Preliminary Title: Memory Aid in Labor Law

SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW

Any form of reproduction of this copy is strictly prohibited!!!
PRELIMINARY TITLE
CHAPTER I
GENERAL PROVISIONS
ART 1. NAME OF DECREE
LABOR LEGISLATION - Consists of
statutes,
regulations
and
jurisprudence
governing the relations between capital and
labor, by providing for certain standards of terms
and conditions of employment or providing a
legal framework within which these terms and
conditions and the employment relationship may
be negotiated, adjusted and administered. It is
divided into labor standards and labor relations.
LABOR STANDARDS - Are the minimum
requirements prescribed by existing laws,
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
other monetary and welfare benefits,
including occupational safety, and health
standards.
LABOR RELATIONS LAW - defines the
status, rights, and duties and the institutional
mechanisms that govern the individual and
collective interactions of employers, employees
or their representatives.
- The law which
seeks to stabilize the relation between employer
and employee, to forestall and thresh out their
differences through the encouragement of
collective bargaining and the settlement of labor
disputes through conciliation, mediation, and
arbitration.
7.Right to Participate in Policy &

Decision-Making Processes affecting
their rights and benefits as may be
provided by law
RELATED LAWS:
1. CIVIL CODE: see Arts. 1700, 1701and 1703
2. REVISED PENAL CODE: Art. 289
3. OTHERS: SSS Law, GSIS Law, Agrarian
Reform Law, the 13th month pay law, the
Magna Carta for Public Health Workers, etc.
RATIONALE :
- The raison d etre of labor laws is the POLICE
POWER of the State
ART 3. DECLARATION OF BASIC
POLICY
The State shall afford protection to labor,
promote full employment, ensure equal work
opportunities regardless of sex, age or creed,
and regulate the relations between workers and
employers. The State shall assure the right of
workers
to
self-organization,
collective
bargaining, security of tenure, and just and
humane conditions of work.
EMPLOYER - one who employs the

services of others; one for whom employees
work and who pays their wages or salaries.
EMPLOYEE - one who works for an

employer; a person working for salary or wages
ART. 2. DATE OF EFFECTIVITY
ART 4. CONSTRUCTION IN FAVOR

OF LABOR
The Labor Code took effect on November 1,

1974 (six months after its promulgation on May
1,1974)
CONSTRUCTION IN FAVOR OF
LABOR CLAUSE -this is with a view to apply
SEVEN (7) BASIC RIGHTS OF

WORKERS AS GUARANTEED BY
THE CONSTITUTION (OCESHLP):
the Code to the greater number of employees to

enable them to avail of the benefits under the
law (Abella vs. NLRC). The working mans
welfare should be the primordial consideration.
1. Right to Organize
2. Right to Conduct Collective Bargaining
or Negotiation with Management
3. Right to Engage in Peaceful Concerted
Activities including strike in accordance
with law
4. Right to Enjoy Security of Tenure
5.Right to Work Under Humane Conditions
6.Right to Receive a Living Wage
This rule is applicable if there is a doubt as

to the meaning of the legal or contractual
provision. If the provision is clear and
unambiguous, it must be applied in
accordance with its express terms.
These laws should be interpreted with a

view to the fact that they are remedial in
nature, they are enacted to better the lot
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW

Any form of reproduction of this copy is strictly prohibited!!!
and promote the welfare of the members of the

laboring class.
-
Reservation of essential attributes of

sovereign power is read into contracts
as a postulate of the legal order.
Courts
adopt
a
liberal
approach that favors the exercise of
labor rights. The mandate under Art. 4
is simply to resolve doubt, if any, in favor
of labor.
If there is no doubt in
implementing and interpreting the law,
labor will enjoy no built-in advantage
and the law will have to be applied as it
is.
ART 6. APPLICABILITY
AGRICULTURAL OR FARM WORKER one employed in an agricultural or farm
enterprise and assigned to perform tasks which
are directly related to the agricultural activities of
the employer, such as cultivation and tillage of
the soil, dairying, growing and harvesting of any
agricultural and horticultural commodities, the
raising of livestock or poultry, and any activities
performed by a farmer as an incident to or in
conjunction with such farming operations.
-
There may be in one employer both

agricultural as well as industrial workers.
PURPOSE of the provision: intended to

encourage workers to seek employment in
agricultural enterprises instead of migrating
to already overcrowded urban areas to find
work in industrial establishments
MANAGEMENT RIGHTS: (CPST)

C
P
S
T
Right to conduct business

Right to prescribe rules
Right to select employees
Right to transfer or discharge employees
MANAGEMENT PREROGATIVE
Except as limited by special laws, an
employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including:
HIRING,
WORK
ASSIGNMENTS,
WORKING METHODS, TIME PLACE AND
MANNER OF WORK, TOOLS TO BE USED,
PROCESSES
TO
BE
FOLLOWED,
SUPERVISION OF WORKERS, WORKING
REGULATIONS, TRANSFER OF EMPLOYEES,
WORK
SUPERVISION,
LAY-OFF
OF
WORKERS, AND DISCIPLINE, DISMISSAL
AND RECALL OF WORKERS. (HW5T2PLSD)
Thus, so long as management prerogatives

are exercised in good faith for
the
advancement
of
the
employers interest and not for
the purpose of defeating or
circumventing the rights of
employees under special law or
under valid agreements, it shall
be upheld.
ART 5. RULES AND REGULATIONS
- The rules and regulations issued by the DOLE
shall become effective 15 days after
announcement
of
their
adoption
in
newspapers of general circulation.
- The LC applies to all workers, whether

agricultural
or
non-agricultural,
including
employees in a government corporation
incorporated under the Corporation Code.
FARM
EMPLOYERFARM
WORKER
RELATIONSHI
P
- The lease is one
of labor with the
agricultural laborer
as the lessor of his
services and the
farm employer as
the lessee
- The agricultural
worker works for
the farm employer
and for his labor he
receives a salary or
wage, regardless of
whether the
employer makes a
profit.
TENANCY
RELATIONSHIP
- It is the landowner
who is the lessor
and the tenant the
lessee of
agricultural land
- The tenant derives

his income from the
agricultural produce
or harvest
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
Page 2 of 70
WORKER -any member of the labor force,

whether employed or unemployed
CHAPTER II
EMANCIPATION OF TENANTS
(Note: not included as per SC Memo)
ART 7-11
-
Share tenancy has been abolished

placing in its stead leasehold system.
Under Art. 8, the land covered by operation

land transfer must be private agricultural
land, tenanted, primarily devoted to rice
and/or corn, and more than seven
hectares in are.
Present retention limits:

-
5 hectares per landowner and 3 hectares

per child provided the child is:
1. Is at least 15 years of age; and

2. Actually tilling the land or directly managing
the farm
EXCEPTIONS:
-
those covered by homestead patents

those covered by PD 27
EMANCIPATION PATENT - is the title issued

to the tenant upon compliance with all the
requirements of the government. It represents
the full emancipation pf the tenant from the
bondage of the soil.
PROHIBITION AGAINST ALIENATION

IS INTENDED TO:
1. Preserve the landholding in the hands of the
owner-tiller and his heirs;
2. minimize land speculation; and
3. prevent a return to the regime of land
ownership by a few.
BOOK ONE
PRE-EMPLOYMENT
TITLE I
RECRUITMENT AND PLACEMENT OF
WORKERS
CHAPTER I
GENERAL PROVISIONS
ART 13. DEFINITIONS
RECRUITMENT AND PLACEMENT - any act

of
canvassing,
enlisting,
contracting,
transporting, utilizing, hiring or procuring
workers, and includes referrals, contract
services,
promising
or
advertising
for
employment, locally or abroad, whether for profit
or not; PROVIDED, that any person or entity
which, in any manner, offers or promises for a
fee employment to two or more persons shall be
deemed engaged in recruitment and placement.
(CEC-TUCP) (RCPA)
-The number of persons dealt with is not
an essential ingredient of the act of recruitment
and placement of workers. The proviso merely
creates the presumption.
ART 16. PRIVATE RECRUITMENT

ENTITIES AUTHORIZED TO RECRUIT
1. Public employment offices
2. Private
recruitment
entities;
private
employment agencies
3. Shipping
or
manning
agents
or
representatives
4. The POEA
5. Construction contractors if authorized by the
DOLE and the Construction Industry
Authority
6. Members of the diplomatic corps (but hirings
must also go thru POEA)
7. Other persons or entities as may be
authorized by the DOLE secretary
DOCUMENTATION OF WORKERS:
1. Contract Processing workers hired thru the
POEA shall be issued the individual
employment contract and such other
documents as may be necessary for travel
2. Passport Documentation
3. Visa Arrangement
ART 17. (POEA)

-
POEA has taken over the functions of the

OEDB
ADJUDICATORY FUNCTIONS OF THE

POEA :
a. All cases which are administrative in
character, involving or arising out of
violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entities; and
b. Disciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting

partners and Filipino Migrant Workers
JURISDICTION TRANSFERRED TO
THE LABOR ARBITERS OF THE NLRC :
a. claims arising out of an employer-employee
relationship or by virtue of any law or
contract involving Filipino workers for
overseas deployment including claims for
actual, moral, exemplary and other forms of
damages.
Venue Money claims or claims for damages
should be filed before the Regional Arbitration
branch of the NLRC where the complainant
resides or where the principal office of the
respondent/employer is situated, at the option of
the complainant.
Compromise Agreement - Consistent with
the policy encouraging amicable settlement of
labor disputes, Sec 10, RA 8042 allows
resolution by compromise of cases filed with the
NLRC.
PREMATURE
TERMINATION
OF
CONTRACT - Where the workers employment
contract is terminated long before its agreed
termination date, and the termination is not
shown to be based on lawful or valid grounds,
the employer will be ordered to pay the workers
their salaries corresponding to the unexpired
portion of their employment contract. (Tierra
Intl Construction Corp. vs. NLRC).
HOWEVER, under R.A. 8042, if the illegal
dismissal took place on or after July 15, 1995,
the illegally dismissed overseas worker shall be
entitled to the full reimbursement of his
placement fee with interest at the rate of 12%
per annum plus salary for the unexpired
portion of his employment contract or for 3
mos. for every year of the unexpired term
whichever is LESS.
Claims for death and burial benefits

involving seamen OCWs which the POEA
has jurisdiction are not the same as the
claims against the State Insurance Fund
of the LC.
- The basis for the award of backwages is the

parties employment contract, stipulating the
wages and benefits.
-
The fact that the employee has signed a

satisfaction receipt does not result in
waiver; the law does not consider as
valid any agreement to receive less

compensation than what the worker is
entitled to recover.
(MR Yard Crew Union vs. PNR)
ART 18. BAN ON DIRECT-HIRING

Direct hiring of Filipino workers by a
foreign employer is not allowed.
EXCEPTIONS :
the members of the diplomatic corps;
international organizations;
such other employers as may be allowed by the
Department of Labor and employment
1. name hirees individual workers who are
able to secure contracts for overseas
employment on their own efforts and
representations without the assistance or
participation or any agency
RATIONALE OF THE PROHIBITION

-
Filipino workers hired directly by a

foreign employer, without government
intervention may not be assured of the
best possible terms and conditions of
work. The foreign employer must also be
protected and may chance upon a Filipino
worker who do not possess sufficient
knowledge for which he is employed.
MINIMUM EMPLOYMENT
CONDITIONS OF OVERSEAS
EMPLOYMENT:
2.
3.
4.
5.
6.
7.
8.
1. Guaranteed wages for regular

working hours and overtime pay for
services rendered beyond regular
working hours in accordance with
the standards established by the
Administration
Free Transportation from point of hire to site
of employment and return;
Free emergency medical and dental
treatment and facilities;
Just causes for termination of the contract or
of the services of the workers;
Workmens compensation benefits and war
hazard protection;
Repatriation of workers remains and
properties in case of death to the point of
hire, or if this is not possible the possible
disposition thereof
Assistance on remittance of workers
salaries, allowances or allotments to his
beneficiaries; and
Free and adequate board and lodging
facilities or compensatory food allowance at
prevailing cost of living standards at the
jobsite.
ART 22. MANDATORY REMITTANCE

OF FOREIGN EXCHANGE EARNINGS
program and their relatives within the 4th

degree of consanguinity or affinity; or
6. Those whose license has been previously
canceled or revoked.
MANDATORY REMITTANCE
REQUIREMENTS:
1. Seamen or mariners: 80% of the basic
salary;
2. Workers for Filipino Contractors and
Construction Companies: 70% of the basic
salary;
3. Doctors, engineers, teachers, nurses, and
other professionals whose employment
contract provide for lodging facilities: same
as #2
4. All other professionals without board and
lodging: 50% of the basic salary;
5. Domestic and other service of workers; 50%
of the basic salary.
ART 25. PRIVATE SECTOR

PARTICIPATION IN THE RECRUITMENT
AND PLACEMENT OF WORKERS
QUALIFICATIONS FOR
PARTICIPATION IN THE OVERSEAS
EMPLOYMENT PROGRAM:
1. Filipino citizens, partnerships or corporations
at least 75% of the authorized and voting
capital stock of which is owned and
controlled by Filipino citizens;
2. Minimum capitalization of 1M in case of
single proprietorship or partnership and a
minimum of 1M paid-up capital for
corporations;
3. Those not otherwise disqualified by law or
these guidelines to engage in the
recruitment and placement of workers for
overseas employment
DISQUALIFICATIONS:
1. Travel agencies and sales agencies of
airline companies;
2. Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency;
3. Corporations and partnerships, when any of
its officers, members of the board or
partners, is also an officer, member of the
board or partner of a corporation engaged in
the business of a travel agency.
4. Persons, partnerships, or corporations which
have derogatory records;
5. Persons employed in the Department of
Labor or in other government agencies
directly involved in overseas employment
CHAPTER II
REGULATIONS OF RECRUITMENT
AND PLACEMENT ACTIVITIES
ART 29. NON-TRANSFERABILITY OF
LICENSE OR AUTHORITY
-
No license or authority shall be used

directly or indirectly by any person other
than the one in whose favor it was issued
or at any place other than that stated in the
license or authority, nor may such license or
authority be transferred, conveyed or
assigned to any other person or entity.
Licensees or holders of authority or their

duly authorized representatives may as a
rule, undertake recruitment and placement
activities only at their authorized official
addresses.
Change of ownership or relationship of

single proprietorship licensed to engage
in overseas employment shall cause the
automatic revocation of the license.
All overseas landbased workers shall be

provided both life and personal accident
insurance.
GROUNDS FOR DISCIPLINARY

ACTION (Under the MWA of 1995) ;
1. Commission of a felony punishable by the
laws of the Philippines or by the host
country;
2. Drug addiction or possession or trafficking of
prohibited drugs;
3. Desertion or abandonment;
4. Drunkenness, especially where the laws of
the of the host country prohibit the same;
5. Gambling, especially where the laws of the
host country prohibit the same;
6. Initiating or joining a strike or work stoppage
where the laws of the host country prohibit
strikes or similar actions;
7. Creating trouble at the worksite or in the
vessel;
8. Embezzlement of company funds or of
money an properties of a fellow worker
entrusted for delivery to kins or relatives in
the Philippines;
9. Theft or robbery;
10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly

weapons;
13. Unjust refusal to depart for the worksite after
all employment and travel documents have
been duly approved by the appropriate
government agency; and
14. Violation of the laws and sacred practices of
the host country and unjustified breach of
government approved employment contract
by a worker.
ART 31. BONDS

-
Cash bond filed by applicants for license

or authority is not subject to garnishment
by judgment creditor of agency
ART 32. FEES TO BE PAID BY

WORKERS
-
Suspension or cancellation of licenses may

include award of damages to repair the
injury caused to its victims.
ART 34. PROHIBITED PRACTICES

-
A supplementary contract beneficial to

worker not violative of protection afforded
by the State to workers.
ART 35. SUSPENSION AND/OR

CANCELLATION OF LICENSE OR
AUTHORITY
NON-LICENSEE OR NON-HOLDER OF
AUTHORITY - any person, corporation or entity
which has not been issued a valid license or
authority to engage in recruitment and
placement by the Secretary of Labor, or whose
license or authority has been suspended,
revoked, or cancelled by the POEA and the
Secretary.
MISCELLANEOUS PROVISIONS
ART 38. ILLEGAL RECRUITMENT (as
per RA 8042 otherwise known as the
Migrant Workers Act of 1995)
ILLEGAL RECRUITMENT - Any act of
canvassing,
enlisting,
contracting,
transporting, utilizing, hiring or procuring
workers and includes referring contract
services, promising or advertising for
employment abroad, whether for profit or
not when undertaken by a non-licensee
or non-holder of authority.
PROVIDED that any such non-licensee
or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
to two or more persons shall be deemed so
engaged.
It shall likewise include the
commission of prohibited acts whether
committed by a non-licensee or non-holder of
authority or a licensee or holder of authority.
PROHIBITED PRACTICES:
(CFGIIEOFSBWF)
C
F
G
I
O
F
S
B
W
CHAPTER III
to charge or accept amount beyond

amount allowed by law
to furnish or publish false notice or
information in relation to Recruitment
and Placement
to give any false notice and information
or commit any act of misrepresentation
to secure license or authority
Induce or attempt to induce workers to
quit employment to offer him another
except if the transfer is to liberate a
worker from oppressive terms and
conditions of employment (NOTE: it is
not necessary that worker was actually
induced or did quit employment)
to influence or attempt to influence any
person or entity not to employ any
worker who has not applied for
employment in his agency
to engage in the recruitment or
placement of workers in jobs harmful to
public health or morality or to the dignity
of the Phil.
Obstruct or attempt to obstruct
inspection by Secretary
Fail to file reports
Substitute or alter employment contracts
Become officer or Board member of
corporation engaged in travel agency
Withhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authorized by the Code.
Failure to actually deploy without valid
reason as determined by the DOLE
Failure to reimburse expenses incurred

by the worker in connection with his
documentation and processing for
purposes of deployment, in cases where
the deployment does not actually take
place without the workers fault
THE QUALIFYING CIRCUMSTANCES

THAT WOULD MAKE ILLEGAL
RECRUITMENT
AS
A
CRIME
INVOLVING ECONOMIC SABOTAGE
ARE :
When committed by a SYNDICATE i.e., if it is
carried out by a group of three (3) or more
persons conspiring and confederating with
one another; or
(a)
When committed in a LARGE SCALE
i.e., if it is committed against three (3) or
more persons
TITLE II
EMPLOYMENT OF NON-RESIDENT
ALIENS
ART 40. EMPLOYMENT PERMIT OF
NON-RESIDENT ALIENS
-Foreigners or domestic and foreign employers
desiring to employ aliens must secure
employment permit from the DOLE upon
determination of the non-availability of a person
in the Philippines who is competent, able and
willing at the time of the application to perform
the services for which the alien is desired.
-
Foreigners may not be employed in certain

nationalized business.
- a non-resident alien worker and the

employer shall bind themselves to train at least
2 Filipino understudies.
VENUE OF ACTIONS ON ILLEGAL

RECRUITMENT:
PROHIBITION
EMPLOYMENT OF ALIENS
1. RTC of the province or city where the

offense was committed; or
2. where the offended party resides at the time
of the commission of the offense
at the option of the complainant
Section 2-A of the Anti-Dummy Law prohibits

the employment of aliens in establishment or
entities which have under their name or control a
right, franchise, privilege, property or business
the exercise or enjoyment of which property or
business the exercise or enjoyment of which is
expressly reserved by the Constitution or the
laws to
citizens of the Philippines or to
corporations or associations at least 60% of the
capital of which is owned by such citizens.
These circumstances only qualify. They do

not define the offense themselves
Recruitment and placement activities of

agents or representatives appointed by a
licensee, whose appointments were not
previously authorized by the POEA shall
likewise constitute illegal recruitment.
ART. 38 ( c ) declared unconstitutional since

only a judge may issue search
warrant/ warrant of arrest. The
Sec.
Of
Labor
may
only
recommend not issue. However,
Closure of establishments of illegal
recruiters may still be ordered by
Secretary of Labor, same being
essentially
administrative
and
regulatory in nature.(Salazar vs.
Achacoso and Marquez)
EXCEPTIONS
PROHIBITION:
a.
b.
AGAINST
TO
THE
where the Secretary of Justice specifically

authorizes the employment of technical
personnel; or
where the aliens are elected members of
the board of directors or governing body of
corporations or association in proportion to
their allowable participation in the capital of
such entities.
PRESCRIPTIVE PERIOD
Illegal Recruitment cases under RA 8042 shall
prescribe in five (5) years Provided, however,
That illegal recruitment cases involving
economic sabotage shall prescribe in twenty
(20) years.
BOOK TWO
HUMAN RESOURCES
DEVELOPMENT
TITLE I
NATIONAL MANPOWER
DEVELOPMENT PROGRAM
CHAPTER I
NATIONAL POLICIES AND
ADMINISTRATIVE MACHINERY FOR
THEIR IMPLELENTATION
ART 45. DEFINITIONS
MANPOWER - that portion of the nations
population which has actual or potential
capability to contribute directly to the production
of goods and services.
ENTREPRENEURSHIP - training for selfemployment or assisting individual or small
industries within the purview of this the LC.
TITLE II
TRAINING AND EMPLOYMENT OF
SPECIAL WORKERS
CHAPTER I
APPRENTICES
binds himself to train the apprentice and the

apprentice in turn accepts the terms of training
ON-THE-JOB TRAINING the practical
work experience through actual participation in
productive activities given to or acquired by an
apprentice
HIGHLY TECHNICAL INDUSTRIES trade,
business, enterprise, industry or other activity,
which is engaged in the application of advanced
technology
ART 59. QUALIFICATIONS OF

APPRENTICES
Qualifications of an Apprentice
1.
at least 15 years of age; provided those

who are at least 15 years of age but less
than eighteen may be eligible for
apprenticeship only in non-hazardous
occupations
and
the
apprenticeship
agreement shall be signed in his behalf by
the parent or guardian or authorized
representative of DOLE.
2. vocational aptitude/ capacity for appropriate
test
3. ability to comprehend and follow oral and
written instructions
ART 60. EMPLOYMENT OF
APPRENTICES
Types of Special Workers:

1. Apprentice
2. Learners
3. Handicapped
ART 58. DEFINITION OF TERMS

APPRENTICESHIP - practical training on the
job supplemented by related theoretical
instruction
APPRENTICE - worker who is covered by a
written apprenticeship agreement with an
individual employer or any of the entities
recognized under this chapter
APPRENTICEABLE OCCUPATION - any
trade, form of employment or occupation which
requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction
APPRENTICESHIP AGREEMENT an
employment contract wherein the employer
Only employers in highly technical

industries may hire apprentices and only in
apprenticeable
occupations
as
determined by the Sec. Of Labor
Requisites
APPRENTICESHIP
for
VALID
1. QUALIFICATIONS OF THE APPRENTICE

2.
APPRENTICESHIP AGREEMENT DULY
EXECUTED AND SIGNED PROVIDING FOR
COMPENSATION NOT LESS THAN 75% OF
THE APPLICABLE MINIMUM WAGE, EXCEPT
ON-THE-JOB TRAINING (OJT)
3.APPRENTICESHIP
PROGRAM
DULY
APPROVED BY DOLE
4. PERIOD OF APPRENTICESHIP SHALL NOT
EXCEED 6 MONTHS.
ART 71. DEDUCTIBILITY OF TRAINING

COSTS
Requisites for tax deductions in case

employers have apprenticeship
programs:
learner as regular
employee if he
desires upon
completion of
learnership
1. Program duly recognized by the Department

of Labor
2. Deduction shall not exceed 10% of direct
labor wage
3. Pay his apprentices the minimum wage
ART 72. APPRENTICES WITHOUT

COMPENSATION
4. In case of
pretermination of
the apprenticeship
agreement, the
worker is not
considered as a
regular employee
4. Learner is
considered as a
regular employee
in case of
pretermination of
contract after 2
mos. of training
and the dismissal
is without fault of
learner
5. Highly technical
industries and only
in industrial
occupation
5. Semi-skilled /
industrial
occupations
Apprentices who may be hired without

compensation:
1.those whose training on the job is
required by the school;
2.Training Program Curriculum;
3.Requisite for Graduation; or
4.A requisite for Board Examination
CHAPTER II
LEARNERS
Learners in piecework/ incentive - rate jobs

are to be paid in full for the work done.
CHAPTER III
HANDICAPPED WORKERS
ART 73. LEARNERS DEFINED

LEARNERS - persons hired as trainees in
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be
learned thru practical training on the job in a
relatively short period of time which shall not
exceed 3 mos.
APPRENTICESHIP
LEARNERSHIP
1. Practical training on
the job
supplemented by
related theoretical
instruction.
1. Hiring of persons
as trainees in
semi-skilled and
other industrial
occupations which
are nonapprenticeable and
which may be
learned thru
practical training
on the job in a
relatively short
period of time.
2. Not less than 3

months practical
training on the job
but not more than 6
months
2. Practical training
on the job not to
exceed 3 mos.
3. No Commitment to
hire
3. With Commitment
to employ the
ART 78. DEFINITION

HANDICAPPED WORKERS - Are those
whose earning capacity is impaired by age or
physical or mental deficiency or injury.
-
Subject to the provisions of the Code,

handicapped workers may be hired as
regular workers, apprentices or learners
if their handicap is not such as to
effectively impede the performance of job
operations in the particular occupations for
which they were hired.
qualified disabled employee shall be

subject to the same terms and conditions
of
employment
and
the
same
compensation, privileges, benefits, fringe
benefits, incentives or allowances as a
qualified able-bodied person.
Even a
handicapped worker can acquire the
status of a regular employee.
Duration of employment - no minimum, no

maximum. Dependent on agreement but is
necessary that there is a specific duration
BOOK THREE
CONDITIONS OF EMPLOYMENT
TITLE I
WORKING CONDITIONS AND REST
PERIODS
CHAPTER I
HOURS OF WORK
ART 82. COVERAGE
ELEMENTS
OF
EMPLOYEREMPLOYEE RELATIONSHIP:
1. selection and engagement of the

employee
2. the payment of wages
3. the power of dismissal
4. the employers power to control the
employee (with respect to the means
and methods by which the work is to
be accomplished)
-
The last element as mentioned above is

what is known as the CONTROL TEST whether the employer controls or has
reserved the right to control the employee
not only as to the result of the work to be
done but also as to the means and methods
by which the same is to be accomplished.
This last element is the most important index
of the existence of the relationship.
EMPLOYEE - A natural person who is hired,

directly or indirectly, by a natural or juridical
person to perform activities related to the
business of the hirer who, directly or
through an agent, supervises or controls
the work performance and pays the salary
or wage of the hire.
MANAGERIAL EMPLOYEES - Refer to

those whose primary duty consists of the
management of the establishment in which
they are employed or of a department or
subdivision thereof and to other members
of the managerial staff
Note: Definition applies only to the 8hour Labor law
FIELD PERSONNEL - Refer to nonagricultural employees who regularly
perform their duties away from the principal
place of business or branch office of the
employer and whose actual hours of work
in the field cannot be determined with
reasonable certainty.
WORKERS PAID BY RESULTS - Method of
computing compensation based on the
work completed and not on the time spent
in working.
PIECE-RATE METHOD - Where pay is
dependent on unit of product finished, preferred
where the work process is repetitive and the out
put is standardized and easily countable.
DOMESTIC
HELPERS/
PERSONS
RENDERING PERSONAL SERVICES - Perform
services in the employers home which are
usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
to the personal comfort, convenience or safety of
the employer, as well as the members of the
employers household.
-
The existence of employment relationship is

determined by law and not by contract.
Whether or not an employer-employee

relationship exists between the parties is a
question of fact. The findings of the
NLRC are accorded not only respect but
finality if supported by substantial
evidence.
Employees Exempt from the Benefits

of E-E Relationship
1.
2.
3.
4.
Government Employees
Managerial Employees
Field Personnel
Family Members dependent on the
employer for support
5. Domestic Helpers
6. Persons on the Personal Service of another
7. Workers Paid by Result
GOVERNMENT EMPLOYEES - Refers only
to employees of government agencies,
instrumentalities or political subdivisions
and of government corporations that are
not incorporated under the Corporation
Code, meaning those which have original
charters.
MANAGEMENT PREROGATIVE - except as

otherwise limited by special laws, an employer is
free to regulate, according to his own discretion
and judgment, all aspects of employment,
including hiring, work assignments, working
methods, time, place, and manner of work, tools
to be used, processes to be followed,
supervision of workers, working regulations,
transfer of employees, work supervision, lay-off
of workers and discipline, dismissal and recall of
workers.
-
Management prerogative recognizes the

right of the employer to advance its
interest to prescribe standards of work and
impose reasonable quotas or work
assignments, and failure on the part of the

employees to meet the requirement, impose
in good faith, constitutes a just cause for his
dismissal.
-
New owner/management group has no

obligation to re-employ workers who
freely and voluntarily accepted their
separation pay and other benefits. A
change of ownership in a business concern
is not proscribed by law.
work is with the knowledge of his employer

or immediate supervisor
4. The time during which an employee is
inactive by reason of interruptions in his
work beyond his control shall be considered
time either if the imminence of the
resumption of work requires the employees
presence at the place of work or if the
interval is too brief to be utilized effectively
and gainfully in the employees own interest.
- Only the maximum is prescribed, not minimum.
Part- time work is therefore not prohibited.
ART 83. NORMAL HOURS OF WORK

- Shall not exceed 8 hours in a regular working
day
PURPOSE
-
to safeguard the health and welfare of the

laborer and in a way to minimize
unemployment by utilizing different shifts
REGULAR WORKING DAYS: The regular

working days of covered employees shall not be
more than five days in a workweek. The
workweek may begin at any hour and on any
day, including Saturday or Sunday, designated
by the employer.
ART 84. HOURS WORKED
SHALL INCLUDE:
1. All time during which an employee is
required to be on duty or to be at a
prescribed workplace; and
2. All time during which an employee is
suffered or permitted to work
PRINCIPLES IN DETERMINING
HOURS WORKED:
1. All hours are hours worked which the
employee is required to give to his
employer, regardless of whether or not such
hour are spent in productive labor or involve
physical or mental exertion;
2. An employee need not leave the premises of
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere
whether within or outside the premises of his
workplace;
3. If the work performed was necessary, or it
benefited the employer, or the employee
could not abandon his work at the end of his
normal working hours because he had no
replacement, all time spent for such work
shall be considered as hours worked if the
ENGAGED TO WAIT - when waiting is an

integral part of the job, it is compensable
WAITING TO BE ENGAGED - idle time is not
working time, not compensable
WHEN
COMPENSABLE:
TRAVEL
TIME
1. Travel from home to work- refers to ordinary

work travel but where the worker is made to
work on an emergency call and travel is
necessary in proceeding to the workplace,
the time spent on travel is compensable
2. Travel that is all in a days work- time spent
by an employee in travel as part of his
principal activity, such as travel from jobsite
to jobsite during the workday, must be
counted as hours worked.
3. Travel away from home- travel that keeps an
employee away from home overnight.
Work hours of seamen are governed by
the same rules as land based employees.
Thus, they must show sufficient proof that
said work is actually performed.
Rest Periods of short duration during
working hours shall be considered as
hours worked.
-
Preliminary activities compensable when

controlled or required by employer and are
pursued necessarily and primarily for the
employers benefit,
ART 85. MEAL PERIODS
MEAL PERIODS
1. Should not be less than sixty (60) minutes,
and is time-off/non-compensable
2. Under specified cases, may be less than
sixty (60) minutes, but should not be less
than twenty (20) minutes an must be with full

pay.
3. If less than twenty(20) minutes, it becomes
only a rest period and is thus considered as
work time
ART 87. OVERTIME WORK
NOTE: Employee must be completely

relieved from duty. Otherwise, it is
compensable as hours worked.
30% of 130% if on a special holiday/rest day

1. 25% of regular wage if done on a regular
workday
2. 30% of 150% if on special holiday AND rest
day
3. 30% of 200% if on a regular holiday
Mealtime is not compensable EXCEPT in

cases where the lunch period or meal time is
predominantly spent for the employers
benefit or where it is less than 60
minutes.
Employees may request that their meal
period be shortened so that they can leave
work earlier that the previously established
schedule.
REQUISITES :
1. The employees voluntarily agree in writing to
a shortened meal period and are willing to
waive the overtime pay for such shortened
meal period;
2. No diminution whatsoever in the salary and
other fringe benefits of the employees
existing before the effectivity of the
shortened meal period;
3. Work does not involve strenuous physical
exertion and they are provided with
adequate coffee breaks;
4. The value of benefits is equal with the
compensation due them for the shortened
meal period
5. OT pay will become due and demandable
after the new time schedule; and
6. The arrangement is of temporary duration.
ART 86. NIGHT SHIFT DIFFERENTIAL
NIGHT SHIFT DIFFERENTIAL -Additional
compensation of not less than ten percent
(10%) of an employees regular wage for every
hour of work done between 10:00 PM and 6:00
AM, whether or not this period is part of the
workers regular shift.
-
OVERTIME PAY- Additional compensation

for work performed beyond eight (8) hours
within the workers 24-hour workday.
RATIONALE
- employee is given OT pay because he is made
to work longer than what is commensurate with
his agreed compensation for the statutorily fixed
or voluntarily agreed hours of labor he is
supposed to do.
-
NOTE: OT pay will not preclude payment of

night shift differential pay.
-
- it serves as an inducement of employment
Meal periods during overtime work is not

given to workers performing overtime for
the reason that OT work is usually for a
short period ranging from one to three hours
and to deduct from the same one full hour
as meal period would reduce to nothing the
employees OT work.
WORK DAY - the 24-hour period which

commences from the time the employee
regularly starts to work. e.g., if the worker starts
to work 8 am today, the workday is from 8am
today up to 8 am tom.
-
The minimum normal working hours fixed by

the Act need not be continuous to
constitute the legal working day
Express approval by a superior is not a

prerequisite to make overtime work
compensable.
HOWEVER,
written
authority after office hours during rest days
and holidays are required for entitlement to
compensation.
The right to OT pay cannot be waived.

Such waiver is contrary to law and public
policy.
If work done between 10 PM and 6 AM is

overtime work, then the 10% night shift
differential should be based on his
overtime rate.
RATIONALE
As a rule, cannot be waived, as it is

intended to benefit laborers and employees.
But when the waiver is made in
consideration of benefits and privileges
which may even exceed the overtime pay,
the waiver may be permitted.
EXCEPTIONS:
1. When the waiver stipulates higher payment

or rate of OT pay; or
2. Where the contract of employment requires
work for more than eight hours of work at
specified wage per day providing for a fixed
hourly rate or that the daily wages include
overtime pay.
COMPRESSED WORKWEEK -allowable
under the following conditions:
1. It is voluntary on the part of the worker
2. There will be no diminution of the weekly or
monthly take-home pay and fringe benefits
of the employees;
3. The value of the benefits that will accrue to
the employees under the proposed schedule
is more than or at least commensurate with
the one-hour OT pay that is due them during
weekdays based on the employees
quantification
4. The one-hour OT pay will become due and
payable if they are made or permitted to
work on a day not scheduled for work on the
compressed work week
5. The work does not involve strenuous physical
exertion and employees must have
adequate rest periods
5. The arrangement is of temporary duration.
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.
N
U
N
C
ART 90. REGULAR WAGE

- include the cash wage only, without deduction
on account of facilities provided by the
employer
CHAPTER II
WEEKLY REST PERIOD
ART 91. RIGHT TO A WEEKLY REST
DAY
-
Employees should be provided a rest period

of not less than twenty four (24)
consecutive hours after every six (6)
consecutive normal work days.
Employer shall schedule the weekly rest day

of his employees subject to collective
bargaining agreement.
However, the
employer shall respect the preference of
employees as to their weekly rest day
when such preference is based on
religious grounds.
But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employees choice
for at least two (2) days a month
RATIONALE
-
An employees regular pay rate is lower than

the overtime rate. Offsetting the undertime
hours against the overtime hours would
result in undue deprivation of the
employees extra pay for overtime work.
ART 89. EMERGENCY OVERTIME

WORK
WHEN WORKER MAY BE REQUIRED
TO RENDER OT:
(WNUNCN)
1. Country is at war or any other

national/local emergency has been
declared
by
the
Chief
Executive/Congress
2. Necessary to prevent loss of
life/property/ in case of actual/impending
emergency in the locality
3. There is urgent work to be performed
on machines, installations, or equipment
in order to avoid serious loss/damage to
the employer or some other causes of
similar nature
4. Work is necessary to prevent
loss/damage to perishable goods; and
5. where the completion or continuation
of the work started before the eighth
hour is necessary to prevent serious
obstruction or prejudice to the business
or operations of the employer.
6. when it is necessary to avail of
favorable weather or environmental
conditions where performance or quality
of work is dependent thereon
ART 92. WHEN EMPLOYER MAY

REQUIRE WORK ON A REST DAY
WHEN
EMPLOYEE
MAY
BE
REQUIRED TO RENDER WORK
ON A REST DAY:
1. In case of actual or impending emergencies

caused by serious accident, fire, flood
typhoon, earthquake epidemic or other
disaster or calamity, to prevent loss of life or
property or in cases of force majeure or
imminent danger to public safety
2. urgent work to be performed on the
machinery, equipment or installation to avoid
serious loss which the employer would
otherwise suffer
3. abnormal pressure of work due to special
circumstances, where the employer cannot
ordinarily be expected to resort to other
measures
4. prevent serious loss of perishable goods
5. nature of work requires continuous operation
for seven days a week
6. work is necessary to avail of favorable
weather or environmental conditions where
performance or quality of work depends
upon them
ART 93. COMPENSATION FOR REST

DAY, SUNDAY OR HOLIDAY WORK
-
this article does not prohibit a stipulation in

the CBA for higher benefits
SPECIAL HOLIDAYS
1. All Saints Day -November 1
2. Last Day of the Year-December 31
3. And all other days declared by law or
ordinances to be a special holiday or nonworking day
NOTE: worked = regular wage plus 30%
premium pay
not worked = none
ADDITIONAL COMPENSATION FOR

WORK ON A REST DAY, SUNDAY
OR HOLIDAY WORK:
1. Work on a scheduled rest day - 30% of
regular wage
2. No regular workdays and rest days -30% of
regular wage for work on Sundays &
Holidays
3. Work on Special Holidays -30% of regular
wage
4. Holiday Work falls on Scheduled Rest Day 50% of regular wage
CHAPTER III
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
ART 94. RIGHT TO HOLIDAY PAY

HOLIDAY PAY - A days pay given by law to
an employee even if he does not work on a
regular holiday. It is limited to the ten (10)
regular holidays listed by law.
- employee should not have been absent
without pay on the working day preceding the
regular holiday
Art. 94(b) refers to regular holidays, special
holidays are taken care of under Art. 93.
PREMIUM PAY - Additional compensation for
work performed on a scheduled rest day or
holiday.
REGULAR HOLIDAYS:
1.
2.
3.
4.
5.
6.
7.
New Years Day

-January 1
Maundy Thursday -Movable date
Good FridayMovable date
Araw ng Kagitingan -April 9
Labor Day -May 1
Independence Day -June 12
National Heroes Day`-Last Sunday
August
8. Bonifacio Day-November 30
9. Christmas Day-December 25
10. Rizal Day-December 30
Note: Compensable
unworked.
whether
worked
of
or
DOUBLE HOLIDAY PAY

200% of the basic wage provided, he works
on that day and was present or on leave
with pay on the preceding
workday. If
on leave without pay, rate still applies if
leave is authorized.
2. 400% if he worked as per DOLE Memo if
there are 2 regular holidays in one day eg.
April 9 and Good Friday. Provided the
employee worked on the day prior to the
regular holiday or on leave with pay or on
authorized absence.
3. If there are two succeeding holidays eg.,
Maundy Thursday and Good Friday, the
employee must be present the day before
the scheduled regular holiday to be entitled
to compensation to both otherwise, he must
work on the first holiday to be entitled to
holiday pay on the second regular holiday.
1.
REGULAR
HOLIDAY
SPECIAL
HOLIDAY
- compensable even
- not compensable if
if unworked subject
to certain conditions
considered integrated in their wages on

the basis of the average monthly share of
each employee for the past 12 months
immediately preceding the abolition.
unworked
- limited to the 10
enumerated by the
LC
- not exclusive since

law may provide for
other special
holidays
- rate is twice the

regular rate if
worked
- rate is 130% if
worked
ART 95. RIGHT

INCENTIVE LEAVE
TO
TITLE II
WAGES
CHAPTER I
PRELIMINARY MATTERS
SERVICE
SERVICE INCENTIVE LEAVE (SIL) - Five (5)

days leave with pay for every employee
who has rendered at least one (1) year of
service.
BUT DOES NOT APPLY TO THOSE

WHO ARE:
already enjoying the said benefits; or
enjoying vacation leave with pay for at least 5
days
those employed in establishments regularly
employing less than 10 employees
those employed in establishments exempted
from granting this benefit by the Secretary
of Labor.
ONE (1) YEAR OF SERVICE.- service within
12 months, whether continuous or broken,
reckoned from the date the employee started
working including authorized absences and paid
regular holidays unless the number of working
day in the establishment as a matter of practice
or policy, or provided in the employment contract
is less than 12 mos.
-
SIL is commutable i.e., convertible to

cash- the cash equivalent is aimed
primarily at encouraging workers to work
continuously and with dedication to the
company.
ART 96. SERVICE CHARGES
TO BE DISTRIBUTED TWICE
MONTH AND AT THE RATE OF:
1. 85% for all covered employees to be equally

distributed among them
2. 15% for management (may answer for
losses and breakages or distributed to
management)
-
If collection of service charges is abolished,

the share of covered employees shall be
ART 97. DEFINITION

WAGE - the remuneration or earnings,
however designated, capable of being
expressed in terms of money, whether fixed
or ascertained on a time, task, piece, or
commission basis or other method or
calculating the same, which is payable by
an employer to an employee under a
written or unwritten contract of employment
for work done or to be done or for services
rendered or to be rendered and includes
the fair and reasonable value of board,
lodging, or other facilities customarily
furnished by the employer to the employee.
FAIR DAYS WAGE FOR A FAIR DAYS
LABOR - if there is no work performed by
the employee, there can be no wage or
pay unless the laborer was able, willing,
and ready to work but was prevented by
management or was illegally locked out,
suspended or dismissed.
WAGE
- compensation
manual labor
-
Not subject
execution
SALARY
for
to
- denotes higher
degree of
employment
- subject to execution
(Gaa vs. CA)
FACILITIES shall include all articles or

services for the benefit of the employee or his
family but shall not include tools of the trade or
articles or services primarily for the benefit of the
employer or necessary to the conduct of the
employers business.
FACILITIES
SUPPLEMENTS
- Are items of
expense necessary
for the laborers and
his familys
existence and
subsistence
- Constitute extra
remuneration or
special privileges or
benefits given to or
received by the
laborers over and
above their ordinary
earnings wages
- part of the wage
- independent of the
wage
- deductible from the

wage
- not wage
deductible
3. It
is not due to an error in the
construction /application of a doubtful or
difficult question of law.
-
BONUS - A supplement or employment

benefit given under certain conditions, such
as success of the business or greater
production or output. As a rule, it is an
amount granted voluntarily to an employee
for his industry and loyalty which
contributed to the success and realization
of profits of the employers business.
Therefore, from a legal point of view, it is
not a demandable and enforceable
obligation. Unless, it was promised to be
given without any conditions imposed for its
payment, as such, it is deemed part of the
wage.
ART. 98. APPLICATION OF TITLE

This Title shall not apply to the
following:
1. household or domestic helpers
2. homeworkers engaged in needle-work
3. workers employed in any establishment
duly registered with the National Cottage
Industry
4. Workers in any duly registered cooperatives
CHAPTER II
MINIMUM WAGE RATES
ART 100. PROHIBITION AGAINST
ELIMINATION OR DIMUNITION OF
BENEFITS
LEGAL REQTS. BEFORE FACILITIES
CAN BE DEDUCTED FROM THE
EMPLOYEES WAGES:
1. Proof that such facilities are customarily
furnished by the trade ;
2. Voluntarily Accepted in writing by the
employee
3. Charged at Fair & Reasonable Value
THE NON-DIMINUTION RULE -the benefits
being given to employees cannot be taken
back or reduced unilaterally by the
employer because the benefit has become
part of the employment contract, written or
unwritten.
But even in cases of error, it should be

shown that the correction is being done
soon after the discovery of the error.
13TH MONTH PAY (OR ITS EQUIVALENT)

-additional income based on wage required by
P.D. 851 which is equivalent to 1/12 of the total
basic salary earned by an employee within a
calendar year.
- may be given anytime but not later than Dec.
24
COVERAGE:
- All rank-and-file employees regardless of their
designation or employment status and
irrespective of the method by which their wages
are paid, are entitled to this benefit, provided,
that they have worked for at least one (1)
month during the calendar year.
FORMS:
1.
2.
3.
4.
Christmas bonus
midyear bonus
profit sharing payments; and
other cash bonuses amounting to not less
than 1/12 of its basic salary.
Difference of opinion on how to compute the

13th month pay does not justify a strike
It must always be in the form of legal tender

. Free rice, electricity cash and stock
dividends, COLA not equivalent
The rule is applicable if it is shown that

the grant of the benefit is:
1. based on an express policy, or
2. has ripened into practice over a long period
of time, and the practice is consistent and
deliberate.
ART 101. PAYMENT BY RESULTS
CATEGORIES OF PIECE-RATE
WORKERS:
ART 103. TIME OF PAYMENT
1. those who are paid piece rates as

prescribed in Piece Rate Orders by the
DOLE
2. Those who are paid output rates which are
prescribed by the employer and are not yet
approved by the DOLE
WORKERS PAID ON PIECE-RATE BASIS shall refer to those who are paid a standard
amount for every piece or unit of work produced
that is more or less regularly replicated, without
regard to the time spent in producing the same.
BENEFITS PAYABLE TO PIECE-RATE

WORKERS:
1. Applicable statutory minimum daily rate;
2. Yearly service incentive leave of five days
with pay;
3. Night shift differential pay
4. Holiday pay
5. Meal and rest periods
6. OT pay (conditional)
7. Premium pay (conditional)
8. 13th month pay
9. other benefits granted by law, individual or
collective bargaining agreement or company
policy or practice.
CHAPTER III
PAYMENT OF WAGES
ART 102. FORMS OF PAYMENT
EMPLOYER CANNOT PAY HIS
WORKERS BY MEANS OF:
1.
2.
3.
4.
5.
6.
7.
promissory notes
vouchers
coupons
tokens
tickets
chits
or any object.
WHEN TO PAY:
at least once every two (2) weeks or twice a
month at intervals not exceeding sixteen
(16) days
force
majeure
or
other
circumstances
beyond
the
employers control, payment must be
made immediately after such occurrence
have ceased.
ART.104. PLACE OF PAYMENT

WHERE TO PAY:
-
Shall be made at or near the place of

undertaking,
EXCEPTIONS:
1. When payment cannot be effected at or near
the place of work by reason of deterioration
of peace and security
2. When the employer provides for free
transportation to the employees back and
forth;
3. And under analogous circumstances
-
payment of wages in bars, night or day

clubs,
massage
clinics
or
similar
establishments are prohibited except for the
workers therein.
PAYMENT THRU BANKS:

REQUISITES :
1. There must be written permission of the
majority of the employees concerned in an
establishment;
2. The establishment must have 25 or more
employees; and
3. The bank must be located within one
kilometer radius to the bank from the
location of the establishment
- payment through the ATM is allowed
GENERAL RULE:
-
payment by legal tender
EXCEPTIONS:
- checks or money orders may be paid if:
1. the same is customary on the date of
effectivity of the LC;
2. necessary because of special
circumstances; or
3. as stipulated in the CBA
ART 105. DIRECT PAYMENT OF

WAGES
TO WHOM PAID
wages shall be paid directly to the workers

to whom they are due.
EXCEPTIONS:
a. in
case
of
force
majeure/special
circumstances, payment may be made
through another person under written
authority where the worker has died, the
b. employer may pay the wages of the
deceased worker to the heirs of the latter,
through the Secretary of Labor or his
representative, without the necessity of
intestate proceedings, after the heirs have
executed an affidavit attesting to their
relationship to the deceased and the fact
that they are his heirs to the exclusion of all
others
standards, free exercise of the right to selforganization, security of tenure and social
and welfare benefits.
-
JOB
C
O
NT
R
A
CT
IN
G
ART 106. CONTRACTOR OR

SUBCONTRACTOR
LABOR ONLY CONTRACTING - where the
person supplying workers to an employer does
not have substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
performing activities which are directly related to
the principal business of such employer.
INDEPENDENT CONTRACTOR - one who
exercises
independent
employment
and
contracts to do a piece of work according to his
own methods and without being subject to
control of his employer except as to the result
thereof.
-
A mere statement in a contract with a

company that laborers who are paid
according to the amount and quality of work
are independent contractors does not
change their status as mere employees
in contemplation of labor laws.
REQUISITES FOR A CONTRACTING

OR SUBCONTRACTING TO BE :
1. where the contractor or subcontractor
carries on a distinct and independent
business and undertakes to perform the job
on his own account and under his own
responsibility, according to its own manner
and method and free from the control and
direction of the principal in all matters
connected with the performance of the work
except as to the results thereof;
2. the contractor or subcontractor has
substantial capital or investment; and
3. the agreement between the principal and
contractor or subcontractor assures the
contractual employees entitlement to all
labor and occupational safety and health
Substantial capital need not be coupled

with investment in tools or equipment.
This is clear from the use of the conjunction
or.
LABOR ONLY
CONTRACTING
1. No E- E
relationship exist
between
employer and the
contractors
employee except
when the
contractor or
subcontractor
fails to pay the
wages of his
employees
1. Employer is treated
as direct employer
of the person
recruited in all
instances
2. liability is limited
to unpaid wages
and other labor
standards
violations
2. liable to all rights

duties and liabilities
under labor
standards laws
including the right to
selforganization
3. Permissible
3. Prohibited by law
4. Contractor has
substantial capital
or investment
4. Contractor has no
substantial capital/
investment
WORKING CONDITIONS - Refers to the

terms and circumstances affecting the
employment of an employee, including
policies,
programs
and
regulations
governing his employment status, work,
and work relationships. They are, as a rule,
determined by the employer.
ART. 110. WORKER PREFERENCE IN

CASE OF BANKRUPTCY
-
This Article did not sweep away the

overriding preference accorded under the
scheme of the Civil Code to tax claims of the

government.
-
just a preference, must yield to special

preferred credit, e.g. secured creditors
The formal declaration of insolvency or
bankruptcy or a judicial liquidation of the
employers business is a condition sine
qua non to the operation of the preference
accorded to workers under Art. 110.
CHAPTER IV
PROHIBITIONS REGARDING WAGES
ART 112. NON-INTERFERENCE IN
DISPOSAL OF WAGES
In relation to the Civil Code:
Art. 1705. The laborers wages shall be paid in
legal currency.
Art. 1706. Withholding of the wages except for
a debt due, shall not be made by the employer
Art. 1707. The laborers wages shall be a lien
on the goods manufactured or the work done.
Art. 1708. The laborers wages shall not be
subject to execution or attachment except for
debts incurred for food, shelter, clothing, and
medical attendance.
Art. 1709. The employer shall neither seize nor
retain any tool or other articles belonging to the
laborer.
PROHIBITIONS REGARDING WAGES:

1. Payment of wages with less frequency than
once (1) a month.
2. Limitations/Interference by the employer
with the employees freedom to dispose of
his wages.
3. Forcing, Compelling/Obliging employees to
purchase merchandise , commodities or
other properties from the employer or from
any other person, or to make use of any
store or service of such employer or any
other person
4. Withholding of wages
5. Deduction of wages as consideration of a
promise of employment or retention in
employment
6. Refusal to pay/ Reduction of wages and
benefits, discharge/ discrimination against
any employee as retaliatory measures
against any employee who has filed any
complaint or instituted any proceedings
against his employer
ART 113. WAGE DEDUCTION

ALLOWABLE DEDUCTIONS:
WITH EMPLOYEES CONSENT:
1.
2.
3.
4.
5.
SSS Payments
MEDICARE
Contributions to PAG-IBIG Funds
value of meals and others
payments to third persons with employees
consent
6. deduction of absences
W/OUT EMPLOYEES CONSENT:
1. Workers insurance acquired by the employer
2. Union Dues, where the right to check-off has
been recognized by the employer
3. Cases where the employer is authorized by
law or regulations issued by the Secretary of
Labor
4. debts of the employee to the employer which
have become due and demandable
ART 114. DEPOSITS FOR LOSS OR

DAMAGE
-
Deposits for Loss or Damage to tools,

materials and equipment supplied by the
employer shall not be made, EXCEPT
when the trade, occupation or businesses of
the employer recognizes, or considers the
practice of making deductions or requiring
deposits necessary or desirable.
REQUISITES FOR DEDUCTION FOR

LOSS OR DAMAGE :
1. employee clearly shown responsible
2. opportunity to show cause to show why
deduction should not be made
3. deduction is fair and reasonable and shall

not exceed the actual loss or damage
4. does not exceed 20% of the employees

wages in a week.
CHAPTER V
WAGE STUDIES, WAGE
AGREEMENTS AND WAGE
DETERMINATION
ART 122. CREATION OF THE
REGIONAL TRIPARTITE WAGES AND
PRODUCTIVITY BOARDS
WHO MAY SET MINIMUM WAGE:
1. Regional Tripartite Wages and Productivity

Board
2. Congress
distinctions embodied in such wage structure

based on skills, length of service or other logical
bases of differentiation.
CORRECTING WAGE DISTORTION
MINIMUM WAGE - The lowest wage rate fixed

by law that an employer can pay his
employees.
ART. 123 WAGE ORDER

WAGE ORDER an order issued by the
Regional Board whenever the conditions in the
region so warrant after investigating and
studying all pertinent facts and based on the
standards and criteria prescribed by the LC, the
Regional Board proceeds to determine whether
to issue the same or not.
EFFECTIVITY of a wage Order it shall take
effect after 15 days from the its complete
publication in at least one newspaper of general
circulation in the region.
FREQUENCY of a wage order - Wage Order
issued by the Board may not be disturbed for a
period of 12 months from its effectivity and no
petition for wage increase shall be entertained
during said period.
EXCEPTION: When
Congress itself issues a law increasing wages.
ART 124. STANDARDS/CRITERIA FOR

MINIMUM WAGE FIXING
FACTORS FOR DETERMINING
REGIONAL MINIMUM WAGE RATES
(DACNNIPFEE)
1. Demand for living wages;
2. Wage Adjustment vis-a vis the consumer
price index;
3. Cost of living and changes or increases
therein;
4. Needs of workers and their families;
5. Need to induce industries to invest in the
countryside;
6. Improvements in standards of living;
7. Prevailing wage levels;
8. Fair Return of the capital invested and
capacity to pay of employers;
9. Effects on Employment Generation and
Family Income;
10. Equitable Distribution of Income & Wealth
along the imperatives of economic and
social development
WAGE DISTORTION - situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
quantitative differences in wage or salary rates
between and among employee groups in an
establishment as to effectively obliterate the
Unionized Establishment
1. Negotiate to correct the distortion.
2. Any dispute arising therefrom should be
resolved through grievance procedure under
their CBA.
3. If the dispute remains unresolved, through
voluntary arbitration.
Establishments without Unions
1. The employers and workers shall endeavor
to correct the distortion.
2. Any dispute arising therefrom shall be
settled through the NCMB and
3. If it remains unresolved after 10 days of
conciliation, it shall be referred to the NLRC.
-
Wage distortion is non- strikeable.
Is the employer legally obliged to try

& correct a wage distortion?
It appears so. Article 124 of the Code
provides that the employer and the union shall
negotiate to correct the distortions. If there is
no union, the employer and the workers shall
endeavor to correct such distortions.
Must the previous pay gaps be

restored?
While that is the aim, it need not
necessarily be restored to the last peso. An
appreciable differential, a significant pay gap
should suffice as correction of the distortion.
CHAPTER VII
ADMINISTRATION AND
ENFORCEMENT
ART. 128. VISITORIAL AND
ENFORCEMENT POWER
ART. 129. RECOVERY OF WAGES,
SIMPLE MONEY CLAIMS AND OTHER
BENEFITS
-
Under Art. 129, the Regional Director is

empowered through summary proceeding
and after due notice, to hear and decide
cases involving recovery of wages and other
monetary claims and benefits, including
legal interests.
REQUISITES :
1. The claim is presented by an employee or
person employed in domestic or household
service or househelper;
2. The claim arises from employer-employee
relations;
3. The claimant does not seek reinstatement;
and
4.
The aggregate money claim of each
employee or househelper does not exceed
P5, 000.00
-
Access to employers records and

premises
the day/night whenever work is being
undertaken therein
includes the right to copy therefrom,
to question any employee & investigate
any fact, condition or matter which may
be necessary to determine violations or
which may aid in the enforcement of the
Code and of any labor law, wage order,
or rules and regulations
Issue Compliance Orders (ART. 128)

based on the findings of labor
employment and enforcement officers or
industrial safety engineers made in the
course of inspection
Issue Writs of Execution (ART. 128)

for the enforcement of orders
except in cases where the employer
contests the findings of the said labor
officers and raises issues supported by
documentary proofs which were not
considered in the course of inspection.
Order Work Stoppage/Suspension of

Operations
when non-compliance with the law or
implementing rules and regulations
poses grave & imminent danger to the
health and safety of the workers in the
workplace.
Conduct Hearings within 24 hours
to determine whether an order for
stoppage
of
work/suspension
of
operations shall be lifted or not.
employer shall pay the employees
concerned their salaries in case the
violation is attributable to his fault
Require employers to keep and maintain
Employment Records
- as may be necessary in aid of his
visitorial and enforcement powers
ART 128
ART 129
1. Visitorial and
enforcement
power of the
Secretary of
Labor /his duly
authorized
representatives
exercised through
routine
inspections of
establishments
1. Power of the
Regional Director or
any duly authorized
hearing officers to
hear and decide
matters involving
the recovery of
wages, upon
complaint of any
interested party
2. requires the
existence of E-E
Relationship
2. E-E relationship not

necessary since it
should not include a
claim for
reinstatement
3. No limit as to
amount of claim
3. Aggregate claim of
each complainant
does not exceed
P5,000
4. Appeal is with
Sec.of Labor ;
period of appeal
is 10 calendar
days
4. Appeal with NLRC;

period of appeal is
5 calendar days
5. Person exercising
the power is the
Sec. Of Labor or
any of his duly
authorized
representatives
who may or may
not be a regional
director
5. The power is
vested upon a
regional director or
any duly authorized
hearing officer of
the DOLE.
TITLE III
WORKING CONDITIONS FOR
SPECIAL GROUP OF EMPLOYEES
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 in any :
1. Industrial undertaking between 10PM-6AM

2. Commercial/Non-Industrial
undertaking
between 12 MN-6AM
3. Agricultural undertaking at nighttime unless,
she is given a period of rest of not less than
9 consecutive hours
ART 131. EXCEPTIONS

1. Actual/Impending Emergencies
caused by serious accident, flood,
typhoon, 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
2. Urgent work to be performed on
machineries, equipment or installation, to
avoid serious loss
3. Work is necessary to prevent serious loss of
perishable goods
4. Where she holds a responsible position of
managerial/technical nature/engaged to
provide health and welfare service
5. Nature of the work requires the manual skill
and dexterity of women workers & cannot be
performed with equal efficiency by male
workers
6. Where women workers are immediate family
members of the family operating the
establishment or undertaking
7. Analogous cases
ART 132. FACILITIES FOR WOMEN
The Secretary of Labor may require
employers to:
1. Provide seats proper for women and permit
them to use the seats when they are free
from work or during office hours provided
the quality of the work will not be
compromised;
2. To establish separate toilet rooms and
lavatories for men and women and provide
at least a dressing room for women;
3. To establish a nursery in the establishment;
4. To determine appropriate minimum age and
other standards for retirement or termination
in special occupations such as those of flight
attendants and the like
1. Employee notified her employer of her

pregnancy of the probable date of her
childbirth
2. Full payment be advanced by the employer
within 30 days from the filing of the maternity
leave application
3. That payment of daily maternity benefits
shall be a bar to the recovery of sickness
benefits
4. That the maternity benefits shall be paid
only for the first four (4) deliveries or
miscarriages
5. That the SSS shall immediately reimburse
the employer of 100% of the amount of
maternity benefits advanced to the
employee by the employer
6. That if an employee member should give
birth or suffer a 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 time of the
pregnancy, the employer shall pay to the
SSS damages equivalent to the benefits
which said employee member would
otherwise have been entitled to.
-
ART 133 (b) subsists, i.e., the maternity

leave shall be extended without pay on
account of illness medically certified to arise
out of the pregnancy, delivery, abortion, or
miscarriage, which renders the woman unfit
for work , unless she has earned unused
leave credits from which such extended
leave may be charged.
LIMIT OF THE BENEFIT: Applies only for the

first four deliveries irrespective of who is the
father of the children, and may not be availed of
in addition to sickness benefit under the Social
Security program.
RA 8187 (PATERNITY LEAVE)
ART.
BENEFITS
133
MATERNITY
LEAVE
MATERNITY LEAVE UNDER THE SSS

LAW
A female member, who need not be
legally married, who has paid for at least three
(3) monthly contributions in the 12-month
period immediately preceding the semester of
her childbirth or miscarriage shall be paid a daily
maternity benefit equivalent to 100% of her
average daily salary credit for 60 days or 78
days, in case of caesarian delivery.
REQUISITES :
This law grants paternity leave of seven day

with full pay to all married male employees
in the private and public sectors.
- It is available only for the first four

deliveries of the legitimate spouse with whom
the husband is cohabiting.
DELIVERY includes childbirth, miscarriage, or

abortion.
Purpose: to enable the husband to lend support
to his wife during the period of recovery and/or in
the nursing of the newly born child.
CONDITIONS :
2.
1. he is an employee at he time of the delivery

of his child;
2. he is cohabiting with his spouse at the time
she gives birth or suffers a miscarriage;
3. he has applied for paternity leave ; and
4. his wife has given birth or suffered a
miscarriage
-
Paternity leave, if not availed of, is not

convertible to cash.
WIFE - refers to the lawful wife which means the

woman who is legally married to the male
employee concerned.
-
Where the male employee is already

enjoying the paternity leave by reason of
any law, decree, executive orders or any
contract, agreement or policy between
employer and employee and the existing
paternity benefit is greater, the greater
benefit shall prevail; if lesser, the
existing benefit shall be adjusted to the
extent of the difference.
ART
135.
PROHIBITED
-
3.
ART 136. STIPULATION AGAINST

MARRIAGE
- it shall be unlawful for an employer to require
as a condition for employment or continuation of
employment that a woman employee shall not
get married, or to stipulate expressly or tacitly
that upon getting married a woman employee
shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely
by reason of her marriage.
ART 138. CLASSIFICATION

CERTAIN WOMEN WORKERS
-
DISCRIMINATION
It shall be unlawful for any employer to

discriminate against any woman employee
with respect to terms and conditions of
employment solely on account of her sex.
Acts of Discrimination:
of equal value.
employee solely on the account of their
sexes.
Sexual Harassment in a Work-Related or

Employment Environment :
1.
the sexual favor is made as a

condition in the hiring or in the
employment,
re-employment
or
continued
employment
of
said
individual or in granting said individual
favorable
compensation,
terms,
conditions, promotions, or privileges;
or the refusal to grant the sexual favor
results in limiting, segregating or
classifying the employee which in
anyway would discriminate, deprive or
diminish employment opportunities or
otherwise adversely affect said
employee
OF
Any woman who is permitted to work or

suffered to work, with or without
compensation, in any night club, cocktail
lounge, massage clinic, bar or similar
establishment, under the effective control or
supervision of the employer for a substantial
period of time as determined by the
Secretary of Labor, shall be considered as
an employee of such establishment for
purposes of labor and social legislation.
CHAPTER II
EMPLOYMENT OF MINORS
a. Payment of a lesser compensation for work

b. Favoring a male employee over a female
the above acts would impair the

employees rights or privileges under
existing labor laws or
The above acts would result in an
intimidating, hostile, or offensive
environment (Sec. 3[a], RA No. 7877)
ART 139. MINIMUM EMPLOYABLE

AGE
-
Any person between ages 15 and 18 may

be employed in any non hazardous work.
Exception and condition on the

employment of a child below 15:
1. When the child works directly under the sole
responsibility of his/her parents or legal guardian
who employs members of his/her family only
under the following conditions:
a. employment does not endanger the
childs life, safety, health and morals
b. employment does not impair the childs
normal development
c. the parent/legal guardian provides the
child with the primary and/or secondary
education prescribed by DECS
2. Where the childs employment or participation

in public entertainment or information through
cinema, theater, radio, or television is essential,
provided that:
a.
b.
c.
employment
does
not
involve
advertisements
or
commercials
promoting
alcoholic
beverages,
intoxicating drinks, tobacco and its byproducts or exhibiting violence;
There is a written contract approved
by the DOLE; and
The conditions prescribed for the
employment of minors {above stated}
are met.
NONHAZARDOUS WORK OR UNDERTAKING

one where the employee is not exposed to any
risk which constitutes an imminent danger to his
safety and health.
HAZARDOUS WORKPLACES:
1. Where the nature of the work exposes the
workers
to dangerous environmental
elements, contaminants or work conditions;
2. Where the workers are engaged in
construction work, logging, fire-fighting,
mining, quarrying, blasting, stevedoring,
dock
work,
deep-sea
fishing,
and
mechanized farming;
3. Where the workers are engaged in the
manufacture or handling of explosives and
other pyrotechnic products;
4. Where the workers use or are exposed to
heavy or power-driven machinery or
equipment; and
5. Where the workers use or are exposed to
power-driven tools,
CHAPTER III
EMPLOYMENT OF HOUSEHELPERS
RIGHTS OF HOUSEHELPERS:
1. minimum cash wage
2. non-assignment to non- household work
3. opportunity for education: if under 18 (cause
of education part of compensation)
4. board/ lodging, medical attendance
5. just and humane treatment
6. indemnity for unjust termination of services
7. just causes for termination
8. right not to be required to work more than 10
hours a day
9. for days vacation each month
10. to regular wages if employed in industrial or
commercial or agricultural undertaking
11. funeral expenses must be paid by employer
if the househelper has no relatives with
sufficient means in the place where the head

of the family lives.
12. at least elementary education
13. employment certification
CHAPTER IV
EMPLOYMENT OF HOMEWORKERS
INDUSTRIAL HOMEWORK - a system of
production under which work for an employer or
contractor is carried out by a homeworker at his
home.
INDUSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
BOOK FOUR
HEALTH, SAFETY AND SOCIAL
WELFARE BENEFITS
TITLE I
MEDICAL, DENTAL AND
OCCUPATIONAL SAFETY
CHAPTER I
MEDICAL AND DENTAL SERVICES
ART 156. FIRST-AID TREATMENT
FIRST-AID TREATMENT adequate,
immediate, and necessary medical and dental
attention or remedy given in case of injury or
illness suffered by a worker during employment,
irrespective of whether or not such injury or
illness is work-connected, before
a more
extensive medical and/or dental treatment can
be secured.
FIRST AIDER any person trained and duly
certified as qualified to administer first aid by the
Phil. National Red Cross or by any other
organization accredited by the former.
TITLE II
EMPLOYEES COMPENSATION AND
STATE INSURANCE FUND
WORKMENS COMPENSATON- A general
and comprehensive term applied to those laws
providing for compensation for loss resulting
from the injury, disablement or death of a
workman through industrial accident, casualty or
disease.
COMPENSATION - Money relief afforded
according to the scale established under the
statute as differentiated from compensatory
damages recoverable in an action at law for
breach of contract or for tort.
WORKMENS
COMPENSATION
ACT
EMPLOYEES
COMPENSATION
LAW
1. There is a
presumption of
compensability
1. no presumption of
compensability
2. there is a
presumption of
aggravation
2. no presumption of
aggravation
3. there is a need for

the employer to
controvert the
claim within 14
days otherwise
he is deemed to
have waived the
right
3. no need for the

employer to
controvert
4. payment of
compensation
made by the
employer
4. payment of
compensation
made by SSS/GSIS
through the State
Insurance Fund
Conditions for an occupational

disease and the resulting disability or
death to be compensable :
1. The employees work must involve the risk
described therein
2. The disease was contracted as a result of
the employees exposure to the described
risks;
3. The disease was contracted within a period
of exposure and under such other factors
necessary to contract it;
4. There was no notorious negligence on the
part of the employee
DEATH or sickness
Loss of life resulting from injury
DISABILITY -Loss or impairment of a

physical or mental function resulting from injury
or sickness.
ART 164. DEFINITION OF TERMS.
DIRECT PREMISES RULE as a general

rule, the accident should have occurred at the
place of work to be compensable
EXCEPTIONS TO THE DIRECT

PREMISES RULE
1.
INGRESS- EGRESS/ PROXIMITY RULEwhen the employer is about to leave or

about to enter the premises of the employer
by way of the customary or exclusive means
of ingress or egress.
2.
GOING TO OR COMING FROM WORKwhen the injury occurred when the

employee is proceeding to or from his work
on the premises of the employer
must be a continuing act and has not
diverted therefrom by any other activity
and he has not departed from his usual
route to or from his workplace and if the
employee is on a special errand, it must
have been official and in connection with
his work.
INJURY - Any harmful change in the human

organism from any accident arising out of and in
the course of employment.
GROUNDS FOR AN INJURY TO BE

COMPENSABLE
1. the employee must have been injured at the
place where the work requires him to be
2. the employee must have been performing
his official functions
3. if the injury is sustained elsewhere, the
employee must have been executing an
order for the employer
4. the injury was not due to the employees
intoxication, willful intention to injure or kill
himself or another, notorious negligence or
otherwise prohibited under this Title.
SICKNESS - Any illness definitely accepted
as an occupational disease listed by the
Commission or any illness caused by
employment subject to proof that the risk of
contracting the same is increased by working
conditions.
3. EXTRA-PREMISES RULE (or the shuttle

bus rule) where the company provides the
means of transportation in going to or
coming from the place of work is liable to the
injury sustained by the employees while on
board said means of transportation.
4. SPECIAL
ERRAND RULE injury

sustained outside the company premises is
compensable if his being out is covered by
an office order or a locator slip or a pass for

official business.
5. DUAL PURPOSE DOCTRINE allows

compensation where a special trip would
have to be made for the employer if the
employee had not combined the service for
the employer with his own going or coming
trip.
6. SPECIAL ENGAGEMENT RULE covers

field trips, outings, intramurals and picnics
when initiated or sanctioned by the employer
2.
3.
4.
NOTORIOUS NEGLIGENCE deliberate act

of the employee to disregard his own personal
safety.
Is death through suicide compensable ?
As a rule NO. However as held in NAESS
vs. NLRC, the supreme court ruled that a self
inflicted death could be compensable if :
1. by agreement of the parties
2. The suicide/death is caused by a work
related or compensable illness or
disease.
7. POSITIONAL
AND
LOCAL
RISKS
DOCTRINE If an employee by reason of
his duties is exposed to a special or peculiar
danger from the elements, that is, one
greater than that to which other persons in
the community are exposed and an
unexpected injury occurs, the injury is
compensable
ART 173. EXTENT OF LIABILITY

-
Simultaneous recovery under the Labor

Code and the Civil Code cannot be made.
The action is selective and the employee
may either choose to file the claim under
either. But once the election is made, the
claimant cannot opt for the other remedy.
Simultaneous recovery under the LC and

the SSS can be made as per an advisory
opinion dated May 23, 1989 of Sec. Drilon
since PD 1921 has lifted the ban on
simultaneous recovery.
8. FORCE MAJEURE OR AN ACT OF GODwhen one in the course of his employment is

reasonably required to be at a particular
place at a particular time and there meets an
accident although one which any other
person then and there present would have
met irrespective of his employment.
CHAPTER II
COVERAGE AND LIABILITY
Willful intention to injure or kill himself or

another;
Notorious negligence; or
Unless otherwise provided by the LC
ECL applies to all employers, public or

private, and to all employees, public or
private
including
casual,
emergency,
temporary, or substitute employees.
STATE INSURANCE FUND: all covered

employers are required to remit to a common
fund a monthly contribution equivalent to one
percent of the monthly salary credit of every
covered employee. The employee pays no
contribution to the fund. Any agreement to the
contrary is prohibited.
Every employee is covered who is not over

60 years over 60 years of age or over 60
years of age if he had been paying
contributions prior to the age of 60
CHAPTER VI
DISABILITY BENEFITS
ART 168. COMPULSORY COVERAGE
ART 170.
COVERAGE
EFFECTIVE
DATE
OF
The employer is covered compulsorily from

first day of operation and the employee from
the first day of employment
ART 172. LIMITATIONS OF LIABILITY

-
1.
NO COMPENSATION can be obtained if the

injury, death or disability is a result of the
employees:
Intoxication;
DISABILITY CATEGORIES:
TEMPORARY TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period not exceeding 120 days
PERMANENT TOTAL - if as a result of the
injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
period exceeding 120 days
PERMANENT PARTIAL - if as a result of the
injury or sickness, the employee suffers a
permanent partial loss of the use of any part of

his body.
DEATH BENEFITS
-
The System shall pay to the primary

beneficiaries upon the death of the covered
employee an amount equal to his monthly
income benefit, plus ten percent thereof for
each dependent child, but not exceeding
five, beginning with the youngest and
without substitution. The income benefit
shall be guaranteed for five years.
DEPENDENTS:
1. the legitimate, legitimated, legally adopted or
acknowledged natural child who is
unmarried, not gainfully employed and not
over 21 years of age or over 21 years of
age provided that he is incapable of selfsupport due to a physical or mental defect
which is congenital or acquired during
minority
2. legitimate spouse living with the employee
3. the parents of said employee wholly
dependent upon him for regular support
LABOR RELATIONS LAW - Concerned with

the stabilization of relations of employer
and
employees and seeks to forestall and adjust
grievances through - the encouragement of
collective bargaining and the settlement of
labor
disputes
through
conciliation,
mediation and arbitration.
-
PARTIES TO LABOR RELATIONS

CASES:
1. The employees organization,
2. management, and
3. the public
The public is always to be considered in

disputes between labor and capital, and it
ahas been held that the rights of the
general public are paramount.
Labor relations policy under the LC is

embodied in Section 3 Article XIII of the
1987 Constitution which guarantees to all
workers their right among others to selforganization, collective bargaining and
negotiations, peaceful land concerted
activities including the right to strike in
accordance with law, and to participate in
policy and decision making processes
affecting their rights and benefits as may be
provided by law.
BENEFITS
1. for life to the primary beneficiaries,
guaranteed for five years
2. for not more than 60 months to the
secondary beneficiaries in case there are no
primary beneficiaries
3. in no case shall the total benefit be less that
P 15, 000.00
THE BENEFICIARIES ARE:

PRIMARY BENEFICIARIES
a. Dependent spouse until he remarries
b. dependent children ( legitimate, legitimated,
natural born or legally adopted)
SECONDARY BENEFICIARIES
a. Illegitimate
children
and
legitimate
descendants
b. parents, grandparents, grandchildren
BOOK FIVE
LABOR RELATIONS
ART. 212. DEFINITIONS

LABOR DISPUTE INCLUDES:
1. any controversy or matter concerning terms
or conditions of employment or
2. the association or representation of persons
in negotiating, fixing, maintaining, charging
or arranging the terms and conditions of
employment, regardless of whether the
disputants stand in the proximate relation of
employer and employee.
EMPLOYEE- shall not be limited to the
employees of a particular employer.
-
TITLE I
POLICY AND DEFINITIONS
ART 211. DECLARATION OF POLICY
Absent an employer-employee relation,

there is no labor relations to speak of.
it shall include any individual whose

work has ceased: as a result of or in
connection with any
current labor
dispute; or because of unfair labor
practice
If he has not obtained any other:

1. Substantially equivalent and
2. Permanent employment

Preliminary Title: Memory Aid in Labor Law

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SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW

7.Right to Participate in Policy &

EMPLOYER - one who employs the

EMPLOYEE - one who works for an

ART. 2. DATE OF EFFECTIVITY

ART 4. CONSTRUCTION IN FAVOR

The Labor Code took effect on November 1,

SEVEN (7) BASIC RIGHTS OF

the Code to the greater number of employees to

This rule is applicable if there is a doubt as

These laws should be interpreted with a

SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW

and promote the welfare of the members of the

Reservation of essential attributes of

There may be in one employer both

PURPOSE of the provision: intended to

MANAGEMENT RIGHTS: (CPST)

Right to conduct business

Thus, so long as management prerogatives

- The LC applies to all workers, whether

- The tenant derives

WORKER -any member of the labor force,

Share tenancy has been abolished

Under Art. 8, the land covered by operation

Present retention limits:

5 hectares per landowner and 3 hectares

1. Is at least 15 years of age; and

those covered by homestead patents

EMANCIPATION PATENT - is the title issued

PROHIBITION AGAINST ALIENATION

RECRUITMENT AND PLACEMENT - any act

ART 16. PRIVATE RECRUITMENT

ART 17. (POEA)

POEA has taken over the functions of the

ADJUDICATORY FUNCTIONS OF THE

involving employers, principals, contracting

Claims for death and burial benefits

- The basis for the award of backwages is the

The fact that the employee has signed a

valid any agreement to receive less

ART 18. BAN ON DIRECT-HIRING

RATIONALE OF THE PROHIBITION

Filipino workers hired directly by a

1. Guaranteed wages for regular

ART 22. MANDATORY REMITTANCE

program and their relatives within the 4th

ART 25. PRIVATE SECTOR

No license or authority shall be used

Licensees or holders of authority or their

Change of ownership or relationship of

All overseas landbased workers shall be

GROUNDS FOR DISCIPLINARY

12. Gunrunning or possession of deadly

ART 31. BONDS

Cash bond filed by applicants for license

ART 32. FEES TO BE PAID BY

Suspension or cancellation of licenses may

ART 34. PROHIBITED PRACTICES

A supplementary contract beneficial to

ART 35. SUSPENSION AND/OR

to charge or accept amount beyond