taken into account.
(iii) the problem of hidden work situations, in which
girls are at special risk; (3) Relevant data concerning violations of national
provisions for the prohibition and elimination of the
(iv) other groups of children with special vulnerabilities worst forms of child labour should be compiled and
or needs; kept up to date.

(d) identifying, reaching out to and working with 6. The compilation and processing of the information
communities where children are at special risk; and data referred to in Paragraph 5 above should be
carried out with due regard for the right to privacy.
(e) informing, sensitizing and mobilizing public opinion
and concerned groups, including children and their 7. The information compiled under Paragraph 5 above
families. should be communicated to the International Labour
Office on a regular basis.
II. Hazardous work
8. Members should establish or designate appropriate
3. In determining the types of work referred to under national mechanisms to monitor the implementation of
Article 3(d) of the Convention, and in identifying national provisions for the prohibition and elimination
where they exist, consideration should be given, inter of the worst forms of child labour, after consultation
alia, to: with employers' and workers' organizations.

(a) work which exposes children to physical, 9. Members should ensure that the competent
psychological or sexual abuse; authorities which have responsibilities for

Duman / Labor I / Prof. Battad / Page 137


implementing national provisions for the prohibition (a) informing, sensitizing and mobilizing the general
and elimination of the worst forms of child labour public, including national and local political leaders,
cooperate with each other and coordinate their parliamentarians and the judiciary;
activities.
(b) involving and training employers' and workers'
10. National laws or regulations or the competent organizations and civic organizations;
authority should determine the persons to be held
responsible in the event of non-compliance with (c) providing appropriate training for the government
national provisions for the prohibition and elimination officials concerned, especially inspectors and law
of the worst forms of child labour. enforcement officials, and for other relevant
professionals;
11. Members should, in so far as it is compatible with
national law, cooperate with international efforts (d) providing for the prosecution in their own country
aimed at the prohibition and elimination of the worst of the Member's nationals who commit offences under
forms of child labour as a matter of urgency by: its national provisions for the prohibition and
immediate elimination of the worst forms of child
(a) gathering and exchanging information concerning labour even when these offences are committed in
criminal offences, including those involving another country;
international networks;
(e) simplifying legal and administrative procedures
(b) detecting and prosecuting those involved in the and ensuring that they are appropriate and prompt;
sale and trafficking of children, or in the use,
procuring or offering of children for illicit activities, for (f) encouraging the development of policies by
prostitution, for the production of pornography or for undertakings to promote the aims of the Convention;
pornographic performances;
(g) monitoring and giving publicity to best practices on
(c) registering perpetrators of such offences. the elimination of child labour;

12. Members should provide that the following worst (h) giving publicity to legal or other provisions on child
forms of child labour are criminal offences: labour in the different languages or dialects;

(a) all forms of slavery or practices similar to slavery, (i) establishing special complaints procedures and
such as the sale and trafficking of children, debt making provisions to protect from discrimination and
bondage and serfdom and forced or compulsory reprisals those who legitimately expose violations of
labour, including forced or compulsory recruitment of the provisions of the Convention, as well as
children for use in armed conflict; establishing helplines or points of contact and
ombudspersons;
(b) the use, procuring or offering of a child for
prostitution, for the production of pornography or for (j) adopting appropriate measures to improve the
pornographic performances; and educational infrastructure and the training of teachers
to meet the needs of boys and girls;
(c) the use, procuring or offering of a child for illicit
activities, in particular for the production and (k) as far as possible, taking into account in national
trafficking of drugs as defined in the relevant programmes of action:
international treaties, or for activities which involve the
unlawful carrying or use of firearms or other weapons.
(i) the need for job creation and vocational training for
the parents and adults in the families of children
13. Members should ensure that penalties including, working in the conditions covered by the Convention;
where appropriate, criminal penalties are applied for and
violations of the national provisions for the prohibition
and elimination of any type of work referred to in
Article 3(d) of the Convention. (ii) the need for sensitizing parents to the problem of
children working in such conditions.
14. Members should also provide as a matter of
urgency for other criminal, civil or administrative 16. Enhanced international cooperation and/or
remedies, where appropriate, to ensure the effective assistance among Members for the prohibition and
enforcement of national provisions for the prohibition effective elimination of the worst forms of child labour
and elimination of the worst forms of child labour, should complement national efforts and may, as
such as special supervision of enterprises which have appropriate, be developed and implemented in
used the worst forms of child labour, and, in cases of consultation with employers' and workers'
persistent violation, consideration of temporary or organizations. Such international cooperation and/or
permanent revoking of permits to operate. assistance should include:

15. Other measures aimed at the prohibition and (a) mobilizing resources for national or international
elimination of the worst forms of child labour might programmes;
include the following:
(b) mutual legal assistance;

Duman / Labor I / Prof. Battad / Page 138


(c) technical assistance including the exchange of (c) The employer shall formulate and
information; implement, subject to the approval and
supervision of competent authorities, a
(d) support for social and economic development, continuing program for training and skill
poverty eradication programmes and universal acquisition of the child.
education.
In the above exceptional cases where any such child
may be employed, the employer shall first secure,
a. Minors under the Constitution, Art. II, Sec. 13 before engaging such child, a work permit from the
Department of Labor and Employment which shall
Section 13. The State recognizes the vital role of the ensure observance of the above requirement.
youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social
well-being. It shall inculcate in the youth patriotism The Department of Labor Employment shall
and nationalism, and encourage their involvement in promulgate rules and regulations necessary for the
public and civic affairs. effective implementation of this Section.

b. Coverage, RA 9231, Sec. 2, par. 3 on Sec. 12; Book III, Section 13. Non-formal Education for Working
Rule XII, Sec. 1 Children. - The Department of Education, Culture and
Sports shall promulgate a course design under its
(See Above) non-formal education program aimed at promoting the
intellectual, moral and vocational efficiency of working
c. Employment of Children, Art. 139; RA 7610, Sec. 12- children who have not undergone or finished
16; DO LE Memo Ci rc ular No . 2, S 199 8 Re; elementary or secondary education. Such course
Ha za rdo us a nd Non-H az ardo us Es tabli sh men ts design shall integrate the learning process deemed
most effective under given circumstances.
RA 7610
Section 14. Prohibition on the Employment of
ARTICLE VIII Children in Certain Advertisements. - No person shall
Working Children employ child models in all commercials or
advertisements promoting alcoholic beverages,
Section 12. Employment of Children. - Children intoxicating drinks, tobacco and its byproducts and
below fifteen (15) years of age may be employed violence.
except:
Section 15. Duty of Employer. - Every employer shall
(1) When a child works directly under the comply with the duties provided for in Articles 108 and
sole responsibility of his parents or legal 109 of Presidential Decree No. 603.
guardian and where only members of the
employer's family are employed: Provided, Section 16. Penalties. - Any person who shall violate
however, That his employment neither any provision of this Article shall suffer the penalty of
endangers his life, safety and health and a fine of not less than One thousand pesos (P1,000)
morals, nor impairs his normal development: but not more than Ten thousand pesos (P10,000) or
Provided, further, That the parent or legal imprisonment of not less than three (3) months but
guardian shall provide the said minor child not more than three (3) years, or both at the discretion
with the prescribed primary and/or of the court; Provided, That, in case of repeated
secondary education; or violations of the provisions of this Article, the
offender's license to operate shall be revoked.
(2) When a child's employment or
participation in public & entertainment or
information through cinema, theater, radio or d. Hours of Work, RA 9231, Sec. 3 on Sec. 12-a
television is essential: Provided, The
employment contract concluded by the
child's parent or guardian, with the express