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Labor legislation – statues, regulations & jurisprudence governing relations bet capital
& labor, by providing for certain standards of terms & conditions of EENT or providing a
legal framework w/ikululiu;n w/c these terms & conditions & the EENT relationship may
be negotiated, adjusted & admcjjmmfinistered.
2 Divisions of Labor Legislation
1. Labor Standards – sets out thet minimum terms, conditions & benefits of EENT that
EERS must provide or comply w/ & to w/c EES are entitled as a matter of legal right.
- minimum requirements prescribed by existing laws, rules & regulations relating to
wages, hrs of work, cost-of-living allowance and other monetary & welfare benefits,
including occupational safety & health standards.
- material or substance to be processed
2. Labor Relations – defines the status, rights & duties and the institutional
mechanisms, that govern the indiv & collective interactions of EERS, EES, or their
- mechanism that processes the substance
Labor – physical toil although it does not necessarily exclude the application of skill
(thus ―skilled‖ & ―unskilled‖ labor)
Skill – the familiar knowledge of any art/science, united w/ readiness & dexterity in
execution/performance or in the application of the art/science to practical purposes.
Work – (broader than labor) – covers all forms of physical/mental exertion, or both
combined, for the attainment of some obj other than recreation/amusement per se.
Worker – (broader than EE) – may refer to self-employed people & those working in the
service & under the control of another, regardless of rank, title, or nature of work.
- any member of the labor force whether employed/unemployed
Employee – a salaried person working for another who controls or supervises the
means, manner or method of doing the work.
Labor Law & Social Legislation
Social legislation – includes laws that provide particular kinds of protection/benefits to
society in furtherance of social justice.

Social Justice as the Aim
Social justice – humanization of laws & the equalization of social & economic forces by
the State so that social justice in its rational & objectively secular conception may at
leas be approximated
- promotion of the welfare of the ppl, the adoption by the Govt of measures calculated
to insure economic stability of all the component elements of society through the

maintenance of proper economic & social equilibrium in the interrelations of the
members of the community, constitutionally, through the adoption of measures legally
justifiable, or extra-constitutionally, through the exercise of powers underlying the
existence of all govts.
1987 Consti: protects the rights of workers & promote their welfare
Basic rights of workers guaranteed by the Constitution
1. to organize themselves
2. to conduct collective bargaining/negotiation w/ mgt;
3. to engage in peaceful concerted activities, including to strike in accordance w/ law;
4. to participate in policy & decision-making processes affecting rights & benefits
Other Consti provisions that protect the Rs/promote the welfare of workers
-org even for govt EES.. No officer/Ee of the Civil Service shall be
protection as may be provided by law
Landless farmworkers may be resettled by the govt in its own agri estates.
women taking into acct their maternal functions, etc

justice & economic dev’t

may be considered for reemployment in the govt
Consti – prol-labor, but recognizes the indispensable role of the private sector,
encourages private enterprise and provides incentives to needed investments
Police Power as the Basis
- the power of the govt to enact laws, w/in Constitutional limits to promote the order,
safety, health, morals & general welfare of society
- power inherent in govt to protect itself & all its constituents, & for this purpose to hold
the govt immune so far as necessary, from any limitatins imposed in the past.
- An imposition of restraint upon liberty or property in order to foster the common

Birth of the LC
Blas Ople - father of the LC
LC – designed to be a dynamic & growing body of laws w/c will reflect continually the
lessons of practical application & experience
7 Principles Underlying the code
1. Labor relations must be made both responsive & responsible to national devt
2. Labor laws/labor relations during a period of national emergency must substitute
ional process w/c is
3. Laggard justice in the labor field is injurious to the workers, the EERS & the public;
labor justice can be made expeditious w/o sacrificing due process.
4. Manpower devt & EENT must be regarded as a major dimension of labor policy, for
there can be no real equality of bargaining power under conditions of severe mass
5. There is a global labor market available to qualified Filipinos, esp those who are
unemployed or whose EENT is tantamount to unemployment bcoz of their very little
6. Labor laws must command adequate resources & acquire a capable machinery for
effective & sustained implementation; when labor laws cannot be enforced, both EERS
& the workers are penalized, & only a corrupt few (those who are in charge of
implementation) may get the reward they don’t deserve.
7. There shld be popular participation in national policy-making through what is now
called tripartism.
Some Labor Laws before the Passage of the Code
-cash form

-hr labor law
Court of Industrial Relations (CIR)

– forbids commercial, industrial or agri enterprises to
open on any Sunday, Xmas Day, New Year’s Day, Holy Thurs & Good Friday.

– enumerated the just causes for terminating an
EENT w/o a definite period and allowed EERS to separate an EE by serving a 15-day
notice per yr of service or, by paying an equivalent separation pay.
Significance of Other Laws
1. Foreign Decisions – numerous LC provisions are substantially similar to the Industrial
Peace Act
2. The Civil Code – describes the nature of labor mgt relations:
―The relations bet capital & labor are not merely contractual. They are so impressed
are subj. to the special laws on labor unions, collective bargaining, strikes & lockouts,
closed shop, wages, working conditions, hrs of labor & similar subjs.‖ —Art 1700
―Neither capital nor labor shall act oppressively against the other, or impair the interest
or convenience of the public‖ –Art 1701.
3. RPC – punishes the use of violence or threats by either EER or EE.
4. Special Laws – (SSS law, GSIS law, Agrarian Reform law, the 13th-month pay law,
the Magna Carta for Public Health Workers)
Art 3. [Declaration of Basic Polici] The State shall afford protection to labor, promote
full EENT, ensure equal work opportunities regardless of sex, race or creed, and
regulate the relations bet workers & EERS. The State shall assure the rights of workers
to self-org, collective bargaining, security of tenure, and just & humane conditions of
Balanced Approach – shared responsibility. Worker & EER sectors are interdependent.
Art4. [Construction in Favor of Labor] All doubts in the implementation & interpretation
of the provisions of this Code, including its IRRs, shall be resolved in favor of labor.
Interpretation & Construction – policy is to extend the decree’s applicability to a greater
number of EES to enable them to avail of the benefits under the law (Liberal approach
is adopted)
Concern for the Lowly Worker – SC reaffirms its concern for the lowly worker who,
often at his EER’s mercy, must look up to the law for his protection. (Reason: the EER
stands on higher footing than the EE: (1,) There is greater supply than demand for
labor; (2) the need for EENT by labor comes from vital & even desperate necessity.)
Mgt Rights – entitled to respect & enforcement in the interest of simple fair play.
1. R to manage, control, and use his property & conduct business in a manner
satisfactory to himself (just discrimination in the rate of wages paid to the skillful & to
the unskillful, to the efficient & inefficient.)
2. R to prescribe rules (they become part of the contract of EENT)

3. R to select EES & to decide when to engage them, except as restricted by statute or
valid contract, at a wage & under conditions agreeable to them.
4. R to transfer & discharge EES in order to minimize expenses & to insure stability of
the business & even to close the business, provided it is done in good faith & due to
causes beyond control.
Art 5. [Rules & Regulations] the DOLE & other govt agencies charged w/ the
administration & enforcement of this Code or any of its parts shall promulgate the
necessary IRRs. Such RRs shall become effective 15 days after announcement of their
adoption in the newspapers of gen. circulation.
Art 6. [Applicability] All Rs & benefits granted to workers under this Code shall, except
as may otherwise be provided herein, apply alike to all workers, whether agricultural or
- also applies to a govt corp incorporated under the Corporation Code.

- Test WON a govt-owned/-controlled corp is subj to CS Law is the manner of its
creation. Govt corps created by special charter are subj to its provisions, while those
incorporated under the gen Corp Law are not w/in the coverage of the CS law.
-EDC –

– Ees covered by CS Law
Art 7 [Statement of Objectives] … it has become imperative to start reformation w/ the
emancipation of the tiller of the soil from his bondage.
Art 8: [Transfer of Lands to Tenant-workers] … tenant-farmers on private agri lands
primarily devoted to rice & corn under a sys of share crop or lease tenancy whether
classified as landed estate or not shall be deemed owner of apportion constituting a
family-size farm of 5 hectares if not irrigated & 3 hectares if irrigated..
In all cases, the landowners may retain an area of not more than 7 hectares if such
landowner is cultivating such area or will now cultivate it.
Art 9. [Determination of Land Value] For the purpose of determining the cost of the
land to be transferred to the tentant-farmer, the value of the land shall be equivalent to
2 & ½ times the average harvest of 3 normal crop yrs immediately preceding the
promulgation of PD 27 (OCT 21, 1972).
The total cost of the land, including interest at the rate of 6% per annum, shall be pd
by the tenant in 15 yrs of 15 equal annual amortizations.

Lands not covered . The govt shall guarantee such amortizations w/ shares of stock in govt-owned & controlled corps. Compensation scheme: Sec 18 of CARP: Title to all expropriated properties shall be transferred to the State only upon full payment of compensation of their respective owners. infrastructure. & soil fertility as determined by the Presidential Agrarian Reform Council (PARC).In case of default. Retention Limits – own/retain directly/indirectly. terrain. [Implementing Agency] The Dept of Agrarian Reform shall promulgate the necessary rules & regulations to implement the provisions of this Chapter. the Code of Agrarian Reforms & other existing laws & regulations. subj to the ff qualifications: (1. Title to the land acquired pursuant to PD 27 or the Land Reform Program of the Govt shall not be transferable except by hereditary succession or to the Govt in accdance w/ the provisions of PD 27. the amortizations due shall be pd by the farmers’ cooperative in w/c the defaulting tenant-farmer is a member. the size of w/c shall vary accdg to factors governing a viable family-sized farm. Art 11. Art 10. and (2) he is actually tilling the land or directly managing the farm. any public/private agri land. put the agricultural leasehold sys in its stead. [Conditions of Ownership] No title to the land acquired by the tenant-farmer under PD 27 shall be actually issued to him unless & until he has become a full-fledged member of a duly recognized farmers’ coop. subj to such priorities & reasonable retention limits as the Congress may prescribe. *Land for the landless – battlecry dramatizing the increasingly urgent demand of the dispossessed for a plot of earth as their place under the sun. Provided further. Share tenancy – abolished. that landowners whose lands have been covered b PD 27 shall be allowed to keep the area originally retained by them thereunder. 3 hectares – may be awarded to each child of the landowner. that orig homestead grantees or direct compulsory heirs who still own the org homestead at the time of the approval of this Act shall retain the same areas as long as the continue to cultivate said homestead.State shall undertake an Agrarian Reform Program. w/ the coop having a right of recourse against him. geared towards eventual ownership of land by its tillers Consti . *CARP Law – signed by Cory. Provided. such as commodity produced. declaring full land ownership in favor of the beneficiaries of the PD 27.) he is at least 15 y/o. and encourage & undertake the just distribution of all agri lands.

Residential Subdivisions – not considered agricultural. ―An Exploited Class‖ – J.2 kinds of funds: (1) the Revenue – w/c is over & above what is necessary for the maintenance. They are covered by the agrarian reform prog of the State. Livestock. Lands obtained through homestead patent: Homestead Act – gives a needy citizen a piece of land where he may build a modest house for himself & family & plant what is necessary for subsistence & for the satisfaction of life’s other needs.superior over the rights of tenants 2.Overseas workers constitute an exploited class. The increase of revenue & stock is the increase of national wealth. Reynato Puno . the revenue & stock of every country and cannot increase w/o it. and then for only a very short time. ―9% of Filipinos are Based Overseas‖—Ph Star RA 6657 Comprehensive Agrarian Reform Program . ―The Greatest Blessing…The Worst Crime‖ – Frederick Taylor . . and (2) the Stock – w/c is over & above shat is necessary for the EENT of their increased output invariably gives more work to more men.unemployment is the greatest exploiter of labor. diminished by the number of men at work in any trade ―The Greatest Exploiter‖ – Blas Ople . poultry & Swine raising lands: Sec 2 of RA 6657 w/c includes ―private agri lands devoted to commercial livestock. poultry & swine raising‖ in the definition of ―commercial farms‖ is invalid. Mass unemployment tends to leave the EER all-powerful and the worker defenseless ―More Capital Means More Jobs‖ – Adam Smith . An agricultural leasehold cannot be established on land w/c has ceased to be devoted to cultivation or farming bcoz of its conversion into a residential subd. 3. Their unfortunate circumstance makes them easy prey to avaricious EERs. & never in the history of the world has it more than temporarily. They will work under subhuman conditions & accept salaries below the minimum.1.

labor admin. incl. w/ due regard to the rights of landowners to just compensation & to the ecological needs of the nation Basis: the R of farmers & regular farm workers. org. planting of crops. to farmers & regular farm workers who are landless. to Rs of beneficiaries) Definitions 1. traditional & pioneering crops esp those for export (subj. who are landless. the harvesting of such farm products. to include the totality of factors & support services designed to lift the economic status of the beneficiaries and all other arrangemts alternative to the physical redistribution of lands (production or profit-sharing. .shall encourage the formation & maintenance of economic-sized family farms to be constituted by indiv beneficiaries & small landowners .Shall provide incentives to landowners to invest the proceeds of the agrarian reform prog to promote industrialization. to receive a share of the fruits thereof The State: . production. Agricultural Enterprise or Agricultural Activity – the cultivation of the soil. distribution of shares of stock) 2. in the case of other farm workers. & mgt of the program & shall provide support to agriculture though tech & research & financial. adequate financial. Agrarian Reform – the redistribution of lands. as well as cooperatives & other independent farmers org.shall protect offshore fishing grounds of subsistence fishermen against foreign intrusion.shall protect the Rs of subsistence fishermen to the preferential use of communal marine & fishing resources both inland & offshore . to participate in the planning. EENT & privatization of pub sector enterprises . irrespective of tenurial arrangemt.Aim: A more equitable distribution & ownership of land.May lease undeveloped lands of pub domain to qualified entities for the devt of capital-intensive farms. Agriculture. production & marketing assistance .owners of agri land have the oblig to cultivate directly or thru labor admin the lands they own & thereby make the land productive. marketing & other support services . Fisherworkers shall redeive a just share from their labor in the utilization of marine & fishing resources .may resettle landless farmers & farm workers in its own agricultural estates . farm workers & landowners.shall provide support to such fishermen thru appropriate tech & research. to own directly or collectively the lands they till or. growing of fruit trees. regardless of crops/fruits produced.shall respect the R of small landowners & shall provide incentives for voluntary landsharing .shall recognize the R of farmers. & other farm activities .

other lands of the pub domain suitable for agriculture 1. human. over lands devoted to agri .including controversy relating to compensation of lands acquired under this Act & other terms & conditions of transfer of ownership from landowners to farm workers. fixing. commercial or industrial land 4. one vote. technological. maintaining.but does NOT include land that has become permanently or regularly devoted to nonagricultural purposes . whether leasehold. Agrarian Dispute – any controversy relating to tenurial arrangements.does NOT include land w/c has become unproductive by reason of force majeure or F event 6. and NOT classified as mineral. Farmer – a natural person whose primary livelihood is cultivation of land or the production of agri crops either by himself. Regular Farmworker – a natural person who is employed on a permanent basis by an agricultural enterprise or farm 9.including disputes concerning farm workers assocs. residential. or primarily w/ the assistance of his immediate farm household. forest. tenants & other agrarian reform beneficiaries 5. Season Farmworker – a natural person who is employed on a recurrent. whether the land is owned by him. tenancy. changing or seeking to arrange terms of conditions of such tenurial arrangements . All alienable & disposable lands of the pub domain devoted to or suitable for agriculture 2. Scope: all public & private agricultural lands.3. or representation of persons in negotiating. incl. stewardship or otherwise. Agricultural land – land devoted to agricultural activity. tilled or developed to produce any crop nor devoted to any specific economic purpose continuously for a period of 3 yrs immediately prior to the receipt of notice of acquisition by the govt . All other lands owned by the Govt devoted to or suitable for agri . Idle / Abandoned Land – any agricultural land not cultivated. Cooperatives – orgs composed primarily of small agri producers. periodic or intermittent basis by an agricultural enterprise or farm h. farmers. or by another person under a leasehold or tenancy agreement 7. Farmworker – a netural person who renders service for value as an EE or laborer in an agricultural enterprise or farm 8. farmworkers or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land. w/ the same Rs & duties as a natural person. ( a juridical person may be a member of a coop. financial or other economic resources & operated on the principle of one member. All lands of the pub domain in excess to the specific limits as determined by Congress 3.

the size of w/c shall vary accdg to factors governing a viable family-sized farm . .the original homestead grantees or direct compulsory heirs who still own the orig homestead shall retain the same areas as long as they continue to cultivate said homestead case the area selected by landowner is tenanted. lands in the actual. . assocs. be a beneficiary of the same. devoted to existing & operational agribusiness or agroindustrial enterprises. Presidental Agrarian Reform Council (PARC) – shall provide the implementing rules . any pub or private agricultural land. Provided. operated by multicorps shall be programmed for acquisition & distribution immediately upon effictivity Ancestral Lands – shall include. may declare certain provinces/regions as priority land reform areas Multinational Corps – all lands of the pub domain leased. the tenant shall have the option whether to remain therein. he shall be considered a leaseholder & shall lose his R as a leaseholder to the land retained by the landowner. mgt contract or transfer of position of private lands executed by the orig landowner in violation of this Act shall be null & void. held. that is 15y/o. and other lands owned by the govt.Upon Act’s effectivity. directly.3 hectares: each child of landowner. or possessed by multi corps or assocs. but not limited to. disposition. The tenant must exercise this option w/in 1 yr fr the time the landowner manifests his choice of the area for retention. that those executed prior to this Act shall be valid only when registered w the Reg of Deeds w/in 3 months after effectivity. or govt-owned/-controlled corps. any sale.4. lease.landowner may retain only 5 hectares. institutions or entities. and is actually tilling the land or directly managing the farm .upon recommendation by the Provincial Agrarian Reform coordinating Committee. provided that the Torrens System shall be respected . or another agri land w/ similar/comparable features. All private lands devoted to or suitable for agri regardless of the agri products raised/can be raised thereon Schedule of Implementation: w/in 10 yrs from effectivity Retention Limits: no person may own or retain. (b) in case the tenant chooses to remain in the retained ares.landowners whose lands have been covered by PD 27 shall be allowed to keep the area originally retained by them thereunder . continuous & open possession & occupation of the community and its members.

in the autonomous regions. directly & exclusively used & found to be necessary for national defense. incl experimental farm stations operated by pub/private schools for educational purposes. Lands actually. penal colonies & penal farms actually worked by inmates. upon receipt of the landowner of the payment. 2. watersheds and mangroves 2. the DAR shall take immediate possession of the land & shall request the Register of Deeds to issue a TCT in the name of the RP. landowners shall inform the DAR of his acceptance/rejection of the offer. or in case of rejection or no response fr the landowner. upon the deposit w/ an accessible bank or the compensation. DAR shall send its notice to acquire the land to the owners. got & private research & quarantine centers Procedure for Acquisition of Private Lands 1. directly & exclusively used for parks. directly & exclusively used for prawn farms & fishponds (provided that said prawn farms & fishponds have not been distributed and Cert of Land Ownership Award issued to ARP. Exemptions & Exclusions 1. After having identified the land.shall be protected to ensure their economic. forest reserves. the LBP shall pay the landowner of the purchase price of the land w/in 30 days after he executes & delivers a deed of transfer in favor of the Govt and surrenders the Cert of Title b. school sites & campuses. wildlife. if landowner accepts the offer. in case of rejection or failure to reply. DAR shall conduct summary admin proceedings to determine compensation of the land 3. a. communal burial grounds & cemeteries.cost of acquisition of the land . seeds and seedlings research and pilot production center. 3. 4. social & cultural well-being . mosque sites & Islamic centers appurtenant thereto. church sites & convents apputenat therety. fish sanctuaries and breeding grounds. this Act and other national laws. Private lands actually. reforestation. the landowners & beneficiaries.. the respective legislature may enact their own laws on ancestral domain subj to the provisions of the Consti. Lands actually. Any party who disagrees w/ the decision may bring the matter to the court Determination of Just Compensation . w/in 30 days from date of receipt.

Seasonal farmworkers 4. Collective or cooperatives of the above beneficiaries 7. that the children/spouse of the transferor shall have a R to repurchase the land fr the govt/LBP w/in 2 yrs Standing crops at the time of acquisition – shall be retained by the landowner. Other farm workers 5. infrastructure devt & pub works projects 3. Regular farmworkers 3. tax declarations assessment made by the govt assessors Incentives for voluntary offers of sale – addt’l 5% cash Priority of Qualified Beneficiaries 1. Agricultural lessees & share tenants 2. Dar shall give a reasonable time to harvest the same Corporate Farms .pending final land transfer Support Services 1. govt subsidies for the use of irrig facilities . Actual tillers/occupants of public lands 6. Others directly working on the land *Provided: children of landowners who are qualified shall be given preference in the distribution of the land of their parents *Provided further: actual tenant-tillers in the landholding shall not be ejected/removed therefrom. Transferability of Acquired lands by beneficiaries – may not be sold. transferred or qualified beneficiaries for 10 yrs * case land cannot be divided directly. irrigation facilities 2. shall be owned collectively by the workerbeneficiaries who shall form a workers cooperative or assoc w/c will deal w/ the corp . actual used and income the sworn valuation by the owner.indiv members of the coop shall be provided w/ homelots or small farmlots for their family use taken fr the land owned by the coop Production-sharing . its nature.- current value of like properties.

Implementation of the prog shall be community-based . Rural women – women who are engaged directly/indirectly in farming and/or fishing as their source of livelihood.RA 9700 – Act Strengthening the CARP. extending the acquisition & distribution of all agricultural lands. pub parks & brgy plazas or squares consistent shall not be subj to the 5-hectare retention limit Order of Priority .3 hectares each to the 1st 2 beneficiaries .State may. Landless beneficiary – one who owns less than 3 hectares of agri land Added Exception to Retention Limits . caring for the children. instituting necessary reforms.State shall protect Filipino enterprises against unfair foreign competition & trade practices .Provincial. & other similar activities 2.Answer: simultaneous industrialization aimed at developing a self-reliant & independent national economy effectively controlled by Filipinos . resettlement sites. be distributed to other beneficiaries Payment by Beneficiaries – payable to LBP in 30 annual amortizations at 6% interest per annum Support shall be extended equally to women & men beneficiaries . amending for the purpose certain provisions of RA 6657 . such as roads & bridges. city & mun govt units acquiring private agri lands by expropriation to be used for actual.State shall recognize & enforce the Rs of rural women to own & control land . whether paid or unpaid.State recognizes that there is not enough agricultural land to be divided & distributed to each farmer & regular farmworker so that each one can own his economic-size family farm. . in the interest of national welfare or defense.State shall provide incentives to landowners to invest the proceeds of the agrarian reform prog to promote industrialization. shall the remaining portion of the landholding. establish & operate vital industries . school sites. direct & exclusive pub purposes. regular or seasonal. if any. EENT & privatization of the pub sector enterprises Added Definition 1. or in food preparation.only when these beneficiaries have rcvd 3 hectares each. local govt facilities. pub markets. managing the household.

under the leasehold tenancy system For a tenancy relationship to exist.000. his tenancy rights were succeded by his son.000.000 to respondent Felix Sia. petitioners are barred by estoppel. They alleged that they were fooled into signing over their tenancy rights thru the machinations of the Aragons. only Francisco possesses the requisites of a tenant. and Federico (Francisco’s brother). all of the ff essential requisites must be present: 1) the parties are the landowner & the tenant 2) the subj matter is agricultural land 3) there is consent bet the parties 4) the purpose is agricultural production 5) there is personal cultivation by the tenant 6) there is sharing of the harvests bet the parties Under the definition. afterwhich. or possessed by another. w/ the latter’s consent for purposes of production. ners filed a protest before the DAR alleging that they are the tenants of the lands and claimed that they are entitled to a disturbance compensation. cultivates the land belonging to. petitioner Francisco Landicho (the other petitioners were Buenaventura (Francisco’s son). who in turn converted the same to a residential subd w/o a DAR clearance and ejected the petitioners therefrom. helped him cultivate the land he Aragons through a notarized ―kasulatan‖ for a consideration of P1. Petitioners Federico and Buenaventura are not tenants because consent (#3) by the landowners is . Aragons for P50.Facts: Landicho from 1949 until his death in 1972. or paying to the landholder a price certain or ascertainable in produce or in money or both. sharing the produce w/ the landholder under the share tenancy system. laches and prescription Issue 1: WON petitioners are tenants of the land Held: A tenant is defined as a person who. but petitioners continued cultivating the land until 1987 when Francisco executed another notarized ―kasulatan‖ thru w/c he surrendered his tenancy rights for a consideration of P3. himself and w/ the aid available from w/in his immediate farm household.

Final ruling: Petitioners have no cause of action and the same has prescribed. of the respondent bank and took over the control & mgt of the bank and renamed it as GSIS Family Savings Bank. Facts: he had been promoted repeatedly up to 1998 when he was temporarily assigned as caretaker of the bank and designated as Acting Asst. 1983-84. because the Kasulatan was in Filipino. appointment as Acting Asst VP was retained. it underwent serious liquidity problems and was placed under receivership by the Central Bank. There was also no evidence to show that they gave a share of their harvest to the Aragons (#6). Such kasulatan was also duly notarized and are considered as public documents executed w/ all the legal formalities which afford it the legal presumption of regularity and legality abent full. the respondent bank adopted measures. They are merely farm helpers of Francisco as part of his immediate farm household. a language spoken & understood by Francisco and was couched in plain and clear terms. the respondent bank was reopened under the control & mgt of Comsavings Bank. 13th month pay & retirement benefits before the Labor Arbiter. After 2 months. one of w/c is an early retirement program. which ordered its closure in July of 1984. . VP and OIC in June of 1998. He alleged discrimination & unfair treatment. There was no showing of foul play. Issue 2: WON the respondents took advantage of Francisco’s old age & illiteracy and employed fraudulent schemes in order to deceive him into signing the Kasulatans Held: As the legal tenant of the lands. and intense pressure on the part of the resp bank forced him to retire at the prime of his life. Francisco had voluntarily surrendered his tenancy rights when he knowingly & freely executed the 1987 Kasulatan. olicy to attain financial stability. clear and convincing evidence to the contrary. & underpayment of wages. Issue 1: WON there was constructive dismissal Held: No.342M as retirement pay. (supposedly under protest) & received the amt of P1.lacking.

insensibility or disdain by an EER may become so unbearable on the part of the EE so as to foreclose any choice on his part except to resign Petitioner claims he was discriminated against as new hires were given higher salaries than he was receiving. It is the policy of the State: 1. and (2) persons belonging to the same class have not been treated alike Petitioner failed to established that he possessed the same skills. While the state promotes the utmost protection of labor against capital. it does not mean that the working class is upheld in all labor dispute. as an offer involving a demotion in rank & a dimunition in pay. competencies & expertise as those newly hired to eliminate the possibility of substantial distinction that may warrant unequal treatment bet them. It must be clearly established that (1) there is no reasonable distinction for classification that can be obtained bet persons belonging to the same class. Petitioner contends that in cases of constructive dismissal. 3. to protect every citizen desiring to work locally/overseas by securing for him the best possible terms and condition of employment. It was him who availed of the voluntary retirement program. unreasonable or unlikely. the burden of proof rests on the EER to show that the EE was dismissed on a valid & just cause. But this legal principle presupposes that there is indeed an involuntary separation from EENT & the facts attendant to such forced separation was clearly established. to facilitate & regulate the movement of workers in conformity w/ the national interest. The law also recognizes the rights of management. to promote and maintain a state of full employment through improved manpower training. 4.Constructive dismissal – quitting because continued EENT is rendered impossible. including the establishment of a registration and/or work permit system. the presumption is that it was done by him voluntarily. And absent the showing of duress. to facilitate a free choice of available employment by persons seeking work in conformity with the national interest. allocation and utilization. PRE-EMPLOYMENT Art 12. . to regulate the employment of aliens. 2. w/c the petitioner failed to do. 5. May also mean an act of clear discrimination. Discrimination – failure to treat all persons equally when no reasonable distinction can be found bet those favored & those not favored.

3. coordinating and administrative entity of the Executive branch of the govt in the field of labor and employment Its Primary responsibilities: 1. 7. locally/overseas without charging. whether for profit or not: provided. locally or abroad. The DOLE .6. to serve national development objectives. or procuring workers and includes referrals. locally and Administrative Code of 1987 (EO 292) . offers or promises for a fee EENT to 2/more persons shall be deemed engaged in recruitment & placement Private fee-charging EEnt Agency – any person/ entity engaged in the recruitment & placement of workers for a fee w/c is charged directly/indirectly from the workers or employers or both License – a document issued by the DOLE authorizing a person/entity to operate a private EENT agency Private recruitment entity – any person/assoc engaged in the recruitment & placement of workers. 2. hiring. equitable and stable EENT. The advancement of workers’ welfare by providing for just and humane working conditions and terms of EENT. to strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and placement of workers. The maintenance of industrial peace by promoting harmonious. directly/indirectly any fee from the workers or employers. contract services. Definitions Worker – any member of the labor force whether employed or unemployed. Authority – a document issued by the DOLE authorizing a person/assoc to engage in recruitment & placement activities as a private recruitment entity Seaman – any person employed in a vessel engaged in maritime navigation Overseas EENT – EENT of a worker outside the PH . promising or advertising for EENT. programming. transporting. relations that assure protection for the Rs of all concerned parties. enlisting.the primary policy-making. to insure careful selection of Filipino workers for overseas employment in order to protect the good name of the PH abroad. Recruitment & placement – any act of canvassing. in any manner. that any person or entity w/c. contracting. RECRUITMENT & PLACEMENT OF WORKERS Art 13. utilizing. The promotion of gainful EENT opportunities and the optimization of the devt & utilization of the country’s manpower resources.

To develop a labor market information system in aid of proper manpower and development planning. to require any person. to organize & establish a nationwide job clearance & information system to inform applicants registering w/ a particular EENT office of job opportunities in other parts of the country as well as job opportunities abroad. 3. org. to organize & establish new EENT offices in addition to existing EENT offices under the DOLE as the need arises. locally & overseas. worker or otherwise. who emigrates to a foreign country by virtue of an immigrant visa or resident permit to its equivalent in the country of destination Art 14. EMPLOYMENT PROMOTION The Sec of Labor shall have the power & authority: 1. 3. 2. BUREAU OF EMPLOYMENT SERVICES (now BLE) . To establish & maintain a registration and/or licensing system to regulate private sector participation in the recruitment & placement of workers.primarily responsible for developing & monitoring a comprehensive EENT program. and to secure the best possible terms & conditions of EENT for Filipino contract workers and compliance therewith under such rules & regulations as may be issued by the DOLE. Bureau of Local Employment (BLE) – assigned the effective allocation of manpower resources in local Ph Overseas Employment Administration (POEA) – for overseas employment Art 15. . To formulate & develop EENT programs designed to benefit disadvantaged groups & communities. to develop & organize a program that will facilitate occupational industrial and geographical mobility of labor and provide assistance in the relocation of workers from one area to another. 5. To establish & maintain a registration and/or work permit system to regulate the EENT of aliens.Emigrant – any person. Powers & Duties: 1. and 4. or institution to submit such EENT information as may be prescribed by the Sec of Labor. To formulate & develop plans & programs to implement the EENT promotion objectives of this Title. establishment. 4. 2.

and created POEA – made licensing of local recruitment agencies and the issuance of work permits to non-resident aliens and EENT registration certificates to resident aliens a function of the regional offices of DOLE – required the establishment of a Public Employment Service Office (PESO) in capital towns. cities and other strategic areas o PESO .Special program for EENT of students (SPES) during summer or semestral breaks . a program w/c requires the DPWH and private contractors to hire 30% of skilled and 50% unskilled labor requirements from the area where the project is being undertaken . whenever the DOLE deems it appropriate. The decisions of the NLRC shall be final & unappealable.Hiring of workers in infrastructure projects (WHIP) – created WHIP.Regularly obtains lists of job vacancies from EERS.Special credit assistance for placed overseas workers .serves as EENT service & information center . Minister of Labor – has the power to impose & collect fees. Such fees shall be deposited in the National Treasury as a special acct of the General Fund. livelihood and self-employment bazaars . invites and evaluates applicants. exercise such power. in the case of the NCR. and refers them for probable hiring . and 7.Provides training and educational guidance and EENT counseling services . publicizes them. based on rates recommended by the BES. thet the Bureau of Employment Services (BES) (now BLE) may. except seamen Original & Exclusive Jurisdiction of the regional offices of DOLE . To develop a responsible vocational guidance & testing system in aid of proper human resources allocation. The decisions of the regional offices of the BES if so authorized by the Sec of DOLE shall be appealable to the NLRC upon the same grounds provided in Art 233 hereof. – replaced BES w/ BLE.over all matters/cases involving EE-EER relations including money claims.Work appreciation seminars & conferences and .6. arising out of or by virtue of any law or contracts involving Filipino workers for overseas EENT except seamen: Provided. To maintain a central registry of skills.Also renders special services to the public such as holding of jobfairs. for the promotion of the objectives of the BES. subj to the provisions of Sec 40 of PD 1177.

. The POEA 6. is engaged or has been engaged in a renumenerated activity in a country of which he/shee is not a legal resident 2 Classifications 1. 2.Art 16. Other persons/entities as may be authorized by the Sec of DOLE Art 17. Construction contractors if authorized to operate by DOLE and the Construction Industry Authority 7. Sea-based – those employed in a vessel engaged in maritime navigation Principal Functions of the POEA 1. in coordination w/ appropriate entities concerned. shall engage in the recruitment & placement of workers. Formulation. Shipping or manning agents or representatives 5. 3. Private EENT agencies 4. when necessary. Land-based – contract workers other than a seaman including workers ingaged in offshore activities whose occupation requires that majority of his working/gainful hrs are spent on land 2. Deployment of Filipino workers through govt-to-govt hiring Regulatory Functions 1. 1. Protection of their rights to fair and equitable employment practices. 2. a system for promoting and monitoring the overseas EEnt of Filipino workers taking into consideration their welfare and the domestic manpower requirements. Private recruitment entities 3. Members of the diplomatic corps although hirings done by them have to be processed through the POEA 8. Formulate & implement. Regulate private sector participation in the recruitment & overseas placement of workers through its licensing and registration system. Public EEnt offices 2. implementation and monitoring of overseas employment of Filipino workers. PRIVATE RECRUITMENT: GR: No person/entity other than the public EENT offices. OVERSEAS EMPLOYMENT DEVT BOARD POEA – has taken over the functions of the Overseas Employment Development Board (OEDB) and the National Seamen Board (NSB) OFW – a Filipino worker who is to be engaged.

4. Commission of a felony punishable by Ph laws or by the laws of the host country. esp where the laws of the host country prohibit intoxicating drinks. principals. POEA is an administrative (not a court). and such other employers as public interest may require. involving or arising out of violations of rules & regulations relating to licensing & registration of recruitment and employment agencies/entities. Desertion or abandonment. Instruct and guide the workers how to assert their rights and provide the available mechanism to redress violation of their rights. contracting partners and Filipino migrant workers. and 2. Administrative cases involving violations of licensing rules & regulations and registration of recruitment and EEnt agencies/entities.3. 3. Drunkenness. Where the PH has concluded Bilateral labor agreements or arrangements. involving EERS. Gambling. exercising adjudicatory or quasi-judicial functions 4. involving employers. Drug addiction/possession or trafficking of prohibited drugs. c. 5. 4. Jurisdiction of POEA 1. and 2. contracting partners and Filipino migrant workers 3. disciplinary action cases and other special cases w/c are administrative in character. 6. . deploy only to countries: a. esp where the laws of the host country prohibits the same. NO jurisdiction to enforce foreign judgment (must be brought before the regular courts). principals. Initiating/joining a strike or work stoppage where thelaws of the host country prohibit strikes or similar actions. NO jurisdiction over torts Grounds for Disciplinary Action 1. Guaranteeing to protect the rights of Filipino migrant workers. all cases w/c are administrative in character. Inform migrant workers not only of their rights as workers but also of their rights as human beings. b. Adjudicatory Functions 1. In the recruitment & placement of workers to service the requirements for trained and competent Filipino workers of foreign govts and their instrumentalities. Disciplinary action cases and other special cases w/c are administrative in character. 5. 2. Creating trouble at the worksite or in the vessel. 7. Observing and/or complying w/ the international laws and standards of migrant workers.

EERS will be ordered to pay their salaries corresponding to the unexpired portion of their EENT contract Pretermination Under RA 8042 A worker dismissed from overseas EENT w/o just cause as defined by law/contract is entitled to ―full reimbursement of his placement fee w/ interest at 12% per annum. Theft/robbery. or caused to be. Prostitution. 2. or 3. The salary of such official who fails to render his decision/resolution w/in the prescribed pd shall be. 9. and 14. 10. and afforded a formal investigation where he can defend himself or thru a representative before he can be dismissed & disembarked. The EER is required to furnish him w/ 2 notices: (1) written notice of charge. Vandalism or destroying company property. Embezzlement of company funds or of moneys and properties of a fellow worker entrusted for delivery to kins or relatives in the PH.8. 12. Dismissal w/ disqualification to hold any appointive public office for 5 yrs EER/EE Relations Cases Premature Termination of Contract If EE is terminated before end of contract w/o just cause. Violation/s of the laws and sacred practices of the host country and unjustified breach of govt-approved EENT contract by a worker COMPROMISE AGREEMENT -consistent w/ the policy encouraging amicable settlement of labor disputes Sec 10 of RA 8042 allows resolution by compromise of cases filed w/ the NLRC . plus the salary for the unexpired portion of their EENT contract.any compromise agreement on money claims inclusive of damages shall be paid w/in 4 months from the approval of the settlement Penalties for Non-compliance of the mandatory period for resolution of cases 1. and (2) written notice of dismissal Contracted but not Deployed: Perfected Contract . Unjust refusal to depart for the worksite after all employment and travel documents have been duly approved by the approp govt agency/ies. Gunrunning or possession of deadly weapons. Due Process required to terminate employment Ex: in case of seamen – must be given written notice of the charges against him. withheld until such official complies therewith. 11. Suspension for not more than 90 days. 13.

If caused by an injury/sickness it shall not be paid longer than 120 cons injury/sickness still requires medical attendance beyond 120 days but not to exceed 240 days from onset of disability in w/c case benefit for temporary total disability shall be paid.entitled to death benefits if death occurs during the term of his contract of employment. In disability compensation. even if death is not workDisability – loss or impairment of a physical or mental function resulting from injury/sickness Permanent disability – the inability of a worker to perform his job for more than 120 days. entities and/or their principals. DOLE 3. In case of differing medical assessment a. or any kind of work w/c a person of his mentality and attainments could do. regardless of WON he loses the use of any part of his body Total Disability – disablement of an EE to earn wages in the same kind of work of similar nature that he was trained for or accustomed to perform. but rather it is the incapacity to work resulting in the impairment of one’s earning capacity Disability benefits by seamen – a matter governed not only by medical findings but by law & contract . Under RA8042.entitled to death and other benefits under w/c ever is higher (foreign law or Ph law) . DFA 2. placement assistance and remittance services to Filipino overseas workers. his fitness/unfitness to work shall be determined by the company-designated physician.Death benefits of Seafarers . POEA 4. b. the opinion of a 3rd doctor may be agreed jointly bet the EER and the seafarer to be the decision final and binding on them Agencies Given the Duty to promote the welfare & rights of migrant workers: 1. it shall provide the Filipino migrant worker & his faily assistance in the enforcement of contractual obligs by agencies.) when a seafarer sustains a work-related illness/injury while on board.shall be paid beginning on the 1st day of such disability.) If the physician appointed by the seafarer disagrees w/ the company-designated physician’s assessment. OWWA – Overseas Workers Welfare Administration – provides social & welfare services including insurance coverage. . legal assistance. it is not the injury w/c is compensated. It does not mean absolute helplessness.

and 4. . Their hiring nonetheless. .assists in the formulation of policies affecting Filipinos overseas and formulates an integrated program that promotes the welfare of Filipinos overseas Art 21. Members of Diplomatic corps. To assure the best possible terms & conditions of work to the EE. Seamen/Mariners – 80% Workers for Filipino Contractors & Construction companies – 70% Professionals whose EENT contract provide for lodging facilities – 70% Professionals w/o Board & Lodging – 50% Domestic and other service workers – 50% 1. and 2. FOREIGN SERVICE ROLE AND PARTICIPATION . Fil servicemen working in US military installations. 2. dependents. shall pass through the POEA for processing purposes Rationale of the Prohibition 1.All OFWs are required to remit a portion of their foreign exchange earnings ranging from 50% .Re-Placement and Monitoring Center – develops livelihood programs for the returning workers to reintegrate the returning migrant workers to the Ph society. Other employers as may be allowed by DOLE. replaced the Office of Emigrant Affairs. RPM . and/or beneficiaries. 6.80% depending on the worker’s kind of job.necessary to monitor the status of OFWs in their respective areas of assignment and insure that they are not exploited or abused by their foreign principal EERS Art 22. Name hires – individual workers who are able to secure contracts for overseas EENT on their own efforts and representations w/o assistance/participation of any agency. International organizations. NLRC – tasked w/ the settlement/adjudication of labor disputes Art 18: BAN ON DIRECT HIRING GR: Direct hiring of Filipino workers for overseas EENT is not allowed 1. To assure the foreign EER that he hires only qualified Filipino workers Art 19: COMMISSION ON FILIPINO OVERSEAS CFO – attached to the DFA.5. to their families. 3. MANDATORY REMITTANE OF FOREIGN EXCHANGE EARNINGS .

Where the worker’s immediate family members. Capitalization a. Construction contractors w/ a duly issued authority to operate private recruitment entities Qualifications for Participation 1. 2. 2. Workers who fail to comply w/ the mandatory remittance reqment shall be suspended/excluded from the list of eligible workers for overseas EENT. dependents. Filipino citizens. 3. Immigrants and Fil professionals and EEs working w/ UN agencies or specialized bodies Effects of Failure to Remit 1. Private EENT agencies. Subsequent violations shall warrant his repatriation. EERS who fail to comply shall be excluded from the overseas EENT program. For single proprietorship or partnership – minimum net worth of 200k pesos ii. Private EENT agency for local EENT i. w/o prejudice to other liabilities under existing laws and regulations CH 2: REGULATION OF RECRUITMENT & PLACEMENT ACTIVITIES Art 25: PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT & PLACEMENT OF WORKERS Private Sectors that can participate 1. or beneficiaries are residing w/ him abroad. or b. Private recruitment or manning agency for overseas EENT i. Private recruitment agencies. For single proprietorship or partnership – P2M minimum capital . Private EENT agencies/entities shall face cancellation or revocation of their licenses or authority to recruit. Shipping or manning agencies.2. and 5. Citizenship requirement a. Corporations. Such other persons as may be authorized by the Sec of DOLE. 3. 2. For corporations – a minimum paid up capital of 5ook pesos b. 4. partnerships or entities at least 75% of the authorized and voting capital stock of w/c is owned & controlled by Filipino citizens.

hence. b. as the case may be. For corps – P2M minimum paid up capital. d. 3. Those agencies whose licenses have been previously cancelled or revoked by POEA for violation of RA 8042. Those convicted of cases and/or crimes involving moral turpitude. Provided. partnerships or corps which have derogatory records.ii. 4. Thus. Those certified to have derogatory record/info by the NBI or by the Anti-illegal Recruitment Branch of the POEA. Officers/members of the board of any corp or members in a partnership engaged in the business of a travel agency. that those w/ existing licenses shall. increase their capitalization or paid-up capital. members of the board or partners. . is also an officer. It may be used only b the one in whose favor it was issued. It must be used only in the place stated in the license. member of the board or partner of a corp or partnership engaged in the business of a travel agency (interlocking officers) 4. w/in 4 yrs from effectivity hereof. Corps & partnerships. c. 3. such as but not limited to: a. Officials/EES of the DOLE or other govt agencies directly involved in overseas EENT program and their relatives w/in the 4th degree of consanguinity or affinity. PD 442 as amended and their IRR as well as the Labor Code’s IRR e. Travel agencies & sales agencies of airline companies. Those against whom probable cause or prima facie finding of guilt for illegal recruitment or other related cases exists. when any of its officers. Persons. it cannot be assigned. and f. 3. Those not otherwise disqualified by law or other govt regulations to engage in the recruitment & placement of workers for overseas EENT Disqualified from Recruitment & Placement of Workers for Overseas EEnt whether for profit or not 1. to P2M at the rate of 250K every yr. could only undertake recruitment & placement activities in the region where the license was granted. Those whose License have been previously cancelled o revoked Art 29: NON-TRANSFERABILITY OF LICENSE AUTHORITY 1. conveyed or transferred to any other person/entity. Provincial recruitment and/or job fairs may be allowed only when authorized by POEA in writing. 2. 2. The recruitment & placement activities must be undertaken at their authorized official addresses.

and 2. Art 30: BONDS The Sec of Labor shall promulgate a schedule of fees for the registration of all applicants for license or authority. To ensure prompt & effective recourse against such companies when held liable for applicants/workers’ claim Exemption from Garnishment judgment creditor of the agency. be replenished by the agency w/in 15 days from notice from the POEA. and terms & conditions of EENT. To guarantee compliance w/ prescribed recruitment procedures. BONDS All applicants for license/authority shall post such cash and surety bonds as determined by the Sec of Labor including escrow deposits. Placement fees cannot be collected from a hired worker until he has signed the EENT contract & shall be covered by receipts clearly showing the amt paid . Failure to replenish the same w/in the said pd shall cause the suspension of the license Note: POEA has the power to enforce liability under cash & surety bonds. Art 32: FEES TO BE PAID BY WORKERS commenced EENT ll always be covered w/ the approp receipt clearly showing the amount paid. Purposes: 1. and 2. rules & regulations. POEA has the power to: 1. Art 31. Suspend/cancel the license.* Change of ownership of single proprietorship licensed to engage in overseas EENT shall cause the automatic revocation of the license. Order the refund/reimbursement of such illegally collected fees Prohibition on Charging Fees 1.

To become an officer or member of the board of any corp engaged in the mgt of a travel agency. testimony. morality or to the dignity of the PH (harmful jobs). To engage in the recruitment/placement of jobs harmful to public health. To induce or attempt to induce a worker to quit his job in lieu of another offer unless it is designed to liberate the worker from oppressive terms of EENT (pirating). Grounds for Revocation of License . No other fees/charges. and such other matters as may be required by the Sec of Labor (failure to comply w/ rules & regulations). To charge greater amt than that specified in the schedule of allowable fees (illegal exaction). etc. etc. 8. To withhold travel docs from applicant workers before departure for unauthorized monetary considerations (withholding documents). 5. including processing fees shall be imposed against any worker. 9. revoked or cancelled by the POEA and the Secretary. Art 34 & Section 6 RA 8042: PROHIBITED PRACTICES: It shall be unlawful for any indiv. 2. To influence of attempt to influence any person/entity no to employ any worker who has not applied for EENT through his agency (influencing not to employ). 7. 3. Manning agencies shall not charge any fee from seafarer-applicants for its recruitment & placement services. and 11. or whose license or authority has been suspended. To obstruct or attempt to obstruct inspection by the Labor Sec or his authorized reps (obstruct inspection).2. Art 35: SUSPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY Non License or Non-Holder of Authority – any person/corp/entity w/c has not been issued a valid license or authority to engage in recruitment & placement by the Sec of Labor. To fail to file reports on the status of EENT. 4. entity. licensee or holder of authority: 1. placement. To give any false notice. or commit any act of misrepresentation to secure a license or authority (false statements). All expenses for hiring seamen shall be shouldered by foreign shipping principals. To substitute or alter EENT contracts w/o the approval of the Sec of Labor (alteration of contracts). To furnish any false info in relation to recruitment/EENT (false information). 10. 6. 3.

Engaging in the recruitment or placement of workers to jobs harmful to the public health or morality or to the dignity of the RP Grounds for Suspension/Cancellation of License 1. Publishing job announcements w/o POEA’s prior approval Jurisdiction The DOLE Sec and the POEA Admin have concurrent jurisdiction to suspend or cancel a license Liability of Recruitment Agency Before recruiting. Violation/s of the conditions of license. 4. Incurring an accumulated 3 counts of suspension by an agency based on final and executor orders w/in the validity period of its license. 2. Engaging in acts of misrepresentation for the purpose of securing a license or renewal thereof. 3. 2. Doing recruitment in places outside its authorized area. and 5. the manning agent in the PH is jointly & solidarily liable w/ the principal Suability of Foreign Corps . the agency is required to submit a doc containing its power to sue and be sued jointly and solidarily w/ the principal or foreign-based employer for any of the violations of the recruitment agreement. and 4. Deploying workers w/o processing through the POEA.1. The acts prohibited under Art 34. and the contracts of employment Note: The recruitment agency may still be sued even if agency agreement bet recruitment agency & principal is already severed if no notice of the termination was given to the EE Exception to Liability of Recruitment agency their foreign EER despite their knowledge of its inability to pay their wages Contract by Prncipal it was the principal of the manning agency who entered into contract w/ the EE. 3. Charging a fee before the worker is employed or in excess of the authorized amt.

Elements of Illegal Recruitment 1. does not have a license or authority to lawfully engage in the recruitment & placement of any workers. or work w/ a different EER whether registered or not w/ the POEA by a non-licensee or non-holder of authority or a licensee or a holder of authority: 1. Illegal Recruitment in Large Scale – further requires a 3rd element: 3. Those prohibited practices under Art 34. may be suid in and found liable by Ph courts CH 3: MISCELLANEOUS PROVISIONS (as amended by RA 8042) Illegal Recruitment – any act of (CETCHUP) canvassing. contracting. transporting. when undertaken by a non-licensee or non-holder of authority. Also includes the act of reprocessing workers through a job order that pertains to nonexistent work. or advertising. Recruitment & placement activities of agents or representatives appointed by a licensee. whose appointments were not previously authorized by the POEA shall likewise constitute illegal recruitment. referrals. or procuring workers and includes (CRAP) contract services. undertakes any recruitment activity defined under Art 13(b) or any prohibited practice enumerated under Arts 34 & 38 of the LC. in cases where the deployment does not actually take place w/o the worker’s fault. offers or promises for a fee employment abroad to 2 or more persons shall be deemed so engaged. work different from the actual overseas work. Provided that any such non-licensee or non-holder of authority who in any manner. and 4. 2. Failure to reimburse expenses incurred by the worker in connection w/ his documentation & processing for purposes of deployment. The offender undertakes either any recruitment activities devided under Art 13 (b) or any prohibited practices in Art 34 Simple Illegal Recruitment – Where a person: 1. enlisting. individually or as a group Illegal Recruitment as Economic Sabotage: . Failure to actually deploy w/o valid reason as determined by DOLE. and 2. utilizing. The offender is a licensee/non-licensee or holder/non-holder of authority engaged in the recruitment & placement of workers. promising for employment abroad. The offense is committed against 3/more persons. whether for profit or not. and 2.

Conviction for the crime of estafa. Automatic revocation of license/authority. Forfeiture of the cash & surety bonds.) where the offense was committed.the accused represented themselves to complainants to have the capacity to send workers abroad although they did not have any authority or license. if found guilty thereof Illegal Recruitment vs Estafa rged & convicted for both Acts Constituting Estafa . not fatal to prosecution’s case for illegal recruitment – as long as the witnesses can positively show through their respective testimonies that the accused is the one involved in prohibited recruitment Liability of Local EEnt agency – solidarily liable w/ the foreigh principal for unpaid salaries of a worker recruited. When illegal recruitment is committed by a syndicate (when 3/more persons conspire or confederate w/ one another in carrying out an unlawful or illegal transaction. 2.) where the offended party resides at the time of the commission of the offense Prescriptive Period Imprisonment Fine Simple 5 yrs 12-20 yrs P1-2M Economic Sabotage 20 yrs Life P2-5M Note: Max penalty if the person illegally recruited is less than 18 y/o or committed by a non-licensee or non-holder of authority Absence of receipts evidencing payment. Before recruiting. or b. enabling them to obtain placement fee Venue of criminal action arising from Illegal Recruitment The complainant may. 2. 3. at his option file at the RTC of the province/city: a. enterprise or scheme). When illegal recruitment is committed in a large scale (if committed against 3/more persons individually or as a group Consequences of Conviction 1. the agency is required to submit a doc containing its power to sue and be sued jointly and solidarily w/ the principal or foreignbased EER for any of the violations of the recruitment agreement and the contracts of EEnt .1.

whether the EENT is part-time or temp An AEP is issued based on the ff: 1. and 3. and 4. all foreign nationals seeking admission to the PH for the purpose of EENT. following a final roder of deportation Note: the Sec of Labor may order closure of illegal recruitment establishments because it is only administrative & regulatory in nature TITLE 2: EMPLOYMENT OF NON-RESIDENT ALIENS Alien Employment Permit (AEP) – required for entry into the country for employment purposes and is issued after determination of the non-availability of a person in the pH who is competent. together his EER. non-resident foreign nationals admitted to the PH on non-working visas and who wish to seek EENT. Assessment of the DOLE Sec that the EENT of the foreign national will redound to national benefit Note: Understudy Training Program is no longer a requirement in the issuance of AEP and the EEr has now the option to implement transfer of technology Requisite for EENT of Resident Aliens: . Compliance by the applicant EER or the foreign national w/ the substantive & documentary requirements. missionaries or religious workers who intend to engage in gainful EENT. if it is shown that he actively & consciously participated in illegal recruitment Issuance of search warrant/warrant of arrest search or arrest warrants Immigration may order arrested. able and willing to do the job for the EER. all non-resident foreign nationals already working in the PH.Liability of Company Engaged in Illegal Recruitment – may be held as principal. Note: AEP should be secured regardless of the source of compensation and duration of the EENT. 3. 2. 2. able and willing at the time of application to perform the services for w/c the alien is desired AEP Employment Permit Required 1. Determination of DOLE Sec that there is no available Filipino national who is competent.

2. and 2. Foreign nationals who come to the PH to teach. Availability of a Fil who is competent. All members of the Diplomatic service and foreign govt officials accredited by and w/ reciprocity arrangement w/ the Ph govt. Misrepresentation of facts in the application. 3. able and willing to the job intended for the alien. 2. . They are required to secure their Alien Employment Registration Cert (AERC) Exemption from Permit 1. Non-compliance w/ any of the requirement/conditions for w/c the AEP was issued. Submission of falsified docs. 3. but have only voting rights in the corp. 3. Officers and staff of international orgs of w/c the PH is a member. Grounds for suspension of AEP 1. Foreign nationals elected as members of Governing Board who do not occupy any other position.resident aliens are not required to secure a working permit. or bet the Ph govt and foreign govt. Submission of falsified docs. exchange or adjunct professors under formal agreements bet the univs or colleges in the PH an foreign univs or colleges. and 7. The foreign national has a derogatory record. the EENT of the alien is suspended by the EER or by the order of the court Grounds for revocation of AEP 1. provided that the exemption is on a reciprocal basis. All foreign nationals granted exemption by law. 5. 6. 4. and their legitimate spouses desiring to work in the PH. present and/or conduct research studies in univs and colleges as visiting. Misrepresentation of facts in the application. 2. Grounds for denial of Application of AEP 1. The continued stay of the foreign national my result in damage to the interest of the industry of the country. Resident foreign nationals. or 4. Owners & representatives of foreign nationals whose companies are accredited by the POEA who come to the PH for a limited period and solely for the purpose of interviewing Filipino applicants for EENT abroad.

Aliens shall not transfer to another job or change his EER w/o prior approval of the Sec of Labor. To attain international competitiveness. Foreign national has a derogatory record. and 3. Enterprises registered under the Omnibus Investment Code in case of technical. supervisory or advisory positions. Anti-Dummy Law 2-A prohibits the EENT of aliens in entities engaged in business whose exercise or enjoyment is reserved only to Fils or to corporations or assocs whose capital should be at least 60% Fil-owned 1. 2. Note: Violations of the abovementioned acts will subj the alien to the punishment in Art 289 & 290 and to deportation after service of sentence BOOK 2: HUMAN RESOURCES TITLE 1: NATIONAL MANPOWER DEVT PROGRAM CH 1: NATIONAL POLICIES & ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION Art 43-56 TECHNICAL EDUCATION AND SKILLS DEVT AUTHORITY (TESDA) . Non-resident aliens shall not take up EENT in violation of the provisions of the Code. and 6. Meritorious objection or information against the EENT of foreign national as determined by the Regional Dir. 2. . Art 41. 5.replaced the National Manpower & Youth Council under RA 7796 Statement of Goals & Objectives 1. Validity of EENT Permit provides otherwise. Aliens who are members of the Board of directors of corps in proportion to their allowable participation in the capital of such entities.4. Where the Sec of Justice specifically authorizes the EEnt of technical personnel. PROHIBITION AGAINST TRANSFER OF EENT 1. but for a limited pd. EER has terminated the EENT of the foreign national. w/c shall in no case exceed 5yrs Rule on Nationalized Business GR: Foreigners may NOT be employed in certain nationalized business.

industry or other activity. 3. business. Skilled workers who have become highly competent in their trade or craft as attested by industry. To establish apprenticeship standards for the protection of apprentices. or 2. To meet demands for quality middle-level manpower. Those who have acquired practical skills & knowledge through formal or non-formal educ & training equivalent to at least a secondary educ but preferably a post-secondary educ w/ a corresponding degree/diploma. Middle-level Manpower 1. 2. for a highly skilled or technical instruction for a period of 3-6 months Apprentice – a person undergoing training for an approved apprenticeable occupation during an established period assured by an apprenticeship agreemt Apprenticeable Occupation – an occupation officially endorsed by a tripartite body and approved for apprenticeship by the TESDA (no longer the Sec of Labor) Apprenticeship Agreement – an EENT contract wherein the EER binds himself to train the apprentice and the apprentice in turn accepts the terms of training On-the-job training – practical work experience through actual participation in productive activities given to or acquired by an apprentice Highly technical industries – a trade. w/c is engaged in the application of advanced technology . and 5. To disseminate scientific & technical knowledge base. To inculcate desirable values. Learner 3. To help meet the demand of the economy for trained manpower. enterprise. To recognize & encourage the complementary roles of pub & private institutions. To establish a national apprenticeship program. Art 58: DEFINITION OF TERMS Apprenticeship – practical training on the job supplemented by related theoretical instruction.2. Apprentice 2. and 3. 4. Handicapped Art 57 STATEMENT OF OBJECTIVES FOR THE TRAINING & EENT OF SPECIAL WORKERS 1. TITLE 2: TRAINING & EMPLOYMENT OF SPECIAL WORKERS CH1: TYPES OF SPECIAL WORKERS 1.

Date of birth of the apprentice. and 4. 5. Only EERS in highly technical industries may employ apprentices. otherwise the apprentice shall be deemed a regular EE. provided that if below 18 y/o. Requisites for a Valid apprenticeship 1. Possess vocational aptitude and capacity for the particular occupation as established through appropriate tests. 3. and 2. 2. Full name & address of the contracting parties. Apprentice earns not less than 75% of the prescribed minimum salary. Apprenticeship program must be approved by the TESDA. Period of apprenticeship shall not exceed 6 months Note: at the termination of the apprenticeship. Note: Total physical fitness is not required of the apprentice-applicant unless it is essential to the expeditious and effective learning of the occupation. Qualifications of apprentice are met. At least 15 y/o. the EER is not required to continue the EENT There is no valid apprenticeship if: 1. Physically fit for the occupation in w/c he desires to be trained. 4. Apprenticeship agreemt duly executed & signed. 3. The workers were required to continue undergoing apprenticeship beyond 6mos.Art 59: QUALIFICATIONS OF APPRENTICES 1. . Art 61: CONTENTS OF APPRENTICESHIP AGREEMENT 1. The workers undergoing apprenticeship are already skilled workers. The work performed by the apprenticeship was different from those allegedly approved by TESDA. The agreemt submitted to the TESDA was made long after the workers started undergoing apprenticeship. 3. 4. Possess the ability to comprehend and follow oral & written instructions. 2. he shall not be eligible for hazardous occupation. Only physical defects w/c constitute real impediments to effective perf as determined by the plant apprenticeship committee may dispqualify an applicant Art 60: EMPLOYMENT OF APPRENTICES Qualifications to be met by EER: 1. 2. Only in apprenticeable occupations as determined by the TESDA. 2.

Art 62: SIGNING OF APPRENTICESHIP AGREEMENT Who signs: 1. time to be spent on the job in each process.3. or 2. Within a DOLE training center or other public training institutions. The apprentice. otherwise. The plant. if of age. or in the latter’s absence. 4. Graduated scale of wages to be paid to the apprentice. An apprentice not otherwise barred by law from working 8hrs may be requisted by his EER to work overtime and paid accordingly. or 3. Time spent in compulsorily theoretical instruction shall be considered hrs of work. . A clause that if the EER is unable to fulfill his training oblig. EER or his duly authorized rep Art 63: VENUE OF APPRENTICESHIP PROGRAM 1. and 2. and 8. by an authorized rep of TESDA. 5. he may transfer the agreemt. Schedule of the work processes of the trade/occupation in w/c the apprentice shall be trained and the approx. for a worker of his age and sex. Art 64: SPONSORING OF APPRENTICESHIP PROGRAMS BY: 1. 2. Name of trade. The premises of one or several firms designated for the purpose by the organizer of the program if such organizer is an assoc of EERS. DOLE Training Center or other public training institutions w/ w/c the TESDA has made approp arrangements. Working Hrs – shall not exceed the max number of hrs prescribed by law. by his parent or guardian. and 3. Initial training in trade fundamentals in a training center or other institutions w/ subsequent actual work participation w/in the sponsoring firm or entity during the final stage of training. w/ the consent of the apprentice to any other EER who is willing to assume such oblig. Approp number of hrs of OJT w/ compulsory theoretical instruction w/c the apprentice shall undergo during his training. establishment or entity. occupation or job in w/c the apprentice shall be trained and the dates on w/c such training will begin and will proximately end. Within the sponsoring firm. 6. civic group and the like. if any. Probationary pd of the apprentice during wc either party ay summarily terminate their agreemt. shop or premises of the EER or firm concerned if the apprenticeship program is organized by an indiv EER or firm. 7.

d. The exhaustion of administrative remedies is a condition precedent to the institution of action. 2. d. Poor efficiency or perf on the job or in the classroom for a prolonged period despite warnings duly given to the apprentice. b. Bad health or continuing illness. 2. Cruel or inhumane treatment by the EER or his subordinates. Art 66: Appeal Labor w/in 5 days form rcpt of the adverse decision. Valid Cause to terminate agreement 1. Action may be initiated upon complaint of any interested person or upon DOLE’s own initiative. By the apprentice: a. Poor physical condition.Art 65-67: VIOLATION OF APPRENTICESHIP AGREEMENT Art 65: Investigation of violation of apprenticeship agreement 1. and f. c. b. Personal problem s/c in the opinion of the apprentice shall prevent him from a satisfactory perf of his job. Engaging in violence or other forms of gross misconduct inside the EER’s premises 2. Willful disobedience of company rules or insubordination to lawful order of a superior. Art 67 Exhaustion of Administrative Remedies 1. Substandard or deleterious working conditions w/in the EER’s premises. c. Theft or malicious destruction of company property and/or equipment e. The plant apprenticeship committee shall have initial responsibility for settling differences arising out of apprenticeship agreements. Repeated violations by the EER of the terms of the apprenticeship agreemt. permanent disability or prolonged illness w/c incapacitates the apprentice from working. . Habitual absenteeism in OJT and related theoretical instructions. and e. By the EER: a. Either party to an agreemt may terminate the same after the probationary pd only for a valid cause.

To Filipino workers. serving only two months and 7 days. the NLRC modified the LA decision based on the provision of RA 8042. plus $700/month overtime pay. profession or calling.. On the date of his departure.400. GALLANT MARITIME SERVICES. Upon complaint filed by Serrano before the Labor Arbiter (LA). Petitioner’s claim that the subject clause unduly interferes with the stipulations in his contract on the term of his employment and the fixed salary package he will receive is not tenable.. Serrano filed a Motion for Partial Reconsideration. Article XIII on labor as a protected sector. FACTS: Petitioner Antonio Serrano was hired by respondents Gallant Maritime Services. The subject clause may not be declared unconstitutional on the ground that it impinges on the impairment clause. leaving an unexpired portion of nine months and twenty-three days. Inc. HELD: On the first issue. and 7 days paid vacation leave per month. Serrano refused to stay on as second Officer and was repatriated to the Philippines. INC. but this time he questioned the constitutionality of the last clause in the 5th paragraph of Section 10 of RA 8042. under a POEA-approved contract of employment for 12 months. SERRANO VS. Respondents did not deliver on their promise to make Serrano Chief Officer. for the law was enacted in the exercise of the police power of the State to regulate a business. On appeal. On the second issue.Art 68: APTITUDE TESTS ANTONIO M. Inc. Hence. as Chief Officer. Article III of the Constitution. with the basic monthly salary of US$1. the dismissal was declared illegal. Article II and Section 3. Serrano was constrained to accept a downgraded employment contract upon the assurance and representation of respondents that he would be Chief Officer by the end of April 1998. Whether or not the subject clause violates Section 10. and Section 18. the rights guaranteed under the foregoing constitutional provisions translate to economic security and parity. ISSUES: 1. Whether or not the subject clause violate Section 1. particularly the recruitment and deployment of OFWs. 2. The answer is in the affirmative. . The answer is in the negative. Article III of the Constitution on non-impairment of contracts. and Marlow Navigation Co. with the noble end in view of ensuring respect for the dignity and well-being of OFWs wherever they may be employed.

appellant fetched her at her office. for work or employment in Los Angeles. the subject clause in the 5th paragraph of Section 10 of R. Second. Appellant told her he could help her get employed as nurse.: FACTS: Sometime in the months of January to February. she met the appellant on a bus. Sometime in January 1996.S. Appellant gave his pager number and instructed her to contact him is she’s interested. 1996.. but to no avail. representing to have the capacity. unlawfully and criminally recruit. Lagman and Alma E. called and informed her that he failed to give the passport and US visa because she had to go to province because his wife died. and Third. namely. Instead.A. 8042 is violative of the right of petitioner and other OFWs to equal protection. The subject clause singles out one classification of OFWs and burdens it with a peculiar disadvantage. Appellant introduced himself as a recruiter of workers for employment abroad. According to Bamba. willfully. 169076 January 23. People of the Philippines (petitioner) v Jamilosa (repondent) GR No. the appellant did not issue a receipt for the said money. Bamba.Upon cursory reading. . the subject clause appears facially neutral. did then and there. Thus. Thereafter. went to her house and gave him the necessary documents and handed to appellant the amount of US$300. 2007 Callejo. authority or license to contract. U. whichever is less‖ in the 5th paragraph of Section 10 of Republic Act No. OFWs with employment contracts of less than one year vis-à-vis OFWs with employment contracts of one year or more. OFWs vis-à-vis local workers with fixed-period employment. for a fee the herein complainants. appellant failed to show up. However. On the scheduled departure.A. contract and promise to deploy. She was on her way to SM North Edsa where she was a company nurse. appellant told her to resign from her work because she was booked with Northwest Airlines and to leave for USA on Feb. The subject clause ―or for three months for every year of the unexpired term. for it applies to all OFWs. Prosecution presented three witnesses.00 and the latter showed her a photocopy of her supposed US visa. namely Imelda Bamba. among OFWs with employment contracts of more than one year. Singh. a closer examination reveals that the subject clause has a discriminatory intent against. 8042 is DECLARED UNCONSTITUTIONAL. in Nursing Home and Care Center. No. Imelda D. 1996. However. and an invidious impact on. Trying to contact him to the supposed residence and hotel where he temporarily resided. enlist and deploy or transport workers for overseas employment. Sr. Geraldine Lagman and Alma Singh. California. OFWs at two levels: First. Geraldine M.

in any manner. Provided. promising or advertising for employment abroad. The caller is trying to locate him as he was a swindler. As complainants seeking advice on how to apply for jobs abroad. all to effect that he never recruited them and no money was involved. Alma Singh. At that time Bamba informed her that she was going to meet to appellant. whether for profit or not. whether for profit or not. seeking advices from him. The accused Jamilosa testified on direct examination that he never told Bamba that he could get her a job in USA. She became suspicious and told Bamba about the matter. utilizing. enlisting. Bamba called him several times. He started courting Bamba and went out dating until latter became his girlfriend. RTC rendered judgment finding accused guilty beyond reasonable doubt of illegal recruitment in large scale. Bamba invited Lagman to go with her. she gave P10. hiring.Winess Lagman testified that she is a registered nurse. transporting. declared that she first met the appellant at SM North Edsa when Imelda Bamba introduced the latter to her. They paged the appellant through his beeper to set up another appointment but the appellant avoided them as he had many things to do. contract services. or procuring workers. Lastly. who is also a registered nurse. Lagman and Singh sign separate certifications. or procuring workers and includes referring. contract services.000 to the appellant covering half price of her plane ticket. offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement. she gave all the pertinent documents. In January 1996. the truth being that she wanted to leave SM as company nurse because she was having a problem thereat. On their next meeting. he made Bamba. enlisting. Appellant told her that he is an undercover agent of FBI and he could fix her US visa.00 and 2 bottles of black label without any receipt issued by the appellant. locally or abroad. Bamba filed an illegal recruitment case against him because they quarreled and separated. appellant told her he could not meet them because his mother passed away. Thereafter. hiring. contracting. transporting. ISSUE: Illegal Recruitment in a large scale? HELD: ―Recruitment and placement" refers to any act of canvassing. lest he be charged as a recruiter. utilizing. and includes referrals. . He met Lagman and Singh thru Bamba. On their next meeting. Four days after their meeting. Lagman handed to the latter the necessary documents and an amount of US$300. The appellant convinced them of his ability to send them abroad. she went to SM North Edsa to visit her cousin Bamba. That any person or entity which. contracting. promising or advertising for employment. Illegal recruitment shall mean any act of canvassing. a telephone company called her because her number was appearing in appellants cell phone documents. One week before her scheduled flight.

ALL employees in all establishments & undertakings whether for profit or not b. and assist in the planning. communicating and in making decisions in attaining the company’s set goals & objectives a. It is sufficient that the accused promises or offers for a fee employment to warrant conviction for illegal recruit CONDITIONS OF EMPLOYMENT WORKING CONDITIONS & REST PERIODS Art 82. in any manner. the latter is considered as being engaged in recruitment activities. misunderstood. the prosecution is burdened to prove three (3) essential elements. Includes supervisiors (only as regards Art 82) – likewise responsible for the effective & efficient operation of their respective depts . the prosecution mustered the requisite quantum of evidence to prove the guilt of accused beyond reasonable doubt for the crime charged. directing controlling. Indeed. offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. Even in the absence of money or other valuables given as consideration for the "services" of appellant. Provided. and (3) accused committed the same against three or more persons individually or as a group. organizing. To prove illegal recruitment in large scale. or misapplied substantial fact or other circumstance. Such standards apply only if there exists EER-EE relationship ii. (2) accused did not have the license or the authority to lawfully engage in the recruitment and placement of workers. The failure of the prosecution to adduce in evidence any receipt or document signed by appellant where he acknowledged to have received money and liquor does not free him from criminal liability. That any such non-licensee or non-holder who. It can be gleaned from the language of Article 13(b) of the Labor Code that the act of recruitment may be for profit or not. As gleaned from the collective testimonies of the complaining witnesses which the trial court and the appellate court found to be credible and deserving of full probative weight. to wit: (1) the person charged undertook a recruitment activity under Article 13(b) or any prohibited practice under Article 34 of the Labor Code. affirmed on appeal by the CA. are conclusive on this Court absent evidence that the tribunals ignored. COVERAGE a.when undertaken by a non-licensee or non-holder of authority. staffing. and to other officers/members of the managerial staff .under the direct supervision of the EER. Managerial employees – those whose primary duty consists of the mgt of the establishment in w/c they are employed or of a dept/subd thereof. the findings of the trial court.

the fact that they have no choice but to remain on board the vessel. domestic or foreign. Field personnel – non-agricultural 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 w/ reasonable certainty c. they are still under constant supervision by the ER thru the vessel’s patron/master iv. who carries on in the PH any trade. depends on the facts of each case Core/Non-core Jobs e. irrespective of the time employed EER-EE Relationship – is not dependent upon the agreement of the parties. f. the workplace being away from the principal office and whose hours & days of work cannot be determined w reasonable certainty. natural or juridical. industry. business. Persons in the personal service of another vii. wag.iii. Workers paid by result – per piece/per task . EER-EE relship may comver core/non-core activities of the EER’s business. The kind of work is not the definitive test of whether the worker is an EE or not. those whose performance of their job/service is not supervised by the ER or his rep. The -EE relshp is not a matter of stipulation but a question of law d. undertaking or activity of any kind and uses the services of another person who is under his order as regards employment . Employer’s family members who are dependent on him for support v. or renumeration but receiving a compensation from his ER an uncertain & variable amount depending upon the work done or the result of said work (piece work).laborer/EE w/ no fixed salary. hence they are paid specific amount for rendering specific service or performing specific work. personnel -agri work away from the office. Employer – any person. Domestic helpers vi.

the putative employer’s power to control the EE w/ respect to the means and methods by w/c the work is to be accomplished. d. iii. f. b. e. where there is an EER-EE relationship TESTS OF EENT Relship: i. Right of Control Test – where the person for whim the services are performed reserves a right to control not only the end to be achieved but also the means to be sued in reaching such end. the worker’s opportunity for profit and loss. c. and g.Employee – any person who performs services for an EER in w/c either or both mental & physical efforts are used and who receives compensation for such services. the permanency and duration of the relationship between the worker and the employer. iv. and 2. the extent to w/c the services performed are an integral part of the employer’s business. the nature and degree of control exercised by the employer. while EE cannot substitute another in his place w/o consent of his EER. to the extent of the worker’s investment in equipment and facilities. The Economic Dependence Test – observes the need to consider the existing conditions bet the parties Best approach: Apply the two-tiered test involving: 1. the payment of wages. skill. the employer’s power to control the EE w/ respect to the means & methods by w/c the work is to be accomplished (most important) Independent contractors – can employ others to work & accomplish contemplated result w/o consent of contractee. the underlying economic realities of the activity or relationship a. ii. ELEMENTS OF EE-EER RELSHIP (Four-fold Test) i. the amount of initiative. judgment or foresight required for the success of the claimed independent enterprise. 2. Plus: the courts added the existing economic conditions prevailing bet the parties (like payrolls) in determining the existence of EER-EE Relship. the selection and engagement of the EE. the power of dismissal. the degree of dependency of the worker upon the employer for his continued employment in that line of business .

including hiring. tools to be used. the contractor’s client. a contractor is not an employee. vouchers of salaries iii. all aspects of EENT. id card ii. Conditions of Employment – laid down by law or by contract concluded individually w/ an EE or collectively w/ a group g. may also arise from established practice in the enterprise 2 Kinds of Employment Conditions a. Voluntary – initiated by the ER unilaterally or by contractual stipulation An employer is free to regulate. no such relationship exists bet those workers and the job contractee. (salary distortion) . -only contractor – serve as an agent of the true employer by merely recruiting & supplying people (prohibited). processes to be followed. dismissal and recall of workers. working regulations. time. work supervision. memorandum an EE – not a test of EEnt status. working methods. place and manner of work. pakyaw basis does not mean workers are independent contractors Independent contractors. transfer of EES. accdg to his own discretion & judgment. Employers have the right to exercise management prerogatives to strengthen his for the advancement of his interest and not for the purpose of defeating/circumventing the Rs of the EES a. h. Statutory – provided for by law b.Standard of economic dependence – whether the worker is dependent on the alleged employer for his continued employment in that line of business Evidence of employment i. sss registration iv.generally rely on their own resources * Unions and unregistered associations can be EERs of the persons who work for them GR: An employee is not a contractor. supervision of workers. work assignments. lay-off of workers and discipline. May devise & implement new salary scales applicable only to future EES. GR: While EE-ER relationship exists bet a job contractor and the workers that he hires.

to utilize different shifts to laborers/EEs working only for 8 hrs each Part-time Work – not prohibited. Art 84. lab technicians. under gen supervision. nurses. shall not exceed 8 hrs/day Purpose of 8-hr Labor law – not only to safeguard the health & welfare of the laborer/EE. and all other hospital & clinic personnel like medical secretaries Resident physicians – customary practice to work for 24 hrs a day violates the residents and the hospital accredited by the govt Hospital EEs – are entitled to a full weekly salary w/ apid 2 days off if they have completed the 40hr/5day workweek (7days pay for 5 days work) Health personnel in Govt service – covered by RA 7305 12-hr Workshift with Overtime .Members/Officers of the Managerial Staff: Duties & Responsibilities 1. all time during w/c an EE is required to be on duty or to be at a prescribed workplace. and . but in a way to minimize unemployment by forcing ERs. but not limited to. social workers. attendants. They execute. experience or knowledge. (What the law regulates is work exceeding 8hrs) GR: Wage & benefits of a part-timer are in proportion to the number of hrs worked. under gen supervision.through a contract freely entered into. They regularly & directly assist the managerial EE whose primary duty consists of the mgt of a dept of the establishment in w/c they are employed. They execute. paramedics. dieticians. psychologists. in cases where more than 8-hr operation is necessary. Their primary duty consists of the performance of work directly related to mgt policies of their ER. special assignments and tasks. and they do not devote more than 20% of their hours worked in a work-week to activities w/c are not directly & clearly related to the performance of their work Art 83. 4. They customarily & regularly exercise discretion and independent judgment. work along specialized/technical lines requiring special training. HOURS WORKED shall include: 1. 5. nutritionists. NORMAL HOURS OF WORK i. pharmacists. Work hrs of Health Personnel Health personnel – shall include. workshift may exceed 8hrs w/ corresponding overtime pay. 3. midwives. 2. resident physicians.

it being enough that he stops working. . where such activities are controlled/required by the ER and are pursued necessarily & primarily for the ER’s benefit Waiting Time k. controlling factor is WON time spent in idleness is so spent predominantly for the ER’s benefit or for the EE’s 1. if the work was w/in the knowledge of his ER/immediate supervisor. Engaged to Wait – waiting time spent by EE shall be considered as working time if waiting is considered an integral part of his work or if the EE is required/engaged by an ER to wait 2. 2. or it benefited the ER. Waiting to Engage – idle time is not work time Working While Eating GR: EE must be completely relieved from duty for the purpose of eating regular meals. all time during w/c an EE is suffered or permitted to work Rest periods of short duration during work hrs shall be counted as hours worked Principles in Determining Hours Wrked 1. to go elsewhere. whether w/in or outside the premises of his workplace. may rest completely and may leave his workplace. regardless of WON such hrs are spent in productive labor or involve physical/mental exertion.2. The time during w/c an EE 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 EE’s presence at the place of work or if the interval is too brief to be utilized effectively & gainfully in the EE’s own interest. An EE need not leave the premises of the workplace in order that his rest period shall not be counted. all time spent for such work shall be considered as hrs worked. or the EE could not abandon his work at the end of his normal working hrs because he had no replacement. Pre/Postliminary Activities j. If the work performed was necessary. whether waiting time constitutes working time depends on the circumstances on each particular case l. All hrs are hrs worked w/c the EE is required to give to his ER. The meal time is not compensable if he is completely free from duties during his meal period even though he remains in the workplace. 4. Preliminary (before work) and postliminary (after actual work) activities are deemed performed during working hrs. 3.

depends upon the express/implied agreement of the parties. he is NOT on call Travel Time – time spent walking. Not on call: EE is not required to remain on the ER’s premises but is merely required to leave work at his home or w/ company officials where he may be reached q. Stand-by for emergency work) Working While Sleeping GR: Sleeping time may be considered working time if it is subj to serious interruption or takes place under conditions substantially less desirable than would be likely to exist at the EE’s home. On Call n. Travel that is all in a day’s work – time spent by an EE in travel as part of his c. m. event though EE is required to remain on or near the ER’s premises and must hold himself in readiness for a call to action ENT. if they are required to be in their place of work before/after the regular working hrs and w/in the call of their ERs. if EE is kept ―w/in reach‖ through a cell phone.eating (ex. upon the nature of the service and its relation to the working time. EE cannot use the time effectively for his own purposes is working while on call. p. With Cellular phone or Other Contact Device r. or in absence of an agreement. Travel away from home – travel that keeps an EE away from home overnight Lectures. riding. the time they stay in the place of work sould not be discounted from their working hrs o. Meetings and Training Programs – not worktime if: . Travel from home to work – outside his regular working hrs and is required to travel to his regular place of business b. or traveling to/from place of work a. although EE can rest completely and may not be actually at work. conditions. Public health workers’ On call status – refers to a condition when public health workers are called upon to respond to urgent or immediate need for health/medical assistance or relief work during emergencies such that he/she cannot devote the time for his/her own use.

he ceases to work b. Attendance is outside of the EE’s regular working hrs. he bears the burden of proving his allegation w/ clear & satisfactory evidence Art 85. Attendance is in fact voluntary.a. to go somewhere else. may rest completely c. where work is non-manual (does not involve strenuous physical exertion). whether w/in or outside the ship HOURS WORKED: EVIDENCE & DOUBT GR: When an ER alleges that his EE works less than the normal hrs of ENT as provided for in law. where it is less than 60 minutes (but not less than 20minutes) must be with full pay when: 1. equipment or installations to avoid serious loss w/c the ER would otherwise suffer. . The EE does not perform any productive work during such attendance. they need not leave the boat in order that his rest period not be counted Requisites for non-counted rest period a. b. MEAL PERIODS t. where the establishment regularly operates not less than 16hrs a day 3.or 2. leave or may leave at his will the spot where he actually stays while working. in cases of actual or impending emergencies or there is urgent work to be performed on machineries. must be at least 60minutes time-off for regular meals GR: not compensable 1. where the lunch period or mealtime is predominantly spent for the ER’s benefit (considered overtime) . * must meet all criteria Grievance Meeting – time spent in adjusting grievance bet ER & Ee during the time the he CBA or the custom practice under the CBA Semestral Break – hrs worked by teachers in private schools WORK HOURS OF SEAMEN s. and c. 2.

If less than 20 minutes it becomes only a rest period and is thus considered work time Note: Meal periods during overtime work is not given to workers performing OT bcoz OT is usually for a short period Shortened Meal Break Upon EE’s request u. w/o any deduction .the receipt of OT pay will not preclude payment of NSD pay .burden of proof of payment of NSD . 3. and 6. then the 10% night shift differential should be based on the OT rate . where the work is necessary to perevent serious loss of perishable goods c. 2. The arrangement is of temporary duration. 4. EEs voluntarily agree in writing and waive their OT pay. Value of benefits is equal to the compensation due them. OVERTIME WORK Overtime Pay – additional compensation for work performed beyond 8hrs w/in the worker’s 24-hr workday regardless whether the work covers 2 calendar days Basis – cash wage only.4.not waivable (founded on public policy) . EEs may request that their meal pd be shortened so that they can leave work earlier Requisites least 10% of his regular wage for each hr of work performed bet 10PM and 6AM . OT pay will become due and demandable if they are permitted/made to work beyond 4:30 pm. Work is not physically strenuous and they are provided w/ adequate coffee breaks in the morning & afternoon. Note: The 8-hr work period does not include the meal break. 5.ER Art 87. Art 86 NIGHT SHIFT DIFFERENTIAL . EE’s may leave the company premises as long as they return to their posts on time. No diminution in the salary and other fringe benefits of the EEs already existing.given as premium for working at a time for sleep & rest establishments regularly employing 5 employees and below -6am is OT work.

Work in Different Shifts in a Work day – work in excess of 8hrs w/in a work day is considered as OT regardless of whether this is performed in a work shift other than at w/c the EE regularly works -6am.any work in excess of 8 hrs not falling w/in the 24-hr pd is not considered as OT work a. commenced an action v PAL in the CIR praying that the latter be ordered to revise the method of computing the basic daily & hourly rates of its monthly-salaried EEs and necessarily to pay them their accrued salary differentials PAL’s Formula: monthly salary x 12/365 days in a yr = Basic daily rate basic daily rate/8 – Basic hourly rate Proposed Formula: Monthly salary x 12/actual working days = BDR BDR/8 = BHR Paid Unworked days of a monthly-paid EE .Rates 1. OT on a holiday or rest day – at least 30% thereof * CBA may stipulate higher OT pay rate Actual Work Days as Divisor – PALEA & PAL Supervisors Assoc (PALSA).ER may stipulate that EE’s monthly salary constitutes payment for all the days of the month incl rest days & holidays if when converted into its daily equivalent would still How ―work day‖ is counted A day – the 24-hr period w/c commences from the time the EE regularly starts to work . OT on a regular work day – at least 25% thereof 2.regardless of the day of the week or hr of the day . He is asked to take a shift of another EE who is absent from 2pm-10pm (his regular work day would be from 10pmconsidered OT because it is still w/in his work day .any work in excess of the 8hrs w/in the 24-hr pd is considered as OT regardless of whether the work covers 2 calendar days . Broken Hrs of Work – the minimum normal working hrs need not be continuous to constitute as the legal working day of 8 hrs as long as the 8 hrs is w/in a work day b.

GR: An express instruction from the ER to the EE to render OT work is not required for the EE to be entitled to OT pay. but whether they actually rendered service in excess of 8 hrs Action to Recover Compensation . machine repair. under w/c the laborers cannot waive their R to extra compensation . a certification is needed from an accredited safety org or the firm’s safety committee that work beyond 8hrs is w/in the limits/levels of exposure set by DOLE’s occupational safety & health standards. written authority after office hrs is required for the EE to be entitled to compensation work. It is sufficient that the EE is permitted or suffered to work. Requisites of Compressed Workweek to be valid: 1. 3. The scheme is expressly and voluntarily supported by majority of the EEs affected. brownout. or operating in conditions that are hazardous to health. Any contrary stipulation is null and void. When the waiver is made in consideration of benefits & privileges w/c may be more than what will accrue to them in OT pay. and 2. In firms using substances. 2. s. .estoppel & laches cannot be invoked against EEs bcoz that would be contrary to the spirit of the 8-hr Labor Law.OT pay in arrears retroacts to the date when services were actually rendered GR: Waiver or quitclaim – not a waiver of OT pay. but no OT pay may be claimed. Neither is an express approval by a supervisor needed. The DOLE Regional Office is notified. Any stipulation in the contract that the laborer shall work beyond the regular 8 hrs w/o addtl compensation for the extra hrs is contrary to law and null and void Waiver of OT Pay GR: OT pay cannot be waived expressly or impliedly. Compressed workweek (CWW)– the number of work days is reduced but the number of work hrs in a day is increased to more than 8. lack of rawmats) OT Work of Seamen – whether or not the sailors are entitled to OT pay is not whether they were on board and cannot leave ship beyond the regular 8 working hrs a day. 1. work could be done (i.e.

EE’s under a CWW scheme are entitled to meal periods of at least 60 minutes. (Reversion is considered a legitimate exercise of mgt prerogative. w/ full understanding of what he was doing and in consideration for the quit claim is credible & reasonable. Reversion to the normal 8-hr work day shall not constitute diminution of benefits. * EE may validly waive the R to OT under a CWW program.Effects of a Compressed Workweek 1. Scheduled rest day w/c is also a legal or regular holiday Rest day & legal holiday wage rate (260%) + 30% thereof 6. provided he did so voluntarily. Legal or Regular Holidays Holiday Wage Rate (200%) + 30% thereof 3. work beyond 8hrs will not be compensable by OT premium. 3. Double holiday Double holiday wage rate (400%) + 30% thereof . Scheduled Rest Day w/c is also a Special Holiday Rest day & special holiday wage rate (150%) + 30% thereof 5. (Work performed beyond 2. Unless there is a ore favorable practice existing in the firm. Regular Workdays Reg Basic Wage + 25% thereof 2. Rest Days or Special Holidays Rest day/Special Holiday wage rate (130%) + 30% thereof 4. The R of EEs to restday. provided the total number of hrs worked per day shall not exceed 12hrs. holiday pay. provided that the ER shall give the EEs prior notice of such reversion w/in a reasonable period of time. Note: EE’s promoted from rank-and-file to supervisory lose their OT pay and other benefits under Art 82-96 Illustrations of OT Computations 1. Adoption of the CW scheme shall in no case result in diminution of existing benefits. rest day pay or leave in accdance w/ law/CBA/company practice shall not be impaired.

Should be threshed out by the ER and EE .Whether on the same day or any other day is prohibited by law . ERs may adopt them after due consultation w/ EEs. the FWAs include: 1. workdays or workweek.In addition to CWW. Agreed legal wage rate and OT pay computed separately are equal or higher than the separate amounts legally due FLEXIBLE WORK ARRANGEMENTS . . UNDERTIME NOT OFFSET BY OVERTIME .Permission given to the EE to go on leave o some other day of the week shall not exempt ER from paying the addtl compensation .DOLE Reg Ofc must be notified prior to implementation . utilizing their leave credits if there are any 4. . there must be: 1. provided that there is no diminution of existing benefits as a result of such arrangement Art 88.0% of his regular daily wage when both regular holidays fall on the same day and he does not work (Law provides that he shall get his regular daily wage of each regular holiday) ets 400% OT pay integrated in Basic Salary – (composite/package pay/all-inclusive salary) – not illegal nor unusual for executives or managers -managerial EEs.alternative work arrangements or schedules other than the traditional or standard work hrs. taking into acct the adverse consequence of the situation on the performance and financial condition of the company. Rotation of workers – where the EEs are rotated/alternately provided work w/in the workweek 3. Flexi-holiday schedule – Ees agree to avail themselves of the holidays at some other days. Broken-time schedule – the work schedule is not continuous but the number of hrs w/in the day or week is not reduced 5.Its effectivity and implementation shall be temporary. Reduction of workdays – where normal workdays per week are reduced but should not last for more than 6 months 2. Forced leave – EEs are required to go on leave for several days or weeks. A clear written agreement 2.

When it is necessary to avail of favorable weather or environmental conditions where performance or quality f work is dependent thereon. if any Art 89. To prevent serious obstruction or prejudice to the business or operations of the ER. Art 90. and 6. Rules & regulations issued by the Sec of Labor. ―wage‖ includes the value of facilities. COMPUTATION OF ADDTL COMPENSATION ―cash wage‖ – excludes noncash value of facilities .if only cash wage is the basis of OT rate. When there is urgent work needed on machines & equipment. EMERGENCY OT WORK GR: EEs cannot be compelled to render OT work against their will 1. 2. it is unfair to the worker because as defined in Art 97. hence the value of facilities should not be excluded when computing OT pay Ch. RIGHT TO WEEKLY REST DAY Duration: at least 24 consecutive hrs after every 6 consecutive normal work days . 2 WEEKLY REST PERIODS Art 91. CBA. EE’s preference based on religious grounds. and 3. (When such preference will prejudice the business of the ER. In times of war or any national or local emergency declared by Congress/Chief Exec.all establishments & enterprises may operate or open for business on Sundays & holidays provided that the EEs are given the weekly rest day & the benefits provided under the law Who Determines: The ER determines and schedules the weekly rest period subj to the ff: 1. When work is necessary to preserve perishable goods. 3. and no other remedial measures are available. 4. 2. the weekly rest pd may be scheduled to meed the EE’s choice for at least 2 days a month .Reason: EE’s hourly rate is not equivalent to OT rate Proper method: Deduct the UT from the accrued leave. 5. To prevent loss or damage to life or property due to emergencies and force majeure.

WHEN THE ER MAY REQUIRE WORK ON A REST DAY GR: The ER may not require the EEs to work on a rest day 1. In case of actual/impending emergencies caused by force majeure to prevent loss of life and property. 2. if worked 1. excess of 8 hrs – plus 30% of hourly rate of said day . provided he expresses such desire in writing and he is paid the addtl compensation for working on his rest day Art 93. 4. 1st 8hrs – 200% 2. equipment or installation. In cases of urgent work to be performed on the machinery. 3. If worked 1. SUNDAY OR HOLIDAY WORK Premium pay or Differential compensation – addtl compensation for work rendered by the EE on days when normally he should not be working such as special holidays and weekly rest days Note: This article does not prohibit a CBA stipulation for higher benefits Formulas to Compute Wages on Holidays 1. if it is an EE’s rest day i. if unworked – 100% ii. For REGULAR HOLIDAYS a. Note: The failure to work during an EE’s rest day does not justify disciplinary sanction of outright dismissal. or imminent danger to public safety. If unworked – 100% ii. Where the nature of work requires continuous operations and the stoppage of work may result in irreparable injury/loss to the ER. COMPENSATION FOR REST DAY. excess of 8hrs – Plus 30% of hourly rate of said day b. and 6.Art 92. he may be allowed to do so. Under the circumstances analogous to the foregoing as determined by the Sec of Labor. Note: When an EE volunteers to work on his rest day under other circumstances. more so when justifiable grounds exist for the said failure. where the ER cannot ordinarily be expected to resort to other measures. To prevent loss or damage to perishable goods. In the event of abnormal pressure of work due to special circumstances. 5. If it is an EE’s regular workday i. 1st 8hrs – plus 30% of 200% 2.

Special Public Holiday. excess of 8hrs – plus 30% of hourly rate on said day c. Special (Non-working)Days 1. Black Saturday 2. National Heroes Day 8. 1st 8hrs – plus 50% of the daily rate of 100% ii. Regular Holidays 1.for work performed an EE is entitled only to his basic rate List of Special Days Proc. Falling on the EE’s rest day and if worked i. excess of 8hrs – plus 30% of hourly rate on said day 3. Maundy Thursday 3. For declared SPECIAL DAYS such as Special Non-Working Day. Special Holiday (for all schools) . 1st 8hrs – plus 30% of the daily rate of 100% ii. practice or CBA granting payment of wages on special days even if unworked b. For those declared as SPECIAL WORKING HOLIDAY . All Saints Day 4. Nov 2 5.2. New Year’s Day 2. Good Friday 4. Ninoy Aquino Day 3. If worked i. If unworked – no pay. Araw ng Kagitingan 5. Labor Day 6. Special National Holiday and nationwide special days a. Christmas Day 10. Bonifacio Day 9. Dec 24 6. Rizal Day B. Independence Day 7. 459 A. unless there is a favorable company policy. Last Day of the Year C.

Local Holiday Those declared by Special Day law or ordinance Regular Holiday Compensable even if Not compensable if unworked subj to unworked certain conditions Limited to the list Not exclusive since a enumeration law or ordinance may provide for other special holidays Rate is 200% of the Rate is 130% of the regular rate if regular wage if worked worked .EDSA Revolution Anniversary D.