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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
use. Temporary EES of the Govt shall be given such
protection as may be provided by law
Landless farmworkers may be resettled by the govt in its own agri estates.
Continuing program of urban land reform & housing

gency to promote the viability & growth of cooperatives as instruments for social
justice & economic dev’t
nefits, OR
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
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
071: prohibiting slavery/involuntary servitude
-hr labor law
isputes bet EERS & EES

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

and (2) he is actually tilling the land or directly managing the farm. the Code of Agrarian Reforms & other existing laws & regulations. Share tenancy – abolished. *Land for the landless – battlecry dramatizing the increasingly urgent demand of the dispossessed for a plot of earth as their place under the sun. such as commodity produced. [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. w/ the coop having a right of recourse against him. The govt shall guarantee such amortizations w/ shares of stock in govt-owned & controlled corps. including interest at the rate of 6% per annum. terrain.) he is at least 15 y/o. the size of w/c shall vary accdg to factors governing a viable family-sized farm. shall be pd by the tenant in 15 yrs of 15 equal annual amortizations. In case of default. any public/private agri land. & soil fertility as determined by the Presidential Agrarian Reform Council (PARC). Art 11. Retention Limits – own/retain directly/indirectly. 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. geared towards eventual ownership of land by its tillers Consti . subj to such priorities & reasonable retention limits as the Congress may prescribe. that landowners whose lands have been covered b PD 27 . the amortizations due shall be pd by the farmers’ cooperative in w/c the defaulting tenant-farmer is a member. and encourage & undertake the just distribution of all agri lands. *CARP Law – signed by Cory. 1972). declaring full land ownership in favor of the beneficiaries of the PD 27.2 & ½ times the average harvest of 3 normal crop yrs immediately preceding the promulgation of PD 27 (OCT 21. 3 hectares – may be awarded to each child of the landowner. 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 total cost of the land. [Implementing Agency] The Dept of Agrarian Reform shall promulgate the necessary rules & regulations to implement the provisions of this Chapter. subj to the ff qualifications: (1.State shall undertake an Agrarian Reform Program. put the agricultural leasehold sys in its stead. Art 10. Provided. infrastructure.

poultry & swine raising‖ in the definition of ―commercial farms‖ is invalid. & never in the history of the world has it more than temporarily. ―The Greatest Blessing…The Worst Crime‖ – Frederick Taylor . The increase of revenue & stock is the increase of national wealth. 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. the revenue & stock of every country and cannot increase w/o it.superior over the rights of tenants 2. Residential Subdivisions – not considered agricultural. and then for only a very short time. Reynato Puno . Lands not covered 1. poultry & Swine raising lands: Sec 2 of RA 6657 w/c includes ―private agri lands devoted to commercial livestock. Mass unemployment tends to leave the EER all-powerful and the worker defenseless ―More Capital Means More Jobs‖ – Adam Smith .unemployment is the greatest exploiter of labor. and (2) the Stock – w/c is over & above shat is necessary for the EENT of their masters. Provided further. They are covered by the agrarian reform prog of the State. 3.2 kinds of funds: (1) the Revenue – w/c is over & above what is necessary for the maintenance. diminished by the number of men at work in any trade ―The Greatest Exploiter‖ – Blas Ople . ―An Exploited Class‖ – J. 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 increased output invariably gives more work to more men. 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.shall be allowed to keep the area originally retained by them thereunder. . Livestock.

production & marketing assistance . regardless of crops/fruits produced. as well as cooperatives & other independent farmers org. EENT & privatization of pub sector enterprises .shall recognize the R of farmers. marketing & other support services .Overseas workers constitute an exploited class.May lease undeveloped lands of pub domain to qualified entities for the devt of capital-intensive farms. farm workers & landowners.Shall provide incentives to landowners to invest the proceeds of the agrarian reform prog to promote industrialization. Agrarian Reform – the redistribution of lands.shall encourage the formation & maintenance of economic-sized family farms to be constituted by indiv beneficiaries & small landowners . to . to farmers & regular farm workers who are landless. ―9% of Filipinos are Based Overseas‖—Ph Star RA 6657 Comprehensive Agrarian Reform Program Aim: A more equitable distribution & ownership of land.may resettle landless farmers & farm workers in its own agricultural estates . irrespective of tenurial arrangemt. & mgt of the program & shall provide support to agriculture though tech & research & financial.. They will work under subhuman conditions & accept salaries below the minimum. to receive a share of the fruits thereof The State: .shall provide support to such fishermen thru appropriate tech & research.shall protect the Rs of subsistence fishermen to the preferential use of communal marine & fishing resources both inland & offshore . to participate in the planning. Their unfortunate circumstance makes them easy prey to avaricious EERs. to own directly or collectively the lands they till or.owners of agri land have the oblig to cultivate directly or thru labor admin the lands they own & thereby make the land productive. adequate financial. in the case of other farm workers. 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.shall respect the R of small landowners & shall provide incentives for voluntary landsharing . Fisherworkers shall redeive a just share from their labor in the utilization of marine & fishing resources . . production. traditional & pioneering crops esp those for export (subj.shall protect offshore fishing grounds of subsistence fishermen against foreign intrusion. org. to Rs of beneficiaries) Definitions 1. who are landless.

distribution of shares of stock) 2. Agricultural land – land devoted to agricultural activity. tenancy. or primarily w/ the assistance of his immediate farm household. Agrarian Dispute – any controversy relating to tenurial arrangements. one vote. residential. financial or other economic resources & operated on the principle of one member. commercial or industrial land 4. the harvesting of such farm products. Season Farmworker – a natural person who is employed on a recurrent. planting of crops. Farmworker – a netural person who renders service for value as an EE or laborer in an agricultural enterprise or farm 8. stewardship or otherwise. or by another person under a leasehold or tenancy agreement 7. farmers.does NOT include land w/c has become unproductive by reason of force majeure or F event 6. Agriculture. whether leasehold. periodic or intermittent basis by an agricultural enterprise or farm h. Farmer – a natural person whose primary livelihood is cultivation of land or the production of agri crops either by himself. w/ the same Rs & duties as a natural person. and NOT classified as mineral. 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 . Regular Farmworker – a natural person who is employed on a permanent basis by an agricultural enterprise or farm 9. & other farm activities 3. tenants & other agrarian reform beneficiaries 5.but does NOT include land that has become permanently or regularly devoted to nonagricultural purposes . whether the land is owned by him. human. forest. farmworkers or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land. labor admin.including controversy relating to compensation of lands acquired under this Act & other terms & conditions of transfer of ownership from landowners to farm workers. fixing. Cooperatives – orgs composed primarily of small agri producers. changing or seeking to arrange terms of conditions of such tenurial arrangements . Agricultural Enterprise or Agricultural Activity – the cultivation of the soil. .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. incl. technological. ( a juridical person may be a member of a coop. Idle / Abandoned Land – any agricultural land not cultivated. maintaining. or representation of persons in negotiating.including disputes concerning farm workers assocs. over lands devoted to agri . growing of fruit trees.

. or possessed by multi corps or assocs.upon recommendation by the Provincial Agrarian Reform coordinating Committee. (b) in case the tenant chooses to remain in the retained ares. he shall be considered a leaseholder & shall lose his R as a leaseholder to the land retained by the landowner. lease. disposition. and is actually tilling the land or directly managing the farm . may declare certain provinces/regions as priority land reform areas Multinational Corps – all lands of the pub domain leased. any sale.Scope: all public & private agricultural lands.Upon Act’s effectivity. directly. All alienable & disposable lands of the pub domain devoted to or suitable for agriculture 2. that those executed prior to this Act shall be valid only when registered w the Reg of Deeds w/in 3 months after effectivity. All other lands owned by the Govt devoted to or suitable for agri 4. Provided.landowners whose lands have been covered by PD 27 shall be allowed to keep the area originally retained by them thereunder . The tenant must exercise this option w/in 1 yr fr the time the landowner manifests his choice of the area for retention. 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. the size of w/c shall vary accdg to factors governing a viable family-sized farm . the tenant shall have the option whether to remain therein.3 hectares: each child of landowner. . All lands of the pub domain in excess to the specific limits as determined by Congress 3.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. Presidental Agrarian Reform Council (PARC) – shall provide the implementing rules .landowner may retain only 5 hectares. held. that is 15y/o. other lands of the pub domain suitable for agriculture 1. be a beneficiary of the same. and other lands owned by the govt. any pub or private agricultural land. . mgt contract or transfer of position of private lands executed by the orig landowner in violation of this Act shall be null & void. or another agri land w/ similar/comparable features. incl. or govt-owned/-controlled corps.

communal burial grounds & cemeteries. devoted to existing & operational agribusiness or agroindustrial enterprises. 3. in case of rejection or failure to reply. directly & exclusively used for parks. directly & exclusively used & found to be necessary for national defense. provided that the Torrens System shall be respected . reforestation. 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. continuous & open possession & occupation of the community and its members. After having identified the land. church sites & convents apputenat therety. this Act and other national the autonomous regions. if landowner accepts the offer. school sites & campuses. DAR shall send its notice to acquire the land to the owners. social & cultural well-being . upon the deposit w/ an accessible bank or . got & private research & quarantine centers Procedure for Acquisition of Private Lands 1. incl experimental farm stations operated by pub/private schools for educational purposes.assocs. lands in the actual. 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. Lands actually. a. upon receipt of the landowner of the payment. the respective legislature may enact their own laws on ancestral domain subj to the provisions of the Consti. watersheds and mangroves 2. w/in 30 days from date of receipt. mosque sites & Islamic centers appurtenant thereto. the landowners & beneficiaries. or in case of rejection or no response fr the landowner. Exemptions & Exclusions 1. Lands actually.shall be protected to ensure their economic. landowners shall inform the DAR of his acceptance/rejection of the offer. wildlife. but not limited to. fish sanctuaries and breeding grounds. Private lands actually. seeds and seedlings research and pilot production center. institutions or entities. DAR shall conduct summary admin proceedings to determine compensation of the land 3. 2. penal colonies & penal farms actually worked by inmates. operated by multicorps shall be programmed for acquisition & distribution immediately upon effictivity Ancestral Lands – shall include.

Seasonal farmworkers 4. Actual tillers/occupants of public lands 6. 4. actual used and income . 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. Any party who disagrees w/ the decision may bring the matter to the court Determination of Just Compensation . 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. shall be owned collectively by the workerbeneficiaries who shall form a workers cooperative or assoc w/c will deal w/ the corp .tax declarations .current value of like properties.assessment made by the govt assessors Incentives for voluntary offers of sale – addt’l 5% cash Priority of Qualified Beneficiaries 1. . Regular farmworkers 3.cost of acquisition of the land .its nature. Agricultural lessees & share tenants 2. Dar shall give a reasonable time to harvest the same Corporate Farms . . Collective or cooperatives of the above beneficiaries 7.the compensation. 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.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 .in case land cannot be divided directly. transferred or qualified beneficiaries for 10 yrs *Provided.the sworn valuation by the owner. Other farm workers 5. Transferability of Acquired lands by beneficiaries – may not be sold.

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.State shall provide incentives to landowners to invest the proceeds of the agrarian reform prog to promote industrialization. instituting necessary reforms. EENT & privatization of the pub sector enterprises Added Definition 1. or in food preparation. whether paid or unpaid. such as roads & bridges. city & mun govt units acquiring private agri lands by expropriation to be used for actual. school sites. irrigation facilities 2. regular or seasonal. Rural women – women who are engaged directly/indirectly in farming and/or fishing as their source of livelihood.Implementation of the prog shall be community-based .pending final land transfer Support Services 1. caring for the children. pub markets.State shall recognize & enforce the Rs of rural women to own & control land . & other similar activities 2. establish & operate vital industries . pub parks & brgy plazas or squares consistent shall not be subj to the 5-hectare retention limit Order of Priority .Answer: simultaneous industrialization aimed at developing a self-reliant & independent national economy effectively controlled by Filipinos .Provincial. in the interest of national welfare or defense. amending for the purpose certain provisions of RA 6657 . govt subsidies for the use of irrig facilities RA 9700 – Act Strengthening the CARP. .Production-sharing . managing the household. local govt facilities.3 hectares each to the 1st 2 beneficiaries . resettlement sites. infrastructure devt & pub works projects 3.State may. Landless beneficiary – one who owns less than 3 hectares of agri land Added Exception to Retention Limits . extending the acquisition & distribution of all agricultural lands.State shall protect Filipino enterprises against unfair foreign competition & trade practices . direct & exclusive pub purposes.

. 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 Facts: Landicho from 1949 until his death in 1972.000. cultivates the land belonging to. Aragons for P50. himself and w/ the aid available from w/in his immediate farm household. shall the remaining portion of the landholding. petitioner Francisco Landicho (the other petitioners were Buenaventura (Francisco’s son). They alleged that they were fooled into signing over their tenancy rights thru the machinations of the Aragons. helped him cultivate the land he Aragons through a notarized ―kasulatan‖ for a consideration of P1.000. petitioners are barred by estoppel. and Federico (Francisco’s brother).only when these beneficiaries have rcvd 3 hectares each.000 to respondent Felix Sia. 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. under the leasehold tenancy system For a tenancy relationship to exist. laches and prescription Issue 1: WON petitioners are tenants of the land Held: A tenant is defined as a person who. or paying to the landholder a price certain or ascertainable in produce or in money or both. who in turn converted the same to a residential subd w/o a DAR clearance and ejected the petitioners therefrom. or possessed by another. w/ the latter’s consent for purposes of production. if any. 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 . sharing the produce w/ the landholder under the share tenancy system. 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. his tenancy rights were succeded by his son. afterwhich.

After 2 months. 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. Facts: he had been promoted repeatedly up to 1998 when he was temporarily assigned as caretaker of the bank and designated as Acting Asst. (supposedly under protest) & received the amt of P1. Petitioners Federico and Buenaventura are not tenants because consent (#3) by the landowners is lacking. There was also no evidence to show that they gave a share of their harvest to the Aragons (#6). the respondent bank was reopened under the control & mgt of Comsavings Bank. a language spoken & understood by Francisco and was couched in plain and clear terms. because the Kasulatan was in Filipino. Final ruling: Petitioners have no cause of action and the same has prescribed. . They are merely farm helpers of Francisco as part of his immediate farm household. Francisco had voluntarily surrendered his tenancy rights when he knowingly & freely executed the 1987 Kasulatan.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. it underwent serious liquidity problems and was placed under receivership by the Central Bank. appointment as Acting Asst VP was retained.342M as retirement pay. which ordered its closure in July of 1984. of the respondent bank and took over the control & mgt of the bank and renamed it as GSIS Family Savings Bank. only Francisco possesses the requisites of a tenant. one of w/c is an early retirement program. 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. olicy to attain financial stability. 1983-84. clear and convincing evidence to the contrary. the respondent bank adopted measures. VP and OIC in June of 1998. There was no showing of foul play.

It is the policy of the State: 1. Discrimination – failure to treat all persons equally when no reasonable distinction can be found bet those favored & those not favored. the burden of proof rests on the EER to show that the EE was dismissed on a valid & just cause. 13th month pay & retirement benefits before the Labor Arbiter. May also mean an act of clear discrimination. and (2) persons belonging to the same class have not been treated alike Petitioner failed to established that he possessed the same skills. 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. The law also recognizes the rights of management. Constructive dismissal – quitting because continued EENT is rendered impossible. 2. He alleged discrimination & unfair treatment. And absent the showing of duress. 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. . While the state promotes the utmost protection of labor against capital. to protect every citizen desiring to work locally/overseas by securing for him the best possible terms and condition of employment. to promote and maintain a state of full employment through improved manpower training. Issue 1: WON there was constructive dismissal Held: No. w/c the petitioner failed to do. PRE-EMPLOYMENT Art 12. and intense pressure on the part of the resp bank forced him to retire at the prime of his life. allocation and utilization. But this legal principle presupposes that there is indeed an involuntary separation from EENT & the facts attendant to such forced separation was clearly established. the presumption is that it was done by him voluntarily. 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.& underpayment of wages. competencies & expertise as those newly hired to eliminate the possibility of substantial distinction that may warrant unequal treatment bet them. It was him who availed of the voluntary retirement program. Petitioner contends that in cases of constructive dismissal. unreasonable or unlikely.

The promotion of gainful EENT opportunities and the optimization of the devt & utilization of the country’s manpower resources. Recruitment & placement – any act of canvassing. coordinating and administrative entity of the Executive branch of the govt in the field of labor and employment Its Primary responsibilities: 1. 2. to regulate the employment of aliens. The maintenance of industrial peace by promoting harmonious. whether for profit or not: provided. enlisting. contract services. 6. to facilitate a free choice of available employment by persons seeking work in conformity with the national interest. in any manner. locally and overseas.3. The advancement of workers’ welfare by providing for just and humane working conditions and terms of EENT. RECRUITMENT & PLACEMENT OF WORKERS Art 13. to insure careful selection of Filipino workers for overseas employment in order to protect the good name of the PH abroad. utilizing. 3. 5. to facilitate & regulate the movement of workers in conformity w/ the national interest. 4. that any person or entity w/c. contracting. promising or advertising for EENT. equitable and stable EENT. or procuring workers and includes referrals. 7. The DOLE . relations that assure protection for the Rs of all concerned parties. 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 . to strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and placement of Administrative Code of 1987 (EO 292) . hiring. programming. Definitions Worker – any member of the labor force whether employed or unemployed. locally or abroad. including the establishment of a registration and/or work permit system.the primary policy-making. transporting. to serve national development objectives.

to organize & establish new EENT offices in addition to existing EENT offices under the DOLE as the need arises. 3. directly/indirectly any fee from the workers or employers. establishment. 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. To formulate & develop plans & programs to implement the EENT promotion objectives of this Title. EMPLOYMENT PROMOTION The Sec of Labor shall have the power & authority: 1. worker or otherwise.Private recruitment entity – any person/assoc engaged in the recruitment & placement of workers. 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 Emigrant – any person. 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. 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. to require any person. Powers & Duties: 1. locally & overseas. and 4. 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 establish & maintain a registration and/or licensing system to regulate private sector participation in the recruitment & placement of workers. BUREAU OF EMPLOYMENT SERVICES (now BLE) . or institution to submit such EENT information as may be prescribed by the Sec of Labor. . locally/overseas without charging. 3. 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.primarily responsible for developing & monitoring a comprehensive EENT program. To formulate & develop EENT programs designed to benefit disadvantaged groups & communities. org. 2. 2.

Provides training and educational guidance and EENT counseling services . in the case of the NCR. To develop a responsible vocational guidance & testing system in aid of proper human resources allocation. The decisions of the NLRC shall be final & unappealable.Special credit assistance for placed overseas workers . 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.Regularly obtains lists of job vacancies from EERS. To develop a labor market information system in aid of proper manpower and development planning. thet the Bureau of Employment Services (BES) (now BLE) may. invites and evaluates applicants. except seamen Original & Exclusive Jurisdiction of the regional offices of DOLE . 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. and 7. 5. publicizes them. To establish & maintain a registration and/or work permit system to regulate the EENT of aliens.serves as EENT service & information center .Also renders special services to the public such as holding of jobfairs.4. To maintain a central registry of skills. – replaced BES w/ BLE. Such fees shall be deposited in the National Treasury as a special acct of the General Fund. arising out of or by virtue of any law or contracts involving Filipino workers for overseas EENT except seamen: Provided. whenever the DOLE deems it appropriate. livelihood and self-employment bazaars . for the promotion of the objectives of the BES. and refers them for probable hiring . Minister of Labor – has the power to impose & collect fees. exercise such power.over all matters/cases involving EE-EER relations including money claims. cities and other strategic areas o PESO . subj to the provisions of Sec 40 of PD 1177. 6. based on rates recommended by the BES.

Other persons/entities as may be authorized by the Sec of DOLE Art 17. Protection of their rights to fair and equitable employment practices.Hiring of workers in infrastructure projects (WHIP) – created WHIP. 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. Public EEnt offices 2.. Deployment of Filipino workers through govt-to-govt hiring . Shipping or manning agents or representatives 5. shall engage in the recruitment & placement of workers. Private recruitment entities 3. Private EENT agencies 4.Work appreciation seminars & conferences and . Formulation. 3. The POEA 6. Members of the diplomatic corps although hirings done by them have to be processed through the POEA 8. 2. 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.Special program for EENT of students (SPES) during summer or semestral breaks . 1. 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 Art 16. Sea-based – those employed in a vessel engaged in maritime navigation Principal Functions of the POEA 1. implementation and monitoring of overseas employment of Filipino workers. PRIVATE RECRUITMENT: GR: No person/entity other than the public EENT offices. 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. Construction contractors if authorized to operate by DOLE and the Construction Industry Authority 7.

Where the PH has concluded Bilateral labor agreements or arrangements. POEA is an administrative (not a court). Drug addiction/possession or trafficking of prohibited drugs. . Disciplinary action cases and other special cases w/c are administrative in character.Regulatory Functions 1. principals. Formulate & implement. and 2. and 2. and such other employers as public interest may require. NO jurisdiction over torts Grounds for Disciplinary Action 1. 3. In the recruitment & placement of workers to service the requirements for trained and competent Filipino workers of foreign govts and their instrumentalities. Adjudicatory Functions 1. Administrative cases involving violations of licensing rules & regulations and registration of recruitment and EEnt agencies/entities. Instruct and guide the workers how to assert their rights and provide the available mechanism to redress violation of their rights. all cases w/c are administrative in character. deploy only to countries: a. involving employers. 2. 4. Regulate private sector participation in the recruitment & overseas placement of workers through its licensing and registration system. involving EERS. 5. contracting partners and Filipino migrant workers. a system for promoting and monitoring the overseas EEnt of Filipino workers taking into consideration their welfare and the domestic manpower requirements. exercising adjudicatory or quasi-judicial functions 4. when necessary. 3. Guaranteeing to protect the rights of Filipino migrant workers. Desertion or abandonment. Observing and/or complying w/ the international laws and standards of migrant workers. disciplinary action cases and other special cases w/c are administrative in character. Jurisdiction of POEA 1. Commission of a felony punishable by Ph laws or by the laws of the host country. principals. Inform migrant workers not only of their rights as workers but also of their rights as human beings. b. involving or arising out of violations of rules & regulations relating to licensing & registration of recruitment and employment agencies/entities. contracting partners and Filipino migrant workers 3. NO jurisdiction to enforce foreign judgment (must be brought before the regular courts). c. in coordination w/ appropriate entities concerned. 2.

Creating trouble at the worksite or in the vessel. Suspension for not more than 90 days. 6. 11. 8.4. Due Process required to terminate employment . 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. esp where the laws of the host country prohibits the same. 7. 12. Gambling. or 3. withheld until such official complies therewith. Embezzlement of company funds or of moneys and properties of a fellow worker entrusted for delivery to kins or relatives in the PH. Drunkenness. 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.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. Gunrunning or possession of deadly weapons. 10. Initiating/joining a strike or work stoppage where thelaws of the host country prohibit strikes or similar actions. Vandalism or destroying company property. and 14. 13. 5. or caused to be. 9. 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. Theft/robbery. Prostitution. Unjust refusal to depart for the worksite after all employment and travel documents have been duly approved by the approp govt agency/ies. The salary of such official who fails to render his decision/resolution w/in the prescribed pd shall be. 2. esp where the laws of the host country prohibit intoxicating drinks.

) If the physician appointed by the seafarer disagrees w/ the company-designated physician’s assessment. 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.Ex: in case of seamen – must be given written notice of the charges against him.) when a seafarer sustains a work-related illness/injury while on board.entitled to death benefits if death occurs during the term of his contract of employment. DOLE 3. or any kind of work w/c a person of his mentality and attainments could do. his fitness/unfitness to work shall be determined by the company-designated physician. 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. The EER is required to furnish him w/ 2 notices: (1) written notice of charge. POEA . It does not mean absolute helplessness.shall be paid beginning on the 1st day of such disability. 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 . b.entitled to death and other benefits under w/c ever is higher (foreign law or Ph law) . and afforded a formal investigation where he can defend himself or thru a representative before he can be dismissed & disembarked. 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. DFA 2. In disability compensation. In case of differing medical assessment a. it is not the injury w/c is compensated. and (2) written notice of dismissal Contracted but not Deployed: Perfected Contract Death benefits of Seafarers .

International organizations.4. replaced the Office of Emigrant Affairs. 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% . Other employers as may be allowed by DOLE. Under RA8042. dependents.assists in the formulation of policies affecting Filipinos overseas and formulates an integrated program that promotes the welfare of Filipinos overseas Art 21. shall pass through the POEA for processing purposes Rationale of the Prohibition 1. Their hiring nonetheless. RPM . to their families. OWWA – Overseas Workers Welfare Administration – provides social & welfare services including insurance coverage. Members of Diplomatic corps. To assure the foreign EER that he hires only qualified Filipino workers Art 19: COMMISSION ON FILIPINO OVERSEAS CFO – attached to the DFA.All OFWs are required to remit a portion of their foreign exchange earnings ranging from 50% . 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. MANDATORY REMITTANE OF FOREIGN EXCHANGE EARNINGS . entities and/or their principals. and/or beneficiaries. 5. . legal assistance. 2. 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 1.80% depending on the worker’s kind of job. 3. FOREIGN SERVICE ROLE AND PARTICIPATION . and 2.Re-Placement and Monitoring Center – develops livelihood programs for the returning workers to reintegrate the returning migrant workers to the Ph society. it shall provide the Filipino migrant worker & his faily assistance in the enforcement of contractual obligs by agencies. and 4. 6. placement assistance and remittance services to Filipino overseas workers.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.

dependents. 2. Private EENT agency for local EENT i. For single proprietorship or partnership – minimum net worth of 200k pesos ii. Workers who fail to comply w/ the mandatory remittance reqment shall be suspended/excluded from the list of eligible workers for overseas EENT. For corporations – a minimum paid up capital of 5ook pesos . Subsequent violations shall warrant his repatriation. or b. or beneficiaries are residing w/ him abroad. Where the worker’s immediate family members. Capitalization a. Such other persons as may be authorized by the Sec of DOLE. Citizenship requirement a. Private recruitment agencies. 3. Shipping or manning agencies. 4. Private EENT agencies/entities shall face cancellation or revocation of their licenses or authority to recruit. Private EENT agencies. Construction contractors w/ a duly issued authority to operate private recruitment entities Qualifications for Participation 1. Filipino citizens. Immigrants and Fil professionals and EEs working w/ UN agencies or specialized bodies Effects of Failure to Remit 1. Fil servicemen working in US military installations.Professionals w/o Board & Lodging – 50% Domestic and other service workers – 50% 1. 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. 2. EERS who fail to comply shall be excluded from the overseas EENT program. 2. and 5. 3. 2. Corporations. partnerships or entities at least 75% of the authorized and voting capital stock of w/c is owned & controlled by Filipino citizens.

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

POEA has the power to: 1. and 2. To ensure prompt & effective recourse against such companies when held liable for applicants/workers’ claim Exemption from Garnishment judgment creditor of the agency. Suspend/cancel the license. rules & regulations. To guarantee compliance w/ prescribed recruitment procedures. Art 32: FEES TO BE PAID BY WORKERS commenced EENT ll always be covered w/ the approp receipt clearly showing the amount paid. Art 30: BONDS The Sec of Labor shall promulgate a schedule of fees for the registration of all applicants for license or authority. and 2. Order the refund/reimbursement of such illegally collected fees Prohibition on Charging Fees . be replenished by the agency w/in 15 days from notice from the POEA. 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. Provincial recruitment and/or job fairs may be allowed only when authorized by POEA in writing.4. * Change of ownership of single proprietorship licensed to engage in overseas EENT shall cause the automatic revocation of the license. Art 31. and terms & conditions of EENT. BONDS All applicants for license/authority shall post such cash and surety bonds as determined by the Sec of Labor including escrow deposits. Purposes: 1.

To charge greater amt than that specified in the schedule of allowable fees (illegal exaction). 5.1. 7. 3. Manning agencies shall not charge any fee from seafarer-applicants for its recruitment & placement services. and such other matters as may be required by the Sec of Labor (failure to comply w/ rules & regulations). To withhold travel docs from applicant workers before departure for unauthorized monetary considerations (withholding documents). To give any false notice. etc. morality or to the dignity of the PH (harmful jobs). entity. 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). and 11. Art 34 & Section 6 RA 8042: PROHIBITED PRACTICES: It shall be unlawful for any indiv. 8. To engage in the recruitment/placement of jobs harmful to public health. 6. or whose license or authority has been suspended. 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 2. revoked or cancelled by the POEA and the Secretary. 3. To become an officer or member of the board of any corp engaged in the mgt of a travel agency. including processing fees shall be imposed against any worker. placement. . 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. testimony. 10. To furnish any false info in relation to recruitment/EENT (false information). To fail to file reports on the status of EENT. No other fees/charges. All expenses for hiring seamen shall be shouldered by foreign shipping principals. etc. 9. or commit any act of misrepresentation to secure a license or authority (false statements). To substitute or alter EENT contracts w/o the approval of the Sec of Labor (alteration of contracts). 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). 4. To obstruct or attempt to obstruct inspection by the Labor Sec or his authorized reps (obstruct inspection). 2. licensee or holder of authority: 1.

Incurring an accumulated 3 counts of suspension by an agency based on final and executor orders w/in the validity period of its license. 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. Deploying workers w/o processing through the POEA. Charging a fee before the worker is employed or in excess of the authorized amt. 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. 4. Violation/s of the conditions of license. 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. Doing recruitment in places outside its authorized area. 2. 3. 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. and 5. 2. 3. and 4. Engaging in acts of misrepresentation for the purpose of securing a license or renewal thereof.Grounds for Revocation of License 1. the manning agent in the PH is jointly & solidarily liable w/ the principal Suability of Foreign Corps .

referrals. or advertising. offers or promises for a fee employment abroad to 2 or more persons shall be deemed so engaged. promising for employment abroad. and 2. 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. and 2. 3. Failure to actually deploy w/o valid reason as determined by DOLE. Recruitment & placement activities of agents or representatives appointed by a licensee. 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. transporting. The offense is committed against 3/more 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. Illegal Recruitment in Large Scale – further requires a 3rd element: 3. whether for profit or not. work different from the actual overseas work. enlisting. 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. or procuring workers and includes (CRAP) contract services. Failure to reimburse expenses incurred by the worker in connection w/ his documentation & processing for purposes of deployment. Also includes the act of reprocessing workers through a job order that pertains to nonexistent work. 2. Elements of Illegal Recruitment 1. when undertaken by a non-licensee or non-holder of authority. individually or as a group Illegal Recruitment as Economic Sabotage: . contracting. Provided that any such non-licensee or non-holder of authority who in any manner. utilizing. and 4. whose appointments were not previously authorized by the POEA shall likewise constitute illegal recruitment. The offender is a licensee/non-licensee or holder/non-holder of authority engaged in the recruitment & placement of workers. Those prohibited practices under Art 34.

2. Conviction for the crime of estafa. if found guilty thereof Illegal Recruitment vs Estafa rged & convicted for both Acts Constituting Estafa .) 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. at his option file at the RTC of the province/city: a. 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. or b. 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 . enabling them to obtain placement fee Venue of criminal action arising from Illegal Recruitment The complainant may.) 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. When illegal recruitment is committed in a large scale (if committed against 3/more persons individually or as a group Consequences of Conviction 1.1. 3. 2. Forfeiture of the cash & surety bonds. Automatic revocation of license/authority. 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. enterprise or scheme). Before recruiting.

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: . Note: AEP should be secured regardless of the source of compensation and duration of the EENT. whether the EENT is part-time or temp An AEP is issued based on the ff: 1. non-resident foreign nationals admitted to the PH on non-working visas and who wish to seek EENT. able and willing to do the job for the EER. 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. 3. together his EER. Compliance by the applicant EER or the foreign national w/ the substantive & documentary requirements. 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. missionaries or religious workers who intend to engage in gainful EENT. 2. all foreign nationals seeking admission to the PH for the purpose of EENT. 2. all non-resident foreign nationals already working in the PH. and 4. Determination of DOLE Sec that there is no available Filipino national who is competent.Liability of Company Engaged in Illegal Recruitment – may be held as principal. and 3. able and willing at the time of application to perform the services for w/c the alien is desired AEP Employment Permit Required 1.

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

Aliens who are members of the Board of directors of corps in proportion to their allowable participation in the capital of such entities. 2. 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. Aliens shall not transfer to another job or change his EER w/o prior approval of the Sec of Labor. Non-resident aliens shall not take up EENT in violation of the provisions of the Code.4. 2. Enterprises registered under the Omnibus Investment Code in case of technical. Where the Sec of Justice specifically authorizes the EEnt of technical personnel. w/c shall in no case exceed 5yrs Rule on Nationalized Business GR: Foreigners may NOT be employed in certain nationalized business. PROHIBITION AGAINST TRANSFER OF EENT 1. Meritorious objection or information against the EENT of foreign national as determined by the Regional Dir. To attain international competitiveness. . 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) .replaced the National Manpower & Youth Council under RA 7796 Statement of Goals & Objectives 1. EER has terminated the EENT of the foreign national. but for a limited pd. Foreign national has a derogatory record. 5. and 6. Validity of EENT Permit provides otherwise. Art 41. supervisory or advisory positions. and 3.

2. 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. Apprentice 2. To meet demands for quality middle-level manpower. enterprise. and 5. To establish apprenticeship standards for the protection of apprentices. industry or other activity. To inculcate desirable values. To help meet the demand of the economy for trained manpower. 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. or 2. To recognize & encourage the complementary roles of pub & private institutions. business. and 3. w/c is engaged in the application of advanced technology . To disseminate scientific & technical knowledge base. Art 58: DEFINITION OF TERMS Apprenticeship – practical training on the job supplemented by related theoretical instruction. 3. Handicapped Art 57 STATEMENT OF OBJECTIVES FOR THE TRAINING & EENT OF SPECIAL WORKERS 1.2. Skilled workers who have become highly competent in their trade or craft as attested by industry. 4. Learner 3. To establish a national apprenticeship program. TITLE 2: TRAINING & EMPLOYMENT OF SPECIAL WORKERS CH1: TYPES OF SPECIAL WORKERS 1. Middle-level Manpower 1.

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

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

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

Inc. and 7 days paid vacation leave per month. On the second issue. To Filipino workers. Inc. The answer is in the affirmative. 2. for the law was enacted in the exercise of the police power of the State to regulate a business. Article XIII on labor as a protected sector. with the noble end in view of ensuring respect for the dignity and well-being of OFWs wherever they may be employed. 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. Upon complaint filed by Serrano before the Labor Arbiter (LA). Article II and Section 3. Hence. Serrano filed a Motion for Partial Reconsideration.. 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. as Chief Officer. Article III of the Constitution on non-impairment of contracts. Whether or not the subject clause violates Section 10. HELD: On the first issue. FACTS: Petitioner Antonio Serrano was hired by respondents Gallant Maritime Services. INC. Article III of the Constitution. The answer is in the negative. leaving an unexpired portion of nine months and twenty-three days. with the basic monthly salary of US$1.Art 68: APTITUDE TESTS ANTONIO M. SERRANO VS. and Marlow Navigation Co. On appeal. profession or calling. ISSUES: 1. . under a POEA-approved contract of employment for 12 months. but this time he questioned the constitutionality of the last clause in the 5th paragraph of Section 10 of RA 8042.400. the NLRC modified the LA decision based on the provision of RA 8042. the rights guaranteed under the foregoing constitutional provisions translate to economic security and parity.. plus $700/month overtime pay. Respondents did not deliver on their promise to make Serrano Chief Officer. serving only two months and 7 days. Whether or not the subject clause violate Section 1. Serrano refused to stay on as second Officer and was repatriated to the Philippines. the dismissal was declared illegal. and Section 18. particularly the recruitment and deployment of OFWs. The subject clause may not be declared unconstitutional on the ground that it impinges on the impairment clause. GALLANT MARITIME SERVICES. On the date of his departure.

However. Bamba. for a fee the herein complainants. However. The subject clause ―or for three months for every year of the unexpired term. enlist and deploy or transport workers for overseas employment. namely Imelda Bamba. On the scheduled departure.: FACTS: Sometime in the months of January to February.A. 1996. She was on her way to SM North Edsa where she was a company nurse. No. Lagman and Alma E. among OFWs with employment contracts of more than one year. for work or employment in Los Angeles. appellant told her to resign from her work because she was booked with Northwest Airlines and to leave for USA on Feb. Instead. she met the appellant on a bus. Sometime in January 1996. the appellant did not issue a receipt for the said money. Appellant gave his pager number and instructed her to contact him is she’s interested. Sr. . namely. 8042 is violative of the right of petitioner and other OFWs to equal protection. a closer examination reveals that the subject clause has a discriminatory intent against. willfully. Imelda D. Trying to contact him to the supposed residence and hotel where he temporarily resided. People of the Philippines (petitioner) v Jamilosa (repondent) GR No. Second. OFWs with employment contracts of less than one year vis-à-vis OFWs with employment contracts of one year or more. and Third. representing to have the capacity. The subject clause singles out one classification of OFWs and burdens it with a peculiar disadvantage. the subject clause in the 5th paragraph of Section 10 of R. in Nursing Home and Care Center. According to Bamba.. Prosecution presented three witnesses. California. went to her house and gave him the necessary documents and handed to appellant the amount of US$300. appellant fetched her at her office. 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. the subject clause appears facially neutral. but to no avail. did then and there. and an invidious impact on.A.S. U. 169076 January 23. Geraldine Lagman and Alma Singh. appellant failed to show up. authority or license to contract. Appellant told her he could help her get employed as nurse. for it applies to all OFWs. unlawfully and criminally recruit. Thus. OFWs vis-à-vis local workers with fixed-period employment. OFWs at two levels: First. Singh. 8042 is DECLARED UNCONSTITUTIONAL. 2007 Callejo. Appellant introduced himself as a recruiter of workers for employment abroad.Upon cursory reading. whichever is less‖ in the 5th paragraph of Section 10 of Republic Act No. 1996.00 and the latter showed her a photocopy of her supposed US visa. Geraldine M. contract and promise to deploy. Thereafter.

The accused Jamilosa testified on direct examination that he never told Bamba that he could get her a job in USA. he made Bamba. 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. she gave all the pertinent documents. offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement. who is also a registered nurse. seeking advices from him. 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. whether for profit or not. and includes referrals. contract services. all to effect that he never recruited them and no money was involved. Illegal recruitment shall mean any act of canvassing. hiring. Lagman handed to the latter the necessary documents and an amount of US$300. At that time Bamba informed her that she was going to meet to appellant. The appellant convinced them of his ability to send them abroad. contracting. transporting. the truth being that she wanted to leave SM as company nurse because she was having a problem thereat. utilizing. enlisting. whether for profit or not.Winess Lagman testified that she is a registered nurse. enlisting. One week before her scheduled flight. In January 1996. she gave P10. They paged the appellant through his beeper to set up another appointment but the appellant avoided them as he had many things to do. lest he be charged as a recruiter. Lastly.000 to the appellant covering half price of her plane ticket. Four days after their meeting. Thereafter. contract services. declared that she first met the appellant at SM North Edsa when Imelda Bamba introduced the latter to her. Alma Singh. in any manner. Bamba called him several times. or procuring workers and includes referring. a telephone company called her because her number was appearing in appellants cell phone documents. transporting. utilizing. He started courting Bamba and went out dating until latter became his girlfriend. She became suspicious and told Bamba about the matter. contracting. That any person or entity which. promising or advertising for employment abroad. As complainants seeking advice on how to apply for jobs abroad. she went to SM North Edsa to visit her cousin Bamba. or procuring workers. ISSUE: Illegal Recruitment in a large scale? HELD: ―Recruitment and placement" refers to any act of canvassing. On their next meeting. Bamba invited Lagman to go with her. The caller is trying to locate him as he was a swindler. promising or advertising for employment. Lagman and Singh sign separate certifications. RTC rendered judgment finding accused guilty beyond reasonable doubt of illegal recruitment in large scale. Provided. He met Lagman and Singh thru Bamba. hiring. On their next meeting. locally or abroad.

Provided. organizing. the findings of the trial court. 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 prosecution mustered the requisite quantum of evidence to prove the guilt of accused beyond reasonable doubt for the crime charged. and to other officers/members of the managerial staff . affirmed on appeal by the CA. ALL employees in all establishments & undertakings whether for profit or not b. That any such non-licensee or non-holder who. the latter is considered as being engaged in recruitment activities. To prove illegal recruitment in large scale. 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. (2) accused did not have the license or the authority to lawfully engage in the recruitment and placement of workers.when undertaken by a non-licensee or non-holder of authority. are conclusive on this Court absent evidence that the tribunals ignored. Includes supervisiors (only as regards Art 82) – likewise responsible for the effective & efficient operation of their respective depts . offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. 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. or misapplied substantial fact or other circumstance. Indeed. COVERAGE a.under the direct supervision of the EER. and assist in the planning. 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. 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. directing controlling. misunderstood. communicating and in making decisions in attaining the company’s set goals & objectives a. Even in the absence of money or other valuables given as consideration for the "services" of appellant. and (3) accused committed the same against three or more persons individually or as a group. staffing. the prosecution is burdened to prove three (3) essential elements. Such standards apply only if there exists EER-EE relationship ii. 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. in any manner.

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

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. Plus: the courts added the existing economic conditions prevailing bet the parties (like payrolls) in determining the existence of EER-EE Relship. The Economic Dependence Test – observes the need to consider the existing conditions bet the parties Best approach: Apply the two-tiered test involving: 1. iii. the degree of dependency of the worker upon the employer for his continued employment in that line of business . the payment of wages. judgment or foresight required for the success of the claimed independent enterprise. the underlying economic realities of the activity or relationship a. ii. the nature and degree of control exercised by the employer. iv. the extent to w/c the services performed are an integral part of the employer’s business.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. while EE cannot substitute another in his place w/o consent of his EER. f. 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. the amount of initiative. e. the selection and engagement of the EE. ELEMENTS OF EE-EER RELSHIP (Four-fold Test) i. 2. skill. to the extent of the worker’s investment in equipment and facilities. the permanency and duration of the relationship between the worker and the employer. b. c. the worker’s opportunity for profit and loss. and g. and 2. d. the power of dismissal. 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. where there is an EER-EE relationship TESTS OF EENT Relship: i.

id card ii. Voluntary – initiated by the ER unilaterally or by contractual stipulation An employer is free to regulate. (salary distortion) .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. -only contractor – serve as an agent of the true employer by merely recruiting & supplying people (prohibited). work supervision. memorandum an EE – not a test of EEnt status. 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. time. dismissal and recall of workers. work assignments. a contractor is not an employee. may also arise from established practice in the enterprise 2 Kinds of Employment Conditions a. pakyaw basis does not mean workers are independent contractors Independent contractors.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. the contractor’s client. including hiring. Statutory – provided for by law b. all aspects of EENT. GR: While EE-ER relationship exists bet a job contractor and the workers that he hires. working methods. working regulations. vouchers of salaries iii. supervision of workers. lay-off of workers and discipline. place and manner of work. Conditions of Employment – laid down by law or by contract concluded individually w/ an EE or collectively w/ a group g. tools to be used. May devise & implement new salary scales applicable only to future EES. transfer of EES. processes to be followed. accdg to his own discretion & judgment. h. no such relationship exists bet those workers and the job contractee.

4. in cases where more than 8-hr operation is necessary. They customarily & regularly exercise discretion and independent judgment. They execute. workshift may exceed 8hrs w/ corresponding overtime pay. shall not exceed 8 hrs/day Purpose of 8-hr Labor law – not only to safeguard the health & welfare of the laborer/EE. under gen supervision. Art 84. Their primary duty consists of the performance of work directly related to mgt policies of their ER. nutritionists. nurses. experience or knowledge. 5. under gen supervision. work along specialized/technical lines requiring special training. (What the law regulates is work exceeding 8hrs) GR: Wage & benefits of a part-timer are in proportion to the number of hrs worked. NORMAL HOURS OF WORK i. attendants. psychologists. to utilize different shifts to laborers/EEs working only for 8 hrs each Part-time Work – not prohibited. pharmacists. dieticians. but in a way to minimize unemployment by forcing ERs.through a contract freely entered into. and . special assignments and tasks. paramedics. 2.Members/Officers of the Managerial Staff: Duties & Responsibilities 1. 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. social workers. 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. midwives. 3. HOURS WORKED shall include: 1. all time during w/c an EE is required to be on duty or to be at a prescribed workplace. resident physicians. Work hrs of Health Personnel Health personnel – shall include. They execute. 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 . but not limited to. lab technicians.

all time spent for such work shall be considered as hrs worked. 3. An EE need not leave the premises of the workplace in order that his rest period shall not be counted. to go elsewhere. or the EE could not abandon his work at the end of his normal working hrs because he had no replacement. 2. Preliminary (before work) and postliminary (after actual work) activities are deemed performed during working hrs. If the work performed was necessary. controlling factor is WON time spent in idleness is so spent predominantly for the ER’s benefit or for the EE’s 1. whether waiting time constitutes working time depends on the circumstances on each particular case l. 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. Pre/Postliminary Activities j. regardless of WON such hrs are spent in productive labor or involve physical/mental exertion. 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. where such activities are controlled/required by the ER and are pursued necessarily & primarily for the ER’s benefit Waiting Time k. 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. or it benefited the ER.2. if the work was w/in the knowledge of his ER/immediate supervisor. All hrs are hrs worked w/c the EE is required to give to his ER. may rest completely and may leave his workplace. The meal time is not compensable if he is completely free from duties during his meal period even though he remains in the workplace. whether w/in or outside the premises of his workplace. . 4. it being enough that he stops working. 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.

Meetings and Training Programs – not worktime if: . 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.eating (ex. the time they stay in the place of work sould not be discounted from their working hrs o. With Cellular phone or Other Contact Device r. Travel from home to work – outside his regular working hrs and is required to travel to his regular place of business b. if EE is kept ―w/in reach‖ through a cell phone. or traveling to/from place of work a. On Call n. Travel that is all in a day’s work – time spent by an EE in travel as part of his c. p. m. 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. 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. 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. conditions. or in absence of an agreement. 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. depends upon the express/implied agreement of the parties. Travel away from home – travel that keeps an EE away from home overnight Lectures. 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. although EE can rest completely and may not be actually at work. riding. he is NOT on call Travel Time – time spent walking.

b. in cases of actual or impending emergencies or there is urgent work to be performed on machineries. 2. * 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. where work is non-manual (does not involve strenuous physical exertion). he ceases to work b. to go somewhere else. where the lunch period or mealtime is predominantly spent for the ER’s benefit (considered overtime) . 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. he bears the burden of proving his allegation w/ clear & satisfactory evidence Art 85. Attendance is in fact voluntary. they need not leave the boat in order that his rest period not be counted Requisites for non-counted rest period a. MEAL PERIODS t.or 2. Attendance is outside of the EE’s regular working hrs. The EE does not perform any productive work during such attendance.a. and c. where the establishment regularly operates not less than 16hrs a day 3. . equipment or installations to avoid serious loss w/c the ER would otherwise suffer. where it is less than 60 minutes (but not less than 20minutes) must be with full pay when: 1. may rest completely c. must be at least 60minutes time-off for regular meals GR: not compensable 1. leave or may leave at his will the spot where he actually stays while working.

EE’s may leave the company premises as long as they return to their posts on time.the receipt of OT pay will not preclude payment of NSD pay . OT pay will become due and demandable if they are permitted/made to work beyond 4:30 pm. EEs voluntarily agree in writing and waive their OT pay. No diminution in the salary and other fringe benefits of the EEs already existing.4. 2. The arrangement is of temporary duration.burden of proof of payment of NSD . Note: The 8-hr work period does not include the meal break. Value of benefits is equal to the compensation due them.not waivable (founded on public policy) . 3. Work is not physically strenuous and they are provided w/ adequate coffee breaks in the morning & least 10% of his regular wage for each hr of work performed bet 10PM and 6AM . then the 10% night shift differential should be based on the OT rate . EEs may request that their meal pd be shortened so that they can leave work earlier Requisites 1. 4. w/o any deduction . 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. 5. Art 86 NIGHT SHIFT DIFFERENTIAL . and 6. 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.ER Art 87.given as premium for working at a time for sleep & rest establishments regularly employing 5 employees and below -6am is OT work. where the work is necessary to perevent serious loss of perishable goods c.

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 .any work in excess of 8 hrs not falling w/in the 24-hr pd is not considered as OT work a.Rates 1. 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 . 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 . 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. 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.regardless of the day of the week or hr of the day . 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.

s. Neither is an express approval by a supervisor needed. 2. In firms using substances. It is sufficient that the EE is permitted or suffered to work. 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. 3.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.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 whether they actually rendered service in excess of 8 hrs Action to Recover Compensation . written authority after office hrs is required for the EE to be entitled to compensation work. 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. When the waiver is made in consideration of benefits & privileges w/c may be more than what will accrue to them in OT pay.e. Any contrary stipulation is null and void. 1. Requisites of Compressed Workweek to be valid: 1. but no OT pay may be claimed. brownout. under w/c the laborers cannot waive their R to extra compensation . and 2. or operating in conditions that are hazardous to health. machine repair. . 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. 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. The scheme is expressly and voluntarily supported by majority of the EEs affected. work could be done (i. The DOLE Regional Office is notified.

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

Should be threshed out by the ER and EE . Broken-time schedule – the work schedule is not continuous but the number of hrs w/in the day or week is not reduced 5.0% 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. workdays or workweek. Forced leave – EEs are required to go on leave for several days or weeks.DOLE Reg Ofc must be notified prior to implementation . utilizing their leave credits if there are any 4. ERs may adopt them after due consultation w/ EEs. Flexi-holiday schedule – Ees agree to avail themselves of the holidays at some other days. provided that there is no diminution of existing benefits as a result of such arrangement Art 88.alternative work arrangements or schedules other than the traditional or standard work hrs. there must be: 1.Whether on the same day or any other day is prohibited by law . Rotation of workers – where the EEs are rotated/alternately provided work w/in the workweek 3. UNDERTIME NOT OFFSET BY OVERTIME . taking into acct the adverse consequence of the situation on the performance and financial condition of the company. A clear written agreement 2.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 .Its effectivity and implementation shall be temporary.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 . the FWAs include: 1. Reduction of workdays – where normal workdays per week are reduced but should not last for more than 6 months 2. .

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

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

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

EDSA Revolution Anniversary D. 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 .