Labor Standards Reviewer 1
De Leon, Alessandra 1AA
Labor Legislation consists of statutes, reglations and
jurisprudence governing the relations between capital
and labor, by providing for certain employment
standards and a legal framework by negotiating,
adjusting, and administering those standards and other
incidents of employment.
2 DIVISIONS OF LABOR LEGISLATION:
1. Labor standards law ast hat which that sets
out the least or basic terms, conditions, benefits
of employment that employers must provide or
comply with and to which employees are
entitled to as matter of legal right.
- Minimum requirements prescribed by
existing laws, rules and regulations relating
to wages, hours of work, cost-of-living
allowances, and other monetary and
welfare benefits, including occupational,
safety, and health standards.
2. Labor relations law defines the status, rights
and duties, and the institutional mechanisms
that govern the individual and collective
interactions of employees, employers and their
representatives
Labor - is understood as physical toil although it
does not necessarily exclude the application of skill,
thus there is skilled and unskilled labor.
Skill is the familiar knowledge of any art or
science, united with readiness and dexterity in
execution or performance or in the application of
art or science to practical purposes
Work is broader than labor, as it covers all forms
of physical or mental exertion, or both combined,
for the attainment of some object other than
recreation or amusement per se.
LABOR LAW AND SOCIAL LEGISLATION
Social legislation those laws that provide
particular kinds of protection or benefits to society
or segments thereof in furtherance of social justice.
LABOR LAWS ARE SOCIAL LEGISLATION. BUT NOT
ALL SOCIAL LEGISLATIONS ARE LABOR LAWS.
Labor laws directly affect employment while social
legislations governs the effect of employment.
Social Justice as defined by Dr. Jose P. Laurel in
Calalang v. Williams, is neither communism, nor
despotism, nor atomism, nor anarchy, but the
equalization of social and economic forces by the
State so justice in its rational and objectively secular
conception may be approximated.
While social justice is the raison d'etre of labor laws,
their basis or foundation is the police power of the
State.
Police Power is the power of the government to enact
laws, within constitutional limits, to promote the order,
safety, health, morals and general welfare of society.
It is settled that state legislatures may enact laws for
the protection of the safety and health of employees as
an exercise of police power.
CONSTITUTIONAL RIGHTS AND MANDATES
If there should be conflict between constitutional
provisions and those of the Labor Code, the
Constitution shall prevail as it is the highest law of the
land.
Basic Rights of Workers guaranteed by the Constitution:
1. Right to organize themselves
2. To conduct collective bargaining agreement or
negotiation with the management
3. To engage in peaceful and concerted activities.
4. To enjoy security of tenure
5. To work under humane conditions
6. To receive a living wage
7. To participate in policy and decision-making
processes affecting their rights and benefits
Note: RIGHTS ARE BASED ON THE BASIC RIGHT TO
PROPERTY.
Art. 4. Construction in favor of labor.
All doubts in the implementation and interpretation of
the provisions of this Code, including its implementing
rules and regulations, shall be resolved in favor of
labor.
The Supreme Court adopts the liberal approach which
favors the exercise of labor rights. The labor law is
liberally construed in favor of the workers and strictly
construed against the employers.

Reason for according greater protection to employees
In the matter of employment bargaining, there is no
doubt that the employer stands on higher footing than
the employee.
Those who have less in life should have more in law.
MANAGEMENT RIGHTS
It should not be supposed that every labor dispute will
be automatically decided in favor of labor. Management
has also its own rights which are entitled to respect and
enforcement in the interest of simple fair play.
The law, in protecting the rights of the laborer,
authorizes neither oppression nor self-destruction of
the employer.
Right to Return of Investments (ROI) the employer
has the right to recover his investments and to make
profit. The Constitution provides that the
State shall regulate the relations between workers and
employers, recognizing the right of labor to its just
share... and the right of enterprises to reasonable
returns on investments, and to expansion and growth.
The Right to Prescribe Rules employers have the right
to make reasonable rules and regulations for the
government of their employees, and when employees,
with knowledge of an established rule, enter the
service, the rule becomes part of the contract of
employment.
The Right to Select Employees an employer has a
right to select his employees and to decide when to
engage them. The State has no right to interfere in a
private employment; it cannot interfere with the liberty
of contract with respect to labor except in the exercise
of the police power. If the employer can compel the
employee to work against the latter's will, this is
servitude. If the employee can compel the employer to
give him work against the employer's will, this is
oppression.
Right to Transfer or Discharge Employees the
employer has the perfect right to transfer, reduce or
lay off personnel in order to minimize expenses and to
insure the stability of the business, and even to close
the business, provided the transfer or dismissal is not
abused but is done in good faith and is due to causes
beyond control. To hold otherwise would be oppressive
and inhuman.
Labor Standards Reviewer 2
De Leon, Alessandra 1AA
CAN LABOR ORGANIZATIONS BE EMPLOYERS?
** YES. Even if its a conglomeration of unions.
ART. 6 APPLICABILITY
Labor Code applies to government corporations
incorporated under the Corporation Code. The
government-owned and controlled corporations with
ORIGINAL CHARTER refer to corporations chartered by
special law, as distinguished from corporations
organized under our general incorporation statute, the
Corporation Code. The test now is the MANNER OF
CREATION. Government Corporations created by
original (special) charter are subject to CIVIL SERVICE
LAW, while those under the general Corporation Law
are covered by the Labor Code.
WITH ORIGINAL CHARTER = CIVIL SERVICE LAW
FOUR-FOLD TEST AND TWO-TIERED APPROACH in
determining employee-employer relationship.
Four Fold Test:
1. The selection and engagement of the employee
2. The payment of wages
3. The power of dismissal
4. Employers power to control the employee with
respect to the means and methods by which the
work is to be accomplished.
Note: The so-called control test is the most important
element.
Two-tiered Approach:
1. The putative employers power to control the
employee with respect to the means and
methods to which the work is to be
accomplished
2. The underlying economic realities of the activity
or relationship
Two-tiered approach provides us with a framework of
analysis, which would take into consideration the
totality of circumstances surrounding the true nature of
the relationship between the parties. Such as:
a. The extent to which the services performed are
an integral part of the employers business
b. The extent of workers investment in
equipment and facilities
c. The degree of control exercised by the
employer

d. The workers opportunity for profit and loss
e. The amount of initiative, skill, judgment, or
foresight required for the success of the
claimed interdependent enterprise
f. The permanency and duration of the
relationship between the employer and the
employee
g. The degree of dependency of the worker upon
the employer for the continued employment in
the line of business
The proper standard of economic dependence is
whether the worker is dependent on the alleged
employer for his continued employment for that line of
business
(Angelina Francisco v. NLRC GR No. 170087)
EMPLOYEE any person who performs services for an
employer, either or both physical and mental efforts are
used and who receives compensation for such services,
where there is an employer-employee relationship.
RIGHT TO HIRE: Right or Prerogative?
It is both a privilege and a right but its not absolute. It is
subject to limitations couched in certain laws.
LIMITATIONS:
1. Labor Code Articles 136, 139 and 236
136 It shall be unlawful for an employer to require as
a condition of employment or continuation of
employment that a woman employee shall not get
married xxx
139 Minimum Age Requirements:
a. No child below fifteen years of age except when
he works directly under the sole responsibility
of his parents or guardians, and his employment
does not interfere in his schooling
b. Any person between 15 and 18 years of age
may be employed for such numbers or hours
determined by Sec. Of Labor
c. Non-employment of a person below 18 years of
age in an undertaking which is hazardous or
deleterious in nature as determined by the Sec
of Labor
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236 ULP
(b) to require as a condition of employment that a
person or an employee shall not join a labor
organization or shall withdraw from one to which he
belongs.
2. Special Laws
RA 7160 Sec. 12: No children below fifteen
years of age shall be employed except:
- when under the sole responsibility of his
parents or guardians, provided that his
employment neither endangers his life,
safety, etc: Provided further, that the
parent shall provide the child with the
prescribed primary and secondary
education.
- Public Entertainment: Essential. The
contract is with the express agreement of
the child concerned.
RA 9231 Child labor.
RA 7877 Anti-Sexual Harassment Act
RA 8504 Phil. Aids Prevention and Control Act
of 1998
RA 9208 Anti-Trafficking in Persons Act of
2003
RA 7277 Magna Carta for Disabled Person
Sec. 32, Title 3, Chapter 1
RA 8971 Gen. Banking Laws of 2000
DOLE DO No. 4 Series of 1999

WAGES AND WAGE FIXING
WAGE AND SALARY: Distinctions
Wage applies to manual labor, skilled or unskilled,
paid at stated times, and measured by the day, week,
month or season.
- Pay for a lower and less responsible
character of employment.
Salary denotes a higher degree of employment, or a
superior grade of services, and implies a position or
office
- Suggestive of a larger and more permanent
or fixed compensation for more important
services
Note: Both words generally refer to one and same
meaning which is a reward or recompense for services
performed.
FACILITIES AND SUPPLEMENTS: Distinguished
Facilities shall include articles or services for the
benefit of the employee and his family, but shall not
include tools of the trade and articles. It is wage-
deductible.
Supplements - when the benefit or privilege given to
the employee constitute an extra remuneration over
and above his basic or ordinary earning or wage. It is
not wage deductible.
Note: The criterion is not so much with the kind of the
benefit or item, but he purpose.
Requirements for Deducting Value of Facilities:
a. Proof must be shown that such facilities are
customarily furnished by the trade
b. The provision of the deductible facilities must
be voluntarily accepted in writing by the
employee
c. Facilities must be charged at a fair and
reasonable value
**SALARY EXCLUDES ALLOWANCES
FAIR DAYS WORK FOR FAIR DAYS LABOR
If there is no work performed by the employee, there
can be no wage or pay unless the laborer was able,
willing, and ready to work but was prevented by the
management or was illegally locked-out suspended or
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dismissed. Thus it has been held that where the failure
of workers to work was not due to the employers fault,
the burden of economic loss suffered by the employees
should not be shifted to the employer. Each must bear
his own loss.
EQUAL PAY FOR EQUAL WORK
Employees working in the Philippines, if they are
performing similar functions and responsibilities under
similar working conditions, should be paid under the
principle of equal pay for equal work
WORKERS LIEN
Art. 1707, 1708 and 1709 of CIVIL CODE
MINIMUM WAGE RATES
Statutory Minimum Wage is the lowest wage rate
fixed by law that an employer can pay his employees.
Compensation which is less than such minimum rate is
considered an underpayment that violates the law
** The establishment of the minimum wage benefits
directly the low-paid employees, who now receive
inadequate wages on which to support themselves and
their families. It benefits all wage earners indirectly be
setting a floor below which their remuneration cannot
fall. It raises the standard of competition among
employers, since it would protect the fair-minded
employer...from the competition of the employer who...
[pays] his workers a wage below subsistence.
** The employer cannot exempt himself from the
liability to pay the minimum wage because of the poor
financial condition of the company, the payment of
minimum wages not being dependent on the
employers ability to pay.
** To promote productivity-improvement and gain-
sharing measures to ensure a decent standard of living
for the workers and their families; to guarantee the
rights of labor to its just share in the fruits of
production; to enhance employee generation in the
country-side from industry dispersal and to allow
business and industry reasonable returns on
investment, expansion and social economic force
**BENEFITS BOTH EMPLOYERS AND EMPLOYEES

EXEMPTIONS:
a. Household or domestic helpers. Including
family drivers and persons in the personal
service of another
b. Homeworkers engaged in needle work
c. Workers employed in any establishment
duly registered with the National Cottage
Industries and Devt Authority
d. Workers in any duly registered cooperatives
e. BMBEs (BMBE Act of 2002) Barangay
Micro-Business Enterprises
** BMBE is defined as any business
enterprise engaged in the production,
processing, or manufacturing of products
whose total assets including those arising
from loans but exclusive of the land, on
which the office, plant and equipment are
situated, shall not be more than 3 MILLION
PESOS.
f. Establishments employing not more than 10
persons.
CREATION OF NATIONAL WAGES AND PRODUCTIVITY
BOARD (ARTICLE 120)
ARTICLE 121 POWERS and FUNCTIONS OF NWPC
(a) To act as the national consultative and advisory
body to the President of the Philippines and Congress
on matters relating to wages, incomes and productivity;
(b) To formulate policies and guidelines on wages,
incomes and productivity improvement at the
enterprise, industry and national levels;
(c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and
productivity measures at the regional, provincial, or
industry levels;
(d) To review regional wage levels set by the Regional
Tripartite Wages and Productivity Boards to determine
if these are in accordance with prescribed guidelines
and national development plans;
(e) To undertake studies, researches and surveys
necessary for the attainment of its functions and
objectives, and to collect and compile data and
periodically disseminate information on wages and
productivity and other related information, including,
Labor Standards Reviewer 5
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but not limited to, employment, cost-of-living, labor
costs, investments and returns;
(f) To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to determine
whether these are consistent with national
development plans;
(g) To exercise technical and administrative supervision
over the Regional Tripartite Wages and Productivity
Boards;
(h) To call, from time to time, a national tripartite
conference of representatives of government, workers
and employers for the consideration of measures to
promote wage rationalization and productivity; and
(i) To exercise such powers and functions as may be
necessary to implement this Act.
The Commission shall be composed of
a. the Secretary of Labor and Employment as ex-
officio chairman,
b. the Director-General of the National Economic
and Development Authority (NEDA) as ex-officio
vicechairman,
c. and two (2) members each from workers and
employers sectors who shall be appointed by
the President of the Philippines upon
recommendation of the Secretary of Labor and
Employment to be made on the basis of the list
of nominees submitted by the workers and
employers sectors, respectively, and who shall
serve for a term of five (5) years. The Executive
Director of the Commission shall also be a
member of the Commission.
The Commission shall be assisted by a Secretariat to be
headed by an Executive Director and two (2) Deputy
Directors, who shall be appointed by the President of
the Philippines, upon the recommendation of the
Secretary of Labor and Employment.
ARTICLE 122 Powers and functions of the Regional
Boards in their respective territorial jurisdictions
a. To develop plans, programs and projects
relative to wages, incomes and productivity
improvement for their respective regions;
b. To determine and fix minimum wage rates
applicable in their regions, provinces or

industries therein and to issue the
corresponding wage orders, subject to
guidelines issued by the Commission;
c. To undertake studies, researches, and surveys
necessary for the attainment of their functions,
objectives and programs, and to collect and
compile data on wages, incomes, productivity
and other related information and periodically
disseminate the same;
d. To coordinate with the other Regional Boards
as may be necessary to attain the policy and
intention of this Code;
e. To receive, process and act on applications for
exemption from prescribed wage rates as may
be provided by law or any Wage Order; and
f. To exercise such other powers and functions as
may be necessary to carry out their mandate
under this Code.
Each Regional Board shall be composed of
a. the Regional Director of the Department of
Labor and Employment as chairman,
b. the Regional Directors of the National
Economic and Development Authority and the
Department of Trade and Industry as vice-
chairmen and
c. two (2) members each from workers and
employers sectors who shall be appointed by
the President of the Philippines, upon the
recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list
of nominees submitted by the workers and
employers sectors, respectively, and who shall
serve for a term of five (5) years.
Each Regional Board to be headed by its chairman
shall be assisted by a Secretariat.
Purpose of RTWPB:
The intention was to rationalize the wages, first,
by providing full time boards to police wages round-the-
clock, and second, by giving boards enough powers to
achieve this objective.
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WAGE FIXING PROCEDURE
Issuance of Wage Order Within 30 days after the
conclusion of the last hearing, the Board shall decide
based on the merits of the petition, and where
appropriate, issue a wage order establishing the
regional minimum wage rates. PROVIDED: that such
wage rates shall not be lower than the regional
minimum wage rate.
Contents: shall specify region, province or industry and
provide exceptions, if any, subject to the guidelines
issued by the Commission
Frequency: not be disturbed for a period of 12 months
from its effectivity. In the event that supervening
conditions demand a review of the minimum wage
rates, the Board can exercise its wage fixing function
even before the expiration of the said period.
Effectivity 15 days after its publication in at least one
(1) newspaper of general circulation
IRR The board shall prepare, with the approval of the
Sec. Of Labor, the implementing rules and regulations
upon recommendation of the Commission, not later
than 10 days from the issuance of the Wage Order.
** Sec of Labor shall act within 20days upon receipt
NOTE: The RTWPB can issue wage orders without the
approval of NWPC. But the IRR needs approval.
ART. 124 STANDARDS AND CRITERIA FOR MINIMUM
WAGE FIXING
a. the demand for living wages
b. wage adjustment vis a vis the consumer price
index
c. cost of living and changes or increases therein
d. needs of workers and their families
e. need to induce industries to invest in the
countryside
f. improvements in standards of living
g. the prevailing wage levels
h. fair return of capital
i. effects on employment generation and family
income
j. the equitable distribution of income and wealth
along the imperatives of economic and social
development

TWO METHODS OF MINIMUM WAGE ADJUSTMENT
1. Fixing of determinate amount that would be
added to the prevailing statutory minimum
wage
2. Salary-Ceiling method the wage adjustment
is applied to employees receiving a certain
denominated salary ceiling.
WAGE DISTORTION
- A situation where an increase in prescribed
wage results in the elimination or severe
contraction of intentional quantitative
differences in wage or salary rates between
and among employee groups in an
establishment as to effectively obliterate
the distinction embodied in such wage
structure based on skills, length of service
or other logical bases of differentiation.
** No salary distortion if the employees are located in
different regions.
Correcting Distortion:
The legislative intent is to encourage the parties
to seek solution to their problem of wage distortions
through voluntary negotiation or arbitration, rather
than strikes, lock-outs or other concerted activities.
Unorganized establishments shall be settled through
the NCMB and if remains unsolved after 10 days of
conciliation, shall be referred to any branch of of the
NLRC.
Organized CBA negotiations or grievance machinery, if
remains unsolved, voluntary arbitration.
Double Indemnity and Imprisonment: Sec 12 of RA
6727 as amended by RA 8188
Paragraph 3 The employer shall be ordered to
pay an amount equivalent to double the unpaid
benefits owing to the employees, provided, that
payment of indemnity shall not absolve the employer of
his criminal liability.
WAGE ENFORCEMENT AND RECOVERY
Art. 128. Visitorial and enforcement power.
Visitorial Power of the Secretary of Labor and
Employment or his duly authorized representatives,
including labor regulation officers:
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1. Access to employers records and premises at any
time of the day or night whenever work is being
undertaken therein;
2. To copy from employer's records;
3. To question any employee
4. To investigate any fact, condition or matter which
may be necessary to determine violations or which may
aid in the enforcement of this Code and of any labor
law, wage order, rules and regulations pursuant thereto
Enforcement Power of the Secretary of Labor and
Employment or his duly authorized representatives, in
cases where employer-employee relationship still
exists, shall have the power to:
1. To issue compliance orders to give effect to the
labor standards provisions of this Code and
other labor legislation based on the findings of
labor employment and enforcement officers or
industrial safety engineers made in the course
of inspection;
2. To issue writs of execution to the appropriate
authority for the enforcement of their orders;
EXCEPT when the employers contest the finding
of the labor employment and enforcement
officers and raises issues with documentary
proof.
3. to order stoppage of work or suspension of
operations of any unit or department of an
establishment when noncompliance with the
law or implementing rules and regulations
poses grave and imminent danger to the health
and safety of workers in the workplace. Within
24 hours, a hearing shall be conducted to
determine whether the stoppage or suspension
shall be lifted or not
** It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render ineffective
the orders of the Secretary of Labor and no inferior
court or entity shall issue temporary or permanent
injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement
orders issued in accordance with this Article.
Any government employee found guilty of violation of,
or abuse of authority, under this Article shall, after
appropriate administrative investigation, be subject to
summary dismissal from the service.

THE ENFORCEMENT FRAMEWORK:
1. Self assessment - voluntary compliance mode
applicable to and encouraged in establishments
with:
a. at least 200 workers and;
b. regardless of number or workers, to
unionized firms with CBAs
2. Inspection 10 to 199 workers
3. Advisory Service less than 10 workers and
BMBEs
SCOPE OF VISITORIAL AND ENFORCEMENT POWER
The visitorial and investigatory power under Art
128 is likewise unlimited by the amount of monetary
liability involved. AMENDED BY RA 7730.
Art. 129. Recovery of wages, simple money claims and
other benefits. The Regional Director of the
Department of Labor and Employment or any of the
duly authorized hearing officers of the Department is
empowered, through summary proceeding and after
due notice, to hear and decide:
1. any matter involving the recovery of wages and
other monetary claims and benefits, including
legal interest, provided that the aggregate
money claims of each employee or househelper
does not exceed Five thousand pesos
(P5,000.00).
2. owing to an employee or person employed in
domestic or household service or househelper
under this Code
3. arising from employer-employee relations
4. complaint does not include a claim for
reinstatement; and The Regional Director or
hearing officer shall decide or resolve the
complaint within thirty (30) calendar days from
the date of the filing of the same.
Any sum thus recovered on behalf of any employee or
househelper pursuant to this Article shall be held in a
special deposit account by, and shall be paid on order
of, the (1) Secretary of Labor and Employment or (2) the
Regional Director or (3) directly to the employee or
househelper concerned.
Any such sum not paid to the employee or househelper
because he cannot be located after diligent and
reasonable effort to locate him within a period of three
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(3) years, shall be held as a special fund of the
Department of Labor and Employment to be used
exclusively for the amelioration and benefit of workers.
Any decision or resolution of the Regional Director or
hearing officer pursuant to this provision may be
appealed on the same grounds provided in Article 223
of this Code, within five (5) calendar days from receipt
of a copy of said decision or resolution, to the National
Labor Relations Commission which shall resolve the
appeal within ten (10) calendar days from the
submission of the last pleading required or allowed
under its rules. The Secretary of Labor and Employment
or his duly authorized representative may supervise the
payment of unpaid wages and other monetary claims
and benefits, including legal interest, found owing to
any employee or househelper under this Code. (As
amended by Section 2, Republic Act No. 6715, March
21, 1989)
** REQUISITES:
a. the claim is presented by an employee, or a
person employed in household or domestic
service, or househelper
b. arises from employer-employee relationship
c. the claimant does not seek reinstatement
d. money claim does not exceed 5000
Art. 217. Jurisdiction of the Labor Arbiters and the
Commission.
The Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30)
calendar days after the submission of the case by the
parties for decision without extension the following
cases involving all workers, whether agricultural or non-
agricultural: Unfair labor practice cases; Termination
disputes; If accompanied with a claim for
reinstatement, those cases that workers may file
involving wages, rates of pay, hours of work and other
terms and conditions of employment;
Claims for actual, moral, exemplary and other forms of
damages arising from the employer-employee relations;
Cases arising from any violation of Article 264 of this
Code, including questions involving the legality of
strikes and lockouts; and Except claims for Employees
Compensation, Social Security, Medicare and maternity
benefits, all other claims arising from employer-
employee relations, including those of persons in
domestic or household service, involving an amount
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exceeding five thousand pesos (P5,000.00) regardless of
whether accompanied with a claim for reinstatement.
The Commission shall have exclusive appellate
jurisdiction over all cases decided by Labor Arbiters.
Cases arising from the interpretation or implementation
of collective bargaining agreements and those arising
from the interpretation or enforcement of company
personnel policies shall be disposed of by the Labor
Arbiter by referring the same to the grievance
machinery and voluntary arbitration as may be provided
in said agreements.
Stages in the hearing of cases
1. Labor arbiter; and may be appealed to
2. The National Labor Relations Commission (NLRC);
and may be appealed to
3. The Court of Appeals (CA); and may be appealed to
4. The Supreme Court (SC)
WAGE PROTECTION PROVISIONS AND PROHIBITIONS
REGARDING WAGES
Art. 112. Non-interference in disposal of wages.
No employer shall limit or otherwise interfere with the
freedom of any employee to dispose of his wages. He
shall not in any manner force, compel, or oblige his
employees to purchase merchandise, commodities or
other property from any other person, or otherwise
make use of any store or services of such employer or
any other person.
Violation:
Labor Code fine not less than one thousand
pesos nor more than ten thousand pesos or
imprisonment for not less than 3 months nor
more than 3 years
RPC - penalty of arresto mayor or a fine ranging
from 200-500 pesos.

ARTICLES 128 and 129 COMPARED Art. 113. Wage deduction.

General Rule: No employer, in his own behalf or in
128 129 behalf of any person, shall make any deduction from
Nature and *speaks of inspection *adjudication of the wages of his employees.
Subject of and issuance of employees
the orders to compel claims for wages Exceptions:
Proceedings compliance with and benefits a. In cases where the worker is insured with his
labor standards consent by the employer, and the deduction is
*limits the to recompense the employer for the amount
*enforcement of proceedings to paid by him as premium on the insurance;
labor legislation in monetary claims b. For union dues, in cases where the right of the
general worker or his union to check-off has been
*proceedings recognized by the employer or authorized in
*proceedings are are initiated by writing by the individual worker concerned; and
offshoot of sworn c. In cases where the employer is authorized by
inspections done complaints filed law or regulations issued by the Secretary of
by interested Labor and Employment.
parties.
Workers *employees still in *present or past Additional to the Authorized Deductions
Involved the service employees but a. In cases where the employee is indebted to the
there is no employer, where such indebtedness has
demand for become due and demandable;
reinstatement b. In court awards, wages may be subject of
Jurisdictional *its visitorial and *see the four execution or attachment, but only for debts
limits enforcement powers requisites incurred for food, shelter, clothing, and medical
were purposely attendance;
strengthened by RA c. Withholding tax;
7730 to free it from d. Salary deductions of a member of a legally
the limitations established cooperative;
imposed by Art 129. e. Deductions for payment to third persons, upon
written authorization of the employee;

f. Union dues;
g. Agency fee;
h. Deductions for value of meal and other
facilities;
i. Deductions for loss or damage;
j. SSS, Medicare, Pag-IBIG premiums.
**WITHHOLDING Debts due and demandable
**DEDUCTIONS authorized by the employee in
writing
CIVIL CODE PROVISIONS:
1705. The laborers wage shall be paid in legal
currency
1706. Withholding of the wage due, except for a debt
due, shall not be made by the employer
1707. The laborers wage shall be a lien in the goods
manufactured or the work done
1708. The laborers wages shall not be subject to
execution or attachment, except for debts incurred for
food, shelter, clothing and medical attendance.
1709. The employer shall neither seize nor retain any
tool or other articles belonging to the laborer
Reduced Pay because of Reduced Work Days
In situations where the reduction in the number of
regular working days is resorted to by the employer to
prevent serious losses due to causes beyond his control,
such as when there is a substantial slump in the
demand for his goods or services or when there is lack
or raw materials, such reduction is VALID. It is in this
view that the employer may deduct the wages and
allowances corresponding to the days taken off from
the workweek. This view is consistent with the principle
of no-work-no-pay.
Art. 114. Deposits for loss or damage.
General Rule: No employer shall require his worker to
make deposits from which deductions shall be made for
the reimbursement of loss of or damage to tools,
materials, or equipment supplied by the employer.
**Exceptions: When the employer is engaged in such
trades, occupations or business where the practice of
making deductions or requiring deposits is a
recognized one, or is necessary or desirable as
determined by the Secretary of Labor and Employment
in appropriate rules and regulations.
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Art. 115. Limitations.
No deduction from the deposits of an employee for the
actual amount of the loss or damage shall be made
unless the employee has been heard thereon, and his
responsibility has been clearly shown.
Four Conditions to Met Before Payments for Lost or
Damaged Equipment May Be Deducted
a. the employee is shown to be responsible for
the loss or damage;
b. the employee is given ample opportunity to
show cause why deduction should not be made;
c. the amount of the deduction is fair and
reasonable and shall not exceed the actual loss
or damage; and
d. the deduction from the employee's wage does
not exceed 20% of the employee's wages in a
week.
Art. 116. Withholding of wages and kickbacks
prohibited.
It shall be unlawful for any person, directly or
indirectly, to withhold any amount from the wages of a
worker or induce him to give up any part of his wages
by force, stealth, intimidation, threat or by any other
means whatsoever without the workers consent.
Art. 117. Deduction to ensure employment.
It shall be unlawful to make any deduction from the
wages of any employee for the benefit of the employer
or his representative or intermediary as consideration
of a promise of employment or retention in
employment.
Art. 118. Retaliatory measures.
It shall be unlawful for an employer: to refuse to pay or
reduce the wages and benefits, discharge or in any
manner discriminate against any employee who has
filed any complaint or instituted any proceeding under
this Title or has testified or is about to testify in such
proceedings.
Art. 119. False reporting.
It shall be unlawful for any person to make any
statement, report, or record filed or kept pursuant to
the provisions of this Code knowing such statement,
report or record to be false in any material respect.

Art. 100. Prohibition against elimination or diminution
of benefits.
Nothing in this Book shall be construed to eliminate or
in any way diminish supplements, or other employee
benefits being enjoyed at the time of promulgation of
this Code.
Non-diminution rule it essentially means that benefits
being given to employees cannot be taken back or
reduced unilaterally by the employer because the
benefit has become part of the employment contract,
written or unwritten.
The rule against diminution of benefits may apply, if it is
shown that:
a. The grant of the benefit id founde don a policy
or has ripened into a practice over a long period
b. Practice is consistent and deliberate
c. Practice is not due to error in the construction
or application of a doubtful or difficult question
of law
d. Done unilaterally by the employer.
** IT IS VALID, HOWEVER, ON THE PRINCIPLE OF
EQUIVALENCE. If the removed benefit has been
replaced by another, which is equal to or greater than
the benefit previously received, then such diminution
is valid.
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PAYMENT OF WAGES
Art. 102. No employer shall pay the wages of an
employee by means of promissory notes, vouchers,
coupons, tokens, tickets, chits, or any object other than
legal tender, even when expressly requested by the
employee.
Payment of wages by check or money order shall be
allowed when such manner of payment is customary
on the date of effectivity of this Code, or is necessary
because of special circumstances as specified in
appropriate regulations to be issued by the Secretary of
Labor and Employment or as stipulated in a collective
bargaining agreement.
** Where the employee alleges non-payment of wages,
the employer has the burden to prove such payment.
Art. 103. Time of payment.
General Rule: Wages shall be paid at least once every
two (2) weeks or twice a month at intervals not
exceeding sixteen (16) days.
Exception: If on account of force majeure or
circumstances beyond the employers control payment
of wages on or within the time herein provided cannot
be made. The employer shall pay the wages
immediately after such force majeure or circumstances
have ceased.
No employer shall make payment with less frequency
than once a month.
The payment of wages of employees engaged to
perform a task which cannot be completed in two (2)
weeks shall be subject to the following conditions, in
the absence of a collective bargaining agreement or
arbitration award:
a. that payments are made at intervals not
exceeding sixteen (16) days, in proportion to
the amount of work completed;
b. That final settlement is made upon completion
of the work.
Art. 104. Place of payment.
General Rule: Payment of wages shall be made at or
near the place of undertaking
Exception: As otherwise provided by such regulations
as the Secretary of Labor and Employment may
prescribe under conditions to ensure greater protection
of wages.
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**Payment in place other than the workplace shall be
permissible under the following circumstances: Order conditions
1. By reason of deterioration of peace and other
conditions, or by reason of actual or impending
emergencies caused by fire, flood, epidemic or
other calamity
2. Employer provides free transportation back and
forth
3. Under any analogous circumstances; provided
that the time spent by the employees in
collecting their wages shall be considered
compensable hours worked.
4. No employer shall pay his employees in any bar,
night or day club, drinking establishments,
massage clinics, dance hall, or other similar
places or in places where games are played with
stakes of money or things representing money
except when employees are employed in such
places
worker to the heirs of the latter without the
necessity of intestate proceedings. The
claimants, if they are all of age, shall execute an
affidavit attesting to their relationship to the
deceased and the fact that they are his heirs, to
the exclusion of all other persons. If any of the
heirs is a minor, the affidavit shall be executed
on his behalf by his natural guardian or next-of-
kin.
The affidavit shall be presented to the employer who
shall make payment through the Secretary of Labor and
Employment or his representative. The representative
of the Secretary of Labor and Employment shall act as
referee in dividing the amount paid among the heirs.
The payment of wages under this Article shall absolve
the employer of any further liability with respect to the
amount paid.

PAYMENT THROUGH BANKS

**Upon written permission of the ajority of the
employees or workers concerned, all private
establishments, companies, businesses, and other
entities with 25 or more employees and located within
1 kilometer radius to a commercial, savings or rural
bank shall pay that wages through any of the said
banks.
**The bank shall issue a certification of the record of
payment of wages whenever applicable and upon
request of a concerned worker or union

DOLE Labor Advisory S. 1996

** Payment thru ATMs is allowed.

Art. 105. Direct payment of wages.

General Rule: Wages shall be paid directly to the
workers to whom they are due.

Exceptions:
a. In cases of force majeure rendering such
payment impossible or under other special
circumstances to be determined by the
Secretary of Labor and Employment in
appropriate regulations, in which case, the
worker may be paid through another person
under written authority given by the worker for
the purpose; or
b. Where the worker has died, in which case, the
employer may pay the wages of the deceased

BOOK THREE
CONDITIONS OF EMPLOYMENT
Coverage the provisions of this title shall apply to
employees in all establishments, and undertakings
whether for profit or not, BUT NOT TO:
a. Government employees
b. Managerial employees
c. Field personnel
d. Members of the family of the employer whoa re
dependent on him for support
e. Domestic helpers
f. Persons in the personal service of the other,
g. Workers who are paid by results as determined
by Sec. Of Labor.
** Managerial Employees refer to those whose
primary duty consists of the management of the
establishment in which they are employed or of a
department or subdivision thereof
** Field personnel refers to 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 with reasonable certainty.
THE STANDARDS APPLY ONYLY IF THERE EXISTS
EMPLOYEE-EMPLOYER RELATIONSHIP
Question of Law, Question of Fact
Question of Law arises when there is doubt as to what
the law is on certain state of facts; there is a question of
fact when the doubt arises as to the truth or falsity of
the alleged facts.
The character of the relationship between the parties is
not whatever they call it in their contract but what the
law calls it after examination of the facts. The
recognition of the employer-employee relationship is
not dependent upon the agreement of the parties.
Elements or Tests of Employee Relationship
1. Four Fold Test:
a. The selection and engagement of employees
b. The payment of wages
c. The power of dismissal
d. The employers power to control the employee
with respect to the means and methods by
which the work is to be accomplished
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Case: Manila Golf Country Club v. IAC, 237 SCRA 207
2. Two-tiered Approach: The Economic
Dependence Test
Case: Angelina Francisco v. NLRC, Kasei Corp. GR
170087
Evidence of Employment: Identification Card,
Vouchers, SSS Registration, Memorandum
In administrative and quasi-judicial proceedings,
substantial evidence is sufficient as a basis for
judgment on the existence of employer-employee
relationship. No particular form to evidence is required
to prove the existence of such relationship. Any
competence and relevant evidence to prove the
relationship may be admitted.
*Absence of name in the payroll do not necessarily
mean that one is not an employee if relationship was
sufficiently proved by testimonial evidence
*Mode of Compensation, not a test of employment
status
Art. 83. Normal hours of work.
The normal hours of work of any employee shall not
exceed eight (8) hours a day.
General Rule applicable to health personnel: Health
personnel in cities and municipalities with a population
of at least one million (1,000,000) or in hospitals and
clinics with a bed capacity of at least one hundred (100)
shall hold regular office hours for eight (8) hours a day,
for five (5) days a week, exclusive of time for meals,
Exception: Where the exigencies of the service require
that such personnel work for six (6) days or forty-eight
(48) hours, in which case, they shall be entitled to an
additional compensation of at least thirty percent
(30%) of their regular wage for work on the sixth day.
Health personnel, for the purpose of Art.38 of the
Labor Code, they include resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers,
laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other
hospital or clinic personnel.

Purpose:
The Eight-Hour Labor Law was enacted not only to
safeguard the health and welfare of the laborer or
employee, but in a way to minimize unemployment, by
forcing employers to utilize different shifts of labourers
or employees working only for 8-hour shift.
*LAW PRESCRIBES THE MINIMUM, NOT THE MAXIMUM
WORKING HOURS Max Min
Part-time work NOT PROHIBITED; the wage and the
benefits of a part-timer are in proportion to the number
of hours worked
*Note: Read the Explanatory Bulletin on Part-Time
employment
Art. 84 HOURS WORKED
Hours worked shall include:
(a) all time during which an employee is required to be
on duty or to be at a prescribed workplace; and
(b) all time during which an employee is suffered or
permitted to work.
(c) Rest periods of short duration during working hours
Principles in determining hours worked
a. all hours are hours worked which the employee
is required to give to his employer, regardless of
whether or not such hours are spent in
productive labor or involve physical or mental
exertion.
b. An employee need not to leave the premises of
the workplace in order that his rest period shall
not be counted, it being enough that he stops
working, may rest completely and may leave his
workplace, to go elsewhere, whether within or
outside the premises of his workplace
c. If work performed was necessary or it benefited
the employer, or the employee could not
abandon his work at the end of his normal
working hours because he had no replacement,
all time spent for such work shall be considered
hours worked, if within the knowledge of the
employer or the immediate supervisor;
d. The time during which an employee is inactive
by reason of interruptions in his work beyond
his control shall be considered time either if the
imminence of the resumption of work or if the
Labor Standards Reviewer 14
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interval is too brief to be utilized effectively and
gainfully for the employees own interest
Preliminary and postliminary activities are deemed
performed during working hours, where such activities
are controlled or required by the employer primarily
for the employers benefit.
1.1 Waiting Time: Engaged to wait or Waiting to
be Engaged?
This depends upon the circumstances of each
particular case. The controlling factor is whether waiting
time spent in idleness is so spent predominantly for the
employers benefit or for the employees.
1.2 Working while Eating
The meal time is not compensable if the employee
is completely relieved from his work during his meal
period though he remains in the workplace. But the
employee is not relieved if he is required to work,
whether active or inactive, while eating.
1.3 Working while sleeping
The rule is that sleeping time may be considered
working time if it is subject to serious disturbances or
interruptions or takes place under conditions
substantially less desirable than woul be likely to exist
at the employees home.
1.4 On Call
An employee who is required to remain on call on
the employers premises or so close thereto that he
cannot use the time effectively for his own purposes is
WORKING while On Call
1.5 Travel Time
a. Travel from home to work
An employee who travels from home before his regular
workday and returns to his home at the end of the work
day is engaged in ordinary home-to-work travel time
which is a normal incident of employment. But when an
employee receives an emergency call outside of his
regular working hours and is required to travel a to his
regular place of business, all of the time spent in such
travel is working time
b. Travel that is all in days work
Time spent by the employee in travel as part of his
principal activity, such as travelling from jobsite to
jobsite, must be counted as hours worked.

c. Travel away from home
Travel that keeps an employee away from home
overnight is travel away from home. Travel away
from home is completely worktime when it CUTS
ACROSS the employees workday
1.6 Lectures, Meetings, Training
Attendance at lectures, meetings, training
programs, and similar activities need not be
counted as working time if the following criteria are
met:
a. Attendance is outside of the employees regular
working hours
b. Attendance is in fact voluntary
c. The employee does not perform any productive
work during such attendance.
1.7 Grievance Meeting
Hours worked if required by the employer and
conducted in the business premises
1.8 Semestral Break
Regular full-time monthly paid teachers in a private
school are entitled to salary and emergency cost-of-
living allowance during semestral breaks.
Case: University of Pangasinan Faculty Union v.
University of Pangasinan Feb. 20, 1984
ART. 85 MEAL PERIODS
Subject to such regulations as the Secretary of Labor
may prescribe, it shall be the duty of every employer to
give his employees not less than sixty (60) minutes
time-off for their regular meals.
General Rule: Not less than 1 hour time-off for regular
meals is non-compensable.
Meal time can be shortened or be less than 60 minutes
under specified cases and in no case shorter than 20
minutes.
The situations where the meal break may be
shortened to less than 60 minutes, with FULL PAY, are
the following:
(a) Where the work is nonmanual work in nature or
does not involve strenuous physical exertion;
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(b) Where the establishment regularly operates not less
than sixteen hours a day;
(c) In cases of actual or impending emergencies or
there is urgent work to be performed on machineries,
equipment or installations to avoid serious loss which
the employer would otherwise suffer; and,
(d) Where the work is necessary to prevent serious loss
of perishable goods.
Rest periods or coffee breaks running from 5 to 20
minutes are considered as compensable working time.
If the so-called meal time is less than 20 minutes, it
becomes only a rest period.
SHORTENED MEAL PERIOD UPON EMPLOYEES
REQUEST IS NOT COMPENSABLE, however, subject to
the following conditions:
a. Employee agrees voluntarily in writing and are
willing to waive overtime pay for such
shortened meal period
b. No diminution whatsoever in the salary
c. Work does not involve strenuous physical
exertion and they are provided with adequate
coffee breaks;
d. Value of the benefits derived from the
proposed work arrangement is equal to or
commensurate with the compensation due
them
e. The effectivity shall be of temporary
arrangement as determined by the Sec of Labor
ART. 86 NIGHT SHIFT DIFFERENTIAL
Every employee shall be paid a night shift differential
of not less than ten percent (10%) of his regular wage
for each hour of work performed between ten oclock
in the evening and six oclock in the morning.
**NOT WAIVABLE
ART. 87 OVERTIME WORK
Work may be performed beyond eight (8) hours a day
provided that the employee is paid for the overtime
work, an additional compensation equivalent to his
regular wage plus at least twenty-five percent (25%)
thereof. Work performed beyond eight hours on a
holiday or rest day shall be paid an additional

compensation equivalent to the rate of the first eight
hours on a holiday or rest day plus at least thirty
percent (30%) thereof.
REGULAR WORKING DAY = 25%
HOLIDAY/REST DAY = 30%
*The holiday or rest day premium should be added first
before computing overtime pay on such day, unless
there is an agreement more favourable to the employee
What is WORK DAY?
The twenty-four hour period which commences from
the time the employee regularly starts to work.
Can overtime pay be waived?
GR: NO, because it is mandated by law. Any stipulation
in the contact that the laborer shall work beyond the
regular eight hours without additional compensation for
the additional hours is contrary to law and is null and
void.
XPN: When the alleged waiver of overtime pay is in
consideration of benefits and privileges which may be
more than what will accrue to them in overtime pay,
the waiver may be permitted.
Case: Meralco Workers Union v. Manila Electric
Company GR. L-11876
Art. 88. Undertime not offset by overtime.
Undertime work on any particular day shall not be
offset by overtime work on any other day. Permission
given to the employee to go on leave on some other
day of the week shall not exempt the employer from
paying the additional compensation required in this
Chapter.
Reason: Offsetting the undertime hours against OT
hours would result in undue deprivation of the
employee's extra pay for OT work.
ART. 89 EMERGENCY OVERTIME WORK
Any employee may be required by the employer to
perform overtime work in any of the following cases:
1. When the country is at war or when any other
national or local emergency has been declared by the
National Assembly or the Chief Executive;
2. When it is necessary to prevent loss of life or
property or in case of imminent danger to public safety
due to an actual or impending emergency in the locality
Labor Standards Reviewer 16
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caused by serious accidents, fire, flood, typhoon,
earthquake, epidemic, or other disaster or calamity;
3. When there is urgent work to be performed on
machines, installations, or equipment, in order toavoid
serious loss or damage to the employer or some other
cause of similar nature;
4. When the work is necessary to prevent loss or
damage to perishable goods; and,
5. Where the completion or continuation of the work
started before the eighth hour is necessary to prevent
serious obstruction or prejudice to the business or
operations of the employer.
6. When overtime work is necessary to avail of
favorable weather or environmental conditions where
performance or quality or work is dependent thereon.
*Any employee required to render overtime work
under this Article shall be paid the additional
compensation required in this Chapter.
COMPRESSED WORKWEEK
-Resorted to by the employer to prevent serious losses
due to causes beyond his control.
Instead of working 6 days a week, the employees will be
regularly working for less than 6 days but each workday
exceeds 8 hours. For the hours exceeding 8 in a
workday, the employees waive their OT pay because, in
return, they will no longer incur transport and other
expenses.
Conditions:
a. Expressly and voluntarily supported by the
majority of the employers
b. In firms using substances hazardous to health, a
certification is needed from an accredited
safety organization
c. The DOLE regional office is duly notified.
Extended workday in CWW should not exceed 12 work
hours. Work exceeding 12 hrs in a day or 48 hrs in a
week should be considered OT
 Labor Standards Reviewer 17
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FLEXIBLE WORK ARRANGEMENTS
-refer to alternative arrangements or schedules other
than the traditional standard work hours. The effectivity
and implementation of FWA shall be temporary.
a. Reduction of workdays when the normal
workdays per week are reduced but should nt
last for more than 6 months
b. Rotation of workers where the employees are
rotated or alternately provided work within the
workweek
c. Forced leave where the employees are required
to go on leave for several days or weeks,
utilizing their leave credits if there are any
d. Broken-time schedule where the work schedule
is not continuous but the number of work hours
within the day or week is not reduced
e. Flexi-holiday schedule where the employees
agree to avail themselves of the holidays at
some other days, provided that there is no
diminution of existing benefits
*DOLE REGIONAL OFFICE MUST BE DULY NOTIFIED.
daily output, gross earnings and the actual number of
working hours spent by the employees on the job,
bearing the signature or thumbmark of the employee
concerned. Where, however, the minimum output rates
of non-time workers have been fixed by the
Department of Labor and Employment or through
certified collective agreements, or are in compliance
with the standards prescribed in Section 8, Rule VII of
this Book, the employer may dispense with the keeping
of time records, except the daily production records
showing their output or the work accomplished and
gross earnings.
DOLE DEPT ADVISORY NO. 1 GUIDELINES IN THE
COMPUTATION OF ESTIMATED EQUIVALENT OF
MONTHLY RATES OF MONTHLY-PAID OR DAILY-PAID
EMPLOYEES

Rule X, Sec. 7, 9, and 10, Omnibus Rules

SECTION 7. Time records. Every employer shall keep
an individual time record of all his employees bearing
the signature or thumbmark of the employee
concerned for each daily entry therein by means of any
of the following methods:
(a) Through the use of bundy clock by means of which
an employee can punch in his individual card the time
of arrival and departure from work;
(b) Through the employment of a timekeeper whose
duty is to time in and out every employee in a record
book; and
(c) By furnishing the employees individually with a daily
time record form in which they can note the time of
their respective arrival and departure from work.

SECTION 9. Time records of executives. Managerial

employees, officers or members of the
managerial staff, as well as non-agricultural field
personnel, need not be required to keep individual time
records, provided that a record of their daily attendance
is kept and maintained by the employer.

SECTION 10. Records of workers paid by results.

Where the employees are paid on piece, pakiao,
takay, task, commission or other non-time basis, the
employer shall keep production records showing their
 Labor Standards Reviewer 18
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regular wage. An employee shall be entitled to such

additional compensation for work performed on Sunday
only when it is his established rest day.

When the nature of the work of the employee is such

that he has no regular workdays and no regular rest
days can be scheduled, he shall be paid an additional
compensation of at least thirty percent (30%) of his
regular wage for work performed on Sundays and
holidays.

Work performed on any special holiday shall be paid

an additional compensation of at least thirty percent
(30%) of the regular wage of the employee. Where
such holiday work falls on the employees scheduled
rest day, he shall be entitled to an additional
Art. 91. Right to weekly rest day. compensation of at least fifty per cent (50%) of his
It shall be the duty of every employer, whether regular wage.
operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four Where the collective bargaining agreement or other
(24) consecutive hours after every six (6) consecutive applicable employment contract stipulates the payment
normal work days. of a higher premium pay than that prescribed under this
The employer shall determine and schedule the weekly Article, the employer shall pay such higher rate.
rest day of his employees subject to collective
bargaining agreement and to such rules and regulations SUMMARY:
as the Secretary of Labor and Employment may provide.
Work performed on a REST Day = additional
However, the employer shall respect the preference of 30% of regular wage
employees as to their weekly rest day when such
If no regular days or regular rest day =
preference is based on religious grounds.
additional 30% of regular wage for work
performed on Sundays and regular holidays
Business on Sundays/Holidays - all establishments and
Work performed on a Special day = additional
enterprises may operate or open for business on
30%
Sunday and Holidays provided that the employees are
Holiday falls on the employees rest day = 50%
given the weekly rest day and the benefits as provided
in this Rule.
ART. 95 SERVICE INCENTIVE LEAVE
Every employee who has rendered at least one year of
Weekly Rest Day every employer shall give his
service shall be entitled to a yearly service incentive
employees a rest period of not less than 24 consecutive
leave of five days with pay.
hours after every six consecutive normal work days.
Preference of employee the preference of the
This provision shall not apply to those who are already
employee as to his weekly day of rest shall be respected
enjoying the benefit herein provided, those enjoying
by the employer if the same is based on religious
vacation leave with pay of at least five days and those
grounds.
employed in establishments regularly employing less
than ten employees or in establishments exempted
ART 93 COMPENSATION FOR REST DAY, SUNDAY OR
from granting this benefit by the Secretary of Labor
HOLIDAY
and Employment after considering the viability or
financial condition of such establishment.
Where an employee is made or permitted to work on
his scheduled rest day, he shall be paid an additional
compensation of at least thirty percent (30%) of his
 Labor Standards Reviewer 19
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The grant of benefit in excess of that provided herein 8. Bonifacio Day - Nov. 30
shall not be made a subject of arbitration or any court 10. Christmas Day - Dec. 25
or administrative action. 11. Rizal Day - Dec. 30

* Service Incentive Leave (SIL) is commutable to its
money equivalent if not used or exhausted at the end of
the year.
At least 1 year service service for not less than 12
months, whether continuous or broken reckoned from
the date the employee started working.
LECTURE FROM ATTY. MARQUEZ:
What if the employee is entitled to 15 days of
VACATION LEAVE, will he be entitled to SIL?
ANS: No. If 15 days of VL are already granted, it is above
the mandatory SIL, then SIL may not be given.
HOLIDAY PAY
ART. 94 Every worker shall be paid his regular daily
wage during regular holidays, except in retail and
service establishments regularly employing less than
ten (10) workers;
The employer may require an employee to work on
any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate; and
As used in this Article, "holiday" includes: New Years
Day, Maundy Thursday, Good Friday, the ninth of
April, the first of May, the twelfth of June, the fourth
of July, the thirtieth of November, the twenty-fifth and
thirtieth of December and the day designated by law
for holding a general election.
Holiday pay is a one-day pay given to an employee
even if he does NOT WORK on a regular holiday
The national legal holidays become TWELVE with the
recent addition of Eidul Fitr and Eidul Adha (by RA
9849).
List of Regular Holidays
1. New Years day - Jan. 1
2. Maundy Thursday - Movable date
3. Good Friday - Movable date
4. Araw ng Kagitingan - April 9
5. Labor Day - May 1
6. Independence Day - June 12
7. National heroes Day - Last Sunday of August
Eidd Fitr and Eidl Adha follow the Islamic calendar and
their dates are announced by a presidential
proclamation.
\
REGULAR HOLIDAYS; HOW COMPUTED
a. If it is employees regular work day:
Unworked: 100%
Worked:
1st 8 hrs = 200%
Excess of 8 hrs = +30% of hourly rate on said
day
b. If it is employees rest day:
Unworked: 100%
Worked:
1st 8 hrs = +30% of 200%
Excess of 8 hrs = +30% of hourly rate on said
day
2. Special Days
Unworked no pay unless there is a favorable company
policy, practice or CBA granting payment of wages on
special days even if unworked.
Worked
1st 8 hrs = +30% of the daily rate of 100%
Excess of 8 hrs = +30% of hourly rate on said
day
Falling on employees rest day and if
worked
1st 8 hrs = +50% of the daily rate of
100%
Excess of 8 hrs = +30% of hourly rate on said
day
3. Special Working Holidays only basic rate
SUCCESSIVE REGULAR HOLIDAYS
An employee may not be paid for both holidays if he
absents himself from work on the day immediately
preceding the first holiday, unless he works on the first
holiday, in which case, he is entitled to his holiday pay
on the second holiday

LECTURE FROM ATTY. MARQUEZ:
An employees working hours is from 10pm to 6am.
Assuming he worked on April 8, and April 9 is a
holiday, will he be entitled to a holiday pay?
ANS: There are actually two schools of thought with
regard to this matter.
1. Since the work began on a non-holiday, he will
not be entitled
2. Pro-rated. He will be paid premium pay from
12am-6am (This is the practice now.)
ART 96 SERVICE CHARGES
All service charges collected by hotels, restaurants and
similar establishments shall be distributed at the rate of
eighty-five percent (85%) for all covered employees and
fifteen percent (15%) for management. The share of the
employees shall be equally distributed among them. In
case the service charge is abolished, the share of the
covered employees shall be considered integrated in
their wages.
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13th MONTH PAY (PD 851)
Statutory grant issued during the Martial Law.
It creates an imaginary 13th month and obliges
employers to pay the employees for that imaginary
month
-for ALL RANK AND FILE EMPLOYEES REGARDLESS OF
SALARY GRADE
-should not be paid later than DEC. 24 of every year
EXCEPTIONS:
1. equivalent or bonuses may be credited as the
13th month pay
Shall include:
Christmas bonus, mid-year bonus, profit-sharing
payments and other cash bonuses amounting to
not less than 1/12 of basic salary, COLA and
other allowances
2. Managerial employees
14th MONTH PAY
It is not legally demandable; purely gratuitous in nature.
COMPUTATION OF 13th MONTH PAY:
13th month pay shall mean 1/12 of the basic salary of
the employee within a calendar year.
*BASIC SALARY shall include all remunerations or
earnings paid by an employer to an employee for
services rendered but MAY NOT include CoLA, profit-
sharing payments and all allowances/monetary
benefits.
BUT: If it has ripened into a practice and therefore can
no longer be withdrawn, reduced, diminished or
eliminated.
ARE COMMISSIONS INCLUDED?
Commissions are included or excluded, depending on
the kind of commission is involved.
In Phil Duplicators Case: the greater part of the
salesmens wage or salary is composed of the
sales/incentive commissions earned on actual sales
closed by them. It now becomes a VESTED RIGHT.
In Boie-Takeda Case: Sales commissions are deemed
productivity bonuses and have no direct relation to
the amount of work actually done by each employee. It
is based on the liberality or generosity of the employer.

PROPORTIONATE 13th Month Pay:
Resignation/termination before the payment of the 13th
month pay:
- Shall be paid in proportion to the length of
time he worked during the year
- Should be equivalent to 1/12 of the total
basic salary he earned that year.
DISTRESSED EMPLOYER
- Exempted only upon prior authorization
from the Secretary of Labor and
Employment.
*Difference in opinion on how to compute 13th month
pay does not justify a strike. It can only result to money
claim cases.
OTHER EXEMPTIONS:
1. Government employees (Jurisprudence:
Alliance of Govt Employees v. Minister of Labor
and Employment)
2. Seafarers: Because they are contractual and
they earn more than land-based employees.
3. Workers paid by results (TASK-BASIS only)
If piece-rate worker/basis = ENTITLED
Cases:
Makati Haberdashery
Labor Congress of the Phils v. NLRC
HYPOTHETICAL CASE BY ATTY. MARQUEZ:
A woman went on maternity leave for 60 days. Is 60
days included in the computation in the computation of
13th month pay?
Ans: No because she is receiving SSS benefits
Juan Dela Cruz has 15 days AWOL in April, 15 hours of
tardiness in June, 30 hours undertime in September,
will you take these out?
Ans: YES, because the computation of the 13th month
pay is based on ACTUAL EARNINGS (Pro-rated)
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RA 8187 PATERNITY AND MATERNITY LEAVE
PATERNITY LEAVE
-7 working days with FULL PAY
-applicable to all MARRIED MEN in the private and
public sector
-applicable only to first FOUR DELIVERIES
-husband and wife must be living together
delivery
- Includes childbirth, miscarriage, or abortion
PURPOSE:
To lend support to his wife during the period of
recovery/nursing of the new-born child
REQUIREMENTS:
1. He is an EMPLOYEE
2. He is cohabiting with his WIFE
3. HE has applied for Paternity Leave
4. Wife has given birth or suffered a miscarriage
Note: NOT CONVERTIBLE TO CASH
MATERNITY LEAVE
Art. 133. Maternity leave benefits.
(a) Every employer shall grant to any pregnant woman
employee who has rendered an aggregate service of at
least six (6) months for the last twelve (12) months,
maternity leave of at least two (2) weeks prior to the
expected date of delivery and another four (4) weeks
after normal delivery or abortion with full pay based
on her regular or average weekly wages. The employer
may require from any woman employee applying for
maternity leave the production of a medical certificate
stating that delivery will probably take place within two
weeks.
(b) The maternity leave shall be extended without pay
on account of illness medically certified to arise out of
the pregnancy, delivery, abortion or miscarriage, which
renders the woman unfit for work, unless she has
earned unused leave credits from which such extended
leave may be charged.
(c) The maternity leave provided in this Article shall be
paid by the employer only for the first four (4)

deliveries by a woman employee after the effectivity of
this Code.
Maternity Leave under the SSS Law
Sec. 14-A. Maternity Leave Benefit. - A female member
who has paid at least three (3) monthly contributions in
the twelve month period immediately preceding the
semester of her childbirth or miscarriage shall be paid a
daily maternity benefit equivalent to one hundred
percent (100%) of her average daily salary credit for 60
days or 78 days in case of caesarian delivery, subject to
the following conditions:
(a) employee shall have notified her employer of her
pregnancy and the probable date of her childbirth,
which notice shall be transmitted to the SSS;
(b) full payment shall be advanced by the employer
within 30 days from filing of the maternity leave
application;
(c) payment of daily maternity benefits shall be a bar to
the recovery of sickness benefits to be received;
(d) maternity benefits shall be paid only for the first
four deliveries or miscarriages;
(e) the SSS shall immediately reimburse the employer of
100% of the amount of maternity benefits advanced to
the employee;
(f) if an employee member should give birth or suffer
miscarriage without the required contribution, the
employer shall pay to the SSS damages equivalent to
the benefits which said employee member would
otherwise have been entitled to.
BATTERED WOMAN LEAVE
Anti-Violence Against Women and their Children Act of
2004
-allows the victim of violence, which may be physical,
sexual or psychological, to apply for the issuance of
protection order that will shield her from further
violence.
*EMPLOYEE = entitled to a PAID LEAVE of up to 10 days
in addition to other paid leaves.
*Leave is EXTENSIBLE but NON-CUMULATIVE and NON-
CONVERTIBLE TO CASH.
*It shall cover the 10days when she will have to attend
to medical and legal concerns.
REQUIREMENT:
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-must submit a certification from the Punong
Barangay/kagawad or prosecutor or clerk of court that
an action under RA 9262 has been filed.
RA 9710 (Magna Carta of Women)
Special Leave - 2 months will FULL PAY following surgery
based on gynecological disorders.
RA 8972 (Solo Parental Leave)
-Parental leave of NOT MORE THAN 7 WORKING DAYS
every year to any solo parent employee who has
rendered service of at least one year.
-NON-CUMULATIVE and NON-CONVERTIBLE, unless
agreed.
Requirements:
1. Has rendered one year of service whether
continuous or broken
2. Notified the employer within a reasonable
period
3. Has presented a SOLO PARENT IDENTIFICATION
CARD.
*Change in status will terminate the benefit.
ART. 106 CONTRACTOR OR SUBCONTRACTOR
Whenever an employer enters into a contract with
another person for the performance of the formers
work, the employees of the contractor and of the
latters subcontractor, if any, shall be paid in
accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails
to pay the wages of his employees in accordance with
this Code:
the employer shall be jointly and severally
liable with his contractor or subcontractor to such
employees---
to the extent of the work performed under
the contract, in the
same manner and extent that he is liable to
employees directly employed by him.
The Secretary of Labor and Employment may, by
appropriate regulations, restrict or prohibit the
contracting-out of labor to protect the rights of
workers established under this Code. In so prohibiting
or restricting, he may make appropriate distinctions
 Labor Standards Reviewer 23
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between (a) labor-only contracting and (b) job JOB CONTRACTING LABOR ONLY CONTRACTING
contracting as well as differentiations within these Refers to the Not really contracting because
types of contracting and determine who among the completion or the arrangement is merely to
parties involved shall be considered the employer for performance of a recruit or supply people
purposes of this Code, to prevent any violation or job or work/service
circumvention of any provision of this Code. within a given The person involved might even
period be an employee of the
labor-only contracting person supplying workers employer; an agent.
who does not have sufficient capital or investment in
the form of tools, equipment, machineries or work WRONG and PROHIBITED
premises. The workers recruited are performing because it is an attempt to
activities directly related to the principal business of evade the obligations of an
such employer. employer
*They only appear as an agent but DIRECTLY
responsible. ELEMENTS
Essential element:
Contractor/Sub-Contracting is an arrangement whereby Merely recruits, supplies or
a principal agrees to put out or farm out with a places workers
contractor/subcontractor the performance of specific
job. Confirming elements
1. Does not have
FOUR FEATURES OF LEGITIMATE CONTRACTING substantial
1. Parties capital/investment AND
2. Specific job the employees perform
3. Period jobs directly related to
4. Location the clients business
2. Does not exercise the
TRILATERAL RELATIONSHIP RIGHT OF CONTROL over
3 parties are involved in this relationship: the performance of the
1. Principal any employee who puts out or farms employees
out a job
2. Contractor/Subcontractor any person/entity *WITHOUT THE ESSENTIAL
engaged in a legitimate contracting or ELEMENT NO LoC
subcontracting arrangement
3. Contractual employee employed by a A full-fledged labor contractor
contractor or a subcontractor to perform or must be registered with DOLE;
complete a job pursuant to the agreement otherwise he is presumed an
between the latter and the principal. LoC

PRINCIPAL *Contracting out a job related to the employers

| - governed by Civil Code principal business is not UNLAWFUL
CONTRACTOR - if the contractor is SUBSTANTIALLY CAPITALIZED.
| - Labor Code/Special Labor Laws However, even if the contractor is substantially
EMPLOYEES capitalized, there can be no LoC if Confirming Element
No. 2 is true, referring to the lack of supervision.

Substantial Capital refers to capital stocks/

subscribed capitalization in the case of corporations,
tools, equipments, machineries, and work premises,

actually and directly used by the contractor or
subcontractor
right of control refers to the right reserved to the
person for whom the service of the contractual workers
are performed, to determine not only the end to be
achieved, but also the manner an means to be used in
reaching that end.
RIGHTS OF CONTRACTUAL WORKERS
1. Safe and healthful working conditions
2. Labor standards
3. Social security and welfare benefits
4. Self-organization, collective bargaining, and
peaceful concerted actions
5. Security of tenure
*termination PRIOR to expiration of contract
= entitlement to separation pay and other
emoluments
*termination results from expiration
= NO SEPARATION PAY, but without prejudice
to completion bonuses including retirement pay
WAGE INCREASES; LIABILITY OF PRINCIPAL
For LoC Principal becomes the employer LIABLE FOR
EVERYTHING
For Legitimate Contracting - The employer is SOLIDARY
LIABLE with the contractor for MONEY CLAIMS
*if punitive in character (i.e. award for backwages, and
separation pay because of illegal dismissal) liability
shall be borne solely by the CONTRACTOR in the
absence of proof that the principal conspired with the
contractor in the commission of illegal dismissal.
Art. 107. Indirect employer.
The provisions of the immediately preceding article
shall likewise apply to any person, partnership,
association or corporation which, not being an
employer, contracts with an independent contractor
for the performance of any work, task, job or project.
Art. 108. Posting of bond.
An employer or indirect employer may require the
contractor or subcontractor to furnish a bond equal to
the cost of labor under contract, on condition that the
bond will answer for the wages due the employees
should the contractor orsubcontractor, as the case may
be, fail to pay the same
Labor Standards Reviewer 24
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Art. 109. Solidary liability.
The provisions of existing laws to the contrary
notwithstanding, every employer or indirect employer
shall be held responsible with his contractor or
subcontractor for any violation of any provision of this
Code. For purposes of determining the extent of their
civil liability under this Chapter, they shall be considered
as direct employers. If the liability is in the nature of
penalty, such as backwages and separation pay because
of a wrongful dismissal, the liability should be solely
that of the contractor if there is no proof that the
principal conspired with the contractor in committing
the wrongful dismissal of the contractor's worker.
ART. 110 WORKER PREFERENCE IN CASE OF
BANKRUPTCY
In case of bankruptcy/liquidation, workers shall enjoy
first preference as regards their wages and monetary
claims and shall be paid in full before claims of
government and other creditors may be paid.
RA 6715 expands workers preference to cover not
only unpaid wages but also other monetary claims
SC RULING: Declaration of bankruptcy/judicial
liquidation must BE PRESENT before the workers
preference be enforced.
ART 1707 of NCC the laborers wages shall be lien on
the goods manufactured or work done.
EXAMPLE:
Theres a loan to a third party. To secure a
loan, the company mortgaged the machineries and
equipment (assets). The time came the company
became insolvent. There was judicial declaration,
which will come first, the loan or the claim of the
workers?
ANS: the loan will be given priority because it is a lien.
Preferred credit: arises only upon a contingency (NOT A
BURDEN OR CHARGE TO A PROPERTY)
Lien: attaches to the property
Case: Bayaroga v. NLRC (In this case, the SC
differentiated special preferred credit and ordinary
preferred credit)

ART. 111 ATTORNEYS FEES
- 10% of the amount of the wages recovered.
- It is only a ceiling (shall not exceed 10%)
Two concepts of Attorneys fees:
1. Ordinary concept reasonable compensation
paid to a lawyer for the legal services he
rendered
2. Extraordinary concept deemed INDEMNITY
FOR DAMAGES ordered by the court to be paid
by the losing party in a litigation.
But for compensation, it may exceed 10% based on
Quantum Meruit as much as he deserves basis of
determining professional fee in the absence of a
contract.
PAO lawyers not included.
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SPECIAL TYPES OF WORKERS
A. APPRENTICES
Apprenticeship practical training on the job
supplemented by related theoretical application
Apprentice is a worker who is covered by a written
apprenticeship agreement with an individual employer
or any of the entities recognized under this chapter.
Requires more than three months of practical training
on the job.
Qualifications
1. At least 14 years of age.
2. Possess vocational attitude and capacity for
appropriate tests.
3. Possess the ability to comprehend and follow
oral and written instructions.
Only employers in the highly technical industries may
employ apprentices and only in occupations approved
by the minister of labor.
Importance of Apprenticeship
1. To line up a succession of trained young
workers.
2. Under D.O. #8:
-To obtain the voluntary adoption of
apprenticeship program by employers or
workers to help meet the increasing demand
for skilled manpower necessary for economic
development;
-to increase worker productivity through a
relevant effective apprenticeship program.
TESDA Act of 1994:
Requisites for employment of apprentices.
1. Employer should be engaged in a business that
is considered a highly technical industry.
2. The job should be classified as a apprenticable
occupation.
*note: It is no longer the secretary of Labor of
employment but the TESDA who approves
apprenticable occupations.
Minimum age: 15

Apprenticeship agreement
1. Period: should not exceed 6 months.
2. Wage: shall in no case start below 75% of the
applicable minimum wage.
3. Needs DOLEs prior approval or apprentice
becomes regular employee.
Case: Nitto vs NLRC
Employers incentive - Tax deductibility incentive.
B. LEARNERS
Learners are persons hired as trainees in semi skilled in
other industrial occupations which are not
apprenticeable which may be learned through practical
training on the job.
1. Shall not exceed three months
2. Not less than 75% of the applicable minimum
wage.
All learners who worked for at least two months whose
contract has been terminated by the employer shall be
deemed as regular employees without the fault of the
learner.
C. EMPLOYMENT OF WOMEN
Art. 130. Nightwork prohibition.
No woman, regardless of age, shall be employed or
permitted or suffered to work, with or without
compensation:
(a) In any industrial undertaking or branch thereof
between ten oclock at night and six oclock in the
morning of the following day; or
(b) In any commercial or non-industrial undertaking or
branch thereof, other than agricultural, between
midnight and six oclock in the morning of the following
day; or
(c) In any agricultural undertaking at nighttime unless
she is given a period of rest of not less than nine (9)
consecutive hours.
** CALL CENTERS ARE AN EXCEPTION
Art. 131. Exceptions.
The prohibitions prescribed by the preceding Article
shall not apply in any of the following cases:
Labor Standards Reviewer 26
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(a) In cases of actual or impending emergencies caused
by serious accident, fire, flood, typhoon, earthquake,
epidemic or other disasters or calamity, to prevent loss
of life or property, or in cases of force majeure or
imminent danger to public safety;
(b) In case of urgent work to be performed on
machineries, equipment or installation, to avoid serious
loss which the employer would otherwise suffer;
(c) Where the work is necessary to prevent serious loss
of perishable goods;
(d) Where the woman employee holds a responsible
position of managerial or technical nature, or where
the woman employee has been engaged to provide
health and welfare services;
(e) Where the nature of the work requires the manual
skill and dexterity of women workers and the same
cannot be performed with equal efficiency by male
workers;
(f) Where the women employees are immediate
members of the family operating the establishment or
undertaking; and
(g) Under other analogous cases exempted by the
Secretary of Labor and Employment in appropriate
regulations.
Art. 132. Facilities for women.
The Secretary of Labor and Employment shall establish
standards that will ensure the safety and health of
women employees. In appropriate cases, he shall, by
regulations, require any employer to:
(a) Provide seats proper for women and permit them to
use such seats when they are free from work and
during working hours, provided they can perform their
duties in this position without detriment to efficiency;
(b) To establish separate toilet rooms and lavatories
for men and women and provide at least a dressing
room for women;
(c) To establish a nursery in a workplace for the benefit
of the women employees therein; and

(d) To determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and the
like.
Art. 133. Maternity leave benefits.
(a) Every employer shall grant to any pregnant woman
employee who has rendered an aggregate service of at
least six (6) months for the last twelve (12) months,
maternity leave of at least two (2) weeks prior to the
expected date of delivery and another four (4) weeks
after normal delivery or abortion with full pay based
on her regular or average weekly wages. The employer
may require from any woman employee applying for
maternity leave the production of a medical certificate
stating that delivery will probably take place within two
weeks.
(b) The maternity leave shall be extended without pay
on account of illness medically certified to arise out of
the pregnancy, delivery, abortion or miscarriage, which
renders the woman unfit for work, unless she has
earned unused leave credits from which such extended
leave may be charged.
(c) The maternity leave provided in this Article shall be
paid by the employer only for the first four (4)
deliveries by a woman employee after the effectivity of
this Code.
Note: READ Maternity Leave under the SSS Law
Art. 134. Family planning services; incentives for family
planning.
(a) Establishments which are required by law to
maintain a clinic or infirmary shall provide free family
planning services to their employees which shall
include, but not be limited to, the application or use of
contraceptive pills and intrauterine devices.
(b) In coordination with other agencies of the
government engaged in the promotion of family
planning, the Department of Labor and Employment
shall develop and prescribe incentive bonus schemes to
encourage family planning among female workers in
any establishment or enterprise.
Art. 135. Discrimination prohibited.
It shall be unlawful for any employer to discriminate
against any woman employee with respect to terms
Labor Standards Reviewer 27
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and conditions of employment solely on account of her
sex.
The following are acts of discrimination:
(a) Payment of a lesser compensation, including wage,
salary or other form of remuneration and fringe
benefits, to a female employees as against a male
employee, for work of equal value; and
(b) Favoring a male employee over a female employee
with respect to promotion, training opportunities,
study and scholarship grants solely on account of their
sexes.
Criminal liability for the willful commission of any
unlawful act as provided in this Article or any violation
of the rules and regulations issued pursuant to Section 2
hereof shall be penalized as provided in Articles 288
and 289 of this Code:
Provided, That the institution of any criminal action
under this provision shall not bar the aggrieved
employee from filing an entirely separate and distinct
action for money claims, which may include claims for
damages and other affirmative reliefs. The actions
hereby authorized shall proceed independently of each
other. (As amended by Republic Act No. 6725, May 12,
1989)
Art. 136. Stipulation against marriage.
It shall be unlawful for an employer to require as a
condition of employment or continuation of
employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that upon
getting married, a woman employee shall be deemed
resigned or separated, or to actually dismiss,
discharge, discriminate or otherwise prejudice a
woman employee merely by reason of her marriage.
Art. 137. Prohibited acts.
It shall be unlawful for any employer:
(1) To deny any woman employee the benefits
provided for in this Chapter or to discharge any woman
employed by him for the purpose of preventing her
from enjoying any of the benefits provided under this
Code.
(2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement due to
her pregnancy;

(3) To discharge or refuse the admission of such
woman upon returning to her work for fear that she
may again be pregnant.
Art. 138. Classification of certain women workers.
Any woman who is permitted or suffered to work, with
or without compensation, in any night club, cocktail
lounge, massage clinic, bar or similar establishments
under the effective control or supervision of the
employer for a substantial period of time as
determined by the Secretary of Labor and
Employment, shall be considered as an employee of
such establishment for purposes of labor and social
legislation.
RA 10151 (Nightwork for women)
*Certificate of fitness to work at night for pregnant
women.
Child Birth: assistance must be given 60 weeks (divided
before and after).
D. EMPLOYMENT OF CHILDREN (RA 9231)
General Rule: Children below fifteen (15) years of age
shall not be employed
Except:
1. When a child works directly under the:
(a) sole responsibility of his/her parents or legal
guardian and
(b) where only members of his/her family are
employed:
Provided, however, That his/her (c) employment
neither endangers his/her life, safety, health, and
morals, nor impairs his/her normal development:
Provided, further, That (d) the parent or legal guardian
shall provide the said child with the prescribed primary
and/or secondary education; or
2. Where a child's (a) employment or participation in
public entertainment or information through cinema,
theater, radio, television or other forms of media is
essential: Provided, That the (b) employment contract
is concluded by the child's parents or legal guardian,
(c) with the express agreement of the child concerned,
if possible, and the (d) approval of the Department of
Labor and Employment: Provided, further, That the (e)
following requirements in all instances are strictly
complied with:
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"(a) The employer shall ensure the protection, health,
safety, morals and normal development of the child;
"(b) The employer shall institute measures to prevent
the child's exploitation or discrimination taking into
account the system and level of remuneration, and the
duration and arrangement of working time; and
"(c) The employer shall formulate and implement,
subject to the approval and supervision of competent
authorities, a continuing program for training and skills
acquisition of the child.
"In the above-exceptional cases where any such child
may be employed, the employer shall first secure,
before engaging such child, a work permit from the
Department of Labor and Employment which shall
ensure observance of the above requirements.
"For purposes of this Article, the term
Child shall apply to all persons under eighteen (18)
years of age.
Section 3. The same Act, as amended, is hereby further
amended by adding new sections to be denominated as
Sections 12-A, 12-B, 12-C, and 12-D to read as follows:
"Sec. 2-A. Hours of Work of a Working Child. - Under
the exceptions provided in Section 12 of this Act, as
amended:
"(1) A child below fifteen (15) years of age may be
allowed to work for not more than twenty (20) hours a
week: Provided, That the work shall not be more than
four (4) hours at any given day;
"(2) A child fifteen (15) years of age but below eighteen
(18) shall not be allowed to work for more than eight
(8) hours a day, and in no case beyond forty (40) hours
a week;
(3) No child below fifteen (15) years of age shall be
allowed to work between eight o'clock in the evening
and six o'clock in the morning of the following day and
no child fifteen (15) years of age but below eighteen
(18) shall be allowed to work between ten o'clock in
the evening and six o'clock in the morning of the
following day.
Sec. 12-D. Prohibition Against Worst Forms of Child
Labor. - No child shall be engaged in the worst forms of
child labor. The phrase "worst forms of child labor" shall
refer to any of the following:
"(1) All forms of slavery, as defined under the
"Antitrafficking in Persons Act of 2003", or practices

similar to slavery such as sale and trafficking of children,
debt bondage and serfdom and forced or compulsory
labor, including recruitment of children for use in armed
conflict; or
(2) The use, procuring, offering or exposing of a child
for prostitution, for the production of pornography or
for pornographic performances; or
(3) The use, procuring or offering of a child for illegal or
illicit activities, including the production and trafficking
of dangerous drugs and volatile substances prohibited
under existing laws; or
(4) Work which, by its nature or the circumstances in
which it is carried out, is hazardous or likely to be
harmful to the health, safety or morals of children,
such that it:
a. Debases, degrades or demeans the intrinsic worth
and dignity of a child as a human being; or
b. Exposes the child to physical, emotional or sexual
abuse, or is found to be highly stressful psychologically
or may prejudice morals; or
c. Is performed underground, underwater or at
dangerous heights; or
d. Involves the use of dangerous machinery, equipment
and tools such as power-driven or explosive power-
actuated tools; or
e. Exposes the child to physical danger such as, but not
limited to the dangerous feats of balancing, physical
strength or contortion, or which requires the manual
transport of heavy loads; or
f. Is performed in an unhealthy environment exposing
the child to hazardous working conditions, elements,
substances, co-agents or processes involving ionizing,
radiation, fire, flammable substances, noxious
components and the like, or to
extreme temperatures, noise levels, or vibrations; or
g. Is performed under particularly difficult conditions; or
h. Exposes the child to biological agents such as
bacteria, fungi, viruses, protozoans, nematodes and
other parasites; or
i. Involves the manufacture or handling of explosives
and other pyrotechnic products."
Section 5. Section 14 of the same Act is hereby
amended to read as follows:
Sec. 14. Prohibition on the Employment of Children in
Certain Advertisements. -
No child shall be employed as a model in any
advertisement directly or indirectly promoting
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alcoholic beverages, intoxicating drinks, tobacco and
its byproducts, gambling or any form of violence or
pornography."
E. EMPLOYMENT OF HOUSEHELPERS
Not more than 10 hours a day plus 4 days of vacation
leave.
Unjust termination
1. Without contract: 15 days as way of indemnity.
2. With contract: remaining months of the
contract + 15 days of indemnity.
Are house helpers are entitled to 13th month pay?
No
Because they are an exception being expressly provided
by the law. But they are included in SSS law.
Art. 142. Contract of domestic service.
The original contract of domestic service shall not last
for more than two (2) years but it may be renewed for
such periods as may be agreed upon by the parties.
Art. 143. Minimum wage.
Househelpers shall be paid the following minimum
wage rates:
(1) Eight hundred pesos (P800.00) a month for
househelpers in Manila, Quezon, Pasay, and
Caloocan cities and municipalities of Makati, San
Juan, Mandaluyong, Muntinlupa, Navotas, Malabon,
Paraaque, Las Pias, Pasig, Marikina, Valenzuela,
Taguig and Pateros in Metro Manila and in highly
urbanized cities;
(2) Six hundred fifty pesos (P650.00) a month for those
in other chartered cities and first-class municipalities;
and
(3) Five hundred fifty pesos (P550.00) a month for those
in other municipalities.
Provided, That the employers shall review the
employment contracts of their househelpers every
three (3) years with the end in view of improving the
terms and conditions thereof.
Provided, further, That those househelpers who are
receiving at least One thousand pesos (P1,000.00) shall
be covered by the Social Security System (SSS) and be
entitled to all the benefits provided thereunder. (As
amended by Republic Act No. 7655, August 19, 1993)
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be disposed of or distributed in accordance with his

Art. 144. Minimum cash wage. directions; or
The minimum wage rates prescribed under this Chapter
shall be the basic cash wages which shall be paid to the (2) Sells any goods, articles or materials to be
househelpers in addition to lodging, food and medical processed or fabricated in or about a home and then
attendance. rebuys them after such processing or fabrication,
either by himself or through some other person.
Art. 145. Assignment to non-household work.
No househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
wage or salary rate lower than that provided for
agricultural or non-agricultural workers as prescribed Art. 156. First Aid treatment.
herein. Every employer shall keep in his establishment such first
aid medications and equipment... xxx
Art. 146. Opportunity for education.
If the househelper is under the age of eighteen (18) Art. 157.
years, the employer shall give him or her an
opportunity for at least elementary education. The Number of Employees Medical services rendered
cost of education shall be part of the househelpers by
compensation, unless there is a stipulation to the Exceeds 50 but less than a full-time registered
contrary 200 nurse
Exceeds 200 but not more Full-time nurse, part-time
than 300 physician and dentist, and
F. EMPLOYMENT OF HOMEWORKERS an emergency clinic
Exceeds 300 Full-time physician,
Art. 153. Regulation of industrial homeworkers. dentist, and a full-time
The employment of industrial homeworkers and field registered nurse; as well
personnel shall be regulated by the government as a dental clinic, infirmary
through the appropriate regulations issued by the or emergency hospital
Secretary of Labor and Employment to ensure the with one bed capacity for
general welfare and protection of homeworkers and every one hundred
field personnel and the industries employing them. employees

Art. 154. Regulations of Secretary of Labor.
The regulations or orders to be issued pursuant to this
Chapter shall be designed to assure the minimum terms
and conditions of employment applicable to the
industrial homeworkers or field personnel involved
Art. 155. Distribution of homework.
For purposes of this Chapter, the
Employer of homeworkers includes any person,
natural or artificial who, for his account or benefit, or on
behalf of any person residing outside the country,
directly or indirectly, or through an employee, agent
contractor, sub-contractor or any other person:
*ART 157 ALLOWS EMPLOYERS IN NON-HAZARDOUS
PLACES TO ENGAGE ON RETAINED BASIS THE
SERVICES OF A DENTIST AND PHYSICIAN.
Art. 158 When emergency hospital not required.
IN CASE THERE IS A HOSPITAL OR DENTAL CLINIC WHICH
IS ACCESSIBLE FROM THE EMPLOYERS ESTABLISHMENT
AND HE MAKES ARRANGEMENT FOR THE
RESERVATION.

(1) Delivers, or causes to be delivered, any goods,

articles or materials to be processed or fabricated in
or about a home and thereafter to be returned or to
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EMPLOYEES COMPENSATION AND STATE INSURANCE
FUND
Workmens Compensation is a general and
comprehensive term applied to thos laws providing for
compensation for loss resulting from the injury,
disablement, or death of workmen through industrial
accident, casualty or disease.
*What gives rise to a compensation claim is either
INJURY or DISEASE. But what is compensated is not the
injury or disease but the attendant LOSS OF EARNING
CAPACITY.
A. Injury any harmful change in the human
organism from any accident arising out of and
in the course of employment.

PD 626 took effect on Januray 1, 1975 In order for the injury and the resulting disability to
become compensable, the injury must be the result of
*All covered employers throughout the country are an employment accident satisfying ALL OF THE
required by law to contribute fixed and regular FOLLOWING GROUNDS:
premiums or contributions to a trust fund for their 1. The employee must have been injured at the
employees. Benefits are paid from this trust. place where his work requires him to be
2. The employee must have been performing his
WORKMENS EMPLOYEES official functions;
COMPENSATION ACT COMPENSATION LAW 3. If the injury is sustained elsewhere, the
There was presumption of In order for the employee employee must have been executing an order
compensability. The legal to be entitled to sickness for the employer
presumption, in the or death benefits, the
absence of substantial sickness or death resulting arising out of refers to the origin or cause of the
evidence to the contrary, therefrom must be: accident and are descriptive of its character
was that the claim for a. Any illness in the course of refers to the time, place, and
compensation came definitely circumstances under which the accident takes place.
within the provisions of accepted as
the compensation law occupational PROXIMATE CAUSE sufficient cause; must be that
disease listed by which sets the others in motion
The burden of proof lies the Commission The proximate legal cause is that acting first and
on the employers b. Any illness caused producing the injury, either immediately or by setting
shoulders. by employment other events in motion.
subject to proof
If the ailment was that the risk of CASES:
aggravated by his work, contracting the Belarmino v. ECC GR 90104 (page 482)
the employer was liable same increased by Hinoguin v. ECC GR 8430 (page 483)
for compensation working
conditions 24-hour duty doctrine and its qualifications
The employer should For the purpose of determining compensability of injury
dispute the claim within Presumption of or death, soldiers and policemen and even firemen by
14 days or within 10 days Compensability was the nature of their work may be considered on duty
after acquiring knowledge abandoned (except for ROUND-THE-CLOCK. But this doctrine does not dispense
thereof; failure to do so AFP members and with the work-connection requisite.
would be considered to policemen) Case: GSIS v. CA and F. Alegre GR 128524
have waived the right to
question the validity of INGRESS-EGRESS/PROXIMITY RULE
claim The place where the employee was injured being
immediately occurred within the zone of his
employment and therefore arose out of and in the
course thereof.

GOING TO OR COMING FROM WORK RULE
An injury or death of a covered member in an accident
while he is going to or coming from the workplace shall
be duly considered compensable provided that the
following conditions are present:
1. The act of the employee going to or coming
from the workplace must have been a
CONTINUING ACT, that is, he had not been
diverted therefrom by any other activity, and he
ahd not departed from his usual route to, or
from, his workplace;
2. Re: an employee is on a special errand, the
special errand must have been official and in
connection with his work.
ACTS OF MINISTRATION
Such acts as are reasonably necessary to the health and
comfort of an employee while at work, such as
satisfaction of his thirst, hunger or other physical
demands, are incidental to the employment, and
injuries sustained in the performance of such acts are
generally held to be compensable as arsing out and in
the course of the employment.
EXTRA PREMISES RULE Shuttle Bus rule
The company which provides the means of
transportation in going to and coming from the place of
work is liable for the injury sustained by the employees
while on board of said transportation, because the
company vehicle is an extension of its premises.
WHILE LIVING BOARDING or LODGING ON PREMISES
OF EMPLOYER
General rule: compensable if the injury is reasonably
attributable or incidental to the nature of the
employment.
WHILE TRAVELING
The right of compensation depends upon whether the
injury results from a risk which is inherent in the nature
of employment or upon whether the employee, at the
time of the accident, was engaged in the exercise of
some functions or duties, or, if not actively engaged,
whether he was at a place he was authorized to be.
Compensable: even if the employee uses his own
vehicle
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DUAL PURPOSE DOCTRINE
The dual purpose doctrine allowing compensation
applies where a special trip would have had to be made
for the employer if the employee had not combined the
service for the employer with his own going or coming
trip. It considers as compensable an injury that the
employee sustains while on a trip undertaken for the
benefit of the employer even if in the course thereof,
the employee pursues also a personal purpose.
The requirement is that the service of the employer is at
least a concurrent cause of the trip of the employee.
EMPLOYER-SPONSORED ACTIVITIES
If the recreation was for the employees exclusive
benefit = compensable.
ACTS OF GOD OR FORCE MAJEURE
General rule: employer is not responsible for the
accidents arising from force majeure or acts of God,
when the employee has not been exposed to a greater
danger than usual
Exception: positional and local risks that if an
employee, by reason of his duties, is exposed to a
peculiar or special danger from the elements, that is,
one greater than that to which other people in the
community are exposed, and an unexpected injury is
sustained by reason of the elements, the injury
constitutes an accident arising out of and in the course
of employment.
B. Sickness any illness definitely accepted as
an occupational disease listed by the
Commission, OR any illness caused by the
employment subject to PROOF BY EMPLOYEE
that the risk of contracting the same is
increased by working conditions.
Duties of Employers bound to require preemployment
examination of all prospective employees and to
provide periodic medical examination
If an ailment is not included in the list of occupational
diseases, the claimant has the burden of proving that
the nature of the work increased the risk of contracting
the disease.
SEE LAST PAGES FOR THE LIST OF OCCUPATIONAL
DISEASES

*Proof of direct causal relation is not indispensably
required. It is enough that the claimant adduces PRROF
OF REASONABLE WORK-CONNECTION, whereby the
development of the disease was brought about largely
by the conditions present in the nature of the job.
Cases:
Raro v. ECC GR. 58445
Orate v. CA GR 132761
Art. 168. Compulsory coverage. Coverage in the State
Insurance Fund shall be compulsory upon all employers
and their employees not over sixty years of age;
Provided, That an employee who is over sixty years of
age and paying contributions to qualify for the
retirement or life insurance benefit administered by the
System shall be subject to compulsory coverage. (As
amended by Sec. 16, P.D. 850).
Art. 169. Foreign employment. The Commission shall
ensure adequate coverage of Filipino employees
employed abroad, subject to regulations as it may
prescribe.
Art. 170. Effective date of coverage. Compulsory
coverage of the employer during the effectivity of this
Title shall take effect on the first day of his operation,
and that of the employee, on the date of his
employment.
Art. 171. Registration. Each employer and his
employees shall register with the System in accordance
with its regulations.
Art. 172. Limitation of liability. The State Insurance
Fund shall be liable for compensation to the employee
or his dependents, except when the disability or death
was occasioned by the employee's intoxication, willful
intention to injure or kill himself or another, notorious
negligence, or otherwise provided under this Title.
Intoxication which will preclude compensation for by Section 2, Executive Order No. 179).
injury resulting therefrom consists in being under the
influence of intoxicating liquor to the extent that one is
not entirely himself or so that his judgment is impaired
and his act, words, or conduct is visibly impaired
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Self-inflicted injuries = not compensable
Suicide or Provoked death = not compensable
Notorious negligence it signifies a deliberate act of
employee to disregard his own personal safety
Art. 173. Extent of liability. Unless otherwise
provided, the liability of the State Insurance Fund under
this title shall be exclusive and in place of all other
liabilities of the employer to the employee, his
dependents or anyone otherwise entitled to receive
damages on behalf of the employee or his dependents.
The payment of compensation under this Title shall not
bar the recovery of benefits as provided for in Section
699 of the Revised Administrative Code, Republic Act
numbered eleven hundred sixty-one, as amended,
Commonwealth Act numbered one hundred eighty-six,
as amended, Republic Act numbered sixty-one hundred
eleven, as amended, Republic Act numbered six
hundred ten, as amended, Republic Act numbered
forty-eight hundred sixty-four, as amended, and other
laws whose benefits are administered by the System, or
by other agencies of the government. (As amended by
Sec. 2, P.D. 1921).
DISABILITY BENEFITS
ART. 191. Temporary total disability. - (a) Under such
regulations as the Commission may approve, any
employee under this Title who sustains an injury or
contracts sickness resulting in temporary total disability
shall, for each day of such a disability or fraction
thereof, be paid by the System an income benefit
equivalent to ninety percent of his average daily salary
credit, subject to the following conditions: the daily
income benefit shall not be less than Ten Pesos nor
more than Ninety Pesos, nor paid for a continuous
period longer than one hundred twenty days, except as
otherwise provided for in the Rules, and the System
shall be notified of the injury or sickness.(As amended
(b) The payment of such income benefit shall be in
accordance with the regulations of the Commission. (As
amended by Section 19, Presidential Decree No. 850).
ART. 192. Permanent total disability. - (a) Under such
regulations as the Commission may approve, any
employee under this Title who contracts sickness or
sustains an injury resulting in his permanent total
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disability shall, for each month until his death, be paid Complete and permanent No. of Months
by the System during such a disability, an amount loss of the use of
equivalent to the monthly income benefit, plus ten
percent thereof for each dependent child, but not One thumb - 10
exceeding five, beginning with the youngest and One index finger - 8
without substitution: Provided, That the monthly One middle finger - 6
income benefit shall be the new amount of the monthly One ring finger - 5
benefit for all covered pensioners, effective upon One little finger - 3
approval of this Decree. One big toe - 6
One toe - 3
(b) The monthly income benefit shall be guaranteed for One arm - 50
five years, and shall be suspended if the employee is One hand - 39
gainfully employed, or recovers from his permanent One foot - 31
total disability, or fails to present himself for One leg - 46
examination at least once a year upon notice by the One ear - 10
System, except as otherwise provided for in other laws, Both ears - 20
decrees, orders or Letters of Instructions. (As amended Hearing of one ear - 10
by Section 5, Presidential Decree No. 1641). Hearing of both ears - 50
Sight of one eye - 25
(c) The following disabilities shall be deemed total and
permanent:
(c) A loss of a wrist shall be considered as a loss of the
(1) Temporary total disability lasting continuously for hand, and a loss of an elbow shall be considered as a
more than one hundred twenty days, except as loss of the arm. A loss of an ankle shall be considered as
otherwise provided for in the Rules; loss of a foot, and a loss of a knee shall be considered as
(2) Complete loss of sight of both eyes; a loss of the leg. A loss of more than one joint shall be
considered as a loss of one-half of the whole finger or
(3) Loss of two limbs at or above the ankle or wrist; toe: Provided, That such a loss shall be either the
functional loss of the use or physical loss of the
(4) Permanent complete paralysis of two limbs; member. (As amended by Section 7, Presidential Decree
No. 1368).
(5) Brain injury resulting in incurable imbecility or
insanity; and (d) In case of permanent partial disability less than the
total loss of the member specified in the preceding
(6) Such cases as determined by the Medical Director of
paragraph, the same monthly income benefit shall be
the System and approved by the Commission.
paid for a portion of the period established for the total
(d) The number of months of paid coverage shall be loss of the member in accordance with the proportion
defined and approximated by a formula to be approved that the partial loss bears to the total loss. If the result
by the Commission. is a decimal fraction, the same shall be rounded off to
ART. 193. Permanent partial disability. - (a) Under such the next higher integer.
regulations as the Commission may approve, any
(e) In cases of simultaneous loss of more than one
employee under this Title who contracts sickness or
member or a part thereof as specified in this Article, the
sustains an injury resulting in permanent partial
same monthly income benefit shall be paid for a period
disability shall, for each month not exceeding the period
equivalent to the sum of the periods established for the
designated herein, be paid by the System during such a
loss of the member or the part thereof. If the result is a
disability an income benefit for permanent total
decimal fraction, the same shall be rounded off to the
disability.
next higher integer.
(b) The benefit shall be paid for not more than the
(f) In cases of injuries or illnesses resulting in a
period designated in the following schedules:
permanent partial disability not listed in the preceding
schedule, the benefit shall be an income benefit
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equivalent to the percentage of the permanent loss of Secretary of Labor

the capacity to work.
Direct-hiring by members of the diplomatic corps,
(g) Under such regulations as the Commission may international organizations and such other employers as
approve, the income benefit payable in case of may be allowed by the Secretary of Labor.
permanent partial disability may be paid in monthly
pension or in lump sum if the period covered does not Name-hirees those individuals who are able to secure
exceed one year. (As added by Section 7, Presidential contracts for overseas employment on their own efforts
Decree No. 1368). without the assistance or participation of an agency.
However, they still need to register with POEA
RECRUITMENT AND PLACEMENT OF WORKERS
ART. 21 PROVIDE AMPLE PROTECTION TO FILIPINO
Art. 13. Definitions
WORKERS ABROAD
Worker any member of the labor force, whether
employed or unemployed.
DFA shall take priority action or make representation
with the foreign authority to protect the righs of
Recruitment and placement any act of canvassing,
migrant workers; including repatriation
enlisting, contracting, transporting, utilizing, hiring or
procuring workers, and includes referrals, contract
DOLE shall see to it that labor and social laws in the
services, promising or advertising for employment,
foreign country s are fairly applied
locally or abroad, whether for profit or not: Provided,
That any person or entity which, in any manner, offers
POEA provides licensing and registration system.
or promises for a fee, employment to two or more
persons shall be deemed engaged in recruitment and
OWWA shall provide Filipino migrant worker and his
placement.
family all the assistance they may need in the
enforcement of contractual obligations.
employment to two or more persons shall be deemed
engaged in recruitment and placement - this is only a
RPM (Re-placement and Monitoring) Center regulates
matter of evidence. Thus, even the employment
the reintegration of a migrant worker. It is expeted to
involves only one person, there is already the
develop livelihood programs for the returning workers.
engagement of recruitment and placement.

The number of persons dealt with is not the basis in

REPUBLIC ACT NO. 8042
determining whether or not an act constitutes
Migrant Workers and Overseas Filipinos Act of 1995
recruitment and placement. Any of the acts
An act to institute the policies of overseas
mentioned in Article 13(b) will constitute recruitment
employment and establish a higher standard of
and placement even if only one prospective worker is
protection and promotion of the welfare of migrant
involved. In that case, a license or authority from
workers, their families and overseas Filipinos in
POEA is needed.
distress, and for other purposes.
License means a document issued by the Department
Migrant worker a person who is to be engaged, is
of Labor authorizing a person or entity to operate a
engaged or has been engaged in a renumerated activity
private employment agency.
in a state of which he or she is not a legal resident to be
used interchangeably with overseas Filipino worker.
Art. 18. Ban on direct-hiring
General Rule:
ADJUDICATORY POWERS
No employer may hire a Filipino worker for overseas
POEA recruitment violations and related cases
employment.
consisting of all pre-employment cases which are
administrative in character; disciplinary actions nd other
Exception:
Through the Boards and entities authorized by the

special cases involving employers, principals,
contracting workers and Filipino migrant workers
NLRC claims arising out of an employer-employee
relationship or by virtue of any law or contract involving
Filipino workers for Overseas Deployment and claims
for damages
ART 29 Non-transferability of licenses or authority
ART 30 Registration Fees
ART 31 BONDS. All applicants must post cash and
surety bonds to guarantee compliance with prescribed
recruitment procedures, rules and regulations.
*Not subject to garnishment in favour of third persons
for it is intended to answer only for employment-
related claims
Art. 32. Fees to be paid by workers.
Any person applying with a private fee-charging
employment agency for employment assistance shall
not be charged any fee until he has obtained
employment through its efforts or has actually
commenced employment. Such fee shall be always
covered with the appropriate receipt clearly showing
the amount paid. The Secretary of Labor shall
promulgate a schedule of allowable fees.
Placement fee shall not exceed 20% of the workers
FIRST months basic salary.
II. ILLEGAL RECRUITMENT
Illegal recruitment any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring, procuring
workers and includes referring, contact services,
promising or advertising for employment abroad,
whether for profit or not, when undertaken by a non-
license or non-holder of authority. Provided, that such
non-license or non-holder, who, in any manner, offers
or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall
likewise include the following acts, whether
committed by any persons, whether a non-licensee,
non-holder, licensee or holder of authority.
(a) To charge or accept directly or indirectly any
amount greater than the specified in the schedule of
allowable fees prescribed by the Secretary of Labor and
Employment, or to make a worker pay any amount
greater than that actually received by him as a loan or
advance;
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(b) To furnish or publish any false notice or information
or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or
document or commit any act of misrepresentation for
the purpose of securing a license or authority under
the Labor Code;
(d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a
worker from oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any persons or
entity not to employ any worker who has not applied
for employment through his agency;
(f) To engage in the recruitment of placement of
workers in jobs harmful to public health or morality or
to dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by
the
Secretary of Labor and Employment or by his duly
authorized representative;
(h) To fail to submit reports on the status of
employment, placement vacancies, remittances of
foreign exchange earnings, separations from jobs,
departures and such other matters or information as
may be required by the Secretary of Labor and
Employment;
(i) To substitute or alter to the prejudice of the worker,
employment contracts approved and verified by the
Department of Labor and Employment from the time
of actual signing thereof by the parties up to and
including the period of the expiration of the same
without the approval of the Department of Labor and
Employment;
(j) For an officer or agent of a recruitment or
placement agency to become an officer or member of
the Board of any corporation engaged in travel agency
or to be engaged directly on indirectly in the
management of a travel agency;
(k) To withhold or deny travel documents from
applicant workers before departure for monetary or
financial considerations other than those authorized
under the Labor Code and its implementing rules and
regulations;
(l) Failure to actually deploy without valid reasons as
determined by the Department of Labor and
Employment; and
(m) Failure to reimburse expenses incurred by the
workers in connection with his documentation and
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processing for purposes of deployment, in cases where

the deployment does not actually take place without
the worker's fault.

Illegal recruitment when committed by a syndicate

or in large scale shall be considered as offense involving
economic sabotage.
Syndicate is illegal recruitment carried out by a group
of three (3) or more persons conspiring or
confederating with one another.
Large scale is illegal recruitment committed against
three (3) or more persons individually or as a group.
The persons criminally liable for the above offenses are
the principals, accomplices and accessories.
In case of juridical persons, the officers having control,
management or direction of their business shall be
liable. An employee who was merely acting under the
direction of his superiors and was unaware that his acts
constituted a crime may not be held criminally liable.

SEC. 12. PRESCRIPTIVE PERIODS

Illegal recruitment cases under this Act shall prescribe
in five (5) years: Provided, however, That illegal
recruitment cases involving economic sabotage as
defined herein shall prescribe in twenty (20) years.

Chapter III
MISCELLANEOUS PROVISIONS
Art. 36. Regulatory power.
The Secretary of Labor shall have the power to restrict
and regulate the recruitment and placement activities
of all agencies within the coverage of this Title and is
hereby authorized to issue orders and promulgate rules
and regulations to carry out the objectives and
implement the provisions of this Title.

Art. 37. Visitorial Power.

The Secretary of Labor or his duly authorized
representatives may, at any time, inspect the premises,
books of accounts and records of any person or entity
covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of
any provisions of this Title.

*POEA has the power to order closure of an illegal

recruitment establishment
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