LABOR LAW 1 that govern the individual and collective interactions
1st Semester, AY 2008-2009 of employers, employees or their representatives.
Prof. E. (Leo) D. Battad
College of Law
University of the Philippines
SUGGESTED TEXTBOOK:
CA Azucena, The Labor Code with Comments and
Cases (Latest Edition)
REFERENCES:
Samson S. Alcantara, and Samson B. Alcantara Jr.,
Philippine Labor and Social Legislation Annotated
1987 Philippine Constitution
The Labor Code of the Philippines and its
Implementing Rules &
Regulations
Pertinent International Human Rights Instruments
and ILO Conventions, Recommendations and Labor-
related laws
Assigned Readings
I. INTRODUCTION TO LABOR LAW
A. Labor as a Concept
1. General Sense
Labor physical toil although it does not necessarily
exclude the application of skill, thus there is skilled
and unskilled labor.
Skill familiar knowledge of any art or sciencem
united with radiness and dexterity in execution or
performance or in the application of the art or
science to practical purposes.
Work is broader than labor as work covers all forms
of physical or mental exertion, or both combined, for
the attainment of some object other than recreation
or amusement per se.
2. Technical sense
Worker broader than employee as workers may
refer to self-employed people, and those working in
the service and under the control of another,
regardless of rank, title, or nature of work.
Employee salaried person working for another who
controls or supervises the means, manner or method
of doing the work.
B. Labor Law
1. Definition
Labor legislaton labor standards + labor relations
a. consists of statutes, regulations and
jurisprudence
b. governing the relations between capital and
labor
c. by providing for certain employment
standards and a legal framework
d. for negotiating, adjusting and administering
those standards and other incidents of
employment.
Labor standards: which sets out the minimum
terms, conditions, and benefits of employment that
employers must provide or comply with and to which
employees are entitled as a matter of legal right.
Labor relations law: which defines the status,
rights and duties and the institutional mechanisms
SOCIAL LEGISLATION VS. LABOR LAWS
Social legislation: provides particular kinds of
protection or benefits to society or segments thereof
in furtherance of social justice.
Labor laws are necessarily social legislation. But to
differentiate, labor laws directly affect employment
while social legislation governs effects of
employment.
Labor laws are social legislation but not all social
legislation are labor laws.
2. Social Justice, Const., Art. II, Sec. 10; Art.
XIII, Sec. 1-3
Section 10. The State shall promote social justice in
all phases of national development.
Section 1. The Congress shall give highest priority to
the enactment of measures that protect and enhance
the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
remove cultural inequities by equitably diffusing
wealth and political power for the common good.
To this end, the State shall regulate the acquisition,
ownership, use, and disposition of property and its
increments.
Section 2. The promotion of social justice shall
include the commitment to create economic
opportunities based on freedom of initiative and self-
reliance.
ARTICLE XIII LABOR
Section 3. The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment and
equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be entitled
to security of tenure, humane conditions of work, and
a living wage. They shall also participate in policy and
decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between
workers and employers, recognizing the right of labor
to its just share in the fruits of production and the right
of enterprises to reasonable returns to investments,
and to expansion and growth.
The aim and the reason and, therefore, the
justification of labor laws is social justice.
Social Justice: JP Laurel in Calalang neither
communism, nor despotism, nor atomism not
anarchy but the humanization of laws and the
equalization of social and economic forces by the
State so that justice in its rational and objectively
secular conception may at least be approximated.
The promotion of the welfare of all the people, the
adoption by the Government of measures calculated
 to insure economic stability of all the component
elements of society through the maintenance of
proper economic and social equilibrium in the
interrelations of the members of the community,
constitutionality, through the adoption of measures
legally justifiable, or extra-constitutionally, through
the exercise of powers underlying the existence of all
governments, on the time-honored principle of salus
populi est suprema lex.
Labor is the primary social economic force, thus the
State shall protect the rights of workers and promote
their welfare.
Constitutional Rights and Mandates
The State shall afford full protection to labor and this
is found in the 1935, 1973, and 1987 Consti. The
State affirms labor as a primary social economic
force thus, it shall protect the right of the workers
and promote their welfare.
Basic rights of workers guaranteed by the consti:
1. Right to organize themselves
2. Conduct collective bargaining or
negotiation with management
3. Engage in peaceful concerted
activities, including to strike in
accordance with law
4. Enjoy security of tenure
5. Work under humane conditions
6. Receive a living wage
7. Participate in policy and decision-
making processes affecting their
rights and benefits as may be
provided by law. (Sec. 3, XIII).
Other provisions in the Consti:
1) Right to form unions, associations, societies
for purposes not contrary to law.
2) Right to self organization shall not be denied
to government employees.
3) Regular farmworkers shall have the right to
own directly or collectively the lands they
till.
4) The State shall by law and for common
good, undertake in cooperation with the
private sector a continuing program of
urban land reform and housing.
5) The State shall protect working women by
providing safe and healthful working
conditions taking into account their
maternal functions.
6) Labor is entitled to seats allotted to party-
list representatives
7) The State shall promote industrialization
and full employment based on sound
agricultural development and agrarian
reform.
8) Congress shall create an agency to promote
the viability and growth of cooperatives.
9) The Govt shall increase salary scales of the
other officials and employees of the
National Government.
10) Career civil service employees shall be
entitled to appropriate separation pay and
to retirement and other benefits under
existing laws.
a. Definition/Balancing of Interest
Calalang v. Williams, 70 Phil. 726 (1940)
Social Justice: JP Laurel in Calalang neither
communism, nor despotism, nor atomism not
anarchy but the humanization of laws and the
equalization of social and economic forces by the
State so that justice in its rational and objectively
secular conception may at least be approximated.
Social justice is the promotion of the welfare of all
the people, the adoption by the Government of
measures calculated to insure economic stability of
all the component elements of society through the
maintenance of proper economic and social
equilibrium in the interrelations of the members of
the community, constitutionality, through the
adoption of measures legally justifiable, or extra-
constitutionally, through the exercise of powers
underlying the existence of all governments, on the
time-honored principle of salus populi est suprema
lex.
Manila Electric Co. v. Sec. of Labor, 337 SCRA 90
(2000)
When will the CBA take effect?
<-o-------------------------------I x--------------------------
CBA expiration 6 months
Secretary of Labor may determine the date of
retroactivity as part of his discretionary powers. But
this discretionary power shall only be exercised only
when jurisdiction has been vested.
Assailed Resolution:
Article 263(g) gives the Secretary jurisdiction. CBA
negotiated within six months after the expiration of
the existing CBA retroacts to the day immediately
following such date and if agreed thereafter, the
effectivity depends on the agreement of the parties.
But the law is silent as to the retroactivity of a CBA
arbitral award or that granted not by virtue of the
mutual agreement of the parties but by intervention
of the government. Despite the silence of the law,
the Court rules herein that CBA arbitral awards
granted after six months from the expiration of the
last CBA shall retroact to such time agreed upon by
both employer and the employees or their union.
Absent such an agreement as to retroactivity, the
award shall retroact to the first day of the six-month
period following the expiration of the last day of the
CBA should there be one. IN the absence of a CBA,
the Secs determination of the date of retroactivity as
part of his discretionary powers over arbitral awards
shall control.
Held: Where an arbitral award is granted beyond six
months after the expiration of the existing CBA, and
there is no agreement between the parties as to the
date of effectivity thereof, the arbitral award shall
retroact to the first day after the six-month period
following the expiration of the last day of the CBA.
But instead of Dec 1, 1995 to Nov 30 1997 (CBA had
a 2-year applicability period), the Court modified it to
June 1, 1996 to May 31, 1998.
On social justice: [T]his Court cannot ignore the
enormous cost that petitioner will have to bear as a
consequence of the fill retroaction of the arbitral
award to the date of the expiry of the CBA and the
inevitable effect that it would have on the national
economy. On the other hand, under the policy of
social justice, the law bends over backward to
accommodate the interests of the working class on
the humane justification that those with less privilege
in life should have more in law. Balancing these two
contrasting interests, this Court turned to the
dictates of fairness and equitable justice and thus
arrived at a formula that would address the concerns
of both sides. Thus, Arbitral award must retroact to
the first day AFTER the six-month period following
the last day of the CBA.
Azucena:
Duman / Labor I / Prof. Battad / Page 2
 The Consitution has not overlooked the rights of
capital. It provides that, the State recognizes the
indispensable role of the private sector, encourages
private enterprise, and provides incentives to needed
investments (Art. II, Sec. 20).
While labor is entitled to a just share in the fruits of
production, the enterprise has an equally important
right not only to reasonable returns on investment
but also to expansion and growth.
Shared Responsibility between workers and
employers Preferential use of voluntary modes of
settling disputes.
a. Foundation: Police Power and State
Protection
While social justice is the raison detre of labor laws,
their basis or foundation is the police power of the
State.
a. State legislatures may enact laws for the
protection of the safety and health of
employees.
b. Right of every person to pursue a business,
occupation, or profession is subject to the
paramount right of the government as a
part of its police power to impose such
restrictions and regulations as the
protection of the public may require.
Legal Classification: (discussed in light of the
suspension of deployment of women)
a. such classification rest on substantial
distinctions
b. they are germane to the purpose of the law
c. they are not confined to existing conditions
d. they apply equally to all members of the
same class
b. Foundation: Police Power and State Protection
CMS Estate, Inc. v. Social Security System, 132 SCRA
108 (1984)
The case of two businesses, one was in real estate
and the other was in the logging business. One
owner was demanding for a refund from SSS and it
refused to subscribe the employees of the 2nd
business to SSS because the business has not been
in operation for 2 years (which was the requirement
of the law) yet.
The Social Security Law was enacted pursuant to the
policy of the government to develop, establish
gradually and perfect a social security system which
shall be suitable to the needs of the people
throughout the Philippines, and shall provide
protection against the hazards of disability, sickness,
old age and death. It is thus clear that said
enactment implements the general welfare
mandate of the Constitution and constitutes a
legitimate exercise of the police power of the
State.
It is the intention of the law to cover as many
persons as possible so as to promote the
constitutional objective of social justice.
Compulsory coverage of the employer shall take
effect on the first day of his operation, and that of
the employee on the date of his employment (RA
1161 as amended by RA 2658). The two year
prescription of the prior law must be considered
prevailed over by the later law and moreover, the
legislative intent must be given effect.
c. Limits of Use
PLDT v. NLRC, 164 SCRA 671 (1988)
PLDT employee promised to facilitate the approval of
the complainants applications for telephone
installation and then received from them an amount
of money in consideration of her promise.
The rule embodied in the Labor Code is that a person
dismissed for cause as defined therein is not entitled
to separation pay. The cases abovecited (where
different cases were cited proving that some
companies still allowed separation pay despite the
degree of the ground upon which the employees
were being dismissed for) constitute the exception,
based upon considerations of equity. Equity has been
defined as justice outside law, being ethical rather
than jural and belonging to the sphere of morals than
of law. It is grounded on the precepts of conscience
and not on any sanction of positive law. Hence, it
cannot prevail against the expressed provision of the
labor laws allowing dismissal of employees for cause
and without any provision for separation pay.
Separation pay shall be allowed as a measure of
social justice only in those instances where the
employee is calidly dismissed for causes other than
serious misconduct or those reflecting on his moral
character. Where the reason for the valid dismissal is,
for example, habitual intoxication or an offense
involving moral turpitude, life theft or illicit sexual
relations with a fellow worker, the employer may not
be required to give the dismissed employee
separation pay or financial assistance, or whatever
other name it is called on the ground of social justice.
The policy of social justice is not intended to
countenance wrongdoing simply because it is
committed by the underprivileged. At best it may
mitigate the penalty but it certainly will not condone
the offense. Compassion for the poor is an
imperative of every humane society but only when
the recipient is not a rascal claiming an underserved
privilege. Social justice cannot be permitted to be
refuge of scoundrels any more than can equity be an
impediment to the punishment of the guilty. Those
who invoke social justive may do so only if their
hands are clean and their motives blameless and not
simply because they happen to be poor.
Agabon v. NLRC, 442 SCRA 573 (2004)
Employees were claiming illegal dismissal. Employer
was asserting that there was abandonment.
Abandonment is the deliberate and unjustified
refusal of an employee to resume his employment. It
is a form of neglect of duty, hence, a just cause for
termination of employment by the employer. For a
valid finding of abandonment: (1) failure to report for
work or absence without valid or justifiable reason
(2) clear intention to server employer-employee
relationship with the second as the more
determinative factor which is manifested by overt
acts from which it may be deduced that the
employees has no more intention to work.
Wenphil or Belated Due Process Rule: where the
employer had a valid reason to dismiss an employee
but did not follow the due process requirement, the
dismissal may be upheld but the employer will be
penalized to pay an indemnity to the employee.
But this was re-examined in Serrano case wherein
the Court required that the employer pay the full
backwages from the time of dismissal until the time
the Court finds the dismissal was for a just or
authorized cause. It was because of a significant
Duman / Labor I / Prof. Battad / Page 3
 number of cases involving dismissals without
requisite notices.
b. 1987 Constitution, Art. II, Secs. 5, 9, 10, 13, 14, 18;
In Agabon, the Court abandoned Serrano and Art. XIII, Secs. 1, 3, 14
followed Wenphil only that the sanctions imposed on
the employer must be stiffer than those in Wenphil.
ART. II
An employee who is clearly guilty of conduct
violative of Article 282 should not be protected by Section 5. The maintenance of peace and order, the
the Social Justice Clause of the Constitution. Social
protection of life, liberty, and property, and promotion
justice, as the terms suggests, should be used only
to correct an injustice.
of the general welfare are essential for the enjoyment
by all the people of the blessings of democracy.
JP Laurel, in Calalang: social justice must be founded
on the recognition of the necessity of Section 9. The State shall promote a just and
interdependence among diverse units of a society dynamic social order that will ensure the prosperity
and of the protection that should be equally and and independence of the nation and free the people
evenly extended to all groups as a combined forc e in from poverty through policies that provide adequate
our social and economic life, consistent with the social services, promote full employment, a rising
fundamental and paramount objective of the state of
standard of living, and an improved quality of life for
promoting the health, comfort and quiet of all
person, and of bringing about the greatest good to all.
the greatest number.
Section 10. The State shall promote social justice in
Social justice is not based on rigid formulas set in all phases of national development.
stone. It has to allow for changing times and
circumstances. Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social
5. Legal Basis
well-being. It shall inculcate in the youth patriotism
a. International Conventions and nationalism, and encourage their involvement in
public and civic affairs.
International School Alliance of Educators v. Section 14. The State recognizes the role of women
Quisumbing, 333 SCRA 13 (2000) in nation-building, and shall ensure the fundamental
equality before the law of women and men.
Foreigner teachers were given more benefits than
the local teachers.
Section 18. The State affirms labor as a primary
International law, which springs from general social economic force. It shall protect the rights of
principle of law, likewise proscribes discrimination. workers and promote their welfare.
General principles of law include principles of equity
i.e the general principles of fairness and justice, Art. XIII
based on the test of what is reasonable.
Section 1. The Congress shall give highest priority to
The following embody the general principle against
the enactment of measures that protect and enhance
discrimination, the very antithesis of fairness and
justice. the right of all the people to human dignity, reduce
social, economic, and political inequalities, and
Universal Declaration of Human remove cultural inequities by equitably diffusing
Rights wealth and political power for the common good.
The International Covenant on
Economic, Social, and Cultural Section 3. The State shall afford full protection to
Rights labor, local and overseas, organized and
The International Convention on unorganized, and promote full employment and
the Elimination of All Forms of equality of employment opportunities for all.
Racial Discrimination It shall guarantee the rights of all workers to self-
The Convention against organization, collective bargaining and negotiations,
Discrimination in Education and peaceful concerted activities, including the right
The Convention Concerning to strike in accordance with law. They shall be entitled
Discrimination in Respect of
to security of tenure, humane conditions of work, and
Employment and Occupation
a living wage. They shall also participate in policy and
Mentioned in the case: decision-making processes affecting their rights and
Bargaining Unit: is a group of employees of a given benefits as may be provided by law.
employer, comprised of all or less than all of the
entire body of employees, consistent with equity to The State shall promote the principle of shared
the employer indicate to be the best suited to serve responsibility between workers and employers and
the reciprocal rights and duties of the parties under the preferential use of voluntary modes in settling
the collective bargaining provisions of the law. disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial
The factors determining the appropriate collective
bargaining unit are: (1) the will of the employees (2) peace.
affinity and unity of the employees interest, such as
substantial similarity of work and duties, or similarity The State shall regulate the relations between
of compensation and working conditions (3) prior workers and employers, recognizing the right of labor
collective bargaining history (4) similarity of to its just share in the fruits of production and the right
employment status.

Duman / Labor I / Prof. Battad / Page 4

 of enterprises to reasonable returns to investments,
and to expansion and growth.
Section 14. The State shall protect working women
by providing safe and healthful working conditions,
taking into account their maternal functions, and such
facilities and opportunities that will enhance their
welfare and enable them to realize their full potential
in the service of the nation.
See also: 1935 Const., Art. XIV, Sec., 6; 1973
Const., Art. II, Sec. 9
1935 Constitution, Art. XIV, Sec. 6
Section 6. The State shall afford protection to labor,
especially to working women, and minors, and shall
regulate the relations between the landowner and
tenant, and between labor and capital in industry and
in agriculture. The State may provide for compulsory
arbitration.
1973 Const. Art. II, Sec. 9
Section 9. The State shall afford protection to labor,
promote full employment and equality in employment,
ensure equal work opportunities regardless of sex,
race, or creed, and regulate the relation between
workers and employers. The State shall assure the
rights of workers to self-organization, collective
bargaining, security of tenure, and just and humane
conditions of work. The State may provide for
compulsory arbitration.
c. Labor Code (LC) and Omnibus Rules Implementing
the Labor Code
d. New Civil Code of the Philippines (NCC), Arts. 19, 21,
1700-1701
Art. 19. Every person must, in the exercise of his
rights and in the performance of his duties, act with
justice, give everyone his due, and observe honesty
and good faith.
Art. 21. Any person who wilfully causes loss or injury
to another in a manner that is contrary to morals,
good customs or public policy shall compensate the
latter for the damage.
Art. 1700. The relations between capital and labor are
not merely contractual. They are so impressed with
public interest that labor contracts must yield to the
common good. Therefore, such contracts are subject
to the special laws on labor unions, collective
bargaining, strikes and lockouts, closed shop, wages,
working conditions, hours of labor and similar
subjects.
Art. 1701. Neither capital nor labor shall act
oppressively against the other, or impair the interest
or convenience of the public.
6. Sources of Law
a. Labor Code and Related Special Legislation
(Implementing Rules)
b. Contract Art. 1305-1306, New Civil Code
Art. 1305. A contract is a meeting of minds between
two persons whereby one binds himself, with respect
to the other, to give something or to render some
service. (1254a)
Art. 1306. The contracting parties may establish such
stipulations, clauses, terms and conditions as they
may deem convenient, provided they are not contrary
to law, morals, good customs, public order, or public
policy. (1255a)
c. Collective Bargaining Agreement
DOLE Phils. v. Pawis ng Makabayang Obrero, 395
SCRA 112 (2003)
Interpretation of the free meals provision in the CBA.
Is it after the employee has worked only after more
than three hours of work or those who have rendered
exactly three hours of overtime work?
The disputed provision of the CBA is clear and
unambiguous. The terms of the CBA is not
susceptible to any other interpretation. Hence the
literal meaning of free meals after three (3) hours of
overtime work shall prevail, which is simply that an
employee shall be entitled to a free meal if he has
rendered exactly, or no less than, three hours of
overtime work, not after more than or in excess
of three hours overtime work.
Found in the case: Management prerogative: The
exercise of management prerogative is not unlimited.
It is subject to the limitations found in law, a
collective bargaining agreement or the general
principles of fair play and justice. This situation
constitutes one of the limitations. The CBA is the
norm of conduct between the petitioner and private
respondent and compliance therewith is mandated
by the express policy of the law.
d. Past Practices
Davao Fruits Corporation v. Associated labor Union,
225 SCRA 562 (1993)
Issue: WON in the computation of the 13th month pay
given by employers to their employees under PD
851, payments for sick, vacation and maternity
leaves, premiums for work done rest days and
special holidays and pay for regular holidays may be
excluded in the computation and payment thereof,
regardless of long-standing company practice.
A company practice favorable to the employees
had indeed been established and the payments
made pursuant thereto, ripened into benefits
enjoyed by them. And any benefit and
supplement being enjoyed by the employees
cannot be reduced, diminished, discontinued
or eliminated by the employer, by virtue of Sec
10 of the Rules and Regulations Implementing
PD 851 and Art 100 of the Labor Code which
prohibit the diminution or elimination b the
employer of the employees existing benefits.
The considerable length of time the questioned items
had been included by petitioner indicates a unilateral
and voluntary act on its part, sufficient in itself to
negate any claim of mistake.
Samahang Manggagawa sa Top Form Manufacturing-
United Workers of the Phil. (SMTFM-UWP v. NLRC, 295
SCRA 171
(1998)
The case wherein the employer was charged as
having committed an unfair labor practice by
bargaining in bad faith and discriminating against in
Duman / Labor I / Prof. Battad / Page 5
 employees by promising at a collective bargaining
conference to implement any government-mandated
wage increases on an across-the-board basis.
Past promises which were written in the minutes of
the meeting. The proposal was never embodied in
the CBA, thus, the promise remained just that, a
promise, the implementation which cannot be validly
demanded under the law.
The law provides remedies to the petitioner union to
compel priv resp to incorporate this specific
economic proposal in the CBA, which they did not do.
The CBA is the law between the contracting parties
the collective bargaining representative and the
employer-company. Compliance with a CBA is
mandated by the expressed policy to give protection
to labor. In the same vein, CBA provision should be
construed liberally rather than narrowly and
technically, and the courts must place a practical and
realistic construction upon it, giving due
China Banking Corporation v. Borromeo, 440 SCRA 621
consideration to the context in which it is negotiated
and purpose which it is intended to serve. This is
founded on the dictum that a CBA is not an ordinary
contract but one impressed with public interest. It
goes without saying, however, that only provisions
embodied in the CBA should be so interpreted and
complied with.
No benefits or privileges previously enjoyed by
petitioner union and the other employees were
withdrawn as a result of the manner by which private
resp implemented the wage orders.
American Wire and Cable Daily rated Employees
Union American Wire and Cable co., Inc., 457 SCRA
684 (2005)
The company suddenly withdrew and denied certain
benefits and entitlements which the employees have
long enjoyed like service awards, 35% premium pay
of an employees basic pay for work rendered during
Holy Monday, Tuesday, Wednesday, December 23,
26, 27, 28, and 29, Christmas Party and Promotional
Increases.
It is critical that a determination must be first made
whether the benefits/entitlements are in the nature
of a bonus or not, and assuming they are so, whether
they are demandable and enforceable obligations.
Bonus: is an amount granted and paid to an
employee for his industry and loyalty which
contributed to the success of the employers
business and made possible the realization of profits.
It is an act of generosity granted by an enlightened
employer to spur the employee to greater efforts for
the success of the business and realization of bigger
profits. The granting of a bonus is a management
prerogative, something given in addition to what is
ordinarily received by or strictly due the recipient.
Thus, a bonus is not a demandable and enforceable
obligation, except when it is made part of the wage,
salary or compensation of the employee.
Issue: WON these bonuses can be considered part of
the wage or salary or compensation making them
enforceable obligations.
Held: No. For a bonus to be enforceable, it must have
been promised by the employer and expressly
agreed upon by the parties or it must have had a
fixed amount and had been a long and regular
practice on the part of the employer.
The benefits/entitlements in question were never
subjects of any express agreement between the
parties. They were never incorporated in the CBA. As
observed by the VA, the records reveal that these
benefits/entitlements have not been subjects of any
express agreement between the union and the
company, and have not yet been incorporated in the
CBA.
Downtrend was clear in the service award amount
and the parties venue were changed from paid
venues to one which was free of charge.
To be considered a regular practice, the
giving of the bonus should have been done
over a long period of time, and must be shown
to have been consistent and deliberate.
e. Company Policies
(2004)
The case of a manager who was consistently
promoted because of a highly satisfactory
performance which landed him at the AVP spot only
to find out that he has done irregularities in
approving several DAUD/BP in favor of one Maniwan.
The Banks SOP provides a restitution/forfeiture of
benefits provision.
It is well recognized that company policies and
regulations are, unless shown to be grossly
oppressive or contrary to law, generally binding, and
valid on the parties and must be complied with until
finally revised or amended unilaterally or preferably
through negotiation or by competent authority.
Moreover, management has the prerogative to
discipline its employees and to impose appropriate
penalties on erring workers pursuant to company
rules and regulations. With more reason should these
truisms apply to the respondent, who, by reason of
his position, was required to act judiciously and to
exercise his authority in harmony with company
policies.
Business enterprises have a prerogative to discipline
its employees and to impose appropriate penalties
on erring workers pursuant to company rules and
regulations which must be respected. The law, in
protecting the rights of labor, authorized neither
oppression nor self-destruction of an employer
company which itself is possessed of rights that must
be entitled to recognition and respect.
7. Classification
a. Labor Standards
b. Labor Relations
c. Welfare Legislation
II. LABOR CODE OF THE PHILIPPINES
A. Brief History
B. General Provisions
1. 1. Decree Title, Art. 1
ARTICLE 1. Name of Decree. - This Decree shall
be known as the "Labor Code of the Philippines".
2. Effectivity, Art. 2
ART. 2. Date of effectivity. - This Code shall take
effect six (6) months after its promulgation.
3. Policy Declaration, Art. 3
Duman / Labor I / Prof. Battad / Page 6
 ART. 3. Declaration of basic policy. - The State
shall afford protection to labor, promote full
employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the
relations between workers and employers. The
State shall assure the rights of workers to self-
organization, collective bargaining, security of
tenure, and just and humane conditions of work.

4. Construction in Favor of Labor, Art. 4

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.

Salinas Jr. v. NLRC, 319 SCRA 54 (1999)

2. Rule Making Power, Art. 5

ART. 5. Rules and regulations. - The Department

of Labor and other government agencies charged
with the administration and enforcement of this
Code or any of its parts shall promulgate the
necessary implementing rules and regulations.
Such rules and regulations shall become
effective fifteen (15) days after announcement of
their adoption in newspapers of general
circulation.

Kapisanan ng mga Manggagawang Pinagyakap v.

Reyes v. Court of Appeals, 409 SCRA 267 (2003)
NLRC, 152 SCRA 6 (1987)

3. Technical Rules Not Binding, Art. 221

G&M Philippines, Inc. v. Romil Cuambot, GR No. ART. 221. Technical rules not binding and prior resort
162308, Nov. 22, 2006 to amicable settlement. - In any proceeding before the
Commission or any of the Labor Arbiters, the rules of
evidence prevailing in courts of law or equity shall not
be controlling and it is the spirit and intention of this
Code that the Commission and its members and the
Labor Arbiters shall use every and all reasonable
means to ascertain the facts in each case speedily
Duman / Labor I / Prof. Battad / Page 7
 and objectively and without regard to technicalities of
law or procedure, all in the interest of due process. In
any proceeding before the Commission or any Labor
Arbiter, the parties may be represented by legal
counsel but it shall be the duty of the Chairman, any
Presiding Commissioner or Commissioner or any
Labor Arbiter to exercise complete control of the
proceedings at all stages.
Huntington Steel Products, Inc. v. NLRC, 442 SCRA
551 (2004)
4. Applicability, Art. 6, 276; Constitution, Art. IX-B, Sec. 2(1)
ART. 6. Applicability. - All rights and benefits granted
to workers under this Code shall, except as may
otherwise be provided herein, apply alike to all
workers, whether agricultural or non-agricultural. (As
amended by Presidential Decree No. 570-A,
November 1, 1974).
ART. 276. Government employees. - The terms and
conditions of employment of all government
employees, including employees of government-
owned and controlled corporations, shall be governed
by the Civil Service Law, rules and regulations. Their
salaries shall be standardized by the National
Assembly as provided for in the New Constitution.
However, there shall be no reduction of existing
wages, benefits and other terms and conditions of
employment being enjoyed by them at the time of the
adoption of this Code.
Constitution, Art. IX-B, Sec. 2(1)
Section 2. (1) The civil service embraces all
branches, subdivisions, instrumentalities, and
agencies of the Government, including government-
owned or controlled corporations with original
charters.
5. Enforcement and Sanctions Arts. 217 (a) (2), (3),
(4), (6); 128-129; 288-292; Consti., Art III, Secs. 11
and 16
ART. 217. Jurisdiction of the Labor Arbiters and the
Commission. - (a) Except as otherwise provided
under this Code, 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,
even in the absence of stenographic notes, the
following cases involving all workers, whether
agricultural or non-agricultural:
2. Termination disputes;
3. 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;
4. Claims for actual, moral, exemplary and
other forms of damages arising from the
employer-employee relations;
6. 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 exceeding five thousand
pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.
ART. 128. Visitorial and enforcement power. - (a) The
Secretary of Labor and Employment or his duly
authorized representatives, including labor regulation
officers, shall have access to employers records and
premises at any time of the day or night whenever
work is being undertaken therein, and the right to
copy therefrom, to question any employee and
investigate any fact, condition or matter which may be
necessary to determine violations or which may aid in
the enforcement of this Code and of any labor law,
wage order or rules and regulations issued pursuant
thereto.
(b) Notwithstanding the provisions of Articles 129 and
217 of this Code to the contrary, and in cases where
the relationship of employer-employee still exists, the
Secretary of Labor and Employment or his duly
authorized representatives shall have the power to
issue compliance orders to give effect to the labor
standards provisions of this Code and other labor
legislation based on the findings of labor employment
and enforcement officers or industrial safety
engineers made in the course of inspection. The
Secretary or his duly authorized representatives shall
issue writs of execution to the appropriate authority
for the enforcement of their orders, except in cases
where the employer contests the findings of the labor
employment and enforcement officer and raises
issues supported by documentary proofs which were
not considered in the course of inspection. (As
amended by Republic Act No. 7730, June 2, 1994).
An order issued by the duly authorized representative
of the Secretary of Labor and Employment under this
Article may be appealed to the latter. In case said
order involves a monetary award, an appeal by the
employer may be perfected only upon the posting of a
cash or surety bond issued by a reputable bonding
company duly accredited by the Secretary of Labor
Duman / Labor I / Prof. Battad / Page 8
and Employment in the amount equivalent to the
monetary award in the order appealed from. (As
amended by Republic Act No. 7730, June 2, 1994).
(c) The Secretary of Labor and Employment may
likewise order stoppage of work or suspension of
operations of any unit or department of an
establishment when non-compliance with the law or
implementing rules and regulations poses grave and
imminent danger to the health and safety of workers
in the workplace. Within twenty-four hours, a hearing
shall be conducted to determine whether an order for
the stoppage of work or suspension of operations
shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay
the employees concerned their salaries or wages
during the period of such stoppage of work or
suspension of operation.
(d) It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives
issued pursuant to the authority granted under this
Article, and no inferior court or entity shall issue
temporary or permanent injunction or restraining order
or otherwise assume jurisdiction over any case
involving the enforcement orders issued in
accordance with this Article.
(e) Any government employee found guilty of violation
of, or abuse of authority, under this Article shall, after
appropriate administrative investigation, be subject to
summary dismissal from the service.
(f) The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep
and maintain such employment records as may be
necessary in aid of his visitorial and enforcement
powers under this Code.
ART. 129. Recovery of wages, simple money claims
and other benefits. - Upon complaint of any interested
party, 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 any matter involving the recovery of
wages and other monetary claims and benefits,
including legal interest, owing to an employee or
person employed in domestic or household service or
househelper under this Code, arising from employer-
employee relations: Provided, That such complaint
does not include a claim for reinstatement: Provided
further, That the aggregate money claims of each
employee or househelper does not exceed Five
thousand pesos (P5,000.00). 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 Secretary of Labor
and Employment or the Regional Director 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
(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).
ART. 288. Penalties. - Except as otherwise provided
in this Code, or unless the acts complained of hinge
on a question of interpretation or implementation of
ambiguous provisions of an existing collective
bargaining agreement, any violation of the provisions
of this Code declared to be unlawful or penal in nature
shall be punished with a fine of not less than One
Thousand Pesos (P1,000.00) nor more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not
less than three months nor more than three years, or
both such fine and imprisonment at the discretion of
the court.
In addition to such penalty, any alien found guilty shall
be summarily deported upon completion of service of
sentence.
Any provision of law to the contrary notwithstanding,
any criminal offense punished in this Code, shall be
under the concurrent jurisdiction of the Municipal or
City Courts and the Courts of First Instance. (As
amended by Section 3, Batas Pambansa Bilang 70).
ART. 289. Who are liable when committed by other
than natural person. - If the offense is committed by a
corporation, trust, firm, partnership, association or any
other entity, the penalty shall be imposed upon the
guilty officer or officers of such corporation, trust, firm,
partnership, association or entity.
Title II
PRESCRIPTION OF OFFENSES AND CLAIMS
ART. 290. Offenses. - Offenses penalized under this
Code and the rules and regulations issued pursuant
thereto shall prescribe in three (3) years.
All unfair labor practice arising from Book V shall be
filed with the appropriate agency within one (1) year
from accrual of such unfair labor practice; otherwise,
they shall be forever barred.
ART. 291. Money claims. - All money claims arising
from employer-employee relations accruing during the
effectivity of this Code shall be filed within three (3)
years from the time the cause of action accrued;
otherwise they shall be forever barred.
Duman / Labor I / Prof. Battad / Page 9
 All money claims accruing prior to the effectivity of
this Code shall be filed with the appropriate entities
established under this Code within one (1) year from
the date of effectivity, and shall be processed or
determined in accordance with the implementing rules
and regulations of the Code; otherwise, they shall be
forever barred.
Workmens compensation claims accruing prior to the
effectivity of this Code and during the period from
November 1, 1974 up to December 31, 1974, shall be
filed with the appropriate regional offices of the
Department of Labor not later than March 31, 1975;
otherwise, they shall forever be barred. The claims
shall be processed and adjudicated in accordance
with the law and rules at the time their causes of
action accrued.
ART. 292. Institution of money claims. - Money claims
specified in the immediately preceding Article shall be
filed before the appropriate entity independently of the
criminal action that may be instituted in the proper
courts.
(c) "Employee" includes any individual
employed by an employer.
Art. 167. Definition of Terms.As used in this Title,
unless the context indicates otherwise:
(f) Employer means any person, natural or juridical,
employing the services of the employee.
(g) Employee means any person compulsorily
covered by the GSIS under Commonwealth Act
Numbered One hundred eighty-six, as amended,
including the members of the Armed Forces of the
Philippines, and any person employed as casual,
emergency, temporary, substitute or contractual, or
any person compulsorily covered by the SSS under
Republic Act Numbered Eleven hundred sixty-one, as
amended.
(h) Person means any individual, partnership, firm,
association, trust, corporation or legal representative
thereof.

Pending the final determination of the merits of money Art. 212.

claims filed with the appropriate entity, no civil action
arising from the same cause of action shall be filed
with any court. This provision shall not apply to
employees compensation case which shall be
processed and determined strictly in accordance with
the pertinent provisions of this Code.
ART. III, SEC. 11 AND 16, CONSTITUTION
Section 11. Free access to the courts and quasi-
judicial bodies and adequate legal assistance shall
not be denied to any person by reason of poverty.
Section 16. All persons shall have the right to a
speedy disposition of their cases before all judicial,
quasi-judicial, or administrative bodies.
(e) "Employer" includes any person acting in the
interest of an employer, directly or indirectly. The term
shall not include any labor organization or any of its
officers or agents except when acting as employer.
(f) "Employee" includes any person in the employ of
an employer. The term shall not be limited to the
employees of a particular employer, unless the Code
so explicitly states. It shall include any individual
whose work has ceased as a result of or in
connection with any current labor dispute or because
of any unfair labor practice if he has not obtained any
other substantially equivalent and regular
employment.
b. Factors/Tests

Ruga v. NLRC, 181 SCRA 437 (1990)

C. Work Relationship

1. Employer and Employee Relationship

a. Definition of Employer and Employee, Arts. 97 (a) (b)

(c), 167 (f)
(g) (h), 212 (e) (f)

ART. 97. Definitions. - As used in this Title:

(a) "Person" means an individual, partnership,

association, corporation, business trust, legal
representatives, or any organized group of
persons.

(b) "Employer" includes any person acting

directly or indirectly in the interest of an
employer in relation to an employee and shall
include the government and all its branches,
subdivisions and instrumentalities, all
government-owned or controlled corporations
and institutions, as well as non-profit private
institutions, or organizations.

Duman / Labor I / Prof. Battad / Page 10

 Perpetual Help Credit v. Faburada et al., 366
SCRA 693 (2001)

Angelina Francisco v. NLRC, et al., GR No.

170087, Aug. 31, 2006
Vicente Sy v. Court of Appeals, 398 SCRA 301
(2003)

c. Piercing the Corporate Veil

Pamplona Plantatin Co., Inc. v. Tinghil, 450 SCRA 421

(2005)
Chavez v. NLRC, 448 SCRA 478 (2005)

Duman / Labor I / Prof. Battad / Page 11


2. Independent Contractor and Labor-only Contractor, Art.
106-107, 109; DO No. 18-02, S 2002
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
between labor-only contracting and job contracting as
well as differentiations within these types of
contracting and determine who among the parties
involved shall be considered the employer for
purposes of this Code, to prevent any violation or
circumvention of any provision of this Code.
There is "labor-only" contracting where the person
supplying workers to an employer does not have
substantial capital or investment in the form of tools,
equipment, machineries, work premises, among
others, and the workers recruited and placed by such
person are performing activities which are directly
related to the principal business of such employer. In
such cases, the person or intermediary shall be
considered merely as an agent of the employer who
shall be responsible to the workers in the same
manner and extent as if the latter were directly
employed by him.
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.
DEPARTMENT ORDER NO. 18 - 02
(Series of 2002)
.
.
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED
.
.
By virtue of the power vested in the Secretary of
Labor and Employment under Articles 5 (Rule-
making) and 106 (Contractor or Subcontractor) of
the Labor Code of the Philippines, as amended,
the following regulations governing contracting
and subcontracting arrangements are hereby
issued:
Section 1. Guiding principles. - Contracting and
subcontracting arrangements are expressly
allowed by law and are subject to regulation for
the promotion of employment and the observance
of the rights of workers to just and humane
conditions of work, security of tenure, self-
organization, and collective bargaining. Labor-
only contracting as defined herein shall be
prohibited.
Section 2 . Coverage. - These Rules shall apply to
all parties of contracting and subcontracting
arrangements where employer-employee
relationship exists. Placement activities through
private recruitment and placement agencies as
governed by Articles 25 to 39 of the Labor Code
are not covered by these Rules.
Section 3. Trilateral Relationship in Contracting
Arrangements. - In legitimate contracting, there
exists a trilateral relationship under which there is
a contract for a specific job, work or service
between the principal and the contractor or
subcontractor, and a contract of employment
between the contractor or subcontractor and its
workers. Hence, there are three parties involved in
these arrangements, the principal which decides
to farm out a job or service to a contractor or
subcontractor, the contractor or subcontractor
which has the capacity to independently
undertake the performance of the job, work or
service, and the contractual workers engaged by
the contractor or subcontractor to accomplish the
job work or service.
Section 4. Definition of Basic Terms. - The
following terms as used in these Rules, shall
mean:
(a) "Contracting" or "subcontracting" refers to an
arrangement whereby a principal agrees to put
out or farm out with a contractor or subcontractor
the performance or completion of a specific job,
work or service within a definite or predetermined
Duman / Labor I / Prof. Battad / Page 12
period, regardless of whether such job, work or
service is to be performed or completed within or
outside the premises of the principal.
(b) "Contractor or subcontractor" refers to any
person or entity engaged in a legitimate
contracting or subcontracting arrangement.
(c) "Contractual employee" includes one
employed by a contractor or subcontractor to
perform or complete a job, work or service
pursuant to an arrangement between the latter
and a principal.
(d) "Principal" refers to any employer who puts
out or farms out a job, service or work to a
contractor or subcontractor.
Section 5. Prohibition against labor-only
contracting. - Labor-only contracting is hereby
declared prohibited. For this purpose, labor-only
contracting shall refer to an arrangement where
the contractor or subcontractor merely recruits,
supplies or places workers to perform a job, work
or service for a principal, and any of the following
elements are present:
(i) The contractor or subcontractor does not have
substantial capital or investment which relates to
the job, work or service to be performed and the
employees recruited, supplied or placed by such
contractor or subcontractor are performing
activities which are directly related to the main
business of the principal; or
(ii) the contractor does not exercise the right to
control over the performance of the work of the
contractual employee.
The foregoing provisions shall be without
prejudice to the application of Article 248 (C ) of
the Labor Code, as amended.
"Substantial capital or investment" refers to
capital stocks and subscribed capitalization in the
case of corporations, tools, equipment,
implements, machineries and work premises,
actually and directly used by the contractor or
subcontractor in the performance or completion
of the job, work or service contracted out.
The "right to control" shall refer to the right
reserved to the person for whom the services of
the contractual workers are performed, to
determine not only the end to be achieved, but
also the manner and means to be used in
reaching that end.
Section 6. Prohibitions. - Notwithstanding Section
5 of these Rules, the following are hereby
declared prohibited for being contrary to law or
public policy:
(a) Contracting out of a job, work or service when
not done in good faith and not justified by the
exigencies of the business and the same results
in the termination of regular employees and
reduction of work hours or reduction or splitting
of the bargaining unit;
(b) Contracting out of work with a "cabo" as
defined in Section 1 (ii), Rule I, Book V of these
Rules. "Cabo" refers to a person or group of
persons or to a labor group which, in the guise of
a labor organization, supplies workers to an
employer, with or without any monetary or other
consideration whether in the capacity of an agent
of the employer or as an ostensible independent
contractor;
(c) Taking undue advantage of the economic
situation or lack of bargaining strength of the
contractual employee, or undermining his
security of tenure or basic rights, or
circumventing the provisions of regular
employment, in any of the following instances:
(i) In addition to his assigned functions, requiring
the contractual employee to perform functions
which are currently being performed by the
regular employees of the principal or of the
contractor or subcontractor;
(ii) Requiring him to sign, as a precondition to
employment or continued employment, an
antedated resignation letter; a blank payroll; a
waiver of labor standards including minimum
wages and social or welfare benefits; or a
quitclaim releasing the principal, contractor or
subcontractor from any liability as to payment of
future claims; and
(iii) Requiring him to sign a contract fixing the
period of employment to a term shorter than the
term of the contract between the principal and the
contractor or subcontractor, unless the latter
contract is divisible into phases for which
substantially different skills are required and this
is made known to the employee at the time of
engagement;
(d) Contracting out of a job, work or service
through an in-house agency which refers to a
contractor or subcontractor engaged in the
supply of labor which is owned, managed or
controlled by the principal and which operates
solely for the principal;
(e) Contracting out of a job, work or service
directly related to the business or operation of the
principal by reason of a strike or lockout whether
actual or imminent;
(f) Contracting out of a job, work or service being
performed by union members when such will
interfere with, restrain or coerce employees in the
exercise of their rights to self organization as
provided in Art. 248 (c) of the Labor Code, as
amended.
Section 7. Existence of an employer-employee
relationship. - The contractor or subcontractor
shall be considered the employer of the
contractual employee for purposes of enforcing
the provisions of the Labor Code and other social
legislation. The principal, however, shall be
solidarily liable with the contractor in the event of
any violation of any provision of the Labor Code,
including the failure to pay wages.
Duman / Labor I / Prof. Battad / Page 13
The principal shall be deemed the employer of the
contractual employee in any of the following
cases as declared by a competent authority:
(a) where there is labor-only contracting; or
(b) where the contracting arrangement falls within
the prohibitions provided in Section 6
(Prohibitions) hereof.
Section 8. Rights of Contractual Employees. -
Consistent with Section 7 of these Rules, the
contractual employee shall be entitled to all the
rights and privileges due a regular employee as
provided for in the Labor Code, as amended, to
include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive
leave, rest days, overtime pay, holiday pay, 13th
month pay and separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and
peaceful concerted action; and
(e) Security of tenure.
Section 9. Contract between contractor or
subcontractor and contractual employee. -
Notwithstanding oral or written stipulations to the
contrary, the contract between the contractor or
subcontractor and the contractual employee,
which shall be in writing, shall include the
following terms and conditions:
(a) The specific description of the job, work or
service to be performed by the contractual
employee;
(b) The place of work and terms and conditions of
employment, including a statement of the wage
rate applicable to the individual contractual
employee; and
(c) The term or duration of employment, which
shall be coextensive with the contract of the
principal and subcontractor, or with the specific
phase for which the contractual employee is
engaged, as the case may be.
The contractor or subcontractor shall inform the
contractual employee of the foregoing terms and
conditions on or before the first day of his
employment.
Section 10. Effect of Termination of Contractual
Employment. - In cases of termination of
employment prior to the expiration of the contract
between the principal and the contractor or
subcontractor, the right of the contractual
employee to separation pay or other related
benefits shall be governed by the applicable laws
and jurisprudence on termination of employment.
Where the termination results from the expiration
of the contract between the principal and the
contractor or subcontractor, or from the
completion of the phase of the job, work or
service for which the contractual employee is
engaged, the latter shall not be entitled to
separation pay. However, this shall be without
prejudice to completion bonuses or other
emoluments, including retirement pay as may be
provided by law or in the contract between the
principal and the contractor or subcontractor.
Section 11. Registration of Contractors or
Subcontractors. - Consistent with the authority of
the Secretary of Labor and Employment to restrict
or prohibit the contracting out of labor through
appropriate regulations, a registration system to
govern contracting arrangements and to be
implemented by the Regional Offices is hereby
established.
The registration of contractors and
subcontractors shall be necessary for purposes
of establishing an effective labor market
information and monitoring.
Failure to register shall give rise to the
presumption that the contractor is engaged in
labor-only contracting.
Section 12. Requirements for registration. - A
contractor or subcontractor shall be listed in the
registry of contractors and subcontractors upon
completion of an application form to be provided
by the DOLE. The applicant contractor or
subcontractor shall provide in the application
form the following information:
(a) The name and business address of the
applicant and the area or areas where it seeks to
operate;
(b) The names and addresses of officers, if the
applicant is a corporation, partnership,
cooperative or union;
(c) The nature of the applicant's business and the
industry or industries where the applicant seeks
to operate;
(d) The number of regular workers; the list of
clients, if any; the number of personnel assigned
to each client, if any and the services provided to
the client;
(e) The description of the phases of the contract
and the number of employees covered in each
phase, where appropriate; and
(f) A copy of audited financial statements if the
applicant is a corporation, partnership,
cooperative or a union, or copy of the latest ITR if
the applicant is a sole proprietorship.
The application shall be supported by:
(a) A certified copy of a certificate of registration
of firm or business name from the Securities and
Exchange Commission (SEC), Department of
Trade and Industry (DTI), Cooperative
Development Authority (CDA), or from the DOLE if
the applicant is a union; and
(b) A certified copy of the license or business
permit issued by the local government unit or
units where the contractor or subcontractor
operates.
Duman / Labor I / Prof. Battad / Page 14
The application shall be verified and shall include
an undertaking that the contractor or
subcontractor shall abide by all applicable labor
laws and regulations.
Section 13. Filing and processing of applications.
- The application and its supporting documents
shall be filed in triplicate in the Regional Offices
where the applicant principally operates. No
application for registration shall be accepted
unless all the foregoing requirements are
complied with. The contractor or subcontractor
shall be deemed registered upon payment of a
registration fee of P100.00 to the Regional Office.
Where all the supporting documents have been
submitted, the Regional Office shall deny or
approve the application within seven (7) working
days after its filing.
Upon registration, the Regional Office shall return
one set of the duly-stamped application
documents to the applicant, retain one set for its
file, and transmit the remaining set to the Bureau
of Local Employment. The Bureau shall devise the
necessary forms for the expeditious processing
of all applications for registration.
Section 14. Duty to produce copy of contract
between the principal and the contractor or
subcontractor. - The principal or the contractor or
subcontractor shall be under an obligation to
produce a copy of the contract between the
principal and the contractor in the ordinary
course of inspection. The contractor shall
likewise be under an obligation to produce a copy
of the contract of employment of the contractual
worker when directed to do so by the Regional
Director or his authorized representative.
A copy of the contract between the contractual
employee and the contractor or subcontractor
shall be furnished the certified bargaining agent,
if there is any.
Section 15. Annual Reporting of Registered
Contractors. - The contractor or subcontractor
shall submit in triplicate its annual report using a
prescribed form to the appropriate Regional
Office not later than the 15th of January of the
following year. The report shall include:
(a) A list of contracts entered with the principal
during the subject reporting period;
(b) The number of workers covered by each
contract with the principal;
(c) A sworn undertaking that the benefits from the
Social Security System (SSS), the Home
Development Mutual Fund (HDMF), PhilHealth,
Employees Compensation Commission (ECC),
and remittances to the Bureau of Internal Revenue
(BIR) due its contractual employees have been
made during the subject reporting period.
The Regional Office shall return one set of the
duly-stamped report to the contractor or
subcontractor, retain one set for its file, and
transmit the remaining set to the Bureau of Local
Employment within five (5) days from receipt
thereof.
Section 16. Delisting of contractors or
subcontractors. - Subject to due process, the
Regional Director shall cancel the registration of
contractors or subcontractors based on any of
the following grounds:
(a) Non-submission of contracts between the
principal and the contractor or subcontractor
when required to do so;
(b) Non-submission of annual report;
(c) Findings through arbitration that the
contractor or subcontractor has engaged in labor-
only contracting and the prohibited activities as
provided in Section 6 (Prohibitions) hereof; and
(d) Non-compliance with labor standards and
working conditions.
Section 17. Renewal of registration of contractors
or subcontractors. - All registered contractors or
subcontractors may apply for renewal of
registration every three years. For this purpose,
the Tripartite Industrial Peace Council (TIPC) as
created under Executive Order No. 49, shall serve
as the oversight committee to verify and monitor
the following:
(a) Engaging in allowable contracting activities;
and
(b) Compliance with administrative reporting
requirements.
Section 18. Enforcement of Labor Standards and
Working Conditions. - Consistent with Article 128
(Visitorial and Enforcement Power) of the Labor
Code, as amended, the Regional Director through
his duly authorized representatives, including
labor regulation officers shall have the authority
to conduct routine inspection of establishments
engaged in contracting or subcontracting and
shall have access to employer's records and
premises at any time of the day or night whenever
work is being undertaken therein, and the right to
copy therefrom, to question any employee and
investigate any fact, condition or matter which
may be necessary to determine violations or
which may aid in the enforcement of the Labor
Code and of any labor law, wage order, or rules
and regulations issued pursuant thereto.
The findings of the duly authorized representative
shall be referred to the Regional Director for
appropriate action as provided for in Article 128,
and shall be furnished the collective bargaining
agent, if any.
Based on the visitorial and enforcement power of
the Secretary of Labor and Employment in Article
128 (a), (b), (c) and (d), the Regional Director shall
issue compliance orders to give effect to the labor
Duman / Labor I / Prof. Battad / Page 15
 standards provisions of the Labor Code, other
labor legislation and these guidelines.

Section 19. Solidary liability. - The principal shall

be deemed as the direct employer of the LIIKHA-PMPB v. Burlinggame corp., GR No.
contractual employees and therefore, solidarily 162833, June 15, 2007
liable with the contractor or subcontractor for
whatever monetary claims the contractual
employees may have against the former in the
case of violations as provided for in Sections 5
(Labor-Only contracting), 6 (Prohibitions), 8
(Rights of Contractual Employees) and 16
(Delisting) of these Rules. In addition, the
principal shall also be solidarily liable in case the
contract between the principal and contractor or
subcontractor is preterminated for reasons not
attributable to the fault of the contractor or
subcontractor.

Section 20. Supersession. - All rules and

regulations issued by the Secretary of Labor and
Employment inconsistent with the provisions of
this Rule are hereby superseded. Contracting or
subcontracting arrangements in the construction
industry, under the licensing coverage of the
PCAB and shall not include shipbuilding and ship b. Desirable Unnecessary
repairing works, however, shall continue to be
governed by Department Order No. 19, series of Coca-Cola Bottlers Phil., Inc. v. NLRC, 307 SCRA
1993. 131 (1999)

Section 21. Effectivity. - This Order shall be

effective fifteen (15) days after completion of its
publication in two (2) newspapers of general
circulation.

.
Manila, Philippines, 21 February 2002.

a. Requirements for Independent Contractor

San Miguel Corp v. NLRC & Maliksi, GR No.

147566, Dec. 6, 2006

c. Labor Contractor Only; Requisites and Prohibition

Manila Water Co., Inc. v. Pena, 434 SCRA 52

(2004)

Duman / Labor I / Prof. Battad / Page 16

 D. Pre-employment, Recruitment and Placement
d. Effect of Finding of Workers

San Miguel Corporation v. Abella, 461 SCRA 392

Reference: Arts. 12-42; POEA Rules; Book 1, Rules III-
VIII, Omnibus Rules; Migrant Workers and Overseas
(2005) Filipinos Act of 1995 (RA 8042); Anti-Trafficking in
Persons Act 2003 (RA 9208) and Rules and
Regulations Implementing RA 9208

1. Pre-employment Policy Statement of

Objectives, Art. 12 (a) (f);
Const., Art. II, Sec. 9; RA 8042, Sec. 2, 4 & 5.

ART. 12. Statement of objectives. - It is the policy of

the State:

a) To promote and maintain a state of full

employment through improved manpower
training, allocation and utilization;

f) To strengthen the network of public

employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;

1987 Constitution, Art II, Sec. 9

The State shall promote a just and dynamic

social order that will ensure the prosperity
and independence of the nation and free the
people from poverty through policies that
provide adequate social services, promote
full employment, a rising standard of living,
3. Liability of Indirect Employer and an improved quality of life for all.

Lanzaderas v. Amethyst Security & General Services,

REPUBLIC ACT NO. 8042
SEC. 2. DECLARATION OF POLICIES--
Inc., supra
(a) In the pursuit of an independent foreign
policy and while considering national
sovereignty, territorial integrity, national
interest and the right to self-determination
paramount in its relations with other states,
the State shall, at all times, uphold the
dignity of its citizens whether in country or

Duman / Labor I / Prof. Battad / Page 17

overseas, in general, and Filipino migrant
workers, in particular.
(b) The State shall afford full protection to
labor, local and overseas, organized and
unorganized, and promote full employment
and equality of employment opportunities for
all. Towards this end, the State shall provide
adequate and timely social, economic and
legal services to Filipino migrant workers.
(c) While recognizing the significant
contribution of Filipino migrant workers to the
national economy through their foreign
exchange remittances, the State does not
promote overseas employment as a means
to sustain economic growth and achieve
national development. The existence of the
overseas employment program rests solely
on the assurance that the dignity and
fundamental human rights and freedoms of
the Filipino citizens shall not, at any time, be
compromised or violated. The State,
therefore, shall continuously create local
employment opportunities and promote the
equitable distribution of wealth and the
benefits of development.
(d) The State affirms the fundamental
equality before the law of women and men
and the significant role of women in nation-
building. Recognizing the contribution of
overseas migrant women workers and their
particular vulnerabilities, the State shall
apply gender sensitive criteria in the
formulation and implementation of policies
and programs affecting migrant workers and
the composition of bodies tasked for the
welfare of migrant workers.
(e) Free access to the courts and quasi-
judicial bodies and adequate legal
assistance shall not be denied to any
persons by reason of poverty. In this regard,
it is imperative that an effective mechanism
be instituted to ensure that the rights and
interest of distressed overseas Filipinos, in
general, and Filipino migrant workers, in
particular, documented or undocumented,
are adequately protected and safeguarded.
(f) The right of Filipino migrant workers and
all overseas Filipinos to participate in the
democratic decision-making processes of
the State and to be represented in
institutions relevant to overseas employment
is recognized and guaranteed.
(g) The State recognizes that the ultimate
protection to all migrant workers is the
possession of skills. Pursuant to this and as
soon as practicable, the government shall
deploy and/or allow the deployment only to
skilled Filipino workers.
(h) Non-governmental organizations, duly
recognized as legitimate, are partners of the
State in the protection of Filipino migrant
workers and in the promotion of their
welfare, the State shall cooperate with them
in a spirit of trust and mutual respect.
(I) Government fees and other administrative
costs of recruitment, introduction, placement
and assistance to migrant workers
shall be rendered free without prejudice to
the provision of Section 36 hereof.
Nonetheless, the deployment of Filipino
overseas workers, whether land-based or
sea-based by local service contractors and
manning agencies employing them shall be
encouraged. Appropriate incentives may be
extended to them.
I. DEPLOYMENT
SEC. 4. Deployment of Migrant Workers -
The State shall deploy overseas Filipino
workers only in countries where the rights of
Filipino migrant workers are protected. The
government recognizes any of the following
as guarantee on the part of the receiving
country for the protection and the rights of
overseas Filipino workers:
(a) It has existing labor and social laws
protecting the rights of migrant workers;
(b) It is a signatory to multilateral
conventions, declaration or resolutions
relating to the protection of migrant workers;
(c) It has concluded a bilateral agreement or
arrangement with the government protecting
the rights of overseas Filipino workers; and
(d) It is taking positive, concrete measures to
protect the rights of migrant workers.
SEC. 5. TERMINATION OR BAN ON
DEPLOYMENT - Notwithstanding the
provisions of Section 4 hereof, the
government, in pursuit of the national
interest or when public welfare so requires,
may, at any time, terminate or impose a ban
on the deployment of migrant workers.
2. Private Sector Agencies and Entities
a. Parties
1) Worker Art. 13 (a)
ART. 13. Definitions. - (a) "Worker" means
any member of the labor force, whether employed or
unemployed.
2) Private Employment Agency Arts. 13 (c) (d), 12
(f), 14 (a)
ART. 13. (c) "Private fee-charging
employment agency" means any person or
entity engaged in recruitment and placement
of workers for a fee which is charged,
directly or indirectly, from the workers or
employers or both.
(d) "License" means a document issued by
the Department of Labor authorizing a
person or entity to operate a private
employment agency.
ART. 12. Statement of objectives. - It is the
policy of the State:
Duman / Labor I / Prof. Battad / Page 18
 f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and
authority:
(a) To organize and establish new
employment offices in addition to the existing
employment offices under the Department of
Labor as the need arises;
3) Private Recruitment Entity Arts. 13 (e) (f), 12 (f),
14 (a)
ART. 13. (e) "Private recruitment entity"
means any person or association engaged in
the recruitment and placement of workers,
locally or overseas, without charging, directly
or indirectly, any fee from the workers or
employers.
(f) "Authority" means a document issued by
the Department of Labor authorizing a
person or association to engage in
recruitment and placement activities as a
private recruitment entity.
ART. 12. Statement of objectives. - It is the
policy of the State:
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and
authority:
(a) To organize and establish new
employment offices in addition to the existing
employment offices under the Department of
Labor as the need arises;
b. Recruitment and Placement
1) Local Employment, Art. 13 (b)
(b) "Recruitment and placement" refers to
any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring
workers, and includes referrals, contract
services, promising or advertising for
employment, locally or abroad, whether for
profit or not: Provided, That any person or
entity which, in any manner, offers or
promises for a fee, employment to two or
more persons shall be deemed engaged in
recruitment and placement.
2) Overseas Employment, Sec. 6, RA 8042
Sec. 6. DEFINITIONS. - For purposes of this
Act, illegal recruitment shall mean 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 contemplated under
Article 13(f) of Presidential Decree No. 442,
as amended, otherwise known as the Labor
Code of the Philippines. Provided, that such
non-license or non-holder, who, in any
manner, offers or promises for a fee
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;
(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;
Duman / Labor I / Prof. Battad / Page 19
 (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 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.
Illegal recruitment is deemed committed by a
syndicate carried out by a group of three (3)
or more persons conspiring or confederating
with one another. It is deemed committed in
large scale if 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.
c. Allowed and Protected Entities
1) Allowed Private Agencies and Entities, Arts. 16,
18, 25, 12 (f)
d.
ART. 16. Private recruitment. - Except as
provided in Chapter II of this Title, no person
or entity other than the public employment
offices, shall engage in the recruitment and
1)
placement of workers.
ART. 18. Ban on direct-hiring. - No employer
may hire a Filipino worker for overseas
employment except through the Boards and
entities authorized by the Secretary of Labor.
Direct-hiring by members of the diplomatic
corps, international organizations and such
other employers as may be allowed by the
Secretary of Labor is exempted from this
provision.
ART. 25. Private sector participation in the
recruitment and placement of workers. -
Pursuant to national development objectives
and in order to harness and maximize the
use of private sector resources and initiative
in the development and implementation of a
comprehensive employment program, the
private employment sector shall participate
in the recruitment and placement of workers,
locally and overseas, under such guidelines,
rules and regulations as may be issued by
the Secretary of Labor.
ART. 12. Statement of objectives. - It is the
policy of the State:
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers,
locally and overseas, to serve national
development objectives;
2) Prohibited Business Agencies and Entities, Arts.
16, 18, 25, 26
ART. 16. Private recruitment. - Except as provided in
Chapter II of this Title, no person or entity other than
the public employment offices, shall engage in the
recruitment and placement of workers.
ART. 18. Ban on direct-hiring. - No employer may hire
a Filipino worker for overseas employment except
through the Boards and entities authorized by the
Secretary of Labor. Direct-hiring by members of the
diplomatic corps, international organizations and such
other employers as may be allowed by the Secretary
of Labor is exempted from this provision.
ART. 25. Private sector participation in the recruitment
and placement of workers. - Pursuant to national
development objectives and in order to harness and
maximize the use of private sector resources and
initiative in the development and implementation of a
comprehensive employment program, the private
employment sector shall participate in the recruitment
and placement of workers, locally and overseas,
under such guidelines, rules and regulations as may
be issued by the Secretary of Labor.
ART. 26. Travel agencies prohibited to recruit. - Travel
agencies and sales agencies of airline companies are
prohibited from engaging in the business of
recruitment and placement of workers for overseas
employment whether for profit or not.
Government Techniques of Regulation Private
Recruitment
Licensing, Arts. 27, 28, 29, 30, 31, POEA rules and
Regulations, Book II, Sec. 1 and Book II, Rule II
ART. 27. Citizenship requirement. - Only
Filipino citizens or corporations, partnerships
or entities at least seventy-five percent
(75%) of the authorized and voting capital
stock of which is owned and controlled by
Filipino citizens shall be permitted to
participate in the recruitment and placement
of workers, locally or overseas.
ART. 28. Capitalization. - All applicants for
authority to hire or renewal of license to
recruit are required to have such substantial
Duman / Labor I / Prof. Battad / Page 20
 capitalization as determined by the Secretary
of Labor.
ART. 29. Non-transferability of license or
authority. - No license or authority shall be
used directly or indirectly by any person
other than the one in whose favor it was
issued or at any place other than that stated
in the license or authority be transferred,
conveyed or assigned to any other person or
entity. Any transfer of business address,
appointment or designation of any agent or
representative including the establishment of
additional offices anywhere shall be subject
to the prior approval of the Department of
Labor.
ART. 30. Registration fees. - The Secretary
of Labor shall promulgate a schedule of fees
for the registration of all applicants for
license or authority.
ART. 31. Bonds. - All applicants for license or
authority shall post such cash and surety
bonds as determined by the Secretary of
Labor to guarantee compliance with
prescribed recruitment procedures, rules and
regulations, and terms and conditions of
employment as may be appropriate.
POEA Rules, Book II,
LICENSING AND REGULATION
RULE I
PARTICIPATION OF THE PRIVATE SECTOR IN THE
OVERSEAS EMPLOYMENT PROGRAM
Section 1. Qualifications. Only those who
possess the following qualifications may be
permitted to engage in the business of
recruitment and placement of Filipino
workers:
a. Filipino citizens, partnerships or
corporations at least seventy five percent
(75%) of the authorized capital stock of
which is owned and controlled by Filipino
citizens;
b. A minimum capitalization of Two Million
Pesos (P2,000,000.00) in case of a single
proprietorship or partnership and a minimum
paid-up capital of Two Million Pesos
(P2,000,000.00) in case of a corporation;
Provided that those with existing licenses
shall, within four years from effectivity
hereof, increase their capitalization or paid
up capital, as the case may be, to Two
Million Pesos (P2,000,000.00) at the rate of
Two Hundred Fifty Thousand Pesos
(P250,000.00) every year.
c. Those not otherwise disqualified by law or
other government regulations to engage in
the recruitment and placement of workers for
overseas employment.
RULE II
ISSUANCE OF LICENSE
Section 1. Requirements for Issuance of
License. - Every applicant for license to
operate a private employment agency or
manning agency shall submit a written
application together with the following
requirements:
a. A certified copy of the Articles of
Incorporation or of Partnership duly
registered with the Securities and Exchange
Commission (SEC), in the case of
corporation or partnership or Certificate of
Registration of firm or business name with
the Bureau of Domestic Trade (BDT) in the
case of a single proprietorship;
b. Proof of financial capacity: In the case of
a single proprietorship or partnership,
verified income tax returns for the past two
(2) years and a bank certificate of a cash
deposit of P250,000.00, provided that the
applicant should submit an authority to
examine such bank deposit.
In the case of a newly organized corporation,
submission of a bank certificate of a cash
deposit of at least P250,000.00 with authority
to examine the same. For an existing
corporation, submission of a verified financial
statement, corporate tax returns for the past
two (2) years and bank certification of a cash
deposit of at least P250,000.00 with the
corresponding authority to examine such
deposit.
c. Escrow agreement in the amount of
P200,000.00 with an accredited reputable
banking corporation to primarily answer for
valid and legal claims of recruited workers as
a result of recruitment violations or money
claims;
d. Clearance of all members of the Board of
Directors, partner, or proprietor of the
applicant agency from the National Bureau
of Investigation (NBI) and other government
agencies as the need may require, Fiscals
clearance in case of persons with criminal
cases; provided that where the member or
partner concerned is a foreigner, clearance
from his country of origin shall be
acceptable;
e. Proof of marketing capability;
For land-based applicants:
An applicant with an actual principal/foreign
employer to be serviced, shall at the time of
application submit the following documents
for evaluation:
Duman / Labor I / Prof. Battad / Page 21
(1) A duly executed Special Power of
Attorney authenticated by the Philippine
Embassy/Consulate or Labor Attache in the
place where the principal/employers hold
their office; or
(2) A concluded service/recruitment
agreement authenticated by the Philippine
Embassy/Consulate, or Labor Attache in the
place where the project/job site is located;
(3) An authenticated manpower mobilization
request or visa approval of not less than fifty
(50) workers for deployment within a period
not exceeding six (6) months from issuance
of approved license;
An applicant who, at the time of application
is unable to present a foreign
principal/employer shall, upon compliance
with all other licensing requirements as
herein provided, be issued a provisional
license, subject to submission of a verified
undertaking to deploy at least fifty (50)
workers, exclusive of direct hired, within a
period not exceeding six (6) months from
date of issuance of provisional license. It is
understood that failure to comply with this
undertaking shall result in the automatic
revocation of the provisional license.
For manning applicants:
(1) A duly executed Special Power of
Attorney authenticated by the Philippine
Embassy/Consulate or Labor Attache in
place where the vessel
owners/operators/manager hold their
principal office; or
(2) A duly concluded manning agreement
authenticated by the Philippine Embassy,
Consulate, or Labor Attache in the place
where the vessel/owners/operators/
manager hold their principal office;
(3) A manpower mobilization request of not
less than fifty (50) seafarers for deployment
within a period not exceeding six (6) months
from issuance of approved license.
f. A verified undertaking stating that the
applicant:
(1) Shall select only medically and
technically qualified recruits;
(2) Shall assume full and complete
responsibility for all claims and liabilities
which may arise in connection with the use
of license;
(3) Shall assume joint and solidary liability
with the employer for all claims and liabilities
which may arise in connection with the
implementation of the contract, including but
not limited to payment of wages, death and
disability compensation and repatriation;
(4) Shall guarantee compliance with the
existing labor and social legislations of the
Philippines and of the country of employment
of recruited workers; and
(5) Shall assume full and complete
responsibility for all acts of its officials,
employees and representatives done in
connection with recruitment and placement;
g. List of all officials and personnel involved
in the recruitment and placement, together
with their appointment, bio-data and two (2)
copies of their passport-size pictures.
h. Copy of contract of lease or proof of
building ownership together with office
address.
Section 2. Action on the Application. - Within
thirty (30) calendar days from receipt of
application or requirements including proof of
payment of a non-refundable filing fee of
P5,000.00, the Administration shall evaluate
pertinent documents of the applicant, inspect
the offices and equipment and recommend
to the Secretary the approval or denial of the
application.
Section 3. Issuance of License. - The
Administration shall recommend to the
Secretary issuance of the corresponding
license upon due evaluation and compliance
with licensing requirements and operational
standards.
Section 4. Payment of Fees and Posting of
Bonds. - Upon approval of the application,
the applicant shall pay a license fee of
P30,000.00. It shall also post a cash bond of
P100,000.00 and a surety bond of
P50,000.00 from a bonding company
acceptable to the Administration and duly
accredited by the Insurance Commission.
The bonds shall answer for all valid and legal
claims arising from violations of the
conditions for the grant and use of the
license, and/or accreditation and contracts of
employment. The bonds shall likewise
guarantee compliance with the provisions of
the Code and its implementing rules and
regulations relating to recruitment and
placement, the Rules of the Administration
and relevant issuances of the Department
and all liabilities which the Administration
may impose. The surety bonds shall include
the condition that notice to the principal is
notice to the surety and that any judgment
against the principal in connection with
matters falling under POEAs jurisdiction
shall be binding and conclusive on the
surety. The surety bonds shall be co-
terminus with the validity period of the
license.
Section 5. Validity of License. - Every
license shall be valid for at least two (2)
years from the date of issuance unless
Duman / Labor I / Prof. Battad / Page 22
sooner cancelled or revoked by the
Secretary or suspended by the
Administration for violation of the Code and
its rules and relevant decrees, orders and
issuances and other rules and regulations of
the Department. Such license shall be valid
only at the place/s stated therein and when
used by the licensed person, partnership or
corporation.
Section 6. Non-Transferability of License. -
No license shall be transferred, conveyed or
assigned to any person, partnership or
corporation. It shall not be used directly or
indirectly by any person, partnership or
corporation other than the one in whose
favor it was issued. Violation shall cause
automatic revocation of license.
In case of death of the sole proprietor, and in
order to prevent disruption of operation and
so as not to prejudice the interest of
legitimate heirs, the licensed single
proprietorship may be allowed to continue
only for the purpose of winding up its
business operation.
Section 7. Change of
Ownership/Relationship of Single
Proprietorship or Partnership. - Transfer or
change of ownership of a single
proprietorship licensed to engage in
overseas employment shall cause the
automatic revocation of the license. The
new owner shall be required to apply for a
license in accordance with these Rules.
A change in the relationship of the partners
in a partnership duly licensed to engage in
overseas employment which materially
interrupts the course of the business or
results in the actual dissolution of the
partnership shall likewise cause the
automatic revocation of the license.
Section 8. Upgrading of Single
Proprietorship or Partnerships. - License
holders which are single proprietorships or
partnerships may, subject to the guidelines
of the Administration, convert into
corporation for purposes of upgrading or
raising their capabilities to respond
adequately to developments/changes in the
international labor market and to enable
them to better comply with their
responsibilities arising from the recruitment
and deployment of workers overseas.
The approval of merger, consolidation or
upgrading shall automatically revoke or
cancel the licenses of the single
proprietorships, partnerships or corporations
so merged, consolidated or upgraded.
Section 9. Change of Directors of
Corporation. - Every change in the
composition of the Board of Directors of a
corporation licensed to participate in
overseas employment shall be registered
with the Administration within thirty (30)
calendar days from the date the change was
decided or approved. The corporation shall
be required to submit to the Administration
the Minutes of Proceedings duly certified by
the SEC, the bio-data and clearances of the
new members of the Board from the
government agencies identified in Section 1
(e) of this Rule.
Section 10. Change of Other Officers and
Personnel. - Every change or termination of
appointment of officers, representatives and
personnel shall be registered with the
Administration within thirty (30) calendar
days from the date of such change.
The Administration reserves the right to deny
the appointment of officers and employees
who were directly involved in recruitment
irregularities.
Section 11. Appointment of
Representatives. - Every appointment of
representatives or agents of licensed agency
shall be subject to prior approval or authority
of the Administration.
The approval may be issued upon
submission of or compliance with the
following requirements:
a. Proposed appointment or special power of
attorney;
b. Clearances of the proposed
representative or agent from NBI;
c. A sworn or verified statement by the
designating or appointing person or
company assuming full responsibility for all
acts of the agent or representative done in
connection with the recruitment and
placement of workers;
Section 12. Publication of Change of
Directors/Other Officers and Personnel/
Revocation or Amendment of Appointment
of Representatives. - In addition to the
requirement of registration with and
submission to the Administration, every
change in the membership of the Board of
Directors, resignation/termination of other
officers and personnel, revocation or
amendment of appointment of
representatives shall be published at least
once in a newspaper of general circulation,
in order to bind third parties. Proof of such
publication shall be submitted to the
Administration
Section 13. Transfer of Business Address
and Studio. - Any transfer of business
address shall be effected only with prior
authority or approval of the Administration.
The approval shall be issued only upon
formal notice of the intention to transfer with
the following attachments:
Duman / Labor I / Prof. Battad / Page 23
a. Copy of the companys notice to the BDT
or the SEC on the transfer of business
address;
b. In the case of a corporation, a Board
Resolution duly registered with the SEC
authorizing the transfer of business address;
c. In the case of a single proprietorship, a
copy of the BDTs acknowledgment of the
notice to transfer; and
d. Copy of the contract of lease or proof of
building ownership.
The new office shall be subject to the normal
ocular inspection procedures by duly
authorized representatives of the
Administration.
A notice to the public of the new address
shall be published in a newspaper of general
circulation.
Section 14. Establishment of Executive
Office. - The establishment of an executive
office outside of the registered address shall
be effected only with prior approval or
authority of the Administration. The approval
may be issued upon submission of an
affidavit of undertaking to the effect that no
recruitment activity whatsoever shall be
conducted thereat and that the agency has a
valid contract of lease or building ownership.
Section 15. Establishment of Branch and
Extension Offices. - Branch and extension
offices may be established in areas
approved by the Secretary, subject to
implementing guidelines.
Section 16. Conduct of Recruitment Outside
of Registered Office, Branch or Extension
Office. - No licensed agency shall conduct
any provincial recruitment, job fairs or
recruitment activities of any form outside of
the address stated in the license,
acknowledged Branch or Extension Office or
without first securing prior authority from the
Administration of the Center.
Section 17. Renewal of License. - An
agency shall submit an application for the
renewal thereof to the Administration. Such
application shall be supported by the
following documents:
a. Proof of foreign exchange earnings issued
by the Central Bank;
b. Surety bond duly renewed or revalidated;
c. Escrow agreement in the amount of
P200,000.00 with an accredited reputable
banking corporation to primarily answer for
valid and legal claims of recruited workers as
a result of recruitment violations or money
claims;
d. Replenishment of the cash bond in case
such or any part thereof is garnished;
e. Proof of financial capacity such as but not
limited to verified financial statements for the
past two (2) years, verified corporate or
individual tax returns with confirmation
receipts, and compliance with capitalization
requirements and infusion thereof as the
case may be, as certified by the Securities
and Exchange Commission;
f. Summary of deployment reports during the
validity of the license sought to be renewed;
g. Summary of payroll reports in case of
contractors and manning agencies during
the validity of the license sought to be
renewed; and
h. Other requirements as may be imposed
by the Administration.
Section 18. Non-expiration of License. -
Where the license holder has made timely
and sufficient application for renewal, the
existing license shall not expire until the
application shall have been finally
determined by the Administration.
Section 19. Action on Renewal of License. -
Within thirty (30) calendar days from receipt
of the application for renewal the
Administration shall undertake evaluation
and inspection and thereafter recommend to
the Secretary the grant or denial of the
application.
Section 20. Failure to Renew. - Any agency
which fails to obtain a renewal of its license
within thirty (30) calendar days from
expiration thereof, shall be immediately
deemed delisted and disallowed from
conducting recruitment and placement.
Section 21. Denial of Renewal of Licenses.
- Licenses of agencies which fail to conclude
a recruitment or manning agreement and/or
undertake minimum levels of worker
deployment and foreign exchange
generation or those which fail to meet the
minimum operational standards and
requirements set by the Administration, shall
not be renewed.
Section 22. When to Consider Cash
Bond/Deposit in Escrow Garnished. - As
soon as an Order of Garnishment is served
upon the Administration/Bank, and the same
is correspondingly earmarked, the cash
bond/deposit in escrow of an agency shall no
longer be considered sufficient. The
Administration shall forthwith serve upon the
agency a notice to replenish.
Section 23. Replenishment of Cash or
Surety Bonds/Deposit in Escrow. - Within
fifteen (15) calendar days from date of
receipt of notice from the Administration that
Duman / Labor I / Prof. Battad / Page 24
 the bonds/deposit in escrow, or any part
thereof had been garnished, the agency
shall replenish the same. Failure to
replenish such bonds/deposit in escrow
within the said period shall cause the
suspension of the license.
Section 24. Refund of Cash Bond/Release
of Deposit in Escrow. - A licensed agency
which voluntarily surrenders its license shall
be entitled to the refund of its deposited cash
bond and release of the deposit in escrow,
only after posting a surety bond of similar
amount valid for four (4) years from
expiration of license.
Section 25. Evaluation of Performance of
Agencies. - The Administration shall
undertake the annual evaluation and rating
of the performance of licensed agencies to
determine the merits of their continued
participation in the overseas employment
program taking into consideration
compliance with laws and regulations and
such other criteria as it may deem proper.
Section 26. Classification and Ranking. -
The Administration may undertake the
classification and ranking of agencies. In
recognition of exemplary performance, it
may undertake schemes for incentives and
rewards.
2) Workers Fees, Art. 32
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.
3) Reports/Employment Information, Arts. 33, 14 (d)
ART. 33. Reports on employment status. -
Whenever the public interest requires, the
Secretary of Labor may direct all persons or
entities within the coverage of this Title to
submit a report on the status of employment,
including job vacancies, details of job
requisitions, separation from jobs, wages,
other terms and conditions and other
employment data.
ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and
authority:
(d) To require any person, establishment,
organization or institution to submit such
employment information as may be
prescribed by the Secretary of Labor.
4) Prohibited Practices, Art. 34
ART. 34. Prohibited practices. - It shall be
unlawful for any individual, entity, licensee,
or holder of authority:
(a) To charge or accept, directly or indirectly,
any amount greater than that specified in the
schedule of allowable fees prescribed by the
Secretary of Labor, or to make a worker pay
any amount greater than that actually
received by him as a loan or advance;
(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 this
Code.
(d) To induce or attempt to induce a worker
already employed to quit his employment in
order to offer him to another unless the
transfer is designed to liberate the worker
from oppressive terms and conditions of
employment;
(e) To influence or to attempt to influence
any person or entity not to employ any
worker who has not applied for employment
through his agency;
(f) To engage in the recruitment or placement
of workers in jobs harmful to public health or
morality or to the dignity of the Republic of
the Philippines;
(g) To obstruct or attempt to obstruct
inspection by the Secretary of Labor or by
his duly authorized representatives;
(h) To fail to file reports on the status of
employment, placement vacancies,
remittance of foreign exchange earnings,
separation from jobs, departures and such
other matters or information as may be
required by the Secretary of Labor.
(i) To substitute or alter employment
contracts approved and verified by the
Department of Labor from the time of actual
signing thereof by the parties up to and
including the periods of expiration of the
same without the approval of the Secretary
of Labor;
(j) To become an officer or member of the
Board of any corporation engaged in travel
agency or to be engaged directly or indirectly
in the management of a travel agency; and
(k) To withhold or deny travel documents
from applicant workers before departure for
monetary or financial considerations other
than those authorized under this Code and
its implementing rules and regulations.
Duman / Labor I / Prof. Battad / Page 25
 5) Illegal Recruitment, Art. 38; Sec. 6, RA 8042
ART. 38. Illegal recruitment. - (a) Any
recruitment activities, including the prohibited
practices enumerated under Article 34 of this
Code, to be undertaken by non-licensees or
non-holders of authority, shall be deemed
illegal and punishable under Article 39 of this
Code. The Department of Labor and
Employment or any law enforcement officer
may initiate complaints under this Article.
(b) Illegal recruitment when committed by a
syndicate or in large scale shall be
considered an offense involving economic
sabotage and shall be penalized in
accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a
syndicate if carried out by a group of three
(3) or more persons conspiring and/or
confederating with one another in carrying
out any unlawful or illegal transaction,
enterprise or scheme defined under the first
paragraph hereof. Illegal recruitment is
deemed committed in large scale if
committed against three (3) or more persons
individually or as a group.
(c) The Secretary of Labor and Employment
or his duly authorized representatives shall
have the power to cause the arrest and
detention of such non-licensee or non-holder
of authority if after investigation it is
determined that his activities constitute a
danger to national security and public order
or will lead to further exploitation of job-
seekers. The Secretary shall order the
search of the office or premises and seizure
of documents, paraphernalia, properties and
other implements used in illegal recruitment
activities and the closure of companies,
establishments and entities found to be
engaged in the recruitment of workers for
overseas employment, without having been
licensed or authorized to do so.
6) Enforcement
a) Regulatory Power, Art. 36
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.
b) Rule-Making Power, Art. 36
c) Visitorial Power, Art. 37
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.
7) Joint and Several Liability of Agent and Principal,
POEA Rules, Book II, Rule II, Sec. 1 (f)
Section 1. Requirements for Issuance of
License. - Every applicant for license to
operate a private employment agency or
manning agency shall submit a written
application together with the following
requirements:
f. A verified undertaking stating that the
applicant:
(1) Shall select only medically and technically
qualified recruits;
(2) Shall assume full and complete responsibility for
all claims and liabilities which may arise in
connection with the use of license;
(3) Shall assume joint and solidary liability with the
employer for all claims and liabilities which may
arise in connection with the implementation of the
contract, including but not limited to payment of
wages, death and disability compensation and
repatriation;
(4) Shall guarantee compliance with the existing
labor and social legislations of the Philippines and
of the country of employment of recruited workers;
and
(5) Shall assume full and complete responsibility for
all acts of its officials, employees and
representatives done in connection with recruitment
and placement;
e. Jurisdiction
1) RTC over Criminal Action arising from Illegal
Recruitment, RA No. 8042, Sec. 9
SEC. 9. VENUE. - A criminal action arising from illegal
recruitment as defined herein shall be filed with the
Regional Trial Court of the province or city where the
offense was committed or where the offended party
actually resides at the same time of the commission
of the offense: Provided, That the court where the
criminal action is first filed shall acquire jurisdiction to
the exclusion of other courts. Provided, however, That
the aforestated provisions shall also apply to those
criminal actions that have already been filed in court
at the time of the effectivity of this Act.
2) LA over Money Claims, RA 8042, Sec. 10
SEC. 10. MONEY CLAIMS. -
Botwithstanding any provision of law to the
contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall
have the priginal and exclusive jurisdiction to
hear and decide, within ninety (90) calendar
days after filing of the complaint, the claims
Duman / Labor I / Prof. Battad / Page 26
arising out of an employer-employee
relationship or by virtue of any law or
contract involving Filipino workers for
overseas deployment including claims for
actual, moral, exemplary and other forms of
damages.
The liability of the
principal/employer and the
recruitment/placement agency for any and all
claims under this section shall be joint and
several. This provisions shall be
incorporated in the contract for overseas
employment and shall be a condition
precedent for its approval. The performance
bond to be filed by the
recruitment/placement agency, as provided
by law, shall be answerable for all money
claims or damages that may be awarded to
the workers. If the recruitment/placement
agency is a juridical being, the corporate
officers and directors and partners as the
case may be, shall themselves be jointly and
solidarily liable with the corporation or
partnership for the aforesaid claims and
damages.
Such liabilities shall continue
during the entire period or duration of the
employment contract and shall not be
affected by any substitution, amendment or
modification made locally or in a foreign
country of the said contract.
Any compromise/amicable
settlement or voluntary agreement on money
claims inclusive of damages under this
section shall be paid within four (4) months
from the approval of the settlement by the
appropriate authority.
In case of termination of overseas
employment without just, valid or authorized
cause as defined by law or contract, the
workers shall be entitled to the full
reimbursement of his placement fee with
interest of twelve percent (12%) per annum,
plus his salaries for the unexpired portion of
his employment contract or for three (3)
months for every year of the unexpired term,
whichever is less.
Non-compliance with the
mandatory periods for resolutions of cases
provided under this section shall subject the
responsible officials to any or all of the
following penalties:
(a) The salary of any such official
who fails to render his decision or resolutions
within the prescribed period shall be, or
caused to be, withheld until the said official
complies therewith;
(b) Suspension for not more than
ninety (90) days; or
(c) Dismissal from the service with
disqualifications to hold any appointive public
office for five (5) years.
Provided, however, that the
penalties herein provided shall be without
prejudice to any liability which any such
official may have incurred under other
existing laws or rules and regulations as a
consequence of violating the provisions of
this paragraph.
3) POEA over Administrative Cases
a) Pre-employment Cases, Omnibus rules Impl.
RA No. 8042, Sec. 28 (a)
Sec. 28. Jurisdiction of the POEA. - The
POEA shall exercise original and
exclusive jurisdiction to hear and decide:
(a) all cases, which are administrative in
character, involving or arising out of violations of
rules and regulations relating to licensing and
registration of recruitment and employment
agencies or entities; and
b) Disciplinary Cases, Sec. 28 (b)
(b) disciplinary action cases and other
special cases, which are administrative in
character, involving employers,
principals, contracting partners and
Filipino migrant workers.
3. Public Sector Agencies Employment Offices, Art. 12
(f); 14 (a); Sec. 3, Reorganizing POEA (EO No. 247);
POEA Rules
ART. 12. Statement of objectives. - It is the policy of
the State:
f) To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers, locally
and overseas, to serve national development
objectives;
ART. 14. Employment promotion. - The Secretary of
Labor shall have the power and authority:
(a) To organize and establish new
employment offices in addition to the existing
employment offices under the Department of
Labor as the need arises;
EO No. 247, Sec. 3. Powers and Functions. - In the
pursuit of its mandate, the Administration shall have
the following powers and functions:
(a) Regulate private sector participation in
the recruitment and overseas
placement of workers by setting up a
licensing and registration system;
(b) Formulate and implement, in
coordination with appropriate entities
concerned, when necessary, a system
for promoting and monitoring the
overseas employment of Filipino
workers taking into consideration their
welfare and the domestic manpower
requirements;
(c) Protect the rights of Filipino workers
for overseas employment to fair and
equitable recruitment and employment
practices and ensure their welfare;
(d) Exercise original and exclusive
Duman / Labor I / Prof. Battad / Page 27
jurisdiction to hear and decide all claims
arising out of an employer-employee
relationship or by virtue of any law or
contract involving Filipino workers for
overseas employment including the
disciplinary cases; and all pre-
employment cases which are
administrative in character involving or
arising out of violation or requirement
laws, rules and regulations including
money claims arising therefrom, or
violation of the conditions for issuance
of license or authority to recruit workers.
4.
8042, Secs. 6 , 7, 10
All prohibited recruitment activities and
practices which are penal in character
as enumerated and defined under and
by virtue of existing laws, shall be
prosecuted in the regular courts in
close coordination with the appropriate
Departments and agencies concerned;
(e) Maintain a registry of skills for
overseas placement;
(f) Recruit and place workers to service
the requirements for trained and
competent Filipino workers by foreign
governments and their instrumentalities
and such other employers as public
interest may require;
(g) Promote the development of skills
and careful selection of Filipino
workers;
(h) Undertake overseas market
development activities for placement of
Filipino workers;
(i) Secure the best terms and conditions
of employment of Filipino contract
workers and ensure compliance
therewith;
(j) Promote and protect the well-being
of Filipino workers overseas;
(k) Develop and implement programs
for the effective monitoring of returning
contract workers, promoting their re-
training and re-employment or their
smooth re-integration into the
mainstream of national economy in
coordination with other government
agencies;
(l) Institute a system for ensuring fair
and speedy disposition of cases
involving violation or recruitment rules
and regulations as well as violation of
terms and conditions of overseas
employment;
(m) Establish a system for speedy and
efficient enforcement of decisions laid
down through the exercise of its
adjudicatory function;
(n) Establish and maintain close
relationship and enter into joint projects
with the Department of Foreign Affairs,
Philippine Tourism Authority, Manila
International Airport Authority,
Department of Justice, Department of
Budget and Management and other
relevant government entities, in the
pursuit of its objectives. The
Administration shall also establish and
maintain joint projects with private
organizations, domestic or foreign, in
the furtherance of its objectives.
Sanctions, Arts. 35, 39 (a) (b) (c) (d) (e); RA
ART. 35. Suspension and/or cancellation of
license or authority. - The Minister of Labor
shall have the power to suspend or cancel
any license or authority to recruit employees
for overseas employment for violation of
rules and regulations issued by the Ministry
of Labor, the Overseas Employment
Development Board, or for violation of the
provisions of this and other applicable laws,
General Orders and Letters of Instructions.
ART. 39. Penalties. - (a) The penalty of life
imprisonment and a fine of One Hundred
Thousand Pesos (P1000,000.00) shall be
imposed if illegal recruitment constitutes
economic sabotage as defined herein;
(b) Any licensee or holder of authority found
violating or causing another to violate any
provision of this Title or its implementing
rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of
not less than two years nor more than five
years or a fine of not less than P10,000 nor
more than P50,000, or both such
imprisonment and fine, at the discretion of
the court;
(c) Any person who is neither a licensee nor
a holder of authority under this Title found
violating any provision thereof or its
implementing rules and regulations shall,
upon conviction thereof, suffer the penalty of
imprisonment of not less than four years nor
more than eight years or a fine of not less
than P20,000 nor more than P100,000 or
both such imprisonment and fine, at the
discretion of the court;
(d) If the offender is a corporation,
partnership, association or entity, the penalty
shall be imposed upon the officer or officers
of the corporation, partnership, association
or entity responsible for violation; and if such
officer is an alien, he shall, in addition to the
penalties herein prescribed, be deported
without further proceedings;
(e) In every case, conviction shall cause and
carry the automatic revocation of the license
or authority and all the permits and privileges
granted to such person or entity under this
Title, and the forfeiture of the cash and
Duman / Labor I / Prof. Battad / Page 28
 surety bonds in favor of the Overseas
Employment Development Board or the
National Seamen Board, as the case may
be, both of which are authorized to use the
same exclusively to promote their objectives.
a. Local Employment, Art. 39
(SEE ABOVE)
b. Overseas Employment, Art. 35; RA 8042, Sec. 7
(SEE ABOVE FOR ART. 35)
Sec. 6. DEFINITIONS. - For purposes of this Act,
illegal recruitment shall mean 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 contemplated
under Article 13(f) of Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the
Philippines. Provided, that such non-license or non-
holder, who, in any manner, offers or promises for a
fee 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;
(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
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.
Illegal recruitment is deemed committed by a
syndicate carried out by a group of three (3) or more
persons conspiring or confederating with one another.
It is deemed committed in large scale if 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.
SEC. 7. PENALTIES -
(a) Any person found guilty of illegal recruitment shall
suffer the penalty of imprisonment of not less than six
(6) years and one (1) day but not more than twelve
(12) years and a fine not less than two hundred
thousand pesos (P200,000.00) nor more than five
hundred thousand pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of not
less than five hundred thousand pesos (P500,000.00)
nor more than one million pesos (P1,000,000.00)
shall be imposed if illegal recruitment constitutes
economic sabotage as defined herein.
Provided, however, that the maximum penalty shall
be imposed if the person illegally recruited is less than
eighteen (18) years of age or committed by a non-
licensee or non-holder of authority.
SEC. 10. MONEY CLAIMS. - Notwithstanding any
provision of law to the contrary, the Labor Arbiters of
the National Labor Relations Commission (NLRC)
shall have the priginal and exclusive jurisdiction to
hear and decide, within ninety (90) calendar days
after filing of the complaint, the claims arising out of
an employer-employee relationship or by virtue of any
law or contract involving Filipino workers for overseas
deployment including claims for actual, moral,
exemplary and other forms of damages.
The liability of the principal/employer and
the recruitment/placement agency for any and all
claims under this section shall be joint and several.
This provisions shall be incorporated in the contract
Duman / Labor I / Prof. Battad / Page 29
 for overseas employment and shall be a condition
precedent for its approval. The performance bond to
be filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money
claims or damages that may be awarded to the
workers. If the recruitment/placement agency is a
juridical being, the corporate officers and directors
and partners as the case may be, shall themselves be
jointly and solidarily liable with the corporation or
partnership for the aforesaid claims and damages.
Such liabilities shall continue during the
entire period or duration of the employment contract
and shall not be affected by any substitution,
amendment or modification made locally or in a
foreign country of the said contract.
Any compromise/amicable settlement or
voluntary agreement on money claims inclusive of
damages under this section shall be paid within four
(4) months from the approval of the settlement by the
6. Trafficking in Persons, RA 9208 and Rules and
appropriate authority. Regulations Implementing RA 9208
In case of termination of overseas
employment without just, valid or authorized cause as
defined by law or contract, the workers shall be Republic of the Philippines
entitled to the full reimbursement of his placement fee Congress of the Philippines
with interest of twelve percent (12%) per annum, plus Metro Manila
his salaries for the unexpired portion of his
employment contract or for three (3) months for every
year of the unexpired term, whichever is less. Twelfth Congress
Second Regular Session
Non-compliance with the mandatory periods
for resolutions of cases provided under this section
shall subject the responsible officials to any or all of
the following penalties:
(a) The salary of any such official who fails Begun held in Metro Manila on Monday, the
to render his decision or resolutions within the twenty-second day of July, two thousand two
prescribed period shall be, or caused to be, withheld
until the said official complies therewith; Republic Act No. 9208 May 26, 2003
(b) Suspension for not more than ninety
(90) days; or AN ACT TO INSTITUTE POLICIES TO
(c) Dismissal from the service with ELIMINATE TRAFFICKING IN PERSONS
disqualifications to hold any appointive public office ESPECIALLY WOMEN AND CHILDREN,
for five (5) years. ESTABLISHING THE NECESSARY
INSTITUTIONAL MECHANISMS FOR THE
Provided, however, that the penalties herein
provided shall be without prejudice to any liability PROTECTION AND SUPPORT OF
which any such official may have incurred under other TRAFFICKED PERSONS, PROVIDING
existing laws or rules and regulations as a PENALTIES FOR ITS VIOLATIONS, AND FOR
consequence of violating the provisions of this OTHER
paragraph.
Be it enacted by the Senate and the House of
5. Issues and Questions on Overseas Representatives of the Philippines in Congress
Employment assembled:
Readings:
Section 1. Title. This Act shall be known as the
Soriano, Ma. Teresa M., Implications of International "Anti-Trafficking in Persons Act of 2003".
Migration, A
Focus on the Philippine Experience, PLR, Vol 20. No. 2 Section 2. Declaration of Policy. It is hereby
(1996)
declared that the State values the dignity of
King, Amelia M., Social and Economic Benefits and every human person and guarantees the respect
Costs, PLR, Vol. 9, No. 1 (1985).
of individual rights. In pursuit of this policy, the
Licuanan, Patricia B. Katas ng Saudi, a closer look. State shall give highest priority to the enactment
PLR Vol. 9, No. 1 (1985). of measures and development of programs that
will promote human dignity, protect the people
from any threat of violence and exploitation,
eliminate trafficking in persons, and mitigate
pressures for involuntary migration and
Duman / Labor I / Prof. Battad / Page 30
servitude of persons, not only to support
trafficked persons but more importantly, to
ensure their recovery, rehabilitation and
reintegration into the mainstream of society.
It shall be a State policy to recognize the equal
rights and inherent human dignity of women and
men as enshrined in the United Nations
Universal Declaration on Human Rights, United
Nations Convention on the Rights of the Child,
United Nations Convention on the Protection of
Migrant Workers and their Families. United
Nations Convention Against Transnational
Organized Crime Including its Protocol to
Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children and
all other relevant and universally accepted
human rights instruments and other international
conventions to which the Philippines is a
signatory.
Section 3. Definition of Terms. - As used in this
Act:
(a) Trafficking in Persons - refers to the
recruitment, transportation, transfer or
harboring, or receipt of persons with or
without the victim's consent or
knowledge, within or across national
borders by means of threat or use of
force, or other forms of coercion,
abduction, fraud, deception, abuse of
power or of position, taking advantage
of the vulnerability of the person, or, the
giving or receiving of payments or
benefits to achieve the consent of a
person having control over another
person for the purpose of exploitation
which includes at a minimum, the
exploitation or the prostitution of others
or other forms of sexual exploitation,
forced labor or services, slavery,
servitude or the removal or sale of
organs.
The recruitment, transportation, transfer,
harboring or receipt of a child for the
purpose of exploitation shall also be
considered as "trafficking in persons"
even if it does not involve any of the
means set forth in the preceding
paragraph.
(b) Child - refers to a person below
eighteen (18) years of age or one who is
over eighteen (18) but is unable to fully
take care of or protect himself/herself
from abuse, neglect, cruelty,
exploitation, or discrimination because
of a physical or mental disability or
condition.
(c) Prostitution - refers to any act,
transaction, scheme or design involving
the use of a person by another, for
sexual intercourse or lascivious conduct
in exchange for money, profit or any
other consideration.
(d) Forced Labor and Slavery - refer to
the extraction of work or services from
any person by means of enticement,
violence, intimidation or threat, use of
force or coercion, including deprivation
of freedom, abuse of authority or moral
ascendancy, debt-bondage or
deception.
(e) Sex Tourism - refers to a program
organized by travel and tourism-related
establishments and individuals which
consists of tourism packages or
activities, utilizing and offering escort
and sexual services as enticement for
tourists. This includes sexual services
and practices offered during rest and
recreation periods for members of the
military.
(f) Sexual Exploitation - refers to
participation by a person in prostitution
or the production of pornographic
materials as a result of being subjected
to a threat, deception, coercion,
abduction, force, abuse of authority,
debt bondage, fraud or through abuse of
a victim's vulnerability.
(g) Debt Bondage - refers to the
pledging by the debtor of his/her
personal services or labor or those of a
person under his/her control as security
or payment for a debt, when the length
and nature of services is not clearly
defined or when the value of the
services as reasonably assessed is not
applied toward the liquidation of the
debt.
(h) Pornography - refers to any
representation, through publication,
exhibition, cinematography, indecent
shows, information technology, or by
whatever means, of a person engaged
in real or simulated explicit sexual
activities or any representation of the
sexual parts of a person for primarily
sexual purposes.
(i) Council - shall mean the Inter-Agency
Council Against Trafficking created
under Section 20 of this Act.
Duman / Labor I / Prof. Battad / Page 31
Section 4. Acts of Trafficking in Persons. - It
shall be unlawful for any person, natural or
juridical, to commit any of the following acts:
(a) To recruit, transport, transfer; harbor,
provide, or receive a person by any
means, including those done under the
pretext of domestic or overseas
employment or training or
apprenticeship, for the purpose of
prostitution, pornography, sexual
exploitation, forced labor, slavery,
involuntary servitude or debt bondage;
(b) To introduce or match for money,
profit, or material, economic or other
consideration, any person or, as
provided for under Republic Act No.
6955, any Filipino woman to a foreign
national, for marriage for the purpose of
acquiring, buying, offering, selling or
trading him/her to engage in prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(c) To offer or contract marriage, real or
simulated, for the purpose of acquiring,
buying, offering, selling, or trading them
to engage in prostitution, pornography,
sexual exploitation, forced labor or
slavery, involuntary servitude or debt
bondage;
(d) To undertake or organize tours and
travel plans consisting of tourism
packages or activities for the purpose of
utilizing and offering persons for
prostitution, pornography or sexual
exploitation;
(e) To maintain or hire a person to
engage in prostitution or pornography;
(f) To adopt or facilitate the adoption of
persons for the purpose of prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(g) To recruit, hire, adopt, transport or
abduct a person, by means of threat or
use of force, fraud, deceit, violence,
coercion, or intimidation for the purpose
of removal or sale of organs of said
person; and
(h) To recruit, transport or adopt a child
to engage in armed activities in the
Philippines or abroad.
Section 5. Acts that Promote Trafficking in
Persons. - The following acts which promote or
facilitate trafficking in persons, shall be unlawful:
(a) To knowingly lease or sublease, use
or allow to be used any house, building
or establishment for the purpose of
promoting trafficking in persons;
(b) To produce, print and issue or
distribute unissued, tampered or fake
counseling certificates, registration
stickers and certificates of any
government agency which issues these
certificates and stickers as proof of
compliance with government regulatory
and pre-departure requirements for the
purpose of promoting trafficking in
persons;
(c) To advertise, publish, print, broadcast
or distribute, or cause the
advertisement, publication, printing,
broadcasting or distribution by any
means, including the use of information
technology and the internet, of any
brochure, flyer, or any propaganda
material that promotes trafficking in
persons;
(d) To assist in the conduct of
misrepresentation or fraud for purposes
of facilitating the acquisition of
clearances and necessary exit
documents from government agencies
that are mandated to provide pre-
departure registration and services for
departing persons for the purpose of
promoting trafficking in persons;
(e) To facilitate, assist or help in the exit
and entry of persons from/to the country
at international and local airports,
territorial boundaries and seaports who
are in possession of unissued, tampered
or fraudulent travel documents for the
purpose of promoting trafficking in
persons;
(f) To confiscate, conceal, or destroy the
passport, travel documents, or personal
documents or belongings of trafficked
persons in furtherance of trafficking or to
prevent them from leaving the country or
seeking redress from the government or
appropriate agencies; and
(g) To knowingly benefit from, financial
or otherwise, or make use of, the labor
or services of a person held to a
condition of involuntary servitude, forced
labor, or slavery.
Duman / Labor I / Prof. Battad / Page 32
Section 6. Qualified Trafficking in Persons. -
The following are considered as qualified
trafficking:
(a) When the trafficked person is a child;
(b) When the adoption is effected
through Republic Act No. 8043,
otherwise known as the "Inter-Country
Adoption Act of 1995" and said adoption
is for the purpose of prostitution,
pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or
debt bondage;
(c) When the crime is committed by a
syndicate, or in large scale. Trafficking is
deemed committed by a syndicate if
carried out by a group of three (3) or
more persons conspiring or
confederating with one another. It is
deemed committed in large scale if
committed against three (3) or more
persons, individually or as a group;
(d) When the offender is an ascendant,
parent, sibling, guardian or a person
who exercises authority over the
trafficked person or when the offense is
committed by a public officer or
employee;
(e) When the trafficked person is
recruited to engage in prostitution with
any member of the military or law
enforcement agencies;
(f) When the offender is a member of the
military or law enforcement agencies;
and
(g) When by reason or on occasion of
the act of trafficking in persons, the
offended party dies, becomes insane,
suffers mutilation or is afflicted with
Human Immunodeficiency Virus (HIV) or
the Acquired Immune Deficiency
Syndrome (AIDS).
Section 6. Confidentiality. - At any stage of the
investigation, prosecution and trial of an offense
under this Act, law enforcement officers,
prosecutors, judges, court personnel and
medical practitioners, as well as parties to the
case, shall recognize the right to privacy of the
trafficked person and the accused. Towards this
end, law enforcement officers, prosecutors and
judges to whom the complaint has been referred
may, whenever necessary to ensure a fair and
impartial proceeding, and after considering all
circumstances for the best interest of the parties,
order a closed-door investigation, prosecution or
trial. The name and personal circumstances of
the trafficked person or of the accused, or any
other information tending to establish their
identities and such circumstances or information
shall not be disclosed to the public.
In cases when prosecution or trial is conducted
behind closed-doors, it shall be unlawful for any
editor, publisher, and reporter or columnist in
case of printed materials, announcer or producer
in case of television and radio, producer and
director of a film in case of the movie industry, or
any person utilizing tri-media facilities or
information technology to cause publicity of any
case of trafficking in persons.
Section 8. Prosecution of Cases. - Any person
who has personal knowledge of the commission
of any offense under this Act, the trafficked
person, the parents, spouse, siblings, children or
legal guardian may file a complaint for
trafficking.
Section 9. Venue. - A criminal action arising
from violation of this Act shall be filed where the
offense was committed, or where any of its
elements occurred, or where the trafficked
person actually resides at the time of the
commission of the offense: Provided, That the
court where the criminal action is first filed shall
acquire jurisdiction to the exclusion of other
courts.
Section 10. Penalties and Sanctions. - The
following penalties and sanctions are hereby
established for the offenses enumerated in this
Act:
(a) Any person found guilty of
committing any of the acts enumerated
in Section 4 shall suffer the penalty of
imprisonment of twenty (20) years and a
fine of not less than One million pesos
(P1,000,000.00) but not more than Two
million pesos (P2,000,000.00);
(b) Any person found guilty of
committing any of the acts enumerated
in Section 5 shall suffer the penalty of
imprisonment of fifteen (15) years and a
fine of not less than Five hundred
thousand pesos (P500,000.00) but not
more than One million pesos
(P1,000,000.00);
(c) Any person found guilty of qualified
trafficking under Section 6 shall suffer
the penalty of life imprisonment and a
fine of not less than Two million pesos
(P2,000,000.00) but not more than Five
million pesos (P5,000,000.00);
(d) Any person who violates Section 7
hereof shall suffer the penalty of
Duman / Labor I / Prof. Battad / Page 33
 imprisonment of six (6) years and a fine
of not less than Five hundred thousand
pesos (P500,000.00) but not more than
One million pesos (P1,000,000.00);
(e) If the offender is a corporation,
partnership, association, club,
establishment or any juridical person,
the penalty shall be imposed upon the
owner, president, partner, manager,
and/or any responsible officer who
participated in the commission of the
crime or who shall have knowingly
permitted or failed to prevent its
commission;
(f) The registration with the Securities
and Exchange Commission (SEC) and
license to operate of the erring agency,
corporation, association, religious group,
tour or travel agent, club or
establishment, or any place of
entertainment shall be cancelled and
revoked permanently. The owner,
president, partner or manager thereof
shall not be allowed to operate similar
establishments in a different name;
(g) If the offender is a foreigner, he shall
be immediately deported after serving
his sentence and be barred permanently
from entering the country;
(h) Any employee or official of
government agencies who shall issue or
approve the issuance of travel exit
clearances, passports, registration
certificates, counseling certificates,
marriage license, and other similar
documents to persons, whether juridical
or natural, recruitment agencies,
establishments or other individuals or
groups, who fail to observe the
prescribed procedures and the
requirement as provided for by laws,
rules and regulations, shall be held
administratively liable, without prejudice
to criminal liability under this Act. The
concerned government official or
employee shall, upon conviction, be
dismissed from the service and be
barred permanently to hold public office.
His/her retirement and other benefits
shall likewise be forfeited; and
(i) Conviction by final judgment of the
adopter for any offense under this Act
shall result in the immediate rescission
of the decree of adoption.
Section 11. Use of Trafficked Persons. - Any
person who buys or engages the services of
trafficked persons for prostitution shall be
penalized as follows:
(a) First offense - six (6) months of
community service as may be
determined by the court and a fine of
Fifty thousand pesos (P50,000.00); and
(b) Second and subsequent offenses -
imprisonment of one (1) year and a fine
of One hundred thousand pesos
(P100,000.00).
Section 12. Prescriptive Period. - Trafficking
cases under this Act shall prescribe in ten (10)
years: Provided, however, That trafficking cases
committed by a syndicate or in a large scale as
defined under Section 6 shall prescribe in twenty
(20) years.
The prescriptive period shall commence to run
from the day on which the trafficked person is
delivered or released from the conditions of
bondage and shall be interrupted by the filing of
the complaint or information and shall
commence to run again when such proceedings
terminate without the accused being convicted
or acquitted or are unjustifiably stopped for any
reason not imputable to the accused.
Section 13. Exemption from Filing Fees. - When
the trafficked person institutes a separate civil
action for the recovery of civil damages, he/she
shall be exempt from the payment of filing fees.
Section 14. Confiscation and Forfeiture of the
Proceeds and Instruments Derived from
Trafficking in Persons. - In addition to the
penalty imposed for the violation of this Act, the
court shall order the confiscation and forfeiture,
in favor of the government, of all the proceeds
and properties derived from the commission of
the crime, unless they are the property of a third
person not liable for the unlawful act; Provided,
however, That all awards for damages shall be
taken from the personal and separate properties
of the offender; Provided, further, That if such
properties are insufficient, the balance shall be
taken from the confiscated and forfeited
properties.
When the proceeds, properties and instruments
of the offense have been destroyed, diminished
in value or otherwise rendered worthless by any
act or omission, directly or indirectly, of the
offender, or it has been concealed, removed,
converted or transferred to prevent the same
from being found or to avoid forfeiture or
confiscation, the offender shall be ordered to
pay the amount equal to the value of the
proceeds, property or instruments of the offense.
Duman / Labor I / Prof. Battad / Page 34
Section 15. Trust Fund. - All fines imposed
under this Act and the proceeds and properties
forfeited and confiscated pursuant to Section 14
hereof shall accrue to a Trust Fund to be
administered and managed by the Council to be
used exclusively for programs that will prevent
acts of trafficking and protect, rehabilitate,
reintegrate trafficked persons into the
mainstream of society. Such programs shall
include, but not limited to, the following:
(a) Provision for mandatory services set
forth in Section 23 of this Act;
(b) Sponsorship of a national research
program on trafficking and
establishment of a data collection
system for monitoring and evaluation
purposes;
(c) Provision of necessary technical and
material support services to appropriate
government agencies and non-
government organizations (NGOs);
(d) Sponsorship of conferences and
seminars to provide venue for
consensus building amongst the public,
the academe, government, NGOs and
international organizations; and
(e) Promotion of information and
education campaign on trafficking.
Section 16. Programs that Address Trafficking
in Persons. - The government shall establish
and implement preventive, protective and
rehabilitative programs for trafficked persons.
For this purpose, the following agencies are
hereby mandated to implement the following
programs;
(a) Department of Foreign Affairs (DFA)
- shall make available its resources and
facilities overseas for trafficked persons
regardless of their manner of entry to
the receiving country, and explore
means to further enhance its assistance
in eliminating trafficking activities
through closer networking with
government agencies in the country and
overseas, particularly in the formulation
of policies and implementation of
relevant programs.
The DFA shall take necessary measures
for the efficient implementation of the
Machine Readable Passports to protect
the integrity of Philippine passports,
visas and other travel documents to
reduce the incidence of trafficking
through the use of fraudulent
identification documents.
It shall establish and implement a pre-
marriage, on-site and pre-departure
counseling program on intermarriages.
(b) Department of Social Welfare and
Development (DSWD) - shall implement
rehabilitative and protective programs
for trafficked persons. It shall provide
counseling and temporary shelter to
trafficked persons and develop a system
for accreditation among NGOs for
purposes of establishing centers and
programs for intervention in various
levels of the community.
(c) Department of Labor and
Employment (DOLE) - shall ensure the
strict implementation and compliance
with the rules and guidelines relative to
the employment of persons locally and
overseas. It shall likewise monitor,
document and report cases of trafficking
in persons involving employers and
labor recruiters.
(d) Department of Justice (DOJ) - shall
ensure the prosecution of persons
accused of trafficking and designate and
train special prosecutors who shall
handle and prosecute cases of
trafficking. It shall also establish a
mechanism for free legal assistance for
trafficked persons, in coordination with
the DSWD, Integrated Bar of the
Philippines (IBP) and other NGOs and
volunteer groups.
(e) National Commission on the Role of
Filipino Women (NCRFW) - shall
actively participate and coordinate in the
formulation and monitoring of policies
addressing the issue of trafficking in
persons in coordination with relevant
government agencies. It shall likewise
advocate for the inclusion of the issue of
trafficking in persons in both its local and
international advocacy for women's
issues.
(f) Bureau of Immigration (BI) - shall
strictly administer and enforce
immigration and alien administration
laws. It shall adopt measures for the
apprehension of suspected traffickers
both at the place of arrival and
departure and shall ensure compliance
by the Filipino fiancs/fiances and
spouses of foreign nationals with the
guidance and counseling requirement
as provided for in this Act.
(g) Philippine National Police (PNP) -
shall be the primary law enforcement
Duman / Labor I / Prof. Battad / Page 35
 agency to undertake surveillance,
investigation and arrest of individuals or
persons suspected to be engaged in
trafficking. It shall closely coordinate
with various law enforcement agencies
to secure concerted efforts for effective
investigation and apprehension of
suspected traffickers. It shall also
establish a system to receive complaints
and calls to assist trafficked persons and
conduct rescue operations.
(h) Philippine Overseas Employment
Administration (POEA) - shall implement
an effective pre-employment orientation
seminars and pre-departure counseling
programs to applicants for overseas
employment. It shall likewise formulate a
system of providing free legal
assistance to trafficked persons.
(i) Department of the Interior and Local
Government (DILG) - shall institute a
systematic information and prevention
campaign and likewise maintain a
databank for the effective monitoring,
documentation and prosecution of cases
on trafficking in persons.
(j) Local government units (LGUs) - shall
monitor and document cases of
trafficking in persons in their areas of
jurisdiction, effect the cancellation of
licenses of establishments which violate
the provisions of this Act and ensure
effective prosecution of such cases.
They shall also undertake an
information campaign against trafficking
in persons through the establishment of
the Migrants Advisory and Information
Network (MAIN) desks in municipalities
or provinces in coordination with DILG,
Philippine Information Agency (PIA),
Commission on Filipinos Overseas
(CFO), NGOs and other concerned
agencies. They shall encourage and
support community based initiatives
which address the trafficking in persons.
In implementing this Act, the agencies
concerned may seek and enlist the
assistance of NGOs, people's
organizations (Pos), civic organizations
and other volunteer groups.
Section 17. Legal Protection to Trafficked
Persons. - Trafficked persons shall be
recognized as victims of the act or acts of
trafficking and as such shall not be penalized for
crimes directly related to the acts of trafficking
enumerated in this Act or in obedience to the
order made by the trafficker in relation thereto.
In this regard, the consent of a trafficked person
to the intended exploitation set forth in this Act
shall be irrelevant.
Section 18. Preferential Entitlement Under the
Witness Protection Program. - Any provision of
Republic Act No. 6981 to the contrary
notwithstanding, any trafficked person shall be
entitled to the witness protection program
provided therein.
Section 19. Trafficked Persons Who are
Foreign Nationals. - Subject to the guidelines
issued by the Council, trafficked persons in the
Philippines who are nationals of a foreign
country shall also be entitled to appropriate
protection, assistance and services available to
trafficked persons under this Act: Provided, That
they shall be permitted continued presence in
the Philippines for a length of time prescribed by
the Council as necessary to effect the
prosecution of offenders.
Section 20. Inter-Agency Council Against
Trafficking. - There is hereby established an
Inter-Agency Council Against Trafficking, to be
composed of the Secretary of the Department of
Justice as Chairperson and the Secretary of the
Department of Social Welfare and Development
as Co-Chairperson and shall have the following
as members:
(a) Secretary, Department of Foreign
Affairs;
(b) Secretary, Department of Labor and
Employment;
(c) Administrator, Philippine Overseas
Employment Administration;
(d) Commissioner, Bureau of
Immigration;
(e) Director-General, Philippine National
Police;
(f) Chairperson, National Commission
on the Role of Filipino Women; and
(g) Three (3) representatives from
NGOs, who shall be composed of one
(1) representative each from among the
sectors representing women, overseas
Filipino workers (OFWs) and children,
with a proven record of involvement in
the prevention and suppression of
trafficking in persons. These
representatives shall be nominated by
the government agency representatives
of the Council, for appointment by the
President for a term of three (3) years.
Duman / Labor I / Prof. Battad / Page 36
 The members of the Council may
designate their permanent
representatives who shall have a rank
not lower than an assistant secretary or
its equivalent to meetings, and shall
receive emoluments as may be
determined by the Council in
accordance with existing budget and
accounting, rules and regulations.
Section 21. Functions of the Council. - The
Council shall have the following powers and
functions:
(a) Formulate a comprehensive and
integrated program to prevent and
suppress the trafficking in persons;
(b) Promulgate rules and regulations as
may be necessary for the effective
implementation of this Act;
(c) Monitor and oversee the strict
implementation of this Act;
(d) Coordinate the programs and
projects of the various member
agencies to effectively address the
issues and problems attendant to
trafficking in persons;
(e) Coordinate the conduct of massive
information dissemination and campaign
on the existence of the law and the
various issues and problems attendant
to trafficking through the LGUs,
concerned agencies, and NGOs;
(f) Direct other agencies to immediately
respond to the problems brought to their
attention and report to the Council on
action taken;
(g) Assist in filing of cases against
individuals, agencies, institutions or
establishments that violate the
provisions of this Act;
(h) Formulate a program for the
reintegration of trafficked persons in
cooperation with DOLE, DSWD,
Technical Education and Skills
Development Authority (TESDA),
Commission on Higher Education
(CHED), LGUs and NGOs;
(i) Secure from any department, bureau,
office, agency, or instrumentality of the
government or from NGOs and other
civic organizations such assistance as
may be needed to effectively implement
this Act;
(j) Complement the shared government
information system for migration
established under Republic Act No.
8042, otherwise known as the "Migrant
Workers and Overseas Filipinos Act of
1995" with data on cases of trafficking in
persons, and ensure that the proper
agencies conduct a continuing research
and study on the patterns and scheme
of trafficking in persons which shall form
the basis for policy formulation and
program direction;
(k) Develop the mechanism to ensure
the timely, coordinated, and effective
response to cases of trafficking in
persons;
(l) Recommend measures to enhance
cooperative efforts and mutual
assistance among foreign countries
through bilateral and/or multilateral
arrangements to prevent and suppress
international trafficking in persons;
(m) Coordinate with the Department of
Transportation and Communications
(DOTC), Department of Trade and
Industry (DTI), and other NGOs in
monitoring the promotion of
advertisement of trafficking in the
internet;
(n) Adopt measures and policies to
protect the rights and needs of trafficked
persons who are foreign nationals in the
Philippines;
(o) Initiate training programs in
identifying and providing the necessary
intervention or assistance to trafficked
persons; and
(p) Exercise all the powers and perform
such other functions necessary to attain
the purposes and objectives of this Act.
Section 22. Secretariat to the Council. - The
Department of Justice shall establish the
necessary Secretariat for the Council.
Section 23. Mandatory Services to Trafficked
Persons. - To ensure recovery, rehabilitation and
reintegration into the mainstream of society,
concerned government agencies shall make
available the following services to trafficked
persons:
(a) Emergency shelter or appropriate
housing;
(b) Counseling;
Duman / Labor I / Prof. Battad / Page 37
 (c) Free legal services which shall
include information about the victims'
rights and the procedure for filing
complaints, claiming compensation and
such other legal remedies available to
them, in a language understood by the
trafficked person;
(d) Medical or psychological services;
(e) Livelihood and skills training; and
(f) Educational assistance to a trafficked
child.
Sustained supervision and follow through
mechanism that will track the progress of
recovery, rehabilitation and reintegration of the
trafficked persons shall be adopted and carried
out.
Section 24. Other Services for Trafficked
Persons. -
(a) Legal Assistance. - Trafficked
persons shall be considered under the
category "Overseas Filipino in Distress"
and may avail of the legal assistance
created by Republic Act No. 8042,
subject to the guidelines as provided by
law.
(b) Overseas Filipino Resource Centers.
- The services available to overseas
Filipinos as provided for by Republic Act
No. 8042 shall also be extended to
trafficked persons regardless of their
immigration status in the host country.
(c) The Country Team Approach. - The
country team approach under Executive
Order No. 74 of 1993, shall be the
operational scheme under which
Philippine embassies abroad shall
provide protection to trafficked persons
insofar as the promotion of their welfare,
dignity and fundamental rights are
concerned.
Section 25. Repatriation of Trafficked Persons. -
The DFA, in coordination with DOLE and other
appropriate agencies, shall have the primary
responsibility for the repatriation of trafficked
persons, regardless of whether they are
documented or undocumented.
If, however, the repatriation of the trafficked
persons shall expose the victims to greater risks,
the DFA shall make representation with the host
government for the extension of appropriate
residency permits and protection, as may be
legally permissible in the host country.
Section 26. Extradition. - The DOJ, in
consultation with DFA, shall endeavor to include
offenses of trafficking in persons among
extraditable offenses.
Section 27. Reporting Requirements. - The
Council shall submit to the President of the
Philippines and to Congress an annual report of
the policies, programs and activities relative to
the implementation of this Act.
Section 28. Funding. - The heads of the
departments and agencies concerned shall
immediately include in their programs and issue
such rules and regulations to implement the
provisions of this Act, the funding of which shall
be included in the annual General
Appropriations Act.
Section 29. Implementing Rules and
Regulations. - The Council shall promulgate the
necessary implementing rules and regulations
within sixty (60) days from the effectivity of this
Act.
Section 30. Non-restriction of Freedom of
Speech and of Association, Religion and the
Right to Travel. - Nothing in this Act shall be
interpreted as a restriction of the freedom of
speech and of association, religion and the right
to travel for purposes not contrary to law as
guaranteed by the Constitution.
Section 31. Separability Clause. - If, for any
reason, any section or provision of this Act is
held unconstitutional or invalid, the other
sections or provisions hereof shall not be
affected thereby.
Section 32. Repealing clause. - All laws,
presidential decrees, executive orders and rules
and regulations, or parts thereof, inconsistent
with the provisions of this Act are hereby
repealed or modified accordingly: Provided, That
this Act shall not in any way amend or repeal the
provision of Republic Act No. 7610, otherwise
known as the "Special Protection of Children
Against Child Abuse, Exploitation and
Discrimination Act".
Section 33. Effectivity. - This Act shall take
effect fifteen (15) days from the date of its
complete publication in at least two (2)
newspapers of general circulation.
RULES AND REGULATIONS
IMPLEMENTING REPUBLIC ACT NO.
9208, OTHERWISE KNOWN AS THE
ANTI-TRAFFICKING IN PERSONS ACT
OF 2003
Pursuant to the authority of the Inter-Agency
Council Against Trafficking (IACAT) under
Duman / Labor I / Prof. Battad / Page 38
Section 29 of Republic Act No. 9208 otherwise
known as the Anti-Trafficking in Persons Act of
2003, the following
rules and regulations are hereby promulgated to
implement the provisions of said Act:
Article I
GENERAL PROVISIONS
Sec. 1. Title. These rules and regulations shall
be known and cited as The Rules and
Regulations Implementing the Anti-Trafficking in
Persons Act of 2003.
Sec. 2. Purpose. These rules and regulations
are hereby promulgated to institute policies,
establish the institutional mechanism for the
support and protection of trafficked persons and
prescribe the procedures and guidelines for the
implementation of Republic Act No. 9208 in
order to facilitate compliance therewith and
achieve the objectives thereof.
Sec. 3. Declaration of State Policy. The State
values the dignity of every human person and
guarantees the respect for individual rights.
Towards this end, the State shall give the
highest priority to the enactment of measures
and development of programs that will promote
human dignity, protect the people from any
threat of violence and exploitation, eliminate
trafficking in persons, and mitigate pressures for
involuntary migration and servitude of persons,
not only to support trafficked persons but more
importantly, to ensure
their recovery, rehabilitation and reintegration
into the mainstream of society.
The State also recognizes the equal rights and
inherent human dignity of women and men, as
well as the rights of children, as enshrined and
guaranteed in the following international
instruments:
(i) Universal Declaration on Human
Rights;
(ii) Convention for the Suppression of
the Traffic in Persons and
Exploitation of the Prostitution of
Others;
(iii) Convention on the Elimination of All
Forms of Discrimination Against
Women;
(iv) Convention on the Rights of the
Child and itsOptional Protocols;
(v) Convention on the Protection of
Migrant Workers and Members of
their Families;
(vi) Convention Against Transnational
OrganizedCrimes including its
Protocol to Prevent,Suppress and
Punish Trafficking in Persons,
Especially Women and Children;
(vii) ILO Convention No. 182
(Convention Concerning the
Prohibition and Immediate Action for
the Elimination of the Worst Forms
of Child Labor); and
(viii) All other relevant and universally
accepted human rights instruments
and other international conventions
to which the Philippines is a State
Party. In all actions concerning
children, their best interests shall be
the paramount consideration.
Sec. 4. Construction. These rules and
regulations shall be liberally construed in favor
of the trafficked persons to promote their human
dignity; ensure their recovery, rehabilitation and
reintegration into the mainstream of society;
eliminate trafficking in persons; and achieve the
objectives of the Act.
Article II
DEFINITION OF TERMS
Sec. 5. Definition of Terms. As used in these
rules and regulations, unless the context
otherwise requires, the following terms shall be
understood to mean:
(a) Act refers to Republic Act No. 9208,
otherwise
known as the Anti-Trafficking in Persons Act of
2003;
(b) Council refers to the Inter-Agency Council
Against Trafficking (IACAT) created under
Section 20 of the Act;
(c) Trafficking in Persons refers to the
recruitment, transportation, transfer or harboring,
or receipt of persons, with or without the victims
consent or knowledge, within or across national
borders by means of threat or use of force, or
other forms of coercion, abduction, fraud,
deception, abuse of power or of position, taking
advantage of the vulnerability of the person, or,
the giving or receiving of payments or benefits to
achieve the consent of a person having control
over another person for the purpose of
exploitation which includes at a minimum, the
exploitation or the prostitution of others or other
forms of sexual exploitation, forced labor or
services, slavery, servitude or the removal or
sale of organs.
The recruitment, transportation, transfer,
harboring or receipt of a child for the purpose of
exploitation
shall also be considered as trafficking in
persons even if it does not involve any of the
means set forth in the preceding paragraph.
(d) Child refers to a person below eighteen
(18) years of age or one who is over eighteen
(18) but is unable to fully take care of or protect
himself/herself from abuse, neglect, cruelty,
Duman / Labor I / Prof. Battad / Page 39
exploitation, or discrimination because of a
physical or mental disability or condition;
(e) Prostitution refers to any act, transaction,
scheme or design involving the use of a person
by another, for sexual intercourse or lascivious
conduct in exchange for money, profit or any
other consideration;
(f) Forced Labor and Slavery refer to the
extraction of work or services from any person
by means of enticement, violence, intimidation
or threat, use of force or coercion, including
deprivation of freedom, abuse of authority or
moral ascendancy, debt-bondage or deception;
(g) Sex Tourism refers to a program
organized by travel and tourism-related
establishments and individuals which consists
of tourism packages or activities, utilizing and
offering escort and sexual services as
enticement for tourists. This includes sexual
services and practices offered during rest and
recreation periods for members of the military;
(h) Sexual Exploitation refers to participation
by a person in prostitution or the production of
pornographic
materials as a result of being subjected to a
threat, deception, coercion, abduction, force,
abuse of authority, debt bondage, fraud or
through abuse of a victims vulnerability;
(i) Debt Bondage refers to the pledging by the
debtor of his/her personal services or labor or
those of a person under his/her control as
security or payment for a debt, when the length
and nature of services is not clearly defined or
when the value of the services as reasonably
assessed is not applied toward the liquidation of
the debt;
(j) Pornography refers to any representation,
through publication, exhibition, cinematography,
indecent
shows, information technology, or by whatever
means, of a person engaged in real or simulated
explicit sexual activities or any representation of
the sexual parts of a person primarily for sexual
purposes; and
(k) Involuntary Servitude refers to a condition
of enforced, compulsory service induced by
means of any scheme, plan or pattern, intended
to cause a person to believe that, if the person
did not enter into or continue in such condition,
that person or another person would suffer
serious harm or other forms of abuse or physical
restraint, or the abuse or threatened abuse of
the legal process.
Article III
THE INTER-AGENCY COUNCIL
AGAINST TRAFFICKING (IACAT)
Sec. 6. Creation. The Inter-Agency Council
Against Trafficking (IACAT) shall be established
which shall be primarily tasked to coordinate,
monitor and oversee the implementation of the
Act.
Sec. 7. Composition. The Council shall be
composed of the following:
(a) Secretary, Department of Justice (DOJ) as
Chairperson;
(b) Secretary, Department of Social Welfare and
Development (DSWD) as Co-Chairperson;
(c) Secretary, Department of Foreign Affairs
(DFA) as Member;
(d) Secretary, Department of Labor and
Employment
(DOLE) as Member;
(e) Administrator, Philippine Overseas
Employment
Administration (POEA) as Member;
(f) Commissioner, Bureau of Immigration (BI) as
Member;
(g) Director-General, Philippine National Police
(PNP) as Member;
(h) Chairperson, National Commission on the
Role of Filipino Women (NCRFW) as Member;
(i) One (1) representative from an NGO
representingthe women sector as Member;
(j) One (1) representative from an NGO
representing he Overseas Filipino Workers
(OFWs) sector as Member; and
(k) One (1) representative from an NGO
representing he children sector as Member.
The members of the Council may designate their
permanent representatives who shall have a
rank not lower than an Assistant Secretary or its
equivalent to attend the meetings of the Council.
Sec. 8. Qualifications, Selection and
Appointment of NGO and its
Representatives. The NGOs, with national and
international networks, and its representatives to
the Council must have a proven track record of
involvement in the prevention and suppression
of trafficking in persons. They shall be
nominated by any
of the government agency representatives of the
Council and shall be selected by majority vote
thereof and endorsed to the President. They
shall be appointed by the President for a term of
three (3) years.
Sec. 9. Functions of the Council. The Council
shall have the following powers and functions:
(a) Formulate a comprehensive and integrated
program to prevent and suppress the trafficking
in persons;
(b) Promulgate rules and regulations as may be
necessary for the effective implementation of the
Act;
Duman / Labor I / Prof. Battad / Page 40
(c) Monitor and oversee the strict
implementation of the Act;
(d) Coordinate the programs and projects of the
various member agencies to effectively address
the issues and problems attendant to trafficking
in persons;
(e) Coordinate the conduct of massive
information dissemination and campaign on the
existence of the law and the various issues and
problems attendant to trafficking through the
local government units (LGUs), concerned
agencies, and NGOs;
(f) Direct other agencies to immediately respond
to the problems brought to their attention and
report to the Council on action taken;
(g) Assist in filing of cases against individuals,
agencies, institutions or establishments that
violate the
provisions of the Act;
(h) Formulate a program for the reintegration of
trafficked persons in cooperation with DOLE,
DSWD, Technical Education and Skills
Development Authority (TESDA), Commission
on Higher Education (CHED), LGUs and NGOs;
(i) Secure from any department, bureau, office,
agency, or instrumentality of the government or
from NGOs
and other civic organizations such assistance as
may be needed to effectively implement the Act;
(j) Complement the shared government
information system for migration established
under Republic Act No. 8042, otherwise known
as the Migrant Workers and Overseas Filipinos
Act of 1995 with data on cases of trafficking in
persons, and ensure that the proper agencies
conduct a continuing research and study on the
patterns and scheme of trafficking in persons
which shall form the basis for policy formulation
and program direction;
(k) Develop the mechanism to ensure the timely
coordinated and effective response to cases of
trafficking in
persons;
(l) Recommend measures to enhance
cooperative efforts and mutual assistance
among foreign countries through bilateral and/or
multilateral arrangements to prevent and
suppress international trafficking in persons;
(m) Coordinate with the Department of
Transportation and Communications (DOTC),
Department of Trade and Industry (DTI), and
other NGOs in monitoring the promotion of
advertisement of trafficking in the Internet;
(n) Adopt measures and policies to protect the
rights and needs of trafficked persons who are
foreign nationals in the Philippines;
(o) Initiate training programs in identifying and
roviding the necessary intervention or
assistance to trafficked
persons; and
(p) Exercise all the powers and perform such
other functions necessary to attain the purposes
and objectives of the Act.
Sec. 10. Reportorial Function. Within sixty (60)
days after the closing of each calendar year, the
Council shall submit to the Office of the
President a comprehensive report on the actions
and programs
taken by the Council relative to and concerning
the implementation of the Act.
Sec. 11. Meetings of the Council. The Council
shall meet regularly at least once a month.
Special meetings may be called by the Chair as
the need arises. Majority of the members of the
Council
shall constitute a quorum to transact business.
Sec. 12. Honoraria or Emoluments. The
Members of the Council or their designated
permanent representatives shall receive
honoraria or emoluments as may be determined
by the Council in
accordance with existing budget and accounting
rules and regulations.
Sec. 13. Implementation of the Law at Sub-
National and Local Levels. The Council shall,
as far as practicable, develop mechanisms to
ensure the implementation of the law and these
rules and regulations at the sub-national and
local levels
Article IV
SECRETARIAT
SEC. 14. Organization. The Department of
Justice shall establish a Secretariat to assist the
Council in the performance of its functions. The
Secretary of Justice shall determine the
organizational structure and staffing pattern of
the Secretariat.
Sec. 15. Functions. The Secretariat shall have
the following functions:
(a) Coordinate and monitor, under the direction
of the Council, the implementation of the policies
and guidelines promulgated by the Council;
(b) Establish, maintain and manage a central
database on trafficking in persons;
(c) Provide secretariat, records keeping and
other services to the Council; and
(d) Perform such other functions as may be
directed by the Council.
Article V
ROLES AND RESPONSIBILITIES
Sec. 16. Common Roles and Responsibilities
of Council Member Agencies. All member
government agencies of the Council shall have
the following common roles and responsibilities:
(a) Develop policies and programs supportive of
and consistent with the objectives of the Act;
(b) Enhance the capability of its officers and
personnel involved in trafficking issues and
Duman / Labor I / Prof. Battad / Page 41
concerns through appropriate training and staff
support programs;
(c) Undertake information, education and
advocacy campaigns against trafficking in
persons;
(d) Maintain a databank on trafficking in persons
to be shared among relevant agencies and
complement the central databank to be
established by the Council; and
(e) Document good practices as bases for policy
formulation and program development.
Sec. 17. Specific Roles and Responsibilities
of National Government Agencies which are
Members of the Council. The following national
government agencies, which are member
agencies of the Council, shall have, but not
limited to, the following roles and responsibilities
in the prevention and suppression of trafficking
in persons:
(a) Department of Justice (DOJ)
(i) Ensure the prosecution of persons for
violations of the Act;
(ii) Designate and train special prosecutors who
shall investigate and prosecute cases of
trafficking;
(iii) Establish a mechanism for free legal
assistance for trafficked persons, in coordination
with the DSWD, Commission on Human Rights
(CHR), Integrated Bar of the Philippines (IBP)
and other NGOs and volunteer groups;
(iv) Provide, witness protection to trafficked
victims and their witnesses;
(v) Conduct training and continuing education
program on investigation and prosecution for
trafficking in
persons and other related offenses for
prosecutors and law enforcement officers;
(vi) Receive, evaluate, process and investigate
claims for compensation by trafficked victims,
when applicable, pursuant to Republic Act No.
7309 (Victims Compensation
Act);
(vii) Review and recommend policies and
measures to enhance protection against
trafficking in persons;
(viii) Recommend the negotiation of mutual legal
assistance and extradition treaties with other
countries in
coordination with the DFA; and
(ix) Coordinate with and/or provide assistance to
the Anti-Money Laundering Council (AMLC) on
cases of
trafficking in persons with possible money
laundering underpinnings.
(b) Department of Social Welfare and
Development (DSWD)
(i) Provide psycho-social counseling, temporary
shelter and other support services to
victims/survivors of
trafficking and their families;
(ii) Make available skills training and livelihood
services to victims/survivors of trafficking;
(iii) Develop program and other support
interventions to facilitate the recovery and
reintegration of
trafficked victims into their families and
communities;
(iv) Provide social welfare services to Filipino
victims of trafficking in other countries through
the DSWD
Social Welfare Attach and social workers
posted in foreign countries, which may include
but not limited to stress management,
repatriation and other appropriate psychosocial
interventions for their protection and welfare;
(v) Conduct technical assistance and capability
building activities for social welfare
officers/social workers
of LGUs and NGOs;
(vi) Accredit NGOs that provide programs and
services to ensure that they meet the standards
set by the
Department; and
(vii) Provide temporary shelter and psycho-
social services to foreign nationals who are
victims of trafficking
in persons as confirmed by the Bureau of
Immigration.
(c) Department of Foreign Affairs (DFA)
(i) Make available its resources and facilities
overseas and to provide services for trafficked
persons
regardless of the manner of their entry to the
receiving country;
(ii) Explore means to further enhance its
assistance in eliminating trafficking activities
through closer
networking with government agencies in the
country and overseas, particularly in the
formulation of policies and implementation of
relevant programs;
(iii) Actively participate in bilateral, regional and
international initiatives and cooperative
arrangements
aimed at suppressing trafficking in persons and
protecting and assisting victims of trafficking to
include monitoring of inter-country adoption
cases.
(iv) Take necessary measures for the efficient
implementation of the Machine Readable
Passports and
Visas to protect the integrity of Philippine
passports, visas, and other travel documents to
reduce the incidence of trafficking in persons
through the use of fraudulent identification
documents;
(v) Establish and implement pre-marriage, on-
site and pre-departure counseling program on
inter-marriages.
Duman / Labor I / Prof. Battad / Page 42
For this purpose, the DFA shall promulgate the
necessary guidelines to implement the said
program; and
(vi) Integrate into the pre-departure orientation
seminars for foreign service personnel a training
module on
trafficking in persons.
(d) Department of Labor and Employment
(DOLE)
(i) Ensure the strict implementation of and
compliance with rules and guidelines relative to
the
employment of persons locally and overseas;
and
(ii) Monitor, document and report cases of
trafficking in persons involving employers and
labor
recruiters;
(iii) Make available existing resources such as
employment and livelihood programs as part of
the
governments measure to suppress trafficking in
persons; and
(iv) Conduct public awareness programs and
activities to prevent victimization.
(e) Philippine Overseas Employment
Administration (POEA)
(i) Implement an effective pre-employment
orientation seminar and pre-departure
counseling program
to applicants for overseas employment;
(ii) Formulate a system providing free legal
assistance to trafficked persons which shall
include the
following:
(a) Provision of legal assistance to victims of
trafficking in persons by means of, or in the
guise of,
recruitment for overseas employment, as
defined in Section 6 of R.A. No. 8042, such as
free legal advice, assistance in the preparation
and filing of administrative and criminal actions
for trafficking as defined in the Act, without
prejudice to the filing of administrative and/or
criminal actions for illegal recruitment, as
defined in R.A.No. 8042, when proper;
(b) Assistance in the prosecution of persons who
engage in, promote and facilitate trafficking in
persons
by means of, or in the guise of, recruitment for
overseas employment, as defined in Section 6 of
R.A. 8042;
In this connection, the POEA shall likewise
adopt a policy of confidentiality in all cases
referred to it involving
possible violations of the Act.
(iii) Adopt policies and procedures, prepare and
implement programs geared towards the
eradication of
trafficking in persons as well as acts that
promote trafficking in persons such as, but not
limited to, the following:
(a) Comprehensive and Integrated Education
Program on overseas employment which shall
be undertaken in partnership with other relevant
organizations and government entities. Such
education program shall cover all stages of
recruitment and employment and shall provide
information useful for overseas workers
including a module on anti-trafficking program
and measures;
(b) Nationwide multi-media and sustainable
grassroots information campaign to create
publicawareness on the realities of overseas
employment and dangers of becoming victims of
illegal trafficking activities;
(c) Conduct special operations, complementary
to the power of the PNP, on persons and entities
engaged
in recruitment for overseas employment reported
to be violating the provisions of the Act for the
purpose of
effecting closure of said establishments
pursuant to the provisions of R.A. No. 8042; and
(d) Database of cases involving, and
personalities involved in, trafficking persons
separate and distinct from its illegal Recruitment
cases for monitoring purposes;
(iv) In cases of repatriation involving workers
recruited and deployed by licensed agencies,
the POEA shall
notify the agency concerned to provide a plane
ticket or Prepaid Travel Advice (PTA) and shall
impose sanctions on said agencies for failure to
cooperate in providing welfare assistance to
OFWs they have deployed; and
(v) Continue to regulate private sector
participation in the recruitment and overseas
placement of
workers through its licensing and registration
system pursuant to its rules and regulation on
overseas
employment. It shall formulate and implement, in
coordination with appropriate entities concerned,
when
necessary, a system of promoting and
monitoring the overseas employment of Filipino
workers, taking into
consideration their welfare and protection from
the dangers and risks inherent in overseas
employment, including illegal trafficking.
(f) Bureau of Immigration (BI)
(i) Strictly administer and enforce immigration
and alien registration laws;
Duman / Labor I / Prof. Battad / Page 43
(ii) Adopt measures for the apprehension of
suspected traffickers both at the place of arrival
and
departure;
(iii) Ensure compliance by the Filipino fiancs/
fiances and spouses of foreign nationals with
the predeparture and counseling program
requirement of the Act;
(iv) Strictly implement the requirement for a
parental travel authority duly processed by the
DSWD for
minors traveling abroad unaccompanied by one
parent, and the travel clearance for minors
traveling abroad
unaccompanied by both parents;
(v) Ensure compliance by Overseas Filipino
Workers of the departure requirements of the
POEA;
(vi) Conduct periodic training and seminar on
fraudulent document detection and passenger
assessment
to enhance the level of skill and competence of
all its immigration officers and agents in
document fraud detection;
(vii) Conduct periodic study of the trends, routes
and modus operandi employed by the traffickers
including
its recruitment base, transit countries and
country of destination;
(viii) Establish a network with other law
enforcement agencies and immigration
counterparts of
source, transit and destination countries to
facilitate exchange and sharing of information on
the activities of
trafficking syndicates;
(ix) Establish network with LGUs for the effective
apprehension of suspected traffickers and their
cohorts;
(x) Develop a program for the procurement and
installation of International Civil Aviation
Organization
(ICAO) compliant machine readers and fraud
detection equipment at all international airports
and seaports in the country to deter trafficking in
persons; and
(xi) Develop and distribute materials containing
advisory and other pertinent information to
enhance
awareness against trafficking in persons.
(g) Philippine National Police (PNP)
(i) Undertake surveillance, investigation and
arrest of individuals or persons suspected to be
engaged in
trafficking;
(ii) Coordinate closely with various law
enforcement agencies to secure concerted
efforts for effective
investigation and apprehension of suspected
traffickers. For this purpose, it shall also:
(a) Pursue the detection and investigation of
suspected or alleged trafficking activities at
airports
through its Aviation Security Group, at seaports
and/or harbors through its Maritime Group, and
at land
transportation terminals through its police station
and when proper, file the appropriate charges
against traffickers in the proper court;
(b) Coordinate with the Philippine Ports Authority
(PPA) which may have initially processed
complaints at their Balay Silungan sa
Daungan; and
(c) Coordinate with local and barangay officials
with respect to the apprehension and/or arrest of
traffickers.
(iii) Establish a system to receive complaints and
calls to assist trafficked persons, and the
conduct of rescue operations;
(iv) Direct and supervise the enforcement of its
andate under the Act and its rules and
regulations;
(v) Supervise the conduct of investigations
relating to apprehension occurring at land
transportation
terminals, domestic seaports and airports and
monitor the filing of appropriate cases against
traffickers;
(vi) Formulate plans and programs for the
prevention and/or reduction of trafficking in
persons;
(vii) Integrate in the program of instruction
comprehensive, gender sensitive and child-
friendly
investigation and handling of cases of trafficking
in persons in the Philippine National Police
Academy (PNPA), Philippine Public Safety
College (PPSC) and other training schools
operated and managed by the PNP; and
(viii) Establish anti-trafficking section under the
Women and Children Complaint Desk (WCCD)
in all city
and municipal police stations.
(h) National Commission on the Role of Filipino
Women (NCRFW)
(i) Actively advocate and participate in
international and regional discussion and
initiatives in
trafficking in women and include the same in all
of its international commitments and policy
pronouncements. Where possible and
appropriate, work with the Department of
Foreign Affairs in forging bilateral and
multilateral collaborative projects on trafficking;
(ii) Assist the Council in the formulation and
monitoring of policies addressing the issue of
trafficking in
persons in coordination with relevant
government agencies;
Duman / Labor I / Prof. Battad / Page 44
(iii) Assist the Council in the conduct of
information dissemination and training to
frontline government
agencies, NGOs and the general public;
(iv) Assist in the development of gender
responsive documentation system in
coordination with other agencies and the
National Statistical Coordination Board (NSCB)
through its monitoring of the situation of women
particularly on violence against women;
(v) Assist the Council in the formulation of
prevention and reintegration programs for
victims of
trafficking including the demand side; and (vi)
Conduct studies on the root causes, magnitude
and forms of trafficking in women and document
best practices in prevention programs.
Sec. 18. Roles and Responsibilities of Other
Relevant National Government Agencies.
Consistent with their mandates under existing
laws, the following agencies shall integrate
human trafficking issues in their strategy and
program formulation and implement programs
and services for the prevention and suppression
of trafficking and for the protection of trafficked
victims.
They shall likewise have the following roles and
responsibilities:
(a) Department of the Interior and Local
Government (DILG)
(i) Conduct a systematic information
dissemination/advocacy and prevention
campaign against trafficking in persons;
(ii) Maintain a databank for the effective
monitoring, documentation and prosecution of
cases on
trafficking in persons;
(iii) Issue directives to the LGUs and barangays
to institutionalize recruiter-monitoring
mechanisms and
increase public awareness regarding trafficking
in persons;
(iv) Promote family and community
empowerment to prevent trafficking in persons;
and
(v) Strengthen, activate and mobilize existing
committees, councils, similar organizations and
special
bodies at the local level to prevent and suppress
trafficking in persons.
(b) Department of Tourism (DOT)
(i) Formulate and implement preventive
measures to stop sex tourism packages and
other activities of tourism establishments which
might contribute to the trafficking in persons in
coordination with local governmentunits; and
(ii) Provide training to tourist security officers on
surveillance, investigation and rescue operation
strategies.
(c) Department of Education (DepEd)
(i) Integrate in the appropriate subject areas
core messages on migration and trafficking in
the elementary
and secondary levels by providing lesson with
emphasis on their implications and social costs
to persons and country;
(ii) Provide opportunities for trafficked persons in
the educational mainstream through the basic
education
and non-formal education curricula; and
(iii) Provide education and raise consciousness
of boys/men in schools and communities in
order to discourage the demand side or the
use/buying of trafficked women
and children.
(d) Department of Health (DOH)
(i) Make available its resources and facilities in
providing health care to victims of trafficking
which shall,
at all times, be held confidential.
(e) Department of Transportation and
Communication (DOTC)
(i) Provide guidelines for the land, sea and air
transport providers to train their personnel in
trafficking
in persons;
(ii) Standardize guidelines for monitoring
trafficking in persons in every port; and
(iii) Monitor the promotion of advertisement of
trafficking in the Internet.
(f) Commission on Human Rights (CHR)
(i) Conduct advocacy and training programs
relating to anti-trafficking;
(ii) Investigate and recommend for prosecution
violations of the Act;
(iii) Provide legal and financial assistance to
victims of trafficking; and
(iv) Integrate anti-trafficking efforts in the
Barangay Human Rights Action Center
(BHRAC); and
(v) Monitor government compliance to
international human rights treaty obligations
related to the
suppression/elimination of trafficking, particularly
the Convention for the Suppression of Traffic in
Persons and Exploitation of the Prostitution of
Others, the Convention on the Elimination of All
Forms of Discrimination Against Women, the
Convention on the Rights of the Child, the
Convention on the Protection of Migrant
Workers and Members of Their Families, and
the UN Convention Against Transnational
Organized Crimes including its Protocol to
Prevent, Suppress and Punish Trafficking in
Persons, Especially Women and Children.
Duman / Labor I / Prof. Battad / Page 45
(g) National Bureau of Investigation (NBI)
(i) Conduct surveillance, monitor and investigate
recruiters, travel agencies, hotels and other
establishments
suspected to be engaged in trafficking in
persons;
(ii) Coordinate closely with all the Council
member agencies for effective detection and
investigation of suspected traffickers;
(iii) Formulate plans and programs for the
detection and prevention of trafficking, and the
arrest and
prosecution of suspected traffickers;
(iv) Share intelligence information on suspected
traffickers to all Council member agencies when
necessary;
and
(v) Foster cooperation and coordination with the
law enforcement agencies of other countries and
the
INTERPOL in the investigation and
apprehension of suspected traffickers.
(h) Philippine Center on Transnational Crime
(PCTC)
(i) Continue to function in accordance with its
mandate pursuant to Executive Order No. 62, s.
1999, on
matters concerning trafficking in persons with
transnational dimension;
(ii) Undertake strategic researches on the
structure and dynamics of trafficking in persons
with transnational crime dimension, predict
trends and analyze given factors for the
formulation of individual and collective
strategies for the prevention and detection of
trafficking in persons and the apprehension of
criminal elements involved;
(iii) Conduct case operations in coordination with
other law enforcement agencies; and
(iv) Serve as the focal point in international law
enforcement coordination on trafficking in
persons
particularly with the INTERPOL.
(i) Overseas Workers Welfare Administration
(OWWA)
(i) Assist in the information and advocacy
campaign among OFWs to prevent trafficking in
persons;
(ii) Assist in the documentation of cases of
trafficking and ensure the provision of its
programs and
services to OFWs and their families; and (iii)
Include a module on anti-trafficking to its
predeparture
seminar.
(j) Council for the Welfare of Children (CWC)
(i) Integrate in its development and strategic
frameworks issues and concerns affecting
trafficking in
children and ensure the adoption of such
frameworks by the LGUs and other
stakeholders;
(ii) Vigorously advocate against trafficking of
children;
(iii) Improve data on trafficking in children
through integration of critical and relevant
indicators into the
monitoring system for children;
(iv) Adopt policies and measures that will protect
and promote the rights and welfare of children
victims of
trafficking and coordinate and monitor their
implementation; and
(v) Address issues on trafficking of children
through policy and program interventions.
(k) Philippine Information Agency (PIA)
(i) Enhance public awareness on trafficking in
persons, pertinent laws and possible actions to
prevent
victimization and re-victimization by developing
public advocacy program as well as printing and
distributing
appropriate information materials.
(l) Technical Education and Skills Development
Authority (TESDA)
(i) Provide skills and entrepreneurial training to
trafficked victims; and
(ii) Formulate a special program to ensure the
provision of appropriate skills training for
trafficked victims.
Sec. 19. Roles and Responsibilities of Local
Government Units (LGUs). The LGUs shall
have the following roles and responsibilities:
(a) Monitor and document cases of trafficked
persons in their areas of jurisdiction;
(b) Effect the cancellation of licenses of
establishments which violate the provisions of
the Act and
ensure its effective prosecution;
(c) Undertake an information campaign against
trafficking in persons through the establishment
of the Migrants Advisory and Information
Network (MAIN) desks in municipalities and
provinces in coordination with the DILG, PIA,
Commission on Filipino Overseas (CFO), NGOs
and other concerned agencies;
(d) Encourage and support community based
initiatives which address trafficking in persons;
(e) Provide basic social services for the
prevention, rescue, recovery, rehabilitation and
reintegration/after care support services to
victims of trafficking in persons and their
families;
Duman / Labor I / Prof. Battad / Page 46
(f) Enact ordinances or issuances aimed at
providing protection and support to trafficked
persons and adopt measures to prevent and
suppress trafficking in persons; and
(g) Strengthen, activate and mobilize existing
committees, councils, similar organizations and
special bodies
at the provincial, city, municipal and barangay
levels to prevent and suppress trafficking in
persons.
Sec. 20. Roles and Responsibilities of Non-
Government Organizations which are
Members of the Council. The NGO members
of the Council shall have the following roles and
responsibilities:
(a) Assist government agencies in formulating
and implementing policies, programs and IEC
campaign against trafficking;
(b) Assist in capability-building activities of
government personnel and share their
experiences and
expertise in handling trafficking cases;
(c) Coordinate with concerned government
agencies, LGUs and other NGOs in reporting
alleged perpetrators, rescuing victims of
trafficking, and conducting investigation/
surveillance, if indicated;
(d) Undertake programs and activities for the
prevention, rescue, recovery and reintegration of
the victims of
trafficking and other support services for their
families;
(e) Document and/or assist in the documentation
of cases of trafficking;
(f) Disseminate guidelines to all its network
members, local and international, on policies
and programs
addressing issues on trafficking in persons;
(g) Formulate educational module to address
thedemand side of trafficking; and
(h) Perform such other tasks as may be agreed
upon by the Council.
Sec. 21. Assistance of Other Agencies and
Institutions. In implementing the Act and these
rules and regulations, the agencies concerned
may seek and enlist the assistance of NGOs,
peoples
organizations (POs), civic organizations and
other volunteer groups, which will all likewise be
encouraged to assume the same roles and
responsibilities enumerated in the preceding
Section.
Article VI
REPORTING OF SUSPECTED/ ALLEGED
TRAFFICKING INCIDENT
Sec. 22. Who May and To Whom to Report.
Any person who has any knowledge or learns of
facts or circumstances that give rise to a
reasonable belief that a person will be, or may
be, or has been trafficked shall immediately
report the same, either orally, in writing or
through other means, to any member of the
Council, the barangay authorities, the nearest
police or other law enforcement agency, the
local social welfare and development office or
the local Council for the Protection of Children.
In the case of trafficking cases abroad, the
report shall be made to the Philippine
Embassy/Consulate which has jurisdiction over
the place where the trafficking occurred or
where the trafficked person is
found.
Sec. 23. Action on the Report. The agency,
entity or person
to whom the report is made shall immediately
act as soon as the report is received in
coordination with other relevant government
agency for appropriate intervention. For this
purpose, the Council shall develop a mechanism
to ensure the timely, coordinated and effective
response to cases of trafficking in persons.
Article VII
INTERCEPTION, ARREST AND
INVESTIGATION OF TRAFFICKERS
Sec. 24. Procedure in the Interception, Arrest
and Investigation of Traffickers in Persons at
International Airport or Seaport. When an
offense punishable under the Act or any other
offense in relation thereto or in furtherance
thereof has been committed, or is actually being
committed in the presence of an immigration
officer assigned at the international airport or
seaport,
he/she shall immediately cause the interception
and/or arrest of the persons involved for
investigation. The DOJ Task Force Against
Trafficking shall cause the filing of appropriate
case in court when
evidence warrants. If the person arrested is a
foreigner, the concerned B.I.
investigating unit shall take full custody over the
arrested person, conduct the investigation
proper motu proprio and endorse the complaint
and supporting documents to the prosecutor for
inquest or MTC Judge for appropriate
proceedings.
Sec. 25. Procedure in the Interception, Arrest
and Investigation of Traffickers in Persons at
Local Airport, Seaport and Land
Transportation Terminals. In cases where the
violation is committed at local seaport, airport or
in land transportation terminals, the members of
the law enforcement agency shall
immediately cause the interception and/or arrest
of the suspected traffickers. Thereafter, the
investigation shall be conducted by the law
enforcement agency on the person/s
intercepted/arrested, and
Duman / Labor I / Prof. Battad / Page 47
referred to the Prosecutors Office of the place
where the offense was committed or to the DOJ
Task Force Against Trafficking in Persons or
Task Force on Passport Irregularities or
Municipal Trial Court of
the place where the crime was committed in
case of municipalities and non-chartered cities
for purposes of inquest or preliminary
investigation as the case may be.
Sec. 26. Creation of a Joint Task Force
Against Trafficking in Persons. For the
purpose of the above provisions, there shall be
created a Joint Task Force Against Trafficking in
Persons to be assigned at airports composed of
Prosecution, BI, PNP, and NBI personnel and
another Task Force at land transportation
terminals and local seaports and airports to be
composed of Prosecution, PNP, BI, PPA, and
PCG personnel. The DOJ National Task Force
Against Trafficking in Persons shall issue the
necessary
operational guidelines for the effective
coordination, apprehension, investigation and
prosecution of violations of the Act. The DOJ
Task Force assigned at local seaports, airports
and land transportation
terminals shall cooperate or coordinate with the
local authorities, local social welfare and
development officers or active NGOs concerned
with trafficking in persons in the locality.
Sec. 27. Rights of the Person Arrested,
Investigated or Detained. In all cases, the
rights of the person arrested, investigated or
detained as provided by the Philippine
Constitution and under Republic Act No. 7438
(An Act Defining Certain Rights of Persons
Arrested, Detained or Under Custodial
Investigation As Well As The Duties of the
Arresting, Detaining and Investigating Officers,
and Providing Penalties For Violations Thereof)
shall, at all times, be respected.
Article VIII
RESCUE/RECOVERY AND REPATRIATION
OF VICTIMS
Sec. 28. The Country Team Approach. The
country team approach under Executive Order
No. 74, series of 1993 and further enunciated in
Republic Act No. 8042 shall be the operational
scheme under which Philippine embassies
abroad shall provide protection to trafficked
persons regardless of their immigration status.
Under the Country Team Approach, all officers,
representatives and personnel of the Philippine
government posted abroad regardless of their
mother agencies shall, on a per country basis,
act as one-country team with mission under the
leadership of the Ambassador or the head of
mission.
Sec. 29. Rescue at the Country of
Destination.
(a) Procedure. When the victim is a Filipino
national and at the time of rescue is residing
abroad, the embassy or consulate which has
jurisdiction over the place where the victim is
residing shall verify the veracity of the report of
incidence of trafficking and inquire about the
condition of the victim.
Consistent with the country team approach, the
Post concerned shall send a team composed of
a consular officer and personnel from the
Philippine Overseas Labor Office (POLO) or the
Filipino Workers Resource Center (FWRC), the
Office of the Social Welfare Attach as the case
may be, to conduct a visit to the jail,
establishment, work site or residence of the
victim. In the case of Posts without attached
services, the team
will be composed of a consular officer and
personnel from the Assistance-to-Nationals
section.
The Post shall make representations with the
police authorities or other relevant law
enforcement agencies with respect to the
conduct of rescue operations.
Rescue operation shall also be made in
cooperation and close coordination with some
NGOs, local contacts or private individuals
when necessary.
In countries and areas where the services of the
FWRC is not accessible, a mobile type of
services shall be extended by the country team
members to trafficked persons regardless of
their status in the host country.
Thereafter, the victim will be encouraged to
execute a sworn statement, recounting among
others, the people/establishment involved in the
recruitment/transfer and deployment, the modus
operandi employed to recruit, transport and
deploy the victim, and other pertinent
information which could provide a lead in the
investigation and eventual prosecution of the
perpetrators.
(b) Assistance to Trafficked Persons. The
trafficked person shall be provided with
temporary shelter and other forms of assistance.
In countries where there is an Filipino Workers
Resource Center, the services available to
overseas Filipinos as provided for in Republic
Act No. 8042 shall also be extended to trafficked
persons regardless of their status in the host
country.
(c) Legal Assistance Fund. Trafficked persons
shall be considered under the category
Overseas Filipinos in
Distress and may avail of the Legal Assistance
Fund created by Republic Act No. 8042, subject
Duman / Labor I / Prof. Battad / Page 48
to the guidelines as provided by law, including
rules and regulations issued by the DFA as
to its utilization and disbursement.
Sec. 30. Repatriation of Trafficked Persons.
The DFA, in coordination with DOLE and other
appropriate agencies, shall have the primary
responsibility for the repatriation of trafficked
persons, regardless of whether they are
documented or undocumented.
If, however, the repatriation of trafficked persons
shall expose the victims to greater risks, the DFA
shall make representation with the host
government for the extension of appropriate
residency permits
and protection, as may be legally permissible in
the host country.
Sec. 31. Procedure for Repatriation. In
accordance with existing rules and regulations
on the use and disbursement of Assistance-to-
Nationals Fund of the DFA for the repatriation of
distressed OFWs, the Post shall immediately
request the DFA, through the Office of the
Undersecretary for Migrant Workers Affairs
(OUMWA), allocation of funds for the repatriation
of the victim. In appropriate cases and to avoid
re-victimization, the Post may withdraw the
passport of the victim and forward it to the DFA
and in
its place issue a Travel Document (FA Form
79(B)) valid for direct travel to the Philippines.
The Post concerned shall report to the DFA,
through the OUMWA, copy furnished the Office
of Consular Affairs, the actual date of
repatriation and other pertinent information and
submit a copy of the sworn statement and other
relevant documents.
In appropriate cases, especially when the victim
is suffering from mental illness, has suffered
physical or sexual abuse or has received serious
threats to his or her life and safety, the victim will
be
met upon arrival in the Philippines by DSWD
personnel, in coordination with the Joint Task
Force Against Trafficking in Persons and other
government agencies such as OWWA, BI and
DOH. In the case of mentally ill patients, minors,
and other persons requiring special care, the
Post shall designate a duly authorized individual
to escort said victims to the Philippines.
The victim will be encouraged, if he or she has
not done so before, to execute a sworn
statement with the view of filing the appropriate
charges against the suspected trafficker in the
Philippines. Should the victim request the
assistance of DFA, OUMWA shall interview the
victim and make recommendations for
investigation with law enforcement agencies
such as the PNP and the NBI. In cases where
recruitment agencies are involved, the case
shall also be referred to the POEA for
appropriate action. The report shall also be
forwarded to the BI for case build up. The victim
may be referred to the DSWD/Local Social
Welfare
And Development Office or to the NBI One-Stop
Shop for psychosocial interventions,
psychological and medical examination and
follow-through therapy sessions. Protective
custody and emergency shelter shall also be
provided to the victim, in appropriate cases.
Sec. 32. Rescue Within the Country. Rescue
operations within the country shall be primarily
undertaken by the law enforcement agencies in
coordination with LGUs, DOLE, DSWD and
DOH. Upon receipt of a report of a suspected or
alleged trafficking ncident or activity, the law
enforcement agency to which the report is made
shall conduct rescue operations of trafficked
persons. At the minimum, rescue operations
shall be guided by the following:
(a) Conduct of rescue operation of trafficked
persons shall be properly coordinated with the
concerned agencies particularly DSWD/local
social welfare and development officer;
(b) The rescue team shall ensure full protection
of the rights of the trafficked person as well as
the traffickers while under its custody and
control;
(c) After the rescue operation, the investigation
of the case shall be referred to the Women and
Children Complaint Desk (WCCD) desk of PNP,
the Violence Against Women and Children
Division (VAWCD) of the NBI or other similar
units or desks;
(d) After the completion of the necessary
documents for the filing of cases, the rescue
team shall effect the appropriate and immediate
turn-over of the trafficked person to DSWD/local
social welfare and development officer; and
(e) In the course of investigation of the trafficked
person, the investigator handling the case shall
ensure that
the victim shall be accorded with proper
treatment and investigated in a child-friendly and
gender-sensitive
environment. In the conduct of investigative
interviews on children, the law enforcers shall
likewise be guided by the Rule on the
Examination of a Child Witness promulgated by
Supreme Court, as may be applicable. For this
purpose, the investigators shall be properly
trained in the handling of cases of trafficked
persons.
Article IX
REHABILITATION AND
REINTEGRATION OF VICTIMS
Sec. 33. Comprehensive Program. The
DSWD, LGUs and other concerned agencies
shall provide a comprehensive, gendersensitive
Duman / Labor I / Prof. Battad / Page 49
and child friendly program for the recovery,
rehabilitation
and reintegration of victims/survivors of
trafficking, such as but not limited to the
following:
(a) Implementation of residential care, child
placement, educational assistance, livelihood
and skills training
and other community-based services must be
responsive to the specific needs and problems
of the victims/survivors and their families;
(b) Active involvement and participation of the
victims/survivors in the rehabilitation and
reintegration process shall be encouraged. In
order to empower them and to prevent their re-
victimization, capability building programs must
be provided; and Law, Rules and Local
Instruments 5 3
(c) Active cooperation and coordination with
NGOs and other members of the civil society
including the business community, tourism-
related industries as well as the media in the
rehabilitation and reintegration of
victims/survivors shall be undertaken.
Sec. 34 Procedure. The following procedure
shall be undertaken in implementing a
comprehensive program for the recovery,
rehabilitation and reintegration of
victims/survivors of trafficking:
(a) The victim/survivor of trafficking may go to
the nearest DSWD/LGU Social Welfare and
Development Office for assistance;
(b) Upon referral/interview the DSWD/Local
Government Social Worker shall conduct an
intake assessment
to determine appropriate intervention with the
victim/survivor;
(c) The social worker shall prepare a social case
study report/case summary for the
victim/survivors admission to a residential
facility for temporary shelter or community-
based services;
(d) Provide services/interventions based on the
rehabilitation plan in coordination with
appropriate agencies,
e.g. counseling, legal, medical and educational
assistance; livelihood and/or skills training; as
well as appropriate services to the family of the
trafficked victim/survivor; and
(e) Monitor implementation and periodically
evaluate/update the rehabilitation plan until the
victim/ survivor has been reintegrated with
his/her family and community.
Sec. 35. Capability Building of Service
Providers. The frontline agencies and the
service providers must undergo training and
other capability building activities to enhance
their knowledge and skills in handling cases of
trafficking to prevent exacerbation of traumatic
stress and facilitate more effective crisis
interventions, healing and reintegration services.
Sec. 36. Documentation. Data banking,
research and documentation of best practices in
rehabilitation and reintegration programs shall
be conducted to identify efficient and effective
measures and services for the victims of
trafficking and their families.
Article X
PROSECUTION, CIVIL FORFEITURE AND
RECOVERY OF CIVIL DAMAGES
Sec. 37. Who May File a Complaint.
Complaints for violations of the Act may be filed
by the following:
(a) Any person who has personal knowledge of
the commission of the offense;
(b) The trafficked person or the offended party;
(c) Parents or legal guardians;
(d) Spouse;
(e) Siblings; or
(f) Children.
The foregoing persons may also seek the
assistance of the Council in the filing of
complaint.
Sec. 38. Institution of Criminal Action; Effect.
The institution of the criminal action before the
Office of the Prosecutor or the court, as the case
may be, for purposes of preliminary investigation
shall interrupt the running of the period for
prescription of the offense charged. The
prescriptive period shall commence to run again
when such proceedings terminate without the
accused being convicted or acquitted or are
unjustifiably stopped for any reason not
imputable to the accused.
Sec. 39. Institution of Criminal and Civil
Actions. Pursuant to the Revised Rules on
Criminal Procedure, when a criminal action is
instituted, the civil action arising from the offense
charged shall be deemed instituted with the
criminal action unless the offended party waives
the civil action, reserves the right to institute it
separately or institutes the civil action prior to
the criminal action.
Sec. 40. Exemption from Filing Fees. When
the trafficked person institutes a separate civil
action for the recovery of civil damages, he/she
shall be exempt from the payment of filing fees.
Sec. 41. Venue. The offenses punishable under
the Act shall be considered as a continuing
offense and may be filed in the place where the
Duman / Labor I / Prof. Battad / Page 50
offense was committed or where any of its
elements occurred or where the trafficked
person actually resides at the time of the
commission of the offense. Provided, that the
court where the criminal action is first filed shall
acquire jurisdiction to the exclusion of other
courts.
Sec. 42. Forfeiture of the Proceeds and
Instruments Derived from Trafficking in
Persons.
(a) After conviction, all proceeds and
instruments, including any real or personal
property used in the commission of the offense,
shall be ordered confiscated and forfeited in
favor of the State unless the owner thereof can
prove the lack of knowledge of the use of such
property in the said illegal activity. Any award for
damages arising from the commission of the
offense may be satisfied and charged against
the personal and
separate properties of the offender and if the
same is insufficient to satisfy the claim, the
balance shall be taken from the forfeited
properties as may be ordered by the court.
(b) During the pendency of the criminal action,
no property or income used or derived therefrom
which are subject to confiscation and forfeiture,
shall be disposed, alienated or transferred and
the same shall be in custodia legis and no bond
shall be admitted for the release of the same.
(c) The trial prosecutor shall avail of the
provisional remedies in criminal cases to ensure
the confiscation,
preservation and forfeiture of the said properties.
(d) If the offender is a public officer or employee,
the forfeiture of his/her property found to be
unlawfully acquired shall be governed by
Republic Act No. 1379 otherwise known as An
Act Declaring Forfeiture in Favor of the State
Any Property Found to Have Been Unlawfully
Acquired by Any Public Officer or Employee and
Providing for the Proceedings Therefore.
Article XI
LEGAL PROTECTION AND OTHER
SERVICES
Sec. 43. Legal Protection. Trafficked persons
shall be recognized as victims of the act or acts
of trafficking. As such, they shall not be
penalized for crimes directly related to the acts
of trafficking enumerated under the Act or in
obedience to the order made by the trafficker in
relation thereto. In this regard, the consent of the
trafficked person to the intended exploitation set
forth in the Act shall be irrelevant.
Sec. 44. Preferential Entitlement under the
Witness Protection Program. Any provision of
Republic Act No. 6981 to the contrary
notwithstanding, any trafficked person shall be
entitled to the witness protection program
provided therein.
Sec. 45. Immunity from Criminal
Prosecution. Any person who has personal
knowledge in the commission of any of the
offenses penalized under the Act and who
voluntarily gives material information relative
thereto and willingly testifies against the offender
shall be exempt from prosecution for the offense
with reference to which his information and
testimony were given, subject to the following
conditions:
(a) The information and testimony are necessary
for the conviction of the accused; and
(b) Such information and testimony are not yet in
the possession of the state.
Sec. 46. Mandatory Services. To ensure
recovery, rehabilitation and reintegration into the
mainstream of society, concerned government
agencies shall make available the following
services to trafficked persons:
(a) Emergency shelter or appropriate housing;
(b) Counseling;
(c) Free legal services which shall include
information about the victims rights and the
procedure for filing complaints, claiming
compensation and such other legal remedies
available to them, in a language understood by
the trafficked person;
(d) Medical or psychological services;
(e) Livelihood and skills training; and
(f) Educational assistance to a trafficked child.
Sustained supervision and follow through
mechanism that will track the progress of
recovery, rehabilitation and reintegration of the
trafficked persons shall be adopted and carried
out.
Sec. 47. Legal Protection of Trafficked
Persons Who are Foreign Nationals.
Trafficked persons in the Philippines who are
nationals of a foreign country shall be entitled to
appropriate protection, assistance and services
available to the trafficked persons and shall be
allowed to continued presence in the Philippines
for a period of fifty-nine (59) days to enable them
to effect the prosecution of the offenders. Such
period may be renewed upon showing of proof
by the trial prosecutor that their further testimony
is essential to the prosecution of the case. The
trial prosecutor shall course his request for
extension to the Council which shall accordingly
act upon the same. If such request is granted,
the registration and immigration fees of
such foreign nationals shall be waived. The
Council, for this purpose, shall develop
additional
guidelines to implement this provision.
Article XII
TRUST FUND
Duman / Labor I / Prof. Battad / Page 51
Sec. 48. Trust Fund; Sources. All fines
imposed under the Act and the proceeds and
properties forfeited and confiscated pursuant to
Section 14 of the Act and Article IX, Section 5 of
these rules and
regulations shall accrue to a Trust Fund to be
administered and managed by the Council.
Sec. 49. Utilization. The Trust Fund shall be
used exclusively for programs that will prevent
acts of trafficking and protect, rehabilitate,
reintegrate trafficked persons into the
mainstream of society. Such programs shall
include, but not limited to the following:
(a) Provision for mandatory services set forth in
Section 23 of the Act; and Section 47 of these
Rules and
Regulations.
(b) Sponsorship of a national research program
on trafficking and establishment of a data
collection system for monitoring and evaluation
purposes;
(c) Provision of necessary technical and material
support services to appropriate government
agencies and nongovernment organizations
(NGOs);
(d) Sponsorship of conferences and seminars to
provide venue for consensus building among the
public, the academe, government, NGOs and
international organizations; and
(e) Promotion of information and education
campaign on trafficking.
The Trust Fund may also be used to support the
operations of the Secretariat.
Sec. 50. Use and Disbursement of Trust
Fund. The use and disbursement of the trust
fund shall be subject to the approval of at least
two-thirds (2/3) of the members of the Council
and shall be
governed by existing government accounting
and auditing rules and regulations.
Article XIII
INTERNATIONAL COOPERATION
Sec. 51. International Cooperation. The
Council, in close coordination with the DFA and
other concerned agencies, shall promote
cooperation, technical assistance and
partnership among governments and regional
and international organizations on the following
aspects:
(a) Prevention, protection, prosecution,
repatriation and reintegration aspects of
trafficking in persons, especially women and
children;
(b) Systematic exchange of information and
good practices among law enforcement and
immigration authorities;
(c) Prevention, detection, investigation and
prosecution of trafficking in persons, including
the protection
of victims through exchanges and joint training
at the bilateral, regional and international levels,
between and among relevant officials including
police, judges, prosecutors, immigration officers,
other law enforcement agents as well as
consular authorities; and
(d) Repatriation of victims of trafficking with due
regard to their safety and in consideration of
humanitarian
and compassionate factors.
Article XIV
CONFIDENTIALITY
Sec. 52. Confidentiality. At any stage of the
investigation, prosecution and trial of an offense
under this Act, law enforcement officers,
prosecutors, judges, court personnel and
medical practitioners, as well as parties to the
case, shall recognize the right to privacy of the
trafficked person and the accused. Towards this
end, law enforcement officers, prosecutors and
judges to whom the complaint has been referred
may, whenever necessary to ensure a fair and
impartial proceeding, and after considering all
circumstances for the best interest of the parties,
order a closed-door investigation, prosecution or
trial. The name and personal circumstances of
the trafficked person or of the accused, or any
other information tending to establish their
identities and such circumstances or information
shall not be disclosed to the public. In case
when the prosecution or trial is conducted
behind closed doors, it shall be unlawful for any
editor, publisher, reporter or columnist in case of
printed materials, announcer or producer in case
of television and radio, producer and director of
a film in case of the movie industry, or any
person utilizing tri-media or information
technology to cause publicity of and case of
trafficking in persons.
Article XV
OFFENSES AND PENALTIES
Sec. 53. Acts of Trafficking in Persons. Any
person, natural or juridical, who commits any of
the following acts shall suffer the penalty of
imprisonment of twenty (20) years and a fine of
not less than One million pesos (P1,000,000.00)
but not more than Two million pesos
(P2,000,000.00):
(a) To recruit, transport, transfer, harbor, provide,
or receive a person by any means, including
those done under the pretext of domestic or
overseas employment or training or
apprenticeship, for the purpose of prostitution,
Duman / Labor I / Prof. Battad / Page 52
pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
(b) To introduce or match for money, profit or
material, economic or other consideration, any
person or, as
provided for under Republic Act No. 6955, any
Filipino woman with a foreign national, for
marriage for the purpose of acquiring, buying,
offering, selling or trading him/her to engage in
prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or
debt bondage;
(c) To offer or contract marriage, real or
simulated, for the purpose of acquiring, buying,
offering, selling, or trading them to engage in
prostitution, pornography, sexual exploitation,
forced labor or slavery, involuntary servitude or
debt bondage;
(d) To undertake or organize tours and travel
plans consisting tourism packages or activities
for the purpose of utilizing and offering persons
for prostitution, pornography or sexual
exploitation;
(e) To maintain or hire a person to engage in
prostitution or pornography;
(f) To adopt or facilitate the adoption of persons
for the purpose of prostitution, pornography,
sexual exploitation,forced labor, slavery,
involuntary servitude or debt bondage;
(g) To recruit, hire, adopt, transport or abduct a
person, by means of threat or use of force,
fraud, deceit, violence, coercion, or intimidation
for the purpose of removal or sale of organs of
said person; and
(h) To recruit, transport or adopt a child to
engage in armed activities in the Philippines or
abroad.
Sec. 54. Acts that Promote Trafficking in
Persons. Any person, natural or juridical, who
shall commit the following acts which promote or
facilitate trafficking in persons, shall be
penalized with the penalty of imprisonment of
fifteen (15) years and a fine of not less than Five
hundred thousand pesos (P500,000.00) but not
more than One million pesos (P1,000,000.00):
(a) To knowingly lease or sublease, use or allow
to used any house, building or establishment for
the purpose of promoting trafficking in persons;
(b) To produce, print and issue or distribute
unissued, tampered or fake counseling
certificates, registration stickers and certificates
of any government agency which issues these
certificates and stickers as proof of compliance
with government regulatory and pre-departure
requirements for the purpose of promoting
trafficking in persons;
(c) To advertise, publish, print, broadcast or
distribute, or cause the advertisement,
publication, printing,
broadcasting or distribution by any means,
including the use of information technology and
the internet of any brochure, flyer, or any
propaganda material that promotes trafficking in
persons;
(d) To assist in the conduct of misrepresentation
or fraud for purposes of facilitating the
acquisition of clearances and necessary exit
documents from government agencies that are
mandated to provide pre-departure registration
and services for departing persons for the
purpose of promoting trafficking
in persons;
(e) To facilitate, assist or help in the exit and
entry of persons from/to the country at
international and local airports, territorial
boundaries and seaports who are in possession
of unissued, tampered or fraudulent and travel
documents for the purpose of promoting
trafficking in persons;
(f) To confiscate, conceal, or destroy the
passport, travel documents, or personal
documents or belongings of trafficked persons in
furtherance of trafficking or to prevent them from
leaving the country or seeking redress from the
government or appropriate agencies; and
(g) To knowingly benefit from, financial or
otherwise or make use of, the labor or services
of a person held to a condition of involuntary
servitude, forced labor , or slavery.
Sec. 55. Qualified Trafficking in Persons. The
following are considered as qualified trafficking
and shall be penalized with the penalty of life
imprisonment and a fine of not less than Two
million pesos (2,000,000.00) but not more than
Five million pesos (5,000,000.00);
(a) When the trafficked person is a child;
(b) When the adoption is effected through
Republic Act No. 8043, otherwise known as the
Inter-Country Adoption Act of 1995 and said
adoption is for the purpose of prostitution,
pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
(c) When the crime is committed by a syndicate ,
or in large scale. Trafficking is deemed
committed by a syndicate if carried out by a
group of three (3) or more persons conspiring or
confederating with one another. It is deemed
committed in large scale if committed against
three (3) or more persons ,
individually or as a group;
(d) When the offender is an ascendant, parent,
sibling, guardian or a person who exercises
authority over the trafficked person or when the
offense is committed by a public officer or
employee;
(e) When the trafficked person is recruited to
engage in prostitution with any member of the
military or law
enforcement agencies;
(f) When the offender is a member of the military
orlaw enforcement agencies; and
(g) When by reason or on occasion of the act of
trafficking in persons, the offended party dies,
becomes insane, suffers mutilation or is afflicted
Duman / Labor I / Prof. Battad / Page 53
with Human Immunodeficiency Virus HIV or the
Acquired Immune Deficiency Syndrome (AIDS).
Sec. 56. Violation of Confidentiality
Provisions. Any person who violates Section 7
of the Act and Section 52, Article XIV hereof
shall suffer the penalty of imprisonment of six (6)
years and a fine not less than Five hundred
thousand pesos (P500,000.00) but not more
than One million pesos (P1,000,000.00).
Sec. 57. Application of Penalties and Other
Sanctions. The following shall be applied in the
imposition of penalties:
(a) If the offender is a corporation, partnership,
association, club, establishment or any judicial
person, the
penalty shall be imposed upon the owner,
president, partner, manager, and/or any
responsible officer who participated in the
commission of the crime or who shall have
knowingly permitted or failed to prevent its
commission;
(b) The registration with the Securities and
exchange Commission (SEC) and license to
operate of the erring agency, corporation,
association, religious group, tour or travel agent,
club or establishment, or any place or
entertainment shall be cancelled and revoked
permanently. The owner, president, partner or
manager thereof shall not be allowed to operate
similar establishment in a different name;
(c) If the offender is a foreigner, he shall be
immediately deported after serving his sentence
and be barred
permanently from entering the country;
(d) Any employee or official of government
agencies who shall issue or approve the
issuance of travel exit clearances, passports,
registration certificates, counseling certificates,
marriage license, and other similar documents to
persons, whether judicial or natural, recruitment
agencies, establishments or other individuals or
groups, who fail to observe the prescribed
procedures and the requirement as provided for
by laws, rules and regulations, shall be held
administratively liable, without prejudice to
criminal liability under the Act. The concerned
government official or employee shall, upon
conviction, be dismissed from the service and be
barred permanently to hold public office. His/her
retirement and other benefits shall likewise be
forfeited; and
(e) Conviction by final judgment of the adopter
for any offense under this Act shall result in the
immediate
rescission of the decree of adoption.
Sec. 58. Use of Trafficked Persons. Any
person who buys or engages the services of
trafficked persons for prostitution shall be
penalized as follows:
(a) First offense six (6) months of community
service as may be determined by the court and
a fine of Fifty thousand pesos (P50,000.00); and
(b) Second and subsequent offenses
imprisonment of one year (1) year and a fine of
One hundred thousand pesos (P100,000.00).
The Council shall coordinate with the Supreme
Court through the Office of the Court
Administrator for the issuance of appropriate
guidelines and measures for the judiciary to
implement this provision particularly on the
aspect of implementing the penalty of
community service.
Article XV
FUNDING
Sec. 59. Inclusion in Agency Appropriations.
The heads of departments and agencies
concerned shall immediately include in their
annual appropriations the funding necessary to
implement programs and services required by
the Act and these regulations.
In the interim, the funding necessary to carry out
their mandate under the law may be charged
against their Gender and Development (GAD)
budget.
Article XVII
FINAL PROVISIONS
Sec. 60. Non-Restriction of Freedom of
Speech and of Association, Religion and the
Right to Travel. Nothing in these rules and
regulations shall be interpreted as a restriction of
the freedom and of association, religion and the
right to travel for purposes not contrary to law as
guaranteed by the Constitution.
Sec. 61. Saving Clause. The provisions of
Republic Act No. 7610, otherwise known as the
Special Protection of Children Against Child
Abuse, Exploitation and Discrimination Act shall
remain applicable and shall not in any way be
amended or repealed by the provisions of the
Act and these rules and regulations.
Sec. 62. Separability Clause. The declaration
of invalidity of any provision of these rules and
regulations or part thereof shall not affect the
validity of the remaining provisions.
Sec. 63. Repealing Clause. Pertinent
provisions of all laws, presidential decrees,
executive orders and rules and regulations, or
parts thereof, contrary to or inconsistent with the
provisions of the Act and these rules and
regulations are hereby repealed or modified
accordingly.
Duman / Labor I / Prof. Battad / Page 54
 Sec. 64. Effectivity. These rules and regulations
shall take effect fifteen (15) days after its
complete publication in at least two (2)
newspapers of general circulation.
7. Alien Employment Regulation
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book
I, Rule XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines
for Issuance of Employment Permits to Foreign
Nationals); Const., Art. XII, Sec. 12
a. Coverage
Almodiel v. NLRC, 223 SCRA 341 (1993)
c.
b. Conditions for grant of Permit, Omnibus Guidelines,
Rule III. 1, 2, 3
RULE III. Revocation/Cancellation of Employment
Permits Issued
1. The permits issued may, motu proprio or
upon a petition, be cancelled or revoked
based on any of the following grounds:
1.1 Misrepresentation of facts or falsification
of the documents submitted;
1.2 The foreign national has been declared
as an undesirable alien by competent
authorities;
1.3 Non-compliance with the conditions for
which the AEP was issued;
1.4 Failure to renew AEP within one (1) year
after its expiration.
2. Petitions for cancellation or revocation of
permits issued shall be resolved within thirty
(30) calendars from receipt thereof.
3. Any aggrieved party may file a Motion for
Reconsideration and/or Appeal and the
same shall be resolved based on Paragraph
4 of this Rule.
General Milling Corp. v. Torres, 196 SCRA 215 (1991)
Validity of AEP, Omnibus Rules, Rule II.7
7. Validity of Permits - The validity of permits shall
be as follows:
7.1 As a general rule, the validity of permits
shall be for a period of one (1) year, unless
the employment contract, consultancy
services, or other modes of engagement or
term of office for elective officers, provides
for a longer period.
7.2 The effectivity of the renewal shall be on
the day after the expiration of the previous
permit, regardless of whether or not the
renewal is granted before or after the
expiration of the previous permit.
7.3 As a general rule, the permits shall be
Duman / Labor I / Prof. Battad / Page 55
 valid only for the position and the employer
for which it was issued, except in case of
foreign nationals who are holders of multiple
positions in one corporation, where one AEP
shall be valid for such multiple positions.
7.4 The permits of resident foreign nationals
shall be valid for multiple employers,
regardless of the nature and duration of their
employment, provided that they shall report
changes in their employment status and the
identity of their employers to the DOLE
Regional Office which has issued the permit.
d. Revocation/Cancellation/Grounds, Omnibus
Guidelines, Rule III.1
RULE III. Revocation/Cancellation of Employment
Permits Issued
1. The permits issued may, motu proprio or upon a
petition, be cancelled or revoked based on any of
the following grounds:
1.1 Misrepresentation of facts or falsification of the
documents submitted;
1.2 The foreign national has been declared as
an undesirable alien by competent authorities;
1.3 Non-compliance with the conditions for
which the AEP was issued;
1.4 Failure to renew AEP within one (1) year
after its expiration.
E. Human Resources Development
Reference: Arts. 57-81; Technical Education and
Skills Development Authority Act of 1994 (TESDA)
(RA 7796); Dual Training Systems Act of 1994 (RA
7686); Magna Carta for Disabled Persons (RA 7277)
1. Policy Objectives, RA 7796, Secs. 2-3
SEC. 2. Declaration of Policy. - I t is hereby declared
the policy of the State to provide relevant, accessible,
high quality and efficient technical education and skills
development in support of the development of high
quality Filipino middle-level manpower responsive to
and in accordance with Philippine development goals
and priorities.
The State shall encourage active participation of
various concerned sectors, particularly private
enterprises, being direct participants in and immediate
beneficiaries of a trained and skilled workforce, in
providing technical education and skills development
opportunities.
SEC. 3. Statement of Goals and Objectives. - It is the
goal and objective of this Act to:
Promote and strengthen the quality of technical
education and skills development programs to attain
international competitiveness;
Focus technical education and skills development on
meeting the changing demands for quality middle-level
manpower;
Encourage critical and creative thinking by disseminating
the scientific and technical knowledge base of middle-level
manpower development programs;
Recognize and encourage the complementary roles of
public and private institutions in technical education and
skills development and training systems; and
Inculcate desirable values through the development of
moral character with emphasis on work ethic, self-discipline,
self-reliance and nationalism.
2. Apprentice
a. Definition, RA 7796, Sec. 4 (j)
"Apprentice" is a person undergoing training for an
approved apprenticeable occupation during an
apprenticeship agreement;
b. Apprenticeable Occupation, RA 7796, Sec. 4 (m)
(m) "Apprenticeable Occupation" is an occupation
officially endorsed by a tripartite body and approved
for apprenticeship by the authority;
c. Qualification, RA 7610, as amended by RA 7658, Sec.
12
REPUBLIC ACT NO. 7658
AN ACT PROHIBITING THE EMPLOYMENT OF
CHILDREN BELOW 15 YEARS OF AGE IN PUBLIC
AND PRIVATE UNDERTAKINGS, AMENDING FOR
THIS PURPOSE SECTION 12, ARTICLE VIII OF R.
A. 7610.
Section 1. Section 12, Article VIII of R. A. No. 7610
otherwise known as the "Special Protection of
Children Against Child Abuse, Exploitation and
Discrimination Act" is hereby amended to read as
follows:
"Sec. 12. Employment of Children. Children
below fifteen (15) years of age shall not be
employed except:
(1) When a child works directly under the sole
responsibility of his parents or legal guardian and
where only members of the employer's family are
employed: Provided, however, That his
employment neither endangers his life, safety,
health and morals, nor impairs his normal
development; Provided, further, That the parent or
legal guardian shall provide the said minor child
with the prescribed primary and/or secondary
education; or
(2) Where a child's employment or participation in
public entertainment or information through
cinema, theater, radio or television is essential:
Provided, The employment contract is concluded
by the child's parents or legal guardian, with the
express agreement of the child concerned, if
possible, and the approval of the Department of
Labor and Employment: and Provided, That the
Duman / Labor I / Prof. Battad / Page 56
 following requirements in all instances are strictly
complied with:
(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.
The Department of Labor and Employment shall
promulgate rules and regulations necessary for
the effective implementation of this Section."
Sec. 2. All laws, decrees, executive orders, rules
and regulations or parts thereof contrary to, or
inconsistent with this Act are hereby modified or
repealed accordingly.
Sec. 3. This Act shall take effect fifteen (15) days
after its complete publication in the Official
Gazette or in at least two (2) national newspapers
or general circulation whichever comes earlier.
Approved: November 9, 1993
d. Allowed Employment; Requirement Program Approval
4.
Nitto Enterprises v. NLRC, 258 SCRA 654 (1995)
5.
e. Terms and Conditions of Employment, Art. 61, 72
ART. 61. Contents of apprenticeship agreements. -
Apprenticeship agreements, including the wage rates
of apprentices, shall conform to the rules issued by
the Secretary of Labor and Employment. The period
of apprenticeship shall not exceed six months.
Apprenticeship agreements providing for wage rates
below the legal minimum wage, which in no case shall
start below 75 percent of the applicable minimum
wage, may be entered into only in accordance with
apprenticeship programs duly approved by the
Secretary of Labor and Employment. The Department
shall develop standard model programs of
apprenticeship. (As amended by Section 1, Executive
Order No. 111, December 24, 1986).
ART. 72. Apprentices without compensation. - The
Secretary of Labor and Employment may authorize
the hiring of apprentices without compensation whose
training on the job is required by the school or training
program curriculum or as requisite for graduation or
board examination.
3. Costs, Art. 71
ART. 71. Deductibility of training costs. - An additional
deduction from taxable income of one-half (1/2) of the
value of labor training expenses incurred for developing
the productivity and efficiency of apprentices shall be
granted to the person or enterprise organizing an
apprenticeship program: Provided, That such program is
duly recognized by the Department of Labor and
Employment: Provided, further, That such deduction shall
not exceed ten (10%) percent of direct labor wage: and
Provided, finally, That the person or enterprise who wishes
to avail himself or itself of this incentive should pay his
apprentices the minimum wage.
Enforcement, Arts. 65, 66, 67
ART. 65. Investigation of violation of apprenticeship
agreement. - Upon complaint of any interested person
or upon its own initiative, the appropriate agency of
the Department of Labor and Employment or its
authorized representative shall investigate any
violation of an apprenticeship agreement pursuant to
such rules and regulations as may be prescribed by
the Secretary of Labor and Employment.
ART. 66. Appeal to the Secretary of Labor and
Employment. - The decision of the authorized agency
of the Department of Labor and Employment may be
appealed by any aggrieved person to the Secretary of
Labor and Employment within five (5) days from
receipt of the decision. The decision of the Secretary
of Labor and Employment shall be final and
executory.
ART. 67. Exhaustion of administrative remedies. - No
person shall institute any action for the enforcement
of any apprenticeship agreement or damages for
breach of any such agreement, unless he has
exhausted all available administrative remedies.
Learners
a. Definition, RA 7796, Sec. 4
(n) Learners" refer to persons hired as trainees in semi-
skills and other industrial occupations which are non-
Duman / Labor I / Prof. Battad / Page 57
apprenticeable. Learnersship programs must be approved
by the Authority;
b. Allowed Employment, Art. 74 (b)
ART. 74. When learners may be hired. - Learners may be
employed when no experienced workers are available, the
employment of learners is necessary to prevent
curtailment of employment opportunities, and the
employment does not create unfair competition in terms of
labor costs or impair or lower working standards.
c. Terms and Conditions of Employment, Arts. 75, 76
ART. 75. Learnership agreement. - Any employer
desiring to employ learners shall enter into a
learnership agreement with them, which agreement
shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which
shall not exceed three (3) months;
(c) The wages or salary rates of the learners which
shall begin at not less than seventy-five percent
(75%) of the applicable minimum wage; and
(d) A commitment to employ the learners if they so
desire, as regular employees upon completion of
the learnership. All learners who have been allowed
or suffered to work during the first two (2) months
shall be deemed regular employees if training is
terminated by the employer before the end of the
stipulated period through no fault of the learners.
The learnership agreement shall be subject to
inspection by the Secretary of Labor and
Employment or his duly authorized representative.
ART. 76. Learners in piecework. - Learners
employed in piece or incentive-rate jobs during the
training period shall be paid in full for the work
done.
6. Differently-Abled Worker (Handicapped), RA 7277
a. Definition, RA 7277, Sec. 4 (a) (b) (c) (d)
Sec. 4. Definition of Terms. For purposes of
this Act, these terms are defined as follows:
(a) Disabled persons are those suffering from
restriction or different abilities, as a result of a
mental, physical or sensory impairment, to
perform an activity in the manner or within the
range considered normal for a human being;
(b) Impairment is any loss, diminution or
aberration of psychological, physiological, or
anatomical structure or function;
(c) Disability shall mean 1) a physical or mental
impairment that substantially limits one or more
psychological, physiological or anatomical
function of an individual or activities of such
individual; 2) a record of such an impairment; or
3) being regarded as having such an impairment;
(d) Handicap refers to a disadvantage for a given
individual, resulting from an impairment or a
disability, that limits or prevents the function or
activity, that is considered normal given the age
and sex of the individual;
b. Policy Declaration, RA 7277, Sec. 2
Sec. 2. Declaration of Policy The grant of the
rights and privileges for disabled persons shall be
guided by the following principles:
(a) Disabled persons are part of Philippine
society, thus the State shall give full support to
the improvement of the total well-being of
disabled persons and their integration into the
mainstream of society. Toward this end, the State
shall adopt policies ensuring the rehabilitation,
self-development and self-reliance of disabled
persons. It shall develop their skills and potentials
to enable them to compete favorably for available
opportunities.
(b) Disabled persons have the same rights as
other people to take their proper place in society.
They should be able to live freely and as
independently as possible. This must be the
concern of everyone the family, community and
all government and nongovernment
organizations. Disabled persons' rights must
never be perceived as welfare services by the
Government.
(c) The rehabilitation of the disabled persons shall
be the concern of the Government in order to
foster their capacity to attain a more meaningful,
productive and satisfying life. To reach out to a
greater number of disabled persons, the
rehabilitation services and benefits shall be
expanded beyond the traditional urban-based
centers to community based programs, that will
ensure full participation of different sectors as
supported by national and local government
agencies.
(d) The State also recognizes the role of the
private sector in promoting the welfare of
disabled persons and shall encourage partnership
in programs that address their needs and
concerns.
(e) To facilitate integration of disabled persons
into the mainstream of society, the State shall
advocate for and encourage respect for disabled
persons. The State shall exert all efforts to
remove all social, cultural, economic,
environmental and attitudinal barriers that are
prejudicial to disabled persons.
c. Coverage, RA 7277, Sec. 3
Sec. 3. Coverage. This Act shall cover all disabled
persons and, to the extent herein provided,
departments, offices and agencies of the National
Government or nongovernment organizations
involved in the attainment of the objectives of this
Act.
d. Rights and Privileges, RA 7277, Secs. 5, 6, 7
Duman / Labor I / Prof. Battad / Page 58
 Sec. 5. Equal Opportunity for Employment. No
disable person shall be denied access to
opportunities for suitable employment. A qualified
disabled employee shall be subject to the same
terms and conditions of employment and the
same compensation, privileges, benefits, fringe
benefits, incentives or allowances as a qualified
able bodied person.
Five percent (5%) of all casual emergency and
contractual positions in the Departments of Social
Welfare and Development; Health; Education,
Culture and Sports; and other government
agencies, offices or corporations engaged in
social development shall be reserved for disabled
persons.
Sec. 6. Sheltered Employment If suitable
employment for disabled persons cannot be
found through open employment as provided in
the immediately preceding Section, the State shall
endeavor to provide it by means of sheltered
employment. In the placement of disabled
persons in sheltered employment, it shall accord
due regard to the individual qualities, vocational
goals and inclinations to ensure a good working
atmosphere and efficient production.
Sec. 7. Apprenticeship. Subject to the
provisions of the Labor Code as amended,
disabled persons shall be eligible as apprentices
or learners: Provided, That their handicap is not
as much as to effectively impede the performance
of job operations in the particular occupation for
which they are hired; Provided, further, That after
the lapse of the period of apprenticeship, if found
satisfactory in the job performance, they shall be
eligible for employment.
Bernardo v. NLRC & FEBTC, 310 SCRA 186 (1999)
e. Discrimination, RA 7277, Secs. 32, 33
Sec. 32. Discrimination on Employment. No
entity, whether public or private, shall
discriminate against a qualified disabled person
by reason of disability in regard to job application
procedures, the hiring, promotion, or discharge of
employees, employee compensation, job training,
and other terms, conditions, and privileges of
employment. The following constitute acts of
discrimination:
(a) Limiting, segregating or classifying a disabled
job applicant in such a manner that adversely
affects his work opportunities;
(b) Using qualification standards, employment
tests or other selection criteria that screen out or
tend to screen out a disabled person unless such
standards, tests or other selection criteria are
shown to be job-related for the position in
question and are consistent with business
necessity;
(c) Utilizing standards, criteria, or methods of
administration that:
(1) have the effect of discrimination on the basis
of disability; or
(2) perpetuate the discrimination of others who
are subject to common administrative control.
(d) Providing less compensation, such as salary,
wage or other forms of remuneration and fringe
benefits, to a qualified disabled employee, by
reason of his disability, than the amount to which
a non-disabled person performing the same work
is entitled;
(e) Favoring a non-disabled employee over a
qualified disabled employee with respect to
promotion, training opportunities, study and
scholarship grants, solely on account of the
latter's disability;
(f) Re-assigning or transferring a disabled
employee to a job or position he cannot perform
by reason of his disability;
(g) Dismissing or terminating the services of a
disabled employee by reason of his disability
unless the employer can prove that he impairs the
satisfactory performance of the work involved to
the prejudice of the business entity: Provided,
however, That the employer first sought to
provide reasonable accommodations for disabled
persons;
(h) Failing to select or administer in the most
effective manner employment tests which
accurately reflect the skills, aptitude or other
factor of the disabled applicant or employee that
such tests purports to measure, rather than the
impaired sensory, manual or speaking skills of
such applicant or employee, if any; and
(i) Excluding disabled persons from membership
in labor unions or similar organizations.
Duman / Labor I / Prof. Battad / Page 59
Sec. 33. Employment Entrance Examination.
Upon an offer of employment, a disabled
applicant may be subjected to medical
examination, on the following occasions:
(a) all entering employees are subjected to such
an examination regardless of disability;
(b) information obtained during the medical
condition or history of the applicant is collected
and maintained on separate forms and in separate
medical files and is treated as a confidential
medical record; Provided, however, That:
(1) supervisors and managers may be informed
regarding necessary restrictions on the work or
duties of the employees and necessary
accommodations;
(2) first aid and safety personnel may be informed,
when appropriate, if the disability may require
emergency treatment;
(3) government officials investigating compliance
with this Act shall be provided relevant
information on request; and
(4) the results of such examination are used only
in accordance with this Act.
f. Enforcement, Secs. 44, 45, 46
Sec. 44. Enforcement by the Secretary of Justice.
(a) Denial of Right
(1) Duty to Investigate the Secretary of Justice
shall investigate alleged violations of this Act, and
shall undertake periodic reviews of compliance of
covered entities under this Act.
(b) Potential Violations If the Secretary of
Justice has reasonable cause to believe that
(1) any person or group of persons is engaged in
a pattern or practice of discrimination under this
Act; or
(2) any person or group or persons has been
discriminated against under this Act and such
discrimination raises an issue of general public
importance, the Secretary of Justice may
commence a legal action in any appropriate
court.
Sec. 45. Authority of Court. The court may
grant any equitable relief that such court
considers to be appropriate, including, to the
extent required by this Act:
(a) granting temporary, preliminary or permanent
relief;
(b) providing an auxiliary aid or service,
modification of policy, practice or procedure, or
alternative method; and
(c) making facilities readily accessible to and
usable by individuals with disabilities.
Sec. 46. Penal Clause. (a) Any person who
violates any provision of this Act shall suffer the
following penalties:
(1) for the first violation, a fine of not less than
Fifty thousand pesos (P50,000.00) but not
exceeding One hundred thousand pesos
(P100,000.00) or imprisonment of not less than six
(6) months but not more than two (2) years, or
both at the discretion of the court; and
(2) for any subsequent violation, a fine of not less
than One hundred thousand pesos (P100,000.00)
but not exceeding Two hundred thousand pesos
(P200,000.00) or imprisonment for not less than
two (2) years but not more than six (6) years, or
both at the discretion of the court.
(b) Any person who abuses the privileges granted
herein shall be punished with imprisonment of not
less than six (6) months or a fine of not less than
Five thousand pesos (P5,000.00), but not more
than Fifty thousand pesos (P50,000.00), or both, at
the discretion of the court.
(c) If the violator is a corporation, organization or
any similar entity, the officials thereof directly
involved shall be liable therefor.
(d) If the violator is an alien or a foreigner, he shall
be deported immediately after service of sentence
without further deportation proceedings.
NOTES:
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Habol:
Alien Employment Regulation
Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book
I, Rule XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines
for Issuance of Employment Permits to Foreign
Nationals); Const., Art. XII, Sec. 12
Labor Code
Art. 12 (e) To regulate the employment of aliens,
including the establishment of a registration and/or
work permit system;
ART. 40. Employment permit of non-resident aliens. -
Any alien seeking admission to the Philippines for
employment purposes and any domestic or foreign
employer who desires to engage an alien for
employment in the Philippines shall obtain an
employment permit from the Department of Labor.
The employment permit may be issued to a non-
resident alien or to the applicant employer after a
determination of the non-availability of a person in
the Philippines who is competent, able and willing at
the time of application to perform the services for
which the alien is desired.
For an enterprise registered in preferred areas of
investments, said employment permit may be issued
upon recommendation of the government agency
charged with the supervision of said registered
enterprise.
ART. 41. Prohibition against transfer of employment.
- (a) After the issuance of an employment permit, the
alien shall not transfer to another job or change his
employer without prior approval of the Secretary of
Labor.
(b) Any non-resident alien who shall take up
employment in violation of the provision of this Title
and its implementing rules and regulations shall be
punished in accordance with the provisions of
Articles 289 and 290 of the Labor Code.
In addition, the alien worker shall be subject to
deportation after service of his sentence.
ART. 42. Submission of list. - Any employer
employing non-resident foreign nationals on the
effective date of this Code shall submit a list of such
nationals to the Secretary of Labor within thirty (30)
days after such date indicating their names,
citizenship, foreign and local addresses, nature of
employment and status of stay in the country. The
Secretary of Labor shall then determine if they are
entitled to an employment permit.
Omnibus Rules, Book I, Rule XIV
RULE XIV
Employment of Aliens
SECTION 1. Coverage. This Rule shall apply to all
aliens employed or seeking employment in the
Philippines, and their present or prospective
employers.
SECTION 2. Submission of list. All employers
employing foreign nationals, whether resident or
non-resident shall submit a list of such nationals to
the Bureau indicating their names, citizenship,
foreign and local addresses; nature of employment
and status of stay in the Philippines.
SECTION 3. Registration of resident aliens. All
employed resident aliens shall register with the
Bureau under such guidelines as may be issued by it.
SECTION 4. Employment permit required for entry.
No alien seeking employment, whether on resident or
non-resident status, may enter the Philippines
without first securing an employment permit from
the Department of Labor and Employment. If an alien
enters the country under a non-working visa and
wishes to be employed thereafter, he may only be
allowed to be employed upon presentation of a duly
approved employment permit.
SECTION 5. Requirements for employment permit
application. The application for an employment
permit shall be accompanied by the following:
(a) Curriculum vitae duly signed by the applicant
indicating his educational background, his work
experience and other data showing that he
possesses high technical skills in his trade or
profession;
(b) Contract of employment between the employer
and the principal which shall embody the following,
among others:
(1) That the non-resident alien worker shall comply
with all applicable laws and rules and regulations of
the Philippines;
(2) That the non-resident alien worker and the
employer shall bind themselves to train at least two
(2) Filipino understudies for a period to be
determined by the Secretary of Labor and
Employment; and
(3) That he shall not engage in any gainful
employment other than that for which he was issued
a permit.
(c) A designation by the employer of at least two (2)
understudies for every alien worker. Such
understudies must be the most ranking regular
employees in the section or department for which
the expatriates are being hired to ensure the actual
transfer of technology.
SECTION 6. Issuances of employment permit. The
Secretary of Labor and Employment may issue an
employment permit to the applicant based on:
a) Compliance by the applicant and his employer
with the requirements of Section 2 hereof;
b) Report of the Bureau Director as to the availability
or non-availability of any person in the Philippines
who is competent, able, and willing to do the job for
which the services of the applicant are desired;
c) His assessment as to whether or not the
employment of the applicant will redound to the
national interest;
Duman / Labor I / Prof. Battad / Page 61
d) Admissibility of the alien as certified by the
Commission on Immigration and Deportation;
e) The recommendation of the Board of Investments
or other appropriate government agencies if the
applicant will be employed in preferred areas of
investments or in accordance with imperatives of
economic developments; and
f) Payments of a P100.00 fee.
SECTION 7. Duration of employment permit.
Subject to renewal upon showing of good cause, the
employment permit shall be valid for a minimum
period of one (1) year starting from the date of its
issuance unless sooner revoked by the Secretary of
Labor and Employment for violation of any provisions
of the Code or of these Rules.
SECTION 8. Advice to Commission on Immigration
and Deportation. The Bureau shall advice the
Commission on Immigration and Deportation on the
issuance of an employment permit to an applicant.
SECTION 9. Understudy Training Program. The
employer shall submit a training program for his
understudies to the Bureau within thirty (30) days
upon arrival of the alien workers. The supervision of
the training program shall be the responsibility of the
Bureau and shall be in accordance with standards
established by the Secretary of Labor and
Employment.
Omnibus Guidelines for Issuance of
Employment Permits to Foreign Nationals DO
12, November 12, 2001.
DEPARTMENT ORDER NO. 12
(Series of 2001)
. Philippines under Rule 1 hereof or their
. prospective
OMNIBUS GUIDELINES FOR THE ISSUANCE OF
EMPLOYMENT PERMITS TO FOREIGN
NATIONALS.
.
. 2. Fees - The applicant shall pay filing, publication
Pursuant to the provisions of Articles 5 and 40 of
P. D. 442, as amended, the provisions of Rule XIV,
Book I of its Implementing Rules and Regulations,
Section 17(5), Chapter 4, Title VII of the
Administrative Code of 1987, the following
Omnibus Guidelines for the issuance of
Employment Permits are hereby promulgated:
Rule I
Coverage and Exemption
1. The following shall apply for Alien Employment
Permit (AEP):
1.1. All foreign nationals seeking admission to the
Philippines for the purpose of employment;
1.2. Missionaries or religious workers who intend
to engage in gainful employment;
1.3. Holders of Special Investors Resident Visa
(SIRV), Special Retirees Resident Visa (SRRV),
Treaty Traders Visa (9d) or Special Non-immigrant
Visa (47(a)2), who occupy any executive, advisory,
supervisory, or technical position in any
establishment;
1.4. Agencies, organizations or individuals
whether public or private, who secure the
services of foreign professionals to practice their
professions in the Philippines in the Philippines
under reciprocity and other international
agreements;
1.5. Non-Indo-Chinese Refugees who are asylum
seekers and given refugee status by the United
Nations High Commissioner on Refugees
(UNHCR) or the Department of Justice under DOJ
Department Order No. 94, series of 1998;
1.6. Resident foreign nationals seeking
employment in the Philippines.
2. Exemption. The following categories of foreign
nationals are exempt from securing an
employment permit in order to work in the
Philippines.
2.1 All members of the diplomatic services and
foreign government officials accredited by the
Philippine Government;
2.2 Officers and staff of international
organizations of which the Philippine government
is a cooperating member, and their legitimate
spouse desiring to work in the Philippines;
2.3 Foreign nationals elected as members of the
Governing board who do not occupy any other
position, but have only voting rights in the
corporation; and
2.4 All foreign nationals granted exemption by
special laws and all other laws that may be
promulgated by the Congress.
Rule II
Procedures in the Processing of Applications for
AEP
1. All foreign nationals seeking employment in the
employers, shall file their
applications with the DOLE Regional Office
having jurisdiction over the intended place of
work.
and permit fees in the amount of Eight thousand
pesos (P8,000.00) for each application for AEP
with a validity of one (1) year. Three thousand
pesos (P3,000.00) shall be charged for every
additional year of validity or a fraction thereof.
3. An AEP shall be issued based on the following:
3.1. Compliance bye the applicant employer or the
foreign national with the substantive and
documentary requirements;
3.2. Determination of the DOLE Secretary that
there is no Filipino national who is competent,
able and willing to do the job for which the
services of the applicant is desired;
3.3. Assessment of the DOLE Secretary that the
employment of the foreign national will redound
to national benefit;
4. Denial of Application for AEP - An application
for AEP may be denied based on the ground of
non-compliance with any of the requirements for
issuance of AEP or for misrepresentation of facts
in the application or submission of falsified or
tampered documents.
Duman / Labor I / Prof. Battad / Page 62
Foreign nationals whose applications have been
denied shall not be allowed to re-apply in any of
the DOLE Regional Offices.
5. Renewal of Permit - An application for renewal
of AEP shall be filed at least fifteen (15) days
before its expiration. For elective officers,
applications for renewal shall be filed upon
election or at least thirty (30) days before the
effectivity of the applicant's term of office if the
succeeding term of office is ascertained.
Failure to file the application for renewal of permit
within the prescribed period shall be subject to
fines of Five Thousand Pesos (5,000.00), if filed
within six (6) months after the prescribed period
and Ten Thousand Pesos (10,000.00), if filed after
six (6) months. Failure to renew the AEP within
one (1) year after its expiration shall be a cause
for its revocation or cancellation.
6. The employer shall notify the DOLE-RO which
issued the permit of the date of the assumption to
duty of the foreign national within thirty (30) days
from issuance of the permit.
7. Validity of Permits - The validity of permits shall
be as follows:
7.1. As a general rule, the validity of permits shall
be for a period of one (1) year, unless the
employment contract, consultancy services, or
other modes of engagement or term of office for
elective officers, provides for a longer period.
7.2. The effectivity of the renewal shall be on the
day after the expiration of the previous permit,
regardless of whether or not the renewal is
granted before or after the expiration of the
previous permit.
7.3. As a general rule, the permits shall be valid
only for the position and the employer for which it
was issued, except in case of foreign nationals
who are holders of multiple positions in one
corporation, where one AEP shall be valid for
such multiple positions.
7.4. The permits of resident foreign nationals shall
be valid for multiple employers, regardless of the
nature and duration of their employment,
provided that they shall report changes in their
employment status and the identity of their
employers to the DOLE Regional Office which has
issued the permit.
Rule III
Revocation/Cancellation of Employment Permits
Issued
1. The permits issued may, motu proprio or upon
a petition, be cancelled or revoked based on any
of the following grounds:
1.1 Misrepresentation of facts or falsification of
the documents submitted;
1.2 The foreign national has been declared as an
undesirable alien by competent authorities;
1.3 Non-compliance with the conditions for which
the AEP was issued;
1.4 Failure to renew AEP within one (1) year after
its expiration.
2. Petitions for cancellation or revocation of
permits issued shall be resolved within thirty (30)
calendars from receipt thereof.
3. Any aggrieved party may file a Motion for
Reconsideration and/or Appeal and the same shall
be resolved based on Paragraph 4 of this Rule.
4. Remedies in Case of Denial or Cancellation - A
Motion for Reconsideration maybe filed by an
aggrieved party within seven (7) calendar days
after receipt of the Order of Denial/Cancellation.
The DOLE Regional Director shall resolve the said
Motion for Reconsideration within ten (10)
calendar days from receipt thereof.
A motion for Reconsideration filed after the period
of seven (7) calendar days but within ten (10)
calendar days after receipt of the denial shall be
treated as an appeal.
An appeal from the decision of the DOLE Regional
Director may be filed with the Secretary of labor
and Employment within ten (10) calendar days
from receipt of an Order from the DOLE Regional
Director. The decision of the Secretary of Labor
and Employment shall be final and unappealable.
Rule IV
Penal and Transitory Provisions
1. The DOLE Regional Directors, after due notice
and hearing, shall have the power to order and
impose a fine of Five Thousand Pesos (P5,000.00)
on foreign nationals found working without an
AEP for less than one (1) year and Ten Thousand
Pesos (P10,000.00) for more than one (1) year.
2. All applications for employment
permit/certificates pending at the DOLE-RO upon
the effectivity of these Guidelines shall be
covered and processed under the provisions of
these Guidelines.
3. Holders of provisional and extended AEPs
issued under Memorandum dated 24 August 2001
regarding Alternative Interim Measures for the
Issuance of Alien Employment Permits, shall
apply for an AEP pursuant to these Guidelines on
or before the expiration of the provisional and
extended AEP.
4. Foreign nationals who are already working in
the country and who have not yet secured the
requisite employment permit shall have ninety
(90) days from the effectivity of these Guidelines
to secure the said employment permit without
penalty.
Rule V
Miscellaneous Provisions
1. Manual of Operations. - The Bureau of Local
Duman / Labor I / Prof. Battad / Page 63
 Employment shall issue a Manual of Operations to
implement the provisions of these Guidelines.
2. Separability Clause. - If any provision or part of
this Department Order or the application thereof
to any person or circumstance is held invalid by
the Courts, the remaining valid provisions of this
Department Order shall not be affected.
3. Repealing Clause. - All guidelines, rules and
regulations and agreements inconsistent herewith
are hereby repealed or modified accordingly.
4. Effectivity. - These guidelines shall take effect
fifteen (15) days after its publication in two (2)
newspapers of general circulation.
Constitution, Art. XII, Sec. 12
Section 12. The State shall promote the preferential
use of Filipino labor, domestic materials and locally
produced goods, and adopt measures that help make
them competitive.
F. Conditions of Work
Reference: Arts. 82-90; Omnibus Rules, Book III,
Rules l, lA, ll
Title I
WORKING CONDITIONS
AND REST PERIODS
Chapter I
HOURS OF WORK
ART. 82. Coverage. - The provisions of this Title shall
apply to employees in all establishments and
undertakings whether for profit or not, but not to
government employees, managerial employees, field
personnel, members of the family of the employer
who are dependent on him for support, domestic
helpers, persons in the personal service of another,
and workers who are paid by results as determined by
the Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to
those whose primary duty consists of the
management of the establishment in which they are
employed or of a department or subdivision thereof,
and to other officers or members of the managerial
staff.
"Field personnel" shall refer 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.
ART. 83. Normal hours of work. - The normal hours of
work of any employee shall not exceed eight (8) hours
a day.
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, except 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. For purposes
of this Article, "health personnel" shall include resident
physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
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.
Rest periods of short duration during working hours
shall be counted as hours worked.
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.
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.
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.
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.
ART. 89. Emergency overtime work. - Any employee
may be required by the employer to perform overtime
work in any of the following cases:chan robles virtual
law library
(a) 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;
(b) 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 caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster or
calamity;
(c) When there is urgent work to be performed on
machines, installations, or equipment, in order to
Duman / Labor I / Prof. Battad / Page 64
avoid serious loss or damage to the employer or
some other cause of similar nature;
(d) When the work is necessary to prevent loss or
damage to perishable goods; and
(e) 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.
Any employee required to render overtime work under
this Article shall be paid the additional compensation
required in this Chapter.
ART. 90. Computation of additional compensation. -
For purposes of computing overtime and other
additional remuneration as required by this Chapter,
the "regular wage" of an employee shall include the
cash wage only, without deduction on account of
facilities provided by the employer.
BOOK THREE
Conditions of Employment
RULE I
Hours of Work
SECTION 1. General statement on coverage. The
provisions of this Rule shall apply to all employees in
all establishments and undertakings, whether
operated for profit or not, except to those specifically
exempted under Section 2 hereof.
SECTION 2. Exemption. The provisions of this
Rule shall not apply to the following persons if they
qualify for exemption under the conditions set forth
herein:
(a) Government employees whether employed by the
National Government or any of its political
subdivision, including those employed in government-
owned and/or controlled corporations;
(b) Managerial employees, if they meet all of the
following conditions:
(1) Their primary duty consists of the management of
the establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of
two or more employees therein.
(3) They have the authority to hire or fire employees
of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the
promotion or any other change of status of other
employees, are given particular weight.
(c) Officers or members of a managerial staff if they
perform the following duties and responsibilities:
(1) The primary duty consists of the performance of
work directly related to management policies of their
employer;
(2) Customarily and regularly exercise discretion and
independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or
technical lines requiring special training, experience,
or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and
(4) Who do not devote more than 20 percent of their
hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3)
above.
(d) Domestic servants and persons in the personal
service of another if they perform such services in the
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household.
(e) Workers who are paid by results, including those
who are paid on piece-work, "takay," "pakiao" or task
basis, and other non-time work if their output rates are
in accordance with the standards prescribed under
Section 8, Rule VII, Book Three of these regulations,
or where such rates have been fixed by the Secretary
of Labor and Employment in accordance with the
aforesaid Section.
(f) Non-agricultural field personnel if they regularly
perform their duties away from the principal or branch
office or place of business of the employer and whose
actual hours of work in the field cannot be determined
with reasonable certainty.
SECTION 3. Hours worked. The following shall be
considered as compensable hours worked:
(a) All time during which an employee is required to
be on duty or to be at the employer's premises or to
be at a prescribed work place; and
(b) All time during which an employee is suffered or
permitted to work.
SECTION 4. Principles in determining hours worked.
The following general principles shall govern in
determining whether the time spent by an employee is
considered hours worked for purposes of this Rule:
(a) All hours are hours worked which the employee is
required to give 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 leave the premises of the
work place in order that his rest period shall not be
counted, it being enough that he stops working, may
rest completely and may leave his work place, to go
elsewhere, whether within or outside the premises of
his work place.
Duman / Labor I / Prof. Battad / Page 65
(c) If the work performed was necessary, or it
benefited the employer, or the employee could not
abandon his work at the end of his normal working
hours because he had no replacement, all time spent
for such work shall be considered as hours worked, if
the work was with the knowledge of his employer or
immediate supervisor.
(d) The time during which an employee is inactive by
reason of interruptions in his work beyond his control
shall be considered working time either if the
imminence of the resumption of work requires the
employee's presence at the place of work or if the
interval is too brief to be utilized effectively and
gainfully in the employee's own interest.
SECTION 5. Waiting time. (a) Waiting time spent
by an employee shall be considered as working time if
waiting is an integral part of his work or the employee
is required or engaged by the employer to wait.
(b) An employee who is required to remain on call in
the employer's premises or so close thereto that he
cannot use the time effectively and gainfully for his
own purpose shall be considered as working while on
call. An employee who is not required to leave word at
his home or with company officials where he may be
reached is not working while on call.
SECTION 6. Lectures, meetings, training programs.
Attendance at lectures, meetings, training
programs, and other similar activities shall not be
counted as working time if all of the following
conditions are met:
(a) Attendance is outside of the employee's regular
working hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive
work during such attendance.
SECTION 7. Meal and Rest Periods. Every
employer shall give his employees, regardless of sex,
not less than one (1) hour time-off for regular meals,
except in the following cases when a meal period of
not less than twenty (20) minutes may be given by the
employer provided that such shorter meal period is
credited as compensable hours worked of the
employee:
(a) Where the work is non-manual work in nature or
does not involve strenuous physical exertion;
(b) Where the establishment regularly operates not
less than sixteen (16) hours a day;
(c) In case 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 five (5) to
twenty (20) minutes shall be considered as
compensable working time.
SECTION 8. Overtime pay. Any employee covered
by this Rule who is permitted or required to work
beyond eight (8) hours on ordinary working days shall
be paid an additional compensation for the overtime
work in the amount equivalent to his regular wage
plus at least twenty-five percent (25%) thereof.
SECTION 9. Premium and overtime pay for holiday
and rest day work. (a) Except employees referred
to under Section 2 of this Rule, an employee who is
permitted or suffered to work on special holidays or
on his designated rest days not falling on regular
holidays, shall be paid with an additional
compensation as premium pay of not less than thirty
percent (30%) of his regular wage. For work
performed in excess of eight (8) hours on special
holidays and rest days not falling on regular holidays,
an employee shall be paid an additional
compensation for the overtime work equivalent to his
rate for the first eight hours on a special holiday or
rest day plus at least thirty percent (30%) thereof.
(b) Employees of public utility enterprises as well as
those employed in non-profit institutions and
organizations shall be entitled to the premium and
overtime pay provided herein, unless they are
specifically excluded from the coverage of this Rule
as provided in Section 2 hereof.
(c) The payment of additional compensation for work
performed on regular holidays shall be governed by
Rule IV, Book Three, of these Rules.
SECTION 10. Compulsory overtime work. In any of
the following cases, an employer may require any of
his employees to work beyond eight (8) hours a day,
provided that the employee required to render
overtime work is paid the additional compensation
required by these regulations:
(a) When the country is at war or when any other
national or local emergency has been declared by
Congress or the Chief Executive;
(b) When overtime work is necessary to prevent loss
of life or property, or in case of imminent danger to
public safety due to actual or impending emergency in
the locality caused by serious accident, fire, floods,
typhoons, earthquake, epidemic or other disaster or
calamities;
(c) When there is urgent work to be performed on
machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or
some other causes of similar nature;
(d) When the work is necessary to prevent loss or
damage to perishable goods;
(e) When the completion or continuation of work
started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or
operations of the employer; or
Duman / Labor I / Prof. Battad / Page 66
(f) When overtime work is necessary to avail of
favorable weather or environmental conditions where
performance or quality of work is dependent thereon.
In cases not falling within any of these enumerated in
this Section, no employee may be made to work
beyond eight hours a day against his will.
RULE I-A
Hours of Work of Hospital and Clinic Personnel
SECTION 1. General statement on coverage. This
Rule shall apply to:
(a) All hospitals and clinics, including those with a bed
capacity of less than one hundred (100) which are
situated in cities or municipalities with a population of
one million or more; and
(b) All hospitals and clinics with a bed capacity of at
least one hundred (100), irrespective of the size of the
population of the city or municipality where they may
be situated.
SECTION 2. Hospitals or clinics within the meaning of
this Rule. The terms "hospitals" and "clinics" as
used in this Rule shall mean a place devoted primarily
to the maintenance and operation of facilities for the
diagnosis, treatment and care of individuals suffering
from illness, disease, injury, or deformity, or in need of
obstetrical or other medical and nursing care. Either
term shall also be construed as any institution,
building, or place where there are installed beds, or
cribs, or bassinets for twenty-four (24) hours use or
longer by patients in the treatment of disease, injuries,
deformities, or abnormal physical and mental states,
maternity cases or sanitorial care; or infirmaries,
nurseries, dispensaries, and such other similar names
by which they may be designated.
SECTION 3. Determination of bed capacity and
population. (a) For purposes of determining the
applicability of this Rule, the actual bed capacity of
the hospital or clinic at the time of such determination
shall be considered, regardless of the actual or bed
occupancy. The bed capacity of hospital or clinic as
determined by the Bureau of Medical Services
pursuant to Republic Act No. 4226, otherwise known
as the Hospital Licensure Act, shall prima facie be
considered as the actual bed capacity of such hospital
or clinic.
(b) The size of the population of the city or
municipality shall be determined from the latest official
census issued by the Bureau of the Census and
Statistics.
SECTION 4. Personnel covered by this Rule. This
Rule applies to all persons employed by any private
or public hospital or clinic mentioned in Section 1
hereof, and shall include, but not limited to, resident
physicians, nurses, nutritionists, dieticians,
pharmacists, social workers, laboratory technicians
paramedical technicians, psychologists, midwives,
and attendants.
SECTION 5. Regular working hours. The regular
working hours of any person covered by this Rule
shall not be more than eight (8) hours in any one day
nor more than forty (40) hours in any one week.
For purposes of this Rule a "day" shall mean a work
day of twenty-four (24) consecutive hours beginning
at the same time each calendar year. A "week" shall
mean the work of 168 consecutive hours, or seven
consecutive 24-hour work days, beginning at the
same hour and on the same calendar day each
calendar week.
SECTION 6. Regular working days. The regular
working days of covered employees shall not be more
than five days in a work week. The work week may
begin at any hour and on any day, including Saturday
or Sunday, designated by the employer.
Employers are not precluded from changing the time
at which the work day or work week begins, provided
that the change is not intended to evade the
requirements of this Rule.
SECTION 7. Overtime work. Where the exigencies
of the service so require as determined by the
employer, any employee covered by this Rule may be
scheduled to work for more than five (5) days or forty
(40) hours a week, provided that the employee is paid
for the overtime work an additional compensation
equivalent to his regular wage plus at least thirty
percent (30%) thereof, subject to the provisions of this
Book on the payment of additional compensation for
work performed on special and regular holidays and
on rest days.
SECTION 8. Hours worked. In determining the
compensable hours of work of hospital and clinic
personnel covered by this Rule, the pertinent
provisions of Rule 1 of this Book shall apply.
SECTION 9. Additional compensation. Hospital
and clinic personnel covered by this Rule, with the
exception of those employed by the Government,
shall be entitled to an additional compensation for
work performed on regular and special holidays and
rest days as provided in this Book. Such employees
shall also be entitled to overtime pay for services
rendered in excess of forty hours a week, or in excess
of eight hours a day, whichever will yield the higher
additional compensation to the employee in the work
week.
SECTION 10. Relation to Rule I. All provisions of
Rule I of this Book which are not inconsistent with this
Rule shall be deemed applicable to hospital and clinic
personnel.
RULE II
Night Shift Differential
SECTION 1. Coverage. This Rule shall apply to all
employees except:
(a) Those of the government and any of its political
subdivisions, including government-owned and/or
controlled corporations;
(b) Those of retail and service establishments
regularly employing not more than five (5) workers;
Duman / Labor I / Prof. Battad / Page 67
 (c) Domestic helpers and persons in the personal
service of another;
(d) Managerial employees as defined in Book Three
of this Code;
(e) Field personnel and other employees whose time
and performance is unsupervised by the employer
including those who are engaged on task or contract
basis, purely commission basis, or those who are paid
a fixed amount for performing work irrespective of the
time consumed in the performance thereof.
SECTION 2. Night shift differential. An employee
shall be paid night shift differential of no less than ten
per cent (10%) of his regular wage for each hour of
work performed between ten o'clock in the evening
and six o'clock in the morning.
SECTION 3. Additional compensation. Where an
employee is permitted or suffered to work on the
period covered after his work schedule, he shall be
entitled to his regular wage plus at least twenty-five
per cent (25%) and an additional amount of no less
than ten per cent (10%) of such overtime rate for each
hour or work performed between 10 p.m. to 6 a.m.
SECTION 4. Additional compensation on scheduled
rest day/special holiday. An employee who is
required or permitted to work on the period covered
during rest days and/or special holidays not falling on
regular holidays, shall be paid a compensation
equivalent to his regular wage plus at least thirty
(30%) per cent and an additional amount of not less
than ten (10%) per cent of such premium pay rate for
each hour of work performed.
SECTION 5. Additional compensation on regular
holidays. For work on the period covered during
regular holidays, an employee shall be entitled to his
regular wage during these days plus an additional
compensation of no less than ten (10%) per cent of
such premium rate for each hour of work performed.
SECTION 6. Relation to agreements. Nothing in
this Rule shall justify an employer in withdrawing or
reducing any benefits, supplements or payments as
provided in existing individual or collective
agreements or employer practice or policy.
1. Hours of Work
a. Regulation; Rationale
Manila Terminal Co. Inc. v. CIR, 91 Phil. 625 (1952)
b. Coverage/Exemptions, Art. 82, 276; Rule l, Sec.s 1-4
(See Above)
1) Government Employees, Const., Art. IX-B,
Sec. 2(1)
ARTICLE IX B. THE CIVIL SERVICE
COMMISSION
Section 2. (1) The civil service embraces all
branches, subdivisions, instrumentalities, and
agencies of the Government, including government-
owned or controlled corporations with original
charters.
2) Managerial Employees, Art. 82; Rule I, Sec.
2 (b)
(c)
(b) Managerial employees, if they meet all of the
following conditions:
(1) Their primary duty consists of the management of
the establishment in which they are employed or of a
department or sub-division thereof.
(2) They customarily and regularly direct the work of
two or more employees therein.
(3) They have the authority to hire or fire employees
of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the
promotion or any other change of status of other
employees, are given particular weight.
(c) Officers or members of a managerial staff if they
perform the following duties and responsibilities:
(1) The primary duty consists of the performance of
work directly related to management policies of their
employer;
(2) Customarily and regularly exercise discretion and
independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of
the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
general supervision work along specialized or
technical lines requiring special training, experience,
Duman / Labor I / Prof. Battad / Page 68
 or knowledge; or (iii) execute, under general
supervision, special assignments and tasks; and

(4) Who do not devote more than 20 percent of their

hours worked in a work week to activities which are
not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3)
above.

3) Field Personnel, Art. 82; Rule I, Sec. 2 (f)

Asia Pacific Christening, Inc. v. Farolan, 393 SCRA 454 Merdicar Fishing Corp v. NLRC, 297 SCRA 440 (1998)
(2004)

Auto Bus Transport Systems, Inc. v. Bautista, 458

SCRA 578 (2005)
Charlito Peranda v. Baganga Plywood Corp., et al.,
G.R. 159577, May 3, 2006

Duman / Labor I / Prof. Battad / Page 69


4) Dependent Family Members
5) Domestic Helpers, Art. 141, 145; Rule I, Sec. 2 (d)
Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 141. Coverage. - This Chapter shall apply to all
persons rendering services in households for
compensation.
"Domestic or household service" shall mean service
in the employers home which is usually necessary or
desirable for the maintenance and enjoyment thereof
and includes ministering to the personal comfort and
convenience of the members of the employers
household, including services of family drivers.
ART. 145. Assignment to non-household work. - No
househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
agricultural or non-agricultural workers as prescribed
herein.
(d) Domestic servants and persons in the personal
service of another if they perform such services in the
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household.
6) Persons in the Personal Service of Another, Rule I,
Sec. 2 (d)
(d) Domestic servants and persons in the personal
service of another if they perform such services in the
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof,
or minister to the personal comfort, convenience, or
safety of the employer as well as the members of his
employer's household.
7) Piece Workers, Rule I, Sec. 2 (e)
(e) Workers who are paid by results, including those
who are paid on piece-work, "takay," "pakiao" or task
basis, and other non-time work if their output rates are
in accordance with the standards prescribed under
Section 8, Rule VII, Book Three of these regulations,
or where such rates have been fixed by the Secretary
of Labor and Employment in accordance with the
aforesaid Section.
Labor Congress v. NLRC, 290 SCRA 509 (1998)
c. Normal Hours of Work, Art. 83
ART. 83. Normal hours of work. - The normal hours of
work of any employee shall not exceed eight (8)
hours a day.
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, except 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. For purposes
of this Article, "health personnel" shall include
resident physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
d. Compensable Hours of Work In general
1) On Duty, Art. 84 (a); Rule I, Sec. 3 (a), Sec. 4
(a)
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.
Rest periods of short duration during working hours
shall be counted as hours worked.
SECTION 3. Hours worked. The following shall be
considered as compensable hours worked:
(a) All time during which an employee is required to
be on duty or to be at the employer's premises or to
be at a prescribed work place; and
SECTION 4. Principles in determining hours worked.
The following general principles shall govern in
determining whether the time spent by an employee is
considered hours worked for purposes of this Rule:
(a) All hours are hours worked which the employee is
required to give his employer, regardless of whether
or not such hours are spent in productive labor or
involve physical or mental exertion.
Duman / Labor I / Prof. Battad / Page 70
 credited as compensable hours worked of the
3) At Work, Art. 84 (b); Rule I, Sec. 3 (b) employee:

Philippine Airlines, Inc. v. NLRC, 302 SCRA 582 (1999)

ART. 84. Hours worked. - Hours worked shall include
(a) all time during which an employee is required to
be on duty or to be at a prescribed workplace; and
(b) all time during which an employee is suffered or
permitted to work.

Sec. 3(b) All time during which an employee is

suffered or permitted to work.

e. Specific Rules

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

Rest periods of short duration during working hours
shall be counted as hours worked.
SECTION 7. Meal and Rest Periods. Every employer
shall give his employees, regardless of sex, not less
than one (1) hour time-off for regular meals, except
in the following cases when a meal period of not less
than twenty (20) minutes may be given by the
employer provided that such shorter meal period is
credited as compensable hours worked of the
employee:
4) Waiting Time, Rule I, Sec. 5 (a)
SECTION 5. Waiting time. (a) Waiting time spent by
an employee shall be considered as working time if
waiting is an integral part of his work or the
employee is required or engaged by the employer to
wait.
Arica v. NLRC, 170 SCRA 776 (1989)

Rest periods or coffee breaks running from five (5) to

twenty (20) minutes shall be considered as
compensable working time.

b) More than 20 min., Rules I, Sec. 4 (b)

SECTION 4. Principles in determining hours

worked. The following general principles shall
govern in determining whether the time spent by an
employee is considered hours worked for purposes of
this Rule:

(b) An employee need not leave the premises of

the work place in order that his rest period shall not
be counted, it being enough that he stops working,
may rest completely and may leave his work place,
to go elsewhere, whether within or outside the
premises of his work place.

2) Meal Period

a) Regular Meal Period (One Hour), Art. 85; Rule I, Sec. 7,

1st par. 4) On Call, Rule I, Sec. 5 (b)

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.
SECTION 7. Meal and Rest Periods. Every employer
shall give his employees, regardless of sex, not less
than one (1) hour time-off for regular meals, except
in the following cases when a meal period of not less
than twenty (20) minutes may be given by the
employer provided that such shorter meal period is
b) An employee who is required to remain on call in
the employer's premises or so close thereto that he
cannot use the time effectively and gainfully for his
own purpose shall be considered as working while on
call. An employee who is not required to leave word
at his home or with company officials where he may
be reached is not working while on call.
5) Inactive due to Work Interruptions, Book III, Rule
I, Sec. 4 (d)
SECTION 4. Principles in determining hours worked.
The following general principles shall govern in
Duman / Labor I / Prof. Battad / Page 71
 determining whether the time spent by an employee
is considered hours worked for purposes of this Rule:
(d) The time during which an employee is inactive by
reason of interruptions in his work beyond his control
shall be considered working time either if the
imminence of the resumption of work requires the
employee's presence at the place of work or if the
interval is too brief to be utilized effectively and
gainfully in the employee's own interest.
University of Pangasinan Faculty Union v. University
of Pangasinan, 127 SCRA 691 (1984)
6) Work after Normal Hours, Rule I, Sec. 4 (c)
(c) If the work performed was necessary, or it
benefited the employer, or the employee could not
abandon his work at the end of his normal working
hours because he had no replacement, all time spent
for such work shall be considered as hours worked, if
the work was with the knowledge of his employer or
immediate supervisor.
7) Lectures, Meetings, Training Programs, Rule I, Sec.
6 the National Assembly or the Chief Executive;
SECTION 6. Lectures, meetings, training programs.
Attendance at lectures, meetings, training programs,
and other similar activities shall not be counted as
working time if all of the following conditions are
met:
(a) Attendance is outside of the employee's regular
working hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive
work during such attendance.
8) Travel Time
Rada v. NLRC, 205 SCRA 69 (1992)
f. Overtime Work Pay, Arts. 87-90; Rule I, Secs. 8-11
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.
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.
ART. 89. Emergency overtime work. - Any
employee may be required by the employer to
perform overtime work in any of the following
cases:chan robles virtual law library
(a) When the country is at war or when any other
national or local emergency has been declared by
(b) 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 caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster
or calamity;
(c) When there is urgent work to be performed on
machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or
some other cause of similar nature;
(d) When the work is necessary to prevent loss or
damage to perishable goods; and
(e) 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.
Any employee required to render overtime work
under this Article shall be paid the additional
compensation required in this Chapter.
ART. 90. Computation of additional compensation. -
For purposes of computing overtime and other
additional remuneration as required by this
Chapter, the "regular wage" of an employee shall
include the cash wage only, without deduction on
account of facilities provided by the employer.
RULE I
SECTION 8. Overtime pay. Any employee covered
by this Rule who is permitted or required to work
beyond eight (8) hours on ordinary working days
shall be paid an additional compensation for the
overtime work in the amount equivalent to his
Duman / Labor I / Prof. Battad / Page 72
regular wage plus at least twenty-five percent (25%) 3) Undertime Work/Leave, Art. 88
thereof.
4) Additional Compensation, Art. 87
SECTION 9. Premium and overtime pay for holiday
5) No Computation Formula Basic Contract
and rest day work. (a) Except employees referred
to under Section 2 of this Rule, an employee who is
permitted or suffered to work on special holidays or Manila Terminal Co., Inc. v. CIR, supra
on his designated rest days not falling on regular
holidays, shall be paid with an additional
compensation as premium pay of not less than thirty
percent (30%) of his regular wage. For work
performed in excess of eight (8) hours on special
holidays and rest days not falling on regular holidays,
an employee shall be paid an additional
compensation for the overtime work equivalent to his
rate for the first eight hours on a special holiday or
rest day plus at least thirty percent (30%) thereof.

(b) Employees of public utility enterprises as well as

those employed in non-profit institutions and
organizations shall be entitled to the premium and
overtime pay provided herein, unless they are
specifically excluded from the coverage of this Rule
as provided in Section 2 hereof.

(c) The payment of additional compensation for work

performed on regular holidays shall be governed by
Rule IV, Book Three, of these Rules.

SECTION 10. Compulsory overtime work. In any of

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

(a) When the country is at war or when any other

national or local emergency has been declared by
Congress or the Chief Executive;

(b) When overtime work is necessary to prevent loss

of life or property, or in case of imminent danger to
public safety due to actual or impending emergency
in the locality caused by serious accident, fire, floods,
typhoons, earthquake, epidemic or other disaster or
calamities;

(c) When there is urgent work to be performed on

machines, installations, or equipment, in order to
avoid serious loss or damage to the employer or
some other causes of similar nature;

(d) When the work is necessary to prevent loss or

damage to perishable goods;

(e) When the completion or continuation of work

started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or
operations of the employer; or

(f) When overtime work is necessary to avail of

favorable weather or environmental conditions where
performance or quality of work is dependent thereon.
In cases not falling within any of these enumerated in
this Section, no employee may be made to work
beyond eight hours a day against his will.
1) Overtime in Ordinary Working Day, Art. 87;
Rule I, Sec. 8
2) Emergency or Compulsory Overtime Work,
Art. 89
g. Nightwork, Art. 86; Rule II, Secs. 1-6
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.
SECTION 1. General statement on coverage. This
Rule shall apply to all employers whether operating
for profit or not, including public utilities operated by
private persons.
Duman / Labor I / Prof. Battad / Page 73
SECTION 2. Business on Sundays/Holidays. All
establishments and enterprises may operate or open
for business on Sundays and holidays provided that
the employees are given the weekly rest day and the
benefits as provided in this Rule.
SECTION 3. Weekly rest day. Every employer shall
give his employees a rest period of not less than
twenty-four (24) consecutive hours after every six
consecutive normal work days.
SECTION 4. Preference of employee. The
preference of the employee as to his weekly day of
rest shall be respected by the employer if the same
is based on religious grounds. The employee shall
make known his preference to the employer in
writing at least seven (7) days before the desired
effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to
his rest day based on religious grounds will inevitably
result in serious prejudice or obstruction to the
operations of the undertaking and the employer
cannot normally be expected to resort to other
remedial measures, the employer may so schedule
the weekly rest day of his choice for at least two (2)
days in a month.
SECTION 5. Schedule of rest day. (a) Where the
weekly rest is given to all employees simultaneously,
the employer shall make known such rest period by
means of a written notice posted conspicuously in
the work place at least one week before it becomes
effective.
(b) Where the rest period is not granted to all
employees simultaneously and collectively, the
employer shall make known to the employees their
respective schedules of weekly rest through written
notices posted conspicuously in the work place at
least one week before they become effective.
SECTION 6. When work on rest day authorized. An
employer may require any of his employees to work
on his scheduled rest day for the duration of the
following emergencies and exceptional conditions:
(a) In case of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity,
to prevent loss of life or property, or in cases of force
majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on
machineries, equipment or installations to avoid
serious loss which the employer would otherwise
suffer;
(c) In the event of abnormal pressure of work due to
special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
(d) To prevent serious loss of perishable goods;
(e) Where the nature of the work is such that the
employees have to work continuously for seven (7)
days in a week or more, as in the case of the crew
members of a vessel to complete a voyage and in
other similar cases; and
(f) When the work is necessary to avail of favorable
weather or environmental conditions where
performance or quality of work is dependent thereon.
No employee shall be required against his will to
work on his scheduled rest day except under
circumstances provided in this Section: Provided,
However, that where an employee volunteers to work
on his rest day under other circumstances, he shall
express such desire in writing, subject to the
provisions of Section 7 hereof regarding additional
compensation.
1) Coverage/Exclusion, Rule II, Sec. 1
2) Additional Compensation, Art. 86
Shell Oil Co. of the Philippines, Ltd. v. National Labor
Union, 81 Phil. 315 (1948)
2. Weekly rest Periods
Reference: Arts. 91-93; Omnibus Rules,
Book III, Rule III, Secs. 1-9
Chapter II
WEEKLY REST PERIODS
ART. 91. Right to weekly rest day. - (a) It shall be the
duty of every employer, whether operating for profit
or not, to provide each of his employees a rest period
of not less than twenty-four (24) consecutive hours
after every six (6) consecutive normal work days.
(b) The employer shall determine and schedule the
weekly rest day of his employees subject to
collective bargaining agreement and to such rules
and regulations as the Secretary of Labor and
Employment may provide. However, the employer
shall respect the preference of employees as to their
weekly rest day when such preference is based on
religious grounds.
ART. 92. When employer may require work on a rest
day. - The employer may require his employees to
work on any day:
(a) In case of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity to
prevent loss of life and property, or imminent danger
to public safety;
(b) In cases of urgent work to be performed on the
machinery, equipment, or installation, to avoid
serious loss which the employer would otherwise
suffer;
(c) In the event of abnormal pressure of work due to
special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
(d) To prevent loss or damage to perishable goods;
Duman / Labor I / Prof. Battad / Page 74
(e) Where the nature of the work requires continuous
operations and the stoppage of work may result in
irreparable injury or loss to the employer; and
(f) Under other circumstances analogous or similar to
the foregoing as determined by the Secretary of
Labor and Employment.
ART. 93. Compensation for rest day, Sunday or
holiday work. - (a) Where an employee is made or
permitted to work on his scheduled rest day, he shall
be paid an additional compensation of at least thirty
percent (30%) of his regular wage. An employee shall
be entitled to such additional compensation for work
performed on Sunday only when it is his established
rest day.chan robles virtual law library
(b) 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.
(c) 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 compensation of at least fifty per cent
(50%) of his regular wage.
(d) Where the collective bargaining agreement or
other applicable employment contract stipulates the
payment of a higher premium pay than that
prescribed under this Article, the employer shall pay
such higher rate.
Weekly Rest Periods
SECTION 1. General statement on coverage. This
Rule shall apply to all employers whether operating
for profit or not, including public utilities operated by
private persons.
SECTION 2. Business on Sundays/Holidays. All
establishments and enterprises may operate or open
for business on Sundays and holidays provided that
the employees are given the weekly rest day and the
benefits as provided in this Rule.
SECTION 3. Weekly rest day. Every employer shall
give his employees a rest period of not less than
twenty-four (24) consecutive hours after every six
consecutive normal work days.
SECTION 4. Preference of employee. The
preference of the employee as to his weekly day of
rest shall be respected by the employer if the same
is based on religious grounds. The employee shall
make known his preference to the employer in
writing at least seven (7) days before the desired
effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to
his rest day based on religious grounds will inevitably
result in serious prejudice or obstruction to the
operations of the undertaking and the employer
cannot normally be expected to resort to other
remedial measures, the employer may so schedule
the weekly rest day of his choice for at least two (2)
days in a month.
SECTION 5. Schedule of rest day. (a) Where the
weekly rest is given to all employees simultaneously,
the employer shall make known such rest period by
means of a written notice posted conspicuously in
the work place at least one week before it becomes
effective.
(b) Where the rest period is not granted to all
employees simultaneously and collectively, the
employer shall make known to the employees their
respective schedules of weekly rest through written
notices posted conspicuously in the work place at
least one week before they become effective.
SECTION 6. When work on rest day authorized. An
employer may require any of his employees to work
on his scheduled rest day for the duration of the
following emergencies and exceptional conditions:
(a) In case of actual or impending emergencies
caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity,
to prevent loss of life or property, or in cases of force
majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on
machineries, equipment or installations to avoid
serious loss which the employer would otherwise
suffer;
(c) In the event of abnormal pressure of work due to
special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
(d) To prevent serious loss of perishable goods;
(e) Where the nature of the work is such that the
employees have to work continuously for seven (7)
days in a week or more, as in the case of the crew
members of a vessel to complete a voyage and in
other similar cases; and
(f) When the work is necessary to avail of favorable
weather or environmental conditions where
performance or quality of work is dependent thereon.
No employee shall be required against his will to
work on his scheduled rest day except under
circumstances provided in this Section: Provided,
However, that where an employee volunteers to work
on his rest day under other circumstances, he shall
express such desire in writing, subject to the
provisions of Section 7 hereof regarding additional
compensation.
SECTION 7. Compensation on rest
day/Sunday/holiday. (a) Except those employees
referred to under Section 2, Rule I, Book Three, an
employee who is made or permitted to work on his
scheduled rest day shall be paid with an additional
compensation of at least 30% of his regular wage. An
employee shall be entitled to such additional
compensation for work performed on a Sunday only
when it is his established rest day.
(b) Where the nature of the work of the employee is
such that he has no regular work days and no regular
rest days can be scheduled, he shall be paid an
additional compensation of at least 30% of his
regular wage for work performed on Sundays and
holidays.
(c) Work performed on any special holiday shall be
paid with an additional compensation of at least 30%
Duman / Labor I / Prof. Battad / Page 75
 of the regular wage of the employees. Where such
holiday work falls on the employee's scheduled rest
day, he shall be entitled to additional compensation
of at least 50% of his regular wage.

(d) The payment of additional compensation for work

performed on regular holiday shall be governed by
Rule IV, Book Three, of these regulations.

(e) Where the collective bargaining agreement or

other applicable employment contract stipulates the
payment of a higher premium pay than that
prescribed under this Section, the employer shall pay
such higher rate.

SECTION 8. Paid-off days. Nothing in this Rule shall

justify an employer in reducing the compensation of
his employees for the unworked Sundays, holidays,
or other rest days which are considered paid-off days
or holidays by agreement or practice subsisting upon
the effectivity of the Code.

SECTION 9. Relation to agreements. Nothing

herein shall prevent the employer and his employees
or their representatives in entering into any
agreement with terms more favorable to the c. Premium Pay, Art. 93 9a) (b) (c)
employees than those provided herein, or be used to
diminish any benefit granted to the employees under
existing laws, agreements, and voluntary employer d. CBA on Higher Premium Pay, Art. 93 (d)
practices.
3. Holidays

Reference: art. 94; Executive Order 203 (1987);

Omnibus Rules, Book III, Rule IV

a. Coverage, Art. 82, 91; Rule III, Sec. 1
ART. 82. Coverage. - The provisions of this Title shall
apply to employees in all establishments and
undertakings whether for profit or not, but not to
government employees, managerial employees, field
personnel, members of the family of the employer
who are dependent on him for support, domestic
helpers, persons in the personal service of another,
and workers who are paid by results as determined
by the Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to
those whose primary duty consists of the
management of the establishment in which they are
employed or of a department or subdivision thereof,
and to other officers or members of the managerial
staff.
"Field personnel" shall refer 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.
Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES
AND SERVICE CHARGES
ART. 94. Right to holiday pay. - (a) Every worker shall
be paid his regular daily wage during regular
holidays, except in retail and service establishments
regularly employing less than ten (10) workers;
(b) 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
(c) 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.
EXECUTIVE ORDER NO. 203 June 30, 1987
PROVIDING A LIST OF REGULAR HOLIDAYS AND
SPECIAL DAYS TO BE OBSERVED THROUGHOUT
THE PHILIPPINES AND FOR OTHER PURPOSES
WHEREAS, a Cabinet Assistance Secretariat
Committee was constituted to review all existing
public holidays;

WHEREAS, there are too many holidays being

b. Determination; compulsory Work; Compensation, observed which has caused confusion among the
Arts. 91, 92 public.

Manila Electric Co. v. Public Utilities Employees Assn,

79 Phil. 409 NOW, THEREFORE, I, CORAZON C. AQUINO,
President of the Philippines, do hereby order:

Duman / Labor I / Prof. Battad / Page 76

Sec. 1. Unless otherwise modified by law, order or SECTION 2. Status of employees paid by the month.
proclamation, the following regular holidays and Employees who are uniformly paid by the month,
special days shall be observed in this country: irrespective of the number of working days therein,
with a salary of not less than the statutory or
A. Regular Holidays established minimum wage shall be paid for all days
New Year's Day January in the month whether worked or not.
Maundy Thursday Movable date
Good Friday Movable date For this purpose, the monthly minimum wage shall
not be less than the statutory minimum wage
Araw ng Kagitingan April 9 multiplied by 365 days divided by twelve.
(Bataan and Corregidor
Day) SECTION 3. Holiday Pay. Every employer shall pay
Labor Day May 1 his employees their regular daily wage for any
worked regular holidays.
Independence Day June 12
National Heroes Day Last Sunday of
As used in the rule, the term 'regular holiday' shall
August
exclusively refer to: New Year's Day, Maundy
Bonifacio Day November 30 Thursday, Good Friday, the ninth of April, the first of
Christmas Day December 25 May, the twelfth of June, the last Sunday of August,
the thirtieth of November, the twenty-fifth and
Rizal Day December 30 thirtieth of December. Nationwide special days shall
B. Nationwide Special Days include the first of November and the last day of
December.
All Saints Day November 1
Last Day of the Year December 31 As used in this Rule legal or regular holiday and
special holiday shall now be referred to as 'regular
holiday' and 'special day', respectively.
Sec. 2. Henceforth, the terms "legal or regular
holiday" and "special holiday", as used in laws, SECTION 4. Compensation for holiday work. Any
orders, rules and regulations or other issuances shall employee who is permitted or suffered to work on
now be referred to as "regular holiday" and "special any regular holiday, not exceeding eight (8) hours,
day", respectively. shall be paid at least two hundred percent (200%) of
his regular daily wage. If the holiday work falls on the
scheduled rest day of the employee, he shall be
Sec. 3. All laws, orders, issuances, rules and entitled to an additional premium pay of at least 30%
regulations or parts thereof inconsistent with this of his regular holiday rate of 200% based on his
Executive Order are hereby repealed or modified regular wage rate.
accordingly.
SECTION 5. Overtime pay for holiday work. For
work performed in excess of eight hours on a regular
Sec. 4. This Executive Order shall take effect
holiday, an employee shall be paid an additional
immediately. compensation for the overtime work equivalent to his
rate for the first eight hours on such holiday work
Done in the City of Manila, this 30th day of June, in plus at least 30% thereof.
the year of Our Lord, nineteen hundred and eighty-
seven. Where the regular holiday work exceeding eight
hours falls on the scheduled rest day of the
employee, he shall be paid an additional
RULE IV
compensation for the overtime work equivalent to his
Holidays with Pay
regular holiday-rest day for the first 8 hours plus 30%
thereof. The regular holiday rest day rate of an
SECTION 1. Coverage. This rule shall apply to all employee shall consist of 200% of his regular daily
employees except: wage rate plus 30% thereof.

(a) Those of the government and any of the political SECTION 6. Absences. (a) All covered employees
subdivision, including government-owned and shall be entitled to the benefit provided herein when
controlled corporation; they are on leave of absence with pay. Employees
who are on leave of absence without pay on the day
immediately preceding a regular holiday may not be
(b) Those of retail and service establishments
paid the required holiday pay if he has not worked on
regularly employing less than ten (10) workers;
such regular holiday.

(c) Domestic helpers and persons in the personal

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

(e) Field personnel and other employees whose time
and performance is unsupervised by the employer
including those who are engaged on task or contract
basis, purely commission basis, or those who are
paid a fixed amount for performing work irrespective
of the time consumed in the performance thereof.
(c) Where the day immediately preceding the holiday
is a non-working day in the establishment or the
scheduled rest day of the employee, he shall not be
deemed to be on leave of absence on that day, in
which case he shall be entitled to the holiday pay if
he worked on the day immediately preceding the
non-working day or rest day.
Duman / Labor I / Prof. Battad / Page 77
 SECTION 7. Temporary or periodic shutdown and g) Service Establishment is one principally
temporary cessation of work. (a) In cases of engaged in the sale of service to individuals for their
temporary or periodic shutdown and temporary own or household use and is generally recognized as
cessation of work of an establishment, as when a such;
yearly inventory or when the repair or cleaning of
machineries and equipment is undertaken, the
regular holidays falling within the period shall be b. Coverage/Exclusions, Art. 94 (a)
compensated in accordance with this Rule.
ART. 94. Right to holiday pay. - (a) Every worker shall
(b) The regular holiday during the cessation of be paid his regular daily wage during regular
operation of an enterprise due to business reverses holidays, except in retail and service establishments
as authorized by the Secretary of Labor and regularly employing less than ten (10) workers;
Employment may not be paid by the employer.
Mantrade/FMMC Division Employees and Workers
SECTION 8. Holiday pay of certain employees. (a) Union v. Bacungan, 144 SCRA 510 (1986)
Private school teachers, including faculty members of
colleges and universities, may not be paid for the
regular holidays during semestral vacations. They
shall, however, be paid for the regular holidays
during Christmas vacation;

(b) Where a covered employee, is paid by results or

output, such as payment on piece work, his holiday
pay shall not be less than his average daily earnings
for the last seven (7) actual working days preceding
the regular holiday; Provided, However, that in no
case shall the holiday pay be less than the applicable
statutory minimum wage rate.

(c) Seasonal workers may not be paid the required

holiday pay during off-season when they are not at
work.

(d) Workers who have no regular working days shall

be entitled to the benefits provided in this Rule.

SECTION 9. Regular holiday falling on rest days or

Sundays. (a) A regular holiday falling on the
employee's rest day shall be compensated
accordingly.

(b) Where a regular holiday falls on a Sunday, the

following day shall be considered a special holiday
for purposes of the Labor Code, unless said day is
also a regular holiday.
Cirineo Bowling Plaza, Inc. v. Gerry Sensing, et al.,
448 SCRA 175 (2005)
SECTION 10. Successive regular holidays. Where
there are two (2) successive regular holidays, like
Holy Thursday and Good Friday, an employee may
not be paid for both holidays if he absents himself
from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which
case he is entitled to his holiday pay on the second
holiday.

SECTION 11. Relation to agreements. Nothing in

this Rule shall justify an employer in withdrawing or
reducing any benefits, supplements or payments for
unworked holidays as provided in existing individual
or collective agreement or employer practice or
policy.

a. Definition

1) Retail Establishments, Rule Impl. RA 6727,

par. F

f) Retail Establishment is one principally engaged

in the sale of goods to end-users for personal or
household use;

2) Service Establishment, Rule Impl. RA 6727,

par. g

Duman / Labor I / Prof. Battad / Page 78

c. Holiday Pay, Art. 94 (b)
(b) 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
1) Faculty in Private School, Rule IV, Sec. 8 (a)
SECTION 8. Holiday pay of certain employees. (a)
Private school teachers, including faculty members of
colleges and universities, may not be paid for the
regular holidays during semestral vacations. They
shall, however, be paid for the regular holidays
during Christmas vacation;
6) Divisor as Factor
Trans-Asia Phil. Employees Association v. NLRC, 320
SCRA 347 (1999)
7) Sunday, Art. 93 9a), 2nd Sentence; Rule III, Sec. 2
ART. 93. Compensation for rest day, Sunday or
holiday work. - (a) Where an employee is made or
permitted to work on his scheduled rest day, he shall
be paid an additional compensation of at least thirty
percent (30%) of his regular wage. An employee shall
be entitled to such additional compensation for work
performed on Sunday only when it is his established
rest day.
SECTION 2. Business on Sundays/Holidays. All
establishments and enterprises may operate or open
for business on Sundays and holidays provided that
the employees are given the weekly rest day and the
benefits as provided in this Rule.
Wellington Investment Inc. v. Trajano, 245 SCRA
561 (1995)
8) Muslim Holiday, Art. 169-172; PD 1083 (Feb. 1977)
BOOK FIVE
MISCELLANEOUS AND TRANSITORY
PROVISIONS
TITLE I
MUSLIM HOLIDAYS
Article 169. Official Muslim holidays. The following
are hereby recognized as legal Muslim holidays:
(a) 'Amun Jadid (New Year), which falls on
the first day of the first lunar month of
Muharram;
(b) Maulid-un-Nabi (Birthday of the Prophet
Muhammad), which falls on the twelfth day
of the third lunar month of Rabi-ul-Awwal;
(c) Lailatul Isra Wal Mi'raj (Nocturnal Journey
and Ascension of the Prophet Muhammad),
which falls on the twenty-seventh day of the
seventh lunar month of Rajab;
(d) 'Id-ul-Fitr (Hari Raya Pausa), which falls
on the first day of the tenth lunar month of
Shawwal, commemorating the end of the
fasting season; and
(e) 'Id-ul-Adha (Hari Raja Haji), which falls on
the tenth day of the twelfth lunar month of
Dhu 1-Hijja.
Article 170. Provinces and cities where officially
observed.
(1) Muslim holidays shall be officially
observed in the Provinces of Basilan, Lanao
del Norte, Lanao del Sur, Maguindanao,
North Cotabato, Sultan Kudarat, Sulu, Tawi-
Tawi, Zamboanga del Norte and Zamboanga
del Sur, and in the Cities of Cotabato, Iligan,
Marawi, Pagadian, and Zamboanga and in
such other Muslim provinces and cities as
may hereafter be created.
(2) Upon proclamation by the President of
the Philippines, Muslim holidays may also be
officially observed in other provinces and
cities.
Duman / Labor I / Prof. Battad / Page 79
 Article 171. Dates of observance. The dates of he worked on the day immediately preceding the
Muslim holidays shall be determined by the Office of non-working day or rest day.
the President of the Philippines in accordance with
the Muslim Lunar Calendar (Hijra). 4. Service Incentive Leave

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

Article 172. Observance of Muslim employees.
V

(1) All Muslim government officials and

employees in places other than those
ART. 95. Right to service incentive leave. - (a) Every
enumerated under Article 170 shall also be
employee who has rendered at least one year of
excused from reporting to office in order
service shall be entitled to a yearly service incentive
that they may be able to observe Muslim
leave of five days with pay.
holidays.

(b) This provision shall not apply to those who are

(2) The President of the Philippines may, by
already enjoying the benefit herein provided, those
proclamation, require private offices,
enjoying vacation leave with pay of at least five days
agencies or establishments to excuse their
and those employed in establishments regularly
Muslim employees from reporting for work
employing less than ten employees or in
during a Muslim holiday without reduction in
establishments exempted from granting this benefit
their usual compensation.
by the Secretary of Labor and Employment after
considering the viability or financial condition of such
establishment.

San Miguel Corp. v. Court of Appeals, 375 SCRA 311 (c) The grant of benefit in excess of that provided
(2002) herein shall not be made a subject of arbitration or
any court or administrative action.

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

Makati Haberdashery Inc. N. NLRC, 179 SCRA 449

(1989)

d. Absences, Rule lV, Secs. 6 (a), 10

SECTION 6. Absences. (a) All covered employees

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

SECTION 10. Successive regular holidays. Where

there are two (2) successive regular holidays, like
Holy Thursday and Good Friday, an employee may
not be paid for both holidays if he absents himself
from work on the day immediately preceding the first
holiday, unless he works on the first holiday, in which
case he is entitled to his holiday pay on the second
holiday.

e. Non-Working/Schedule of Rest Day, Rule IV, Sec. 6 (c)

(c) Where the day immediately preceding the holiday

is a non-working day in the establishment or the
scheduled rest day of the employee, he shall not be
deemed to be on leave of absence on that day, in
which case he shall be entitled to the holiday pay if
Duman / Labor I / Prof. Battad / Page 80

Auto Bus Transport Systems, Inc. v. Bautista,
supra
5. Paternity Leave, Paternity Leave of 1996 (RA 8187),
Secs. 1-6; Impl. Rules
REPUBLIC ACT NO. 8187
AN ACT GRANTING PATERNITY LEAVE OF
SEVEN (7) DAYS WITH FULL PAY TO ALL
MARRIED MALE EMPLOYEES IN THE PRIVATE
AND PUBLIC SECTORS FOR THE FIRST FOUR (4)
DELIVERIES OF THE LEGITIMATE SPOUSE WITH
WHOM HE IS COHABITING AND FOR OTHER
PURPOSES.
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled:
SECTION 1. Short Title. - This Act shall be known
as the "Paternity Leave Act of 1996".
SECTION 2. Notwithstanding any law, rules and
regulations to the contrary, every married male
employee in the private and public sectors shall be
entitled to a paternity leave of seven (7) days with full
pay for the first four (4) deliveries of the legitimate
spouse with whom he is cohabiting. The male
employee applying for paternity leave shall notify his
employer of the pregnancy of his legitimate spouse
and the expected date of such delivery.
For purposes, of this Act, delivery shall include
childbirth or any miscarriage.
SECTION 3. Definition of Term. - For purposes of
this Act, Paternity Leave refers to the benefits
granted to a married male employee allowing him not
to report for work for seven (7)
days but continues to earn the compensation therefor,
on the condition that his spouse has delivered a child
or suffered a miscarriage for purposes of enabling
him to effectively lend
support to his wife in her period of recovery and/or in
the nursing of the newly-born child.
SECTION 4. The Secretary of Labor and
Employment, the Chairman of the Civil Service
Commission and the Secretary of Health shall, within
thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary
for the proper implementation of the provisions
hereof.
SECTION 5. Any person, corporation, trust, firm,
partnership, association or entity found violating this
Act or the rules and regulations promulgated
thereunder shall be punished by a fine not exceeding
Twenty-five thousand pesos (P25,000) or
imprisonment of not less than thirty (30)days nor more
than six (6) months.
If the violation is committed by a corporation, trust
or firm, partnership, association or any other entity,
the penalty of imprisonment shall be imposed on the
entity's responsible officers, including, but not limited
to, the president, vice-president, chief executive
officer, general manager, managing director or
partner directly responsible therefor.
SECTION 6. Nondiminution Clause. - Nothing in
this Act shall be construed to reduce any existing
benefits of any form granted under existing laws,
decrees, executive orders, or any
contract agreement or policy between employer and
employee.
SECTION 7. Repealing Clause. - All laws,
ordinances, rules, regulations, issuances, or parts
thereof which are inconsistent with this Act are
hereby repealed or modified accordingly.
SECTION 8. Effectivity. - This Act shall take effect
(15) days from its publication in the Official Gazette
or in at least two (2) newspapers of national
circulation.
Approved:
(SGD.) NEPTALI A. GONZALES
President of the Senate
(SGD.) JOSE DE VENECIA, JR.
Speaker of the House of Representatives
This Act, which is a consolidation of Senate Bill
No. 1032 and House Bill No. 7134 was finally passed
by the Senate and the House of Representatives on
June 8, 1996.
1. Parental Leave, Solo Parents Welfare Act of 2000 (RA
8972); Impl. Rules
REPUBLIC ACT NO. 8972
AN ACT PROVIDING FOR BENEFITS AND
PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of
Representatives of the Philippines Congress
assembled:
Section 1. Title. - This Act shall be known as the
"Solo Parents' Welfare Act of 2000."
Duman / Labor I / Prof. Battad / Page 81
Section 2. Declaration of Policy. - It is the policy of
the State to promote the family as the foundation of
the nation, strengthen its solidarity and ensure its total
development. Towards this end, it shall develop a
comprehensive program of services for solo parents
and their children to be carried out by the Department
of Social Welfare and Development (DSWD), the
Department of Health (DOH), the Department of
Education, Culture and Sports (DECS), the
Department of the Interior and Local Government
(DILG), the Commission on Higher Education
(CHED), the Technical Education and Skills
Development Authority (TESDA), the National
Housing Authority (NHA), the Department of Labor
and Employment (DOLE) and other related
government and nongovernment agencies.
Section 3. Definition of Terms. - Whenever used in
this Act, the following terms shall mean as follows:
(a) "Solo parent" - any individual who falls
under any of the following categories:
(1) A woman who gives birth as a
result of rape and other crimes
against chastity even without a final
conviction of the offender: Provided,
That the mother keeps and raises
the child;
(2) Parent left solo or alone with the
responsibility of parenthood due to
death of spouse;
(3) Parent left solo or alone with the
responsibility of parenthood while
the spouse is detained or is serving
sentence for a criminal conviction
for at least one (1) year;
(4) Parent left solo or alone with the
responsibility of parenthood due to
physical and/or mental incapacity of
spouse as certified by a public
medical practitioner;
(5) Parent left solo or alone with the
responsibility of parenthood due to
legal separation or de facto
separation from spouse for at least
one (1) year, as long as he/she is
entrusted with the custody of the
children;
(6) Parent left solo or alone with the
responsibility of parenthood due to
declaration of nullity or annulment
of marriage as decreed by a court
or by a church as long as he/she is
entrusted with the custody of the
children;
(7) Parent left solo or alone with the
responsibility of parenthood due to
abandonment of spouse for at least
one (1) year;
(8) Unmarried mother/father who
has preferred to keep and rear
her/his child/children instead of
having others care for them or give
them up to a welfare institution;
(9) Any other person who solely
provides parental care and support
to a child or children;
(10) Any family member who
assumes the responsibility of head
of family as a result of the death,
abandonment, disappearance or
prolonged absence of the parents
or solo parent.
A change in the status or
circumstance of the parent claiming
benefits under this Act, such that
he/she is no longer left alone with
the responsibility of parenthood,
shall terminate his/her eligibility for
these benefits.
(b) "Children" - refer to those living with and
dependent upon the solo parent for support
who are unmarried, unemployed and not
more than eighteen (18) years of age, or
even over eighteen (18) years but are
incapable of self-support because of mental
and/or physical defect/disability.
(c) "Parental responsibility" - with respect to
their minor children shall refer to the rights
and duties of the parents as defined in Article
220 of Executive Order No. 209, as
amended, otherwise known as the "Family
Code of the Philippines."
(d) "Parental leave" - shall mean leave
benefits granted to a solo parent to enable
him/her to perform parental duties and
responsibilities where physical presence is
required.
(e) "Flexible work schedule" - is the right
granted to a solo parent employee to vary
his/her arrival and departure time without
affecting the core work hours as defined by
the employer.
Section 4. Criteria for Support. - Any solo parent
whose income in the place of domicile falls below the
poverty threshold as set by the National Economic
and Development Authority (NEDA) and subject to the
assessment of the DSWD worker in the area shall be
eligible for assistance: Provided, however, That any
solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in
Sections 6, 7 and 8 of this Act.
Section 5. Comprehensive Package of Social
Development and Welfare Services. - A
comprehensive package of social development and
welfare services for solo parents and their families will
be developed by the DSWD, DOH, DECS, CHED,
TESDA, DOLE, NHA and DILG, in coordination with
Duman / Labor I / Prof. Battad / Page 82
local government units and a nongovernmental
organization with proven track record in providing
services for solo parents.
The DSWD shall coordinate with concerned agencies
the implementation of the comprehensive package of
social development and welfare services for solo
parents and their families. The package will initially
include:
(a) Livelihood development services which
include trainings on livelihood skills, basic
business management, value orientation and
the provision of seed capital or job
placement.
(b) Counseling services which include
individual, peer group or family counseling.
This will focus on the resolution of personal
relationship and role conflicts.
(c) Parent effectiveness services which
include the provision and expansion of
knowledge and skills of the solo parent on
early childhood development, behavior
management, health care, rights and duties
of parents and children.
(d) Critical incidence stress debriefing which
includes preventive stress management
strategy designed to assist solo parents in
coping with crisis situations and cases of
abuse.
(e) Special projects for individuals in need of
protection which include temporary shelter,
counseling, legal assistance, medical care,
self-concept or ego-building, crisis
management and spiritual enrichment.
Section 6. Flexible Work Schedule. - The employer
shall provide for a flexible working schedule for solo
parents: Provided, That the same shall not affect
individual and company productivity: Provided,
further, That any employer may request exemption
from the above requirements from the DOLE on
certain meritorious grounds.
Section 7. Work Discrimination. - No employer shall
discriminate against any solo parent employee with
respect to terms and conditions of employment on
account of his/her status.
Section 8. Parental Leave. - In addition to leave
privileges under existing laws, parental leave of not
more than seven (7) working days every year shall be
granted to any solo parent employee who has
rendered service of at least one (1) year.
Section 9. Educational Benefits. - The DECS, CHED
and TESDA shall provide the following benefits and
privileges:
(1) Scholarship programs for qualified solo
parents and their children in institutions of
basic, tertiary and technical/skills education;
and
(2) Nonformal education programs
appropriate for solo parents and their
children.
The DECS, CHED and TESDA shall promulgate rules
and regulations for the proper implementation of this
program.
Section 10. Housing Benefits. - Solo parents shall be
given allocation in housing projects and shall be
provided with liberal terms of payment on said
government low-cost housing projects in accordance
with housing law provisions prioritizing applicants
below the poverty line as declared by the NEDA.
Section 11. Medical Assistance. - The DOH shall
develop a comprehensive health care program for
solo parents and their children. The program shall be
implemented by the DOH through their retained
hospitals and medical centers and the local
government units (LGUs) through their
provincial/district/city/municipal hospitals and rural
health units (RHUs).
Section 12. Additional Powers and Functions of the
DSWD. The DSWD shall perform the following
additional powers and functions relative to the welfare
of solo parents and their families:
(a) Conduct research necessary to: (1)
develop a new body of knowledge on solo
parents; (2) define executive and legislative
measures needed to promote and protect
the interest of solo parents and their
children; and (3) assess the effectiveness of
programs designed for disadvantaged solo
parents and their children;
(b) Coordinate the activities of various
governmental and nongovernmental
organizations engaged in promoting and
protecting the interests of solo parents and
their children; and
(c) Monitor the implementation of the
provisions of this Act and suggest
mechanisms by which such provisions are
effectively implemented.
Section 13. Implementing Rules and Regulations. -
An interagency committee headed by the DSWD, in
coordination with the DOH, DECS, CHED, TESDA,
DOLE, NHA, and DILG is hereby established which
shall formulate, within ninety (90) days upon the
effectivity of this Act, the implementing rules and
regulations in consultation with the local government
units, nongovernment organizations and people's
organizations.
Section 14. Appropriations. - The amount necessary
to carry out the provisions of this Act shall be included
in the budget of concerned government agencies in
the General Appropriations Act of the year following
its enactment into law and thereafter.1awphil.net
Section 15. Repealing Clause. - All laws, decrees,
executive orders, administrative orders or parts
Duman / Labor I / Prof. Battad / Page 83
thereof inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.
Section 16. Separability Clause. - If any provision of
this Act is held invalid or unconstitutional, other
provisions not affected thereby shall continue to be in
full force and effect.
Section 17. Effectivity Clause. - This Act shall take
effect fifteen (15) days following its complete
publication in the Official Gazette or in at least two (2)
newspaper of general circulation.
Approved.
(Sgd.)
JOSEPH EJERCITO ESTRADA
President of the Philippines
Republic of the Philippines
National Economic Development Authority
SOCIAL DEVELOPMENT COMMITTEE (SDC)
Resolution No.2 (Series 2002)
APPROVING THE IMPLEMENTING RULES AND
REGULATIONS (IRR)
OF REPUBLIC ACT 8972 PROVIDING FOR
BENEFITS AND PRIVILEGES
TO SOLO PARENTS AND THEIR CHILDREN
WHEREAS, it is the policy of the State to promote the
family as the foundation of the nation, strengthen its
solidarity and ensure its total development;
WHEREAS, in support of this State policy, R.A. 8972,
otherwise known as the Solo Parents Welfare Act of
2000, has been enacted to develop a comprehensive
program for social development and welfare services
for solo parents and their children;
WHEREAS, to ensure the implementation of the Act,
the Department of Social Welfare and Development
was tasked to coordinate with concerned agencies
and perform additional functions relative to the
welfare and development of solo parents and their
children;
WHEREAS, an interagency committee headed by
DSWD and participated in by the Departments of
Health (DOH), Education (DepEd), Labor and
Employment (DOLE), and Interior and Local
Government (DILG), Commission on Higher
Education (CHED), Technical Education and Skills
Development Authority (TESDA), and National
Housing Authority (NHA) drafted the IRR in
consultation with the local government units, non-
government organizations and peoples organizations;
WHEREAS, the draft IRR was deliberated upon and
approved by the members of the SDC-Cabinet level
subject to the incorporation of certain comments
during its meeting on the 10th day of April 2002;
NOW, THEREFORE, BE IT RESOLVED, AS IT IS
HEREBY RESOLVED, by the Chairman and
members of the NEDA Boards Social Development
Committee-Cabinet level, to approve the IRR of R.A.
8972.
RESOLVED FURTHER, that this IRR shall be
published at least in one newspaper of general
circulation.
Adopted, this 10 day of April in the year of our Lord,
Two Thousand and Two, Pasig City.
RULES AND REGULATIONS IN THE
IMPLEMENTATION OF REPUBLIC ACT NO. 8972,
AN ACT PROVIDING FOR BENEFITS AND
PRIVILEGES TO SOLO PARENTS AND THEIR
CHILDREN, APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES
ARTICLE I
TITLE, PURPOSE AND CONSTRUCTION
Section 1. Title These rules shall be known and
cited as the Rules and Regulations Implementing
Republic Act No. 8972, more commonly known as the
Solo Parents Welfare Act of 2000.
Section 2. Purpose These Rules are promulgated to
prescribe the procedure and guidelines for the
implementation of the Solo Parents Welfare Act of
2000 in order to facilitate the compliance therewith
and to achieve the objectives thereof.
Section 3. Construction These Rules shall be
liberally construed in favor of the solo parent and
applied in accordance with and in furtherance of the
policy and objectives of the law. In case of conflict
and/or ambiguity, which may arise in the
implementation of these Rules, the concerned
agencies shall issue the necessary clarification.
ARTICLE II
DECLARATION OF POLICIES AND OBJECTIVES
Section 4. Declaration of Policy It is the policy of the
State to promote the family as the foundation of the
nation, strengthen its solidarity and ensure its total
development. Towards this end, it shall develop a
comprehensive program of services for solo parents
and their children to be carried out by the Department
of Social Welfare and Development (DSWD), the
Department of Health (DOH), the Department of
Education (DepEd), the Department of the Interior
and Local Government (DILG), the Commission on
Higher Education (CHED), the Technical Education
and Skills Development Authority (TESDA), the
National Housing Authority (NHA), the Department of
Labor and Employment (DOLE) and other related
government agencies and non-government
organizations or civil society.
Section 5. Objective These Rules and Regulations
seek to clarify the scope and application of the Act in
order that the proper parties may avail of its benefits.
ARTICLE III
DEFINITION OF TERMS
Section 6. Definition of terms As used in these
Rules, the following terms shall mean as follows:
(a) Act the Solo Parents Welfare Act of
2000;
(b) Solo Parent any individual who falls
under any of the following categories:
(1) A woman who gives birth as a
result of rape or crimes against chastity,
even without a final conviction of the
offender: Provided, that the mother keeps
and raises the child;
(2) Parent left solo or alone with the
responsibility of parenthood due to death of
spouse;
(3) Parent left solo or alone with the
responsibility of parenthood while the spouse
is detained, or is serving sentence for a
criminal conviction for at least one (1) year;
The law applies to the spouses of prisoners, whether
or not a final judgement has been rendered, provided
Duman / Labor I / Prof. Battad / Page 84
they are in detention for a minimum period of one (1)
year;
(4) Parent left solo or alone with the
responsibility of parenthood due to physical
and/or mental incapacity of spouse as
certified by a public medical practitioner;
(5) Parent left solo or alone with the
responsibility of parenthood due to legal
separation or de facto separation from
spouse for at least one (1) year: Provided,
that he or she is entrusted with the custody
of the children;
(6) Parent left solo or alone with the
responsibility of parenthood due to
declaration of nullity or annulment of
marrriage as decreed by a court or by a
church: Provided, that he/she is entrusted
with the custody of the children;
(7) Parent left solo or alone with the
responsibility of parenthood due to
abandonment of spouse for at least one (1)
year;
(8) Unmarried mother/father who
has preferred to keep and rear his/her
child/children instead of having others care
for them or give them up to a welfare
institution;
(9) Any other person who solely
provides parental care and support to a child
or children provided he/she is duly licensed
as a foster parent by the DSWD or duly
appointed legal guardian by the court;
(10) Any family member who
assumes the responsibility of head of family
as a result of the death, abandonment,
disappearance, or absence lasts for at least
one (1) year.
A change in the status or circumstance of the parent
claiming benefits under the Act, such that he/she is no
longer left alone with the responsibility of parenthood,
shall terminate his/her eligibility for these benefits;
(c) Family shall refer to the Solo Parent
and his/her child/children; Provided, however, that the
family member referred to in Section 3, paragraph
(a)(10) of these Rules shall include any relative by
consanguinity up to the fourth civil degree. These
persons shall include, but are not limited to, any
uncle, aunt, grandfather, grandmother, niece, nephew,
or cousin;
(f) Parental responsibility with respect to
their minor children shall refer to the rights and duties
of the parents as defined in Article 220 of Executive
Order No. 209, as amended, otherwise known as the
Family Code of the Philippines, and hereunder
enumerated as follows:
(1) To keep them in their company,
to support, educate and instruct them by
right precept and good example and to
provide for their upbringing in keeping with
their means;
(2) To give them love and affection,
advice and counsel, companionship and
understanding;
(3) To provide them with moral and
spiritual guidance, inculcate in them honesty,
integrity, self-discipline, self-reliance,
industry and thrift, stimulate their interest in
civic affairs, and inspire in them compliance
with the duties of citizenship;
(4) To furnish them with good and
wholesome educational materials, supervise
their activities, recreation and association
with others, protect them from bad company,
and prevent them from acquiring habits
detrimental to their health, studies and
morals;
(5) To represent them in all matters
affecting their interest;
(6) To demand from them respect
and obedience;
(7) To Impose discipline on them as
may be required under the circumstances;
and
(8) To perform such other duties as
are imposed by law and upon parents and
guardians;
(g) Parental leave shall mean leave
benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where
physical presence is required;
(h) Flexible work schedule is the right
granted to a solo parent employee to vary his/her
arrival and departure time without affecting the core
work hours as defined by the employer;
(i) DSWD shall refer to the Department of
Social Welfare and Development;

(d) Social Worker a person who is a
graduate of Social Work and duly registered pursuant
to Republic Act 4373 and employed with the Social
Welfare and Development Office of the local
government unit where the solo parent resides;
(e) Children refer to those living with and
dependent upon the solo parent for support who are
unmarried, unemployed and below eighteen (18)
years of age, or even eighteen (18) years and
above but are incapable of self-support and/or
mentally and/or physically challenged;
(j) DOH shall refer to the Department of
Health;
(k) DOLE shall refer to the Department of
Labor and Employment;
(l) DepEd shall refer to the Department of
Education;
(m) DILG shall refer to the Department of
the Interior and Local Government;
(n) CHED shall refer to the Commission
on Higher Education;
Duman / Labor I / Prof. Battad / Page 85
 (o) NHA shall refer to the National
Housing Authority;

(p) TESDA shall refer to the Technical

Education and Skills Development Authority;

(q) NEDA shall refer to the National

Economic and Development Authority;

(r) NSCB shall refer to the National

Statistical Coordination Board, an attached agency of
NEDA and responsible for determining the regional
poverty threshold.

ARTICLE IV
CRITERIA FOR SUPPORT
Section 7. Criteria for Support Any solo parent
whose income in the place of domicile falls equal to
or below the poverty threshold as set by the NSCB
and subject to the assessment of the duly appointed
or designated social worker in the area shall be
eligible for assistance: Provided, however, That any
solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in
Sections 16, 17, 18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of
domicile shall refer to the residence mentioned in
Section 8(a) of these Rules.
Section 8. Qualifications of Solo Parent A solo
parent seeking benefits other than those provided for
under Sections 16, 17, 18, 19, 20, 21 and 23 of these
Rules shall be qualified on the basis of the following:

(a) A resident of the area where the

assistance is sought, as certified by
the barangay captain; Provided, that
if the solo parent is a transferee from
another barangay, he/she is required
to secure a clearance from his/her
previous barangay, indicating
whether or not he/she has availed of
any benefits for solo parents, and
the nature of such benefits.

(b) With an income level equal to or below

the poverty threshold as set forth by
NSCB and assessed by a social worker
as provided for under Section 7 of
these Rules.

Duman / Labor I / Prof. Battad / Page 86

Section 9. Assessment an applicant who manifests
the need for assistance under the Act is subject to
assessment by a social worker at the city/municipal
Social Welfare and Development Office. The
assessment shall cover, but not be limited to, the
following:
(a) Determination of the applicants category
as enumerated in Article III Section 6
paragraph (b) of these Rules;
(b) Evaluation of the needs of the applicant
and his/her children as basis for
provision of the appropriate service and
intervention;
(c) Identification of the level of readiness of
the applicant to receive a particular
service/assistance, which shall serve as
basis for the conduct of social
preparation activities prior to the
provision of such service/assistance;
and
(d) Identification of existing and potentially
available resources that may support
the applicant and his/her children.
Section 10. Procedure in Accessing Services for Solo
Parents - A person who needs assistance under this
Act shall comply with the following process;
(a) Visit the Social Welfare and Development
Office of the city or municipality of
her/his residence to manifest her/his
need for assistance;
(b) Fill up application form for the assistance,
indicating but not limited to, the
following information:
1. Name
2. Age
3. Address/Area of Domicile
4. Income per month
5. Source/s of income
6. Number of children
7. Circumstances of being solo;
(c) Undergo the necessary assessment
process as stipulated in Section 9
Article IV of these Rules;
(d) A Social Case Study Report shall be
prepared by the social worker based on
the information/data provided for by the
applicant, as well as his/her
assessment of said applicant, indicating
therein the appropriate services
needed.
(e) The Social Case Study Report, together
with a referral letter prepared by the
social worker, shall be forwarded by the
Office of the City/Municipal Social
Welfare and Development Office to the
agency concerned providing the
appropriate assistance/service.
(f) The social worker shall inform the solo
parent of the status of his/her
application within thirty (30) working
days from the filing of such and shall
require him/her to visit the
agency/institution providing the
assistance. In case the applicant is not
qualified for services under this Act,
he/she will be referred to the
appropriate agency/program for
assistance.
(g) Upon the favorable evaluation of the
social worker, a Solo Parent
Identification Card shall be issued on
the solo parent within 30 days upon
application duly signed by the
city/municipal Social Welfare Officer
and the city/municipal mayor. The Solo
Parent Identification Card is necessary
for the availment of benefits under the
Act and these Rules. Such Identification
Card shall be valid for only one (1) year,
but may be renewed subject to a new
assessment and evaluation;
(h) For the publics information and
guidance, a list of persons who applied
and those who were able to avail of the
benefits under this Act shall be made
available by the concerned
city/municipal social welfare and
development office which processed
their applications.
Section 11. Procedure for Application of Benefits An
applicant who was determined by a social worker to
be eligible for assistance may apply for benefits under
this Act through the following;
(a) The solo parent may go to the agency
providing such benefit bringing with
her/him the Identification Card issued
by the Municipal/City Social Welfare
and Development Office;
(b) Undergo the necessary qualifying
activities required by the agency as
prescribed by these Rules; and
(c) Comply with the requirements set forth by
the agency providing the service for the
duration of the assistance (e.g.
schooling, housing) subject to existing
rules of the agencies concerned.
Section 12. Procedure for Termination of Benefits
(a) A solo parent shall manifest to the Social
Welfare Office his/her intention to
withdraw the availment of the benefits
under this Act.
(b) If the solo parent does not voluntarily
manifest his/her intention to terminate
the provision of benefits and services
before the lapse of one year from the
issuance of the Solo Parent I.D., the
Social Worker, based on a report by the
Duman / Labor I / Prof. Battad / Page 87
 employer or any interested person shall
conduct the necessary
assessment/evaluation to ascertain if
grounds for termination and withdrawal
of benefits exist. The Identification Card
shall cease to be effective upon the
lapse of one year from issuance, unless
renewed based on a new assessment
and evaluation. Failure to renew will
mean that he/she has changed
his/her status as a solo parent.
(c) The solo parent shall be informed of the
result of the assessment/evaluation and
termination of the service, if warranted,
through written notice. The termination
shall take effect 30 days from the
receipt of the notice of termination. In
cases when the service cannot be
terminated in a period of one month,
e.g. schooling, the service shall be
completed until its due time.
The NHA and other participating housing agencies
shall issue the guidelines in the termination of housing
benefits provided in sections 23 and 24 of these
Rules.
(d) The solo parent and his/her children shall
undergo psychosocial counseling with
the social worker to prepare them for
independent living.
Section 13. Relocation of the Family In the event a
solo parent decides to relocate his/her family, he/she
shall inform the city/municipal Social Welfare and
Development Office. Said office shall thereupon
transmit the records to the city/municipal Social
Welfare and Development Office of the place of
relocation.
Section 14. Duty to Monitor It shall be the duty of
the city/municipal Social Welfare Officer who receives
said records, to assign a social worker to monitor the
status of the relocated solo parent and his/her family.
Moreover, it shall also be the duty of said officer to
coordinate with the concerned agencies of any
changes in the status of the solo parent receiving
benefits from said agencies.
ARTICLE V
BENEFITS
Section 15. Comprehensive Package of Social
Development and Welfare Services A adopts the flexible working hours schedule format
comprehensive package of social development and
welfare services for solo parents and their families will
be developed by the DSWD, DOH, DepEd, CHED,
TESDA, DOLE, NHA and DILG, in coordination with
local government units and non-governmental
organizations with proven track record in providing
services for solo parents.
The DSWD shall coordinate with concerned agencies
the implementation of the comprehensive package of
social development and welfare services for solo
parents and their families. The package will initially
include:
(a) Livelihood development services, which
include training on livelihood skills,
basic business management, value
orientation and the provision of seed
capital or job placement.
The criteria and procedure for evaluation of
beneficiaries for the purposes of availing of the
benefits of this item shall be provided for by the DOLE
and TESDA; the provision of seed capital shall be
guided by the credit policy of the National Credit
Council as contained in E.O. No. 138, Rationalization
of Government Directed Credit Program, passed in
1999.
(b) Counseling services, which include
individual, peer group or family
counseling. These will focus on the
resolution of personal relationship and
role conflicts.
The criteria and procedure for evaluation of
beneficiaries for the purposes of availing of the
benefits of this item shall be provided for by the
DSWD;
(c) Parent effectiveness services which
include the provision and expansion of
knowledge and skills of the solo parent
on early childhood development,
behavior management, health care and
proper nutrition, rights and duties of
parents and children;
(d) Critical incidence stress debriefing, which
includes preventive stress management
strategy designed to assist solo parents
in coping with crisis situations and
cases of abuse;
(e) Special projects for individuals in need of
protection which include temporary
shelter, counseling, legal assistance,
medical care, self-concept or ego-
building, crisis management and
spiritual enrichment.
Section 16. Flexible Work Schedule The employer
shall provide for a flexible work schedule for solo
parents: Provided, That the same shall not affect
individual and company productivity: Provided further,
That any employer may request exemption from the
above requirements from the DOLE on certain
meritorious grounds.
In the case of employees in the government service,
flexible working hours will be subject to the discretion
of the head of the agency. In no case shall the weekly
working hours be reduced in the event the agency
(flexi-time). In the adoption of flexi-time, the core
working hours shall be prescribed taking into
consideration the needs of the service..
Section 17. Work Discrimination No
employer shall discriminate against any solo parent
employee with respect to terms and conditions of
employment on account of his/her status.
Section 18. Parental Leave In addition to leave
privileges under existing laws, parental leave of not
more than seven (7) working days every year shall be
granted to any solo parent employee who has
rendered service of at least one (1) year. The seven-
day parental leave shall be non-cumulative.
Section 19. Conditions for Entitlement of Parental
Leave A solo parent shall be entitled to parental
leave provided that:
(a) He/She has rendered at least one (1)
year of service whether continuous or
broken at the time of the affectivity of
the Act;
Duman / Labor I / Prof. Battad / Page 88

(b) He/She has notified his/her employer of
the availment thereof within a
reasonable time period; and
(c) He/She has presented a Solo Parent
Identification Card to his/her employer.
Section 20. Non-conversion of Parental Leave In
the event that the parental leave is not availed of, said
leave shall not be convertible to cash unless
specifically agreed upon previously. However, if said
leave were denied an employee as a result of non-
compliance with the provisions of these Rules by an
employer, the aforementioned leave may be used a
basis for the computation of damages.
Section 21. Crediting of Existing Leave If there is an
existing or similar benefit under a company policy, or
a collective bargaining agreement or collective
negotiation agreement the same shall be credited as
such. If the same is greater than the seven (7) days
provided for in the Act, the greater benefit shall
prevail.
Emergency or contingency leave provided under a
company policy or a collective bargaining agreement
shall not be credited as compliance with the parental
leave provided for under the Act and these Rules.
Section 22. Educational Benefits The DepEd, CHED
and TESDA shall provide the following benefits and
privileges:
(a) Scholarship programs for qualified solo
parents and their children in
institutions of basic, tertiary and
technical/skills education;
(b) Non-formal education programs
appropriate for solo parents and their
children.
Application Procedure:
1. Applicant must secure application form
from either DepEd, CHED and TESDA
depending on their need;
2. Submit the duly accomplished application
form together with the required
documents to the appropriate agency.
The following are the documents required to be
attached with the application:
1. Solo Parent Identification Card
2. Barangay Clearance
3. Birth Certificate
4. Notice of admission from the
school
5. Original or Certified True Copy of
the transcript of record, or the
Report Care of the last year the
applicant attended school.
Section 23. Housing Benefits Solo parents who
meet the eligibility criteria for housing assistance
under R.A. No. 7279 (Urban Development and
Housing Act of 1992) and other related rules and
regulations of participating housing agencies shall be
provided with liberal terms of payment on government
low-cost housing projects, in accordance with housing
law provisions, prioritizing applicants below the
poverty line as declared by the NSCB.
Section24. The NHA shall make available housing
units to solo parents in its housing projects subject to
existing disposition policies or may refer them to other
housing projects, as appropriate, provided that:
(a) The identified solo parent must be eligible
for assistance under the provisions of
this Act;
(b) Solo parents applying for housing
benefits must meet the qualification
criteria for housing assistance under
Republic Act 7279, or the Urban
Development and Housing Act
(UDHA) and other NHA eligibility
criteria under existing policies, rules
and regulations; and
(c) Eligible solo parents shall file their
application for housing unit directly
with the concerned NHA Project
Offices.
Upon written request, the NHA shall provide the
DSWD a listing of NHA projects with available
housing units for disposition. This list shall be updated
and provided semi-annually.
Section 25. Medical Assistance The DOH shall
develop a comprehensive health care program for
solo parents and their children. The program shall be
implemented by the DOH through their retained
hospitals and medical centers and the local
government units (LGUs) through their
provincial/district/city/municipal hospitals and rural
health units (RHUs).
Section 26. Essential Health Packages To ensure
the state of well-being of the solo parent and his/her
family, healthy/medical services shall be made
available at all times, in all levels of health care
delivery system as mentioned in the previous section.
These health/medical services shall be part of the
regular essential health packages being provided at
various stages of life.
ARTICLE VI
ADDITIONAL POWERS AND FUNCTIONS OF THE
DSWD
Section 27. Additional Powers and Functions of the
DSWD The DSWD shall perform the following
additional powers and functions relative to the welfare
and development of solo parents and their families:
(a) Conduct research necessary to:
(1) develop a new body of knowledge
on solo parents;
(2) Define executive and legislative
measures needed to promote and
protect the interest of solo parents
and their children; and
(3) Assess the effectiveness of policies
and programs designed for solo
parents and their children;
Duman / Labor I / Prof. Battad / Page 89
 The commissioning or contracting out for the conduct
of said research shall be inherent in the performance
of herein function;
(b) Coordinate the activities of various
government agencies, LGUs, and non-
government organizations engaged in
promoting and protecting the interests
of solo parents and their children;
(c) Coordinate the dissemination of
information concerning the benefits of
the Act and these Rules, as well as
other advocacy activities; and
(d) Monitor the implementation of the
provisions of this Act and suggest
mechanisms by which such provisions
are efficiently and effectively
implemented.
Section 28. Review Committee A special review
committee comprised of members from the DSWD,
DOH, DepEd, DILG, CHED, TESDA, NHA, DOLE
and other related government agencies and non-
government organizations or civil society involved in
the implementation of the provisions of the Act shall
be created and headed by the DSWD for the purpose
of evaluating the efficacy and relevancy of the
provisions of the Act to the present situation.
The duties and responsibilities of the members of this
Review Committee shall be considered as part of their
regular functions.
ARTICLE VII
FINAL PROVISIONS
Section 29. Appropriations The amount necessary
to carry out the provisions of the Act shall be included
in the budget of concerned government agencies in
the General Appropriations Act of the year following
its enactment into law and thereafter.
Section 30. Repealing Clause All laws, decrees,
executive orders, administrative orders or parts
thereof inconsistent with the provisions of the Act are
hereby repealed, amended or modified accordingly.
Section 31. Separability Clause If any provision of
the Act is held invalid or unconstitutional, other
provisions not affected thereby shall continue to be in
full force and effect.
Section 32. Effectivity Clause These Implementing
Rules and Regulations shall take effect fifteen (15)
days following its publication in one (1) national
newspaper of general circulation.
7. Service Charges
Reference: Art. 96; Omnibus Rules, Book III, Rule VI
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,
a.
the share of the covered employees shall be
considered integrated in their wages.
b.
RULE VI
Service Charges
SECTION 1. Coverage. This rule shall apply only to
establishments collecting service charges such as
hotels, restaurants, lodging houses, night clubs,
cocktail lounge, massage clinics, bars, casinos and
gambling houses, and similar enterprises, including
those entities operating primarily as private
subsidiaries of the Government.
SECTION 2. Employees covered. This rule shall
apply to all employees of covered employers,
regardless of their positions, designations or
employment status, and irrespective of the method
by which their wages are paid except to managerial
employees.
As used herein, a "managerial employee" shall mean
one who is vested with powers or prerogatives to lay
down and execute management policies and/or to
hire, transfer, suspend, lay-off, recall, discharge,
assign, or discipline employees or to effectively
recommend such managerial actions. All employees
not falling within this definition shall be considered
rank-and-file employees.
SECTION 3. Distribution of service charges. All
service charges collected by covered employers shall
be distributed at the rate of 85% for the employees
and 15% for the management. The 85% shall be
distributed equally among the covered employees.
The 15% shall be for the disposition by management
to answer for losses and breakages and distribution
to managerial employees at the discretion of the
management in the latter case.
SECTION 4. Frequency of distribution. The shares
referred to herein shall be distributed and paid to the
employees not less than once every two (2) weeks or
twice a month at intervals not exceeding sixteen (16)
days.
SECTION 5. Integration of service charges. In case
the service charges is abolished the share of covered
employees shall be considered integrated in their
wages. The basis of the amount to be integrated
shall be the average monthly share of each
employee for the past twelve (12) months
immediately preceding the abolition of withdrawal of
such charges.
SECTION 6. Relation to agreements. Nothing in this
Rule shall prevent the employer and his employees
from entering into any agreement with terms more
favorable to the employees than those provided
herein, or be used to diminish any benefit granted to
the employees under existing laws, agreement and
voluntary employer practice.
SECTION 7. This rule shall be without prejudice to
existing, future collective bargaining agreements.
Nothing in this rule shall be construed to justify the
reduction or diminution of any benefit being enjoyed
by any employee at the time of effectivity of this
rule.
Covered Employees, Art. 96
Sharing, Art. 96
Duman / Labor I / Prof. Battad / Page 90
G. Minimum Wages and Wage Fixing Machinery
Reference: Art. 96; Omnibus Rules, Book III, Rules
VII-VIII
ART. 99. Regional minimum wages. - The minimum
wage rates for agricultural and non-agricultural
employees and workers in each and every region of
the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards. (As
amended by Section 3, Republic Act No. 6727, June
9, 1989).
Art XIII, Section 3. The State shall afford full
protection to labor, local and overseas, organized
and unorganized, and promote full employment and
equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-
organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in
policy and decision-making processes affecting their
rights and benefits as may be provided by law.
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial
peace.
The State shall regulate the relations between
workers and employers, recognizing the right of labor
to its just share in the fruits of production and the
right of enterprises to reasonable returns to
investments, and to expansion and growth.
RULE VII
Wages
SECTION 1. Definition of Terms. As used in this Rules
a) "Act" means Republic Act No. 6727;
b) "Commission" means the National Wages and
Productivity Commission;
c) "Board" means the Regional Tripartite Wages and
Productivity Board;
d) "Agriculture" refers to all farming activities in all
its branches and includes among others, the
cultivation and tillage of the soil, production,
cultivation, growing and harvesting of any
agricultural or horticultural commodities, dairying,
raising of livestock or poultry, the culture of fish and
other aquatic products in farms or ponds, and any
activities performed by a farmer or on a farm as an
incident to or in conjunction with such farming
operations, but does not include the manufacturing
and/or processing of sugar, coconut, abaca, tobacco,
pineapple, aquatic or other farm products;
e) "Plantation Agricultural Enterprise" is one engaged
in agriculture within an area of more than 24
hectares in a locality and/or which employs at least
20 workers. Any other agricultural enterprise shall be
considered as "Non-Plantation Agricultural
Enterprises";
f) "Retail Establishment" is one principally engaged in
the sale of goods to end-users for personal or
household use;
g) "Service Establishment" is one primarily engaged
in the sale of service to individuals for their own or
household use and is generally recognized as such;
h) "Cottage/Handicraft Establishment" is one
engaged in an economic endeavor in which the
products are primarily done in the home or such
other places for profit which requires manual
dexterity and craftsmanship and whose capitalization
does not exceed P500,000, regardless of previous
registration with the defunct NACIDA;
i) "National Capital Region" covers the cities of
Kalookan, Manila, Pasay and Quezon and the
municipalities of Las Pias, Makati, Malabon,
Mandaluyong, Marikina, Muntinlupa, Navotas,
Paraaque, Pasig, Pateros, San Juan, Taguig and
Valenzuela;
j) "Region III" covers the provinces of Bataan,
Bulacan, Nueva Ecija, Pampanga, Tarlac, and
Zambales and the cities of Angeles, Cabanatuan,
Olongapo, Palayan and San Jose;
k) "Region IV" covers the provinces of Aurora,
Batangas, Cavite, Laguna, Marinduque, Occidental
Mindoro, Palawan, Quezon, Rizal and Romblon and
the cities of Batangas, Cavite, Lipa, Lucena, Puerto
Princesa, San Pablo, Tagaytay and Trece Martires;
l) "Department" refers to the Department of Labor
and Employment;
m) "Secretary" means the Secretary of Labor and
Employment;
n) "Basic Wage" means all remuneration or earnings
paid by an employer to a worker for services
rendered on normal working days and hours but does
not include cost-of-living allowances, profit sharing
payments, premium payments, 13th month pay or
other monetary benefits which are not considered as
part of or integrated into the regular salary of the
workers on the date the Act became effective."
o) "Statutory Minimum Wage" is the lowest wage
fixed by law that an employer can pay his workers;
p) "Wage Distortion" means a situation where an
increase in prescribed wage rates results in the
elimination or severe contraction of intentional
quantitative differences in wage or salary rates
between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation;
q) "Capitalization" means paid-up capital, in the case
of a corporation, and total invested capital, in the
case of a partnership or single proprietorship.
CHAPTER I
Wage Increase
SECTION 1. Coverage. The wage increase
prescribed under the Act shall apply to all workers
and employees in the private sector regardless of
Duman / Labor I / Prof. Battad / Page 91
their position, designation or status, and irrespective
of the method by which their wages are paid, except:
a) Household or domestic helpers, including family
drivers and workers in the personal service of
another;
b) Workers and employees in retail/service
establishments regularly employing not more than
10 workers, when exempted from compliance with
the Act, for a period fixed by the Commission/Boards
in accordance with Section 4 (c) of the Act and
Section 15, Chapter 1 of these Rules;
c) Workers and employees in new business
enterprises outside the National Capital Region and
export processing zones for a period of not more
than two or three years, as the case may be, from
the start of operations when exempted in accordance
with Section 5 of the Act and Section 15, Chapter I of
these Rules;
d) Workers and employees receiving a basic wage of
more than P100.00 per day.
(i) P3,257.50 where the workers and employees
work everyday, including premium payments for
Sundays or rest days, special days and regular
holidays.
(ii) P3,041.67 where the workers and employees
do not work but considered paid on rest days, special
days and regular holidays.
(iii) P2,616.67 where the workers and employees
do not work and are not considered paid on Sundays
or rest days.
(iv) P2,183.33 where the workers and employees
do not work and are not considered paid on
Saturdays and Sundays or rest days.
c) Workers and employees who, prior to July 1, 1989,
were receiving a basic wage of more than P100.00
per day or its monthly equivalent, are not by law
entitled to the wage increase provided under the Act.
They may however, receive wage increases through
the correction of wage distortions in accordance with
Section 16, Chapter I of these Rules.

SECTION 2. Effectivity. The Act takes effect on July SECTION 5. Daily Statutory Minimum Wage Rates.
1, 1989, 15 days following its complete publication in The daily minimum wage rates of workers and
two newspapers of general circulation on June 15, employees shall be as follows:
1989 pursuant to Section 15 thereof.
Sector/Industry Under Under
SECTION 3. Amount of Minimum Wage Increase. R. A. 6640 R. A. 6727
Effective July 1, 1989, the daily statutory minimum (Effective (Effective
wage rates of covered workers and employees shall Dec. 14, July 1,
be increased as follows: 1987) 1989)

a) P25.00 for those in the National Capital Region; A. NATIONAL CAPITAL REGION

b) P25.00 for those outside the National Capital Non-Agriculture P64.00 P89.00
Region, except for the following:
Agriculture
P20.00 for those in plantation agricultural enterprises Plantation 54.00 79.00
with an annual gross sales of less than P5 million in
the fiscal year immediately preceding the effectivity
Non-Plantation 43.50 68.50
of the Act;

Cottage/Handicraft
P15.00 for those in the following enterprises:
Employing more than 30
workers 52.00 77.00
1. Non-plantation agriculture
Employing not more than
2. Cottage/handicraft 30 workers 50.00 75.00

3. Retail/Service regularly employing not more than Private Hospitals

10 workers With bed capacity of more
than 100 64.00 89.00
4. Business enterprises with a capitalization of not
more than P500,000 and employing not more than With bed capacity of 100
20 workers. or less 60.00 85.00

SECTION 4. When Wage Increase Due Other Workers. Retail/Service

a) All workers and employees who, prior to July 1, Employing more than 15
1989, were already receiving a basic wage above the workers 64.00 89.00
statutory minimum wage rates provided under
Republic Act 6640 but not over P100.00 per day shall
Employing 11 to 15
receive a wage increase equivalent to that provided
workers 60.00 85.00
in the preceding Section.

Employing not more than

b) Those receiving not more than the following
10 workers 43.00 68.00
monthly basic wage rates prior to July 1, 1989 shall
be deemed covered by the preceding subsection:
B. OUTSIDE NATIONAL CAPITAL REGION

Duman / Labor I / Prof. Battad / Page 92

Non-Agriculture 64.00 89.00 Municipalities and Cities
w/ population of not more
than 150,000
Agriculture
Plantation with annual gross
sales of P5M or more 54.00 79.00 Employing more than 10
workers 60.00
75.00
Plantation with annual gross
sales of less than P5M 54.00 74.00
SECTION 6. Suggested Formula in Determining the
Equivalent Monthly Statutory Minimum Wage Rates.
Non-plantation 43.50 58.50
Without prejudice to existing company practices,
agreements or policies, the following formula may be
Cottage/Handicraft used as guides in determining the equivalent
Employing more than monthly statutory minimum wage rates:
30 workers 52.00 67.00
a) For those who are required to work everyday
Employing not more including Sundays or rest days, special days and
than 30 workers 50.00 65.00 regular holidays:

Private Hospitals 60.00 85.00 Equivalent Applicable daily wage rate (ADR) x 390.90
days
Retail/Service
Cities w/ population of more Monthly =
than 150,000
Rate (EMR) 12
Employing more than
15 workers 64.00 89.00
Where 390.90 days =

Employing 11 to 15 workers 60.00 85.00

302 days Ordinary working days

Employing not more than

20 days 10 regular holidays x 200%
10 workers 43.00 58.00

66.30 days 51 rest days x 130%

Sugar Mills

2.60 days 2 special days x 130%

Agriculture

390.90 days Total equivalent number of days.

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

EMR =
Non-plantation 43.50 58.50

12
Business Enterprises w/ Capitalization
of not more than P500,000 and
employing not more than 20 workers Where 365 days =
Non-Agriculture 64.00 79.00
302 days Ordinary working days
Agriculture Plantation
Products Other than Sugar 54.00 69.00
51 days Rest days

Sugar 48.50
10 days Regular holidays
63.50

2 days Special days

Private Hospitals 60.00 75.00

365 days Total equivalent number of days

Retail/Service
Cities w/ population of more
than 150,000 c) For those who do not work and are not considered
paid on Sundays or rest days:
ADR x 314 days
Employing more than
15 workers 64.00
79.00 EMR =

Employing 11 to 15 workers 60.00 75.00 12

Where 314 days =

Duman / Labor I / Prof. Battad / Page 93
302 days Ordinary working days
10 days Regular holidays
2 days Special days (If considered
paid; If actually worked,
this is equivalent to 2.6 days)
314 days Total equivalent number of days
d) For those who do not work and are not considered
paid on Saturdays or rest days:
ADR x 262 days
EMR =
12
Where 262 days =
250 days Ordinary working days
10 days Regular holidays
2 days Special days (If considered paid; If actually
worked, this is equivalent to 2.6 days)
262 days Total equivalent number of days
Note: For workers whose rest days fall on Sundays,
the number of rest days in a year is reduced from 52
to 51 days, the last Sunday of August being a regular
holiday under Executive Order No. 201. For purposes
of computation, said holiday, although still a rest day
for them, is included in the ten regular holidays. For
workers whose rest days do not fall on Sundays, the
number of rest days is 52 days, as there are 52
weeks in a year.
Nothing herein shall be considered as authorizing the
reduction of benefits granted under existing
agreements or employer practices/policies.
SECTION 7. Basis of Minimum Wages Rates. The
statutory minimum wage rules prescribed under the
Act shall be for the normal working hours, which shall
not exceed eight hours work a day.
SECTION 8. Creditable Wage Increase.
a) No wage increase shall be credited as compliance
with the increases prescribed under the Act unless
expressly provided under collective bargaining
agreements; and, such wage increase was granted
not earlier than April 1, 1989 but not later than July
1, 1989. Where the wage increase granted is less
than the prescribed increase under the Act, the
employer shall pay the difference.
b) Anniversary wage increase provided in collective
agreements, merit wage increase, and those
resulting from the regularization or promotion of
employees shall not be credited as compliance
thereto.
SECTION 9. Workers Paid by Results.
a) All workers paid by results, including those who
are paid on piecework, takay, pakyaw, or task basis,
shall receive not less than the applicable statutory
minimum wage rates prescribed under the Act for
the normal working hours which shall not exceed
eight hours work a day, or a proportion thereof for
work of less than the normal working hours.
The adjusted minimum wage rates for workers paid
by results shall be computed in accordance with the
following steps:
1) Amount of increase in AMW - Previous AMW x 100
= % Increase;
2) Existing rate/piece x % increase = increase in
rate/piece;
3) Existing rate/piece + increase in rate/piece =
Adjusted rate/piece.
Where AMW is the applicable minimum wage rate.
b) The wage rates of workers who are paid by results
shall continue to be established in accordance with
Article 101 of the Labor Code, as amended and its
implementing regulations.
SECTION 10. Wages of Special Groups of Workers.
Wages of apprentices, learners and handicapped
workers shall in no case be less than 75 percent of
the applicable statutory minimum wage rates.
All recognized learnership and apprenticeship
agreements entered into before July 1, 1989 shall be
considered as automatically modified insofar as their
wage clauses are concerned to reflect the increases
prescribed under the Act.
SECTION 11. Application to Contractors. In the
case of contracts for construction projects and for
security, janitorial and similar services, the
prescribed wage increases shall be borne by the
principals or clients of the construction/service
contractors and the contract shall be deemed
amended accordingly. In the event, however, that the
principal or client fails to pay the prescribed wage
rates, the construction/service contractor shall be
jointly and severally liable with his principal or client.
SECTION 12. Application to Private Educational
Institution. Private educational institutions which
increased tuition fees beginning school year 1989-
1990 shall comply with the P25.00 per day wage
increase prescribed under the Act effective as
follows:
a) In cases where the tuition fee increase was
effected before the effectivity of the Act, the wage
increase shall take effect only July 1, 1989.
b) In cases where the tuition fee increase was
effected on or after the effectivity of the Act, the
wage increase shall take effect not later than the
date the school actually increased tuition but in the
latter case, such wage increase may not be made
retroactive in July 1, 1989.
Beginning school year 1990-1991, all schools shall
implement the wage increase regardless of whether
or not they have actually increased tuition fees.
Duman / Labor I / Prof. Battad / Page 94
SECTION 13. Mobile and Branch Workers. The
statutory minimum wage rates of workers, who by
the nature of their work have to travel, shall be those
applicable in the domicile or head office of the
employer.
The minimum wage rates of workers working in
branches or agencies of establishments in or outside
the National Capital Region shall be those applicable
in the place where they are stationed.
SECTION 14. Transfer of Personnel. The transfer of
personnel to areas outside the National Capital
Region shall not be a valid ground for the reduction
of the wage rates being enjoyed by the workers prior
to such transfer. The workers transferred to the
National Capital Region shall be entitled to the
minimum wage rate applicable therein.
SECTION 15. Exemptions.
a) The following establishments may be exempted
from compliance with the wage increase prescribed
under the Act:
1) Retail/Service establishments regularly employing
not more than 10 workers upon application with and
as determined by the appropriate Board in
accordance with applicable guidelines to be issued
by the Commission.
2) New business enterprises that may be established
outside the National Capital Region and export
processing zones from July 1, 1989 to June 30, 1993,
whose operation or investments need initial
assistance may be exempted for not more than three
years from the start of operations, subject to
guidelines to be issued by the Secretary in
consultation with the Department of Trade and
Industry and the Department of Agriculture.
New business enterprises in Region III (Central
Luzon) and Region IV (Southern Tagalog) may be
exempted for two years only from start of operations,
except those that may be established in the
provinces of Palawan, Oriental Mindoro, Occidental
Mindoro, Marinduque, Romblon, Quezon and Aurora,
which may also be exempted for not more than three
years from the start of operations.
b) Whenever an application for exemption has been
duly filed with the appropriate office in the
Department/Board, action by the Regional Office of
the Department on any complaints for alleged non-
compliance with the Act shall be deferred pending
resolution of the applicant for exemption.
c) In the event that the application for exemption is
not granted, the workers and employees shall
receive the appropriate compensation due them as
provided for under the Act plus interest of one
percent per month retroactive to July 1, 1989 or the
start of operations whichever is applicable.
SECTION 16. Effects on Existing Wage Structure.
Where the application of the wage increase
prescribed herein results in distortions in the wage
structure within an establishment which gives rise to
a dispute therein, such dispute shall first be settled
voluntarily between the parties. In the event of a
deadlock, such dispute shall be finally resolved
through compulsory arbitration by the regional
arbitration branch of the National Labor Relations
Commission (NLRC) having jurisdiction over the
workplace.
The NLRC shall conduct continuous hearings and
decide any dispute arising from wage distortions
within twenty calendar days from the time said
dispute is formally submitted to it for arbitration. The
pendency of a dispute arising from a wage distortion
shall not in any way delay the applicability of the
increases in the wage rates prescribed under the Act.
Any issue involving wage distortion shall not be a
ground for a strike/lockout.
SECTION 17. Complaints for Non-Compliance.
Complaints for non-compliance with the wage
increases prescribed under the Act shall be filed with
the Regional Offices of the Department having
jurisdiction over the workplace and shall be the
subject of enforcement proceedings under Articles
128 and 129 of the Labor Code, as amended.
SECTION 18. Conduct of inspection by the
Department. The Department shall conduct
inspections of establishments, as often as necessary,
to determine whether the workers are paid the
prescribed wage rates and other benefits granted by
law or any Wage Order. In the conduct of inspection
in unionized companies, Department inspectors shall
always be accompanied by the president or other
responsible officer of the recognized bargaining unit
or of any interested union. In the case of non-
unionized establishments, a worker representing the
workers in the said company shall accompany the
inspector.
The worker's representative shall have the right to
submit his own findings to the Department and to
testify on the same if he does not concur with the
findings of the labor inspector.
SECTION 19. Payment of Wages. Upon written
petition of the majority of the workers and
employees concerned, all private establishments,
companies, businesses and other entities with at
least twenty workers and located within one
kilometer radius to a commercial, savings or rural
bank, shall pay the wages and other benefits of their
workers through any of said banks, within the period
and in the manner and form prescribed under the
Labor Code as amended.
SECTION 20. Duty of Bank. Whenever applicable
and upon request of concerned worker or union, the
bank through which wages and other benefits are
paid issue a certification of the record of payment of
said wages and benefits of a particular worker or
workers for a particular payroll period.
CHAPTER II
The National Wages and Productivity Commission
and Regional Tripartite Wages and Productivity
Boards
SECTION 1. Commission. The National Wages and
Productivity Commission created under the Act shall
hold office in the National Capital Region. The
Commission shall be attached to the Department for
policy and program coordination.
SECTION 2. Powers and Functions of the Commission.
The Commission shall have the following powers
and functions:
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;
Duman / Labor I / Prof. Battad / Page 95
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 Board 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,
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.
SECTION 3. Composition of the Commission. The
Commission shall be composed of the Secretary as
ex-officio Chairman, the Director General of the
National Economic and Development Authority
(NEDA) as ex-officio Vice-Chairman and two
members each from workers and employers sectors
who shall be appointed by the President for a term of
five years upon recommendation of the Secretary.
The recommendees shall be selected from the lists of
nominees submitted by the workers' and employers'
sectors. The Executive Director of the Commission
Secretariat shall be also a member of the
Commission.
The members of the Commission representing labor
and management shall have the same rank,
emoluments, allowances and other benefits as those
prescribed by law for labor and management
representatives in the Employees' Compensation
Commission.
SECTION 4. Commission Secretariat. The
Commission shall be assisted by a Secretariat to be
headed by an Executive Director and two Deputy
Directors who shall be appointed by the President
upon recommendation of the Secretary.
The Executive Director shall have the rank of a
Department Assistant Secretary, while the Deputy
Directors that of a Bureau Director. The Executive
Director and Deputy Directors shall receive the
corresponding salary, benefits and other emoluments
of the positions.
SECTION 5. Regional Tripartite Wages and
Productivity Boards. The Regional Wages and
Productivity Boards created under the Act in all
regions, including autonomous regions as may be
established by law, shall hold offices in areas where
the Regional Offices of the Department are located.
SECTION 6. Powers and Functions of the Boards.
The Boards shall have the following powers and
functions:
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 region, 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 Boards as may be
necessary to attain the policy and intention of the
Labor 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
the Labor Code.
Implementation of the plans, programs and projects
of the Boards shall be through the respective
Regional Offices of the Department, provided,
however, that the Boards shall have technical
supervision over the Regional Office of the
Department with respect to the implementation of
these plans, programs and projects.
SECTION 7. Compositions of the Boards. Each
Board shall be composed of the Regional Director of
the Department as Chairman, the Regional Directors
of the National Economic and Development Authority
(NEDA) and Department of Trade and Industry (DTI)
as Vice-Chairmen and two members each of workers
and employers sectors who shall be appointed by the
President for a term of five years upon the
recommendation of the Secretary. The
recommendees shall be selected from the list of
nominees submitted by the workers and employers
sectors.
Each Board shall be assisted by a Secretariat.
SECTION 8. Authority to Organize and Appoint
Personnel. The Chairman of the Commission shall
organize such units and appoint the necessary
personnel of the Commission and Board Secretaries,
subject to pertinent laws, rules and regulations.
CHAPTER III
Minimum Wage Determination
SECTION 1. Regional Minimum Wages. The
minimum wage rates for agricultural and non-
Duman / Labor I / Prof. Battad / Page 96
agricultural workers and employees in every region
shall be those prescribed by the Boards which shall in
no case be lower than the statutory minimum wage
rates. These wage rates may include wages by
industry, province or locality as may be deemed
necessary by the Boards.
SECTION 2. Standards/Criteria for Minimum Wage
Fixing. The regional minimum wages to be
established by the Boards shall be as nearly
adequate as is economically feasible to maintain the
minimum standards of living necessary for the
health, efficiency and general well-being of the
workers within the framework of the national
economic and social development programs. In the
determination of regional minimum wages, the
Boards, shall, among other relevant factors, consider
the following:
a) The demand for living wages;
b) Wage adjustment vis-a-vis the consumer price
index;
c) The cost of living and changes or increases
therein;
d) The needs of workers and their families;
e) The need to induce industries to invest in
countryside;
f) Improvements in standards of living;
g) The prevailing wage levels;
h) Fair return of the capital invested and capacity to
pay of employers;
i) Effects on employment generation and family
income; and
j) The equitable distribution of income and wealth
along the imperatives of economic and social
development.
SECTION 3. Wage Order. Whenever conditions in
the region so warrant, the Board shall investigate
and study all pertinent facts; and, based on
standards and criteria prescribed herein, shall
determine whether a Wage Order should be issued.
In the performance of its wage determining
functions, the Board shall conduct public hearings
and consultations giving notices to employees' and
employers' groups, provincial, city and municipal
officials and other interested parties.
SECTION 4. Effectivity of Wage Order. Any Wage
Order issued by the Board shall take effect 15 days
after its complete publication in at least one
newspaper of general circulation in the region.
SECTION 5. Appeal to the Commission. Any party
aggrieved by the Wage Order issued by the Board
may file an appeal with the Commission within ten
calendar days from the publication of the Order. The
Commission shall decide the appeal within sixty
calendar days from the date of filing.
SECTION 6. Effect of Appeal. The filing of the
appeal shall not suspend the effectivity of the Wage
Order unless the person appealing such order files
with the Commission an undertaking with a surety or
sureties in such amount as may be fixed by the
Commission.
SECTION 7. Wage Distortions. Where the
application of any wage increase resulting from a
Wage Order issued by any Board results in distortions
in the wage structure within an establishment, the
employer and the union shall negotiate to correct the
distortions using the grievance procedure under their
collective bargaining agreement. If it remains
unresolved, it shall be decided through voluntary
arbitration ten calendar days from the time the
dispute was referred for voluntary arbitration, unless
otherwise agreed by the parties in writing.
Where there are no collective agreements or
recognized labor unions, the employer and workers
shall endeavor to correct the wage distortion. Any
dispute arising therefrom shall be settled through the
National Conciliation and Mediation Board and if it
remains unresolved after ten calendar days of
conciliation, it shall be referred to the appropriate
branch of the National Labor Relations Commission
(NLRC). The NLRC shall conduct continuous hearings
and decide the dispute within twenty calendar days
from the time said dispute is submitted for
compulsory arbitration.
The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability
of any wage increase prescribed pursuant to the
provisions of law or Wage Order.
SECTION 8. Non-Diminution of Benefits. Nothing in
the Act and in these Rules shall be construed to
reduce any existing laws, decrees, issuances,
executive orders, and/or under any contract or
agreement between the workers and employers.
SECTION 9. Prohibition Against Injunction. No
preliminary or permanent injunction or temporary
restraining order may be issued by any court,
tribunal or other entity against any proceedings
before the Commission or Boards.
SECTION 10. Penal Provisions. Any person,
corporation trust, firm, partnership, association or
entity which refuses or fails to pay any of the
prescribed increases or adjustments in the wage
rates made in accordance with the Act shall be
punished by a fine not exceeding P25,000 and/or
imprisonment of not less than one year nor more
than two years: Provided, that any person convicted
under the Act shall not be entitled to the benefits
provided for under the Probation Law.
If the violation is committed by a corporation, trust or
firm, partnership, association or any other entity, the
penalty of imprisonment shall be imposed upon the
entity's responsible officers, including, but not limited
to, the president, vice-president, chief executive
officer, general manager, managing director or
partner.
SECTION 11. Registration/Reporting Requirement.
Any person, company, corporation, partnership or
any other entity engaged in business shall submit
annually a verified itemized listing of their labor
component to the appropriate Board and the National
Statistics Office not later than January 31 of each
year, starting on January 31, 1990 in accordance with
the form to be prescribed by the Commission. The
listing shall specify the names, salaries and wages of
their workers and employees below the managerial
Duman / Labor I / Prof. Battad / Page 97
level including learners, apprentices and RULE VIII
disabled/handicapped workers. Payment of Wages

CHAPTER IV SECTION 1. Manner of wage payment. As a

Transitory Provisions
SECTION 1. Abolition of the National Wages Council
and the National Productivity Commission. The
National Wages Council created under Executive
Order No. 614 and the National Productivity
Commission created under Executive Order No. 615
are abolished. All properties, records, equipment,
buildings, facilities, and other assets, liabilities and
appropriations of and belonging to
abovementioned offices, as well as other matters
pending herein, shall be transferred to the
Commission. All personnel of the above abolished
offices shall continue to function in a hold-over
capacity and shall be preferentially considered for
appointments to or placements in
Commission/Boards.
general rule, wages shall be paid in legal tender and
the use of tokens, promissory notes, vouchers,
coupons, or any other form alleged to represent legal
tender is absolutely prohibited even when expressly
requested by the employee.
SECTION 2. Payment by check. Payment of wages
by bank checks, postal checks or money orders is
allowed where such manner of wage payment is
the customary on the date of the effectivity of the Code,
where it is so stipulated in a collective agreement, or
where all of the following conditions are met:
(a) There is a bank or other facility for encashment
within a radius of one (1) kilometer from the
the
workplace;

(b) The employer or any of his agents or

Any official or employee separated from the service
representatives does not receive any pecuniary
as a result of the abolition of offices pursuant to the
benefit directly or indirectly from the arrangement;
Act shall be entitled to appropriate separation pay of
one month salary for every year of service and/or
retirement and other benefits accruing to them under (c) The employees are given reasonable time during
existing laws. In lieu thereof, at the option of the banking hours to withdraw their wages from the bank
employee, he shall be preferentially considered for which time shall be considered as compensable
employment in the government or in any of its hours worked if done during working hours; and
subdivisions, instrumentalities, or agencies, including
government owned or controlled corporations and
(d) The payment by check is with the written consent
their subsidiaries.
of the employees concerned if there is no collective
agreement authorizing the payment of wages by
SECTION 2. Interim Processing of Applications for bank checks.
Exemption and Submission of Reports. Pending the
operationalization of the Commission and Boards, the
SECTION 3. Time of payment. (a) Wages shall be
National Wages Council shall, in the interim, receive
paid not less than once every two (2) weeks or twice
and process applications for exemption subject to
a month at intervals not exceeding sixteen (16) days,
guidelines to be issued by the Secretary, in
unless payment cannot be made with such regularity
accordance with Section 11 of the Act.
due to force majeure or circumstances beyond the
employer's control in which case the employer shall
Reports of establishments on their labor component, pay the wages immediately after such force majeure
including wages and salaries of their workers or circumstances have ceased.
prescribed under the Act, shall be submitted to the
National Wages Council through the Regional Offices
(b) In case of payment of wages by results involving
of the Department.
work which cannot be finished in two (2) weeks,
payment shall be made at intervals not exceeding
SECTION 3. Funding Requirement. The funds sixteen days in proportion to the amount of work
necessary to carry out the provisions of the Act shall completed. Final settlement shall be made
be taken from the Compensation and Organization immediately upon completion of the work.
Adjustment Fund, the Contingent Fund, and other
savings under Republic Act No. 6688, otherwise
SECTION 4. Place of payment. As a general rule,
known as the General Appropriations Act of 1989, or
the place of payment shall be at or near the place of
from any unappropriated funds of the National
undertaking. Payment in a place other than the work
Treasury; Provided, that the funding requirements
place shall be permissible only under the following
necessary to implement the Act shall be included in
circumstances:
the annual General Appropriations Act for the
succeeding years.
(a) When payment cannot be effected at or near the
place of work by reason of the deterioration of peace
SECTION 4. Repealing Clause. All laws, orders,
and order conditions, or by reason of actual or
issuances, rules and regulations or parts thereof
impending emergencies caused by fire, flood,
inconsistent with the provisions of the Act and this
epidemic or other calamity rendering payment
Rules are hereby repealed, amended or modified
thereat impossible;
accordingly. If any provision or part of the Act and
this Rules, or the application thereof to any person or
circumstance is held invalid or unconstitutional, the (b) When the employer provides free transportation
remainder of the Act and these Rules or the to the employees back and forth; and
application of such provision or part thereof to other
persons or circumstance shall not be affected
(c) Under any other analogous circumstances;
thereby.
Provided, That the time spent by the employees in
collecting their wages shall be considered as
SECTION 5. Effectivity. These rules shall take effect compensable hours worked;
on July 1, 1989.

Duman / Labor I / Prof. Battad / Page 98

(d) No employer shall pay his employees in any bar,
night or day club, drinking establishment, massage
clinic, dance hall, or other similar places or in places
where games are played with stakes of money or
things representing money except in the case of
persons employed in said places.
SECTION 5. Direct payment of wages. Payment of
wages shall be made direct to the employee entitled
thereto except in the following cases:
(a) Where the employer is authorized in writing by
the employee to pay his wages to a member of his
family;
(b) Where payment to another person of any part of
the employee's wages is authorized by existing law,
including payments for the insurance premiums of
the employee and union dues where the right to
check-off has been recognized by the employer in
accordance with a collective agreement or
authorized in writing by the individual employees
concerned; or
(c) In case of death of the employee as provided in
the succeeding Section.
SECTION 6. Wages of deceased employee. The
payment of the wages of a deceased employee shall
be made to his heirs without the necessity of
intestate proceedings. When the heirs are of age,
they shall execute an affidavit attesting to their
relationship to the deceased and the fact that they
are his heirs to the exclusion of all other persons. In
case any of the heirs is a minor, such affidavit shall
be executed in his behalf by his natural guardian or
next of kin. Upon presentation of the affidavit to the
employer, he shall make payment to the heirs as
representative of the Secretary of Labor and
Employment.
SECTION 7. Civil liability of employer and contractors.
Every employer or indirect employer shall be
jointly and severally liable with his contractor or sub-
contractor for the unpaid wages of the employees of
the latter. Such employer or indirect employer may
require the contractor or sub-contractor to furnish a
bond equal to the cost of labor under contract on
condition that the bond will answer for the wages
due the employees should the contractor or
subcontractor, as the case may be, fail to pay the
same.
SECTION 8. Job Contracting. There is job
contracting permissible under the Code if the
following conditions are met:
(a) The contractor carries on an independent
business and undertakes the contract work on his
own account under his own responsibility according
to his own manner and method, free from the control
and direction of his employer or principal in all
matters connected with the performance of the work
except as to the results thereof; and
(b) The contractor has substantial capital or
investment in the form of tools, equipment,
machineries, work premises, and other materials
which are necessary in the conduct of his business.
SECTION 9. Labor-only contracting. (a) Any person
who undertakes to supply workers to an employer
shall be deemed to be engaged in labor-only
contracting where such person:
(1) Does not have substantial capital or investment
in the form of tools, equipment, machineries, work
premises and other materials; and
(2) The workers recruited and placed by such person
are performing activities which are directly related to
the principal business or operations of the employer
in which workers are habitually employed.
(b) Labor-only contracting as defined herein is hereby
prohibited and the person acting as contractor shall
be considered merely as an agent or intermediary of
the employer who shall be responsible to the workers
in the same manner and extent as if the latter were
directly employed by him.
(c) For cases not falling under this Rule, the Secretary
of Labor and Employment shall determine through
appropriate orders whether or not the contracting
out of labor is permissible in the light of the
circumstances of each case and after considering the
operating needs of the employer and the rights of
the workers involved. In such case, he may prescribe
conditions and restrictions to insure the protection
and welfare of the workers.
SECTION 10. Payment of wages in case of
bankruptcy. Unpaid wages earned by the
employees before the declaration of bankruptcy or
judicial liquidation of the employer's business shall
be given first preference and shall be paid in full
before other creditors may establish any claim to a
share in the assets of the employer.
SECTION 11. Attorney's fees. Attorney's fees in
any judicial or administrative proceedings for the
recovery of wages shall not exceed 10 percent of the
amount awarded. The fees may be deducted from
the total amount due the winning party.
SECTION 12. Non-interference in disposal of wages.
No employer shall limit or otherwise interfere with
the freedom of any employee to dispose of his wages
and no employer shall in any manner oblige any of
his employees to patronize any store or avail of the
services offered by any person.
SECTION 13. Wages deduction. Deductions from
the wages of the employees may be made by the
employer in any of the following cases:
(a) When the deductions are authorized by law,
including deductions for the insurance premiums
advanced by the employer in behalf of the employee
as well as union dues where the right to check-off
has been recognized by the employer or authorized
in writing by the individual employee himself.
(b) When the deductions are with the written
authorization of the employees for payment to the
third person and the employer agrees to do so;
Provided, That the latter does not receive any
pecuniary benefit, directly or indirectly, from the
transaction.
SECTION 14. Deduction for loss or damage. Where
the employer is engaged in a trade, occupation or
business where the practice of making deductions or
requiring deposits is recognized to answer for the
reimbursement of loss or damage to tools, materials,
or equipment supplied by the employer to the
employee, the employer may make wage deductions
or require the employees to make deposits from
which deductions shall be made, subject to the
following conditions:
Duman / Labor I / Prof. Battad / Page 99
(a) That the employee concerned is clearly shown to service and persons working in their respective
be responsible for the loss or damage; homes in needle work or in any cottage industry
duly registered in accordance with law.
(b) That the employee is given reasonable
opportunity to show cause why deduction should not
be made; Philippine Fisheries Development Authority v.
NLRC, 213 SCRA 621 (1992)
(c) That the amount of such deduction is fair and
reasonable and shall not exceed the actual loss or
damage; and

(d) That the deduction from the wages of the

employee does not exceed 20 percent of the
employee's wages in a week.

1. Minimum Wage, Art. 99; Consti., Art. XIII,

Sec. 3

MINIMUM WAGE RATES

ART. 99. Regional minimum wages. - The minimum

wage rates for agricultural and non-agricultural
employees and workers in each and every region of
the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards. (As
amended by Section 3, Republic Act No. 6727, June
9, 1989).

Art XIII, Section 3. The State shall afford full

protection to labor, local and overseas, organized
and unorganized, and promote full employment and
equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-

organization, collective bargaining and negotiations, b. Rules
and peaceful concerted activities, including the right
to strike in accordance with law. They shall be 1) Definition
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in
policy and decision-making processes affecting their Chavez v. NLRC, supra
rights and benefits as may be provided by law.
2) No Work, No Pay (A fair days wage for a fair
days labor)
The State shall promote the principle of shared
responsibility between workers and employers and
the preferential use of voluntary modes in settling Aklan Electric Corp., Inc. v. NLRC, 323 SCRA 259
disputes, including conciliation, and shall enforce
(2000)
their mutual compliance therewith to foster industrial
peace.

The State shall regulate the relations between

workers and employers, recognizing the right of labor
to its just share in the fruits of production and the
right of enterprises to reasonable returns to
investments, and to expansion and growth.

a. Coverage, Arts. 97 (b) (c) (e), 98

ART. 97. Definitions. - As used in this Title:

(b) "Employer" includes any person acting directly

or indirectly in the interest of an employer in
relation to an employee and shall include the
government and all its branches, subdivisions and
instrumentalities, all government-owned or
controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
3) Equal Pay for Work of Equal Value
(c) "Employee" includes any individual employed by
an employer.
International School Alliance of Educators v.
Quisumbing, supra
e) "Employ" includes to suffer or permit to work.

ART. 98. Application of Title. - This Title shall not

apply to farm tenancy or leasehold, domestic
Duman / Labor I / Prof. Battad / Page 100
 Bankard Employers Union v. NLRC, 423 SCRA
148 (2004)

2) Facilities and
Supplements/Allowances

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

4) Form: Agreement for

Compensation of Services

Arms Taxi v. NLRC, 219 SCRA 306 (1993)

3) Cash Wage/Commission
c. Minimum Wage

1) Determination of Compliance with Minimum

Songco v. NLRC, 183 SCRA 610 (1990)
Wage

Iran v. NLRC, 289 SCRA 433 (1998)

Duman / Labor I / Prof. Battad / Page 101

 4) Gratuity and Salary/Wages,
Difference

Plastic Town Center corp. v. NLRC, 172 SCRA 580

(1989)

Boie Takeda v. De la Serna, 228 SCRA 329 (1993)

5) Effect on Benefits
Philippine Duplicators v. NLRC, 241 SCRA 380
Davao Fruits Corporation v. Associated Labor
(1995)
Union, 225 SCRA 562 (1993)

Duman / Labor I / Prof. Battad / Page 102


2. Wage Fixing Machinery
Reference: Wage Rationalization Act (RA
6727); Art. 120-127; Omnibus Rules, Book III, Rule IX
Republic of the Philippines
Congress of the Philippines
Metro Manila
Second Regular Session
Begun and held in Metro Manila, on Monday, the
twenty-
fifth day of July, nineteen hundred and eighty-eight
[REPUBLIC ACT NO. 6727]
AN ACT TO RATIONALIZE WAGE POLICY
DETERMINATION BY ESTABLISHING THE
MECHANISM AND PROPER STANDARDS
THEREFOR, AMENDING FOR THE PURPOSE
ARTICLE 99 OF, AND INCORPORATING ARTICLES
120, 121, 122, 123, 124, 126 AND 127 INTO,
PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF
THE PHILIPPINES, FIXING NEW WAGE RATES,
PROVIDING WAGE INCENTIVES FOR INDUSTRIAL
DISPERSAL TO THE COUNTRYSIDE, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled:
Sec. 1. This Act shall be known as the "Wage
Rationalization Act."
Sec. 2. It is hereby declared the policy of the State
to rationalize the fixing of minimum wages and to
promote productivity-improvement and gain-sharing
measures to ensure a decent standard of living for the
workers and their families; to guarantee the rights of
labor to its just share in the fruits of production; to
enhance employment generation in the countryside
through industry dispersal; and to allow business and
industry reasonable returns on investment, expansion
and growth.
The State shall promote collective bargaining as
the primary mode of setting wages and other terms
and conditions of employment; and, whenever
necessary, the minimum wage rates shall be adjusted
in a fair and equitable manner, considering existing
regional disparities in the cost of living and other
socio-economic factors and the national economic
and social development plans.
Sec. 3. In line with the declared policy under this
Act, Article 99 of Presidential Decree No. 442, as
amended, is hereby amended and Articles 120, 121,
122, 123, 124, 126 and 127 are hereby incorporated
into Presidential Decree No. 442, as amended, to
read as follows:
"Art. 99. Regional Minimum Wages. - The minimum
wage rates for agricultural and non-agricultural
employees and workers in each and every region of
the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards."
"Art. 120. Creation of the National Wages and
Productivity Commission. - There is hereby created a
National Wages and Productivity Commission,
hereinafter referred to as the Commission, which shall
be attached to the Department of Labor and
Employment (DOLE) for policy and program
coordination."
"Art. 121. Powers and Functions of the
Commission. - The Commission shall have the
following powers and functions:
(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,
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.
Duman / Labor I / Prof. Battad / Page 103
 "The Commission shall be composed of the
Secretary of Labor and Employment as ex-officio
chairman, the Director-General of the National
Economic and Development Authority (NEDA) as ex-
officio vice-chairman, and two (2) 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 Secretariat 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 recommendation of
the Secretary of Labor and Employment."
"The Executive Director shall have the same rank,
salary, benefits and other emoluments as that of a
Department Assistant Secretary, while the Deputy
Directors shall have the same rank, salary, benefits
and other emoluments as that of a Bureau Director.
The members of the Commission representing labor
and management shall have the same rank,
emoluments, allowances and other benefits as those
prescribed by law for labor and management
representatives in the Employees' Compensation
Commission."
"Art. 122. Creation of Regional Tripartite Wages
and Productivity Boards. - There is hereby created
Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all
regions, including autonomous regions as may be
established by law. The Commission shall determine
the offices/headquarters of the respective Regional
Boards.
"The Regional Boards shall have the following
powers and functions in their respective territorial
jurisdiction:
(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 region, 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.
"Implementation of the plans, programs and
projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be
through the respective regional offices of the
Department of Labor and Employment within their
territorial jurisdiction; Provided, however, That the
Regional Boards shall have technical supervision over
the regional office of the Department of Labor and
Employment with respect to the implementation of
said plans, programs and projects.
"Each Regional Board shall be composed of the
Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of
the National Economic and Development Authority
and Department of Trade and Industry as vice-
chairmen 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.
"Each Regional Board to be headed by its chairman
shall be assisted by a Secretariat."
"Art. 123. Wage Order. - Whenever conditions in
the region so warrant, the Regional Board shall
investigate and study all pertinent facts; and, based
on the standards and criteria herein prescribed, shall
proceed to determine whether a Wage Order should
be issued.
Any such Wage Order shall take effect after fifteen
(15) days from its complete publication in at least one
(l) newspaper of general circulation in the region.
"In the performance of its wage-determining
functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees'
and employers' groups, provincial, city and municipal
officials and other interested parties.
"Any party aggrieved by the Wage Order issued by
the Regional Board may appeal such order to the
Commission within ten (l0) calendar days from the
publication of such order. It shall be mandatory for the
Commission to decide such appeal within sixty (60)
calendar days from the filing thereof.
"The filing of the appeal does not operate to stay
the order unless the person appealing such order
shall file with the Commission an undertaking with a
surety or sureties satisfactory to the Commission for
the payment to the employees affected by the order of
the corresponding increase, in the event such order is
affirmed."
Duman / Labor I / Prof. Battad / Page 104
 "Art. 124. Standards/Criteria for Minimum Wage
Fixing. The regional minimum wages to be
established by the Regional Board shall be as nearly
adequate as is economically feasible to maintain the
minimum standards of living necessary for the health,
efficiency and general well-being of the employees
within the framework of the national economic and
social development program. In the determination of
such regional minimum wages, the Regional Board
shall, among other relevant factors, consider the
following:
(a) The demand for living wages;
(b) Wage adjustment vis--vis the consumer price
index;
(c) The cost of living and changes or increases
therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the
countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to
pay of employers;
(i) Effects on employment generation and family
income; and
(j) The equitable distribution of income and wealth
along the imperatives of economic and social
development.
"The wages prescribed in accordance with the
provisions of this Title shall be the standard prevailing
minimum wages in every region. These wages shall
include wages varying with industries, provinces or
localities if in the judgment of the Regional Board
conditions make such local differentiation proper and
necessary to effectuate the purpose of this Title.
"Any person, company, corporation, partnership or
any other entity engaged in business shall file and
register annually with the appropriate Regional Board,
Commission and the National Statistics Office an
itemized listing of their labor component, specifying
the names of their workers and employees below the
managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under
the terms prescribed in the employment contracts,
and their corresponding salaries and wages.
"Where the application of any prescribed wage
increase by virtue of a law or Wage Order issued by
any Regional Board results in distortions of the wage
structure within an establishment, the employer and
the union shall negotiate to correct the distortions.
Any dispute arising from wage distortions shall be
resolved through the grievance procedure under their
collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such
dispute shall be decided by the voluntary arbitrator or
panel of voluntary arbitrators within ten (10) calendar
days from the time said dispute was referred to
voluntary arbitration.
"In cases where there are no collective agreements
or recognized labor unions, the employers and
workers shall endeavor to correct such distortions.
Any dispute arising therefrom shall be settled through
the National Conciliation and Mediation Board and, if
it remains unresolved after ten (10) calendar days of
conciliation, shall be referred to the appropriate
branch of the National Labor Relations Commission
(NLRC). It shall be mandatory for the NLRC to
conduct continuous hearings and decide the dispute
within twenty (20) calendar days from the time said
dispute is submitted for compulsory arbitration.
"The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability of
any increase in prescribed wage rates pursuant to the
provisions of law or Wage Order.
"As used, herein, a wage distortion shall mean a
situation where an increase in prescribed wage rates
results in the elimination or severe contraction of
intentional quantitative differences in wage or salary
rates between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation.
"All workers paid by result, including those who are
paid on piecework, takay, pakyaw or task basis, shall
receive not less than the prescribed wage rates per
eight (8) hours work a day, or a proportion thereof for
working less than eight (8) hours.
"All recognized learnership and apprenticeship
agreements shall be considered automatically
modified insofar as their wage clauses are concerned
to reflect the prescribed wage rates."
"Art. 126. Prohibition Against Injunction. - No
preliminary or permanent injunction or temporary
restraining order may be issued by any court, tribunal
or other entity against any proceedings before the
Commission or the Regional Boards."
"Art. 127. Non-Diminution of Benefits. - No Wage
Order issued by any Regional Board shall provide for
wage rates lower than the statutory minimum wage
rates prescribed by Congress."
Sec. 4. (a) Upon the effectivity of this Act, the
statutory minimum wage rates of all workers and
employees in the private sector, whether agricultural
or non-agricultural, shall be increased by twenty-five
pesos (P25.00) per day, except that workers and
employees in plantation agricultural enterprises
outside of the National Capital Region (NCR) with an
annual gross sales of less than five million pesos
(P5,000,000.00) in the preceding year shall be paid
an increase of twenty pesos (P20.00), and except
further that workers and employees of
cottage/handicraft industries, non-plantation
agricultural enterprises, retail/service establishments
regularly employing not more than ten (10) workers,
and business enterprises with a capitalization of not
more than five hundred thousand pesos
Duman / Labor I / Prof. Battad / Page 105
(P500,000.00) and employing not more than twenty
(20) employees, which are located or operating
outside the NCR, shall be paid only an increase of
fifteen pesos (P15.00): Provided, That those already
receiving above the minimum wage rates up to one
hundred pesos (P100.00) shall also receive an
increase of twenty-five pesos (P25.00) per day, and
except that the workers and employees mentioned in
the first exception clause of this section shall also be
paid only an increase of twenty-pesos (P20.00), and
except further that those employees enumerated in
the second exception clause of this Section shall also
be paid only an increase of fifteen pesos (P15.00):
Provide, further, That the appropriate Regional Board
is hereby authorized to grant additional increases to
the workers and employees mentioned in the
exception clauses of this Section if, on the basis of its
determination pursuant to Article 124 of the Labor
Code such increases are necessary.
(b) The increase of twenty-five pesos (P25.00)
prescribed under this Section shall apply to all
workers and employees entitled to the same in private
educational institutions as soon as they have
increased or are granted authority to increase their
tuition fees during school year 1989-1990. Otherwise,
such increase shall be so applicable not later than the
opening of the next school year beginning 1990.
(c) Exempted from the provisions of this Act are
household or domestic helpers and persons
employed in the personal service of another, including
family drivers.
Retail/service establishments regularly employing
not more than ten (10) workers may be exempted
from the applicability of this Act upon application with
and as determined by the appropriate Regional Board
in accordance with the applicable rules and
regulations issued by the Commission. Whenever an
application for exemption has been duly filed with the
appropriate Regional Board, action on any complaint
for alleged non-compliance with this Act shall be
deferred pending resolution of the application for
exemption by the appropriate Regional Board.
In the event that applications for exemptions are
not granted, employees shall receive the appropriate
compensation due them as provided for by this Act
plus interest of one percent (1%) per month
retroactive to the effectivity of this Act.
(d) If expressly provided for and agreed upon in the
collective bargaining agreements, all increases in the
daily basic wage rates granted by the employers three
(3) months before the effectivity of this Act shall be
credited as compliance with the increases in the wage
rates prescribed herein, provided that, where such
increases are less than the prescribed increases in
the wage rates under this Act, the employer shall pay
the difference. Such increases shall not include
anniversary wage increases, merit wage increases
and those resulting from the regularization or
promotion of employees.
Where the application of the increases in the wage
rate under this Section results in distortions as
defined under existing laws in the wage structure
within an establishment and gives rise to a dispute
therein, such dispute shall first be settled voluntarily
between the parties and in the event of a deadlock,
the same shall be finally resolved through compulsory
arbitration by the regional arbitration branch of the
National Labor Relations Commission (NLRC) having
jurisdiction over the workplace.
It shall be mandatory for the NLRC to conduct
continuous hearings and decide any dispute arising
under this Section within twenty(20) calendar days
from the time said dispute is formally submitted to it
for arbitration. The pendency of a dispute arising from
a wage distortion shall not in any way delay the
applicability of the increases in the wage rates
prescribed under this Section.
Sec. 5. Within a period of four (4) years from the
effectivity of this Act and without prejudice to
collective bargaining negotiations or agreements or
other employment contracts between employers and
workers, new business enterprises that may be
established outside the NCR and export processing
zones whose operation or investments need initial
assistance as may be determined by the Department
of Labor and Employment in consultation with the
Department of Trade and Industry or the Department
of Agriculture, as the case may be shall be exempt
from the application of this Act for not more than three
(3) years from the start of their operations: Provided,
That such new business enterprises established in
Region III (Central Luzon) and Region IV (Southern
Tagalog) shall be exempt from such increases only for
two (2) years from the start of their operations, except
those established in the Provinces of Palawan,
Oriental Mindoro, Occidental Mindoro, Marinduque,
Romblon, Quezon and Aurora, which shall enjoy such
exemption for not more than three (3) years from the
start of their operations.
Sec. 6. In the case of contracts for construction
projects and for security, janitorial and similar
services, the prescribed increases in the wage rates
of the workers shall be borne by the principals or
clients of the construction/service contractors and the
contract shall be deemed amended accordingly. In the
event, however, that the principal or client fails to pay
the prescribed wage rates, the construction/service
contractor shall be jointly and severally liable with his
principal or client.
Sec. 7. Upon written petition of the majority of the
employees or workers concerned, all private
establishments, companies, businesses, and other
entities with twenty five (25) or more employees and
located within one (1) kilometer radius to a
commercial, savings or rural bank shall pay the
wages and other benefits of their employees through
any of said banks and within the period for payment of
wages fixed by Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the
Philippines.
Sec. 8. Whenever applicable and upon request of a
concerned worker or union, the bank shall issue a
certification of the record of payment of wages of a
particular worker or workers for a particular payroll
period.
Sec. 9. The Department of Labor and Employment
shall conduct inspections as often as possible within
its manpower constraint of the payroll and other
Duman / Labor I / Prof. Battad / Page 106
financial records kept by the company or business to
determine whether the workers are paid the
prescribed wage rates and other benefits granted by
law or any Wage Order. In unionized companies, the
Department of Labor and Employment inspectors
shall always be accompanied by the president or any
responsible officer of the recognized bargaining unit
of any interested union in the conduct of the
inspection. In non-unionized companies,
establishments or businesses, the inspection shall be
carried out in the presence of a worker representing
the workers in the said company. The workers'
representative shall have the right to submit his own
findings to the Department of Labor and Employment
and to testify on the same if he cannot concur with the
findings of the labor inspector.
Sec. 10. The funds necessary to carry out the
provisions of this Act shall be taken from the
Compensation and Organizational Adjustment Fund,
the Contingent Fund, and other savings under
Republic Act No. 6688, otherwise known as the
General Appropriations Act of 1989, or from any
unappropriated funds of the National Treasury:
Provided, That the funding requirements necessary to
implement this Act shall be included in the annual
General Appropriations Act for the succeeding years.
Sec. 11. The National Wages Council created
under Executive Order No. 614 and the National
Productivity Commission created under Executive
Order No. 615 are hereby abolished. All properties,
records, equipment, buildings, facilities, and other
assets, liabilities and appropriations of and belonging
to the abovementioned offices, as well as other
matters pending therein, shall be transferred to the
Commission. All personnel of the above abolished
offices shall continue to function in a holdover
capacity and shall be preferentially considered for
appointments to or placement in the Commission.
Any official or employee separated from the service
as a result of the abolition of offices pursuant to this
Act shall be entitled to appropriate separation pay and
retirement and other benefits accruing to them under
existing laws. In lieu thereof, at the option of the
employee, he shall be preferentially considered for
employment in the government or in any of its
subdivisions, instrumentalities, or agencies, including
government-owned or controlled corporations and
their subsidiaries.
Sec. 12. Any person, corporation, trust, firm,
partnership, association or entity which refuses or
fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance
with this Act shall be punished by a fine not exceeding
twenty-five thousand pesos (P25,000.00) and/or
imprisonment of not less than one (1) year nor more
than two (2) years: Provided, That any person
convicted under this Act shall not be entitled to the
benefits provided for under the Probation Law.
If the violation is committed by a corporation, trust
or firm, partnership, association or any other entity,
the penalty of imprisonment shall be imposed upon
the entity's responsible officers, including, but not
limited to, the president, vice president, chief
executive officer, general manager, managing director
or partner.
Sec. 13. The Secretary of Labor and Employment
shall promulgate the necessary rules and regulations
to implement the provisions of this Act.
Sec. 14. All laws, orders, issuances, rules and
regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed, amended
or modified accordingly. In any provision or part of this
Act, or the application thereof to any person or
circumstance, is held invalid or unconstitutional, the
remainder of this Act or the application of such
provision or part thereof to other persons or
circumstances shall not be affected thereby.
Nothing in this Act shall be construed to reduce any
existing wage rates, allowances and benefits of any
form under existing laws, decrees, issuances,
executive orders, and/or under any contract or
agreement between the workers and employers.
Sec. 15. This Act shall take effect fifteen (15) days
after its complete publication in the Official Gazette or
in at least two (2) national newspapers of general
circulation, whichever comes earlier.
WAGE STUDIES, WAGE
AGREEMENTS
AND WAGE DETERMINATION
ART. 120. Creation of National Wages and
Productivity Commission. - There is hereby created a
National Wages and Productivity Commission,
hereinafter referred to as the Commission, which
shall be attached to the Department of Labor and
Employment (DOLE) for policy and program
coordination. (As amended by Republic Act No. 6727,
June 9, 1989).
ART. 121. Powers and functions of the Commission. -
The Commission shall have the following powers and
functions:
(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,
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
Duman / Labor I / Prof. Battad / Page 107
determine whether these are consistent with national
development plans;
(g) To exercise technical and administrative
supervision over the Regional Tripartite Wages and
Productivity Boards;chan robles virtual law library
(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 the Secretary
of Labor and Employment as ex-officio chairman, the
Director-General of the National Economic and
Development Authority (NEDA) as ex-officio vice-
chairman, and two (2) 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.
The Executive Director shall have the same rank,
salary, benefits and other emoluments as that of a
Department Assistant Secretary, while the Deputy
Directors shall have the same rank, salary, benefits
and other emoluments as that of a Bureau Director.
The members of the Commission representing labor
and management shall have the same rank,
emoluments, allowances and other benefits as those
prescribed by law for labor and management
representatives in the Employees Compensation
Commission. (As amended by Republic Act No. 6727,
June 9, 1989).
ART. 122. Creation of Regional Tripartite Wages and
Productivity Boards. - There is hereby created
Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all
regions, including autonomous regions as may be
established by law. The Commission shall determine
the offices/headquarters of the respective Regional
Boards.
The Regional Boards shall have the following powers
and functions 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.
Implementation of the plans, programs, and projects
of the Regional Boards referred to in the second
paragraph, letter (a) of this Article, shall be through
the respective regional offices of the Department of
Labor and Employment within their territorial
jurisdiction; Provided, however, That the Regional
Boards shall have technical supervision over the
regional office of the Department of Labor and
Employment with respect to the implementation of
said plans, programs and projects.
Each Regional Board shall be composed of the
Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of
the National Economic and Development Authority
and the Department of Trade and Industry as vice-
chairmen and two (2) members each from workers
and employers sectors who shall be appointed 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. (As amended by
Republic Act No. 6727, June 9, 1989).
ART. 123. Wage Order. - Whenever conditions in the
region so warrant, the Regional Board shall
investigate and study all pertinent facts; and based
on the standards and criteria herein prescribed, shall
proceed to determine whether a Wage Order should
be issued. Any such Wage Order shall take effect
after fifteen (15) days from its complete publication
in at least one (1) newspaper of general circulation in
the region.
In the performance of its wage-determining
functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees
and employers groups, provincial, city and municipal
officials and other interested parties.
Any party aggrieved by the Wage Order issued by
the Regional Board may appeal such order to the
Commission within ten (10) calendar days from the
publication of such order. It shall be mandatory for
the Commission to decide such appeal within sixty
(60) calendar days from the filing thereof.
The filing of the appeal does not stay the order
unless the person appealing such order shall file with
the Commission, an undertaking with a surety or
sureties satisfactory to the Commission for the
Duman / Labor I / Prof. Battad / Page 108
payment to the employees affected by the order of
the corresponding increase, in the event such order
is affirmed. (As amended by Republic Act No. 6727,
June 9, 1989).
ART. 124. Standards/Criteria for minimum wage
fixing. - The regional minimum wages to be
established by the Regional Board shall be as nearly
adequate as is economically feasible to maintain the
minimum standards of living necessary for the
health, efficiency and general well-being of the
employees within the framework of the national
economic and social development program. In the
determination of such regional minimum wages, the
Regional Board shall, among other relevant factors,
consider the following:
(a) The demand for living wages;
(b) Wage adjustment vis--vis the consumer price
index;
(c) The cost of living and changes or increases
therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the
countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to
pay of employers;
(i) Effects on employment generation and family
income; and
(j) The equitable distribution of income and wealth
along the imperatives of economic and social
development.
The wages prescribed in accordance with the
provisions of this Title shall be the standard
prevailing minimum wages in every region. These
wages shall include wages varying with industries,
provinces or localities if in the judgment of the
Regional Board, conditions make such local
differentiation proper and necessary to effectuate
the purpose of this Title.
Any person, company, corporation, partnership or
any other entity engaged in business shall file and
register annually with the appropriate Regional
Board, Commission and the National Statistics Office,
an itemized listing of their labor component,
specifying the names of their workers and employees
below the managerial level, including learners,
apprentices and disabled/handicapped workers who
were hired under the terms prescribed in the
employment contracts, and their corresponding
salaries and wages.
Where the application of any prescribed wage
increase by virtue of a law or wage order issued by
any Regional Board results in distortions of the wage
structure within an establishment, the employer and
the union shall negotiate to correct the distortions.
Any dispute arising from wage distortions shall be
resolved through the grievance procedure under
their collective bargaining agreement and, if it
remains unresolved, through voluntary arbitration.
Unless otherwise agreed by the parties in writing,
such dispute shall be decided by the voluntary
arbitrators within ten (10) calendar days from the
time said dispute was referred to voluntary
arbitration.
In cases where there are no collective agreements or
recognized labor unions, the employers and workers
shall endeavor to correct such distortions. Any
dispute arising therefrom shall be settled through the
National Conciliation and Mediation Board and, if it
remains unresolved after ten (10) calendar days of
conciliation, shall be referred to the appropriate
branch of the National Labor Relations Commission
(NLRC). It shall be mandatory for the NLRC to
conduct continuous hearings and decide the dispute
within twenty (20) calendar days from the time said
dispute is submitted for compulsory arbitration.
The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability
of any increase in prescribed wage rates pursuant to
the provisions of law or wage order.
As used herein, a wage distortion shall mean a
situation where an increase in prescribed wage rates
results in the elimination or severe contraction of
intentional quantitative differences in wage or salary
rates between and among employee groups in an
establishment as to effectively obliterate the
distinctions embodied in such wage structure based
on skills, length of service, or other logical bases of
differentiation.
All workers paid by result, including those who are
paid on piecework, takay, pakyaw or task basis, shall
receive not less than the prescribed wage rates per
eight (8) hours of work a day, or a proportion thereof
for working less than eight (8) hours.
All recognized learnership and apprenticeship
agreements shall be considered automatically
modified insofar as their wage clauses are concerned
to reflect the prescribed wage rates. (As amended by
Republic Act No. 6727, June 9, 1989).
ART. 125. Freedom to bargain. - No wage order shall
be construed to prevent workers in particular firms or
enterprises or industries from bargaining for higher
wages with their respective employers. (As amended
by Republic Act No. 6727, June 9, 1989).
ART. 126. Prohibition against injunction. No
preliminary or permanent injunction or temporary
restraining order may be issued by any court,
tribunal or other entity against any proceedings
before the Commission or the Regional Boards. (As
amended by Republic Act No. 6727, June 9, 1989).
ART. 127. Non-diminution of benefits. - No wage order
issued by any regional board shall provide for wage
rates lower than the statutory minimum wage rates
prescribed by Congress. (As amended by Republic
Act No. 6727, June 9, 1989).
RULE IX
Wage Studies and Determination
SECTION 1. Definition of terms. (a) "Industry" shall
mean any identifiable group of productive units or
Duman / Labor I / Prof. Battad / Page 109
enterprises, whether operated for profit or not,
engaged in similar or allied economic activities in
which individuals are gainfully employed.
(b) A "branch" of an industry is a work, product or
service grouping thereof which can be considered a
distinct division for wage-fixing purposes.
(c) "Substantial number" shall mean such an
appreciable number of employees in an industry as,
in the Commission's opinion, considering all relevant
facts, may require action under Art. 121 of the Code
to effectuate the purposes of wage determination,
regardless of the proportion of such employees to the
total number of employees in the industry.
SECTION 2. Wage studies. The National Wages
Council shall conduct a continuing study of wage
rates and other economic conditions in all industries,
agricultural and non-agricultural. The results of such
study shall be periodically disseminated to the
government, labor and management sectors for their
information and guidance.
SECTION 3. Wages recommendation. If after such
study, the Commission is of the opinion that a
substantial number of employees in any given
industry or branch thereof are receiving wages,
which although complying with the minimum
provided by law, are less than sufficient to maintain
them in health, efficiency and general well-being,
taking into account, among others, the peculiar
circumstances of the industry and its geographical
location, the Commission shall, with the approval of
the Secretary of Labor and Employment, proceed to
determine whether a wage recommendation should
be issued.
SECTION 4. Criteria for wage fixing. (a) In addition
to the criteria established by Art. 123 of the Code for
minimum wage fixing, the Commission shall
consider, among other factors, social services and
benefits given free to workers and the possible effect
of a given increase in the minimum wage on prices,
money supply, employment, labor mobility and
productivity, labor organization efficacy, domestic
and foreign trade, and other relevant indicators of
social and economic development.
(b) Where a fair return to capital invested cannot be
reasonably determined, or where the industry
concerned is not operated for profit, its capacity to
pay, taking into account all resources available to it,
shall be considered.
SECTION 5. Quorum. Three (3) members of the
Commission, including its Chairman, shall constitute
a quorum to transact the Commission's business.
SECTION 6. Commission actions, number of votes
required. The votes of at least three (3) members
of the Commission shall be necessary to effect any
decision or recommendation it is authorized to issue
under the Code and this rule: Provided, That in the
internal regulation and direction of the functions of
the Commission's staff including the conduct of
administrative processes and the maintenance of
proper liaison and coordination with other
organizations, the Chairman shall not need the
consent of the Commission or any member thereof.
SECTION 7. Outside assistance. The Commission
may call upon the assistance and cooperation of any
government agency or official, and may invite any
private person or organization to furnish information
in connection with industry studies and wage fixing
hearings or in aid of the Commission's deliberations.
SECTION 8. Schedule of hearings and notices. The
Commission shall prepare a schedule of hearings for
the reception of evidence necessary for wage fixing
in an industry, including a list of witnesses that it will
invite and the date, time and place of the hearings. A
notice thereof to all sectors of the industry shall be
given in the most expeditious manner. It may have
prior consultations with labor and management
leaders in the industry for the above purpose.
SECTION 9. Unsolicited testimony. Persons who
offer to testify before the Commission shall be heard
only after the Commission is satisfied, upon brief
preliminary examination, that they are in possession
of facts relevant to the subject of inquiry. The
Chairman, or in other cases, the person conducting
the hearing, shall revise the schedule of hearings
whenever necessary to achieve logical sequence of
testimony.
SECTION 10. Compulsory processes. Recourse to
compulsory processes under the Revised
Administrative Code to ensure the attendance of
witnesses and/or the production of relevant
documentary evidence shall be used only on
occasions of extreme importance and after other
means shall have failed, subject to the approval of
the Secretary of Labor and Employment.
SECTION 11. Hearings; where, by whom conducted.
Commission hearings may be conducted by the
Commission en banc, or, when authorized by the
Commission, by any member or hearing officer
designated by the Chairman. The hearings may be
held wherever the industry or branches thereof are
situated; otherwise they shall be held in the Greater
Manila Area. The hearings shall be open to the
public.
SECTION 12. Hearings before single member or
hearing officer. Hearings conducted by a duly
authorized member or hearing officer shall be
considered as hearings before the Commission. The
records of such hearings shall be submitted to the
Commission as soon as they are completed,
indicating the time and place of the hearings and the
appearances thereat, together with a brief statement
of the findings and recommendations of the member
or hearing officer concerned.
SECTION 13. Testimony under oath. The testimony
of all witnesses shall be made under oath or
affirmation and shall be taken down and transcribed
by a duly appointed stenographic reporter.
SECTION 14. Non-applicability of technical rules.
The technical rules of evidence applied by the courts
in proceedings at law or equity shall not strictly apply
in any proceedings conducted before the
Commission.
SECTION 15. Stipulation of fact. Stipulations of fact
may be admitted with respect to any matter at issue
in the proceedings.
SECTION 16. Documentary evidence. Written
evidence submitted to the Commission or any
member or hearing officer shall be properly marked
to facilitate identification.
SECTION 17. Submission of industry-report. Within
sixty (60) working days from the date of the first
Duman / Labor I / Prof. Battad / Page 110
hearing, the Commission shall submit to the b. Agencies in Wage Fixing Machinery
Secretary of Labor and Employment an "Industry
Report" which shall relate in brief the operations that 1) National Wages and Productivity
led thereto, the basic findings of economic facts Commission, RA 6727, Sec. 3; Arts. 120, 121, 126
about the industry and the recommendations made
on the basis thereof.

SECTION 18. Action by the Secretary of Labor and

Employment. Within thirty (30) working days after
the submission of the "Industry Report," the
Secretary of Labor and Employment shall either
reject or approve the recommendation of the
Commission in accordance with Art. 122 of the Code.
If he approves the recommendation, he shall issue a
Wage Order adopting the same, subject to the
approval of the President of the Philippines,
prescribing the minimum wage or wages for the
industry concerned.

SECTION 19. Wage Order. The Wage Order shall
specify the industry or branch to which the minimum
wages prescribed therein shall apply; Provided, That
no definite rates shall be prescribed for specific job
titles in the industry.
2) Regional Tripartite Wages and Productivity
Board, RA 6727, Sec. 3; Arts. 122, 126
Nasipit Lumber Co. v. NLRC, 289 SCRA 667
(1998)

SECTION 20. Varying minimum wages. To justify

different minimum wages for different localities, the
economic and other conditions found in a particular
locality must not only be more or less uniform therein
but also different from those prevailing in other
localities.

SECTION 21. Publication of Wage Order. Only such

portions of a Wage Order shall be published as shall
effectively give notice to all interested parties that
such an Order has been issued, the industry affected,
the minimum wages prescribed and the date of its
effectivity.

SECTION 22. Effectivity. A Wage Order shall

become effective after fifteen (15) days from its
publication as provided in Article 124 of the Code.

SECTION 23. Internal rules of the Commission.

Subject to the approval of the Secretary of Labor and
Employment, the National Wages Council may issue
rules and regulations governing its internal
procedure.

c. Standards/Criteria for Minimum Wage Fixing, RA

a. Rationale for Wage Rationalization, RA 6727, 6727, Sec. 3; Art. 124
Sec. 2
d. Wage Order, Arts. 123, 124

1) Methods of Fixing
Sec. 2. It is hereby declared the policy of the State to
rationalize the fixing of minimum wages and to
a) Floor Wage method
promote productivity-improvement and gain-sharing
measures to ensure a decent standard of living for
b) Salary Ceiling Method
the workers and their families; to guarantee the
rights of labor to its just share in the fruits of
production; to enhance employment generation in Employers Confederation of the Phil. V. National
the countryside through industry dispersal; and to Wage and Productivity Commission, 201 SCRA
allow business and industry reasonable returns on 759 (1991)
investment, expansion and growth.

The State shall promote collective bargaining as the

primary mode of setting wages and other terms and
conditions of employment; and, whenever necessary,
the minimum wage rates shall be adjusted in a fair
and equitable manner, considering existing regional
disparities in the cost of living and other socio-
economic factors and the national economic and
social development plans.

Duman / Labor I / Prof. Battad / Page 111

 ART. 202. Erroneous payment. - (a) If the System in
good faith pays income benefit to a dependent who
is inferior in right to another dependent or with
whom another dependent is entitled to share, such
payments shall discharge the System from liability,
unless and until such other dependent notifies the
System of his claim prior to the payments.

(b) In case of doubt as to the respective rights of

rival claimants, the System is hereby empowered to
determine as to whom payments should be made in
accordance with such regulations as the Commission
may approve. If the money is payable to a minor or
incompetent, payment shall be made by the System
to such person or persons as it may consider to be
best qualified to take care and dispose of the minors
or incompetents property for his benefit.
2) Validity
NCC Art. 1705. The laborer's wages shall be paid in
Cagayan Sugar Milling Co. v. Secretary, DOLE, legal currency.
284 SCRA 150 (1998)
SECTION 1. Manner of wage payment. As a
general rule, wages shall be paid in legal tender and
the use of tokens, promissory notes, vouchers,
coupons, or any other form alleged to represent legal
tender is absolutely prohibited even when expressly
requested by the employee.

SECTION 2. Payment by check. Payment of wages

by bank checks, postal checks or money orders is
allowed where such manner of wage payment is
customary on the date of the effectivity of the Code,
where it is so stipulated in a collective agreement, or
where all of the following conditions are met:

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

within a radius of one (1) kilometer from the
workplace;

(b) The employer or any of his agents or

representatives does not receive any pecuniary
benefit directly or indirectly from the arrangement;

(c) The employees are given reasonable time during

banking hours to withdraw their wages from the bank
which time shall be considered as compensable
3) Wage Distortion hours worked if done during working hours; and

Prubankers Association v. Prudential Bank & (d) The payment by check is with the written consent
Trust Co., 302 SCRA 74 (1999) of the employees concerned if there is no collective
agreement authorizing the payment of wages by
bank checks.

Congson v. NLRC, 243 SCRA 260 (1995)

3. Wage Payment and Protection

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

1705; Rule VIII, Secs. 1, 2
Duman / Labor I / Prof. Battad / Page 112

b. Time of Payment, Art. 103, Sec. 3
ART. 103. Time of payment. - Wages shall be paid at
least once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. If on
account of force majeure or circumstances beyond
the employers control, payment of wages on or
within the time herein provided cannot be made, the
employer shall pay the wages immediately after 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:
(1) That payments are made at intervals not
exceeding sixteen (16) days, in proportion to the
amount of work completed;
(2) That final settlement is made upon completion of
the work.
SECTION 3. Time of payment. (a) Wages shall be
paid not less than once every two (2) weeks or twice
a month at intervals not exceeding sixteen (16) days,
unless payment cannot be made with such regularity
due to force majeure or circumstances beyond the
employer's control in which case the employer shall
pay the wages immediately after such force majeure
or circumstances have ceased.
(b) In case of payment of wages by results involving
work which cannot be finished in two (2) weeks,
payment shall be made at intervals not exceeding
sixteen days in proportion to the amount of work
completed. Final settlement shall be made
immediately upon completion of the work.
c. Place of Payment, Art. 104, Sec. 4
SECTION 4. Place of payment. As a general rule,
the place of payment shall be at or near the place of
undertaking. Payment in a place other than the work
place shall be permissible only under the following
circumstances:
(a) When payment cannot be effected at or near the
place of work by reason of the deterioration of peace
and order conditions, or by reason of actual or
impending emergencies caused by fire, flood,
epidemic or other calamity rendering payment
thereat impossible;
(b) When the employer provides free transportation
to the employees back and forth; and
(c) Under any other analogous circumstances;
Provided, That the time spent by the employees in
collecting their wages shall be considered as
compensable hours worked;
(d) No employer shall pay his employees in any bar,
night or day club, drinking establishment, massage
clinic, dance hall, or other similar places or in places
where games are played with stakes of money or
things representing money except in the case of
persons employed in said places.
LC ART. 104. Place of payment. - Payment of wages
shall be made at or near the place of undertaking,
except as otherwise provided by such regulations as
the Secretary of Labor and Employment may
prescribe under conditions to ensure greater
protection of wages.
See: Labor Advisory on Payment of Salaries Thru
Automated Teller Machines (ATM)
d. Person to Pay, Art. 105, Secs. 5, 6
SECTION 5. Direct payment of wages. Payment of
wages shall be made direct to the employee entitled
thereto except in the following cases:
(a) Where the employer is authorized in writing by
the employee to pay his wages to a member of his
family;
(b) Where payment to another person of any part of
the employee's wages is authorized by existing law,
including payments for the insurance premiums of
the employee and union dues where the right to
check-off has been recognized by the employer in
accordance with a collective agreement or
authorized in writing by the individual employees
concerned; or
(c) In case of death of the employee as provided in
the succeeding Section.
SECTION 6. Wages of deceased employee. The
payment of the wages of a deceased employee shall
be made to his heirs without the necessity of
intestate proceedings. When the heirs are of age,
they shall execute an affidavit attesting to their
relationship to the deceased and the fact that they
are his heirs to the exclusion of all other persons. In
case any of the heirs is a minor, such affidavit shall
be executed in his behalf by his natural guardian or
next of kin. Upon presentation of the affidavit to the
employer, he shall make payment to the heirs as
representative of the Secretary of Labor and
Employment.
ART. 105. Direct payment of wages. - Wages shall be
paid directly to the workers to whom they are due,
except:
(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
Duman / Labor I / Prof. Battad / Page 113
(b) Where the worker has died, in which case, the operating needs of the employer and the rights of
employer may pay the wages of the deceased worker the workers involved. In such case, he may prescribe
to the heirs of the latter without the necessity of conditions and restrictions to insure the protection
intestate proceedings. The claimants, if they are all and welfare of the workers.
of age, shall execute an affidavit attesting to their
relationship to the deceased and the fact that they
b. Wage Deduction, Art. 113; Rule VIII, Sec. 10
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 ART. 113. Wage deduction. - No employer, in his own
employer who shall make payment through the behalf or in behalf of any person, shall make any
Secretary of Labor and Employment or his deduction from the wages of his employees, except:
representative. The representative of the Secretary
of Labor and Employment shall act as referee in
(a) In cases where the worker is insured with his
dividing the amount paid among the heirs. The
consent by the employer, and the deduction is to
payment of wages under this Article shall absolve the
recompense the employer for the amount paid by
employer of any further liability with respect to the
him as premium on the insurance;
amount paid.

(b) For union dues, in cases where the right of the

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

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

or regulations issued by the Secretary of Labor and
Employment.

SECTION 10. Payment of wages in case of

bankruptcy. Unpaid wages earned by the
employees before the declaration of bankruptcy or
judicial liquidation of the employer's business shall
be given first preference and shall be paid in full
4. Wage Prohibitions before other creditors may establish any claim to a
share in the assets of the employer.
a. Wage Interference in Disposal of Wages, Art.
112; Rule VIII, Sec. 9

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

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.

SECTION 9. Labor-only contracting. (a) Any person

who undertakes to supply workers to an employer
shall be deemed to be engaged in labor-only
contracting where such person:

(1) Does not have substantial capital or investment

in the form of tools, equipment, machineries, work
premises and other materials; and

(2) The workers recruited and placed by such person

are performing activities which are directly related to
the principal business or operations of the employer
in which workers are habitually employed.
c. Requirement to make Deposits for Loss or
(b) Labor-only contracting as defined herein is hereby Damage, Art. Arts. 114, 115; Rule VIII, Sec. 11
prohibited and the person acting as contractor shall
be considered merely as an agent or intermediary of
the employer who shall be responsible to the workers
in the same manner and extent as if the latter were
directly employed by him.
ART. 114. Deposits for loss or damage. - No
employer shall require his worker to make deposits
(c) For cases not falling under this Rule, the Secretary from which deductions shall be made for the
of Labor and Employment shall determine through reimbursement of loss of or damage to tools,
appropriate orders whether or not the contracting materials, or equipment supplied by the employer,
out of labor is permissible in the light of the except when the employer is engaged in such
circumstances of each case and after considering the trades, occupations or business where the practice
Duman / Labor I / Prof. Battad / Page 114
 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.
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
SECTION 11. Attorney's fees. Attorney's fees in
any judicial or administrative proceedings for the
recovery of wages shall not exceed 10 percent of
the amount awarded. The fees may be deducted
from the total amount due the winning party
responsibility has been clearly shown.
Dentech Manufacturing Corp. NLRC, 172 SCRA
588 (1989)
Five J Taxi v. NLRC, 235 SCRA 556 (1994)
e. Withholding of Wages, Art. 116; Civil Code, Art.
1706
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.
NCC Art. 1706. Withholding of the wages, except
for a debt due, shall not be made by the employer.
f. Deduction to Ensure Employment, Art. 117
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.
g. Retaliatory Measures, Art. 118
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.
h. False Reporting, Art. 119; Rule X, Sec. 13
ART. 119. False reporting. - It shall be unlawful for
any person to make any statement, report, or record
filed or kept pursuant to the provisions of this Code
knowing such statement, report or record to be false
in any material respect.
SECTION 13. False reporting. It shall be unlawful
for any employer or any person to make any false
statement, report or record on matters required to be
kept or maintained pursuant to the provisions of this
Rule.
i. Keeping of Employees Records in a Place other
than the Workplace
South Motorists Enterprises v. Tosoc, 181 SCRA
386 (1990)
j. Garnishment/Execution, Civil Code, Art. 1708
NCC Art. 1708. The laborer's wages shall not be
subject to execution or attachment, except for debts
incurred for food, shelter, clothing and medical
attendance.
Duman / Labor I / Prof. Battad / Page 115
 GAA v. Court of Appeals, 140 SCRA 304 (1985) shall constitute an encumbrance on the immovable
or real right:

(3) Claims of laborers, masons, mechanics and other

workmen, as well as of architects, engineers and
contractors, engaged in the construction,
reconstruction or repair of buildings, canals or other
works, upon said buildings, canals or other works;
xxx

Art. 2244. With reference to other property, real and

personal, of the debtor, the following claims or
credits shall be preferred in the order named:

(2) Credits for services rendered the insolvent by

employees, laborers, or household helpers for one
year preceding the commencement of the
proceedings in insolvency; xxx

Art. 1207. The concurrence of two or more creditors

or of two or more debtors in one and the same
Special Steel Corp. v. Villareal, 434 SCRA 19 obligation does not imply that each one of the former
(2004) has a right to demand, or that each one of the latter
is bound to render, entire compliance with the
prestation. There is a solidary liability only when the
obligation expressly so states, or when the law or the
nature of the obligation requires solidarity. (1137a)

5. Work Preference in the Event of Bankruptcy,

Art. 110; Book III, Rule VIII, Sec. 7; civil Code, Arts.
1207, 2241 (6), 2242 (3), 2244 (2)

Republic v. Peralta, 150 SCRA 37 (1987)

LC ART. 110. Worker preference in case of
bankruptcy. - In the event of bankruptcy or
liquidation of an employers business, his workers
shall enjoy first preference as regards their wages
and other monetary claims, any provisions of law to
the contrary notwithstanding. Such unpaid wages
and monetary claims shall be paid in full before
claims of the government and other creditors may be
paid. (As amended by Section 1, Republic Act No.
6715, March 21, 1989).

IRR SECTION 7. Civil liability of employer and

contractors. Every employer or indirect employer
shall be jointly and severally liable with his
contractor or sub-contractor for the unpaid wages of
the employees of the latter. Such employer or
indirect employer may require the contractor or sub-
contractor to furnish a bond equal to the cost of labor
under contract on condition that the bond will answer
for the wages due the employees should the
contractor or subcontractor, as the case may be, fail
to pay the same.

NCC Art. 2241. With reference to specific movable

property of the debtor, the following claims or liens
shall be preferred:

(6) Claims for laborers' wages, on the goods

manufactured or the work done; xxx
Manila Banking Corp. v. NLRC, 279 SCRA 602,
621-642 (1997)

Art. 2242. With reference to specific immovable

property and real rights of the debtor, the following
claims, mortgages and liens shall be preferred, and

Duman / Labor I / Prof. Battad / Page 116

 establishment when non-compliance with the law or
implementing rules and regulations poses grave and
imminent danger to the health and safety of workers
in the workplace. Within twenty-four hours, a hearing
shall be conducted to determine whether an order for
the stoppage of work or suspension of operations
shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay
the employees concerned their salaries or wages
during the period of such stoppage of work or
suspension of operation.

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

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

(e) Any government employee found guilty of

violation of, or abuse of authority, under this Article
shall, after appropriate administrative investigation,
6. Wage Recovery/Jurisdiction, arts. 128, 129, be subject to summary dismissal from the service.
217, 111; Book III, Rule X, Secs. 1-5
(f) The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep
ART. 128. Visitorial and enforcement power. - (a) The
and maintain such employment records as may be
Secretary of Labor and Employment or his duly
necessary in aid of his visitorial and enforcement
authorized representatives, including labor regulation
powers under this Code.
officers, shall have access to employers records and
premises at any time of the day or night whenever
work is being undertaken therein, and the right to ART. 129. Recovery of wages, simple money claims
copy therefrom, to question any employee and and other benefits. - Upon complaint of any
investigate any fact, condition or matter which may interested party, the Regional Director of the
be necessary to determine violations or which may Department of Labor and Employment or any of the
aid in the enforcement of this Code and of any labor duly authorized hearing officers of the Department is
law, wage order or rules and regulations issued empowered, through summary proceeding and after
pursuant thereto. due notice, to hear and decide any matter involving
the recovery of wages and other monetary claims
and benefits, including legal interest, owing to an
(b) Notwithstanding the provisions of Articles 129
employee or person employed in domestic or
and 217 of this Code to the contrary, and in cases
household service or househelper under this Code,
where the relationship of employer-employee still
arising from employer-employee relations: Provided,
exists, the Secretary of Labor and Employment or his
That such complaint does not include a claim for
duly authorized representatives shall have the power
reinstatement: Provided further, That the aggregate
to issue compliance orders to give effect to the labor
money claims of each employee or househelper does
standards provisions of this Code and other labor
not exceed Five thousand pesos (P5,000.00). The
legislation based on the findings of labor
Regional Director or hearing officer shall decide or
employment and enforcement officers or industrial
resolve the complaint within thirty (30) calendar days
safety engineers made in the course of inspection.
from the date of the filing of the same. Any sum thus
The Secretary or his duly authorized representatives
recovered on behalf of any employee or househelper
shall issue writs of execution to the appropriate
pursuant to this Article shall be held in a special
authority for the enforcement of their orders, except
deposit account by, and shall be paid on order of, the
in cases where the employer contests the findings of
Secretary of Labor and Employment or the Regional
the labor employment and enforcement officer and
Director directly to the employee or househelper
raises issues supported by documentary proofs which
concerned. Any such sum not paid to the employee
were not considered in the course of inspection. (As
or househelper because he cannot be located after
amended by Republic Act No. 7730, June 2, 1994).
diligent and reasonable effort to locate him within a
period of three (3) years, shall be held as a special
An order issued by the duly authorized fund of the Department of Labor and Employment to
representative of the Secretary of Labor and be used exclusively for the amelioration and benefit
Employment under this Article may be appealed to of workers.
the latter. In case said order involves a monetary
award, an appeal by the employer may be perfected
Any decision or resolution of the Regional Director or
only upon the posting of a cash or surety bond issued
hearing officer pursuant to this provision may be
by a reputable bonding company duly accredited by
appealed on the same grounds provided in Article
the Secretary of Labor and Employment in the
223 of this Code, within five (5) calendar days from
amount equivalent to the monetary award in the
receipt of a copy of said decision or resolution, to the
order appealed from. (As amended by Republic Act
National Labor Relations Commission which shall
No. 7730, June 2, 1994).
resolve the appeal within ten (10) calendar days from
the submission of the last pleading required or
(c) The Secretary of Labor and Employment may allowed under its rules.chan robles virtual law library
likewise order stoppage of work or suspension of
operations of any unit or department of an

Duman / Labor I / Prof. Battad / Page 117

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).
ART. 217. Jurisdiction of the Labor Arbiters and the
Commission. - (a) Except as otherwise provided
under this Code, 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, even in the absence of stenographic
notes, the following cases involving all workers,
whether agricultural or non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
3. 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;
4. Claims for actual, moral, exemplary and other
forms of damages arising from the employer-
employee relations;
5. Cases arising from any violation of Article 264 of
this Code, including questions involving the legality
of strikes and lockouts; and
6. 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 exceeding five
thousand pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction
over all cases decided by Labor Arbiters.
(c) 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.
(As amended by Section 9, Republic Act No. 6715,
March 21, 1989).
ART. 111. Attorneys fees. - (a) In cases of unlawful
withholding of wages, the culpable party may be
assessed attorneys fees equivalent to ten percent of
the amount of wages recovered.
SECTION 1. Visitorial power. The Secretary of
Labor and Employment or his duly authorized
representatives, including Labor Regulations Officers
or Industrial Safety Engineers, shall have access to
employer's records and premises at any time of the
day or night whenever work is being undertaken
therein, and right to copy therefrom, to question any
employee, and to investigate any fact, condition or
matter relevant to the enforcement of any provision
of the Code and of any labor law, wage order or rules
and regulations issued pursuant thereto.
SECTION 2. Enforcement power. (a) The Regional
Director in cases where employer relations shall
exist, shall have the power to order and administer,
after due notice and hearing, compliance with the
labor standards provisions of the Code and other
labor legislations based on the findings of the Labor
Regulation Officers or Industrial Safety Engineers
(Labor Standard and Welfare Officer) and made in the
course of inspection, and to issue writs of execution
to the appropriate authority of the enforcement of his
order. In line with the provisions of Article 128 in
relation to Articles 289 and 290 of the Labor Code as
amended in cases, however, where the employer
contests the findings of the Labor Standards and
Welfare Officers and raises issues which cannot be
resolved without considering evidentiary matters
that are not verifiable in the normal course of
inspection, the Regional Director concerned shall
indorse the case to the appropriate arbitration
branch of the National Labor Relations Commission
for adjudication.
(b) The Regional Director shall give the employer
fifteen (15) days within which to comply with his
order before issuing a writ of execution. Copy of such
order or writ of execution shall immediately be
furnished the Secretary of Labor and Employment.
SECTION 3. Enforcement power on health and safety
of workers. (a) The Regional Director may likewise
order stoppage of work or suspension of operations
of any unit or department of an establishment when
non-compliance with the law, safety order or
implementing rules and regulations poses grave and
imminent danger to the health and safety of workers
in the workplace.
(b) Within 24 hours from issuance of the order of
stoppage or suspension, a hearing shall be
conducted to determine whether the order for the
stoppage of work or suspension of operation shall be
lifted or not. The proceedings shall be terminated
within seventy-two (72) hours and a copy of such
order or resolution shall be immediately furnished
the Secretary of Labor and Employment. In case the
violation is attributable to the fault of the employer,
he shall pay the employees concerned their salaries
or wages during the period of such stoppage of work
or suspension of operation.
SECTION 4. Power to review. (a) The Secretary of
Labor and Employment, at his own initiative or upon
request of the employer and/or employee, may
review the order of the Regional Director. The order
of the Regional Director shall be immediately final
and executory unless stayed by the Secretary of
Labor and Employment upon posting by the
employer of a reasonable cash or surety bond as
fixed by the Regional Director.
(b) In aid of his power of review, the Secretary of
Labor and Employment may direct the Bureau of
Working Conditions to evaluate the findings or orders
of the Regional Director. The decision of the
Secretary of Labor and Employment shall be final and
executory.
SECTION 5. Interference and injunctions prohibited.
It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render
ineffective the exercise of the enforcement power of
the Secretary of Labor and Employment, Regional
Director or their duly authorized representatives
pursuant to the authority granted by the Code and its
implementing rules and regulations, and no inferior
court or entity shall issue temporary or permanent
injunction or restraining order or otherwise assume
Duman / Labor I / Prof. Battad / Page 118
jurisdiction over any case involving the enforcement
orders issued in accordance with the Code. In
addition to the penalties provided for by the Labor
Code, any government employees found guilty of
violation or abuse of authority, shall be subject to the
provisions of Presidential Decree No. 6.

Cirineo Bowling Plaza v. Gerry Sensing, supra

Ultra Villa Food Haus v. Geniston, 309 SCRA 17

(1999)

San Miguel Corporation v. Court of Appeals,

supra
Guico v. Sec. of Labor, 298 SCRA 667 (1998)

3. Rationale, PD 851, Whereas

H. Thirteenth Month Pay Clauses and LImitations

1. History of the Law WHEREAS, it is necessary to further protect the level

of real wages from the ravage of worldwide inflation;

Dentech Mfg. Corp. v. NLRC, supra WHEREAS, there has been no increase in the legal
minimum wage rates since 1970;
2. Coverage
WHEREAS, the Christmas season is an opportune
Archilles Manufacturing Corp. v, NLRC, 244 SCRA time for society to show its concern for the plight of
750 (1995) the working masses so they may properly celebrate
Christmas and New Year.

Section 1. All employers are hereby required to pay

all their employees receiving a basic salary of not
more than P1,000 a month, regardless of the nature
of their employment, a 13th-month pay not later
than December 24 of every year.

Sec. 2. Employers already paying their employees a

13th-month pay or its equivalent are not covered by
this Decree.

Duman / Labor I / Prof. Battad / Page 119

 4. Amount and Date of Payment

a. Basic Wage/Commissions

Boie Takeda v. Dela Serna, Supra

Iran v. NLRC, supra
d. Diminution
Honda Philippines Inc. v. Samahan ng Malayang
Manggagawa sa Honda, 460 SCRA 186 (2005) Davao Fruits Corp. v. Associated Labor Unions,
supra

I. Bonus

1. Nature

Philippine Duplicators Inc. v. NLRC, 241 SCRA

380 (1995)

b. Substitute Payment

Framanlis Farms, Inc. v. NLRC, 171 SCRA 87

(1989)

c. 14th Month Pay

2. Definition; When Demandable

Kamaya Port Hotel v. NLRC, 177 SCRA 160 Marcos v. NLRC, 248 SCRA 146 (1995)
(1989)

Duman / Labor I / Prof. Battad / Page 120


Business Information Systems and Services, Inc.
v. NLRC, 221 SCRA 9 (1993)Philippine Appliance
Corp. v. Court of Appeals, 430 SCRA 525 (2004)
American Wire and Cable Daily Rated Employees
Union v. American Wire and Cable Co., Inc., 457
SCRA 684 (2005)
J. Working Conditions for Special Group
of Workers
1. Women, Arts. 130-138; Omnibus Rules, Book
III, Rule XII, Sec. 1; Constitution, Arts. II, Sec. 13 &
XIII, Sec. 14; Convention on the Elimination of All
Forms of Discrimination Against Women (CEDAW),
Arts. 11-13; ILO Convention Nos. 100 & 111
Chapter I
EMPLOYMENT OF WOMEN
ART. 130. Nightwork prohibition. - No woman,
regardless of age, shall be employed or permitted or
suffered to work, with or without compensation:
(a) In any industrial undertaking or branch thereof
between ten oclock at night and six oclock in the
morning of the following day; or
(b) In any commercial or non-industrial undertaking
or branch thereof, other than agricultural, between
midnight and six oclock in the morning of the
following day; or
(c) In any agricultural undertaking at nighttime
unless she is given a period of rest of not less than
nine (9) consecutive hours.
ART. 131. Exceptions. - The prohibitions prescribed by
the preceding Article shall not apply in any of the
following cases:
(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
Duman / Labor I / Prof. Battad / Page 121
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.
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 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. - (a) 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.
RULE XII
Employment of Women and Minors
SECTION 1. General statement on coverage. This
Rule shall apply to all employers, whether operating
for profit or not, including educational, religious and
charitable institutions, except to the Government and
to government-owned or controlled corporations and
to employers of household helpers and persons in
their personal service insofar as such workers are
concerned.
Constitution Art. II, Section 13. The State
recognizes the vital role of the youth in nation-building
and shall promote and protect their physical, moral,
spiritual, intellectual, and social well-being. It shall
inculcate in the youth patriotism and nationalism, and
encourage their involvement in public and civic affairs.
ARTICLE XIII WOMEN
Section 14. The State shall protect working women
by providing safe and healthful working conditions,
taking into account their maternal functions, and such
facilities and opportunities that will enhance their
welfare and enable them to realize their full potential
in the service of the nation.
CEDAW
Article 11
1. States Parties shall take all appropriate measures
to eliminate discrimination against women in the field
of employment in order to ensure, on a basis of
equality of men and women, the same rights, in
particular:
(a) The right to work as an inalienable right of all
human beings;
Duman / Labor I / Prof. Battad / Page 122
(b) The right to the same employment opportunities,
including the application of the same criteria for
selection in matters of employment;
(c) The right to free choice of profession and
employment, the right to promotion, job security and
all benefits and conditions of service and the right to
receive vocational training and retraining, including
apprenticeships, advanced vocational training and
recurrent training;
(d) The right to equal remuneration, including
benefits, and to equal treatment in respect of work of
equal value, as well as equality of treatment in the
evaluation of the quality of work;
(e) The right to social security, particularly in cases of
retirement, unemployment, sickness, invalidity and old
age and other incapacity to work, as well as the right
to paid leave;
(f) The right to protection of health and to safety in
working conditions, including the safeguarding of the
function of reproduction.
2. In order to prevent discrimination against women
on the grounds of marriage or maternity and to ensure
their effective right to work, States Parties shall take
appropriate measures:
(a) To prohibit, subject to the imposition of sanctions,
dismissal on the grounds of pregnancy or of maternity
leave and discrimination in dismissals on the basis of
marital status;
(b) To introduce maternity leave with pay or with
comparable social benefits without loss of former
employment, seniority or social allowances;
(c) To encourage the provision of the necessary
supporting social services to enable parents to
combine family obligations with work responsibilities
and participation in public life, in particular through
promoting the establishment and development of a
network of child-care facilities;
(d) To provide special protection to women during
pregnancy in types of work proved to be harmful to
them.
3. Protective legislation relating to matters covered in
this article shall be reviewed periodically in the light of
scientific and technological knowledge and shall be
revised, repealed or extended as necessary.
Article 12
1. States Parties shall take all appropriate measures
to eliminate discrimination against women in the field
of health care in order to ensure, on a basis of
equality of men and women, access to health care
services, including those related to family planning.
2. Notwithstanding the provisions of paragraph I of
this article, States Parties shall ensure to women
appropriate services in connection with pregnancy,
confinement and the post-natal period, granting free
services where necessary, as well as adequate
nutrition during pregnancy and lactation.
Article 13
States Parties shall take all appropriate measures to
eliminate discrimination against women in other areas
of economic and social life in order to ensure, on a
basis of equality of men and women, the same rights,
in particular:
(a) The right to family benefits;
(b) The right to bank loans, mortgages and other
forms of financial credit;
(c) The right to participate in recreational activities,
sports and all aspects of cultural life.
C100 Equal Remuneration Convention, 1951
Convention concerning Equal Remuneration for Men
and Women Workers for Work of Equal Value (Note:
Date of coming into force: 23:05:1953.)
Convention:C100
Place:Geneva
Session of the Conference:34
Date of adoption:29:06:1951
Subject classification: Equal Remuneration
Subject classification: Women
Subject: Equality of Opportunity and Treatment
The General Conference of the International Labour
Organisation,
Having been convened at Geneva by the Governing
Body of the International Labour Office, and having
met in its Thirty-fourth Session on 6 June 1951, and
Having decided upon the adoption of certain
proposals with regard to the principle of equal
remuneration for men and women workers for work
of equal value, which is the seventh item on the
agenda of the session, and
Having determined that these proposals shall take
the form of an international Convention,
adopts this twenty-ninth day of June of the year one
thousand nine hundred and fifty-one the following
Convention, which may be cited as the Equal
Remuneration Convention, 1951:
Article 1
For the purpose of this Convention--
(a) the term remuneration includes the ordinary,
basic or minimum wage or salary and any additional
emoluments whatsoever payable directly or
indirectly, whether in cash or in kind, by the
employer to the worker and arising out of the
worker's employment;
(b) the term equal remuneration for men and
women workers for work of equal value refers to
rates of remuneration established without
discrimination based on sex.
Article 2
1. Each Member shall, by means appropriate to the
methods in operation for determining rates of
Duman / Labor I / Prof. Battad / Page 123
remuneration, promote and, in so far as is consistent
with such methods, ensure the application to all
workers of the principle of equal remuneration for
men and women workers for work of equal value.
2. This principle may be applied by means of--
(a) national laws or regulations;
(b) legally established or recognised machinery for
wage determination;
(c) collective agreements between employers and
workers; or
(d) a combination of these various means.
Article 3
1. Where such action will assist in giving effect to the
provisions of this Convention measures shall be
taken to promote objective appraisal of jobs on the
basis of the work to be performed.
2. The methods to be followed in this appraisal may
be decided upon by the authorities responsible for
the determination of rates of remuneration, or, where
such rates are determined by collective agreements,
by the partes thereto.
3. Differential rates between workers which
correspond, without regard to sex, to differences, as
determined by such objective appraisal, in the work
to be performed shall not be considered as being
contrary to the principle of equal remuneration for
men and women workers for work of equal value.
Article 4
Each Member shall co-operate as appropriate with
the employers' and workers' organisations concerned
for the purpose of giving effect to the provisions of
this Convention.
Article 5
The formal ratifications of this Convention shall be
communicated to the Director-General of the
International Labour Office for registration.
Article 6
1. This Convention shall be binding only upon those
Members of the International Labour Organisation
whose ratifications have been registered with the
Director-General.
2. It shall come into force twelve months after the
date on which the ratifications of two Members have
been registered with the Director-General.
3. Thereafter, this Convention shall come into force
for any Member twelve months after the date on
which its ratification has been registered.
Article 7
1. Declarations communicated to the Director-
General of the International Labour Office in
accordance with paragraph 2 of Article 35 of the
Constitution of the International Labour Organisation
shall indicate --
a) the territories in respect of which the Member
concerned undertakes that the provisions of the
Convention shall be applied without modification;
b) the territories in respect of which it undertakes
that the provisions of the Convention shall be applied
subject to modifications, together with details of the
said modifications;
c) the territories in respect of which the Convention
is inapplicable and in such cases the grounds on
which it is inapplicable;
d) the territories in respect of which it reserves its
decision pending further consideration of the
position.
2. The undertakings referred to in subparagraphs (a)
and (b) of paragraph 1 of this Article shall be deemed
to be an integral part of the ratification and shall
have the force of ratification.
3. Any Member may at any time by a subsequent
declaration cancel in whole or in part any reservation
made in its original declaration in virtue of
subparagraph (b), (c) or (d) of paragraph 1 of this
Article.
4. Any Member may, at any time at which the
Convention is subject to denunciation in accordance
with the provisions of Article 9, communicate to the
Director-General a declaration modifying in any other
respect the terms of any former declaration and
stating the present position in respect of such
territories as it may specify.
Article 8
1. Declarations communicated to the Director-
General of the International Labour Office in
accordance with paragraph 4 or 5 of Article 35 of the
Constitution of the International Labour Organisation
shall indicate whether the provisions of the
Convention will be applied in the territory concerned
without modification or subject to modifications;
when the declaration indicates that the provisions of
the Convention will be applied subject to
modifications, it shall give details of the said
modifications.
2. The Member, Members or international authority
concerned may at any time by a subsequent
declaration renounce in whole or in part the right to
have recourse to any modification indicated in any
former declaration.
3. The Member, Members or international authority
concerned may, at any time at which this Convention
is subject to denunciation in accordance with the
provisions of Article 9, communicate to the Director-
General a declaration modifying in any other respect
the terms of any former declaration and stating the
present position in respect of the application of the
Convention.
Article 9
1. A Member which has ratified this Convention may
denounce it after the expiration of ten years from the
date on which the Convention first comes into force,
Duman / Labor I / Prof. Battad / Page 124
by an act communicated to the Director-General of
the International Labour Office for registration. Such
denunciation shall not take effect until one year after
the date on which it is registered.
2. Each Member which has ratified this Convention
and which does not, within the year following the
expiration of the period of ten years mentioned in the
preceding paragraph, exercise the right of
denunciation provided for in this Article, will be
bound for another period of ten years and,
thereafter, may denounce this Convention at the
expiration of each period of ten years under the
terms provided for in this Article.
Article 10
1. The Director-General of the International Labour
Office shall notify all Members of the International
Labour Organisation of the registration of all
ratifications, declarations and denunciations
communicated to him by the Members of the
Organisation.
2. When notifying the Members of the Organisation of
the registration of the second ratification
communicated to him, the Director-General shall
draw the attention of the Members of the
Organisation to the date upon which the Convention
will come into force.
Article 11
The Director-General of the International Labour
Office shall communicate to the Secretary-General of
the United Nations for registration in accordance with
Article 102 of the Charter of the United Nations full
particulars of all ratifications, declarations and acts
of denunciation registered by him in accordance with
the provisions of the preceding articles.
Article 12
At such times as may consider necessary the
Governing Body of the International Labour Office
shall present to the General Conference a report on
the working of this Convention and shall examine the
desirability of placing on the agenda of the
Conference the question of its revision in whole or in
part.
Article 13
1. Should the Conference adopt a new Convention
revising this Convention in whole or in part, then,
unless the new Convention otherwise provides--
a) the ratification by a Member of the new revising
Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
provisions of Article 9 above, if and when the new
revising Convention shall have come into force;
b) as from the date when the new revising
Convention comes into force this Convention shall
cease to be open to ratification by the Members.
2. This Convention shall in any case remain in force
in its actual form and content for those Members
which have ratified it but have not ratified the
revising Convention.
Article 14
The English and French versions of the text of this
Convention are equally authoritative.
C111 Discrimination (Employment and
Occupation) Convention, 1958
Convention concerning Discrimination in Respect of
Employment and Occupation (Note: Date of coming
into force: 15:06:1960.)
Convention:C111
Place:Geneva
Session of the Conference:42
Date of adoption:25:06:1958
Subject classification: Non-discrimination
(Employment and Occupation)
Subject classification: Women
Subject: Equality of Opportunity and Treatment
The General Conference of the International Labour
Organisation,
Having been convened at Geneva by the Governing
Body of the International Labour Office, and having
met in its Forty-second Session on 4 June 1958, and
Having decided upon the adoption of certain
proposals with regard to discrimination in the field of
employment and occupation, which is the fourth item
on the agenda of the session, and
Having determined that these proposals shall take
the form of an international Convention, and
Considering that the Declaration of Philadelphia
affirms that all human beings, irrespective of race,
creed or sex, have the right to pursue both their
material well-being and their spiritual development in
conditions of freedom and dignity, of economic
security and equal opportunity, and
Considering further that discrimination constitutes a
violation of rights enunciated by the Universal
Declaration of Human Rights,
adopts this twenty-fifth day of June of the year one
thousand nine hundred and fifty-eight the following
Convention, which may be cited as the
Discrimination (Employment and Occupation)
Convention, 1958:
Article 1
1. For the purpose of this Convention the term
discrimination includes--
(a) any distinction, exclusion or preference made on
the basis of race, colour, sex, religion, political
opinion, national extraction or social origin, which
has the effect of nullifying or impairing equality of
opportunity or treatment in employment or
occupation;
(b) such other distinction, exclusion or preference
which has the effect of nullifying or impairing
equality of opportunity or treatment in employment
or occupation as may be determined by the Member
concerned after consultation with representative
employers' and workers' organisations, where such
exist, and with other appropriate bodies.
Duman / Labor I / Prof. Battad / Page 125
2. Any distinction, exclusion or preference in respect
of a particular job based on the inherent
requirements thereof shall not be deemed to be
discrimination.
3. For the purpose of this Convention the terms
employment and occupation include access to
vocational training, access to employment and to
particular occupations, and terms and conditions of
employment.
Article 2
Each Member for which this Convention is in force
undertakes to declare and pursue a national policy
designed to promote, by methods appropriate to
national conditions and practice, equality of
opportunity and treatment in respect of employment
and occupation, with a view to eliminating any
discrimination in respect thereof.
organisations, where such exist, determine that other
special measures designed to meet the particular
requirements of persons who, for reasons such as
sex, age, disablement, family responsibilities or
social or cultural status, are generally recognised to
require special protection or assistance, shall not be
deemed to be discrimination.
Article 6
Each Member which ratifies this Convention
undertakes to apply it to non-metropolitan territories
in accordance with the provisions of the Constitution
of the International Labour Organisation.
Article 7
The formal ratifications of this Convention shall be
communicated to the Director-General of the
International Labour Office for registration.

Article 3
Article 8

Each Member for which this Convention is in force

1. This Convention shall be binding only upon those
undertakes, by methods appropriate to national
Members of the International Labour Organisation
conditions and practice--
whose ratifications have been registered with the
Director-General.
(a) to seek the co-operation of employers' and
workers' organisations and other appropriate bodies
2. It shall come into force twelve months after the
in promoting the acceptance and observance of this
date on which the ratifications of two Members have
policy;
been registered with the Director-General.

(b) to enact such legislation and to promote such

3. Thereafter, this Convention shall come into force
educational programmes as may be calculated to
for any Member twelve months after the date on
secure the acceptance and observance of the policy;
which its ratification has been registered.

(c) to repeal any statutory provisions and modify any

administrative instructions or practices which are
inconsistent with the policy;
(d) to pursue the policy in respect of employment
under the direct control of a national authority;
(e) to ensure observance of the policy in the
activities of vocational guidance, vocational training
and placement services under the direction of a
national authority;
(f) to indicate in its annual reports on the application
of the Convention the action taken in pursuance of
the policy and the results secured by such action.
Article 4
Any measures affecting an individual who is
justifiably suspected of, or engaged in, activities
prejudicial to the security of the State shall not be
deemed to be discrimination, provided that the
individual concerned shall have the right to appeal to
a competent body established in accordance with
national practice.
Article 5
Article 9
1. A Member which has ratified this Convention may
denounce it after the expiration of ten years from the
date on which the Convention first comes into force,
by an act communicated to the Director-General of
the International Labour Office for registration. Such
denunciation shall not take effect until one year after
the date on which it is registered.
2. Each Member which has ratified this Convention
and which does not, within the year following the
expiration of the period of ten years mentioned in the
preceding paragraph, exercise the right of
denunciation provided for in this Article, will be
bound for another period of ten years and,
thereafter, may denounce this Convention at the
expiration of each period of ten years under the
terms provided for in this Article.
Article 10
1. The Director-General of the International Labour
Office shall notify all Members of the International
Labour Organisation of the registration of all
ratifications and denunciations communicated to him
by the Members of the Organisation.

2. When notifying the Members of the Organisation of

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

2. Any Member may, after consultation with

Article 11
representative employers' and workers'
Duman / Labor I / Prof. Battad / Page 126
The Director-General of the International Labour
Office shall communicate to the Secretary-General of
the United Nations for registration in accordance with
Article 102 of the Charter of the United Nations full
particulars of all ratifications and acts of
denunciation registered by him in accordance with
the provisions of the preceding Articles.
b. Women under the Constitution, Art. II, Sec. 14;
Article 12 Art XIII, Sec 14

Philippine Association of Service Exporters v.

At such times as it may consider necessary the
Governing Body of the International Labour Office Drilon, 163 SCRA 386 (1988)
shall present to the General Conference a report on
the working of this Convention and shall examine the
desirability of placing on the agenda of the
Conference the question of its revision in whole or in
part.

Article 13

1. Should the Conference adopt a new Convention

revising this Convention in whole or in part, then,
unless the new Convention otherwise provides:

a) the ratification by a Member of the new revising

Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
provisions of Article 9 above, if and when the new
revising Convention shall have come into force;

b) as from the date when the new revising

Convention comes into force, this Convention shall
cease to be open to ratification by the Members.
Phil. Telegraph and Telephone Co. v. NLRC, 272
2. This Convention shall in any case remain in force SCRA 596 (1997)
in its actual form and content for those Members
which have ratified it but have not ratified the
revising Convention.

Article 14

The English and French versions of the text of this

Convention are equally authoritative.

a. Equality: Formal Equality vs. Substantive

Equality

Readings:

Bartlett, Katharine, Gender Law, in Duke Journal

of Gender Law and Policy (1994)
Formal Equality and Substantive Equality in the
Textbook on Gender and the Law by Angela
Harris
Baldoz, Rosalinda, Job discrimination against
women in the work environment: the Philippine
setting, PLR, Vol. 24, No. 1 (2000).

c. Coverage, Rule XII, Sec. I

Employment of Women and Minors

SECTION 1. General statement on coverage. This

Rule shall apply to all employers, whether operating
for profit or not, including educational, religious and
charitable institutions, except to the Government and
to government-owned or controlled corporations and
to employers of household helpers and persons in
their personal service insofar as such workers are
concerned.
Duman / Labor I / Prof. Battad / Page 127

d. Prohibited Acts
1) Night Work/Exception, Art. 130-131
ART. 130. Nightwork prohibition. - No woman,
regardless of age, shall be employed or permitted or
suffered to work, with or without compensation:
(a) In any industrial undertaking or branch thereof
between ten oclock at night and six oclock in the
morning of the following day; or
(b) In any commercial or non-industrial undertaking
or branch thereof, other than agricultural, between
midnight and six oclock in the morning of the
following day; or
(c) In any agricultural undertaking at nighttime
unless she is given a period of rest of not less than
nine (9) consecutive hours.
ART. 131. Exceptions. - The prohibitions prescribed by
the preceding Article shall not apply in any of the
following cases:
(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;
(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).
10) Stipulation Against Marriage, Art. 136
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.

(b) In case of urgent work to be performed on

machineries, equipment or installation, to avoid
Duncan Association of Detailman PTGWO v.
serious loss which the employer would otherwise Glaxo Wellcome Philippines, Inc., 438 SCRA 343
suffer; (2004)

(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.

9) Discrimination, Art. 135 11) Discharge on Account of Pregnancy, Art. 137

ART. 135. Discrimination prohibited. - It shall be

unlawful for any employer to discriminate against
any woman employee with respect to terms and
conditions of employment solely on account of her
sex.
The following are acts of discrimination:
ART. 137. Prohibited acts. - (a) 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.
Duman / Labor I / Prof. Battad / Page 128
(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.
d. Facilities, Art. 132, 134
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. 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.
e. Special Women Workers, 138
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.
f. Maternity Leave, Social Security Law of 1997 (RA
1161, as amended by RA 8282), Sec. 14-A, RA
828
"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 sixty (60) days or
seventy-eight (78) days in case of caesarian delivery,
subject to the following conditions:
"(a) That the employee shall have notified her
employer of her pregnancy and the probable date of
her childbirth, which notice shall be transmitted to
the SSS in accordance with the rules and regulations
it may provide;
"(b) The full payment shall be advanced by the
employer within thirty (30) days from the filing of the
maternity leave application;
"(c) That payment of daily maternity benefits shall be
a bar to the recovery of sickness benefits provided
by this Act for the same period for which daily
maternity benefits have been received;
"(d) That the maternity benefits provided under this
section shall be paid only for the first four (4)
deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the
employer of one hundred percent (100%) of the
amount of maternity benefits advanced to the
employee by the employer upon receipt of
satisfactory proof of such payment and legality
thereof; and
"(f) That if an employee member should give birth or
suffer miscarriage without the required contributions
having been remitted for her by her employer to the
SSS, or without the latter having been previously
notified by the employer of the time of the
pregnancy, the employer shall pay to the SSS
damages equivalent to the benefits which said
employee member would otherwise have been
entitled to.
g. Sexual Harassment (RA 7877)
REPUBLIC ACT NO. 7877
AN ACT DECLARING SEXUAL HARASSMENT
UNLAWFUL IN THE EMPLOYMENT, EDUACATION
OR TRAINING ENVIRONMENT, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress
assembled:
Section 1. Title. This Act shall be known as the
"Anti-Sexual Harassment Act of 1995."
Sec. 2. Declaration of Policy. The State shall
value the dignity of every individual, enhance the
development of it human resources, guarantee full
respect for human rights, and uphold the dignity of
workers, employees, applicants for employment,
students or those undergoing training, instruction or
education. Towards this end, all forms of sexual
harassment in the employment, education or training
environment are hereby declared unlawful.
Duman / Labor I / Prof. Battad / Page 129
 Sec. 3. Work, Education or Training-related
Sexual Harassment Defined. Work, education or
training-related sexual harassment is committed by an
employee, manager, supervisor, agent of the
employer, teacher, instructor, professor, coach,
trainor, or any other person who, having authority,
influence or moral ascendancy over another in a work
or training or education environment, demands,
requests or otherwise requires any sexual favor from
the other, regardless of whether the demand, request
or requirement for submission is accepted by the
object of said Act.
(a) In a work-related or employment
environment, sexual harassment is committed when:
(1) The sexual favor is made as a condition
in the hiring or in the employment, re-employment or
continued employment of said individual, or in
granting said individual favorable compensation,
terms, conditions, promotions, or privileges; or the
refusal to grant the sexual favor results in limiting,
segregating or classifying the employee which in a
way would discriminate, deprive or diminish
employment opportunities or otherwise adversely
affect said employee;
(2) The above acts would impair the
employees rights or privileges under existing labor
laws; or
(3) The above acts would result in an
intimidating, hostile, or offensive environment for the
employee.
(b) In an education or training environment,
sexual harassment is committed:
(1) Against one who is under the care,
custody or supervision of the offender;
(2) Against one whose education, training,
apprenticeship or tutorship is entrusted to the
offender;
(3) When the sexual favor is made a
condition to the giving of a passing grade, or the
granting of honors and scholarships, or the payment
of a stipend, allowance or other benefits, privileges, or
considerations; or
(4) When the sexual advances result in an
intimidating, hostile or offensive environment for the
student, trainee or apprentice.
Any person who directs or induces
another to commit any act of sexual harassment as
herein defined, or who cooperates in the commission
thereof by another without which it would not have
been committed, shall also be held liable under this
Act.
Sec.4. Duty of the Employer or Head of Office in
a Work-related, Education or Training Environment.
It shall be the duty of the employer or the head of the
work-related, educational or training environment or
institution, to prevent or deter the commission of acts
of sexual harassment and to provide the procedures
for the resolution, settlement or prosecution of acts of
sexual harassment. Towards this end, the employer or
head of office shall:
(a) Promulgate appropriate rules and
regulations in consultation with the jointly approved by
the employees or students or trainees, through their
duly designated representatives, prescribing the
procedure for the investigation or sexual harassment
cases and the administrative sanctions therefor.
Administrative sanctions shall not be a bar to
prosecution in the proper courts for unlawful acts of
sexual harassment.
The said rules and regulations issued pursuant
to this section (a) shall include, among others,
guidelines on proper decorum in the workplace and
educational or training institutions.
(c) Create a committee on decorum and
investigation of cases on sexual harassment. The
committee shall conduct meetings, as the case may
be, with other officers and employees, teachers,
instructors, professors, coaches, trainors and
students or trainees to increase understanding and
prevent incidents of sexual harassment. It shall also
conduct the investigation of the alleged cases
constituting sexual harassment.
In the case of a work-related environment, the
committee shall be composed of at least one (1)
representative each from the management, the union,
if any, the employees from the supervisory rank, and
from the rank and file employees.
In the case of the educational or training
institution, the committee shall be composed of at
least one (1) representative from the administration,
the trainors, teachers, instructors, professors or
coaches and students or trainees, as the case maybe.
"The employer or head of office, educational or
training institution shall disseminate or post a copy of
this Act for the information of all concerned.
Sec. 5. Liability of the Employer, Head of Office,
Educational or Training Institution. The employer or
head of office, educational training institution shall be
solidarily liable for damage arising from the acts of
sexual harassment committed in the employment,
education or training environment if the employer or
head of office, educational or training institution is
informed of such acts by the offended party and no
immediate action is taken thereon.
Sec. 6. Independent Action for Damages.
Nothing in this Act shall preclude the victim of work,
education or training-related sexual harassment from
instituting a separate and independent action for
damages and other affirmative relief.
Sec. 7. Penalties. Any person who violates the
provisions of this Act shall, upon conviction, be
penalized by imprisonment of not less than one (1)
month nor more than six (6) months, or a fine of not
less than Ten thousand pesos (P10,000) nor more
Duman / Labor I / Prof. Battad / Page 130
than Twenty thousand pesos (P20,000), or both such
fine and imprisonment at the discretion of the court.
Any action arising from the violation of the
provision of this Act shall prescribe in three (3) years.
Sec. 8. Separability Clause If any portion or
provision of this Act is declared void and
unconstitutional, the remaining portions or provisions
hereof shall not be affected by such declaration.
Sec.9. Repealing Clause. All laws, decrees,
orders, rules and regulations, other issuances, or
parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.
Sec.10. Effectivity Clause. This Act shall take
effect fifteen (15) days after its complete publication in
at least two (2) national newspaper of general
circulation.
Libres v. NLRC, 307 SCRA 675 (1999)
Philippine Aelous Automotive United Corp. v.
NLRC, 331SCRA 237 (2000)
Renato S. Gatbonton v. NLRC, et al., 479 SCRA
416 (2006)
2. Minors
Reference: Art.s 139-140; Omnibus Rules,
Book III, Rule XII, Secs. 2-3; Special Protection of
Children Act of 2003 (RA 7610, as amended by RA
9231); ILO Convention No.182 and ILO
Recommendation No. 190
EMPLOYMENT OF MINORS
ART. 139. Minimum employable age. - (a) No child
below fifteen (15) years of age shall be employed,
except when he works directly under the sole
responsibility of his parents or guardian, and his
employment does not in any way interfere with his
schooling.
(b) Any person between fifteen (15) and eighteen
(18) years of age may be employed for such number
of hours and such periods of the day as determined
by the Secretary of Labor and Employment in
appropriate regulations.
(c) The foregoing provisions shall in no case allow the
employment of a person below eighteen (18) years
of age in an undertaking which is hazardous or
deleterious in nature as determined by the Secretary
of Labor and Employment.
Duman / Labor I / Prof. Battad / Page 131
ART. 140. Prohibition against child discrimination. -
No employer shall discriminate against any person in
respect to terms and conditions of employment on
account of his age.
SECTION 2. Employable age. Children below fifteen
(15) years of age may be allowed to work under the
direct responsibility of their parents or guardians in
any non-hazardous undertaking where the work will
not in any way interfere with their schooling. In such
cases, the children shall not be considered as
employees of the employers or their parents or
guardians.
SECTION 3. Eligibility for employment. Any person
of either sex, between 15 and 18 years of age, may
be employed in any non-hazardous work. No
employer shall discriminate against such person in
regard to terms and conditions of employment on
account of his age.
For purposes of this Rule, a non-hazardous work or
undertaking shall mean any work or activity in which
the employee is not exposed to any risk which
constitutes an imminent danger to his safety and
health. The Secretary of Labor and Employment shall
from time to time publish a list of hazardous work
and activities in which persons 18 years of age and
below cannot be employed.
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the
twenty-eighth day of July, two thousand three.
Republic Act No. 9231 December 19, 2003
AN ACT PROVIDING FOR THE ELIMINATION OF
THE WORST FORMS OF CHILD LABOR AND
AFFORDING STRONGER PROTECTION FOR THE
WORKING CHILD, AMENDING FOR THIS
PURPOSE REPUBLIC ACTNO. 7610, AS
AMENDED, OTHERWISE KNOWN AS THE
"SPECIAL PROTECTION OF CHILDREN AGAINST
CHILD ABUSE, EXPLOITATION AND
DISCRIMINATION ACT"
Be it enacted by the Senate and the House of
Representatives of the Philippines in Congress
assembled:
Section 1. Section 2 of Republic Act No. 7610, as
amended, otherwise known as the "Special Protection
of Children Against Child Abuse, Exploitation and
Discrimination Act", is hereby amended to read as
follows:
"Sec. 2. Declaration of State Policy and Principles. - It
is hereby declared to be the policy of the State to
provide special protection to children from all forms of
abuse, neglect, cruelty, exploitation and
discrimination, and other conditions prejudicial to their
development including child labor and its worst forms;
provide sanctions for their commission and carry out a
program for prevention and deterrence of and crisis
intervention in situations of child abuse, exploitation
and discrimination. The State shall intervene on
behalf of the child when the parent, guardian, teacher
or person having care or custody of the child fails or is
unable to protect the child against abuse, exploitation
and discrimination or when such acts against the child
are committed by the said parent, guardian, teacher
or person having care and custody of the same.
"It shall be the policy of the State to protect and
rehabilitate children gravely threatened or
endangered by circumstances which affect or will
affect their survival and normal development and over
which they have no control.
"The best interests of children shall be the paramount
consideration in all actions concerning them, whether
undertaken by public or private social welfare
institutions, courts of law, administrative authorities,
and legislative bodies, consistent with the principle of
First Call for Children as enunciated in the United
Nations Convention on the Rights of the Child. Every
effort shall be exerted to promote the welfare of
children and enhance their opportunities for a useful
and happy life."
Section 2. Section 12 of the same Act, as amended,
is hereby further amended to read as follows:
"Sec. 2. Employment of Children - Children below
fifteen (15) years of age shall not be employed
except:
"1) When a child works directly under the sole
responsibility of his/her parents or legal guardian and
where only members of his/her family are employed:
Provided, however, That his/her employment neither
endangers his/her life, safety, health, and morals, nor
impairs his/her normal development: Provided,
further, That the parent or legal guardian shall provide
the said child with the prescribed primary and/or
secondary education; or
"2) Where a child's employment or participation in
public entertainment or information through cinema,
theater, radio, television or other forms of media is
essential: Provided, That the employment contract is
concluded by the child's parents or legal guardian,
with the express agreement of the child concerned, if
possible, and the approval of the Department of Labor
and Employment: Provided, further, That the following
requirements in all instances are strictly complied
with:
"(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.
Duman / Labor I / Prof. Battad / Page 132
"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-B. Ownership, Usage and Administration of
the Working Child's Income. - The wages, salaries,
earnings and other income of the working child shall
belong to him/her in ownership and shall be set aside
primarily for his/her support, education or skills
acquisition and secondarily to the collective needs of
the family: Provided, That not more than twenty
percent (20%) of the child's income may be used for
the collective needs of the family.
"The income of the working child and/or the property
acquired through the work of the child shall be
administered by both parents. In the absence or
incapacity of either of the parents, the other parent
shall administer the same. In case both parents are
absent or incapacitated, the order of preference on
parental authority as provided for under the Family
Code shall apply.
"Sec. 12-C. Trust Fund to Preserve Part of the
Working Child's Income. - The parent or legal
guardian of a working child below eighteen (18) years
of age shall set up a trust fund for at least thirty
percent (30%) of the earnings of the child whose
wages and salaries from work and other income
amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render
a semi-annual accounting of the fund to the
Department of Labor and Employment, in compliance
with the provisions of this Act. The child shall have full
control over the trust fund upon reaching the age of
majority.
"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 "Anti-
trafficking 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."
Duman / Labor I / Prof. Battad / Page 133
Section 4. Section 13 of the same Act is hereby
amended to read as follows:
"Sec. 13. Access to Education and Training for
Working Children - "a) No child shall be deprived of
formal or non-formal education. In all cases of
employment allowed in this Act, the employer shall
provide a working child with access to at least primary
and secondary education.
"b) To ensure and guarantee the access of the
working child to education and training, the
Department of Education (DEPED) shall: (1)
formulate, promulgate, and implement relevant and
effective course designs and educational programs;
(2) conduct the necessary training for the
implementation of the appropriate curriculum for the
purpose; (3) ensure the availability of the needed
educational facilities and materials; and (4) conduct
continuing research and development program for the
necessary and relevant alternative education of the
working child.
"c) The DEPED shall promulgate a course design
under its non-formal education program aimed at
promoting the intellectual, moral and vocational
efficiency of working children who have not
undergone or finished elementary or secondary
education. Such course design shall integrate the
learning process deemed most effective under given
circumstances."
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 alcoholic beverages, intoxicating
drinks, tobacco and its byproducts, gambling or any
form of violence or pornography."
Section 6. Section 16 of the same Act, is hereby
amended to read as follows:
"Sec. 16. Penal Provisions -
"a) Any employer who violates Sections 12, 12-A, and
Section 14 of this act, as amended, shall be penalized
by imprisonment of six (6) months and one (1) day to
six (6) years or a fine of not less than Fifty thousand
pesos (P50,000.00) but not more than Three hundred
thousand pesos (P300,000.00) or both at the
discretion of the court.
"b) Any person who violates the provision of Section
12-D of this act or the employer of the subcontractor
who employs, or the one who facilitates the
employment of a child in hazardous work, shall suffer
the penalty of a fine of not less than One hundred
thousand pesos (P100,000.00) but not more than One
million pesos (P1,000,000.00), or imprisonment of not
less than twelve (12) years and one (1) day to twenty
(20) years, or both such fine and imprisonment at the
discretion of the court.
"c) Any person who violates Sections 12-D(1) and 12-
D(2) shall be prosecuted and penalized in accordance
with the penalty provided for by R. A. 9208 otherwise
known as the "Anti-trafficking in Persons Act of 2003":
Provided, That Such penalty shall be imposed in its
maximum period.
"d) Any person who violates Section 12-D (3) shall be
prosecuted and penalized in accordance with R.A.
9165, otherwise known as the "Comprehensive
Dangerous Drugs Act of 2002"; Provided, That such
penalty shall be imposed in its maximum period.
"e) If a corporation commits any of the violations
aforecited, the board of directors/trustees and officers,
which include the president, treasurer and secretary
of the said corporation who participated in or
knowingly allowed the violation, shall be penalized
accordingly as provided for under this Section.
"f) Parents, biological or by legal fiction, and legal
guardians found to be violating Sections 12, 12-A, 12-
B and 12-C of this Act shall pay a fine of not less than
Ten thousand pesos (P10,000.00) but not more than
One hundred thousand pesos (P100,000.00), or be
required to render community service for not less than
thirty (30) days but not more than one (1) year, or
both such fine and community service at the
discretion of the court: Provided, That the maximum
length of community service shall be imposed on
parents or legal guardians who have violated the
provisions of this Act three (3) times; Provided,
further, That in addition to the community service, the
penalty of imprisonment of thirty (30) days but not
more than one (1) year or both at the discretion of the
court, shall be imposed on the parents or legal
guardians who have violated the provisions of this Act
more than three (3) times.
"g) The Secretary, of Labor and Employment or
his/her duly authorized representative may, after due
notice and hearing, order the closure of any business
firm or establishment found to have violated any of
the provisions of this Act more than three (3) times.
He/she shall likewise order the immediate closure of
such firm or establishment if:
"(1) The violation of any provision of this Act has
resulted in the death, insanity or serious physical
injury of a child employed in such establishment; or
"(2) Such firm or establishment is engaged or
employed in prostitution or in obscene or lewd shows.
"h) In case of such closure, the employer shall be
required to pay the employee(s) the separation pay
and other monetary benefits provided for by law."
Section 7. The same Act is hereby further amended
by adding a new section to be denominated as
Section 16-A, to read as follows:
"Sec. 16-A. Trust Fund from Fines and Penalties -
The fine imposed by the court shall be treated as a
Trust Fund, administered by the Department of Labor
and Employment and disbursed exclusively for the
needs, including the costs of rehabilitation and
reintegration into the mainstream of society of the
working children who are victims of the violations of
Duman / Labor I / Prof. Battad / Page 134
this Act, and for the programs and projects that will
prevent acts of child labor."
Section 8. Section 27 of the same Act is hereby
amended to read as follows:
"Sec. 27. Who May File a Complaint - Complaints on
cases of unlawful acts committed against children as
enumerated herein may be filed by the following:
"(a) Offended party;
"(b) Parents or guardians;
"(c) Ascendant or collateral relative within the third
degree of consanguinity;
"(d) Officer, social worker or representative of a
licensed child-caring institution;
"(e) Officer or social worker of the Department of
Social Welfare and Development;
"(f) Barangay chairman of the place where the
violation occurred, where the child is residing or
employed; or
"(g) At least three (3) concerned, responsible citizens
where the violation occurred."
Section 9. The same Act is hereby further amended
by adding new sections to Section 16 to be
denominated as Sections 16-A, 16-B and 16-C to
read as follows:
"Sec. 16-A. Jurisdiction - The family courts shall have
original jurisdiction over all cases involving offenses
punishable under this Act: Provided, That in cities or
provinces where there are no family courts yet, the
regional trial courts and the municipal trial courts shall
have concurrent jurisdiction depending on the
penalties prescribed for the offense charged.
"The preliminary investigation of cases filed under this
Act shall be terminated within a period of thirty (30)
days from the date of filing.
"If the preliminary investigation establishes a prima
facie case, then the corresponding information shall
be filed in court within forty eight (48) hours from the
termination of the investigation.
"Trial of cases under this Act shall be terminated by
the court not later than ninety (90) days from the date
of filing of information. Decision on said cases shall
be rendered within a period of fifteen (15) days from
the date of submission of the case.
"Sec. 15. Exemptions from Filing Fees. - When the
victim of child labor institutes a separate civil action
for the recovery of civil damages, he/she shall be
exempt from payment of filing fees.
"Sec. 16-C. Access to Immediate Legal, Medical and
Psycho-Social Services - The working child shall have
the right to free legal, medical and psycho-social
services to be provided by the State."
Section 10. Implementing Rules and Regulations -
The Secretary of Labor and Employment, in
coordination with the Committees on Labor and
Employment of both Houses of Congress, shall issue
the necessary Implementing Rules and Regulations
(IRR) to effectively implement the provisions of this
Act, in consultation with concerned public and private
sectors, within sixty (60) days from the effectivity of
this Act.
Such rules and regulations shall take effect upon their
publication in two (2) national newspapers of general
circulation.
Section 11. Separability Clause. - If any provision of
this Act is declared invalid or unconstitutional, the
validity of the remaining provisions hereof shall
remain in full force and effect.
Section 12. Repealing Clause. - All laws, decrees, or
rules inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.
Section 13. Effectivity. - This Act shall take effect
fifteen (15) days from the date of its complete
publication in the Official Gazette or in at least two (2)
national newspapers of general circulation.
C182 Worst Forms of Child Labour Convention,
1999
Convention concerning the Prohibition and Immediate
Action for the Elimination of the Worst Forms of Child
Labour (Note: Date of coming into force: 19:11:2000)
Convention:C182
Place:Geneva
Session of the Conference:87
Date of adoption:17:06:1999
Subject classification: Elimination of Child Labour
Subject classification: Children and Young Persons
Subject: Elimination of Child Labour and
Protection of Children and Young Persons
The General Conference of the International Labour
Organization,
Having been convened at Geneva by the Governing
Body of the International Labour Office, and having
met in its 87th Session on 1 June 1999, and
Considering the need to adopt new instruments for
the prohibition and elimination of the worst forms of
child labour, as the main priority for national and
international action, including international
cooperation and assistance, to complement the
Convention and the Recommendation concerning
Minimum Age for Admission to Employment, 1973,
which remain fundamental instruments on child
labour, and
Considering that the effective elimination of the worst
forms of child labour requires immediate and
comprehensive action, taking into account the
Duman / Labor I / Prof. Battad / Page 135
importance of free basic education and the need to
remove the children concerned from all such work
and to provide for their rehabilitation and social
integration while addressing the needs of their
families, and
Recalling the resolution concerning the elimination of
child labour adopted by the International Labour
Conference at its 83rd Session in 1996, and
Recognizing that child labour is to a great extent
caused by poverty and that the long-term solution lies
in sustained economic growth leading to social
progress, in particular poverty alleviation and
universal education, and
Recalling the Convention on the Rights of the Child
adopted by the United Nations General Assembly on
20 November 1989, and
Recalling the ILO Declaration on Fundamental
Principles and Rights at Work and its Follow-up,
adopted by the International Labour Conference at its
86th Session in 1998, and
Recalling that some of the worst forms of child labour
are covered by other international instruments, in
particular the Forced Labour Convention, 1930, and
the United Nations Supplementary Convention on the
Abolition of Slavery, the Slave Trade, and Institutions
and Practices Similar to Slavery, 1956, and
Having decided upon the adoption of certain
proposals with regard to child labour, which is the
fourth item on the agenda of the session, and
Having determined that these proposals shall take the
form of an international Convention;
adopts this seventeenth day of June of the year one
thousand nine hundred and ninety-nine the following
Convention, which may be cited as the Worst Forms
of Child Labour Convention, 1999.
Article 1
Each Member which ratifies this Convention shall take
immediate and effective measures to secure the
prohibition and elimination of the worst forms of child
labour as a matter of urgency.
Article 2
For the purposes of this Convention, the term child
shall apply to all persons under the age of 18.
Article 3
For the purposes of this Convention, the term the
worst forms of child labour comprises:
(a) all forms of slavery or practices similar to slavery,
such as the sale and trafficking of children, debt
bondage and serfdom and forced or compulsory
labour, including forced or compulsory recruitment of
children for use in armed conflict;
(b) the use, procuring or offering of a child for
prostitution, for the production of pornography or for
pornographic performances;
(c) the use, procuring or offering of a child for illicit
activities, in particular for the production and
trafficking of drugs as defined in the relevant
international treaties;
(d) work which, by its nature or the circumstances in
which it is carried out, is likely to harm the health,
safety or morals of children.
Article 4
1. The types of work referred to under Article 3(d)
shall be determined by national laws or regulations or
by the competent authority, after consultation with the
organizations of employers and workers concerned,
taking into consideration relevant international
standards, in particular Paragraphs 3 and 4 of the
Worst Forms of Child Labour Recommendation, 1999.
2. The competent authority, after consultation with the
organizations of employers and workers concerned,
shall identify where the types of work so determined
exist.
3. The list of the types of work determined under
paragraph 1 of this Article shall be periodically
examined and revised as necessary, in consultation
with the organizations of employers and workers
concerned.
Article 5
Each Member shall, after consultation with employers'
and workers' organizations, establish or designate
appropriate mechanisms to monitor the
implementation of the provisions giving effect to this
Convention.
Article 6
1. Each Member shall design and implement
programmes of action to eliminate as a priority the
worst forms of child labour.
2. Such programmes of action shall be designed and
implemented in consultation with relevant government
institutions and employers' and workers'
organizations, taking into consideration the views of
other concerned groups as appropriate.
Article 7
1. Each Member shall take all necessary measures to
ensure the effective implementation and enforcement
of the provisions giving effect to this Convention
including the provision and application of penal
sanctions or, as appropriate, other sanctions.
2. Each Member shall, taking into account the
importance of education in eliminating child labour,
take effective and time-bound measures to:
Duman / Labor I / Prof. Battad / Page 136
(a) prevent the engagement of children in the worst
forms of child labour;
(b) provide the necessary and appropriate direct
assistance for the removal of children from the worst
forms of child labour and for their rehabilitation and
social integration;
(c) ensure access to free basic education, and,
wherever possible and appropriate, vocational
training, for all children removed from the worst forms
of child labour;
(d) identify and reach out to children at special risk;
and
(e) take account of the special situation of girls.
3. Each Member shall designate the competent
authority responsible for the implementation of the
provisions giving effect to this Convention.
Article 8
Members shall take appropriate steps to assist one
another in giving effect to the provisions of this
Convention through enhanced international
cooperation and/or assistance including support for
social and economic development, poverty
eradication programmes and universal education.
Article 9
The formal ratifications of this Convention shall be
communicated to the Director-General of the
International Labour Office for registration.
Article 10
1. This Convention shall be binding only upon those
Members of the International Labour Organization
whose ratifications have been registered with the
Director-General of the International Labour Office.
2. It shall come into force 12 months after the date on
which the ratifications of two Members have been
registered with the Director-General.
3. Thereafter, this Convention shall come into force
for any Member 12 months after the date on which its
ratification has been registered.
Article 11
1. A Member which has ratified this Convention may
denounce it after the expiration of ten years from the
date on which the Convention first comes into force,
by an act communicated to the Director-General of
the International Labour Office for registration. Such
denunciation shall not take effect until one year after
the date on which it is registered.
2. Each Member which has ratified this Convention
and which does not, within the year following the
expiration of the period of ten years mentioned in the
preceding paragraph, exercise the right of
denunciation provided for in this Article, will be bound
for another period of ten years and, thereafter, may
denounce this Convention at the expiration of each
period of ten years under the terms provided for in
this Article.
Article 12
1. The Director-General of the International Labour
Office shall notify all Members of the International
Labour Organization of the registration of all
ratifications and acts of denunciation communicated
by the Members of the Organization.
2. When notifying the Members of the Organization of
the registration of the second ratification, the Director-
General shall draw the attention of the Members of
the Organization to the date upon which the
Convention shall come into force.
Article 13
The Director-General of the International Labour
Office shall communicate to the Secretary-General of
the United Nations, for registration in accordance with
article 102 of the Charter of the United Nations, full
particulars of all ratifications and acts of denunciation
registered by the Director-General in accordance with
the provisions of the preceding Articles.
Article 14
At such times as it may consider necessary, the
Governing Body of the International Labour Office
shall present to the General Conference a report on
the working of this Convention and shall examine the
desirability of placing on the agenda of the
Conference the question of its revision in whole or in
part.
Article 15
1. Should the Conference adopt a new Convention
revising this Convention in whole or in part, then,
unless the new Convention otherwise provides --
(a) the ratification by a Member of the new revising
Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the
provisions of Article 11 above, if and when the new
revising Convention shall have come into force;
(b) as from the date when the new revising
Convention comes into force, this Convention shall
cease to be open to ratification by the Members.
2. This Convention shall in any case remain in force in
its actual form and content for those Members which
have ratified it but have not ratified the revising
Convention.
Article 16
The English and French versions of the text of this
Convention are equally authoritative.
Duman / Labor I / Prof. Battad / Page 137
R190 Worst Forms of Child Labour
Recommendation, 1999
Recommendation concerning the prohibition and
immediate action for the elimination of the worst forms
of child labour
Place:Geneva
Session of the Conference:87
Date of adoption:17:06:1999
Subject classification: Elimination of Child Labour
Subject classification: Children and Young Persons
Subject: Elimination of Child Labour and
Protection of Children and Young Persons
The General Conference of the International Labour
Organization,
Having been convened at Geneva by the Governing
Body of the International Labour Office, and having
met in its Eighty-seventh Session on 1 June 1999,
and
Having adopted the Worst Forms of Child Labour
Convention, 1999, and
Having decided upon the adoption of certain
proposals with regard to child labour, which is the
fourth item on the agenda of the session, and
Having determined that these proposals shall take the
form of a Recommendation supplementing the Worst
Forms of Child Labour Convention, 1999;
adopts this seventeenth day of June of the year one
thousand nine hundred and ninety-nine the following
Recommendation, which may be cited as the Worst
Forms of Child Labour Recommendation, 1999.
1. The provisions of this Recommendation
supplement those of the Worst Forms of Child Labour
Convention, 1999 (hereafter referred to as "the
Convention"), and should be applied in conjunction
with them.
I. Programmes of action
2. The programmes of action referred to in Article 6 of
the Convention should be designed and implemented
as a matter of urgency, in consultation with relevant
government institutions and employers' and workers'
organizations, taking into consideration the views of
the children directly affected by the worst forms of
child labour, their families and, as appropriate, other
concerned groups committed to the aims of the
Convention and this Recommendation. Such
programmes should aim at, inter alia:
(a) identifying and denouncing the worst forms of child
labour;
(b) preventing the engagement of children in or
removing them from the worst forms of child labour,
protecting them from reprisals and providing for their
rehabilitation and social integration through measures
which address their educational, physical and
psychological needs;
(c) giving special attention to:
(i) younger children;
(ii) the girl child;
(iii) the problem of hidden work situations, in which
girls are at special risk;
(iv) other groups of children with special vulnerabilities
or needs;
(d) identifying, reaching out to and working with
communities where children are at special risk;
(e) informing, sensitizing and mobilizing public opinion
and concerned groups, including children and their
families.
II. Hazardous work
3. In determining the types of work referred to under
Article 3(d) of the Convention, and in identifying
where they exist, consideration should be given, inter
alia, to:
(a) work which exposes children to physical,
psychological or sexual abuse;
(b) work underground, under water, at dangerous
heights or in confined spaces;
(c) work with dangerous machinery, equipment and
tools, or which involves the manual handling or
transport of heavy loads;
(d) work in an unhealthy environment which may, for
example, expose children to hazardous substances,
agents or processes, or to temperatures, noise levels,
or vibrations damaging to their health;
(e) work under particularly difficult conditions such as
work for long hours or during the night or work where
the child is unreasonably confined to the premises of
the employer.
4. For the types of work referred to under Article 3(d)
of the Convention and Paragraph 3 above, national
laws or regulations or the competent authority could,
after consultation with the workers' and employers'
organizations concerned, authorize employment or
work as from the age of 16 on condition that the
health, safety and morals of the children concerned
are fully protected, and that the children have
received adequate specific instruction or vocational
training in the relevant branch of activity.
III. Implementation
5. (1) Detailed information and statistical data on the
nature and extent of child labour should be compiled
and kept up to date to serve as a basis for
determining priorities for national action for the
abolition of child labour, in particular for the prohibition
and elimination of its worst forms as a matter of
urgency.
Duman / Labor I / Prof. Battad / Page 138
(2) As far as possible, such information and statistical
data should include data disaggregated by sex, age
group, occupation, branch of economic activity, status
in employment, school attendance and geographical
location. The importance of an effective system of
birth registration, including the issuing of birth
certificates, should be taken into account.
(3) Relevant data concerning violations of national
provisions for the prohibition and elimination of the
worst forms of child labour should be compiled and
kept up to date.
6. The compilation and processing of the information
and data referred to in Paragraph 5 above should be
carried out with due regard for the right to privacy.
7. The information compiled under Paragraph 5 above
should be communicated to the International Labour
Office on a regular basis.
8. Members should establish or designate appropriate
national mechanisms to monitor the implementation of
national provisions for the prohibition and elimination
of the worst forms of child labour, after consultation
with employers' and workers' organizations.
9. Members should ensure that the competent
authorities which have responsibilities for
implementing national provisions for the prohibition
and elimination of the worst forms of child labour
cooperate with each other and coordinate their
activities.
10. National laws or regulations or the competent
authority should determine the persons to be held
responsible in the event of non-compliance with
national provisions for the prohibition and elimination
of the worst forms of child labour.
11. Members should, in so far as it is compatible with
national law, cooperate with international efforts
aimed at the prohibition and elimination of the worst
forms of child labour as a matter of urgency by:
(a) gathering and exchanging information concerning
criminal offences, including those involving
international networks;
(b) detecting and prosecuting those involved in the
sale and trafficking of children, or in the use,
procuring or offering of children for illicit activities, for
prostitution, for the production of pornography or for
pornographic performances;
(c) registering perpetrators of such offences.
12. Members should provide that the following worst
forms of child labour are criminal offences:
(a) all forms of slavery or practices similar to slavery,
such as the sale and trafficking of children, debt
bondage and serfdom and forced or compulsory
labour, including forced or compulsory recruitment of
children for use in armed conflict;
(b) the use, procuring or offering of a child for
prostitution, for the production of pornography or for
pornographic performances; and
(c) the use, procuring or offering of a child for illicit
activities, in particular for the production and
trafficking of drugs as defined in the relevant
international treaties, or for activities which involve the
unlawful carrying or use of firearms or other weapons.
13. Members should ensure that penalties including,
where appropriate, criminal penalties are applied for
violations of the national provisions for the prohibition
and elimination of any type of work referred to in
Article 3(d) of the Convention.
14. Members should also provide as a matter of
urgency for other criminal, civil or administrative
remedies, where appropriate, to ensure the effective
enforcement of national provisions for the prohibition
and elimination of the worst forms of child labour,
such as special supervision of enterprises which have
used the worst forms of child labour, and, in cases of
persistent violation, consideration of temporary or
permanent revoking of permits to operate.
15. Other measures aimed at the prohibition and
elimination of the worst forms of child labour might
include the following:
(a) informing, sensitizing and mobilizing the general
public, including national and local political leaders,
parliamentarians and the judiciary;
(b) involving and training employers' and workers'
organizations and civic organizations;
(c) providing appropriate training for the government
officials concerned, especially inspectors and law
enforcement officials, and for other relevant
professionals;
(d) providing for the prosecution in their own country
of the Member's nationals who commit offences under
its national provisions for the prohibition and
immediate elimination of the worst forms of child
labour even when these offences are committed in
another country;
(e) simplifying legal and administrative procedures
and ensuring that they are appropriate and prompt;
(f) encouraging the development of policies by
undertakings to promote the aims of the Convention;
(g) monitoring and giving publicity to best practices on
the elimination of child labour;
(h) giving publicity to legal or other provisions on child
labour in the different languages or dialects;
(i) establishing special complaints procedures and
making provisions to protect from discrimination and
reprisals those who legitimately expose violations of
the provisions of the Convention, as well as
establishing helplines or points of contact and
ombudspersons;
Duman / Labor I / Prof. Battad / Page 139
(j) adopting appropriate measures to improve the
educational infrastructure and the training of teachers
to meet the needs of boys and girls;
(k) as far as possible, taking into account in national
programmes of action:
(i) the need for job creation and vocational training for
the parents and adults in the families of children
working in the conditions covered by the Convention;
and
(ii) the need for sensitizing parents to the problem of
children working in such conditions.
16. Enhanced international cooperation and/or
assistance among Members for the prohibition and
effective elimination of the worst forms of child labour
should complement national efforts and may, as
appropriate, be developed and implemented in
consultation with employers' and workers'
organizations. Such international cooperation and/or
assistance should include:
(a) mobilizing resources for national or international
programmes;
(b) mutual legal assistance;
(c) technical assistance including the exchange of
information;
(d) support for social and economic development,
poverty eradication programmes and universal
education.
a. Minors under the Constitution, Art. II, Sec. 13
Section 13. The State recognizes the vital role of the
youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual, and social
well-being. It shall inculcate in the youth patriotism
and nationalism, and encourage their involvement in
public and civic affairs.
b. Coverage, RA 9231, Sec. 2, par. 3 on Sec. 12;
Book III, Rule XII, Sec. 1
(See Above)
c. Employment of Children, Art. 139; RA 7610, Sec.
12-16; DOLE Memo Circular No. 2, S 1998
Re; Hazardous and Non-Hazardous
Establishments
RA 7610
ARTICLE VIII
Working Children
Section 12. Employment of Children. - Children
below fifteen (15) years of age may be employed
except:
(1) When a child works directly under the
sole responsibility of his parents or legal
guardian and where only members of the
employer's family are employed: Provided,
however, That his employment neither
endangers his life, safety and health and
morals, nor impairs his normal development:
Provided, further, That the parent or legal
guardian shall provide the said minor child
with the prescribed primary and/or
secondary education; or
(2) When a child's employment or
participation in public & entertainment or
information through cinema, theater, radio or
television is essential: Provided, The
employment contract concluded by the
child's parent or guardian, with the express
agreement of the child concerned, if
possible, and the approval of the Department
of Labor and Employment: Provided, That
the following requirements in all instances
are strictly complied with:
(a) The employer shall ensure the protection,
health, safety and morals 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 skill
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 requirement.
The Department of Labor Employment shall
promulgate rules and regulations necessary for the
effective implementation of this Section.
Section 13. Non-formal Education for Working
Children. - The Department of Education, Culture and
Sports shall promulgate a course design under its
non-formal education program aimed at promoting the
intellectual, moral and vocational efficiency of working
children who have not undergone or finished
elementary or secondary education. Such course
design shall integrate the learning process deemed
most effective under given circumstances.
Section 14. Prohibition on the Employment of
Children in Certain Advertisements. - No person shall
employ child models in all commercials or
advertisements promoting alcoholic beverages,
intoxicating drinks, tobacco and its byproducts and
violence.
Section 15. Duty of Employer. - Every employer shall
comply with the duties provided for in Articles 108 and
109 of Presidential Decree No. 603.
Section 16. Penalties. - Any person who shall violate
any provision of this Article shall suffer the penalty of
Duman / Labor I / Prof. Battad / Page 140
a fine of not less than One thousand pesos (P1,000)
but not more than Ten thousand pesos (P10,000) or
imprisonment of not less than three (3) months but
not more than three (3) years, or both at the discretion
of the court; Provided, That, in case of repeated
violations of the provisions of this Article, the
offender's license to operate shall be revoked.
d. Hours of Work, RA 9231, Sec. 3 on Sec. 12-a
e. Prohibitions Against Worst Forms of Child Labor,
Sec. 3 on Sec. 12-d; Sec 5 on sec. 14
f. Discrimination, Art. 140
g. Jurisdiction, Sec. 9 on Sec. 16-A
Reading:
Del Rosario and Bonga, Issues and Gaps
Governing Child Labor, in Child Labor in the
Philippines, A Review of Selected Studies and
Policy Papers, pp. 178-183 (2000).
3. Househelpers/Caregivers
Reference: Arts. 141-152; Omnibus Rules, Book III,
Rule XIII
Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 141. Coverage. - This Chapter shall apply to all
persons rendering services in households for
compensation.
"Domestic or household service" shall mean service
in the employers home which is usually necessary or
desirable for the maintenance and enjoyment thereof
and includes ministering to the personal comfort and
convenience of the members of the employers
household, including services of family drivers.
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. - (a) 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).
ART. 144. Minimum cash wage. - The minimum wage
rates prescribed under this Chapter shall be the basic
cash wages which shall be paid to the househelpers
in addition to lodging, food and medical attendance.
ART. 145. Assignment to non-household work. - No
househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
agricultural or non-agricultural workers as prescribed
herein.
ART. 146. Opportunity for education. - If the
househelper is under the age of eighteen (18) years,
the employer shall give him or her an opportunity for
at least elementary education. The cost of education
shall be part of the househelpers compensation,
unless there is a stipulation to the contrary.
ART. 147. Treatment of househelpers. - The employer
shall treat the househelper in a just and humane
manner. In no case shall physical violence be used
upon the househelper.
ART. 148. Board, lodging, and medical attendance. -
The employer shall furnish the househelper, free of
charge, suitable and sanitary living quarters as well
as adequate food and medical attendance.
ART. 149. Indemnity for unjust termination of
services. - If the period of household service is fixed,
neither the employer nor the househelper may
terminate the contract before the expiration of the
term, except for a just cause. If the househelper is
unjustly dismissed, he or she shall be paid the
compensation already earned plus that for fifteen
(15) days by way of indemnity.
If the househelper leaves without justifiable reason,
he or she shall forfeit any unpaid salary due him or
her not exceeding fifteen (15) days.
Duman / Labor I / Prof. Battad / Page 141
ART. 150. Service of termination notice. - If the
duration of the household service is not determined
either in stipulation or by the nature of the service,
the employer or the househelper may give notice to
put an end to the relationship five (5) days before the
intended termination of the service.
(b) Forty-five pesos (P45.00) a month for those
employed in other chartered cities and first class
municipalities; and
(c) Thirty pesos (P30.00) a month for those in other
municipalities.

ART. 151. Employment certification. - Upon the

SECTION 6. Equivalent daily rate. The equivalent
severance of the household service relation, the
minimum daily wage rate of househelpers shall be
employer shall give the househelper a written
determined by dividing the applicable minimum
statement of the nature and duration of the service
monthly rate by thirty (30) days.
and his or her efficiency and conduct as househelper.

SECTION 7. Payment by results. Where the method

ART. 152. Employment record. - The employer may
of payment of wages agreed upon by the employer
keep such records as he may deem necessary to
and the househelper is by piece or output basis, the
reflect the actual terms and conditions of
piece or output rates shall be such as will assure the
employment of his househelper, which the latter
househelper of the minimum monthly or the
shall authenticate by signature or thumbmark upon
equivalent daily rate as provided in this issuance.
request of the employer.

SECTION 8. Minimum cash wage. The minimum

wage rates prescribed under this Rule shall be basic
cash wages which shall be paid to the househelpers
in addition to lodging, food and medical attendance.

SECTION 9. Time and manner of payment. Wages

shall be paid directly to the househelper to whom
they are due at least once a month. No deductions
RULE XIII
therefrom shall be made by the employer unless
Employment of Househelpers
authorized by the househelper himself or by existing
laws.
SECTION 1. General statement on coverage. (a)
The provisions of this Rule shall apply to all
SECTION 10. Assignment to non-household work.
househelpers whether employed on full or part-time
No househelper shall be assigned to work in a
basis.
commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
(b) The term "househelper" as used herein is agricultural and non-agricultural workers.
synonymous to the term "domestic servant" and
shall refer to any person, whether male or female,
SECTION 11. Opportunity for education. If the
who renders services in and about the employer's
househelper is under the age of eighteen (18) years,
home and which services are usually necessary or
the employer shall give him or her an opportunity for
desirable for the maintenance and enjoyment
at least elementary education. The cost of such
thereof, and ministers exclusively to the personal
education shall be part of the househelper's
comfort and enjoyment of the employer's family.
compensation, unless there is a stipulation to the
contrary.
SECTION 2. Method of payment not determinant.
The provisions of this Rule shall apply irrespective of
SECTION 12. Treatment of househelpers. The
the method of payment of wages agreed upon by the
employer shall treat the househelper in a just and
employer and househelper, whether it be hourly,
humane manner. In no case shall physical violence
daily, weekly, or monthly, or by piece or output
be inflicted upon the househelper.
basis.

SECTION 13. Board, lodging and medical attendance.

SECTION 3. Children of househelpers. The children
The employer shall furnish the househelper free
and relatives of a househelper who live under the
suitable and sanitary living quarters as well as
employer's roof and who share the accommodations
adequate food and medical attendance.
provided for the househelpers by the employer shall
not be deemed as househelpers if they are not
otherwise engaged as such and are not required to SECTION 14. Indemnity for unjust termination of
perform any substantial household work. service. If the period for household service is fixed,
neither the employer nor the househelper may
terminate the contract before the expiration of the
SECTION 4. Employment contract. The initial
term, except for a just cause. If the househelper is
contract for household service shall not last for more
unjustly dismissed, he or she shall be paid the
than two (2) years. However, such contract may be
compensation already earned plus that for fifteen
renewed from year to year.
(15) days by way of indemnity.

SECTION 5. Minimum monthly wage. The minimum

If the househelper leaves without justifiable reason,
compensation of househelpers shall not be less than
he or she shall forfeit any unpaid salary due him or
the following rates:
her not exceeding fifteen (15) days.

(a) Sixty pesos (P60.00) a month for those employed

SECTION 15. Employment certification. Upon the
in the cities of Manila, Quezon, Pasay and Caloocan,
severance of the household service relationship, the
and in the municipalities of Makati, San Juan,
househelper may demand from the employer a
Mandaluyong, Muntinlupa, Navotas, Malabon,
written statement of the nature and duration of the
Paraaque, Las Pias, Pasig and Marikina, in the
service and his or her efficiency and conduct as
Province of Rizal.
househelper.
Duman / Labor I / Prof. Battad / Page 142
SECTION 16. Funeral expenses. In case of death of
the househelper, the employer shall bear the funeral
expenses commensurate to the standards of life of
the deceased.

SECTION 17. Disposition of the househelper's body.

Unless so desired by the househelper or by his or
her guardian with court approval, the transfer or use
of the body of the deceased househelper for
purposes other than burial is prohibited. When so
authorized by the househelper, the transfer, use and
disposition of the body shall be in accordance with
the provisions of Republic Act No. 349.

SECTION 18. Employment records. The employer

may keep such records as he may deem necessary to
reflect the actual terms and conditions of
employment of his househelper which the latter shall
authenticate by signature or thumbmark upon
request of the employer.

SECTION 19. Prohibited reduction of pay. When the

compensation of the househelper before the
promulgation of these regulations is higher than that
prescribed in the Code and in this issuance, the same
shall not be reduced or diminished by the employer
on or after said date.
SECTION 20. Relation to other laws and agreements.
Nothing in this Rule shall deprive a househelper of
the right to seek higher wages, shorter working hours
and better working conditions than those prescribed
herein, nor justify an employer in reducing any
benefit or privilege granted to the househelper under
existing laws, agreements or voluntary employer
practices with terms more favorable to the
househelpers than those prescribed in this Rule.
a. Definition, Rule XIII, Sec. 1 (b)
e. Conditions of Employment, Arts. 121-152; Civil
Code, Arts. 1689-1699
ART. 151. Employment certification. - Upon the
severance of the household service relation, the
employer shall give the househelper a written
statement of the nature and duration of the service
and his or her efficiency and conduct as househelper.
ART. 152. Employment record. - The employer may
keep such records as he may deem necessary to
reflect the actual terms and conditions of
employment of his househelper, which the latter
shall authenticate by signature or thumbmark upon
request of the employer.

(b) The term "househelper" as used herein is

CIVIL CODE
synonymous to the term "domestic servant" and
Art. 1689. Household service shall always be
shall refer to any person, whether male or female,
reasonably compensated. Any stipulation that
who renders services in and about the employer's
household service is without compensation shall be
home and which services are usually necessary or
void. Such compensation shall be in addition to the
desirable for the maintenance and enjoyment
house helper's lodging, food, and medical
thereof, and ministers exclusively to the personal
attendance.
comfort and enjoyment of the employer's family.

b. Coverage, Art. 141
ART. 141. Coverage. - This Chapter shall apply to all
persons rendering services in households for
compensation.
"Domestic or household service" shall mean service
in the employers home which is usually necessary or
desirable for the maintenance and enjoyment thereof
and includes ministering to the personal comfort and
convenience of the members of the employers
household, including services of family drivers.
c. Non-Household Work, Art. 145
ART. 145. Assignment to non-household work. - No
househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
agricultural or non-agricultural workers as prescribed
herein.
Art. 1690. The head of the family shall furnish, free of
charge, to the house helper, suitable and sanitary
quarters as well as adequate food and medical
attendance.
Art. 1691. If the house helper is under the age of
eighteen years, the head of the family shall give an
opportunity to the house helper for at least
elementary education. The cost of such education
shall be a part of the house helper's compensation,
unless there is a stipulation to the contrary.
Art. 1692. No contract for household service shall last
for more than two years. However, such contract
may be renewed from year to year.
Art. 1693. The house helper's clothes shall be subject
to stipulation. However, any contract for household
service shall be void if thereby the house helper
cannot afford to acquire suitable clothing.

Art. 1694. The head of the family shall treat the

Apex Mining Co. NLRC, 196 SCRA 251 (1991)
house helper in a just and humane manner. In no
case shall physical violence be used upon the house
helper.

Duman / Labor I / Prof. Battad / Page 143

Art. 1695. House helper shall not be required to work
more than ten hours a day. Every house helper shall
be allowed four days' vacation each month, with pay.
Art. 1696. In case of death of the house helper, the
head of the family shall bear the funeral expenses if
the house helper has no relatives in the place where
the head of the family lives, with sufficient means
therefor.
Art. 1697. If the period for household service is fixed
neither the head of the family nor the house helper
may terminate the contract before the expiration of
the term, except for a just cause. If the house helper
is unjustly dismissed, he shall be paid the
compensation already earned plus that for fifteen
days by way of indemnity. If the house helper leaves
without justifiable reason, he shall forfeit any salary
due him and unpaid, for not exceeding fifteen days.
Art. 1698. If the duration of the household service is
not determined either by stipulation or by the nature
of the service, the head of the family or the house
helper may give notice to put an end to the service
relation, according to the following rules:
(1) If the compensation is paid by the day,
notice may be given on any day that the
service shall end at the close of the
following day;
(2) If the compensation is paid by the week,
notice may be given, at the latest on the
first business day of the week, that the
service shall be terminated at the end of the
seventh day from the beginning of the
week;
(3) If the compensation is paid by the
month, notice may be given, at the latest,
on the fifth day of the month, that the
service shall cease at the end of the month.
Art. 1699. Upon the extinguishment of the service
relation, the house helper may demand from the
head of the family a written statement on the nature
and duration of the service and the efficiency and
conduct of the house helper.
3. Homeworkers
a. Coverage and Regulation, Arts. 153-155; DO
5, DOLE, 4 Feb. 1992, now Book III, Rule XIV
ART. 153. Regulation of industrial homeworkers. - The
employment of industrial homeworkers and field
personnel shall be regulated by the government
through the appropriate regulations issued by the
Secretary of Labor and Employment to ensure the
general welfare and protection of homeworkers and
field personnel and the industries employing them.
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:
(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 be
disposed of or distributed in
accordance with his directions; or
(2) Sells any goods, articles or materials to be
processed or fabricated in or about a home and then
rebuys them after such processing or fabrication,
either by himself or through some other person.
RULE XIV
Employment of Homeworkers
SECTION 1. General statement on coverage. This
Rule shall apply to any homeworker who performs in
or about his home any processing of goods or
materials, in whole or in part, which have been
furnished directly or indirectly by an employer and
thereafter to be returned to the latter.
SECTION 2. Definitions. As used in this Rule, the
following terms shall have the meanings indicated
hereunder:
(a) "Home" means any room, house, apartment, or
other premises used regularly, in whole or in part, as
a dwelling place, except those situated within the
premises or compound of an employer, contractor,
and the work performed therein is under the active
or personal supervision by, or for, the latter.
(b) "Employer" means any natural or artificial person
who, for his own account or benefit, or on behalf of
any person residing outside the Philippines, directly
or indirectly, or through any employee, agent,
contractor, sub-contractor; or any other person:
(1) Delivers or causes to be delivered any goods or
articles to be processed in or about a home and
thereafter to be returned or to be disposed of or
distributed in accordance with his direction; or
(2) Sells any goods or articles for the purpose of
having such goods or articles processed in or about a
home and then repurchases them himself or through
another after such processing.
(c) "Contractor" or "sub-contractor" means any
person who, for the account or benefit of an
employer, delivers or caused to be delivered to a
homeworker goods or articles to be processed in or
about his home and thereafter to be returned,
disposed of or distributed in accordance with the
direction of the employer.
(d) "Processing" means manufacturing, fabricating,
finishing, repairing, altering, packing, wrapping or
handling any material.
SECTION 3. Payment for work. (a) Immediately
upon receipt of the finished goods or articles, the
Duman / Labor I / Prof. Battad / Page 144
employer shall pay the homeworker or the contractor
or sub-contractor, as the case may be, for the work
performed; Provided, However, that where payment
is made to a contractor or sub-contractor, the
homeworker shall be paid within the week after the
contractor or sub-contractor has collected the goods
or articles from the homeworkers.
(b) The Secretary of Labor and Employment shall
from time to time establish the standard minimum
piece or output rate in appropriate orders for the
particular work or processing to be performed by the
homeworkers.
SECTION 4. Deductions. No employee, contractor,
or sub-contractor shall make any deduction from the
homeworker's earnings for the value of materials
which have been lost, destroyed, soiled or otherwise
damaged unless the following conditions are met:
(a) The homeworker concerned is clearly shown to be
responsible for the loss or damage;
(b) The employee is given reasonable opportunity to
show cause why deductions should not be made;
(c) The amount of such deduction is fair and
reasonable and shall not exceed the actual loss or
damages; and
(d) The deduction is made at such rate that the
amount deducted does not exceed 20% of the
homeworker's earnings in a week.
SECTION 5. Conditions for payment of work. (a)
The employer may require the homeworker to re-do
work which has been improperly executed without
having to pay the stipulated rate more than once.
(b) An employer, contractor, or sub-contractor need
not pay the homeworker for any work which has
been done on goods and articles which have been
returned for reasons attributable to the fault of the
homeworker.
SECTION 6. Disagreement between homeworkers and
employer. In cases of disagreement between the
homeworker and the employer, contractor or sub-
contractor on matters falling under Section 4 (a), 5
and 6 of this Rule, either party may refer the case to
the Regional Office having jurisdiction over the
homeworker. The Regional Office shall decide the
case within ten (10) working days from receipt of the
case. Its decision shall be final and unappealable.
SECTION 7. Liability of employer and contractor.
Whenever an employer shall contract with another
for the performance of the employer's work, it shall
be the duty of such employer to provide in such
contract that the employees or homeworkers of the
contractor and the latter's sub-contractor shall be
paid in accordance with the provisions of this Rule. In
the event that such contractor or sub-contractor fails
to pay the wages or earnings of his employees or
homeworkers as specified in this Rule, such employer
shall be jointly and severally liable with the
contractor or sub-contractor to the workers of the
latter, to the extent that such work is performed
under such contract, in the same manner as if the
employees or homeworkers were directly engaged by
the employer.
b. Definition, DO 5, Sec. 2, DO 5
c. Registration, Secs. 4-6
d. Conditions of Employment/Deductions, Secs.
6-9
f. Joint and Several Liability of
Employer/Contractor, Sec. 11
g. Prohibitions, Sec. 13
h. Enforcement, Sec. 10
NOTES:
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K. Mental, Dental and Occupational Safety
Magsalin v. National Organization of Working
Men, 403 SCRA 199 (2003)
Reference: Art. 156-165; Omnibus Rules, Hacienda Fatima v. National Federation of
Book IV, Rule I, Secs. 1-10; Rule II, Secs. 1-!0 Sugarcane Workers Food and General Trade, 396
SCRA 518 (2003)
1. Coverage, Rule I, Sec. 1 Pentagon International Shipping, Inc. v.
Adelantar, 235 SCRA 342 (2004)
2. First Aid Treatment, Art. 156
Lopez v. Metropolitan Waterworks and Sewerage
3. Emergency Medical and Dental System, 462 SCRA 428 (2005)
Services
3) Extended Period
a. When Required, Art. 157
Andon Electric co., Inc. v. NLRC, 308 SCRA 340
b. When Not Required, Art. 158 (1999)
4. Employer assistance, Art. 161 4) Repeated Renewal of Contract
5. Occupational Safety and Health
Standards, Training of Maraguinot v. NLRC, 284 SCRA 539 (1998)
Supervisor/Technician
Universal Plastic Corp. v. Catapang, 473 SCRA
a. When Required, Rule II, Secs. 5 (a) (d) 189 (2005)

b. When Not Required, Rule II, Sec. 5 (e)

b. Project Employee, art. 280, 1st par.
6. Enforcement/DOLE Obligations,
Arts. 162-165 1) Definition

Note: Arts. 166-208: repealed by SSS Law Imbuido v. NLRC, 329 SCRA 357 (2000)
of 1997 (RA 1161, as amended); Re: Art. 209, see Association of Trade Union v. Comm. Abella, 323
National Health Insurance act of 1995 (RA 7875); SCRA 50 (2005)
Book IV, Rule II, Sec. 8
2) Project Employees
L. Employee Classification

1. Coverage, Art. 278 Sandoval Shipyards, Inc. v. NLRC, 136 SCRA 674
(1985)
2. Employer Recognition Villa v. NLRC, 284 SCRA 105 (1998)
Chua v. Court of Appeals, 440 SCRA 121 (2004)
Philippine Federation of Credit Cooperatives, Inc.
v. NLRC, 300 SCRA 72 (1998) 3) Workpool Employees

Pangilinan v. General Milling corp., 434 SCRA 159 Aguilar Corp. v. NLRC, 269 SCRA 596 (1997)
(2004)
Maraguinot v. NLRC, supra
3. Employer Determination/Designation Casual, Art. 280, 2nd par.; Omnibus rules,
Book VI, Rule 1, Sec. 5 (b)
De Leon v. NLRC, 176 SCRA 615 (1989)
1) Nature of Work
Violeta v. NLRC, 280 SCRA 520 (1997)
San Miguel Corporation v. NLRC, 297 SCRA 277
(1998) A.M. Oreta and Co. Inc. v. NLRC, 176 SCRA 218
(1989)
4. Management Prerogative 2) One Year Service

Manila Electric Co. v. NLRC, 263 SCRA 531
(1996)
PAL, Inc. v. Pascua, 409 SCRA 195 (2003)
Coca-cola Bottlers Phil., Inc. Sales Force Union-
PTGWO-BALAIS v. Coca-cola Bottlers Phil., Inc.,
GR No. 155651, 464 SCRA 507 (2005)
c.
5. Kinds of Employee
a. Regular Employees, art. 280, 1 par.; 280,
st
2nd par.; 281, last sentence; 75(d); Omnibus rules,
Book VI, Rule 1, Secs. 5(a), (b) and 6.
Kimberly v. Drilon, 185 SCRA 190 (1990)
Integrated Contractor and Plumbing Works, Inc.
v. Court of Appeals, 464 SCRA 544 (2005)
San Miguel Corp. v. Abella, supra
Fixed-Term
Brent School v. Zamora, 181 SCRA 702 (1990)
Palomares v. NLRC, 277 SCRA 439 (1997)
Philips Semiconductor etc. v. Fadriquela, 422
SCRA 408 (2004)

1) Type d. Seasonal

Pangilinan v. General Milling Corporation., 434 Phil. Tobacco Flue-curing & Redrying Corp. v.
SCRA 159 (2004) NLRC, 300 SCRA 37 (1998)
Hacienda Bino v. Cuenca, 456 SCRA 300 (2005)
2) Nature of Work
e. Probationary
Perpetual Help Credit Corp., Inc. v. Faburada, et
1) Definition
al., 366 SCRA 693 ( 2001)
Duman / Labor I / Prof. Battad / Page 147
 Perpetual Help Credit Corp., Inc. v. Faburada,
Philippine Federation of Credit Cooperatives, Inc. supra
v. NLRC, supra
Cebu Marine Beach Resort v. NLRC, 414 SCRA
e. Burden of Proof
173 (2003) Azcor Manufacturing v. NLRC, 303 SCRA 26
(1999)
2) Employer Right to Set Period/Obligation
Chavez v. NLRC, supra
Orient Express Placement Philippines v. NLRC,
f. Measure of Penalty
273 SCRA 256 1997)
Farrol v. Court of Appeals, 435 SCRA 543 (2000)
3) Duration/Exception
Valiao v. Court of Appeals, 435 SCRA 543 (2004)

A Prime Security Services, Inv. V. NLRC, 322 Etcuban v. Sulpicio Lines, Inc. 448 SCRA 516
SCRA 283 (2000) (2005)
Mitsubishi Motors v. NLRC, 226 SCRA 417 (1993)
g. Factors
4) Criteria Regularization
Associated Labor Union v. NLRC, 302 SCRA 708
Alcira v. NLRC, 431 SCRA 508 (2004) (1999)
Philippine Long distance Telephone C. Inc. v.
5) Extension of Contract NLRC, 303 SCRA 9 (1999)

3. Termination of Employment by Employee

Mariwasa Manufacturing, Inc. v. Leogardo, 169
SCRA 465 (1989) a. Resignation

6) Absorbed Employees Cheniver Deco Print v. NLRC, 325 SCRA 758

(2000)
Cebu Stevedoring Co. Inc. v. Regional Director, China Banking Corp. v. Borromeo, supra
168 SCRA 315 (1988)
Willi Hahn Enterprises v. Maghuyo, 447 SCRA
7) Rule on Private School Teachers 349 (2004)
BMG Records (Phils.), Inc. et al. v. Aida C.
Escorpizo v. Univ. of Baguio, 306 SCRA 497 Aparecio, et al., GR 153290, Sept. 5, 2007
(1999)
1) Just Causes, Art. 285 (b)
La Consolacion College v. NLRC, 366 SCRA 226
(2001) 2) Without Just Cause Requisites, Art. 285 (a);
Chiang Kai Sheck College v. Court of Appeals, Const. Art. III, Sec. 18 (2)
437 SCRA 171 (2004)
Pascua v. NLRC, 287 SCRA 554 (1998)
I. Termination of Employment Azcor v. NLRC, supra
Phil. Wireless Inc. v. NLRC, 310 SCRA 653 (1999)
1. Coverage, Art. 278; Book VI, Rule 1, Sec. 1
A Prime Security Services, Inc. v. NLRC, supra
2. Security of Tenure, Art 279; 277 (b)
b. Performance of Military or Civic duty, Art.
a. Nature/Rationale 286, Book VI, Rule I, Sec. 12

Llosa Tan v. Silahis Internatioinal Hotel, 181

4. Termination of Employment by Employer
SCRA 738 (1990) a. Basis of Right and Requirements, Arts. 282-284;
Sonza v. ABS-CBN Broadcasting Corp., 431 SCRA 277 (b)
381 (2004)
Metro Eye Security, Inc. v. Julie V. Solsona, GR 1) Basis
No. 167637, Sept. 28, 2007
PLDT v. Tolentino, 438 SCRA 555 (2004)
b. Coverage
2) Substantive and Procedural Due Process
Labajo v. Alejandro, 165 SCRA 747 (1988)
Skihworld Management and marketing Philippine National Bank v. Cabanag, 460 SCRA
514 (2005)
Corporation v. NLRC, 186 SCRA 465 (1990)
Interorient Maritime Enterprises Inc. v. NLRC,
235 SCRA 268 (1994)

c. Management Prerogative

Philippine American Life & General Insurance Co.

v. Gramaze, 442 SCRA 274 (2004)

d. Requisites for Lawful Dismissal

Duman / Labor I / Prof. Battad / Page 148

b. Just Causes Substantive Due Process
Ramoran v. Jardine CMG, Inc. 326 SCRA 208
(2000)
1) Serious Misconduct/Willful Disobedience
(Insubordination) g) Habitual Infractions
Valiao v. Court of Appeals, supra
Villamor Golf Club v. Phil, 472 SCRA 36 (2005) Gustilo v. Wyeth Phil., Inc., 440 SCRA 67 (2004)
Coca-Cola Bottlers, Phil., Inc. v. Kapisanan ng
Malayang Manggagawa sa Coca-Cola, 452 SCRA h) Immorality
480 (2005)
R Transport Corp. v. Ejaneira, 428 SCRA 725 Santos v. NLRC, 287 SCRA 117 (1998)
(2004)
Micro Sales Operation Network v. NLRC, 472 i) Conviction of Crime
SCRA 328 (2005)
Sampaguita Garments Corp. v. NLRC, 233 SCRA
2) Gross and Habitual Neglect of Duties 260 1994)

j) Qualification Requirements
Cebu Filveneer Corporation v. NLRC, 286 SCRA
556 (1998)
Lanzaderas v. Amethyst Security & General
Reyes v. Maxims Tea House, 398 SCRA 288
Services, Inc., supra
(2003)
Chua v. NLRC, 453 SCRA 244 (2005) 7) Constructive Dismissal

3) Fraud or Willful Breach of Trust

Philippine American Life v. Gramaje, 442 SCRA
Santos v. San Miguel Corp., 399 SCRA 172 274 (2003)
(2003) Dinglasan v. Atienza, 433 SCRA 263 (2004)
Dela Cruz , NLRC, 416 SCRA 226 (2003) Dusit Hotel Nikko v. National Union in Hotel,
Phil. National Construction Corp. v. Matias, 395 Restaurant and Allied Industires, 466 SCRA 374
SCRA 720 (2003) (2005)
Angelina Francisco v. NLRC, et al., supra
4) Commission of Crime, Art. 282 (d)
8) Transfer
Sampaguita Garments Corporation v. NLRC, 233
SCRA 260 (1994) OSS Security and Allied Services Inc. v. NLRC,
325 SCRA 157 (2000)
5) Analogous, Art. 282 (e) Lanzaderas v. Amethyst Security and General
Services, Inc., supra
Cathedral School of Technology v. NLRC, 214 Mendoza v, Rural Bank, etc., 433 SCRA 756
(2004)
SCRA 551, 559 (1992)
9) Promotion
6) Others Just Causes Claimed by Employer

a) Abandonment Phil. Telegraph & Telephone Corp. v. Court of

Appeals, 412 SCRA 263 (2003)
Nueva Ecija Electric Cooperative v. NLRC, 461
SCRA169 (2005) 10) Preventive Suspension
Chavez v. NLRC, supra
Floren Hotel v. NLRC, 456 SCRA 128 (2005) Philippine Airlines, Inc. v. NLRC, 292 SCRA 40
(1998)
b) Courtesy Resignation
11) Residency Training
Batongbacal v. Associated Bank, 168 SCRA 600
(1988) Felix v. Buenaseda, 240 SCRA 139 (1995)
c) Change of Ownership
c. Substantive Requirements Business
Related Causes, Art. 283
Manlimos v. NLRC, 242 SCRA 145 (1995)
1) Basis
d) Habitual Absenteeism
Edge Apparel Inc. v. NLRC, 286 SCRA 302 (1998)
Union Motor Corp. v. NLRC, 445 SCRA 683 (2004)
2) Business Related or Authorized Causes
e) Fixed-Term Employment
a) Installation of Labor Saving Devices, Art. 283
Magsalin v. National Organization of Working
Men, supra Complex Electronics Employees Assn. v. NLRC,
310 SCRA 403 (1999)
f) Past offenses
b) Retrenchment to Prevent Losses, Art. 283
La Carlota Planters Assn. v. NLRC, 298 SCRA 252
(1998)

Duman / Labor I / Prof. Battad / Page 149

 Asian Alcohol Corp. v. NLRC, 305 SCRA 415
Equitable PCIBank v. Caguioa, 466 SCRA 658
(1999)
(2005)
NDC-Guthrie Plantations, Inc. v. NLRC, 362 SCRA
416.(2001) 7) Degree of Proof/Substantial Evidence

Composite Enterprises, Inc. v. Emilio M.

Caparoso, et al., GR No. 159919, Aug. 8, 2007 Philtread Tire & Tubber Corp. v. Vicente, 441
SCRA 574 (2004)
c) Redundancy, Art. 283 Etcuban v. Sulpicio Lines, Inc., supra

Asufrin v. San Miguel Corp., 425 SCRA 270 8) Prescription

(2004)
Golden Tread Knitting Industries, Inc. v. NLRC, Salvador v. Phil. Mining service Corp., 395 SCRA
304 SCRA 568 729 (2003)
Lopez Sugar Corp. v. Franco, 458 SCRA 515
(2005) 9) Dismissal of Case, Purely on Technical Ground

d) Closure of Business, Art. 283

Quintano v. NLRC, 446 SCRA 195 (2004)

Mac Adams Metal Engineering Workers Union- 10) Criminal Cases

Independent v. Mac Adams Metal Engineering,
414 SCRA 411 (2003)
Quiambao v. NLRC, 254 SCRA 211 (1996)
SSS v. Hon. Chaves, 440 SCRA 269 (2004)
ME-SHURN Corporation v. ME-SHURN Workers 5. Reliefs/Remedies in Illegal Dismissal, Art.
279; 223
Union-FSM, 448 SCRA 41 (2005)
a. In General; Twin Remedies
e) Temporary Closure, Art. 286

Valdez v. NLRC, 286 SCRA 87 (1998) Nueva Ecija Electric Cooperative v. NLRC, supra
Mt. Carmel College v. Jocelyn Resuena, et al., GR
3) Disease, Art 284 No. 173076, October 10, 2007
Lorenzo Ma. D.G. Aguilar v. Burger Machine
Vicente Sy v. Court of Appeals, supra Holdings Corp., et al., GR 172062, Feb. 21, 2007

d. Procedural Requirements, Art. 277 (b); Book 1) Reinstatement

VI, Rule I, Secs. 1-3 Omnibus Rules
1) In General/Liability for Non-Compliance with
Procedural Requirements
Serrano v. NLRC, 323 SCRA 445 (2000)
Santos v. San Miguel Corp., supra
a) Definition
PNOC-EDC, et al. v. Abella, 448 SCRA 549 (2005)
Pheschem Industrial Corp. v. Moldez, 458 SCRA
339 (2005)
b) Effect of Failure to Ask Relief

Agabon v. NLRC, supra

Pheschem Industrial Corp. v. Moldez, supra
2) Right to Counsel
c) Exceptions
Salaw v. NLRC, 202 SCRA 7, 12-15 (1991)
i) Closure of Business
3) Notice ii) Economic Business Conditions

Agabon v. NLRC, supra Union of Supervisors (RB) NATU, etc. v. Sec. of

Caingat v. NLRC, 453 SCRA 142 (2005) Labor, 128 SCRA 442 (1984)

4) Hearing iii) Employees Unsuitability

a) Hearing Divine Word High School v. NLRC, 143 SCRA 346

(1986)
Permex, Inc. v. NLRC, 323 SCRA 121 (2000)
Arboleda v. NLRC, 303 SCRA 39 (1999) iv) Employees Retirement/Overage

b) Use of Position Paper Espejo v. NLRC, 255 SCRA 430 (1996)

Shoppes Manila, Inc. v. NLRC, 419 SCRA 354 v) Antipathy and Antagonism
(2004) Strained Relations

5) Decision/Award Const., Art. VIII, Sec. 14 Acesite Corp. v. NLRC, 449 SCRA 360 (2005)
BPI Employees Union v. BPI, 454 SCRA 357
Pepsi-Cola Products Phil., Inc. v. Court of
(2005)
Appeals, 443 SCRA 580 (2004) Sagum v. Court of Appeals, 459 SCRA 223 (2005)
6) Burden of Proof vi) Not Feasible
Duman / Labor I / Prof. Battad / Page 150
 1) When Allowed
Bustamante v. NLRC, 265 SCRA 1 (1996)

c) Offer to Reinstate
Philippine Long Distance Telephone Co. v. NLRC,
164 SCRA 671 (1988)
Pinero v. NLRC, 437 SCRA 112 (2004)
Ranara v. NLRC, 212 SCRA 631 (1992)
2) When Not Allowed
2) Backwages
Phil. Construction Corp. v. NLRC, 170 SCRA 207
a) Effect of Failure to Claim (1989)
Chua v. NLRC, 218 SCRA 545 (1993)
De La Cruz v. NLRC, 299 SCRA 1 (1998)
e. Indemnity
b) Effect of Failure to Order
Arms Taxi v. NLRC, supra
Aurora Land etc. v. NLRC, 212 SCRA 48 (1997)
Serrano v. NLRC, supra
St. Michaels Inst. v. Santos, 371 SCRA 383
(2001) f. Liability of Corporate Officers

b) Computation
Acesite Corp. v. NLRC, supra
Mercury Drug Co. Inc. v. CIR, 56 SCRA 694
(1974) J. Retirement, Art. 287; Book VI, Rule II,
Omnibus Rules; RA No. 7641; RA No. 8558 (1998) ;
Bustamante v. NLRC, supra Labor Advisory on Retirement Pay (Oct. 1999)
Torres v. NLRC, 330 SCRA 311 (2000)
Kay Products, Inc. v. CA464 SCRA 544 (2005) 1. Retirement
Standard Electric Manufacturing Corp. v.
Standard Electric Employees Union, 468 SCRA a. Types of Retirement Plan
316 (2005)
BPI Employees Union v. BPI, supra PAL v. Airline Pilots Association of the Phil., 373
SCRA 302 (2002)
c) Fringe Benefit Naguit v. NLRC, 408 SCRA 617 (2003)

Aurora Land etc. v. NLRC, supra

Sta. Catalina College v. NLRC, 416 SCRA 233
(2003)
b. Damages Gerlach v. Reuters Ltd., Phil. 448 SCRA 535
(2005)
Collegio de San Juan de Letran-Calamba v. Villas,
399 SCRA 550 (2003) 1) Basis
Tolosa v. NLRC, 401 SCRA 391 (2003)
Maguiling v. Phil. Tuberculosis Society, Inc. 450 Gamogamo v. PNOC shipping and Transport
SCRA 465 (2005) Corp., 381 SCRA 742 (2002)
Acesite Corp v. NLRC, supra 2) Interpretation
Sagum v. Court of Appeals, 459 SCRA 223 (2005)
Lopez v. National Steel Corp., 423 SCRA 109
Central Luzon Conference v. CA, 466 SCRA 711
(2004)
(04)
Solomon v. Association of International Shipping
c. Separation Pay Lines, Inc., 457 SCRA 254 (2005)

1) When As Alternative 4) Eligibility

Coca-Cola Bottlers Phils. Inc. v. Vital, 438 SCRA Brion v. South Phil. Union Mission of the Seventh
278 (2004) Day Adventist Church, 307 SCRA 497 (1999)
National Federation of Labor v. Court of Appeals,
440 SCRA 604 (2004) REMINDERS:
Etcuban Jr. v. Sulpicio Lines, Inc., supra
1. Voluntary recitation will be graded generously.
Composite enterprises, Inc. v. Emilio M. The professor however reserves the right to call
Caparoso, et al., supra on students for recitation.

2) Computation/Rationale 2. The 20% rule on absences will be strictly

observed. Three times of tardiness will be
Business Day Information Systems and Services, considered absent. All those who come between
15 to 30 minutes after the class will be marked
Inc. v. NLRC, 221 SCRA 9 (1993)
late; after 30 mins, absent.
Millares v. NLRC, 305 SCRA 500 (1999)
3. No make-up mid-term examination will be given.
3) Effect of Receipt

Arino v. NLRC, 290 SCRA 489 (1998) REQUIREMENT:

c. Financial Assistance Attendance/Recitation/Assigned Work -

30%
Duman / Labor I / Prof. Battad / Page 151
Mid-Term Examination -
30%
Final Examination -
30%

Duman / Labor I / Prof. Battad / Page 152