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Civil Code Provisions: 6. withholding tax

1705 – laborer’s wages shall be paid in legal currency 7. Salary deductions of a member of a legally
1706 – withholding the wages, except for a debt due, established cooperative
shall not be made by the employer 8. SSS, medicare, and pag-ibig contributions
1707 – the laborer’s wages shall be a lien on the goods
manufactured on the work done Payment to Third Person – an employee’s payment of
1708 – the laborer’s wages shall not be subject to obligation to a third person is deductible from the
execution or attachment, except for debts employee’s wages if the deduction is authorized in
incurred for food, shelter, clothing and medical writing by the employee. The employer may agree to
attendance. make the deduction BUT IS NOT OBLIGED to do so. He
1709 – the employer shall neither seize nor retain any must not receive pecuniary benefit, directly or
tool or other articles belonging to the laborer indirectly, from the transaction.

Penalty for violation of Art 112: Prohibitions Regarding Wages: Wage Deductions
> any violation subjects the offender to the general  The LC in requiring an individual written
penalty clause under Art 288 of LC imposing authorization as a prerequisite to wage deductions,
a. a fine of not less than php 1000 nor more than P seeks to protect the employee against unwarranted
10, 000 or practices that would diminish his compensation
b. imprisonment for not less than 3 mos nor more without his knowledge and consent
than 3 yrs or
c. both Deductions for absences
GR: allowed.
> RPC: arresto mayor or a fine ranging from 200 to 500 If employee is monthly paid, determine equivalent daily
php, or both, upon any person, agent, or officer of rate before making the deduction
association or corp, who shall force or compel, directly - [(MR*12)/number of days considered paid in a yr]
or indirectly, or shall knowingly permit any laborer or
employee employed by him or by such firm or Reduced pay because of reduced work days
corporation, to be forced or compelled, to purchase  Right to reduce Workdays: where the reduction is
merchandise or commodities of any kind. resorted by employer to prevent serious losses due
to causes beyond his control, the reduction was held
Art 113. Wage Reduction by the Bureau of Working Conditions as valid.
GR: No employer, in his own behalf or in behalf of any
person, shall make any deduction from wages in It is generally recognized that an employer has the
employees prerogative to devise and adopt necessary remedial
 Except: measures to save his business from serious losses
- where the worker is insured with his consent by that may eventually result in its total collapse
the employer, and deduction is to recompense
the employer for the amount paid by him as Prerogative flows from the right of ownership of
premium on the insurance property which includes the right of an employer to
- for union dues, in cases where the right of the manage, control, and protect his property in a
worker or his union to check-off has been manner that is not contrary to law, morals and public
recognized by the employer or authorized in policy.
writing by the individual worker concerned
- where the employer is authorized by law or Reduction of Wage/Allowances
regulations issued by the Secretary of Labor  This Bureau is also of the view that the employer
may deduct the wages and living allowances
Deductions authorized by law: corresponding to the days taken off from the
1. Deduction for value of meals and other facilities workweek, in the absence of an agreement
2. In cases where the employee is insured with his specifically providing that a reduction in the number
consent by the employer, deductions for the amount of workdays will not adversely affect the
paid by said employer, as premiums on the insurance remuneration of the employees.
3. In cases where the right of the employees or his
union to check off has been recognized by the  Generally, absence of such agreement gives rise to a
employer or authorized in writing by the individual disputable presumption that the initial
concerned understanding of the parties at the time of
4. in cases where the employee is indebted to the engagement of the employees is that the latter would
employer, where such indebtedness has become due be paid only for the number of days actually worked,
and demandable which number will depend on the availability of
5. in court awards, wages may be the subject of work in a week or within a payroll period.
execution or attachment, but only for debts incurred Principle of ‘no-work-no-pay’. Furthermore,
for food, shelter, clothing, and medical attendance considering that reduction of workday is resorted to

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by an employer precisely to save on operating costs  Illegal Deposit

to prevent losses, it would be unfair to require him to
pay the wages and living allowances even on Art. 114 provides the rule on deposits for loss or
unworked days that were taken off from the regular damage to tools, materials, or equipment supplied by
workweek. the employer.

Reduction of Workdays: Effect on Wages  Deduction for loss or damage

 Where the employer reduce the number of regular According to implementing rules, payments for lost
work days to prevent serious losses, such as when or damaged equipment is deductible from the
there is a substantial slump in the demand for employee’s salary if 4 conditions are met, namely:
his/her good or services or when there is law of raw 1. the employee is clearly shown to be responsible
materials, the employer may deduct the wages for the loss or damage
corresponding to the days taken off from the work 2. the employee is given ample opportunity to show
week, consistent with the principle of no work no cause why deduction should not be made;
pay. 3. the amount of the deduction is fair and reasonable
and shall not exceed the actual loss or damage;
Unjustified Work Reduction: Constructive Dismissal 4. the deduction from the employee’s wage does not
 Reduction of work days also reduces the employee’s exceed 20% of the employee’s wage in a week
income cannot be regarded as a standard or routine
employer’s recourse. An extreme measure, Art 116. Withholding of Wages and Kickbacks
approximating loss of the worker’s source of Prohibited. — It shall be unlawful for any person,
livelihood, that needs solid justification, namely the directly or indirectly, to withhold any amount from the
occurrence of severe financial losses. The losses wages of a worker or induce him to give up any part of
must be shown by evidence. his wages by force, stealth, intimidation, threat or
dismissal or by any other means whatsoever without
Main consideration in determining the validity of the worker’s consent.
reduction of working hours (or working days) is that
the company is suffering from losses. Art 117. Deduction to Ensure Employment. — It shall
be unlawful to make any deduction from the wages of
While no definite guidelines have yet been set to any employee for the benefit of the employer or his
determine what losses sufficiently justify reduction of representative or intermediary as consideration of a
work hours, certain standards must be approximated promise of employment or retention in employment.
similar to those applicable to cases of retrenchment or
suspension of work. ART. 118. Retaliatory Measures. — It shall be
unlawful for an employer to refuse to pay, reduce the
Unjustified Work Reduction: Constructive Dismissal and wages, discharge or in any manner discriminate against
ULP any employee who has filed any complaint or instituted
any proceeding under this Title.
 Reducing workdays should be done in good faith,
Dismissal as Retaliation
not as a means to retaliate against employees who
unionized.  Dismissal of an employee is illegal where it was
shown to be a consequence of his having filed a
Art 114. Deposits for loss or damage complaint against his employer who pays a
subminimum wage.
No employer shall require his worker to make deposits
from which deductions shall be made for the Art 119. False Reporting - It shall be unlawful for any
reimbursement of loss of or damage to tools, materials, person to make any statement, report, or record filed or
or equipment supplied by the employer, except when kept pursuant to the provisions of this Code knowing
the employer is engaged in such trades, occupations or such statement, report or record to be false in any
businesses where the practice of making deductions or material respect.
requiring deposits is a recognized one, or is necessary
or desirable as determined by the Secretary of Labor m Records an Employer Must Keep:
appropriate rules and regulations. 1. Length of time to paid;
2. Rate of pay per month, week, day or hours, piece, etc.
Art 115. Limitations 3. Amount due for regular work;
4. Amount due for overtime work;
No deduction from the deposits of an employee for the 5. Deductions made from the wages; and
actual amount of the loss or damage shall be made 6. Amount actually paid.
unless the employee has been heard thereon, and his
responsibility has been clearly shown.

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Art. 120. Creation of National Wages and "The Regional Boards shall have the following powers
Productivity Commission and functions in their respective territorial jurisdiction:
There is hereby created a National Wages and
Productivity Commission, hereinafter referred to as the (a) To develop plans, programs and projects relative to
Commission, which shall be attached to the Depatment wages, incomes and productivity improvement for
of Labor and Employment [DOLE] for policy and their respective regions;
program coordination. (b) To determine and fix minimum wage rates
applicable in their region, provinces or industries
The NWPC therein and to issue the corresponding wage orders,
The National Wages and Productivity Commission was subject to guidelines issued by the Commission;
created by RA No. 6727, Wage Rationalization Act. The (c) To undertake studies, researches, and surveys
NWPC and NPC under EO 615. necessary for the attainment of their functions,
objectives and programs, and to collect and compile
Art 121. Powers and Functions of the Commission data on wages, incomes, productivity and other
The Commission shall have the following powers and related information and periodically disseminate the
functions: same;
(a) To act as the national consultative and advisory (d) To coordinate with the other Regional Boards as
body to the President of the Philippines and Congress may be necessary to attain the policy and intention
on matters relating to wages, incomes and productivity; of this Code;
(b) To formulate policies and guidelines on wages, (e) To receive, process and act on applications for
incomes and productivity improvement at the exemption from prescribed wage rates as may be
enterprise, industry and national levels; provided by law or any Wage Order; and
(c) To prescribe rules and guidelines for the (f) To exercise such other powers and functions as may
determination of appropriate minimum wage and be necessary to carry out their mandate under this
productivity measures at the regional, provincial or Code.
industry levels;
(d) To review regional wage levels set by the Regional PURPOSE OF CREATING THE RTWPB
Tripartite Wages and Productivity Boards to determine RA 6727 – intention was to rationalize wages, first, by
if these are in accordance with prescribed guidelines providing for full-time boards to police wages round-
and national development plans; the-clock, and second, by giving the boards enough
(e) To undertake studies, researches and surveys powers to achieve this objective.
necessary for the attainment of its functions and
objectives, and to collect and compile data and Art. 123. Wage Order. - Whenever conditions in the
periodically disseminate information on wages and region so warrant, the Regional Board shall investigate
productivity and other related information, including, and study all pertinent facts; and, based on the
but not limited to, employment, cost-of-living, labor standards and criteria herein prescribed, shall proceed
costs, investments and returns; to determine whether a Wage Order should be issued.
(f) To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to determine Any such Wage Order shall take effect after fifteen (15)
whether these are consistent with national days from its complete publication in at least one (l)
development plans; newspaper of general circulation in the region.
(g) To exercise technical and administrative supervision
over the Regional Tripartite Wages and Productivity "In the performance of its wage-determining functions,
Boards; the Regional Board shall conduct public hearings/
(h) To call, from time to time, a national tripartite consultations, giving notices to employees' and
conference of representatives of government, workers employers' groups, provincial, city and municipal
and employers for the consideration of measures to officials and other interested parties.
promote wage rationalization and productivity; and
(i) To exercise such powers and functions as may be "Any party aggrieved by the Wage Order issued by the
necessary to implement this Act. Regional Board may appeal such order to the
Commission within ten (l0) calendar days from the
Art. 122. Creation of Regional Tripartite Wages and publication of such order. It shall be mandatory for the
Productivity Boards. - There is hereby created Commission to decide such appeal within sixty (60)
Regional Tripartite Wages and Productivity Boards, calendar days from the filing thereof.
hereinafter referred to as Regional Boards, in all regions,
including autonomous regions as may be established by "The filing of the appeal does not operate to stay the
law. order unless the person appealing such order shall file
with the Commission an undertaking with a surety or
The Commission shall determine the offices/ sureties satisfactory to the Commission for the payment
headquarters of the respective Regional Boards. to the employees affected by the order of corresponding
increase, in the event such order is affirmed.”

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Review of Wage Order – The Commission may review (f) Improvements in standards of living;
the Wage Order issued by the Board motu proprio or (g) The prevailing wage levels;
upon appeal. (h) Fair return of the capital invested and capacity to
An appeal may be filed on the following grounds: pay of employers;
1. Non – conformity with prescribed guidelines and/or (i) Effects on employment generation and family
procedure; income; and
2. Questions of law (j) The equitable distribution of income and wealth
3. Grave abuse of discretion along the imperatives of economic and social
RTWPB, not NWPC, approves Wage Order
- NWPC prescribes rules and guidelines for TWO METHODS OF MINIMUM WAGE ADJUSTMENT
determination of appropriate minimum wage and 1. involves the fixing of determinate amount that would
productivity measures at the regional, provincial, or be added to the prevailing statutory minimum wage
industry levels. 2. other involves “the salary-ceiling method” whereby
the wage adjustment is applied to employees
RTWPBs are empowered “to determine and fix receiving a certain denominated salary ceiling.
minimum wage rates applicable in their regions” and “to
issue the corresponding wage orders.”  Floor wage order Does not Require Across the
Board Pay Increase.
Labor Code does not require NWPC’s approval of a wage
order. What it requires is for the wage board to conduct Where the wage order prescribes a minimum
a public hearing over a petition or the wage order, to or floor wage, to upgrade the wages of
decide such petition within thirty (30) days after the employees receiving less than the minimum
last hearing, and to “furnish the Commission a copy of wage set by the Order, the employer cannot be
the decision on the petition or wage order.” compelled to grant an across-the-board
increase to its employees who, at the time of
Appeal – NPWC has the power to review regional wage the promulgation of the wage order, were
levels, to review plans and programs already being paid more than the existing
minimum wage.
Guidelines from RTWPB
Minimum wage [Reasons]
Wage Rationalization Act, grants National Wages and  Underlying effort of the State to promote
Productivity Commission power to prescribe rules and productivity improvement and gain sharing
guidelines for the determination of appropriate wages measures to ensure a decent standard of living
in the country. Hence “guidelines” issued by RTWPB for the workers and their families; to guarantee
without the approval of or, worse, contrary to those the rights of the labor to its just share in the
promulgated by the NWPC are ineffectual, void, and fruits of production; to enhance employment
cannot be the source of rights and privileges. generation in the countryside through industry
dispersal and to allow business and industry
PUBLIC HEARINGS AND PUBLICATION, MANDATORY and reasonable returns on investment,
expansion and growth
Art. 124. Standards/Criteria for Minimum Wage  To affirm labor as a primary social economic
Fixing. force. The statute would have no need for a
wage board if the question were simply “how
The regional minimum wages to be established by the much”
Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum Wage Distortion:
standards of living necessary for the health, efficiency  A situation where an increase in prescribed
and general well-being of the employees within the wage rates results in the elimination or severe
framework of the national economic and social contraction of intentional quantitative
development program. In the determination of such differences in wage or salary rates between and
regional minimum wages, the Regional Board shall, among employee groups such wage structure
among other relevant factors, consider the following: based on skills, length of service, other logical
bases of differentiation
(a) The demand for living wages;  Is the effect of increasing the pay of an
(b) Wage adjustment vis-à-vis the consumer price employee to such an amount that equals,
index; almost equals or overtakes another employee’s
(c) The cost of living and changes or increases therein; pay which has not been similarly increased.
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the Intentional quantitative differences:

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 Differences among job-pay grades under Art. employers who grant their workers more than the
124. Where jobes are given quantitative ratings statutory prescribed minimum rates of increases.
based on such factors such as skills, or
education, degree of responsibility, physical Summation of Principles of Salary Distortion
effort, work condition, and complexity of duties. [National Federation Labor v. NLRC 1994]
(a) The concept of wage distortion assumes an existing
For a distortion to exist, the law does not require an grouping or classification of employees which
elimination or total abrogation of quantitative wage or establishes distinctions among such employees on
salary differences; a severe contraction thereof is some relevant or legitimate basis. This classification
enough. is reflected in a deferring wage rate for each of the
existing classes of employees.
Salary Reconstructing: What is NOT Distortion (b) Wage distortions have often been the result of
 the distortion referred to in Art 124 is one government-decreed increases in minimum wages.
arising from compliance with a wage order. It There are, however, other causes of wage
does not refer to a revision of salary scale distortions, like the merger of two (2) companies
initiated by the employer. (with differing classifications of employees and
 is properly a matter of management judgment different wage rates) where the surviving company
and discretion, and ultimately, a subject matter absorbs all the employees of the dissolved
for bargaining negotiations between employer corporation. (In the present Metro case, as already
and employees. noted, the wage distortion arose because the
effectivity dates of wage increases given to each of
Absent any indication that the voluntary increase of the two (2) classes of employees (rank-and-file and
salary rates by an employer was done arbitrarily and supervisory) had not been synchronized in their
illegally for the purpose of circumvention of the law and respective CBAs.)
was devoid of any legitimate purpose other than to (c) Should a wage distortion exist, there is no legal
discriminate against the regular employees, this Court requirement that, in the rectification of that
will not step into interfere with this management distortion by re-adjustment of the wage rates of the
prerogative. differing classes of employees, the gap which had
previously or historically existed be restored
 Employees are not precluded from negotiating in precisely the same amount. In other words,
with its employer and lobby for wage increase correction of a wage distortion may be done by re-
through appropriate channels such as through establishing a substantial orsignificant gap (as
CBA. distinguished from the historical gap) between the
wage rates of the differing classes of employees.
Ways to Correct Distortion (d) The re-establishment of a significant difference in
 legislative intent is to encourage the parties to wage rates may be the result of resort to grievance
seek solution to the problem of wage procedures or collective bargaining negotiations.
distortions through voluntary negotiation or
arbitration, rather than strikes, lockouts, or Wage Distortion: Nonstrikeable
other concerted activities of the employees or If wage or salary distortion results from implementation
management. of a wage order, the employer and the union shall
 Recognition and validation of wage increases negotiate to correct the distortion. The distortion
given by employers either unilaterally or as a dispute should be resolved through grievance
result of a CBA negotiation for the purpose of procedure or voluntary arbitration or in the absence of
correcting wage distortion are in keeping with CBA, through NCMB or LA.
public policy of encouraging employers to grant
wage and allowance increases to their Liability of Contractor’s Principal in Certain Industries
employees which are higher than the minimum RA No. 6727 – has specific provision on the liability of
rates of increases prescribed by statute or the principal for wage rate increases for construction
administrative regulation. and similar workers.

FORMULA FOR WAGE DISTORTION: It states in Sec. 6. In the case of contracts for
construction projects and for security, janitorial and
Existing Minimum Wage = % x Prescribed Wage similar services, the prescribed increases in the wage
Actual Salary of Employee Increase = Distortion rates of the workers shall be borne by the principals or
Adjustment amount clients of the construction/service contractors and the
contract shall be deemed amended accordingly. In the
Rectification Need Not be Across the Board event, however, that the principal or client fails to pay
To compel employers simply to add on legislated the prescribed wage rates, the construction/service
increases in salaries or allowances without regard to contractor shall be jointly and severally liable with his
what is already being paid, would be to penalize principal or client.

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ART. 125: Freedom to Bargain

No wage order shall be construed to prevent workers in The Secretary of Labor and Employment may likewise
particular firms or enterprises of industries from order stoppage of work or suspension of operations of
bargaining for higher wages with their respective any unit or department of an establishment when non-
employer. compliance with the law or implementing rules and
regulations poses grave and imminent danger to the
Art. 126. Prohibition Against Injunction. health and safety of workers in the workplace. Within
No preliminary or permanent injunction or temporary twenty-four hours, a hearing shall be conducted to
restraining order may be issued by any court, tribunal determine whether an order for the stoppage of work or
or other entity against any proceedings before the suspension of operations shall be lifted or not. In case
Commission or the Regional Boards. the violation is attributable to the fault of the employer,
he shall pay the employees concerned their salaries or
Art. 127. Non-Diminution of Benefits. wages during the period of such stoppage of work or
No Wage Order issued by any Regional Board shall suspension of operation.
provide for wage rates lower than the statutory
minimum wage rates prescribed by It shall be unlawful for any person or entity to obstruct,
Congress." impede, delay or otherwise render ineffective the
orders of the Secretary of Labor and Employment or his
Chapter VI: ADMINISTRATION AND ENFORCEMENT duly authorized representatives issued pursuant to the
authority granted under this Article, and no inferior
Art. 128. Visitorial and enforcement power. court or entity shall issue temporary or permanent
The Secretary of Labor and Employment or his duly injunction or restraining order or otherwise assume
authorized representatives, including labor regulation jurisdiction over any case involving the enforcement
officers, shall have access to employer’s records and orders issued in accordance with this Article.
premises at any time of the day or night whenever work
is being undertaken therein, and the right to copy Any government employee found guilty of violation of,
therefrom, to question any employee and investigate or abuse of authority, under this Article shall, after
any fact, condition or matter which may be necessary to appropriate administrative investigation, be subject to
determine violations or which may aid in the summary dismissal from the service.
enforcement of this Code and of any labor law, wage
order or rules and regulations issued pursuant thereto. The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep and
Notwithstanding the provisions of Articles 129 and 217 maintain such employment records as may be necessary
of this Code to the contrary, and in cases where the in aid of his visitorial and enforcement powers under
relationship of employer-employee still exists, the this Code.
Secretary of Labor and Employment or his duly
authorized representatives shall have the power to Art. 129. Recovery of wages, simple money claims
issue compliance orders to give effect to the labor and other benefits.
standards provisions of this Code and other labor
legislation based on the findings of labor employment Upon complaint of any interested party, the Regional
and enforcement officers or industrial safety engineers Director of the Department of Labor and Employment
made in the course of inspection. The Secretary or his or any of the duly authorized hearing officers of the
duly authorized representatives shall issue writs of Department is empowered, through summary
execution to the appropriate authority for the proceeding and after due notice, to hear and decide any
enforcement of their orders, except in cases where the matter involving the recovery of wages and other
employer contests the findings of the labor employment monetary claims and benefits, including legal interest,
and enforcement officer and raises issues supported by owing to an employee or person employed in domestic
documentary proofs which were not considered in the or household service or househelper under this Code,
course of inspection. (As amended by Republic Act No. arising from employer-employee relations: Provided,
7730, June 2, 1994). That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate
An order issued by the duly authorized representative money claims of each employee or househelper does
of the Secretary of Labor and Employment under this not exceed Five thousand pesos (P5,000.00). The
Article may be appealed to the latter. In case said order Regional Director or hearing officer shall decide or
involves a monetary award, an appeal by the employer resolve the complaint within thirty (30) calendar days
may be perfected only upon the posting of a cash or from the date of the filing of the same. Any sum thus
surety bond issued by a reputable bonding company recovered on behalf of any employee or househelper
duly accredited by the Secretary of Labor and pursuant to this Article shall be held in a special deposit
Employment in the amount equivalent to the monetary account by, and shall be paid on order of, the Secretary
award in the order appealed from. (As amended by of Labor and Employment or the Regional Director
Republic Act No. 7730, June 2, 1994) directly to the employee or househelper concerned. Any

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such sum not paid to the employee or househelper 5. RTWPB – determines minimum wage in region and
because he cannot be located after diligent and issue wage orders subject to the guidelines set by NWPC.
reasonable effort to locate him within a period of three
(3) years, shall be held as a special fund of the ENFORCEMENT OF DO NO. 57-04
Department of Labor and Employment to be used The Labor Standards Enforcement Framework [LSEF]
exclusively for the amelioration and benefit of workers. shall ensure compliance with labor standards through
Any decision or resolution of the Regional Director or the following:
hearing officer pursuant to this provision may be a. Self-assessment. This voluntary mode shall be
appealed on the same grounds provided in Article 223 encouraged in establishments with at least 200
of this Code, within five (5) calendar days from receipt workers. It shall also apply to unionized
of a copy of said decision or resolution, to the National establishments with Certified Collective Bargaining
Labor Relations Commission which shall resolve the Agreement regardless of the number of workers.
appeal within ten (10) calendar days from the Employers will be provided with a Checklist for this
submission of the last pleading required or allowed purpose.
under its rules. b. Inspection. This approach shall be undertaken in
workplaces with 10 to 199 workers and effect
The Secretary of Labor and Employment or his duly restitutions/corrections if there are violations.
authorized representative may supervise the payment c. Advisory services. This approach shall be undertaken
of unpaid wages and other monetary claims and in workplaces with less than 10 workers and those
benefits, including legal interest, found owing to any registered as Barangay Micro-Business Enterprises
employee or househelper under this Code. (As amended (BMBEs).
by Section 2, Republic Act No. 6715, March 21, 1989)
 DOLE – primary policy, programming, coordinating,
and administrative entity of the government  Pursuant to Section 1 of Republic Act 7730
[Approved on June 2, 1994] which amended Article
 Primary responsibilities: 128 (b) of the Labor Code, the Secretary of Labor and
(a) The promotion of gainful employment Employment or his duly authorized representative,
opportunities and the optimization of the in the exercise of their visitorial and enforcement
development and utilization of the country’s powers, are now authorized to issue compliance
manpower resources; orders to give effect to the labor standards
(b) The advancement of workers’ welfare by provisions of this Code and other labor legislation
providing for just and humane working based on the findings of labor employment and
conditions and terms of employment; enforcement officers or industrial safety engineers
(c) The maintenance of industrial peace by made in the course of inspection, sans any restriction
promoting harmonious, equitable, and stable with respect to the jurisdictional amount
employment relations that assure equal of P5,000.00 provided under Article 129 and Article
protection for the rights of all concerned parties. 217 of the Code.

enforcement of labor laws. EMPLOYEE RELATIONSHIP:

1. DOLE Regional Office headed by RD including BOMBYO RADYO RULING [May 8, 2009]
divisions: The existence of an employer-employee relationship is a
a. administrative division statutory prerequisite to and a limitation on the power
b. labor standards enforcement division of the Secretary of Labor, one which the legislative
c. industrial relations division branch is entitled to impose. The rationale underlying
d. workers amelioration and welfare division this limitation is to eliminate the prospect of competing
e. employment promotion division conclusions of the Secretary of Labor and the NLRC, on a
matter fraught with questions of fact and law, which is
2. TESDA [Technical Education and Skills Development best resolved by the quasi-judicial body, which is the
Authority NRLC, rather than an administrative official of the
3. Regional Arbitration Board [RAB] of the NLRC which executive branch of the government. If the Secretary of
handles compulsory arbitration cases affecting labor Labor proceeds to exercise his visitorial and
and management, aside from enforcing decisions, enforcement powers absent the first requisite, as the
awards, or orders of the NLRC. dissent proposes, his office confers jurisdiction on itself
4. NCMB - which has absorbed the conciliation, which it cannot otherwise acquire.
mediation, and voluntary arbitration functions of
Bureau of Labor Relations The Regional Director, therefore, committed grievous
error in ordering petitioner to answer for respondents

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claims. Moreover, with the conclusion that no employer- conditions of employment, if accompanied by a claim for
employee relationship has ever existed between reinstatement. If a complaint is filed with the NLRC, and
petitioner and respondent, it is crystal-clear that the there is still an existing employer-employee relationship,
DOLE Regional Director had no jurisdiction over the jurisdiction is properly with the DOLE. The findings
respondents complaint. Thus, the improvident exercise of the DOLE, however, may still be questioned through a
of power by the Secretary of Labor and the Regional petition for certiorari under Rule 65 of the Rules of
Director behooves the court to subject their actions for Court.
review and to invalidate all the subsequent orders they
For RD to exercise enforcement power under Art 128[b],
BOMBO RADYO RULING [MARCH 2012] the work relationship between workers and alleged
The prior decision of this Court in the present case employers must be existing at the time the complaint is
accepts such answer, but places a limitation upon the presented.
power of the DOLE, that is, the determination of the
existence of an employer-employee relationship cannot Where one of several complainants alleges illegal
be co-extensive with the visitorial and enforcement dismissal, his allegation deprived the RD of jurisdiction
power of the DOLE. But even in conceding the power of as the dismissal would fall under the LA jurisdiction. But
the DOLE to determine the existence of an employer- the RD retains jurisdiction over his other complainants
employee relationship, the Court held that the and those other complainants about underpayment of
determination of the existence of an employer- wages and other violations of labor laws, regardless of
employee relationship is still primarily within the amount involved.
power of the NLRC, that any finding by the DOLE is
merely preliminary. This conclusion must be revisited. SUBJECTS OF ENFORCEMENT
In the cases where the employer contests the findings of
No limitation in the law was placed upon the power of the labor standards and welfare officers and raises
the DOLE to determine the existence of an employer- issues which cannot be resolved without considering
employee relationship. No procedure was laid down evidentiary matters that are not verifiable in the normal
where the DOLE would only make a preliminary finding, course of inspection, the RD must endorse the case to
that the power was primarily held by the NLRC. The law the appropriate arbitration branch [LA] of the NLRC for
did not say that the DOLE would first seek the NLRCs adjudication.
determination of the existence of an employer-
employee relationship, or that should the existence of The visitorial enforcement power is thorough and
the employer-employee relationship be disputed, the piercing; it extends even to issues not formally included
DOLE would refer the matter to the NLRC. The DOLE in the complaint.
must have the power to determine whether or not an
employer-employee relationship exists, and from there However, RD is plainly without authority to declare a
to decide whether or not to issue compliance orders in law unconstitutional and his duty is merely to enforce a
accordance with Art. 128(b) of the Labor Code, as law which stands valid, unless otherwise declared by SC
amended by RA 7730. to be unconstitutional.

Under Art. 128(b) of the Labor Code, as amended by RA DISPOSITION IN LABOR STANDARD CASES
7730, the DOLE is fully empowered to make a Labor Standard case – processed administratively under
determination as to the existence of an employer- 128-129 of LC. Governed by Rules on Disposition in
employee relationship in the exercise of its visitorial Labor Standards Cases [1987]
and enforcement power, subject to judicial review, not
review by the NLRC. a. inspection report – Labor Standards and Welfare
Officer [LWSO] shall conduct necessary investigation
To recapitulate, if a complaint is brought before the and submit report to RD thru Chief of LSED; within 24
DOLE to give effect to the labor standards provisions of hs after investigation or w./in reasonable period
the Labor Code or other labor legislation, and there is a - report specifies violations discovered, if any, and any
finding by the DOLE that there is an existing employer- recommendation and computation of amount due to
employee relationship, the DOLE exercises jurisdiction each worker.
to the exclusion of the NLRC. If the DOLE finds that
there is no employer-employee relationship, the b. coverage of complaint inspection –shall not be limited
jurisdiction is properly with the NLRC. If a complaint is to the specific allegations but shall be a thorough
filed with the DOLE, and it is accompanied by a claim for inquiry into the verification of the compliance by
reinstatement, the jurisdiction is properly with the employer with existing labor standards and shall cover
Labor Arbiter, under Art. 217(3) of the Labor Code, all workers similarly situated.
which provides that the Labor Arbiter has original and
exclusive jurisdiction over those cases involving wages, c. restitution – where employer agreed to make the
rates of pay, hours of work, and other terms and necessary restitution of violations discovered in the

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course of inspection, such restitution may be effected at Requisites:

the plant level within 5 days. 1. claim is presented by an employee, or a person
employed in domestic or household service or
d. compromise agreement- should parties arrive at an househelper;
agreement as to the whole or part of the dispute, such 2. claim arises from employer-employee relations
arrangement shall be reduced in writing and signed by 3. claimant does not seek reinstatement
the parties in the presence of RD or his duly authorized 4. aggregate money claim of each claimant does not
representative. exceed P5000
In absence of any of above requisites, LA shall have
e. hearing – where no proof of compliance is submitted exclusive original jurisdiction over claims arising from
after 7 days from receipt of the inspection results, RD employer-employee relations, [ claims for employee’s
shall summon employer and complainants to summary compensation, social security, medicare and maternity
investigation. benefit]

ENFORCEMENT OF WAGE ORDER When claim exceeds Php 5k:

Wage Rationalization Act [RA 6727] & IRR – DOLE shall - the RD or Hearing Officer shall advise
conduct inspection as often as possible or as necessary, complainant to amend the complaint if the latter
within its manpower constraint, of the payroll and other so desires and file with appropriate legal branch
financial records kept by the company or business, to of NLRC
determine whether the workers are paid the prescribed
wages rates and other benefits granted by law or any NATURE OF PROCEEDING
wage order - Shall be summary and non litigious. .
- Subject to requirements of due process, the
Penalty for Noncompliance: Double indemnity technicalities of law, and procedure and rules
RA 6727 specifies penalty for an employer’s refusal or governing admissibility and sufficiency of evidence
failure to comply with wage orders – fine of not less of the courts of law do not strictly apply thereto.
than 25k php nor more than 100k php or imprisonment - RO may avail itself of reasonable means to ascertain
of not less than 2 yrs nor more than 4 yrs or both. facts of the controversy speedily and objectively,
including ocular inspection and examination of well-
Art. 129. Recovery of wages, simple money claims informed persons. Substantial evidence shall be,
and other benefits. whenever necessary, sufficient to support a decision
or order
GR: Upon complaint of any interested party, the
Regional Director of the Department of Labor and DUE PROCESS IN ADMINISTRATIVE PROCEEDINGS
Employment or any of the duly authorized hearing - cardinal primary requirements of due process in
officers of the Department is empowered, through administrative proceedings to wit:
summary proceeding and after due notice, to hear and [1] the right to a hearing which includes the right to
decide any matter involving the recovery of wages and present one's case and submit evidence in
other monetary claims and benefits, including legal support thereof;
interest, owing to an employee or person employed in [2] the tribunal must consider the evidence presented,
domestic or household service or househelper under [3] the decision must have something to support
this Code, arising from employer-employee relations: itself;
[4] the evidence must be substantial And substantial
 That such complaint does not include a claim for evidence means such evidence as a reasonable
reinstatement: mind might accept as adequate to support a
 That the aggregate money claims of each employee [5] the decision must be based on the evidence
or househelper does not exceed Five thousand pesos presented at the hearing, or at least contained in
(P5,000.00). the record and disclosed to the parties affected,
[6] the tribunal or body of any of its judges must act
The Secretary of Labor and Employment [DOLE] or his on its or his own independent consideration of
duly authorized representative may supervise the the law and facts of the controversy, and not
payment of unpaid wages and other monetary claims simply accept the views of a subordinate;
and benefits, including legal interest, found owing to [7] the board or body should, in all controversial
any employee or househelper under this Code. (As questions, render its decisions in such manner
amended by Section 2, Republic Act No. 6715, March 21, that the parties to the proceeding can know the
1989) various issues involved, and the reason for the
decision rendered.
Art 129 – treats small money claims

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ART 128 AND 129 COMPARED solidary liability of the petitioner to the respondent
1. As to nature and subject of proceedings: where no employer-employee relation exists.[21]
128 - inspection of establishments and the issuance
of orders to compel compliance with labor standards, TITLE III: Working Conditions for Special Groups of
wage orders, and other labor laws and regulations; Employees
- enforcement of labor legislation in general
- offshoots of inspections done by labor officers ***REPUBLIC ACT NO. 10151 - AN ACT ALLOWING THE
129 – adjudication through summary proceeding after REPEALING ARTICLES 130 AND 131 OF PRESIDENTIAL
notice of hearing, of employees’ claims for wages and DECREE NUMBER FOUR HUNDRED FORTY-TWO, AS
- Limits the proceedings to monetary claims OF THE PHILIPPINES
which therefore involve only labor standards
law CHAPTER I: Employment of Women
- Initiated by sworn complaints filed by the
interested party. ARTICLE 130. [132] Facilities for Women. — The
Secretary of Labor and Employment shall establish
2. As to workers involved standards that will ensure the safety and health of
128 – involves employees still in the service; women employees. In appropriate cases, he shall, by
129 - applies to present or past employees at the time regulations, require any employer to:
the complaint is filed, provided there is no demand for
reinstatement, otherwise LA jurisdiction (a) Provide seats proper for women and permit them to
use such seats when they are free from work and during
3. As to jurisdictional limits working hours, provided they can perform their duties
128 – no maximum monetary amount fixed by law for in this position without detriment to efficiency;
exercise of enforcement power
129 – money claim per claimant should not exceed (b) To establish separate toilet rooms and lavatories for
P5000 men and women and provide at least a dressing room
for women;
4. As to officers designated
128 – person exercising visitorial and enforcement (c) To establish a nursery in a workplace for the benefit
powers is DOLE Secretary or any of his duly authorized of the women employees therein; and
representatives who may or may not be a RD;
129 – vested upon the RD or any duly authorized (d) To determine appropriate minimum age and other
hearing officer standards for retirement or termination in special
occupations such as those of flight attendants and the
5. Regarding appeal - like.
128 – an order issued is appealable to Sec of DOLE
129 – an order to the NLRC ARTICLE 131. [133] Maternity Leave Benefits. — (a)
Every employer shall grant to any pregnant woman
EMPLOYEES CLAIMS ONLY? employee who has rendered an aggregate service of at
- operative only in the context of employment least six (6) months for the last twelve (12) months,
relationship. Regular courts have jurisdiction over maternity leave of at least two (2) weeks prior to the
claim of an independent contractor to adjust the fee. expected date of delivery and another four (4) weeks
after normal delivery or abortion with full pay based on
- It is well settled in law and jurisprudence that where her regular or average weekly wages. The employer
no employer-employee relationship exists between may require from any woman employee applying for
the parties and no issue is involved which may be maternity leave the production of a medical certificate
resolved by reference to the Labor Code, other labor stating that delivery will probably take place within two
statutes or any collective bargaining agreement, it is weeks.
the Regional Trial Court that has jurisdiction. In its
complaint, private respondent is not seeking any (b) The maternity leave shall be extended without pay
relief under the Labor Code but seeks payment of a on account of illness medically certified to arise out of
sum of money and damages on account of petitioner's the pregnancy, delivery, abortion or miscarriage, which
alleged breach of its obligation under their Guard renders the woman unfit for work, unless she has
Service Contract. The action is within the realm of earned unused leave credits from which such extended
civil law hence jurisdiction over the case belongs to leave may be charged.
the regular courts. While the resolution of the issue
involves the application of labor laws, reference to the (c) The maternity leave provided in this Article shall be
labor code was only for the determination of the paid by the employer only for the first four (4)

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deliveries by a woman employee after the effectivity of

this Code. Anti-Violence Against Women and their Children Act
of 2004, REPUBLIC ACT NO. 9262
"SECTION 14-A. Maternity Leave Benefit. — A female SECTION 43. Entitlement to Leave. — Victims under this
member who has paid at least three (3) monthly Act shall be entitled to take a paid leave of absence up to
contributions in the twelve-month period immediately ten (10) days in addition to other paid leaves under the
preceding the semester of her childbirth or miscarriage Labor Code and Civil Service Rules and Regulations,
shall be paid a daily maternity benefit equivalent to one extendible when the necessity arises as specified in the
hundred percent (100%) of her average daily salary protection order.
credit for sixty (60) days or seventy eight (78) days in Any employer who shall prejudice the right of the
case of caesarean delivery, subject to the following person under this section shall be penalized in
conditions: accordance with the provisions of the Labor Code and
Civil Service Rules and Regulations. Likewise, an
"(a) That the employee shall have notified her employer employer who shall prejudice any person for assisting a
of her pregnancy and the probable date of her co-employee who is a victim under this Act shall
childbirth, which notice shall be transmitted to the SSS likewise be liable for discrimination.
in accordance with the rules and regulations it may
provide; ARTICLE 132. [134] Family Planning Services;
Incentives for Family Planning. —
"(b) The full payment shall be advanced by the (a) Establishments which are required by law to
employer within thirty (30) days from the filing of the maintain a clinic or infirmary shall provide free family
maternity leave application; planning services to their employees which shall
include, but not be limited to, the application or use of
"(c) That payment of daily maternity benefits shall be a contraceptive pills and intrauterine devices.
bar to the recovery of sickness benefits provided by this
Act for the same period for which daily maternity (b) In coordination with other agencies of the
benefits have been received; government engaged in the promotion of family
planning, the Department of Labor and Employment
"(d) That the maternity benefits provided under this shall develop and prescribe incentive bonus schemes to
section shall be paid only for the first four (4) deliveries encourage family planning among female workers in
or miscarriages; any establishment or enterprise.

"(e) That the SSS shall immediately reimburse the ARTICLE 133. [135] Discrimination Prohibited. — It
employer of one hundred percent (100%) of the amount shall be unlawful for any employer to discriminate
of maternity benefits advanced to the employee by the against any woman employee with respect to terms and
employer upon receipt of satisfactory proof of such conditions of employment solely on account of her sex.
payment and legality thereof; and
The following are acts of discrimination:
"(f) That if an employee member should give birth or
suffer miscarriage without the required contributions (a) Payment of a lesser compensation, including wage,
having been remitted for her by her employer to the salary or other form of remuneration and fringe
SSS, or without the latter having been previously benefits, to a female employee as against a male
notified by the employer of the time of the pregnancy, employee, for work of equal value; and
the employer shall pay to the SSS damages equivalent to
the benefits which said employee member would (b) Favoring a male employee over a female employee
otherwise have been entitled to. with respect to promotion, training opportunities, study
| (REPUBLIC ACT NO. 8282, [May 1, 1997]) and scholarship grants solely on account of their sexes.

REPUBLIC ACT NO. 9710 – 2 MONTHS LEAVE UNDER Criminal liability for the willful commission of any
MAGNA CARTA FOR WOMEN unlawful act as provided in this article or any violation
of the rules and regulations issued pursuant to Section 2
SECTION 18.Special Leave Benefits for Women. — A hereof 95 shall be penalized as provided in Articles 288
woman employee having rendered continuous and 289 of this Code: Provided, That the institution of
aggregate employment service of at least six (6) months any criminal action under this provision shall not bar
for the last twelve (12) months shall be entitled to a the aggrieved employee from filing an entirely separate
special leave benefit of two (2) months with full pay and distinct action for money claims, which may include
based on her gross monthly compensation following claims for damages and other affirmative reliefs. The
surgery caused by gynecological disorders.||| (An Act actions hereby authorized shall proceed independently
Providing for the Magna Carta of Women, REPUBLIC of each other.
ACT NO. 9710, [August 14, 2009])

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 Bona fide occupational qualification NONDISCRIMINATION: POLICY AGAINST MARRIED

We note that since the finding of a bona fide
occupational qualification justifies an employers no- ZIALCITA V. PAL
spouse rule, the exception is interpreted strictly and Complainant Zialcita, an international flight stewardess
narrowly by these state courts. There must be a of PAL, was discharged from the service on account of
compelling business necessity for which no alternative her marriage. In separating Zialcita, PAL invoked its
exists other than the discriminatory practice. To justify policy which stated that flight attendants must be single,
a bona fide occupational qualification, the employer and shall be automatically separated from employment
must prove two factors: (1) that the employment in the event they subsequently get married. They
qualification is reasonably related to the essential claimed that this policy was in accordance with Article
operation of the job involved; and, (2) that there is a 132 of the Labor Code. On the other hand, Zialcita
factual basis for believing that all or substantially all questioned her termination on account of her marriage,
persons meeting the qualification would be unable to invoking Article 136 of the same law.
properly perform the duties of the job.
The concept of a bona fide occupational qualification is SC RULING: Although Article 132 enjoins the Secretary
not foreign in our jurisdiction. We employ the standard of Labor to establish standards that will ensure the
of reasonableness of the company policy which is safety and health of women employees and in
parallel to the bona fide occupational qualification appropriate cases shall by regulation require employers
requirement. to determine appropriate minimum standards for
termination in special occupations, such as those of
Women as equal partner flight attendants, it is logical to presume that, in the
Women in Development and Nation Building. Act RA absence of said standards or regulations which are yet
NO. 7192, [February 12, 1992] to be established, the policy of PAL against marriage is
patently illegal.
SECTION 2. Declaration of Policy. — The State
recognizes the role of women in nation building and Article 136 is not intended to apply only to women
shall ensure the fundamental equality before the law of employed in ordinary occupations, or it should have
women and men. The State shall provide women rights categorically expressed so. The sweeping intendment of
and opportunities equal to that of men. the law, be it on special or ordinary occupations, is
To attain the foregoing policy: reflected in the whole text and supported by Article 135
(1) A substantial portion of official development that speaks of non-discrimination on the employment of
assistance funds received from foreign governments women
and multilateral agencies and organizations shall be set
aside and utilized by the agencies concerned to support STAR PAPER CORPORATION v. SIMBOL
programs and activities for women; It is true that the policy of petitioners prohibiting close
relatives from working in the same company takes the
(2) All government departments shall ensure that nature of an anti-nepotism employment policy.
women benefit equally and participate directly in the Companies adopt these policies to prevent the hiring of
development programs and projects of said department, unqualified persons based on their status as a relative,
specifically those funded under official foreign rather than upon their ability. These policies focus upon
development assistance, to ensure the full participation the potential employment problems arising from the
and involvement of women in the development process; perception of favoritism exhibited towards relatives
(3) All government departments and agencies shall SPOUSES: 1. policies banning only spouses from
review and revise all their regulations, circulars, working in the same company (no-spouse employment
issuances and procedures to remove gender bias policies),
therein. cd 2. those banning all immediate family members,
including spouses, from working in the same company
ARTICLE 134. [136] Stipulation against Marriage. — (anti-nepotism employment policies).
It shall be unlawful for an employer to require as a
condition of employment or continuation of TWO THEORIES OF EMPLOYMENT DISCRIMINATION:
employment that a woman employee shall not get the disparate treatment and the disparate impact.
married, or to stipulate expressly or tacitly that upon
getting married, a woman employee shall be deemed Under the disparate treatment analysis - an
resigned or separated, or to actually dismiss, discharge, employment policy is discriminatory on its face. No-
discriminate or otherwise prejudice a woman employee spouse employment policies requiring an employee of a
merely by reason of her marriage. particular sex to either quit, transfer, or be fired are
facially discriminatory. For example, an employment
policy prohibiting the employer from hiring wives of

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male employees, but not husbands of female employees,

is discriminatory on its face. (1) The sexual favor is made as a condition in the
hiring or in the employment, re-employment or
On the other hand, to establish disparate impact - a continued employment of said individual, or in
facially neutral policy has a disproportionate effect on a granting said individual favorable compensation,
particular class. For example, although most terms, conditions, promotions, or privileges; or the
employment policies do not expressly indicate which refusal to grant the sexual favor results in limiting,
spouse will be required to transfer or leave the segregating or classifying the employee which in any
company, the policy often disproportionately affects one way would discriminate, deprive or diminish
sex. employment opportunities or otherwise adversely
affect said employee;
The no-spouse employment policy invalid for failure of
the employer to present any evidence of business 2) The above acts would impair the employee’s rights
necessity other than the general perception that or privileges under existing labor laws; or
spouses in the same workplace might adversely affect
the business. (3) The above acts would result in an intimidating,
hostile, or offensive environment for the employee.
[A] requirement that a woman employee must
remain unmarried could be justified as a "bona fide
(b) In an education or training environment, sexual
occupational qualification," or BFOQ, where the
harassment is committed:
particular requirements of the job would justify the
same, but not on the ground of a general principle,
(1) Against one who is under the care, custody or
such as the desirability of spreading work in the
supervision of the offender;
workplace. A requirement of that nature would be
valid provided it reflects an inherent quality
(2) Against one whose education, training,
reasonably necessary for satisfactory job
apprenticeship or tutorship is entrusted to the
ARTICLE 135. [137] Prohibited Acts. — It shall be
unlawful for any employer: (3) When the sexual favor is made a condition to the
giving of a passing grade, or the granting of honors
(1) To deny any woman employee the benefits provided and scholarships, or the payment of a stipend,
for in this Chapter or to discharge any woman employed allowance or other benefits, privileges or
by him for the purpose of preventing her from enjoying considerations; or
any of the benefits provided under this Code; (4) When the sexual advances result in an
intimidating, hostile or offensive environment for the
(2) To discharge such woman on account of her student, trainee or apprentice.
pregnancy, or while on leave or in confinement due to
her pregnancy; Sexual harassment is committed by an employer,
employee, manager, supervisor, agent of the employer,
(3) To discharge or refuse the admission of such woman teacher, instructor, professor, coach, trainor, or any
upon returning to her work for fear that she may again other person who, having authority, influence or moral
be pregnant. ascendancy over another in a work or training or
education environment, demands, requests or
ARTICLE 136. [138] Classification of Certain Women otherwise requires any sexual favor from the other,
Workers. — Any woman who is permitted or suffered regardless of whether the demand, request or
to work, with or without compensation, in any night requirement for submission is accepted by the object of
club, cocktail lounge, massage clinic, bar or similar the act.
establishments under the effective control or
supervision of the employer for a substantial period of CHAPTER II : Employment of Minors
time as determined by the Secretary of Labor and ARTICLE 137. [139] Minimum Employable Age.—
Employment, shall be considered as an employee of (a) No child below fifteen (15) years of age shall be
such establishment for purposes of labor and social employed, except when he works directly under the sole
legislation. responsibility of his parents or guardian, and his
employment does not in any way interfere with his
Republic Act 7877 - Anti-Sexual Harassment Act of schooling.
- covers only the superiors in a work, education or (b) Any person between fifteen (15) and eighteen (18)
training-related environment. years of age may be employed for such number of hours
and such periods of the day as determined by the
(a) In a work-related or employment environment, Secretary of Labor and Employment in appropriate
sexual harassment is committed when: regulations.

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ARTICLE 139. [141] Coverage. — This Chapter shall

(c) The foregoing provisions shall in no case allow the apply to all persons rendering services in households
employment of a person below eighteen (18) years of for compensation.
age in an undertaking which is hazardous or deleterious
in nature as determined by the Secretary of Labor and "Domestic or household service" shall mean service in
Employment. the employer's home which is usually necessary or
desirable for the maintenance and enjoyment thereof
ARTICLE 138. [140] Prohibition against Child and includes ministering to the personal comfort and
Discrimination. — No employer shall discriminate convenience of the members of the employer's
against any person in respect to terms and conditions of household, including services of family drivers.
employment on account of his age.
ARTICLE 140. [142] Contract of Domestic Service. —
Hazardous Work – IRR; Following are considered The original contract of domestic service shall not last
hazardous work: for more than two (2) years but it may be renewed for
such periods as may be agreed upon by the parties.
SECTION 8. Hazardous work places. — The Bureau of
Working Conditions, shall, with the approval of the ARTICLE 141. [143] Minimum Wage [amended by
Secretary of Labor and Employment, issue from time to RA 10361]
time a detailed list of hazardous work places for SEC 24. Minimum Wage. – The minimum wage of
purposes of this Rule, in addition to the following: domestic workers shall not be less than the following:
(a) Where the nature of the work exposes the workers (a) Two thousand five hundred pesos (P2,500.00) a
to dangerous environmental elements, month for those employed in the National Capital
contaminations or work conditions including Region (NCR);
ionizing radiations, chemicals, fire, flammable (b) Two thousand pesos (P2,000.00) a month for those
substances, noxious components and the like. employed in chartered cities and first class
(b) Where the workers are engaged in construction municipalities; and
work, logging, fire-fighting, mining, quarrying,
blasting, stevedoring, dock work, deep-sea fishing (c) One thousand five hundred pesos (P1,500.00) a
and mechanized farming. month for those employed in other municipalities.
(c) Where the workers are engaged in the manufacture
or handling of explosives and other pyrotechnic After one (1) year from the effectivity of this Act, and
products. periodically thereafter, the Regional Tripartite and
(d) Where the workers use or are exposed to heavy or Productivity Wage Boards (RTPWBs) shall review, and
power-driven machinery or equipment. if proper, determine and adjust the minimum wage
(e) Where the workers use or are exposed to power- rates of domestic workers.
driven tools.
ARTICLE 142. [144] Minimum Cash Wage. — The
CHILD ABUSE AND CHILD LABOR minimum wage rates prescribed under this Chapter
RA 7658 ; RA 9231 – shall be the basic cash wages which shall be paid to the
Sec. 2. Employment of Children - Children below fifteen househelpers in addition to lodging, food and medical
(15) years of age shall not be employed except: attendance.

"1) When a child works directly under the sole ARTICLE 143. [145] Assignment to Non-Household
responsibility of his/her parents or legal guardian and Work. — No househelper shall be assigned to work in a
where only members of his/her family are employed: commercial, industrial or agricultural enterprise at a
Provided, however, That his/her employment neither wage or salary rate lower than that provided for
endangers his/her life, safety, health, and morals, nor agricultural or non-agricultural workers as prescribed
impairs his/her normal development: Provided, further, herein.
That the parent or legal guardian shall provide the said
child with the prescribed primary and/or secondary ARTICLE 144. [146] Opportunity for Education. — If the
education; househelper is under the age of eighteen (18) years, the
employer shall give him or her an opportunity for at
Another XPN: where a child’s employment or least elementary education. The cost of education shall
participation in public entertainment or information be part of the househelper's compensation, unless there
through cinema, theater, radio, tv, or other forms of is a stipulation to the contrary.
media is essential.
ARTICLE 145. [147] Treatment of Househelpers. — The
CHAPTER III : Employment of Househelpers employer shall treat the househelper in a just and
humane manner. In no case shall physical violence be
used upon the househelper.

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ARTICLE 146. [148] Board, Lodging, and Medical meaning of a "househelper" or "domestic servant" as
Attendance. 106 — The employer shall furnish the above-defined by law.
househelper, free of charge, suitable and sanitary living
quarters as well as adequate food and medical The criteria is the personal comfort and enjoyment of
attendance. the family of the employer in the home of said employer.
While it may be true that the nature of the work of a
ARTICLE 147. [149] Indemnity for Unjust Termination househelper, domestic servant or laundrywoman in a
of Services. 107 — If the period of household service is home or in a company staffhouse may be similar in
fixed, neither the employer nor the househelper may nature, the difference in their circumstances is that in
terminate the contract before the expiration of the term, the former instance they are actually serving the family
except for a just cause. If the househelper is unjustly while in the latter case, whether it is a corporation or a
dismissed, he or she shall be paid the compensation single proprietorship engaged in business or industry or
already earned plus that for fifteen (15) days by way of any other agricultural or similar pursuit, service is being
indemnity. rendered in the staffhouses or within the premises of
the business of the employer. In such instance, they are
If the househelper leaves without justifiable reason, he employees of the company or employer in the business
or she shall forfeit any unpaid salary due him or her not concerned entitled to the privileges of a regular
exceeding fifteen (15) days. employee.

ARTICLE 148. [150] Service of Termination Notice. 108 Home Development Mutual Fund Law of 2009 [RA
— If the duration of the household service is not 9679]
determined either in stipulation or by the nature of the BEGINNING January 1, 2010, membership in Pag-IBIG
service, the employer or the househelper may give Fund is already required to all employees compulsorily
notice to put an end to the relationship five (5) days covered by the Social Security System (SSS), regardless
before the intended termination of the service. HSCATc of employment status, as provided by Republic Act
ARTICLE 149. [151] Employment Certification. 109 —
Upon the severance of the household service relation, - further obliges previously waived companies to
the employer shall give the househelper a written register their employees, upon expiration of their
statement of the nature and duration of the service and waiver of coverage.
his or her efficiency and conduct as househelper.
- Pag-IBIG Fund membership shall also apply to all
ARTICLE 150. [152] Employment Record. — The employees compulsorily covered by the Government
employer may keep such records as he may deem Service Insurance System (GSIS), including uniformed
necessary to reflect the actual terms and conditions of personnel of Armed Forces of the Philippines (AFP),
employment of his househelper, which the latter shall Philippine National Police (PNP), Bureau of Jail
authenticate by signature or thumbmark upon request Management and Penology (BJMP), and Bureau of Fire
of the employer. Protection (BFP).

Case ON ART. 141: APEX MINING CO, V. NLRC - Foreign-based employers must also register their
Under Rule XIII, Section l(b), Book 3 of the Labor Code, Filipino employees as required by the law.
as amended, the terms "househelper" or "domestic
servant" are defined as follows: The membership of the mandatorily covered employees
The term "househelper" as used herein is synonymous should take effect upon the date of employment.
to the term "domestic servant" and shall refer to any However, actual membership in the Fund shall
person, whether male or female, who renders services commence only upon remittance of the initial
in and about the employer's home and which services contribution and not at point of registration.To date, the
are usually necessary or desirable for the maintenance monthly contribution rates shall be as follows: for those
and enjoyment thereof, and ministers exclusively to the with monthly compensation of P1,500.00 or less the
personal comfort and enjoyment of the employer's employee share is 1% while the employer share is 2%.
family. For those earning monthly compensation of more than
P1,500.00 employee share is 2% and employer share is
The definition cannot be interpreted to include 2%.
househelp or laundrywomen working in staffhouses of a
company like petitioner who attends to the needs of the A member may be allowed to contribute more than the
company's guest and other persons availing of said required rates should he or she so desires.
facilities. By the same token, it cannot be considered to
extend to then driver, houseboy, or gardener exclusively The employer, however, shall only be mandated to
working in the company, the staffhouses and its contribute what is required, unless it agrees to match
premises. They may not be considered as within the the member’s increased contribution.

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The employer assumes a fiduciary relationship with the c) Workers of registered Barangay Micro Business
Fund and the member concerned relative to the Establishments (BMBEs)
collection and remittance of the member’s contribution,
required employer contribution and loan amortization, 5. What is the basis for computing the minimum wage?
when the payment is made through salary deduction. It is based on the normal working hours which shall not
exceed eight (8) hours of work a day.
An annual dividend of not less than 70% of the Fund’s
net disposable income is added proportionately to the 6. What is the basis for entitlement to COLA?
members’ savings. The member’s earned dividend will The basis for entitlement to COLA is whether or not a
be credited to his or her Total Accumulated Value worker is paid the basic pay. Accordingly, a worker who
(TAV). The TAV comprises of the member’s personal is not paid the basic pay is not entitled to the COLA.
contributions, employer counterpart and earned
dividends. Are exemptions from wage orders allowed?
Yes, provided that the wage order expressly provides
The benefits of a Pag-IBIG Fund member shall include for exemption. The following exemptible categories:
the following: (NWPC Amended Rules on Exemption)
a) housing;
b) short-term loans and other benefit programs; a) Distressed establishments;
c) portability of membership; b) New Business Enterprise;
d) return of contributions; and c) Retail/Service establishments regularly employing
e) death benefits. not more than ten (10) workers; and
d) Establishments adversely affected by natural
The termination of Pag-IBIG Fund membership shall be calamities.
upon the occurrence of any of the following, provided
that the member’s financial obligations with the Fund 11. What is the maximum duration of exemption?
are first fully settled, except in case of death of the One (1) year from effectivity of the wage order
a) membership term maturity; 12. What is the application of wage orders to
b) death; contractors?
c) retirement; Increase shall be borne by the principals or clients
d) permanent total disability or insanity; Contract is deemed amended
e) permanent departure from the country;
f) termination of service by reason of health; and 13. What is the application of wage orders to workers
g) other causes as may be approved by the Board. paid by result?
All workers paid by result, including those who are paid
2014 Handbook on Workers’ Statutory Monetary on piece work, “takay” or task basis, shall be entitled to
Benefits [Q&A] receive not less than the prescribed daily minimum
wage or a proportion thereof for working less than eight
I. WAGES (8) hours.
1. How much is the minimum wage in Metro Manila?
P446.00 (Basic Wage P426.00 + COLA P20.00) is the 14. Are minimum wage earners exempt from paying
current minimum wage in National Capital Region income tax?
(NCR) including Metro Manila under Wage Order NCR- Yes, minimum wage earners shall be exempt from
17 which took effect on June 03, 2012 and P456.00 payment of income tax. (Sec. 2(2) of RA 9504 National
(additional P10.00 COLA) effective November 1, 2012. Internal Revenue Code)

2. Where can we find the current minimum wages in the 15. What are the elements of wage distortion?
different regions? 1. Severe contraction by more than 50%;
Regional Tripartite Wages and Productivity Board 2. Existing hierarchy of position with
(RTWPB) which has jurisdiction over the workplace. corresponding salary rates;
3. A significant change in the salary rates of a
3. Who are covered by the wage orders? lower pay class without a concomitant increase
All minimum wage earners in the private sector are in the salary rate of a higher one;
covered by wage orders, regardless of their position, 4. The eliminations of the distinction between pay
designation or status of employment and irrespective of of 2 workers; and
the method by which their wages are paid. 5. The existence of the distinction in the same
4. Who are excluded from the coverage of the minimum
wage law? 16. What are the procedures to correct wage distortion?
a) Household or domestic helpers; – For organized firms:
b) Persons employed in the personal service of another;

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Employer and union negotiate through grievance sexual, psychological harm or suffering, or economic
procedure in the CBA abuse. The leave benefit shall cover the days that the
If unresolved, through voluntary arbitration woman employee has to attend to medical and legal
– For unorganized firms: concerns.
Employer and workers negotiate Conditions for entitlement:
Dispute settled through the NCMB 1. The victim woman employee should present to
If unresolved, through compulsory arbitration at the her employer a certification from the barangay
NLRC chairman (Punong Barangay) or barangay
councilor (barangay kagawad) or prosecutor or
17. What are the leave benefits that an employee is the Clerk of Court that an action relative to the
entitled to under existing laws? matter is pending.

 5 days service incentive leave with pay for  Special Leave for Women of 2 months with full
employee who has rendered at least 1 year of service. pay who have rendered continuous aggregate
(Article 95 of the Labor Code, as amended) employment service of 6 months for the last 12
months, following surgery caused by gynecological
 Maternity Leave of 60 days for normal delivery and disorders. (RA 9710)
78 days for caesarian section delivery for every
pregnant employee in the private sector, whether What is the Employees’ Compensation Program?
married or unmarried. A female employee should be The Employees’ Compensation Program (ECP) is the
an SSS member and must have paid at least 3 benefit package for public and private sector employees
monthly contributions within the 12-month period. and their dependents in the event of work-related
(RA 1161, as amended by RA 8282) sickness, injuries or death.

 7 days Paternity Leave for all married male Who are covered under the ECP?
employees in the private sector regardless of status Employees belonging to both the public and private
of employment. The purpose of this benefit is to sectors are compulsorily covered under the ECP.
allow the husband to lend support to his wife during
her period of recovery and/or in nursing her When shall coverage of employees under the ECP
newborn child. (RA 8187) start?
Employees shall be covered starting on the first day of
Conditions for entitlement: their employment.
1. He is an employee at the time of the delivery of
his child; What are the administering agencies of the ECP?
2. He is cohabiting with his spouse at the time that The administering agencies of the ECP are:
she gives birth or suffers a miscarriage; The Government Service Insurance System (GSIS) for
3. He has applied for paternity leave with his the public sector, andThe Social Security System (SSS),
employer within a reasonable period of time; for the private sector.
4. His wife has given birth or suffered a Are Filipinos employed abroad covered under the
miscarriage. ECP?
No. Only Filipino seamen compulsorily covered under
 (RA 8972)7 days Solo Parent Leave is granted to a the SSS are covered under the ECP.
solo parent to enable him/her to perform parental
duties and responsibilities where physical presence Landbased contract workers are covered only if their
is required. employer is engaged in trade or business undertaking in
the Philippines.
Conditions for entitlement:
1. He/she has rendered at least 1 year of service, What contingencies are compensable under the
whether continuous or broken; ECP?
2. He/she has notified his/her employer that Any work-connected injury or sickness which resulted
he/she will avail himself/herself of it, within a to disability or death shall be compensable under the
reasonable period of time; and ECP.
3. He/she has presented to his/her employer a
Solo Parent Identification Card, which may be What are the forms of compensation for injury,
obtained from the DSWD office of the city or sickness, disability and death?
municipality where he/she resides. Cash income benefit – for disability or death;
Medical and related services – for injury or sickness;
 10 days Leave for Victims of Violence Against Rehabilitation services (in addition to monthly cash
Women and their Children (VAWC) is granted to income benefit) for temporary and permanent disability.
women employees who are victims of physical,

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When is the injury compensable?

An injury is compensable when it was sustained due to
an accident arising out of or in the course of

When is sickness compensable?

Any sickness is compensable when it is listed by the ECC
as an “occupational disease”.

Can an illness not listed as an “occupational disease”

be considered compensable?
Yes, if proof is shown that the risk of contracting the
sickness was increased by the working conditions.

When shall EC claims be filed?

Claims for EC benefits must be filed with the GSIS or the
SSS, as the case may be, within three years from the
time of cause of action occurred (loss of earning
capacity/separation from the service due to work-
related sickness or injury).

Where are EC claims filed?

All EC claims may be filed by the claimant at his option
in the Regional Office/Branch of the System (GSIS/SSS)
nearest to the place of work or residence.

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