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SAN BEDA COLLEGE OF LAW

MEMORY AID in LABOR LAW


Any form of reproduction of this copy is strictly prohibited!!!

PRELIMINARY TITLE
7.Right to Participate in Policy &
CHAPTER I Decision-Making Processes affecting
GENERAL PROVISIONS their rights and benefits as may be
provided by law

☛ RELATED LAWS:
✍ ART 1. NAME OF DECREE
1. CIVIL CODE: see Arts. 1700, 1701and 1703
☛ LABOR LEGISLATION - Consists of 2. REVISED PENAL CODE: Art. 289
statutes, regulations and jurisprudence 3. OTHERS: SSS Law, GSIS Law, Agrarian
governing the relations between capital and Reform Law, the 13th month pay law, the
labor, by providing for certain standards of terms Magna Carta for Public Health Workers, etc.
and conditions of employment or providing a
legal framework within which these terms and ☛ RATIONALE :
conditions and the employment relationship may
be negotiated, adjusted and administered. It is - The raison d’ etre of labor laws is the POLICE
divided into labor standards and labor relations. POWER of the State
☛ LABOR STANDARDS - Are the minimum ✍ ART 3. DECLARATION OF BASIC
requirements prescribed by existing laws,
POLICY
rules and regulations relating to wages,
hours of work, cost-of-living allowance, and
The State shall afford protection to labor,
other monetary and welfare benefits,
promote full employment, ensure equal work
including occupational safety, and health
opportunities regardless of sex, age or creed,
standards.
and regulate the relations between workers and
employers. The State shall assure the right of
☛ LABOR RELATIONS LAW - defines the
workers to self-organization, collective
status, rights, and duties and the institutional
bargaining, security of tenure, and just and
mechanisms that govern the individual and
humane conditions of work.
collective interactions of employers, employees
or their representatives.
- The law which ☛ EMPLOYER - one who employs the
seeks to stabilize the relation between employer services of others; one for whom employees
and employee, to forestall and thresh out their work and who pays their wages or salaries.
differences through the encouragement of
collective bargaining and the settlement of labor ☛ EMPLOYEE - one who works for an
disputes through conciliation, mediation, and employer; a person working for salary or wages
arbitration.

✍ ART. 2. DATE OF EFFECTIVITY ✍ ART 4. CONSTRUCTION IN FAVOR


OF LABOR
☛ The Labor Code took effect on November 1,
1974 (six months after its promulgation on May ☛ CONSTRUCTION IN FAVOR OF
1,1974) LABOR CLAUSE -this is with a view to apply
the Code to the greater number of employees to
☛ SEVEN (7) BASIC RIGHTS OF enable them to avail of the benefits under the
WORKERS AS GUARANTEED BY law (Abella vs. NLRC). The working man’s
THE CONSTITUTION (OCESHLP): welfare should be the primordial consideration.

1. Right to Organize - This rule is applicable if there is a doubt as


2. Right to Conduct Collective Bargaining to the meaning of the legal or contractual
or Negotiation with Management provision. If the provision is clear and
3. Right to Engage in Peaceful Concerted unambiguous, it must be applied in
Activities including strike in accordance accordance with its express terms.
with law
4. Right to Enjoy Security of Tenure - These laws should be interpreted with a
5.Right to Work Under Humane Conditions view to the fact that they are remedial in
6.Right to Receive a Living Wage nature, they are enacted to better the lot
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!

and promote the welfare of the members of the


laboring class.
✍ ART 6. APPLICABILITY
- Reservation of essential attributes of
sovereign power is read into contracts ☛ AGRICULTURAL OR FARM WORKER -
as a postulate of the legal order. one employed in an agricultural or farm
enterprise and assigned to perform tasks which
- Courts adopt a liberal are directly related to the agricultural activities of
approach that favors the exercise of the employer, such as cultivation and tillage of
labor rights. The mandate under Art. 4 the soil, dairying, growing and harvesting of any
is simply to resolve doubt, if any, in favor agricultural and horticultural commodities, the
of labor. If there is no doubt in raising of livestock or poultry, and any activities
implementing and interpreting the law, performed by a farmer as an incident to or in
labor will enjoy no built-in advantage conjunction with such farming operations.
and the law will have to be applied as it
is. - There may be in one employer both
agricultural as well as industrial workers.
☛ MANAGEMENT RIGHTS: (CPST)
- PURPOSE of the provision: intended to
C Right to conduct business encourage workers to seek employment in
P Right to prescribe rules agricultural enterprises instead of migrating
S Right to select employees to already overcrowded urban areas to find
T Right to transfer or discharge employees work in industrial establishments

☛ MANAGEMENT PREROGATIVE - The LC applies to all workers, whether


agricultural or non-agricultural, including
Except as limited by special laws, an employees in a government corporation
employer is free to regulate, according to his incorporated under the Corporation Code.
own discretion and judgment, all aspects of
employment, including:
HIRING, WORK ASSIGNMENTS, FARM
WORKING METHODS, TIME PLACE AND EMPLOYER- TENANCY
MANNER OF WORK, TOOLS TO BE USED, FARM RELATIONSHIP
PROCESSES TO BE FOLLOWED, WORKER
SUPERVISION OF WORKERS, WORKING RELATIONSHI
REGULATIONS, TRANSFER OF EMPLOYEES,
P
WORK SUPERVISION, LAY-OFF OF
WORKERS, AND DISCIPLINE, DISMISSAL
- The lease is one - It is the landowner
AND RECALL OF WORKERS. (HW5T2PLSD)
of labor with the who is the lessor
agricultural laborer and the tenant the
Thus, so long as management prerogatives as the lessor of his lessee of
are exercised in good faith for services and the agricultural land
the advancement of the farm employer as
employer’s interest and not for the lessee
the purpose of defeating or
circumventing the rights of - The agricultural - The tenant derives
employees under special law or worker works for his income from the
under valid agreements, it shall the farm employer agricultural produce
be upheld. and for his labor he or harvest
receives a salary or
wage, regardless of
✍ ART 5. RULES AND REGULATIONS
whether the
employer makes a
- The rules and regulations issued by the DOLE
profit.
shall become effective 15 days after
announcement of their adoption in
newspapers of general circulation.

LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
Page 2 of 70
☛ WORKER -any member of the labor force,
whether employed or unemployed

☛ RECRUITMENT AND PLACEMENT - any act


of canvassing, enlisting, contracting,
CHAPTER II transporting, utilizing, hiring or procuring
EMANCIPATION OF TENANTS workers, and includes referrals, contract
(Note: not included as per SC Memo) services, promising or advertising for
employment, locally or abroad, whether for profit
✍ ART 7-11 or not; PROVIDED, that any person or entity
which, in any manner, offers or promises for a
- Share tenancy has been abolished fee employment to two or more persons shall be
placing in its stead leasehold system. deemed engaged in recruitment and placement.
(CEC-TUCP) (RCPA)
- Under Art. 8, the land covered by operation
land transfer must be private agricultural -The number of persons dealt with is not
land, tenanted, primarily devoted to rice an essential ingredient of the act of recruitment
and/or corn, and more than seven and placement of workers. The proviso merely
hectares in are. creates the presumption.

☛ Present retention limits: ✍ ART 16. PRIVATE RECRUITMENT


- 5 hectares per landowner and 3 hectares
per child provided the child is: ☛ ENTITIES AUTHORIZED TO RECRUIT

1. Is at least 15 years of age; and 1. Public employment offices


2. Actually tilling the land or directly managing 2. Private recruitment entities; private
the farm employment agencies
3. Shipping or manning agents or
☛ EXCEPTIONS: representatives
- those covered by homestead patents 4. The POEA
- those covered by PD 27 5. Construction contractors if authorized by the
DOLE and the Construction Industry
☛ EMANCIPATION PATENT - is the title issued Authority
to the tenant upon compliance with all the 6. Members of the diplomatic corps (but hirings
requirements of the government. It represents must also go thru POEA)
the full emancipation pf the tenant from the 7. Other persons or entities as may be
bondage of the soil. authorized by the DOLE secretary

☛ PROHIBITION AGAINST ALIENATION ☛ DOCUMENTATION OF WORKERS:


IS INTENDED TO:
1. Contract Processing – workers hired thru the
POEA shall be issued the individual
1. Preserve the landholding in the hands of the
employment contract and such other
owner-tiller and his heirs;
documents as may be necessary for travel
2. minimize land speculation; and
2. Passport Documentation
3. prevent a return to the regime of land
3. Visa Arrangement
ownership by a few.
✍ ART 17. (POEA)
BOOK ONE
PRE-EMPLOYMENT - POEA has taken over the functions of the
OEDB
TITLE I ☛ ADJUDICATORY FUNCTIONS OF THE
RECRUITMENT AND PLACEMENT OF POEA :
WORKERS
a. All cases which are administrative in
CHAPTER I character, involving or arising out of
GENERAL PROVISIONS violations of rules and regulations relating to
licensing and registration of recruitment and
employment agencies or entities; and
✍ ART 13. DEFINITIONS b. Disciplinary action cases and other special
cases which are administrative in character,
involving employers, principals, contracting valid any agreement to receive less
partners and Filipino Migrant Workers compensation than what the worker is
entitled to recover.
☛ JURISDICTION TRANSFERRED TO (MR Yard Crew Union vs. PNR)
THE LABOR ARBITERS OF THE NLRC :
✍ ART 18. BAN ON DIRECT-HIRING
a. claims arising out of an employer-employee
relationship or by virtue of any law or ☛ Direct hiring of Filipino workers by a
contract involving Filipino workers for foreign employer is not allowed.
overseas deployment including claims for
actual, moral, exemplary and other forms of ☛ EXCEPTIONS :
damages.
the members of the diplomatic corps;
☛ Venue – Money claims or claims for damages international organizations;
should be filed before the Regional Arbitration such other employers as may be allowed by the
branch of the NLRC where the complainant Department of Labor and employment
resides or where the principal office of the 1. name hirees – individual workers who are
respondent/employer is situated, at the option of able to secure contracts for overseas
the complainant. employment on their own efforts and
representations without the assistance or
☛ Compromise Agreement - Consistent with participation or any agency
the policy encouraging amicable settlement of
labor disputes, Sec 10, RA 8042 allows ☛ RATIONALE OF THE PROHIBITION
resolution by compromise of cases filed with the - Filipino workers hired directly by a
NLRC. foreign employer, without government
intervention may not be assured of the
☛ PREMATURE TERMINATION OF best possible terms and conditions of
CONTRACT - Where the worker’s employment work. The foreign employer must also be
contract is terminated long before its agreed protected and may chance upon a Filipino
termination date, and the termination is not worker who do not possess sufficient
shown to be based on lawful or valid grounds, knowledge for which he is employed.
the employer will be ordered to pay the workers
their salaries corresponding to the unexpired ☛ MINIMUM EMPLOYMENT
portion of their employment contract. (Tierra CONDITIONS OF OVERSEAS
Int’l Construction Corp. vs. NLRC). EMPLOYMENT:
HOWEVER, under R.A. 8042, if the illegal 1. Guaranteed wages for regular
dismissal took place on or after July 15, 1995, working hours and overtime pay for
the illegally dismissed overseas worker shall be services rendered beyond regular
entitled to the full reimbursement of his working hours in accordance with
placement fee with interest at the rate of 12% the standards established by the
per annum plus salary for the unexpired Administration
portion of his employment contract or for 3 2. Free Transportation from point of hire to site
mos. for every year of the unexpired term of employment and return;
whichever is LESS. 3. Free emergency medical and dental
treatment and facilities;
4. Just causes for termination of the contract or
- Claims for death and burial benefits of the services of the workers;
involving seamen OCWs which the POEA 5. Workmen’s compensation benefits and war
has jurisdiction are not the same as the hazard protection;
claims against the State Insurance Fund 6. Repatriation of worker’s remains and
of the LC. properties in case of death to the point of
hire, or if this is not possible the possible
- The basis for the award of backwages is the disposition thereof
parties” employment contract, stipulating the 7. Assistance on remittance of worker’s
wages and benefits. salaries, allowances or allotments to his
beneficiaries; and
- The fact that the employee has signed a 8. Free and adequate board and lodging
satisfaction receipt does not result in facilities or compensatory food allowance at
waiver; the law does not consider as prevailing cost of living standards at the
jobsite.
program and their relatives within the 4th
✍ ART 22. MANDATORY REMITTANCE degree of consanguinity or affinity; or
OF FOREIGN EXCHANGE EARNINGS 6. Those whose license has been previously
canceled or revoked.
☛ MANDATORY REMITTANCE
REQUIREMENTS:
CHAPTER II
1. Seamen or mariners: 80% of the basic REGULATIONS OF RECRUITMENT
salary; AND PLACEMENT ACTIVITIES
2. Workers for Filipino Contractors and
Construction Companies: 70% of the basic ✍ ART 29. NON-TRANSFERABILITY OF
salary;
LICENSE OR AUTHORITY
3. Doctors, engineers, teachers, nurses, and
other professionals whose employment
- No license or authority shall be used
contract provide for lodging facilities: same
directly or indirectly by any person other
as #2
than the one in whose favor it was issued
4. All other professionals without board and
or at any place other than that stated in the
lodging: 50% of the basic salary;
license or authority, nor may such license or
5. Domestic and other service of workers; 50%
authority be transferred, conveyed or
of the basic salary.
assigned to any other person or entity.

- Licensees or holders of authority or their


✍ ART 25. PRIVATE SECTOR duly authorized representatives may as a
PARTICIPATION IN THE RECRUITMENT rule, undertake recruitment and placement
AND PLACEMENT OF WORKERS activities only at their authorized official
addresses.
☛ QUALIFICATIONS FOR
PARTICIPATION IN THE OVERSEAS - Change of ownership or relationship of
EMPLOYMENT PROGRAM: single proprietorship licensed to engage
in overseas employment shall cause the
1. Filipino citizens, partnerships or corporations automatic revocation of the license.
at least 75% of the authorized and voting
capital stock of which is owned and - All overseas landbased workers shall be
controlled by Filipino citizens; provided both life and personal accident
2. Minimum capitalization of 1M in case of insurance.
single proprietorship or partnership and a
minimum of 1M paid-up capital for ☛ GROUNDS FOR DISCIPLINARY
corporations; ACTION (Under the MWA of 1995) ;
3. Those not otherwise disqualified by law or
these guidelines to engage in the 1. Commission of a felony punishable by the
recruitment and placement of workers for laws of the Philippines or by the host
overseas employment country;
2. Drug addiction or possession or trafficking of
☛ DISQUALIFICATIONS: prohibited drugs;
3. Desertion or abandonment;
1. Travel agencies and sales agencies of 4. Drunkenness, especially where the laws of
airline companies; the of the host country prohibit the same;
2. Officers or members of the board of any 5. Gambling, especially where the laws of the
corporation or members in a partnership host country prohibit the same;
engaged in the business of a travel agency; 6. Initiating or joining a strike or work stoppage
3. Corporations and partnerships, when any of where the laws of the host country prohibit
its officers, members of the board or strikes or similar actions;
partners, is also an officer, member of the 7. Creating trouble at the worksite or in the
board or partner of a corporation engaged in vessel;
the business of a travel agency. 8. Embezzlement of company funds or of
4. Persons, partnerships, or corporations which money an properties of a fellow worker
have derogatory records; entrusted for delivery to kins or relatives in
5. Persons employed in the Department of the Philippines;
Labor or in other government agencies 9. Theft or robbery;
directly involved in overseas employment 10. Prostitution;
11. Vandalism or destroying company property;
12. Gunrunning or possession of deadly MISCELLANEOUS PROVISIONS
weapons;
13. Unjust refusal to depart for the worksite after ✍ ART 38. ILLEGAL RECRUITMENT (as
all employment and travel documents have per RA 8042 otherwise known as the
been duly approved by the appropriate
Migrant Workers’ Act of 1995)
government agency; and
14. Violation of the laws and sacred practices of
☛ ILLEGAL RECRUITMENT - Any act of
the host country and unjustified breach of
canvassing, enlisting, contracting,
government approved employment contract
transporting, utilizing, hiring or procuring
by a worker.
workers and includes referring contract
services, promising or advertising for
✍ ART 31. BONDS employment abroad, whether for profit or
not when undertaken by a non-licensee
- Cash bond filed by applicants for license or non-holder of authority.
or authority is not subject to garnishment PROVIDED that any such non-licensee
by judgment creditor of agency or non-holder of authority who in any manner,
offers or promises for a fee employment abroad
✍ ART 32. FEES TO BE PAID BY to two or more persons shall be deemed so
WORKERS engaged. It shall likewise include the
commission of prohibited acts whether
- Suspension or cancellation of licenses may committed by a non-licensee or non-holder of
include award of damages to repair the authority or a licensee or holder of authority.
injury caused to its victims.
☛ PROHIBITED PRACTICES:
✍ ART 34. PROHIBITED PRACTICES (CFGIIEOFSBWF)
- A supplementary contract beneficial to C to charge or accept amount beyond
worker not violative of protection afforded amount allowed by law
by the State to workers. F to furnish or publish false notice or
information in relation to Recruitment
✍ ART 35. SUSPENSION AND/OR and Placement
CANCELLATION OF LICENSE OR G to give any false notice and information
AUTHORITY or commit any act of misrepresentation
to secure license or authority
☛ NON-LICENSEE OR NON-HOLDER OF I Induce or attempt to induce workers to
AUTHORITY - any person, corporation or entity quit employment to offer him another
which has not been issued a valid license or except if the transfer is to liberate a
authority to engage in recruitment and worker from oppressive terms and
placement by the Secretary of Labor, or whose conditions of employment (NOTE: it is
license or authority has been suspended, not necessary that worker was actually
revoked, or cancelled by the POEA and the induced or did quit employment)
Secretary. I to influence or attempt to influence any
person or entity not to employ any
worker who has not applied for
employment in his agency
E to engage in the recruitment or
placement of workers in jobs harmful to
public health or morality or to the dignity
of the Phil.
O Obstruct or attempt to obstruct
inspection by Secretary
F Fail to file reports
S Substitute or alter employment contracts
B Become officer or Board member of
corporation engaged in travel agency
W Withhold or deny travel documents
before the departure for monetary or
financial consideration other than those
authorized by the Code.
F Failure to actually deploy without valid
CHAPTER III reason as determined by the DOLE
F Failure to reimburse expenses incurred TITLE II
by the worker in connection with his EMPLOYMENT OF NON-RESIDENT
documentation and processing for
purposes of deployment, in cases where ALIENS
the deployment does not actually take
place without the worker’s fault ✍ ART 40. EMPLOYMENT PERMIT OF
NON-RESIDENT ALIENS
☛ THE QUALIFYING CIRCUMSTANCES -Foreigners or domestic and foreign employers
THAT WOULD MAKE ILLEGAL desiring to employ aliens must secure
employment permit from the DOLE upon
RECRUITMENT AS A CRIME
determination of the non-availability of a person
INVOLVING ECONOMIC SABOTAGE in the Philippines who is competent, able and
ARE : willing at the time of the application to perform
the services for which the alien is desired.
When committed by a SYNDICATE i.e., if it is
carried out by a group of three (3) or more - Foreigners may not be employed in certain
persons conspiring and confederating with nationalized business.
one another; or
(a) When committed in a LARGE SCALE - a non-resident alien worker and the
i.e., if it is committed against three (3) or employer shall bind themselves to train at least
more persons 2 Filipino understudies.

☛ VENUE OF ACTIONS ON ILLEGAL ☛ PROHIBITION AGAINST


RECRUITMENT: EMPLOYMENT OF ALIENS
1. RTC of the province or city where the Section 2-A of the Anti-Dummy Law prohibits
offense was committed; or the employment of aliens in establishment or
2. where the offended party resides at the time entities which have under their name or control a
of the commission of the offense right, franchise, privilege, property or business
→ at the option of the complainant the exercise or enjoyment of which property or
business the exercise or enjoyment of which is
- These circumstances only qualify. They do expressly reserved by the Constitution or the
not define the offense themselves laws to citizens of the Philippines or to
corporations or associations at least 60% of the
- Recruitment and placement activities of capital of which is owned by such citizens.
agents or representatives appointed by a
licensee, whose appointments were not ☛ EXCEPTIONS TO THE
previously authorized by the POEA shall PROHIBITION:
likewise constitute illegal recruitment.
a. where the Secretary of Justice specifically
ART. 38 ( c ) declared unconstitutional since authorizes the employment of technical
only a judge may issue search personnel; or
warrant/ warrant of arrest. The b. where the aliens are elected members of
Sec. Of Labor may only the board of directors or governing body of
recommend not issue. However, corporations or association in proportion to
Closure of establishments of illegal their allowable participation in the capital of
recruiters may still be ordered by such entities.
Secretary of Labor, same being
essentially administrative and
regulatory in nature.(Salazar vs.
Achacoso and Marquez)

☛ PRESCRIPTIVE PERIOD

Illegal Recruitment cases under RA 8042 shall


prescribe in five (5) years Provided, however,
That illegal recruitment cases involving
economic sabotage shall prescribe in twenty
(20) years.

BOOK TWO
HUMAN RESOURCES binds himself to train the apprentice and the
DEVELOPMENT apprentice in turn accepts the terms of training

☛ ON-THE-JOB TRAINING – the practical


TITLE I work experience through actual participation in
NATIONAL MANPOWER productive activities given to or acquired by an
DEVELOPMENT PROGRAM apprentice

☛ HIGHLY TECHNICAL INDUSTRIES – trade,


CHAPTER I business, enterprise, industry or other activity,
NATIONAL POLICIES AND which is engaged in the application of advanced
ADMINISTRATIVE MACHINERY FOR technology
THEIR IMPLELENTATION
✍ ART 59. QUALIFICATIONS OF
✍ ART 45. DEFINITIONS APPRENTICES

☛ MANPOWER - that portion of the nation’s ☛ Qualifications of an Apprentice


population which has actual or potential
capability to contribute directly to the production 1. at least 15 years of age; provided those
of goods and services. who are at least 15 years of age but less
than eighteen may be eligible for
☛ ENTREPRENEURSHIP - training for self- apprenticeship only in non-hazardous
employment or assisting individual or small occupations and the apprenticeship
industries within the purview of this the LC. agreement shall be signed in his behalf by
the parent or guardian or authorized
TITLE II representative of DOLE.
TRAINING AND EMPLOYMENT OF 2. vocational aptitude/ capacity for appropriate
test
SPECIAL WORKERS 3. ability to comprehend and follow oral and
written instructions
CHAPTER I
APPRENTICES ✍ ART 60. EMPLOYMENT OF
APPRENTICES
Types of Special Workers:
- Only employers in highly technical
1. Apprentice industries may hire apprentices and only in
2. Learners apprenticeable occupations as
3. Handicapped determined by the Sec. Of Labor

☛ Requisites for a VALID


✍ ART 58. DEFINITION OF TERMS APPRENTICESHIP

☛ APPRENTICESHIP - practical training on the 1. QUALIFICATIONS OF THE APPRENTICE


job supplemented by related theoretical 2. APPRENTICESHIP AGREEMENT DULY
instruction EXECUTED AND SIGNED PROVIDING FOR
COMPENSATION NOT LESS THAN 75% OF
☛ APPRENTICE - worker who is covered by a THE APPLICABLE MINIMUM WAGE, EXCEPT
written apprenticeship agreement with an ON-THE-JOB TRAINING (OJT)
individual employer or any of the entities 3.APPRENTICESHIP PROGRAM DULY
recognized under this chapter APPROVED BY DOLE
4. PERIOD OF APPRENTICESHIP SHALL NOT
☛ APPRENTICEABLE OCCUPATION - any EXCEED 6 MONTHS.
trade, form of employment or occupation which
requires more than 3 months of practical training
on the job supplemented by related theoretical
instruction

✍ ART 71. DEDUCTIBILITY OF TRAINING


☛ APPRENTICESHIP AGREEMENT - an COSTS
employment contract wherein the employer
☛ Requisites for tax deductions in case learner as regular
employers have apprenticeship employee if he
programs: desires upon
completion of
1. Program duly recognized by the Department learnership
of Labor
2. Deduction shall not exceed 10% of direct 4. In case of 4. Learner is
labor wage pretermination of considered as a
3. Pay his apprentices the minimum wage the apprenticeship regular employee
agreement, the in case of
✍ ART 72. APPRENTICES WITHOUT worker is not pretermination of
COMPENSATION considered as a contract after 2
regular employee mos. of training
and the dismissal
☛ Apprentices who may be hired without
is without fault of
compensation: learner
1.those whose training on the job is 5. Highly technical 5. Semi-skilled /
required by the school; industries and only industrial
2.Training Program Curriculum; in industrial occupations
3.Requisite for Graduation; or occupation
4.A requisite for Board Examination
Learners in piecework/ incentive - rate jobs
are to be paid in full for the work done.
CHAPTER II
LEARNERS
CHAPTER III
✍ ART 73. LEARNERS DEFINED HANDICAPPED WORKERS
☛ LEARNERS - persons hired as trainees in ✍ ART 78. DEFINITION
semi-skilled and other industrial occupations
which are non-apprenticeable and which may be ☛ HANDICAPPED WORKERS - Are those
learned thru practical training on the job in a whose earning capacity is impaired by age or
relatively short period of time which shall not physical or mental deficiency or injury.
exceed 3 mos.
- Subject to the provisions of the Code,
handicapped workers may be hired as
APPRENTICESHIP LEARNERSHIP regular workers, apprentices or learners
if their handicap is not such as to
1. Practical training on 1. Hiring of persons effectively impede the performance of job
the job as trainees in operations in the particular occupations for
supplemented by semi-skilled and which they were hired.
related theoretical other industrial
instruction. occupations which - qualified disabled employee shall be
are non- subject to the same terms and conditions
apprenticeable and of employment and the same
which may be compensation, privileges, benefits, fringe
learned thru benefits, incentives or allowances as a
practical training qualified able-bodied person. Even a
on the job in a handicapped worker can acquire the
relatively short status of a regular employee.
period of time.
☛ Duration of employment - no minimum, no
2. Not less than 3 2. Practical training maximum. Dependent on agreement but is
months practical on the job not to necessary that there is a specific duration
training on the job exceed 3 mos.
but not more than 6 BOOK THREE
months CONDITIONS OF EMPLOYMENT
3. No Commitment to 3. With Commitment
hire to employ the
TITLE I ☛ MANAGERIAL EMPLOYEES - Refer to
WORKING CONDITIONS AND REST those whose primary duty consists of the
management of the establishment in which
PERIODS they are employed or of a department or
subdivision thereof and to other members
CHAPTER I of the managerial staff
HOURS OF WORK
☛ Note: Definition applies only to the 8-
✍ ART 82. COVERAGE hour Labor law

☛ ELEMENTS OF EMPLOYER- ☛ FIELD PERSONNEL - Refer to non-


agricultural employees who regularly
EMPLOYEE RELATIONSHIP:
perform their duties away from the principal
place of business or branch office of the
1. selection and engagement of the
employer and whose actual hours of work
employee
in the field cannot be determined with
2. the payment of wages
reasonable certainty.
3. the power of dismissal
4. the employer’s power to control the
employee (with respect to the means ☛ WORKERS PAID BY RESULTS - Method of
and methods by which the work is to computing compensation based on the
be accomplished) work completed and not on the time spent
in working.
- The last element as mentioned above is
what is known as the CONTROL TEST - ☛ PIECE-RATE METHOD - Where pay is
whether the employer controls or has dependent on unit of product finished, preferred
reserved the right to control the employee where the work process is repetitive and the out
not only as to the result of the work to be put is standardized and easily countable.
done but also as to the means and methods DOMESTIC HELPERS/ PERSONS
by which the same is to be accomplished. RENDERING PERSONAL SERVICES - Perform
This last element is the most important index services in the employers home which are
of the existence of the relationship. usually necessary and desirable for the
maintenance or enjoyment thereof, or ministers
☛ EMPLOYEE - A natural person who is hired, to the personal comfort, convenience or safety of
directly or indirectly, by a natural or juridical the employer, as well as the members of the
person to perform activities related to the employer’s household.
business of the “hirer” who, directly or
through an agent, supervises or controls - The existence of employment relationship is
the work performance and pays the salary determined by law and not by contract.
or wage of the hire.
- Whether or not an employer-employee
relationship exists between the parties is a
☛ Employees Exempt from the Benefits
question of fact. The findings of the
of E-E Relationship NLRC are accorded not only respect but
finality if supported by substantial
1. Government Employees evidence.
2. Managerial Employees
3. Field Personnel ☛ MANAGEMENT PREROGATIVE - except as
4. Family Members dependent on the otherwise limited by special laws, an employer is
employer for support free to regulate, according to his own discretion
5. Domestic Helpers and judgment, all aspects of employment,
6. Persons on the Personal Service of another including hiring, work assignments, working
7. Workers Paid by Result methods, time, place, and manner of work, tools
to be used, processes to be followed,
☛ GOVERNMENT EMPLOYEES - Refers only supervision of workers, working regulations,
to employees of government agencies, transfer of employees, work supervision, lay-off
instrumentalities or political subdivisions of workers and discipline, dismissal and recall of
and of government corporations that are workers.
not incorporated under the Corporation
Code, meaning those which have original - Management prerogative recognizes the
charters. right of the employer to advance its
interest to prescribe standards of work and
impose reasonable quotas or work
assignments, and failure on the part of the work is with the knowledge of his employer
employees to meet the requirement, impose or immediate supervisor
in good faith, constitutes a just cause for his 4. The time during which an employee is
dismissal. inactive by reason of interruptions in his
work beyond his control shall be considered
- New owner/management group has no time either if the imminence of the
obligation to re-employ workers who resumption of work requires the employee’s
freely and voluntarily accepted their presence at the place of work or if the
separation pay and other benefits. A interval is too brief to be utilized effectively
change of ownership in a business concern and gainfully in the employee’s own interest.
is not proscribed by law.
- Only the maximum is prescribed, not minimum.
Part- time work is therefore not prohibited.
✍ ART 83. NORMAL HOURS OF WORK
☛ ENGAGED TO WAIT - when waiting is an
- Shall not exceed 8 hours in a regular working integral part of the job, it is compensable
day
☛ WAITING TO BE ENGAGED - idle time is not
☛ PURPOSE working time, not compensable
- to safeguard the health and welfare of the
laborer and in a way to minimize
unemployment by utilizing different shifts
☛ WHEN TRAVEL TIME
☛ REGULAR WORKING DAYS: The regular COMPENSABLE:
working days of covered employees shall not be
more than five days in a workweek. The 1. Travel from home to work- refers to ordinary
workweek may begin at any hour and on any work travel but where the worker is made to
day, including Saturday or Sunday, designated work on an emergency call and travel is
by the employer. necessary in proceeding to the workplace,
the time spent on travel is compensable
✍ ART 84. HOURS WORKED 2. Travel that is all in a day’s work- time spent
by an employee in travel as part of his
SHALL INCLUDE: principal activity, such as travel from jobsite
to jobsite during the workday, must be
1. All time during which an employee is counted as hours worked.
required to be on duty or to be at a 3. Travel away from home- travel that keeps an
prescribed workplace; and employee away from home overnight.
2. All time during which an employee is
suffered or permitted to work - Work hours of seamen are governed by
the same rules as land based employees.
Thus, they must show sufficient proof that
☛ PRINCIPLES IN DETERMINING
said work is actually performed.
HOURS WORKED: Rest Periods of short duration during
working hours shall be considered as
1. All hours are hours worked which the hours worked.
employee is required to give to his
employer, regardless of whether or not such Preliminary activities compensable when
hour are spent in productive labor or involve controlled or required by employer and are
physical or mental exertion; pursued necessarily and primarily for the
2. An employee need not leave the premises of employer’s benefit,
the workplace in order that his rest period
shall not be counted, it being enough that he
stops working, may rest completely and may
leave his workplace, to go elsewhere
whether within or outside the premises of his
✍ ART 85. MEAL PERIODS
workplace;
3. If the work performed was necessary, or it
benefited the employer, or the employee ☛ MEAL PERIODS
could not abandon his work at the end of his
normal working hours because he had no 1. Should not be less than sixty (60) minutes,
replacement, all time spent for such work and is time-off/non-compensable
shall be considered as hours worked if the 2. Under specified cases, may be less than
sixty (60) minutes, but should not be less
than twenty (20) minutes an must be with full ✍ ART 87. OVERTIME WORK
pay.
3. If less than twenty(20) minutes, it becomes ☛ OVERTIME PAY- Additional compensation
only a rest period and is thus considered as for work performed beyond eight (8) hours
work time within the worker’s 24-hour workday.

☛ NOTE: Employee must be completely 30% of 130% if on a special holiday/rest day


relieved from duty. Otherwise, it is 1. 25% of regular wage if done on a regular
compensable as hours worked. workday
2. 30% of 150% if on special holiday AND rest
- Mealtime is not compensable EXCEPT in day
cases where the lunch period or meal time is 3. 30% of 200% if on a regular holiday
predominantly spent for the employer’s
benefit or where it is less than 60 ☛ RATIONALE
minutes. - employee is given OT pay because he is made
to work longer than what is commensurate with
- Employees may request that their meal his agreed compensation for the statutorily fixed
period be shortened so that they can leave or voluntarily agreed hours of labor he is
work earlier that the previously established supposed to do.
schedule.
- As a rule, cannot be waived, as it is
☛ REQUISITES : intended to benefit laborers and employees.
But when the waiver is made in
1. The employees voluntarily agree in writing to consideration of benefits and privileges
a shortened meal period and are willing to which may even exceed the overtime pay,
waive the overtime pay for such shortened the waiver may be permitted.
meal period;
2. No diminution whatsoever in the salary and ☛ NOTE: OT pay will not preclude payment of
other fringe benefits of the employees night shift differential pay.
existing before the effectivity of the
shortened meal period; - Meal periods during overtime work is not
3. Work does not involve strenuous physical given to workers performing overtime for
exertion and they are provided with the reason that OT work is usually for a
adequate coffee breaks; short period ranging from one to three hours
4. The value of benefits is equal with the and to deduct from the same one full hour
compensation due them for the shortened as meal period would reduce to nothing the
meal period employee’s OT work.
5. OT pay will become due and demandable
after the new time schedule; and ☛ WORK DAY - the 24-hour period which
6. The arrangement is of temporary duration. commences from the time the employee
regularly starts to work. e.g., if the worker starts
✍ ART 86. NIGHT SHIFT DIFFERENTIAL to work 8 am today, the workday is from 8am
today up to 8 am tom.
☛ NIGHT SHIFT DIFFERENTIAL -Additional
compensation of not less than ten percent - The minimum normal working hours fixed by
(10%) of an employee’s regular wage for every the Act need not be continuous to
hour of work done between 10:00 PM and 6:00 constitute the legal working day
AM, whether or not this period is part of the
worker’s regular shift. - Express approval by a superior is not a
prerequisite to make overtime work
- If work done between 10 PM and 6 AM is compensable. HOWEVER, written
overtime work, then the 10% night shift authority after office hours during rest days
differential should be based on his and holidays are required for entitlement to
overtime rate. compensation.

☛ RATIONALE - The right to OT pay cannot be waived.


- it serves as an inducement of employment Such waiver is contrary to law and public
policy.

☛ EXCEPTIONS:
1. When the waiver stipulates higher payment
or rate of OT pay; or W 1. Country is at war or any other
2. Where the contract of employment requires national/local emergency has been
work for more than eight hours of work at declared by the Chief
specified wage per day providing for a fixed Executive/Congress
hourly rate or that the daily wages include N 2. Necessary to prevent loss of
overtime pay. life/property/ in case of actual/impending
emergency in the locality
☛ COMPRESSED WORKWEEK -allowable U 3. There is urgent work to be performed
under the following conditions: on machines, installations, or equipment
1. It is voluntary on the part of the worker in order to avoid serious loss/damage to
2. There will be no diminution of the weekly or the employer or some other causes of
monthly take-home pay and fringe benefits similar nature
of the employees; N 4. Work is necessary to prevent
3. The value of the benefits that will accrue to loss/damage to perishable goods; and
the employees under the proposed schedule C 5. where the completion or continuation
is more than or at least commensurate with of the work started before the eighth
the one-hour OT pay that is due them during hour is necessary to prevent serious
weekdays based on the employee’s obstruction or prejudice to the business
quantification or operations of the employer.
4. The one-hour OT pay will become due and N 6. when it is necessary to avail of
payable if they are made or permitted to favorable weather or environmental
work on a day not scheduled for work on the conditions where performance or quality
compressed work week of work is dependent thereon
5. The work does not involve strenuous physical
exertion and employees must have ✍ ART 90. REGULAR WAGE
adequate rest periods
5. The arrangement is of temporary duration. - include the cash wage only, without deduction
on account of facilities provided by the
✍ ART 88. UNDERTIME NOT OFFSET BY employer
OVERTIME CHAPTER II
WEEKLY REST PERIOD
Undertime work on any particular day shall
not be offset by overtime work on any ✍ ART 91. RIGHT TO A WEEKLY REST
other day. Permission given to the
DAY
employee to go on leave on some other
day of the week shall not exempt the
- Employees should be provided a rest period
employer from paying the additional
of not less than twenty four (24)
compensation.
consecutive hours after every six (6)
consecutive normal work days.
☛ RATIONALE
- An employee’s regular pay rate is lower than - Employer shall schedule the weekly rest day
the overtime rate. Offsetting the undertime of his employees subject to collective
hours against the overtime hours would bargaining agreement. However, the
result in undue deprivation of the employer shall respect the preference of
employee’s extra pay for overtime work. employees as to their weekly rest day
when such preference is based on
religious grounds. But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employee’s choice
for at least two (2) days a month
✍ ART 92. WHEN EMPLOYER MAY
✍ ART 89. EMERGENCY OVERTIME
REQUIRE WORK ON A REST DAY
WORK
☛ WHEN EMPLOYEE MAY BE
☛ WHEN WORKER MAY BE REQUIRED
REQUIRED TO RENDER WORK
TO RENDER OT:
ON A REST DAY:
(WNUNCN)
1. In case of actual or impending emergencies ✍ ART 94. RIGHT TO HOLIDAY PAY
caused by serious accident, fire, flood
typhoon, earthquake epidemic or other ☛ HOLIDAY PAY - A day’s pay given by law to
disaster or calamity, to prevent loss of life or an employee even if he does not work on a
property or in cases of force majeure or regular holiday. It is limited to the ten (10)
imminent danger to public safety regular holidays listed by law.
2. urgent work to be performed on the - employee should not have been absent
machinery, equipment or installation to avoid without pay on the working day preceding the
serious loss which the employer would regular holiday
otherwise suffer
3. abnormal pressure of work due to special Art. 94(b) refers to regular holidays, special
circumstances, where the employer cannot holidays are taken care of under Art. 93.
ordinarily be expected to resort to other
measures ☛ PREMIUM PAY - Additional compensation for
4. prevent serious loss of perishable goods work performed on a scheduled rest day or
5. nature of work requires continuous operation holiday.
for seven days a week
6. work is necessary to avail of favorable ☛ REGULAR HOLIDAYS:
weather or environmental conditions where
performance or quality of work depends 1. New Year’s Day -January 1
upon them 2. Maundy Thursday -Movable date
3. Good Friday- Movable date
✍ ART 93. COMPENSATION FOR REST 4. Araw ng Kagitingan -April 9
DAY, SUNDAY OR HOLIDAY WORK 5. Labor Day -May 1
6. Independence Day -June 12
- this article does not prohibit a stipulation in 7. National Heroes Day`-Last Sunday of
the CBA for higher benefits August
8. Bonifacio Day-November 30
☛ SPECIAL HOLIDAYS 9. Christmas Day-December 25
10. Rizal Day-December 30
1. All Saint’s Day -November 1
2. Last Day of the Year-December 31 Note: Compensable whether worked or
3. And all other days declared by law or unworked.
ordinances to be a special holiday or non-
working day ☛DOUBLE HOLIDAY PAY

NOTE: worked = regular wage plus 30% 1. 200% of the basic wage provided, he works
premium pay on that day and was present or on leave
not worked = none with pay on the preceding workday. If
on leave without pay, rate still applies if
☛ ADDITIONAL COMPENSATION FOR leave is authorized.
WORK ON A REST DAY, SUNDAY 2. 400% if he worked – as per DOLE Memo if
OR HOLIDAY WORK: there are 2 regular holidays in one day eg.
April 9 and Good Friday. Provided the
1. Work on a scheduled rest day - 30% of employee worked on the day prior to the
regular wage regular holiday or on leave with pay or on
2. No regular workdays and rest days -30% of authorized absence.
regular wage for work on Sundays & 3. If there are two succeeding holidays eg.,
Holidays Maundy Thursday and Good Friday, the
3. Work on Special Holidays -30% of regular employee must be present the day before
wage the scheduled regular holiday to be entitled
4. Holiday Work falls on Scheduled Rest Day - to compensation to both otherwise, he must
50% of regular wage work on the first holiday to be entitled to
holiday pay on the second regular holiday.
CHAPTER III
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
REGULAR SPECIAL
HOLIDAY HOLIDAY

- compensable even - not compensable if


if unworked subject unworked considered integrated in their wages on
to certain conditions the basis of the average monthly share of
each employee for the past 12 months
- limited to the 10 - not exclusive since immediately preceding the abolition.
enumerated by the law may provide for
LC other special
holidays TITLE II
WAGES
- rate is twice the - rate is 130% if
regular rate if worked
worked CHAPTER I
PRELIMINARY MATTERS

✍ ART 95. RIGHT TO SERVICE ✍ ART 97. DEFINITION


INCENTIVE LEAVE
☛ WAGE - the remuneration or earnings,
☛ SERVICE INCENTIVE LEAVE (SIL) - Five (5) however designated, capable of being
days leave with pay for every employee expressed in terms of money, whether fixed
who has rendered at least one (1) year of or ascertained on a time, task, piece, or
service. commission basis or other method or
calculating the same, which is payable by
☛ BUT DOES NOT APPLY TO THOSE an employer to an employee under a
WHO ARE: written or unwritten contract of employment
for work done or to be done or for services
already enjoying the said benefits; or rendered or to be rendered and includes
enjoying vacation leave with pay for at least 5 the fair and reasonable value of board,
days lodging, or other facilities customarily
those employed in establishments regularly furnished by the employer to the employee.
employing less than 10 employees
those employed in establishments exempted FAIR DAY’S WAGE FOR A FAIR DAY’S
from granting this benefit by the Secretary LABOR - if there is no work performed by
of Labor. the employee, there can be no wage or
pay unless the laborer was able, willing,
☛ ONE (1) YEAR OF SERVICE.- service within and ready to work but was prevented by
12 months, whether continuous or broken, management or was illegally locked out,
reckoned from the date the employee started suspended or dismissed.
working including authorized absences and paid
regular holidays unless the number of working WAGE SALARY
day in the establishment as a matter of practice
or policy, or provided in the employment contract - compensation for - denotes higher
is less than 12 mos. manual labor degree of
employment
- SIL is commutable i.e., convertible to
cash- the cash equivalent is aimed - Not subject to - subject to execution
primarily at encouraging workers to work execution (Gaa vs. CA)
continuously and with dedication to the
company. ☛ FACILITIES – shall include all articles or
services for the benefit of the employee or his
✍ ART 96. SERVICE CHARGES family but shall not include tools of the trade or
articles or services primarily for the benefit of the
☛ TO BE DISTRIBUTED TWICE A employer or necessary to the conduct of the
MONTH AND AT THE RATE OF: employer’s business.

1. 85% for all covered employees to be equally


distributed among them
2. 15% for management (may answer for FACILITIES SUPPLEMENTS
losses and breakages or distributed to
management)

- If collection of service charges is abolished,


the share of covered employees shall be
3. It is not due to an error in the
- Are items of - Constitute extra construction /application of a doubtful or
expense necessary remuneration or difficult question of law.
for the laborer’s and special privileges or
his family’s benefits given to or - But even in cases of error, it should be
existence and received by the shown that the correction is being done
subsistence laborers over and soon after the discovery of the error.
above their ordinary
earnings wages ☛ BONUS - A supplement or employment
benefit given under certain conditions, such
- part of the wage - independent of the as success of the business or greater
wage production or output. As a rule, it is an
amount granted voluntarily to an employee
- deductible from the - not wage for his industry and loyalty which
wage deductible contributed to the success and realization
of profits of the employer’s business.
✍ ART. 98. APPLICATION OF TITLE Therefore, from a legal point of view, it is
not a demandable and enforceable
☛ This Title shall not apply to the obligation. Unless, it was promised to be
following: given without any conditions imposed for its
payment, as such, it is deemed part of the
1. household or domestic helpers wage.
2. homeworkers engaged in needle-work
3. workers employed in any establishment ☛ 13TH MONTH PAY (OR “ITS EQUIVALENT”)
duly registered with the National Cottage -additional income based on wage required by
Industry P.D. 851 which is equivalent to 1/12 of the total
4. Workers in any duly registered cooperatives basic salary earned by an employee within a
calendar year.
- may be given anytime but not later than Dec.
24
CHAPTER II
MINIMUM WAGE RATES COVERAGE:
- All rank-and-file employees regardless of their
✍ ART 100. PROHIBITION AGAINST designation or employment status and
irrespective of the method by which their wages
ELIMINATION OR DIMUNITION OF
are paid, are entitled to this benefit, provided,
BENEFITS that they have worked for at least one (1)
month during the calendar year.
☛ LEGAL REQ’TS. BEFORE FACILITIES
CAN BE DEDUCTED FROM THE FORMS:
EMPLOYEES’ WAGES:
1. Christmas bonus
1. Proof that such facilities are customarily 2. midyear bonus
furnished by the trade ; 3. profit sharing payments; and
2. Voluntarily Accepted in writing by the 4. other cash bonuses amounting to not less
employee than 1/12 of its basic salary.
3. Charged at Fair & Reasonable Value
- Difference of opinion on how to compute the
☛ THE NON-DIMINUTION RULE -the benefits 13th month pay does not justify a strike
being given to employees cannot be taken
back or reduced unilaterally by the - It must always be in the form of legal tender
employer because the benefit has become . Free rice, electricity cash and stock
part of the employment contract, written or dividends, COLA not equivalent
unwritten.

The rule is applicable if it is shown that


the grant of the benefit is:

1. based on an express policy, or


2. has ripened into practice over a long period
of time, and the practice is consistent and ✍ ART 101. PAYMENT BY RESULTS
deliberate.
- wages shall be paid directly to the workers
to whom they are due.

☛ EXCEPTIONS:
a. in case of force majeure/special
circumstances, payment may be made
through another person under written
authority where the worker has died, the
b. employer may pay the wages of the
deceased worker to the heirs of the latter,
through the Secretary of Labor or his
representative, without the necessity of
intestate proceedings, after the heirs have
executed an affidavit attesting to their
relationship to the deceased and the fact
that they are his heirs to the exclusion of all
others

✍ ART 106. CONTRACTOR OR


SUBCONTRACTOR

☛ LABOR ONLY CONTRACTING - where the


person supplying workers to an employer does
not have substantial capital or investment in
the form of tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such persons are
performing activities which are directly related to
the principal business of such employer.

☛ INDEPENDENT CONTRACTOR - one who


exercises independent employment and
contracts to do a piece of work according to his
own methods and without being subject to
control of his employer except as to the result
thereof.

- A mere statement in a contract with a


company that laborers who are paid
according to the amount and quality of work
are independent contractors does not
change their status as mere employees
in contemplation of labor laws.

☛ REQUISITES FOR A CONTRACTING


OR SUBCONTRACTING TO BE :

1. where the contractor or subcontractor


carries on a distinct and independent
business and undertakes to perform the job
on his own account and under his own
responsibility, according to its own manner
and method and free from the control and
direction of the principal in all matters
connected with the performance of the work
except as to the results thereof;
2. the contractor or subcontractor has
substantial capital or investment; and
3. the agreement yps ` gree nˆ P Yða G and
distinctions embodied in such wage structure
1. Regional Tripartite Wages and Productivity based on skills, length of service or other logical
Board bases of differentiation.
2. Congress
☛ CORRECTING WAGE DISTORTION
MINIMUM WAGE - The lowest wage rate fixed
by law that an employer can pay his Unionized Establishment
employees.
1. Negotiate to correct the distortion.
✍ ART. 123 WAGE ORDER 2. Any dispute arising therefrom should be
resolved through grievance procedure under
☛ WAGE ORDER – an order issued by the their CBA.
Regional Board whenever the conditions in the 3. If the dispute remains unresolved, through
region so warrant after investigating and voluntary arbitration.
studying all pertinent facts and based on the
standards and criteria prescribed by the LC, the Establishments without Unions
Regional Board proceeds to determine whether
to issue the same or not. 1. The employers and workers shall endeavor
to correct the distortion.
☛ EFFECTIVITY of a wage Order – it shall take 2. Any dispute arising therefrom shall be
effect after 15 days from the its complete settled through the NCMB and
publication in at least one newspaper of general 3. If it remains unresolved after 10 days of
circulation in the region. conciliation, it shall be referred to the NLRC.

☛ FREQUENCY of a wage order - Wage Order - Wage distortion is non- strikeable.


issued by the Board may not be disturbed for a
period of 12 months from its effectivity and no ☛ Is the employer legally obliged to try
petition for wage increase shall be entertained & correct a wage distortion?
during said period. EXCEPTION: When It appears so. Article 124 of the Code
Congress itself issues a law increasing wages. provides that “ the employer and the union shall
negotiate to correct the distortions.” If there is
✍ ART 124. STANDARDS/CRITERIA FOR no union, “ the employer and the workers shall
MINIMUM WAGE FIXING endeavor to correct such distortions.

☛ FACTORS FOR DETERMINING ☛ Must the previous pay gaps be


REGIONAL MINIMUM WAGE RATES restored?
(DACNNIPFEE) While that is the aim, it need not
necessarily be restored to the last peso. An
1. Demand for living wages; appreciable differential, a significant pay gap
2. Wage Adjustment vis-a vis the consumer should suffice as correction of the distortion.
price index;
3. Cost of living and changes or increases
therein; CHAPTER VII
4. Needs of workers and their families; ADMINISTRATION AND
5. Need to induce industries to invest in the
ENFORCEMENT
countryside;
6. Improvements in standards of living;
7. Prevailing wage levels; ✍ ART. 128. VISITORIAL AND
8. Fair Return of the capital invested and ENFORCEMENT POWER
capacity to pay of employers;
9. Effects on Employment Generation and ✍ ART. 129. RECOVERY OF WAGES,
Family Income; SIMPLE MONEY CLAIMS AND OTHER
10. Equitable Distribution of Income & Wealth BENEFITS
along the imperatives of economic and
social development - Under Art. 129, the Regional Director is
empowered through summary proceeding
☛ WAGE DISTORTION - situation where an and after due notice, to hear and decide
increase in prescribed wage rates results in the cases involving recovery of wages and other
elimination or severe contraction of intentional monetary claims and benefits, including
quantitative differences in wage or salary rates legal interests.
between and among employee groups in an
establishment as to effectively obliterate the
☛ REQUISITES :
1. Visitorial and 1. Power of the
1. The claim is presented by an employee or enforcement Regional Director or
person employed in domestic or household power of the any duly authorized
service or househelper; Secretary of hearing officers to
2. The claim arises from employer-employee Labor /his duly hear and decide
relations; authorized matters involving
3. The claimant does not seek reinstatement; representatives the recovery of
and exercised through wages, upon
4. The aggregate money claim of each routine complaint of any
employee or househelper does not exceed inspections of interested party
P5, 000.00 establishments

- Access to employer’s records and 2. requires the 2. E-E relationship not


premises existence of E-E necessary since it
→ the day/night whenever work is being Relationship should not include a
undertaken therein claim for
→ includes the right to copy therefrom, reinstatement
to question any employee & investigate
any fact, condition or matter which may 3. No limit as to 3. Aggregate claim of
be necessary to determine violations or amount of claim each complainant
which may aid in the enforcement of the does not exceed
Code and of any labor law, wage order, P5,000
or rules and regulations
4. Appeal is with 4. Appeal with NLRC;
- Issue Compliance Orders (ART. 128) Sec.of Labor ; period of appeal is
→based on the findings of labor period of appeal 5 calendar days
employment and enforcement officers or is 10 calendar
industrial safety engineers made in the days
course of inspection
5. Person exercising 5. The power is
- Issue Writs of Execution (ART. 128) the power is the vested upon a
→for the enforcement of orders Sec. Of Labor or regional director or
→except in cases where the employer any of his duly any duly authorized
contests the findings of the said labor authorized hearing officer of
officers and raises issues supported by representatives the DOLE.
documentary proofs which were not who may or may
considered in the course of inspection. not be a regional
director
- Order Work Stoppage/Suspension of
Operations
→ when non-compliance with the law or TITLE III
implementing rules and regulations WORKING CONDITIONS FOR
poses grave & imminent danger to the SPECIAL GROUP OF EMPLOYEES
health and safety of the workers in the
workplace.
- Conduct Hearings within 24 hours CHAPTER I
→ to determine whether an order for EMPLOYMENT OF WOMEN
stoppage of work/suspension of
operations shall be lifted or not. ✍ ART 130. NIGHTWORK PROHIBITION
→ employer shall pay the employees
concerned their salaries in case the - No woman , regardless of age, shall be
violation is attributable to his fault employed or permitted or suffered to work,
- Require employers to keep and maintain with or without compensation in any :
Employment Records
-→ as may be necessary in aid of his 1. Industrial undertaking between 10PM-6AM
visitorial and enforcement powers 2. Commercial/Non-Industrial undertaking
between 12 MN-6AM
3. Agricultural undertaking at nighttime unless,
she is given a period of rest of not less than
ART 128 ART 129 9 consecutive hours
✍ ART 131. EXCEPTIONS
1. Employee notified her employer of her
1. Actual/Impending Emergencies pregnancy of the probable date of her
caused by serious accident, flood, childbirth
typhoon, epidemic or other disasters or 2. Full payment be advanced by the employer
calamity, to prevent loss of life or within 30 days from the filing of the maternity
property, or in cases of force majeure or leave application
imminent danger to public safety 3. That payment of daily maternity benefits
2. Urgent work to be performed on shall be a bar to the recovery of sickness
machineries, equipment or installation, to benefits
avoid serious loss 4. That the maternity benefits shall be paid
3. Work is necessary to prevent serious loss of only for the first four (4) deliveries or
perishable goods miscarriages
4. Where she holds a responsible position of 5. That the SSS shall immediately reimburse
managerial/technical nature/engaged to the employer of 100% of the amount of
provide health and welfare service maternity benefits advanced to the
5. Nature of the work requires the manual skill employee by the employer
and dexterity of women workers & cannot be 6. That if an employee member should give
performed with equal efficiency by male birth or suffer a miscarriage without the
workers required contributions having been remitted
6. Where women workers are immediate family for her by her employer to the SSS, or
members of the family operating the without the latter having been previously
establishment or undertaking notified by the employer of the time of the
7. Analogous cases pregnancy, the employer shall pay to the
SSS damages equivalent to the benefits
✍ ART 132. FACILITIES FOR WOMEN which said employee member would
otherwise have been entitled to.
☛The Secretary of Labor may require
employers to: - ART 133 (b) subsists, i.e., the maternity
1. Provide seats proper for women and permit leave shall be extended without pay on
them to use the seats when they are free account of illness medically certified to arise
from work or during office hours provided out of the pregnancy, delivery, abortion, or
the quality of the work will not be miscarriage, which renders the woman unfit
compromised; for work , unless she has earned unused
2. To establish separate toilet rooms and leave credits from which such extended
lavatories for men and women and provide leave may be charged.
at least a dressing room for women;
3. To establish a nursery in the establishment; ☛ LIMIT OF THE BENEFIT: Applies only for the
4. To determine appropriate minimum age and first four deliveries irrespective of who is the
other standards for retirement or termination father of the children, and may not be availed of
in special occupations such as those of flight in addition to sickness benefit under the Social
attendants and the like Security program.

☛ RA 8187 (PATERNITY LEAVE)


✍ ART. 133 MATERNITY LEAVE
BENEFITS - This law grants paternity leave of seven day
with full pay to all married male employees
☛ MATERNITY LEAVE UNDER THE SSS in the private and public sectors.
LAW
A female member, who need not be - It is available only for the first four
legally married, who has paid for at least three deliveries of the legitimate spouse with whom
(3) monthly contributions in the 12-month the husband is cohabiting.
period immediately preceding the semester of

her childbirth or miscarriage shall be paid a daily DELIVERY – includes childbirth, miscarriage, or
maternity benefit equivalent to 100% of her abortion.
average daily salary credit for 60 days or 78
days, in case of caesarian delivery. Purpose: to enable the husband to lend support
to his wife during the period of recovery and/or in
REQUISITES : the nursing of the newly born child.
☛ CONDITIONS : 2. the above acts would impair the
employee’s rights or privileges under
1. he is an employee at he time of the delivery existing labor laws or
of his child; 3. The above acts would result in an
2. he is cohabiting with his spouse at the time intimidating, hostile, or offensive
she gives birth or suffers a miscarriage; environment (Sec. 3[a], RA No. 7877)
3. he has applied for paternity leave ; and
4. his wife has given birth or suffered a ✍ ART 136. STIPULATION AGAINST
miscarriage MARRIAGE

- Paternity leave, if not availed of, is not - it shall be unlawful for an employer to require
convertible to cash. as a condition for employment or continuation of
employment that a woman employee shall not
WIFE - refers to the lawful wife which means the get married, or to stipulate expressly or tacitly
woman who is legally married to the male that upon getting married a woman employee
employee concerned. shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or
- Where the male employee is already otherwise prejudice a woman employee merely
enjoying the paternity leave by reason of by reason of her marriage.
any law, decree, executive orders or any
contract, agreement or policy between
employer and employee and the existing ✍ ART 138. CLASSIFICATION OF
paternity benefit is greater, the greater CERTAIN WOMEN WORKERS
benefit shall prevail; if lesser, the
existing benefit shall be adjusted to the - Any woman who is permitted to work or
extent of the difference. suffered to work, with or without
compensation, in any night club, cocktail
lounge, massage clinic, bar or similar
✍ ART 135. DISCRIMINATION establishment, under the effective control or
PROHIBITED supervision of the employer for a substantial
period of time as determined by the
- It shall be unlawful for any employer to Secretary of Labor, shall be considered as
discriminate against any woman employee an employee of such establishment for
with respect to terms and conditions of purposes of labor and social legislation.
employment solely on account of her sex.

☛ Acts of Discrimination: CHAPTER II


EMPLOYMENT OF MINORS
a. Payment of a lesser compensation for work
of equal value.
✍ ART 139. MINIMUM EMPLOYABLE
b. Favoring a male employee over a female
employee solely on the account of their AGE
sexes.
- Any person between ages 15 and 18 may
be employed in any non hazardous work.
Sexual Harassment in a Work-Related or
Employment Environment :
☛ Exception and condition on the
1. the sexual favor is made as a employment of a child below 15:
condition in the hiring or in the
employment, re-employment or 1. When the child works directly under the sole
continued employment of said responsibility of his/her parents or legal guardian
individual or in granting said individual who employs members of his/her family only
favorable compensation, terms, under the following conditions:
conditions, promotions, or privileges; a. employment does not endanger the
or the refusal to grant the sexual favor child’s life, safety, health and morals
results in limiting, segregating or b. employment does not impair the child’s
classifying the employee which in normal development
anyway would discriminate, deprive or c. the parent/legal guardian provides the
diminish employment opportunities or child with the primary and/or secondary
otherwise adversely affect said education prescribed by DECS
employee
2. Where the child’s employment or participation sufficient means in the place where the head
in public entertainment or information through of the family lives.
cinema, theater, radio, or television is essential, 12. at least elementary education
provided that: 13. employment certification

a. employment does not involve CHAPTER IV


advertisements or commercials
promoting alcoholic beverages, EMPLOYMENT OF HOMEWORKERS
intoxicating drinks, tobacco and its by-
products or exhibiting violence; ☛ INDUSTRIAL HOMEWORK - a system of
b. There is a written contract approved production under which work for an employer or
by the DOLE; and contractor is carried out by a homeworker at his
c. The conditions prescribed for the home.
employment of minors {above stated}
are met. ☛ INDUSTRIAL HOMEWORKER - a worker
who is engaged in industrial homework
NONHAZARDOUS WORK OR UNDERTAKING
– one where the employee is not exposed to any BOOK FOUR
risk which constitutes an imminent danger to his HEALTH, SAFETY AND SOCIAL
safety and health. WELFARE BENEFITS
☛ HAZARDOUS WORKPLACES:
TITLE I
1. Where the nature of the work exposes the MEDICAL, DENTAL AND
workers to dangerous environmental OCCUPATIONAL SAFETY
elements, contaminants or work conditions;
2. Where the workers are engaged in CHAPTER I
construction work, logging, fire-fighting, MEDICAL AND DENTAL SERVICES
mining, quarrying, blasting, stevedoring,
dock work, deep-sea fishing, and
✍ ART 156. FIRST-AID TREATMENT
mechanized farming;
3. Where the workers are engaged in the
☛ FIRST-AID TREATMENT – adequate,
manufacture or handling of explosives and
immediate, and necessary medical and dental
other pyrotechnic products;
attention or remedy given in case of injury or
4. Where the workers use or are exposed to
illness suffered by a worker during employment,
heavy or power-driven machinery or
irrespective of whether or not such injury or
equipment; and
illness is work-connected, before a more
5. Where the workers use or are exposed to
extensive medical and/or dental treatment can
power-driven tools,
be secured.
CHAPTER III ☛ FIRST AIDER – any person trained and duly
EMPLOYMENT OF HOUSEHELPERS certified as qualified to administer first aid by the
Phil. National Red Cross or by any other
☛ RIGHTS OF HOUSEHELPERS: organization accredited by the former.

1. minimum cash wage TITLE II


2. non-assignment to non- household work EMPLOYEES’ COMPENSATION AND
3. opportunity for education: if under 18 (cause
STATE INSURANCE FUND
of education part of compensation)
4. board/ lodging, medical attendance
☛ WORKMEN’S COMPENSATON- A general
5. just and humane treatment
and comprehensive term applied to those laws
6. indemnity for unjust termination of services
providing for compensation for loss resulting
7. just causes for termination
from the injury, disablement or death of a
8. right not to be required to work more than 10
workman through industrial accident, casualty or
hours a day
disease.
9. for days vacation each month
10. to regular wages if employed in industrial or
☛ COMPENSATION - Money relief afforded
commercial or agricultural undertaking
according to the scale established under the
11. funeral expenses must be paid by employer
statute as differentiated from compensatory
if the househelper has no relatives with
damages recoverable in an action at law for
breach of contract or for tort.

☛ Conditions for an occupational


disease and the resulting disability or
WORKMEN’S EMPLOYEES death to be compensable :
COMPENSATION COMPENSATION
ACT LAW 1. The employee’s work must involve the risk
described therein
1. There is a 1. no presumption of 2. The disease was contracted as a result of
presumption of compensability the employee’s exposure to the described
compensability risks;
3. The disease was contracted within a period
2. there is a 2. no presumption of of exposure and under such other factors
presumption of aggravation necessary to contract it;
aggravation 4. There was no notorious negligence on the
part of the employee
3. there is a need for 3. no need for the
the employer to employer to ☛ DEATH - Loss of life resulting from injury
controvert the controvert or sickness
claim within 14
days otherwise ☛ DISABILITY -Loss or impairment of a
he is deemed to physical or mental function resulting from injury
have waived the or sickness.
right
☛ DIRECT PREMISES RULE – as a general
4. payment of 4. payment of rule, the accident should have occurred at the
compensation compensation place of work to be compensable
made by the made by SSS/GSIS
employer through the State ☛ EXCEPTIONS TO THE DIRECT
Insurance Fund PREMISES RULE

1. INGRESS- EGRESS/ PROXIMITY RULE-


✍ ART 164. DEFINITION OF TERMS. when the employer is about to leave or
about to enter the premises of the employer
☛ INJURY - Any harmful change in the human by way of the customary or exclusive means
organism from any accident arising out of and in of ingress or egress.
the course of employment.
2. GOING TO OR COMING FROM WORK-
☛ GROUNDS FOR AN INJURY TO BE when the injury occurred when the
COMPENSABLE employee is proceeding to or from his work
on the premises of the employer
1. the employee must have been injured at the →must be a continuing act and has not
place where the work requires him to be diverted therefrom by any other activity
2. the employee must have been performing and he has not departed from his usual
his official functions route to or from his workplace and if the
3. if the injury is sustained elsewhere, the employee is on a special errand, it must
employee must have been executing an have been official and in connection with
order for the employer his work.
4. the injury was not due to the employee’s
intoxication, willful intention to injure or kill 3. EXTRA-PREMISES RULE – (or the shuttle
himself or another, notorious negligence or bus rule) where the company provides the
otherwise prohibited under this Title. means of transportation in going to or
coming from the place of work is liable to the
☛ SICKNESS - Any illness definitely accepted injury sustained by the employees while on
as an occupational disease listed by the board said means of transportation.
Commission or any illness caused by
employment subject to proof that the risk of 4. SPECIAL ERRAND RULE – injury
contracting the same is increased by working sustained outside the company premises is
conditions. compensable if his being out is covered by
an office order or a locator slip or a pass for 2. Willful intention to injure or kill himself or
official business. another;
3. Notorious negligence; or
5. DUAL PURPOSE DOCTRINE – allows 4. Unless otherwise provided by the LC
compensation where a special trip would
have to be made for the employer if the ☛ NOTORIOUS NEGLIGENCE –deliberate act
employee had not combined the service for of the employee to disregard his own personal
the employer with his own going or coming safety.
trip.
☛ Is death through suicide compensable ?
6. SPECIAL ENGAGEMENT RULE – covers As a rule NO. However as held in NAESS
field trips, outings, intramurals and picnics vs. NLRC, the supreme court ruled that a self
when initiated or sanctioned by the employer inflicted death could be compensable if :

7. POSITIONAL AND LOCAL RISKS 1. by agreement of the parties


DOCTRINE – If an employee by reason of 2. The suicide/death is caused by a work
his duties is exposed to a special or peculiar related or compensable illness or
danger from the elements, that is, one disease.
greater than that to which other persons in
the community are exposed and an ✍ ART 173. EXTENT OF LIABILITY
unexpected injury occurs, the injury is
compensable - Simultaneous recovery under the Labor
Code and the Civil Code cannot be made.
8. FORCE MAJEURE OR AN ACT OF GOD- The action is selective and the employee
when one in the course of his employment is may either choose to file the claim under
reasonably required to be at a particular either. But once the election is made, the
place at a particular time and there meets an claimant cannot opt for the other remedy.
accident although one which any other
person then and there present would have - Simultaneous recovery under the LC and
met irrespective of his employment. the SSS can be made as per an advisory
opinion dated May 23, 1989 of Sec. Drilon
since PD 1921 has lifted the ban on
CHAPTER II
simultaneous recovery.
COVERAGE AND LIABILITY
☛ STATE INSURANCE FUND: all covered
✍ ART 168. COMPULSORY COVERAGE employers are required to remit to a common
fund a monthly contribution equivalent to one
- ECL applies to all employers, public or percent of the monthly salary credit of every
private, and to all employees, public or covered employee. The employee pays no
private including casual, emergency, contribution to the fund. Any agreement to the
temporary, or substitute employees. contrary is prohibited.

- Every employee is covered who is not over


60 years over 60 years of age or over 60 CHAPTER VI
years of age if he had been paying
contributions prior to the age of 60
DISABILITY BENEFITS

✍ ART 170. EFFECTIVE DATE OF DISABILITY CATEGORIES:


COVERAGE
☛ TEMPORARY TOTAL - if as a result of the
injury or sickness, the employee is unable to
- The employer is covered compulsorily from
perform any gainful occupation for a continuous
first day of operation and the employee from
period not exceeding 120 days
the first day of employment
☛ PERMANENT TOTAL - if as a result of the
✍ ART 172. LIMITATIONS OF LIABILITY injury or sickness, the employee is unable to
perform any gainful occupation for a continuous
- NO COMPENSATION can be obtained if the period exceeding 120 days
injury, death or disability is a result of the
employee’s: ☛ PERMANENT PARTIAL - if as a result of the
injury or sickness, the employee suffers a
1. Intoxication;
permanent partial loss of the use of any part of ☛ LABOR RELATIONS LAW - Concerned with
his body. the stabilization of relations of employer
and
☛ DEATH BENEFITS employees and seeks to forestall and adjust
- The System shall pay to the primary grievances through - the encouragement of
beneficiaries upon the death of the covered collective bargaining and the settlement of
employee an amount equal to his monthly labor disputes through conciliation,
income benefit, plus ten percent thereof for mediation and arbitration.
each dependent child, but not exceeding
five, beginning with the youngest and - Absent an employer-employee relation,
without substitution. The income benefit there is no labor relations to speak of.
shall be guaranteed for five years.
☛ PARTIES TO LABOR RELATIONS
☛ DEPENDENTS: CASES:
1. The employee’s organization,
1. the legitimate, legitimated, legally adopted or 2. management, and
acknowledged natural child who is 3. the public
unmarried, not gainfully employed and not
over 21 years of age or over 21 years of - The public is always to be considered in
age provided that he is incapable of self- disputes between labor and capital, and it
support due to a physical or mental defect ahas been held that the rights of the
which is congenital or acquired during general public are paramount.
minority
2. legitimate spouse living with the employee - Labor relations policy under the LC is
3. the parents of said employee wholly embodied in Section 3 Article XIII of the
dependent upon him for regular support 1987 Constitution which guarantees to all
workers their right among others to self-
☛ BENEFITS organization, collective bargaining and
negotiations, peaceful land concerted
1. for life to the primary beneficiaries, activities including the right to strike in
guaranteed for five years accordance with law, and to participate in
2. for not more than 60 months to the policy and decision making processes
secondary beneficiaries in case there are no affecting their rights and benefits as may be
primary beneficiaries provided by law.
3. in no case shall the total benefit be less that
P 15, 000.00
✍ ART. 212. DEFINITIONS
☛ THE BENEFICIARIES ARE:
☛ LABOR DISPUTE INCLUDES:
PRIMARY BENEFICIARIES
a. Dependent spouse until he remarries 1. any controversy or matter concerning terms
b. dependent children ( legitimate, legitimated, or conditions of employment or
natural born or legally adopted) 2. the association or representation of persons
in negotiating, fixing, maintaining, charging
SECONDARY BENEFICIARIES or arranging the terms and conditions of
a. Illegitimate children and legitimate employment, regardless of whether the
descendants disputants stand in the proximate relation of
b. parents, grandparents, grandchildren employer and employee.

☛ EMPLOYEE- shall not be limited to the


employees of a particular employer.
BOOK FIVE
LABOR RELATIONS - it shall include any individual whose
work has ceased: as a result of or in
connection with any current labor
TITLE I dispute; or because of unfair labor
POLICY AND DEFINITIONS practice

✍ ART 211. DECLARATION OF POLICY - If he has not obtained any other:


1. Substantially equivalent and
2. Permanent employment