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LABOR STANDARDS Art. 4.

Construction in favor of labor


I. GENERAL PRINCIPLES • When the interest of labor and capital collide, the
heavier influence of capital should be
Labor Code – principal labor law of the country. But counterbalanced with the sympathy and
even now, there are Labor Laws that are not found in compassion of law for the less privileged
the Labor Code. workers. But protection to labor does not mean
oppression or destruction of capital. The
Social Legislation – the promotion of the welfare of employer’s act will be sustained when it is in the
all the people, the adoption by the government of right. [Eastern Shipping Lines v. POEA, 166
measures calculated to insure economic stability of SCRA 523 (1998)]
all the component elements of society thru the
maintenance of proper economic and social • Court decisions adopt a liberal approach that
equilibrium in the interrelations of the members of the favors the exercise of labor rights. The mandate
community, constitutionally, thru the adoption of is simply to resolve doubt in favor of labor. If
measures legally justifiable, or extra-constitutionally, there is no doubt in implementing and interpreting
thru the exercise of powers underlying the existence the law, labor will enjoy no built-in advantage and
of all governments, on the time honored principle of the law will have to be applied as it is.
salus populi esta suprema lex (Calalang v. Williams,
02 December 1940) • When the subject matter is covered by the Labor
Code, doubts which involve implementation and
Social Justice – humanization of laws and the interpretation of labor laws should be resolved in
equalization of social and economic forces by the favor of labor, even if the question involves Rules
State so that justice in its rational and objective of Evidence.
secular conception may at least be approximated
Management Rights / Prerogative – except as
Labor Standards – sets out the minimum terms, limited by special laws, an employer is free to
conditions, and benefits of employment that regulate, according to his own discretion and
employers must provide or comply with and to which judgment, all aspects of employment, including hiring,
employees are entitled as a matter of legal right work assignments, working methods, time, place and
manner of work, tools to be used, processes to be
Labor Relations – defines the status, rights and followed, supervision of workers, working regulations,
duties, as well as the institutional mechanisms that transfer of employees, work supervision, lay-off of
govern the individual and collective interactions workers and the discipline, dismissal and recall of
between employers, employees and their workers
representatives
• Capitol Medical Center, Inc. v. Meris (16
Art. 3. Declaration of basic policy September 2005)
• Afford protection to labor As long as the company’s exercise of the same is
• Promote full employment exercised in good faith for the advancement of the
• Ensure equal work opportunities regardless of employer’s interest, and not for the purpose of defeating
sex, race, or creed or circumventing the rights of the employees under
• Regulate the relations between workers and special laws or valid agreements, the courts will uphold
employers them.
• Assure worker’s rights to self-organization,
collective bargaining, security of tenure, and just • Philippine Blooming Mills Employees Association
and humane conditions of work v. Philippine Blooming Mills, GR No. L-31195, 05
June 1973
Seven basic rights of workers guaranteed by the The primacy of human rights – freedom ofexpression, of
Constitution: peaceful assembly and of petition for redress of
1. right to organize grievances over property rights has been sustained.
2. to conduct collective bargaining or negotiation
with management • PAL v. NLRC, GR No. 85985 (1993)
3. to engage in peaceful concerted activities, The exercise of management prerogatives is not
including strike in accordance with law unlimited. A line must be drawn between management
4. to enjoy security of tenure prerogatives regarding business operations per se and
5. to work under humane conditions those which affect the rights of employees. In treating
6. to receive a living wage the latter, management should see to it that its
7. to participate in policy and decision-making employees are at least properly informed of its decisions
processes affecting their rights and benefits as and modes of action.
may be provided by law.
Art. 5. Rules and regulations
Department of Labor and Employment (DOLE)
- Lead agency in enforcing labor laws and it
possesses rule-making power in the enforcement
of the Code
• But a rule or regulation that exceeds the
Department’s rule-making authority is void.

Art. 6. Applicability of Labor Code


Applies alike to all workers, except as otherwise
provided by law, whether agricultural or nonagricultural.
Applies to a government corporation incorporated
under the Corporation CodeWork Relationship
CHAPTER II. Concept of Employer-Employee 1.3 Tests of Employer-Employee Relationship (EER)
Relationship
Jurisprudential Tests to Determine Existence of EER:
1. Statutory definition of Employer and Employee,
Art(s). 97 (a) (b) (c), 167 (f) (g) (h), 212 (e) (f) A. The employer has the ability (need not be actual) to
exercise control over the following:
ART. 97. Definitions. - As used in this Title:
(a) "Person" means an individual, partnership, 1. Payment of Wages
association, corporation, business trust, legal • Payment of compensation by way of
representatives, or any organized group of commission does not militate against the conclusion
persons. EER exists. Under Art. 97 of the Labor Code, "wage"
shall mean "however designated, capable of being
(b) "Employer" includes any person acting expressed in terms of money, whether fixed or
directly or indirectly in the interest of an ascertained on a time, task, price or commission
employer in relation to an employee and shall basis…" (Insular Life Assurance Co., Ltd. V. NLRC, GR
include the government and all its branches, No.119930, 12 March 1998)
subdivisions and instrumentalities, all
government-owned or controlled corporations • Wages are defined as remuneration or earnings,
and institutions, as well as non-profit private however designated, capable of being expressed in
institutions, or organizations. terms of money, whether fixed or ascertained on a time,
task, piece or commission basis, or other method of
(c) "Employee" includes any individual employed calculating the same, which is payable by an employer
by an employer. to an employee under a written or unwritten contract of
employment for work done or to be done, or for services
Art. 167. Definition of Terms.—As used in this Title, rendered or to be rendered, and included the fair and
unless the context indicates otherwise: reasonable value, as determined by the Secretary of
(f) “Employer” means any person, natural or Labor, of board, lodging, or other facilities customarily
juridical, employing the services of the furnished by the employer to the employee. [Ruga v.
employee. NLRC, 181 SCRA 266 (1990)]

(g) “Employee” means any person compulsorily 2. Hiring – employment relation arises from contract of
covered by the GSIS under Commonwealth Act hire, express or implied [Ruga v.NLRC, 181 SCRA 266
Numbered One hundred eighty-six, as (1990)]
amended, including the members of the Armed • Selection and engagement of the workers rests with
Forces of the Philippines, and any person the employers
employed as casual, emergency, temporary, • Not a conclusive test since it can be avoided by the
substitute or contractual, or any person use of subcontracting agreements or other
compulsorily covered by the SSS under contracts other than employment contracts
Republic Act Numbered Eleven hundred sixty-
one, as amended. 3. Firing – disciplinary power exercised by
employer over the worker and the corresponding
(h) “Person” means any individual, partnership, sanction imposed in case of violation of any of its
firm, association, trust, corporation or legal rules and regulations
representative thereof.
4. Control, not only over the end product / RESULT
Art. 212. of the work, but more importantly, control over
(e) "Employer" includes any person acting in the the MEANS through which the work is
interest of an employer, directly or indirectly. The accomplished. (most essential element; without
term shall not include any labor organization or it, there is no EER)
any of its officers or agents except when acting
as employer. B. Economic Relations Test – a subordinate /
alternative test. Existing economic conditions
(f) "Employee" includes any person in the between the parties are used to determine whether
employ of an employer. The term shall not be EER exists.
limited to the employees of a particular 1. payment of PAG-IBIG Fund contributions
employer, unless the Code so explicitly states. It 2. payment / remittance of contributions to the State
shall include any individual whose work has Insurance Fund
ceased as a result of or in connection with any 3. deduction of withholding tax
current labor dispute or because of any unfair 4. deduction / remittance of SSS contributions
labor practice if he has not obtained any other
substantially equivalent and regular
employment.
1.4. Elements of Employer-Employee Relationship

• Ruga v. NLRC, 181 SCRA 437 (1990)


The employer-employee relationship between
the crew members and the owners of the fishing vessels
engaged in deep-sea fishing is merely suspended during
the time the vessels are drydocked or undergoing
repairs or being loaded with the necessary provisions for
the next fishing trip. The said ruling is premised on the
principle that all these activities i.e., drydock, repairs,
loading of necessary provisions, form part of the regular
operation of the company fishing business.
Wages are defined as remuneration or earnings,
however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time,
task, piece or commission basis, or other method of
calculating the same, which is payable by an employer
to an employee under a written or unwritten contract of
employment for work done or to be done, or for services
rendered or to be rendered, and included the fair and
reasonable value, as determined by the Secretary of
Labor, of board, lodging, or other facilities customarily
furnished by the employer to the employee

• Perpetual Help Credit v. Faburada et al., 366


SCRA 693 (2001)

• Chavez v. NLRC, 448 SCRA 478 (2005)

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


170087, Aug. 31, 2006

• Television and Production Exponents, Inc. v. Servaña

c. Piercing the Corporate Veil


2. Independent Contractor and Labor-only Section 1. Guiding principles. - Contracting and
Contractor, Art. 106-107, 109; DO No. 18-02, S 2002 subcontracting arrangements are expressly allowed by
law and are subject to regulation for the promotion of
ART. 106. Contractor or subcontractor. - Whenever an employment and the observance of the rights of workers
employer enters into a contract with another person to just and humane conditions of work, security of
for the performance of the former’s work, the tenure, self-organization, and collective bargaining.
employees of the contractor and of the latter’s Labor-only contracting as defined herein shall be
subcontractor, if any, shall be paid in accordance with prohibited.
the provisions of this Code.
Section 2 . Coverage. - These Rules shall apply to all
In the event that the contractor or subcontractor fails parties of contracting and subcontracting arrangements
to pay the wages of his employees in accordance with where employer-employee relationship exists.
this Code, the employer shall be jointly and severally Placement activities through private recruitment and
liable with his contractor or subcontractor to such placement agencies as governed by Articles 25 to 39 of
employees to the extent of the work performed under the Labor Code are not covered by these Rules.
the contract, in the same manner and extent that he is
liable to employees directly employed by him. Section 3. Trilateral Relationship in Contracting
rrangements. - In legitimate contracting, there exists a
The Secretary of Labor and Employment may, by trilateral relationship under which there is a contract for a
appropriate regulations, restrict or prohibit the specific job, work or service between the principal and
contracting-out of labor to protect the rights of workers the contractor or subcontractor, and a contract of
established under this Code. In so prohibiting or employment between the contractor or subcontractor
restricting, he may make appropriate distinctions and its workers. Hence, there are three parties involved
between labor-only contracting and job contracting as in these arrangements, the principal which decides to
well as differentiations within these types of farm out a job or service to a contractor or subcontractor,
contracting and determine who among the parties the contractor or subcontractor which has the capacity to
involved shall be considered the employer for independently undertake the performance of the job,
purposes of this Code, to prevent any violation or work or service, and the contractual workers engaged by
circumvention of any provision of this Code. the contractor or subcontractor to accomplish the
job work or service.
There is "labor-only" contracting where the person
supplying workers to an employer does not have Section 4. Definition of Basic Terms. – The following
substantial capital or investment in the form of tools, terms as used in these Rules, shall mean:
equipment, machineries, work premises, among
others, and the workers recruited and placed by such (a) "Contracting" or "subcontracting" refers to an
person are performing activities which are directly arrangement whereby a principal agrees to put out or
related to the principal business of such employer. In farm out with a contractor or subcontractor the
such cases, the person or intermediary shall be performance or completion of a specific job, work or
considered merely as an agent of the employer who service within a definite or predetermined period,
shall be responsible to the workers in the same regardless of whether such job, work or service is to be
manner and extent as if the latter were directly performed or completed within or outside the premises
employed by him. of the principal.

ART. 107. Indirect employer. - The provisions of the (b) "Contractor or subcontractor" refers to any person or
immediately preceding article shall likewise apply to entity engaged in a legitimate contracting or
any person, partnership, association or corporation subcontracting arrangement.
which, not being an employer, contracts with an
independent contractor for the performance of any (c) "Contractual employee" includes one employed by a
work, task, job or project. contractor or subcontractor to perform or complete a job,
work or service pursuant to an arrangement between the
DEPARTMENT ORDER NO. 18 - 02 latter and a principal.
(Series of 2002)
(d) "Principal" refers to any employer who puts out or
RULES IMPLEMENTING ARTICLES 106 TO 109 farms out a job, service or work to a contractor or
OF THE LABOR CODE, AS AMENDED subcontractor.

By virtue of the power vested in the Secretary of Section 5. Prohibition against labor-only
Labor and Employment under Articles 5 (Rulemaking) contracting. - Labor-only contracting is hereby declared
and 106 (Contractor or Subcontractor) of the Labor Code prohibited. For this purpose, labor-only contracting shall
of the Philippines, as amended, the following regulations refer to an arrangement where the contractor or
governing contracting and subcontracting arrangements subcontractor merely recruits, supplies or places
are hereby issued:
workers to perform a job, work or service for a principal, esignation letter; a blank payroll; a waiver of labor
and any of the following elements are present: standards including minimum wages and social or
welfare benefits; or a quitclaim releasing the principal,
(i) The contractor or subcontractor does not have contractor or subcontractor from any liability as to
substantial capital or investment which relates to payment of future claims; and
the job, work or service to be performed and the (iii) Requiring him to sign a contract fixing the period of
employees recruited, supplied or placed by such employment to a term shorter than the term of the
contractor or subcontractor are performing activities contract between the principal and the contractor or
which are directly related to the main business of the subcontractor, unless the latter contract is divisible into
principal; or phases for which substantially different skills are
(ii) the contractor does not exercise the right to required and this is made known to the employee at the
control over the performance of the work of the time of engagement;
contractual employee.
(d) Contracting out of a job, work or service through an
The foregoing provisions shall be without in-house agency which refers to a contractor or
prejudice to the application of Article 248 (C ) of subcontractor engaged in the supply of labor which is
the Labor Code, as amended. owned, managed or controlled by the principal and
which operates solely for the principal;
"Substantial capital or investment" refers to capital
stocks and subscribed capitalization in the case of (e) Contracting out of a job, work or service directly
corporations, tools, equipment, implements, machineries related to the business or operation of the principal by
and work premises, actually and directly used by the reason of a strike or lockout whether actual or imminent;
contractor or subcontractor in the performance or
completion of the job, work or service contracted out. (f) Contracting out of a job, work or service being
performed by union members when such will interfere
The "right to control" shall refer to the right with, restrain or coerce employees in the exercise of
reserved to the person for whom the services of their rights to self organization as provided in Art. 248 (c)
the contractual workers are performed, to of the Labor Code, as amended.
determine not only the end to be achieved, but
also the manner and means to be used in Section 7. Existence of an employer-employee
reaching that end. relationship. - The contractor or subcontractor shall be
considered the employer of the contractual employee for
Section 6. Prohibitions. - Notwithstanding Section purposes of enforcing the provisions of the Labor Code
5 of these Rules, the following are hereby declared and other social legislation. The principal, however, shall
prohibited for being contrary to law or public policy: be solidarily liable with the contractor in the event of any
violation of any provision of the Labor Code, including
(a) Contracting out of a job, work or service when not the failure to pay wages.
done in good faith and not justified by the exigencies of
the business and the same results in the termination of The principal shall be deemed the employer of the
regular employees and reduction of work hours or contractual employee in any of the following
reduction or splitting of the bargaining unit; cases as declared by a competent authority:

(b) Contracting out of work with a "cabo" as defined in (a) where there is labor-only contracting; or
Section 1 (ii), Rule I, Book V of these Rules. (b) where the contracting arrangement falls within the
"Cabo" refers to a person or group ofpersons or to a prohibitions provided in Section 6 (Prohibitions) hereof.
labor group which, in the guise of a labor organization,
supplies workers to an employer, with or without any Section 8. Rights of Contractual Employees. - Consistent
monetary or other consideration whether in the capacity with Section 7 of these Rules, the contractual employee
of an agent of the employer or as an ostensible shall be entitled to all the rights and privileges due a
independent contractor; regular employee as provided for in the Labor Code, as
amended, to include the following:
(c) Taking undue advantage of the economic situation or (a) Safe and healthful working conditions;
lack of bargaining strength of the contractual employee, (b) Labor standards such as service incentive
or undermining his security of tenure or basic rights, or leave, rest days, overtime pay, holiday pay, 13th
circumventing the provisions of regular employment, in month pay and separation pay;
any of the following instances: (c) Social security and welfare benefits;
(i) In addition to his assigned functions, requiring the (d) Self-organization, collective bargaining and
contractual employee to perform functions which are peaceful concerted action; and
currently being performed by the regular employees of (e) Security of tenure.
the principal or of the contractor or subcontractor;
(ii) Requiring him to sign, as a precondition to
employment or continued employment, an antedated
Section 9. Contract between contractor or (a) The name and business address of the applicant and
subcontractor and contractual employee. - the area or areas where it seeks to operate;
Notwithstanding oral or written stipulations to the (b) The names and addresses of officers, if the applicant
contrary, the contract between the contractor or is a corporation, partnership, cooperative or union;
subcontractor and the contractual employee, which shall (c) The nature of the applicant's business and the
be in writing, shall include the following terms and industry or industries where the applicant seeks to
conditions: operate;
(d) The number of regular workers; the list of clients, if
(a) The specific description of the job, work or service to any; the number of personnel assigned to each client, if
be performed by the contractual employee; any and the services provided to the client;
(b) The place of work and terms and conditions of (e) The description of the phases of the contract and the
employment, including a statement of the wage rate number of employees covered in each phase, where
applicable to the individual contractual employee; and appropriate; and
(c) The term or duration of employment, which shall be (f) A copy of audited financial statements if the applicant
coextensive with the contract of the principal and is a corporation, partnership, cooperative or a union, or
subcontractor, or with the specific phase for which the copy of the latest ITR if the applicant is a sole
contractual employee is engaged, as the case may be. poprietorship.
The contractor or subcontractor shall inform the
contractual employee of the foregoing terms and The application shall be supported by:
conditions on or before the first day of his employment. (a) A certified copy of a certificate of registration of firm
or business name from the Securities and Exchange
Section 10. Effect of Termination of Contractual Commission (SEC), Department of Trade and Industry
Employment. - In cases of termination of employment (DTI), Cooperative Development Authority (CDA), or
prior to the expiration of the contract between the from the DOLE if the applicant is a union; and
principal and the contractor or subcontractor, the right of (b) A certified copy of the license or business permit
the contractual employee to separation pay or other issued by the local government unit or units where the
related benefits shall be governed by the applicable laws contractor or subcontractor operates.
and jurisprudence on termination of employment.
The application shall be verified and shall include an
Where the termination results from the expiration of the undertaking that the contractor or subcontractor shall
contract between the principal and the contractor or abide by all applicable labor laws and regulations.
subcontractor, or from the completion of the phase of the
job, work or service for which the contractual employee Section 13. Filing and processing of applications.- The
is engaged, the latter shall not be entitled to separation application and its supporting documents shall be filed in
pay. However, this shall be without prejudice to triplicate in the Regional Offices where the applicant
completion bonuses or other emoluments, including principally operates. No application for registration shall
retirement pay as may be provided by law or in the be accepted unless all the foregoing requirements are
contract between the principal and the contractor or complied with. The contractor or subcontractor shall be
subcontractor. deemed registered upon payment of a registration fee of
P100.00 to the Regional Office.
Section 11. Registration of Contractors or
Subcontractors. - Consistent with the authority of the Where all the supporting documents have been
Secretary of Labor and Employment to restrict or prohibit submitted, the Regional Office shall deny or approve the
the contracting out of labor through appropriate application within seven (7) working days after its filing.
regulations, a registration system to govern contracting
arrangements and to be implemented by the Regional Upon registration, the Regional Office shall return one
Offices is hereby established. set of the duly-stamped application documents to the
applicant, retain one set for its file, and transmit the
The registration of contractors and subcontractors shall remaining set to the Bureau of Local Employment. The
be necessary for purposes of establishing an effective Bureau shall devise the necessary forms for the
labor market information and monitoring. expeditious processing of all applications for registration.

Failure to register shall give rise to the presumption that Section 14. Duty to produce copy of contract between
the contractor is engaged in labor-only contracting. the principal and the contractor or subcontractor. –
The principal or the contractor or subcontractor shall be
Section 12. Requirements for registration. – A contractor under an obligation to produce a copy of the contract
or subcontractor shall be listed in the registry of between the principal and the contractor in the ordinary
contractors and subcontractors upon completion of an course of inspection. The contractor shall likewise be
application form to be provided by the DOLE. The under an obligation to produce a copy of the contract of
applicant contractor or subcontractor shall provide in the employment of the contractual worker when directed to
application form the following information: do so by the Regional Director or his authorized
representative.
A copy of the contract between the contractual employee to copy therefrom, to question any employee and
and the contractor or subcontractor shall be furnished investigate any fact, condition or matter which may be
the certified bargaining agent, if there is any. necessary to determine violations or which may aid in
the enforcement of the Labor Code and of any labor law,
Section 15. Annual Reporting of Registered Contractors. wage order, or rules and regulations issued pursuant
- The contractor or subcontractor shall submit in triplicate thereto.
its annual report using a prescribed form to the
appropriate Regional Office not later than the 15th of The findings of the duly authorized representative shall
January of the following year. The report shall include: be referred to the Regional Director for appropriate
(a) A list of contracts entered with the principal during action as provided for in Article 128, and shall be
the subject reporting period; furnished the collective bargaining agent, if any.
(b) The number of workers covered by each contract
with the principal; Based on the visitorial and enforcement power of the
(c) A sworn undertaking that the benefits from the Social Secretary of Labor and Employment in Article 128 (a),
Security System (SSS), the Home Development Mutual (b), (c) and (d), the Regional Director shall issue
Fund (HDMF), PhilHealth, Employees Compensation compliance orders to give effect to the labor standards
Commission (ECC), and remittances to the Bureau of provisions of the Labor Code, other labor legislation and
Internal Revenue (BIR) due its contractual employees these guidelines.
have been made during the subject reporting period.
Section 19. Solidary liability. - The principal shall be
The Regional Office shall return one set of the duly- deemed as the direct employer of the contractual
stamped report to the contractor or subcontractor, retain employees and therefore, solidarily liable with the
one set for its file, and transmit the remaining set to the contractor or subcontractor for whatever monetary
Bureau of Local Employment within five (5) days from claims the contractual employees may have against the
receipt thereof. former in the case of violations as provided for in
Sections 5 (Labor-Only contracting), 6 (Prohibitions), 8
Section 16. Delisting of contractors or (Rights of Contractual Employees) and 16 (Delisting) of
subcontractors. - Subject to due process, the Regional these Rules. In addition, the principal shall also be
Director shall cancel the registration of contractors or solidarily liable in case the contract between the principal
subcontractors based on any of the following grounds: and contractor or subcontractor is preterminated for
(a) Non-submission of contracts between the principal reasons not attributable to the fault of the contractor or
and the contractor or subcontractor when required to do subcontractor.
so;
(b) Non-submission of annual report; Section 20. Supersession. - All rules and regulations
(c) Findings through arbitration that the contractor or issued by the Secretary of Labor and Employment
subcontractor has engaged in labor only contracting and inconsistent with the provisions of this Rule are hereby
the prohibited activities as provided in Section 6 superseded. Contracting or subcontracting
(Prohibitions) hereof; and arrangements in the construction industry, under the
(d) Non-compliance with labor standards and licensing coverage of the PCAB and shall not include
working conditions. shipbuilding and ship repairing works, however, shall
continue to be governed by Department Order No. 19,
Section 17. Renewal of registration of contractors series of 1993.
or subcontractors. - All registered contractors or
subcontractors may apply for renewal of registration Section 21. Effectivity. - This Order shall be effective
every three years. For this purpose, the Tripartite fifteen (15) days after completion of its publication in two
Industrial Peace Council (TIPC) as created under (2) newspapers of general circulation.
Executive Order No. 49, shall serve as the oversight
committee to verify and monitor the following: Manila, Philippines, 21 February 2002.
(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
specified in the contract but not as to the means and
2.1 Requirements for Independent Contractor methods of accomplishing the same. Also, PHILSSEC
has substantial capital of its own. What it markets to
• San Miguel Corp v. NLRC & Maliksi, GR No. 147566, clients are computer programs and training systems on
Dec. 6, 2006 computer technology and not the usual labor or
Concept: Requirements for Independent Contractor manpower supply to establishment concerns. Further,
- The act if hiring and re-hiring the petitioners over a SMC said, Maliksi’s service has no relation to the
period of time without considering them as regular principal business of SMC, which is food and beverage.
employees evidences bad faith on the part of private
respondent. The Labor Arbiter declared Maliksi a regular employee of
-Regularization is a labor benefit that should apply to all PHILSSEC and absolved SMC from liability. Maliksi
qualified employees similarly situated and may not be appealed to the NLRC which in turn reversed the Labor
denied merely because some employees were allegedly Arbiter’s decision, ordering SMC-Magnolia Division to
not parties to or were not impleaded in the voluntary reinstate him without loss of seniority rights and with full
arbitration case. benefits. When the case reached the CA, the latter
-It must be noted that the Court extended the benefit of affirmed in toto the NLRC’s decision, finding Lipercon
regularization not only to the original complainants but and Skillpower as mere conduits to circumvent Article
also to those workers who are “similarly situated” to 280 of the Labor Code, employing Maliksi as contractual
therein complainants. or project employee through these entities, thereby
undermining his right to gain regular employment status
Quotable Quote (Justice Garcia): under the law. The CA agreed with the NLRC that
“The contrivances may be many and the schemes Maliksi’s work was necessary or desirable in the
ingenious and imaginative. But this Court will not business of SMC in its Magnolia Division, for more than
hesitate to put pen to a line and defend the worker’s right the required one-year period, and that he became
to be secure in his (or her) proprietary right to regular permanent and regular with SMC after the statutory
employment and his right to a secure employment.” period of one year of service. The CA also concluded
that on account of his past employment contracts with
FACTS: SMC under Lipercon and Skillpower, Maliksi was already
San Miguel Corporation (SMC) seeks to reverse a Court a regular employee of SMC when he entered into SMC’s
of Appeals (CA) decision which affirmed an NLRC computerization project as part of the PHILSSEC project
declaration that private respondent Rafael Maliksi complement.
(Maliksi) is a regular employee of SMC and must be
reinstated with benefits. ISSUE: Whether or not Maliksi was a regular employee
of SMC?
Maliksi in October 16, 1990 sued SMC-Magnolia
Division and Philippine Software Services and Education HELD: Petition DENIED. Maliksi is a regular employee
Center (PHILSSEC) for them to recognize him as a of SMC. Lipercon and Skillpower are labor-only
regular employee. Later on the same case he included ontractors providing as they do personnel services to the
the charge of illegal dismissal when petitioners public for a fee. There is an employer-employee
terminated his services later that month. Maliksi’s relationship and the Court gives due deference to this
employment record shows he served SMC alternately as factual findings of both the NLRC and the CA. Having
budget head, accounting clerk and acting clerk under served SMC for an aggregate period of more than three
Skillpower, Lipercon and PHILSSEC between 1981 up to (3) years through employment contracts with these
February 1985 “for periods spread apart,” or for at least Lipercon and Skillpower, Maliksi should be considered
three years and seven months. as SMC’s regular employee. The fact is that he was
hired and re-hired by SMC to perform administrative and
Respondent Maliksi maintained that he is an employee clerical work that was necessary to SMC’s business on a
of SMC-Magnolia and that Lipercon, Skillpower, Inc. and daily basis.
PHILSSEC are labor-only contractors, none being his
employer. PHILSSEC meanwhile disclaimed liability as it In Bustamante v. National Labor Relations Commission,
catered only to computerized accounting needs of the Court ruled that petitioners were employees engaged
businesses like SMC-Magnolia, PHILSSEC’s principal to perform activities necessary in the usual business of
function being that of manual control of data needed the employer. The contract for probationary employment
during the computerization. PHILSSEC added that it was utilized by respondent company as a chicanery to
controlled Maliksi’s work, paid his salary and required deny petitioners their status as regular employees and to
him to report directly to it. Maliksi was terminated evade paying them the benefits attached to such status.
because the project was completed on October 31, They were hired and re-hired in a span of from two to
1990. SMC for its part basically asserted the same, four years to do the same type of work which
contending that PHILSSEC exercised exclusive conclusively shows the necessity of petitioners’ service
managerial prerogative over the complainant as to to the respondent company’s business.
hiring, payment of salary, dismissal and the control over
his work. It was interested only in the result of the work
With respect to PHILSSEC, there was no need for - SMC contends that PHILSEC exercised sxclusive
Maliksi to be employed under the former’s managerial prerogative over Maliksi as ti hiring, payment
computerization program to be considered a regular of salary, dismissal, and control of his work (take note
employee of SMC at the time. Moreover, SMC itself these are the requisites for employee-employer
admits that Maliksi’s work under the computerization relationship). PHILSEC has substantial capital of its own
program did “not require the operation of a computer and what it caters to clients are computer programs and
system, such as the software program being developed training systems on computer tech and not the usual
by PHILSSEC.” Maliksi’s work under the PHILSSEC labor or man power supply (test for independent
project was mainly administrative in nature and contractor).
necessary to the development of SMC’s business. - SMC said that Maliksi's service has no relations to
SMC's primary business which is food and beverages.
Maliksi was juggled from one employment contract to (The court said that this contention has no merit since
another in a continuous bid to circumvent labor laws. accounting chorva is part of the business).
The act of hiring and re-hiring workers over a period of - The Labor Arbiter declared that Maliksi is an employee
time without considering them as regular employees of PHILSEC.
evidences bad faith on the part of the employer making it - Maliksi appealed to the NLRC, reversed the decision of
liable to pay damages. The contrivances may be many the Labor Arbiter, making SMC the employer.
and the schemes ingenious and imaginative. But this - SMC appealed to the CA. CA affired the decision of the
Court will not hesitate to put pen to a line and defend the NLRC.
worker’s right to be secure in his (or her) proprietary right - CA said that tho Lipercon and Skillpower are mere
to regular employment and his right to a secure conduits on Maliksi being on SMC, still made him
employment, viz, one that is free from fear and doubt, (Maliksi) a regular employee because of the required
that anytime he could be removed, retrenched, his one year period.
contract not renewed or he might not be re-hired.
Issue: W/ON Maliksi is a regular employee
Considering, however, the supervening event that
SMC’s Magnolia Division has been acquired by another Held. Yes, he is a regular employee. Lipercon and
entity, respondent Maliksi’s reinstatement it appears is Skillpower are LABOR ONLY CONTRACTORS
no longer feasible. Instead, he should be awarded providing personnel services for a fee. There is an
separation, in addition to the other monetary awards, employee-employer relationship and the court gives due
pay as an alternative. Likewise, owing to petitioner’s bad deference ti the factual findings of the NLRS and CA.
faith in juggling the latter from one labor contractor to Having served SMC for 3 years thru Lipercon and
another, it should be held liable to pay nominal damages Skillpower deemed Maliksi a regular employee.
for causing undue injury and inconvenience to the
private respondent in its contractual hiring-firing-rehiring • LIKHA-PMPB v. Burlinggame corp., GR No. 162833,
scheme and for denying him his proprietary right to June 15, 2007
regular employment.
- Job contracting is permissible only if the
√ following conditions are met:
Facts: 1) the contractor carries on an independent business
- SMC (San Miguel) seeks to reverse the decision of the and undertakes the contract work on his own account
CA which affirmed the decision of the NLRC that Rafael under his own responsibility according to his own
Maliksi is a REGULAR EMPLOYEE manner and method, free from the control and direction
- Oct. 16, 1990. Maliksi filed a complaint against SMC of his employer or principal in all matters connected with
compelling them to recgonize him as regular employee. the performance of the work except as to the results
Oct 31, 1990, he was dismissed by SMC. thereof; and
- His complaint then now includes illegal dismissal 2) contractor has substantial capital or investment in the
- Maliksi thru Lipercon (contractor), was assigned to form of tools, equipment, machineries, work premises,
SMC. After a while another contractor (Skillpower) and other materials which are necessary in the conduct
assigned him to SMC again then lastly, another of the business.
contractor (Philippine Sofware Services and Education - Mentioned sec. 5 of DO 18-02 which states the
Center or PHILSEC) assgined him to SMC. (To clarify prohibition against labor-only contracting (see DO)
things dear reader, Three different agencies assigned - Promo-girls were directly related to the principal
him to SMC). Those assignments are from 1981 to 1985. business or operation of Burlingame. Marketing and
- Maliksi argued that he is an employee if Magnolia (a selling of products is an essential activity to the main
division of SMC). He also argued that the contractors are business of the principal.
LABOR ONLY CONTRACTORS and not his employer. - In labor-only contracting, the law creates an
- PHILSEC disclaimed liability as it catered only to employer-employee relationship to prevent a
computerized accounting needs of businesses like SMC. circumvention of labor laws. The contractor is merely an
PHILSEC's principal funding being manual control of agent of the principal employer and the latter is
data needed during computerization. responsible to the employees of the labor-only contractor
- Maliksi was terminated because the project ended.
as if such employees had been directly employed by the the workers through F. Garil a certain sum per worker on
principal employer. the basis of eight-hour work every 15th and 30th of each
calendar month which evinces the fact that F. Garil
Concept: Independent Contract and Labor Only merely served as conduit in the payment of wages to the
Contractor deployed personnel. Burlingame upon request to F. Garil
Facts: may replace any personnel found to be inefficient,
- Jan. 17, 2000, LIKHA-PMPB filed a petition for troublesome, uncooperative and not observing the rules
certification before DOLE, it seeks to represent all RANK and regulations set forth by it.
and FILE EMPLOYEES (means the employee doesn't
occupy a high-level position within the organization) of There is no doubt that F. Garil was engaged in labor-
the respondent, which counts to 70 all in all. only contracting, and as such, is considered merely an
- LIKA-PMPB said that there is no existing union in agent of Burlingame. Since F. Garil is a labor-only
Burlingame representing the regular rank and file contractor, the workers it supplied should be considered
employees. as employees of Burlingame in the eyes of the law.
- It prayed that it be voluntarily recognized by
Burlingame to be a collective bargaining agent or the • Aliviado, et al. v. Proctor and Gamble Phil. & PROMM
alternative, that a certification/consent election be held GEM Inc., G.R. No. 160506 March 9, 2010
among regular rank and file employees.
- Burlingame filed a motion to dismiss the petition. It JOEB M. ALIVIADO, et al., Petitioners, v. PROCTER &
argued that there exists no employee-employer GAMBLE PHILS., INC., and PROMM-GEM INC.,
relationship between them and the members of the Respondents.
LIKHA-PMPB. It further alleged that the members are DEL CASTILLO, J.:
employee F.GARIL MANPOWER SERVICES, a duly
licensed local employment agency. To prove such Facts:
contention, respondent presented a copy of its contract Petitioners worked as merchandisers of P&G. They all
with F. Garil. individually signed employment contracts with either
- June 29, 2000. Med-Arbiter Renato Panungo Promm-Gem or SAPS. They were assigned at different
dismissed the petition for lack of employee-employer outlets, supermarkets and stores where they handled all
relationship, which lead LIKHA to file a appeal before the the products of P&G. They received their wages from
secretary of labor and employment. Promm-Gem or SAPS.
December 29, 2000. Secretary ordered the immediate
conduct of a certificaiton election. SAPS and Promm-Gem imposed disciplinary measures
- Respondents went to CA, CA revered the decision. on erring merchandisers for reasons such as habitual
Petitioners filed for a motion of reconsideration. Denied. absenteeism, dishonesty or changing day-off without
prior notice.
Issue:
(1) Whether or not F. Garil is an independent contractor; To enhance consumer awareness and acceptance of the
(2) Whether or not petitioner are employees of products, P&G entered into contracts with Promm-Gem
Burlingame Corporation. and SAPS for the promotion and merchandising of its
products.
Ruling:
(1) NO. We agree with the Secretary that F. Garil is not In December 1991, petitioners filed a complaint against
an independent contractor. First, F. Garil does not have P&G for regularization, service incentive leave pay and
substantial capitalization or investment in the form of other benefits with damages.
tools, equipment, machineries, work premises, and other
materials, to qualify as an independent contractor. No Issue: WON P&G is the employer of petitioners.
proof was adduced to show F. Garil‘s capitalization.
Second, the work of the promo-girls was directly related Held:
to the principal business or operation of Burlingame.
Marketing and selling of products is an essential activity In order to resolve the issue of whether P&G is the
to the main business of the principal. Lastly, F. Garil did employer of petitioners, it is necessary to first determine
not carry on an independent business or undertake the whether Promm-Gem and SAPS are labor-only
performance of its service contract according to its own contractors or legitimate job contractors
manner and method, free from the control and
supervision of its principal, Burlingame. Clearly, the law and its implementing rules allow
contracting arrangements for the performance of specific
(2) YES. The “four-fold test” will show that respondent is jobs, works or services. However, in order for such
the employer of petitioner‘s members. The involvement outsourcing to be valid, it must be made to an
of F. Garil in the hiring process was only with respect to independent contractor because the current labor rules
the recruitment aspect because the actual hiring itself expressly prohibit labor-only contracting.
was done through the deployment of personnel to
establishments by Burlingame. Burlingame would pay
To emphasize, there is labor-only contracting when the P&G is principally engaged in the manufacture and
contractor or sub-contractor merely recruits, supplies or production of different consumer and health products,
places workers to perform a job, work or service for a which it sells on a wholesale basis to various
principal and any of the following elements are present: supermarkets and distributors. To enhance consumer
awareness and acceptance of the products, P&G
i) The contractor or subcontractor does not have entered into contracts with Promm-Gem and SAPS for
substantial capital or investment which relates to the job, the promotion and merchandising of its products.
work or service to be performed andthe employees
recruited, supplied or placed by such contractor or In December 1991, petitioners filed a complaint against
subcontractor are performing activities which are directly P&G for regularization, service incentive leave pay and
related to the main business of the principal; or other benefits with damages.The complaint was later
ii) The contractor does not exercise the right to control amendedto include the matter of their subsequent
over the performance of the work of the contractual dismissal.
Under the circumstances, Promm-Gem cannot be
considered as a labor-only contractor. We find that it is a On November 29, 1996, the Labor Arbiter dismissed the
legitimate independent contractor. complaint for lack of merit and ruled that there was no
employer-employee relationship between petitioners and
Considering that SAPS has no substantial capital or P&G.He found that the selection and engagement of the
investment and the workers it recruited are performing petitioners, the payment of their wages, the power of
activities which are directly related to the principal dismissal and control with respect to the means and
business of P&G, we find that the former is engaged in methods by which their work was accomplished, were all
“labor-only contracting”. done and exercised by Promm-Gem/SAPS.He further
found that Promm-Gem and SAPS were legitimate
Where labor-only contracting exists, the Labor Code independent job contractors. On appeal, the NLRC
itself establishes an employer-employee relationship dismissed the same. Petitioners filed a motion for
between the employer and the employees of the labor- reconsideration but the motion was denied in
only contractor. The statute establishes this relationship theNovember 19, 1998Resolution.
for a comprehensive purpose: to prevent a
circumvention of labor laws. The contractor is Petitioners likewise failed to have a favrable decision in
considered merely an agent of the principal employer the CA hence, this petition.
and the latter is responsible to the employees of the
labor-only contractor as if such employees had been ISSUE: Whether or not Promm-Gem and SAPS are
directly employed by the principal employer. labor-only contractors or legitimate job contractors?

Petition Granted HELD: The petition is granted.

NOTE: LABOR LAW

- Respondent filed MR, which was denied. Article 106 of the Labor Code and its implementing rules
- In its resolution, the Court upheld its decision declaring allow contracting arrangements for the performance of
SAPS has no substantial capital, therefore, labor-only specific jobs, works or services.Indeed, it is
contractor. management prerogative to farm out any of its activities,
regardless of whether such activity is peripheral or core
√ in nature.However, in order for such outsourcing to be
FACTS: valid, it must be made to anindependent
Petitioners worked as merchandisers of P&G from contractorbecause the current labor rules expressly
various dates, allegedly starting as early as 1982 or as prohibit labor-only contracting.
late as June 1991, to either May 5, 1992orMarch 11,
1993. To emphasize, there is labor-only contracting when the
contractor or sub-contractor merely recruits, supplies or
They all individually signed employment contracts with places workers to perform a job, work or service for a
either Promm-Gem or SAPS for periods of more or less principalandanyof the following elements are present: (i)
five months at a time.They were assigned at different The contractor or subcontractor does not have
outlets, supermarkets and stores where they handled all substantial capital or investment which relates to the job,
the products of P&G.They received their wages from work or service to be performedandthe employees
Promm-Gem or SAPS. recruited, supplied or placed by such contractor or
subcontractor are performing activities which are directly
SAPS and Promm-Gem imposed disciplinary measures related to the main business of the principal;or (ii) The
on erring merchandisers for reasons such as habitual contractor does not exercise the right to control over the
absenteeism, dishonesty or changing day-off without performance of the work of thecontractualemployee.
prior notice.
In the instant case,thefinancialstatementsof Promm-Gem Furthermore, the petitioners have been charged with the
show that it merchandising and promotion of the products of P&G,
an activity that has already been considered by the
has authorized capital stock ofP1 million and a paid-in Court as doubtlessly directly related to the
capital, or capital available for operations, ofP500,000.00 manufacturing business, which is the principal business
as of 1990. It also has long term assets of P&G.Considering that SAPS has no substantial
worthP432,895.28 and current assets capital or investment and the workers it recruited are
ofP719,042.32.Promm-Gem has also proven that it performing activities which are directly related to the
maintained its own warehouse and office space with a principal business of P&G, we find that the former is
floor area of 870 square meters. It also had under its engaged in labor-only contracting.
name three registered vehicles which were used for its
promotional/merchandising business.Promm-Gem also Where labor-only contracting exists, the Labor Code
has other clientsaside from P&G. Under the itself establishes an employer-employee relationship
circumstances, Promm-Gem has substantial investment between the employer and the employees of the labor-
which relates to the work to be performed.These factors only contractor. The statute establishes this relationship
negate the existence of the element specified in Section for a comprehensive purpose: to prevent a
5(i) of DOLE Department Order No. 18-02. circumvention of labor laws. The contractor is
considered merely an agent of the principal employer
The records also show that Promm-Gem supplied its and the latter is responsible to the employees of the
complainant-workers with the relevant materials, such as labor-only contractor as if such employees had been
markers, tapes, liners and cutters, necessary for them to directly employed by the principal employer.
perform their work.Promm-Gem also issued uniforms to
them. It is also relevant to mention that Promm-Gem LABOR LAW
already considered the complainants working under it as
its regular, not merely contractual or project, In cases of regular employment, the employer shall not
employees.This circumstance negates the existence of terminate the services of an employee except for a justor
element (ii) as stated in Section 5 of DOLE Department authorized cause.
Order No. 18-02, which speaks ofcontractualemployees.
This, furthermore, negates on the part of Promm-Gem In the instant case, the termination letters given by
bad faith and intent to circumvent labor laws which Promm-Gem to its employees uniformly specified the
factors have often been tipping points that lead the Court cause of dismissal as grave misconduct and breach of
to strike down the employment practice or agreement trust.
concerned as contrary to public policy, morals, good
customs or public order. Misconduct has been defined as improper or wrong
conduct; the transgression of some established and
Under the circumstances, Promm-Gem cannot be definite rule of action, a forbidden act, a dereliction of
considered as a labor-only contractor. Thus, it is a duty, unlawful in character implying wrongful intent and
legitimate independent contractor. not mere error of judgment.The misconduct to be serious
must be of such grave and aggravated character and not
On the other hand, the Articles of Incorporation of SAPS merely trivial and unimportant.To be a just cause for
shows that it has a paid-in capital of dismissal, such misconduct (a) must be serious; (b) must
onlyP31,250.00.There is no other evidence presented to relate to the performance of the employees duties; and
show how much its working capital and assets (c) must show that the employee has become unfit to
are.Furthermore, there is no showing of substantial continue working for the employer.
investment in tools, equipment or other assets.
In the instant case, petitioners-employees of Promm-
It is clear that SAPS having a paid-in capital of Gem may have committed an error of judgment in
onlyP31,250 - has no substantial capital.SAPS lack of claiming to be employees of P&G, but it cannot be said
substantial capital is underlined by the records which that they were motivated by any wrongful intent in doing
show that its payroll for its merchandisers alone for one so.As such, they are only found them guilty of only
month would already totalP44,561.00.It had 6-month simple misconduct for assailing the integrity of Promm-
contracts withP&G.Yet SAPS failed to show that it could Gem as a legitimate and independent promotion firm.A
complete the 6-month contracts using its own capital and misconduct which is not serious or grave, as that
investment.Its capital is not even sufficient for one existing in the instant case, cannot be a valid basis for
months payroll. SAPS failed to show that its paid-in dismissing an employee.
capital ofP31,250.00 is sufficient for the period required
for it to generate its needed revenue to sustain its Meanwhile, loss of trust and confidence, as a ground for
operations independently.Substantial capital refers to dismissal, must be based on the willful breach of the
capitalization used in theperformance or completionof trust reposed in the employee by his employer.Ordinary
the job, work or service contracted out.In the present breach will not suffice.A breach of trust is willful if it is
case, SAPS has failed to show substantial capital. done intentionally, knowingly and purposely, without
justifiable excuse, as distinguished from an act done CIVIL LAW
carelessly, thoughtlessly, heedlessly or inadvertently.
Moral and exemplary damages are recoverable where
Loss of trust and confidence, as a cause for termination the dismissal of an employee was attended by bad faith
of employment, is premised on the fact that the or fraud or constituted an act oppressive to labor or were
employee concerned holds a position of responsibility or done in a manner contrary to morals, good customs or
of trust and confidence.As such, he must be invested public policy.
with confidence on delicate matters, such as custody,
handling or care and protection of the property and With regard to the employees of Promm-Gem, there
assets of the employer.And, in order to constitute a just being no evidence of bad faith, fraud or any oppressive
cause for dismissal, the act complained of must be work- act on the part of the latter, we find no support for the
related and must show that the employee is unfit to award of damages.
continue to work for the employer. In the instant case,
the petitioners-employees of Promm-Gem have not been As for P&G, the records show that it dismissed its
shown to be occupying positions of responsibility or of employees through SAPS in a manner oppressive to
trust and confidence. Neither is there any evidence to labor. The sudden and peremptory barring of the
show that they are unfit to continue to work as concerned petitioners from work, and from admission to
merchandisers for Promm-Gem. Thus, there was no the work place, after just a one-day verbal notice,andfor
valid cause for the dismissal of petitioners-employees of no valid cause bellows oppression and utter disregard of
Promm-Gem. the right to due process of the concerned
petitioners.Hence, an award of moral damages is called
While Promm-Gem had complied with the procedural for.
aspect of due process in terminating the employment of
petitioners-employees,i.e., giving two notices and in Attorneys fees may likewise be awarded to the
between such notices, an opportunity for the employees concerned petitioners who
to answer and rebut the charges against them, it failed to wereillegallydismissedinbadfaithandwerecompelledtolitig
comply with the substantive aspect of due process as ateorincur expenses to protect their rights by reason of
the acts complained of neither constitute serious the oppressive act of P&G.
misconduct nor breach of trust.Hence, the dismissal is
illegal. LABOR LAW

With regard to the petitioners placed with P&G by SAPS, Lastly, under Article 279 of the Labor Code, an
they were given no written notice of dismissal.The employee who is unjustly dismissed from work shall be
records show that upon receipt by SAPS of P&Gs letter entitled to reinstatement without loss of seniority rights
terminating their Merchandising Services Contact and other privileges, inclusive of allowances, and other
effective March 11, 1993, they in turn verbally informed benefits or their monetary equivalent from the time the
the concerned petitioners not to report for work anymore. compensation was withheld up to the time of actual
reinstatement. Hence, all the petitioners, having been
Neither SAPS nor P&G dispute the existence of these illegally dismissed are entitled to reinstatement without
circumstances.Parenthetically, unlike Promm-Gem loss of seniority rights and with full back wages and
which dismissed its employees for grave misconduct and other benefits from the time of their illegal dismissal up
breach of trust due to disloyalty, SAPS dismissed its to the time of their actual reinstatement.
employees upon the initiation of P&G.It is evident that
SAPS does not carry on its own business because the The decision and resolution of the Court of Appeals are
termination of its contract with P&G automatically meant reversed and set aside. The case is remanded to the
for it also the termination of its employees services.It is NLRC.
obvious from its act that SAPS had no other clients and
had no intention of seeking other clients in order to a. Desirable – Unnecessary
further its merchandising business.From all indications • Coca-Cola Bottlers Phil., Inc. v. NLRC, 307 SCRA
SAPS, existed to cater solely to the need of P&G for the 131 (1999)
supply of employees in the latters merchandising
concerns only.Under the circumstances prevailing in the - mentioned Singer Sewing Machine vs Drilon: the
instant case, we cannot consider SAPS as definition that regular employees are those who perform
anindependent contractor. activities which are desirable and necessary for the
business of the employer is not determinative in this
In termination cases, the burden of proof rests upon the case. Any agreement may provide that one party shall
employer to show that the dismissal is for just and valid render services for and in behalf of another for a
cause. In the instant case, P&G failed to discharge the consideration (no matter how necessary for the latter’s
burden of proving the legality and validity of the business) even without being hired as an employee. This
dismissals of those petitioners who are considered its is precisely true in the case of an independent
employees. Hence, the dismissals necessarily were not contractorship as well as in an agency agreement.
justified and are therefore illegal.
- Art 280 is not the yardstick for determining the considered merely an agent of the principal employer
existence of an employment relationship because it and the latter is responsible to the employees of the
merely distinguishes between two kinds of employees labor-only contractor as if such employees had been
i.e. regular and casual for purposes of determining the directly employed by the principal employer.
right of an employee to certain benefits, to join or form a - Private resp performed activities which were necessary
union or to security of tenure. Art 280 does not apply or desirable to its principal trade or business. Thus, they
where the existence of an employment relationship is in were regular employees of petitioner regardless of
dispute (compare with Manila Water) whether the engagement was merely an accommodation
- Painting jobs performed we sporadic. The infrequency of their request pursuant to Art. 280 (compare with Far
or irregularity of assignments countervails Canonicato’s East Bank-blind employees).
submission that he was assigned to undertake the task - Art. 280: the provisions of written agreement to the
for the whole year round. contrary notwithstanding and regardless of the oral
agreement of the parties, an employment shall be
Q: Coca Cola entered into a contract of janitorial deemed to be regular where the employee has been
services with BJS. Coca Cola then hired X first, as a engaged to perform activities which are usually
casual employee; after the casual employment was necessary or desirable in the usual business or trade of
terminated, Coca Cola again hired X as a painter in the employer, except where the employment has been
contractual projects. He was also hired by BJS, which fixed for a specific project or undertaking the completion
assigned him to the Coca Cola considering his familiarity or termination of which has been determined at the time
with its premises. Goaded by information that Coca Cola of the engagement of the employee or where the work or
employed previous BJS employees who filed a services to be performed is seasonal in nature and the
complaint against the company for regularization employment is for the duration of the season.
pursuant to a compromise agreement, X submitted a - Under this provision, the evil sought to be prevented is
similar complaint against Coca Cola to the Labor Arbiter; singled out: agreements entered into precisely to
he included BJS therein as a co-respondent. He no circumvent security of tenure. It has no application
longer reported to work and when offered by BJS to where a fixed period of employment was agreed upon
work in other firms, he refused. He amended the knowingly and voluntarily by the parties, without any
complaint to illegal dismissal and underpayment of force, duress or improper pressure being brought upon
wages. Is there an employee-employer relationship in the employee and absent any circumstances vitiating his
this case? consent, or where it satisfactorily appears that the
employer and employee dealt with each other on more
A: No. The Court takes judicial notice of the practice or less terms with no moral dominance whatever being
adopted in several government and private institutions exercised by the former over the latter.
and industries of hiring janitorial services on an - Under 279 of LC, an employee who is unjustly
“independent contractor basis”. Although janitorial dismissed form work is entitled to reinstatement without
services may be considered directly related to the loss of seniority rights and other privileges, and to his full
principal business of an employer, the Court deemed back wages, inclusive of allowances, and to his other
them unnecessary in the conduct of the principal benefits or their monetary equivalent computed from the
business. This judicial notice rests on the assumption time his compensation was withheld from him up to the
that the independent contractor is a legitimate job time of his actual reinstatement. If reinstatement is no
contractor so that there can be no doubt as to the longer possible, the employer has the alternative of
existence of an employer-employee relationship paying the employee his separation pay in lieu of
between the contractor and the worker. It is also clear reinstatement
that BJS exercises control over the work of X as most of
his assigned task dealt with the maintenance and FACTS: Manila Water Company, Inc. is contracted by
sanitation of the company premises pursuant to BJS’s the etropolitan Waterworks and Sewerage System
contract with the company. (MWSS) to manage the water distribution system in the
The Court ruled that no employer-employee East Zone of Metro Manila. Manila Water absorbed the
relation exists between X and Coca Cola yet the latter former
shall be jointly and severally liable with BJS for the wage employees of the MWSS whose names and positions
differentials and 13th Month pay of X. (Coca Cola were in the list furnished by the latter, while the
Bottlers Philippines v. NLRC, 307 SCRA 131, 17 May employment of those not in the list was terminated on
1999) the day Manila Water took over the operation of the East
Zone. Respondents, being contractual collectors of the
2.2. Labor Contractor Only; Requisites and Prohibition MWSS, were among the 121 employees not included in
• Manila Water Co., Inc. v. Pena, 434 SCRA 52 the list. Manila Water engaged their services without
(2004) written contract. Then, they signed a three-month
- ACGI was engaged in labor-only contracting and as contract to perform collection services for 8 branches of
such, is considered merely an agent of the petitioner. In Manila Water in the East Zone. Before the end of the
labor-only contracting, the statute creates an employer- three-month contract, the 121 collectors incorporated the
employee relationship for a comprehensive purpose: to Association Collectors Group, Inc. (ACGI), which was
prevent a circumvention of labor laws. The contractor is contracted by Manila Water to collect charges for the
Balara Branch. Subsequently, most of the 121 collectors office in the morning of the day that he will be absent;
were asked by Manila Water to transfer to the First and although it was ACGI which ultimately disciplined
Classic Courier Services, a newly registered corporation. respondents, the penalty to be imposed was dictated by
Respondents remained with ACGI. Later, Manila petitioner as shown in the letters it sent to ACGI
Water terminated its contract with ACGI. specifying the penalties to be meted on the erring
respondents. These are indications that ACGI was not
Respondents filed a complaint for illegal dismissal and left alone in the supervision and control of its alleged
money claims, contending that they were Manila Water’s employees. Consequently, it can be concluded that
employees as all the methods and procedures of their ACGI was not an independent contractor since it did not
collections were controlled by the latter. Manila Water carry a distinct business free from the control and
asserts that respondents were employees of ACGI, an supervision of petitioner.
independent contractor. It maintained that it had no
control and supervision over private respondents’ 2.3 Effect of Finding
manner of performing their work except as to the results. • San Miguel Corporation v. Abella, 461 SCRA 392
Thus, Manila Water did not have an employer-employee (2005)
relationship with the private respondents, but only a - Effect of finding: there being a finding of labor-only
service contractor-client relationship with ACGI. contracting, liability must be shouldered by either SMC
ISSUE: Is ACGI an independent contractor? (principal) or Sunflower (contractor) or shared by both.
HELD: NO. ACGI was engaged in labor-only contracting, SMC however should be held solely liable for Sunflower
and as such, is considered merely an agent of the became non-existent with the closure of the aquaculture
petitioner. Since ACGI is only a labor-only contractor, the of business of SMC (CA reason).
workers it supplied should be considered as employees - In legitimate labor contracting, the law creates an
of Manila Water. employer-employee relationship for a limited purpose,
First, ACGI does not have substantial capitalization or i.e. to ensure that the employees are paid their wages.
investment in the form of tools, equipment, machineries, The principal employer becomes jointly and severally
work premises, and other materials, to qualify as an liable with the job contractor, only for the payment of the
independent contractor. While it has an authorized employees’ wages whenever the contractor fails to pay
capital stock of P1,000,000.00, only P62,500.00 is the same. Other than that, the principal employer is not
actually paid-in, which cannot be considered substantial responsible for any claim made by the employees.
capitalization. The 121 collectors subscribed to four - In labor-only contracting, the statute creates an
shares each and paid only the amount of P625.00 in employer-employee relationship for a comprehensive
order to comply with the incorporation requirements. prupose: to prevent a circumvention of labor laws. The
Respondents reported daily to the branch office of contractor is considered merely an agent of the principal
Manila Water because ACGI has no office or work employer and the latter is responsible to the employees
premises. The corporate address of ACGI was the of the labor-only contractor as if such employees had
residence of its president, Mr. Peña. Moreover, in been directly employed by the principal employer.
dealing with the consumers, respondents used the - Retrenchment is a management prerogative
receipts and identification cards issued by consistently recognized and affirmed by this Court. It is,
Manila Water. Second, the work of the private however, subject to faithful compliance with the
respondents was directly related to the principal substantive and procedural requirements laid down by
business or operation of Manila Water. Being in the law and jurisprudence.
business of providing water to the consumers in the East - For retrenchment to be considered valid, the following
Zone, the collection of the charges by respondents for substantial requirements must be met:
Manila Water can only be categorized as clearly related 1) the losses expected should be substantial and not
to, and in the pursuit of the latter’s business. merely de minimis in extent
Lastly, ACGI did not carry on an independent business 2) substantial losses apprehended must be reasonably
or undertake the performance of its service contract imminent such as can be perceived objectively and in
according to its own manner and method, free from the good faith by the employer
control and supervision of its principal, petitioner. Prior to 3) the retrenchment must be reasonably necessary and
respondents’ alleged employm ent with ACGI, they were likely to effectively prevent the expected losses
already working for petitioner, subject to its rules and 4) the alleged losses, if already incurred, and the
regulations in regard to the manner and method of expected imminent losses sought to be forestalled, must
performing their tasks. This form of control and be proved by sufficient and convincing evidence.
supervision never changed although they were already - SMC proved substantial business reverses justifying
under the seeming employ of ACGI. Manila Water retrenchment of its employees
issued memoranda regarding the billing methods and - For termination due to retrenchment be valid, the law
distribution of books to the collectors; it required requires that written notices of the intended
respondents to report daily and to remit their collections retrenchment be served by the employer on the worker
on the same day to the branch office or to deposit them and on the DOLE at least 1 month before the actual date
with Bank of the Philippine Islands; it monitored strictly of the retrenchment in order to give employees some
their attendance as when a collector cannot perform his time to prepare for the eventual loss of their jobs, as well
daily collection, he must notify petitioner or the branch
as to give DOLE the opportunity to ascertain the verity of employer and the latter is responsible to the employees
the alleged cause of termination. of the labor-only contractor as if such employees had
- Where the dismissal is based on an authorized cause been directly employed by the principal employer.
under Art 283 but the employer failed to comply with the
notice requirement, the sanction should be stiff as the The Contract of Services between SMC and Sunflower
dismissal process was initiated by the employer’s shows that the parties clearly disavowed the existence of
exercise of his management prerogative, as opposed to an employer-employee relationship between SMC and
a dismissal based on a just cause under 282, because private respondents. The language of a contract is not,
the dismissal is imputable to the employee. however, determinative of the parties’ relationship; rather
it is the totality of the facts and surrounding
The language of a contract disavowing the existence of circumstances of the case. A party cannot dictate, by the
an employer-employee relationship is not determinative mere expedient of a unilateral declaration in a contract,
of the parties’ relationship. It is the totality of the facts the character of its business, i.e., whether as labor-only
and surrounding circumstances of the case. contractor or job contractor, it being crucial that its
character be measured in terms of and determined by
Facts: Petitioner San Miguel Corporation (SMC) and the criteria set by statute.
Sunflower Multi-Purpose Cooperative (Sunflower)
entered into a one-year Contract of Service and such What appears is that Sunflower does not have
contract is renewed on a monthly basis until terminated. substantial capitalization or investment in the form of
Pursuant to this, respondent Prospero Aballa et al. tools, equipment, machineries, work premises and other
rendered services to SMC. materials to qualify it as an independent contractor. On
the other hand, it is gathered that the lot, building,
After one year of rendering service, Aballa et al., filed a machineries and all other working tools utilized by Aballa
complaint before National Labor Relations Commission et al. in carrying out their tasks were owned and
(NLRC) praying that they be declared as regular provided by SMC.
employees of SMC. On the other hand, SMC filed before
the Department of Labor and Employment (DOLE) a And from the job description provided by SMC itself, the
Notice of Closure due to serious business losses. work assigned to Aballa et al. was directly related to the
Hence, the labor arbiter dismissed the complaint and aquaculture operations of SMC. As for janitorial and
ruled in favor of SMC. Aballa et al. then appealed before messengerial services, that they are considered directly
the NLRC. The NLRC dismissed the appeal finding that related to the principal business of the employer has
Sunflower is an independent contractor. been jurisprudentially recognized.

On appeal, the Court of Appeals reversed NLRC’s Furthermore, Sunflower did not carry on an independent
decision on the ground that the agreement between business or undertake the performance of its service
SMC and Sunflower showed a clear intent to abstain contract according to its own manner and method, free
from establishing an employer-employee relationship. from the control and supervision of its principal, SMC, its
apparent role having been merely to recruit persons to
ISSUE: work for SMC.
Whether or not Aballa et al. are employees of SMC
All the foregoing considerations affirm by more than
HELD: substantial evidence the existence of an employer-
The test to determine the existence of independent employee relationship between SMC and Aballa et al.
contractorship is whether one claiming to be an Since Aballa et al. who were engaged in shrimp
independent contractor has contracted to do the work processing performed tasks usually necessary or
according to his own methods and without being subject desirable in the aquaculture business of SMC, they
to the control of the employer, except only as to the should be deemed regular employees of the latter and
results of the work. as such are entitled to all the benefits and rights
appurtenant to regular employment. They should thus be
In legitimate labor contracting, the law creates an awarded differential pay corresponding to the difference
employer-employee relationship for a limited purpose, between the wages and benefits given them and those
i.e., to ensure that the employees are paid their wages. accorded SMC’s other regular employees.
The principal employer becomes jointly and severally
liable with the job contractor, only for the payment of the San Miguel Corporation (SMC), entered into a one-year
employees’ wages whenever the contractor fails to pay Contract of Services with Sunflower Multi-Purpose
the same. Other than that, the principal employer is not Cooperative (Sunflower) to be renewed on a month to
responsible for any claim made by the employees. month basis until terminated by either party. Under the
contract, Sunflower agrees and undertakes to perform
In labor-only contracting, the statute creates an and/or provide for the company the following services for
employer-employee relationship for a comprehensive the Bacolod Shrimp Processing Plant:
purpose: to prevent a circumvention of labor laws. The Messengerial/Janitorial, Shrimp Harvesting/Receiving,
contractor is considered merely an agent of the principal and Sanitation/Washing/Cold Storage.
The cooperative shall employ the necessary personnel Thus, it is gathered from the evidence adduced by
and provide adequate equipment, materials, tools and respondents before the LA that their daily time records
apparatus, to efficiently, fully and speedily accomplish were signed by SMC supervisors which fact shows that
the work and services undertaken by the cooperative. SMC exercised the power of control and supervision
The cooperative shall have the entire charge, control over its employees. And control of the premises in which
and supervision of the work and services. There is no private respondents worked was by SMC. These tend to
employer-employee relationship between the company disprove the independence of the contractor.
and the cooperative, or the cooperative and any of its
members, or the company and any members of the 2.4 Liability of Indirect Employer
cooperative. The cooperative shall, whenever possible, • Eparwa Security and Janitorial Services, Inc. v. Liceo
maintain and keep under its control the premises where Cagayan University, 508 SCRA 370 (2007)
the work under this contract shall be performed.
FACTS:
Respondents filed a complaint praying to be declared as On 1 December 1997, Eparwa and LDCU, through their
regular employees of SMC, with claims for recovery representatives, entered into a Contract for Security
of all benefits and privileges enjoyed by SMC rank and Services which states that LCDU undertakes to pay
file employees. Subsequently, they included illegal P5,000 per guard, in consideration of their services.
dismissal as additional cause of action following SMC’s
closure of its Bacolod Shrimp Processing Plant which On 21 December 1998, 11 security guards whom
resulted in the termination of their services. Moreover, Eparwa assigned to LDCU filed a complaint before the
SMC insists that respondents are the employees of NLRC against both Eparwa and LDCU for underpayment
Sunflower, an independent contractor. On the other of salary, legal holiday pay, 13th month pay, rest day,
hand, respondents assert that Sunflower is a labor-only service incentive leave, night shift differential, overtime
contractor. pay, and payment for attorney’s fees.
ISSUE: Is Sunflower an independent contractor?
HELD: NO. The following considerations affirm by more LDCU made a cross-claim and prayed that Eparwa
than substantial evidence the existence of an employer- should reimburse LDCU for any payment to the security
employee relationship between SMC and respondents: guards.
The Contract of Services between SMC and Sunflower
shows that the parties clearly disavowed the existence LA found that the security guards are entitled to wage
of an employer-employee relationship between SMC and differentials and premium for holiday and rest day work.
respondents. The language of a contract is not, The Labor Arbiter also held Eparwa and LDCU solidarily
however, determinative of the parties’ relationship; rather liable pursuant to Article 109 of the Labor Code.
it is the totality of the facts and surrounding
circumstances of the case. A party cannot dictate, by the The NLRC held Eparwa and LDCU solidarily liable for
mere expedient of a unilateral declaration in a contract, the wage differentials and premium for holiday and rest
the character of its business, i.e., whether as labor-only day work but did not require Eparwa to reimburse LDCU
contractor or job contractor, it being crucial that its for its payments to the security guards. Upon an MR, the
character be measured in terms of and determined by NLRC declared that although Eparwa and LDCU are
the criteria set by statute. What appears is that solidarily liable to the security guards for the monetary
Sunflower does not have substantial capitalization or award, LDCU alone is ultimately liable.
investment in the form of tools, equipment, machineries,
work premises and other materials to qualify it as an The CA reinstated the Labor Arbiter’s decision. The
independent contractor. And from the job description appellate court also allowed LDCU to claim
provided by SMC itself, the work assigned to private reimbursement from Eparwa.
respondents was directly related to the aquaculture
operations of SMC. Undoubtedly, the nature of the work ISSUE: Is LDCU alone ultimately liable to the security
performed by respondents in shrimp harvesting, guards for the wage differentials and premium for
receiving and packing formed an integral part of the holiday and rest day pay? - YES
shrimp processing operations of SMC. As for
janitorial and messengerial services, that they are HELD: This Court’s ruling in Eagle Security Agency, Inc.
considered directly related to the principal business of v. NLRC[12] squarely applies to the present case. In
the employer has been jurisprudentially recognized. Eagle, we ruled that:

Furthermore, Sunflower did not carry on an independent This joint and several liability of the contractor
business or undertake the performance of its service and the principal is mandated by the Labor Code to
contract according to its own manner and method, free assure compliance of the provisions therein including the
from the control and supervision of its principal, SMC, statutory minimum wage. The contractor is made liable
its apparent role having been merely to recruit persons by virtue of his status as direct employer. The principal,
to work for SMC. on the other hand, is made the indirect employer of the
contractor’s employees for purposes of paying the
employees their wages should the contractor be unable liability. Given these peculiar circumstances, if PTSI
to pay them. pays the security guards, it cannot claim reimbursement
In the case at bar, it is beyond dispute that the from EAGLE. But in case it is EAGLE that pays them,
security guards are the employees of EAGLE. That they the latter can claim reimbursement from PTSI in lieu of
were assigned to guard the premises of PTSI pursuant an adjustment, considering that the contract had expired
to the latter’s contract with EAGLE and that neither of and had not been renewed.
these two entities paid their wage and allowance
increases under the subject wage orders are also For the security guards, the actual source of the
admitted. payment of their wage differentials and premium for
The solidary liability of PTSI and EAGLE, holiday and rest day work does not matter as long as
however, does not preclude the right of reimbursement they are paid. This is the import of Eparwa and LDCU’s
from his co-debtor by the one who paid. It is with respect solidary liability. Creditors, such as the security guards,
to this right of reimbursement that petitioners can find may collect from anyone of the solidary debtors.
support in the aforecited contractual stipulation and Solidary liability does not mean that, as between
Wage Order provision. themselves, two solidary debtors are liable for only half
The Wage Orders are explicit that payment of the of the payment.
increases are “to be borne” by the principal or client. “To
be borne”, however, does not mean that the principal, LDCU’s ultimate liability comes into play because
PTSI in this case, would directly pay the security guards of the expiration of the Contract for Security Services.
the wage and allowance increases because there is no There is no privity of contract between the security
privity of contract between them. The security guards’ guards and LDCU, but LDCU’s liability to the security
contractual relationship is with their immediate employer, guards remains because of Articles 106, 107 and 109 of
EAGLE. As an employer, EAGLE is tasked, among the Labor Code. Eparwa is already precluded from
others, with the payment of their wages. asking LDCU for an adjustment in the contract price
On the other hand, there existed a contractual because of the expiration of the contract, but Eparwa’s
agreement between PTSI and EAGLE wherein the liability to the security guards remains because of their
former availed of the security services provided by the employer-employee relationship. In lieu of an
latter. In return, the security agency collects from its adjustment in the contract price, Eparwa may claim
client payment for its security services. This payment reimbursement from LDCU for any payment it may make
covers the wages for the security guards and also to the security guards. However, LDCU cannot claim
expenses for their supervision and training, the guards’ any reimbursement from Eparwa for any payment it may
bonds, firearms with ammunitions, uniforms and other make to the security guards.
equipments, accessories, tools, materials and supplies
necessary for the maintenance of a security force.
Premises considered, the security guards’ CHAPTER III – Special Group of Workers/Employee
immediate recourse for the payment of the increases is
with their direct employer, EAGLE. However, in order for 1. OVERSEAS WORKERS
the security agency to comply with the new wage and
allowance rates it has to pay the security guards, the A. Pre-employment, Recruitment and Placement of
Wage Orders made specific provision to amend existing Workers
contracts for security services by allowing the Reference: Arts. 12-42; POEA Rules; Book 1, Rules
adjustment of the consideration paid by the principal to IIIVIII, Omnibus Rules; Migrant Workers and Overseas
the security agency concerned. What the Wage Orders Filipinos Act of 1995 (RA 8042); Anti-Trafficking in
require, therefore, is the amendment of the contract as Persons Act 2003 (RA 9208) and Rules and Regulations
to the consideration to cover the service contractor’s Implementing RA 9208
payment of the increases mandated. In the end,
therefore, ultimate liability for the payment of the 1. Pre-employment Policy – Statement of Objectives,
increases rests with the principal. Art. 12 (a) (f); Const., Art. II, Sec. 9; RA 8042, Sec. 2, 4
In view of the foregoing, the security guards & 5.
should claim the amount of the increases from EAGLE.
Under the Labor Code, in case the agency fails to pay ART. 12. Statement of objectives. - It is the policy of
them the amounts claimed, PTSI should be held the State:
solidarily liable with EAGLE. Should EAGLE pay, it can a) To promote and maintain a state of full employment
claim an adjustment from PTSI for an increase in through improved manpower training, allocation and
consideration to cover the increases payable to the utilization;
security guards. f) To strengthen the network of public employment
However, in the instant case, the contract for offices and rationalize the participation of the private
security services had already expired without being sector in the recruitment and placement of workers,
amended consonant with the Wage Orders. It is also locally and overseas, to serve national development
apparent from a reading of a record that EAGLE does objectives;
not now demand from PTSI any adjustment in the
contract price and its main concern is freeing itself from 1987 Constitution, Art II, Sec. 9
The State shall promote a just and dynamic social order institutions relevant to overseas employment is
that will ensure the prosperity and independence of the recognized and guaranteed.
nation and free the people from poverty through policies
that provide adequate social services, promote full (g) The State recognizes that the ultimate protection to
employment, a rising standard of living, and an improved all migrant workers is the possession of skills. Pursuant
quality of life for all. to this and as soon as practicable, the government shall
deploy and/or allow the deployment only to skilled
Filipino workers.

REPUBLIC ACT NO. 8042 (h) Non-governmental organizations, duly recognized as


SEC. 2. DECLARATION OF POLICIES-- legitimate, are partners of the State in the protection of
(a) In the pursuit of an independent foreign policy and Filipino migrant workers and in the promotion of their
while considering national sovereignty, territorial welfare, the State shall cooperate with them in a spirit of
integrity, national interest and the right to self- trust and mutual respect.
determination paramount in its relations with other
states, the State shall, at all times, uphold the dignity of (I) Government fees and other administrative costs of
its citizens whether in country or overseas, in general, recruitment, introduction, placement and assistance to
and Filipino migrant workers, in particular. migrant workers shall be rendered free without prejudice
to the provision of Section 36 hereof.
(b) The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote Nonetheless, the deployment of Filipino overseas
full employment and equality of employment workers, whether land-based or sea-based by local
opportunities for all. Towards this end, the State shall service contractors and manning agencies employing
provide adequate and timely social, economic and legal them shall be encouraged. Appropriate incentives may
services to Filipino migrant workers. be extended to them.
I. DEPLOYMENT
(c) While recognizing the significant contribution of SEC. 4. Deployment of Migrant Workers - The State
Filipino migrant workers to the national economy through shall deploy overseas Filipino workers only in countries
their foreign exchange remittances, the State does not where the rights of Filipino migrant workers are
promote overseas employment as a means to sustain protected. The government recognizes any of the
economic growth and achieve national development. following as guarantee on the part of the receiving
The existence of the overseas employment program country for the protection and the rights of overseas
rests solely on the assurance that the dignity and Filipino workers:
fundamental human rights and freedoms of the Filipino (a) It has existing labor and social laws protecting the
citizens shall not, at any time, be compromised or rights of migrant workers;
violated. The State, therefore, shall continuously create (b) It is a signatory to multilateral conventions,
local employment opportunities and promote the declaration or resolutions relating to the protection of
equitable distribution of wealth and the benefits of migrant workers;
development. (c) It has concluded a bilateral agreement or
arrangement with the government protecting the rights of
(d) The State affirms the fundamental equality before the overseas Filipino workers; and
law of women and men and the significant role of women (d) It is taking positive, concrete measures to protect the
in nation building. Recognizing the contribution of rights of migrant workers.
overseas migrant women workers and their particular SEC. 5. TERMINATION OR BAN ON DEPLOYMENT -
vulnerabilities, the State shall apply gender sensitive Notwithstanding the provisions of Section 4 hereof, the
criteria in the formulation and implementation of policies government, in pursuit of the national interest or when
and programs affecting migrant workers and the public welfare so requires, may, at any time, terminate or
composition of bodies tasked for the welfare of migrant impose a ban on the deployment of migrant workers.
workers.
2. Private Sector – Agencies and Entities
(e) Free access to the courts and quasi-judicial bodies
and adequate legal assistance shall not be denied to any a. PARTIES
persons by reason of poverty. In this regard, it is 1. Worker – Art. 13 (a); RA 8042, Sec 3(a), as amended
imperative that an effective mechanism be instituted to ART. 13. Definitions. - (a) "Worker" means any member
ensure that the rights and interest of distressed overseas of the labor force, whether employed or unemployed.
Filipinos, in general, and Filipino migrant workers, in
particular, documented or undocumented, are RA 8042, Sec 3(a)
adequately protected and safeguarded. (a) "Migrant worker" refers to a person who is to be
engaged, is engaged or has been engaged in a
(f) The right of Filipino migrant workers and all overseas enumerated activity in a state of which he or she is not a
Filipinos to participate in the democratic decision-making legal resident to be used interchangeably with overseas
processes of the State and to be represented in Filipino worker.
Provided, That any person or entity which, in any
2. Private Employment Agency – Arts. 13 (c) (d), 12 manner, offers or promises for a fee, employment to two
(f), 14 (a) or more persons shall be deemed engaged in
ART. 13. recruitment and placement.
(c) "Private fee-charging employment agency" means 2. Overseas Employment, Sec. 6, RA 8042
any person or entity engaged in recruitment and Sec. 6. DEFINITIONS. - For purposes of this Act, illegal
placement of workers for a fee which is charged, directly recruitment shall mean any act of canvassing, enlisting,
or indirectly, from the workers or employers or both. contracting, transporting, utilizing, hiring, procuring
workers and includes referring, contact services,
(d) "License" means a document issued by the promising or advertising for employment abroad,
Department of Labor authorizing a person or entity to whether for profit or not, when undertaken by a non-
operate a private employment agency. license or non-holder of authority contemplated under
ART. 12. Statement of objectives. - It is the policy of the Article 13(f) of Presidential Decree No. 442, as
State: amended, otherwise known as the Labor Code of the
f) To strengthen the network of public employment Philippines. Provided, that such non-license or non-
offices and rationalize the participation of the private holder, who, in any manner, offers or promises for a fee
sector in the recruitment and placement of workers, employment abroad to two or more persons shall be
locally and overseas, to serve national development deemed so engaged. It shall likewise include the
objectives; following acts, whether committed by any persons,
whether a non-licensee, non-holder, licensee or holder
ART. 14. Employment promotion. – The Secretary of of authority.
Labor shall have the power and authority:
(a) To organize and establish new employment offices in (a) To charge or accept directly or indirectly any amount
addition to the existing employment offices under the greater than the specified in the schedule of allowable
Department of Labor as the need arises; fees prescribed by the Secretary of Labor and
Employment, or to make a worker pay any amount
3. Private Recruitment Entity – Arts. 13 (e) (f), 12 (f), greater than that actually received by him as a loan or
14 (a) advance;
ART. 13.
(e) "Private recruitment entity" means any person or (b) To furnish or publish any false notice or information
association engaged in the recruitment and placement of or document in relation to recruitment or employment;
workers, locally or overseas, without charging, directly or
indirectly, any fee from the workers or employers. (c) To give any false notice, testimony, information or
document or commit any act of misrepresentation for the
(f) "Authority" means a document issued by the purpose of securing a license or authority under the
Department of Labor authorizing a person or association Labor Code
to engage in recruitment and placement activities as a
private recruitment entity (d) To induce or attempt to induce a worker already
. employed to quit his employment in order to offer him
ART. 12. Statement of objectives. - It is the another unless the transfer is designed to liberate a
policy of the State: worker from oppressive terms and conditions of
f) To strengthen the network of public employment employment;
offices and rationalize the participation of the private
sector in the recruitment and placement of workers, (e) To influence or attempt to influence any persons or
locally and overseas, to serve national development entity not to employ any worker who has not applied for
objectives; employment through his agency;

ART. 14. Employment promotion. - The (f) To engage in the recruitment of placement of workers
Secretary of Labor shall have the power and in jobs harmful to public health or morality or to dignity of
authority: the Republic of the Philippines;
(a) To organize and establish new employment offices in
addition to the existing employment offices under the (g) To obstruct or attempt to obstruct inspection by the
Department of Labor as the need arises; Secretary of Labor and Employment or by his duly
authorized representative;
b. RECRUITMENT AND PLACEMENT
1. Local Employment, Art. 13 (b) (h) To fail to submit reports on the status of employment,
ART 13. placement vacancies, and remittances of foreign
(b) "Recruitment and placement" refers to any act of exchange earnings, separations from jobs, departures
canvassing, enlisting, contracting, transporting, utilizing, and such other matters or information as may be
hiring or procuring workers, and includes referrals, required by the Secretary of Labor and Employment;
contract services, promising or advertising for
employment, locally or abroad, whether for profit or not:
(i) To substitute or alter to the prejudice of the worker, ART. 25. Private sector participation in the recruitment
employment contracts approved and verified by the and placement of workers. - Pursuant to national
Department of Labor and Employment from the time of development objectives and in order to harness and
actual signing thereof by the parties up to and including maximize the use of private sector resources and
the period of the expiration of the same without the initiative in the development and implementation of a
approval of the Department of Labor and Employment; comprehensive employment program, the private
employment sector shall participate in the recruitment
(j) For an officer or agent of a recruitment or placement and placement of workers, locally and overseas, under
agency to become an officer or member of the Board of such guidelines, rules and regulations as may be issued
any corporation engaged in travel agency or to be by the Secretary of Labor.
engaged directly on indirectly in the management of a
travel agency;
(k) To withhold or deny travel documents from applicant ART. 12. Statement of objectives. - It is the
workers before departure for monetary or financial policy of the State:
considerations other than those authorized under the
Labor Code and its implementing rules and regulations; f) To strengthen the network of public employment
offices and rationalize the participation of the private
(l) Failure to actually deploy without valid reasons as sector in the recruitment and placement of workers,
determined by the Department of Labor and locally and overseas, to serve national development
Employment; and objectives;

(m) Failure to reimburse expenses incurred by the 2002 POEA Rules & Regulations, Part I, Rule II, Sec. 1
workers in connection with his documentation and Section 1. Qualifications. Only those who possess the
processing for purposes of deployment, in cases where following qualifications may be permitted to engage in
the deployment does not actually take place without the the business of recruitment and placement of Filipino
worker's fault. Illegal recruitment when committed by a workers:
syndicate or in large scale shall be considered as a. Filipino citizens, partnerships or corporations at least
offense involving economic sabotage. seventy five percent (75%) of the authorized capital
stock of which is owned and controlled by Filipino
Illegal recruitment is deemed committed by a syndicate citizens;
carried out by a group of three (3) or more persons b. A minimum capitalization of Two Million Pesos
conspiring or confederating with one another. It is (P2,000,000.00) in case of a single proprietorship
deemed committed in large scale if committed against or partnership and a minimum paid-up capital of Two
three (3) or more persons individually or as a group. Million Pesos (P2,000,000.00) in case of a corporation;
Provided that those with existing licenses shall, within
The persons criminally liable for the above offenses are four years from effectivity hereof, increase their
the principals, accomplices and accessories. In case of capitalization or paid up capital, as the case may be, to
juridical persons, the officers having control, Two Million Pesos (P2,000,000.00) at the rate of Two
management or direction of their business shall be Hundred Fifty Thousand Pesos (P250,000.00) every
liable. year.
c. Those not otherwise disqualified by law or other
c. ALLOWED AND PROTECTED ENTITIES government regulations to engage in the
1) Allowed Private Agencies and Entities, Arts. 16, recruitment and placement of workers for overseas
18, 25, 12 (f); 2002 POEA Rules & Regulations, Part I, employment.
Rule II, Sec. 2

ART. 16. Private recruitment. - Except as provided in 2. Prohibited Business Agencies and Entities,
Chapter II of this Title, no person or entity other than the Arts.16, 18, 25, 26; 2002 POEA Rules & Regulations,
public employment offices, shall engage in the Part I, Rule II, Sec. 2
recruitment and placement of workers.
ART. 16. Private recruitment. - Except as provided in
ART. 18. Ban on direct-hiring. - No employer may hire a Chapter II of this Title, no person or entity other than
Filipino worker for overseas employment except through the public employment offices, shall engage in the
the Boards and entities authorized by the Secretary of recruitment and placement of workers.
Labor.
ART. 18. Ban on direct-hiring. - No employer may hire
Direct-hiring by members of the diplomatic corps, a Filipino worker for overseas employment except
international organizations and such other employers as through the Boards and entities authorized by the
may be allowed by the Secretary of Labor is exempted Secretary of Labor. Direct-hiring by members of the
from this provision. 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 • Hornales v. NLRC, 364 SCRA 778 (2001)
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.

2002 POEA Rules & Regulations, Part I, Rule II, Sec. 2


Section 2. Disqualification. The following are not
qualified to engage in the business of recruitment and
placement of Filipino workers overseas:
a. Travel agencies and sales agencies of airline
companies;
b. Officers or members of the Board of any corporation
or members in a partnership engaged in the business of
a travel agency;
c. Corporations and partnerships, when any of its
officers, members of the board or partners, is also an
officer, member of the board or partner of a corporation
or partnership engaged in the business of a travel
agency;
d. Persons, partnerships or corporations which have
derogatory records, such as but not limited to the
following:
1) Those certified to have derogatory record or
information by the National Bureau of Investigation or by
the Anti-Illegal Recruitment Branch of the POEA;
2) Those against whom probable cause or prima facie
finding of guilt for illegal recruitment or other related
cases exists;
3) Those convicted for illegal recruitment or other related
cases and/or crimes involving moral turpitude; and
4) Those agencies whose licenses have been previously
revoked or cancelled by the Administration for violation
of RA 8042, PD 442 as amended and their implementing
rules and regulations as well as these rules and
regulations.
All applicants for issuance/renewal of license shall be
required to submit clearances from the National Bureau
of Investigation and Anti-illegal Recruitment Branch,
POEA, including clearances for their respective officers
and employees.
e. Any official or employee of the DOLE, POEA, OWWA,
DFA and other government agencies directly involved in
the implementation of R.A. 8042, otherwise known as
Migrant Workers and Overseas Filipino Act of 1995
and/or any of his/her relatives within the fourth civil d. GOVERNMENT TECHNIQUES OF REGULATION –
degree of consanguinity or affinity; and PRIVATE RECRUITMENT
f. Persons or partners, officers and Directors of 1. Licensing
corporations whose licenses have been previously
cancelled or revoked for violation of recruitment laws
a. Qualifications Arts. 27, 28, 29, 30, 31, 2002 POEA Two Million Pesos (P2,000,000.00) at the rate of Two
Rules and Regulations, Part II, Rule I, Section 1 (a) (b) Hundred Fifty Thousand Pesos (P250,000.00) every
year.
ART. 27. Citizenship requirement. – Only Filipino c. Those not otherwise disqualified by law or other
citizens or corporations, partnerships or entities at least government regulations to engage in the recruitment and
seventy-five percent (75%) of the authorized and voting placement of workers for overseas employment.
capital stock of which is owned and controlled by Filipino
citizens shall be permitted to participate in the b. Issuance of License Arts. 29, 30, 31; 2002 POEA
recruitment and placement of workers, locally or Rules and Regulations, Part II, Rule II, Secs. 4, 5, 6, 7, 8
overseas. &9

ART. 28. Capitalization. - All applicants for authority to ART. 29. Non-transferability of license or authority.-
hire or renewal of license to recruit are required to have No license or authority shall be used directly or indirectly
such substantial capitalization as determined by the by any person other than the one in whose favor it was
Secretary of Labor issued or at any place other than that stated in the
license or authority be transferred, conveyed or assigned
ART. 29. Non-transferability of license or authority.- to any other person or entity. Any transfer of business
No license or authority shall be used directly or indirectly address, appointment or designation of any agent or
by any person other than the one in whose favor it was representative including the establishment of additional
issued or at any place other than that stated in the offices anywhere shall be subject to the prior approval of
license or authority be transferred, conveyed or assigned the Department of Labor.
to any other person or entity. Any transfer of business
address, appointment or designation of any agent or ART. 30. Registration fees.- The Secretary of Labor shall
representative including the establishment of additional promulgate a schedule of fees for the registration of all
offices anywhere shall be subject to the prior approval of applicants for license or authority.
the Department of Labor.
ART. 31. Bonds. - All applicants for license or authority
ART. 30. Registration fees.- The Secretary of Labor shall shall post such cash and surety bonds as determined by
promulgate a schedule of fees for the registration of all the Secretary of Labor to guarantee compliance with
applicants for license or authority. prescribed recruitment procedures, rules and
regulations, and terms and conditions of employment as
ART. 31. Bonds. - All applicants for license or authority may be appropriate.
shall post such cash and surety bonds as determined by
the Secretary of Labor to guarantee compliance with POEA Rules and Regulations, Part II, Rule II, Secs. 4, 5,
prescribed recruitment procedures, rules and 6, 7, 8 & 9
regulations, and terms and conditions of employment as
may be appropriate. RULE II
ISSUANCE OF LICENSE
2002 POEA rules and Regulations, Part II, Rule I, Section 4. Payment of Fees and Posting of Bonds.
Section (a) (b) Upon approval of the application, the applicant shall pay
a license fee of P50,000.00. It shall submit an Escrow
PART II Agreement in the amount of P1,000,000.00, confirmation
LICENSING AND REGULATION of escrow deposit with an accredited reputable bank and
RULE I a surety bond of P100,000.00 from a bonding company
PARTICIPATION OF THE PRIVATE SECTOR IN THE acceptable to the Administration and accredited with the
OVERSEAS EMPLOYMENT PROGRAM Insurance Commission. Agencies with existing licenses
shall, within four years from effectivity hereof, increase
Section 1. Qualifications. Only those who possess the their Escrow Deposit to One Million Pesos .
following qualifications may be permitted to engage in
the business of recruitment and placement of Filipino The bonds and escrow shall answer for all valid and
workers: legal claims arising from violations of the conditions for
a. Filipino citizens, partnerships or corporations at least the grant and use of the license, and/or accreditation
seventy five percent (75%) of the authorized capital and contracts of employment.
stock of which is owned and controlled by Filipino
citizens; The bonds and escrow shall likewise guarantee
b. A minimum capitalization of Two Million Pesos compliance with the provisions of the Code and its
(P2,000,000.00) in case of a single proprietorship or implementing rules and regulations relating to
partnership and a minimum paid-up capital of Two recruitment and placement, the Rules of the
Million Pesos (P2,000,000.00) in case of a corporation; Administration and relevant issuances of the Department
Provided that those with existing licenses shall, within and all liabilities which the Administration may impose.
four years from effectivity hereof, increase their The surety bonds shall include the condition “that notice
capitalization or paid up capital, as the case may be, to to the principal is notice to the surety and that any
judgment against the principal in connection with matters
falling under POEA’s/NLRC’s jurisdiction shall be binding 2. Worker’s Fees, Art. 32
and conclusive on the surety. The surety bonds shall ART. 32. Fees to be paid by workers. – Any person
cover the validity period of the license. applying with a private fee-charging employment agenc
y for employment assistance shall not be charged an
Section 5. Provisional License. Applicants for new y fee until he has obtained employment through its
license shall be issued a provisional license which shall efforts or has actually commenced employment. Such
be valid for a limited period of one (1) year within which fee shall be always covered with the appropriate receipt
the applicant should be able to comply with its clearly showing the amount paid. The Secretary of Labor
undertaking to deploy 100 workers to its new principal. shall promulgate a schedule ofallowable fees.
The license of a complying agency shall be upgraded to
a full license entitling them to another three years of 3. Reports/Employment Information, Arts.33, 14 (d)
operation. Non-complying agencies will be notified of the ART. 33. Reports on employment status. -Whenever the
expiration of their license. public interest requires, the Secretary of Labor may
direct all persons or entities within the coverage of this
Section 6. Validity of the License. Except in case of a Title to submit a report on the status of employment,
provisional license, every license shall be valid for four including job vacancies, details of job requisitions,
(4) years from the date of issuance unless sooner separation from jobs, wages, other terms and conditions
cancelled, revoked or suspended for violation of and other employment data.
applicable Philippine law, these rules and other pertinent ART. 14. Employment promotion. – The Secretary of
issuances. Such license shall be valid only at the place/s Labor shall have the power and authority
stated therein and when used by the licensed person, (d) To require any person, establishment, organization or
partnership or corporation. institution to submit such employment information as ma
y be prescribed by the Secretary of Labor.
Section 7. Non-Transferability of License. No license
shall be transferred, conveyed or assigned to ny person, 4. Illegal Recruitments, Art. 34, 38, RA 8042, Sec. 6 &
partnership or corporation. It shall not be used directly or 7 as amended, 8, 9, 10 as amended, 11, 12.
indirectly by any person, partnership or corporation other
than the one in whose favor it was issued. In case of Article 34. Prohibited practices. It shall be unlawful for
death of the sole proprietor and to prevent disruption of any individual, entity, licensee, or holder of authority:
operation to the prejudice of the interest of legitimate
heirs, the license may be extended upon request of the To charge or accept, directly or indirectly, any amount
heirs, to continue only for the purpose of winding up greater than that specified in the schedule of allowable
business operations. fees prescribed by the Secretary of Labor, or to make a
worker pay any amount greater than that actually
Section 8. Change of Ownership/Relationship of Single received by him as a loan or advance;
Proprietorship or Partnership. Transfer or change of
ownership of a single proprietorship licensed to engage To furnish or publish any false notice or information or
in overseas employment shall cause the automatic document in relation to recruitment or employment;
revocation of the license.
To give any false notice, testimony, information or
A change in the relationship of the partners in a document or commit any act of misrepresentation for the
partnership duly licensed to engage in overseas purpose of securing a license or authority under this
employment which materially interrupts the course of the Code.
business or results in the actual dissolution
of the partnership shall likewise cause the automatic To induce or attempt to induce a worker already
revocation of the license. employed to quit his employment in order to offer him to
another unless the transfer is designed to liberate the
Section 9. Upgrading of Single Proprietorship or worker from oppressive terms and conditions of
Partnerships. License holders which are single employment;
proprietorships or partnerships may, subject to the
guidelines of the Administration, convert into corporation To influence or to attempt to influence any person or
for purposes of upgrading or raising their capabilities to entity not to employ any worker who has not applied for
respond adequately to developments/changes in the employment through his agency;
international labor market and to enable them to better
comply with their responsibilities arising from the To engage in the recruitment or placement of workers in
recruitment and deployment of workers overseas. jobs harmful to public health or morality or to the dignity
The approval of merger, consolidation or upgrading shall of the Republic of the Philippines;
automatically revoke or cancel the licenses of the single
proprietorships, partnerships or corporations so merged, To obstruct or attempt to obstruct inspection by the
consolidated or Secretary of Labor or by his duly authorized
upgraded. representatives;
SEC. 6. Definition. - For purposes of this Act, illegal
To fail to file reports on the status of employment, recruitment shall mean any act of canvassing, enlisting,
placement vacancies, remittance of foreign exchange contracting, transporting, utilizing, hiring, or procuring
earnings, separation from jobs, departures and such workers and includes referring, contract services,
other matters or information as may be required by the promising or advertising for employment abroad,
Secretary of Labor. whether for profit or not, when undertaken by non-
licensee or non-holder of authority contemplated under
To substitute or alter employment contracts approved Article 13(f) of Presidential Decree No. 442, as
and verified by the Department of Labor from the time of amended, otherwise known as the Labor Code of the
actual signing thereof by the parties up to and including Philippines: Provided, That any such non-licensee or
the periods of expiration of the same without the non-holder who, in any manner, offers or promises for a
approval of the Secretary of Labor; fee employment abroad to two or more persons shall be
deemed so engaged. It shall likewise include the
To become an officer or member of the Board of any following acts, whether committed by any person,
corporation engaged in travel agency or to be engaged whether a non-licensee, non-holder, licensee or holder
directly or indirectly in the management of a travel of authority:
agency; and
"(a) To charge or accept directly or indirectly any amount
To withhold or deny travel documents from applicant greater than that specified in the schedule of allowable
workers before departure for monetary or financial fees prescribed by the Secretary of Labor and
considerations other than those authorized under this Employment, or to make a worker pay or acknowledge
Code and its implementing rules and regulations. any amount greater than that actually received by him as
a loan or advance;
Article 38. Illegal recruitment.
"(b) To furnish or publish any false notice or information
Any recruitment activities, including the prohibited or document in relation to recruitment or employment;
practices enumerated under Article 34 of this Code, to
be undertaken by non-licensees or non-holders of "(c) To give any false notice, testimony, information or
authority, shall be deemed illegal and punishable under document or commit any act of misrepresentation for the
Article 39 of this Code. The Department of Labor and purpose of securing a license or authority under the
Employment or any law enforcement officer may initiate Labor Code, or for the purpose of documenting hired
complaints under this Article. workers with the POEA, which include the act of
reprocessing workers through a job order that pertains to
Illegal recruitment when committed by a syndicate or in nonexistent work, work different from the actual
large scale shall be considered an offense involving overseas work, or work with a different employer
economic sabotage and shall be penalized in whether registered or not with the POEA;
accordance with Article 39 hereof.
"(d) To include or attempt to induce a worker already
Illegal recruitment is deemed committed by a syndicate if employed to quit his employment in order to offer him
carried out by a group of three (3) or more persons another unless the transfer is designed to liberate a
conspiring and/or confederating with one another in worker from oppressive terms and conditions of
carrying out any unlawful or illegal transaction, employment;
enterprise or scheme defined under the first paragraph
hereof. Illegal recruitment is deemed committed in large "(e) To influence or attempt to influence any person or
scale if committed against three (3) or more persons entity not to employ any worker who has not applied for
individually or as a group. employment through his agency or who has formed,
joined or supported, or has contacted or is supported by
The Secretary of Labor and Employment or his duly any union or workers' organization;
authorized representatives shall have the power to
cause the arrest and detention of such non-licensee or "(f) To engage in the recruitment or placement of
non-holder of authority if after investigation it is workers in jobs harmful to public health or morality or to
determined that his activities constitute a danger to the dignity of the Republic of the Philippines;
national security and public order or will lead to further
exploitation of job-seekers. The Secretary shall order the "(h) To fail to submit reports on the status of
search of the office or premises and seizure of employment, placement vacancies, remittance of foreign
documents, paraphernalia, properties and other exchange earnings, separation from jobs, departures
implements used in illegal recruitment activities and the and such other matters or information as may be
closure of companies, establishments and entities found required by the Secretary of Labor and Employment;
to be engaged in the recruitment of workers for overseas
employment, without having been licensed or authorized "(i) To substitute or alter to the prejudice of the worker,
to do so. 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 designated medical clinics, institutions, entities or
the period of the expiration of the same without the persons, except in the case of a seafarer whose medical
approval of the Department of Labor and Employment; examination cost is shouldered by the
principal/shipowner;
"(j) For an officer or agent of a recruitment or placement
agency to become an officer or member of the Board of "(5) Impose a compulsory and exclusive arrangement
any corporation engaged in travel agency or to be whereby an overseas Filipino worker is required to
engaged directly or indirectly in the management of undergo training, seminar, instruction or schooling of any
travel agency; kind only from specifically designated institutions,
entities or persons, except fpr recommendatory trainings
"(k) To withhold or deny travel documents from applicant mandated by principals/shipowners where the latter
workers before departure for monetary or financial shoulder the cost of such trainings;
considerations, or for any other reasons, other than
those authorized under the Labor Code and its "(6) For a suspended recruitment/manning agency to
implementing rules and regulations; engage in any kind of recruitment activity including the
processing of pending workers' applications; and
"(l) Failure to actually deploy a contracted worker without
valid reason as determined by the Department of Labor "(7) For a recruitment/manning agency or a foreign
and Employment; principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment of
"(m) Failure to reimburse expenses incurred by the the cost of insurance fees, premium or other insurance
worker in connection with his documentation and related charges, as provided under the compulsory
processing for purposes of deployment, in cases where worker's insurance coverage.
the deployment does not actually take place without the
worker's fault. Illegal recruitment when committed by a "The persons criminally liable for the above offenses are
syndicate or in large scale shall be considered an the principals, accomplices and accessories. In case of
offense involving economic sabotage; and juridical persons, the officers having ownership, control,
management or direction of their business who are
"(n) To allow a non-Filipino citizen to head or manage a responsible for the commission of the offense and the
licensed recruitment/manning agency. responsible employees/agents thereof shall be liable.

"Illegal recruitment is deemed committed by a syndicate "In the filing of cases for illegal recruitment or any of the
if carried out by a group of three (3) or more persons prohibited acts under this section, the Secretary of Labor
conspiring or confederating with one another. It is and Employment, the POEA Administrator or their duly
deemed committed in large scale if committed against authorized representatives, or any aggrieved person
three (3) or more persons individually or as a group. may initiate the corresponding criminal action with the
appropriate office. For this purpose, the affidavits and
"In addition to the acts enumerated above, it shall also testimonies of operatives or personnel from the
be unlawful for any person or entity to commit the Department of Labor and Employment, POEA and other
following prohibited acts: law enforcement agencies who witnessed the acts
constituting the offense shall be sufficient to prosecute
"(1) Grant a loan to an overseas Filipino worker with the accused.
interest exceeding eight percent (8%) per annum, which
will be used for payment of legal and allowable "In the prosecution of offenses punishable under this
placement fees and make the migrant worker issue, section, the public prosecutors of the Department of
either personally or through a guarantor or Justice shall collaborate with the anti-illegal recruitment
accommodation party, postdated checks in relation to branch of the POEA and, in certain cases, allow the
the said loan; POEA lawyers to take the lead in the prosecution. The
POEA lawyers who act as prosecutors in such cases
"(2) Impose a compulsory and exclusive arrangement shall be entitled to receive additional allowances as may
whereby an overseas Filipino worker is required to avail be determined by the POEA Administrator.
of a loan only from specifically designated institutions,
entities or persons; "The filing of an offense punishable under this Act shall
be without prejudice to the filing of cases punishable
"(3) Refuse to condone or renegotiate a loan incurred by under other existing laws, rules or regulations.
an overseas Filipino worker after the latter's employment
contract has been prematurely terminated through no SEC. 7. Penalties. -
fault of his or her own; "(a) Any person found guilty of illegal recruitment shall
suffer the penalty of imprisonment of not less than
"(4) Impose a compulsory and exclusive arrangement twelve (12) years and one (1) day but not more than
whereby an overseas Filipino worker is required to twenty (20) years and a fine of not less than One million
undergo health examinations only from specifically
pesos (P1,000,000.00) nor more than Two million pesos forms of damage. Consistent with this mandate, the
(P2,000,000.00). NLRC shall endeavor to update and keep abreast with
the developments in the global services industry.
"(b) The penalty of life imprisonment and a fine of not
less than Two million pesos (P2,000,000.00) nor more "The liability of the principal/employer and the
than Five million pesos (P5,000,000.00) shall be recruitment/placement agency for any and all claims
imposed if illegal recruitment constitutes economic under this section shall be joint and several. This
sabotage as defined therein. provision shall be incorporated in the contract for
overseas employment and shall be a condition
"Provided, however, That the maximum penalty shall be precedent for its approval. The performance bond to de
imposed if the person illegally recruited is less than filed by the recruitment/placement agency, as provided
eighteen (18) years of age or committed by a non- by law, shall be answerable for all money claims or
licensee or non-holder of authority. damages that may be awarded to the workers. If the
recruitment/placement agency is a juridical being, the
"(c) Any person found guilty of any of the prohibited acts corporate officers and directors and partners as the case
shall suffer the penalty of imprisonment of not less than may be, shall themselves be jointly and solidarily liable
six (6) years and one (1) day but not more than twelve with the corporation or partnership for the aforesaid
(12) years and a fine of not less than Five hundred claims and damages.
thousand pesos (P500,000.00) nor more than One
million pesos (P1,000,000.00). "Such liabilities shall continue during the entire period or
duration of the employment contract and shall not be
"If the offender is an alien, he or she shall, in addition to affected by any substitution, amendment or modification
the penalties herein prescribed, be deported without made locally or in a foreign country of the said contract.
further proceedings.
"Any compromise/amicable settlement or voluntary
"In every case, conviction shall cause and carry the agreement on money claims inclusive of damages under
automatic revocation of the license or registration of the this section shall be paid within thirty (30) days from
recruitment/manning agency, lending institutions, approval of the settlement by the appropriate authority.
training school or medical clinic.
"In case of termination of overseas employment without
SEC. 8. PROHIBITION ON OFFICIALS AND just, valid or authorized cause as defined by law or
EMPLOYEES. - Ot shall be unlawful for any official or contract, or any unauthorized deductions from the
employee of the Department of Labor and Employment, migrant worker's salary, the worker shall be entitled to
the Philippine Overseas Employment Administration, or the full reimbursement if his placement fee and the
the Overseas Workers Welfare Administration, or the deductions made with interest at twelve percent (12%)
Department of Foreign Affairs, or other government per annum, plus his salaries for the unexpired portion of
agencies involved in the implementation of this Act, or his employment contract or for three (3) months for
their relatives within the fourth civil degree of every year of the unexpired term, whichever is less.
consanguinity or affinity, to engage, directly or indirectly,
in the business of recruiting migrant workers as defined "In case of a final and executory judgement against a
in this Act. The penalties shall be imposed upon them. foreign employer/principal, it shall be automatically
disqualified, without further proceedings, from
SEC. 9. VENUE. - A criminal action arising from illegal participating in the Philippine Overseas Employment
recruitment as defined herein shall be filed with the Program and from recruiting and hiring Filipino workers
Regional Trial Court of the province or city where the until and unless it fully satisfies the judgement award.
offense was committed or where the offended party
actually resides at the same time of the commission of "Noncompliance with the mandatory periods for
the offense: Provided, That the court where the criminal resolutions of case provided under this section shall
action is first filed shall acquire jurisdiction to the subject the responsible officials to any or all of the
exclusion of other courts. Provided, however, That the following penalties:
aforestated provisions shall also apply to those criminal
actions that have already been filed in court at the time "(a) The salary of any such official who fails to render his
of the effectivity of this Act. decision or resolution within the prescribed period shall
SEC. 10. Money Claims. - Notwithstanding any provision be, or caused to be, withheld until the said official
of law to the contrary, the Labor Arbiters of the National complies therewith;
Labor Relations Commission (NLRC) shall have the
original and exclusive jurisdiction to hear and decide, "(b) Suspension for not more than ninety (90) days; or
within ninety (90) calendar days after the filing of the
complaint, the claims arising out of an employer- "(c) Dismissal from the service with disqualification to
employee relationship or by virtue of any law or contract hold any appointive public office for five (5) years.
involving Filipino workers for overseas deployment
including claims for actual, moral, exemplary and other
"Provided, however, That the penalties herein provided Cabigao‘s retraction. The Court of Appeals affirmed the
shall be without prejudice to any liability which any such decision of the trial court on all accounts. Hence, the
official may have incured under other existing laws or present petition.
rules and regulations as a consequence of violating the
provisions of this paragraph." ISSUE: Whether or not the retraction of Cabigao should
be given weight
SEC. 11. MANADATORY PERIODS FOR
RESOLUTION OF ILLEGAL RECRUITMENT CASES. - HELD: That one of the original complaining witnesses,
The preliminary investigations of cases under this Act Cabigao, later recanted, via an affidavit and his
shall be terminated within a period of thirty (30) calendar testimony in open court, does not necessarily cancel an
days from the date of their filing. Where the preliminary earlier declaration. Like any other testimony, the same is
investigation is conducted by a prosecution officer and a subject to the test of credibility and should be received
prima facie case is established, the corresponding with caution. For a testimony solemnly given in court
information shall be filed in court within twenty-four (24) should not be set aside lightly, least of all by a mere
hours from the termination of the investigation. If the affidavit executed after the lapse of considerable time. In
preliminary investigation is conducted by a judge and a the case at bar, the Affidavit of Recantation was
prima facie case is found to exist, prosecution officer executed three years after the complaint was filed. It is
within forty-eight (48) hours from the date of receipt of thus not unreasonable to consider his retraction an
the records of the case. afterthought to deny its probative value.

SEC. 12. PRESCRIPTIVE PERIODS. - Illegal At all events, and even with Cabigao‘s recantation, the
recruitment cases under this Act shall prescribe in five Supreme Court finds that the prosecution evidence
(5) years: Provided, however, That illegal recruitment consisting of the testimonies of the four other
cases involving economic sabotage as defined herein complainants, whose credibility has not been impaired,
shall prescribe in twenty (20) years. has not been overcome.

a. Prohibited Practices • People v. Gallo 616 SCRA 162 (2010)

b. Undertaken by non-licensees, non-holders PEOPLE OF THE PHILIPPINES, Petitioner,


vs. RODOLFO GALLO y GADOT, Accused-Appellant,
• People v. Domingo 584 SCRA 669 (2009) FIDES PACARDO y JUNGCO and PILAR MANTA y
DUNGO, Accused.
PEOPLE OF THE PHILIPPINES v. LARRY “LAURO”
DOMINGO 584 SCRA 669 (2009), SECOND DIVISION Facts: Accused-appellant Gallo... were charged with
(Carpio Morales, J.) syndicated illegal recruitment and eighteen (18) counts
of estafa. after trial, accused-appellant was found guilty
A testimony solemnly given in court should not be set beyond reasonable doubt... for syndicated illegal
aside lightly, least of all by a mere affidavit executed recruitment and estafa, respectively.
after the lapse of considerable time.
The present appeal concerns solely accused-appellant's
FACTS: Appellant Larry Domingo (Domingo) was conviction for syndicated illegal recruitment... and for
charged with Illegal Recruitment (Large Scale) and two estafa... the said accused... representing themselves to
(2) counts of Estafa before Regional Trial Court (RTC) of have the capacity to... contract, enlist and transport
Malolos, Bulacan. Domingo, denied all the accusations Filipino workers for employment abroad... and promise
against him and claimed that he was a driver hired by employment/job placement abroad... in Korea as factory
the real recruiter, Gimeno, whom he met inside the workers... and charge or accept directly or indirectly...
Victory Liner Bus bound for Manila in September, 2000 from... the amount of P30,000.00
Domingo likewise presented as witnesses private
complainants Enrico Espiritu and Roberto Castillo who P120,000.00 as placement fees... and without valid
corroborated his claim that it was Gimeno who actually reasons and without the... fault of the said complainants
recruited them, and that the filing of the complaint failed to actually deploy them and failed to reimburse the
against appellant was a desperate attempt on their part expenses incurred by the said complainants in
to get even because Gimeno could not be located. connection with their documentation and processing for
Prosecution witness Simeon Cabigao (Cabigao) testified purposes of their deployment.
that he was among those who were recruited by Accused-appellant avers that he cannot be held
Domingo, but he later on recanted his testimony. By criminally liable for illegal recruitment because he was
Joint Decision, the trial court found Domingo guilty neither an officer nor an employee of the recruitment
beyond reasonable doubt of Illegal Recruitment (Large agency.
Scale) and of 2 counts of Estafa.
He alleges that the trial court erred in adopting the
On appeal to the Court of Appeals, Domingo maintained asseveration of the private complainant that he was
that the trial court erred for failing to give weight to
indeed... an employee because such was not duly active involvement of each in the recruitment scam was
supported by competent evidence. directed at one single purpose

Issues: To divest complainants with their money on the pretext


of guaranteed employment abroad.
The court a quo gravely erred in finding the accused-
appellant guilty of illegal recruitment committed by a √
syndicate despite the failure of the prosecution to prove FACTS: Originally, accused-appellant Gallo and
the same beyond reasonable doubt. accused Fides Pacardo (“Pacardo”) and Pilar Manta
(“Manta”), together with Mardeolyn Martir (“Mardeolyn”)
Ruling: and nine (9) others [including herein accused-appellant,
were charged with syndicated illegal recruitment and
We disagree. eighteen (18) counts of estafa committed against
eighteen complainants.
To commit syndicated illegal recruitment, three elements
must be established: (1) the offender undertakes either NOTE: Basta ang nangyari, the trial proceeded while
any activity within the meaning of "recruitment and some of the accused were at large. Some cases were
placement" defined under Article 13(b), or any of the provisionally dismissed due to non-appearance. Pacardo
prohibited practices enumerated under Art. 34 of the and Manta were acquitted. While herein accused-
Labor appellant (GALLO) was convicted for syndicated illegal
recruitment. Hence, this appeal by Gallo alone.
Code; (2) he has no valid license or authority required by
law to enable one to lawfully engage in recruitment and In Criminal Case No. 02-206293, the information
placement of workers;... and (3) the illegal recruitment is charges the accused-appellant, together with the others,
committed by a group of three (3) or more persons as follows:
conspiring or confederating with... one another.
The undersigned accuses xxx of a violation of Section
We believe that the prosecution was able to establish 6(a), (l) and (m) of Republic Act 8042, otherwise known
the elements of the offense sufficiently. The evidence as the Migrant Workers and Overseas Filipino Workers
readily reveals that MPM Agency was never licensed by Act of 1995, committed by a syndicate and in large
the POEA to recruit workers for overseas employment. scale,

In the instant case,... Testimonial evidence presented by When arraigned GALLO pleaded not guilty; pre-trial was
the prosecution clearly shows that, in consideration of a terminated and trial ensued, thereafter.
promise of foreign employment, accused-appellant
received the amount of Php 45,000.00 from VERSION OF THE PROSECUTION: Dela Caza was
introduced by Eleanor Panuncio to accused-appellant
Dela Caza. When accused-appellant made Gallo, Pacardo, Manta, Mardeolyn, Lulu Mendanes, Yeo
misrepresentations concerning the agency's purported Sin Ung and another Korean national at the office of
power and authority to recruit for overseas employment, MPM International Recruitment and Promotion Agency
and in the process, collected money in the guise of (“MPM Agency”) located in Malate, Manila; Other
placement fees, the former clearly committed acts accused were introduced as board members, officers
constitutive of illegal... recruitment. and employees of MPM.

Additionally, accused-appellant cannot argue that the Accused-appellant Gallo then introduced himself as a
trial court erred in finding that he was indeed an relative of Mardeolyn and informed Dela Caza that the
employee of the recruitment agency. On the contrary, his agency was able to send many workers abroad.
active participation in the illegal recruitment is Together with Pacardo and Manta, he also told Dela
unmistakable. The fact that he was the one who issued Caza about the placement fee of One Hundred Fifty
and signed... the official receipt belies his profession of Thousand Pesos (PhP 150,000) with a down payment of
innocence. Forty-Five Thousand Pesos (PhP 45,000) and the
balance to be paid through salary deduction; Dela Caza,
This Court likewise finds the existence of a conspiracy together with the other applicants, were briefed.
between the accused-appellant and the other persons in
the agency who are currently at large, resulting in the With accused-appellant’s assurance that many workers
commission of the crime of syndicated illegal have been sent abroad, as well as the presence of the
recruitment. two (2) Korean nationals and upon being shown the
visas procured for the deployed workers, Dela Caza was
It cannot be denied that the accused-appellent together convinced to part with his money. Thus, on May 29,
with... the rest of the officers and employees of MPM 2001, he paid Forty-Five Thousand Pesos (PhP 45,000)
Agency participated in a network of deception. Verily, the to MPM Agency through accused-appellant Gallo.
Two (2) weeks after paying MPM Agency, Dela Caza three (3) or more persons individually or as a group, it is
went back to the agency’s office in Malate, Manila only considered an offense involving economic sabotage.
to discover that the office had moved to a new location
at Batangas Street, Brgy. San Isidro, Makati. He After a thorough review of the records, we believe that
proceeded to the new address and found out that the the prosecution was able to establish the elements of the
agency was renamed to New Filipino Manpower offense sufficiently. The evidence readily reveals that
Development & Services, Inc. (“New Filipino”). MPM Agency was never licensed by the POEA to recruit
workers for overseas employment.
Dela Caza decided to withdraw his application and
recover the amount he paid; Gallo even denied any Even with a license, however, illegal recruitment could
knowledge about the money. After two (2) more months still be committed under Section 6 of Republic Act No.
of waiting in vain to be deployed, Dela Caza and the 8042 (“R.A. 8042”), otherwise known as the Migrants
other applicants decided to take action. and Overseas Filipinos Act of 1995 (See Notes).

VERSION OF THE DEFENSE: For his defense, In the instant case, accused-appellant committed the
accused-appellant denied having any part in the acts enumerated in Sec. 6 of R.A. 8042. Testimonial
recruitment of Dela Caza. In fact, he testified that he also evidence presented by the prosecution clearly shows
applied with MPM Agency for deployment to Korea as a that, in consideration of a promise of foreign
factory worker; in order to facilitate the processing of his employment, accused-appellant received the amount of
papers, he agreed to perform some tasks for the agency, Php 45,000.00 from Dela Caza. When accused-
such as taking photographs of the visa and passport of appellant made misrepresentations concerning the
applicants, running errands and performing such other agency’s purported power and authority to recruit for
tasks assigned to him, without salary except for some overseas employment, and in the process, collected
allowance. He said that he only saw Dela Caza one or money in the guise of placement fees, the former clearly
twice at the agency’s office when he applied for work committed acts constitutive of illegal recruitment.
abroad. Lastly, that he was also promised deployment
abroad but it never materialized. Essentially, Dela Caza appeared very firm and
consistent in positively identifying accused-appellant as
DEVELOPMENT OF THE CASE: RTC rendered its one of those who induced him and the other applicants
Decision convicting the accused of syndicated illegal to part with their money. His testimony showed that
recruitment and estafa; CA affirmed; accused-appellant accused-appellant made false misrepresentations and
filed a timely appeal before this Court. promises in assuring them that after they paid the
placement fee, jobs in Korea as factory workers were
ISSUE: WON accused-appellant is guilty of illegal waiting for them and that they would be deployed soon.
recruitment committed by a syndicate and estafa.
On the contrary, his active participation in the illegal
HELD: YES recruitment is unmistakable. The fact that he was the
one who issued and signed the official receipt belies his
The appeal has no merit. profession of innocence.

Accused-appellant avers that he cannot be held This Court likewise finds the existence of a conspiracy
criminally liable for illegal recruitment because he was between the accused-appellant and the other persons in
neither an officer nor an employee of the recruitment the agency who are currently at large, resulting in the
agency. He alleges that the trial court erred in adopting commission of the crime of syndicated illegal
the asseveration of the private complainant that he was recruitment. Verily, the active involvement of each in the
indeed an employee because such was not duly recruitment scam was directed at one single purpose –
supported by competent evidence. to divest complainants with their money on the pretext of
guaranteed employment abroad.
We disagree.
Estafa
To commit syndicated illegal recruitment, three elements
must be established: (1) the offender undertakes either The prosecution likewise established that accused-
any activity within the meaning of “recruitment and appellant is guilty of the crime of estafa as defined under
placement” defined under Article 13(b), or any of the Article 315 paragraph 2(a) of the Revised Penal Code
prohibited practices enumerated under Art. 34 of the (See notes)
Labor Code; (2) he has no valid license or authority
required by law to enable one to lawfully engage in The elements of estafa in general are: (1) that the
recruitment and placement of workers;8 and (3) the accused defrauded another (a) by abuse of confidence,
illegal recruitment is committed by a group of three (3) or or (b) by means of deceit; and (2) that damage or
more persons conspiring or confederating with one prejudice capable of pecuniary estimation is caused to
another.9 When illegal recruitment is committed by a the offended party or third person.
syndicate or in large scale, i.e., if it is committed against
All these elements are present in the instant case: the a non-licensee, non-holder, licensee or holder of
accused-appellant, together with the other accused at authority:
large, deceived the complainants into believing that the
agency had the power and capability to send them (a) To charge or accept directly or indirectly any amount
abroad for employment; that there were available jobs greater than that specified in the schedule of allowable
for them in Korea as factory workers; that by reason or fees prescribed by the Secretary of Labor and
on the strength of such assurance, the complainants Employment, or to make a worker pay any amount
parted with their money in payment of the placement greater than that actually received by him as a loan or
fees; that after receiving the money, accused-appellant advance;
and his co-accused went into hiding by changing their
office locations without informing complainants; and that xxxx
complainants were never deployed abroad. As all these
representations of the accused-appellant proved false, (l) Failure to actually deploy without valid reason as
paragraph 2(a), Article 315 of the Revised Penal Code is determined by the Department of Labor and
thus applicable.1avvphi1 Employment; and

Defense of Denial Cannot Prevail over Positive (m) Failure to reimburse expenses incurred by the
Identification worker in connection with his documentation and
processing for purposes of deployment and processing
APPEAL Denied. 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 an
NOTES: offense involving economic sabotage.

Contents of the Information nature of conspiracy in the context of illegal recruitment:


That in or about and during the period comprised Conspiracy to defraud aspiring overseas contract
between November 2000 and December, 2001, workers was evident from the acts of the malefactors
inclusive, in the City of Manila, Philippines, the said whose conduct before, during and after the commission
accused conspiring and confederating together and of the crime clearly indicated that they were one in
helping with one another, representing themselves to purpose and united in its execution. Direct proof of
have the capacity to contract, enlist and transport previous agreement to commit a crime is not necessary
Filipino workers for employment abroad, did then and as it may be deduced from the mode and manner in
there willfully and unlawfully, for a fee, recruit and which the offense was perpetrated or inferred from the
promise employment/job placement abroad to xxxx in acts of the accused pointing to a joint purpose and
Korea as factory workers and charge or accept directly design, concerted action and community of interest. As
or indirectly from said xxxx as placement fees in such, all the accused, including accused-appellant, are
connection with their overseas employment, which equally guilty of the crime of illegal recruitment since in a
amounts are in excess of or greater than those specified conspiracy the act of one is the act of all.
in the schedule of allowable fees prescribed by the
POEA Board Resolution No. 02, Series 1998, and ART. 315, RPC
without valid reasons and without the fault of the said Art. 315. Swindling (estafa). – Any person who shall
complainants failed to actually deploy them and failed to defraud another by any means mentioned hereinbelow…
reimburse the expenses incurred by the said xxxx
complainants in connection with their documentation and By means of any of the following false pretenses or
processing for purposes of their deployment. fraudulent acts executed prior to or simultaneously with
the commission of the fraud:
Sec. 6 of RA 8042 (a) By using fictitious name, or falsely pretending to
Sec. 6. Definition. – For purposes of this Act, illegal possess power, influence, qualifications, property, credit,
recruitment shall mean any act of canvassing, enlisting, agency, business or imaginary transactions; or by
contracting, transporting, utilizing, hiring, or procuring means of other similar deceits.
workers and includes referring, contract services,
promising or advertising for employment abroad, Note:
whether for profit or not, when undertaken by a non- • Salazar v. Achacoso, 183 SCRA 145 (1990) Article 38
licensee or non-holder of authority contemplated under (c) was declared unconstitutional; only a judge may
Article 13(f) of Presidential Decree No. 442, as issue warrants of search and arrest
amended, otherwise known as the Labor Code of the 5. Enforcement
Philippines: Provided, That any such non-licensee or
non-holder who, in any manner, offers or promises for a a. Regulatory Power, Art. 36
fee employment abroad to two or more persons shall be Article 36. Regulatory power. The Secretary of Labor
deemed so engaged. It shall, likewise, include the shall have the power to restrict and regulate the
following act, whether committed by any person, whether recruitment and placement activities of all agencies
within the coverage of this Title and is hereby authorized 9. Shall provide orientation on recruitment procedures,
to issue orders and promulgate rules and regulations to terms and conditions and other relevant information to its
carry out the objectives and implement the provisions of workers and provide facilities therefor; and
this Title. 10. Shall repatriate the deployed workers and his
personal belongings when the need arises.

For the purpose of compliance with item (1), the agency


b. Rule Making Power, Art. 36 may require the worker to undergo trade testing and
Article 36. Regulatory power. The Secretary of Labor medical examination only after the worker has been pre-
shall have the power to restrict and regulate the qualified for employment.
recruitment and placement activities of all agencies RA 8042, Sec. 10, 2nd Paragraph
within the coverage of this Title and is hereby authorized SEC. 10. MONEY CLAIMS
to issue orders and promulgate rules and regulations to The liability of the principal/employer and the
carry out the objectives and implement the provisions of recruitment/placement agency for any and all claims
this Title. under this section shall be joint and several. This
provisions shall be incorporated in the contract for
c. Visitorial Power, Art. 37 overseas employment and shall be a condition
Article 37. Visitorial Power. The Secretary of Labor or his precedent for its approval. The performance bond to be
duly authorized representatives may, at any time, filed by the recruitment/placement agency, as provided
inspect the premises, books of accounts and records of by law, shall be answerable for all money claims or
any person or entity covered by this Title, require it to damages that may be awarded to the workers. If the
submit reports regularly on prescribed forms, and act on recruitment/placement agency is a juridical being, the
violation of any provisions of this Title. corporate officers and directors and partners as the case
may be, shall themselves be jointly and solidarily liable
6. Joint and Several Liability of Agent and Principal with the corporation or partnership for the aforesaid
POEA Rules, Part II, Rule II, Sec. 1 (f); RA 8042, Sec. claims and damages.
10, 2nd Paragraph
7. Jurisdiction
POEA Rules, Part II, Rule II, Sec. 1 (f) a. RTC over Criminal Action arising from Illegal
PART II Recruitment, RA No. 8042, Sec. 9
LICENSING AND REGULATION
RULE II SEC. 9. VENUE. - A criminal action arising from illegal
ISSUANCE OF LICENSE recruitment as defined herein shall be filed with the
Section 1. Requirements for Licensing. Every applicant Regional Trial Court of the province or city where the
for license to operate a private employment agency shall offense was committed or where the offended party
submit a written application together with the following actually resides at the same time of the commission
requirements: of the offense: Provided, That the court where the
f. A verified undertaking stating that the applicant: criminal action is first filed shall acquire jurisdiction to
1. Shall select only medically and technically qualified the exclusion of other courts. Provided, however, that
recruits; the afore-stated provisions shall also apply to those
2. Shall assume full and complete responsibility for all criminal actions that have already been filed in court
claims and liabilities which may arise in connection with at the time of the effectivity of this Act.
the use of the license;
3. Shall assume joint and solidary liability with the b. LA over Money Claims, RA 8042, Sec. 10
employer for all claims and liabilities which may arise in SEC. 10. MONEY CLAIMS. - Notwithstanding any
connection with the implementation of the contract, provision of law to the contrary, the Labor Arbiters of the
including but not limited to payment of wages, death and National Labor Relations Commission (NLRC) shall
disability compensation and repatriations; have the priginal and exclusive jurisdiction to hear and
4. Shall guarantee compliance with the existing labor decide, within ninety (90) calendar days after filing of the
and social legislations of the Philippines and of the complaint, the claims
country of employment of the recruited workers;
5. Shall assume full and complete responsibility for all The liability of the principal/employer and the
acts of its officials, employees and representatives done recruitment/placement agency for any and all claims
in connection with recruitment and placement; under this section shall be joint and several. This
6. Shall negotiate for the best terms and conditions of provisions shall be incorporated in the contract for
employment; overseas employment and shall be a condition
7. Shall disclose the full terms and conditions of precedent for its approval. The performance bond to be
employment to the applicant workers; filed by the recruitment/placement agency, as provided
8. Shall deploy at least 100 workers to its new markets by law, shall be answerable for all money claims or
within one (1) year from the issuance of its license; 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 Facts: Respondent Almanzor entered into a two-year
claims and damages. employment contract with petitioner Flourish Maritime
Shipping as fisherman and was deployed to Taipei,
Such liabilities shall continue during the entire period or Taiwan. While on board, he was given an instruction
duration of the employment contract and shall not be which he did not understand and therefore was unable to
affected by any substitution, amendment or modification obey. The master of the vessel struck him and refused
made locally or in a foreign country of the said contract. his requested medical assistance. Respondent was
repatriated to the Philippines but was not redeployed as
Any compromise/amicable settlement or voluntary promised, thus the complaint for illegal dismissal,
agreement on money claims inclusive of damages under payment for the unexpired portion of his employment
this section shall be paid within four (4) months from the contract, earned wages, moral and exemplary damages
approval of the settlement by the appropriate authority. plus attorney’s fees.
Petitioners Flourish Maritime Shipping and Uy
In case of termination of overseas employment without contended that respondent voluntarily resigned and that
just, valid or authorized cause as defined by law or the same did not comply with the grievance machinery
contract, the workers shall be entitled to the full and arbitration clause embodied in the employment
reimbursement of his placement fee with interest of contract.
twelve percent (12%) per annum, plus his salaries for The Labor Arbiter rendered a decision in favour
the unexpired portion of his employment contract or for of respondent, awarding him six months of his monthly
three (3) months for every year of the unexpired term, pay (3months for every year of the unexpired term). On
whichever is less. appeal, the NLRC affirmed in toto the Labor Arbiter’s
findings. The Court of Appeals, on petition for certiorari,
Non-compliance with the mandatory periods for modified the NLRC decision by increasing the monetary
resolutions of cases provided under this section shall award due respondent. The Court of Appeals awarded
subject the responsible officials to any or all of the respondent the unexpired portion of the first year (11
following penalties: months and 4 days) and 3 months for the unexpired
second year, for a total of 14 months and 4 days.
(a) The salary of any such official who fails to render his Issue No. 1: WON respondent was illegally dismissed
decision or resolutions within the prescribed period shall from employment.
be, or caused to be, withheld until the said official Held: YES.
complies therewith; Ratio: Petitioners, as concluded by the Labor Arbiter,
failed to adduce any convincing evidence to establish its
(b) Suspension for not more than ninety (90) days; or claim that respondent voluntarily residned from
employment. Likewise, the NLRC held that petitioners
(c) Dismissal from the service with disqualifications to failed to show that respondent was not physically fit to
hold any appointive public office for five (5) years. perform work due to his old age. Neither was it proved
that the employment contract indeed provided a
Provided, however, that the penalties herein provided grievance machinery. Both labor tribunals correctly
shall be without prejudice to any liability which any such concluded, as affirmed by the Court of Appeals, that
official may have incurred under other existing laws or respondent was not redeployed for work, in violation of
rules and regulations as a consequence of violating the their employment contract. Perforce, the termination of
provisions of this paragraph. respondent’s services is without just or valid cause.

• Flourish Maritime Shipping v. Almanzor, 568 SCRA Issue No. 2:


713 (2008) Nachura, J. WON the award made by the Court of Appeals was
contrary to law.
In case of unjust, invalid or unauthorized termination of Held: YES.
overseas employment, where the term of the Ratio:
employment contract is atleast one year or more, the Section 10 of R.A. 8042 provides:
worker shall be entitled to a salary of threemonths for Section 10. Money Claims. – x x x
ever year of the unexpired term, in accord with Section xxxx
10 of RA8042 In case of termination of overseas employment without
just, valid or authorized cause as defined by law or
Nachura, J. contract, the worker shall be entitled to the full
Labor Law. The choice of which amount to reimbursement of his placement fee with interest at
award an illegally dismissed overseas contract worker, twelve percent (12%) per annum, plus his salaries for
i.e., whether his salaries for the unexpired portion of his the unexpired portion of his employment contract or for
employment contract, or three (3) months’ salary for three (3) months for every year of the unexpired term,
every year of the unexpired term, whichever is less, whichever is less.
comes into play only when the employment contract x x x x.
concerned has a term of at least one (1) year or more.
The correct interpretation of this provision was ISSUE: Whether or not Cabiles was entitled to the
settled in Marsaman Manning Agency Inc. v. NLRC unexpired portion of her salary due to illegal dismissal.
where this Court held that “the choice of which amount
to award an illegally dismissed overseas contract HELD: YES. The Court held that the award of the three-
worker, i.e., whether his salaries for the unexpired month equivalent of respondent’s salary should be
portion of his employment contract, or three (3) months’ increased to the amount equivalent to the unexpired
salary for every year of the unexpired term, whichever is term of the employment contract.
less,” comes into play only when the employment
contract concerned has a term of at least one year or In Serrano v. Gallant Maritime Services, Inc.
more. and Marlow Navigation Co., Inc., this court ruled that the
The employment contract involved in the instant clause “or for three (3) months for every year of the
case covers a two-year period but the overseas contract unexpired term, whichever is less” is unconstitutional for
worker actually worked for only 26 days prior to his violating the equal protection clause and substantive due
illegal dismissal. Thus, the three months’ salary rule process.
applies. Respondent, therefore, is entitled to six (6)
months’ salary as correctly held by the Labor Arbiter and A statute or provision which was declared
affirmed by the NLRC. unconstitutional is not a law. It “confers no rights; it
imposes no duties; it affords no protection; it creates no
Note: Serrano v. Galant Maritime Services, Inc., 582 office; it is inoperative as if it has not been passed at all.”
SCRA 254 (2009) – The clause “or for three (3) months
for every year of the unexpired term, whichever is less” The Court said that they are aware that the
is unconstitutional for being violative of the equal clause “or for three (3) months for every year of the
protection clause. unexpired term, whichever is less” was reinstated in
Republic Act No. 8042 upon promulgation of Republic
• Sameer Overseas Placement Agency, Inc. vs. Cabiles Act No. 10022 in 2010.
G.R. No. 170139, August 5, 2014
Ruling on the constitutional issue
PONENTE: Leonen
In the hierarchy of laws, the Constitution is
TOPIC: Section 10 of RA 8042 vis-a-vis Section 7 of RA supreme. No branch or office of the government may
10022 exercise its powers in any manner inconsistent with the
Constitution, regardless of the existence of any law that
FACTS: Petitioner, Sameer Overseas Placement supports such exercise. The Constitution cannot be
Agency, Inc., is a recruitment and placement agency. trumped by any other law. All laws must be read in light
of the Constitution. Any law that is inconsistent with it is
Respondent Joy Cabiles was hired thus a nullity.
signed a one-year employment contract for a monthly
salary of NT$15,360.00. Joy was deployed to work for Thus, when a law or a provision of law is null
Taiwan Wacoal, Co. Ltd. (Wacoal) on June 26, 1997. because it is inconsistent with the Constitution, the nullity
She alleged that in her employment contract, she agreed cannot be cured by reincorporation or reenactment of
to work as quality control for one year. In Taiwan, she the same or a similar law or provision. A law or provision
was asked to work as a cutter. of law that was already declared unconstitutional
remains as such unless circumstances have so changed
Sameer claims that on July 14, 1997, a certain as to warrant a reverse conclusion.
Mr. Huwang from Wacoal informed Joy, without prior
notice, that she was terminated and that “she should The Court observed that the reinstated clause,
immediately report to their office to get her salary and this time as provided in Republic Act. No. 10022,
passport.” She was asked to “prepare for immediate violates the constitutional rights to equal protection and
repatriation.” Joy claims that she was told that from June due process.96 Petitioner as well as the Solicitor
26 to July 14, 1997, she only earned a total of General have failed to show any compelling change in
NT$9,000.15 According to her, Wacoal deducted the circumstances that would warrant us to revisit the
NT$3,000 to cover her plane ticket to Manila. precedent.

On October 15, 1997, Joy filed a complaint for The Court declared, once again, the clause,
illegal dismissal with the NLRC against petitioner and “or for three (3) months for every year of the unexpired
Wacoal. LA dismissed the complaint. NLRC reversed term, whichever is less” in Section 7 of Republic Act No.
LA’s decision. CA affirmed the ruling of the National 10022 amending Section 10 of Republic Act No. 8042 is
Labor Relations Commission finding respondent illegally declared unconstitutional and, therefore, null and void.
dismissed and awarding her three months’ worth of
salary, the reimbursement of the cost of her repatriation, c. POEA over Administrative Cases
and attorney’s fees
1. Pre-employment Cases, Omnibus rules Impl.
RA No. 8042, Sec. 28 (a) violation of the conditions for issuance of license or
authority to recruit workers.
Sec. 28. Jurisdiction of the POEA. – The POEA shall All prohibited recruitment activities and practices which
exercise original and exclusive jurisdiction to hear and are penal in character as enumerated and defined under
decide: and by virtue of existing laws, shall be prosecuted in the
(a) all cases, which are administrative in character, regular courts in close coordination with the appropriate
involving or arising out of violations of rules and Departments and agencies concerned;
regulations relating to licensing and registration of (e) Maintain a registry of skills for overseas placement;
recruitment and employment agencies or entities; (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;
2. Disciplinary Cases, Omnibus rules Impl. (g) Promote the development of skills and careful
RA No. 8042, Sec. 28 (b) selection of Filipino workers;
(h) Undertake overseas market development activities
(b) disciplinary action cases and other for placement of Filipino workers;
special cases, which are administrative in (i) Secure the best terms and conditions of employment
character, involving employers, of Filipino contract workers and ensure compliance
principals, contracting partners and therewith;
Filipino migrant workers (j) Promote and protect the well-being of Filipino workers
overseas;
3. Public Sector Agencies – Employment Offices, (k) Develop and implement programs for the effective
Art. 12(f); 14 (a); Sec. 3, Reorganizing POEA (EO No. monitoring of returning contract workers, promoting their
247); POEA Rules and Regulations retraining and re-employment or their smooth re-
integration into the mainstream of national economy in
Article 12. Statement of objectives. It is the policy of the coordination with other government agencies;
State: (l) Institute a system for ensuring fair and speedy
(f) To strengthen the network of public employment disposition of cases involving violation or recruitment
offices and rationalize the participation of the private rules and regulations as well as violation of terms and
sector in the recruitment and placement of workers, conditions of overseas employment;
locally and overseas, to serve national development (m) Establish a system for speedy and efficient
objectives; enforcement of decisions laid down through the exercise
of its adjudicatory function;
Article 14. Employment promotion. The Secretary of (n) Establish and maintain close relationship and enter
Labor shall have the power and authority: into joint projects with the Department of Foreign Affairs,
(a) To organize and establish new employment offices in Philippine Tourism Authority, Manila International Airport
addition to the existing employment offices under the Authority, Department of Justice, Department of Budget
Department of Labor as the need arises; and Management and other relevant government
entities, in the pursuit of its objectives. The
EO No. 247, Sec. 3. Powers and Functions. - In the Administration shall also establish and maintain joint
pursuit of its mandate, the Administration shall have the projects with private organizations, domestic or foreign,
following powers and functions: in the furtherance of its objectives.
(a) Regulate private sector participation in the
recruitment and overseas placement of workers by 4. Sanctions
setting up a licensing and registration system; a. Local Employment, Art. 39
(b) Formulate and implement, in coordination with
appropriate entities concerned, when necessary, a Article 39. Penalties.
system for promoting and monitoring the overseas The penalty of life imprisonment and a fine of One
employment of Filipino workers taking into consideration Hundred Thousand Pesos (P1000,000.00) shall be
their welfare and the domestic manpower requirements; imposed if illegal recruitment constitutes economic
(c) Protect the rights of Filipino workers for overseas sabotage as defined herein;
employment to fair and equitable recruitment and
employment practices and ensure their welfare; Any licensee or holder of authority found violating or
(d) Exercise original and exclusive jurisdiction to hear causing another to violate any provision of this Title or its
and decide all claims arising out of an employer- implementing rules and regulations shall, upon
employee relationship or by virtue of any law or contract conviction thereof, suffer the penalty of imprisonment of
involving Filipino workers for overseas employment not less than two years nor more than five years or a fine
including the disciplinary cases; and all pre-employment of not less than P10,000 nor more than P50,000, or both
cases which are administrative in character involving or such imprisonment and fine, at the discretion of the
arising out of violation or requirement laws, rules and court;
regulations including money claims arising therefrom, or
Any person who is neither a licensee nor a holder of "(b) To furnish or publish any false notice or information
authority under this Title found violating any provision or document in relation to recruitment or employment;
thereof or its implementing rules and regulations shall,
upon conviction thereof, suffer the penalty of "(c) To give any false notice, testimony, information or
imprisonment of not less than four years nor more than document or commit any act of misrepresentation for the
eight years or a fine of not less than P20,000 nor more purpose of securing a license or authority under the
than P100,000 or both such imprisonment and fine, at Labor Code, or for the purpose of documenting hired
the discretion of the court; workers with the POEA, which include the act of
reprocessing workers through a job order that pertains to
If the offender is a corporation, partnership, association nonexistent work, work different from the actual
or entity, the penalty shall be imposed upon the officer or overseas work, or work with a different employer
officers of the corporation, partnership, association or whether registered or not with the POEA;
entity responsible for violation; and if such officer is an
alien, he shall, in addition to the penalties herein "(d) To include or attempt to induce a worker already
prescribed, be deported without further proceedings; employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a
In every case, conviction shall cause and carry the worker from oppressive terms and conditions of
automatic revocation of the license or authority and all employment;
the permits and privileges granted to such person or
entity under this Title, and the forfeiture of the cash and "(e) To influence or attempt to influence any person or
surety bonds in favor of the Overseas Employment entity not to employ any worker who has not applied for
Development Board or the National Seamen Board, as employment through his agency or who has formed,
the case may be, both of which are authorized to use the joined or supported, or has contacted or is supported by
same exclusively to promote their objectives. any union or workers' organization;

b. Overseas Employment, Art. 35, RA 8042, Secs. 6, 7 "(f) To engage in the recruitment or placement of
& 10 as amended workers in jobs harmful to public health or morality or to
the dignity of the Republic of the Philippines;
Article 35. Suspension and/or cancellation of license or
authority. The Minister of Labor shall have the power to "(h) To fail to submit reports on the status of
suspend or cancel any license or authority to recruit employment, placement vacancies, remittance of foreign
employees for overseas employment for violation of exchange earnings, separation from jobs, departures
rules and regulations issued by the Ministry of Labor, the and such other matters or information as may be
Overseas Employment Development Board, or for required by the Secretary of Labor and Employment;
violation of the provisions of this and other applicable
laws, General Orders and Letters of Instructions. "(i) To substitute or alter to the prejudice of the worker,
employment contracts approved and verified by the
RA 8042, Secs. 6, 7 & 10 as amended Department of Labor and Employment from the time of
SEC. 6. Definition. - For purposes of this Act, illegal actual signing thereof by the parties up to and including
recruitment shall mean any act of canvassing, enlisting, the period of the expiration of the same without the
contracting, transporting, utilizing, hiring, or procuring approval of the Department of Labor and Employment;
workers and includes referring, contract services,
promising or advertising for employment abroad, "(j) For an officer or agent of a recruitment or placement
whether for profit or not, when undertaken by non- agency to become an officer or member of the Board of
licensee or non-holder of authority contemplated under any corporation engaged in travel agency or to be
Article 13(f) of Presidential Decree No. 442, as engaged directly or indirectly in the management of
amended, otherwise known as the Labor Code of the travel agency;
Philippines: Provided, That any such non-licensee or
non-holder who, in any manner, offers or promises for a "(k) To withhold or deny travel documents from applicant
fee employment abroad to two or more persons shall be workers before departure for monetary or financial
deemed so engaged. It shall likewise include the considerations, or for any other reasons, other than
following acts, whether committed by any person, those authorized under the Labor Code and its
whether a non-licensee, non-holder, licensee or holder implementing rules and regulations;
of authority:
"(l) Failure to actually deploy a contracted worker without
"(a) To charge or accept directly or indirectly any amount valid reason as determined by the Department of Labor
greater than that specified in the schedule of allowable and Employment;
fees prescribed by the Secretary of Labor and
Employment, or to make a worker pay or acknowledge "(m) Failure to reimburse expenses incurred by the
any amount greater than that actually received by him as worker in connection with his documentation and
a loan or advance; 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 "The persons criminally liable for the above offenses are
syndicate or in large scale shall be considered an the principals, accomplices and accessories. In case of
offense involving economic sabotage; and juridical persons, the officers having ownership, control,
management or direction of their business who are
"(n) To allow a non-Filipino citizen to head or manage a responsible for the commission of the offense and the
licensed recruitment/manning agency. responsible employees/agents thereof shall be liable.

"Illegal recruitment is deemed committed by a syndicate "In the filing of cases for illegal recruitment or any of the
if carried out by a group of three (3) or more persons prohibited acts under this section, the Secretary of Labor
conspiring or confederating with one another. It is and Employment, the POEA Administrator or their duly
deemed committed in large scale if committed against authorized representatives, or any aggrieved person
three (3) or more persons individually or as a group. may initiate the corresponding criminal action with the
appropriate office. For this purpose, the affidavits and
"In addition to the acts enumerated above, it shall also testimonies of operatives or personnel from the
be unlawful for any person or entity to commit the Department of Labor and Employment, POEA and other
following prohibited acts: law enforcement agencies who witnessed the acts
constituting the offense shall be sufficient to prosecute
"(1) Grant a loan to an overseas Filipino worker with the accused.
interest exceeding eight percent (8%) per annum, which
will be used for payment of legal and allowable "In the prosecution of offenses punishable under this
placement fees and make the migrant worker issue, section, the public prosecutors of the Department of
either personally or through a guarantor or Justice shall collaborate with the anti-illegal recruitment
accommodation party, postdated checks in relation to branch of the POEA and, in certain cases, allow the
the said loan; POEA lawyers to take the lead in the prosecution. The
POEA lawyers who act as prosecutors in such cases
"(2) Impose a compulsory and exclusive arrangement shall be entitled to receive additional allowances as may
whereby an overseas Filipino worker is required to avail be determined by the POEA Administrator.
of a loan only from specifically designated institutions,
entities or persons; "The filing of an offense punishable under this Act shall
be without prejudice to the filing of cases punishable
"(3) Refuse to condone or renegotiate a loan incurred by under other existing laws, rules or regulations.
an overseas Filipino worker after the latter's employment
contract has been prematurely terminated through no SEC. 7. Penalties. -
fault of his or her own; "(a) Any person found guilty of illegal recruitment shall
suffer the penalty of imprisonment of not less than
"(4) Impose a compulsory and exclusive arrangement twelve (12) years and one (1) day but not more than
whereby an overseas Filipino worker is required to twenty (20) years and a fine of not less than One million
undergo health examinations only from specifically pesos (P1,000,000.00) nor more than Two million pesos
designated medical clinics, institutions, entities or (P2,000,000.00).
persons, except in the case of a seafarer whose medical
examination cost is shouldered by the "(b) The penalty of life imprisonment and a fine of not
principal/shipowner; less than Two million pesos (P2,000,000.00) nor more
than Five million pesos (P5,000,000.00) shall be
"(5) Impose a compulsory and exclusive arrangement imposed if illegal recruitment constitutes economic
whereby an overseas Filipino worker is required to sabotage as defined therein.
undergo training, seminar, instruction or schooling of any
kind only from specifically designated institutions, "Provided, however, That the maximum penalty shall be
entities or persons, except fpr recommendatory trainings imposed if the person illegally recruited is less than
mandated by principals/shipowners where the latter eighteen (18) years of age or committed by a non-
shoulder the cost of such trainings; licensee or non-holder of authority.

"(6) For a suspended recruitment/manning agency to "(c) Any person found guilty of any of the prohibited acts
engage in any kind of recruitment activity including the shall suffer the penalty of imprisonment of not less than
processing of pending workers' applications; and six (6) years and one (1) day but not more than twelve
(12) years and a fine of not less than Five hundred
"(7) For a recruitment/manning agency or a foreign thousand pesos (P500,000.00) nor more than One
principal/employer to pass on the overseas Filipino million pesos (P1,000,000.00).
worker or deduct from his or her salary the payment of
the cost of insurance fees, premium or other insurance "If the offender is an alien, he or she shall, in addition to
related charges, as provided under the compulsory the penalties herein prescribed, be deported without
worker's insurance coverage. further proceedings.
"In every case, conviction shall cause and carry the "Any compromise/amicable settlement or voluntary
automatic revocation of the license or registration of the agreement on money claims inclusive of damages under
recruitment/manning agency, lending institutions, this section shall be paid within thirty (30) days from
training school or medical clinic. approval of the settlement by the appropriate authority.

SEC. 8. PROHIBITION ON OFFICIALS AND "In case of termination of overseas employment without
EMPLOYEES. - Ot shall be unlawful for any official or just, valid or authorized cause as defined by law or
employee of the Department of Labor and Employment, contract, or any unauthorized deductions from the
the Philippine Overseas Employment Administration, or migrant worker's salary, the worker shall be entitled to
the Overseas Workers Welfare Administration, or the the full reimbursement if his placement fee and the
Department of Foreign Affairs, or other government deductions made with interest at twelve percent (12%)
agencies involved in the implementation of this Act, or per annum, plus his salaries for the unexpired portion of
their relatives within the fourth civil degree of his employment contract or for three (3) months for
consanguinity or affinity, to engage, directly or indirectly, every year of the unexpired term, whichever is less.
in the business of recruiting migrant workers as defined
in this Act. The penalties shall be imposed upon them. "In case of a final and executory judgement against a
foreign employer/principal, it shall be automatically
SEC. 9. VENUE. - A criminal action arising from illegal disqualified, without further proceedings, from
recruitment as defined herein shall be filed with the participating in the Philippine Overseas Employment
Regional Trial Court of the province or city where the Program and from recruiting and hiring Filipino workers
offense was committed or where the offended party until and unless it fully satisfies the judgement award.
actually resides at the same time of the commission of
the offense: Provided, That the court where the criminal "Noncompliance with the mandatory periods for
action is first filed shall acquire jurisdiction to the resolutions of case provided under this section shall
exclusion of other courts. Provided, however, That the subject the responsible officials to any or all of the
aforestated provisions shall also apply to those criminal following penalties:
actions that have already been filed in court at the time
of the effectivity of this Act. "(a) The salary of any such official who fails to render his
SEC. 10. Money Claims. - Notwithstanding any provision decision or resolution within the prescribed period shall
of law to the contrary, the Labor Arbiters of the National be, or caused to be, withheld until the said official
Labor Relations Commission (NLRC) shall have the complies therewith;
original and exclusive jurisdiction to hear and decide,
within ninety (90) calendar days after the filing of the "(b) Suspension for not more than ninety (90) days; or
complaint, the claims arising out of an employer-
employee relationship or by virtue of any law or contract "(c) Dismissal from the service with disqualification to
involving Filipino workers for overseas deployment hold any appointive public office for five (5) years.
including claims for actual, moral, exemplary and other
forms of damage. Consistent with this mandate, the "Provided, however, That the penalties herein provided
NLRC shall endeavor to update and keep abreast with shall be without prejudice to any liability which any such
the developments in the global services industry. official may have incured under other existing laws or
rules and regulations as a consequence of violating the
"The liability of the principal/employer and the provisions of this paragraph."
recruitment/placement agency for any and all claims
under this section shall be joint and several. This 5. Issues and Questions on Overseas Employment
provision shall be incorporated in the contract for
overseas employment and shall be a condition
precedent for its approval. The performance bond to de
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.
6. Trafficking in Persons, RA 9208 and Rules and of threat or use of force, or other forms of coercion,
Regulations Implementing RA 9208 abduction, fraud, deception, abuse of power or of
position, taking advantage of the vulnerability of the
REPUBLIC OF THE PHILIPPINES person, or, the giving or receiving of payments or
Congress of the Philippines benefits to achieve the consent of a person having
Metro Manila control over another person for the purpose of
exploitation which includes at a minimum, the
Twelfth Congress exploitation or the prostitution of others or other forms of
Second Regular Session sexual exploitation, forced labor or services, slavery,
Begun held in Metro Manila on Monday, the twenty- servitude or the removal or sale of organs.
second day of July, two thousand two
The recruitment, transportation, transfer, harboring or
Republic Act No. 9208 receipt of a child for the purpose of exploitation shall also
May 26, 2003 be considered as “trafficking in persons” even if it does
not involve any of the means set forth in the preceding
AN ACT TO INSTITUTE POLICIES TO ELIMINATE paragraph.
TRAFFICKING IN PERSONS ESPECIALLY WOMEN
AND CHILDREN, ESTABLISHING THE NECESSARY (b) Child – refers to a person below eighteen (18) years
INSTITUTIONAL MECHANISMS FOR THE of age or one who is over eighteen (18) but is unable to
PROTECTION AND SUPPORT OF TRAFFICKED fully take care of or protect himself/herself from abuse,
PERSONS, PROVIDING PENALTIES FOR ITS neglect, cruelty, exploitation, or discrimination because
VIOLATIONS, AND FOR OTHER of a physical or mental disability or condition.

Be it enacted by the Senate and the House of (c) Prostitution – refers to any act, transaction, scheme
Representatives of the Philippines in Congress or design involving the use of a person by another, for
assembled: sexual intercourse or lascivious conduct in exchange for
money, profit or any other consideration.
Section 1. Title. This Act shall be known as the “Anti-
Trafficking in Persons Act of 2003”. (d) Forced Labor and Slavery – refer to the extraction of
work or services from any person by means of
Section 2. Declaration of Policy. – It is hereby declared enticement, violence, intimidation or threat, use of force
that the State values the dignity of every human person or coercion, including deprivation of freedom, abuse of
and guarantees the respect of individual rights. In pursuit authority or moral ascendancy, debt-bondage or
of this policy, the State shall give highest priority to the deception.
enactment of measures and development of programs
that will promote human dignity, protect the people from (e) Sex Tourism – refers to a program organized by
any threat of violence and exploitation, eliminate travel and tourism-related establishments and individuals
trafficking in persons, and mitigate pressures for which consists of tourism packages or activities, utilizing
involuntary migration and servitude of persons, not only and offering escort and sexual services as enticement
to support trafficked persons but more importantly, to for tourists. This includes sexual services and practices
ensure their recovery, rehabilitation and reintegration offered during rest and recreation periods for members
into the mainstream of society. of the military.

It shall be a State policy to recognize the equal rights (f) Sexual Exploitation – refers to participation by a
and inherent human dignity of women and men as person in prostitution or the production of pornographic
enshrined in the United Nations Universal Declaration on materials as a result of being subjected to a threat,
Human Rights, United Nations Convention on the Rights deception, coercion, abduction, force, abuse of authority,
of the Child, United Nations Convention on the debt bondage, fraud or through abuse of a victim’s
Protection of Migrant Workers and their Families. United vulnerability.
Nations Convention Against Transnational Organized
Crime Including its Protocol to Prevent, Suppress and (g) Debt Bondage – refers to the pledging by the debtor
Punish Trafficking in Persons, Especially Women and of his/her personal services or labor or those of a person
Children and all other relevant and universally accepted under his/her control as security or payment for a debt,
human rights instruments and other international when the length and nature of services is not clearly
conventions to which the Philippines is a signatory. defined or when the value of the services as reasonably
assessed is not applied toward the liquidation of the
Section 3. Definition of Terms. – As used in this Act: debt.

(a) Trafficking in Persons – refers to the recruitment, (h) Pornography – refers to any representation, through
transportation, transfer or harboring, or receipt of publication, exhibition, cinematography, indecent shows,
persons with or without the victim’s consent or information technology, or by whatever means, of a
knowledge, within or across national borders by means person engaged in real or simulated explicit sexual
activities or any representation of the sexual parts of a (b) To produce, print and issue or distribute unissued,
person for primarily sexual purposes. tampered or fake counseling certificates, registration
stickers and certificates of any government agency
(i) Council – shall mean the Inter-Agency Council which issues these certificates and stickers as proof of
Against Trafficking created under Section 20 of this Act. compliance with government regulatory and pre-
departure requirements for the purpose of promoting
Section 4. Acts of Trafficking in Persons. – It shall be trafficking in persons;
unlawful for any person, natural or juridical, to commit
any of the following acts: (c) To advertise, publish, print, broadcast or distribute, or
cause the advertisement, publication, printing,
(a) To recruit, transport, transfer; harbor, provide, or broadcasting or distribution by any means, including the
receive a person by any means, including those done use of information technology and the internet, of any
under the pretext of domestic or overseas employment brochure, flyer, or any propaganda material that
or training or apprenticeship, for the purpose of promotes trafficking in persons;
prostitution, pornography, sexual exploitation, forced
labor, slavery, involuntary servitude or debt bondage; (d) To assist in the conduct of misrepresentation or fraud
for purposes of facilitating the acquisition of clearances
(b) To introduce or match for money, profit, or material, and necessary exit documents from government
economic or other consideration, any person or, as agencies that are mandated to provide pre-departure
provided for under Republic Act No. 6955, any Filipino registration and services for departing persons for the
woman to a foreign national, for marriage for the purpose of promoting trafficking in persons;
purpose of acquiring, buying, offering, selling or trading
him/her to engage in prostitution, pornography, sexual (e) To facilitate, assist or help in the exit and entry of
exploitation, forced labor, slavery, involuntary servitude persons from/to the country at international and local
or debt bondage; airports, territorial boundaries and seaports who are in
possession of unissued, tampered or fraudulent travel
(c) To offer or contract marriage, real or simulated, for documents for the purpose of promoting trafficking in
the purpose of acquiring, buying, offering, selling, or persons;
trading them to engage in prostitution, pornography,
sexual exploitation, forced labor or slavery, involuntary (f) To confiscate, conceal, or destroy the passport, travel
servitude or debt bondage; documents, or personal documents or belongings of
trafficked persons in furtherance of trafficking or to
(d) To undertake or organize tours and travel plans prevent them from leaving the country or seeking
consisting of tourism packages or activities for the redress from the government or appropriate agencies;
purpose of utilizing and offering persons for prostitution, and
pornography or sexual exploitation;
(g) To knowingly benefit from, financial or otherwise, or
(e) To maintain or hire a person to engage in prostitution make use of, the labor or services of a person held to a
or pornography; condition of involuntary servitude, forced labor, or
slavery.
(f) To adopt or facilitate the adoption of persons for the
purpose of prostitution, pornography, sexual exploitation, Section 6. Qualified Trafficking in Persons. – The
forced labor, slavery, involuntary servitude or debt following are considered as qualified trafficking:
bondage;
(a) When the trafficked person is a child;
(g) To recruit, hire, adopt, transport or abduct a person,
by means of threat or use of force, fraud, deceit, (b) When the adoption is effected through Republic Act
violence, coercion, or intimidation for the purpose of No. 8043, otherwise known as the “Inter-Country
removal or sale of organs of said person; and Adoption Act of 1995” and said adoption is for the
purpose of prostitution, pornography, sexual exploitation,
(h) To recruit, transport or adopt a child to engage in forced labor, slavery, involuntary servitude or debt
armed activities in the Philippines or abroad. bondage;

Section 5. Acts that Promote Trafficking in Persons. – (c) When the crime is committed by a syndicate, or in
The following acts which promote or facilitate trafficking large scale. Trafficking is deemed committed by a
in persons, shall be unlawful: syndicate if carried out by a group of three (3) or more
persons conspiring or confederating with one another. It
(a) To knowingly lease or sublease, use or allow to be is deemed committed in large scale if committed against
used any house, building or establishment for the three (3) or more persons, individually or as a group;
purpose of promoting trafficking in persons;
(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 imprisonment of twenty (20) years and a fine of not less
public officer or employee; than One million pesos (P1,000,000.00) but not more
than Two million pesos (P2,000,000.00);
(e) When the trafficked person is recruited to engage in
prostitution with any member of the military or law (b) Any person found guilty of committing any of the acts
enforcement agencies; enumerated in Section 5 shall suffer the penalty of
imprisonment of fifteen (15) years and a fine of not less
(f) When the offender is a member of the military or law than Five hundred thousand pesos (P500,000.00) but
enforcement agencies; and not more than One million pesos (P1,000,000.00);

(g) When by reason or on occasion of the act of (c) Any person found guilty of qualified trafficking under
trafficking in persons, the offended party dies, becomes Section 6 shall suffer the penalty of life imprisonment
insane, suffers mutilation or is afflicted with Human and a fine of not less than Two million pesos
Immunodeficiency Virus (HIV) or the Acquired Immune (P2,000,000.00) but not more than Five million pesos
Deficiency Syndrome (AIDS). (P5,000,000.00);

Section 6. Confidentiality. – At any stage of the (d) Any person who violates Section 7 hereof shall suffer
investigation, prosecution and trial of an offense under the penalty of imprisonment of six (6) years and a fine of
this Act, law enforcement officers, prosecutors, judges, not less than Five hundred thousand pesos
court personnel and medical practitioners, as well as (P500,000.00) but not more than One million pesos
parties to the case, shall recognize the right to privacy of (P1,000,000.00);
the trafficked person and the accused. Towards this end,
law enforcement officers, prosecutors and judges to (e) If the offender is a corporation, partnership,
whom the complaint has been referred may, whenever association, club, establishment or any juridical person,
necessary to ensure a fair and impartial proceeding, and the penalty shall be imposed upon the owner, president,
after considering all circumstances for the best interest partner, manager, and/or any responsible officer who
of the parties, order a closed-door investigation, participated in the commission of the crime or who shall
prosecution or trial. The name and personal have knowingly permitted or failed to prevent its
circumstances of the trafficked person or of the accused, commission;
or any other information tending to establish their
identities and such circumstances or information shall (f) The registration with the Securities and Exchange
not be disclosed to the public. Commission (SEC) and license to operate of the erring
agency, corporation, association, religious group, tour or
In cases when prosecution or trial is conducted behind travel agent, club or establishment, or any place of
closed-doors, it shall be unlawful for any editor, entertainment shall be cancelled and revoked
publisher, and reporter or columnist in case of printed permanently. The owner, president, partner or manager
materials, announcer or producer in case of television thereof shall not be allowed to operate similar
and radio, producer and director of a film in case of the establishments in a different name;
movie industry, or any person utilizing tri-media facilities
or information technology to cause publicity of any case (g) If the offender is a foreigner, he shall be immediately
of trafficking in persons. deported after serving his sentence and be barred
permanently from entering the country;
Section 8. Prosecution of Cases. – Any person who has
personal knowledge of the commission of any offense (h) Any employee or official of government agencies who
under this Act, the trafficked person, the parents, shall issue or approve the issuance of travel exit
spouse, siblings, children or legal guardian may file a clearances, passports, registration certificates,
complaint for trafficking. counseling certificates, marriage license, and other
similar documents to persons, whether juridical or
Section 9. Venue. – A criminal action arising from natural, recruitment agencies, establishments or other
violation of this Act shall be filed where the offense was individuals or groups, who fail to observe the prescribed
committed, or where any of its elements occurred, or procedures and the requirement as provided for by laws,
where the trafficked person actually resides at the time rules and regulations, shall be held administratively
of the commission of the offense: Provided, That the liable, without prejudice to criminal liability under this Act.
court where the criminal action is first filed shall acquire The concerned government official or employee shall,
jurisdiction to the exclusion of other courts. upon conviction, be dismissed from the service and be
barred permanently to hold public office. His/her
Section 10. Penalties and Sanctions. – The following retirement and other benefits shall likewise be forfeited;
penalties and sanctions are hereby established for the and
offenses enumerated in this Act:
(i) Conviction by final judgment of the adopter for any
(a) Any person found guilty of committing any of the acts offense under this Act shall result in the immediate
enumerated in Section 4 shall suffer the penalty of rescission of the decree of adoption.
reintegrate trafficked persons into the mainstream of
Section 11. Use of Trafficked Persons. – Any person society. Such programs shall include, but not limited to,
who buys or engages the services of trafficked persons the following:
for prostitution shall be penalized as follows:
(a) Provision for mandatory services set forth in Section
(a) First offense – six (6) months of community service 23 of this Act;
as may be determined by the court and a fine of Fifty
thousand pesos (P50,000.00); and (b) Sponsorship of a national research program on
trafficking and establishment of a data collection system
(b) Second and subsequent offenses – imprisonment of for monitoring and evaluation purposes;
one (1) year and a fine of One hundred thousand pesos
(P100,000.00). (c) Provision of necessary technical and material support
services to appropriate government agencies and non-
Section 12. Prescriptive Period. – Trafficking cases government organizations (NGOs);
under this Act shall prescribe in ten (10) years: Provided,
however, That trafficking cases committed by a (d) Sponsorship of conferences and seminars to provide
syndicate or in a large scale as defined under Section 6 venue for consensus building amongst the public, the
shall prescribe in twenty (20) years. academe, government, NGOs and international
organizations; and
The prescriptive period shall commence to run from the
day on which the trafficked person is delivered or (e) Promotion of information and education campaign on
released from the conditions of bondage and shall be trafficking.
interrupted by the filing of the complaint or information
and shall commence to run again when such Section 16. Programs that Address Trafficking in
proceedings terminate without the accused being Persons. – The government shall establish and
convicted or acquitted or are unjustifiably stopped for implement preventive, protective and rehabilitative
any reason not imputable to the accused. programs for trafficked persons. For this purpose, the
following agencies are hereby mandated to implement
Section 13. Exemption from Filing Fees. – When the the following programs;
trafficked person institutes a separate civil action for the
recovery of civil damages, he/she shall be exempt from (a) Department of Foreign Affairs (DFA) – shall make
the payment of filing fees. available its resources and facilities overseas for
trafficked persons regardless of their manner of entry to
Section 14. Confiscation and Forfeiture of the Proceeds the receiving country, and explore means to further
and Instruments Derived from Trafficking in Persons. – enhance its assistance in eliminating trafficking activities
In addition to the penalty imposed for the violation of this through closer networking with government agencies in
Act, the court shall order the confiscation and forfeiture, the country and overseas, particularly in the formulation
in favor of the government, of all the proceeds and of policies and implementation of relevant programs.
properties derived from the commission of the crime,
unless they are the property of a third person not liable The DFA shall take necessary measures for the efficient
for the unlawful act; Provided, however, That all awards implementation of the Machine Readable Passports to
for damages shall be taken from the personal and protect the integrity of Philippine passports, visas and
separate properties of the offender; Provided, further, other travel documents to reduce the incidence of
That if such properties are insufficient, the balance shall trafficking through the use of fraudulent identification
be taken from the confiscated and forfeited properties. documents.

When the proceeds, properties and instruments of the It shall establish and implement a pre-marriage, on-site
offense have been destroyed, diminished in value or and pre-departure counseling program on
otherwise rendered worthless by any act or omission, intermarriages.
directly or indirectly, of the offender, or it has been
concealed, removed, converted or transferred to prevent (b) Department of Social Welfare and Development
the same from being found or to avoid forfeiture or (DSWD) – shall implement rehabilitative and protective
confiscation, the offender shall be ordered to pay the programs for trafficked persons. It shall provide
amount equal to the value of the proceeds, property or counseling and temporary shelter to trafficked persons
instruments of the offense. and develop a system for accreditation among NGOs for
purposes of establishing centers and programs for
Section 15. Trust Fund. – All fines imposed under this intervention in various levels of the community.
Act and the proceeds and properties forfeited and
confiscated pursuant to Section 14 hereof shall accrue to (c) Department of Labor and Employment (DOLE) –
a Trust Fund to be administered and managed by the shall ensure the strict implementation and compliance
Council to be used exclusively for programs that will with the rules and guidelines relative to the employment
prevent acts of trafficking and protect, rehabilitate, of persons locally and overseas. It shall likewise monitor,
document and report cases of trafficking in persons DILG, Philippine Information Agency (PIA), Commission
involving employers and labor recruiters. on Filipinos Overseas (CFO), NGOs and other
concerned agencies. They shall encourage and support
(d) Department of Justice (DOJ) – shall ensure the community based initiatives which address the trafficking
prosecution of persons accused of trafficking and in persons.
designate and train special prosecutors who shall handle
and prosecute cases of trafficking. It shall also establish In implementing this Act, the agencies concerned may
a mechanism for free legal assistance for trafficked seek and enlist the assistance of NGOs, people’s
persons, in coordination with the DSWD, Integrated Bar organizations (Pos), civic organizations and other
of the Philippines (IBP) and other NGOs and volunteer volunteer groups.
groups.
Section 17. Legal Protection to Trafficked Persons. –
(e) National Commission on the Role of Filipino Women Trafficked persons shall be recognized as victims of the
(NCRFW) – shall actively participate and coordinate in act or acts of trafficking and as such shall not be
the formulation and monitoring of policies addressing the penalized for crimes directly related to the acts of
issue of trafficking in persons in coordination with trafficking enumerated in this Act or in obedience to the
relevant government agencies. It shall likewise advocate order made by the trafficker in relation thereto. In this
for the inclusion of the issue of trafficking in persons in regard, the consent of a trafficked person to the intended
both its local and international advocacy for women’s exploitation set forth in this Act shall be irrelevant.
issues.
Section 18. Preferential Entitlement Under the Witness
(f) Bureau of Immigration (BI) – shall strictly administer Protection Program. – Any provision of Republic Act No.
and enforce immigration and alien administration laws. It 6981 to the contrary notwithstanding, any trafficked
shall adopt measures for the apprehension of suspected person shall be entitled to the witness protection
traffickers both at the place of arrival and departure and program provided therein.
shall ensure compliance by the Filipino fiancés/fiancées
and spouses of foreign nationals with the guidance and Section 19. Trafficked Persons Who are Foreign
counseling requirement as provided for in this Act. Nationals. – Subject to the guidelines issued by the
Council, trafficked persons in the Philippines who are
(g) Philippine National Police (PNP) – shall be the nationals of a foreign country shall also be entitled to
primary law enforcement agency to undertake appropriate protection, assistance and services available
surveillance, investigation and arrest of individuals or to trafficked persons under this Act: Provided, That they
persons suspected to be engaged in trafficking. It shall shall be permitted continued presence in the Philippines
closely coordinate with various law enforcement for a length of time prescribed by the Council as
agencies to secure concerted efforts for effective necessary to effect the prosecution of offenders.
investigation and apprehension of suspected traffickers.
It shall also establish a system to receive complaints and Section 20. Inter-Agency Council Against Trafficking. –
calls to assist trafficked persons and conduct rescue There is hereby established an Inter-Agency Council
operations. Against Trafficking, to be composed of the Secretary of
the Department of Justice as Chairperson and the
(h) Philippine Overseas Employment Administration Secretary of the Department of Social Welfare and
(POEA) – shall implement an effective pre-employment Development as Co-Chairperson and shall have the
orientation seminars and pre-departure counseling following as members:
programs to applicants for overseas employment. It shall
likewise formulate a system of providing free legal (a) Secretary, Department of Foreign Affairs;
assistance to trafficked persons.
(b) Secretary, Department of Labor and Employment;
(i) Department of the Interior and Local Government
(DILG) – shall institute a systematic information and (c) Administrator, Philippine Overseas Employment
prevention campaign and likewise maintain a databank Administration;
for the effective monitoring, documentation and
prosecution of cases on trafficking in persons. (d) Commissioner, Bureau of Immigration;

(j) Local government units (LGUs) – shall monitor and (e) Director-General, Philippine National Police;
document cases of trafficking in persons in their areas of
jurisdiction, effect the cancellation of licenses of (f) Chairperson, National Commission on the Role of
establishments which violate the provisions of this Act Filipino Women; and
and ensure effective prosecution of such cases. They
shall also undertake an information campaign against (g) Three (3) representatives from NGOs, who shall be
trafficking in persons through the establishment of the composed of one (1) representative each from among
Migrants Advisory and Information Network (MAIN) the sectors representing women, overseas Filipino
desks in municipalities or provinces in coordination with workers (OFWs) and children, with a proven record of
involvement in the prevention and suppression of shall form the basis for policy formulation and program
trafficking in persons. These representatives shall be direction;
nominated by the government agency representatives of
the Council, for appointment by the President for a term (k) Develop the mechanism to ensure the timely,
of three (3) years. coordinated, and effective response to cases of
trafficking in persons;
The members of the Council may designate their
permanent representatives who shall have a rank not (l) Recommend measures to enhance cooperative
lower than an assistant secretary or its equivalent to efforts and mutual assistance among foreign countries
meetings, and shall receive emoluments as may be through bilateral and/or multilateral arrangements to
determined by the Council in accordance with existing prevent and suppress international trafficking in persons;
budget and accounting, rules and regulations.
(m) Coordinate with the Department of Transportation
Section 21. Functions of the Council. – The Council shall and Communications (DOTC), Department of Trade and
have the following powers and functions: Industry (DTI), and other NGOs in monitoring the
promotion of advertisement of trafficking in the internet;
(a) Formulate a comprehensive and integrated program
to prevent and suppress the trafficking in persons; (n) Adopt measures and policies to protect the rights and
needs of trafficked persons who are foreign nationals in
(b) Promulgate rules and regulations as may be the Philippines;
necessary for the effective implementation of this Act;
(o) Initiate training programs in identifying and providing
(c) Monitor and oversee the strict implementation of this the necessary intervention or assistance to trafficked
Act; persons; and

(d) Coordinate the programs and projects of the various (p) Exercise all the powers and perform such other
member agencies to effectively address the issues and functions necessary to attain the purposes and
problems attendant to trafficking in persons; objectives of this Act.

(e) Coordinate the conduct of massive information Section 22. Secretariat to the Council. – The Department
dissemination and campaign on the existence of the law of Justice shall establish the necessary Secretariat for
and the various issues and problems attendant to the Council.
trafficking through the LGUs, concerned agencies, and
NGOs; Section 23. Mandatory Services to Trafficked Persons. –
To ensure recovery, rehabilitation and reintegration into
(f) Direct other agencies to immediately respond to the the mainstream of society, concerned government
problems brought to their attention and report to the agencies shall make available the following services to
Council on action taken; trafficked persons:

(g) Assist in filing of cases against individuals, agencies, (a) Emergency shelter or appropriate housing;
institutions or establishments that violate the provisions
of this Act; (b) Counseling;

(h) Formulate a program for the reintegration of (c) Free legal services which shall include information
trafficked persons in cooperation with DOLE, DSWD, about the victims’ rights and the procedure for filing
Technical Education and Skills Development Authority complaints, claiming compensation and such other legal
(TESDA), Commission on Higher Education (CHED), remedies available to them, in a language understood by
LGUs and NGOs; the trafficked person;

(i) Secure from any department, bureau, office, agency, (d) Medical or psychological services;
or instrumentality of the government or from NGOs and
other civic organizations such assistance as may be (e) Livelihood and skills training; and
needed to effectively implement this Act;
(f) Educational assistance to a trafficked child.
(j) Complement the shared government information
system for migration established under Republic Act No. Sustained supervision and follow through mechanism
8042, otherwise known as the “Migrant Workers and that will track the progress of recovery, rehabilitation and
Overseas Filipinos Act of 1995” with data on cases of reintegration of the trafficked persons shall be adopted
trafficking in persons, and ensure that the proper and carried out.
agencies conduct a continuing research and study on
the patterns and scheme of trafficking in persons which Section 24. Other Services for Trafficked Persons. –
(a) Legal Assistance. – Trafficked persons shall be invalid, the other sections or provisions hereof shall not
considered under the category “Overseas Filipino in be affected thereby.
Distress” and may avail of the legal assistance created
by Republic Act No. 8042, subject to the guidelines as Section 32. Repealing clause. – All laws, presidential
provided by law. decrees, executive orders and rules and regulations, or
parts thereof, inconsistent with the provisions of this Act
(b) Overseas Filipino Resource Centers. – The services are hereby repealed or modified accordingly: Provided,
available to overseas Filipinos as provided for by That this Act shall not in any way amend or repeal the
Republic Act No. 8042 shall also be extended to provision of Republic Act No. 7610, otherwise known as
trafficked persons regardless of their immigration status the “Special Protection of Children Against Child Abuse,
in the host country. Exploitation and Discrimination Act”.

(c) The Country Team Approach. – The country team Section 33. Effectivity. – This Act shall take effect fifteen
approach under Executive Order No. 74 of 1993, shall (15) days from the date of its complete publication in at
be the operational scheme under which Philippine least two (2) newspapers of general circulation.
embassies abroad shall provide protection to trafficked
persons insofar as the promotion of their welfare, dignity RULES AND REGULATIONS IMPLEMENTING
and fundamental rights are concerned. REPUBLIC ACT NO. 9208, OTHERWISE KNOWN AS
THE “ANTI-TRAFFICKING IN PERSONS ACT
Section 25. Repatriation of Trafficked Persons. – The OF 2003”
DFA, in coordination with DOLE and other appropriate
agencies, shall have the primary responsibility for the Pursuant to the authority of the Inter-Agency
repatriation of trafficked persons, regardless of whether Council Against Trafficking (IACAT) under Section 29 of
they are documented or undocumented. Republic Act No. 9208 otherwise known as the “Anti-
Trafficking in Persons Act of 2003”, the following rules
If, however, the repatriation of the trafficked persons and regulations are hereby promulgated to implement
shall expose the victims to greater risks, the DFA shall the provisions of said Act:
make representation with the host government for the
extension of appropriate residency permits and Article I
protection, as may be legally permissible in the host GENERAL PROVISIONS
country. Sec. 1. Title. These rules and regulations shall
be known and cited as “The Rules and Regulations
Section 26. Extradition. – The DOJ, in consultation with Implementing the Anti-Trafficking in Persons Act of
DFA, shall endeavor to include offenses of trafficking in 2003”.
persons among extraditable offenses. Sec. 2. Purpose. These rules and regulations are hereby
promulgated to institute policies, establish the
Section 27. Reporting Requirements. – The Council shall institutional mechanism for the support and protection of
submit to the President of the Philippines and to trafficked persons and prescribe the procedures and
Congress an annual report of the policies, programs and guidelines for the implementation of Republic Act No.
activities relative to the implementation of this Act. 9208 in order to facilitate compliance therewith and
achieve the objectives thereof.
Section 28. Funding. – The heads of the departments Sec. 3. Declaration of State Policy. The State values the
and agencies concerned shall immediately include in dignity of every human person and guarantees the
their programs and issue such rules and regulations to respect for individual rights. Towards this end, the State
implement the provisions of this Act, the funding of which shall give the highest priority to the enactment of
shall be included in the annual General Appropriations measures and development of programs that will
Act. promote human dignity, protect the people from any
threat of violence and exploitation, eliminate
Section 29. Implementing Rules and Regulations. – The trafficking in persons, and mitigate pressures for
Council shall promulgate the necessary implementing involuntary migration and servitude of persons,
rules and regulations within sixty (60) days from the not only to support trafficked persons but more
effectivity of this Act. importantly, to ensure their recovery, rehabilitation and
reintegration into the mainstream of society.
Section 30. Non-restriction of Freedom of Speech and of The State also recognizes the equal rights and inherent
Association, Religion and the Right to Travel. – Nothing human dignity of women and men, as well as the rights
in this Act shall be interpreted as a restriction of the of children, as enshrined and guaranteed in the following
freedom of speech and of association, religion and the international instruments:
right to travel for purposes not contrary to law as (i) Universal Declaration on Human Rights;
guaranteed by the Constitution. (ii) Convention for the Suppression of the Traffic in
Persons and Exploitation of the Prostitution of Others;
Section 31. Separability Clause. – If, for any reason, any (iii) Convention on the Elimination of All Forms of
section or provision of this Act is held unconstitutional or Discrimination Against Women;
(iv) Convention on the Rights of the Child and its or coercion, including deprivation of freedom, abuse of
Optional Protocols; authority or moral ascendancy, debt-bondage or
(v) Convention on the Protection of Migrant Workers and deception;
Members of their Families; (g) Sex Tourism — refers to a program organized by
(vi) Convention Against Transnational Organized Crimes travel and tourism-related establishments and individuals
including its Protocol to Prevent, Suppress and Punish which consists of tourism packages or activities, utilizing
Trafficking in Persons, Especially Women and Children; and offering escort and sexual services as enticement
(vii) ILO Convention No. 182 (Convention Concerning for tourists. This includes sexual services and practices
the Prohibition and Immediate Action for the Elimination offered during rest and recreation periods for members
of the Worst Forms of Child Labor); and of the military;
(viii) All other relevant and universally accepted human (h) Sexual Exploitation — refers to participation by a
rights instruments and other international conventions person in prostitution or the production of pornographic
to which the Philippines is a State Party. In all actions materials as a result of being subjected to a threat,
concerning children, their best interests shall be the deception, coercion, abduction, force, abuse of authority,
paramount consideration. debt bondage, fraud or through abuse of a victim’s
Sec. 4. Construction. These rules and regulations shall vulnerability;
be liberally construed in favor of the trafficked persons to (i) Debt Bondage — refers to the pledging by the debtor
promote their human dignity; ensure their recovery, of his/her personal services or labor or those of a person
rehabilitation and reintegration into the mainstream of under his/her control as security or payment for a debt,
society; eliminate trafficking in persons; and achieve the when the length and nature of services is not clearly
objectives of the Act. defined or when the value of the services as reasonably
assessed is not applied toward the liquidation of the
Article II debt;
DEFINITION OF TERMS (j) Pornography — refers to any representation, through
Sec. 5. Definition of Terms. As used in these rules and publication, exhibition, cinematography, indecent shows,
regulations, unless the context otherwise requires, the information technology, or by whatever means, of a
following terms shall be understood to mean: person engaged in real or simulated explicit sexual
(a) Act — refers to Republic Act No. 9208, otherwise activities or any representation of the sexual parts of a
known as the “Anti-Trafficking in Persons Act of 2003”; person primarily for sexual purposes; and
(b) Council — refers to the Inter-Agency Council Against (k) Involuntary Servitude — refers to a condition of
Trafficking (IACAT) created under Section 20 of the Act; enforced, compulsory service induced by means of any
(c) Trafficking in Persons — refers to the recruitment, scheme, plan or pattern, intended to cause a person to
transportation, transfer or harboring, or receipt of believe that, if the person did not enter into or continue in
persons, with or without the victim’s consent or such condition, that person or another person would
knowledge, within or across national borders by means suffer serious harm or other forms of abuse or physical
of threat or use of force, or other forms of coercion, restraint, or the abuse or threatened abuse of the legal
abduction, fraud, deception, abuse of power or of process.
position, taking advantage of the vulnerability of the
person, or, the giving or receiving of payments or Article III
benefits to achieve the consent of a person having THE INTER-AGENCY COUNCIL AGAINST
control over another person for the purpose of TRAFFICKING (IACAT)
exploitation which includes at a minimum, the Sec. 6. Creation. The Inter-Agency Council Against
exploitation or the prostitution of others or other forms of Trafficking (IACAT) shall be established which shall be
sexual exploitation, forced labor or services, slavery, primarily tasked to coordinate, monitor and oversee the
servitude or the removal or sale of organs. implementation of the Act.
The recruitment, transportation, transfer, harboring or Sec. 7. Composition. The Council shall be
receipt of a child for the purpose of exploitation composed of the following:
shall also be considered as “trafficking in persons” even (a) Secretary, Department of Justice (DOJ) as
if it does not involve any of the means set forth in the Chairperson;
preceding paragraph. (b) Secretary, Department of Social Welfare and
(d) Child — refers to a person below eighteen (18) years Development (DSWD) as Co-Chairperson;
of age or one who is over eighteen (18) but is unable to (c) Secretary, Department of Foreign Affairs (DFA) as
fully take care of or protect himself/herself from abuse, Member;
neglect, cruelty, exploitation, or discrimination because (d) Secretary, Department of Labor and Employment
of a physical or mental disability or condition; (DOLE) as Member;
(e) Prostitution — refers to any act, transaction, scheme (e) Administrator, Philippine Overseas Employment
or design involving the use of a person by another, for Administration (POEA) as Member;
sexual intercourse or lascivious conduct in exchange for (f) Commissioner, Bureau of Immigration (BI) as
money, profit or any other consideration; Member;
(f) Forced Labor and Slavery — refer to the extraction of (g) Director-General, Philippine National Police
work or services from any person by meansof (PNP) as Member;
enticement, violence, intimidation or threat, use of force (h) Chairperson, National Commission on the
Role of Filipino Women (NCRFW) as Member; Act of 1995” with data on cases of trafficking in
(i) One (1) representative from an NGO representing the persons, and ensure that the proper agencies
women sector as Member; conduct a continuing research and study on the
(j) One (1) representative from an NGO representing he patterns and scheme of trafficking in persons
Overseas Filipino Workers (OFWs) sector as Member; which shall form the basis for policy formulation
and and program direction;
(k) One (1) representative from an NGO representing he (k) Develop the mechanism to ensure the timely
children sector as Member. coordinated and effective response to cases of
trafficking in
The members of the Council may designate their persons;
permanent representatives who shall have a (l) Recommend measures to enhance
rank not lower than an Assistant Secretary or its cooperative efforts and mutual assistance
equivalent to attend the meetings of the Council. among foreign countries through bilateral and/or
Sec. 8. Qualifications, Selection and Appointment of multilateral arrangements to prevent and
NGO and its Representatives. The NGOs, with national suppress international trafficking in persons;
and international networks, and its representatives to (m) Coordinate with the Department of
the Council must have a proven track record of Transportation and Communications (DOTC),
involvement in the prevention and suppression of Department of Trade and Industry (DTI), and
trafficking in persons. They shall be nominated by any other NGOs in monitoring the promotion of
of the government agency representatives of the advertisement of trafficking in the Internet;
Council and shall be selected by majority vote (n) Adopt measures and policies to protect the
thereof and endorsed to the President. They rights and needs of trafficked persons who are
shall be appointed by the President for a term of foreign nationals in the Philippines;
three (3) years. (o) Initiate training programs in identifying and
Sec. 9. Functions of the Council. The Council roviding the necessary intervention or
shall have the following powers and functions: assistance to trafficked
(a) Formulate a comprehensive and integrated persons; and
program to prevent and suppress the trafficking (p) Exercise all the powers and perform such
in persons; other functions necessary to attain the purposes
(b) Promulgate rules and regulations as may be and objectives of the Act.
necessary for the effective implementation of the Sec. 10. Reportorial Function. Within sixty (60)
Act; days after the closing of each calendar year, the
(c) Monitor and oversee the strict implementation of the Council shall submit to the Office of the
Act; President a comprehensive report on the actions
(d) Coordinate the programs and projects of the various and programs
member agencies to effectively address the issues and taken by the Council relative to and concerning
problems attendant to trafficking in persons; the implementation of the Act.
(e) Coordinate the conduct of massive information Sec. 11. Meetings of the Council. The Council
dissemination and campaign on the existence of the law shall meet regularly at least once a month.
and the various issues and problems attendant to Special meetings may be called by the Chair as
trafficking through the local government units (LGUs), the need arises. Majority of the members of the
concerned agencies, and NGOs; Council
(f) Direct other agencies to immediately respond shall constitute a quorum to transact business.
to the problems brought to their attention and report to Sec. 12. Honoraria or Emoluments. The
the Council on action taken; Members of the Council or their designated
(g) Assist in filing of cases against individuals, agencies, permanent representatives shall receive
institutions or establishments that violate the honoraria or emoluments as may be determined
provisions of the Act; by the Council in
(h) Formulate a program for the reintegration of accordance with existing budget and accounting
trafficked persons in cooperation with DOLE, DSWD, rules and regulations.
Technical Education and Skills Development Authority Sec. 13. Implementation of the Law at SubNational
(TESDA), Commission on Higher Education (CHED), and Local Levels. The Council shall,
LGUs and NGOs; as far as practicable, develop mechanisms to
(i) Secure from any department, bureau, office, ensure the implementation of the law and these
agency, or instrumentality of the government or rules and regulations at the sub-national and
from NGOs and other civic organizations such local levels
assistance as may be needed to effectively implement Article IV
the Act; SECRETARIAT
(j) Complement the shared government information SEC. 14. Organization. The Department of
system for migration established under Republic Act No. Justice shall establish a Secretariat to assist the
8042, otherwise known as the “Migrant Workers and Council in the performance of its functions. The
Overseas Filipinos Secretary of Justice shall determine the
organizational structure and staffing pattern of claims for compensation by trafficked victims, when
the Secretariat. applicable, pursuant to Republic Act No. 7309 (Victims
Sec. 15. Functions. The Secretariat shall have Compensation Act);
the following functions: (vii) Review and recommend policies and measures to
(a) Coordinate and monitor, under the direction enhance protection against trafficking in persons;
of the Council, the implementation of the policies (viii) Recommend the negotiation of mutual legal
and guidelines promulgated by the Council; assistance and extradition treaties with other countries in
(b) Establish, maintain and manage a central coordination with the DFA; and
database on trafficking in persons; (ix) Coordinate with and/or provide assistance to
(c) Provide secretariat, records keeping and the Anti-Money Laundering Council (AMLC) on cases of
other services to the Council; and trafficking in persons with possible money laundering
(d) Perform such other functions as may be underpinnings.
directed by the Council. (b) Department of Social Welfare and Development
Article V (DSWD)
ROLES AND RESPONSIBILITIES (i) Provide psycho-social counseling, temporary shelter
Sec. 16. Common Roles and Responsibilities and other support services to victims/survivors of
of Council Member Agencies. All member trafficking and their families;
government agencies of the Council shall have (ii) Make available skills training and livelihood services
the following common roles and responsibilities: to victims/survivors of trafficking;
(a) Develop policies and programs supportive of (iii) Develop program and other support interventions to
and consistent with the objectives of the Act; facilitate the recovery and reintegration of trafficked
(b) Enhance the capability of its officers and victims into their families and communities;
personnel involved in trafficking issues and (iv) Provide social welfare services to Filipino victims of
Duman / Labor I / Prof. Battad / Page 41 trafficking in other countries through the DSWD
concerns through appropriate training and staff Social Welfare Attaché and social workers posted in
support programs; foreign countries, which may include but not limited to
(c) Undertake information, education and stress management, repatriation and other appropriate
advocacy campaigns against trafficking in psychosocial interventions for their protection and
persons; welfare;
(d) Maintain a databank on trafficking in persons (v) Conduct technical assistance and capability building
to be shared among relevant agencies and activities for social welfare officers/social workers
complement the central databank to be of LGUs and NGOs;
established by the Council; and (vi) Accredit NGOs that provide programs and services
(e) Document good practices as bases for policy to ensure that they meet the standards set by the
formulation and program development. Department; and
Sec. 17. Specific Roles and Responsibilities (vii) Provide temporary shelter and psychosocial
of National Government Agencies which are services to foreign nationals who are victims of
Members of the Council. The following national trafficking in persons as confirmed by the Bureau of
government agencies, which are member Immigration.
agencies of the Council, shall have, but not (c) Department of Foreign Affairs (DFA)
limited to, the following roles and responsibilities (i) Make available its resources and facilities overseas
in the prevention and suppression of trafficking and to provide services for trafficked persons regardless
in persons: of the manner of their entry to the receiving country;
(a) Department of Justice (DOJ) (ii) Explore means to further enhance its assistance in
(i) Ensure the prosecution of persons for eliminating trafficking activities through closer networking
violations of the Act; with government agencies in the country and overseas,
(ii) Designate and train special prosecutors who particularly in the formulation of policies and
shall investigate and prosecute cases of implementation of relevant programs;
trafficking; (iii) Actively participate in bilateral, regional and
(iii) Establish a mechanism for free legal international initiatives and cooperative arrangements
assistance for trafficked persons, in coordination aimed at suppressing trafficking in persons and
with the DSWD, Commission on Human Rights protecting and assisting victims of trafficking to include
(CHR), Integrated Bar of the Philippines (IBP) monitoring of inter-country adoption cases.
and other NGOs and volunteer groups; (iv) Take necessary measures for the efficient
(iv) Provide, witness protection to trafficked implementation of the Machine Readable Passports and
victims and their witnesses; Visas to protect the integrity of Philippine passports,
(v) Conduct training and continuing education visas, and other travel documents to reduce the
program on investigation and prosecution for incidence of trafficking in persons through the use of
trafficking in fraudulent identification documents;
persons and other related offenses for (v) Establish and implement pre-marriage, onsite
prosecutors and law enforcement officers; and pre-departure counseling program on
(vi) Receive, evaluate, process and investigate inter-marriages
For this purpose, the DFA shall promulgate the effecting closure of said establishments pursuant to the
necessary guidelines to implement the said program; provisions of R.A. No. 8042; and
and (d) Database of cases involving, and personalities
(vi) Integrate into the pre-departure orientation seminars involved in, trafficking persons separate and distinct from
for foreign service personnel a training module on its illegal Recruitment cases for monitoring purposes;
trafficking in persons. (iv) In cases of repatriation involving workers recruited
(d) Department of Labor and Employment (DOLE) and deployed by licensed agencies, the POEA shall
(i) Ensure the strict implementation of and compliance notify the agency concerned to provide a plane ticket or
with rules and guidelines relative to the employment of Prepaid Travel Advice (PTA) and shall impose sanctions
persons locally and overseas; and on said agencies for failure to cooperate in providing
(ii) Monitor, document and report cases of trafficking in welfare assistance to OFWs they have deployed; and
persons involving employers and labor recruiters; (v) Continue to regulate private sector participation in the
(iii) Make available existing resources such as recruitment and overseas placement of workers through
employment and livelihood programs as part of the its licensing and registration system pursuant to its rules
government’s measure to suppress trafficking in and regulation on overseas employment. It shall
persons; and formulate and implement, in coordination with
(iv) Conduct public awareness programs and activities to appropriate entities concerned, when necessary, a
prevent victimization. system of promoting and monitoring the overseas
(e) Philippine Overseas Employment employment of Filipino workers, taking into consideration
Administration (POEA) their welfare and protection from the dangers and risks
(i) Implement an effective pre-employment orientation inherent in overseas employment, including illegal
seminar and pre-departure counseling program to trafficking.
applicants for overseas employment; (f) Bureau of Immigration (BI)
(ii) Formulate a system providing free legal assistance to (i) Strictly administer and enforce immigration
trafficked persons which shall include the following: and alien registration laws;
(a) Provision of legal assistance to victims of trafficking (ii) Adopt measures for the apprehension of suspected
in persons by means of, or in the guise of, recruitment traffickers both at the place of arrival and departure;
for overseas employment, as defined in Section 6 of (iii) Ensure compliance by the Filipino fiancés/fiancées
R.A. No. 8042, such as free legal advice, assistance in and spouses of foreign nationals with the predeparture
the preparation and filing of administrative and criminal and counseling program requirement of the Act;
actions for trafficking as defined in the Act, without (iv) Strictly implement the requirement for a parental
prejudice to the filing of administrative and/or criminal travel authority duly processed by the DSWD for minors
actions for illegal recruitment, as defined in R.A.No. traveling abroad unaccompanied by one parent, and the
8042, when proper; travel clearance for minors traveling abroad
(b) Assistance in the prosecution of persons who engage unaccompanied by both parents;
in, promote and facilitate trafficking in persons by means (v) Ensure compliance by Overseas Filipino Workers of
of, or in the guise of, recruitment for overseas the departure requirements of the POEA;
employment, as defined in Section 6 of R.A. 8042; (vi) Conduct periodic training and seminar on fraudulent
In this connection, the POEA shall likewise adopt a document detection and passenger assessment to
policy of confidentiality in all cases referred to it involving enhance the level of skill and competence of all its
possible violations of the Act. immigration officers and agents in document fraud
(iii) Adopt policies and procedures, prepare and detection;
implement programs geared towards the eradication of (vii) Conduct periodic study of the trends, routes and
trafficking in persons as well as acts that promote modus operandi employed by the traffickers including
trafficking in persons such as, but not limited to, the its recruitment base, transit countries and country of
following: destination;
(a) Comprehensive and Integrated Education (viii) Establish a network with other law enforcement
Program on overseas employment which shall be agencies and immigration counterparts of source, transit
undertaken in partnership with other relevant and destination countries to facilitate exchange and
organizations and government entities. Such education sharing of information on the activities of
program shall cover all stages of recruitment and trafficking syndicates;
employment and shall provide information useful for (ix) Establish network with LGUs for the effective
overseas workers including a module on anti-trafficking apprehension of suspected traffickers and their cohorts;
program and measures; (x) Develop a program for the procurement and
(b) Nationwide multi-media and sustainable grassroots installation of International Civil Aviation Organization
information campaign to create public awareness on the (ICAO) — compliant machine readers and fraud
realities of overseas employment and dangers of detection equipment at all international airports and
becoming victims of illegal trafficking activities; seaports in the country to deter trafficking in persons;
(c) Conduct special operations, complementary to the and
power of the PNP, on persons and entities engaged (xi) Develop and distribute materials containing advisory
in recruitment for overseas employment reported to be and other pertinent information to enhance awareness
violating the provisions of the Act for the purpose of against trafficking in persons.
(g) Philippine National Police (PNP) (v) Assist the Council in the formulation of prevention
(i) Undertake surveillance, investigation and and reintegration programs for victims of trafficking
arrest of individuals or persons suspected to be including the demand side; and
engaged in trafficking; (vi) Conduct studies on the root causes, magnitude
(ii) Coordinate closely with various law enforcement and forms of trafficking in women and document
agencies to secure concerted efforts for effective best practices in prevention programs.
investigation and apprehension of suspected traffickers. Sec. 18. Roles and Responsibilities of Other
For this purpose, it shall also: Relevant National Government Agencies. —
(a) Pursue the detection and investigation of suspected Consistent with their mandates under existing laws, the
or alleged trafficking activities at airports through its following agencies shall integrate human trafficking
Aviation Security Group, at seaports and/or harbors issues in their strategy and program formulation and
through its Maritime Group, and at land transportation implement programs and services for the prevention and
terminals through its police station and when proper, file suppression of trafficking and for the protection of
the appropriate charges against traffickers in the proper trafficked victims.
court; They shall likewise have the following roles and
(b) Coordinate with the Philippine Ports Authority (PPA) responsibilities:
which may have initially processed complaints at their (a) Department of the Interior and Local
“Balay Silungan sa Daungan”; and Government (DILG)
(c) Coordinate with local and barangay officials with (i) Conduct a systematic information
espect to the apprehension and/or arrest of traffickers. dissemination/advocacy and prevention campaign
(iii) Establish a system to receive complaints and calls to against trafficking in persons;
assist trafficked persons, and the conduct of rescue (ii) Maintain a databank for the effective monitoring,
operations; documentation and prosecution of cases on
(iv) Direct and supervise the enforcement of its mandate trafficking in persons;
under the Act and its rules and regulations; (iii) Issue directives to the LGUs and barangays to
(v) Supervise the conduct of investigations relating to institutionalize recruiter-monitoring mechanisms and
apprehension occurring at land transportation terminals, increase public awareness regarding trafficking
domestic seaports and airports and monitor the filing of in persons;
appropriate cases against traffickers; (iv) Promote family and community empowerment to
(vi) Formulate plans and programs for the prevention prevent trafficking in persons; and
and/or reduction of trafficking in persons; (v) Strengthen, activate and mobilize existing
(vii) Integrate in the program of instruction committees, councils, similar organizations and special
comprehensive, gender sensitive and child-friendly bodies at the local level to prevent and suppress
investigation and handling of cases of trafficking in trafficking in persons.
persons in the Philippine National Police Academy (b) Department of Tourism (DOT)
(PNPA), Philippine Public Safety College (PPSC) and (i) Formulate and implement preventive measures to
other training schools operated and managed by the stop sex tourism packages and other activities of tourism
PNP; and establishments which might contribute to the trafficking
(viii) Establish anti-trafficking section under the Women in persons in coordination with local governmentunits;
and Children Complaint Desk (WCCD) in all city and
and municipal police stations. (ii) Provide training to tourist security officers on
(h) National Commission on the Role of Filipino surveillance, investigation and rescue operation
Women (NCRFW) strategies.
(i) Actively advocate and participate in international and (c) Department of Education (DepEd)
regional discussion and initiatives in trafficking in women (i) Integrate in the appropriate subject areas
and include the same in all of its international core messages on migration and trafficking in
commitments and policy pronouncements. Where the elementary and secondary levels by providing lesson
possible and appropriate, work with the Department of with emphasis on their implications and social costs
Foreign Affairs in forging bilateral and multilateral to persons and country;
collaborative projects on trafficking; (ii) Provide opportunities for trafficked persons in the
(ii) Assist the Council in the formulation and monitoring educational mainstream through the basic education
of policies addressing the issue of trafficking in persons and non-formal education curricula; and
in coordination with relevant government agencies; (iii) Provide education and raise consciousness of
(iii) Assist the Council in the conduct of information boys/men in schools and communities in order to
dissemination and training to frontline government discourage the “demand side” or the use/buying of
agencies, NGOs and the general public; trafficked women and children.
(iv) Assist in the development of gender responsive (d) Department of Health (DOH)
documentation system in coordination with other (i) Make available its resources and facilities in providing
agencies and the National Statistical Coordination Board health care to victims of trafficking which shall, at all
(NSCB) through its monitoring of the situation of women times, be held confidential.
particularly on violence against women; (e) Department of Transportation and Communication
(DOTC)
(i) Provide guidelines for the land, sea and air transport particularly with the INTERPOL.
providers to train their personnel in trafficking (i) Overseas Workers Welfare Administration
in persons; (OWWA)
(ii) Standardize guidelines for monitoring trafficking in (i) Assist in the information and advocacy campaign
persons in every port; and among OFWs to prevent trafficking in persons;
(iii) Monitor the promotion of advertisement of trafficking (ii) Assist in the documentation of cases of trafficking
in the Internet. and ensure the provision of its programs and
(f) Commission on Human Rights (CHR) services to OFWs and their families; and
(i) Conduct advocacy and training programs relating to (iii) Include a module on anti-trafficking to its
anti-trafficking; pre-departure seminar.
(ii) Investigate and recommend for prosecution violations (j) Council for the Welfare of Children (CWC)
of the Act; (i) Integrate in its development and strategic frameworks
(iii) Provide legal and financial assistance to victims of issues and concerns affecting trafficking in children and
trafficking; and ensure the adoption of such frameworks by the LGUs
(iv) Integrate anti-trafficking efforts in the Barangay and other stakeholders;
Human Rights Action Center (BHRAC); and (ii) Vigorously advocate against trafficking of children;
(v) Monitor government compliance to international (iii) Improve data on trafficking in children through
human rights treaty obligations related to the integration of critical and relevant indicators into the
suppression/elimination of trafficking, particularly the monitoring system for children;
Convention for the Suppression of Traffic in Persons and (iv) Adopt policies and measures that will protect and
Exploitation of the Prostitution of Others, the Convention promote the rights and welfare of children victims of
on the Elimination of All Forms of Discrimination Against trafficking and coordinate and monitor their
Women, the Convention on the Rights of the Child, the implementation; and
Convention on the Protection of Migrant Workers and (v) Address issues on trafficking of children through
Members of Their Families, and the UN Convention policy and program interventions.
Against Transnational Organized Crimes including its (k) Philippine Information Agency (PIA)
Protocol to Prevent, Suppress and Punish Trafficking in (i) Enhance public awareness on trafficking in persons,
Persons, Especially Women and Children. pertinent laws and possible actions to prevent
(g) National Bureau of Investigation (NBI) victimization and re-victimization by developing public
(i) Conduct surveillance, monitor and investigate advocacy program as well as printing and distributing
recruiters, travel agencies, hotels and other appropriate information materials.
establishments suspected to be engaged in trafficking in (l) Technical Education and Skills Development
persons; Authority (TESDA)
(ii) Coordinate closely with all the Council member (i) Provide skills and entrepreneurial training to
agencies for effective detection and investigation of trafficked victims; and
suspected traffickers; (ii) Formulate a special program to ensure the provision
(iii) Formulate plans and programs for the detection and of appropriate skills training for trafficked victims.
prevention of trafficking, and the arrest and Sec. 19. Roles and Responsibilities of Local
prosecution of suspected traffickers; Government Units (LGUs). The LGUs shall
(iv) Share intelligence information on suspected have the following roles and responsibilities:
traffickers to all Council member agencies when (a) Monitor and document cases of trafficked persons in
necessary; and their areas of jurisdiction;
(v) Foster cooperation and coordination with the law (b) Effect the cancellation of licenses of establishments
enforcement agencies of other countries and the which violate the provisions of the Act and
INTERPOL in the investigation and apprehension of ensure its effective prosecution;
suspected traffickers. (c) Undertake an information campaign against
(h) Philippine Center on Transnational Crime (PCTC) trafficking in persons through the establishment of the
(i) Continue to function in accordance with its mandate Migrants Advisory and Information Network (MAIN)
pursuant to Executive Order No. 62, s. desks in municipalities and provinces in coordination
1999, on matters concerning trafficking in persons with with the DILG, PIA, Commission on Filipino Overseas
transnational dimension; (CFO), NGOs and other concerned agencies;
(ii) Undertake strategic researches on the structure and (d) Encourage and support community based initiatives
dynamics of trafficking in persons with transnational which address trafficking in persons;
crime dimension, predict trends and analyze given (e) Provide basic social services for the prevention,
factors for the formulation of individual and collective rescue, recovery, rehabilitation and reintegration/after
strategies for the prevention and detection of trafficking care support services to victims of trafficking in persons
in persons and the apprehension of criminal elements and their families;
involved; (f) Enact ordinances or issuances aimed at
(iii) Conduct case operations in coordination with other providing protection and support to trafficked
law enforcement agencies; and persons and adopt measures to prevent and
(iv) Serve as the focal point in international law suppress trafficking in persons; and
enforcement coordination on trafficking in persons
(g) Strengthen, activate and mobilize existing a mechanism to ensure the timely, coordinated and
committees, councils, similar organizations and effective response to cases of trafficking in persons.
special bodies at the provincial, city, municipal and
barangay levels to prevent and suppress trafficking in Article VII
persons. INTERCEPTION, ARREST AND INVESTIGATION OF
Sec. 20. Roles and Responsibilities of NonGovernment TRAFFICKERS
Organizations which are Members of the Council. The Sec. 24. Procedure in the Interception, Arrest and
NGO members of the Council shall have the following Investigation of Traffickers in Persons at International
roles and responsibilities: Airport or Seaport. When an offense punishable under
(a) Assist government agencies in formulating and the Act or any other offense in relation thereto or in
implementing policies, programs and IEC campaign furtherance thereof has been committed, or is actually
against trafficking; being committed in the presence of an immigration
(b) Assist in capability-building activities of government officer assigned at the international airport or seaport,
personnel and share their experiences and he/she shall immediately cause the interception and/or
expertise in handling trafficking cases; arrest of the persons involved for investigation. The DOJ
(c) Coordinate with concerned government agencies, Task Force Against Trafficking shall cause the filing of
LGUs and other NGOs in reporting alleged perpetrators, appropriate case in court when evidence warrants. If the
rescuing victims of trafficking, and conducting person arrested is a foreigner, the concerned B.I.
investigation/ surveillance, if indicated; investigating unit shall take full custody over the arrested
(d) Undertake programs and activities for the prevention, person, conduct the investigation proper motu proprio
rescue, recovery and reintegration of the victims of and endorse the complaint and supporting documents to
trafficking and other support services for their families; the prosecutor for inquest or MTC Judge for appropriate
(e) Document and/or assist in the documentation of proceedings.
cases of trafficking; Sec. 25. Procedure in the Interception, Arrest and
(f) Disseminate guidelines to all its network members, Investigation of Traffickers in Persons at Local Airport,
local and international, on policies and programs Seaport and Land Transportation Terminals. In cases
addressing issues on trafficking in persons; where the violation is committed at local seaport, airport
(g) Formulate educational module to address thedemand or in land transportation terminals, the members of
side of trafficking; and the law enforcement agency shall immediately cause the
(h) Perform such other tasks as may be agreed upon by interception and/or arrest of the suspected traffickers.
the Council. Thereafter, the investigation shall be conducted by the
Sec. 21. Assistance of Other Agencies and Institutions. law enforcement agency on the person/s
In implementing the Act and these rules and regulations, intercepted/arrested, and referred to the Prosecutor’s
the agencies concerned may seek and enlist the Office of the place where the offense was committed or
assistance of NGOs, people’s organizations (POs), civic to the DOJ Task Force Against Trafficking in Persons or
organizations and other volunteer groups, which will all Task Force on Passport Irregularities or Municipal Trial
likewise be encouraged to assume the same roles and Court of the place where the crime was committed in
responsibilities enumerated in the preceding case of municipalities and non-chartered cities for
purposes of inquest or preliminary investigation as the
Section. case may be.
Article VI Sec. 26. Creation of a Joint Task Force Against
REPORTING OF SUSPECTED/ ALLEGED Trafficking in Persons. For the purpose of the above
TRAFFICKING INCIDENT provisions, there shall be created a Joint Task Force
Sec. 22. Who May and To Whom to Report. Against Trafficking in Persons to be assigned at airports
Any person who has any knowledge or learns of facts or composed of Prosecution, BI, PNP, and NBI personnel
circumstances that give rise to a reasonable belief that a and another Task Force at land transportation terminals
person will be, or may be, or has been trafficked shall and local seaports and airports to be composed of
immediately report the same, either orally, in writing or Prosecution, PNP, BI, PPA, and PCG personnel. The
through other means, to any member of the ouncil, the DOJ National Task Force Against Trafficking in Persons
barangay authorities, the nearest police or other law shall issue the necessary operational guidelines for the
enforcement agency, the local social welfare and effective coordination, apprehension, investigation and
development office or the local Council for the Protection prosecution of violations of the Act. The DOJ Task Force
of Children. assigned at local seaports, airports and land
In the case of trafficking cases abroad, the report shall transportation terminals shall cooperate or coordinate
be made to the Philippine Embassy/Consulate which has with the local authorities, local social welfare and
jurisdiction over the place where the trafficking occurred development officers or active NGOs concerned with
or where the trafficked person is found. trafficking in persons in the locality.
Sec. 23. Action on the Report. The agency, entity or Sec. 27. Rights of the Person Arrested, Investigated or
person to whom the report is made shall immediately Detained. In all cases, the rights of the person arrested,
act as soon as the report is received in coordination with investigated or detained as provided by the Philippine
other relevant government agency for appropriate Constitution and under Republic Act No. 7438 (An Act
intervention. For this purpose, the Council shall develop Defining Certain Rights of Persons Arrested, Detained or
Under Custodial Investigation As Well As The Duties of (c) Legal Assistance Fund. Trafficked persons shall be
the Arresting, Detaining and Investigating Officers, and considered under the category “Overseas Filipinos in
Providing Penalties For Violations Thereof) shall, at all Distress” and may avail of the Legal Assistance
times, be respected. Fund created by Republic Act No. 8042, subject to the
guidelines as provided by law, including rules and
Article VIII regulations issued by the DFA as to its utilization and
RESCUE/RECOVERY AND REPATRIATION disbursement.
OF VICTIMS Sec. 30. Repatriation of Trafficked Persons.
Sec. 28. The Country Team Approach. The country team The DFA, in coordination with DOLE and other
approach under Executive Order No. 74, series of 1993 appropriate agencies, shall have the primary
and further enunciated in Republic Act No. 8042 shall be responsibility for the repatriation of trafficked persons,
the operational scheme under which Philippine regardless of whether they are documented or
embassies abroad shall provide protection to trafficked undocumented.
persons regardless of their immigration status. Under the If, however, the repatriation of trafficked persons shall
Country Team Approach, all officers, representatives expose the victims to greater risks, the DFA shall make
and personnel of the Philippine government posted representation with the host government for the
abroad regardless of their mother agencies shall, on a extension of appropriate residency permits and
per country basis, act as one-country team with mission protection, as may be legally permissible in the host
under the leadership of the Ambassador or the head of country.
mission. Sec. 31. Procedure for Repatriation. In accordance with
Sec. 29. Rescue at the Country of existing rules and regulations on the use and
Destination. — disbursement of Assistance-to-Nationals Fund of the
(a) Procedure. When the victim is a Filipino national and DFA for the repatriation of distressed OFWs, the Post
at the time of rescue is residing abroad, the embassy or shall immediately request the DFA, through the Office of
consulate which has jurisdiction over the place where the Undersecretary for Migrant Workers’ Affairs
the victim is residing shall verify the veracity of the report (OUMWA), allocation of funds for the repatriation of the
of incidence of trafficking and inquire about the victim. In appropriate cases and to avoid re-victimization,
condition of the victim. Consistent with the country team the Post may withdraw the passport of the victim and
approach, the Post concerned shall send a team forward it to the DFA and in its place issue a Travel
composed of a consular officer and personnel from the Document (FA Form 79(B)) valid for direct travel to the
Philippine Overseas Labor Office (POLO) or the Filipino Philippines. The Post concerned shall report to the DFA,
Workers Resource Center (FWRC), the Office of the through the OUMWA, copy furnished the Office of
Social Welfare Attaché as the case may be, to conduct a onsular Affairs, the actual date of repatriation and other
visit to the jail, establishment, work site or residence of pertinent information and submit a copy of the sworn
the victim. In the case of Posts without attached statement and other relevant documents. In appropriate
services, the team will be composed of a consular officer cases, especially when the victim is suffering from
and personnel from the Assistance-to-Nationals mental illness, has suffered physical or sexual abuse or
section. The Post shall make representations with the has received serious threats to his or her life and safety,
police authorities or other relevant law enforcement the victim will be met upon arrival in the Philippines by
agencies with respect to the conduct of rescue DSWD personnel, in coordination with the Joint Task
operations. Rescue operation shall also be made in Force Against Trafficking in Persons and other
cooperation and close coordination with some NGO’s, government agencies such as OWWA, BI and DOH. In
local contacts or private individuals when necessary. the case of mentally ill patients, minors, and other
In countries and areas where the services of the FWRC persons requiring special care, the Post shall designate
is not accessible, a mobile type of services shall be a duly authorized individual to escort said victims to the
extended by the country team members to trafficked Philippines. The victim will be encouraged, if he or she
persons regardless of their status in the host country. has not done so before, to execute a sworn
Thereafter, the victim will be encouraged to execute a statement with the view of filing the appropriate charges
sworn statement, recounting among others, the against the suspected trafficker in the Philippines.
people/establishment involved in the recruitment/transfer Should the victim request the assistance of DFA,
and deployment, the modus operandi employed to OUMWA shall interview the victim and make
recruit, transport and deploy the victim, and other recommendations for investigation with law enforcement
pertinent information which could provide a lead in the agencies such as the PNP and the NBI. In cases where
investigation and eventual prosecution of the recruitment agencies are involved, the case shall also be
perpetrators. referred to the POEA for appropriate action. The report
(b) Assistance to Trafficked Persons. The trafficked shall also be forwarded to the BI for case build up. The
person shall be provided with temporary shelter and victim may be referred to the DSWD/Local Social
other forms of assistance. In countries where there is an Welfare And Development Office or to the NBI One-Stop
Filipino Workers Resource Center, the services available Shop for psychosocial interventions, psychological and
to overseas Filipinos as provided for in Republic Act No. medical examination and follow-through therapy
8042 shall also be extended to trafficked persons sessions. Protective custody and emergency shelter
regardless of their status in the host country. shall also be provided to the victim, in appropriate cases.
Sec. 32. Rescue Within the Country. Rescue (c) Active cooperation and coordination with NGOs and
operations within the country shall be primarily other members of the civil society including the business
undertaken by the law enforcement agencies in community, tourismrelated industries as well as the
coordination with LGUs, DOLE, DSWD and media in the rehabilitation and reintegration of
DOH. Upon receipt of a report of a suspected or victims/survivors shall be undertaken.
alleged trafficking ncident or activity, the law Sec. 34 Procedure. The following procedure shall be
enforcement agency to which the report is made undertaken in implementing a comprehensive program
shall conduct rescue operations of trafficked for the recovery, rehabilitation and reintegration of
persons. At the minimum, rescue operations victims/survivors of trafficking:
shall be guided by the following: (a) The victim/survivor of trafficking may go to the
(a) Conduct of rescue operation of trafficked nearest DSWD/LGU Social Welfare and Development
persons shall be properly coordinated with the Office for assistance;
concerned agencies particularly DSWD/local (b) Upon referral/interview the DSWD/Local Government
social welfare and development officer; Social Worker shall conduct an intake assessment
(b) The rescue team shall ensure full protection to determine appropriate intervention with the
of the rights of the trafficked person as well as victim/survivor;
the traffickers while under its custody and (c) The social worker shall prepare a social case
control; study report/case summary for the victim/survivor’s
(c) After the rescue operation, the investigation admission to a residential facility for temporary shelter or
of the case shall be referred to the Women and communitybased services;
Children Complaint Desk (WCCD) desk of PNP, (d) Provide services/interventions based on the
the Violence Against Women and Children rehabilitation plan in coordination with appropriate
Division (VAWCD) of the NBI or other similar agencies, e.g. counseling, legal, medical and
units or desks; educational assistance; livelihood and/or skills training;
(d) After the completion of the necessary as well as appropriate services to the family of the
documents for the filing of cases, the rescue trafficked victim/survivor; and
team shall effect the appropriate and immediate (e) Monitor implementation and periodically
turn-over of the trafficked person to DSWD/local evaluate/update the rehabilitation plan until the victim/
social welfare and development officer; and survivor has been reintegrated with his/her family and
(e) In the course of investigation of the trafficked community.
person, the investigator handling the case shall Sec. 35. Capability Building of Service Providers. The
ensure that the victim shall be accorded with proper frontline agencies and the service providers must
treatment and investigated in a child-friendly and undergo training and other capability building activities to
gender-sensitive environment. In the conduct of enhance their knowledge and skills in handling cases of
investigative interviews on children, the law enforcers trafficking to prevent exacerbation of traumatic stress
shall likewise be guided by the Rule on the and facilitate more effective crisis interventions, healing
Examination of a Child Witness promulgated by and reintegration services.
Supreme Court, as may be applicable. For this Sec. 36. Documentation. Data banking, research and
purpose, the investigators shall be properly documentation of best practices in rehabilitation and
trained in the handling of cases of trafficked reintegration programs shall be conducted to identify
persons efficient and effective measures and services for the
Article IX victims of trafficking and their families.
REHABILITATION AND Article X
REINTEGRATION OF VICTIMS PROSECUTION, CIVIL FORFEITURE AND
Sec. 33. Comprehensive Program. The RECOVERY OF CIVIL DAMAGES
DSWD, LGUs and other concerned agencies Sec. 37. Who May File a Complaint.
shall provide a comprehensive, gendersensitive Complaints for violations of the Act may be filed
and child friendly program for the recovery, by the following:
rehabilitation and reintegration of victims/survivors of (a) Any person who has personal knowledge of
trafficking, such as but not limited to the the commission of the offense;
following: (b) The trafficked person or the offended party;
(a) Implementation of residential care, child placement, (c) Parents or legal guardians;
educational assistance, livelihood and skills training and (d) Spouse;
other community-based services must be responsive to (e) Siblings; or
the specific needs and problems of the victims/survivors (f) Children.
and their families; The foregoing persons may also seek the
(b) Active involvement and participation of the assistance of the Council in the filing of
victims/survivors in the rehabilitation and reintegration complaint.
process shall be encouraged. In order to empower them Sec. 38. Institution of Criminal Action; Effect.
and to prevent their revictimization, capability building The institution of the criminal action before the
programs must be provided; and Law, Rules and Local Office of the Prosecutor or the court, as the case
Instruments 5 3 may be, for purposes of preliminary investigation
shall interrupt the running of the period for prescription of Article XI
the offense charged. The prescriptive period shall LEGAL PROTECTION AND OTHER
commence to run again when such proceedings SERVICES
terminate without the accused being convicted or Sec. 43. Legal Protection. Trafficked persons shall be
acquitted or are unjustifiably stopped for any reason not recognized as victims of the act or acts of trafficking. As
imputable to the accused. such, they shall not be penalized for crimes directly
Sec. 39. Institution of Criminal and Civil Actions. related to the acts of trafficking enumerated under the
Pursuant to the Revised Rules on Criminal Procedure, Act or in obedience to the order made by the trafficker in
when a criminal action is instituted, the civil action relation thereto. In this regard, the consent of the
arising from the offense charged shall be deemed trafficked person to the intended exploitation set forth in
instituted with the criminal action unless the offended the Act shall be irrelevant.
party waives the civil action, reserves the right to Sec. 44. Preferential Entitlement under the Witness
institute it separately or institutes the civil action prior to Protection Program. Any provision of Republic Act No.
the criminal action. 6981 to the contrary notwithstanding, any trafficked
Sec. 40. Exemption from Filing Fees. When the person shall be entitled to the witness protection
trafficked person institutes a separate civil action for the program provided therein.
recovery of civil damages, he/she shall be exempt from Sec. 45. Immunity from Criminal Prosecution. Any
the payment of filing fees. person who has personal knowledge in the commission
Sec. 41. Venue. The offenses punishable under the Act of any of the offenses penalized under the Act and who
shall be considered as a continuing offense and may be voluntarily gives material information relative thereto and
filed in the place where the offense was committed or willingly testifies against the offender shall be exempt
where any of its from prosecution for the offense with reference to which
elements occurred or where the trafficked his information and testimony were given, subject to the
person actually resides at the time of the following conditions:
commission of the offense. Provided, that the (a) The information and testimony are necessaryfor the
court where the criminal action is first filed shall conviction of the accused; and
acquire jurisdiction to the exclusion of other (b) Such information and testimony are not yet in the
courts. possession of the state.
Sec. 42. Forfeiture of the Proceeds and Sec. 46. Mandatory Services. To ensure recovery,
Instruments Derived from Trafficking in rehabilitation and reintegration into the mainstream of
Persons. — society, concerned government agencies shall make
(a) After conviction, all proceeds and instruments, available the following services to trafficked persons:
including any real or personal property used in the (a) Emergency shelter or appropriate housing;
commission of the offense, shall be ordered confiscated (b) Counseling;
and forfeited in favor of the State unless the owner (c) Free legal services which shall include information
thereof can prove the lack of knowledge of the use of about the victims’ rights and the procedure for filing
such property in the said illegal activity. Any award for complaints, claiming compensation and such other legal
damages arising from the commission of the offense remedies available to them, in a language understood by
may be satisfied and charged against the personal and the trafficked person;
separate properties of the offender and if the same is (d) Medical or psychological services;
insufficient to satisfy the claim, the balance shall be (e) Livelihood and skills training; and
taken from the forfeited properties as may be ordered by (f) Educational assistance to a trafficked child. Sustained
the court. supervision and follow through mechanism that will track
(b) During the pendency of the criminal action, no the progress of recovery, rehabilitation and reintegration
property or income used or derived therefrom which are of the trafficked persons shall be adopted and carried
subject to confiscation and forfeiture, shall be disposed, out.
alienated or transferred and the same shall be in Sec. 47. Legal Protection of Trafficked Persons Who are
custodia legis and no bond shall be admitted for the Foreign Nationals. Trafficked persons in the Philippines
release of the same. who are nationals of a foreign country shall be entitled to
(c) The trial prosecutor shall avail of the provisional appropriate protection, assistance and services available
remedies in criminal cases to ensure the confiscation, to the trafficked persons and shall be allowed to
preservation and forfeiture of the said properties. continued presence in the Philippines for a period of fifty-
(d) If the offender is a public officer or employee, the nine (59) days to enable them to effect the prosecution
forfeiture of his/her property found to be unlawfully of the offenders. Such period may be renewed upon
acquired shall be governed by Republic Act No. 1379 showing of proof by the trial prosecutor that their further
otherwise known as “An Act Declaring Forfeiture in testimony is essential to the prosecution of the case. The
Favor of the State Any Property Found to Have Been trial prosecutor shall course his request for extension to
Unlawfully Acquired by Any Public Officer or Employee the Council which shall accordingly act upon the same. If
and Providing for the Proceedings Therefore.” 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 Article XIV
TRUST FUND CONFIDENTIALITY
Sec. 48. Trust Fund; Sources. All fines Sec. 52. Confidentiality. At any stage of the
imposed under the Act and the proceeds and investigation, prosecution and trial of an offense under
properties forfeited and confiscated pursuant to this Act, law enforcement officers, prosecutors, judges,
Section 14 of the Act and Article IX, Section 5 of court personnel and medical practitioners, as well as
these rules and regulations shall accrue to a Trust Fund parties to the case, shall recognize the right to privacy of
to be administered and managed by the Council. the trafficked person and the accused. Towards this end,
Sec. 49. Utilization. The Trust Fund shall be used law enforcement officers, prosecutors and judges to
exclusively for programs that will prevent acts of whom the complaint has been referred may, whenever
trafficking and protect, rehabilitate, reintegrate trafficked necessary to ensure a fair and impartial proceeding, and
persons into the mainstream of society. Such programs after considering all circumstances for the best interest
shall include, but not limited to the following: of the parties, order a closed-door investigation,
(a) Provision for mandatory services set forth in Section prosecution or trial. The name and personal
23 of the Act; and Section 47 of thesecRules and circumstances of the trafficked person or of the accused,
Regulations. or any other information tending to establish their
(b) Sponsorship of a national research programon identities and such circumstances or information shall
trafficking and establishment of a data collection system not be disclosed to the public. In case when the
for monitoring and evaluation purposes; prosecution or trial is conducted behind closed doors, it
(c) Provision of necessary technical and material shall be unlawful for any editor, publisher, reporter or
support services to appropriate government agencies columnist in case of printed materials, announcer or
and nongovernment organizations (NGOs); producer in case of television and radio, producer and
(d) Sponsorship of conferences and seminars to provide director of a film in case of the movie industry, or any
venue for consensus building among the public, the person utilizing tri-media or information technology to
academe, government, NGOs and international cause publicity of and case of trafficking in persons.
organizations; and Article XV
(e) Promotion of information and education campaign on OFFENSES AND PENALTIES
trafficking. Sec. 53. Acts of Trafficking in Persons. Any
The Trust Fund may also be used to support the person, natural or juridical, who commits any of the
operations of the Secretariat. following acts shall suffer the penalty of imprisonment of
Sec. 50. Use and Disbursement of Trust Fund. The use twenty (20) years and a fine of not less than One million
and disbursement of the trust fund shall be subject to the pesos (P1,000,000.00) but not more than Two million
approval of at least two-thirds (2/3) of the members of pesos (P2,000,000.00):
the Council and shall be governed by existing (a) To recruit, transport, transfer, harbor, provide, or
government accounting and auditing rules and receive a person by any means, including those done
regulations. under the pretext of domestic or overseas employment
Article XIII or training or apprenticeship, for the purpose of
INTERNATIONAL COOPERATION prostitution, pornography, sexual exploitation, forced
Sec. 51. International Cooperation. The Council, in close labor, slavery, involuntary servitude or debt bondage;
coordination with the DFA and other concerned (b) To introduce or match for money, profit or
agencies, shall promote cooperation, technical material, economic or other consideration, any
assistance and partnership among governments and person or, as provided for under Republic Act No. 6955,
regional and international organizations on the following any Filipino woman with a foreign national, for marriage
aspects: for the purpose of acquiring, buying, offering, selling or
(a) Prevention, protection, prosecution, repatriation and trading him/her to engage in prostitution, pornography,
reintegration aspects of trafficking in persons, especially sexual exploitation, forced labor, slavery, involuntary
women and children; servitude or debt bondage;
(b) Systematic exchange of information and good (c) To offer or contract marriage, real or simulated, for
practices among law enforcement and immigration the purpose of acquiring, buying, offering, selling, or
authorities; trading them to engage in prostitution, pornography,
(c) Prevention, detection, investigation and prosecution sexual exploitation, forced labor or slavery, involuntary
of trafficking in persons, including the protection of servitude or debt bondage;
victims through exchanges and joint training at the (d) To undertake or organize tours and travel plans
bilateral, regional and international levels, between and consisting tourism packages or activities for the purpose
among relevant officials including police, judges, of utilizing and offering persons for prostitution,
prosecutors, immigration officers, other law enforcement pornography or sexual exploitation;
agents as well as consular authorities; and (e) To maintain or hire a person to engage in prostitution
(d) Repatriation of victims of trafficking with due regard or pornography;
to their safety and in consideration of humanitarian (f) To adopt or facilitate the adoption of persons for the
and compassionate factors. purpose of prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or debt
bondage;
(g) To recruit, hire, adopt, transport or abduct a and shall be penalized with the penalty of life
person, by means of threat or use of force, imprisonment and a fine of not less than Two million
fraud, deceit, violence, coercion, or intimidation pesos (2,000,000.00) but not more than Five million
for the purpose of removal or sale of organs of pesos (5,000,000.00);
said person; and (a) When the trafficked person is a child;
(h) To recruit, transport or adopt a child to (b) When the adoption is effected through Republic Act
engage in armed activities in the Philippines or No. 8043, otherwise known as the “Inter-Country
abroad. Adoption Act of 1995” and said adoption is for the
Sec. 54. Acts that Promote Trafficking in purpose of prostitution, pornography, sexual exploitation,
Persons. Any person, natural or juridical, who forced labor, slavery, involuntary servitude or debt
shall commit the following acts which promote or bondage;
facilitate trafficking in persons, shall be (c) When the crime is committed by a syndicate , or in
penalized with the penalty of imprisonment of large scale. Trafficking is deemed committed by a
fifteen (15) years and a fine of not less than Five syndicate if carried out by a group of three (3) or more
hundred thousand pesos (P500,000.00) but not persons conspiring or confederating with one another. It
more than One million pesos (P1,000,000.00): is deemed committed in large scale if committed against
(a) To knowingly lease or sublease, use or allow three (3) or more persons , individually or as a group;
to used any house, building or establishment for (d) When the offender is an ascendant, parent, sibling,
the purpose of promoting trafficking in persons; guardian or a person who exercises authority over the
(b) To produce, print and issue or distribute trafficked person or when the offense is committed by a
unissued, tampered or fake counseling public officer or employee;
certificates, registration stickers and certificates (e) When the trafficked person is recruited to engage in
of any government agency which issues these prostitution with any member of the military or law
certificates and stickers as proof of compliance enforcement agencies;
with government regulatory and pre-departure (f) When the offender is a member of the military orlaw
requirements for the purpose of promoting enforcement agencies; and
trafficking in persons; (g) When by reason or on occasion of the act of
(c) To advertise, publish, print, broadcast or trafficking in persons, the offended party dies, becomes
distribute, or cause the advertisement, insane, suffers mutilation or is afflicted with Human
publication, printing, Immunodeficiency Virus HIV or the
broadcasting or distribution by any means, Acquired Immune Deficiency Syndrome (AIDS).
including the use of information technology and Sec. 56. Violation of Confidentiality Provisions. Any
the internet of any brochure, flyer, or any person who violates Section 7 of the Act and Section 52,
propaganda material that promotes trafficking in Article XIV hereof shall suffer the penalty of
persons; imprisonment of six (6) years and a fine not less than
(d) To assist in the conduct of misrepresentation Five hundred thousand pesos (P500,000.00) but not
or fraud for purposes of facilitating the more than One million pesos (P1,000,000.00).
acquisition of clearances and necessary exit Sec. 57. Application of Penalties and Other Sanctions.
documents from government agencies that are The following shall be applied in the imposition of
mandated to provide pre-departure registration penalties:
and services for departing persons for the (a) If the offender is a corporation, partnership,
purpose of promoting trafficking association, club, establishment or any judicial person,
in persons; the penalty shall be imposed upon the owner, president,
(e) To facilitate, assist or help in the exit and partner, manager, and/or any responsible officer who
entry of persons from/to the country at participated in the commission of the crime or who shall
international and local airports, territorial have knowingly permitted or failed to prevent its
boundaries and seaports who are in possession commission;
of unissued, tampered or fraudulent and travel (b) The registration with the Securities and exchange
documents for the purpose of promoting Commission (SEC) and license to operate of the erring
trafficking in persons; agency, corporation, association, religious group, tour or
(f) To confiscate, conceal, or destroy the travel agent, club or establishment, or any place or
passport, travel documents, or personal entertainment shall be cancelled and revoked
documents or belongings of trafficked persons in permanently. The owner, president, partner or manager
furtherance of trafficking or to prevent them from thereof shall not be allowed to operate similar
leaving the country or seeking redress from the establishment in a different name;
government or appropriate agencies; and (c) If the offender is a foreigner, he shall be immediately
(g) To knowingly benefit from, financial or deported after serving his sentence and be barred
otherwise or make use of, the labor or services permanently from entering the country;
of a person held to a condition of involuntary (d) Any employee or official of government agencies who
servitude, forced labor , or slavery. shall issue or approve the issuance of travel exit
Sec. 55. Qualified Trafficking in Persons. The clearances, passports, registration certificates,
following are considered as qualified trafficking counseling certificates, marriage license, and other
similar documents to persons, whether judicial or accordingly.
natural, recruitment agencies, establishments or other
individuals or groups, who fail to observe the prescribed Sec. 64. Effectivity. These rules and regulations shall
procedures and the requirement as provided for by laws, take effect fifteen (15) days after its complete publication
rules and regulations, shall be held administratively in at least two (2) newspapers of general circulation.
liable, without prejudice to criminal liability under the Act.
The concerned government official or employee shall, 7. Alien Employment Regulation
upon conviction, be dismissed from the service and be
barred permanently to hold public office. His/her Reference: Arts. 12 (e), 40-42; Omnibus Rules, Book
retirement and other benefits shall likewise be forfeited; I, Rule XIV, DO 12, 16 Nov. 2001; Omnibus Guidelines
and for Issuance of Employment Permits to Foreign
(e) Conviction by final judgment of the adopter for any Nationals); Const., Art. XII, Sec. 12
offense under this Act shall result in the immediate
rescission of the decree of adoption. Labor Code
Sec. 58. Use of Trafficked Persons. Any person who Art. 12 (e) To regulate the employment of aliens,
buys or engages the services of trafficked persons for including the establishment of a registration and/or
prostitution shall be penalized as follows: work permit system;
(a) First offense — six (6) months of community service
as may be determined by the court and a fine of Fifty ART. 40. Employment permit of non-resident aliens. -
thousand pesos (P50,000.00); and Any alien seeking admission to the Philippines for
(b) Second and subsequent offenses — imprisonment of employment purposes and any domestic or foreign
one year (1) year and a fine of One hundred thousand employer who desires to engage an alien for
pesos (P100,000.00). employment in the Philippines shall obtain an
The Council shall coordinate with the Supreme Court employment permit from the Department of Labor.
through the Office of the Court Administrator for the The employment permit may be issued to a nonresident
issuance of appropriate guidelines and measures for the alien or to the applicant employer after a determination
judiciary to implement this provision particularly on the of the non-availability of a person in the Philippines who
aspect of implementing the penalty of community is competent, able and willing at the time of application
service. to perform the services for which the alien is desired.
Article XV For an enterprise registered in preferred areas of
FUNDING investments, said employment permit may be issued
Sec. 59. Inclusion in Agency Appropriations. The heads upon recommendation of the government agency
of departments and agencies concerned shall charged with the supervision of said registered
immediately include in their annual appropriations the enterprise.
funding necessary to implement programs and services
required by the Act and these regulations. ART. 41. Prohibition against transfer of employment.
In the interim, the funding necessary to carry out their - (a) After the issuance of an employment permit, the
mandate under the law may be charged against their alien shall not transfer to another job or change his
Gender and Development (GAD) budget. employer without prior approval of the Secretary of
Article XVII Labor.
FINAL PROVISIONS (b) Any non-resident alien who shall take up employment
Sec. 60. Non-Restriction of Freedom of Speech and of in violation of the provision of this Title and its
Association, Religion and the Right to Travel. Nothing in implementing rules and regulations shall be punished in
these rules and regulations shall be interpreted as a accordance with the provisions of Articles 289 and 290
restriction of the freedom and of association, religion and of the Labor Code.In addition, the alien worker shall be
the right to travel for purposes not contrary to law as subject to deportation after service of his sentence.
guaranteed by the Constitution.
Sec. 61. Saving Clause. The provisions of Republic Act ART. 42. Submission of list. - Any employer employing
No. 7610, otherwise known as the “Special Protection of non-resident foreign nationals on the effective date of
Children Against Child Abuse, Exploitation and this Code shall submit a list of such nationals to the
Discrimination Act” shall remain applicable and shall not Secretary of Labor within thirty (30) days after such date
in any way be amended or repealed by the provisions of indicating their names, citizenship, foreign and local
the Act and these rules and regulations. addresses, nature of employment and status of stay in
Sec. 62. Separability Clause. The declaration of the country. The Secretary of Labor shall then determine
invalidity of any provision of these rules and regulations if they are entitled to an employment permit.
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
Omnibus Rules, Book I, Rule XIV e) The recommendation of the Board of Investments
or other appropriate government agencies if the
RULE XIV applicant will be employed in preferred areas of
Employment of Aliens investments or in accordance with imperatives of
SECTION 1. Coverage. — This Rule shall apply to all economic developments; and
aliens employed or seeking employment in the f) Payments of a P100.00 fee.
Philippines, and their present or prospective employers. SECTION 7. Duration of employment permit. — Subject
SECTION 2. Submission of list. — All employers to renewal upon showing of good cause, the
employing foreign nationals, whether resident or employment permit shall be valid for a minimum period
on-resident shall submit a list of such nationals to of one (1) year starting from the date of its issuance
the Bureau indicating their names, citizenship, foreign unless sooner revoked by the Secretary of Labor and
and local addresses; nature of employment and status of Employment for violation of any provisions of the Code
stay in the Philippines. or of these Rules.
SECTION 3. Registration of resident aliens. — All SECTION 8. Advice to Commission on Immigration
employed resident aliens shall register with the Bureau and Deportation. — The Bureau shall advice the
under such guidelines as may be issued by it. Commission on Immigration and Deportation on the
SECTION 4. Employment permit required for entry. — issuance of an employment permit to an applicant.
No alien seeking employment, whether on resident or SECTION 9. Understudy Training Program. — The
non-resident status, may enter the Philippines without employer shall submit a training program for his
first securing an employment permit from the understudies to the Bureau within thirty (30) days upon
Department of Labor and Employment. If an alien enters arrival of the alien workers. The supervision of the
the country under a non-working visa and wishes to be training program shall be the responsibility of the Bureau
employed thereafter, he may only be allowed to be and shall be in accordance with standards established
employed upon presentation of a duly approved by the Secretary of Labor and Employment.
employment permit.
SECTION 5. Requirements for employment permit Omnibus Guidelines for Issuance of
application. — The application for an employment permit Employment Permits to Foreign Nationals
shall be accompanied by the following: –DO 12, November 12, 2001.
(a) Curriculum vitae duly signed by the applicant
indicating his educational background, his work DEPARTMENT ORDER NO. 12
experience and other data showing that he possesses (Series of 2001)
high technical skills in his trade or profession;
(b) Contract of employment between the employer and OMNIBUS GUIDELINES FOR THE ISSUANCE OF
the principal which shall embody the following, among EMPLOYMENT PERMITS TO FOREIGN
others: NATIONALS.
(1) That the non-resident alien worker shall comply with .
all applicable laws and rules and regulations of the Pursuant to the provisions of Articles 5 and 40 of
Philippines; P. D. 442, as amended, the provisions of Rule XIV,
(2) That the non-resident alien worker and the employer Book I of its Implementing Rules and Regulations,
shall bind themselves to train at least two (2) Filipino Section 17(5), Chapter 4, Title VII of the Administrative
understudies for a period to be determined by the Code of 1987, the following Omnibus Guidelines for the
Secretary of Labor and Employment; and issuance of Employment Permits are hereby
(3) That he shall not engage in any gainful employment promulgated:
other than that for which he was issued a permit. Rule I
(c) A designation by the employer of at least two (2) Coverage and Exemption
understudies for every alien worker. Such understudies 1. The following shall apply for Alien Employment
must be the most ranking regular employees in the Permit (AEP):
section or department for which the expatriates are 1.1. All foreign nationals seeking admission to the
being hired to ensure the actual transfer of technology. Philippines for the purpose of employment;
SECTION 6. Issuances of employment permit. — The 1.2. Missionaries or religious workers who intend to
Secretary of Labor and Employment may issue an engage in gainful employment;
employment permit to the applicant based on: 1.3. Holders of Special Investors Resident Visa (SIRV),
a) Compliance by the applicant and his employer Special Retirees Resident Visa (SRRV), Treaty Traders
with the requirements of Section 2 hereof; Visa (9d) or Special Non-immigrant Visa (47(a)2), who
b) Report of the Bureau Director as to the availability or occupy any executive, advisory, supervisory, or technical
non-availability of any person in the Philippines who is position in any establishment;
competent, able, and willing to do the job for which the 1.4. Agencies, organizations or individuals whether
services of the applicant are desired; public or private, who secure the services of foreign
c) His assessment as to whether or not the employment professionals to practice their professions in the
of the applicant will redound to the national interest; Philippines in the Philippines under reciprocity and other
d) Admissibility of the alien as certified by the international agreements;
Commission on Immigration and Deportation;
1.5. Non-Indo-Chinese Refugees who are asylum before the effectivity of the applicant's term of office if
seekers and given refugee status by the United the succeeding term of office is ascertained.
Nations High Commissioner on Refugees (UNHCR) or Failure to file the application for renewal of permit within
the Department of Justice under DOJ Department Order the prescribed period shall be subject to fines of Five
No. 94, series of 1998; Thousand Pesos (5,000.00), if filed within six (6) months
1.6. Resident foreign nationals seeking employment in after the prescribed period and Ten Thousand Pesos
the Philippines. (10,000.00), if filed after six (6) months. Failure to renew
2. Exemption. The following categories of foreign the AEP within one (1) year after its expiration shall be a
nationals are exempt from securing an employment cause for its revocation or cancellation.
permit in order to work in the Philippines. 6. The employer shall notify the DOLE-RO which issued
2.1 All members of the diplomatic services and foreign the permit of the date of the assumption to duty of the
government officials accredited by the Philippine oreign national within thirty (30) days from issuance of
Government; the permit.
2.2 Officers and staff of international organizations of 7. Validity of Permits - The validity of permits shall be as
which the Philippine government is a cooperating follows:
member, and their legitimate spouse desiring to work in 7.1. As a general rule, the validity of permits shall be for
the Philippines; a period of one (1) year, unless the employment
2.3 Foreign nationals elected as members of the contract, consultancy services, or other modes of
Governing board who do not occupy any other position, engagement or term of office for elective officers,
but have only voting rights in the corporation; and provides for a longer period.
2.4 All foreign nationals granted exemption by special 7.2. The effectivity of the renewal shall be on the day
laws and all other laws that may be promulgated by the after the expiration of the previous permit, regardless of
Congress. whether or not the renewal is granted before or after the
expiration of the previous permit.
Rule II 7.3. As a general rule, the permits shall be valid only for
Procedures in the Processing of Applications for the position and the employer for which it was issued,
AEP except in case of foreign nationals who are holders of
1. All foreign nationals seeking employment in the multiple positions in one corporation, where one AEP
Philippines under Rule 1 hereof or their prospective shall be valid for such multiple positions.
employers, shall file their applications with the DOLE 7.4. The permits of resident foreign nationals shall be
Regional Office having jurisdiction over the intended valid for multiple employers, regardless of the nature and
place of work. duration of their employment, provided that they shall
2. Fees - The applicant shall pay filing, publication and report changes in their employment status and the
permit fees in the amount of Eight thousand pesos identity of their employers to the DOLE Regional Office
P8,000.00) for each application for AEP with a validity of which has issued the permit.
one (1) year. Three thousand pesos (P3,000.00) shall be Rule III
charged for every additional year of validity or a fraction Revocation/Cancellation of Employment Permits
thereof. Issued
3. An AEP shall be issued based on the following: 1. The permits issued may, motu proprio or upon a
3.1. Compliance bye the applicant employer or the petition, be cancelled or revoked based on any of the
foreign national with the substantive and documentary following grounds:
requirements; 1.1 Misrepresentation of facts or falsification of the
3.2. Determination of the DOLE Secretary that there is documents submitted;
no Filipino national who is competent, able and willing to 1.2 The foreign national has been declared as an
do the job for which the services of the applicant is undesirable alien by competent authorities;
desired; 1.3 Non-compliance with the conditions for which the
3.3. Assessment of the DOLE Secretary that the AEP was issued;
employment of the foreign national will redound to 1.4 Failure to renew AEP within one (1) year after its
national benefit; expiration.
4. Denial of Application for AEP - An application for AEP 2. Petitions for cancellation or revocation of permits
may be denied based on the ground of non-compliance issued shall be resolved within thirty (30) calendars from
with any of the requirements for issuance of AEP or for receipt thereof.
misrepresentation of facts in the application or 3. Any aggrieved party may file a Motion for
submission of falsified or tampered documents Foreign Reconsideration and/or Appeal and the same shall be
nationals whose applications have been denied shall not resolved based on Paragraph 4 of this Rule.
be allowed to re-apply in any of the DOLE Regional 4. Remedies in Case of Denial or Cancellation – A
Offices. motion for Reconsideration maybe filed by an aggrieved
5. Renewal of Permit - An application for renewal of AEP party within seven (7) calendar days after receipt of the
shall be filed at least fifteen (15) days before its Order of Denial/Cancellation.
expiration. For elective officers, applications for renewal The DOLE Regional Director shall resolve the said
shall be filed upon election or at least thirty (30) days Motion for Reconsideration within ten (10) calendar days
from receipt thereof.
A motion for Reconsideration filed after the period • Almodiel vs. NLRC 223 SCRA 341 (1993)
of seven (7) calendar days but within ten (10) calendar - Redundancy for purposes of our Labor Code, exists
days after receipt of the denial shall be treated as an where the services of an employee are in excess of what
appeal. is reasonably demanded by the actual requirements of
An appeal from the decision of the DOLE Regional the enterprise. The characterization of an employee’s
Director may be filed with the Secretary of labor and services as no longer necessary or sustainable, and
Employment within ten (10) calendar days from receipt therefore, properly terminable, was an exercise of
of an Order from the DOLE Regional Director. The business judgment on the part of the employer. The
decision of the Secretary of Labor and Employment shall wisdom or soundness of such characterization was not
be final and unappealable. subject to discretionary review on the part of the LA nor
of the NLRC so long, of course, as violation of law or
Rule IV merely arbitrary of malicious action is not shown.
Penal and Transitory Provisions - In International Macleod vs IAC, it was held that the
1. The DOLE Regional Directors, after due notice determination of the need for the phasing out of a
and hearing, shall have the power to order and impose a department as a labor and cost saving device because it
fine of Five Thousand Pesos (P5,000.00) on foreign was no longer economical to retain said services is a
nationals found working without an AEP for less than management prerogative and the courts will not interfere
one (1) year and Ten Thousand Pesos (P10,000.00) for with the exercise thereof as long as no abuse of
more than one (1) year. discretion or merely arbitrary or malicious action on the
2. All applications for employment permit/certificates part of management is shown.
pending at the DOLE-RO upon the effectivity of these - An employer has a much wider discretion in terminating
Guidelines shall be covered and processed under the employment relationship of managerial personnel
provisions of these Guidelines. compared to rank and file because officers in such key
3. Holders of provisional and extended AEPs issued positions perform not only functions which by nature
under Memorandum dated 24 August 2001 regarding require the employer’s full trust and confidence but also
Alternative Interim Measures for the Issuance of Alien functions that spell the success or failure of an
Employment Permits, shall apply for an AEP pursuant to enterprise.
these Guidelines on or before the expiration of the - On Alien Employment: a resident alien without a
provisional and extended AEP. working permit is not what is prohibited in Art 40. The
4. Foreign nationals who are already working in the provision requires employment permit to non-resident
country and who have not yet secured the requisite aliens. The employment permit is required for entry into
employment permit shall have ninety (90) days from the the country for employment purposes and is issued after
effectivity of these Guidelines to secure the said determination of the non-availability of a person in the
employment permit withoutpenalty. Philippines who is competent, able and willing at the
time of application to perform the services for which the
Rule V alien is desired.
Miscellaneous Provisions
1. Manual of Operations. - The Bureau of Local THE CASE: Subject of this petition for certiorari is the
Employment shall issue a Manual of Operations to March 1991 decision of the National Labor Relations
implement the provisions of these Guidelines. Commission which reversed and set aside the Labor
2. Separability Clause. - If any provision or part of this Arbiter's decision and ordered instead the payment of
Department Order or the application thereof to any separation pay and financial assistance of P100,000.00.
person or circumstance is held invalid by the Courts, the Petitioner imputes grave abuse of discretion on the part
remaining valid provisions of this Department Order shall of the Commission and prays for the reinstatement of the
not be affected. Labor Arbiter's decision which declared his termination
3. Repealing Clause. - All guidelines, rules and on the ground of redundancy illegal.
regulations and agreements inconsistent herewith
are hereby repealed or modified accordingly. FACTS: Petitioner F. Almodiel, a CPA, was hired as
4. Effectivity. - These guidelines shall take effect fifteen Cost Accounting Manager of Raytheon Philippines, Inc.
(15) days after its publication in two (2) newspapers of He started as a probationary or temporary employee.
general circulation. His major duties were: (1) plan, coordinate and carry out
year - end and physical inventory; (2) formulate and
Constitution, Art. XII, Sec. 12 issue out hard copies of Standard Product costing and
Section 12. The State shall promote the preferential other cost/pricing analysis if needed and required and
use of Filipino labor, domestic materials and locally (3) set up the written Cost Accounting System for the
produced goods, and adopt measures that help make whole company. After a few months, he was given a
them competitive. regularization increase of P1,600.00 a month.

a. Coverage; Exemption, Art. 40; D.O No. 97-09, On August 17, 1988, he recommended and submitted a
Section 1, 2 Cost Accounting/Finance Reorganization, affecting the
whole finance group but the same was disapproved by
the Controller. However, he was assured by the
Controller that should his position or department which provisions of the Labor Code and the implementing
was apparently a one-man department with no staff rules.
becomes untenable or unable to deliver the needed
service due to manpower constraint, he would be given 2. No. Whether petitioner's functions as Cost Accounting
a three (3) year advance notice. Manager have been dispensed with or merely absorbed
by another is however immaterial. For even conceding
On January 27, 1989, petitioner was summoned by his that the functions of petitioner's position were merely
immediate boss and in the presence of IRD Manager, transferred, no malice or bad faith can be imputed from
Mr. Rolando Estrada, he was told of the abolition of his said act. This Court said that redundancy, for purposes
position on the ground of redundancy. He pleaded with of our Labor Code, exists where the services of an
management to defer its action or transfer him to employee are in excess of what is reasonably demanded
another department, but he was told that the decision of by the actual requirements of the enterprise. The
management was final and that the same has been characterization of an employee's services as no longer
conveyed to the Department of Labor and Employment. necessary or sustainable, and therefore, properly
Thus, he was constrained to file the complaint for illegal terminable, was an exercise of business judgment on the
dismissal before the Arbitration Branch of the National part of the employer. The wisdom or soundness of such
Capital Region, NLRC, Department of Labor and characterization or decision was not subject to
Employment. discretionary review on the part of the Labor Arbiter nor
of the NLRC so long, of course, as violation of law or
Labor Arbiter’s Ruling: 1989 - Labor Arbiter merely arbitrary and malicious action is not shown.
declared that complainant's termination on the ground of Indeed, an employer has no legal obligation to keep
redundancy is highly irregular and without legal and more employees than are necessary for the operation of
factual basis, thus ordering the respondents to reinstate its business. Petitioner does not dispute the fact that a
complainant to his former position with full backwages cost accounting system was installed and used at
without lost of seniority rights and other benefits. Raytheon subsidiaries and plants worldwide; and that
Respondents are further ordered to pay complainant the functions of his position involve the submission of
P200,000.00 as moral damages and P20,000.00 as periodic reports utilizing computerized forms designed
exemplary damages, plus ten percent (10%) of the total and prescribed by the head office with the installation of
award as attorney's fees. said accounting system. Petitioner attempts to controvert
these realities by alleging that some of the functions of
Raytheon appealed on the grounds that the Labor his position were still indispensable and were actually
Arbiter committed grave abuse of discretion in denying dispersed to another department. What these
its rights to dismiss petitioner on the ground of indispensable functions that were dispersed, he failed
redundancy, in relying on baseless surmises and self- however, to specify and point out. Besides, the fact that
serving assertions of the petitioner that its act was the functions of a position were simply added to the
tainted with malice and bad faith and in awarding moral duties of another does not affect the legitimacy of the
and exemplary damages and attorney's fees. employer's right to abolish a position when done in the
NLRC’s Ruling: 1991 - the NLRC reversed the normal exercise of its prerogative to adopt sound
decision and directed Raytheon to pay petitioner the business practices in the management of its affairs.
total sum of P100,000.00 as separation pay/financial Considering further that petitioner held a position which
assistance. was definitely managerial in character, Raytheon had a
broad latitude of discretion in abolishing his position. An
ISSUES: employer has a much wider discretion in terminating
1. Whether NLRC committed grave abuse of discretion employment relationship of managerial personnel
amounting to (lack of) or in excess of jurisdiction in compared to rank and file employees. The reason is that
declaring as valid and justified the termination of officers in such key positions perform not only functions
petitioner on the ground of redundancy. which by nature require the employer's full trust and
2. Whether bad faith, malice and irregularity crept in the confidence but also functions that spell the success or
abolition of petitioner's position of Cost Accounting failure of an enterprise.
Manager on the ground of redundancy.
• Petitioner claims that the functions of his position were
RULING: absorbed by the Payroll/Mis/Finance Department under
1. No. There is no dispute that petitioner was duly Ang Tan Chai, a resident alien without any working
advised, one (1) month before, of the termination of his permit from the DOLE as required by law. Almodiel also
employment on the ground of redundancy in a written claims that he is better qualified than Ang Tan Chai, a
notice by his immediate superior in January 27, 1989. B.S. Industrial Engineer, hired merely as a Systems
He was issued a check representing separation pay but Analyst Programmer or its equivalent in early 1987,
in view of his refusal to acknowledge the notice and the promoted as MIS Manager only during the middle part of
check, they were sent to him thru registered mail on 1988 and a resident alien.
January 30, 1989. The Department of Labor and • On the other hand, Raytheon insists that petitioner's
Employment was served a copy of the notice of functions as Cost Accounting Manager had not been
termination of petitioner in accordance with the pertinent absorbed by Ang Tan Chai, a permanent resident born
in this country. It claims to have established below that Department of Labor and Employment at least one (1)
Ang Tan Chai did not displace petitioner or absorb his month before the intended date thereof. In case of
functions and duties as they were occupying entirely termination due to installation of labor-saving devices or
different and distinct positions requiring different sets of redundancy, the worker affected thereby shall be entitled
expertise or qualifications and discharging functions to a separation pay equivalent to at least one (1) month
altogether different and foreign from that of petitioner's pay for every year of service, whichever is higher. In
abolished position. case of retrenchment to prevent losses and in cases of
closure or cessation of operations of establishment or
Destitute of merit is petitioner's imputation of unlawful undertaking not due to serious business losses or
discrimination when Raytheon caused corollary functions financial reverses, the separation pay shall be equivalent
appertaining to cost accounting to be absorbed by to at least one (1) month pay or at least one-half (1/2)
Danny Ang Tan Chai, a resident alien without a working month pay for every year of service, whichever is higher.
permit. Article 40 of the Labor Code which requires A fraction of at least six (6) months shall be considered
employment permit refers to non-resident aliens. The as one (1) whole year.
employment permit is required for entry into the country
for employment purposes and is issued after
determination of the non-availability of a person in the b. Conditions for Grant of Permit; Denial, D.O. No.
Philippines who is competent, able and willing at the 97-09 Sections 3, 4, 5, 6, 10
time of application to perform the services for which the RULE III. Revocation/Cancellation of Employment
alien is desired. Since Ang Tan Chai is a resident alien, Permits Issued
he does not fall within the ambit of the provision. 1. The permits issued may, motu proprio or upon a
petition, be cancelled or revoked based on any of the
Petitioner also assails that he is better qualified for the following grounds:
position. It should be noted, however, that Ang Tan Chai 1.1 Misrepresentation of facts or falsification of the
was promoted to the position during the middle part of documents submitted;
1988 or before the abolition of petitioner's position in 1.2 The foreign national has been declared as an
early 1989. Besides the fact that Ang Tan Chai's undesirable alien by competent authorities;
promotion thereto is a settled matter, it has been 1.3 Non-compliance with the conditions for which the
consistently held that an objection founded on the AEP was issued;
ground that one has better credentials over the 1.4 Failure to renew AEP within one (1) year after its
appointee is frowned upon so long as the latter expiration.
possesses the minimum qualifications for the position. In 2. Petitions for cancellation or revocation of permits
the case at bar, since petitioner does not allege that Ang issued shall be resolved within thirty (30) calendars from
Tan Chai does not qualify for the position, the Court receipt thereof.
cannot substitute its discretion and judgment for that 3. Any aggrieved party may file a Motion for
which is clearly and exclusively management Reconsideration and/or Appeal and the same shall be
prerogative. resolved based on Paragraph 4 of this Rule.
It is a well-settled rule that labor laws do not authorize
interference with the employer's judgment in the conduct • General Milling Corp. vs. Torres 196 SCRA 215 (1991)
of his business. The determination of the qualification - GMC’s claim that hiring of a foreign coach is an
and fitness of workers for hiring and firing, promotion or employer’s prerogative has no legal basis. Art. 40 states
reassignment are exclusive prerogatives of that an employer seeking employment of an alien must
management. The Labor Code and its implementing first obtain an employment permit from the DOLE.
Rules do not vest in the Labor Arbiters nor in the GMC’s right to choose is limited by the statutory
different Divisions of the NLRC (nor in the courts) requirement of an alien employment permit.
managerial authority. The employer is free to determine, - The Labor Code empowers the Secretary to
using his own discretion and business judgment, all make a determination as to the availability of the
elements of employment, "from hiring to firing" except in services of a “person in the Philippines who is
cases of unlawful discrimination or those which may be competent, able and willing at the time of application to
provided by law. perform the services for which an alien is desired”.
DOLE is the agency vested with jurisdiction to determine
NOTES: Termination of an employee's services because the question of availability of local workers.
of redundancy is governed by Article 283 of the Labor
Code which provides as follows: FACTS:
Art. 283. Closure of establishment and reduction of Earl Timothy Cone is a US citizen, who was hired by
personnel. — The employer may also terminate the General Milling as a sports consultant and assistant
employment of any employee due to installation of labor- coach. He possessed an alien employment permit which
saving devices, redundancy, retrenchment to prevent was changed to pre-arranged employee by the Board of
losses or the closing or cessation of operation of the Special Inquiry of the Commission on Immigration and
establishment or undertaking unless the closing is for the Deportation. GMC requested that Cone’s employment
purpose of circumventing the provisions of this Title, by permit be changed to a full-fledged coach, which was
serving a written notice on the worker and the contested by The Basketball Coaches Association of the
Philippines. Alleging that GMC failed to show that there 1.1 Misrepresentation of facts or falsification of the
is no competent person in the Philippines to do the documents submitted;
coaching job. Secretary of Labor cancelled Cone’s 1.2 The foreign national has been declared as
employment permit. an undesirable alien by competent authorities;
1.3 Non-compliance with the conditions for
ISSUE: which the AEP was issued;
Whether or not the Secretary of Labor act with grave 1.4 Failure to renew AEP within one (1) year
abuse of discretion in revoking Cone’s Alien after its expiration
Employment Permit?
2. APPRENTICE/LEARNERS/PERSONS WITH
HELD: DISABILITIES
The Secretary of Labor did not act with grave abuse of
discretion in revoking Cone’s Alien Employment Permit. A. Human Resources Development
GMC’s claim that hiring of a foreign coach is an
employer’s prerogative has no legal basis. Under Reference: Arts. 57-81; Technical Education and Skills
Section 40 of the Labor Code, an employer seeking Development Authority Act of 1994 (TESDA) (RA 7796);
employment of an alien must first obtain an employment Dual Training Systems Act of 1994 (RA 7686); Magna
permit from the Department of labor. Carta for Disabled Persons (RA 7277)
GMC’s right to choose whom to employ is limited by the
statutory requirement of an employment permit. The 1. Policy Objectives, RA 7796, Sections 2,3
Labor Code empowers the Labor Secretary to determine SEC. 2. Declaration of Policy. - It is hereby declared the
as to the availability of the services of a “person in the policy of the State to provide relevant, accessible, high
Philippines who is competent, able and willing at the quality and efficient technical education and skills
time of the application to perform the services for which development in support of the development of high
an alien is desired.” DOLE is the agency vested with quality Filipino middle-level manpower responsive to and
jurisdiction to determine the question of availability of in accordance with Philippine development goals and
local workers. priorities.
The State shall encourage active participation of various
c. Renewal; Validity of AEP, D.O. No. 97-09 Sections concerned sectors, particularly private enterprises, being
9, 11 direct participants in and immediate beneficiaries of a
7. Validity of Permits - The validity of permits shall trained and skilled workforce, in providing technical
be as follows: education and skills development opportunities.
7.1 As a general rule, the validity of permits shall be for a SEC. 3. Statement of Goals and Objectives. - It is the
period of one (1) year, unless the employment contract, goal and objective of this Act to:
consultancy services, or other modes of engagement or Promote and strengthen the quality of technical
term of office for elective officers, provides for a longer education and skills development programs to attain
period. international competitiveness;
7.2 The effectivity of the renewal shall be on the day Focus technical education and skills development on
after the expiration of the previous permit, regardless of meeting the changing demands for quality middle-level
whether or not the renewal is granted before or after the manpower;
expiration of the previous permit. Encourage critical and creative thinking by disseminating
7.3 As a general rule, the permits shall be valid only for the scientific and technical knowledge base of middle-
the position and the employer for which it was issued, level manpower development programs;
except in case of foreign nationals who are holders of Recognize and encourage the complementary roles of
multiple positions in one corporation, where one AEP public and private institutions in technical education and
shall be valid for such multiple positions. skills development and training systems; and Inculcate
7.4 The permits of resident foreign nationals shall be desirable values through the development of moral
valid for multiple employers, regardless of the nature and character with emphasis on work ethic, self-discipline,
duration of their employment, provided that they shall self-reliance and nationalism.
report changes in their employment status and the
identity of their employers to the DOLE Regional Office 2. Apprentice
which has issued the permit. a. Definition, Art. 58, (b; RA 7796 Sec 4 (j) (k)
"Apprentice" is a person undergoing training for an
approved apprenticeable occupation during an
d. Revocation; Cancellation; Grounds, D.O. No. 97-09 apprenticeship agreement;
Sections 12-14
b. Apprenticeable Occupation, RA 7796, Sec 4 (m)
RULE III. Revocation/Cancellation of Employment (m) "Apprenticeable Occupation" is an occupation
Permits Issued officially endorsed by a tripartite body and approved
1. The permits issued may, motu proprio or upon a for apprenticeship by the authority;
petition, be cancelled or revoked based on any of
the following grounds:
c. Qualification, Rule VI, Sec II, Omnibus Rule; RA d. Allowed Employment; Requirement Program
7610, as amended by RA 7658, Sec.12 Approval Art. 60

REPUBLIC ACT NO. 7658 • Nitto Enterprises v. NLRC, 258 SCRA 654 (1995)
AN ACT PROHIBITING THE EMPLOYMENT OF - Art 61 of the LC provides: contents of apprenticeship
CHILDREN BELOW 15 YEARS OF AGE IN PUBLIC agreement. Apprenticeship agreements, including the
AND PRIVATE UNDERTAKINGS, AMENDING FOR main rates of apprentices, shall conform to the rules
THIS PURPOSE SECTION 12, ARTICLE VIII OF issued by the Minister of Labor and Employment. The
R.A. 7610. period of apprentices shall not exceed six months.
Section 1. Section 12, Article VIII of R. A. No. 7610 Apprenticeship agreements providing for wage rates
otherwise known as the "pecial Protection of Children below the legal minimum wage, which in no case shall
Against Child Abuse, Exploitation and Discrimination start below 75% per cent of the applicable minimum
Act" is hereby amended to read as follows: wage, may be entered into only in accordance with
"Sec. 12. Employment of Children. — Children below apprenticeship program duly approved by the Minister of
fifteen (15) years of age shall not be employed except: Labor and Employment. The Ministry shall develop
(1) When a child works directly under the sole standard model programs of apprenticeship.
responsibility of his parents or legal guardian and where - It is mandated that apprenticeship agreements entered
only members of the employer's family are employed: into by the employer and apprentice shall be entered
Provided, however, That his employment neither only in accordance with the apprenticeship program duly
endangers his life, safety, health and morals, nor impairs approved by the Minister of Labor and Employment.
his normal development; Provided, further, That the - Prior approval by the DOLE of the proposed
parent or legal guardian shall provide the said minor apprenticeship is, therefore, a condition sine qua non
child with the prescribed primary and/or secondary before an apprenticeship agreement can be validly
education; or entered into.
(2) Where a child's employment or participation in public - The act of filing the proposed apprenticeship program
entertainment or information through cinema, theater, with DOLE is a preliminary step towards its final
radio or television is essential: Provided, The approval and does not instantaneously give rise to an
employment contract is concluded by the child's parents employer-apprentice relationship.
or legal guardian, with the express agreement of the - Hence, apprenticeship agreement bet petitioner and
child concerned, if possible, and the approval of the private resp has no force and effect in the absence of a
Department of Labor and Employment: and Provided, valid apprenticeship program duly approved by the
That the following requirements in all instances are DOLE.
strictly complied with: - Art. 280 is cited.
(a) The employer shall ensure the protection, health, - Twin requirements of notice and hearing constitute the
safety, morals and normal development of the child; essential elements of due process.
(b) The employer shall institute measures to prevent the
child's exploitation or discrimination taking into account FACTS:
the system and level of remuneration, and the duration Petitioner Nitto Enterprises, a company engaged
and arrangement of working time; and in the sale of glass and aluminum products, hired
(c) The employer shall formulate and implement,subject Roberto Capili sometime in May 1990 as an
to the approval and supervision of competent authorities, apprentice machinist, molder and coremaker as
a continuing program for training and skills acquisition of evidenced by an apprenticeship agreement 2for a period
the child. of six (6) months from May 28, 1990 to November 28,
In the above exceptional cases where any such child 1990 with a daily wage rate of P66.75 which was 75% of
may be employed, the employer shall first secure, before the applicable minimum wage. On August 2, 1990,
engaging such child, a work permit from the Department Roberto Capili who was handling a piece of glass which
of Labor and Employment which shall ensure he was working on, accidentally hit and injured the leg of
observance of the above requirements. an office secretary who was treated at a nearby
The Department of Labor and Employment shall hospital. Further, Capili entered a workshop
promulgate rules and regulations necessary for within the office premises which was not his work
the effective implementation of this Section." station. There, he operated one of the power press
Sec. 2. All laws, decrees, executive orders, rules and machines without authority and in the process injured
regulations or parts thereof contrary to, or inconsistent his left thumb. The following day he was asked
with this Act are hereby modified or repealed to resign. Three days after, , private respondent
accordingly. formally filed before the NLRC Arbitration Branch,
Sec. 3. This Act shall take effect fifteen (15) days after National Capital Region a complaint for illegal dismissal
its complete publication in the Official Gazette or in at and payment of other monetary benefits.
least two (2) national newspapers or general circulation
whichever comes earlier. Approved: November 9, 1993 The Labor Arbiter rendered his decision
finding the termination of private respondent as
valid and dismissing the money claim for lack of merit.
On appeal, NLRC issued an order reversing the decision
of the Labor Arbiter. The NLRC declared that Capili was tart below 75 percent of the applicable minimum wage,
a regular employee of Nitto Enterprises and not an may be entered into only in accordance with
apprentice. Consequently, Labor Arbiter issued a Writ of apprenticeship programs duly approved by the Secretary
Execution ordering for the reinstatement of Capili of Labor and Employment. The Department shall
and to collect his back wages. Petitioner, Nitto develop standard model programs of apprenticeship. (As
Enterprises filed a case to the Supreme Court. amended by Section 1, Executive Order No. 111,
December 24, 1986).

ISSUE: Does the NLRC correctly rule that Capili is ART. 72. Apprentices without compensation. – The
a regular employee and not an apprentice of Secretary of Labor and Employment may authorize the
Nitto Enterprises? 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
LAW: Article 280 of the Labor Code board examination

RULING: f. Costs, Art. 71


ART. 71. Deductibility of training costs. - An additional
Yes. The apprenticeship agreement deduction from taxable income of one-half (1/2) of the
between petitioner and private respondent was value of labor training expenses incurred for developing
executed on May 28, 1990 allegedly employing the productivity and efficiency of apprentices shall be
the latter as an apprentice in the trade of "care granted to the person or enterprise organizing an
maker/molder. However, the apprenticeship Agreement apprenticeship program: Provided, That such program is
was filed only on June 7, 1990.Notwithstanding the duly recognized by the Department of Labor and
absence of approval by the Department of Labor and Employment: Provided, further, That such deduction
Employment, the apprenticeship agreement was enforced the shall not exceed ten (10%) percent of direct labor wage:
day it was signed. The act of filing the proposed and Provided, finally, That the person or enterprise who
apprenticeship program with the Department of wishes to avail himself or itself of this incentive should
Labor and Employment is a preliminary step towards its pay his apprentices the minimum wage.
final approval and does not instantaneously give rise
to an employer-apprentice relationship. g. Enforcement, Arts. 65, 66, 67
ART. 65. Investigation of violation of apprenticeship
Nitto Enterprises did not comply with the agreement. - Upon complaint of any interested person
requirements of the law. It is mandated that or upon its own initiative, the appropriate agency of the
apprenticeship agreements entered into by the employer Department of Labor and Employment or its authorized
and apprentice shall be entered only in accordance with representative shall investigate any violation of an
the apprenticeship program duly approved by the apprenticeship agreement pursuant to such rules and
Minister of Labor and Employment. Thus, the regulations as may be prescribed by the Secretary of
apprenticeship agreement has no force and effect; and Labor and Employment.
Capili is considered to be a regular employee of the
company. ART. 66. Appeal to the Secretary of Labor and
Employment. - The decision of the authorized agency of
OPINION: the Department of Labor and Employment may be
appealed by any aggrieved person to the Secretary of
I concur with the Courts findings that since the Labor and Employment within five (5) days from
apprenticeship agreement between petitioner and receipt of the decision. The decision of the Secretary
private respondent have no force and effect in the of Labor and Employment shall be final and executory.
absence of a valid apprenticeship program duly
approved by the DOLE, private respondent's assertion ART. 67. Exhaustion of administrative remedies. - No
that he was hired not as an apprentice but as a delivery person shall institute any action for the enforcement
boy ("kargador" or "pahinante") deserves credence. He of any apprenticeship agreement or damages for
should rightly be considered as a regular employee of breach of any such agreement, unless he has
petitioner as defined by Article 280 of the Labor Code. exhausted all available administrative remedies.

e. Terms and Conditions of Employment, Art. 61, 72 5. Learners


a. Definition, Art. 73; RA 7796, Sec. 4 (n)
ART. 61. Contents of apprenticeship agreements. -
Apprenticeship agreements, including the wage rates of Article 73. Learners defined. Learners are persons
apprentices, shall conform to the rules issued by the hired as trainees in semi-skilled and other industrial
Secretary of Labor and Employment. The period of occupations which are non-apprenticeable and which
apprenticeship shall not exceed six months. may be learned through practical training on the job in a
Apprenticeship agreements providing for wage rates relatively short period of time which shall not exceed
below the legal minimum wage, which in no case shall three (3) months.
individual, resulting from an impairment or a
RA 7796, Sec. 4 (n) disability, that limits or prevents the function or
(n) “Learners" refer to persons hired as trainees in activity, that is considered normal given the age
semiskills and other industrial occupations which are non and sex of the individual;
apprenticeable. Learnersship programs must be
approved by the Authority; b. Policy Declaration, RA 7277, Sec. 2
Sec. 2. Declaration of Policy — The grant of the
b. Allowed Employment, Art. 74 rights and privileges for disabled persons shall be
ART. 74. When learners may be hired. - Learners may guided by the following principles:
be employed when no experienced workers are (a) Disabled persons are part of Philippine society, thus
available, the employment of learners is necessary to the State shall give full support to the improvement of
prevent curtailment of employment opportunities, and the total well-being of disabled persons and their
the employment does not create unfair competition in integration into the mainstream of society. Toward this
terms of labor costs or impair or lower working end, the State shall adopt policies ensuring the
standards. rehabilitation, self-development and self-reliance of
disabled persons. It shall develop their skills and
c. Terms and Conditions of Employment, Arts. 75, 76 potentials to enable them to compete favorably for
ART. 75. Learnership agreement. - Any employer available opportunities.
desiring to employ learners shall enter into a learnership (b) Disabled persons have the same rights as other
agreement with them, which agreement shall include: people to take their proper place in society. They should
(a) The names and addresses of the learners; be able to live freely and as independently as possible.
(b) The duration of the learnership period, which This must be the concern of everyone — the family,
shall not exceed three (3) months; community and all government and nongovernment
(c) The wages or salary rates of the learners which shall organizations. Disabled persons' rights must never be
begin at not less than seventy-five percent (75%) of the perceived as welfare services by the Government.
applicable minimum wage; and (c) The rehabilitation of the disabled persons shall be the
(d) A commitment to employ the learners if they so concern of the Government in order to foster their
desire, as regular employees upon completion of the capacity to attain a more meaningful, productive and
learnership. All learners who have been allowed or satisfying life. To reach out to a greater number of
suffered to work during the first two (2) months shall be disabled persons, the rehabilitation services and benefits
deemed regular employees if training is terminated by shall be expanded beyond the traditional urban-based
the employer before the end of the stipulated period centers to community based programs, that will ensure
through no fault of the learners. full participation of different sectors as supported by
The learnership agreement shall be subject to inspection national and local government agencies.
by the Secretary of Labor and Employment or his duly (d) The State also recognizes the role of the private
authorized representative. sector in promoting the welfare of disabled persons and
ART. 76. Learners in piecework. - Learners shall encourage partnership in programs that address
employed in piece or incentive-rate jobs during the their needs and concerns.
training period shall be paid in full for the work (e) To facilitate integration of disabled persons into the
done. mainstream of society, the State shall advocate for and
encourage respect for disabled persons. The State shall
4. Persons with disabilities (handicapped), ILO exert all efforts to remove all social, cultural, economic,
Convention 159 (1983); RA 7277 environmental and attitudinal barriers that are prejudicial
to disabled persons.
a. Definition, RA 7277, Sec. 4 (a) (b) (c) (d)
Sec. 4. Definition of Terms. — For purposes of this Act, c. Coverage, RA 7277, Sec. 3
these terms are defined as follows: Sec. 3. Coverage. — This Act shall cover all disabled
(a) Disabled persons are those suffering from restriction persons and, to the extent herein provided, departments,
or different abilities, as a result of a mental, physical or offices and agencies of the National Government or
sensory impairment, to perform an activity in the manner nongovernment organizations involved in the attainment
or within the range considered normal for a human of the objectives of this Act
being; .
(b) Impairment is any loss, diminution or aberration of d. Rights and Privileges, RA 7277, Secs. 5, 6, 7
psychological, physiological, or anatomical structure or Sec. 5. Equal Opportunity for Employment. — No
function; disable person shall be denied access to opportunities
(c) Disability shall mean: for suitable employment. A qualified disabled employee
1) a physical or mental impairment that substantially shall be subject to the same terms and conditions of
limits one or more psychological, physiological or employment and the same compensation, privileges,
anatomical function of an individual or activities of such benefits, fringe benefits, incentives or allowances as a
individual; 2) a record of such an impairment; or qualified able bodied person. Five percent (5%) of all
3) being regarded as having such an impairment; casual emergency and contractual positions in the
(d) Handicap refers to a disadvantage for a given Departments of Social Welfare and Development;
Health; Education, Culture and Sports; and other months. Therefore, the 27 petitioners should be deemed
government agencies, offices or corporations engaged in regular employees entitled to security of tenure. Their
social development shall be reserved for disabled services may only be terminated for a just and
persons. authorized cause. Because respondents failed to show
Sec. 6. Sheltered Employment — If suitable employment such cause, these 27 petitioners are deemed illegally
for disabled persons cannot be found through open dismissed and hence entitled to backwages and
employment as provided in the immediately preceding separation pay.
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 Facts:
regard to the individual qualities, vocational goals and Petitioners numbering 43 are deaf–mutes who were
inclinations to ensure a good working atmosphere and hired on various periods from 1988 to 1993 by
efficient production. respondent Far East Bank and Trust Co. as Money
Sec. 7. Apprenticeship. — Subject to the provisions of Sorters and Counters through a uniformly worded
the Labor Code as amended, disabled persons shall be agreement called ‘Employment Contract for
eligible as apprentices or learners: Provided, That their Handicapped Workers. Subsequently, they are
handicap is not as much as to effectively impede the dismissed.
performance of job operations in the particular
occupation for which they are hired; Provided, further, Petitioners maintain that they should be considered
That after the lapse of the period of apprenticeship, if regular employees, because their task as money sorters
found satisfactory in the job performance, they shall be and counters was necessary and desirable to the
eligible for employment. business of respondent bank. They further allege that
their contracts served merely to preclude the application
• Bernardo vs. NLRC & FEBTC, 310 SCRA 186 (1999) of Article 280 and to bar them from becoming regular
FACTS: Far East Bank (Respondent) entered into employees.
employment contracts with deaf-mutes, who were hired
as money sorters under uniform “Employment Contracts Private respondent, on the other hand, submits that
for Handicapped Workers.” Every 6 months, these petitioners were hired only as “special workers and
workers renewed their employment contracts. The should not in any way be considered as part of the
complainants here complain that they were regular regular complement of the Bank.”[12] Rather, they were
employees and that they have been illegally dismissed. “special” workers under Article 80 of the Labor Code.

Respondent argued that complainants were not regular Issue: WON petitioners have become regular
employees, but a special class of workers who were employees.
hired because of political and civic accommodation. And
that the Bank’s corporate philosophy does not allow the Held: The uniform employment contracts of the
hiring and regularizing handicapped workers unless it petitioners stipulated that they shall be trained for a
was on a special arrangement basis. The Labor Arbiter period of one month, after which the employer shall
ruled in favor of respondent bank workers. NLRC determine whether or not they should be allowed to
affirmed. finish the 6-month term of the contract. Furthermore, the
employer may terminate the contract at any time for a
ISSUE: Whether or not petitioner workers are regular just and reasonable cause. Unless renewed in writing
employees. by the employer, the contract shall automatically expire
at the end of the term.
HELD: YES, petitioners are regular employees. The fact
that after the expiry of their 6 month contract, respondent Respondent bank entered into the aforesaid contract
bank renewed their contracts shows that these workers with a total of 56 handicapped workers and renewed the
were qualified to perform the responsibilities of their contracts of 37 of them. In fact, two of them worked
positions. from 1988 to 1993. Verily, the renewal of the contracts
of the handicapped workers and the hiring of others lead
to the conclusion that their tasks were beneficial and
The Magna Carta for Disabled Persons mandates that a necessary to the bank. More important, these facts
qualified disabled employee should be given the same show that they were qualified to perform the
terms of employment as a qualified able-bodied person. responsibilities of their positions. In other words, their
This being so, petitioners are thus covered by Art. 286 of disability did not render them unqualified or unfit for the
the Labor Code which defines regular employment to be tasks assigned to them.
that the employee has been engaged to perform
activities usually necessary or desirable in the usual In this light, the Magna Carta for Disabled Persons
business or trade of the employer. The task of counting mandates that a qualified disabled employee should be
and sorting bills is necessary to the business of given the same terms and conditions of employment as
respondent bank. Except for sixteen of them, the a qualified able-bodied person.
petitioners performed these tasks for more than six
Section 5 of the Magna Carta provides: e. Discrimination, RA 7277, Secs. 32, 33
Sec. 32. Discrimination on Employment. — No
“Section 5. Equal Opportunity for Employment.—No entity, whether public or private, shall discriminate
disabled person shall be denied access to opportunities against a qualified disabled person by reason of
for suitable employment. A qualified disabled employee disability in regard to job application procedures, the
shall be subject to the same terms and conditions of hiring, promotion, or discharge of employees, employee
employment and the same compensation, privileges, compensation, job training, and other terms, conditions,
benefits, fringe benefits, incentives or allowances as a and privileges of employment. The following constitute
qualified able bodied person.” acts of discrimination:
(a) Limiting, segregating or classifying a disabled job
The fact that the employees were qualified disabled applicant in such a manner that adversely affects his
persons necessarily removes the employment contracts work opportunities;
from the ambit of Article 80. Since the Magna Carta (b) Using qualification standards, employment tests or
accords them the rights of qualified able-bodied persons, other selection criteria that screen out or tend to screen
they are thus covered by Article 280 of the Labor Code, out a disabled person unless such standards, tests or
which provides: other selection criteria are shown to be job-related for
the position in question and are consistent with business
“ART. 280. Regular and Casual Employment. — The necessity;
provisions of written agreement to the contrary (c) Utilizing standards, criteria, or methods of
notwithstanding and regardless of the oral agreement of administration that:
the parties, an employment shall be deemed to be (1) have the effect of discrimination on the basis of
regular where the employee has been engaged to disability; or
perform activities which are usually necessary or (2) perpetuate the discrimination of others who are
desirable in the usual business or trade of the employer, subject to common administrative control.
x x x” (d) Providing less compensation, such as salary, wage
or other forms of remuneration and fringe benefits, to a
“The primary standard, therefore, of determining regular qualified disabled employee, by reason of his disability,
employment is the reasonable connection between the than the amount to which a non-disabled person
particular activity performed by the employee in relation performing the same work is entitled;
to the usual trade or business of the employer. The test (e) Favoring a non-disabled employee over a qualified
is whether the former is usually necessary or desirable in disabled employee with respect to promotion, training
the usual business or trade of the employer. The opportunities, study and scholarship grants, solely on
connection can be determined by considering the nature account of the latter's disability;
of the work performed and its relation to the scheme of (f) Re-assigning or transferring a disabled employee to a
the particular business or trade in its entirety. Also if the job or position he cannot perform by reason of his
employee has been performing the job for at least one disability;
year, even if the performance is not continuous and (g) Dismissing or terminating the services of a disabled
merely intermittent, the law deems repeated and employee by reason of his disability unless the employer
continuing need for its performance as sufficient can prove that he impairs the satisfactory performance
evidence of the necessity if not indispensability of that of the work involved to the prejudice of the business
activity to the business. Hence, the employment is entity: Provided, however, That the employer first sought
considered regular, but only with respect to such activity, to provide reasonable accommodations for disabled
and while such activity exists.” persons;
(h) Failing to select or administer in the most effective
Respondent bank entered into the aforesaid contract manner employment tests which accurately reflect the
with a total of 56 handicapped workers and renewed the skills, aptitude or other factor of the disabled applicant or
contracts of 37 of them. In fact, two of them worked employee that such tests purports to measure, rather
from 1988 to 1993. Verily, the renewal of the contracts than the impaired sensory, manual or speaking skills of
of the handicapped workers and the hiring of others lead such applicant or employee, if any; and
to the conclusion that their tasks were beneficial and (i) Excluding disabled persons from membership in labor
necessary to the bank. More important, these facts unions or similar organizations.
show that they were qualified to perform the Sec. 33. Employment Entrance Examination. —
responsibilities of their positions. In other words, their Upon an offer of employment, a disabled applicant may
disability did not render them unqualified or unfit for the be subjected to medical examination, on the following
tasks assigned to them. occasions:
(a) all entering employees are subjected to such an
Without a doubt, the task of counting and sorting bills is examination regardless of disability;
necessary and desirable to the business of respondent (b) information obtained during the medical condition or
bank. With the exception of sixteen of them, petitioners history of the applicant is collected and maintained on
performed these tasks for more than six months. separate forms and in separate medical files and is
treated as a confidential medical record; Provided,
Petition granted. however, That:
(1) supervisors and managers may be informed (d) If the violator is an alien or a foreigner, he shall be
regarding necessary restrictions on the work or duties of deported immediately after service of sentence without
the employees and necessary accommodations; further deportation proceedings.
(2) first aid and safety personnel may be informed, when
appropriate, if the disability may require emergency 3. WOMEN WORKERS
treatment;
(3) government officials investigating compliance with References:
this Act shall be provided relevant information on
request; and A. Women under the Constitution, Art. II, Sec. 14;
(4) the results of such examination are used only Art XIII, Sec 14
in accordance with this Act.
• Philippine Association of Service Exporters v.
f. Enforcement, Secs. 44, 45, 46 Drilon, 163 SCRA 386 (1988)
Sec. 44. Enforcement by the Secretary of Justice.
— Facts: Petitioner, Phil association of Service Exporters,
(a) Denial of Right Inc., is engaged principally in the recruitment of Filipino
(1) Duty to Investigate — the Secretary of Justice shall workers, male and female of overseas employment. It
investigate alleged violations of this Act, and shall challenges the constitutional validity of Dept. Order No. 1
undertake periodic reviews of compliance of covered (1998) of DOLE entitled “Guidelines Governing the
entities under this Act. Temporary Suspension of Deployment of Filipino
(b) Potential Violations — If the Secretary of Justice has Domestic and Household Workers.” It claims that such
reasonable cause to believe that — order is a discrimination against males and females. The
(1) any person or group of persons is engaged in a Order does not apply to all Filipino workers but only to
pattern or practice of discrimination under this Act; or domestic helpers and females with similar skills, and that
(2) any person or group or persons has been it is in violation of the right to travel, it also being an
discriminated against under this Act and such invalid exercise of the lawmaking power. Further, PASEI
discrimination raises an issue of general public invokes Sec 3 of Art 13 of the Constitution, providing for
importance, the Secretary of Justice may commence a worker participation in policy and decision-making
legal action in any appropriate court. processes affecting their rights and benefits as may be
provided by law. Thereafter the Solicitor General on
Sec. 45. Authority of Court. — The court may grant any behalf of DOLE submitting to the validity of the
equitable relief that such court considers to be challenged guidelines involving the police power of the
appropriate, including, to the extent required by this Act: State and informed the court that the respondent have
(a) granting temporary, preliminary or permanent relief; lifted the deployment ban in some states where there
(b) providing an auxiliary aid or service, modification of exists bilateral agreement with the Philippines and
policy, practice or procedure, or alternative method; and existing mechanism providing for sufficient safeguards to
(c) making facilities readily accessible to and usable by ensure the welfare and protection of the Filipino workers.
individuals with disabilities
Issue: Whether or not there has been a valid
Sec. 46. Penal Clause. — (a) Any person who violates classification in the challenged Department Order No. 1.
any provision of this Act shall suffer the following
penalties: Held: SC in dismissing the petition ruled that there has
(1) for the first violation, a fine of not less than Fifty been valid classification, the Filipino female domestics
thousand pesos (P50,000.00) but not exceeding One working abroad were in a class by themselves, because
hundred thousand pesos (P100,000.00) or imprisonment of the special risk to which their class was exposed.
of not less than six (6) months but not more than two (2) There is no question that Order No.1 applies only to
years, or both at the discretion of the court; and female contract workers but it does not thereby make an
(2) for any subsequent violation, a fine of not less than undue discrimination between sexes. It is well settled hat
One hundred thousand pesos (P100,000.00) but not equality before the law under the constitution does not
exceeding Two hundred thousand pesos (P200,000.00) import a perfect identity of rights among all men and
or imprisonment for not less than two (2) years but not women. It admits of classification, provided that:
more than six (6) years, or both at the discretion of the
court. 1. Such classification rests on substantial distinctions
(b) Any person who abuses the privileges granted herein 2. That they are germane to the purpose of the law
shall be punished with imprisonment of not less than six 3. They are not confined to existing conditions
(6) months or a fine of not less than Five thousand 4. They apply equally to al members of the same class
pesos (P5,000.00), but not more than Fifty thousand
pesos (P50,000.00), or both, at the discretion of the In the case at bar, the classifications made, rest on
court. substantial distinctions.
(c) If the violator is a corporation, organization or any
similar entity, the officials thereof directly involved shall Dept. Order No. 1 does not impair the right to travel. The
be liable therefor. consequence of the deployment ban has on the right to
travel does not impair the right, as the right to travel is PT&T’s policy of not accepting or disqualifying from work
subjects among other things, to the requirements of any woman worker who contracts marriage is afoul of
“public safety” as may be provided by law. Deployment the right against discrimination provided to all women
ban of female domestic helper is a valid exercise of workers by our labor laws and by our Constitution. The
police power. Police power as been defined as the state record discloses clearly that de Guzman’s ties with
authority to enact legislation that may interfere with PT&T were dissolved principally because of the
personal liberty or property in order to promote general company’s policy that married women are not qualified
welfare. Neither is there merit in the contention that for employment in the company, and not merely because
Department Order No. 1 constitutes an invalid exercise of her supposed acts of dishonesty.
of legislative power as the labor code vest the DOLE
with rule making powers. The government abhors any stipulation or policy in the
nature adopted by PT&T. As stated in the labor code:
• Phil. Telegraph and Telephone Co. v. NLRC, 272
SCRA 596 (1997) “ART. 136. Stipulation against marriage. — It shall be
A woman worker may not be dismissed on the unlawful for an employer to require as a condition of
ground of dishonesty for having written “single” on employment or continuation of employment that a
the space for civil status on the application sheet, woman shall not get married, or to stipulate expressly or
contrary to the fact that she was married. tacitly that upon getting married, a woman employee
shall be deemed resigned or separated, or to actually
FACTS: PT&T (Philippine Telegraph & Telephone dismiss, discharge, discriminate or otherwise prejudice a
Company) initially hired Grace de Guzman specifically woman employee merely by reason of marriage.”
as “Supernumerary Project Worker”, for a fixed period
from November 21, 1990 until April 20, 1991 as reliever The policy of PT&T is in derogation of the provisions
for C.F. Tenorio who went on maternity leave. She was stated in Art.136 of the Labor Code on the right of a
again invited for employment as replacement of Erlina F. woman to be free from any kind of stipulation against
Dizon who went on leave on 2 periods, from June 10, marriage in connection with her employment and it
1991 to July 1, 1991 and July 19, 1991 to August 8, likewise is contrary to good morals and public policy,
1991. depriving a woman of her freedom to choose her status,
a privilege that is inherent in an individual as an
On September 2, 1991, de Guzman was again asked to intangible and inalienable right. The kind of policy
join PT&T as a probationary employee where followed by PT&T strikes at the very essence, ideals and
probationary period will cover 150 days. She indicated purpose of marriage as an inviolable social institution
in the portion of the job application form under civil and ultimately, family as the foundation of the nation.
status that she was single although she had contracted Such policy must be prohibited in all its indirect,
marriage a few months earlier. When petitioner learned disguised or dissembled forms as discriminatory conduct
later about the marriage, its branch supervisor, Delia M. derogatory of the laws of the land not only for order but
Oficial, sent de Guzman a memorandum requiring her to also imperatively required.
explain the discrepancy. Included in the memorandum,
was a reminder about the company’s policy of not √
accepting married women for employment. She was FACTS:
dismissed from the company effective January 29, 1992. Grace de Guzman was hired by PT&T as a
Labor Arbiter handed down decision on November 23, Supernumerary Project Worker for a fixed period from
1993 declaring that petitioner illegally dismissed De November 21, 1990 until April 20, 1991 as reliever for
Guzman, who had already gained the status of a regular C.F. Tenorio who went on maternity leave. Under the
employee. Furthermore, it was apparent that she had Reliever Agreement signed by Grace, her employment
been discriminated on account of her having contracted was to be immediately terminated upon expiration of the
marriage in violation of company policies. agreed period. From June 10, 1991 to July 1, 1991, and
from July 19, 1991 to August 8, 1991, PT&T again
ISSUE: Whether the alleged concealment of civil status engaged the services of Grace as reliever for Erlinda F.
can be grounds to terminate the services of an Dizon who went on leave during both periods. On
employee. September 2, 1991, Grace was asked to join petitioner
company as a probationary employee. In the job
HELD: Article 136 of the Labor Code, one of the application form furnished to Grace, she indicated in the
protective laws for women, explicitly prohibits civil status that she was single although she had in fact
discrimination merely by reason of marriage of a female contracted marriage on May 26, 1991. This meant she
employee. It is recognized that company is free to was not single, as she had represented herself, when
regulate manpower and employment from hiring to firing, she signed the reliever agreements on June 10, 1991
according to their discretion and best business and July 8, 1991. Petitioner dismissed Grace from the
judgment, except in those cases of unlawful Company after learning about Grace’s real civil status
discrimination or those provided by law. and being unconvinced of Grace’s explanation for the
discrepancy. Grace immediately filed a complaint for
illegal dismissal coupled with a claim for non-payment of
cost of living allowances (COLA), before the Regional for profit or not, including educational, religious and
Arbitration Branch of the National Labor Relations charitable institutions, except to the Government and
Commission (NLRC) in Baguio City. At the preliminary to government-owned or controlled corporations and
conference, Grace volunteered the information that she to employers of household helpers and persons in
had failed to remit the amount of P2,380.75 of her their personal service insofar as such workers are
collections, and executed a promissory note for that concerned.
amount in favor of petitioner. The Labor Arbiter handed
down a decision declaring that private respondent, who C. Prohibited Acts
had already gained the status of a regular employee, 1) Night Work(Exceptions), International Labor
was illegally dismissed by petitioner and ordered her Organization Convention 89 (1948), Art. 130-131
reinstatement plus payment of the corresponding back
wages and COLA. On appeal, the NLRC upheld the International Labor Organization Convention 89 (1948),
Labor Arbiter but modified the Labor Arbiter’s decision Preamble
with the qualification that Grace de Guzman deserved to The General Conference of the International Labour
be suspended for three months due to the dishonest Organisation,
nature of her acts which should not be condoned.
Having been convened at San Francisco by the
ISSUE: Can the alleged concealment of civil status be a Governing Body of the International Labour Office, and
ground for terminating the services of an employee? having met in its Thirty-first Session on 17 June 1948,
and
HELD: No. The Constitution provides a gamut of
protective provisions due to the disparity in rights Having decided upon the adoption of certain proposals
between men and women in almost all phases of social with regard to the partial revision of the Night Work
and political life. Article II Section 14 of the 1987 (Women) Convention, 1919, adopted by the Conference
Constitution states that “The State recognizes the role of at its First Session, and the Night Work (Women)
women in nation-building, and shall ensure the Convention (Revised), 1934, adopted by the Conference
fundamental equality before the law of women and men.” at its Eighteenth Session, which is the ninth item on the
Corollary to this is Article XIII Section 3 which states that agenda of the session, and
“The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full Considering that these proposals must take the form of
employment and equality of employment opportunities an international Convention.
for all” and Article XIII Section 14 which states that “The
State shall protect working women by providing safe and adopts this ninth day of July of the year one thousand
healthful working conditions, taking into account their nine hundred and forty-eight the following Convention,
maternal functions, and such facilities and opportunities which may be cited as the Night Work (Women)
that will enhance their welfare and enable them to Convention (Revised), 1948:
realize their full potential in the service of the nation.”
Since the Labor Code was enacted on May 1, 1974, PART I. GENERAL PROVISIONS
corrective labor and social laws on gender inequality Article 1
have emerged with more frequency in the years. Two of 1. For the purpose of this Convention, the term industrial
these are Republic Act No. 6727 which explicitly undertakings includes particularly:
prohibits discrimination against women with respect to (a) mines, quarries, and other works for the extraction of
terms and conditions of employment, promotion, and minerals from the earth;
training opportunities; and Republic Act No. 7192 or the (b) undertakings in which articles are manufactured,
Women in Development and Nation Building Act which, altered, cleaned, repaired, ornamented, finished,
among others, affords women equal opportunities with adapted for sale, broken up or demolished, or in which
men to act and to enter into contracts. In the Labor materials are transformed, including undertakings
Code, Article 136 explicitly prohibits discrimination engaged in ship-building or in the generation,
merely by reason of the marriage of a female employee. transformation or transmission of electricity or motive
The private respondent’s act of concealing the true power of any kind;
nature of her status from PT&T could not be properly (c) undertakings engaged in building and civil
characterized as willful or in bad faith as she was moved engineering work, including constructional, repair,
to act the way she did mainly because she wanted to maintenance, alteration and demolition work.
retain a permanent job in a stable company. In other 2. The competent authority shall define the line of
words, she was practically forced by that very same division which separates industry from agriculture,
illegal company policy into misrepresenting her civil commerce and other non-industrial occupations.
status for fear of being disqualified from work. Article 2
For the purpose of this Convention the term night
B. Coverage, Rule XII, Sec. I signifies a period of at least eleven consecutive hours,
Employment of Women and Minors including an interval prescribed by the competent
SECTION 1. General statement on coverage. — This authority of at least seven consecutive hours falling
Rule shall apply to all employers, whether operating between ten o'clock in the evening and seven o'clock in
the morning; the competent authority may prescribe provisionally, and for a maximum period of three years,
different intervals for different areas, industries, be declared by the government to signify a period of only
undertakings or branches of industries or undertakings, ten hours, including an interval prescribed by the
but shall consult the employers' and workers' competent authority of at least seven consecutive hours
organisations concerned before prescribing an interval falling between ten o'clock in the evening and seven
beginning after eleven o'clock in the evening. o'clock in the morning.

Article 3 Article 10
Women without distinction of age shall not be employed 1. The provisions of this Convention shall apply to India
during the night in any public or private industrial subject to the modifications set forth in this Article.
undertaking, or in any branch thereof, other than an 2. The said provisions shall apply to all territories in
undertaking in which only members of the same family respect of which the Indian legislature has jurisdiction to
are employed. apply them.
3. The term industrial undertaking shall include:
Article 4 (a) factories as defined in the Indian Factories Act; and
Article 3 shall not apply: (b) mines to which the Indian Mines Act applies.

(a) in cases of force majeure, when in any undertaking Article 11


there occurs an interruption of work which it was 1. The provisions of this Convention shall apply to
impossible to foresee, and which is not of a recurring Pakistan subject to the modifications set forth in this
character; Article.
(b) in cases where the work has to do with raw materials 2. The said provisions shall apply to all territories in
or materials in course of treatment which are subject to respect of which the Pakistan legislature has jurisdiction
rapid deterioration when such night work is necessary to to apply them.
preserve the said materials from certain loss. 3. The term industrial undertaking shall include:
(a) factories as defined in the Factories Act;
Article 5 (b) mines to which the Mines Act applies.
1. The prohibition of night work for women may be
suspended by the government, after consultation with Article 12
the employers' and workers' organisations concerned, 1. The International Labour Conference may, at any
when in case of serious emergency the national interest session at which the matter is included in its agenda,
demands it. adopt by a two-thirds majority draft amendments to any
2. Such suspension shall be notified by the government one or more of the preceding articles of Part II of this
concerned to the Director-General of the International Convention.
Labour Office in its annual report on the application of 2. Any such draft amendment shall state the Member or
the Convention. Members to which it applies, and shall, within the period
of one year, or, in exceptional circumstances, of
Article 6 eighteen months from the closing of the session of the
In industrial undertakings which are influenced by the Conference, be submitted by the Member or Members to
seasons and in all cases where exceptional which it applies to the authority or authorities within
circumstances demand it, the night period may be whose competence the matter lies, for the enactment of
reduced to ten hours on sixty days of the year. legislation or other action.
3. Each such Member will, if it obtains the consent of the
Article 7 authority or authorities within whose competence the
In countries where the climate renders work by day matter lies, communicate the formal ratification of the
particularly trying, the night period may be shorter than amendment to the Director-General of the International
that prescribed in the above articles if compensatory rest Labour Office for registration.
is accorded during the day. 4. Any such draft amendment shall take effect as an
amendment to this Convention on ratification by the
Article 8 Member or Members to which it applies.
This Convention does not apply to:
PART III. FINAL PROVISIONS
(a) women holding responsible positions of a managerial Article 13
or technical character; and The formal ratifications of this Convention shall be
(b) women employed in health and welfare services who communicated to the Director-General of the
are not ordinarily engaged in manual work. International Labour Office for registration.
PART II. SPECIAL PROVISIONS FOR CERTAIN Article 14
COUNTRIES 1. This Convention shall be binding only upon those
Article 9 Members of the International Labour Organisation
In those countries where no government regulation as whose ratifications have been registered with the
yet applies to the employment of women in industrial Director-General.
undertakings during the night, the term night may
2. It shall come into force twelve months after the date (b) as from the date when the new revising Convention
on which the ratifications of two Members have been comes into force this Convention shall cease to be open
registered with the Director-General. to ratification by the Members.
3. Thereafter, this Convention shall come into force for 2. This Convention shall in any case remain in force in
any Member twelve months after the date on which its its actual form and content for those Members which
ratifications has been registered. have ratified it but have not ratified the revising
Convention.
Article 15
1. A Member which has ratified this Convention may Article 20
denounce it after the expiration of ten years from the The English and French versions of the text of this
date on which the Convention first comes into force, by Convention are equally authoritative.
an act communicated to the Director-General of the
International Labour Office for registration. Such Art. 130-131
denunciation shall not take effect until one year after the ART. 130. Nightwork prohibition. - No woman,
date on which it is registered. regardless of age, shall be employed or permitted or
2. Each Member which has ratified this Convention and suffered to work, with or without compensation:
which does not, within the year following the expiration (a) In any industrial undertaking or branch thereof
of the period of ten years mentioned in the preceding between ten o’clock at night and six o’clock in the
paragraph, exercise the right of denunciation provided morning of the following day; or
for in this Article, will be bound for another period of ten (b) In any commercial or non-industrial undertaking or
years and, thereafter, may denounce this Convention at branch thereof, other than agricultural, between midnight
the expiration of each period of ten years under the and six o’clock in the morning of the following day; or
terms provided for in this Article. (c) In any agricultural undertaking at nighttime unless
she is given a period of rest of not less than nine (9)
Article 16 consecutive hours.
1. The Director-General of the International Labour
Office shall notify all Members of the International ART. 131. Exceptions. - The prohibitions prescribed by
Labour Organisation of the registration of all ratifications the preceding Article shall not apply in any of the
and denunciations communicated to him by the following cases:
Members of the Organisation. (a) In cases of actual or impending emergencies caused
2. When notifying the Members of the Organisation of by serious accident, fire, flood, typhoon, earthquake,
the registration of the second ratification communicated epidemic or other disasters or calamity, to prevent loss
to him, the Director-General shall draw the attention of of life or property, or in cases of force majeure or
the Members of the Organisation to the date upon which imminent danger to public safety;
the Convention will come into force. (b) In case of urgent work to be performed on
machineries, equipment or installation, to avoid serious
Article 17 loss which the employer would otherwise suffer;
The Director-General of the International Labour Office (c) Where the work is necessary to prevent serious
shall communicate to the Secretary-General of the loss of perishable goods;
United Nations for registration in accordance with Article (d) Where the woman employee holds a responsible
102 of the Charter of the United Nations full particulars position of managerial or technical nature, or where
of all ratifications and acts of denunciation registered by the woman employee has been engaged to provide
him in accordance with the provisions of the preceding health and welfare services;
articles. (e) Where the nature of the work requires the manual
skill and dexterity of women workers and the same
Article 18 cannot be performed with equal efficiency by male
At such times as it may consider necessary the workers;
Governing Body of the International Labour Office shall (f) Where the women employees are immediate
present to the General Conference a report on the members of the family operating the establishment or
working of this Convention and shall examine the undertaking; and
desirability of placing on the agenda of the Conference (g) Under other analogous cases exempted by the
the question of its revision in whole or in part. Secretary of Labor and Employment in appropriate
regulations.
Article 19
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 15 above, if and when the new
revising Convention shall have come into force;
2) Discrimination International Labor Organization 3. Differential rates between workers which correspond,
100, (1951) and 111 (1958); CEDAW Art. 11; Art. 135 without regard to sex, to differences, as determined by
such objective appraisal, in the work to be performed
C100 - Equal Remuneration Convention, shall not be considered as being contrary to the principle
1951 (No. 100) of equal remuneration for men and women workers for
Preamble work of equal value.
The General Conference of the International Labour
Organisation, Article 4
Each Member shall co-operate as appropriate with the
Having been convened at Geneva by the Governing employers' and workers' organisations concerned for the
Body of the International Labour Office, and having met purpose of giving effect to the provisions of this
in its Thirty-fourth Session on 6 June 1951, and Convention.

Having decided upon the adoption of certain proposals Article 5


with regard to the principle of equal remuneration for The formal ratifications of this Convention shall be
men and women workers for work of equal value, which communicated to the Director-General of the
is the seventh item on the agenda of the session, and International Labour Office for registration.

Having determined that these proposals shall take the Article 6


form of an international Convention, adopts this twenty- 1. This Convention shall be binding only upon those
ninth day of June of the year one thousand nine hundred Members of the International Labour Organisation
and fifty-one the following Convention, which may be whose ratifications have been registered with the
cited as the Equal Remuneration Convention, 1951: Director-General.
2. It shall come into force twelve months after the date
Article 1 on which the ratifications of two Members have been
For the purpose of this Convention-- registered with the Director-General.
(a) the term remuneration includes the ordinary, basic or 3. Thereafter, this Convention shall come into force for
minimum wage or salary and any additional emoluments any Member twelve months after the date on which its
whatsoever payable directly or indirectly, whether in ratification has been registered.
cash or in kind, by the employer to the worker and
arising out of the worker's employment; Article 7
(b) the term equal remuneration for men and women 1. Declarations communicated to the Director-General of
workers for work of equal value refers to rates of the International Labour Office in accordance with
remuneration established without discrimination based paragraph 2 of Article 35 of the Constitution of the
on sex. International Labour Organisation shall indicate --
(a) the territories in respect of which the Member
Article 2 concerned undertakes that the provisions of the
1. Each Member shall, by means appropriate to the Convention shall be applied without modification;
methods in operation for determining rates of (b) the territories in respect of which it undertakes that
remuneration, promote and, in so far as is consistent the provisions of the Convention shall be applied subject
with such methods, ensure the application to all workers to modifications, together with details of the said
of the principle of equal remuneration for men and modifications;
women workers for work of equal value. (c) the territories in respect of which the Convention is
2. This principle may be applied by means of-- inapplicable and in such cases the grounds on which it is
(a) national laws or regulations; inapplicable;
(b) legally established or recognised machinery for wage (d) the territories in respect of which it reserves its
determination; decision pending further consideration of the position.
(c) collective agreements between employers and 2. The undertakings referred to in subparagraphs (a) and
workers; or (b) of paragraph 1 of this Article shall be deemed to be
(d) a combination of these various means. an integral part of the ratification and shall have the force
of ratification.
Article 3 3. Any Member may at any time by a subsequent
1. Where such action will assist in giving effect to the declaration cancel in whole or in part any reservation
provisions of this Convention measures shall be taken to made in its original declaration in virtue of subparagraph
promote objective appraisal of jobs on the basis of the (b), (c) or (d) of paragraph 1 of this Article.
work to be performed. 4. Any Member may, at any time at which the
2. The methods to be followed in this appraisal may be Convention is subject to denunciation in accordance with
decided upon by the authorities responsible for the the provisions of Article 9, communicate to the Director-
determination of rates of remuneration, or, where such General a declaration modifying in any other respect the
rates are determined by collective agreements, by the terms of any former declaration and stating the present
parties thereto. position in respect of such territories as it may specify.
Article 8 Article 12
1. Declarations communicated to the Director-General of At such times as may consider necessary the Governing
the International Labour Office in accordance with Body of the International Labour Office shall present to
paragraph 4 or 5 of Article 35 of the Constitution of the the General Conference a report on the working of this
International Labour Organisation shall indicate whether Convention and shall examine the desirability of placing
the provisions of the Convention will be applied in the on the agenda of the Conference the question of its
territory concerned without modification or subject to revision in whole or in part.
modifications; when the declaration indicates that the
provisions of the Convention will be applied subject to Article 13
modifications, it shall give details of the said 1. Should the Conference adopt a new Convention
modifications. revising this Convention in whole or in part, then, unless
2. The Member, Members or international authority the new Convention otherwise provides--
concerned may at any time by a subsequent declaration (a) the ratification by a Member of the new revising
renounce in whole or in part the right to have recourse to Convention shall ipso jure involve the immediate
any modification indicated in any former declaration. denunciation of this Convention, notwithstanding the
3. The Member, Members or international authority provisions of Article 9 above, if and when the new
concerned may, at any time at which this Convention is revising Convention shall have come into force;
subject to denunciation in accordance with the (b) as from the date when the new revising Convention
provisions of Article 9, communicate to the Director- comes into force this Convention shall cease to be open
General a declaration modifying in any other respect the to ratification by the Members.
terms of any former declaration and stating the present 2. This Convention shall in any case remain in force in
position in respect of the application of the Convention. its actual form and content for those Members which
have ratified it but have not ratified the revising
Article 9 Convention.
1. A Member which has ratified this Convention may
denounce it after the expiration of ten years from the Article 14
date on which the Convention first comes into force, by The English and French versions of the text of this
an act communicated to the Director-General of the Convention are equally authoritative.
International Labour Office for registration. Such
denunciation shall not take effect until one year after the C111 - Discrimination (Employment and Occupation)
date on which it is registered. Convention, 1958 (No. 111)
2. Each Member which has ratified this Convention and
which does not, within the year following the expiration Preamble
of the period of ten years mentioned in the preceding The General Conference of the International Labour
paragraph, exercise the right of denunciation provided Organisation,
for in this Article, will be bound for another period of ten
years and, thereafter, may denounce this Convention at Having been convened at Geneva by the Governing
the expiration of each period of ten years under the Body of the International Labour Office, and having met
terms provided for in this Article. in its Forty-second Session on 4 June 1958, and

Article 10 Having decided upon the adoption of certain proposals


1. The Director-General of the International Labour with regard to discrimination in the field of employment
Office shall notify all Members of the International and occupation, which is the fourth item on the agenda
Labour Organisation of the registration of all ratifications, of the session, and
declarations and denunciations communicated to him by
the Members of the Organisation. Having determined that these proposals shall take the
2. When notifying the Members of the Organisation of form of an international Convention, and
the registration of the second ratification communicated
to him, the Director-General shall draw the attention of Considering that the Declaration of Philadelphia affirms
the Members of the Organisation to the date upon which that all human beings, irrespective of race, creed or sex,
the Convention will come into force. have the right to pursue both their material well-being
and their spiritual development in conditions of freedom
Article 11 and dignity, of economic security and equal opportunity,
The Director-General of the International Labour Office and
shall communicate to the Secretary-General of the
United Nations for registration in accordance with Article Considering further that discrimination constitutes a
102 of the Charter of the United Nations full particulars violation of rights enunciated by the Universal
of all ratifications, declarations and acts of denunciation Declaration of Human Rights,
registered by him in accordance with the provisions of
the preceding articles. 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 discrimination, provided that the individual concerned
(Employment and Occupation) Convention, 1958: shall have the right to appeal to a competent body
established in accordance with national practice.
Article 1
1. For the purpose of this Convention the term Article 5
discrimination includes-- 1. Special measures of protection or assistance provided
(a) any distinction, exclusion or preference made on the for in other Conventions or Recommendations adopted
basis of race, colour, sex, religion, political opinion, by the International Labour Conference shall not be
national extraction or social origin, which has the effect deemed to be discrimination.
of nullifying or impairing equality of opportunity or 2. Any Member may, after consultation with
treatment in employment or occupation; representative employers' and workers' organisations,
(b) such other distinction, exclusion or preference which where such exist, determine that other special measures
has the effect of nullifying or impairing equality of designed to meet the particular requirements of persons
opportunity or treatment in employment or occupation as who, for reasons such as sex, age, disablement, family
may be determined by the Member concerned after responsibilities or social or cultural status, are generally
consultation with representative employers' and workers' recognised to require special protection or assistance,
organisations, where such exist, and with other shall not be deemed to be discrimination.
appropriate bodies.
2. Any distinction, exclusion or preference in respect of a Article 6
particular job based on the inherent requirements thereof Each Member which ratifies this Convention undertakes
shall not be deemed to be discrimination. to apply it to non-metropolitan territories in accordance
3. For the purpose of this Convention the terms with the provisions of the Constitution of the International
employment and occupation include access to Labour Organisation.
vocational training, access to employment and to
particular occupations, and terms and conditions of Article 7
employment. The formal ratifications of this Convention shall be
communicated to the Director-General of the
Article 2 International Labour Office for registration.
Each Member for which this Convention is in force
undertakes to declare and pursue a national policy Article 8
designed to promote, by methods appropriate to national 1. This Convention shall be binding only upon those
conditions and practice, equality of opportunity and Members of the International Labour Organisation
treatment in respect of employment and occupation, with whose ratifications have been registered with the
a view to eliminating any discrimination in respect Director-General.
thereof. 2. It shall come into force twelve months after the date
on which the ratifications of two Members have been
Article 3 registered with the Director-General.
Each Member for which this Convention is in force 3. Thereafter, this Convention shall come into force for
undertakes, by methods appropriate to national any Member twelve months after the date on which its
conditions and practice-- ratification has been registered.
(a) to seek the co-operation of employers' and workers'
organisations and other appropriate bodies in promoting Article 9
the acceptance and observance of this policy; 1. A Member which has ratified this Convention may
(b) to enact such legislation and to promote such denounce it after the expiration of ten years from the
educational programmes as may be calculated to secure date on which the Convention first comes into force, by
the acceptance and observance of the policy; an act communicated to the Director-General of the
(c) to repeal any statutory provisions and modify any International Labour Office for registration. Such
administrative instructions or practices which are denunciation shall not take effect until one year after the
inconsistent with the policy; date on which it is registered.
(d) to pursue the policy in respect of employment under 2. Each Member which has ratified this Convention and
the direct control of a national authority; which does not, within the year following the expiration
(e) to ensure observance of the policy in the activities of of the period of ten years mentioned in the preceding
vocational guidance, vocational training and placement paragraph, exercise the right of denunciation provided
services under the direction of a national authority; for in this Article, will be bound for another period of ten
(f) to indicate in its annual reports on the application of years and, thereafter, may denounce this Convention at
the Convention the action taken in pursuance of the the expiration of each period of ten years under the
policy and the results secured by such action. terms provided for in this Article.

Article 4 Article 10
Any measures affecting an individual who is justifiably 1. The Director-General of the International Labour
suspected of, or engaged in, activities prejudicial to the Office shall notify all Members of the International
security of the State shall not be deemed to be Labour Organisation of the registration of all ratifications
and denunciations communicated to him by the unlawful act as provided in this Article or any violation of
Members of the Organisation. the rules and regulations issued pursuant to Section 2
2. When notifying the Members of the Organisation of hereof shall be penalized as provided in Articles 288 and
the registration of the second ratification communicated 289 of this Code: Provided, That the institution of any
to him, the Director-General shall draw the attention of criminal action under this provision shall not bar the
the Members of the Organisation to the date upon which aggrieved employee from filing an entirely separate and
the Convention will come into force. distinct action for money claims, which may include
claims for damages and other affirmative reliefs. The
Article 11 actions hereby authorized shall proceed independently
The Director-General of the International Labour Office of each other. (As amended by Republic Act No. 6725,
shall communicate to the Secretary-General of the May 12, 1989).
United Nations for registration in accordance with Article
102 of the Charter of the United Nations full particulars 3) Stipulation Against Marriage, Art. 136
of all ratifications and acts of denunciation registered by
him in accordance with the provisions of the preceding ART. 136. Stipulation against marriage. - It shall be
Articles. unlawful for an employer to require as a condition of
employment or continuation of employment that a
Article 12 woman employee shall not get married, or to
At such times as it may consider necessary the stipulate expressly or tacitly that upon getting
Governing Body of the International Labour Office shall married, a woman employee shall be deemed
present to the General Conference a report on the resigned or separated, or to actually dismiss,
working of this Convention and shall examine the discharge, discriminate or otherwise prejudice a
desirability of placing on the agenda of the Conference woman employee merely by reason of her marriage.
the question of its revision in whole or in part.
• Philippine Telegraph and Telephone Co. vs. NLRC
Article 13 (G.R. No. 1118978, May 23, 1997)
1. Should the Conference adopt a new Convention A woman worker may not be dismissed on the
revising this Convention in whole or in part, then, unless ground of dishonesty for having written “single” on
the new Convention otherwise provides: the space for civil status on the application sheet,
(a) the ratification by a Member of the new revising contrary to the fact that she was married.
Convention shall ipso jure involve the immediate
denunciation of this Convention, notwithstanding the PT&T Co. v. NLRC, GR No. 118978, May 23, 1997
provisions of Article 9 above, if and when the new
revising Convention shall have come into force; FACTS:
(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. Grace de Guzman was hired by PT&T as a
2. This Convention shall in any case remain in force in Supernumerary Project Worker for a fixed period from
its actual form and content for those Members which November 21, 1990 until April 20, 1991 as reliever for
have ratified it but have not ratified the revising C.F. Tenorio who went on maternity leave. Under the
Convention. Reliever Agreement signed by Grace, her employment
was to be immediately terminated upon expiration of the
Article 14 agreed period. From June 10, 1991 to July 1, 1991, and
The English and French versions of the text of this from July 19, 1991 to August 8, 1991, PT&T again
Convention are equally authoritative. engaged the services of Grace as reliever for Erlinda F.
Dizon who went on leave during both periods. On
Article 135 September 2, 1991, Grace was asked to join petitioner
ART. 135. Discrimination prohibited. - It shall be company as a probationary employee. In the job
unlawful for any employer to discriminate against application form furnished to Grace, she indicated in the
any woman employee with respect to terms and civil status that she was single although she had in fact
conditions of employment solely on account of her contracted marriage on May 26, 1991. This meant she
sex. was not single, as she had represented herself,
The following are acts of discrimination: when she signed the reliever agreements on June 10,
(a) Payment of a lesser compensation, including 1991 and July 8, 1991. Petitioner dismissed Grace from
wage, salary or other form of remuneration and the company after learning about Grace’s real civil status
fringe benefits, to a female employees as against a and being unconvinced of Grace’s explanation for the
male employee, for work of equal value; and discrepancy. Grace immediately filed a complaint for
(b) Favoring a male employee over a female illegal dismissal coupled with a claim for non-payment of
employee with respect to promotion, training cost of living allowances (COLA), before the Regional
opportunities, study and scholarship grants solely on Arbitration Branch of the National Labor Relations
account of their sexes. Commission (NLRC) in Baguio City. At the preliminary
Criminal liability for the willful commission of any conference, Grace volunteered the information that she
had failed to remit the amount of P2,380.75 of her • Duncan Association of Detailman PTGWO vs.
collections, and executed a promissory note for that GlaxoWellcome Philippines (438 SCRA 343)
amount in favor of petitioner. The Labor Arbiter handed DUNCAN ASSOCIATION OF DETAILMAN-PTGWO
down a decision declaring that private respondent, who and PEDRO A. TECSON, petitioners,
had already gained the status of a regular employee, vs.
was illegally dismissed by petitioner and ordered her GLAXO WELLCOME PHILIPPINES, INC., Respondent.
reinstatement plus payment of the corresponding back FACTS: Petitioner Pedro A. Tecson (Tecson) was hired
wages and COLA. On appeal, the NLRC upheld the by respondent Glaxo Wellcome Philippines, Inc. (Glaxo)
Labor Arbiter but modified the Labor Arbiter’s decision as medical representative on October 24, 1995, after
with the qualification that Grace de Guzman deserved to Tecson had undergone training and orientation.
be suspended for three months due to the dishonest Thereafter, Tecson signed a contract of employment
nature of her acts which should not be condoned. which stipulates, among others, that he agrees to study
and abide by existing company rules; to disclose to
management any existing or future relationship by
ISSUE:
consanguinity or affinity with co-employees or
employees of competing drug companies and should
Can the alleged concealment of civil status be a ground management find that such relationship poses a possible
for terminating the services of an employee? conflict of interest, to resign from the company. Code of
Conduct of Glaxo similarly provides these conditions;
that otherwise, the management and the employee will
HELD: explore the possibility of a “transfer to another
department in a non-counterchecking position” or
No. The Constitution provides a gamut of protective preparation for employment outside the company after
provisions due to the disparity in rights between men six months.
and women in almost all phases of social and political Tecson was initially assigned to market Glaxo’s products
life. Article II Section 14 of the 1987 Constitution states in the Camarines Sur-Camarines Norte sales area.
that “The State recognizes the role of women in nation- Subsequently, Tecson entered into a romantic
building, and shall ensure the fundamental equality relationship with Bettsy, an employee of Astra
before the law of women and men.” Corollary to this is Pharmaceuticals3(Astra), a competitor of Glaxo. Bettsy
Article XIII Section 3 which states that “The State shall was Astra’s Branch Coordinator in Albay. She
afford full protection to labor, local and overseas, supervised the district managers and medical
organized and unorganized, and promote full representatives of her company and prepared marketing
employment and equality of employment opportunities strategies for Astra in that area.
for all” and Article XIII Section 14 which states that “The Even before they got married, Tecson received several
State shall protect working women by providing safe and reminders from his District Manager regarding the
healthful working conditions, taking into account their conflict of interest which his relationship with Bettsy
maternal functions, and such facilities and opportunities might engender. Still, love prevailed, and Tecson
that will enhance their welfare and enable them to married Bettsy in September 1998.
realize their full potential in the service of the nation.” Tecson’s superior reminded him that he and Bettsy
Since the Labor Code was enacted on May 1, 1974, should decide which one of them would resign from their
corrective labor and social laws on gender inequality jobs. Tecson requested for time to comply with the
have emerged with more frequency in the years. Two of company policy against entering into a relationship with
these are Republic Act No. 6727 which explicitly an employee of a competitor company. He explained
prohibits discrimination against women with respect to that Astra, Bettsy’s employer, was planning to merge
terms and conditions of employment, promotion, and with Zeneca, another drug company; and Bettsy was
training opportunities; and Republic Act No. 7192 or the planning to avail of the redundancy package to be
Women in Development and Nation Building Act which, offered by Astra.
among others, affords women equal opportunities with Tecson again requested for more time resolve the
men to act and to enter into contracts. In the Labor problem. Thereafter, Tecson applied for a transfer in
Code, Article 136 explicitly prohibits discrimination Glaxo’s milk division, thinking that since Astra did not
merely by reason of the marriage of a female have a milk division, the potential conflict of interest
employee. The private respondent’s act of concealing would be eliminated. His application was denied in view
the true nature of her status from PT&T could not be of Glaxo’s “least-movement-possible” policy.
properly characterized as willful or in bad faith as she Glaxo transferred Tecson to the Butuan City-Surigao
was moved to act the way she did mainly because she City-Agusan del Sur sales area. Tecson asked Glaxo to
wanted to retain a permanent job in a stable company. In reconsider its decision, but his request was denied.
other words, she was practically forced by that very Tecson defied the transfer order and continued acting as
same illegal company policy into misrepresenting her medical representative in the Camarines Sur-Camarines
civil status for fear of being disqualified from work. Norte sales area.
DEVELOPMENT OF THE CASE: Because the parties the employee and the company that may arise out of
failed to resolve the issue at the grievance machinery such relationships.
level, they submitted the matter for voluntary arbitration, Moreover, records show that Glaxo gave Tecson several
but Tecson declined the offer. On November 15, 2000, chances to eliminate the conflict of interest brought
the National Conciliation and Mediation Board (NCMB) about by his relationship with Bettsy.
rendered its Decision declaring as valid Glaxo’s policy PETITION DENIED.
on relationships between its employees and persons
employed with competitor companies, and affirming
Glaxo’s right to transfer Tecson to another sales ______________
territory. Other Issue on Constructive dismissal:
CA sustained; MR denied. The Court finds no merit in petitioners’ contention that
Petitioner’s Contention: that Glaxo’s policy against Tescon was constructively dismissed when he was
employees marrying employees of competitor transferred from the Camarines Norte-Camarines Sur
companies violates the equal protection clause of the sales area to the Butuan City-Surigao City-Agusan del
Constitution because it creates invalid distinctions Sur sales area, and when he was excluded from
among employees on account only of marriage. They attending the company’s seminar on new products which
claim that the policy restricts the employees’ right to were directly competing with similar products
marry; that Tecson was constructively dismissed manufactured by Astra. Constructive dismissal is defined
GLAXO argues: that the company policy prohibiting its as a quitting, an involuntary resignation resorted to when
employees from having a relationship with and/or continued employment becomes impossible,
marrying an employee of a competitor company is a unreasonable, or unlikely; when there is a demotion in
valid exercise of its management prerogatives and does rank or diminution in pay; or when a clear discrimination,
not violate the equal protection clause; insensibility or disdain by an employer becomes
The policy is also aimed at preventing a competitor unbearable to the employee.30 None of these conditions
company from gaining access to its secrets, procedures are present in the instant case.
and policies; that Tecson can no longer question the
assailed company policy because when he signed his 4) Discharge on Account of Pregnancy Article 137
contract of employment, he was aware that such policy
was stipulated therein. ART. 137. Prohibited acts. –
ISSUE: WON Glaxo’s policy against its employees (a) It shall be unlawful for any employer:
marrying employees from competitor companies is valid (1) To deny any woman employee the benefits
HELD: The Court finds no merit in the petition. provided for in this Chapter or to discharge any
Glaxo has a right to guard its trade secrets, woman employed by him for the purpose of
manufacturing formulas, marketing strategies and other preventing her from enjoying any of the benefits
confidential programs and information from competitors, provided under this Code.
especially so that it and Astra are rival companies in the (2) To discharge such woman on account of her
highly competitive pharmaceutical industry. pregnancy, or while on leave or in confinement due
The prohibition against personal or marital relationships to her pregnancy;
with employees of competitor companies upon Glaxo’s (3) To discharge or refuse the admission of such
employees is reasonable under the circumstances woman upon returning to her work for fear that she
because relationships of that nature might compromise may again be pregnant.
the interests of the company. In laying down the assailed
company policy, Glaxo only aims to protect its interests D. Facilities and Safe Working Conditions Art. 132;
against the possibility that a competitor company will RA 9710, Sec. 22(b); Impl. Rules of RA 9710, Sec. 23
gain access to its secrets and procedures. A2&3
That Glaxo possesses the right to protect its economic
interests cannot be denied. No less than the Constitution Article 132. Facilities for women. The Secretary of Labor
recognizes the right of enterprises to adopt and enforce and Employment shall establish standards that will
such a policy to protect its right to reasonable returns on ensure the safety and health of women employees.
investments and to expansion and growth. In appropriate cases, he shall, by regulations, require
Indeed, while our laws endeavor to give life to the any employer to:
constitutional policy on social justice and the protection
of labor, it does not mean that every labor dispute will be Provide seats proper for women and permit them to use
decided in favor of the workers. The law also recognizes such seats when they are free from work and during
that management has rights which are also entitled to working hours, provided they can perform their duties in
respect and enforcement in the interest of fair play.21 this position without detriment to efficiency;
EQUAL-PROTECTION: Glaxo does not impose an
absolute prohibition against relationships between its To establish separate toilet rooms and lavatories for men
employees and those of competitor companies. Its and women and provide at least a dressing room for
employees are free to cultivate relationships with and women;
marry persons of their own choosing. What the company
merely seeks to avoid is a conflict of interest between
To establish a nursery in a workplace for the benefit of initiated and operated by women and barangay level
the women employees therein; and sustainable resource management.
LGUs shall formulate and implement a community-based
To determine appropriate minimum age and other food security plan that shall respect religious and cultural
standards for retirement or termination in special practices. The plan shall be integrated into the
occupations such as those of flight attendants and the development plans of the LGUs to ensure that it is
like. funded and implemented. Women’s groups shall actively
participate in planning and designing, implementing,
RA 9710, Sec. 22(b); monitoring and evaluating the plan.
Section 22. Right to Decent Work. - The State shall A. Right to Food
progressively realize and ensure decent work standards 2. The DTI and Food and Drug Administration (FDA), in
for women that involve the creation of jobs of acceptable coordination with other concerned agencies, shall
quality in conditions of freedom, equity, security, and provide timely and accurate information on food safety
human dignity. such as, but not limited to, labeling and traceability
(b) The State shall further ensure: 3. The DOST, Department of Energy (DOE), DA and
(1) Support services and gears to protect them from other concerned agencies shall encourage the use of
occupational and health hazards taking into account alternative or renewable energy in food production.
women's maternal functions;
(2) Support services that will enable women to balance
their family obligations and work responsibilities E. Family Planning Services Art. 134; Rule XII, Sec.
including, but not limited to, the establishment of day 11; RA 9710, Secs. 17, 22(b); Impl. Rule of RA 9710,
care centers and breast-feeding stations at the Secs. 18 A9(b), 20 A3, 25 A3
workplace, and providing maternity leave pursuant to the
Labor Code and other pertinent laws; Article 134. Family planning services; incentives for
(3) Membership in unions regardless of status of family planning. Establishments which are required by
employment and place of employment; and law to maintain a clinic or infirmary shall provide free
(4) Respect for the observance of indigenous peoples' family planning services to their employees which shall
cultural practices even in the workplace. include, but not be limited to, the application or use of
contraceptive pills and intrauterine devices.
Impl. Rules of RA 9710, Sec. 23 A2&3
SECTION 23. Food Security and Productive Resources In coordination with other agencies of the government
– The State recognizes the contribution of women to engaged in the promotion of family planning, the
food production and shall ensure its sustainability and Department of Labor and Employment shall develop and
sufficiency, including in the context of climate change, prescribe incentive bonus schemes to encourage family
with the active participation of women. planning among female workers in any establishment or
Towards this end, the State shall guarantee, at all times, enterprise.
the availability in the market of safe and health-giving
food to satisfy the dietary needs of the population, giving F. Special Women Workers, Art. 138
particular attention to the specific needs of poor girl- Article 138. Classification of certain women workers. Any
children and marginalized women, especially pregnant woman who is permitted or suffered to work, with or
and lactating mothers and their young children. without compensation, in any night club, cocktail lounge,
The Department of Agriculture (DA), in coordination with massage clinic, bar or similar establishments under the
other concerned departments, LGUs, and stakeholders effective control or supervision of the employer for a
shall: substantial period of time as determined by the
(a) undertake programs and projects on food security Secretary of Labor and Employment, shall be considered
that are gender- responsive; as an employee of such establishment for purposes of
(b) recognize women as farmers and fisherfolk and give labor and social legislation.
them equal opportunities to participate in programs and
projects; G. Leaves and Other Benefits
(c) ensure the active and direct participation of rural 1. Maternity Leave, Social Security Law of 1997 (RA
women’s groups, other than Rural Improvement Clubs, 1161, as amended by RA 8282), Sec. 14-A, RA
in policy and program formulation, planning and 828
designing, implementation, monitoring and evaluation of
DA programs at the local levels including, but not limited Article 133. Maternity leave benefits.
to, the rice master plan; Every employer shall grant to any pregnant woman
(d) ensure that girl-children and women benefit from all employee who has rendered an aggregate service of at
DA programs; least six (6) months for the last twelve (12) months,
(e) ensure food safety by strengthening food maternity leave of at least two (2) weeks prior to the
management, control and regulatory systems, including expected date of delivery and another four (4) weeks
provision of necessary facilities; and after normal delivery or abortion with full pay based on
(f) promote community-based seed banking her regular or average weekly wages. The employer
may require from any woman employee applying for
maternity leave the production of a medical certificate 2. Victim Leave RA 9262
stating that delivery will probably take place within two Republic Act No. 9262 March 08, 2004
weeks.
AN ACT DEFINING VIOLENCE AGAINST WOMEN
The maternity leave shall be extended without pay on AND THEIR CHILDREN, PROVIDING FOR
account of illness medically certified to arise out of the PROTECTIVE MEASURES FOR VICTIMS,
pregnancy, delivery, abortion or miscarriage, which PRESCRIBING PENALTIES THEREFORE, AND FOR
renders the woman unfit for work, unless she has earned OTHER PURPOSES
unused leave credits from which such extended leave Be it enacted by the Senate and House of
may be charged. Representatives of the Philippines in Congress
assembled:
The maternity leave provided in this Article shall be paid
by the employer only for the first four (4) deliveries by a SECTION 1. Short Title.- This Act shall be known as the
woman employee after the effectivity of this Code. "Anti-Violence Against Women and Their Children Act of
2004".

"SEC. 14-A. Maternity Leave Benefit. - A female SECTION 2. Declaration of Policy.- It is hereby declared
member who has paid at least three (3) monthly that the State values the dignity of women and children
contributions in the twelve-month period and guarantees full respect for human rights. The State
immediately preceding the semester of her childbirth also recognizes the need to protect the family and its
or miscarriage shall be paid a daily maternity benefit members particularly women and children, from violence
equivalent to one hundred percent (100%) of her and threats to their personal safety and security.
average daily salary credit for sixty (60) days or Towards this end, the State shall exert efforts to address
seventy-eight (78) days in case of caesarian delivery, violence committed against women and children in
subject to the following conditions: keeping with the fundamental freedoms guaranteed
"(a) That the employee shall have notified her under the Constitution and the Provisions of the
employer of her pregnancy and the probable date of Universal Declaration of Human Rights, the convention
her childbirth, which notice shall be transmitted to on the Elimination of all forms of discrimination Against
the SSS in accordance with the rules and regulations Women, Convention on the Rights of the Child and other
it may provide; international human rights instruments of which the
"(b) The full payment shall be advanced by the Philippines is a party.
employer within thirty (30) days from the filing of the
maternity leave application; SECTION 3. Definition of Terms.- As used in this Act,
"(c) That payment of daily maternity benefits shall be (a) "Violence against women and their children" refers to
a bar to the recovery of sickness benefits provided any act or a series of acts committed by any person
by this Act for the same period for which daily against a woman who is his wife, former wife, or against
maternity benefits have been received; a woman with whom the person has or had a sexual or
"(d) That the maternity benefits provided under this dating relationship, or with whom he has a common
section shall be paid only for the first four (4) child, or against her child whether legitimate or
deliveries or miscarriages; illegitimate, within or without the family abode, which
"(e) That the SSS shall immediately reimburse the result in or is likely to result in physical, sexual,
employer of one hundred percent (100%) of the psychological harm or suffering, or economic abuse
amount of maternity benefits advanced to the including threats of such acts, battery, assault, coercion,
employee by the employer upon receipt of harassment or arbitrary deprivation of liberty. It includes,
satisfactory proof of such payment and legality but is not limited to, the following acts:
thereof; and A. "Physical Violence" refers to acts that include bodily
"(f) That if an employee member should give birth or or physical harm;
suffer miscarriage without the required contributions B. "Sexual violence" refers to an act which is sexual in
having been remitted for her by her employer to the nature, committed against a woman or her child. It
SSS, or without the latter having been previously includes, but is not limited to:
notified by the employer of the time of the a) rape, sexual harassment, acts of lasciviousness,
pregnancy, the employer shall pay to the SSS treating a woman or her child as a sex object, making
damages equivalent to the benefits which said demeaning and sexually suggestive remarks, physically
employee member would otherwise have been attacking the sexual parts of the victim's body, forcing
entitled to. her/him to watch obscene publications and indecent
shows or forcing the woman or her child to do indecent
acts and/or make films thereof, forcing the wife and
mistress/lover to live in the conjugal home or sleep
together in the same room with the abuser;
b) acts causing or attempting to cause the victim to
engage in any sexual activity by force, threat of force,
physical or other harm or threat of physical or other harm SECTION 4. Construction.- This Act shall be liberally
or coercion; construed to promote the protection and safety of victims
c) Prostituting the woman or child. of violence against women and their children.
C. "Psychological violence" refers to acts or omissions
causing or likely to cause mental or emotional suffering SECTION 5. Acts of Violence Against Women and Their
of the victim such as but not limited to intimidation, Children.- The crime of violence against women and
harassment, stalking, damage to property, public ridicule their children is committed through any of the following
or humiliation, repeated verbal abuse and mental acts:
infidelity. It includes causing or allowing the victim to (a) Causing physical harm to the woman or her child;
witness the physical, sexual or psychological abuse of a (b) Threatening to cause the woman or her child physical
member of the family to which the victim belongs, or to harm;
witness pornography in any form or to witness abusive (c) Attempting to cause the woman or her child physical
injury to pets or to unlawful or unwanted deprivation of harm;
the right to custody and/or visitation of common children. (d) Placing the woman or her child in fear of imminent
D. "Economic abuse" refers to acts that make or attempt physical harm;
to make a woman financially dependent which includes, (e) Attempting to compel or compelling the woman or her
but is not limited to the following: child to engage in conduct which the woman or her child
1. withdrawal of financial support or preventing the victim has the right to desist from or desist from conduct which
from engaging in any legitimate profession, occupation, the woman or her child has the right to engage in, or
business or activity, except in cases wherein the other attempting to restrict or restricting the woman's or her
spouse/partner objects on valid, serious and moral child's freedom of movement or conduct by force or
grounds as defined in Article 73 of the Family Code; threat of force, physical or other harm or threat of
2. deprivation or threat of deprivation of financial physical or other harm, or intimidation directed against
resources and the right to the use and enjoyment of the the woman or child. This shall include, but not limited to,
conjugal, community or property owned in common; the following acts committed with the purpose or effect of
3. destroying household property; controlling or restricting the woman's or her child's
4. controlling the victims' own money or properties or movement or conduct:
solely controlling the conjugal money or properties. (1) Threatening to deprive or actually depriving the
(b) "Battery" refers to an act of inflicting physical harm woman or her child of custody to her/his family;
upon the woman or her child resulting to the physical (2) Depriving or threatening to deprive the woman or her
and psychological or emotional distress. children of financial support legally due her or her family,
(c) "Battered Woman Syndrome" refers to a scientifically or deliberately providing the woman's children
defined pattern of psychological and behavioral insufficient financial support;
symptoms found in women living in battering (3) Depriving or threatening to deprive the woman or her
relationships as a result of cumulative abuse. child of a legal right;
(d) "Stalking" refers to an intentional act committed by a (4) Preventing the woman in engaging in any legitimate
person who, knowingly and without lawful justification profession, occupation, business or activity or controlling
follows the woman or her child or places the woman or the victim's own mon4ey or properties, or solely
her child under surveillance directly or indirectly or a controlling the conjugal or common money, or
combination thereof. properties;
(e) "Dating relationship" refers to a situation wherein the (f) Inflicting or threatening to inflict physical harm on
parties live as husband and wife without the benefit of oneself for the purpose of controlling her actions or
marriage or are romantically involved over time and on a decisions;
continuing basis during the course of the relationship. A (g) Causing or attempting to cause the woman or her
casual acquaintance or ordinary socialization between child to engage in any sexual activity which does not
two individuals in a business or social context is not a constitute rape, by force or threat of force, physical
dating relationship. harm, or through intimidation directed against the
(f) "Sexual relations" refers to a single sexual act which woman or her child or her/his immediate family;
may or may not result in the bearing of a common child. (h) Engaging in purposeful, knowing, or reckless
(g) "Safe place or shelter" refers to any home or conduct, personally or through another, that alarms or
institution maintained or managed by the Department of causes substantial emotional or psychological distress to
Social Welfare and Development (DSWD) or by any the woman or her child. This shall include, but not be
other agency or voluntary organization accredited by the limited to, the following acts:
DSWD for the purposes of this Act or any other suitable (1) Stalking or following the woman or her child in public
place the resident of which is willing temporarily to or private places;
receive the victim. (2) Peering in the window or lingering outside the
(h) "Children" refers to those below eighteen (18) years residence of the woman or her child;
of age or older but are incapable of taking care of (3) Entering or remaining in the dwelling or on the
themselves as defined under Republic Act No. 7610. As property of the woman or her child against her/his will;
used in this Act, it includes the biological children of the (4) Destroying the property and personal belongings or
victim and other children under her care. inflicting harm to animals or pets of the woman or her
child; and
(5) Engaging in any form of harassment or violence; further harm, minimizing any disruption in the victim's
(i) Causing mental or emotional anguish, public ridicule daily life, and facilitating the opportunity and ability of the
or humiliation to the woman or her child, including, but victim to independently regain control over her life. The
not limited to, repeated verbal and emotional abuse, and provisions of the protection order shall be enforced by
denial of financial support or custody of minor children of law enforcement agencies. The protection orders that
access to the woman's child/children. may be issued under this Act are the barangay
protection order (BPO), temporary protection order
SECTION 6. Penalties.- The crime of violence against (TPO) and permanent protection order (PPO). The
women and their children, under Section 5 hereof shall protection orders that may be issued under this Act shall
be punished according to the following rules: include any, some or all of the following reliefs:
(a) Acts falling under Section 5(a) constituting attempted, (a) Prohibition of the respondent from threatening to
frustrated or consummated parricide or murder or commit or committing, personally or through another,
homicide shall be punished in accordance with the any of the acts mentioned in Section 5 of this Act;
provisions of the Revised Penal Code. (b) Prohibition of the respondent from harassing,
If these acts resulted in mutilation, it shall be punishable annoying, telephoning, contacting or otherwise
in accordance with the Revised Penal Code; those communicating with the petitioner, directly or indirectly;
constituting serious physical injuries shall have the (c) Removal and exclusion of the respondent from the
penalty of prison mayor; those constituting less serious residence of the petitioner, regardless of ownership of
physical injuries shall be punished by prision the residence, either temporarily for the purpose of
correccional; and those constituting slight physical protecting the petitioner, or permanently where no
injuries shall be punished by arresto mayor. property rights are violated, and if respondent must
Acts falling under Section 5(b) shall be punished by remove personal effects from the residence, the court
imprisonment of two degrees lower than the prescribed shall direct a law enforcement agent to accompany the
penalty for the consummated crime as specified in the respondent has gathered his things and escort
preceding paragraph but shall in no case be lower than respondent from the residence;
arresto mayor. (d) Directing the respondent to stay away from petitioner
(b) Acts falling under Section 5(c) and 5(d) shall be and designated family or household member at a
punished by arresto mayor; distance specified by the court, and to stay away from
(c) Acts falling under Section 5(e) shall be punished by the residence, school, place of employment, or any
prision correccional; specified place frequented by the petitioner and any
(d) Acts falling under Section 5(f) shall be punished by designated family or household member;
arresto mayor; (e) Directing lawful possession and use by petitioner of
(e) Acts falling under Section 5(g) shall be punished by an automobile and other essential personal effects,
prision mayor; regardless of ownership, and directing the appropriate
(f) Acts falling under Section 5(h) and Section 5(i) shall law enforcement officer to accompany the petitioner to
be punished by prision mayor. the residence of the parties to ensure that the petitioner
If the acts are committed while the woman or child is is safely restored to the possession of the automobile
pregnant or committed in the presence of her child, the and other essential personal effects, or to supervise the
penalty to be applied shall be the maximum period of petitioner's or respondent's removal of personal
penalty prescribed in the section. belongings;
In addition to imprisonment, the perpetrator shall (a) pay (f) Granting a temporary or permanent custody of a
a fine in the amount of not less than One hundred child/children to the petitioner;
thousand pesos (P100,000.00) but not more than three (g) Directing the respondent to provide support to the
hundred thousand pesos (300,000.00); (b) undergo woman and/or her child if entitled to legal support.
mandatory psychological counseling or psychiatric Notwithstanding other laws to the contrary, the court
treatment and shall report compliance to the court. shall order an appropriate percentage of the income or
salary of the respondent to be withheld regularly by the
SECTION 7. Venue.- The Regional Trial Court respondent's employer for the same to be automatically
designated as a Family Court shall have original and remitted directly to the woman. Failure to remit and/or
exclusive jurisdiction over cases of violence against withhold or any delay in the remittance of support to the
women and their children under this law. In the absence woman and/or her child without justifiable cause shall
of such court in the place where the offense was render the respondent or his employer liable for indirect
committed, the case shall be filed in the Regional Trial contempt of court;
Court where the crime or any of its elements was (h) Prohibition of the respondent from any use or
committed at the option of the compliant. possession of any firearm or deadly weapon and order
him to surrender the same to the court for appropriate
SECTION 8. Protection Orders.- A protection order is an disposition by the court, including revocation of license
order issued under this act for the purpose of preventing and disqualification to apply for any license to use or
further acts of violence against a woman or her child possess a firearm. If the offender is a law enforcement
specified in Section 5 of this Act and granting other agent, the court shall order the offender to surrender his
necessary relief. The relief granted under a protection firearm and shall direct the appropriate authority to
order serve the purpose of safeguarding the victim from
investigate on the offender and take appropriate action protections order, and shall contain, among other, the
on matter; following information:
(i) Restitution for actual damages caused by the violence (a) names and addresses of petitioner and respondent;
inflicted, including, but not limited to, property damage, (b) description of relationships between petitioner and
medical expenses, childcare expenses and loss of respondent;
income; (c) a statement of the circumstances of the abuse;
(j) Directing the DSWD or any appropriate agency to (d) description of the reliefs requested by petitioner as
provide petitioner may need; and specified in Section 8 herein;
(k) Provision of such other forms of relief as the court (e) request for counsel and reasons for such;
deems necessary to protect and provide for the safety of (f) request for waiver of application fees until hearing;
the petitioner and any designated family or household and
member, provided petitioner and any designated family (g) an attestation that there is no pending application for
or household member consents to such relief. a protection order in another court.
Any of the reliefs provided under this section shall be If the applicants is not the victim, the application must be
granted even in the absence of a decree of legal accompanied by an affidavit of the applicant attesting to
separation or annulment or declaration of absolute nullity (a) the circumstances of the abuse suffered by the victim
of marriage. and (b) the circumstances of consent given by the victim
The issuance of a BPO or the pendency of an for the filling of the application. When disclosure of the
application for BPO shall not preclude a petitioner from address of the victim will pose danger to her life, it shall
applying for, or the court from granting a TPO or PPO. be so stated in the application. In such a case, the
applicant shall attest that the victim is residing in the
SECTION 9. Who may file Petition for Protection Orders. municipality or city over which court has territorial
– A petition for protection order may be filed by any of jurisdiction, and shall provide a mailing address for
the following: purpose of service processing.
(a) the offended party; An application for protection order filed with a court shall
(b) parents or guardians of the offended party; be considered an application for both a TPO and PPO.
(c) ascendants, descendants or collateral relatives within Barangay officials and court personnel shall assist
the fourth civil degree of consanguinity or affinity; applicants in the preparation of the application. Law
(d) officers or social workers of the DSWD or social enforcement agents shall also extend assistance in the
workers of local government units (LGUs); application for protection orders in cases brought to their
(e) police officers, preferably those in charge of women attention.
and children's desks;
(f) Punong Barangay or Barangay Kagawad; SECTION 12. Enforceability of Protection Orders. – All
(g) lawyer, counselor, therapist or healthcare provider of TPOs and PPOs issued under this Act shall be
the petitioner; enforceable anywhere in the Philippines and a violation
(h) At least two (2) concerned responsible citizens of the thereof shall be punishable with a fine ranging from Five
city or municipality where the violence against women Thousand Pesos (P5,000.00) to Fifty Thousand Pesos
and their children occurred and who has personal (P50,000.00) and/or imprisonment of six (6) months.
knowledge of the offense committed.
SECTION 13. Legal Representation of Petitioners for
SECTION 10. Where to Apply for a Protection Order. – Protection Order. – If the woman or her child requests in
Applications for BPOs shall follow the rules on venue the applications for a protection order for the
under Section 409 of the Local Government Code of appointment of counsel because of lack of economic
1991 and its implementing rules and regulations. An means to hire a counsel de parte, the court shall
application for a TPO or PPO may be filed in the regional immediately direct the Public Attorney's Office (PAO) to
trial court, metropolitan trial court, municipal trial court, represent the petitioner in the hearing on the application.
municipal circuit trial court with territorial jurisdiction over If the PAO determines that the applicant can afford to
the place of residence of the petitioner: Provided, hire the services of a counsel de parte, it shall facilitate
however, That if a family court exists in the place of the legal representation of the petitioner by a counsel de
residence of the petitioner, the application shall be filed parte. The lack of access to family or conjugal resources
with that court. by the applicant, such as when the same are controlled
by the perpetrator, shall qualify the petitioner to legal
SECTION 11. How to Apply for a Protection Order. – representation by the PAO.
The application for a protection order must be in writing, However, a private counsel offering free legal service is
signed and verified under oath by the applicant. It may not barred from representing the petitioner.
be filed as an independent action or as incidental relief in
any civil or criminal case the subject matter or issues SECTION 14. Barangay Protection Orders (BPOs); Who
thereof partakes of a violence as described in this Act. A May Issue and How. - Barangay Protection Orders
standard protection order application form, written in (BPOs) refer to the protection order issued by the
English with translation to the major local languages, Punong Barangay ordering the perpetrator to desist from
shall be made available to facilitate applications for committing acts under Section 5 (a) and (b) of this Act. A
Punong Barangay who receives applications for a BPO
shall issue the protection order to the applicant on the The court may grant any, some or all of the reliefs
date of filing after ex parte determination of the basis of specified in Section 8 hereof in a PPO. A PPO shall be
the application. If the Punong Barangay is unavailable to effective until revoked by a court upon application of the
act on the application for a BPO, the application shall be person in whose favor the order was issued. The court
acted upon by any available Barangay Kagawad. If the shall ensure immediate personal service of the PPO on
BPO is issued by a Barangay Kagawad the order must respondent.
be accompanied by an attestation by the Barangay The court shall not deny the issuance of protection order
Kagawad that the Punong Barangay was unavailable at on the basis of the lapse of time between the act of
the time for the issuance of the BPO. BPOs shall be violence and the filing of the application.
effective for fifteen (15) days. Immediately after the Regardless of the conviction or acquittal of the
issuance of an ex parte BPO, the Punong Barangay or respondent, the Court must determine whether or not the
Barangay Kagawad shall personally serve a copy of the PPO shall become final. Even in a dismissal, a PPO
same on the respondent, or direct any barangay official shall be granted as long as there is no clear showing
to effect is personal service. that the act from which the order might arise did not
The parties may be accompanied by a non-lawyer exist.
advocate in any proceeding before the Punong
Barangay. SECTION 17. Notice of Sanction in Protection Orders. –
The following statement must be printed in bold-faced
SECTION 15. Temporary Protection Orders. – type or in capital letters on the protection order issued by
Temporary Protection Orders (TPOs) refers to the the Punong Barangay or court:
protection order issued by the court on the date of filing "VIOLATION OF THIS ORDER IS PUNISHABLE BY
of the application after ex parte determination that such LAW."
order should be issued. A court may grant in a TPO any,
some or all of the reliefs mentioned in this Act and shall SECTION 18. Mandatory Period For Acting on
be effective for thirty (30) days. The court shall schedule Applications For Protection Orders – Failure to act on an
a hearing on the issuance of a PPO prior to or on the application for a protection order within the reglementary
date of the expiration of the TPO. The court shall order period specified in the previous section without justifiable
the immediate personal service of the TPO on the cause shall render the official or judge administratively
respondent by the court sheriff who may obtain the liable.
assistance of law enforcement agents for the service.
The TPO shall include notice of the date of the hearing SECTION 19. Legal Separation Cases. – In cases of
on the merits of the issuance of a PPO. legal separation, where violence as specified in this Act
is alleged, Article 58 of the Family Code shall not apply.
SECTION 16. Permanent Protection Orders. – The court shall proceed on the main case and other
Permanent Protection Order (PPO) refers to protection incidents of the case as soon as possible. The hearing
order issued by the court after notice and hearing on any application for a protection order filed by the
Respondents non-appearance despite proper notice, or petitioner must be conducted within the mandatory
his lack of a lawyer, or the non-availability of his lawyer period specified in this Act.
shall not be a ground for rescheduling or postponing the
hearing on the merits of the issuance of a PPO. If the SECTION 20. Priority of Application for a Protection
respondents appears without counsel on the date of the Order. – Ex parte and adversarial hearings to determine
hearing on the PPO, the court shall appoint a lawyer for the basis of applications for a protection order under this
the respondent and immediately proceed with the Act shall have priority over all other proceedings.
hearing. In case the respondent fails to appear despite Barangay officials and the courts shall schedule and
proper notice, the court shall allow ex parte presentation conduct hearings on applications for a protection order
of the evidence by the applicant and render judgment on under this Act above all other business and, if
the basis of the evidence presented. The court shall necessary, suspend other proceedings in order to hear
allow the introduction of any history of abusive conduct applications for a protection order.
of a respondent even if the same was not directed
against the applicant or the person for whom the SECTION 21. Violation of Protection Orders. – A
applicant is made. complaint for a violation of a BPO issued under this Act
The court shall, to the extent possible, conduct the must be filed directly with any municipal trial court,
hearing on the merits of the issuance of a PPO in one metropolitan trial court, or municipal circuit trial court that
(1) day. Where the court is unable to conduct the has territorial jurisdiction over the barangay that issued
hearing within one (1) day and the TPO issued is due to the BPO. Violation of a BPO shall be punishable by
expire, the court shall continuously extend or renew the imprisonment of thirty (30) days without prejudice to any
TPO for a period of thirty (30) days at each particular other criminal or civil action that the offended party may
time until final judgment is issued. The extended or file for any of the acts committed.
renewed TPO may be modified by the court as may be A judgement of violation of a BPO ma be appealed
necessary or applicable to address the needs of the according to the Rules of Court. During trial and upon
applicant. judgment, the trial court may motu proprio issue a
protection order as it deems necessary without need of support, unless the court finds compelling reasons to
an application. order otherwise.
Violation of any provision of a TPO or PPO issued under A victim who is suffering from battered woman syndrome
this Act shall constitute contempt of court punishable shall not be disqualified from having custody of her
under Rule 71 of the Rules of Court, without prejudice to children. In no case shall custody of minor children be
any other criminal or civil action that the offended party given to the perpetrator of a woman who is suffering
may file for any of the acts committed. from Battered woman syndrome.

SECTION 22. Applicability of Protection Orders to SECTION 29. Duties of Prosecutors/Court Personnel. –
Criminal Cases. – The foregoing provisions on protection Prosecutors and court personnel should observe the
orders shall be applicable in impliedly instituted with the following duties when dealing with victims under this Act:
criminal actions involving violence against women and a) communicate with the victim in a language
their children. understood by the woman or her child; and
b) inform the victim of her/his rights including legal
SECTION 23. Bond to Keep the Peace. – The Court remedies available and procedure, and privileges for
may order any person against whom a protection order indigent litigants.
is issued to give a bond to keep the peace, to present
two sufficient sureties who shall undertake that such SECTION 30. Duties of Barangay Officials and Law
person will not commit the violence sought to be Enforcers. – Barangay officials and law enforcers shall
prevented. have the following duties:
Should the respondent fail to give the bond as required, (a) respond immediately to a call for help or request for
he shall be detained for a period which shall in no case assistance or protection of the victim by entering the
exceed six (6) months, if he shall have been prosecuted necessary whether or not a protection order has been
for acts punishable under Section 5(a) to 5(f) and not issued and ensure the safety of the victim/s;
exceeding thirty (30) days, if for acts punishable under (b) confiscate any deadly weapon in the possession of
Section 5(g) to 5(I). the perpetrator or within plain view;
The protection orders referred to in this section are the (c) transport or escort the victim/s to a safe place of their
TPOs and the PPOs issued only by the courts. choice or to a clinic or hospital;
(d) assist the victim in removing personal belongs from
SECTION 24. Prescriptive Period. – Acts falling under the house;
Sections 5(a) to 5(f) shall prescribe in twenty (20) years. (e) assist the barangay officials and other government
Acts falling under Sections 5(g) to 5(I) shall prescribe in officers and employees who respond to a call for help;
ten (10) years. (f) ensure the enforcement of the Protection Orders
issued by the Punong Barangy or the courts;
SECTION 25. Public Crime. – Violence against women (g) arrest the suspected perpetrator wiithout a warrant
and their children shall be considered a public offense when any of the acts of violence defined by this Act is
which may be prosecuted upon the filing of a complaint occurring, or when he/she has personal knowledge that
by any citizen having personal knowledge of the any act of abuse has just been committed, and there is
circumstances involving the commission of the crime. imminent danger to the life or limb of the victim as
defined in this Act; and
SECTION 26. Battered Woman Syndrome as a Defense. (h) immediately report the call for assessment or
– Victim-survivors who are found by the courts to be assistance of the DSWD, social Welfare Department of
suffering from battered woman syndrome do not incur LGUs or accredited non-government organizations
any criminal and civil liability notwithstanding the (NGOs).
absence of any of the elements for justifying Any barangay official or law enforcer who fails to report
circumstances of self-defense under the Revised Penal the incident shall be liable for a fine not exceeding Ten
Code. Thousand Pesos (P10,000.00) or whenever applicable
In the determination of the state of mind of the woman criminal, civil or administrative liability.
who was suffering from battered woman syndrome at the
time of the commission of the crime, the courts shall be SECTION 31. Healthcare Provider Response to Abuse –
assisted by expert psychiatrists/ psychologists. Any healthcare provider, including, but not limited to, an
attending physician, nurse, clinician, barangay health
SECTION 27. Prohibited Defense. – Being under the worker, therapist or counselor who suspects abuse or
influence of alcohol, any illicit drug, or any other mind- has been informed by the victim of violence shall:
altering substance shall not be a defense under this Act. (a) properly document any of the victim's physical,
emotional or psychological injuries;
SECTION 28. Custody of children. – The woman victim (b) properly record any of victim's suspicions,
of violence shall be entitled to the custody and support of observations and circumstances of the examination or
her child/children. Children below seven (7) years old visit;
older but with mental or physical disabilities shall (c) automatically provide the victim free of charge a
automatically be given to the mother, with right to medical certificate concerning the examination or visit;
(d) safeguard the records and make them available to SECTION 37. Hold Departure Order. – The court shall
the victim upon request at actual cost; and expedite the process of issuance of a hold departure
(e) provide the victim immediate and adequate notice of order in cases prosecuted under this Act.
rights and remedies provided under this Act, and SECTION 38. Exemption from Payment of Docket Fee
services available to them. and Other Expenses. – If the victim is an indigent or
there is an immediate necessity due to imminent danger
SECTION 32. Duties of Other Government Agencies or threat of danger to act on an application for a
and LGUs – Other government agencies and LGUs shall protection order, the court shall accept the application
establish programs such as, but not limited to, education without payment of the filing fee and other fees and of
and information campaign and seminars or symposia on transcript of stenographic notes.
the nature, causes, incidence and consequences of such
violence particularly towards educating the public on its SECTION 39. Inter-Agency Council on Violence Against
social impacts. Women and Their Children (IAC-VAWC). In pursuance
It shall be the duty of the concerned government of the abovementioned policy, there is hereby
agencies and LGU's to ensure the sustained education established an Inter-Agency Council on Violence Against
and training of their officers and personnel on the Women and their children, hereinafter known as the
prevention of violence against women and their children Council, which shall be composed of the following
under the Act. agencies:
(a) Department of Social Welfare and Development
SECTION 33. Prohibited Acts. – A Punong Barangay, (DSWD);
Barangay Kagawad or the court hearing an application (b) National Commission on the Role of Filipino Women
for a protection order shall not order, direct, force or in (NCRFW)
any way unduly influence he applicant for a protection (c) Civil Service Commission (CSC);
order to compromise or abandon any of the reliefs (d) Commission on Human rights (CHR)
sought in the application for protection under this Act. (e) Council for the Welfare of Children (CWC);
Section 7 of the Family Courts Act of 1997 and Sections (f) Department of Justice (DOJ);
410, 411, 412 and 413 of the Local Government Code of (g) Department of the Interior and Local Government
1991 shall not apply in proceedings where relief is (DILG);
sought under this Act. (h) Philippine National Police (PNP);
Failure to comply with this Section shall render the (i) Department of Health (DOH);
official or judge administratively liable. (j) Department of Education (DepEd);
(k) Department of Labor and Employment (DOLE); and
SECTION 34. Persons Intervening Exempt from Liability. (l) National Bureau of Investigation (NBI).
– In every case of violence against women and their These agencies are tasked to formulate programs and
children as herein defined, any person, private individual projects to eliminate VAW based on their mandates as
or police authority or barangay official who, acting in well as develop capability programs for their employees
accordance with law, responds or intervenes without to become more sensitive to the needs of their clients.
using violence or restraint greater than necessary to The Council will also serve as the monitoring body as
ensure the safety of the victim, shall not be liable for any regards to VAW initiatives.
criminal, civil or administrative liability resulting The Council members may designate their duly
therefrom. authorized representative who shall have a rank not
lower than an assistant secretary or its equivalent.
SECTION 35. Rights of Victims. – In addition to their These representatives shall attend Council meetings in
rights under existing laws, victims of violence against their behalf, and shall receive emoluments as may be
women and their children shall have the following rights: determined by the Council in accordance with existing
(a) to be treated with respect and dignity; budget and accounting rules and regulations.
(b) to avail of legal assistance form the PAO of the
Department of Justice (DOJ) or any public legal SECTION 40. Mandatory Programs and Services for
assistance office; Victims. – The DSWD, and LGU's shall provide the
(c) To be entitled to support services form the DSWD victims temporary shelters, provide counseling, psycho-
and LGUs' social services and /or, recovery, rehabilitation programs
(d) To be entitled to all legal remedies and support as and livelihood assistance.
provided for under the Family Code; and The DOH shall provide medical assistance to victims.
(e) To be informed of their rights and the services
available to them including their right to apply for a SECTION 41. Counseling and Treatment of Offenders. –
protection order. The DSWD shall provide rehabilitative counseling and
treatment to perpetrators towards learning constructive
SECTION 36. Damages. – Any victim of violence under ways of coping with anger and emotional outbursts and
this Act shall be entitled to actual, compensatory, moral reforming their ways. When necessary, the offender
and exemplary damages. shall be ordered by the Court to submit to psychiatric
treatment or confinement.
SECTION 42. Training of Persons Involved in SECTION 46. Implementing Rules and Regulations. –
Responding to Violence Against Women and their Within six (6) months from the approval of this Act, the
Children Cases. – All agencies involved in responding to DOJ, the NCRFW, the DSWD, the DILG, the DOH, and
violence against women and their children cases shall the PNP, and three (3) representatives from NGOs to be
be required to undergo education and training to identified by the NCRFW, shall promulgate the
acquaint them with: Implementing Rules and Regulations (IRR) of this Act.
a. the nature, extend and causes of violence against
women and their children; SECTION 47. Suppletory Application – For purposes of
b. the legal rights of, and remedies available to, victims this Act, the Revised Penal Code and other applicable
of violence against women and their children; laws, shall have suppletory application.
c. the services and facilities available to victims or
survivors; SECTION 48. Separability Clause. – If any section or
d. the legal duties imposed on police officers to make provision of this Act is held unconstitutional or invalid,
arrest and to offer protection and assistance; and the other sections or provisions shall not be affected.
e. techniques for handling incidents of violence against
women and their children that minimize the likelihood of SECTION 49. Repealing Clause – All laws, Presidential
injury to the officer and promote the safety of the victim decrees, executive orders and rules and regulations, or
or survivor. parts thereof, inconsistent with the provisions of this Act
The PNP, in coordination with LGU's shall establish an are hereby repealed or modified accordingly.
education and training program for police officers and
barangay officials to enable them to properly handle SECTION 50. Effectivity – This Act shall take effect
cases of violence against women and their children. fifteen (15) days from the date of its complete publication
in at least two (2) newspapers of general circulation.
SECTION 43. Entitled to Leave. – Victims under this Act
shall be entitled to take a paid leave of absence up to 3. Special Leave RA 9710 (for gynecological disorder)
ten (10) days in addition to other paid leaves under the RA 9710
Labor Code and Civil Service Rules and Regulations, Section 18. Special Leave Benefits for Women. - A
extendible when the necessity arises as specified in the woman employee having rendered continuous
protection order. aggregate employment service of at least six (6) months
Any employer who shall prejudice the right of the person for the last twelve (12) months shall be entitled to a
under this section shall be penalized in accordance with special leave benefit of two (2) months with full pay
the provisions of the Labor Code and Civil Service Rules based on her gross monthly compensation following
and Regulations. Likewise, an employer who shall surgery caused by gynecological disorders.
prejudice any person for assisting a co-employee who is
a victim under this Act shall likewise be liable for H. Sexual Harassment (RA 7877)
discrimination. REPUBLIC ACT NO. 7877
AN ACT DECLARING SEXUAL HARASSMENT
SECTION 44. Confidentiality. – All records pertaining to UNLAWFUL IN THE EMPLOYMENT, EDUACATION
cases of violence against women and their children OR TRAINING ENVIRONMENT, AND FOR OTHER
including those in the barangay shall be confidential and PURPOSES
all public officers and employees and public or private Be it enacted by the Senate and House of
clinics to hospitals shall respect the right to privacy of the Representatives of the Philippines in Congress
victim. Whoever publishes or causes to be published, in assembled:
any format, the name, address, telephone number,
school, business address, employer, or other identifying Section 1. Title. – This Act shall be known as the
information of a victim or an immediate family member, "Anti-Sexual Harassment Act of 1995."
without the latter's consent, shall be liable to the Sec. 2. Declaration of Policy. – The State shall value the
contempt power of the court. dignity of every individual, enhance the development of it
Any person who violates this provision shall suffer the human resources, guarantee full respect for human
penalty of one (1) year imprisonment and a fine of not rights, and uphold the dignity of workers, employees,
more than Five Hundred Thousand pesos applicants for employment, students or those undergoing
(P500,000.00). training, instruction or education. Towards this end, all
forms of sexual harassment in the employment,
SECTION 45. Funding – The amount necessary to education or training environment are hereby declared
implement the provisions of this Act shall be included in unlawful.
the annual General Appropriations Act (GAA). Sec. 3. Work, Education or Training-related
The Gender and Development (GAD) Budget of the Sexual Harassment Defined. – Work, education or
mandated agencies and LGU's shall be used to training-related sexual harassment is committed by an
implement services for victim of violence against women employee, manager, supervisor, agent of the employer,
and their children. 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 students or trainees to increase understanding and
requires any sexual favor from the other, regardless of prevent incidents of sexual harassment. It shall also
whether the demand, request or requirement for conduct the investigation of the alleged cases
submission is accepted by the object of said Act. constituting sexual harassment. In the case of a work-
(a) In a work-related or employment environment, sexual related environment, the committee shall be composed
harassment is committed when: of at least one (1) representative each from the
(1) The sexual favor is made as a condition in the hiring management, the union, if any, the employees from the
or in the employment, re-employment or continued supervisory rank, and from the rank and file employees.
employment of said individual, or in granting said In the case of the educational or training institution, the
individual favorable compensation, terms, conditions, committee shall be composed of at least one (1)
promotions, or privileges; or the refusal to grant the representative from the administration, the trainors,
sexual favor results in limiting, segregating or classifying teachers, instructors, professors or coaches and
the employee which in a way would discriminate, deprive students or trainees, as the case maybe.
or diminish employment opportunities or otherwise "The employer or head of office, educational or training
adversely affect said employee; institution shall disseminate or post a copy of this Act for
(2) The above acts would impair the employee’s rights or the information of all concerned.
privileges under existing labor laws; or Sec. 5. Liability of the Employer, Head of Office,
(3) The above acts would result in an intimidating, Educational or Training Institution. – The employer or
hostile, or offensive environment for the employee. head of office, educational training institution shall be
(b) In an education or training environment, sexual solidarily liable for damage arising from the acts of
harassment is committed: sexual harassment committed in the employment,
(1) Against one who is under the care, custody or education or training environment if the employer or
supervision of the offender; head of office, educational or training institution is
(2) Against one whose education, training, informed of such acts by the offended party and no
apprenticeship or tutorship is entrusted to the offender; immediate action is taken thereon.
(3) When the sexual favor is made a condition to the Sec. 6. Independent Action for Damages. –
giving of a passing grade, or the granting of honors and Nothing in this Act shall preclude the victim of work,
scholarships, or the payment of a stipend, allowance or education or training-related sexual harassment from
other benefits, privileges, or considerations; or instituting a separate and independent action for
(4) When the sexual advances result in an intimidating, damages and other affirmative relief.
hostile or offensive environment for the student, trainee Sec. 7. Penalties. – Any person who violates the
or apprentice. Any person who directs or induces provisions of this Act shall, upon conviction, be
another to commit any act of sexual harassment as penalized by imprisonment of not less than one (1)
herein defined, or who cooperates in the commission month nor more than six (6) months, or a fine of not less
thereof by another without which it would not have been than Ten thousand pesos (P10,000) nor more than
committed, shall also be held liable under this Act. Twenty thousand pesos (P20,000), or both such fine and
Sec.4. Duty of the Employer or Head of Office in imprisonment at the discretion of the court. Any action
a Work-related, Education or Training Environment. – arising from the violation of the provision of this Act shall
It shall be the duty of the employer or the head of the prescribe in three (3) years.
work-related, educational or training environment or Sec. 8. Separability Clause – If any portion or provision
institution, to prevent or deter the commission of acts of this Act is declared void and unconstitutional, the
of sexual harassment and to provide the procedures remaining portions or provisions hereof shall not be
for the resolution, settlement or prosecution of acts of affected by such declaration.
sexual harassment. Towards this end, the employer or Sec.9. Repealing Clause. – All laws, decrees, orders,
head of office shall: rules and regulations, other issuances, or parts thereof
(a) Promulgate appropriate rules and regulations in inconsistent with the provisions of this Act are hereby
consultation with the jointly approved by the employees repealed or modified accordingly.
or students or trainees, through their duly designated Sec.10. Effectivity Clause. – This Act shall take effect
representatives, prescribing the procedure for the fifteen (15) days after its complete publication in at least
investigation or sexual harassment cases and the two (2) national newspaper of general circulation.
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
• Philippine Aeolus Automotive United Corporation vs. Thus, she should be entitled to moral and exemplary
NLRC 311 SCRA 237 damages for the oppressive manner with which
petitioner’s effected her dismissal and to serve as a
FACTS: Private respondent was a company nurse for warming to officers who take advantage of their
the Philippine Aelous United Corporation. A ascendancy over their employees.
memorandum was issued by the personnel manager of
petitioner corporation to respondent Cortez asking her to • Domingo vs. Rayala 546 SCRA 90
explain why no action should be taken against her for (1) Facts:
throwing a stapler at plant manager William Chua; (2) fro Ma. Lourdes T. Domingo (Domingo), then Stenographic
losing the amount of Php 1,488 entrusted to her; (3) for Reporter III at the NLRC, filed a Complaint for sexual
asking a co-employee to punch in her time card one harassment against Rayala, the chairman of NLRC.
morning when she was not there. She was then placed She alleged that Rayala called her in his office and
on preventive suspension. Another memorandum was touched her shoulder, part of her neck then tickled her
sent to her asking her to explain why she failed to ears. Rayala argued that his acts does not constitute
process the ATM applications of her co-employees. She sexual harassment because for it to exist, there must be
submitted a written explanation as to the loss of Php a demand, request or requirement of sexual favor.
1,488 and the punching in of her time card. A third
memorandum was sent to her informing her of her Issue:
termination from service for gross and habitual neglect of Whether or not Rayala commit sexual harassment.
duties, serious misconduct, and fraud or willful breach of
trust. Rulings: Yes.
The law penalizing sexual harassment in our jurisdiction
ISSUES: is RA 7877. Section 3 thereof defines work-related
sexual harassment in this wise:
1. W/N petitioner was illegally dismissed. Sec. 3. Work, Education or Training-related Sexual
2. If such dismissal was illegal, W/N petitioner should be Harassment Defined. – Work, education or training-
entitled to damages. related sexual harassment is committed by an employer,
manager, supervisor, agent of the employer, teacher,
instructor, professor, coach, trainor, or any other person
HELD: who, having authority, influence or moral ascendancy
over another in a work or training or education
1. Yes. The grounds by which an employer may validly
environment, demands, requests or otherwise requires
terminate the services of an employee must be strictly
any sexual favor from the other, regardless of whether
construed. As to the first charge, respondent claims that
the demand, request or requirement for submission is
plant manager William Chua had been making sexual
accepted by the object of said Act.
advances on her since her first year of employment and
(a) In a work-related or employment environment, sexual
that when she would not accede to his requests, he
harassment is committed when:
threatened that he would cause her termination from
(1) The sexual favor is made as a condition in the hiring
service. As to the second charge, the money entrusted
or in the employment, re-employment or continued
to her was not lost, but given to the personnel-in-charge
employment of said individual, or in granting said
for proper transmittal as evidence by a receipt signed by
individual favorable compensation, terms, conditions,
the latter. As to the third charge, she explains that she
promotions, or privileges; or the refusal to grant the
asked someone to punch in her card as she was doing
sexual favor results in limiting, segregating or classifying
an errand for one of the company’s officers and with the
the employee which in a way would discriminate, deprive
permission of William Chua. As to the fourth charge, she
or diminish employment opportunities or otherwise
asserts that she had no knowledge thereof. To
adversely affect said employee;
constitute serious misconduct to justify dismissal, the
. (2) The above acts would impair the employee’s rights
acts must be done in relation to the performance of her
or privileges under existing labor laws; or
duties as would show her to be unfit to continue working
. (3) The above acts would result in an intimidating,
for her employer. The acts of did not pertain to her
hostile, or offensive environment for the employee.
duties as a nurse nor did they constitute serious
misconduct. However due to the strained relations, in
Even if we were to test Rayala’s acts strictly by the
lieu of reinstatement, she is to be awarded separation
standards set in Section 3, RA 7877, he would still be
pay of one month for every year of service until finality of
administratively liable. It is true that this provision calls
this judgment.
for a “demand, request or requirement of a sexual favor.”
But it is not necessary that the demand, request or
2. Yes. Private respondent admittedly allowed four years
requirement of a sexual favor be articulated in a
to pass before coming out with her employer’s sexual
categorical oral or written statement. It may be
impositions; but the time to do such varies depending
discerned, with equal certitude, from the acts of the
upon the needs, circumstances and emotional threshold
offender. Holding and squeezing Domingo’s shoulders,
of the employee. It is clear that respondent has suffered
running his fingers across her neck and tickling her ear,
anxiety, sleepless nights, besmirched reputation and
having inappropriate conversations with her, giving her
social humiliation by reason of the act complained of.
money allegedly for school expenses with a promise of Rule XII, Sec. 1 (OMNIBUS RULES IMPLEMENTING
future privileges, and making statements with THE LABOR CODE)
unmistakable sexual overtones – all these acts of Rayala
resound with deafening clarity the unspoken request for RULE XII Illegal Recruitment
a sexual favor. SECTION 1. Basis for recommending arrest and
detention. — The Secretary may recommend to the
4. MINORS appropriate authority the arrest and detention of any
Reference: Art.s 139-140; Omnibus Rules, Book III, person for illegal recruitment if he is satisfied from
Rule XII, Secs. 2-3; Special Protection of Children Act of the preliminary examination conducted by him or by his
2003 (RA 7610, as amended by RA 9231); ILO duly authorized representative that the act
Convention No.182 and ILO Recommendation No. 190 constituting illegal recruitment has been committed and
that the particular person has committed it.
A. Minors under the Constitution, Art. II, Sec. 13 C. Minimum Employable Age, ILO Convention 138
Section 13. The State recognizes the vital role of the (1973); Art. 139, RA 7610 Secs. 12-16
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 ILO Convention 138 (1973)
and civic affairs. Preamble
The General Conference of the International Labour
B. Coverage RA 9231, Sec. 2; Rule XII Sec. 1 Organisation,
RA 9231, Sec. 2 Having been convened at Geneva by the Governing
Section 2. Section 12 of the same Act, as amended, is Body of the International Labour Office, and having met
hereby further amended to read as follows: in its Fifty-eighth Session on 6 June 1973, and
"Sec. 2. Employment of Children - Children below fifteen Having decided upon the adoption of certain proposals
(15) years of age shall not be employed except: with regard to minimum age for admission to
"1) When a child works directly under the sole employment, which is the fourth item on the agenda of
responsibility of his/her parents or legal guardian and the session, and
where only members of his/her family are employed: Noting the terms of the Minimum Age (Industry)
Provided, however, That his/her employment neither Convention, 1919, the Minimum Age (Sea) Convention,
endangers his/her life, safety, health, and morals, nor 1920, the Minimum Age (Agriculture) Convention, 1921,
impairs his/her normal development: Provided, further, the Minimum Age (Trimmers and Stokers) Convention,
That the parent or legal guardian shall provide the said 1921, the Minimum Age (Non-Industrial Employment)
child with the prescribed primary and/or secondary Convention, 1932, the Minimum Age (Sea) Convention
education; or (Revised), 1936, the Minimum Age (Industry)
"2) Where a child's employment or participation in public Convention (Revised), 1937, the Minimum Age (Non-
entertainment or information through cinema, theater, Industrial Employment) Convention (Revised), 1937, the
radio, television or other forms of media is essential: Minimum Age (Fishermen) Convention, 1959, and the
Provided, That the employment contract is concluded by Minimum Age (Underground Work) Convention, 1965,
the child's parents or legal guardian, with the express and
agreement of the child concerned, if possible, and the Considering that the time has come to establish a
approval of the Department of Labor and Employment: general instrument on the subject, which would gradually
Provided, further, That the following requirements in all replace the existing ones applicable to limited economic
instances are strictly complied with: sectors, with a view to achieving the total abolition of
"(a) The employer shall ensure the protection, health, child labour, and
safety, morals and normal development of the child; Having determined that these proposals shall take the
"(b) The employer shall institute measures to prevent the form of an international Convention,
child's exploitation or discrimination taking into account adopts this twenty-sixth day of June of the year one
the system and level of remuneration, and the duration thousand nine hundred and seventy-three the following
and arrangement of working time; and Convention, which may be cited as the Minimum Age
"(c) The employer shall formulate and implement, Convention, 1973:
subject to the approval and supervision of competent
authorities, a continuing program for training and skills Article 1
acquisition of the child. Each Member for which this Convention is in force
"In the above-exceptional cases where any such child undertakes to pursue a national policy designed to
may be employed, the employer shall first secure, before ensure the effective abolition of child labour and to raise
engaging such child, a work permit from the Department progressively the minimum age for admission to
of Labor and Employment which shall ensure employment or work to a level consistent with the fullest
observance of the above requirements. physical and mental development of young persons.
"For purposes of this Article, the term "child" shall apply
to all persons under eighteen (18) years of age."
Article 2 2. Each Member which ratifies this Convention shall list
1. Each Member which ratifies this Convention shall in its first report on the application of the Convention
specify, in a declaration appended to its ratification, a submitted under article 22 of the Constitution of the
minimum age for admission to employment or work International Labour Organisation any categories which
within its territory and on means of transport registered may have been excluded in pursuance of paragraph 1 of
in its territory; subject to Articles 4 to 8 of this this Article, giving the reasons for such exclusion, and
Convention, no one under that age shall be admitted to shall state in subsequent reports the position of its law
employment or work in any occupation. and practice in respect of the categories excluded and
2. Each Member which has ratified this Convention may the extent to which effect has been given or is proposed
subsequently notify the Director-General of the to be given to the Convention in respect of such
International Labour Office, by further declarations, that categories.
it specifies a minimum age higher than that previously 3. Employment or work covered by Article 3 of this
specified. Convention shall not be excluded from the application of
3. The minimum age specified in pursuance of the Convention in pursuance of this Article.
paragraph 1 of this Article shall not be less than the age
of completion of compulsory schooling and, in any case, Article 5
shall not be less than 15 years. 1. A Member whose economy and administrative
4. Notwithstanding the provisions of paragraph 3 of this facilities are insufficiently developed may, after
Article, a Member whose economy and educational consultation with the organisations of employers and
facilities are insufficiently developed may, after workers concerned, where such exist, initially limit the
consultation with the organisations of employers and scope of application of this Convention.
workers concerned, where such exist, initially specify a 2. Each Member which avails itself of the provisions of
minimum age of 14 years. paragraph 1 of this Article shall specify, in a declaration
5. Each Member which has specified a minimum age of appended to its ratification, the branches of economic
14 years in pursuance of the provisions of the preceding activity or types of undertakings to which it will apply the
paragraph shall include in its reports on the application provisions of the Convention.
of this Convention submitted under article 22 of the 3. The provisions of the Convention shall be applicable
Constitution of the International Labour Organisation a as a minimum to the following: mining and quarrying;
statement-- manufacturing; construction; electricity, gas and water;
(a) that its reason for doing so subsists; or sanitary services; transport, storage and communication;
(b) that it renounces its right to avail itself of the and plantations and other agricultural undertakings
provisions in question as from a stated date. mainly producing for commercial purposes, but
excluding family and small-scale holdings producing for
Article 3 local consumption and not regularly employing hired
1. The minimum age for admission to any type of workers.
employment or work which by its nature or the 4. Any Member which has limited the scope of
circumstances in which it is carried out is likely to application of this Convention in pursuance of this
jeopardise the health, safety or morals of young persons Article--
shall not be less than 18 years. (a) shall indicate in its reports under Article 22 of the
2. The types of employment or work to which paragraph Constitution of the International Labour Organisation the
1 of this Article applies shall be determined by national general position as regards the employment or work of
laws or regulations or by the competent authority, after young persons and children in the branches of activity
consultation with the organisations of employers and which are excluded from the scope of application of this
workers concerned, where such exist. Convention and any progress which may have been
3. Notwithstanding the provisions of paragraph 1 of this made towards wider application of the provisions of the
Article, national laws or regulations or the competent Convention;
authority may, after consultation with the organisations (b) may at any time formally extend the scope of
of employers and workers concerned, where such exist, application by a declaration addressed to the Director-
authorise employment or work as from the age of 16 General of the International Labour Office.
years on condition that the health, safety and morals of
the young persons concerned are fully protected and Article 6
that the young persons have received adequate specific This Convention does not apply to work done by children
instruction or vocational training in the relevant branch of and young persons in schools for general, vocational or
activity. technical education or in other training institutions, or to
work done by persons at least 14 years of age in
Article 4 undertakings, where such work is carried out in
1. In so far as necessary, the competent authority, after accordance with conditions prescribed by the competent
consultation with the organisations of employers and authority, after consultation with the organisations of
workers concerned, where such exist, may exclude from employers and workers concerned, where such exist,
the application of this Convention limited categories of and is an integral part of--
employment or work in respect of which special and (a) a course of education or training for which a school
substantial problems of application arise. or training institution is primarily responsible;
(b) a programme of training mainly or entirely in an wherever possible, of persons whom he employs or who
undertaking, which programme has been approved by work for him and who are less than 18 years of age.
the competent authority; or
(c) a programme of guidance or orientation designed to Article 10
facilitate the choice of an occupation or of a line of 1. This Convention revises, on the terms set forth in this
training. Article, the Minimum Age (Industry) Convention, 1919,
the Minimum Age (Sea) Convention, 1920, the Minimum
Article 7 Age (Agriculture) Convention, 1921, the Minimum Age
1. National laws or regulations may permit the (Trimmers and Stokers) Convention, 1921, the Minimum
employment or work of persons 13 to 15 years of age on Age (Non-Industrial Employment) Convention, 1932, the
light work which is-- Minimum Age (Sea) Convention (Revised), 1936, the
(a) not likely to be harmful to their health or Minimum Age (Industry) Convention (Revised), 1937,
development; and the Minimum Age (Non-Industrial Employment)
(b) not such as to prejudice their attendance at school, Convention (Revised), 1937, the Minimum Age
their participation in vocational orientation or training (Fishermen) Convention, 1959, and the Minimum Age
programmes approved by the competent authority or (Underground Work) Convention, 1965.
their capacity to benefit from the instruction received. 2. The coming into force of this Convention shall not
2. National laws or regulations may also permit the close the Minimum Age (Sea) Convention (Revised),
employment or work of persons who are at least 15 1936, the Minimum Age (Industry) Convention
years of age but have not yet completed their (Revised), 1937, the Minimum Age (Non-Industrial
compulsory schooling on work which meets the Employment) Convention (Revised), 1937, the Minimum
requirements set forth in sub-paragraphs (a) and (b) of Age (Fishermen) Convention, 1959, or the Minimum Age
paragraph 1 of this Article. (Underground Work) Convention, 1965, to further
3. The competent authority shall determine the activities ratification.
in which employment or work may be permitted under 3. The Minimum Age (Industry) Convention, 1919, the
paragraphs 1 and 2 of this Article and shall prescribe the Minimum Age (Sea) Convention, 1920, the Minimum
number of hours during which and the conditions in Age (Agriculture) Convention, 1921, and the Minimum
which such employment or work may be undertaken. Age (Trimmers and Stokers) Convention, 1921, shall be
4. Notwithstanding the provisions of paragraphs 1 and 2 closed to further ratification when all the parties thereto
of this Article, a Member which has availed itself of the have consented to such closing by ratification of this
provisions of paragraph 4 of Article 2 may, for as long as Convention or by a declaration communicated to the
it continues to do so, substitute the ages 12 and 14 for Director-General of the International Labour Office.
the ages 13 and 15 in paragraph 1 and the age 14 for 4. When the obligations of this Convention are accepted-
the age 15 in paragraph 2 of this Article. -
(a) by a Member which is a party to the Minimum Age
Article 8 (Industry) Convention (Revised), 1937, and a minimum
1. After consultation with the organisations of employers age of not less than 15 years is specified in pursuance of
and workers concerned, where such exist, the Article 2 of this Convention, this shall ipso jure involve
competent authority may, by permits granted in the immediate denunciation of that Convention,
individual cases, allow exceptions to the prohibition of (b) in respect of non-industrial employment as defined in
employment or work provided for in Article 2 of this the Minimum Age (Non-Industrial Employment)
Convention, for such purposes as participation in artistic Convention, 1932, by a Member which is a party to that
performances. Convention, this shall ipso jure involve the immediate
2. Permits so granted shall limit the number of hours denunciation of that Convention,
during which and prescribe the conditions in which (c) in respect of non-industrial employment as defined in
employment or work is allowed. the Minimum Age (Non-Industrial Employment)
Convention (Revised), 1937, by a Member which is a
Article 9 party to that Convention, and a minimum age of not less
1. All necessary measures, including the provision of than 15 years is specified in pursuance of Article 2 of
appropriate penalties, shall be taken by the competent this Convention, this shall ipso jure involve the
authority to ensure the effective enforcement of the immediate denunciation of that Convention,
provisions of this Convention. (d) in respect of maritime employment, by a Member
2. National laws or regulations or the competent which is a party to the Minimum Age (Sea) Convention
authority shall define the persons responsible for (Revised), 1936, and a minimum age of not less than 15
compliance with the provisions giving effect to the years is specified in pursuance of Article 2 of this
Convention. Convention or the Member specifies that Article 3 of this
3. National laws or regulations or the competent Convention applies to maritime employment, this shall
authority shall prescribe the registers or other ipso jure involve the immediate denunciation of that
documents which shall be kept and made available by Convention,
the employer; such registers or documents shall contain (e) in respect of employment in maritime fishing, by a
the names and ages or dates of birth, duly certified Member which is a party to the Minimum Age
(Fishermen) Convention, 1959, and a minimum age of
not less than 15 years is specified in pursuance of Article Article 14
2 of this Convention or the Member specifies that Article 1. The Director-General of the International Labour
3 of this Convention applies to employment in maritime Office shall notify all Members of the International
fishing, this shall ipso jure involve the immediate Labour Organisation of the registration of all ratifications
denunciation of that Convention, and denunciations communicated to him by the
(f) by a Member which is a party to the Minimum Age Members of the Organisation.
(Underground Work) Convention, 1965, and a minimum 2. When notifying the Members of the Organisation of
age of not less than the age specified in pursuance of the registration of the second ratification communicated
that Convention is specified in pursuance of Article 2 of to him, the Director-General shall draw the attention of
this Convention or the Member specifies that such an the Members of the Organisation to the date upon which
age applies to employment underground in mines in the Convention will come into force.
virtue of Article 3 of this Convention, this shall ipso jure
involve the immediate denunciation of that Convention, Article 15
if and when this Convention shall have come into force. The Director-General of the International Labour Office
shall communicate to the Secretary-General of the
5. Acceptance of the obligations of this Convention-- United Nations for registration in accordance with Article
(a) shall involve the denunciation of the Minimum Age 102 of the Charter of the United Nations full particulars
(Industry) Convention, 1919, in accordance with Article of all ratifications and acts of denunciation registered by
12 thereof, him in accordance with the provisions of the preceding
(b) in respect of agriculture shall involve the Articles.
denunciation of the Minimum Age (Agriculture)
Convention, 1921, in accordance with Article 9 thereof, Article 16
(c) in respect of maritime employment shall involve the At such times as it may consider necessary the
denunciation of the Minimum Age (Sea) Convention, Governing Body of the International Labour Office shall
1920, in accordance with Article 10 thereof, and of the present to the General Conference a report on the
Minimum Age (Trimmers and Stokers) Convention, working of this Convention and shall examine the
1921, in accordance with Article 12 thereof, desirability of placing on the agenda of the Conference
if and when this Convention shall have come into force. the question of its revision in whole or in part.

Article 11 Article 17
The formal ratifications of this Convention shall be 1. Should the Conference adopt a new Convention
communicated to the Director-General of the revising this Convention in whole or in part, then, unless
International Labour Office for registration. the new Convention otherwise provides:
(a) the ratification by a Member of the new revising
Article 12 Convention shall ipso jure involve the immediate
1. This Convention shall be binding only upon those denunciation of this Convention, notwithstanding the
Members of the International Labour Organisation provisions of Article 13 above, if and when the new
whose ratifications have been registered with the revising Convention shall have come into force;
Director-General. (b) as from the date when the new revising Convention
2. It shall come into force twelve months after the date comes into force this Convention shall cease to be open
on which the ratifications of two Members have been to ratification by the Members.
registered with the Director-General. 2. This Convention shall in any case remain in force in
3. Thereafter, this Convention shall come into force for its actual form and content for those Members which
any Member twelve months after the date on which its have ratified it but have not ratified the revising
ratifications has been registered. Convention.

Article 13 Article 18
1. A Member which has ratified this Convention may The English and French versions of the text of this
denounce it after the expiration of ten years from the Convention are equally authoritative.
date on which the Convention first comes into force, by
an act communicated to the Director-General of the Article 139
International Labour Office for registration. Such Article 139. Minimum employable age.
denunciation shall not take effect until one year after the No child below fifteen (15) years of age shall be
date on which it is registered. employed, except when he works directly under the sole
2. Each Member which has ratified this Convention and responsibility of his parents or guardian, and his
which does not, within the year following the expiration employment does not in any way interfere with his
of the period of ten years mentioned in the preceding schooling.
paragraph, exercise the right of denunciation provided
for in this Article, will be bound for another period of ten Any person between fifteen (15) and eighteen (18) years
years and, thereafter, may denounce this Convention at of age may be employed for such number of hours and
the expiration of each period of ten years under the such periods of the day as determined by the Secretary
terms provided for in this Article. of Labor and Employment in appropriate regulations.
alcoholic beverages, intoxicating drinks, tobacco and its
The foregoing provisions shall in no case allow the byproducts and violence.
employment of a person below eighteen (18) years of
age in an undertaking which is hazardous or deleterious Section 15. Duty of Employer. – Every employer shall
in nature as determined by the Secretary of Labor and comply with the duties provided for in Articles 108 and
Employment. 109 of Presidential Decree No. 603.

RA 7610 Secs. 12-16 Section 16. Penalties. – Any person who shall violate
Section 12. Employment of Children. – Children below any provision of this Article shall suffer the penalty of a
fifteen (15) years of age may be employed except: fine of not less than One thousand pesos (P1,000) but
not more than Ten thousand pesos (P10,000) or
(1) When a child works directly under the sole imprisonment of not less than three (3) months but not
responsibility of his parents or legal guardian and where more than three (3) years, or both at the discretion of the
only members of the employer's family are employed: court; Provided, That, in case of repeated violations of
Provided, however, That his employment neither the provisions of this Article, the offender's license to
endangers his life, safety and health and morals, nor operate shall be revoked.
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 Republic Act No. 9231 December 19, 2003
education; or AN ACT PROVIDING FOR THE ELIMINATION OF THE
(2) When a child's employment or participation in WORST FORMS OF CHILD LABOR AND AFFORDING
public & entertainment or information through cinema, STRONGER PROTECTION FOR THE WORKING
theater, radio or television is essential: Provided, The CHILD, AMENDING FOR THIS PURPOSE REPUBLIC
employment contract concluded by the child's parent or ACTNO. 7610, AS AMENDED, OTHERWISE KNOWN
guardian, with the express agreement of the child AS THE "SPECIAL PROTECTION OF CHILDREN
concerned, if possible, and the approval of the AGAINST CHILD ABUSE, EXPLOITATION AND
Department of Labor and Employment: Provided, That DISCRIMINATION ACT"
the following requirements in all instances are strictly
complied with: Be it enacted by the Senate and the House of
(a) The employer shall ensure the protection, Representatives of the Philippines in Congress
health, safety and morals of the child; assembled:
(b) the employer shall institute measures to prevent
the child's exploitation or discrimination taking into Section 1. Section 2 of Republic Act No. 7610, as
account the system and level of remuneration, and the amended, otherwise known as the "Special Protection of
duration and arrangement of working time; and; Children Against Child Abuse, Exploitation and
(c) The employer shall formulate and implement, Discrimination Act", is hereby amended to read as
subject to the approval and supervision of competent follows:
authorities, a continuing program for training and skill
acquisition of the child. "Sec. 2. Declaration of State Policy and Principles. - It is
In the above exceptional cases where any such child hereby declared to be the policy of the State to provide
may be employed, the employer shall first secure, before special protection to children from all forms of abuse,
engaging such child, a work permit from the Department neglect, cruelty, exploitation and discrimination, and
of Labor and Employment which shall ensure other conditions prejudicial to their development
observance of the above requirement. including child labor and its worst forms; provide
The Department of Labor Employment shall promulgate sanctions for their commission and carry out a program
rules and regulations necessary for the effective for prevention and deterrence of and crisis intervention
implementation of this Section. in situations of child abuse, exploitation and
discrimination. The State shall intervene on behalf of the
Section 13. Non-formal Education for Working Children. child when the parent, guardian, teacher or person
– The Department of Education, Culture and Sports shall having care or custody of the child fails or is unable to
promulgate a course design under its non-formal protect the child against abuse, exploitation and
education program aimed at promoting the intellectual, discrimination or when such acts against the child are
moral and vocational efficiency of working children who committed by the said parent, guardian, teacher or
have not undergone or finished elementary or secondary person having care and custody of the same.
education. Such course design shall integrate the
learning process deemed most effective under given "It shall be the policy of the State to protect and
circumstances. rehabilitate children gravely threatened or endangered
by circumstances which affect or will affect their survival
Section 14. Prohibition on the Employment of Children in and normal development and over which they have no
Certain Advertisements. – No person shall employ child control.
models in all commercials or advertisements promoting
"The best interests of children shall be the paramount "Sec. 2-A. Hours of Work of a Working Child. - Under the
consideration in all actions concerning them, whether exceptions provided in Section 12 of this Act, as
undertaken by public or private social welfare amended:
institutions, courts of law, administrative authorities, and
legislative bodies, consistent with the principle of First "(1) A child below fifteen (15) years of age may be
Call for Children as enunciated in the United Nations allowed to work for not more than twenty (20) hours a
Convention on the Rights of the Child. Every effort shall week: Provided, That the work shall not be more than
be exerted to promote the welfare of children and four (4) hours at any given day;
enhance their opportunities for a useful and happy life."
"(2) A child fifteen (15) years of age but below eighteen
Section 2. Section 12 of the same Act, as amended, is (18) shall not be allowed to work for more than eight (8)
hereby further amended to read as follows: hours a day, and in no case beyond forty (40) hours a
week;
"Sec. 2. Employment of Children - Children below fifteen
(15) years of age shall not be employed except: "(3) No child below fifteen (15) years of age shall be
allowed to work between eight o'clock in the evening and
"1) When a child works directly under the sole six o'clock in the morning of the following day and no
responsibility of his/her parents or legal guardian and child fifteen (15) years of age but below eighteen (18)
where only members of his/her family are employed: shall be allowed to work between ten o'clock in the
Provided, however, That his/her employment neither evening and six o'clock in the morning of the following
endangers his/her life, safety, health, and morals, nor day."
impairs his/her normal development: Provided, further,
That the parent or legal guardian shall provide the said "Sec. 12-B. Ownership, Usage and Administration of the
child with the prescribed primary and/or secondary Working Child's Income. - The wages, salaries, earnings
education; or and other income of the working child shall belong to
him/her in ownership and shall be set aside primarily for
"2) Where a child's employment or participation in public his/her support, education or skills acquisition and
entertainment or information through cinema, theater, secondarily to the collective needs of the family:
radio, television or other forms of media is essential: Provided, That not more than twenty percent (20%) of
Provided, That the employment contract is concluded by the child's income may be used for the collective needs
the child's parents or legal guardian, with the express of the family.
agreement of the child concerned, if possible, and the
approval of the Department of Labor and Employment: "The income of the working child and/or the property
Provided, further, That the following requirements in all acquired through the work of the child shall be
instances are strictly complied with: administered by both parents. In the absence or
incapacity of either of the parents, the other parent shall
"(a) The employer shall ensure the protection, health, administer the same. In case both parents are absent or
safety, morals and normal development of the child; incapacitated, the order of preference on parental
authority as provided for under the Family Code shall
"(b) The employer shall institute measures to prevent the apply.
child's exploitation or discrimination taking into account
the system and level of remuneration, and the duration "Sec. 12-C. Trust Fund to Preserve Part of the Working
and arrangement of working time; and Child's Income. - The parent or legal guardian of a
working child below eighteen (18) years of age shall set
"(c) The employer shall formulate and implement, up a trust fund for at least thirty percent (30%) of the
subject to the approval and supervision of competent earnings of the child whose wages and salaries from
authorities, a continuing program for training and skills work and other income amount to at least two hundred
acquisition of the child. thousand pesos (P200,000.00) annually, for which
he/she shall render a semi-annual accounting of the fund
"In the above-exceptional cases where any such child to the Department of Labor and Employment, in
may be employed, the employer shall first secure, before compliance with the provisions of this Act. The child shall
engaging such child, a work permit from the Department have full control over the trust fund upon reaching the
of Labor and Employment which shall ensure age of majority.
observance of the above requirements.
"Sec. 12-D. Prohibition Against Worst Forms of Child
"For purposes of this Article, the term "child" shall apply Labor. - No child shall be engaged in the worst forms of
to all persons under eighteen (18) years of age." child labor. The phrase "worst forms of child labor" shall
refer to any of the following:
Section 3. The same Act, as amended, is hereby further
amended by adding new sections to be denominated as "(1) All forms of slavery, as defined under the "Anti-
Sections 12-A, 12-B, 12-C, and 12-D to read as follows: 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 "b) To ensure and guarantee the access of the working
conflict; or child to education and training, the Department of
Education (DEPED) shall: (1) formulate, promulgate, and
"(2) The use, procuring, offering or exposing of a child implement relevant and effective course designs and
for prostitution, for the production of pornography or for educational programs; (2) conduct the necessary
pornographic performances; or training for the implementation of the appropriate
curriculum for the purpose; (3) ensure the availability of
"(3) The use, procuring or offering of a child for illegal or the needed educational facilities and materials; and (4)
illicit activities, including the production and trafficking of conduct continuing research and development program
dangerous drugs and volatile substances prohibited for the necessary and relevant alternative education of
under existing laws; or the working child.

"(4) Work which, by its nature or the circumstances in "c) The DEPED shall promulgate a course design under
which it is carried out, is hazardous or likely to be its non-formal education program aimed at promoting the
harmful to the health, safety or morals of children, such intellectual, moral and vocational efficiency of working
that it: children who have not undergone or finished elementary
or secondary education. Such course design shall
"a) Debases, degrades or demeans the intrinsic worth integrate the learning process deemed most effective
and dignity of a child as a human being; or under given circumstances."

"b) Exposes the child to physical, emotional or sexual Section 5. Section 14 of the same Act is hereby
abuse, or is found to be highly stressful psychologically amended to read as follows:
or may prejudice morals; or
"Sec. 14. Prohibition on the Employment of Children in
"c) Is performed underground, underwater or at Certain Advertisements. - No child shall be employed as
dangerous heights; or a model in any advertisement directly or indirectly
promoting alcoholic beverages, intoxicating drinks,
"d) Involves the use of dangerous machinery, equipment tobacco and its byproducts, gambling or any form of
and tools such as power-driven or explosive power- violence or pornography."
actuated tools; or
Section 6. Section 16 of the same Act, is hereby
"e) Exposes the child to physical danger such as, but not amended to read as follows:
limited to the dangerous feats of balancing, physical
strength or contortion, or which requires the manual "Sec. 16. Penal Provisions -
transport of heavy loads; or
"a) Any employer who violates Sections 12, 12-A, and
"f) Is performed in an unhealthy environment exposing Section 14 of this act, as amended, shall be penalized
the child to hazardous working conditions, elements, by imprisonment of six (6) months and one (1) day to six
substances, co-agents or processes involving ionizing, (6) years or a fine of not less than Fifty thousand pesos
radiation, fire, flammable substances, noxious (P50,000.00) but not more than Three hundred thousand
components and the like, or to extreme temperatures, pesos (P300,000.00) or both at the discretion of the
noise levels, or vibrations; or court.

"g) Is performed under particularly difficult conditions; or "b) Any person who violates the provision of Section 12-
D of this act or the employer of the subcontractor who
"h) Exposes the child to biological agents such as employs, or the one who facilitates the employment of a
bacteria, fungi, viruses, protozoans, nematodes and child in hazardous work, shall suffer the penalty of a fine
other parasites; or of not less than One hundred thousand pesos
(P100,000.00) but not more than One million pesos
"i) Involves the manufacture or handling of explosives (P1,000,000.00), or imprisonment of not less than twelve
and other pyrotechnic products." (12) years and one (1) day to twenty (20) years, or both
such fine and imprisonment at the discretion of the court.
Section 4. Section 13 of the same Act is hereby
amended to read as follows: "c) Any person who violates Sections 12-D(1) and 12-
D(2) shall be prosecuted and penalized in accordance
"Sec. 13. Access to Education and Training for Working with the penalty provided for by R. A. 9208 otherwise
Children - "a) No child shall be deprived of formal or known as the "Anti-trafficking in Persons Act of 2003":
non-formal education. In all cases of employment Provided, That Such penalty shall be imposed in its
allowed in this Act, the employer shall provide a working maximum period.
child with access to at least primary and secondary
education.
"d) Any person who violates Section 12-D (3) shall be programs and projects that will prevent acts of child
prosecuted and penalized in accordance with R.A. 9165, labor."
otherwise known as the "Comprehensive Dangerous
Drugs Act of 2002"; Provided, That such penalty shall be Section 8. Section 27 of the same Act is hereby
imposed in its maximum period. amended to read as follows:

"e) If a corporation commits any of the violations "Sec. 27. Who May File a Complaint - Complaints on
aforecited, the board of directors/trustees and officers, cases of unlawful acts committed against children as
which include the president, treasurer and secretary of enumerated herein may be filed by the following:
the said corporation who participated in or knowingly
allowed the violation, shall be penalized accordingly as "(a) Offended party;
provided for under this Section. "(b) Parents or guardians;
"(c) Ascendant or collateral relative within the third
"f) Parents, biological or by legal fiction, and legal degree of consanguinity;
guardians found to be violating Sections 12, 12-A, 12-B "(d) Officer, social worker or representative of a licensed
and 12-C of this Act shall pay a fine of not less than Ten child-caring institution;
thousand pesos (P10,000.00) but not more than One "(e) Officer or social worker of the Department of Social
hundred thousand pesos (P100,000.00), or be required Welfare and Development;
to render community service for not less than thirty (30) "(f) Barangay chairman of the place where the violation
days but not more than one (1) year, or both such fine occurred, where the child is residing or employed; or
and community service at the discretion of the court:
Provided, That the maximum length of community "(g) At least three (3) concerned, responsible citizens
service shall be imposed on parents or legal guardians where the violation occurred."
who have violated the provisions of this Act three (3)
times; Provided, further, That in addition to the Section 9. The same Act is hereby further amended by
community service, the penalty of imprisonment of thirty adding new sections to Section 16 to be denominated as
(30) days but not more than one (1) year or both at the Sections 16-A, 16-B and 16-C to read as follows:
discretion of the court, shall be imposed on the parents
or legal guardians who have violated the provisions of "Sec. 16-A. Jurisdiction - The family courts shall have
this Act more than three (3) times. original jurisdiction over all cases involving offenses
punishable under this Act: Provided, That in cities or
"g) The Secretary, of Labor and Employment or his/her provinces where there are no family courts yet, the
duly authorized representative may, after due notice and regional trial courts and the municipal trial courts shall
hearing, order the closure of any business firm or have concurrent jurisdiction depending on the penalties
establishment found to have violated any of the prescribed for the offense charged.
provisions of this Act more than three (3) times. He/she
shall likewise order the immediate closure of such firm or "The preliminary investigation of cases filed under this
establishment if: Act shall be terminated within a period of thirty (30) days
from the date of filing.
"(1) The violation of any provision of this Act has
resulted in the death, insanity or serious physical injury "If the preliminary investigation establishes a prima facie
of a child employed in such establishment; or case, then the corresponding information shall be filed in
court within forty eight (48) hours from the termination of
"(2) Such firm or establishment is engaged or employed the investigation.
in prostitution or in obscene or lewd shows.
"Trial of cases under this Act shall be terminated by the
"h) In case of such closure, the employer shall be court not later than ninety (90) days from the date of
required to pay the employee(s) the separation pay and filing of information. Decision on said cases shall be
other monetary benefits provided for by law." rendered within a period of fifteen (15) days from the
date of submission of the case.
Section 7. The same Act is hereby further amended by
adding a new section to be denominated as Section 16- "Sec. 15. Exemptions from Filing Fees. - When the
A, to read as follows: victim of child labor institutes a separate civil action for
the recovery of civil damages, he/she shall be exempt
"Sec. 16-A. Trust Fund from Fines and Penalties - The from payment of filing fees.
fine imposed by the court shall be treated as a Trust
Fund, administered by the Department of Labor and "Sec. 16-C. Access to Immediate Legal, Medical and
Employment and disbursed exclusively for the needs, Psycho-Social Services - The working child shall have
including the costs of rehabilitation and reintegration into the right to free legal, medical and psycho-social
the mainstream of society of the working children who services to be provided by the State."
are victims of the violations of this Act, and for the
Section 10. Implementing Rules and Regulations - The Having been convened at Geneva by the Governing
Secretary of Labor and Employment, in coordination with Body of the International Labour Office, and having met
the Committees on Labor and Employment of both in its 87th Session on 1 June 1999, and
Houses of Congress, shall issue the necessary Considering the need to adopt new instruments for the
Implementing Rules and Regulations (IRR) to effectively prohibition and elimination of the worst forms of child
implement the provisions of this Act, in consultation with labour, as the main priority for national and international
concerned public and private sectors, within sixty (60) action, including international cooperation and
days from the effectivity of this Act. assistance, to complement the Convention and the
Recommendation concerning Minimum Age for
Such rules and regulations shall take effect upon their Admission to Employment, 1973, which remain
publication in two (2) national newspapers of general fundamental instruments on child labour, and
circulation. Considering that the effective elimination of the worst
forms of child labour requires immediate and
Section 11. Separability Clause. - If any provision of this comprehensive action, taking into account the
Act is declared invalid or unconstitutional, the validity of importance of free basic education and the need to
the remaining provisions hereof shall remain in full force remove the children concerned from all such work and to
and effect. provide for their rehabilitation and social integration while
addressing the needs of their families, and
Section 12. Repealing Clause. - All laws, decrees, or Recalling the resolution concerning the elimination of
rules inconsistent with the provisions of this Act are child labour adopted by the International Labour
hereby repealed or modified accordingly. Conference at its 83rd Session in 1996, and

Section 13. Effectivity. - This Act shall take effect fifteen Recognizing that child labour is to a great extent caused
(15) days from the date of its complete publication in the by poverty and that the long-term solution lies in
Official Gazette or in at least two (2) national sustained economic growth leading to social progress, in
newspapers of general circulation. particular poverty alleviation and universal education,
and
D. Hours of Work, RA 9231 Sec 3 on Sec12-a Recalling the Convention on the Rights of the Child
adopted by the United Nations General Assembly on 20
Section 3. The same Act, as amended, is hereby further November 1989, and
amended by adding new sections to be denominated as Recalling the ILO Declaration on Fundamental Principles
Sections 12-A, 12-B, 12-C, and 12-D to read as follows: and Rights at Work and its Follow-up, adopted by the
International Labour Conference at its 86th Session in
"Sec. 12-A. Hours of Work of a Working Child. - Under 1998, and
the exceptions provided in Section 12 of this Act, as Recalling that some of the worst forms of child labour
amended: are covered by other international instruments, in
particular the Forced Labour Convention, 1930, and the
"(1) A child below fifteen (15) years of age may be United Nations Supplementary Convention on the
allowed to work for not more than twenty (20) hours a Abolition of Slavery, the Slave Trade, and Institutions
week: Provided, That the work shall not be more than and Practices Similar to Slavery, 1956, and
four (4) hours at any given day; Having decided upon the adoption of certain proposals
"(2) A child fifteen (15) years of age but below eighteen with regard to child labour, which is the fourth item on
(18) shall not be allowed to work for more than eight (8) the agenda of the session, and
hours a day, and in no case beyond forty (40) hours a Having determined that these proposals shall take the
week; form of an international Convention;
"(3) No child below fifteen (15) years of age shall be adopts this seventeenth day of June of the year one
allowed to work between eight o'clock in the evening and thousand nine hundred and ninety-nine the following
six o'clock in the morning of the following day and no Convention, which may be cited as the Worst Forms of
child fifteen (15) years of age but below eighteen (18) Child Labour Convention, 1999.
shall be allowed to work between ten o'clock in the
evening and six o'clock in the morning of the following Article 1
day." Each Member which ratifies this Convention shall take
immediate and effective measures to secure the
E. Prohibitions against worst form of Child Labor prohibition and elimination of the worst forms of child
ILO Convention 182 (1999); RA 9231, Sec. 3 on Sec. labour as a matter of urgency.
12-d; Sec. 5 on Sec. 14
Article 2
ILO Convention 182 (1999) For the purposes of this Convention, the term child shall
Preamble apply to all persons under the age of 18.
The General Conference of the International Labour
Organization,
Article 3 (a) prevent the engagement of children in the worst
For the purposes of this Convention, the term the worst forms of child labour;
forms of child labour comprises: (b) provide the necessary and appropriate direct
assistance for the removal of children from the worst
(a) all forms of slavery or practices similar to slavery, forms of child labour and for their rehabilitation and
such as the sale and trafficking of children, debt social integration;
bondage and serfdom and forced or compulsory labour, (c) ensure access to free basic education, and, wherever
including forced or compulsory recruitment of children for possible and appropriate, vocational training, for all
use in armed conflict; children removed from the worst forms of child labour;
(b) the use, procuring or offering of a child for (d) identify and reach out to children at special risk; and
prostitution, for the production of pornography or for (e) take account of the special situation of girls.
pornographic performances; 3. Each Member shall designate the competent authority
(c) the use, procuring or offering of a child for illicit responsible for the implementation of the provisions
activities, in particular for the production and trafficking giving effect to this Convention.
of drugs as defined in the relevant international treaties;
(d) work which, by its nature or the circumstances in Article 8
which it is carried out, is likely to harm the health, safety Members shall take appropriate steps to assist one
or morals of children. another in giving effect to the provisions of this
Convention through enhanced international cooperation
Article 4 and/or assistance including support for social and
1. The types of work referred to under Article 3(d) shall economic development, poverty eradication programmes
be determined by national laws or regulations or by the and universal education.
competent authority, after consultation with the
organizations of employers and workers concerned, Article 9
taking into consideration relevant international The formal ratifications of this Convention shall be
standards, in particular Paragraphs 3 and 4 of the Worst communicated to the Director-General of the
Forms of Child Labour Recommendation, 1999. International Labour Office for registration.
2. The competent authority, after consultation with the
organizations of employers and workers concerned, Article 10
shall identify where the types of work so determined 1. This Convention shall be binding only upon those
exist. Members of the International Labour Organization
3. The list of the types of work determined under whose ratifications have been registered with the
paragraph 1 of this Article shall be periodically examined Director-General of the International Labour Office.
and revised as necessary, in consultation with the 2. It shall come into force 12 months after the date on
organizations of employers and workers concerned. which the ratifications of two Members have been
registered with the Director-General.
Article 5 3. Thereafter, this Convention shall come into force for
Each Member shall, after consultation with employers' any Member 12 months after the date on which its
and workers' organizations, establish or designate ratification has been registered.
appropriate mechanisms to monitor the implementation
of the provisions giving effect to this Convention. Article 11
1. A Member which has ratified this Convention may
Article 6 denounce it after the expiration of ten years from the
1. Each Member shall design and implement date on which the Convention first comes into force, by
programmes of action to eliminate as a priority the worst an act communicated to the Director-General of the
forms of child labour. International Labour Office for registration. Such
2. Such programmes of action shall be designed and denunciation shall not take effect until one year after the
implemented in consultation with relevant government date on which it is registered.
institutions and employers' and workers' organizations, 2. Each Member which has ratified this Convention and
taking into consideration the views of other concerned which does not, within the year following the expiration
groups as appropriate. of the period of ten years mentioned in the preceding
paragraph, exercise the right of denunciation provided
Article 7 for in this Article, will be bound for another period of ten
1. Each Member shall take all necessary measures to years and, thereafter, may denounce this Convention at
ensure the effective implementation and enforcement of the expiration of each period of ten years under the
the provisions giving effect to this Convention including terms provided for in this Article.
the provision and application of penal sanctions or, as
appropriate, other sanctions. Article 12
2. Each Member shall, taking into account the 1. The Director-General of the International Labour
importance of education in eliminating child labour, take Office shall notify all Members of the International
effective and time-bound measures to: Labour Organization of the registration of all ratifications
and acts of denunciation communicated by the Members "(3) The use, procuring or offering of a child for illegal or
of the Organization. illicit activities, including the production and trafficking of
2. When notifying the Members of the Organization of dangerous drugs and volatile substances prohibited
the registration of the second ratification, the Director- under existing laws; or
General shall draw the attention of the Members of the "(4) Work which, by its nature or the circumstances in
Organization to the date upon which the Convention which it is carried out, is hazardous or likely to be
shall come into force. harmful to the health, safety or morals of children, such
that it:
Article 13 "a) Debases, degrades or demeans the intrinsic worth
The Director-General of the International Labour Office and dignity of a child as a human being; or
shall communicate to the Secretary-General of the "b) Exposes the child to physical, emotional or sexual
United Nations, for registration in accordance with article abuse, or is found to be highly stressful psychologically
102 of the Charter of the United Nations, full particulars or may prejudice morals; or
of all ratifications and acts of denunciation registered by "c) Is performed underground, underwater or at
the Director-General in accordance with the provisions of dangerous heights; or
the preceding Articles. "d) Involves the use of dangerous machinery, equipment
and tools such as power-driven or explosive power-
Article 14 actuated tools; or
At such times as it may consider necessary, the "e) Exposes the child to physical danger such as, but not
Governing Body of the International Labour Office shall limited to the dangerous feats of balancing, physical
present to the General Conference a report on the strength or contortion, or which requires the manual
working of this Convention and shall examine the transport of heavy loads; or
desirability of placing on the agenda of the Conference "f) Is performed in an unhealthy environment exposing
the question of its revision in whole or in part. the child to hazardous working conditions, elements,
Article 15 substances, co-agents or processes involving ionizing,
1. Should the Conference adopt a new Convention radiation, fire, flammable substances, noxious
revising this Convention in whole or in part, then, unless components and the like, or to extreme temperatures,
the new Convention otherwise provides -- noise levels, or vibrations; or
(a) the ratification by a Member of the new revising "g) Is performed under particularly difficult conditions; or
Convention shall ipso jure involve the immediate "h) Exposes the child to biological agents such as
denunciation of this Convention, notwithstanding the bacteria, fungi, viruses, protozoans, nematodes and
provisions of Article 11 above, if and when the new other parasites; or
revising Convention shall have come into force; "i) Involves the manufacture or handling of explosives
(b) as from the date when the new revising Convention and other pyrotechnic products."
comes into force, this Convention shall cease to be open
to ratification by the Members. RA 9231, Sec. 5 on Sec. 14
2. This Convention shall in any case remain in force in
its actual form and content for those Members which Section 5. Section 14 of the same Act is hereby
have ratified it but have not ratified the revising amended to read as follows:
Convention.
"Sec. 14. Prohibition on the Employment of Children in
Article 16 Certain Advertisements. - No child shall be employed as
The English and French versions of the text of this a model in any advertisement directly or indirectly
Convention are equally authoritative. promoting alcoholic beverages, intoxicating drinks,
tobacco and its byproducts, gambling or any form of
RA 9231, Sec. 3 on Sec. 12-d; Sec. 5 on Sec. 14 violence or pornography."
RA 9231 Sec. 3 on Sec 12-d
"Sec. 12-D. Prohibition Against Worst Forms of Child F. Discrimination, Art. 140
Labor. - No child shall be engaged in the worst forms of
child labor. The phrase "worst forms of child labor" shall Article 140. Prohibition against child discrimination. No
refer to any of the following: employer shall discriminate against any person in
respect to terms and conditions of employment on
"(1) All forms of slavery, as defined under the "Anti- account of his age.
trafficking in Persons Act of 2003", or practices similar to
slavery such as sale and trafficking of children, debt G. Jurisdiction, RA 9231 Sec. 9 on Sec 16-A
bondage and serfdom and forced or compulsory labor, Section 9. The same Act is hereby further amended by
including recruitment of children for use in armed adding new sections to Section 16 to be denominated as
conflict; or Sections 16-A, 16-B and 16-C to read as follows:
"(2) The use, procuring, offering or exposing of a child "Sec. 16-A. Jurisdiction - The family courts shall have
for prostitution, for the production of pornography or for original jurisdiction over all cases involving offenses
pornographic performances; or 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 and be entitled to all the benefits provided thereunder.
have concurrent jurisdiction depending on the penalties (As amended by Republic Act No. 7655, August 19,
prescribed for the offense charged. 1993).

"The preliminary investigation of cases filed under this ART. 144. Minimum cash wage. - The minimum wage
Act shall be terminated within a period of thirty (30) days rates prescribed under this Chapter shall be the basic
from the date of filing. cash wages which shall be paid to the househelpers
in addition to lodging, food and medical attendance.
"If the preliminary investigation establishes a prima facie
case, then the corresponding information shall be filed in ART. 145. Assignment to non-household work. - No
court within forty eight (48) hours from the termination of househelper shall be assigned to work in a commercial,
the investigation. industrial or agricultural enterprise at a wage or salary
rate lower than that provided for agricultural or non-
"Trial of cases under this Act shall be terminated by the agricultural workers as prescribed herein.
court not later than ninety (90) days from the date of
filing of information. Decision on said cases shall be ART. 146. Opportunity for education. - If the
rendered within a period of fifteen (15) days from the househelper is under the age of eighteen (18) years,
date of submission of the case. the employer shall give him or her an opportunity for
at least elementary education. The cost of education
5. HOUSEHELPERS/CAREGIVERS shall be part of the househelper’s compensation, unless
Reference: Arts. 141-152; Omnibus Rules, Book III, there is a stipulation to the contrary.
Rule XIII ART. 147. Treatment of househelpers. - The employer
shall treat the househelper in a just and humane
Chapter III manner. In no case shall physical violence be used
EMPLOYMENT OF HOUSEHELPERS upon the househelper.
ART. 141. Coverage. - This Chapter shall apply to all
persons rendering services in households for ART. 148. Board, lodging, and medical attendance. -
compensation. The employer shall furnish the househelper, free of
"Domestic or household service" shall mean service charge, suitable and sanitary living quarters as well
in the employer’s home which is usually necessary or as adequate food and medical attendance.
desirable for the maintenance and enjoyment thereof
and includes ministering to the personal comfort and ART. 149. Indemnity for unjust termination of
convenience of the members of the employer’s services. - If the period of household service is fixed,
household, including services of family drivers. neither the employer nor the househelper may terminate
the contract before the expiration of the term, except for
ART. 142. Contract of domestic service. - The original a just cause. If the househelper is unjustly dismissed, he
contract of domestic service shall not last for more than or she shall be paid the compensation already earned
two (2) years but it may be renewed for such periods as plus that for fifteen (15) days by way of indemnity.
may be agreed upon by the parties. If the househelper leaves without justifiable reason,
he or she shall forfeit any unpaid salary due him or
ART. 143. Minimum wage. - (a) Househelpers shall be her not exceeding fifteen (15) days.
paid the following minimum wage rates:
(1) Eight hundred pesos (P800.00) a month for ART. 150. Service of termination notice. - If the
househelpers in Manila, Quezon, Pasay, and Caloocan duration of the household service is not determined
cities and municipalities of Makati, San Juan, either in stipulation or by the nature of the service,
Mandaluyong, Muntinlupa, Navotas, Malabon, the employer or the househelper may give notice to
Parañaque, Las Piñas, Pasig, Marikina, Valenzuela, put an end to the relationship five (5) days before the
Taguig and Pateros in Metro Manila and in highly intended termination of the service.
urbanized cities;
(2) Six hundred fifty pesos (P650.00) a month for those ART. 151. Employment certification. - Upon the
in other chartered cities and first-class municipalities;and severance of the household service relation, the
(3) Five hundred fifty pesos (P550.00) a month for those employer shall give the househelper a written statement
in other municipalities. of the nature and duration of the service and his or her
Provided, That the employers shall review the efficiency and conduct as househelper.
employment contracts of their househelpers every
three (3) years with the end in view of improving the ART. 152. Employment record. - The employer may
terms and conditions thereof. keep such records as he may deem necessary to
Provided, further, That those househelpers who are reflect the actual terms and conditions of
receiving at least One thousand pesos (P1,000.00) employment of his househelper, which the latter
shall be covered by the Social Security System (SSS) shall authenticate by signature or thumbmark upon
request of the employer.
RULE XIII wage rates prescribed under this Rule shall be basic
Employment of Househelpers cash wages which shall be paid to the househelpers
SECTION 1. General statement on coverage. — in addition to lodging, food and medical attendance.
(a) The provisions of this Rule shall apply to all
househelpers whether employed on full or part-time SECTION 9. Time and manner of payment. — Wages
basis. shall be paid directly to the househelper to whom
(b) The term "househelper" as used herein is they are due at least once a month. No deductions
synonymous to the term "domestic servant" and therefrom shall be made by the employer unless
shall refer to any person, whether male or female, authorized by the househelper himself or by existing
who renders services in and about the employer's laws.
home and which services are usually necessary or
desirable for the maintenance and enjoyment SECTION 10. Assignment to non-household work. —
thereof, and ministers exclusively to the personal No househelper shall be assigned to work in a
comfort and enjoyment of the employer's family. commercial, industrial or agricultural enterprise at a
wage or salary rate lower than that provided for
SECTION 2. Method of payment not determinant. — agricultural and non-agricultural workers.
The provisions of this Rule shall apply irrespective of
the method of payment of wages agreed upon by the SECTION 11. Opportunity for education. — If the
employer and househelper, whether it be hourly, househelper is under the age of eighteen (18) years,
daily, weekly, or monthly, or by piece or output the employer shall give him or her an opportunity for
basis. at least elementary education. The cost of such
SECTION 3. Children of househelpers. — The children education shall be part of the househelper's
and relatives of a househelper who live under the compensation, unless there is a stipulation to the
employer's roof and who share the accommodations contrary.
provided for the househelpers by the employer shall
not be deemed as househelpers if they are not SECTION 12. Treatment of househelpers. — The
otherwise engaged as such and are not required to employer shall treat the househelper in a just and
perform any substantial household work. humane manner. In no case shall physical violence
be inflicted upon the househelper.
SECTION 4. Employment contract. — The initial
contract for household service shall not last for more SECTION 13. Board, lodging and medical attendance.
than two (2) years. However, such contract may be — The employer shall furnish the househelper free
renewed from year to year. suitable and sanitary living quarters as well as
adequate food and medical attendance.
SECTION 5. Minimum monthly wage. — The minimum
compensation of househelpers shall not be less than SECTION 14. Indemnity for unjust termination of
the following rates: service. — If the period for household service is fixed,
(a) Sixty pesos (P60.00) a month for those employed neither the employer nor the househelper may
in the cities of Manila, Quezon, Pasay and Caloocan, terminate the contract before the expiration of the
and in the municipalities of Makati, San Juan, term, except for a just cause. If the househelper is
Mandaluyong, Muntinlupa, Navotas, Malabon, unjustly dismissed, he or she shall be paid the
Parañaque, Las Piñas, Pasig and Marikina, in the compensation already earned plus that for fifteen
Province of Rizal. (15) days by way of indemnity.
(b) Forty-five pesos (P45.00) a month for those If the househelper leaves without justifiable reason,
employed in other chartered cities and first class he or she shall forfeit any unpaid salary due him or
municipalities; and her not exceeding fifteen (15) days.
(c) Thirty pesos (P30.00) a month for those in other
municipalities. SECTION 15. Employment certification. — Upon the
severance of the household service relationship, the
SECTION 6. Equivalent daily rate. — The equivalent househelper may demand from the employer a
minimum daily wage rate of househelpers shall be written statement of the nature and duration of the
determined by dividing the applicable minimum monthly service and his or her efficiency and conduct as
rate by thirty (30) days. househelper.

SECTION 7. Payment by results. — Where the method SECTION 16. Funeral expenses. — In case of death of
of payment of wages agreed upon by the employer the househelper, the employer shall bear the funeral
and the househelper is by piece or output basis, the expenses commensurate to the standards of life of
piece or output rates shall be such as will assure the the deceased.
househelper of the minimum monthly or the equivalent
daily rate as provided in this issuance. SECTION 17. Disposition of the househelper's body.
— Unless so desired by the househelper or by his or
SECTION 8. Minimum cash wage. — The minimum her guardian with court approval, the transfer or use
of the body of the deceased househelper for commercial, industrial or agricultural enterprise at a
purposes other than burial is prohibited. When so wage or salary rate lower than that provided for
authorized by the househelper, the transfer, use and agricultural or non-agricultural workers as prescribed
disposition of the body shall be in accordance with herein.
the provisions of Republic Act No. 349.
• Apex Mining Co. v. NLRC, 196 SCRA 251
SECTION 18. Employment records. — The employer The criteria are the personal comfort and
may keep such records as he may deem necessary to enjoyment of the family of the employer in the home
reflect the actual terms and conditions of of said employer. While it may be true that the nature
employment of his househelper which the latter shall of the work of a househelper, domestic servant or
authenticate by signature or thumbmark upon laundrywoman in a home or in a company staffhouse
request of the employer. may be similar in nature, the difference in their
circumstances is that in the former instance they are
SECTION 19. Prohibited reduction of pay. — When the actually serving the family while in the latter case,
compensation of the househelper before the whether it is a corporation or a single proprietorship
promulgation of these regulations is higher than that engaged in business or industry or any other
prescribed in the Code and in this issuance, the same agricultural or similar pursuit, service is being
shall not be reduced or diminished by the employer rendered in the staffhouses or within the premises of
on or after said date. the business of the employer. In such instance, they
are employees of the company or employer in the
SECTION 20. Relation to other laws and agreements. business concerned entitled to the privileges of a
— Nothing in this Rule shall deprive a househelper of regular employee.
the right to seek higher wages, shorter working hours
and better working conditions than those prescribed FACTS:
herein, nor justify an employer in reducing any • Private respondent Sinclita Candida was
benefit or privilege granted to the househelper under employed by petitioner Apex Mining Company, Inc to
existing laws, agreements or voluntary employer perform laundry services at its staff house.
practices with terms more favorable to the • On December 18, 1987, while she was attending
househelpers than those prescribed in this Rule. to her assigned task and she was hanging her laundry,
she accidentally slipped and hit her back on a stone. As
A. Definition, Omnibus Rules, Book III, Rule XIII, Sec. a result of the accident she was not able to continue with
1(b) her work. She was permitted to go on leave for
OMNIBUS RULES medication.
IMPLEMENTING THE LABOR CODE • De la Rosa offered her the amount of P 2,000.00
RULE XIII which was eventually increased to P5,000.00 to
Employment of Househelpers persuade her to quit her job, but she refused the offer
and preferred to return to work.
SECTION 1. General statement on coverage. • Petitioner did not allow her to return to work and
(b) The term "househelper" as used herein is dismissed her on February 4, 1988.
synonymous to the term "domestic servant" and shall • Private respondent filed a request for assistance
refer to any person, whether male or female, who with the Department of Labor and Employment, which
renders services in and about the employer's home and the latter rendered its Decision by ordering the Apex
which services are usually necessary or desirable for the Mining Co. to pay Candida the total amount of
maintenance and enjoyment thereof, and ministers P55,161.42 for salary differential, emergency living
exclusively to the personal comfort and enjoyment of the allowance, 13th month pay differential and separation
employer's family. pay.
• Petitioner appealed the case before the NLRC,
B. Coverage, Art. 141 which was subsequently dismissed for lack of merit.
ISSUE:
ART. 141. Coverage. - This Chapter shall apply to all Whether or not the private respondent should be treated
persons rendering services in households for as househelper or domestic servant or a regular
compensation. employee.
"Domestic or household service" shall mean service
in the employer’s home which is usually necessary or HELD:
desirable for the maintenance and enjoyment thereof • Under Rule XIII, Section l(b), Book 3 of the
and includes ministering to the personal comfort and Labor Code, as amended, the term "househelper" as
convenience of the members of the employer’s used herein is synonymous to the term "domestic
household, including services of family drivers. servant" and shall refer to any person, whether male or
female, who renders services in and about the
C. Non-household Work, Art. 145 employer's home and which services are usually
ART. 145. Assignment to non-household work. - No necessary or desirable for the maintenance and
househelper shall be assigned to work in a enjoyment thereof, and ministers exclusively to the
personal comfort and enjoyment of the employer's rate lower than that provided for agricultural or non-
family. agricultural workers as prescribed herein.
• The definition cannot be interpreted to include
househelper or laundrywomen working in staffhouses of Article 146. Opportunity for education. If the househelper
a company, like private respondent who attends to the is under the age of eighteen (18) years, the employer
needs of the company's guest and other persons shall give him or her an opportunity for at least
availing of said facilities. elementary education. The cost of education shall be
• The mere fact that the househelper or domestic part of the househelper’s compensation, unless there is
servant is working within the premises of the business of a stipulation to the contrary.
the employer and in relation to or in connection with its
business, as in its staffhouses for its guest or even for its Article 147. Treatment of househelpers. The employer
officers and employees, warrants the conclusion that shall treat the househelper in a just and humane
such househelper or domestic servant is and should be manner. In no case shall physical violence be used upon
considered as a regular employee. the househelper.
WHEREFORE, the petition is DISMISSED and the
appealed decision and resolution of public respondent Article 148. Board, lodging, and medical attendance. The
NLRC are hereby AFFIRMED. No pronouncement as to employer shall furnish the househelper, free of charge,
costs suitable and sanitary living quarters as well as adequate
food and medical attendance.
D. Conditions and Benefits, Arts. 142-149,152; Civil
Code, Arts. 1689-1697; Rule XIII, Sec. 18 Article 149. Indemnity for unjust termination of services.
If the period of household service is fixed, neither the
Arts. 142-149, 152 employer nor the househelper may terminate the
Article 142. Contract of domestic service. The original contract before the expiration of the term, except for a
contract of domestic service shall not last for more than just cause. If the househelper is unjustly dismissed, he
two (2) years but it may be renewed for such periods as or she shall be paid the compensation already earned
may be agreed upon by the parties. plus that for fifteen (15) days by way of indemnity.
If the househelper leaves without justifiable reason, he
Article 143. Minimum wage. or she shall forfeit any unpaid salary due him or her not
exceeding fifteen (15) days.
Househelpers shall be paid the following minimum wage
rates: Article 152. Employment record. The employer may
keep such records as he may deem necessary to reflect
Eight hundred pesos (P800.00) a month for the actual terms and conditions of employment of his
househelpers in Manila, Quezon, Pasay, and Caloocan househelper, which the latter shall authenticate by
cities and municipalities of Makati, San Juan, signature or thumbmark upon request of the employer.
Mandaluyong, Muntinlupa, Navotas, Malabon,
Parañaque, Las Piñas, Pasig, Marikina, Valenzuela, Civil Code Art. 1689-1697
Taguig and Pateros in Metro Manila and in highly Art. 1689. Household service shall always be reasonably
urbanized cities; compensated. Any stipulation that household service is
Six hundred fifty pesos (P650.00) a month for those in without compensation shall be void. Such compensation
other chartered cities and first-class municipalities; and shall be in addition to the house helper's lodging, food,
Five hundred fifty pesos (P550.00) a month for those in and medical attendance.
other municipalities.
Provided, That the employers shall review the Art. 1690. The head of the family shall furnish, free of
employment contracts of their househelpers every three charge, to the house helper, suitable and sanitary
(3) years with the end in view of improving the terms and quarters as well as adequate food and medical
conditions thereof. attendance.
Provided, further, That those househelpers who are
receiving at least One thousand pesos (P1,000.00) shall Art. 1691. If the house helper is under the age of
be covered by the Social Security System (SSS) and be eighteen years, the head of the family shall give an
entitled to all the benefits provided thereunder. (As opportunity to the house helper for at least elementary
amended by Republic Act No. 7655, August 19, 1993) education. The cost of such education shall be a part of
the house helper's compensation, unless there is a
Article 144. Minimum cash wage. The minimum wage stipulation to the contrary.
rates prescribed under this Chapter shall be the basic
cash wages which shall be paid to the househelpers in Art. 1692. No contract for household service shall last
addition to lodging, food and medical attendance. for more than two years. However, such contract may be
renewed from year to year.
Article 145. Assignment to non-household work. No
househelper shall be assigned to work in a commercial, Art. 1693. The house helper's clothes shall be subject to
industrial or agricultural enterprise at a wage or salary stipulation. However, any contract for household service
shall be void if thereby the house helper cannot afford to week, that the service shall be terminated at the end of
acquire suitable clothing. the seventh day from the beginning of the week;
(3) If the compensation is paid by the month, notice may
Art. 1694. The head of the family shall treat the house be given, at the latest, on the fifth day of the month, that
helper in a just and humane manner. In no case shall the service shall cease at the end of the month.
physical violence be used upon the house helper.
Art. 1699. Upon the extinguishment of the service
Art. 1695. House helper shall not be required to work relation, the house helper may demand from the
more than ten hours a day. Every house helper shall be head of the family a written statement on the nature
allowed four days' vacation each month, with pay. and duration of the service and the efficiency and
conduct of the house helper.
Art. 1696. In case of death of the house helper, the head
of the family shall bear the funeral expenses if the house Rule XIII, Secs. 14-15
helper has no relatives in the place where the head of SECTION 14. Indemnity for unjust termination of service.
the family lives, with sufficient means therefor. — If the period for household service is fixed, neither the
employer nor the househelper may terminate the
Art. 1697. If the period for household service is fixed contract before the expiration of the term, except for a
neither the head of the family nor the house helper may just cause. If the househelper is unjustly dismissed, he
terminate the contract before the expiration of the term, or she shall be paid the compensation already earned
except for a just cause. If the house helper is unjustly plus that for fifteen (15) days by way of indemnity.
dismissed, he shall be paid the compensation already
earned plus that for fifteen days by way of indemnity. If If the househelper leaves without justifiable reason, he
the house helper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him or her not
shall forfeit any salary due him and unpaid, for not exceeding fifteen (15) days.
exceeding fifteen days
SECTION 15. Employment certification. — Upon the
Omnibus Rules, Rule XIII, Sec. 18 severance of the household service relationship, the
SECTION 18. Employment records. — The employer househelper may demand from the employer a written
may keep such records as he may deem necessary to statement of the nature and duration of the service and
reflect the actual terms and conditions of employment of his or her efficiency and conduct as househelper.
his househelper which the latter shall authenticate by
signature or thumbmark upon request of the employer. F. Indemnity of Unjust Termination, Art. 149, Omnibus
Rules- Rule XIII Sec. 14
E. Termination, Arts. 150-151; Civil Code, Arts. 1698-
1699; Rule XIII, Secs. 14-15 Article 149. Indemnity for unjust termination of services.
If the period of household service is fixed, neither the
Arts. 150-151; employer nor the househelper may terminate the
Article 150. Service of termination notice. If the duration contract before the expiration of the term, except for a
of the household service is not determined either in just cause. If the househelper is unjustly dismissed, he
stipulation or by the nature of the service, the employer or she shall be paid the compensation already earned
or the househelper may give notice to put an end to the plus that for fifteen (15) days by way of indemnity.
relationship five (5) days before the intended termination
of the service. If the househelper leaves without justifiable reason, he
or she shall forfeit any unpaid salary due him or her not
Article 151. Employment certification. Upon the exceeding fifteen (15) days.
severance of the household service relation, the
employer shall give the househelper a written statement Omnibus Rules
of the nature and duration of the service and his or her SECTION 14. Indemnity for unjust termination of service.
efficiency and conduct as househelper. — If the period for household service is fixed, neither the
employer nor the househelper may terminate the
Civil Code, Arts. 1698-1699 contract before the expiration of the term, except for a
Art. 1698. If the duration of the household service is not just cause. If the househelper is unjustly dismissed, he
determined either by stipulation or by the nature of the or she shall be paid the compensation already earned
service, the head of the family or the house helper may plus that for fifteen (15) days by way of indemnity.
give notice to put an end to the service relation,
according to the following rules: If the househelper leaves without justifiable reason, he
(1) If the compensation is paid by the day, notice may be or she shall forfeit any unpaid salary due him or her not
given on any day that the service shall end at the close exceeding fifteen (15) days.
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
6. HOMEWORKERS person residing outside the Philippines, directly or
indirectly, or through any employee, agent, contractor,
A. Coverage and Regulation, Arts. 153-155; DO 5, sub-contractor; or any other person:
DOLE 4 Feb. 1992, now Book III, Rule XIV (1) Delivers or causes to be delivered any goods or
articles to be processed in or about a home and
Arts. 153-155 hereafter to be returned or to be disposed of or
Chapter IV distributed in accordance with his direction; or
EMPLOYMENT OF HOMEWORKERS (2) Sells any goods or articles for the purpose of having
Article 153. Regulation of industrial homeworkers. The such goods or articles processed in or about a home and
employment of industrial homeworkers and field then repurchases them himself or through another after
personnel shall be regulated by the government through such processing.
the appropriate regulations issued by the Secretary of (c) "Contractor" or "sub-contractor" means any person
Labor and Employment to ensure the general welfare who, for the account or benefit of an employer, delivers
and protection of homeworkers and field personnel and or caused to be delivered to a homeworker goods or
the industries employing them. articles to be processed in or about his home and
thereafter to be returned, disposed of or distributed in
Article 154. Regulations of Secretary of Labor. The accordance with the direction of the employer.
regulations or orders to be issued pursuant to this (d) "Processing" means manufacturing, fabricating,
Chapter shall be designed to assure the minimum terms finishing, repairing, altering, packing, wrapping or
and conditions of employment applicable to the industrial handling any material.
homeworkers or field personnel involved.
SECTION 3. Payment for work. — (a) Immediately
Article 155. Distribution of homework. For purposes of upon receipt of the finished goods or articles, the
this Chapter, the "employer" of homeworkers includes employer shall pay the homeworker or the contractor
any person, natural or artificial who, for his account or or sub-contractor, as the case may be, for the work
benefit, or on behalf of any person residing outside the performed; Provided, However, that where payment is
country, directly or indirectly, or through an employee, made to a contractor or sub-contractor, the homeworker
agent contractor, sub-contractor or any other person: shall be paid within the week after the contractor or sub-
contractor has collected the goods or articles from the
Delivers, or causes to be delivered, any goods, articles homeworkers.
or materials to be processed or fabricated in or about a (b) The Secretary of Labor and Employment shall from
home and thereafter to be returned or to be disposed of time to time establish the standard minimum piece or
or distributed in accordance with his directions; or output rate in appropriate orders for the particular work
or processing to be performed by the homeworkers.
Sells any goods, articles or materials to be processed or SECTION 4. Deductions. — No employee, contractor,
fabricated in or about a home and then rebuys them or sub-contractor shall make any deduction from the
after such processing or fabrication, either by himself or homeworker's earnings for the value of materials
through some other person. which have been lost, destroyed, soiled or otherwise
damaged unless the following conditions are met:
(a) The homeworker concerned is clearly shown to be
DO 5, DOLE 4 Feb. 1992, now Book III, Rule XIV responsible for the loss or damage;
(b) The employee is given reasonable opportunity to
RULE XIV show cause why deductions should not be made;
Employment of Homeworkers (c) The amount of such deduction is fair and reasonable
SECTION 1. General statement on coverage. — This and shall not exceed the actual loss or damages; and
Rule shall apply to any homeworker who performs in or (d) The deduction is made at such rate that the amount
about his home any processing of goods or materials, in deducted does not exceed 20% of the homeworker's
whole or in part, which have been furnished directly or earnings in a week.
indirectly by an employer and thereafter to be returned to
the latter. SECTION 5. Conditions for payment of work. —
(a) The employer may require the homeworker to re-do
SECTION 2. Definitions. — As used in this Rule, the work which has been improperly executed without
following terms shall have the meanings indicated having to pay the stipulated rate more than once.
hereunder: (b) An employer, contractor, or sub-contractor need not
(a) "Home" means any room, house, apartment, or other pay the homeworker for any work which has been done
premises used regularly, in whole or in part, as a on goods and articles which have been returned for
dwelling place, except those situated within the premises reasons attributable to the fault of the homeworker.
or compound of an employer, contractor, and the work
performed therein is under the active or personal SECTION 6. Disagreement between homeworkers and
supervision by, or for, the latter. employer. — In cases of disagreement between the
(b) "Employer" means any natural or artificial person homeworker and the employer, contractor or
who, for his own account or benefit, or on behalf of any subcontractor on matters falling under Section 4 (a), 5
and 6 of this Rule, either party may refer the case to "Field personnel" shall refer to non-agricultural
the Regional Office having jurisdiction over the employees who regularly perform their duties away from
homeworker. The Regional Office shall decide the the principal place of business or branch office of the
case within ten (10) working days from receipt of the employer and whose actual hours of work in the field
case. Its decision shall be final and unappealable. cannot be determined with reasonable certainty.

SECTION 7. Liability of employer and contractor. — Article 83. Normal hours of work. The normal hours of
Whenever an employer shall contract with another for work of any employee shall not exceed eight (8) hours a
the performance of the employer's work, it shall be the day.
duty of such employer to provide in such contract that
the employees or homeworkers of the contractor and the Health personnel in cities and municipalities with a
latter's sub-contractor shall be paid in accordance with population of at least one million (1,000,000) or in
the provisions of this Rule. In the event that such hospitals and clinics with a bed capacity of at least one
contractor or sub-contractor fails to pay the wages or hundred (100) shall hold regular office hours for eight (8)
earnings of his employees or homeworkers as specified hours a day, for five (5) days a week, exclusive of time
in this Rule, such employer shall be jointly and severally for meals, except where the exigencies of the service
liable with the contractor or sub-contractor to the workers require that such personnel work for six (6) days or forty-
of the latter, to the extent that such work is performed eight (48) hours, in which case, they shall be entitled to
under such contract, in the same manner as if the an additional compensation of at least thirty percent
employees or homeworkers were directly engaged by (30%) of their regular wage for work on the sixth day.
the employer. For purposes of this Article, "health personnel" shall
include resident physicians, nurses, nutritionists,
For Department Order No. 05-92 February 4, 1992 dietitians, pharmacists, social workers, laboratory
See Attached PDF technicians, paramedical technicians, psychologists,
midwives, attendants and all other hospital or clinic
B. Definition, DO 5, Sec 2 personnel.
C. Registration, Secs. 4-6
D. Conditions of Employment/Deductions, Secs. Article 84. Hours worked. Hours worked shall include (a)
6-9 all time during which an employee is required to be on
E. Joint and Several Liability of duty or to be at a prescribed workplace; and (b) all time
Employer/Contractor, Sec. 11 during which an employee is suffered or permitted to
F. Prohibitions, Sec. 13 work.
G. Enforcement, Sec. 10
Rest periods of short duration during working hours shall
be counted as hours worked.
CHAPTER IV. Conditions of Work
Article 85. Meal periods. Subject to such regulations as
the Secretary of Labor may prescribe, it shall be the duty
A. Conditions of Work of every employer to give his employees not less than
Reference: Arts. 82-90; Omnibus Rules, Book III, Rules sixty (60) minutes time-off for their regular meals.
I, IA, II
Article 86. Night shift differential. Every employee shall
Chapter I be paid a night shift differential of not less than ten
HOURS OF WORK percent (10%) of his regular wage for each hour of work
performed between ten o’clock in the evening and six
Article 82. Coverage. The provisions of this Title shall o’clock in the morning.
apply to employees in all establishments and
undertakings whether for profit or not, but not to Article 87. Overtime work. Work may be performed
government employees, managerial employees, field beyond eight (8) hours a day provided that the employee
personnel, members of the family of the employer who is paid for the overtime work, an additional
are dependent on him for support, domestic helpers, compensation equivalent to his regular wage plus at
persons in the personal service of another, and workers least twenty-five percent (25%) thereof. Work performed
who are paid by results as determined by the Secretary beyond eight hours on a holiday or rest day shall be paid
of Labor in appropriate regulations. an additional compensation equivalent to the rate of the
first eight hours on a holiday or rest day plus at least
As used herein, "managerial employees" refer to those thirty percent (30%) thereof.
whose primary duty consists of the management of the
establishment in which they are employed or of a Article 88. Undertime not offset by overtime. Undertime
department or subdivision thereof, and to other officers work on any particular day shall not be offset by
or members of the managerial staff. 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 (b) Managerial employees, if they meet all of the
compensation required in this Chapter. following conditions:

Article 89. Emergency overtime work. Any employee (1) Their primary duty consists of the management of the
may be required by the employer to perform overtime establishment in which they are employed or of a
work in any of the following cases: department or sub-division thereof.

When the country is at war or when any other national or (2) They customarily and regularly direct the work of two
local emergency has been declared by the National or more employees therein.
Assembly or the Chief Executive;
(3) They have the authority to hire or fire employees of
When it is necessary to prevent loss of life or property or lower rank; or their suggestions and recommendations
in case of imminent danger to public safety due to an as to hiring and firing and as to the promotion or any
actual or impending emergency in the locality caused by other change of status of other employees, are given
serious accidents, fire, flood, typhoon, earthquake, particular weight.
epidemic, or other disaster or calamity;
(c) Officers or members of a managerial staff if they
When there is urgent work to be performed on perform the following duties and responsibilities:
machines, installations, or equipment, in order to avoid
serious loss or damage to the employer or some other (1) The primary duty consists of the performance of work
cause of similar nature; directly related to management policies of their
employer;
When the work is necessary to prevent loss or damage
to perishable goods; and (2) Customarily and regularly exercise discretion and
independent judgment; and
Where the completion or continuation of the work started
before the eighth hour is necessary to prevent serious (3) (i) Regularly and directly assist a proprietor or a
obstruction or prejudice to the business or operations of managerial employee whose primary duty consists of the
the employer. management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under
Any employee required to render overtime work under general supervision work along specialized or technical
this Article shall be paid the additional compensation lines requiring special training, experience, or
required in this Chapter. knowledge; or (iii) execute, under general supervision,
special assignments and tasks; and
Article 90. Computation of additional compensation. For
purposes of computing overtime and other additional (4) Who do not devote more than 20 percent of their
remuneration as required by this Chapter, the "regular hours worked in a work week to activities which are not
wage" of an employee shall include the cash wage only, directly and closely related to the performance of the
without deduction on account of facilities provided by the work described in paragraphs (1), (2) and (3) above.
employer.
(d) Domestic servants and persons in the personal
Omnibus Rules, Book III, Rules I, IA, II service of another if they perform such services in the
BOOK THREE employer's home which are usually necessary or
Conditions of Employment desirable for the maintenance and enjoyment thereof, or
RULE I minister to the personal comfort, convenience, or safety
Hours of Work of the employer as well as the members of his
employer's household.
SECTION 1. General statement on coverage. — The
provisions of this Rule shall apply to all employees in all (e) Workers who are paid by results, including those who
establishments and undertakings, whether operated for are paid on piece-work, "takay," "pakiao" or task basis,
profit or not, except to those specifically exempted under and other non-time work if their output rates are in
Section 2 hereof. accordance with the standards prescribed under Section
8, Rule VII, Book Three of these regulations, or where
SECTION 2. Exemption. — The provisions of this Rule such rates have been fixed by the Secretary of Labor
shall not apply to the following persons if they qualify for and Employment in accordance with the aforesaid
exemption under the conditions set forth herein: Section.

(a) Government employees whether employed by the (f) Non-agricultural field personnel if they regularly
National Government or any of its political subdivision, perform their duties away from the principal or branch
including those employed in government-owned and/or office or place of business of the employer and whose
controlled corporations; actual hours of work in the field cannot be determined
with reasonable certainty.
(a) Attendance is outside of the employee's regular
SECTION 3. Hours worked. — The following shall be working hours;
considered as compensable hours worked:
(b) Attendance is in fact voluntary; and
(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 (c) The employee does not perform any productive work
prescribed work place; and during such attendance.

(b) All time during which an employee is suffered or SECTION 7. Meal and Rest Periods. — Every employer
permitted to work. shall give his employees, regardless of sex, not less
than one (1) hour time-off for regular meals, except in
SECTION 4. Principles in determining hours worked. — the following cases when a meal period of not less than
The following general principles shall govern in twenty (20) minutes may be given by the employer
determining whether the time spent by an employee is provided that such shorter meal period is credited as
considered hours worked for purposes of this Rule: compensable hours worked of the employee:

(a) All hours are hours worked which the employee is (a) Where the work is non-manual work in nature or
required to give his employer, regardless of whether or does not involve strenuous physical exertion;
not such hours are spent in productive labor or involve
physical or mental exertion. (b) Where the establishment regularly operates not less
than sixteen (16) hours a day;
(b) An employee need not leave the premises of the
work place in order that his rest period shall not be (c) In case of actual or impending emergencies or there
counted, it being enough that he stops working, may rest is urgent work to be performed on machineries,
completely and may leave his work place, to go equipment or installations to avoid serious loss which the
elsewhere, whether within or outside the premises of his employer would otherwise suffer; and
work place.
(d) Where the work is necessary to prevent serious loss
(c) If the work performed was necessary, or it benefited of perishable goods.
the employer, or the employee could not abandon his
work at the end of his normal working hours because he Rest periods or coffee breaks running from five (5) to
had no replacement, all time spent for such work shall twenty (20) minutes shall be considered as compensable
be considered as hours worked, if the work was with the working time.
knowledge of his employer or immediate supervisor.
SECTION 8. Overtime pay. — Any employee covered by
(d) The time during which an employee is inactive by this Rule who is permitted or required to work beyond
reason of interruptions in his work beyond his control eight (8) hours on ordinary working days shall be paid an
shall be considered working time either if the imminence additional compensation for the overtime work in the
of the resumption of work requires the employee's amount equivalent to his regular wage plus at least
presence at the place of work or if the interval is too brief twenty-five percent (25%) thereof.
to be utilized effectively and gainfully in the employee's
own interest. SECTION 9. Premium and overtime pay for holiday and
rest day work. — (a) Except employees referred to under
SECTION 5. Waiting time. — (a) Waiting time spent by Section 2 of this Rule, an employee who is permitted or
an employee shall be considered as working time if suffered to work on special holidays or on his designated
waiting is an integral part of his work or the employee is rest days not falling on regular holidays, shall be paid
required or engaged by the employer to wait. with an additional compensation as premium pay of not
less than thirty percent (30%) of his regular wage. For
(b) An employee who is required to remain on call in the work performed in excess of eight (8) hours on special
employer's premises or so close thereto that he cannot holidays and rest days not falling on regular holidays, an
use the time effectively and gainfully for his own purpose employee shall be paid an additional compensation for
shall be considered as working while on call. An the overtime work equivalent to his rate for the first eight
employee who is not required to leave word at his home hours on a special holiday or rest day plus at least thirty
or with company officials where he may be reached is percent (30%) thereof.
not working while on call.
(b) Employees of public utility enterprises as well as
SECTION 6. Lectures, meetings, training programs. — those employed in non-profit institutions and
Attendance at lectures, meetings, training programs, and organizations shall be entitled to the premium and
other similar activities shall not be counted as working overtime pay provided herein, unless they are
time if all of the following conditions are met: specifically excluded from the coverage of this Rule as
provided in Section 2 hereof.
(c) The payment of additional compensation for work maintenance and operation of facilities for the diagnosis,
performed on regular holidays shall be governed by Rule treatment and care of individuals suffering from illness,
IV, Book Three, of these Rules. disease, injury, or deformity, or in need of obstetrical or
other medical and nursing care. Either term shall also be
SECTION 10. Compulsory overtime work. — In any of construed as any institution, building, or place where
the following cases, an employer may require any of his there are installed beds, or cribs, or bassinets for twenty-
employees to work beyond eight (8) hours a day, four (24) hours use or longer by patients in the treatment
provided that the employee required to render overtime of disease, injuries, deformities, or abnormal physical
work is paid the additional compensation required by and mental states, maternity cases or sanitorial care; or
these regulations: infirmaries, nurseries, dispensaries, and such other
similar names by which they may be designated.
(a) When the country is at war or when any other
national or local emergency has been declared by SECTION 3. Determination of bed capacity and
Congress or the Chief Executive; population. — (a) For purposes of determining the
applicability of this Rule, the actual bed capacity of the
(b) When overtime work is necessary to prevent loss of hospital or clinic at the time of such determination shall
life or property, or in case of imminent danger to public be considered, regardless of the actual or bed
safety due to actual or impending emergency in the occupancy. The bed capacity of hospital or clinic as
locality caused by serious accident, fire, floods, determined by the Bureau of Medical Services pursuant
typhoons, earthquake, epidemic or other disaster or to Republic Act No. 4226, otherwise known as the
calamities; Hospital Licensure Act, shall prima facie be considered
as the actual bed capacity of such hospital or clinic.
(c) When there is urgent work to be performed on
machines, installations, or equipment, in order to avoid (b) The size of the population of the city or municipality
serious loss or damage to the employer or some other shall be determined from the latest official census issued
causes of similar nature; by the Bureau of the Census and Statistics.

(d) When the work is necessary to prevent loss or SECTION 4. Personnel covered by this Rule. — This
damage to perishable goods; Rule applies to all persons employed by any private or
public hospital or clinic mentioned in Section 1 hereof,
(e) When the completion or continuation of work started and shall include, but not limited to, resident physicians,
before the 8th hour is necessary to prevent serious nurses, nutritionists, dieticians, pharmacists, social
obstruction or prejudice to the business or operations of workers, laboratory technicians paramedical technicians,
the employer; or psychologists, midwives, and attendants.

(f) When overtime work is necessary to avail of favorable SECTION 5. Regular working hours. — The regular
weather or environmental conditions where performance working hours of any person covered by this Rule shall
or quality of work is dependent thereon. not be more than eight (8) hours in any one day nor
more than forty (40) hours in any one week.
In cases not falling within any of these enumerated in
this Section, no employee may be made to work beyond For purposes of this Rule a "day" shall mean a work day
eight hours a day against his will. of twenty-four (24) consecutive hours beginning at the
same time each calendar year. A "week" shall mean the
RULE I-A work of 168 consecutive hours, or seven consecutive 24-
Hours of Work of Hospital and Clinic Personnel hour work days, beginning at the same hour and on the
same calendar day each calendar week.
SECTION 1. General statement on coverage. — This
Rule shall apply to: SECTION 6. Regular working days. — The regular
working days of covered employees shall not be more
(a) All hospitals and clinics, including those with a bed than five days in a work week. The work week may
capacity of less than one hundred (100) which are begin at any hour and on any day, including Saturday or
situated in cities or municipalities with a population of Sunday, designated by the employer.
one million or more; and
Employers are not precluded from changing the time at
(b) All hospitals and clinics with a bed capacity of at least which the work day or work week begins, provided that
one hundred (100), irrespective of the size of the the change is not intended to evade the requirements of
population of the city or municipality where they may be this Rule.
situated.
SECTION 7. Overtime work. — Where the exigencies of
SECTION 2. Hospitals or clinics within the meaning of the service so require as determined by the employer,
this Rule. — The terms "hospitals" and "clinics" as used any employee covered by this Rule may be scheduled to
in this Rule shall mean a place devoted primarily to the work for more than five (5) days or forty (40) hours a
week, provided that the employee is paid for the (10%) of such overtime rate for each hour or work
overtime work an additional compensation equivalent to performed between 10 p.m. to 6 a.m.
his regular wage plus at least thirty percent (30%)
thereof, subject to the provisions of this Book on the SECTION 4. Additional compensation on scheduled rest
payment of additional compensation for work performed day/special holiday. — An employee who is required or
on special and regular holidays and on rest days. permitted to work on the period covered during rest days
and/or special holidays not falling on regular holidays,
SECTION 8. Hours worked. — In determining the shall be paid a compensation equivalent to his regular
compensable hours of work of hospital and clinic wage plus at least thirty (30%) per cent and an additional
personnel covered by this Rule, the pertinent provisions amount of not less than ten (10%) per cent of such
of Rule 1 of this Book shall apply. premium pay rate for each hour of work performed.

SECTION 9. Additional compensation. — Hospital and SECTION 5. Additional compensation on regular


clinic personnel covered by this Rule, with the exception holidays. — For work on the period covered during
of those employed by the Government, shall be entitled regular holidays, an employee shall be entitled to his
to an additional compensation for work performed on regular wage during these days plus an additional
regular and special holidays and rest days as provided in compensation of no less than ten (10%) per cent of such
this Book. Such employees shall also be entitled to premium rate for each hour of work performed.
overtime pay for services rendered in excess of forty
hours a week, or in excess of eight hours a day, SECTION 6. Relation to agreements. — Nothing in this
whichever will yield the higher additional compensation Rule shall justify an employer in withdrawing or reducing
to the employee in the work week. any benefits, supplements or payments as provided in
existing individual or collective agreements or employer
SECTION 10. Relation to Rule I. — All provisions of practice or policy.
Rule I of this Book which are not inconsistent with this
Rule shall be deemed applicable to hospital and clinic 1. Hours of Work
personnel.
a. Regulations; Rationale
RULE II • Manila Terminal Co, Inc. v. CIR. 91 Phil. 625 (1952)
Night Shift Differential FACTS
-Manila Terminal Company, Inc. hereinafter to be
SECTION 1. Coverage. — This Rule shall apply to all referred as to the petitioner, undertook the arrastre
employees except: service in some of the piers in Manila's Port Area at the
request and under the control of the United States Army.
(a) Those of the government and any of its political The petitioner hired some thirty men as watchmen on
subdivisions, including government-owned and/or twelve-hour shifts at a compensation of P3 per day for
controlled corporations; the day shift and P6 per day for the night shift.
(b) Those of retail and service establishments regularly
employing not more than five (5) workers; -The watchmen of the petitioner continued in the service
(c) Domestic helpers and persons in the personal with a number of substitutions and additions, their
service of another; salaries having been raised during the month of
(d) Managerial employees as defined in Book Three of February to P4 per day for the day shift and P6.25 per
this Code; day for the nightshift. The private respondent sent a
(e) Field personnel and other employees whose time letter to Department of Labor requesting that the matter
and performance is unsupervised by the employer of overtime pay be investigated. But nothing was done
including those who are engaged on task or contract by the Dept of Labor.
basis, purely commission basis, or those who are paid a
fixed amount for performing work irrespective of the time -Later on, the petitioner instituted the system of strict
consumed in the performance thereof. eight-hour shifts.

SECTION 2. Night shift differential. — An employee shall -The private respondent filed an amended petition with
be paid night shift differential of no less than ten per cent the Court of Industrial Relations praying, among others,
(10%) of his regular wage for each hour of work that the petitioner be ordered to pay its watchmen or
performed between ten o'clock in the evening and six police force overtime pay from the commencement of
o'clock in the morning. their employment.

SECTION 3. Additional compensation. — Where an -By virtue of Customs Administrative Order No. 81 and
employee is permitted or suffered to work on the period Executive Order No. 228 of the President of the
covered after his work schedule, he shall be entitled to Philippines, the entire police force of the petitioner was
his regular wage plus at least twenty-five per cent (25%) consolidated with the Manila Harvor Police of the
and an additional amount of no less than ten per cent Customs Patrol Service, a Government agency under
the exclusive control of the Commissioner of Customs
and the Secretary of Finance The Manila Terminal Relief -Also, Commonwealth Act 444 expressly provides for
and Mutual Aid Association will hereafter be referred to payment of extra compensation in cases where overtime
as the Association. services are required.
- The point that payment of overtime pay may
-Judge V. Jimenez Yanson of the Court of Industrial lead to ruin of the petitioner can’t be accepted. It is
Relations in his decision ordered the petitioner to pay to significant that not all watchmen should receive back
its police force but regards to overtime service after the overtime pay for the whole period, since the members
watchmen had been integrated into the Manila Harbor entered the firm in different times.
Police, the has no jurisdiction because it affects the -The Eight-Hour Labor Law was designed not only to
Bureau of Customs, an instrumentality of the safeguard the health and welfare of the laborer or
Government having no independent personality and employee, but in a way to minimize unemployment by
which cannot be sued without the consent of the State. forcing employers, in cases where more than 8-hour
operation is necessary, to utilize different shifts of
-The petitioner filed a motion for reconsideration. The laborers or employees working only for eight hours each.
Association also filed a motion for reconsideration in so
far its other demands were dismissed. Both resolutions b. Coverage/Exemptions, Art. 82, 276; Rule I,
were denied. Secs. 1-4

-The public respondent decision was to pay the private Article 82. Coverage. The provisions of this Title shall
respondents their overtime on regular days at the regular apply to employees in all establishments and
rate and additional amount of 25 percent, overtime on undertakings whether for profit or not, but not to
Sundays and legal holidays at the regular rate only, and government employees, managerial employees, field
watchmen are not entitled to night differential pay for personnel, members of the family of the employer who
past services. The petitioner has filed a present petition are dependent on him for support, domestic helpers,
for certiorari. persons in the personal service of another, and workers
who are paid by results as determined by the Secretary
of Labor in appropriate regulations.
ISSUE
-WON overtime pay should be granted to the workers As used herein, "managerial employees" refer to those
whose primary duty consists of the management of the
HELD establishment in which they are employed or of a
YES department or subdivision thereof, and to other officers
-Petitioner stressed that the contract between it and the or members of the managerial staff.
Association stipulates 12 hrs a day at certain rates
including overtime, but the record does not bear out "Field personnel" shall refer to non-agricultural
these allegations. employees who regularly perform their duties away from
-In times of acute employment, people go from office to the principal place of business or branch office of the
office to search for work, and the workers here found employer and whose actual hours of work in the field
themselves required to render 12 hrs a day. True, there cannot be determined with reasonable certainty.
was an agreement, but did the workers have freedom to
bargain much less insist in the observance of the Eight Article 276. Government employees. The terms and
Hour Labor Law? conditions of employment of all government employees,
-We note that after petitioner instituted 8 hr shifts, no including employees of government-owned and
reduction was made in salaries which its watchmen controlled corporations, shall be governed by the Civil
received under the 12 hr agreement. Service Law, rules and regulations. Their salaries shall
-Petitioner’s allegation that the Association had be standardized by the National Assembly as provided
acquiesced in the 12 hr shifts for more than 18 mos is for in the New Constitution. However, there shall be no
not accurate. Only one of the members entered in reduction of existing wages, benefits and other terms
September 1945. The rest followed during the next few and conditions of employment being enjoyed by them at
months. the time of the adoption of this Code.
-The Association can’t be said to have impliedly waived
the right to overtime pay, for the obvious reason that it RULE I
could not have expressly waived it. Hours of Work
-Estoppel and laches can’t also be invoked against
Association. First, it is contrary to spirit of the Eight Hour SECTION 1. General statement on coverage. — The
Labor Law. Second, law obligates employer to observe provisions of this Rule shall apply to all employees in all
it. Third, employee is at a disadvantage as to be establishments and undertakings, whether operated for
reluctant in asserting any claim. profit or not, except to those specifically exempted under
-The argument that the nullity of the employment Section 2 hereof.
contract precludes recovery by the Association of
overtime pay is untenable. The employer may not be
heard to plead its own neglect as exemption or defense.
SECTION 2. Exemption. — The provisions of this Rule SECTION 3. Hours worked. — The following shall be
shall not apply to the following persons if they qualify for considered as compensable hours worked:
exemption under the conditions set forth herein:
(a) Government employees whether employed by the (a) All time during which an employee is required to be
National Government or any of its political subdivision, on duty or to be at the employer's premises or to be at a
including those employed in government-owned and/or prescribed work place; and
controlled corporations;
(b) Managerial employees, if they meet all of the (b) All time during which an employee is suffered or
following conditions: permitted to work.
(1) Their primary duty consists of the management of the
establishment in which they are employed or of a SECTION 4. Principles in determining hours worked. —
department or sub-division thereof. The following general principles shall govern in
(2) They customarily and regularly direct the work of two determining whether the time spent by an employee is
or more employees therein. considered hours worked for purposes of this Rule:
(3) They have the authority to hire or fire employees of (a) All hours are hours worked which the employee is
lower rank; or their suggestions and recommendations required to give his employer, regardless of whether or
as to hiring and firing and as to the promotion or any not such hours are spent in productive labor or involve
other change of status of other employees, are given physical or mental exertion.
particular weight. (b) An employee need not leave the premises of the
(c) Officers or members of a managerial staff if they work place in order that his rest period shall not be
perform the following duties and responsibilities: counted, it being enough that he stops working, may rest
(1) The primary duty consists of the performance of work completely and may leave his work place, to go
directly related to management policies of their elsewhere, whether within or outside the premises of his
employer; work place.
(2) Customarily and regularly exercise discretion and (c) If the work performed was necessary, or it benefited
independent judgment; and the employer, or the employee could not abandon his
(3) (i) Regularly and directly assist a proprietor or a work at the end of his normal working hours because he
managerial employee whose primary duty consists of the had no replacement, all time spent for such work shall
management of the establishment in which he is be considered as hours worked, if the work was with the
employed or subdivision thereof; or (ii) execute under knowledge of his employer or immediate supervisor.
general supervision work along specialized or technical (d) The time during which an employee is inactive by
lines requiring special training, experience, or reason of interruptions in his work beyond his control
knowledge; or (iii) execute, under general supervision, shall be considered working time either if the imminence
special assignments and tasks; and of the resumption of work requires the employee's
(4) Who do not devote more than 20 percent of their presence at the place of work or if the interval is too brief
hours worked in a work week to activities which are not to be utilized effectively and gainfully in the employee's
directly and closely related to the performance of the own interest.
work described in paragraphs (1), (2) and (3) above.
(d) Domestic servants and persons in the personal 1. Government Employees, 1987 Constitution. Art.IX-
service of another if they perform such services in the B, Sec. 2(1); Omnibus Rules, Book III, Rule I, Sec. 2(a)
employer's home which are usually necessary or
desirable for the maintenance and enjoyment thereof, or 1987 Constitution. Art.IX-B, Sec. 2(1)
minister to the personal comfort, convenience, or safety ARTICLE IX
of the employer as well as the members of his CONSTITUTIONAL COMMISSION
employer's household. B. THE CIVIL SERVICE COMMISSION

(e) Workers who are paid by results, including those who Section 2. The civil service embraces all branches,
are paid on piece-work, "takay," "pakiao" or task basis, subdivisions, instrumentalities, and agencies of the
and other non-time work if their output rates are in Government, including government-owned or controlled
accordance with the standards prescribed under Section
corporations with original charters
8, Rule VII, Book Three of these regulations, or where
such rates have been fixed by the Secretary of Labor
Omnibus Rules, Book III, Rule I, Sec. 2(a)
and Employment in accordance with the aforesaid
SECTION 2. Exemption. — The provisions of this Rule
Section.
shall not apply to the following persons if they qualify for
exemption under the conditions set forth herein:
(f) Non-agricultural field personnel if they regularly
perform their duties away from the principal or branch
(a) Government employees whether employed by the
office or place of business of the employer and whose
National Government or any of its political subdivision,
actual hours of work in the field cannot be determined
including those employed in government-owned and/or
with reasonable certainty.
controlled corporations;
2. Managerial Employees, Art. 82; Rule I, Sec. 2 (b) (c)
Article 82. Coverage. The provisions of this Title shall • Asia Pacific Christerning, Inc. v. Farolan, 393 SCRA
apply to employees in all establishments and 454 (2004)
undertakings whether for profit or not, but not to FACTS:
government employees, managerial employees, field Respondent Maria Linda R. Farolan was hired as Sales
personnel, members of the family of the employer who Manager of petitioner for its passenger and cargo GSA
are dependent on him for support, domestic helpers, operations for Scandinavian Airline System (SAS).
persons in the personal service of another, and workers Soon after respondent assumed her post, she
who are paid by results as determined by the Secretary participated in a number of meetings/seminars (technical
of Labor in appropriate regulations. aspects all geared towards improving her marketing and
sales skills)
As used herein, "managerial employees" refer to
those whose primary duty consists of the Respondent, upon instruction of Bondoc
management of the establishment in which they are (VP/Comptroller), submitted a report. As reflected in
employed or of a department or subdivision thereof, respondent’s report, there was a drop in SAS’ sales
and to other officers or members of the managerial revenues which to her was attributable to market forces
staff. beyond her control.

"Field personnel" shall refer to non-agricultural Petitioner directed its high ranking officer Roberto
employees who regularly perform their duties away from Zozobrado to conduct an investigation on the matter and
the principal place of business or branch office of the identify the problem/s and implement possible solutions.
employer and whose actual hours of work in the field Zozobrado thus informally took over some of
cannot be determined with reasonable certainty. respondent’s marketing and sales responsibilities, albeit
respondent retained her title as Sales Manager and
Rule I, Sec. 2 (b) (c) continued to receive her salary as such. Soren
SECTION 2. Exemption. — The provisions of this Rule Jespersen, General Manager of SAS, came to the
shall not apply to the following persons if they qualify for Philippines to assess the statistics on SAS’ sales
exemption under the conditions set forth herein: revenues and SAS was convinced that respondent was
(b) Managerial employees, if they meet all of the not fit for the job of Sales Manager; and in view of the
following conditions: changes introduced by Zozobrado, SAS-GSA sales
(1) Their primary duty consists of the management of the operations drew positive results.
establishment in which they are employed or of a Respondent Farolan nevertheless, received letter from
department or sub-division thereof. Jespersen congratulating him for exceeding sale results
(2) They customarily and regularly direct the work of two in April and a number of recommendations for
or more employees therein. improvement.
(3) They have the authority to hire or fire employees of However, on even date, Petitioner terminated the
lower rank; or their suggestions and recommendations employment of respondent on ground of loss of trust and
as to hiring and firing and as to the promotion or any confidence
other change of status of other employees, are given Thus, respondent filed a complaint for illegal dismissal
particular weight. with prayer for damages and attorney’s fees.
Respondents version: alleged that Bondoc and
(c) Officers or members of a managerial staff if they Zozobrado had asked her to tender her resignation as
perform the following duties and responsibilities: she was not the person whom SAS was looking for to
(1) The primary duty consists of the performance of work handle the position of Sales Manager 9 but that she
directly related to management policies of their refused, hence, she was terminated
employer; LA: ruled in favor of respondent; NLRC: reversed the
(2) Customarily and regularly exercise discretion and ruling of the LA
independent judgment; and CA: Set aside the decision of NLRC
(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of the ISSUE: WON, APC, AS EMPLOYER, HAS THE
management of the establishment in which he is MANAGEMENT PREROGATIVE TO REPLACE A
employed or subdivision thereof; or (ii) execute under SALES MANAGER WHOM IT HAS REASONABLE
general supervision work along specialized or technical GROUNDS TO BELIEVE CANNOT EFFECTIVELY
lines requiring special training, experience, or DISCHARGE THE DUTIES DEMANDED BY SUCH
knowledge; or (iii) execute, under general supervision, POSITION.
special assignments and tasks; and
(4) Who do not devote more than 20 percent of their HELD: NO.
hours worked in a work week to activities which are not Recent decisions of this Court distinguish the treatment
directly and closely related to the performance of the of managerial employees from that of rank and file
work described in paragraphs (1), (2) and (3) above. personnel insofar as the application of the doctrine of
loss of trust and confidence is concerned
MANAGERIAL EMPLOYEES; CONDITIONS THAT • Chariot Peñaranda v. Baganga Plywood Corp., 489
MUST BE MET BEFORE ONE MAY BE CONSIDERED SCRA 94 (2006)
A MANAGERIAL EMPLOYEE. — As enunciated in
Samson v. NLRC, 330 SCRA 460, “Before one may be In June 1999, Peñaranda was hired by Baganga
properly considered a managerial employee, all the Plywood Corporation (owned by Hudson Chua) to take
following conditions must be met: (1) Their primary duty charge of the operations and maintenance of its steam
consists of the management of the establishment in plant boiler. Peñaranda was employed as a
which they are employed or of a department or Foreman/Boiler Head/Shift Engineer tasked to do the
subdivision thereof; (2) They customarily and regularly following tasks among others:
direct the work of two or more employees therein; (3) “1. To supply the required and continuous steam to all
They have the authority to hire or fire other employees of consuming units at minimum cost.
lower rank; or their suggestions and recommendations “2. To supervise, check and monitor manpower
as to the hiring and firing and as to the promotion or any workmanship as well as operation of boiler and
other change of status of other employees are given accessories.
particular weight. (Section 2(b), Rule I, Book III of the “3. To evaluate performance of machinery and
Omnibus Rules Implementing the Labor Code, italics manpower.xxx
supplied). “5. To train new employees for effective and safety while
It is not disputed that her job description, and the terms working.
and conditions of her employment, with the exception of xxx
her salary and allowances, were never reduced to “7. To recommend personnel actions such as:
writing. promotion, or disciplinary action.
By respondent’s claim, her function, as verbally Xxx
explained to her by Murray, dealt mainly with servicing of
existing clientele. Bondoc, however, described In 2001, BPC shut down due to some repairs and
respondent’s functions and duties as critical maintenance. BPC did not technically fire Peñaranda but
due to the latter’s insistence, BPC gave him his
DISMISSAL; LOSS OF TRUST AND CONFIDENCE; separation benefits.
MUST BE BASED ON A WILLFUL BREACH AND
FOUNDED ON CLEARLY ESTABLISHED FACTS; BPC subsequently reopened but Peñaranda did not
BREACH OF DUTIES; WHEN CONSIDERED WILLFUL; reapply.
CASE AT BAR. — Even assuming, however, that
respondent was a managerial employee, the stated Peñaranda now claims that BPC still needed to pay him
ground (in the letter of termination) for her dismissal, his overtime pays and premium pays.
“loss of confidence,” should have a basis and
determination thereof cannot be left entirely to the The NLRC ruled that Peñaranda is a managerial
employer. Loss of trust and confidence to be a valid employee and as such he is not entitled to overtime and
ground for an employee’s dismissal must be based on a premium pay as stated under the Labor Code.
willful breach and founded on clearly established facts. A Peñaranda appealed. He said that he is not a
breach is willful if it is done intentionally, knowingly and managerial employee.
purposely, without justifiable excuse, as distinguished
from an act done carelessly, thoughtlessly, heedlessly or ISSUE: Whether or not Peñaranda is entitled to overtime
inadvertently. Respondent’s detailed REPORT dated and premium pay.
September 8, 1993, relative to SAS profit and loss for HELD: No. Though there is an error made by the NLRC
1993, which was closely examined and analyzed by the in finding Peñaranda as a managerial employee, the
LA contains an explanation of what brought about the Supreme Court still ruled that Peñaranda is not entitled
decline in sales revenues. And it contains too a number to overtime and premium pay.
of recommended measures on improvement of sales for Peñaranda is not a managerial employee. Under the
the remainder of 1993 and for 1994. As did the Labor Implementing Rules and Regulations of the Labor Code,
Arbiter and the Court of Appeals, this Court finds managerial employees are those that perform the
respondent’s explanation in her Report behind the following:
decline in sales revenues as due to market forces “(1) Their primary duty consists of the management of
beyond respondent’s control plausible. In any event, the establishment in which they are employed or of a
there is no showing that the decline is reflective of any department or subdivision thereof;
willful breach of duties by respondent. “(2) They customarily and regularly direct the work of two
or more employees therein;
“(3) They have the authority to hire or fire other
employees of lower rank; or their suggestions and
recommendations as to the hiring and firing and as to
the promotion or any other change of status of other
employees are given particular weight.”
Peñaranda does not meet the above requirements.
Peñaranda is instead considered as a managerial staff. Rule I, Sec. 2 (f)
Under the Implementing Rules and Regulations of the SECTION 2. Exemption. — The provisions of this Rule
Labor Code, managerial staffs are those that perform the shall not apply to the following persons if they qualify for
following: exemption under the conditions set forth herein:
“(1) The primary duty consists of the performance of (f) Non-agricultural field personnel if they regularly
work directly related to management policies of the perform their duties away from the principal or branch
employer; office or place of business of the employer and whose
“(2) Customarily and regularly exercise discretion and actual hours of work in the field cannot be determined
independent judgment; with reasonable certainty.
“(3) (i) Regularly and directly assist a proprietor or a
managerial employee whose primary duty consists of the • Merdicar Fishing Corp. v. NLRC, 297 SCRA 440 (1998)
management of the establishment in which he is FACTS:
employed or subdivision thereof; or (ii) execute under -This case originated from a complaint filed by Agao
general supervision work along specialized or technical against petitioner for illegal dismissal, violation of P.D.
lines requiring special training, experience, or No. 851, and non-payment of five days SIL.
knowledge; or (iii) execute under general supervision -Private respondent had been employed as a “bodegero”
special assignments and tasks; and or ship’s quartermaster. He complained that he had
“(4) who do not devote more than 20 percent of their been constructively dismissed by petitioner when the
hours worked in a workweek to activities which are not latter refused him assignments aboard its boats.
directly and closely related to the performance of the -Private respondent alleged that he had been sick and
work described in paragraphs (1), (2), and (3) above.” thus allowed to go on leave without pay for one month
Peñaranda’s function as a shift engineer illustrates that but that when he reported to work at the end of such
he was a member of the managerial staff. His duties and period with a health clearance, he was told to come back
responsibilities conform to the definition of a member of another time as he could not be reinstated immediately. -
a managerial staff under the Implementing Rules. -Thereafter, petitioner refused to give him work.
Peñaranda supervised the engineering section of the -Petitioner, on the other hand, alleged that it was private
steam plant boiler. His work involved overseeing the respondent who actually abandoned his work. It claimed
operation of the machines and the performance of the that the latter failed to report for work after his leave had
workers in the engineering section. This work expired and was, in fact, absent without leave for three
necessarily required the use of discretion and months .
independent judgment to ensure the proper functioning -Labor Arbiter Amansec rendered a decision ordering
of the steam plant boiler. respondents to reinstate complainant with backwages,
Further, Peñaranda in his position paper admitted that pay him his 13th month pay and incentive leave pay.
he was a supervisor for BPC. As supervisor, petitioner is -Petitioner appealed to the NLRC which dismissed the
deemed a member of the managerial staff. appeal for lack of merit. The NLRC dismissed
petitioner’s claim that it cannot be held liable for SIL pay
3. Field Personnel, Art. 82, Rule I, Sec. 2(f) by fishermen in its employ as the latter supposedly are
Article 82. Coverage. The provisions of this Title shall “field personnel” and thus not entitled to such pay under
apply to employees in all establishments and the Labor Code.
undertakings whether for profit or not, but not to
government employees, managerial employees, field ISSUE: is Agao a field employee, hence not entitled to
personnel, members of the family of the employer who SIL pay?
are dependent on him for support, domestic helpers,
persons in the personal service of another, and workers HELD: WHEREFORE, the petition is DISMISSED
who are paid by results as determined by the Secretary NO; Agao is NOT a field employee, he is entitled to SIL
of Labor in appropriate regulations. pay
Art. 82 of the Labor Code provides:
As used herein, "managerial employees" refer to those Art. 82. Coverage. — The provisions of this Title
whose primary duty consists of the management of the [Working Conditions and Rest Periods] shall apply to
establishment in which they are employed or of a employees in all establishments and undertakings
department or subdivision thereof, and to other officers whether for profit or not, but not to government
or members of the managerial staff. employees, field personnel, members of the family of the
employer who are dependent on him for support,
"Field personnel" shall refer to non-agricultural domestic helpers, persons in the personal service of
employees who regularly perform their duties away another, and workers who are paid by results as
from the principal place of business or branch office determined by the Secretary of Labor in appropriate
of the employer and whose actual hours of work in regulations.
the field cannot be determined with reasonable xxx xxx xxx
certainty. “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 -Auto Bus’ Defenses:
cannot be determined with reasonable certainty. 1. Bautista’s employment was replete with offenses
Petitioner argues essentially that since the work of involving reckless imprudence, gross negligence, and
private respondent is performed away from its principal dishonesty supported with copies of letters, memos,
place of business, it has no way of verifying his actual irregularity reports, warrants of arrest;
hours of work on the vessel. It contends that private 2. In the exercise of management prerogative, Bautista
respondent and other fishermen in its employ should be was terminated only after providing for an opportunity to
classified as “field personnel” who have no statutory right explain:
to SIL pay. -Labor Arbiter dismissed the complaint however
awarded Bautista his 13thmonth pay and service
In the case of Union of Pilipro Employees (UFE) v. Vicar, incentive leave pay.
this Court explained the meaning of the phrase “whose -Auto Bus appealed. NLRC deleted the 13th month pay
actual hours of work in the field cannot be determined award. In the CA, NLRC’s decision was affirmed.
with reasonable certainty” in Art. 82 of the Labor Code,
as follows: Issue: Whether or not respondent is entitled to service
Moreover, the requirement that “actual hours of work in incentive leave pay.
the field cannot be determined with reasonable certainty”
must be read in conjunction with Rule IV, Book III of the Held: Yes.
Implementing Rules which provides: Under Article 95 of the Labor Code, every employee who
Rule IV Holidays with Pay has rendered at least one year or service shall be
Sec. 1. Coverage — This rule shall apply to all entitled to a yearly service incentive leave of five days
employees except: with pay. In Section 1, Rule V, Book III of the
xxx xxx xxx Implementing Rules and Regulations of the Labor Code,
(e) Field personnel and other employees whose time the rule shall apply to all, except…
and performance is unsupervised by the employer . . . (d) Field personnel and other employees whose
(Emphasis supplied). performance is unsupervised by the employer including
Petitioner in said case is contending that such rule those who are engaged on task or contract basis, purely
added another element not found in the law. Contrary to commission basis, or those who are paid in a fixed
the contention of the petitioner, the Court finds that the amount for performing work irrespective of the time
aforementioned rule did not add another element to the consumed in the performance thereof.
Labor Code definition of field personnel. The clause
“whose time and performance is unsupervised by the Petitioner’s contention that Bautista is not entitled to
employer” did not amplify but merely interpreted and service incentive leave because he is paid on a purely
expounded the clause “whose actual hours of work in commission basis must fail. The phrase following “Field
the field cannot be determined with reasonable personnel” should not be construed as a separate
certainty.” The former clause is still within the scope and classification of employees but is merely an amplification
purview of Article 82 which defines field personnel. of the definition of field personnel defined under the
Hence, in deciding whether or not an employee’s actual Labor Code.
working hours in the field can be determined with
reasonable certainty, query must be made as to whether Bautista neither falls under the category field personnel.
or not such employee’s time and performance is As defined, field personnel are those whose
constantly supervised by the employer performance of service is unsupervised by the employer,
In the case at bar, during the entire course of their the workplace being away from the principal place of
fishing voyage, fishermen employed by petitioner have business and whose hours and days of work cannot be
no choice but to remain on board its vessel. Although determined with reasonable certainty. Bus companies
they perform non-agricultural work away from petitioner’s have ways of determining the hours worked by their
business offices, the fact remains that throughout the drivers and conductors with reasonable certainty.
duration of their work they are under the effective control The courts have taken judicial notice of the following:
and supervision of petitioner through the vessel’s patron 1. Along the routes traveled, there are inspectors
or master as the NLRC correctly held. assigned at strategic places who board the bus to
inspect the passengers, the punched tickets, and the
• Auto Bus Transports Systems, Inc. v. Bautista, 458 conductor’s reports;
SCRA 578 (2005) 2. There is a mandatory once-a week car barn or shop
Facts: day, where the bus is regularly checked;
-Bautista, a driver-conductor of the Autobus transport, 3. The drivers and conductors must be at specified place
was dismissed after his failure to pay an amount and time, as they observe prompt departure and arrival;
demanded by the company for the repair of the bus 4. At every depot, there is always a dispatcher whose
damaged in an accident caused by him. He receives function is to see to it that the bus and crew leaves and
compensation by way of commission per travel. arrives at the estimated proper time.
-Bautista complained for illegal dismissal with money By these reasons, drivers and conductors are therefore
claims for nonpayment of 13th month pay and service under constant supervision while in the performance of
incentive leave pay against Autobus. their work.
4. Dependent Family Members • Labor Congress v. NLRC, 290 SCRA 509 (1998)
FACTS:
- Private petitioners, represented by Labor Congress of
5. Domestic Helpers, Art. 141, 145; Rule I, Sec. 2 (d) the Philippines (LCP), are rank-and-file employees of
Article 141. Coverage. This Chapter shall apply to all respondent Empire Food Products.
persons rendering services in households for - Petitioners filed a complaint against Empire, praying for
compensation. money claims and direct certification of Labor Congress
Article 145. Assignment to non-household work. as their bargaining representative.
No househelper shall be assigned to work in a - Oct. 1990 - LCP and Empire entered into a
commercial, industrial or agricultural enterprise at a Memorandum of Agreement (MOA), providing:
wage or salary rate lower than that provided for A) LCP is recognized as the sole bargaining
agricultural or non-agricultural workers as prescribed representative of the employees.
herein. B) To adjust the wages of the employees.
C) Deduct Union dues to the payroll
"Domestic or household service" shall mean service in - Nov. 9, 1990 - LCP submitted to Empire a proposal for
the employer’s home which is usually necessary or collective bargaining.
desirable for the maintenance and enjoyment thereof - Jan. 29, 1991 - LCP filed a complaint against Empire,
and includes ministering to the personal comfort and alleging:
convenience of the members of the employer’s A) Unfair labor practices
household, including services of family drivers. ( illegal lockout, dismissal)
B) Union busting
Rule I, Sec. 2 (d) C) Violation of MOA
SECTION 2. Exemption. — The provisions of this Rule D) Underpayment of wages
shall not apply to the following persons if they qualify for E) Other damages
exemption under the conditions set forth herein: - The Labor Arbiter ruled IN FAVOR of Empire, but
(d) Domestic servants and persons in the personal ordered the reinstatement of the employees who
service of another if they perform such services in the resigned and those who signed quitclaims and releases.
employer's home which are usually necessary or - Upon appeal, NLRC remanded the case back to the
desirable for the maintenance and enjoyment thereof, or Labor Arbiter
minister to the personal comfort, convenience, or safety - The Labor Arbiter, and AFFIRMED by NLRC, ruled
of the employer as well as the members of his that:
employer's household. A) no prima facie evidence of existence of unfair labor
practice, etc.
6. Persons in the Personal Service of Another, Rule B) Employees were piece-rate workers, hence not
I, Sec. 2 (d) entitles to benefits
C) Not underpaid
Rule I, Sec. 2 (d)
SECTION 2. Exemption. — The provisions of this Rule ISSUE/S:
shall not apply to the following persons if they qualify for 1) Whether the petitioners who are piece-rate workers
exemption under the conditions set forth herein: are entitled to benefits
(d) Domestic servants and persons in the personal 2) Whether they are considered regular employees
service of another if they perform such services in the
employer's home which are usually necessary or HELD: They are piece-rate workers; they are entitled to
desirable for the maintenance and enjoyment thereof, or benefits; they are regular employees
minister to the personal comfort, convenience, or safety
of the employer as well as the members of his RATIO: They are piece-rate workers. They are entitled to
employer's household. full backwages, however, the amount is indeterminate,
hence, there is need to determine the varying degrees of
7. Piece Workers, Rule I, Sec. 2 (e) production and days worked by each worker.
SECTION 2. Exemption. — The provisions of this Rule They are REGULAR EMPLOYESS although they are
shall not apply to the following persons if they qualify for paid in piece-rate basis, based on the following factors:
exemption under the conditions set forth herein: (a) their job is necessary and desirable in the usual
(e) Workers who are paid by results, including those who business of Empire,
are paid on piece-work, "takay," "pakiao" or task basis, (b) petitioners work for them throughout the year, their
and other non-time work if their output rates are in employment NOT HAVING BEEN DEPENDENT on a
specific season, and
accordance with the standards prescribed under Section
(c) the length of time they worked for Empire.
8, Rule VII, Book Three of these regulations, or where Thus, “while petitioners mode of compensation was on a
such rates have been fixed by the Secretary of Labor ‘per piece basis’, the status and nature of their
and Employment in accordance with the aforesaid employment was that of regular employees.”
Section. PETITION: GRANTED
c. Normal Hours of Work, Art. 83 Omnibus Rules, Rule I, Sec. 3 (b)
Article 83. Normal hours of work. The normal hours of SECTION 3. Hours worked. — The following shall be
work of any employee shall not exceed eight (8) hours a considered as compensable hours worked:
day. (b) All time during which an employee is suffered or
permitted to work.cralaw
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)

Article 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.

Omnibus Rules, Rule I, Sec. 3 (a), Sec. 4(a)


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.

2. At Work, Art. 84 (b); Rule I, Sec. 3 (b)


Article 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.