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Labor Standards – Atty.

Jefferson Marquez by Brattys 👑


A.Y 2017-2018 ( Midterm & Finals Coverage) SMLP | JT | ML | AC | SDB | ACE | HMM |MMFM |CMYV

Labor Standards Law are sing your physical effort toward the
production of goods.
LABOR LAW - JUNE 19, 20017
A: When was the Labor Code promulgated?
Atty(A): Our subject is labor standards law so
we have to know what is meant by labor. What S: It was promulgated on May 1, 1974.
is your understanding of the word labor?
A: When did it took effect?
Student (S): My understanding of the word
labor is that it is a form of a or physical toil... S: November 1, 1974.

A: How would you describe labor as a noun A: How many months before it took effect?
and in its general sense?
S: 6 months.
S: Labor is the exertion of physical and mental
activities of a human for the production of A: Does the Labor Code say that with regard on
goods or services the effectivity of the Labor Code in the
Philippines?
A: Exertion of the human being by his physical
or mental effort or both towards the production S: Yes Atty.
of goods or services. Am I performing labor
now? A: Where can you find labor standards law?

S: Yes Atty. S: PD 442

A: What kind of labor? A: So that is a Presidential Decree that was


issued in the Martial Law years.
S: By teaching
How many fields of Labor Law do we have?
A: Teaching. I'm doing labor by teaching and
I'm exerting mental effort towards the S: There are three
production of services. Anything else that
describe labor (1) Labor Standards
(2) Labor Relations
S: In ordinary sense: it is the working class of (3) Social and Welfare Legislation
the community.
A: How many systems of labor do we have?
A: So when you say labor can also refer to the
working class in society. And when you S: We have four systems
describe the relation between capital and labor,
labor there refers to the working class in the (1) Slavery
society. What else? (2) Serfdom
(3) Free Artisan
S: Labor also includes those people that are (4) Wage System
unskilled or skilled.
A: The free artisan is otherwise known in the
A: Now you are classifying labor. When we say modern society as "independent
labor we are referring to a job, work or service. contractorship".
It can also refer to the exertion by human being
of his physical or mental effort or both towards Which of those two systems are recognized in
the production of goods and/or services. the Philippines?

E.g. S: The Independent Contractorship and Wage


System.
You are working for a manufacturing company
that process raw materials into finished goods. A: In our Labor Code of the Philippines what
Then you are performing a labor because you system of labor is valid?

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A: Give me an example
S: Wage System.
S: Engineer
A: Correct! and what do you understand by the
wage system? A: Who exercises his profession. What kind of
engineer? What does the civil engineer do?
S: Under the wage system, a laborer is working
in an industry where he/she expects to be paid S: The civil engineer constructs a building.
by the work that he/she rendered. They also go to the construction to check
whether or not the wires were properly placed,
A: Is that your best answer? In independent the facilities...
contractorship likewise renders services and he
gets paid for it. So how do distinguished A: In the wage system of labor Ms. Giganto,
independent contractorship from the wage who are the parties?
system?
S: In the wage system, the parties are
S: In the free artisan atty. the one who
contracted the laborer have interest over the (1) Employer
results of the service or the product whereas in (2) Employee
the wage system it's the entire thing (from pre
employment to employment ...) A: Those are the parties in the wage system.
Who exercises control? the employer or the
A: What is the SUBJECT of control in the wage employee?
system of labor compared to free artisan or
independent contractorship? S: The employer.

M & M -The MEANS AND MANNER. A: Control over again what?

E.g. S: control over the means and manner of the


performance of the job, work or service
If the teacher does his job inefficiently, does the including other results of thereof.
school have any control of the results?
A: What do you think am I? independent
S: Yes atty. They can discipline. contractor or an employee?

A: Let's now try to identify the key difference S: Independent contractor


between the two systems.
A: Why do you say that? What job do I do in
In the wage system, the person who hires class?
another exercises control not only on the
means and manner by which a person S: Teaching.
performs his job, work, or service including the
results thereof. I think atty. you are an employee because you
are required by the school to teach labor
Distinguish that from free artisan or standards 6:30 to 7:30 pm .
independent contractorship.
A: I do not teach at 10 o clock?
S: In independent contractorship, the employer
with the laborer does not take control over such S: No atty because you will already be
things because... beyond...

A: No. You mean to say there's no element of A: because you have no power to fix your
control in independent contractorship? schedule sir. Since you are just an employee
you have to abide what the school provides
S: There is atty but only with regard to the you.
results thereof.
So what control did the school exercise?

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(Calls another student)


S: They have control over the means and
manner including the results. S: Migrant Workers Act

A: I must have an Id to enter the school A: Give another example because the other
premises because NO ID NO ENTRY and I'm class already answered that.
just an employee then i have to follow.
Yung Migrant Workers and Overseas Filipino
(Calls another student) Act is an example of a piece of social
legislation because our overseas Filipino
A: Give an example of a basis in the enactment workers are being in a disadvantageous
of Labor Law. position whenever they work on a foreign
country because they dont enjoyed exactly the
S: One of the basis in enacting Labor Law is same protection as if they were working in the
social justice. philippines.

A: Social Justice. Where can you find it? Our Philippine Constitution guarantees
protection to OFWs and one of the laws that
S: In the community atty. was enacted by Congress is the Migrant
Workers and Overseas Filipino Act.
A: Social Justice in our community??? In
society.... S: Retirement Law

What piece of legislation or law or document A: Is that in the labor code? Yes. Again that is a
can we find social justice? good example of social legislation but I want a
special law. By the way why do you say
S: Under the constitution atty. Retirement Law is a piece of social legislation?

A: Yes there is. Can you describe to us simply S: because social legislation is helping to
what you understand by social justice. balance between those...

S: Social justice refers to an equilibrium society A: OFFSET guro of the economic imbalance
wherein there is a balance opportunity among
the people. Equal opportunity among the S: Yes. so how can now for those people who
people in the society. are beyond the mandatory age...

A: That's social justice? If there is equal A: So No work, no pay?


opportunity, there is social justice? Can you
help me out and make me understand. S: Yes.

S: Example atty is the distribution of the natural A: then how can they offset that?
resources. The people in that certain society
should received equally the natural resources. S: This Retirement Pay Law can help in
providing them.
A: Why? is there such thing as inequitable
distribution of natural resources? A: Yes. When you retire because you reached
the age of retirement under the law whether
S: In reality it is existing in the society atty. you like it or not the law will retire you. Oh
kawawa naman yung mga retirees because the
A: It would be clearer in the mind if you give an day after they retire they have no more work. If
example of a piece of legislation that was they have no more work, they have no more
enacted on the basis of social justice. income. If they have no more income, they will
find difficulty on how to *inaudible. But good
S: A law against Child Labor. enough we have the Retirement Pay Law and
the law will require the employers to give them
A: that is social justice? the retirement pay and that will be use by the
retiree for his/her day to day subsistence.

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A: How is it worded?
Think of another example that is a special law.
"No law shall be passed impairing the
S: Domestic House Workers Act obligation of contracts"

A: What about it? Say completely the law. Who passes the law?

S: Domestic Workers Act or Batas S: Congress


Kasambahay
A: The congress then cannot pass a law that
A: Why is that a piece of legislation? will impair the obligation of contracts. Give me
an example.
S: because domestic workers are easily the
ones deprived of their rights. For example, in (Saved by the bell)
abroad domestic workers are always beaten...

A: They are vulnerable, abused and LABOR STANDARDS (JUNE 21, 2017)
exploited.So our congress enact a legislation
that will protect amidst of the abuser, Atty (A): Give me one limitation in the
exploitation... enactment of labor laws and explain briefly. You
need to remember that when Congress enacts
But that is a protective labor standard Mr. Lim. laws, they have to take note of these limitations
otherwise, the law will be considered void
S: It is also required for the employer to provide because that is a constitutional limitation eh.
their SSS, PhilHealth...
Student (S): Equal Protection Clause.
A: Ayun. So domestic workers act provides
SSS coverage for domestic workers. And how A: where can we find that principle?
would that help our domestic workers?
S: Art. 3, Sec. 1 of the 1987 Constitution. Bill of
S: Social Security Benefit. Rights. No person shall be deprived of life,
liberty, and property without due process of law
A: Example.... nor shall any person be denied equal
protection.
(1) Sickness Benefit.
(2) Disability Benefit A: How will you survive this equal protection
(3) Health Benefit clause briefly? How does it mean?
(4) Loan Benefit
S: As enunciated by the SC in several
PhilHealth is another piece of legislation. It decisions, it does not mean absolute equality
provides Hospitalization benefit. but to be equal in the right circumstances.

S: YES! A: Are saying that Congress cannot enact a law


that will provide higher minimum wage for male
A: Since you mentioned about SSS the Social workers only?
Security Act is a special law that is a very good
example of Social Legislation. S: Yes sir. There is no basis why the congress
will award higher wages just because their sex
Now give me a limitation to the enactment of is different.
Labor Law.
A: it means equality among equals. What other
S: Non- Impairment Clause. limitations? You cannot separate the other from
one if there is no substantial distinction. So if
A: Is that in the constitution? you will become a Senator or Congressman, do
not propose a law that will violate this principle
S: Yes. because it is one of the limitations in the
enactment of laws. Another limitation?

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S: Due process. A: if it is enacted by the legislature, it is valid?


But not yet effective until such time that it has
A: in the same provision that you read a while been published?
ago?
S: yes sir.
S: Yes sir.
A: the phrase “otherwise provided by law”, does
A: when you say due process of law, what does that dispense publication?
that mean?
S: no sir. It has already been decided in Tanada
S: it is the right to be heard. vs. Tuvera sir.

A: in so far as labor law is concern, due A: for the rules and regulations implementing
process of law simply means opportunity to be the labor code, what agency has the power to
heard. You give the employee the opportunity promulgate these rules and regulations?
to explain his side why he should not be
terminated. If he does not avail of such S: the DOLE.
opportunity, then that opportunity is considered
lost(?). A: who heads the DOLE? And to what branch
of government does it belong to?
When labor laws are enacted, do they take
effect immediately upon promulgation? S: Secretary. Executive branch. sir.

S: no sir, the law requires publication. Art. 2 of A: where DOLE, through the secretary of labor
the CC: “Laws shall take effect after 15 days promulgates rules and regulations
following the completion of their publication implementing the labor code, what power does
either in the official gazette or newspaper of it exercise?
general circulation, unless otherwise provided
by law”. S: administrative power?

A: what is the reason for the publication? A: does DOLE have legislative power?

S: in relation to due process, it is to allow S: Yes


people to know the law.
A: but can it promulgate rules and regulations?
A: but isn’t it that there is a provision in their What kind of power does it exercise when it
civil law that ignorance of the law excuses no issues rules and regulations? RULE MAKING
one from compliance therewith? How do you POWER OR QUASI-LEGISLATIVE POWER
reconcile that provision with that requirement? DELEGATED BY THE CONGRESS.

S: if it is not being published, it becomes The labor code has a provision that the power
ignorance of the fact and not of the law. given to the DOLE to issue rules and
regulations implementing the labor code and
A: so that art. 3 in your CC, it presupposes that that is through a delegated legislative power or
the law2 has been published? rule making power.

S: yes sir: Whenever these rules and regulations are


promulgated by DOLE, are these considered
A: the validity of the law, is it different from the laws? Just like what is enacted by Congress?
effectivity of the law?
S: yes sir
S: yes sir.
A: I thought you said only laws are enacted by
A: who has the power to enact laws? Congress? DOLE is a mere administrative
agency. It is only a creation of law but
S: congress. Congress is a creation of the Constitution.

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S: what I mean to say sir is that they cannot go S: they can adjudicate sir
beyond the law sir.
A: they CAN adjudicate on claims of workers.
A: so these are not considered as laws but do Everyone goes to DOLE to report their erring
they have the force and effect like laws? employers.

S: yes sir Okay, so if the DOLE has the power to


adjudicate the claims of workers, what power
A: can the DOLE expand the law itself through does it exercise?
these rules and regulations? Can they go
beyond and put to coverage what is not found S: quasi-judicial sir
in the law itself?
A: it adjudicates on money claims yung DOLE
S: No sir by rendering a decision. Are their decisions
considered as part of the laws of the land?
A: of course not! Can they restrict the law?
S: no sir
They cannot expand nor restrict the law. Kaya
nga implementing rules and regulations. A: isn’t it that since you have the civil code, is
there a provision there on becoming part of the
Can these rules and regulations in the future be laws of the land?
amended by the DOLE itself? Repealed by
DOLE itself? S: Art 8 of the CC sir. “Judicial decisions
applying or interpreting the laws or the
YES because it is their rule making power, they Constitution shall form part of the legal system
have the power to modify, revise or repeal of the Philippines.”
these rules and regulations because they are
only rules and regulations intended to A: so what about decisions rendered by the
implement the law. If the law cannot prohibit DOLE? Are they considered part of the legal
then they cannot prohibit unless they are given system of the Philippines? is DOLE part of the
the power to make such prohibition. Do you judiciary?
understand? Diba? the source cannot…how do
you say that? Bsta yan. (The spring cannot rise S: no sir.
above the source).
A: alright. What is your idea about this National
Can the DOLE adjudicate claims of workers? Tripartite Industrial Peace Council (NTIPC)?
Try, hear and resolve worker’s claims? Worker What is tripartite? Why three parties?
has a complaint for non-payment or
underpayment of wages. Can they report that S: Basically sir, instead of relying only to the
to DOLE and adjudicate these claims? government, they inform the laborers the
employers (di na masabtan sa kahinay ang
S: yes sir. There is a labor arbiter sir. answer ni Ortiz) involve the laborers and
employers. it is something that we have
A: you mean to say that adjudication of claims gathered in international conventions sir. It
are exclusive only to labor arbiters? allows to enact more bills in labor policies (na di
najud masabtan)
S: I change my answer
A: so when it comes to policy and decision
A: are you a woman? I will only allow you to making involving labor employment, the
change your answer if you recite this. This is a National Tripartite Industrial Peace Council has
quotable quote from the SC, “A woman has the a significant role (saba kayo gilihok2 ang phone
privilege of changing her mind but only in the di madungog). Why don’t they exclude the
affairs of the heart where the rules are employers? Or employees group? Or the
permissibly inconstant.” government? Why always three?

A: so what’s your answer? S: it’s much better sir

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S: yes sir, there is a test sir. There is a four-fold


A: does this Tripartite council possess test sir. First is selection and engagement of
legislative power and enact policies? the employees, power of dismissal, power to
control, and
S: No sir
A: Payment of wages. So, if a person selects
A: if you look at our topic assignment, you will and engages another to performs services for
notice that I mentioned the NTIPC, is there a him, is it conclusive that there exist an
law that created it? employer-employee relationship?

S: it is in the Labor Code sir Art. 70??? Art. 290 S: I believe sir that it is not conclusive sir
sir. (see codal kay di maklaro naay jeep sigeg because we have to distinguish between an
peepep and bag sig lihok) employer and employee sir and one which is an
independent contractor sir.
A: So that provision creates the council? How
many, what’s the composition? A: so you mean to say that there could be other
forms of contractual relationship?
S: Secretary of Labor, various employers and
employees S: yes sir. Ahm, one of which sir is independent
contractor and an agent ah yeah
A: Sector?! Labor sector. Does that law also
create tripartite industrial peace council A: independent contractorship. That is the
induwendju ?(??? Murag nahulg ang phone di relationship.
madungog)
S: the other one is independent contractor and
S: yes sir. The NTIPC (???) should also ahmm
establish representatives by the government
(???) employers to serve as (?????) A: there are many contractual relationship dba?
If I sell my car to you and you buy it for ten
A: By the way, this council has an oversight thousand pesos, what kind of contractual
function. So it is (???) that a department relationship exists? And you agreed to buy it.
regulation is not as effective as it is, then they
could convene and recommend to the S: Contract of sale
government to revise these rules and
regulations. They get themselves together, A: oh diba that is contract of sale. There are a
convene, discuss and make the proper lot. If a buy a parcel of land and I lease it out to
consultations among the members to come up you, and you agreed to lease it for a fee, what
with decision making policies. They can even kind of contractual relationship is created.
(???) with congress if they want to for the
enactment of better laws for labor and S: Contract of lease
employment.
A: so there are different forms of contractual
So that is the function of this council. There is relationship and labor standards law is an
one in the national level and there can also be employer-employee relationship. This
established in the regional levels. In Region 7 independent contractor ship that you mention,
for example, I came across a council before in is that found in the labor code or in some other
Mandaue Tripartite Industrial Peace Council laws?
composed of government representatives,
employeers and workers. Since it is from S: Found in civil code
Mandaue, its members come from the
employers sectors and establishments in A: Civil law? I see because what we have in the
mandaue. Like San Miguel. labor law is the wage system of labor. Btw, how
many systems in labor do we have in the
Is there a test in determining the existence of Philippines and what are prohibited?
employer-employee relationship?

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S: we have 4 systems and what are prohibited


sir are what we have slavery and second is S: in terms of application sir, the labor
serfdom. standards sir basically

A: how many fields of labor law on the other A: they’re applied when the worker is?
hand do we have?

S: three kinds sir  Part II

A: fields S: When the workers are working already.

S: yes sir fields sir, the Labor Standards, Labor A: So, when the worker is working, then labor
Relations and Social Legislation. standards law apply.

A: I see. So since our subject is on labor S: Yes sir. As compared to social legislation,
standards law, what is your understanding of wherein employers are no longer working.
labor standards?
A: But they get benefits. By the way, you
S: My understanding of labor standards sir is mentioned about SSS, the Social Security Law,
that it sets up the terms and conditions in which can you recall one benefit that the law provides
the employers must complies with in return to workers who are unable to work?
ahm on the side of the employee sir
S: I think they are getting benefits in terms of
A: in general what is meant by labor standards? wages

S: relationship of employment sir A: Okay. I'm a worker and an employee, right?


I'm not at work, teaching. Do I get paid? 
A: involving?
S: Yes sir. 
S: employer and employee
A: Under what law? Under what field of labor
A: wages! Hours of work, benefits and terms law? 
and conditions of employment. That is labor
standards. That is one of the fields of labor law. S: Labor standards, sir.
Is that the same with labor relations law?
A: Labor standards because it covers workers
S: it is not the same sir because in labor who are working, they get paid. And, paid how
relations sir, it talks about the interaction much? 
between the employer and employee and most
of all the mechanism sir in which they intend to S: Minimum wage, sir. 

A: for the betterment of the worker’s terms and A: Unless of course I got sick. Do I get paid by
conditions. Is labor standards exactly the same the employer? Am I entitled to sickness benefit
with social and welfare legislation? under labor standards law?

S: it is not really exactly the same sir because S: Yes.
in social legislation sir, it is in general sir, it is for
the promotion of the welfare of the public sir. A: So, you mean to say in the Labor Code there
Example sir as what you mentioned earlier is is a sickness benefit there? 
the retirement pay law.
S: No work, no pay. 
A: retirement pay? What else?
A: But we have social and welfare legislation.
S: SSS We have the SSS so you can avail from there.
Can you say that the three fields of labor law
A: can you distinguish one from the other in complement each other? 
terms of application?

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S: Yes, sir.
A: An independent contractor could be an
A: Alright. Let's go back to employer-employee individual who practices his profession. So a
relationship. The power of selection and dentist is a profession. He practices his
engagement. That's the first of the four-fold profession, offer his services to the public. Not
test. You go to a dental clinic in Ayala Center, to any particular person unlike of an employee.
you get your tooth repaired. Is there an How do you call the consideration that the paid
employer-employee relationship?  on the contractor? Is it called wage or a fee?

S: No, sir. There is none.  S: A fee sir. 

A: So, what is it? A: Kaya doctor's fee, dentist fee, diba? So, on
and so forth. Because a professional may be or
S: It is a kind of independent contractorship. may not be an employee. Depending on where
the control exists. If you control both the means
A: Who's the contractor and who is the and manner including the results then there
principal? exists an employer-employee relationship. 

S: The dentist is the contractor because he has Next question is: In the power of selection and
the control over the means and the manner. I'm engagement, to whom does this power belong
the principal because I have the control over to?
the results.
S: The employer
A: What do we define independent contractor? 
A: And this power to select and engage, is it a
S: An independent contractor is one wherein... right of the employer or a mere prerogative?
it is separate and distinct from the principal. He
controls the means, manner and method S: It is a prerogative of an employer sir
except the results thereof. 
A: Is this prerogative of the employer written in
A: He controls or he does not control? the labor code of the Philippines? Or not? So,
what is the legal basis of this power to select
S: He does not. and engage if it is not conferred by law? What
is the nature of this power to select and
A: Except only in the results. That is engage? What kind of prerogative is it?
independent contractor. While in the case of
employee... can the dentist be employed as an S: --
employee of a company for example? 
A: It is management prerogative. There's
S: Yes sir nothing in the labor code that expressly
provides for it because it's essentially
A: So, one could be an employee and one INHERENT  on management. Just like Police
could be an independent contractors. Where Power which is an inherent power of the State.
lies the difference? We don't need to spell it out. However, just like
any other prerogative, it is not absolute, right? 
S: The power of control.
S: Yes sir
A: In an employment relationship, the control is
present where? A: There are limitations provided by law. Do
you agree to that? Give me one.
S: The means and manner including the result. 
S: Under the labor code of the Philippines, one
A: While in independent contractorship, the limitation of selecting and engaging is
control is present only on? Stipulation against Marriage.

S: The means, manner, and method except on


the results thereof. 

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A: Alright. Can you spell out for us his A: So, you will still have a partner. So, would
provision? What is prohibited on the part of the that policy be valid? In other words, will you
employer? apply for a job, and I say in my establishment I
don't want women getting married. And you
S: Under the labor code, it is prohibited that the said ‘yes no problem’ because you want the
employer cannot forced upon the employee to job. But you can be pregnant anytime and have
stipulate in a contract that she cannot get a boyfriend. Is that agreement valid or not?
married. 
S: No sir
A: It prohibits the employer from doing what?
A: Why?
S: It prohibits the employer from stipulating in
the contract of the employee that- S: Because it is against the labor code.
Because in our family code, Art. 1, it says that
A: She or He? An employee can be a male. So, family is the inviolable... Marriage is an
what does the law say? inviolable social institution. No contract should
be contracted against marriage. 
S: Art. 134 Stipulation Against Marriage. It shall
be unlawful for the employer to require as a A: But you can satisfy your love interest even
condition of employment or continuation of without getting married. So, what is exactly the
employment that a woman employee shall not reason behind the law to make such
get married, or to stipulate expressly or tacitly prohibition? If there is no such prohibition, what
that upon getting married a woman employee situation will we have?
shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or S: Women will be prevented from getting
otherwise prejudice a woman employee merely married and they will not have their own family
by reason of her marriage.  and legitimate children. 

A: It is directed to women not to men. A woman A: It is the State who cares in having marriage.
shall not get married... so are you telling me The State promotes marriage before having a
that if I am the establishment and I have a job family. If we will allow stipulation against
vacancy and you are one of the applicants, and marriage, then we will have a society where
I say "you are very, very much qualified for the women will have partners but without the
job" but I would require you not to get married benefit of marriage. We will have a situation
before I hire you. And you said "that's fine with where what exists is not a marriage relationship
me because I have no intention to get married but a common law relationship. But so far as
now". Is that stipulation valid or not? the law is concerned, the State has to be
consistent to its policy that considers marriage
S: No, because it violates Art. 134 which as an inviolable social institution. Therefore, the
prohibits stipulation against marriage.  State encourages couples to get married. If you
allowed employers to impose that stipulation,
A: It prohibits the employer from imposing or women will not have the opportunity to march
requiring as a conditional employment that the at that red carpet and wear the wedding gown. 
woman shall not get married. What's the reason
behind the law? Why the law made that Why is marriage wedding important to women? 
prohibition? Would it prevent you from pursuing
your love interest? Yes or No? S: *opinion*

S: Yes. A: You are speaking for your partner that may


have different opinion. *Class erupts into
A: So, you will follow the policy and not get laughter* 
married? In other words, will it prevent you from
falling in love with another person just because So far as the State is concerned they would not
there is that policy? like a relationship that is simply common law or
the SC said it, an illicit relationship. So, when
S: No the labor code was promulgated, what was in
the mind was that non-marriage relationship is

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an illicit or illegal relationship in so far as the A: I see. Can you mention one hazardous
eyes of the law.  workplace and activity?

Next prohibition? S: On section 6, one is mining and quarrying.

S: Second is minimum requirement of age.  A: What's wrong with mining and quarrying?
What's in there that you perceive as
A: Meaning to say the labor code regulates the hazardous?
employment of persons?
S: It's the extraction of minerals
S: Yes
A: What's in mining and quarrying ba?
A: Tell us about it
S: It is very dangerous place for a child to work
S: The minimum employable age is 15 years since they will be exposing their lives in
old below is not allowed to be employed danger. 

A: 15 years and below or below 15 years old?  A: Any mining company in cebu?

S: 15 years old and below, sir S: Atlas mining. 

A: No children below 15 shall be A: Nag sara na ya. You have Carmen Copper.
Yung panahon ni Gina Lopez, do you know
S: Shall be employed unless her? Do you find her admirable?

A: So, the law says no children shall be S: Her work sir.


employed below 15 period. Diba?
A: So not the person? *class erupts into
S: There is an exception sir. laughter*

A: Alright. Tell us about it *Sir, ranting about how Gina Lopez was
rejected to be the DENR Secretary. *
S: No children shall be employed below 15
unless under the sole responsibility and But what did the college of law support? Any
guidance of the parents and a permit is given officer of the Lex Circle here?
by the Department of Labor and Employment
(DOLE). And it also says that the children *'Castigating' the Lex Circle. Be proactive as an
below 15 should not work in hazardous working organization talk. *
environment or in an environment that debase,
demean, or degrade them. *Shared the labor activities he did and he will
do. Encouraged the class to know the priorities
A: So those persons who are exactly 15 years which are the workers. Lex Circle should help
old, 16 years old, 17 years old, can they be and assist them. It should be a powerful and
employed? working council (Atty. Marquez’ challenge). *

S: Yes, sir but under the condition that they will A: What about an establishment engage in
work not in a hazardous environment. mining and quarrying. Can he hire a person
who is 18 years old even if it's hazardous?
A: So, persons who are 15, 16 and 17 maybe
employed as long as they are not working in S: No sir. He cannot
hazardous work places. So, how do they know
that their workplace is hazardous or not? A: Even if he is 18 years old?

S: The DOLE promulgated Order 149 that S: If he is 18 years old and above sir
describes the hazardous environments.
A: If 18, in sakto? Can he hire the person who
is 18 as a miner? Allowed by law or not?

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individual. Termination of work on the sole


S: 18 sir, yes. Below 18, not. basis of actual, perceived, or suspected HIV
status is deemed unlawful.
A: If you are below 18, you are considered a
minor or of age? A: what is the reason behind the law?

S: Minor. S: the reason sir is that even in the workplace,


you should not be discriminated for the reason
A: So, children are minor. And children are of having AIDS
defined by law as below 18. So, 18 above you
can be hired in any of those hazardous work A: we are still on employment so let us not
places even if it will kill you. That's allowed by discuss the post-employment matter. We are
law. Any other hazardous work places? still prior to hiring. What may not be done by
the employer even before the hiring.
S: In the field of construction.
S: the employer is prohibited to discriminate
A: Heavy equipment are used there. Diba? prior to hiring a person who is having AIDS.
Something may fall from the 10th floor and die. 
A: if there is a job hiring and because of her
*continue to topic 3, 4, and 5* symptoms, I strongly think that she is positive
of HIV. Are you telling me that the employer
cannot decline the employment?
Labor Law (June 28, 2017)
S: the employer cannot
Attorney (A): Can you tell us of a special law
with regard to the limitation of the employer in A: why why why? What’s the reason?
hiring employee?
S: having AIDS sir, the job is not related sir
Student (S): Under RA 8504 or the “Philippine
Aids Prevention and Control Act of 1998” A: but the employee is gonna die so I’d rather
not employ him anyways.
A: does that special law contain a labor related
provision as regards the hiring or employment S: it is illegal
of workers?
A: why nga?! What is the reason behind the
S: yes sir. law. What was in the mind of Congress why
they enacted such provision?
A: what is prohibited on the part of the
employer under that law? S: because having HIV or AIDS, we will see
first if that kind of disease will affect the
S: it prohibits the employer to discriminate or performance of the employee and the nature of
not hire an employee for the reason of having a his work
sexually transmitted disease.
A: so you mean to say that a person who is HIV
A: I thought it’s AIDS. STD is not necessarily positive performs ** then you terminate him
AIDS. What is AIDS by the way? because of his disease? WHAT IS THE
REASON BEHIND THE LAW?
S: Acquired immune deficiency syndrome
S: I am not sure sir. You cannot terminate a
A: improve your answer. Under that law, what is person if he has AIDS if it doesn’t hinder his
the employer prohibited to do? work the n that employee would still be able to
carry out his work.
S: (I inserted the correct proviso nlng)
Prohibits the discrimination from pre- A: my question is the reason behind the law!
employment to post-employment, including
hiring, promotion or assignment, based on the S: because it gives opportunity for the laborers
actual, perceived or suspected HIV status of an and help specifically …

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to do the work or that disability cannot diminish


A: is there anything wrong with being positive of the performance of the employee.
HIV?
A: is it lawful on the part on the employer to
S: no sir advertise that “there is a vacancy in my
company for the position of accounting
A: NONE! So far as the Congress is concerned, supervisor. Disabled persons are not allowed”
they find nothing wrong with a person who has
that disease. So there is no reason for the S: it is not valid sir because it is already a
employer to discriminate one with regard to discrimination on its face against disability.
hiring. That is the intent of the law. It finds
nothing wrong! It considers it similar to any A; so let a person apply for his job and try to
other kind of disease. Why? How is HIV determine later whether he is qualified or not.
transmitted? But if you are discriminating at the first
instance, it is already illegal because you are
S: as far as I can remember in my high school looking at ones disability as a basis to decline
sir, it can be transmitted through sexual employment.
intercourse
So any other special law?
A: oh, so is there sexual intercourse type of job
in the workplace? Will you fuck each other S: worst forms of child labor?
during lunch break? THERE IS NONE DIBA?
There is no job with that description so there is A: that is related to age requirement yan.
no reason to discriminate the person who has
aids because that can never be transmitted to a What about Responsible Parenthood and
workplace. Sex is not part of their job. Oh ano Reproductive Health Act? What is prohibited on
pa? the part of the employer?

S: through sharing of needles. Blood S: the employer is prohibited to take the


transmission. employee to have for example

A: oh? Will you engage to blood transmission? A: tell us the wording of the law
Yung mga faculty ba dito nag bablood
transmission ba? You do not have blod S: the employer is prohibited to prevent the
transmission with Randi, Waldy and Galeon employment of the person for the reason of
(TGG HAHAHAA). being pregnant

S: also if the mother is HIV positive, lactating A: deny employment by reason of pregnancy
(?? Di ma klaro sig katawa ang class) you say. That’s all?

A: oh? Gipang susu ko baa ng mga teachers If a female applicant comes to me for
dito? Di naman ah! Diba? So that is the reason employment purposes, and I notice that she is
why there should be a law prohibiting pregnant, I will not accept her. Is that valid or
discrimination. not?

The law also prohibits the employer from S: invalid sir. Contrary to the law.
terminating an employee for the same reason.
You cannot. You just let the person die in a A: what else?
natural way.
S: if the employer would require a certain
Oh so any other special law? Let us move number of children.
faster.
A: would require? So here comes a female
S: Magna Carta for Disabled Person. Under applicant, I noticed in her application form that
this special law, it is prohibited on the part of she has indicated although she is not married
the employer to discriminate a certain person that she has three children. Oh! I only allow
by reason of his disability if he/she is qualified

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female applicant having only one child. One A: so that is the reason? THE LAW RESPECT
child policy kasi kami dito. Is that valid? THE RIGHT OF CHOICE CLASS.

S: invalid sir So if the employer will violate? The employer


will go to jail?
A: but isn’t it not management prerogative? To
determine who will be hired or employed? S: yes sir following due process

S: a productivity of a person cannot be A: of course!


measured by having a certain number of
children. We were discussing the hiring power of the
employer. That is the first in the four-fold test in
A: so what is the reason behind the law? the employer-employee relationship. What is
the second?
S: to protect the institution of family.
S: Payment of wages sir
A: having a children is not an issue in a
workplace. But if the employer requires that A: who will pay and who is entitled to wages?
one must be single. Is that illegal?
S: the one who will pay is the employer and the
S: yes sir. one is entitled to wages is the employee

A: okay so let us go back to the main law. What A: is it valid to stipulate between the parties that
else is prohibited? How about the use of for labor rendered, no wages shall be paid?
contraceptives?
S: no atty. That’s illegal
Example, I am the owner of my company. I will
say go out and multiply. No one is allowed to A: what law says that?
use any form of contraceptive because I
believe the bible just like Moses. Go out and S: Art. 97?
multiply!
A: why? What does it say?
S: illegal sir because no one is compelled to
multiply. S: that the employee should be given
compensation with respect to the services
A: what? I am not prohibiting them, I am rendered.
encouraging them to multiply and the using of
contraception will be given sanction. A: but that provision speaks of the definition of
wages. Where in the law that says that it should
S: against the law sir. be unlawful for an employer not to pay worker
wages for the labor rendered? You said it’s the
A: so I change my mind. In my company, I don’t labor code.
want corporation building. As much as possible
I want people to have less children because I S: I think it is the constitution
don’t want to contribute to the impoverished
sector of the society. Therefore I have here a A: you have to be specific. You want to work in
box full of contraceptives. Just choose what my company that is fine with me but I have no
color you want whether it is flavored or not and money to pay you your wages. You say no
that is free of charge. problem sir. Is that stipulation valid or not? That
is my question and if it is not valid, what is your
S: completely invalid sir. Because the policy of legal basis?
the management is already a.., the liberty of the
employee to choose because as a person or as S: ---
an employee, you have to decide your own.
The policy of the management is already A: let me go to another point. Does the labor
beyond the law. code define what is meant by wages?

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S: yes atty. Wages are those remunerations or A: When the law speaks of Wage within the
service are given to the laborer for the services context of civil law, it refers to what?
he has rendered and at the time stated and
could either be by month, by week or by S: The money or compensation. 
place(?).
A: I thought you said there is a distinction
A: haha, that is what the labor code say? Does between Salary and Wage for purposes of that
the labor code lay the definition of the cash provision?
component only?
S: The distinction is that the Wage refers to the
S: no atty, it also includes the fair and money that is gotten by the laborer as
reasonable value of facilities. compared to a Salary which is given to a
laborer who has a higher character of ---.
A: so it is not limited only to the cash Basically, the law here wants to protect, in
component but likewise include the fair and essence, the laborers.
reasonable value of facilities.
A: When you speak of laborer, what kind of
Now, insofar as the labor code is concern, is laborer is referred to that civil law provision?
there a difference between wage and salary?
S: Those who are considered who are low in
S: no atty. The labor code uses them character. Those who are in the managerial or
interchangeably to mean as a compensation for rank-in-file employees.
the services by a worker.
A: Rank-in-file? So, if the worker borrows
A: so they have the same etymology? They are money from the bank in order to build his
used interchangeably? house. Yet unable to pay the bank and the bank
sues him and obtains a judgment against him
Now, do we have a law in the Philippines fixing which has become final. Are you telling us that
the minimum wage? What law? the bank cannot apply for execution or
attachment of the worker's wage?
S: yes atty. The Wage Rationalization Act.
S: With respect to the worker's wage... No. The
A: is there any instance where there is a need bank cannot---
to distinguish wage from salary?
A: Why?
S: yes atty. With respect atty when the wage is
subject to execution or attachment as what is S: Because the law itself prohibits the
mentioned in the Civil Code. attachment or the execution of the wages of the
laborer. 
A: ah civil code? What does the CC say about
it? A: If he borrows money?

S: Art. 1708 – the Civil Code states that the S: Yes, atty. 
laborers wage shall not be subject to execution
-- or except those debts incurred by --- A: So, there is an exception by law.

A: Can you interpret that law to us? S: Yes, atty. But, with respect to the wage the
bank cannot attach it but if he has properties
S: The wage of the laborer cannot be subject to then I think the bank can attach it. 
execution. Example is the laborer has a debt
and he has defaulted in the payment. Now, the A: But regarding the wage, it is exempt from
other party who wants to claim the money execution or attachment?
which has already a court order. The wage of
the laborer cannot be subject to execution or S: Yes.
cannot be taken by the other party because of
this law.  A: What does the law seeks to protect?

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S: It seeks to protect the employee because


those who have less in life should have S: Which is Php 366 per day, sir.
more in law. They already have minimal
wage then the bank could cease it and they A: Is that correct, Mr. B? 
could not afford to maintain the minimum
standard of living.  S2: Yes, sir.

A: If the person in the example is in a A: Is that what the law says that I have to pay
managerial position, will your answer be the my workers the minimum wage?
same?
S: Yes, sir.
S: No, atty.
A: So, I have no choice to pay them more?
A: Why not?
S: But it's okay sir if you pay them all.
S: Because in the law what it protects is only
the wage but not the salary. Because the salary A: So, what is it? Under our labor law, how
is given to those who are in managerial much is the employer required to pay his
position.  workers? 

A:  Because when we speak of salary it S: It depends upon the employer.


denotes a higher grade of employment
compared to a wage which refers to manual A: Do you not realize your answer? If that will
laborer.  be the advice then employers will just pay their
workers the minimum wage. 
*calls another student*
S: My advice to you is that it is in your
Under our law, how much is the employer discretion whether to hear it or not.
required to pay his worker?
A: So, how much do I pay my workers?
S: The minimum wage, sir. With regards to
Cebu City, it's minimum wage is Php 366.00. S: You should pay them the reasonable wage.

A: If I organize a business in Cebu City and I A: I will pay my workers any amount as long
employ workers and I ask for your advice. You as it does not fall below the prescribed
will advise to me then that under the existing minimum wage. That is the correct answer. I
law I have to pay my workers the minimum will pay them any amount as long as it is
wage. How much is it? not below the prescribed minimum wage.
Because if you say you have to pay the
S: Php 366.00. minimum wage, that is Php 366 only. You
are trying to prerogative to pay more. 
A: But I want to pay them more. 
Again, I go back to the question. Under our
S: If you want to pay them more that is already existing labor law, how much is the employer
your choice.  required to pay his workers?

A: So how much should I pay for my workers? S: Under our existing labor law, the employer
can pay any amount as long as it does not fall
S: It depends upon the employer--- below the prescribed minimum wage. 

A: Under our existing labor law, how much is A: Stressing naman if you will advise that
the employer required to pay his workers? everybody will be getting only the minimum
wage. Do you know what I mean?  There is
S: He is required to pay the minimum wage, nothing to illegal to pay more. You can pay
sir.  him any amount as long as it does not fall
below the prescribed minimum wage. So,
A: Which is? In Region 7?

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you to pay AT LEAST the minimum wage. S: Yes, sir. The Board has the power.

Do not say 'pay the minimum wage'.
A: So, it can fix and it can also grant. Which
My next question is: Do you agree with the of these two agencies have the power to
other student that there is a law that fixes promulgate rules and regulations on fixing
the minimum wage in the Philippines?  of wages?


S: Yes, sir. S:  The agency that has the power to


promulgate rules and regulations is the
A: And do you agree that it is the Wage National Wages and Productivity
Rationalization Act?  Commission (NWPC). 


S: Yes, sir. A:  Who chairs the NWPC and what is the
composition of that Commission? 
A: So, under this law,  what agencies of
government are empowered to fix the S:
minimum wage? ➢ Chairman - Secretary of DOLE
➢ Vice-Chairman - Director-General of
S: In the Philippines, we have two agencies NEDA (National Economic
that are principally tasked in fixing the Development Authority)
minimum wage. First, we have the National ➢ Two representatives each from the
Wages and Productivity Commission employers and employee sectors
(NWPC) and  Regional Tripartite Wages and
Productivity Board (RTWPB). A:  Which of these two agencies have the
power to REVIEW wage orders issued by
A: Okay. So, there are two principal agencies the Board? 
created under the Wage Rationalization
Act.  Which of these two agencies have the S: The National Wages and Productivity
power to fix the minimum wage? Commission (NWPC), sir. 

S: The  Regional Tripartite Wages and A: Who is currently our Secretary of the DOLE?
Productivity Board (RTWPB) has the power.

S: Mr. Silvestre Bello III
A: Who chairs the Board?

A: Who is the regional director of Region-7,
S:  The Chairman of the Board is the right now?
Regional Director of the Department of the
Labor and Employment.  S: ---

A: Describe to us the  composition of the A: Try to find out. Okay. As regards to power
board.
 the fix the minimum wage, we have resolved
that it belongs to the  Regional Tripartite
S: The composition of the board is headed by Wages and Productivity Board (RTWPB).  In
the  fixing the minimum wage, does the labor
Chairman - Regional Director of DOLE code prescribe the standard and/or criterion
Vice-Chairmen (2) - Regional Director of that must be considered? 
NEDA and Regional Director of DTI
Tw o r e p r e s e n t a t i v e s e a c h f r o m t h e S: Yes, sir.
employers and employee sectors 
A: Mention one. (Sir allowed to look at the
A: So, that is the composition of the  Regional notes since a long enumeration)

Tripartite Wages and Productivity Board
(RTWPB).  Aside from the power to fix the Check your labor code of the Philippines on
minimum wage, does the Board has the standard criteria that must be considered in the
power to grant exemption from the fixing of minimum wage. Taking into account
prescribed minimum wage?
 the composition of the Board. When there is a
representative from the Department of Trade

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and Industry, a representative from National A: Does that mean that Congress cannot enact
Economic Development Authority.
 a law that will fix the minimum wage
nationwide? It cannot?

S: One criteria is the (1) Cost of Living 
S: Yes, sir

A: And which agency are you referring which is
the member of the Board? The NEDA or the A: So, are you telling me that Congress is
DTI?
 prohibited from you know


S: The NEDA, sir. S: Congress has a discretion, sir. If it passes a


new law but right now it is the  Regional
A: On the cost of living?
 Tripartite Wages and Productivity Board
(RTWPB).

S: Yes, sir.
A: So, it has to pass a new law to amend the
A: What else? law? 

S:  (2) The needs of the workers and its S: Yes, sir

family, sir

A: So, you're saying that's a restriction on the
A:  It's a criterion in fixing. In other words, legislative power of Congress?
the Board has to weigh these standards
whenever it fixes the minimum wage. It S: Yes, sir

cannot simply side with the employer or
workers. It has to consider all these A: They surrendered it to the Board to take care
standards on the criteria. That's the reason of fixing the wages? It has no indirect power? 

why the composition of the Board comes
among its members a representative from Let me point another question. You said that
NEDA and DTI. Hindi pwedeng one-sided the Board has the power to fix the minimum
lang. Because the law speaks of wage? What does it issue in fixing the
RATIONALIZING the fixing of wages. It must minimum wage?
be a rational fixing of wage. 
S: It issues a Wage Order
Unlike in the past where is the president of the
Republic of the Philippines that usually fixes the A: What is a Wage Order?
minimum wage applicable nationwide. But
since we have the Wage Rationalization Act, S: A wage order is an order promulgated by
the power to fix the wage is now vested upon the Board regarding the fixing of the wage. 
the  Regional Tripartite Wages and Productivity
Board (RTWPB) as well as the National Wages A: Is that wage order reviewable? If yes, by
and Productivity Commission (NWPC). In other whom?
words, Congress has delegated it to these
agencies. Does that mean that Congress is S: Yes, sir. It's the National Wages and
prevented from fixing the minimum wage?  Productivity Commission (NWPC).

S: Yes, sir.
 A: You mean to say NWPC is higher than the


Board? 
A: It is prohibited? It does not have the
plenary legislative power? Who enacted the S: Yes, sir.
Wage Rationalization Act?

A: Of course, it's higher than the Board. The
S: The Congress. Because these government chairman pa lang is the Secretary of the DOLE.
agencies are there to fill in the gaps of the law.
That's why they are the ones to prescribe the Next question is: In the fixing of minimum
minimum wage.  wage, does the existing rules of the NWPC
allowed any worker to file a petition of a
wage increase?

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wages, who are allowed to file a petition for a


S: Yes, sir  wage increase? 

A: So, how many workers we have in the S: The labor union and the representative of
Philippines? What do you think? More than a the employee

million. 
A: Representative of the employee? Who would
S: Yes, sir that be?

A: Are you telling us that each of these worker S: Anyone who they chose sir
is allowed to file a petition for wage increase
with the Board? A: Like who? A lawyer? A lawyer can file a
wage increase in behalf of the workers?
S: No, sir. They must be represented by their
Labor Union. S: On behalf of the employer

A: So, who are considered allowed to file a A:  There are only two principal parties who
petition of wage increase? can file. 
(1) Any legitimate labor union and 
S: (1) Labor Union (2) The employer

A: Not individual workers?  Not the workers themselves. They cannot.


It's the union that is composed of the
S: Yes, sir.  workers because it its own legal personality
to file. The Board cannot handle the petitions if
A: So, legitimate labor union. Who else? all the workers will file individually. That's why
they are limited to certain interested party. You
S: The (2) employers, sir must be either an employer or a legitimate
labor organization. 
A: Can the employer file a petition for wage 

increase 
Will you file a petition of wage increase you
S: I mean the employee.  lodged it with the NWPC or the Board? In
other words, where do you file your petition
A: You have to make up your mind. My for the wage increase?
question to her is that who is allowed to file the
petition for a wage increase under existing S: With the Board

rules of NWPC
A:  Under the Rules, will that petition be
S: It's the employee and the labor union, sir published in a newspaper of general
circulation? 
A: So, you mean to say individual employees?
Me for example, I'm an employee. Torregosa, S: Yes, sir

Gravador, and Galeon are also individual
employees. Each of us can file a wage increase A :  W h a t ' s t h e p u r p o s e b e h i n d t h e
with the Board? 
 publication requirement?

S: Yes, sir
 S: To give notice 

A: And so, is the rest of the workers in the A: To whom?



Republic of the Philippines?
S: To the people

S: But um--

A: To the workers in that region that there is
A: Yes or No? Make up your mind. My question a petition for a wage increase and to give
to her is: Under the existing rules of fixing of them the opportunity to join the petition or
to oppose the petition. This is very important

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because when you become a lawyer, you may (3) The rules of procedure have not been
become a lawyer for the labor union or followed
employer's sector. And they will ask you. So,
you have to know this step by step procedure.
 A: If the Board holds a hearing but failed to
publish the petition. Is that a deviation of the
Of course, the Board will deliberate on the rules?

petition and decide whether to grant or not to
grant it taking into account the standard criteria S: Yes, sir
in fixing of wages.  Will there be a public
hearing or mere private hearing? A: That's a ground to appeal the wage order.
Where do you appeal the wage order that is
S: There will be a public hearing.  issued by the Board?

A: Public hearing, yan. Usually it's held in the S: To the National Wages and Productivity
Capitol where everybody will be informed that Commission (NWPC)
say from 8am to 12 noon the public is invited
especially the labor and the employer's group A: Correct. How many days?
sector to come forward and join the petition or
even oppose the petition. And the Board will S: You must appeal within 10 days, sir
have to decide as a collegian body and whether
to grant or not to grant. If it grants the petition, it A: From?
will issue a wage order.
S: From the publication
Next question: Is the wage order immediately 

effective upon issuance? 

 A: From the date of publication of the wage
order. That means you have to read the
S: No, sir. It will not be effective not until newspaper. You have to read because you only
after 15 days from its publication. 
 have 10 days from the publication to appeal the
wage order to the  National Wages and
A: So, there will be another set of publication? Productivity Commission (NWPC) on the
grounds that were mentioned. 
S: Yes, sir

 *calls another student*
A: Of the wage order? 
A:  The Board issues a wage order. That wage
S: Yes, sir order will only take effect if it has been
published in the newspaper of general
A: Is that different from the publication of the circulation and its effectivity is 15 days after its
petition? publication. Meanwhile, that wage order can
also be appealed to the NWPC within 10 days
S: Different, sir. of date of publication.  Is the wage order
already effective or not?
A: So, there are two sets of publication. 
(1) The petition itself and  S: It is already effective.

(2) Wage Order itself
A: Yes. It is already effective. Does that mean
If a wage order is issued by the Board, can that the employer is expected to comply
that be questioned? If yes, on what grounds with it?

and what reglementary period? 

S: Yes, sir

S: Yes, sir.  The wage order can be
questioned on the following grounds: A: To pay the prescribed minimum wage. Diba?
(1) If there is a prima facie abuse of While the appeal is pending. 

discretion
(2) There are questions of law S: Yes, sir


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A: Is there an instance where the wage order 



may be stopped by the employer from S: Those 

implementation?

(1) New business enterprise 
S:  When he will post a bond equivalent to - They are applied for exemption since they are
the prescribed wage rate multiplied by the still putting up their business and they are still
number of employees or workers. covering up their expenses
- Atty. JMM: They are still starting up 

A: Correct. Perfect. So, meanwhile the NWPC
will deliberate on the appeal and decide (2) Establishments adversely affected by
whether to dismiss your appeal or grant it. Are natural calamities
there any further remedy/remedies from the (3) Retail OR Service establishments
decision of NWPC? employing not more than 10 workers
- Example: Sari-sari store (retail) > engage in
S: Yes. They can appeal it to the to the Court the sale of goods directly to consumers
of Appeals for petition for certiotari under - Example: Parlor (service) 
Rule 65 of the Rules of Court.

A:  Is there any establishment or a person
A: When a wage order is issued, what power who is exempted by operation of law? There
is exercised by the Board? Is it legislative is no need to apply for exemption?
power? Judicial power? Quasi-legislative or 

quasi-judicial power?
S: It is under the labor code (Art. 98). Those 
S: It is an exercise of judicial power. 

(1) farm tenancy or leasehold
A: Not quasi-judicial power?  (2) domestic service - employers of
domestic workers can give monthly wage,
S: It is a quasi-judicial power since
 not like the usual which is daily 
(3) persons working in their respective
A: It's a judicial?
 homes in needle work - they are
homeworkers 
S: Yes, sir. Since they were not the one (4) persons working in any cottage industry
prescribing the exact minimum wage. They're duly registered in accordance with law
exercising their quasi-judicial power to see if it
was in accordance with the rules and A: If the employer fails to comply with the wage
regulations of the Commission.
 order - by the way, in Region 7, do we have a
prevailing wage order here?
A: Quasi-judicial? It is the power to hear and to
try case. And the remedy is certiorari to the S: Yes, sir we have

Court of Appeals

A: What is the wage order number?
S: Yes, sir

S: Wage Order No. ROVII-20
A: From the NWPC or from the RTWPB? 

A: Wage Order No. 20. Yung 'RO' is Regional
S: From the NWPC. 
 Office.

A: Sure? Okay. Let's have another question. Do How much is the daily minimum wage of region
you agree that the RTWPB aside from fixing 7 for non-agricultural particularly cities of Cebu,
the wage it has the power to grant Lapu-Lapu, and Mandaue?

exemption? 
S: Php 366

S: Yes, sir. It has the power.

A: What was the previous prescribed minimum
A:  Can you mention some establishment wage? 
that may be eligible for exemption of
minimum wage?
 *No answer*

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Atty. Marquez: is it defined under the labor


You have to remember that because in my code?
questions say "Mr. Dela Cruz was employed in
2012 and he was paid a daily wage of Php 200. Student: yes.
After 3 years, he realized that the minimum
wage is already Php 366. How much is the Atty. Marquez: under the definition under the
wage differential that he is entitled to?" Yun ang labor code? Is it limited only to cash
question ko. So you should know the wage component?
orders three years back. Alright?
Student: yes. Wages are only to cash.
What is the indemnity of the employer who
fails or refuses to comply with the wage Atty. Marquez: is that correct, mr borromeo?
order?
 Student: no sir. It is not.

S: His liability is consisted of  double Atty. Marquez: the answer is no daw, your
indemnity (RA 6726, Sec. 12) 
 answe is wrong, Mr.

A: So, the prevailing minimum wage now is Php Student: ….


366. If the employer pays his worker Php
300. Does the employer incur any liability? Atty. Marquez: what else does wage include
aside from cash component?
S: Yes, sir

Student: payment thru checks or promissory
A: How much would he pay? What's the notes, atm and thru bank.
difference? Would this liability --- Php 66 per
day?
 Atty. Marquez: is that correct mr borromeo?

The difference is i-multiply anang 2. That's Student: No, sir.


double indemnity. Employer does not only
pay the wage differential but times two Atty. Marquez: incorrect daw. (calls another
because the employer failed or refused to student) what are the methods of fixing
comply with the wage order compensation?

A: I am now tired. Uwi na ako. Student: under RA 6727…

BYE SIR Atty. Marquez: what are the methods of fixing


the compensation of workers? Di ba if the
worker is suffered or permitted to work you
LABOR STANDARDS DISCUSSION – JULY have to compensate for his labor. So my
5, 2017 (2hrs) question is under what method is allowed by
law to pay the worker’s wages?
Atty. Marquez: when we speak of wages, is
that provided under the labor code? Student: Payment based on time…
Student: yes sir.
Atty. Marquez: Payment based on time, diba?
Atty. Marquez: and under that definition of a What else?
wages, is it limited only to the cash
component? Student: commission, atty.

Student: generally sir in the form of cash sir. Atty. Marquez: In law school you have to
memorize that is part of…
Atty. Marquez: what is meant by wages?
Student: payment based on job.
Student: wages are when a certain employee
works and compensated the work of the Atty. Marquez: payment based on task… what
employee? else?

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Student: by piece rate atty. Student: fixing software… I entered into an


agreement with an employer who agrees to pay
Atty. Marquez: piece rate basis. Are those me based on time until I fix the software…
methods expressly found in the labor code?
Atty. Marquez: if you are able to fix the damage
Student: not all atty. Piece rate it was imbedded after one and a half days, when do you earn
in the civil code. your compensation?

Atty. Marquez: the methods that you mention Student: until I completed the job that is being
ba, are they found in the labor code? given…

Student: no atty. Atty. Marquez: I thought regardless of the


result? The result is the fixing… akala ko
Atty. Marquez: is that correct, mr borromeo? regardless of the result. (calls another student)
You agree with him?
Student: no sir. Incorrect.
Student: No, Sir.
Atty. Marquez: that is also incorrect. Lets go to
the first method of fixing wage compensation Atty. Marquez: you explain to us payment of
which is BASED ON TIME SPENT, so if you compensation based on time spent.
are paid based on time spent, you are a time
based earner. So if you are paid that way you Student: for the payment of time spent, under
are usually known as the time based worker. this method, if there is a completion of the work
So how do you describe this type of payment of a specific period or time then that will
based on time spent? somehow determine if you have already ….
(inaudible) As long as the agreed period of
Student: based on what the laborer completed. work is completed then the wage will already
be paid to the employee
Atty. Marquez: That is not too clear. For me it is
not clear it is vague. Atty. Marquez: regardless if you have
accomplished your work or not?
Student: ….
Student: yes sir.
Atty. Marquez: if you are paid based on time,
when is the compensation due? Atty. Marquez: ahh.. okay, so under this time
spent method, once the agreed period of
Student: when work is completed. work is completed, the compensation is
deemed earned and due regardless of the
Atty. Marquez: so if you cannot complete the result.
work, for example, ako, I prepare financial
statements if I cannot complete that then ah, im So if I hire you, as a bank teller, these are the
not paid. people that are in the front line. What does a
bank teller do?
Student: no, you are paid by the length of time
you have done to work. Student: Receive deposits, cater concerns
regarding withdrawals, counting cash..
Atty. Marquez: improve your answer.
Atty. Marquez: basically that is the job of the
Student: it is a method of fixing when you are bank teller. Do they have a specific work
paid by when you are going to complete that schedule?
particular job and regardless of the result.
Student: regarding the time only, for example,
Atty. Marquez: example? Example if you are an we are mandated to work around 8am until
IT specialist 5pm

Atty. Marquez: how many hours are there in a


day?

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Student: 24hrs atty. Student: 7 days

Atty. Marquez: So in your example, 8-5.. that is Atty. Marquez: what is the prescribed
how many hours of work? workweek under the labor code?
Student: 9hrs atty, but the 1 hr is reserved for
the lunch of the employee. Student: six days.

Atty. Marquez: in your example, does that Atty. Marquez: That is the normal workweek
illustrate a worker paid on time spent? under the labor code is 6 consecutive days
a week. So there is a one day left, what is that?
Student: yes atty.
Student: rest day.
Atty. Marquez: when is this compensation due
and earned? Atty. Marquez: Ah, I see. so if that is the
prescribed work week under the labor code, are
Student: after there work. you telling us that an employer may require his
worker to work 6 days a week.
Atty. Marquez: if they are paid based on time
spent, they earn there compensation, once the Student: yes, the employer can.
period of work that is 8-5 is completed.
Atty. Marquez: so the establishment may
Student: whether you completed your work or validly require their employees to work 6 days a
not, as long as the working period is over, then week? Why? Because the labor code
you are paid. prescribes that a normal week consists of 6
consecutive days. 7th day is the rest day, that is
Atty. Marquez: correct, that is a time spent. Do what the law says.
not wonder if an employee does chismis during
working time and tries to catch with his work So if im the employer, I will require my workers
because regardless of whether he to work for 6 days a week. If I require them to
accomplished the work or not, under this work for 6 days, I have to pay them for 6 days?
method, the compensation is already earned.
Regardless of the result. Student: yes

You were saying that there were two Atty. Marquez: yeah, you have to pay them for
classifications of workers who are paid based 6 days if you required them to work. Can I say,
on time? if that were the case, I would like to offer newly
hired workers a monthly basic salary of 50k a
Student: yes atty. month, question, require them to work 6 days a
1. Daily paid worker week.. how much will be there daily pay? Under
2. Monthly paid worker the formula suggested by the labor code.

Atty. Marquez: define each. (calls another Student: 1,504 per day.
student)
Atty. Marquez: how did you arrive at that? I
Student: Daily paid worker – in accordance want to pay them in accordance with law. Of
with the number of days that he/she worked. course I will hire you the whole year… I will be
paying you all that is due, including holidays.
Atty. Marquez: daily paid worker is a worker Monthly basic pay of 50k.
who is paid for days actually worked. If he
works, he is paid. If he does not work, then he Using the guidelines set by the DOLE how do I
is not paid. Except on regular holidays, he is arrive at the rate of my workers in my example?

entitled to pay even if he does not work.

So if youre a daily paid worker, if you are


required or suffered to work by the employer…
how many days are there in a week?

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JMM: What divisor is prescribed? (This is when Again aside from determining whether the
the daily paid worker works 6 days a week) employer is compliant with the minimum wage,
what else is the purpose of knowing the daily
A: Since the worker receives 50 000... rate?

JMM: 50 000 multiplied by 12 divided by 313  It's important to know in computing wage
related remedies such as overtime pay. You
50 000 x 12 = 600 000 wouldn't know how much your overtime pay if
600 000/313 = 1916 (daily rate) you won't know your daily rate. Once you know
your daily rate and you determine it to how
A: 1916 many hours of work, o di ba 8 hours. So yung
daily rate mo divide it by 8, to arrive at the
JMM: tapos multiply sa monthly divided by 12 hourly rate. When you know the hourly rate,
and that's where you arrive at your daily rate. If then you would know how much is your
that were the case, the employer can pay you a overtime pay for every work rendered after 8
daily rate of 1916 pesos. And that payment hours and add on to it yung overtime pay yung
already includes the 12 regular holidays which 25%.
you are supposed to pay even if the employee
does not work and the 3 special days which So you always have to go back to the daily
you may opt to pay also. That's how you arrive wage of the worker. Importante yung daily rate
at your daily wage. for the purposes of computing wage related
remedies i.e. overtime pay, premium pay
JMM: What's the importance of knowing the
daily wage? So those are the common divisors that are
used in computing the monthly rate for daily
A: So that we could identify if the employer is paid workers.
compliant with the minimum wage law.
---
JMM: Ok in our situation, way beyond pa nga di
ba yung 1916, on the other hand if the JMM: On the other hand, what is meant by
employer decides to require their workers only monthly paid worker?
to work 5 days a week, what would be the daily
rate of his workers? What's the divisor? A: A worker who is paid on all days of the
month
A: 261 
JMM: So how many days are there in January?
Student: 6 multiplied by 4 = 24 days per
month… A: 31

Atty. Marquez: under the existing DOLE JMM: You mean you are paid 31 days if you are
guidelines, what is the prescribed formula in a monthly paid worker? But 31 days may
computing the estimated monthly rate of a include your rest day. Yes? So are you telling
worker who is made to work 6 days a week. us that if you're a monthly paid worker you are
paid even during your rest day?
Ordinary working days = 246
Regular holidays = 12 A: *inaudible*
Special days = 3 
Total = 261 JMM: A monthly paid worker is one who is paid
for all the days of the month. So my question to
50 000 x 12 = 600 000 you is are you telling us that if you are
600 000/261 = 2298 (daily rate) classified as a monthly paid worker you are
paid even during rest days? On the 7th day?
JMM: This formula will save the employer from Even if you are not working?
counting every year. So that's the suggested
formula by the DOLE.  A: No atty

JMM asks Oli who says no

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regards frequency of payment between a daily


JMM: If you are a monthly paid worker you are paid worker and a monthly paid worker.
paid for all the days of the month. And I asked
how many days are there in January, Feb... So don't be misled into believing that if the
which month is your favorite month? employer offers you a monthly compensation of
50 000 you are automatically a monthly paid
A: birthday month worker. You may have to ascertain from your
employer what is the divisor that is used in
JMM: Which month is your favorite in labor law computing your monthly rate. 
standards? 
If the employer says well, "we only pay you for
A: May days actually worked" then that makes you a
daily paid worker. 
JMM: Oo dapat May
But if the employer says "I pay you for all the
*JMM asks fromulgation and effective day of days of the year including your birthday, rest
Labor Code* day" then you can say that you are a monthly
paid worker.
Promulgation: May 1 1974 (labor day)
Took effect: Nov 1 1974 Again, if you are paid twice in a month, whether
you are monthly or not, it will depend on the
What law can we find the Labor Code? divisor that is used.

A: PD 442 So if you are receiving 50 000 a month, how


much is your daily rate?
JMM: If you're a monthly paid worker are you
telling us that the employer is supposed to pay 50 000 x 12 = 600 000
his workers on all the days of the month 600 000/365 = 1643 
including your birthday, rest day, your sabbath
day, monthsary day, your anniversary day? Yes. Even if you're a monthly paid or daily paid
Even if you're not working? Yes. Because you worker, you may be a rank-and-file or you may
are classified eh as a monthly paid worker, and be a managerial employee depending on how
a monthly paid worker is one who is paid for all you are further classified, your entitlement to
the days of the month whether work or unwork labor standards will depend on how you are
including rest days and holidays. That is usually classified. 
the classification made by employers for
managerial employees. There goes our first method on fixing
compensation.
That level of employment as a manager, your
performance is measured by the results that Let's go to payment based on a job or task.
you produced and not by the minute or second Describe briefly this method.
that you spent to the work place compared to
daily paid workers. That's just the proper way of A: Payment based on job or task - one is paid
describing it. for every job or work accomplished regardless
of the time spent. 
What are the guidelines to compute the
monthly rate if you are a monthly paid worker? JMM: So if you are my worker and then the job
that I need you to work on is to paint this
A: Divisor is 365 classroom and I said that I will you for painting
this classroom 30 000 pesos. Is that payment
JMM: Whether you're a daily paid worker or a based on job or task?
monthly paid worker, you are paid in monthly
compensation and that monthly compensation A: Yes atty
is usually paid monthly yan. Monthly
compensation ba. You are paid of course at JMM: What about if it takes you 1 year to paint
intervals not exceeding 16 days or twice a this whole classroom? Would it matter?
month. So it doesn't make a difference as

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A: No more. Compare it to who are paid based on


time spent noh, you only earn 366 a day. 
JMM: What if you're able to paint this in 1 day,
will you get 30 000? Fourth method is payment based on
commission. How do you pay a worker based
A: Yes (JMM: Wow) on commission?

JMM: What about if you're able to paint this in 1 A: Usually in sales


year, will get you get 30 000 or more?
JMM: Oo in sales, the employer usually fix a
A: Only 30 000 certain percentage of the sales as payment of
your compensation. So if you are selling cars in
JMM: 30 000 lang kasi pakyaw ang bayad eh. a car company and the employer will say "I will
So that's payment based on job or task, pay you 15% of the purchase price if you are
regardless of the time you spent. So which is able to sell a car".
more attractive scheme for the worker, payment
based on time or payment based on job/task? Anyway these are just methods of fixing
Which method do you think the worker will earn compensation.
more?
Is the enumeration under the labor code
A: Payment based on job/task exclusive?

JMM: Why? A: No

A: Because as long as you will be able to JMM: Can you think of another method of fixing
accomplish your job/task then you will be compensation other than what we mentioned
compensated regardless of the time spent. before?

JMM: So if you are able to paint this classroom How do you think jeepney drivers or taxi drivers
in just 5 days, then you will have compensation are paid by their employers? Are they paid
na, compared if you are paid on a daily rate based on time? Would you want to pay them
basis then for 5 days you will earn how much?  based on time? Yes you can pay them but
would that be advantageous or
A: 1820 disadvantageous? Why?

JMM: Oh you compare to 30 000, which you A: Because the drivers may opt to work for
paid for a job/task which you are able to more hours... *inaudible*
complete in 5 days. So you earn more if you 

are paid based on job/task. Of course JMM: You can pay your workers in a daily basis
depending on whether you are efficient or not. but maybe it will not encourage the driver to
take passengers. It will not encourage them to
What is the third method payment based on take more passengers because anyway they
piece rate? will get paid after 15 hours of work. But if you
pay them based on commission, would it
A: Under this method, you are paid by the input encourage them to earn more? What if you pay
you have produced. them based on boundary? Will they earn more?
They will earn more. Because that's why they
JMM: Regardless of time spent? drive so fast di ba. Because when they pass
the boundary, anything in excess will be their
A: Yes Atty earnings. Kaya yung lumilipad yung mga jeep
niyo.
JMM: Still regardless of time spent and it
involves articles that are more or less regularly So example if you're a driver you get 1000 a
regulated. So one piece of chair like this, if you day more or less is better than earning 366 for
are able to produce in 8 hours a number of 8 hours of work. So that's the importance of the
chairs you just multiply it by then you earn methods of fixing compensation. 

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I mentioned two methods: payment based on a A: Yes atty


job or task and payment based on piece-rate. 
JMM: How much?
Are they existing guidelines to determine how
much is the right pay for every job? For every A: For a difference of 30 pesos per piece
piece?
JMM: And if the employee decides to file a
A: Yes Atty. The DOLE has issued revised claim, where do you file the claim?
guidelines on the conduct of Time and Motion
Study A: To the Regional Director of DOLE, if it is a
simple money claim...
JMM: Can you read the scope and coverage of
that guidelines? JMM: If it is 30 000? 

A: *inaudible Please see spectra notes* covers A: To the Regional Director of DOLE...
workers of micro, small, and medium
enterprises who are paid by result, including JMM: No I mean 30 000..
pakyao, piecework and other non-time work
A: It would be the labor arbiter
JMM: So when you have workers based on
piece rate you can use those guidelines in JMM: the arbiter of the NLRC. It would not be
determining how much to pay per piece, how the Regional Director of DOLE (kani sila only
much to pay per job/task. If you were to pay for claims 5000 and less). 
them based on time so easy, you just have to
get the copy of the wage order. What is the jurisdiction of Regional Director of
DOLE on simple money claims?
How is the Time and Motion Study defined?
A: the claim does not exceed 5000
A: Means the systematic determination of work
methods and time standards using various JMM: Ah so it should not exceed 5000 pesos
tools/technologies for simple money claims

JMM: What agency of the government   may Is that amount of 5000 also the same amount
conduct this time and motion study? that may be awarded by the DOLE under its
visitorial and enforcement power?
A: Regional Tripartite Wages and Productivity
Board A: No

JMM: If they are able to conduct this time and JMM: What do you mean? (by Justin Bieber ft
motion study, what order will they issue? jepperson)

A: a Piece Rate Order and/or Production A: Art 128 has no limit on the money claim, the
Standard Order  5000 limit on Art 129 does not apply on Art 128

JMM: Okay so that would guide the employer di JMM: Even though 10 000, 50 000?
ba on how much to pay their workers. If they
opt to pay their workers based on any of those A: Yes atty 
methods.
JMM: Okay that 5 000 pesos is only applicable
If it turns out that the worker is paid per piece with regard to simple money claims. 
but not in accordance with what was prescribed
by the RTWPB, so for example work for this I'm curious, if my claim is exactly 5 000 pesos
chair, the employer pays you 20 pesos per and I am no longer employed and I do not seek
piece but sabi ng RTWPB it should be 50 reinstatement, and my claim arose from
pesos per piece. Would that entitle the worker employer-employee relationship, can I file the
to file a claim against the employer? claim with the regional director of the DOLE?

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A: I think no atty filed with the DOLE before they can exercise
visitorial power? No. It doesn't require
JMM: Is it not that the law says "shall not complaint. It can exercise on its own. Visit the
exceed 5000"? So my claim is exactly 5 000. establishment, conduct a joint assessment,
compliance visit, occupational health and safety
A: Ah yes atty, it may be filed to the regional investigation, or a special assessment and visit
director of dole of establishment and enforce whatever findings
they meet. So entirely different ang Art 128 and
JMM: So when you say it does not exceed 129.
5000 it includes exactly 5000?
In Art 128 visitorial and enforcement power
A: Yes atty right? The power may be exercised by the
Secretary, or duly authorized representative
JMM: Is that correct Mr Borromeo? which is the RD, if it is exercises by the RD and
the RD issues a compliance order what is the
O: That's inkerek sir remedy from that compliance order?

JMM: He says your inkerek prove him wrong. A: Appeal to Secretary of DOLE
You read the law.
JMM: Correct. If on the other, if it were recovery
A: Provided further..."shall not exceed 5 000" of simple money claims and the RD renders a
decision, what's the remedy from the decision
JMM: So who is right between you and him? of that simple money claim?

A: I'm correct A: National Labor Relations Commission


(NLRC)
JMM: So tell him *class laughs*
JMM: If you have been listening, you will see
A to O: You're wrong  the comparison. Remember it.

JMM: Okay exactly 5000 that's still within the How should the wage be paid?
coverage, "shall not exceed" nga eh. So yes,
you may file it to the regional director of dole. A: Generally in cash sir
But with regard to visitorial and enforcement
power there's no limit to the amount that may JMM: That's what the law says? Read the law. 
be awarded.
A: Wages should be paid in legal tender
Is the visitorial and enforcement power the
same as the jurisdiction of simple money JMM: What is legal tender?
claims? What's the nature of this visitorial and
enforcement power compared to Art 129 on the A: Legal currency like cash
adjudicatory power of the RD on simple money
claims? JMM: What do you mean? (by Justin Bieber ft

 jepperson 2.0)
Yes it's not the same. 
A: Monetary
The nature of the visitorial power is inquisitorial.
I visit you, I try to find whether you violate the JMM: When we speak of legal tender we refer
law or not, and if you violate then I may to bills or notes...
enforce.
Can you pay your workers purely in kind?
On the other hand, yung adjudicatory power
under simple money claims, it is adversarial A: No
because it must be initiated by the employee
filing a complaint. So it requires an employee or JMM: Can you pay your workers partly in cash
domestic worker to file a complaint with the RD and partly in kind?
unlike in Art 128 would that require a complaint

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A: Yes sir 6) When does the check amount to


payment? –After it is encashed.
JMM: In what instance?

A: When it involves facilities 7) What law says that checks only amount
to payment after it is encashed? –New
JMM: What is facilities? Civil Code

A: Facilities are those that can be deductible 8) So if the worker is robbed tapos nawala
from the wage of the employee... they are ang check, can the employee ask for a
benefit for the employee; refer to the cash payment instead? –YES. Because
renumeration given to the employees that may the check was not yet encashed and
be deductible.. does not yet constitute as payment.
JMM: Read the recent rules, that's not how it
was defined. It's in the Revised Guidelines in 9) NOTE: the employee can always
the.. withdraw his consent to payment via
checks, because the employee is not
A: Revised Guidelines on the conduct of the compelled to accept checks as payment
Facility Evaluation for wages

JMM: So what is meant by facilities? 10) What is the purpose of the 1km radius
requirement under the payment in
A: Facilities are those that are provided to the checks? –for the convenience of the
employees... employee

JMM: That's not how it was defined. It refers to 11) To whom must the employer pay the
articles or services... wage? –To the worker.

I need to leave now... 12) Why? –because he is the rightful owner


of that wage. (Under the NCC, payment
-END- must be made to the creditor. The
employee is the creditor here.)

Labor Standards (July 12, 2017) 13) Any exceptions? -1. If the worker is
dead.
1) In what form should the employer pay?
–In legal tender. 14) Who can claim? –Heirs.

15) What do they have to present? –


2) How about checks? –YES. As a matter Affidavit of heirship.
of exception.
16) Any other circumstance? –2. Force
3) Are there requisites before the workers Majeure.
can be paid in checks? –YES.
(Enumerate requisites). 17) W h a t i s f o r c e m a j e u r e ? T h o s e
circumstances beyond the control of
4) What if the employees do not like to be man
paid in checks, but the employer would
refuse to pay in legal tender and would 18) Can the employee authorize a family
still continue to be pay his workers in member to take his/her wage on his
checks? What is your recourse? – behalf? –Yes. With written authorization
Report to DOLE. of the employee.
5) How? – Through its Visitorial and
Enforcement Power 19) Where should the employee be paid? –
Near or in the place of undertaking of
the employee. Where the work is done

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(NOT in the place of the employers 26) What kind of bank should it be? –Rural,
office!!!! If lahi ang place sa office sa savings, or commercial banks.
employer ug worker, adto sa place
where the worker works) 27) Is the time you spend going to the bank
facility compensable working time? –
20) Can the employer pay the worker via YES.
ATM? –Yes.
28) On wage prohibitions. Art 112 of LC.
21) What are the conditions/requisites? Non-interference of the disposal of
wages. Does the law prohibit
compulsory patronage? –Yes.
a. Upon written permission
of the majority of the 29) When is there compulsory patronage? –
employees or workers when the employer obliges or requires
concerned; his employees to buy or purchase
b. A l l private products from a certain establishment.
establishments,
companies, businesses, 30) Is that legal? –No, illegal.
and other entities with at
least (25) or more 31) IF the employer merely suggest? –That
employees; is okay.
c. L o c a t e d w i t h i n ( 1 )
kilometer radius to a 32) What is the reason why the employer
commercial, savings or cannot interfere with how the workers
rural banks shall pay spend their wages? –Because the
wages or benefits of their worker owns that wage. You have the
employees through any right to enjoy or dispose it the way you
of the banks; like it (non-interference rule).
d. Within the period of
payment of wages fixed 33) Art. 113? (The rule: do not deduct the
by PD 442, the Labor workers’ wage). What is the reason
Code, as amended. behind the law? To ensure that the
employee is able to meet his basic
22) Does paying via ATM requires issuance needs
of a payslip? –It still requires record of
payment.
34) 36. If deduction is allowed anytime
23) Why is the employer still required to under the workers wage for any reason,
issue a payslip? –So the employee will what will happen the workers wage? –It
know the deductions and other pertinent will impair the value of his wage and
details about his wage. unjustly deprive the worker to meet his
basic needs.
24) Does the bank charge in the ATM okay?
(maibanan man ang balance diba if sa 35) 37. What does the employee use his
lahi na atm mu-withdraw) –No because wage for? –To meet his basic needs.
as long as I withdraw at my depository Food, shelter, clothing and medical
bank, I will not have to suffer bank attendance.
charges. The employer has already
provided an ATM with your depository 36) 38. Any exceptions? –YES. (Enumerate
bank near you, problem na na nimo ug the exception).
sa iba ka na bank mag-withdraw tapos a. In cases where the worker is
mag-bank charge sila. insured with his consent by
t h e e m p l o y e r, a n d t h e
25) Payment of wage thru a bank, is that deduction is to recompense
allowed? –YES. the employer for the amount
paid by him as premium on
the insurance;

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b. For union dues, in cases Atty: That's correct. Is there an instance when
where the right of the worker there would be valid deduction for loss or
or his union to check-off has damage includes tools and machinery
been recognized by the supplied by the employer to the workers?
employer (CBA) OR
authorized in writing by the S: Yes, sir. It is when the practice of making
individual worker concerned; deduction or making the employees deposit is
recognized necessary and desirable according
TN: Right to Check- to regulations issued by the Secretary of
off- is a mechanism Labor. 
that allows the
employer to deduct Atty: Improve your answer.
the employees wage
an amount S: Yes, sir. There are instances when the
corresponding to deductions for loss or damage from the
union dues. employee's wages.

Atty: What are these conditions provided by


c. In cases where the employer law?
is authorized by law or
regulations issued by the S: --
Secretary of Labor and
Employment. Atty: You said establishment must be engaged
in trade.
39. On the first exception (deduction for the
premium on interest), are you telling me S: Trade or practice, sir.
that the employer has an insurable interest
on the life of the employee? –YES. Atty: Trade, occupation or business

S:  Trade, occupation or business where the


July 17, 2017 practice of making deductions is recognized


TOPIC 6: WAGE DEDUCTION  Atty: Recognized where?

Atty JMM: The rule is that no deduction from S: Recognized in the nature of work.
the worker's wage shall be allowed. What is the
reason behind the law?  Atty: In the industry. Or?
S: Necessary or desirable as determined by the
Student: The reason behind the law is that Secretary of Labor and Employment (SOLE).
deduction from the employee's wages, in
general, would impair the value in their wages Atty: So, for loss or damage in tools,
and it would cause undue deprivation on the equipment or machinery supplied by the
part of the employee to meet their basic needs employer to the worker to be validly
and day-to-day living. deducted from the worker's wage, it must be
shown that the establishment is engaged in
Atty: The law allows certain instances where a trade, occupation, or business for the
there should be deduction from a worker's practice of making such deduction is
wage. I am interested in particular with regards recognized in the industry. It's an industry
to loss or damage of tools, equipment, practice. 
machinery supplied by employer's wage
workers. Does the LC allow the employer to OR, if not an industry practice, it is
deduct from the worker's wage in value of determined by SOLE as necessary or
losses or damages? desirable. 

S: The general rule is no.  Dalawang areas, ha. 

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If you are not engaged in the trade and S: There should be due process, sir. The
occupation industry or business where you employee must be heard first before making
practice deduction in wages for loss or any such deduction.
damages of tools, equipment or machinery and
it is not recognized in the industry, can the Atty: So, you cannot simply effect an automatic
employer deduct from the worker's wage the deduction without asking the employee to
loss/damage? explain and without you having established the
responsibility of the employee for such loss/
S: No, sir.  damage.

Atty: If it is not determined by the SOLE as S: Yes, sir. 


necessary or desirable, can the establishment
make deductions for loss or damage?  Atty: That is part and parcel of due process -
being given the opportunity to be heard.
S: No, sir. And, what's the reason behind the law, do
you think, why, if there is any such
Atty: Clearly, those are the conditions. You deduction it must not be more than 20% of
must able to prove them. If we say 'able to the worker's weekly wage? Why not the full
prove', the employers must be able to amount?
prove. Otherwise, the deduction is
considered illegal. Can the aggrieved S: I think because the primary reason why
worker recover what has been illegally employees are given wages is for them to meet
deducted from his wage? the basic needs. If it exceeds 20% then that
amount, I think, is unconscionable. And
S: Yes, sir. would deprive the employee to meet his
basic needs.
Atty: Assuming now that those any or both
of those conditions are present, does the Atty: What happens to the balance?
law allow automatic deduction from the
worker's wage in an instance for loss/ S: The balance of the weekly wage will be
damage?  given to the employee.

Or the employee must be shown to be Atty: So, 80%? 


responsible?
S: Yes, sir.
S: Sir, there are 4 requisites that must be
complied with.  Atty: What about the balance of the
obligation?
1. The employee concerned is clearly
shown to be responsible for the loss S: That will be deducted, I'm not sure, but
or damage; since it is considered a debt on the part of
2. The employee is given reasonable the employee then it will be deducted from
opportunity to show cause why his future wage.
deductions should not be made;
3. The amount of such deduction is fair Atty: The following week there will be
and reasonable and shall NOT another set of deduction which is not more
exceed the actual loss or damage; AND than 20% and so on and so forth. That is for
4. The deduction from the wages of the deduction for loss/damages.
employee does not exceed 20% of the
employee’s wages in a week Now, if I'm a taxi operator, I allow my taxi to be
used by my driver. I pay my driver usually on a
Atty: What's the purpose of the law that the boundary system arrangement wherein I fix an
employee must be given the opportunity to amount and he has to remit to me at the end of
explain and why the culpability of the the day. Is it valid on my part to require my taxi
employee must be clearly established? drivers to come up with a cash deposit so that I
What's the reason behind the law? can use this cash deposit to answer for loss/
damage?

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gun, loses the hand gun, under the


S: No, sir. I think it's not valid. regulation you mentioned, the security
agency can require the security guard to
Atty: Why not? come up with a cash deposit to answer for
the loss of the handgun? In case, this is due
S: It is prohibited by the LC. to the fault of the security guard.

Atty: Which condition is not met? S: I think yes, sir.

S: The first condition, sir? Atty: And how much should the cash deposit
be? Can it be any amount at the discretion
Atty: Which condition is not present - that of the security agency or is it also regulated
makes my policy of requiring my drivers to by the SOLE?
come up with a cash deposit illegal?
S: It is also regulated by the SOLE. 
S: Because first sir, it should be permitted by an
appropriate regulation by the SOLE. Atty: How much nga?

Atty: Is there such any regulation that allows S: I'm not sure if I can recall the exact figure,
the taxi operator drivers to come up with a cash sir, but I think it should not be more than the
deposit to answer for its loss/damage to the monthly pay of the security guard.
vehicle?
Atty: And in case the security guard loses that
S: I am not aware of any regulation.  firearm to his negligence (through his fault), can
the employer run after the cash deposit to
Atty: Correct. So next question, are you aware reimburse him for the loss of such firearm?
of any regulation issued by the SOLE that
allows to require an employee to come up S: Yes, sir.
with a cash deposit and the cash deposit
can be used by the employer to answer for Atty: Why do you think the SOLE allow that?
loss/damage for tools and machineries For security agencies.
supplied to the workers?
S: Because of the nature of their work, sir. 
S: Yes, sir. 
Atty: What do you mean? Diba yung security
Atty: Give me one appropriate regulation. guard mga minimum wage earners lang yan
diba. 
S: DOLE Advisory No. 11 Series of 2014
This is one regulation that is expressly allowed
Atty: What about that? by the SOLE - to require the security guards to
come up with the cash deposit. To give a cash
S: That pertains to security agency where deposit and for the security agency to use it to
they are allowed to ask the security guards answer for any loss/damage.
to make a deposit to answer for any future
loss/damage. Why do you think that this is allowed? What is
your opinion?
Atty: Damage or loss on what?
S: I think sir to ensure that these security
S: On the equipment. guards exercise diligence in taking care of
these items. Because these items are
Atty: What is usually supplied by the agency to necessary in their duties which is to guard.
the security guard? 
Atty: Do these firearms cost much?
S: Company uniform, firearm.
S: It's costly sir
Atty: So, are you telling me that if the
security guard who was supplied by a hand

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Atty: It's costly compared to other tools that


are provided to workers. You may sit down. Atty: And the employer is allowed to withhold
until the employee is able to settle his debt to
*calls another student* his employer. 

KICKBACKS/WITHHOLDING OF WAGES I say, is that authorized by law? What law is


that which allows to withhold the wages?
Atty: What is this prohibition regarding
wages about kickbacks? S: It's in the LC. It's in Art. 116.

S: Generally, it is not allowed. Atty: For debt? Does the Art. 116 speaks of a
debt?
Atty: What is this about? What is this
prohibition all about? S: No.

S: It prohibits the employer to deduct any Atty: No? So, wrong. Ms. C.? What law is that?
amount from the employee's wages or to
withhold kickback S: Art. 113. 

Atty: We have been discussing on wage Atty: Try again. You can remember the principle
deduction. Let's now proceed on Withholding of but you cannot remember the law. *Sturya si sir
wages. Is deduction the same as about his japanese client where the client
withholding of wages? asked him to find the law in the book*

S: No, sir.  S: It's in the Civil Code. Art. 1706:


Withholding of the wages, except for a debt
Atty: What's the difference? due, shall not be made by the employer. 

S: Deduction is you still release the wages Atty: If you read the codals, no withholding of
but there you have to subtract a portion of it wages shall be allowed. One exception where
and then Withholding means to entirely hold you can withhold is that (Art. 1706) provision,
the— (Atty, cut her off) for debt due.

Atty: What did the employer do with the Give me another one where withholding of
wage? wage is allowed. 

S: Just keep it within the... not release the S: Another one will be the Union Dues 
wages
Atty: You just explained earlier that withholding
Atty: Not release? Until when? is different from deductions. Do not mixed them
up. 
S: For example, in some cases where an
employee resigns then they will hold the last S: Another instance where the employer can
pay until the employee's able to comply with the withhold when the employee gives its
requirements.  consent.

Atty: So, when the employee has a debt to the Atty: Correct. I hereby authorized San Carlos to
employer. Is that authorized by law? To withhold diba. That is a valid withholding of
withhold the worker's wage in case the wage. Other one is under the Civil Code that it
employee has the debt to his employer? is for debt due. When you say debt, meron
kang utang o obligation. 
S: Yes, sir. In cases like when the employee
has a pending loan Next question is there are many labor
standards benefits ex. overtime pay, holiday
Atty: With the employer. pay, premium pay, etc. These are labor
standards benefits mandated by the LC. Are
S: Yes, sir. there employees who are excluded from

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entitlement to this overtime pay, service S: Yes, sir.


incentive leave, holiday pay, etc.?
Atty: Next. 
S: Yes, sir. There are excluded from
entitlement. S: Next is managerial staff. 

Atty: But generally, all employees are entitled to Atty: Managerial staff? How about the
these benefits. Generally. But you are saying managers per se? Kasi staff eh. When you
that there are employees that are expressly staff, staff *with intonation and all* So, who
excluded by law?   comes first? Managerial employees or
managerial staff? 
S: Yes, sir.
S: They are covered under one category.
Atty: Who are they?
Atty: So, managerial?
S: Government employees.
S: Managerial personnel then staff.
Atty: Any government employee here? *Senyor
Ortiz* Have you gone to any government Atty: You look at the codal.
office?
S: Managerial employees. 
S: Yes, sir. SSS, sir.
Atty: Would that include managerial staff? So,
Atty: So, they are excluded. They are governed which is higher? Managerial employee or
by what law? managerial staff?

S: Civil Service Law. S: Managerial employee.

Atty: Next? Atty: Oo naman. What element is not


common between the two? Managerial
S: Field personnel  employee vs. managerial staff?

Atty: What are they? S: Managerial employee are the ones who are
directly involved in the implementation of
S: Their job description is to be not confined-- process or how the industry works whereas
managerial staff are the ones in aid.
Atty: Define using the LC. Not the job
description. How are field personnel defined? Atty: So, still in connection with the
management of the business? But that element
S: Under Art. 82. Field personnel shall refer is common. My question is what element is
to non-agricultural employees who regularly NOT common meaning one differs from the
perform their duties away from principal other.
place of business or branch office of the
employer and whose actual hours of work in S: Managerial staff has no direct control or
the field cannot be determined with supervision over the people.
reasonable certainty. 
Atty: Ha? Does the managerial staff has the
Atty: There are two essential elements.  POWER TO HIRE an employee?
1) Place of work is outside from the
principal office or branch S: No.
2) Hours of work cannot be reasonably
determined  Atty: Does the managerial employee has the
power to hire an employee?
So, we don't know they are actually doing work
while on the field or not. Are they considered S: Yes.
employees? 
Atty. Oh. Is that element common?

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S: No, sir. S: Hours of Work

Atty: That's the answer I want to hear from you. Atty: Number one. 'The provisions of this title
Managerial staff does not have the power to shall apply to all except' which you just
hire and fire. Eh yung manager mismo has the enumerated. You read the heading of each
power to hire but in both instances, they are chapter.
involved in the management of the business,
department, division, or section. Diba? Correct? S: Chapter 1: Hours of Work; Chapter 2:
Weekly Rest Periods; Chapter 3: Holiday
S: Yes, sir. and Service Incentive Leaves and Service
Charges
Atty: But in any way, they belong to the same
category. They are excluded from overtime? Atty: Hindi siya applicable, those
Night-shift pay? Service incentive leave?  enumerated. The provisions of this Title,
they will not apply to those enumerated. 
S: Yes, excluded.
You mentioned about persons to the personal
Atty: Next. service of another, field personnel... are they
entitled to holiday pay? Service incentive
S: Those who are employed for a personal leave? Are they?
care. 
S: No. They are not entitled.
Atty: Anong personal care? Parang lotion yan
ha.  Atty: Why?

S: Personal service.  S: Because they are specifically mentioned that


they are excluded.
Atty: Personal service, hindi personal care.
Persons in the personal service of another. Atty: Excluded diba. 'Except' diba. Who else
Who else? aside from persons in the person service?

S: Domestic helpers.  S: Employees that are relatives of the


employer and who are directly dependent
Atty: Which of the labor standards are on the employer. 
applicable to enumeration mentioned that you
just mentioned? You started with government Atty: The employer there is a member of the
employees, etc. Because generally, the labor family. Example?
standards that you mentioned, these people
are not entitled. Diba? But from the S: You are the son
enumeration, which labor standard is
applicable to any of those employees you Atty: So, your parents are your employer. Are
enumerated? Read Art. 82. you telling me that members of the family
are not entitled to overtime pay if they work
S: The provisions of this Title shall apply to beyond 8 hours? 
employees in all establishments and
undertakings whether for profit or not, but not S: Yes, sir
to government employees, managerial
employees, field personnel, members of the Atty: They are not entitled to service incentive
family of the employer who are dependent on leave? Why?
him for support, domestic helpers, persons in
the personal service of another, and workers S: They are not, sir. Because they are enjoying
who are paid by results as determined by the the benefit being the son or relative
Secretary of Labor in appropriate regulations.
Atty: Could it be that they are enjoying even
Atty: 'except' diba? You started na. What are better benefits?
the chapters under that title? Quick.

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S: Yes, sir
S: Reason is that to prevent abuse
Atty: For managerial employees, why are
they excluded? Atty: If you are a managerial employee, do you
have the same rate of pay compared to a
S: They are excluded because they are paid on mere rank and file worker? 
a monthly paid
S: No, sir. 
Atty: Since you started it, who is a monthly paid
employee?  Atty: A manager receives thousands and
thousands of money. Di ba? Bakit pa kita
S: Managers babayaran nang overtime? Ang laki laki na
nang sweldo mo. Di ba? If you are a
Atty: No. What is meant by a monthly paid managerial employee, it is a huge
employee? r e s p o n s i b i l i t y. Yo u r p e r f o r m a n c e i s
measured by results. Because if you make
S: Like you are not paid on a daily wage. You decisions, it will contribute significantly to
have a fixed rate for a month. the progress of the company. Unlike with
the rank and file employees who do 'routine-
Atty: On the other hand if you are daily paid you nary' work. The managerial employees are
don't have a fixed monthly rate? Is that what paid better. So, who needs most the labor
you are saying? standard benefits are the rank and file
employees.
S: You have a fixed monthly rate but you are
paid like 'no work, no pay' sir. For managers, *calls another student*
they have that fixed
Atty: She mentioned persons who are in
Atty: No. Because you mentioned monthly paid service of another. Domestic workers? Are they
employees eh. So it just caught my attention. included or excluded?
Isn't that there is a definition of monthly paid
employees versus daily paid employees? Read S: They are excluded.
it.
Atty: So, domestic workers are they even
Even if you are a daily paid employee, your entitled to overtime pay? Holiday pay?
monthly salary will also be paid. That is not
what makes a difference between a daily paid S: *hinay kaayo ug tingug si jemar :(* Under the
and a monthly paid employee.  Kasambahay Law…

The difference is that if you are a daily paid - Atty: So, we have another law! What’s with this
you are only paid for the days actually worked. law?
On the other hand, if you are a monthly paid - S: *nag whisper rap si jemar jud huhu*
you are paid for all the days of the month.
Atty: So, another are workers paid by results?
It has nothing to do with the status of being a Who are these workers?

manager or a mere rank-and-file employee.
Because being a monthly or daily paid has got S: Craftsmen, sir.
to do with method of fixing compensation. If you
are a daily paid or monthly, you are paid based Atty: How are they paid? INC ka muna.
on time.
-END-
S: I'll take it back, sir. 

Atty: You have to take it back. Pagod na ako Labor Standards (July 19, 2017)
eh. So, why are these managerial employees
excluded from entitlement to labor standard
benefits? Why? What is the reason behind P: if an employee has to work on a regular
the law? holiday how much does he get?

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13:52
S: double pay S: Yes sir

P: The first part of the pay represents what? P: Why?

S: Regular  wage S: It complies with the minimum hours required

P: The second part? P: Why because they have what? Because


they have sufficient days for rest if they only
S: Holiday Pay have work that is less than 6 days a week?

P: So what is a worker’s right to a weekly rest S: Yes sir


day?
P: If the workers have a 5 day work week.
P: Describe the right to a weekly rest day. There are many establishment that have a 5
day work week. There is no rest day that has to
S: Not specifically on Sunday, all workers would be scheduled for their workers. Right? But if the
be entitled to a weekly rest day on Sunday, 24 workers are made for work on the 6th day
hours, after six day of work. because of urgent matters to attend to, do they
get payed on that 6th day?
P: How many days are there in a week?
S: According to the principle of no work no pay,
S: 7 days sir they will not be payed on the 6th day

P: 7 days, so if an employee is required or S: sorry sir I forgot. Yes, they will be payed for
suffered to work for 6 days a week, there’s only hours of work on the 6th day.
1 day left and the law requires the employer to
provide his workers with a rest day, consisting P: How much?
of?
S: Basic pay
S: 24 hours
P: So if in the 6th day they are made to work
P: For what purpose? and they work they get payed?

S: to give rest to the worker S: Yes sir

P: We must rest every day. How many hours do P: How much?


we work?
S: Their basic wage
S: 8 hours
P: Okay. How much is paid for working in a rest
P: 8 hours. So how many hours are left for you day?
to rest? 16 hours. You have 16 hours to rest
every day. For a rest day if the workers are S: plus 30 percent of wage for working in the
made to work for 6 consecutive normal days a rest day
week. So what is that day for? Aside from
resting? P: Did I just say that if you have a 5 day work
week there is no scheduled rest day?
S: For family day or religious purpose.
S: (no answer)
P: Yes, not everything if spent to work, you also
have to spend time for yourself and most P: So why do you have to give the additional
importantly for your family. So are you telling us 30%? Are you telling us that the 6th day is not
that if the work week is less than 6 days a considered as rest day?
week, the law does not require them to provide
a rest day for their workers? S: Yes sir. Non-working day is a rest day

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P: What’s your final answer? S: 30 percent more

S: They are entitled to their basic wage P: but is not the 4th day a rest day?

P: That’s all? And they will say “Our work here S: Yes sir
is 5 days a week you made work on the 6th day
we have to add 30 % on our basic wage”. P: It is with a rest day? So by the 4th day, for
example, it is not actually a rest day? It is a day
S: (inaudible) for them to rest but it is not a rest day? So no
additional compensation?
P: If they work 3 days in a week, are they
entitled to a rest day? S: Yes sir (Inaudible)

S: No P: His first answer is in a 5 day work week, you


were made to work on the 6th day, and he said
P: So the answer is? No, because they have again that there is additional pay.
adequate days of rest. The rest day is only
given to workers who has no other day in a S: I disagree
week to rest.
P: So it will be treated as an ordinary working
P: In a normal work week when these workers day?
again are made to work on the 4th day, are they
entitled to a pay? If yes how much? S: Yes sir

S: If they are allowed to work then they are P: So let’s go back to the 5 day work week. So
required to be payed for the hours they worked if they are made to work on the 6th day that will
just be treated as an ordinary working day?
P: Of course, how much will that be?
S: Yes sir.
S: their basic wage
P: What if they are made to work on the 7th day,
P: Their basic wage which is equivalent to 8 and they have no choice but to work on the 7th
hours of work, right? day although their normal work week is only 5
days a week. Will they be entitled to their pay
S: Yes on the 7th day where they were required to
work?
P: Will that be all?  You are requiring them to
work on the 4th day? S: No sir

P: Let’s go back to the question. They have a 3 P: But they were required to work on the 7th
day work week, that for the remainder of the day, so do they get paid?
week, the 4 days, they are to spend them for
themselves. Then they are made to work on the S: Yes sir.
4th day because there are things that have to
be urgently attended to. So they work because P: After the 5th day they are made to work on
if they don’t work that is insubordination. That’s the 6th day then after that they are made to
work connected, you cannot refuse work. So work on the 7th day pa.
my question is do they get payed?
S: They’re entitled to additional pay.
S: Yes
P: So that’s where they would be entitled na?
P: Are they entitled to additional compensation?
S: Yes sir because 7th day is rest day.
S: Yes
P: Because they made to work for 6
P: How much? consecutive normal work days?

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S: Yes sir where dead people are buried. Why nighttime


is graveyard shift?
P: Next question. Is premium pay the same as
overtime pay? P: Graveyard is a place where dead people are
buried, and why is it called graveyard during
S: No sir, because overtime is additional nighttime?
compensation payed beyond the work of 8 (Storytelling)
hours. However, the premium pay is additional
compensation payed for the first 8 hours during P: Okay let’s go to service charge. What is this
rest days. service charge?

P: And in terms of rate in case of overtime and S: Charges collected by hotels, restaurants etc.
what’s the rate in case of premium?
P:It consists of?
S: The case of overtime is it’s just an ordinary
day and the overtime would include aditional S: 85 percent for the employees and 15 percent
25%percent of the basic wage. However, if the for the management.
overtime falls on a holiday or a rest day it would
be 30 percent. P: How will the workers who are entitled to 85
percent of the total service charge divide it
P: So there are different rates. And what is this among themselves? How?
labors standard nightshift differential pay?
S: Equally among themselves.
27:55:
P: 15 percent share to the management is
S: In nightshift differiential pay there is an intended for what purpose?
additional 10 percent with the work performed
within 10pm to 6am. S: To answer for any loss or damages

P: Why is there a need for additional P: What is loss of wreckage?


compensation of at least 10 percent for every
hour of work performed from 10 to 6 the S: For example sir if a waiter has broken a
following morning? Why not apply that in the glass instead of paying for the glass the
morning? amount will be charged to service charge

S: Because working from 10pm to 6am is time P: So that’s very reasonable. So that 15
for rest. percent may be used by the management to
answer for losses or breakage. Is this limited
P: Is that considered nighttime? Yes only for hotel establishments?

P: So the additional is given because? S: also to bars, restaurants etc.

S: (Inaudible) P: Is there a law in the Philippines that compel


or require every service establishment to collect
P: Why? What is nighttime designed for? It’s service charge from their customers?
designed for sleeping. So instead of sleeping
you are made to work then the employer must S: No sir,  it’s up to management whether they
pay additional. So it’s only right that the will collect service charge or not.
employer must pay on top of your basic wage.
At least 10 percent for every hour of work ➢ What is Holiday pay? - Holiday pay is
performed. So there would be a nighttime work additional compensation given to a
and there would be a daytime work. Yes or no? worker who works during regular
holidays
S: Yes sir
➢ Do you pay holiday pay on a special
P: Is that nighttime also known as the holiday? -No. You are only paid (30%
graveyard shift? Why graveyard shift? A place additional compensation based on your

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regular salary) when you work on day’s pay is limited to each of the 12
special holidays. regular holidays.

➢ What kind of pay is this? Premium pay ➢ Are there exceptions for receiving the
holiday pay?
➢ If employee doesn’t work on a special In terms of COVERAGE, the general
holiday (e.g. Ninoy Aquino Day –August rule: All employees
21) does he get paid? No. He only gets
paid if he works but generally he doesn’t Exceptions:
get paid anything o Those of the government and
any of the political subdivision,
➢ Atty’s discussion: including government-owned
➢ When you speak of holiday pay, it only and controlled corporation;
refers to regular holidays not special o Those of retail and service
➢ Regular holidays, establishments are establishments regularly
closed because they have to pay their employing less than 10 workers;
workers and no one goes to most o Domestic helpers and persons in
establishments because there are no the personal service of another;
customers o Managerial employees as
defined in Book III
➢ If during Dec 25 (regular holiday) o Field personnel and other
workers are not supposed to work but if employees whose time and
they do how much do they get? - performance is unsupervised by
Regular basic pay (100%) + holiday pay the employer including those
(100%) = 200% who are engaged on task or
contract basis, purely
➢ Rest Day and Regular Holiday, how commission basis, or those who
much do they get? 230% are paid a fixed amount for
performing work irrespective of
➢ How many regular holidays do we the time consumed in the
have? 12 performance thereof. [Sec. 1,
Rule IV of the IRR]
➢ How many special holidays? 3
➢ TN: Retail Establishment is one
➢ Atty discussion: you have to qualify principally engaged in the sale of goods
because we have nationwide special to end-users for personal or household
holidays (in so far as the Labor Code is use; Service Establishment is one
concerned) and other special holidays principally engaged in the sale of
like Cebu City Charter Day which is not service to individuals for their own or
a regular holiday because it is not one household use and is generally
of the 12 that were mentioned in the recognized as such.
enumeration by law. That enumeration
can be changed by the President ➢ Do you have a domestic worker? Yes
through a Proclamation. (then Atty proceeded with asking for the
rights and privileges of domestic
➢ If you work on Special holidays what do workers)
y o u g e t ? - Yo u g e t a d d i t i o n a l
compensation of 30% of your basic ➢ Relevant Law: RA 10361 (Batas
regular pay Kasambahay or Domestic Worker’s Act)

➢ Work on special holiday falling on a rest ➢ Note: RA 10361 has expressly repealed
day (Regular daily wage + 50% thereof) Chapter III, “Employment of
Househelpers”, Title III of Book III of the
➢ TN: HOLIDAY PAY/PREMIUM PAY - Labor Code
Holiday pay is a one-day pay given by
law to an employee even if he does not
work on a regular holiday. This gift of a

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➢ Domestic work - This refers to work higher education or technical and


performed in or for a household or vocational training. [Sec. 9, RA 10361]
households. [Sec 4(C). RA 10361] ➢ (g) Social and Other Benefits A
domestic worker who has rendered at
➢ Domestic worker or “Kasambahay” - least one (1) month of service shall be
Refers to any person engaged in covered by the Social Security System
domestic work within an employment (SSS), the Philippine Health Insurance
relationship such as, but not limited to, Corporation (PhilHealth), and the Home
the following: general househelp, Development Mutual Fund or PagIBIG,
nursemaid or “yaya”, cook, gardener, or and shall be entitled to all the benefits in
laundry person. The term domestic accordance with the pertinent provisions
worker or “kasambahay” excludes any provided by law.
person who performs domestic work ➢ (h) Leave Benefits - A domestic worker
only occasionally or sporadically and who has rendered at least one (1) year
not on an occupational basis. of service shall be entitled to an annual
service incentive leave of five (5) days
➢ Rights and Privileges with pay [Sec. 29, RA 10361]
➢ (a) Minimum wage
➢ (b) Standard of Treatment The employer ➢ What are the 2 classifications of
or any member of the household shall workers paid by results? (This is a star
not subject a domestic worker or question. TN!)
“kasambahay” to any kind of abuse nor - Those whose time and performance
inflict any form of physical violence or are supervised by the employer
harassment or any act tending to - Those whose time and performance
degrade the dignity of a domestic are unsupervised by the employer
worker. [Sec. 5, RA 10361]
➢ (c) Board, Lodging and Medical
Attendance - The employer shall Labor Standards (July 24, 2017)
provide for the basic necessities of the
domestic worker to include at least 1. What is 13th month pay? (Under PD
three (3) adequate meals a day and 851)
humane sleeping arrangements that - Section 1. All employers are hereby
ensure safety and shall provide required to pay all their rank-file
appropriate rest and assistance to the employees a 13th month pay not
domestic worker in case of illnesses later than December 24 of every
and injuries sustained during service year. With the removal of the ceiling
without loss of benefits. [Sec. 6, RA P 1 , 0 0 0 . 0 0 a l l r a n k - a n d ‐ fi l e
10361] employees are now entitled to a
➢ (d) Privacy - Respect for the privacy of 13th month pay regardless of the
the domestic worker shall be amount of basic salary that they
guaranteed at all times and shall extend received in a month, such
to all forms of communication and employees as entitled to the benefit
personal effects [Sec. 7, RA 10361] regardless of their designation or
➢ (e) Access to Outside Communication- employment status and irrespective
The employer shall grant the domestic of method by which their wages are
worker access to outside paid provided that they have worked
communication during free time: for at least 1 month during the
Provided, That in case of emergency, calendar year. The employer is
access to communication shall be required to pay his employees their
granted even during work time. [Sec. 8, 13th month pay, not later than
RA 10361] December 24 of that year PD 851
➢ (f) Education and Training The employer
shall afford the domestic worker the 2. Does it include basic salary only or
opportunity to finish basic education and included other allowances? Basic only.
may allow access to alternative learning - “Basic salary” or “basic wage”
systems and, as far as practicable, contemplates work within the normal
eight (8) working hours in a day.

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This means that the basic salary of basis, in which case their employer shall
an employee for purposes of grant them 13th month pay).
computing the 13th month pay
should include all remunerations or N o te : “ E q u i v a l e n t” i n c l u d e s : ( 1 )
earnings paid by the employer for Christmas bonus, mid-year bonus, cash
services rendered during normal bonuses (2) and other payments
working hours. For purposes of amounting to not less than 1/12 of the
computing the 13th month pay, basic salary (3) but shall NOT INCLUDE
“basic salary” should be interpreted cash and stock dividends, cost of living
to mean not the amount actually allowances and all other allowances
received by an employee, but 1/12 regularly enjoyed by the employee as
of their standard monthly wage well a nonmonetary benefits.
multiplied by their length of service
within a given calendar year.
6. How are employees classified under the
3. What is basic salary? Regular pay 13th month law? Rank and file
excluding premiums and other allowances employees and managerial employees.

4. Are there exceptions when premiums 7. Am I (Atty) a rank and file employee?
are included for computation of 13th Yes. I don't exercise independent
month pay? Yes. When provided in the judgment. If I am absent, I will suffer a
CBA, company policies, company deduction from my salary. I don't make
practices. policies here. I only follow them.

5. Who are entitled? Rank and file only. TN: Managerial employees - those
- O n l y r a n k - a n d - fi l e e m p l o y e e s , vested with the powers or prerogatives
regardless of their designation or to lay down management policies and to
employment status and irrespective of hire, transfer, suspend, lay-off, recall,
the method by which their wages are discharge, assign or discipline
paid, are entitled to the 13th month pay employees or effectively recommend
benefit. Managerial employees are not such managerial actions.
entitled to 13th month pay.
- Additional Information: 8. Time of payment? Not later than dec 24.
General Rule: ALL EMPLOYERS are General Rule: paid not later than Dec
hereby required to pay all their rank and 24 of each year.
file employees a 13th month pay not
later than Dec 24 of every year, Exception: ER may give to his
Provided that they have worked for at employees half (½) of the required 13th
least one (1) month during a calendar Month Pay before the opening of the
year. regular school year and the other half
on or before the 24th of December
Exempted Employers: every year. The frequency of payment
(1) Government, its political of this monetary benefit may be the
subdivisions, including GOCCs except subject of agreement between the
those operating essentially as private employer and the recognized CBA of
subsidiaries of the Government; the employees.
(2) Employers already paying their
employees a 13th month pay or more in Purpose: In order to celebrate
a calendar year or its equivalent at the Christmas.
time of this issuance; and - The Christmas season is an opportune
(3) Employers of those who are paid on time for society to show its concern for
purely commission, boundary or task the plight of the working masses so they
basis and those who are paid a fixed may properly celebrate Christmas and
amount for performing specific work, New Year.
irrespective of the time consumed in the
performance thereof (except those 9. What is the rule for those paid by piece
workers who are paid on piece-rate rate or task basis? Employees who are

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paid on piece work basis are, by law, Benefit: It shall apply to the first 4
entitled to the 13th Month Pay. (Revised deliveries of the employee’s lawful wife
Guidelines on the Implementation of the with whom he is cohabiting. It shall be
13th Month Pay Law) for 7 calendar days, with full pay,
consisting of basic salary and
10. If partly fixed and partly commission? mandatory allowances fixed by the
Also entitled to 13th month. Regional Wage Board, if any, provided
that his pay shall not be less than the
Employees who are paid a fixed or mandated minimum wage. [Sec. 2, RA
guaranteed wage plus commission are 8187]
entitled to 13th month pay (not purely
commission); the basis for computation TN: Cohabiting means the obligation of
shall be both their fixed or guaranteed the husband and wife to live together. If
wage and commission. (Revised the spouses are not physically living
Guidelines) together because of the workstation or
occupation, the male employee is still
11. Domestic workers? Yes, under the entitled to the paternity leave benefit.
Batas Kasambahay (Domestic Workers [Sec. 1, IRR, RA 8187]
are also entitled to SIL)
Usage of the benefit: Usage of the leave
12. When your helper retires, is she shall be after the delivery, without
entitled for retirement? Yes. If she has prejudice to an employer’s policy of
rendered at least 5 years of service. allowing the employee to avail of the
benefit before or during the delivery,
13. Does the employer have the discretion provided that the total number of days
to pay the 13th month as often as shall not be more than 7 days for each
possible? Yes. It is the employer’s covered delivery. (Sec. 5, IRR, RA
prerogative. (TN: 13th month pay is tax 8187)
exempt)
Conditions/Requisites for entitlement
14. If the employee tries to kill his employer [Sec. 3, IRR, RA 8187]:
and he worked for 6 months? Is he still (1) He is married;
entitled to 13th month pay? Yes, still (2) He is an employee at the time of the
entitled. Because the criminal employee delivery of his child;
is still entitled to celebrate Christmas (3) He is cohabiting with his spouse at
with his family. the time that she gives birth or suffers a
miscarriage;
TN: The law is silent on this matter and (4) He has applied for paternity leave
there is no forfeiture provision under the with his ER within a reasonable period
13th pay law. So since the law is silent, of time from the expected date of
construe in favour of labor. In this case, delivery by his pregnant spouse, or
the employee is still entitled to 13th within such period as may be provided
month pay. by company rules and regulations, or by
CBA; and,
15. What is paternity leave? Who are (5) His wife has given birth or suffered a
entitled? What are the requisites? miscarriage.
Coverage and purpose: Paternity leave
is granted to all married male 16. How many miscarrages or deliveries? 4
employees in the private and public (Four)
sectors, regardless of their employment
status (e.g. probationary, regular, 17. Does this cover intentional abortion?
contractual, project basis). The purpose No.(Binugbog mo yung wife mo. This is
of this benefit is to allow the husband to not covered because you committed a
lend support to his wife during her crime.)
period of recovery and/or in nursing her
newborn child. [Sec. 3, RA 8187] 18. I will change it to cash na lang so I can
buy milk and vitamins for my child

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(employee wants to get cash A: so what is the data that needs to be in the
equivalent). Is it allowed? No. It is not form?
convertible to cash.
S: the first die details about the employer like
19. Why is Paternity Leave for 7 days only? name, address, age. And the second form is for
Why is it different from maternity leave? the masterlist for the kasambahay.
Because it is the wife that gives birth.
A:There is another for the employer and
another for the employee?
Labor Standards july 26
S: yes, sir. And it is the employer who will also
A: mr. Ortiz tell us what you have researched. accomplish the second form. The employer will
input the salary.
S: with regards to how to register your beloved
kasambahays. Basically there are three forms. A: so it is the employer who will accomplish.
You register it with the philhealth and also SSS How many forms have you mentioned?
and pag-ibig. First of all this is provided in the
implementing rules and regulations that this S: 2 forms sir.
covers yaya, cooks
A: and these forms does it have to be signed by
A: what is yaya in English? the employer?

S: nanny (>.<) S: yes, sir.

A: it is housemaid A: does it have to be signed by the


kasambahays?
S: and other persons who render domestic S: no sir.
work in one household.
A: klaro na ha.
A: let’s go to the registration requirements.
S: if the kasambahay does not have an existing
S: it is provided in the implementing rules and philhealth number there is this 3rd form. This is
regulations . that for government agencies are for registration for the kasamabahay and
required to apply in a form that is accomplished by the kasambahay.
(nagkasapaway si sir ug Ortiz diri dili maklaro).
As of now what is provided are forms but there It shall be passed in the regional philhealth
is still no system. office.
A: does it have to be submitted simultaneously.
A: so what you have is just a form.
S:It is more convenient for the employer to
S: this is just a form sir. submit it simultaneously.

A: for what agency A: once the forms are submitted what can we
expect from your agency?
S: this is a unified form
S: issue a philhealth number to the
A: sss, philhealth, pag-ibig? kasamabahay and not to the employer. (walay
i-issue sa employer)
S: yes sir. So the first step is that The employer
should register in this HEUR 1 form A: is that easy to issue or it takes awhile?

A: so the employer must register and fill up the S: it is only in a piece of paper.
form?
Then, with regards to the contribution if the
S: yes sir. kasambahay is earning:
- Less than 5000- the employer will
shoulder the whole contribution, (P200)

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- 5000- but below 9000- employer


(p200), kasambahay (P100) A: so if your kasambahay gets sick you go to
- 9000 and above- there will be an vicente sotto free of charge. Including
additional in every 1 thousand. confinement and medicine?
-
A: how will the employer remit the money? S: yes sir.

S: in the regional office of philhealth A: that’s the reason why you need to know the
coverage of kasambahay law. Huwag kayo
A: it cannot be paid through bank? mag violate ng law. If you do not register your
kasambahay how will the government know.
S: as of now sir the manner of payment is still You are unjustly depriving your kasambahays
paying in the regional office. of these benefits.

A: so you expect lucio tan to fall in line and So thank you mr. Ortiz.
pay?
(calls a student)
S: yes
A: solo parent welfare act provides two major
A: how often in a month or a year does the benefits. First, is the parental leave and the
employer go there to pay for the contribution? other one is the flexible work schedule

S: every month but with regards to S: under the solo parent welfare act, solo
kasambahay they can pay in advance good for parents are entitled to a leave for 7 days with
two calendar years. pay. If the solo parent has already rendered
service for 1 year.
A: every month on or before the 25th of the
month? A:So if newly hired worker is not entitled to the
parental leave?
S: yes sir.
S: yes sir. And for the second benefit which is
A: do you issue a receipt? the flexible work schedule. The solo parent can
use vary her time of arrival and departure
S: yes sir. provided that they are present during the core
work hours.
A: so kayo magbayad kayo so you will not incur
criminal liabailty. A: if the solo parent will apply for a flexible
schedule, what good will it do?
S: but with regards to the form sir it is only for
philhealth because even if unified form we don’t S: i think sir it would give the solo parent a
have a system to link it to other governement better opportunity to be there with the child
agency. since he is the only one responsible for the
care of the child.
A: so separate yung sa SSS and pag-ibig. So
hypothetically, 200 for philhealth and another A: if you speak of a child
200 for SSS and another 200 for pag-ibig?
S: he must be less than 18 years but also
S: yes sir. includes those above 18 years old provided
they are incapacitated, physically or mentally
Then it is immediately effective sir. (special child)

A: give me one. A: for what purpose may the solo parent use
the parental leave
S: we have the no balance billing sir. It is when
the kasambahay is admitted in an accredited S: like the child getting sick or hospitalized.
hospital (Vicente sotto) then the kasambahay
don’t have to pay anything. A: what else?

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(9) Any other person who solely provides


S: graduation parental care and support to a child or children;

A: also enrolment, PTA meetings. So maximum (10) Any family member who assumes the
of 7 days every year. Is the status of a solo responsibility of head of family as a result of the
parent permanent? death, abandonment, disappearance or
prolonged absence of the parents or solo
S: no sir. If the solo parent gets married then parent.
he/she can no longer avail of the benefits in the
solo parent welfare act. A; let’s go to the conditions of entitlement to
these leave privileges. What does a solo parent
A: now give us instances where one is need to avail these benefits?
considered a solo parent.
S: a solo parent needs to present a solo parent
S: (1) A woman who gives birth as a result of identification card issued by the DSWD.
rape and other crimes against chastity even A: so kailangang may ID. Is this 7 day leave
w i t h o u t a fi n a l c o n v i c t i o n o f t h e benefits on top of other leave benefits?
offender: Provided, That the mother keeps and
raises the child; S: yes sir.

(2) Parent left solo or alone with the A: so aside of your service incentive leave you
responsibility of parenthood due to death of also get to enjoy the solo parent leave.
spouse;
On the flexible work schedule, if it would affect
(3) Parent left solo or alone with the the productivity of the company can the
responsibility of parenthood while the spouse is employer apply for exemption?
detained or is serving sentence for a criminal
conviction for at least one (1) year; S: yes sir the employer can apply for exemption
from DOLE.
(4) Parent left solo or alone with the
responsibility of parenthood due to physical (calls another student)
and/or mental incapacity of spouse as certified
by a public medical practitioner; A: what leave benefit is under the VAWC law?

(5) Parent left solo or alone with the S: the battered woman is entitled to a leave of
responsibility of parenthood due to legal 10 days with pay.
separation or  de facto  separation from spouse
for at least one (1) year, as long as he/she is A: how can one apply for that benefit?
entrusted with the custody of the children;
S: it depends because if the employee is a
(6) Parent left solo or alone with the private employee he only needs to present the
responsibility of parenthood due to declaration certification from the punong barangay, or
of nullity or annulment of marriage as decreed prosecutor or clerk of court.
by a court or by a church as long as he/she is
entrusted with the custody of the children; A: present the certification to the employer. And
the employer shall honor that or he incurs
(7) Parent left solo or alone with the liability. So what purpose is the leave benefit?
responsibility of parenthood due to
abandonment of spouse for at least one (1) S: since she was battered, beaten, she needs
year; to recuperate. Also go to the hospital. And also
for filing or legal work.
(8) Unmarried mother/father who has preferred
to keep and rear her/his child/children instead A: so can the woman take the matter to her
of having others care for them or give them up own hands and shoot the husband? The
to a welfare institution; answer is no because that would be murder. So
you go to lawyer to seek legal assistance
because you want your husband to be in jail.

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July 26 Labor (2nd Hour started at the 52nd


minute mark) JMM: They only have few workers.
It speaks of retail establishments, give an
*tabian jud kaayo siya so ako ra giinclude ang example of a retail establishment with not more
relevant portions* than ten workers.

JMM: So there goes our Anti-Violence against Maitem: Baristo


Women and Children’s Act. That is a piece of
criminal legislation, diba? But that is useful not JMM: Retail establishments are engaged in the
only in criminal law but also in labor. There are sale of goods to consumers.
other laws there that contain labor related
provisions. Example of service?

Let’s go to Retirement Pay. Maitem: Carwash

JMM: We have Mr. Ortiz here who is under the JMM: You go to a carwash and there are less
GSIS Law, under such law there is also a than ten people working. They don’t need to be
retirement benefit and very generous at that. paid the retirement pay. It is seldom that you
So for employees in the private sector we also can see these workers reach 60 or 65 in the
have a retirement benefit under our Social carwash.
Security Act. Now those are not the laws we will
discuss tonight. What law can we find the Anybody else excluded from the coverage of
retirement pay law? the law aside from those under retail, service or
agricultural establishments?
Maitem: Under the Labor Code.
Maitem: Government employees
JMM: Labor Code. Is it separate from the SSS
and the GSIS Law? JMM: Example is Señor Lawrence Ortiz.

Maitem: Yes. JMM: What is the retirement pay?

JMM: What is the coverage of this retirement Maitem: Retirement pay is equivalent 1/2
pay? It applies to who? month salary for every year of service.

Maitem: It applies to all employees aged at the JMM: That is the retirement pay under the
optional age of 60 and rendered at least five Labor Code. How many days are there in a
years of service. But when they reach 65 years month?
old that is already the compulsory age.
Maitem: 30 days
JMM: Are there workers/establishments
exempted from the coverage of the retirement JMM: The retirement pay under the labor code
pay law? is not simply limited to 15 days. What does it
mean?
Maitem: Yes. Those who are under retail,
service and agricultural establishments who Maitem: It means 1/2 month pay or 15 days pay
employ not more than 10 workers. + 1/12 of the 13th month + cash equivalent of
the service incentive leave that should not be
JMM: So if they have exactly 10 employees? more than 5 days.

Maitem: Exempted also sir. JMM: How many days is that equivalent to?

JMM: So ten and below workers. Why are they Maitem: 15 days + 2.5 days from the 13th
excluded? month + 5 days from the service incentive
leave= 22.5 days
Maitem: Because if that is the case the
establishments are not that financially capable JMM: So you have to know the daily rate of an
of meeting those requirements. employee to compute the retirement pay. Right

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now what is the minimum wage in Region 7, Maitem: No because some of the workers
cities of Cebu, Lapu Lapu and Mandaue might get illness
nonagricultural?
JMM: If you retire early what good may it do to
Maitem: 366 pesos. you?

JMM: So if you have a worker who gets paid Maitem: You have early retirement pay.
the minimum wage and has rendered of 20
years of dedicated service and has reached 65 JMM: That’s one you have money at such an
years of age, how do you compute for the early age. You also have more time to spend it
retirement pay? while you are still alive. There’s nothing wrong
with an early retirement. May mga Supreme
Maitem: 22.5 x 366 x 20 (years of service) (= Court cases where they challenge the early age
Php 164,700) of retirement but SC said there’s nothing wrong
with it in fact you should be happy because you
JMM: Correct that is how you come up with the retire early, you get your pay, spend more time
retirement pay. SO if you have a worker with your family, you can even find another job
working for you including a domestic worker and then retire again. But not in San Carlos,
then you now have an idea of how much a because although we may no longer enjoy our
retirement pay is. life teaching here, we have to wait until 60
years old. And sometimes the downside of that
It’s really important to know the daily wage. The is it ties with your job although you may want to
daily wage is the base figure used in computing find a job somewhere else. You may feel
not just for the retirement pay but also shortchanged if you quit after rendering so
overtime, premium, holiday pay and also wage many years of service.
related benefits.
That is the downside of waiting for the
Does the labor code allow an age of retirement retirement age under the LC, so long. Right
lower than 65 for compulsory and that is lower now the trend in many private establishments is
than 60 for optional? to provide early retirement. In fact after so
many years of service you can opt to retire and
Maitem: Yes get your retirment pay. Because they also don’t
want you around all the time–by the time you’ve
JMM: That is allowed in what instances? rendered much service your sweldo becomes
very big as well and they want to keep high
Maitem: CBA or employment contract. salaried workers. They want to hire new guys
with smaller salary but don’t take it against the
JMM: Is that valid? employer if they want early retirement because
it goes both ways, you benefit they benefit also.
Maitem: Yes
Yung iba diyan mga balasubas they want you
JMM: Kasi if there is no CBA walang to leave the company because when you resign
employment agreement or or retirement plan you don’t get your retirement pay.
you have to follow the age of retirement under
the LC. So the law will not prohibit an early age of
retirement.
What else aside from the CBA? Retirement
Plan. Diba the law says ‘in the absence of Gobyerno, Señor Ortiz what’s the retirement
retirement plan blah blah’. It says in the age under our law?
absence but if there is a retirement plan you
follow that agreement. It is the law between the (gives homework to Ortiz)
parties, applicable only when there is no CBA
or agreement. JMM: What is your special law?

Is there anything wrong with an early age of Florence: The Special Benefit
retirement?

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JMM: We are talking here of the Magna Carta Florence: For me it’s discriminatory that men do
of Women, do you not realize that the not have laws if they…
Philippines is a signatory to the International
Convention Eliminating the Worst Forms of JMM: Women have Maternity Leave, Service
Discrimination Against Women. We are a Incentive Leave, Vawc Leave, Solo Parent
member state that ratified that convention. And Leave and this law. You compute it you are no
an offshoot of that convention is the Philippines longer working at all (lmao)
making several legislation foremost of which,
the most comprehensive is the Magna Carta for The Maternity Leave they want to extend it to
Women. 100 days. Just imagine if you are employed in a
retail establishment employing less than ten
Who do you think among our lady senators workers and everybody goes on leave, your
prinicpally sponsored the Magna Carta for establishment has to stop operations.
Women?
Now I want you to tell us what is this
Florence: Pia Cayetano. gynecological disorder, give an example.

JMM: She is the principal sponsor. Who are Florence: This refers to the disorders which
entitled to this special leave? involve surgical procedures such as curettage
which is a procedure where some tissues in the
Florence: Under the Magna Carta for Women, uterus are removed.
under Section 18, a woman employee who
renders a continuous aggregate service of 6 JMM: Because of?Why do we have to remove
months for the past 12 months prior to surgery. those tissues from the uterus?

JMM: With pay? Jemar: Post delivery procedure sir done after a
woman gives birth. The tissues are dangerous
Florence: Yes sir because they cause blood clots.

JMM: Per month?Per year?Per surgery? JMM: That disorder would that require a minor
or major surgery?
Florence: Per year.
Jemar: Minor.
JMM: Not per surgery because not all surgeries
require recuperation, there are minor and major JMM: In your experience the period of
surgeries. recuperation would take how long?

And the computation of this special leave is Jemar: It only takes four days.
based on?
JMM: O four days lang kaya kayo wag kayo
Florence: Based on the gross monthly manghingi ng two months. Kasi while the law
compensation of that woman gives the benefit it also distinguishes and
realizes that there could be a minor or major
JMM:If the woman who’s working receives a surgery. This one is a minor surgery.
monthly compensation of 50k and then she can
maximize the two months leave then 100k for As to how long the period of recuperation will
two months. Very generous and liberal? depend on whom?

Florence: Yes Florence: The physician.

JMM: Walang bawas yung sweldo ni Mama JMM: Competent certified physician.
who undergoes surgery. Men we don’t have Even the DOH has a guide on how long one
that even while being battered by our wives our has to recuperate from that surgery. Di
partners (ayan na ang bitterness mga bes pwedeng bola bolahin, they classify the surgery
ahhahaha). Why do you think? and the period of recovery.

I want a major surgery, example.

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rendered 15 years of service. To be entitled of


Florence: surgery involving the breast the retirement pay, you must be at least 60
years and rendered at least 15 years of service
JMM: Sir Ortiz what do you think is that and you must not avail of the permanent
disorder? disability benefit.

Lawrence: Mastectomy S: I would just like to clarify to hammer the


point, you can retire before 60 as long as you
JMM: Why does one need to remove the have complied with the 15 years of service but
breast? you can only claim it once you reach 60.

Lawrence: If it is already undergoing treatment A: did you have a similar way of computation
sir for the retirement pay, ½ pay of every month of
every year service?
JMM: What happened to the breast?
S: it is different in the GSIS law. It is kinda
Lawrence: There is a malignant growth like complicated.
tumor.
A: so there is no compulsory age of retirement.
JMM: How long do you recover from a surgery So you just wait until 60, provided you have
like that? rendered at least 15 years of service and you
have not availed of the permanent disability
Jemar: At least 2 weeks. benefit.

So let’s proceed to our topic (calls a student)


LABOR STAN- August 2, 2017 I want the benefit uner the VAWCI law.

A: so what we want to find out is about the S: under this law, the woman who is considered
retirement pay for employees in the violated by men
government. So what did you find out?
A: any men? No husband or partner?
S: with regards to retirement benefits of GSIS
members, the requisites for the entitlement for S: the partner or husband. They are given 10
the retirement pay; At least 15 years of service, days of leave with pay and this leave can also
At least 60 years old be extended when the circumstances arise.

A: is that optional or compulsory? Because A:who are entitled of this benefit?


under the labor code, we have two age of
retirement; 60 for optional and 65 for S: women
compulsory. So what is the age of retirement
for the government? A: working women because of you are not
working you don’t need a leave because your
S: you can retire anytime sir. leave is the whole year. So to be entitled of this
leave you need to be a victim of
A: but do you get any retirement benefits?
S: victim of violence or abuse.
S: there are certain rules with regards to
compensation. It requires that you have A: what kind of violence?
rendered at least 15 years of service, and 60
years old and the third one is that the member S: it should be physical, emotional pr financial
should not be availing of the permanent that your husband is doing towards you.
disability pension. This permanent disability
pension is a part of the benefits granted by the A: what is the process of availing this benefit?
gsis law. What do you need to present to your employer?

A: so you must be at least 60 years old. Well


you can retire anytime but you must have

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S: she has to get the certification either from A: what is this benefit under the domestic
the; punong barangay, prosecutor, or clerk of adoption act? under this act what employment
court. benefit is given and to whom?

A: so you need to get the certification of either S: under this act, the leave extended is the
people; barangay captain or is it punong paternal and maternal leave.
barangay. Check your local government how
they are describe. Under the VAWCI law how is A: who are the individuals covered by this law?
it described?
S: the persons covered under this act are those
S: it says punong barangay. who adopt a child.

A: also the clerk of court and prosecutor. What A: so the benefit is extended to those persons
would be needed by these public officials who adopt a child. So adoptive working parent
before they issue a certification? Can I just go are benefited under the law. What is the benefit
to them and give them a selfie of me being extending to this adoptive parents?
battered or the bruises?
S: the paternity and maternity leave.
S: they will need the temporary restraining
order A: so similar benefits given to biological
parents. As if they gave birth to the child. So to
A: what temporary restaring order? the father who adopted a child, what leave
benefit?
S:….
S: paternity leave.
A: you have to show a proof that you have
lodged a complaint under the vawci law that A: for the mother?
you are a victim of violence and you use that
certification and present it your employer and S: maternity leave
that will make the employer grant you a ten day
leave with pay. So for what purpose is this A: what is the purpose of the law?
leave granted by the VAWCI law?
S: to provide support to the adopted child and
S: for medical purposes. emotional connection.

A: why what happened to that woman? A: why not just let the grandparents take care
of the child?
S: because she might be physically abused
S: to provide an emotional connection.
A: so she needs to go to the hospital to seek
medical treatment. For what other purpose? A: why is that needed?

S: it is for the legal purposes. For the filing S: because the child is not the biological child
of the adopters.
A: she might want to consult a lawyer to
determine if she needs to file case against her A: summarize your answer
husband. When you go to the lawyers office,
you need to be absent. When the ten day paid S: the purpose of this law is to give a chance
leave is not adequate can it be extended? for an emotional connection between the
adoptive parents and the adopted child. And
S: yes sir. because the child is below 7 yrs. Old they need
attention.
A: but if the employer wants a certification then
you go back to where you secured the A: if there is no law or this law does not exist
certification and try to justify the extension. what is the effect?
(calls another student)

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S: it will discriminate those who cannot have S: they are given 40 minute intervals in every 8
natural children. hour shift

A: because the adoptive parents need to take A: the law requires the employer to
care of the child the same way as the biological
parents do. They are similarly situated. So to S: the time to breastfeed.
avoid discriminating parents who cannot bear
children. Otherwise from the perspective of the A: how does the law define that time?
adopted child, the child also needs the same
TLC (tender love and care) from the parents (calls another student)
whether biological or non biological. Can you
adopt even without a partner or not married? S: it is called a lactation period.

C: yes sir. A: what is this lactation period?

A: so with regards to the domestic adoption S: the lactation period is the time wherein the
law, those are the benefits given to the adoptive nursing employee is given the time to
parents. take note it contemplates of a child breastfeed her child.
less than 7. You will enjoy similar benefits
granted to biological parents. Q: What is this Lactation Period?
 
So what is this expanded breastfeeding act? S: The Lactation Period is the period wherein
Who is covered by the law? the nursing employees will breastfeed her
infant or young child.
S: those female workers who has a child.
 
A: female workers who has a child? Say it right. Q: How long is this Lactation Period?
Because some mothers don’t lactate.  
S: It should not be less than 40 minutes in an 8
S: female workers who lactate hour workship.
 
A: it covers nursing employees. Does it apply to Atty: So if you have an  8 hour  workship, the
anegineers? nursing employee is entitled to a 40 minute
lactation period. The period is intended to
S: nursing employees in this law are those enable the nursing employee to breastfeed her
female workers who breastfeed— infant and/or young child.
 
A: so it has nothing to do with one’s profession. Q: Does the law limit only to breastfeeding?
How does the law define nursing employees? What is breastfeeding?
 
S: those female workers who are breastfeeding A: Breastfeeding is the method of feeding an
their child. infant directly from human breast.
 
A: breastfeeding or lactating. Infant and ? Atty: In my opinion, this is one of the most
significant  piece  of legislation that we never
S: infant and/or young child. had before until this was enacted.
Kawawa  ang  mga  babae  because if you are a
A: for a nursing employee what are the mother and you  bare  a child, you have to
employment benefits granted by this law? breastfeed your child. Therefore, most of the
time you have to stay at home or in your
S: employers must establish lactation stations. house. 
 
A: the law mandates that employers should Q:It  takes you many years to do this
establish lactation stations in the breastfeeding thing and your tendency is
establishments. What else? to?
 
S: As a mother, you have to quit your job. 

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Atty:  oh  yun  ang  masama  cause you have to S: Development of the family in their financial
quit your job. That is the  situation  we usually aspect because they don't have to sacrifice
h a v e b e f o r e t h e l a w. ( T h e E x p a n d e d their work.
Breastfeeding Promotion Law)  
  Atty: So it tries to balance WORK LIFE and
Q: What good does it do to you compared to FAMILY LIFE. Unlike before it is all about
the situation wherein we don't have this Family Life.
law?  
  Night Clubs Are not excluded from coverage.
S: The advantage of this law is that if you are a All establishments  kahit  nga  government
nursing employee then you don't have to quit establishments are included. That's the law and
your job because they can now do the you make sure that the law is  accomplied  with
breastfeeding in the workplace.  every  establishments. You are entitled as long
  as you are a nursing employee.
Atty: You can now do the breastfeeding in your  
workplace because the law requires that every Q: Can an establishment be exempted from
establishment must establish a Lactation establishing a lactation station?
Station. And not only that since you need a time  
off when you do that thing the law grants you S: Yes, they can apply for an exemption.
not less than 40 minute break interval to leave  
your station and go to that Lactation Station.  Q: With what agency of government?
   
Q: Is it a compensable work hours? S: DOLE
   
S: Yes it is compensable. Q: On what grounds?
   
Q: Is it included in computing the 8 hours of S: 
work?  
  (1)  workplace  is too small or not feasible in
S: Yes. putting up a lactation station
  (2) number of nursing employee 
Q: Is that compensable  40 minute  break  
interval on top of your meal period? Q: If the DOLE grants a Certificate of
  Exemption, how long will that be?
S: It is in addition to the meal period.   
  S:  2 years.
Q: How long is the meal period under the  
Labor Code? Q; Renewable or not?
   
S: Under the Labor Code, the meal period S: Renewable.
should not be less than 60 minutes.  
  Q: Without the exemption, are you required to
Q: Is that compensable or not? establish a Lactation Station?
   
S: Not compensable. S: Yes.
   
Atty: Not compensable. But insofar as this Q: If you do not have one, is there an
Expanded Breastfeeding Promotion Law on top administrative  liabilty  on the part of the
of your 1 hour meal period you also enjoy a employer?
compensable 40 minute lactation period.  
  S: Yes.
Q: Good or Bad Law?  
  First Offense - Not less than P 50 000 but not
S: Good Law. more than P 200  000.
   
Q: What does the law intend to achieve?

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Second Offense - Not less than P 200 000 but Atty: Whether with  less  trips or not the driver
not more than P 500 000. and conductor are assured that for 8 hours of
  work they get paid at least the daily minimum
Third Offense - Not less than P 500 000 but not wage.
more than P 1 000 000.   
  Q: How much is the daily minimum wage in
  Cebu?
Atty: The law imposes strict  penalities. So  
establishments that you find out there without a S: P 366
Lactation Station, you can always report that to  
the DOLE as well as to the DOH. Q: Good or Bad?
   
Drivers and Conductors in the Public Utility S: Good.
Transport Industry (DOLE No. 118-12)  
  Q: For the Operator?
Q: Why does a bus needs a conductor?  
  Atty: Bad for the Operator. Now to balance it
S: A bus needs a conductor in order to organize you are saying that aside from the fixed wage
and facilitate properly in ensuring the money component there is another component. 
from the passengers.
  Q: What is the other component for Drivers and
Q: Why does a jeepney need not have a Conductors for Public Utility Transport
conductor? Industry?
 
S: because it is smaller compared to a bus. S: Performance-based component.
 
Q: For the taxi? Atty: So Partly Fixed and partly performance
  based
S: No sir because of the size of the vehicle.
  Q: What are the two major factors in
Atty: It covers only buses in the Public determining the performance based
Transport Industry and it applies to drivers and component?
conductors. 
  S: Performance-based component shall be
In the past, bus drivers and conductors usually based on  safety performance  and  business
have their wages through a commission. If they performance such as ridership, revenues/
can have many number of trips and could take profitability, and other related parameters.
many passengers, they earn more. That's why  
they drive very fast and very reckless so they Atty: Business ridership - the more passengers
could make as many trips and take many you earn more. 
passengers as possible.
 
Q: What is wrong with that?           Safety performance - less or no
  accidents, the employer pays you higher.
S: Since the driver drives faster the life of the
driver as well as the passengers will be at risk. Under this performance-based component,
  there must be an agreement between the
Q: What is the improvement introduced by operator and driver. 
DOLE?
  Q: Based on that Department Regulation,
S: It is now fixed and performance based what other employment benefit can we find?
compensation scheme wherein the driver and  
employers will agree as to how they are going  Atty: The Department Regulation provides that
to be paid. The compensation should not be if they are made to work beyond 8 hours it shall
less than the minimum wage for  an 8 hours  of not be more than 12 hours.
work whether with passengers or not.
 

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Q: What employment benefit is given to


them if they made to work for 12 hours? A: Correct, 25%. But if the employer only pays,
say, 10% of your overtime work rendered in an
 S:  1 hour rest period. ordinary working day then there is also
underpayment of overtime pay. Correct?
Atty: Unlike in the Labor Code even if you work
beyond 8 hours you are not entitled to a rest S: Yes, sir.
period. Usually, you can benefit only for the
meal period or the overtime pay.  A: Or if the employer does not pay you at all of
overtime pay then that will again constitute a
Q: Why is there maximum limit? money claim. Right?

S: This is for the benefit of the employees Sir in S: Yes, sir.


order for them to not be exhausted.
A: Now, since we've studied on Wages and
Q: If they are exhausted because they have Labor Standards, we should also study in my
been awake for more than 8 hours with a subject HOW TO RECOVER FROM THE
maximum of 12 hours. What is the EMPLOYER THESE NON-PAYMENT OR
tendency? UNDERPAYMENT OF WAGES AND OTHER
LABOR STANDARDS. You should know that. 
S: They will not be able to work efficiently.
In the same way, you study criminal law
Atty: It will affect his mental alertness and specially the RPC on felonies, you also study
because of that it will result to a possible criminal procedure. In my subject, we also
accident.  integrate the study of procedure. In studying
procedure, we should know the law on
The Department Regulation is intended more jurisdiction.
on the interest of commuting public. 
Why do you think it is important to study
(END of Midterm Transcript by Brattys) procedure and jurisdiction?
Labor Standards Law
(transcript for finals) S: It's important to study jurisdiction so that if
you are a worker you will know where to file
your complaint. 
LABOR STANDARDS AUGUST 14, 2017
A: That's jurisdiction. Procedure? Why is it
Atty JMM (A): How much is the daily minimum important to know?
wage for non-agricultural workers?
S: Because your complaint might be dismissed
Student (S): Php 366 if you fail to follow the procedure.
A: In my subject, it's all in one - labor standards
A: If there is non-payment of that prescribed plus the procedure. My question is this: In case
daily minimum wage or there is underpayment there is non-payment or underpayment of
(which means the employer pays the employee wages and labor standards, which agency has
under Php 366) that will constitute a money jurisdiction?
claim which will entitle the worker, generally,
the right to recover - that non-payment or S: If the non-payment is more than Php 5 000,
underpayment of wages.  you have to file the complaint in the Labor
Arbiter. 
Aside from the topic on wages, we also
discussed other labor standards. Like for A: So, the agency or government that has
example overtime pay. By the way, how much jurisdiction over money claim is labor arbiter?
is the overtime rate on an ordinary working
day? S: Yes, sir.

S: If it's an ordinary work day, it's an additional A: Is that office found in the Labor Code of the
25%. Philippines?

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S: Yes, atty. It is.  S: It states the employee does not claim


reinstatement and also if the money claim does
A: Aside from the Labor Arbiter, who else has not exceed Php 5 000, the regional director has
jurisdiction over money claims? If there are any. jurisdiction. And if it's beyond Php 5 000, the
labor arbiter have jurisdiction.
S: The Regional Director of the DOLE.
A: So, you mentioned two requirements when
A: Is the jurisdiction of Regional Director of the RD have jurisdiction? When the claim does
DOLE also found in the Labor Code? not exceed Php 5 000. And who does not claim
for reinstatement?
S: Yes, atty.
S: The one who filed the complaint is the one
A: So, is it safe to say that when we speak of who is not claiming for reinstatement. If he is
jurisdiction, it is defined by law? not claiming to have his work back

S: Yes, atty. A: Why? What happened to him?

A: And when we speak of procedure, it is also S: He is terminated on his work


defined by law?
S: Yes, atty. A: And?

A: What law? S: If he is terminated from work and if he will


file for reinstatement then the regional director
S: With regards to Labor Arbiter, the labor does not have jurisdiction. 
code. 
A: Why would he ask for reinstatement?
A: Are you telling us that the Labor Code also
tells us the procedure in initiating a complaint? S: To have his work back.
Including the proceedings? 
A: Because he was terminated?
S: Yes, atty.
S: If you are terminated without just cause, you
A: Can you open the LC and tells us what can ask for reinstatement. 
article in the LC that defines the procedure
before the Labor Arbiter? A: What law is that? Check the labor code so
we can settle the issue. 
S: It's Article 224.
We are now discussing, dissecting, and
A: So, that Art. 224 defines the procedure on scrutinizing the jurisdiction of regional director.
how to initiate complaint before the LA?  Are you still with us, class?

That Art. 224 defines the jurisdiction of the LA. [He called another student while the other
It does not tells on how to initiate the complaint. student checks the labor code]
That's not it.
A: What are the requisites when the regional
Anyway, you said that the jurisdiction over director has jurisdiction over money claims?
money claim belongs to Labor Arbiter or may
belong to the Regional Director of DOLE. S2: (1) The claimant must be an employee or
Right? How do we know which of the two has househelper
the original jurisdiction? (2) It must arise from an employer-employee
relationship.
S: For the regional director of DOLE, they have
jurisdiction if the.. Art. 129 speaks of the A: I thought he was already terminated?
jurisdiction of the regional director.  S2: I think atty he is not deemed terminated. He
may ask for money claims which falls under the
A: So how do we know? jurisdiction of the regional director even if he is

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not terminated. He may ask for the money A: It may also be with the labor arbiter.
claim because it says 'without reinstatement'. It Depending on the circumstances. By the way,
does not mean that he should be terminated. does the labor code define the jurisdiction of
the labor arbiter?
A: Continue
S2: Yes, atty
S2: The amount must be-
A: Found in what article of the LC?
A: Who is the claimant?
S2: Art. 224, atty.
S2: All employees including domestic workers.
A: In Art. 224, there is a long enumeration of
(3) Complaint does not seek reinstatement cases. Can you go to specific enumeration
together with the money claim involving money claim where the jurisdiction
(4) The amount must not exceed Php 5 000 belongs to the labor arbiter?

A: If all these requisites are present, the S2: It falls under number 3.
regional director has jurisdiction over the
money claim? (3) If accompanied with the claim for
reinstatement, those cases that workers may
S2: Yes, atty. file involving wages, rates of pay, hours of work
and other terms and conditions of employment; 
A: If the claim is more than Php 5000 and the
claimant does not seek reinstatement, does the A: That's one. 'If accompanied with the claim of
regional director have jurisdiction over the reinstatement'.. regardless of the amount.
money claim? Example on a claim for wages, hours of work,
and rates of pay.
S2: No, atty.
S2: An employee was not paid with his
A: Because? overtime pay so he file for claim of wages

S2: Because it states that the claim must not be A: So if the claim is for Php 3000 and there is a
more than Php 5000 claim for reinstatement, jurisdiction belongs to?

A: Will your answer be the same if the claimant S2: The labor arbiter
seeks reinstatement and the amount is more
than Php 5000 A: Because?

S2: The jurisdiction is with the Labor Arbiter S2: Because it states that it is with
because the claim now seeks with reinstatement
reinstatement
A: And if the amount involved exceeds Php
A: So, if the amount is more than Php 5000 and 5000
the claimant seeks reinstatement, then
jurisdiction belongs to? S2: Also falls under labor arbiter's jurisdiction
A: But there is no claim for reinstatement
S2: Labor arbiter.
S2: Also under the labor arbiter
A: Do you understand? It would seem to me
that the money claim is toss between the labor A: Read it
arbiter and the regional director. Does that
meant that the regional director is not the only S2: (6) Except claims for Employees
agency that has jurisdiction over money Compensation, Social Security, Medicare and
claims? maternity benefits, all other claims arising from
employer-employee relations, including those
S2: Yes, atty of persons in domestic or household service,
involving an amount exceeding five thousand

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pesos (Php 5000) regardless of whether connected, I cannot file my claim for employees
accompanied with a claim for reinstatement compensation under the employees
compensation law with the labor arbiter? I
A: What is so important in knowing jurisdiction? cannot do that?

S2: Because if you file for a claim or a case to S: With regards to your 1st question atty, under
the agency which has no jurisdiction, then the the Employees Compensation Law, it should be
case may be dismissed. filed with the-

A: For lack of? A: It's not with the labor arbiter. Because?

S2: For lack of jurisdiction over the subject S: Because it's one of those excluded.
matter.
A: So, you cannot file it in the labor arbiter
[Calls again the previous student] because the law says 'except'. So, if you file it
in the labor arbiter, what will happen to your
A: What was again my question? complaint?

S: For the reinstatement, atty. S: It will be dismissed.

Under Art. 294, it states here that the employee A: Because there is lack of jurisdiction over the
who is unjustly dismissed from work shall be subject matter. So, under the Employees
entitled to reinstatement without loss of Compensation Law, the benefits provided
seniority rights and other privileges and to his therein are outside the jurisdiction of the labor
full backwages, inclusive of allowances, and to arbiter. Because, as you study later on in Social
his other other benefits or their monetary Welfare Legislation, the jurisdiction belongs to
equivalent computed from the time his the Employees Compensation Commission
compensation was withheld from him up to the (ECC) through the Social Security System.
time of his actual reinstatement. 
Another exemption is?
A: So, that provision will tell us that if the
worker is unjustly dismissed then he has the S: Medicare.
right to claim reinstatement to his former
position. So, reinstatement means restoration A: There is no more medicare. That has been
to one's former position. Balik sa trabaho. substituted by... Senyor Ortiz! It is substituted
Without loss of seniority rights. So, that is what by?
is meant by claim for reinstatement. That
means he was dismissed unjustly. A worker is S: PhilHealth Insurance Act
dismissed unjustly without just or authorized
cause. Tama?  A: Give me one benefit under the PhilHealth
Insurance Law, Mr. Ortiz?
Alright. Knowing now the jurisdiction between-
by the way, Ms. S2 mentioned 'except claims S: Hospitalization
under the employees compensation, social
security, medicare, and maternity benefits'. She A: Thank you. So, if the worker who is a
said. What does that mean? Sabi niya 'except'. member of the PhilHealth Insurance
Corporation has a claim for hospitalization
S: With regards to claims regarding employees benefit, can he file that in the labor arbiter?
compensation, etc.-
S: No, atty.
A: The jurisdiction does not belong to the labor
arbiter? A: Because the labor arbiter has no jurisdiction.
Because the law says 'except'. Follow ha. All
S: Yes, atty. It's not. you need to know for your MCQ set for the
finals will be the BENEFITS UNDER THE
A: if I am a worker who got myself injured LAWS THAT ARE EXCLUDED
resulting to my disability and it is work-

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What else? that the worker's complaint cannot be filed


directly with the labor arbiter?
S: Social Security Benefits
S: Those conciliation conducted by the labor
A: We are referring to Social Security Act. Nasa arbiter are cases that are referred to them by
Appendix nang Labor Code niyo. In that special the-
law, there are so many benefits - sickness
benefit, disability benefit, funeral benefit, etc.  A: What does the law say?
S: Article 234.Mandatory Conciliation and
So, if the worker has a claim under the Social Endorsement Cases. (a) Except as provided in
Security Law, can the labor arbiter take Title VII-A, Book V of this Code, as amended,
cognizance? or as may be excepted by the Secretary of
Labor and Employment, all issues arising from
S: No, atty. labor and employment shall be subject to
mandatory conciliation-mediation. The labor
A: You file it there it will be ordered dismissed arbiter or the appropriate DOLE agency or
by the labor arbiter. Because it's EXCEPT. It is office that has jurisdiction over the dispute shall
excluded from the jurisdiction of the labor entertain only endorsed or referred cases by
arbiter. So simple ha.  the duly authorized officer. 

Remember we are still on money claims
because labor standard is about money claims. A: Oh. By the duly authorized officer. Who is
Termination dispute and unfair labor practice is this duly authorized officer?
on labor relations. Doon lang tayo sa money
claims (nag charades si atty haha class erupts into
laughter) 
And money claims will arise in case of non-
payment or underpayment of wages and other S: The Single-Entry Approach Desk Officer
labor standards. (SEADO) 

[Calls another student] A: Are you telling us that a money claim is an


issue arising from labor management? That it
A: If a worker has a money claim against his should undergo mandatory conciliation-
employer, and money claim is within the mediation? Are you telling us that?
original and exclusive jurisdiction of the labor
arbiter. Can the worker file his complaint S: Yes, sir.
directly with the labor arbiter?
A: Yes. It is an issue arising from labor
Did you watch the Iron Man? (HAHA SEGUE management. Diba? Labor representing the
HAHA didn't include it) worker and management representing the
employer. It's an issue arising from labor
S: No, the worker cannot file directly his management. And under the labor code, it has
complaint with the labor arbiter.  to undergo  mandatory conciliation-mediation
and under the same law, the labor arbiter shall
A: Why not? entertain cases ONLY those that are endorsed
to him by the duly authorized officer which is
S: It is provided in the labor code that the the SEADO.
complaint is subject to a mandatory
conciliation-mediation. So, if I file directly with the labor arbiter, can he
entertain it or not? When will the labor arbiter
A: Oh. But the labor arbiter also conducts entertain it?
mandatory-conciliation mediation. 
S: When there is a referral or endorsement
S: It is subject to mandatory-conciliation- coming from SEADO. 

A: My answer to you also conducts mandatory
conciliation-mediation. Why is it that you said

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A: Ok. Without that, the law says it shall not be A: the policy of the state is to encourage the
entertained. When we say it shall not be parties to amicably settle their dispute rather
entertained, the labor arbiter will dismissed the than litigating their dispute.
complaint until you can show proof that there is
an endorsement or referral from this duly Does the single desk officer exercise
authorized officer (SEADO). adjudicatory power?

So, you cannot file directly. You cannot. What is S: no sir.


the purpose of this  mandatory conciliation-
mediation?
 A: his power and authority is to conciliate and
mediate. That is his only function. He does not
S: The primary purpose of  mandatory decide the case. he does not have quasi
judicial powers.
conciliation-mediation to explore the possibility
of amicably settling their case.
 Soo that is the essential provisions in the single
entry approach.
A: I-areglo! That's the purpose of  mandatory
conciliation-mediation. Sabot. To agree. If they In the proceeding before a single entry
agree. But if they cannot agree, go to the next approach desk officer, are lawyers allowed to
level. 
 represent a party as a general rule?
-END- S: no sir.
A: why not?
LABOR - August 16, 2017
S:because the purpose sir is only to conciliate
A: where do we find these SEAD offices? and mediate so there is still no lititgation. There
is no need for lawyers.
S: in the DOLE building, in gen. Maxilom near
CIC, in mango. A: they do not allow lawyers as a general rule.
Generally, the parties must appear personally
A: anywhere else? without lawyers. Lawyers are expressly
prohibited because how can you expect
S: we can find it in the arbitration Branch of conciliation and mediation if the parties are just
NLRC across anita’s bakeshop in fuente represented by lawyers. Who have no material
osmena. interest in the subject of the claim.
A: anywhere else? But lawyers can be present to assist their client
but not appear. They are different. The
S: we can find it also in the regional offices of exception is when the lawyer is authorized with
the national conciliation and mediation board. a special power of attorney. You will study later
A: do we have one in Cebu? on in law of agency in what instance is a
special power of attorney required. And one of
S: yes sir in the same building in the DOLE those is when there is a compromise. Because
building. a lawyer is a mere agent of the client.

A: so these are some of the places where you (calls another student)
can find the single entry approach desk offices.
This is material because this is enumaerated in A: under our revised rules on single entry
the revised rules. And if you compare it with the approach, there are issues concerning labor
old rules, there are amendments. They added and employment which are outside the rules.
What are those?
more offices. Because conciliation and
mediation has the primary purpose of amicable S: the issues that are outside the coverage of
settling the case. is it is encouraged or the rules of the single entry approach is
discouraged? provided under section 3 od DO 151-16. The
S: it is encouraged sir. following cases are:
• Notices of strikes or lockouts

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• Issues involving the interpretation and of work, rates of pay and other conditions of
implementation of the collective employment. Under the labor code, when there
bargaining agreement is an issue involving the interpretation and
enforcement of the collective bargaining
• Issues involving the implementation of agreement that belongs to or is under the
the company personnel policies. jurisdiction of the grievance machinery that is
incorporated in a collective bargaining
Take note of the definition of the company agreement.
personnel policy as defined by the supreme
court. Kayo na ang mag google. In that grievance machinery usually it creates a
grievance committee composed of equal
Maneja v NLRC (gi search ra ni) representatives in the management and union.
They will be the one to resolve the issue in the
It should be explained that company personnel
interpretation and implementation of the CBA.
policies are guiding principles stated in broad,
long-range terms that express the philosophy If that grievance is not resolved, the grievance
or beliefs of an organizations top authority committee will now refer the matter to the
regarding personnel matters.  They deal with voluntary arbitration whose jurisdiction is also
matters affecting efficiency and well-being of found in the labor code. So no more SENA.
employees and include, among others, the
procedure in the administration of wages, Another one is the company personnel policy. i-
benefits, promotions, transfer and other google niyo definition made by the supreme
personnel movements which are usually not court.
spelled out in the collective agreement.
In proceedings before the labor arbiter, do we
• Applications for exemptions for wage have rules of procedure?
orders by the RTWPB
S: yes we have it is the 2011 NLRC RULES OF
A: which agency has the power to grant PROCEDURE as amended.
exemptions?
A: so referred na sa SENA sa labor arbiter, that
S: the Regional tripartite wages and referral will now authorize the worker to file his
productivity board. complaint directly with the labor arbiter.
A: RTWPB is not DOLE. It is a separate and An action before the labor arbiter may be
distinct agency. initatiated by filing a complaint. What is a
complaint?
So these are the instances. I’ll ask the
exemptions in the exams. Let us go one by S: a complaint is a pleading alleging the cause
one. Notice of strikes and lock outs may only of action.
be filed with the following grounds:
A: the complaint has a caption. Tingnan niyo
• Unfair labor practices yung inupload ko. May blank vs blank.
(you’ll study more of this in labor relations) Who are usually the parties to a money claim?
The notice of strike or lockout must be filed with S: the parties to a money claim are the worker
the national office of conciliation and mediation. and the employer.
Since it is to be filed in the national conciliation A: how do we describe them in a complaint?
and mediation board, the office by its name
already indicates that it will conciliate and S: the worker is described as the complainant
mediate. while the employer is described the
respondent.
Another one is the interpretation and
implementation of the collective bargaining A: if it were a civil action?
agreement. A collective bargaining agreement
is a contract between the employer and the S: plaintiff and defendant.
organized labor union which defines the powers

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A: criminal action?

S: people of the Philippines v accused. :  Securities and Exchange Commission

A: sa SENA?
A: Do we have an office here in Cebu?
S: the requesting party and the responding
party.
Student (S): Yes
A: if you try to remember the complaint we
have the name of the complainant and the
name of the respondent. What kind of parties A: Where is it located?
are they?
S: real parties in interest. : SEC Bldg. V. Rama Ave. Guadalupe, Cebu
City 
A: what is meant by a real party in interest?

S: real parties in interest refer to those persons (calls another student)


that if a decision is made they will be affected
or injured.
A: Aside from the name of the complainant,
A: a real party in interest is one who stands to name of the respondent, there's also in the pro
be benefited or injured by the decision. forma complaint the address of the respondent.
Why is it important to indicate the address?
If you sue a person who is not a real party in
interest, what will happen to your complaint?
S: It is important for the service of summons
S: it will not prosper.
A: so if you sue mcdonalds which is just a A: Why is service of summons important?
brand name then you are suing not a real party
in interest. The judgement will not be enforced.
S: For the Labor Arbiter to acquire jurisdiction
Atty (A): If you sue an employer, an employer over the person.
may either be natural or juridical person. So
kung juridical person yan, Florence Montecillo
(shocks ako man diay ni HAHAHA) doing A: It could be jurisdiction over the person or
business under the name and style of ' over the subject matter.
Florence Dress Shop ' . You do not sue
'florence dress shop' because that is neither a
natural nor a juridical person, ang employer Part of due process is serving summons.
dyan is really florence montecillo.
A: What is the plural of Summons? Spell it.

If you want to know who is the person who


owns that 'florence dress shop', you go to the S: S U M M O N S
DEPARTMENT OF TRADE AND INDUSTRY
where that business name was registered or
you go to the establishment and   look at the A: Plural?
license.
: SUMMONSES
A: On the otherhand, if it were a juridical entity,
whether a registered partnership or a
corporation. What agency of government can A: With regard to the complainant, how is
we find the true and complete name of the jurisdiction over the person of the complainant
corporation? acquired?

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S:  through the initiation of the complaint in the A: Registered Mail, how is that maam? where
Labor Arbiter. do we go?

A: So the jurisdiction over the person of the S: through a post mail. you have to go to the
complainant is acquired when he files the post office
complaint. He is deemed to have submitted his 

person to the jurisdiction of the Labor Arbiter. A: So you go to the post office, that's where the
Arbiter sends the summons by registered mail.
Kung criminal case? In sending by registered mail, the proof of
mailing is   evidenced by a registry receipt and
the proof of receipt is evidenced by a registry
S: Service of warrant of arrest and voluntary return card. 
submission.
Is registered mail the same as ordinary mail?
A: In Civil Action, it is similar, still the serving of
summons.
No. Because in ordinary mail, you just use your
stamp and saliva.f
So when you file a complaint with the
Arbitration Branch of the NLRC, that complaint
will have to be raffled by the Executive Labor Give me example of a private courier.
Arbiter and assign to a Labor Arbiter. The
raffling will be done in the presence of the S: LBC, FedEX, 2go
complainant, of course, without the presence of
the respondent because the latter has not yet
been notified by that time. It will be assign to A: If it is done by personal service, what is your
the LA and it will cause the issuance of proof of service?
summons, together with the summons, it will be
accompanied with a copy of the complaint. In      If it is done by registered mail, what is your
the service of summons, it will indicate there proof of evidence?
the date, place and time of the mandatory      If it is done by private courier, what is your
conciliation and mediation conference.  proof of evidence?

That means that it is not only the Single Entry (Wa niya tubaga)
Approach Officer who does conciliation/
mediation. The Labor Arbiter , under the rules
of procedure,   will also conduct a mandatory A: Assuming na serve na yung summons, the
conciliation and mediation conference, so this next procedure there is the holding of the
will be the second round. mandatory conciliation and mediation. By the
way, who will preside over the conciliation
mediation before the Labor Arbiter?
Of course the summons will have to be served
to the respondent muna before conducting a
conciliation mediation conference. S: The Labor Arbiter.

Under the rules, how is the service of summons A: Must he preside personally or not?
done?

S: Personally.
S: It can be done through personal service,
registered mail or private courier.

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A: Yes personally, he cannot just simply S: Yes


delegate it to somebody else because the
NLRC Rules says that it should be personally
presided. A: Why?

What are the exceptions under the rules of S: Because it involves an issue of labor and
procedure as amended? management relation

S:  The Labor Arbiter shall personally preside A: and it is not one of those excluded.
over and take full control of the proceedings
and may be assisted by the Labor Arbitration
Associate in the conduct thereof.  Provided Can you mention to us those labor disputes
that, in areas where there is no Labor that are expressly excluded from the mandatory
Arbiter assigned, conciliation and mediation conciliation and mediation.
may be conducted by a Labor Arbitration
Associate, any other NLRC personnel with
sufficient training and knowledge on conciliation S: ...
and mediation, authorized by the Chairman or a
duly authorized personnel of the Department of (a) Conflict arising from the interpretation or
Labor and Employment pursuant to any implementation of the CBA - the labor dispute is
Memorandum of Agreement executed for this subject to the grievance machinery of the CBA
purpose. where there is created a grievance committee
who will have to mediate and conciliate the
A: So those are the exceptions when a non labor dispute
labor arbiter may preside over conciliation and
mediation. In the past, they always delegate it (b) Interpretation or enforcement of company
to a Labor Arbitration Associate,and no case personnel policies
has ever been settled kasi kung staff lang yan,
natural dapat *** esp lawyers are the one
appearing before the Labor Arbiter, ma (c) Notices of Strike or Lockouts - the office that
ooverwhelmed yung Labor Arbitration Chamber has the authority is the National Concicialition
na mag settle kaya sabi ng NLRC, let's amend and Mediation Board, which by the name of its
the rules, let's require the Labor Arbiter to office, already involves conciliation and
personally preside, eh ngayon nag reklamo ang mediation , to avoid duplication of mediation
mga arbiter kasi papaano pag di available, so and conciliation the law excludes it.
that's why they came up with an amendment.

Other than those, the law is very clear that all


labor disputes or all issues involving labor and
LABOR- AUGUST 30, 2017 management must undergo mandatory
conciliation and mediation. The Labor Arbiter or
any agency of goverment, including the DOLE,
Inter-union is a dispute between and among cannot entertain any of these cases UNLESS
legitimate labor unions, while intra-union is a there is a referal or endorsement. A referal or
dispute between and among the union endorsement may only take place if the labor
members. dispute is not amiably settled before the Single
Entry Approach Desk Officer.

Atty (A): If the labor dispute involves an inter-


union or intra-union dispute, does it need to Now let's assume that there is already a low
undergo mandatory conciliation and mediation possibility of a settlement of the labor dispute,
before the Single Entry Approach Desk Officer? so what the Single Entry Approach Desk Officer
did was to make a referral or endorsement.

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In one of the forms I uploaded,you will see A: Who between them is the alter ego of the
there that there is a notice to file action which is President of the Republic of the Philippines?
similar to the Katarungang Pambarangay Law,
therein without a certification from the barangay
head then no action may be brought before the S: The Secretary of the DOLE
court. The same is true here, no labor dispute
may be brought to the Labor Arbiter ,Regional
Office of the DOLE, Bureu of Labor Relations, A: What's the relation of the NLRC with the
UNLESS there is a referal or endorsement from DOLE?
the Single Entry Approach Desk Officer.
The answer is the NLRC is merely an agency
If the Labor Arbiter exercises jurisdiction attached to the DOLE for policy and program
because there's already a referal or making.
endorsement, do we have an existing rules of
procedure before the Labor Arbiter?
(Calls another student)

S: The 2011 NLRC Rules of Procedure, as


amended. A: How is an action initiated before the
arbitration branch of the NLRC?

A: If there is absence of any appealable


provision then what other rules do we apply? S: An action is initiated by filing a complaint.

A: What is a complaint?
S: Rules of Court

A: Yes, particularly the rules of civil procedure. S: A complaint is a document containing the
cause of action.

Is the NLRC under the department of the


DOLE? A: Does the NLRC define what is a complaint?

: NO. S: Yes. Rule 3, Sec 1, a complaint or petition is


a pleading alleging the cause or causes of
action of the complainant or petitioner. The
Who heads the DOLE? names and addresses of all complainants or
petitioners and respondents must be stated in
the complaint or petition.
S: Secretary of the DOLE
A: Is a complaint a pleading or not?
A: Who heads the NLRC?
S: It is a pleading.
S: The Chairman.
A: What are the elements of a cause of action?
A: Is the Chairman the same as the Secretary
of the DOLE?
ROVID

S: No.
R - right on the part of the plaintiff
O - obligation on the part of the defendant to
respect the right of the plaintiff

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V - violation of the right of the plaintiff S: Yes.


I - injury, this is the material *** of the right of
the plaintiff A: the email address of the parties?
D - damage, the amount of loss suffered by the
plaintiff as a result of the violation of his rights.
S: *inaudible*

Under Labor law, is a worker entitled to be paid


at least the minimum wage? A: the date of birth of the complaint?

S: Yes. S: *inaudible*

A: If the employer does not pay the worker at A: Number of workers in the establishment?
least the minimum wage, is there a violation of
the right of the worker?
S: Yes.

S: Yes.
A: Certification of forum shopping?

A: If there is a violation of the right of the


worker, does the worker suffers an injury? S: it must be attached

S: Yes. A: Do we need to verify the complaint?

A: As a result of the injury suffered by the S: Yes


worker, is the worker entitled to damages?
A: Do we need to sign the complaint?
S: Yes.
S: Yes
A: Those elements must be pleaded in a
complaint because those are the elements of a
cause of action. So in Labor, it is much simplier, A; Give me an example of a cause of action
because we are talking here of laborers and that you will put in the complaint involving labor
workers. standards.

What are written in the complaint? S: Non-payment or underpayment of wages,


non-payment of benefits (i.e holiday pay, night
shift differential)
S: The names of the parties, cause of action....
A: When you file that complaint with the
A: Do we need to write in the complaint the arbitration branch of the NLRC that complaint
address of the parties? will be raffled by the Executive Labor Arbiter
and assign to a specific Labor Arbiter. The LA
assigned will now cause the issuance of
S: Yes. summons and notify the respondent of the
date, place and time for the mandatory
conciliation and mediation conferences. True or
A: The nature of business of the employer? false?

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S: True.
A: Insofar as Labor Money Claims, what is the
A: How many conciliation and mediation period of prescription?
conferences are ormally scheduled by the
Labor Arbiter? S: 3 years reckoned from when the action
accrues.
S: Two.
A: When does the action accrues?
A: What is the purpose of service of summons
to the respondent? : from the day the action may be brought.

S: The purpose of service of sumons is to When is day an action may ne brought?


acquire jurisdiction over the person of the
respondent.
A: on the day when the claim becomes a legal
possibility (?)
A: How do you describe the parties in a
complaint?
Who says that? The Civil Code of he
Philippines.
S: Respondent and Complainant.

A: So if you file beyond 3 years?


A: Who is the Complainant?

S: The complaint will not prosper.


S; The workers.

A: What will the Labor Arbiter do if the claim


A: Does the Rules of Procedure allow a motion has prescribed?
to dismiss the complaint?

S: Dismiss the complaint.


S: Yes.

(calls another student)


A: On what grounds?

A: What is res judicata?


S:
Flirp
S: Res judicata is that it is barred by prior
- Lack of jurisdiction on the subject matter judgment.
- Forum Shopping
- Res Judicata A: Can you illustrate.
- Improper Venue
- Prescription S: When a court promulgated a decision then a
case was filed having the same cause of
A: What law governs prescription of action? action, the same parties and the same issues,
that prior decision by the court will be a
reference to the court where the case is
S: Labor Code and Civil Code of the Philippines currently filed.

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Another ground is improper venue, Do we have


A: If a worker files a complaint for unpaid rules on Venue?
overtime pay and secures a favorable judgment
that has become final and executory. However, S: It is filed in the Regional Arbitration Branch
the worker is not happy with the amount of the NLRC where the workplace of the
awarded. Can he not re file his complaint employee.
again?

A: How does the NLRC Rules define


S: No. workplace? me? what is my workplace?

A: What's the reason behind it? Why is it S: here in San Carlos.


barred? What is evil sought to be avoided?

A: Do we have an arbitartion branch that covers


S: to avoid relitigation. my workplace? what arbitration branch?what
region?
if you are not happy, you should have appeal
the decision before it became final and S: Yes. Region VII.
executory. Stop hoping to refile a similar case
involving the same parties, cause of action and
issues, you cannot do not, because your A: Where is the address of the arbitration
complaint may be terminated or dismissed on branch here in cebu city?
the ground of res judicata.

S: Located in J. Llorente St.


A: Who defines jurisdiction over the subject
matter?
A: Across?
S: It is conferred by law.
S: Anita's Bakeshop
A: Can it be subject to agreement by the
parties? A: Can I go to Mindanao and file a complaint
against San Carlos?
S: No.
S: No.
A: So when we speak of the jurisdiction of the
Regional Director on simple money claims, it is A: Why?
found on what law?

S: Because the workplace is....


S: In the Labor Code.

A: Will there be a proper venue?


A: Jurisdiction of the Regular Court?

S: No.
S: Rules of Court

A: Will there be an issue on venue?


A: Rules of Court paricularly on BP Blg. 129.

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S: Yes. P: Correct. Because an order dismissing the


complaint, is it a final order? Or an interlocutory
order?
A: Can San Carlos file a motion to dismiss my
complaint filed in Mindanao for improper S: It is the final order
venue? P: Yes. Its final order. It entirely disposes of the
action, there’s nothing else to be done. Your
case has been dismissed. Distinguish it from
S: Yes. interlocutory order.

S: (Inaudible)
A: Is that a permissible ground to dismiss?
P: If there is no ground to appeal- rather, if
S: Yes. there is no ground to appeal and there is no
motion to dismiss filed then of course the next
procedure after the filing of the complaint and
A: The rules of the NLRC says that the venue is service of summons is the conduct of the
at the workplace of the worker. The workplace mandatory conciliation.Correct?
is the place where the worker is regularly
assigned. What about if the worker is an S: Yes
overseas Filipino Worker? Where is the venue?
P: Question, who will preside over the
conciliation mediation conference?
S: The place where the OFW resides or the
place where the employer’s office is located. S: The labor arbiter

P: Personally or through proxy?


A: At whose option?
S: Personally
S: The option of the employee. P: Why?

S: Because he is the one who is


A: The venue is intended for whose knowledgeable
convenience?
P: Is a labor arbiter a lawyer or not?
-Convenience of the parties. So if I’m going to S: A lawyer
file a case against San Carlos, I will file it here
in RAB-Region VII because the records are P: If there’s no labor arbiter assigned on the
here, my work is here and San Carlos is region who will preside over the conciliation
located also here in Cebu. Otherwise, your mediation conference?
complaint will be dismissed because of
improper venue. S: Any member of the department of labor and
employment who is knowledgeable with the
(Calls another student) conciliation mediation process

Prof (P): Forum shopping is filing of an action in P: Can a DOLE personnel preside?
different fora (plural). If the LA grants motion to
dismiss what is the remedy of the aggrieved S: Yes, as long as he is knowledgeable on the
party. process

Student (S): The aggrieved party may file an P: Does he need to be accredited?
appeal in the NLRC
S: Yes

P: Can an NLRC personnel preside?

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S: Yes 

S: Yes
P: Would it put an end to the litigation?
P: No need of training?
S: There is a need S: Yes

P: So, next question is, what is the primary P: Correct.  So if you see the definition of
purpose of conciliation mediation conference? compromise under civil law, a compromise is a
contract wherein the parties by make reciprocal
S: to attain amicable settlement concessions. So, compromise is good. Right?
But of course a compromise must be
P: Does the law encourage compromise voluntarily, freely, and willingly entered into
settlement? parties, so there must be no vitiation of
consent. If the consent is vitiated, what is the
S: Yes status of the contract?

P: What law recognizes compromise S:Voidable


settlement?
P: correct. So dapat the arbiter should ensure
S: (Inaudible) that there is no vitiation of consent by the
parties. Correct?
P: So there’s nothing illegal about it?
S: Yes
(Next Student)
P:  In most instances however, the parties
P: If there is an agreement by the parties to cannot arrive to compromise because it’s
settle their case amicably then they can enter difficult to agree. Correct? It’s difficult to agree.
into a compromise, true or false? If there is no settlement?


S: true S: If amicable settlement cannot be achieved,


then the labor arbiter will proceed to the other
P: And if there is a compromise before the labor purposes of conciliation and mediation
arbiter, does that compromise need to be in
writing or verbal P: Yes, you proceed to the other matters that
must be taken up. What are those other
S: Writing matters?

P: Aside from the requirement that it must be in S: Determining the real party in interest.
writing is there any requirement of the rules
with regard to the compromise? P: Yes. If a money claim  involving a worker,
who do you think are the real party in interest?

S: It must be approved labor arbiter
S: The real parties in interest are the employee
P: Correct. Why does it require an approval of and the employer
the labor arbiter?
P: Correct, and what is meant by the word ''real
S: Because the labor arbiter is a lawyer party in interest''?

P: What does he want to ensure? S: It’s defined as one who is to be benefited or


injured from the decision
S: That the compromise agreement is not in
violation of law, public policies, morals, etc.
 P: Correct. One that stands to be benefited or
endured by the outcome of the case. So if the
P:. so if it’s approved, what’s the effect of the parties are not the real party in interest, can the
approval on the compromise? Does it result in court render a valid judgement?
the dismissal of the complaint?
S: No

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are other real parties of interest, then you may


P: Correct. So if I am a worker who has unpaid amend the complaint. You can raise the issue
overtime pay against San Carlos and they during the conciliation mediation conference.
Boromeo to be the one to file  complaint, is he And how do you amend the complaint you fill
a real party in interest? up another form, and you put there, amended.
That has the effect of substituting the original
S: No complaint. Alright? The cause of action, so
initially, you were claiming for unpaid overtime
P: Every action must result or prosecuted in the pay and then during the conciliation and not
name of the real party in interest. Real party in after. The arbiter says, is this your only
interest, real parties in interest, not persons of claim? And you said also 13th month pay but I
interest. So if you are a representing a service forgot. Instead of doing that piecemeal the
crew in that fast food restaurant, McDonald, labor arbiter, you just amended the complaint.
who do you think is the respondent employer, is
it McDonald? S: Next would be to-

S: No P: Real party interest, amendment of the


complaint
P: Of course not, how would you know who is
the person running McDonald? S: Defining the issues involved

S: I would look at P: So if I have a unpaid overtime pay, what do


you think is the issue?
P: If it were a corporation were to go to check
the name of the person behind the company S: Underpayment

S: Security Exchange Commission P: How do you formulate the issue?

P: If the respondent establishment is a single S: Non-payment of overtime pay


proprietor, what agency  do you think you can
go to, to check the owner of that single P: Put it in a sentence. The issue is whether or
proprietor? Department of? not complainant is entitled to unpaid overtime
pay. And then the issue is I was not paid the
S: Trade and Industry o v e r t i m e p a y, s o w h e t h e r o r n o t t h e
complainant is entitled to overtime pay. If your
P: Correct. because that were you register your salary was not paid or underpaid, whether or
business name.  Do you sue Baristo? You sue not the complainant was entitled to
the owner. Right? And I just suspect that the underpayment of wage. So if the complaint is
owner that is a single proprietor, not a alleged that you are an employee, the arbiter
corporation.How about partnership? will ask, respondent do you agree that this
complainant is your employee? Says the
S: Securities and Exchange Commision respondent, No. Why? He’s not my employee,
he’s an independent Contractor. Right? So the
P:  If the partnership is not registered SSC, sue issue is whether or not the complainant is an
every partner, because they are the real parties employee or an independent contractor. That is
in interest. You must know the complete name. the issue that you have to prove and establish
when you are required to submit your position
(Next Student)
 later on. Alright? so after all this matters are
done, the labor arbiter will now terminate the
P: Necessity are amending the complaint. conciliation and mediation conference. Correct?
How’s that?
S: Yes
S: If there are other parties to include in the
complaint, so you have to amend P: So when the conciliation is terminated by the
labor arbiter then he will now direct the parties
P:  so if in the complaint you wrote there the to file their?
name of the person but you believe that there S: Position papers

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documents then it shall be in the form of


P: Now I want you to read the provision of the documentary evidence. You follow?
rules of procedure on the position. What are the
contents? S: Yes


S: The labor arbiter shall direct the parties to P: Contact of Employment, that’s documentary
submit simultaneously their verified position evidence. If your evidence is video?
paper with supporting documents and affidavits
if any on the dates set by set by him in 10 S: I think it should be-
calendar days from the date of termination of
the mandatory conciliation. So no amendment P: Object evidence. Position paper should not
of the complaint or petition shall be allowed be verified or under oath?
after the filing of the position paper. The
position paper of the party shall cover only S: Verified under oath
those claims and causes of action stated in the
complaint or amended complaint. P: Should the position paper be accompanied
with the certification against forum shopping?
P: So what you alleged in the complaint is what
will be written in the position paper, you would S: No
not add more, you can only add more if are
able to  amend the complaint. You follow? P: Why?

S: Yes S: Because the certification is only applicable to


the initial-
P: Alright? So my question is what should
accompany your position paper? P: Correct. Initiatory pleading like a?

S: Your position paper should accompany all S: Complaint


the complaints,  and you also have to indicate-
P: Correct. Position paper is submitted after the
P: What should accompany the position paper? complaint so it’s not an initiatory pleading. So
It should be accompanied with your evidence, under the rules of court there is no need to
more evidence. Now if your evidence consists accompany it with the certification against FS in
of testimonial evidence, it shall be in the form case you put one, there is nothing wrong also,
of? it’s just that it is not required. Do you follow?

S: Affidavit S: Yes

P: Is affidavit an English word or not? P: If you over comply there’s nothing wrong
with that although you will look stupid, because
S: English you do not know the rules, but there is nothing
wrong with that, it will not result in the dismissal
P: Affidavit in English means? of your case. You follow?

S: Sworn statement S: Yes

P: Correct. And if your evidence consists of P: But if you’re short of the requirements then
documents, do you need to accompany? that is the problem. For example, you file a
position paper that is not under oath, unverified
S: Yes
 siya, mali yun, that’s is wrong, your positon
paper may not be considered.

P: Documentary evidence. So your position
paper should be accompanied with your P: Next is, how many days to file a position
evidence. If your evidence consists of paper?
testimonial evidence, it shall be in the form of
affidavit, and if your evidence consists of S: 10 calendar days

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P: And once a party is served a copy of the


position paper, does the he have opportunity to S: To the national labor relations commission.
answer it?
P : O k a y, t h e n a t i o n a l l a b o r r e l a t i o n s
S: Yes commission. How many NLRC do we have
under the labor code?
P: And how do we call that answer?
S: We have only one.
S: Reply 

P: Of course like Supreme Court only have
P: Correct, reply positional paper. Can there be one, just like the court of appealsonly have one.
a rejoinder to the reply? Not authorized by the But how many divisions are there in the NLRC?
rules. but if you want to file one you need to ask
permission of the labor arbiter. After that could S: There are 8 divisions.
there be a rebuttal?
P: How many members are there in each
S: No division?

P: After rebuttal could there be a sur rebuttal? S: 3 


You can file one but you have to ask permission
of the LA. So in other words, what are the P: And total membership of the NLRC?
authorized pleadings under the NLRC rules and
procedure? S: 24 members

S: Complaint P: And presided by who?

P: Correct. Next? S: The chairman of the NLRC

S: The position paper P: And where are these divisions situated?

P: Correct, and? S: Divisions 1 to 6, they’re in the national


capital region, Luzon. 7 is in the Visayas
S: Reply position paper. particularly in Cebu City. Then the 8th is in
Mindanao in Cagayan de Oro City.
P: Correct, these are the authorizedpleadings,
other than that they are no longer authorized P: So if you’re handling a case that originates
but there is no prohibition to file one but you from Mindanao, what NLRC division will you go
have to ask the permission of the labor arbiter to for purposes to appeal?
otherwise it may not be considered a call. Do
you follow? S: 8th division

S: Yes
 P: Yes, cases originating from the Visayas go


to?
P: So that’s the rule. So, eventually if all these
are in, then you expect the labor arbiter to S: 7th division
render a?
P: And a case of course from Luzon go to any
S: Judgement decision of the divisions in a 1 to 6 in the national capital
region. That’s the set up geographical location
P: Decision only. Render a decision. What is of these various divisions of the NLRC. Does
the remedy of the aggrieved from adverse the NLRC en banc consists of 8 divisions, 24
decision of the labor arbiter? commissioner including the chairman, does it
have the power to render a decision?
S: The aggrieved party will file an appeal.
P: No it does not. It can only exercise
P: Correct, so the remedy is the appeal, appeal administrative functions. It can only exercise
to where? rule making function. It cannot try and decide a

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case, it’s only the NLRC division that can try, JMM: Don’t you think a motion for
hear and decide a labor dispute. So, unlike the reconsideration is a prohibited pleading? Check
Supreme Court can decide en banc we don’t your NLRC Rules.
have that setup under the labor code, we only
have the NLRC division that can exercise quasi A: Included sir. Section 5. Prohibited Pleadings
judicial function. Because the NLRC en banc xxxx The following pleadings and motions shall
only has regulatory and administrative function not be allowed… motion for reconsideration of
including rule making power for the rules of any order from the LA.
procedure.
JMM: Why is it not allowed?

Labor – September 6, 2017 ( 1st Hour) A: Because the proceedings in the LA is


Topic: NLRC Rules of Procedure supposed to be abbreviated(??) for the benefit
of the laborer.
JMM: We continue with the Topic of NLRC
Rules of Procedure. JMM: Yes because if you wait for that motion to
be resolved that would delay the resolution of
What are the pleadings authorized under the the claim of the worker who has no more
NLRC Rules of Procedure? money in his pocket.

A: Pleadings authorized are complaint, position Consistent also with speedy labor justice for the
paper, reply position paper. laborer. So what’s the remedy?

JMM: Of course we know the permissible A: Appeal to NLRC under Article 229.
grounds to dismiss a complaint. So if you notice
the proceeding done before the Labor Arbiter is JMM: If you dont appeal?
more *** compared to the proceeding in a court
of law. Is a court of law the same as LA? A: It becomes final and executory.

A: No sir, the LA is a quasi-judicial body JMM: If you file a motion for reconsideration
which is not authorized by the rules what will
JMM: A mere administrative agency. happen?
How many days will the LA require the parties
to submit their position paper? A: It will be final since the motion for recon is a
prohibited pleading it would not stop the
A: 10 days running of the period.

JMM: Is the LA under the administrative JMM: Is the 10 day period working or calendar
supervision of the Secretary of DOLE? days?

A: No, sir. A: Calendar

JMM: Is the NLRC the same as DOLE? *interview portion ni Ortiz haha*

A: No because it is an attached agency for the JMM: Let’s proceed to the appeal to the NLRC.
purpose of program and policy-formation. Is a mere notice of appeal sufficient?

JMM: So if the LA renders a decision does the A: No. The requirements to perfect an appeal
law provide for a remedy? must be complied first sir

A: Yes, he can file a motion for reconsideration JMM: We are talking of notice of appeal. If the
with the LA who rendered the decision. notice of appeal is not adequate what is
required?
JMM: Why would you file that motion for recon?
A: Memorandum of appeal/appeal
A: So that the LA can correct himself memorandum

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JMM: An appeal memorandum is different from option which is to post a surety bond. Where
a notice of appeal because an appeal can we get this surety bond?
memorandum will embody there the facts of the
case, the issues involved, the argument of the A: From an authorized bonding company.
parties, the law applicable, the legal principles Authorized by the Commission.
applicable. Unlike a notice of appeal which is
just notifying the other party that you will appeal JMM: Why does it need to be accredited? To
and that is not sufficient. A mere notice of ensure that it is from a legitimate bonding
appeal can only be acceptable under our Rules company because if the worker prevails an
of Court but LA is not a court of law. If your appeal we will have to run after the bond.
appeal is dismissed the case becomes finaly Kawawa yung worker if fake ang bond. The
and executory. surety company will have to hold himself jointly
and severally liable with the employer.
There are so many elements to appealing a
decision of the LA. One is the filing of an Ang purpose ng bond is to ensure the
appeal through a memorandum of appeal. satisfaction of the monetary award in case the
Does the rules require the memorandum of case of the employer is dismissed.
appeal to be under oath?
Who will post the bond?
A: YES
A: The employer.
JMM: Does the rules require the memorandum
of appeal to include a certification against JMM: Another requirement to appeal is the
forum shopping? payment of the appeal fee, is that prescribed by
law?
A: No because it is not an initiatory pleading.
A: It is prescribed sir. It is in the NLRC Rules
JMM: Aside from filing an appeal through a
memorandum of appeal another requirement to JMM: So it is a procedural requirement not a
appeal is to file it within the reglementary period statutory requirement.
which is how many days? How much is it?

Of course the law also prescribes that if the A: 500 pesos and 20 pesos for the legal
judgment of the LA contains a monetary award research fee.
what is the requirement to perfect an appeal?
JMM: Who do you think will this go to?
A: Posting of a bond equivalent to the monetary
award excluding attorney’s fees and damages A: The government

JMM: What kind of bond? JMM: Maybe there is an appeal fee for
regulatory purposes because if there is no fee
A: Cash bond, surety bond then anybody can just appeal and will congest
the dockets further.
JMM: What is meant by a cash bond?
Which of the requirements of the appeal is
A: Bond in legal tender jurisdictional such that if it is missed out the
appeal is dismissed?
JMM: So the money in your pocket can qualify
as cash bond? A: Period to file an appeal

A: Yes. JMM: If it is filed out of the ten calendar years,


then what will happen to the appeal?
JMM: Ok so if you have that money in your
pocket equivalent to the monetary award you A: Dismissed.
need to deposit it to the NLRC Arbitration
Branch which rendered the decision. But if you JMM: Also the posting of bond since it is found
have no money then you are given another in the Labor Code under Article 229. So if you

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dont post a bond your appeal cannot be A: Public sector, employer’s organization and
perfected and if it is not perfected the NLRC the laborer’s organization
cannot take cognizance of the appeal.
JMM: So tripartite. Is it a collegial body?
Of course when you appeal a decision of the
LA it must be based on the grounds authorized A: Yes because di pwede isang commissioner
by law. There are four grounds? will decide alone. They will decide as a group.

A: The following
Asper JMM: can the NLRC en banc exercise quasi-
1.) prima facie evidence of grave abuse of judicial functions?
discretion
2.) decision was secured through fraud, A: It cannot, only through the NLRC divisions.
coercion, corruption
3.) based on purely questions of law JMM: What is the function of the NLRC en
4.) serious errors in findings of fact which if not banc?
reversed may cause grave or irreparable injury
or damage to the appellant A: They are to promulgate the rules like the
NLRC Rules
JMM: So NLRC will study your appeal
memorandum and determned from there JMM: Under the law who exercises
whether the LA committed an error or not. It administrative supervision over the NLRC
can grant or dismiss your appeal. including the LA?

I want you to tell me how many NLRC are there A: The Chairman
in the Labor Code?
JMM: Exclusive or not?
A: There is one

JMM: How many divisions under the NLRC?


Labor part 2 sept 6, 2017
A: There are eight.

JMM: And where are they situated? A: so i think that question (di maklaro). if the
NLRC renders a decision is there a remedy
A: The first six divisions are in Luzon, seventh available in case it is adverse to any of the
division is in Visayas (Cebu) and eight division parties?
is in Mindanao (Cagayan de Oro).

JMM: Where is the NLRC situated in Cebu S: yes, there is still a remedy which is a motion
City? of reconsideration.

A: Yes it is located in the DOLE office which is


in Gorordo Ave, Gen. Maxilom Street across A: It is not a prohibited motion?
Jollibee.

JMM: How many commissioners are there in S: no


each division of the NLRC?

A: There are three per division. A: it is not a prohibited motion. You can file for a
motion for reconsideration. Does it mean to be
JMM: In en banc how many in total? verified? Do you still need to get a certificate
against forum shopping? Example you go file
and attach a certificate against forum shopping.
A: 24 including the Chairman
Does it affect the motion?
JMM: In the appointment of the commissioners,
one should be from the? S: I believe not.

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A: of course not. Since it is just over A: what kind of remedy is that?


compliance. What is wrong is if you fall short of
compliance.
S: it is a special civil action.

(calls another student)


A: where can you find that?

A: how many days to file a motion for


reconsideration with the NLRC? S: rules of court

S: within 10 days from the receipt of the A: why do you use rules of court?
decision
S: because there is no more available
A: and on what ground is it allowed? administrative remedies so we go to the rules
of court which provides---

S: palpable or patent error, atty.


A: so where do we bring it to?

A: so if no motion for reconsideration is filed


with the NLRC, what happens to the decision? S: to the court of appeals

S: it will become final and executory after 10 A: not to the regional trial court?
calendar days from the receipt of the decision
or denial of the motion
S: no atty. because rtc is with the same level as
NLRC.
A: so assuming that the decision in the NLRC
became final and executory because there was
no motion for reconsideration filed or it was A: yung level ng RTC is the same as NLRC. In
denied, does the labor code provide for a terms of rank, status and compensation of the
further appeal? commissioners in the NLRC, they are the same
level of the justices. But in terms of hierarchy,
they are the same level as the rtc. Why not
S: no sir. directly na lang to the supreme court?

A: the labor code does not provide any further S: because it will violate the principal of
appeal. But do we still have a remedy? hierarchy of courts. 

S: yes atty. A: who said that there are principle hierarchy of


courts?

A: but not an appeal?


S: Supreme Court

S: not an appeal, atty.


A: and you can find that in the old case of St.
Martin funeral homes v NLRC. ponente is the
A: so what is it? late justice regalado. What is his remarkable
record that no one has surpassed in present
time?
S: a petition for certiorari

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S: the grade in the bar exam. A: so many stages to enable a practicing


lawyer to send their children to school.
A: yes, he is the record holder of the bar grade
and he is from San Beda (proud lang). If the decision in the NLRC becomes final and
executory can the judgment award be subject
to execution?
So you bring it to the court of appeals under
what rule?
S: yes atty. 
S: Rule 65 of the Rules of COurt.
A: and what motion do you file before the labor
arbiter to execute the judgment?
A: how many days?

S: file a motion for execution


S: 60 days

A: all the labor arbiter needs is the evidence


A: and of course on what ground? that the decision has become final and
executory and the best evidence is the
certificate of finality of judgement.
S: grave abuse of discretion

if the motion is granted, the labor arbiter will


A: grave abuse of discretion amounting to lack issue a?
or excess of jurisdiction. If that is not present,
your petition will not prosper. Ang decision ng
NLRC must be grave, capricious, and S: a writ of execution.
whimsical. Yan ang kailangan i prove.

A: who will carry out the writ execution?


Which is heavier in terms of evidence, prima
facie abuse or grave abuse?
S: the sheriff.

S: grave abuse
A: and under the Rules of Procedure how will
the sheriff carry out the writ of execution?
A: of course grave, mas mahirap i prove yan.
So from the CA where do we go?
S: first, you would run after the cash bond if
there is any. If none, go after the bank deposits.
S: to the supreme court via (di maklaro)

A: bank deposits of whom?


A: on what ground?

S: the bank deposits of the judgement debtor.


S: pure question of law

A: next
A: so how many stages from the labor arbiter?

S: then go to the surety bond, if any. if there is


S: labor arbiter to the NLRC, then NLRC to the none, you go after the personal property if there
CA, then CA to SC is none go after the real property.

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S: security agencies and private security


A: in that order of preference or pwede ramble- personnel
ramble?
A: does it include detective agencies?
S: in that order atty. 
S: yes, atty.
A: but if there is no money or property at all,
where will the sheriff go? A: that is the reason why the guidelines were
revised to emphasize that it is no longer limited
S: he will wait(dili maklaro) to security guards but also other private
security personnel.

A: so he will return to his office and make a


return of non-satisfaction. So wait until the what is the expertise of these security guards?
judgment debtor will have money one day.
S: checking the bags, ID
(calls another student)
A: no ID, no entry. So those are the
A: what law is applicable for contracting and implementing rules.
sub-contracting?
We go to the basics. Read Art. 106 of the labor
S: primarily the labor code code

A: what presidential decree is the labor code? S :  A r t i c l e 1 0 6 .  C o n t r a c t o r o r


subcontractor.  Whenever an employer enters
into a contract with another person for the
S: PD 442 performance of the former ’s work, the
employees of the contractor and of the latter’s
subcontractor, if any, shall be paid in
A: when did it take effect? accordance with the provisions of this Code.

S: Nov. 1, 1974. In the event that the contractor or subcontractor


fails to pay the wages of his employees in
accordance with this Code, the employer shall
A: when is my favorite labor day? be jointly and severally liable with his contractor
or subcontractor to such employees to the
extent of the work performed under the
S: may 1 contract, in the same manner and extent that
he is liable to employees directly employed by
him.
A: what is now the implementing rules and
regulations for contracting or sub contracting?
The Secretary of Labor and Employment may,
by appropriate regulations, restrict or prohibit
S: DO 174-17, DO 150-16, DO19-93 the contracting-out of labor to protect the rights
of workers established under this Code. In so
prohibiting or restricting, he may make
A: these are the various labor regulations. That
appropriate distinctions between labor-only
DO 150 is applicable to? contracting and job contracting as well as
differentiations within these types of contracting

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and determine who among the parties involved


shall be considered the employer for purposes S: the principal, contractor/ sub-contractor, and
of this Code, to prevent any violation or contractor's employees
circumvention of any provision of this Code.

A: what kind of relationship exists?


There is "labor-only" contracting where the
person supplying workers to an employer does
not have substantial capital or investment in the S: trilateral relationship.
form of tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such person are A: does a bilateral relationship also exist?
performing activities which are directly related
to the principal business of such employer. In
such cases, the person or intermediary shall be S: yes.  between the contractor and his
considered merely as an agent of the employer employees. 
who shall be responsible to the workers in the
same manner and extent as if the latter were
directly employed by him. A: based on that definition, does the employer
refer to the principal?

A: that is a very verbose provision, so let us try


to simplify it.  Based on that, does it define what S: employer is the principal. 
contracting or sub contracting is?
A: the employer farms out what?
S: yes, atty.
S: specific job or performance  Service
A: No, it only tells us that when an employer
enters to a contract with another person.
walang definition. So to understand this better, A: hindi lang job or service, kailangan specific.
we have to depend on the implementing rules. Because if only job or service it will include man
power which is not the essence of legitimate
contracting.
What is the purpose of these implementing
rules?
Who performs this specific job or service?

S: to implement the law


S: the contractor 

A: so take a look at DO 174. It contains a


definition. Read it. A: correct.

S: contracting or subcontracting refers to an A: so we go to the employer, is that a person?


arrangement whereby a principal agrees to
farm out to a contractor or subcontractor the
performance or completion of a specific job or S: yes, it could be a natural or juridical person.
work within a definite predetermined period,
regardless whether such job or work is to be A: how about the contractor?
performed and completed within or outside the
premises of the principal.
S: yes, atty. it could be a natural or juridical
person.
A: so based on that definition can you identify
the parties to a contracting or sub contracting?

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A: example of a juridical person. A: yung mga manufacturing companies they


want to focus on their core business kaysa sila
pa ang gumawa ng promotional merchandising
S: corporation, partnership, cooperative, labor na yan but pwede naman.
union.

If you look at the definition of contracting/


A: so any of this can apply for registration as a subcontracting there are so many things there.
contractor. Does the law require that the contractor be a
specialized contractor? Or is it enough that the
contractor is a supplier for labor?
How about the contractor's workers?

S: it has to be specialized. 
S: it is a person but natural person only. 

A: kaya nga specialized job or service. So San


A: juridical cannot perform labor. Carlos can hire a contractor for janitorial
services?
So what is being contracted out is the
performance of a specific job or work. Give an S: yes.
example of a job or work that is specific?

A: can San Carlos as a principal exercise


S: janitorial services, security services, control?
construction service

S: yes Atty. but limited only to the results.


A: these are the common areas of contracting.

A: correct. What happens if San Carlos


What else? What kind of service is done by a exercises control over everything?
person who delivers letters, packages?

S: the principal is deemed to be the direct


S: messengerial  employer.

A: is that a specific job? A: the principal in a legitimate contractorship


has control only to the results. do you think
your classroom has been maintained, cleaned?
S: yes.

S: not so much.
A: have you been to a grocery?

A: can Father Miranda come in and say "this is


S: yes.  the results?"

A: have you notice those who provide us free S: yes.


taste?

A: (nagreklamo about hugaw daw and wala


S: promotional merchandising services
nanlimpyo)

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It says for a determined or predetermined


period. What does it mean? Student (S): No, sir.

S: it means that it must be for a limited period A: It does not. We will not understand
contracting unless we look at the definition. So,
A: so that period should be fixed which means w h e r e c a n y o u fi n d t h e d e fi n i t i o n o f
it cannot be forever. There must be a beginning contracting?
and an ending. Say 1 year, 6 months
depending to the agreement of the parties. Class Rep: It is found in the Department Order
174.
Next is “regardless that performance is
performed within or outside the premises”. Give (calls another student)
an example of a service performed within the
premises?
S: It refers to an arrangement whereby a
principal agrees to farm out to a contractor the
S: security services. performance or completion of a specific job or
work within a definite or predetermined period,
A: how about a service performed outside? regardless of whether such job or work is to be
performed or completed within or outside the
premises of the principal.
S: Messengerial
(Atty asked how far have gone last meeting
A: between the principal and the contractor, because he doesn't want to repeat this
what kind of relationship it is? discussion. We were at giving examples of
giving services performed inside or outside.) 

S: principal- contractor relationship.


A: So, we are through the definition. Now, does
the LC define labor-only contracting?
A: what relationship exists between the
contractor and his workers?
S: Yes, sir.

S: employer-employee relationship, because


the contractor exercises power of control over A: Does the LC also define job-contracting?
the means and method of the work to be
accomplished and the results thereof. 
S: Yes, sir.

A: and also the other four-fold test. And finally


what is the relationship between the principal A: What are the two requisites/elements to
and the contractor's workers? constitute labor-only contracting under the LC?
When is there labor-only contracting? Article
106 provides for a situation where there exists
S: No relationship at all. labor-only contracting.

LABOR STANDARDS SEPTEMBER 11 S: Under the LC, there is labor-only contracting


where 
(1) the person supplying workers to an
Atty (A): Does the Labor Code (LC) define employer does not have substantial capital or
contracting or sub-contracting? investment in the form of tools, equipment,

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machineries, work premises, among others, S: Yes, sir. 


and 
(2) the workers recruited and placed by such A: Would you be able to determine whether the
person such person are performing activities job or work is performed efficiently?
which are directly related to the principal
business of such employer
S: Yes, sir.
A: I am curious whether the labor code requires
in a contracting or sub-contracting that the A: Would you be able to determine the principal
contractor must be specialized in providing the has been satisfied with the result of the job or
specific job or work. work?

S: Yes, sir. S: Yes, sir.

A: Why? Why it be a specialized contractor? A: Oh. You can. So, in our situation here in San
Carlos. As we discussed last meeting about this
janitorial service (cordel). If the contractor does
S: Because this specialized contractor has not have that specialization, each worker would
expertise on the work which the principal not know how to perform the job or work
searched. efficiently. So, in this classroom, where does
the dust and dirt hide?
A: Why is that expertise required?
S: In the board and below the table.
S: I think because it is what the principal needs.
It is the kind of the services that the principal A: That is where the dust and dirt hide. Now, if
needs in his business or enterprise. you are not an expert, would you know where
the dirt and the dust hide?
A: If you have expertise in the performance of a
job or a work, would you be able to determine S: No, sir.
the work method?

A: Just like a doctor, diba? If you're a


S: Yes, sir. cardiologist and the surgery that is required is
about operating on an appendicitis. Would you
A: Would you be able to determine the work be able to know whether you're able to cure?
process?
S: No, sir. 
S: Yes, sir. 
A: So, the law requires no less than
A: Would you be able to determine the pace of SPECIALIZATION nang contractor. So that
work? (reason) it could exercise effective control on
the means and manner by which the job or
work is performed including the results.
S: Yes, sir.  Because if it is not an expert, it would not know
what kind of job it will do. It would not know
how to perform that job or work. Kasi hindi
A: Would you be able to determine the number specialize eh. So, if I don't specialize in labor
of workers required? and employment subject, I would not know
what kind of topic I would be teaching you. I

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would not know how would you learn in my promotion, they can validly do that but it can
subject. You know what I mean? destruct itself from its core business from
manufacturing and sale. So, as an exercise of a
management prerogative, Procter & Gamble
Class: Yes, sir. decided to hire the services of a contractor to
promote its products. 
A: So, I could not qualify as an independent
contractor. Diba? I cannot carry my profession So, promotion of the products of a
effectively because I lack expertise.  manufacturing company, does that involve a
work that is directly related to the business of
the manufacturer? I repeat. If it hires a promo
So, when the law speaks of contracting or sub- merchandising company whose activity is to
contracting, the law demands that the promote yung merchandise, does that involve
contractor must be a specialized contractor.  an activity that is directly related to the
business of Procter & Gamble?
If it is just a general contractor that supplies
labor, we have a problem. Is that allowed by (Ni achoo si Shanya and Atty made a comment
law? Supply of human bodies or pure labor how he is getting colds because of the dust and
without expertise? dirt HAHA)

S: No, sir. S: Yes, sir.

A: No, hindi yan pwede. That's why we have to A: Why?


distinguish between job-contracting and labor-
only contracting.
S: Because the main purpose of the said
promotion is in relation to the business of
Ok, so the first situation on the labor-only manufacture and sale of consumer products. 
contracting is found in the LC itself. And to
constitute labor-only contracting, the LC
provides for two elements.  A: So, when you sell you need to promote your
products. Diba? It's an ingredient. How will you
the public patronize your product and buy it if
Does the LC requires those two elements to you don't even bother to promote it? Diba?
concur or one is enough to constitute labor-only Don't expect that by keeping your products in a
contracting? warehouse it will be sold. You have to promote
that. You can hire firms that specializes in
promoting. There are good at that, eh. Because
S: They have to concur because of the they've studied their business. They know how
conjunction "and" in the provision.  to get consumers to patronize the product. That
is their field of specialization. Is it directly
A: Yes, the LC uses the conjunction "and" and related to the business?
not "or". So, to constitute labor-only contracting,
those two elements must concur. Absence of S: Yes, sir.
one may not constitute labor-only contracting. 

A: Yes, sale. Promoting products is directly


If you have been diligently in my subject and related to the business of selling. Diba class?
read the case of Procter & Gamble. It is a
manufacturer of a consumer products/goods. It
hired the services of a contractor to promote its Class: Yes, sir.
products kasi manufacturer and sale of
consumer products sila. But if it will do the

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A: Pero, in the Procter & Gamble case, the SC


declared the contractor illegitimate because it A: As regards to what?
turned out has a substantial capital of
investment. You see. It was directly related but
it has substantial capital of investment. So, only S: Means, manner, and method. And the
one element was present which is directly results.
related. Diba? But the other one is substantial
capital. So, sabi nang SC, it is an illegitimate
contracting.  A: The results, diba? The result is also
controlled for example by the school. If they
see if the performance of the teacher is not
Does that show that those two requisites must good. Result yan eh - whether good or bad
be present? performance. They exercise their prerogative to
not give you a load or to not renew your
contract. That's all the result. They may or may
S: Yes, sir.  no longer renew your contract with them. That
is control over the result. 
A: That is one situation where there exists
labor-only contracting. Now, what's the other So, if you are truly an employer, you exercise
situation? control not only in the means and manner but
also the results. 
(Atty warned do not use DO 18-A because its
an old order. There may be a significant Eh, yung situation you mentioned, speaks of
difference w/ the new one but still get hold of the contractor not exercising control. So, who
the new order because if he'll spot it it's a must be exercising control in that situation?
blunder in his class.)

S: It is the principal who exercises the control. 


S: The other situation is where there exists
labor-only contracting is when the contractor or
sub-contractor does not exercise the right to A: Natural ang principal na. Is that labor-only
control over the performance of the work of the contracting if it is the principal who is exercising
employee. control on the means and manner including the
results?
A: Yan ang second instance. If you read the
provision, that's a long provision diba? The first S: Yes, sir.
part speaks of reiteration of the LC. And
separated by the conjunction "or". That means
that what you have read is one other situation A: What will make the principal out of that if it
that labor-only contracting exists.  exercises control over the means and manner
including the results?
"Does not exercise control". Control over what?
S: The principal is deemed as the employer.
S: Over the means and manner of the
performance of the specific job or work or A: Yes. What's your legal basis in concluding
service.  that it is the principal exercising control over the
means and manner including the results is
deemed to be the employer?
A: Only that? If you are the direct employer, do
you exercise control? S: Because of the four-fold test, sir.

A: Yes! Four-fold test, diba? In determining


S: Yes, sir. existence of employer-employee, we use the

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four-fold test. And which element of the four is S: If it is consistent with the business of the
the most controlling? principal, sir. For example sir is San Carlos-

S: The power of control. A: No. Answer me. Not through illustration. How
do you know whether the work performed by
A: Yeah. Power of control ang most controlling. the workers is directly related to the business of
So, even if the contractor pays the wages, the principal? What document can you find
exercises discipline, selects and engages these where the principal business is?
workers but the element of control is exercised
not by the contractor but by the principal, then S: In business permit, sir.
under the law it is considered labor-only
contracting. Because the principal is the one A: If it is a corporation? What document is the
exercising control and using the four-fold test best evidence the principal business could
he is deemed to be the employer. have?

Oh so pag siya ang employer, what is the role S: ---


of the contractor?
A: The Articles of Corporation.
S: He is deemed as the agent.
Because if you organize a corporation and you
A: Oo. Ahente lang siya. Taga supply lang siya want to register it, you have to go to the
nang mga trabahante. That is his only role. Is Security Exchange Commission and one of the
that legal or illegal if you just supply workers document that you have to submit for
alone? registration is the company's Articles of
Incorporation. In that Articles of Incorporation,
S: It's illegal, sir.  that is where it is spelled out yung principal
activity or business nang company. That's
A: It's illegal. You cannot just simply supply where it is written. You just have to relate on
workers. You must exercise control over these the work being performed. 
workers. Hindi pwede na you just supply
workers. Because if you just supply workers, So, kung ang kanyang business ay
these workers would not know what kind of job manufacture and sale of consumer products
they will do and how they will do it and so on and the work being performed by these workers
and so forth.  are related directly to the manufacture and sale
then it's deemed directly related. That is how to
So, to sum it up? When is there labor-only determine yung kanyang principal business.
contracting?
So, San Carlos is engaged in what business?
S: Under the LC, there are two situations where
is labor-only contracting.  S: Providing education, sir.
(1) the person supplying workers to an
employer does not have substantial capital or A: Janitorial services here. Is that directly
investment in the form of tools, equipment, related to the business?
machineries, work premises, among others,
and  S: No, sir.
(2) the workers recruited and placed by such
person such person are performing activities A: No, it's not. San Carlos will not stop teaching
which are directly related to the principal without janitors. 
business of such employer

 So the word "directly related" is indispensable
which means it is necessary. Such that without
A: By the way, how do we know that the work that activity performed, the principal's business
performed is directly related to the business of will grind to a halt. 
the principal? How do we know kung directly
related yan? (calls another student)

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A: What is again the other situation where there


exists labor-only contracting? I want you to tell S: Yes, sir.
me that stand alone element which constitutes
labor-only contracting. A: So, would the liability of the principal in that
situation be considered comprehensive or may
S: Aside from the first situation, a contractor or be limited?
sub-contractor must not exercise the right to
Loc
control over the performance of the worker or S: I think it's comprehensive.
employee.
A: When you say comprehensive, what do you
A: Can that situation stand alone and constitute mean by that?
by itself labor-only contracting?
S: Not only includes wages but also to other
S: Yes, sir labor standard benefits that is mentioned in the
LC.
A: So, you're telling me that if the contractor
has substantial capital or investment but does A: For example when the principal hires a
not exercises control, there is labor-only labor-only contractor and the contractor illegally
contracting? dismissed his workers and was ordered to pay
back wages and separation pay, would that be
S: Yes, sir. the liability of the principal or just limited only to
failure to pay wages?
A: Correct. Are you telling me that a contractor
has a substantial capital and the work is directly S: No, sir. It would also include that. Even if it
related to the business but it does not exercise appear part of the CBA.
control, there is labor-only contracting?
A: Why is the liability comprehensive?
S: Yes, sir.
S: As the law states sir, it is considered that
A: Why? The answer is yes. Because that they are like the employers then also the
element is present - yung does not exercise following the intent of the law it is considered
control - that will make the whole arrangement like the principal. So, it includes all the benefits
labor-only contracting.  of an ordinary--

Now, what's the effect when there is labor-only A: So, their liability of the principal is for any
contracting? and all violations of the labor code?

S: The, the law protects the laborers by making S: Yes, sir.


the principal the direct employer of those
employees under the host (?) contractor.  A: Because in labor-only contracting the
principal is considered the employer while the
A: Why? workers are his employees. So, if they are
considered your employees then you incur all
S: Because in regards to those employee, they the liability of an employer and that includes not
have already performed work that has only labor standard violations but also labor
benefited the principal so in regards to their relations violations. Is that correct?
compensation, they should not be delayed just
because the employer would try to relieve its S: Yes, sir.
responsibility under the guise that it is the
supposed contractor A: So, there would only be how many parties if
To be the there is labor-only contracting?
A: So, when there is labor-only contracting, the
principal is the considered the employer?  S: Only two sir. The employer and his
employees.
S: Yes, sir.
A: What do you mean?
A: As if it directly hired these workers?

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S: I mean the principal is considered as contracting or sub-contracting. That is his


employer and those employees are those hired answer. Did I get it right?
by the supposed contractor but is only
considered an agent in this arrangement.  S: Yes, sir. It's Article 109, sir.

A: I see. So, PhilHealth Insurance Company A: Are you telling me that when the LC speaks
can qualify as a principal and hire the services of an employer it includes the government? 
of a janitorial agency and security agency?
S: Yes, sir.
S: Yes, sir. 
A: Where is your basis? Ikaw ba nag eenjoy ka
A: Very good. So, if the contractor that your ba ng benefits under the labor code?
office hired is a labor-only contractor, can
PhilHealth Insurance which is a government S: No, sir.
corporation be held liable under our LC or
under our Civil Service Law? A: But that's not my question. Our topic is
contracting I'm just curious with your answer
S: Under the Labor Code. that if there is a labor-only contracting-- (he
stopped here). If PhilHealth hired a labor-only
A: Ha? Why? You mean to say the LC will contractor, a janitor for example was illegally
define the liability of PhilHealth Insurance dismissed, can he hold the PhilHealth liable sa
Corporation? When it enters into contracting or labor code? 
sub-contracting. That means what we are
discussing here will cover PhilHealth Insurance In other words pupunta siya sa labor. Sa labor
Corporation? arbiter. And the labor arbiter will adjudge
PhilHealth liable kahit na gobyerno kayo.
S: Because it is a legal (di ma klaro po). Even
though there is no proximate actual relation S: Yes, sir. It falls under the termination
between the employer-employee still it is a principle. There is a labor dispute.
labor dispute and it is defined under the labor
code - Article 212. A: So, if you are dismissed illegally in your
position, you will go to the labor arbiter? Will
A: Is that the applicable provision that will bring you file your complaint with the labor arbiter?
you within the ambit of the LC which applies to
the private sector? S: Yes, sir.

S: Article 107.  A: I thought you are a civil service employee.


Are you or not?
A: Yeah but PhilHealth Corporation has its own
workers, right? S: Yes, sir.

S: Yes, sir. A: Oh. So kung ma i-illegally dismissed ka


punta ka sa labor arbiter? Baka ma dismiss-san
A: Oh employer ka. ka nang case.

S: Yes, sir. S: Even though there is a proximate


relationship between the employer-employee,
A: So, which provision is a applicable which will there is a labor dispute. 
put PhilHealth Insurance Corporation within the
coverage of the Labor Code? A: The Civil Service has the jurisdiction over
the issues concerning civil service employees.
Ang punto here is that kung may janitor working Anyway, that is not my question. My question
jan sa PhilHealth Insurance Corporation is--- (sir stopped cos 3 minutes nalang)
through a contracting or sub-contracting and
illegally dismissed yung janitor. He can hold
PhilHealth Insurance Corporation liable for any
and all liable of the violations of the LC under Labor September 13 2017

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Anyway, no person shall be imprisoned for


Q. What's the basis of your answer that the nonpayment of debt. Sabi ng constitution.
government employees are covered under
the provisions on contracting or sub- My question is this, who will you sue in your
contracting? complaint? Your answer that you will sue
the contractor, that is also correct. But I'm
Student (S):  Because Sir first in relation to just telling you the possible scenario that
Article 107, it says that even though--any you will have an empty judgment. I'm also
person is considered an indirect employer. An telling you what is the significance therefore
employer is defined in Art 97 that includes the of the law that holds the principal and the
government corporation. contractor jointly and severally liable in
case the contractor fails to pay the wages of
Including its subdivisions, his workers?
instrumentalities? S:  The significance is that it protects the
S: Yes. laborer.

Does PhilHealth belong in that? The significance of that is that you can also
S: Yes hold the principal liable. So my question
again, is who will you sue in your complaint,
If I am a janitor and the contractor assigned k n o w i n g t h e l a w, k n o w i n g t h a t t h e
me to the City Hall and I have unpaid wages, contractor has no money?
which has jurisdiction over my claim? What S: Sue them both.
is my cause of action? Where will I lodge
my complaint? What agency has Is that allowed? What is your basis in suing
jurisdiction? them both?
S: It depends on the amount S:  I will retract my answer. I will sue the
contractor, Sir. There's the an employer-
Say more than 5000. employee relationship with him.
S: It's the Labor Arbiter
Meaning to say you cannot sue the principal
Who will I sue in my complaint? Because because there's absence of employer-
the contractor will not pay me my wages employee relationship? But is it not that the
amounting to more than 5000 pesos. Who law says the principal is jointly and
will I sue? severally liable? In the event that the
S: It will be the contractor because you are--um contractor fails to pay the wages of his
the employer-employer relationship is between workers--so what is the significance of that
you and the contractor provision therefore if your option is just
limited to suing your goddamn employer
So I will sue my contractor. That's correct. whom you know has no money to pay you?
S: It assures the laborer--
So what is the significance of the law for the
principal and the contractor is jointly and But you do not implead na man the principal
severally liable? But I know na, the contractor how do you expect him to be bound by a
did not pay me my wages. So while I have the judgment? A judgment can also bind the
right to sue him, I might end up with my suit parties thereto. So who will sue in the
winning but with an empty judgment. The   complaint? Contractor alone? Or both of
contractor walang kwarta. "So sue me" Of them? Or just the principal?
course you will win, no question. What will you S: Both, Atty
do? 
S: I will implead the principal. Atty’s Discussion: Since the law holds them
jointly and severally liable the option
By the time mayroon nang decision, hindi available to sue to you is to ANY of them or
proper to implead the principal. Di ba may BOTH of them. But the most ideal there is to
decision ka na. The option that you chose was sue both of them so that at the end of the
to sue the contractor only. So I'm telling you, day, judgment may be rendered holding
that's the possible outcome of your case. them both jointly and severally liable. If you
have the judgment and you may enforce it

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against any of them whether there's money whether in the capacity of an agent of the
to satisfy the judgment. In most cases, as employer or as an ostensible independent
between the principal and the contractor, contractor.
who has the money?
S: It's the principal Why is that prohibited?
S:  Because it circumvents the right of the
Atty’s Discussion: Yes it's the principal. And laborers to organize--
when you run after the properties of the
principal, does the principal have the right What's wrong with hiring a cabo?
of reimbursement from the contractor of S: It circumvents labor standards; because the
what he has paid? workers are not paid, there's no monetary
S: Yes  consideration---

Yes, if it were a legitimate job contractor. So No-read what is meant by cabo.


the answer is that you have to sue them S: (read siya again sa definition above)
both. Do not come up with the excuse that I
cannot sue the principal because of What's wrong with hiring a worker engaged
absence of employer-employee in cabo?
relationship.  S: They're not a labor organization

Because we already explained last meeting Based on the definition--


that there exist a labor dispute, and a labor S: They supply workers
dispute contemplates not only direct
employment but likewise indirect Yeah, they are supplying workers. They are
employment. involved in just simply supplying workers.
Oh, what is a legitimate contracting ba?
It's just like in torts and damages and you're How did we define contracting?
involved in an accident, you don't know S:  We defined legitimate contracting as
who's at fault, so just sue everybody. substantial investment-- (gi cut ni sir)

Ito, there's no need of fault. Because the law Ito, a private cabo, it's declared an illicit
holds them both jointly and severally liable. form of employment arrangement. That
means there must be something wrong in
--- the cabo. And you said a cabo merely
supplies workers, so I ask you, what's
(another student) wrong with supplying workers? Is that
within the meaning of contracting? You said
Q. Aside from labor only contracting which no, so I ask you what is meant by
is prohibited, under DO 174, because it is contracting? You can read it.
also declared prohibited under the Labor
Code, the DOLE also enumerates certain Is supplying of workers allowed?
illicit forms of employment arrangement-- S: Only if labor (inaudible)
S: If I remember it was in Section 6 of DO 174
You read the definition of contracting.
Explain to us each one of them. Let's start S:
with the first enumeration.
Contracting or sub-contracting  refers to an
S: arrangement whereby the principal agrees to
farm out to a contractor the performance or
a) When the principal farms out work to a completion of a specific job or work   within a
"Cabo" definite or predetermined period, regardless of
a whether such job or work is to be performed
The term "Cabo" refers to a person or group of or completed within or outside the premises of
persons or to labor group which under the the principal.
guise of labor organization, cooperative, or any
entity supplies workers to an employer, with or
without any monetary or other consideration,

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So can you now figure out the difference How can the principal control the
with that definition and the definition of a contractor?
cabo? S:  They had direct or indirect control or they
S: The cabo is not for a specific job or work own the in-house agency or have shares of
stock with the said agency.
Atty’s Discussion: Yes. In contracting or
sub-contracting what is allowed is the Correct. Would it be enough that the
farming out of a specific job or work BUT in shareholdings have only one shares of
the Cabo System, it's just a mere supply of stock?
workers. That is not valid contracting. It's so S: The DO provides any share of stock
easy to supply workers but these workers
know nothing at all. So in a legitimate So even though you cannot control or
contracting, the workers that we provide to manage the contractor? How can you
perform specific job or service are trained manage or control the contractor if you only
people, they are trained by the contractor, hold one share of stock out of the 1000
because the contractor is supposed to shares of stock? What should be the correct
specialized in providing for that job or interpretation?
service. And what the principal pays is your S:  It must be that the shares of stock are
expertise, the specialization that you controlled-- (gi cut na pod)
provide in performing or completing that job
or work--that is what is being paid for, hindi Atty’s Discussion: The shares of stock must
yung tao.  be significant that would allow the principal
to control the contractor. That should be the
In legitimate contracting, what you pay for right interpretation. In my opinion, merely
is not the number of people supplied. What only 1 share of stock in a corporation,
you pay for is the performance of a doesn't make it an in-house agency. It must
specialized job or service. be such share of stock or representation
that is significant enough to allow the
So itong USC if there are only 2 janitors who principal to manage and operate the
will clean the entire 4th floor, if these 2 contractor.
people are really trained to locate the dust
and the dirt, which is usually found where?  (Next)
S:  Everywhere, but especially on the floor and
under the tables. S: 

(Next enumeration) c) Contracting out of job or work through an in-


--- house cooperative which merely supplies
b) Contracting out of job or work through an in- workers to the principal (same ra sa
house agency aforementioned)

d) Contracting out of a job or work by reason of


What's wrong an in-house agency? You can a strike or lockout whether actual or imminent
read.
S:  e) Contracting out of a job being performed by
union members and such will interfere with,
An  in-house agency  refers to a contractor restrain, or coerce employees in the exercise of
which is owned, managed, or controlled directly their rights to self-organization as provided in
or indirectly by the principal or one where the Art  259 of the Labor Code, as amended
principal owns/represents any share of stock,
and which operates solely or mainly for the What's wrong with that ? Remember,
principal contracting is generally an exercise of
management prerogative as long as it is
What's wrong with an in-house agency? done in good faith. So what's wrong with
S: The principal controls the workers, so it's not that--contracting out of a job or work by
a valid contracting. reason of a strike or lockout?
S:  It violates the security of tenure-- (gi cut na
pod, gipa analyze)

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Atty’s Discussion: Yes it may displace us, or


That provision contemplates the worse, it may declare excess, and therefore
establishment that there is an organized may be subject to termination of our
union and where the members of the union employment. The DOLE does not want that.
stage a strike and what the employer did If you're hired as regular workers, you're
was to what? expected to continue with your job until you
S:  Will interfere with their exercise to self- die or until you retire. Do not have
organization contractors to perform work that is being
performed by the regular workers because
What is wrong with it is that doing so will there is a possibility especially that would
interfere with the right of the workers to displace or dislocate these regular workers.
self-organization including their right to Kasi between a contractual worker and the
strike. That is correct. Although still general, regular employee, who do you think is
but correct. preferred by law to stay in the
establishment?
Atty’s Discussion: If here in College of Law, S: The regular employee
among rank-and-file workers to which I
belong, including Walde, Torregosa, and Of course. The contractor worker has a less
Galeon. The three stooges. (HAHAHAH) And preferred status compared to a regular
we formed a union and we decided to stage worker. Kawawa naman yung regular
a strike. What the San Carlos did was to employees who are given the right to
contract out of our job as faculty member security of tenure. That's the evil sought to
by hiring a contractor who will provide San be avoided.
Carlos with faculty members to replace us.
Definitely that will defeat, that will frustrate (Next)
the effectiveness of our right to strike. USC
will not feel any harm even if you stage a S:
strike because they will just simply replace
us with another set of faculty members g) Requiring the contractor/subcontractor's
supplied by the contractor. So useless ang employees to sign as a precondition to
aming constitutional right to strike. Di ba employment or continued employment, an
the purpose of the right to strike is to antedated resignation letter, a blank payroll, a
paralyze the operation of the employer, and waiver of labor standards including minimum
how can we paralyze the operation of the wages and social or welfare benefits,or a
employer if USC would just simply replace quitclaim releasing the principal or contractor
us with another set of teachers who would from liability as to payment of future claims, or
perform the same job as what we do. require the employee to become member of a
cooperative
So that's the evil sought to be avoided.
That's self explanatory but what's wrong
(Next) with that? What's wrong with letting an
employee sign an antedated resignation
S:  letter before he even started working?
S: It's coercive and unjust
f) Requiring the contractor/sub-contractor's
employees to perform functions which are Atty’s Discussion: It violates the employee's
currently being performed by the regular right to security of tenure. It also violates
employees of the principal the right to labor standards.

What's wrong with that?  When you're being asked to sign waiver for
S: future claims, that's illegal, it violates your
right to labor standards.
What would happen to the regular workers if
you'll   get contractual workers exactly the (Next)
same job that they do?
S: (inaudible) S:

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h) Repeated hiring by the contractor/


subcontractor of employees under an That is similar to a project employment
employment of short duration where there is beginning and ending. That
is similar to a seasonal employment where
That contemplates of what situation? there is beginning and an ending. Unlike a
Illustrate it. regular employment that has a beginning
S: The regularization of a worker is 6 months-- and no ending--that is until death do you
(gi cut na pod) part.

What is wrong with refeatedly hiring a So it is a form of permissible


contractual worker for a period of short contractualization, so what the law abhors
duration? is having him signed a contract that is even
S:  It prevents them from becoming regular shorter than the service agreement.
employees.
(Next)
Atty’s Discussion: Correct. It prevents them
from acquiring regular and permanent S:
status because every now and then, you
hire-fire-re-hire-fire-re-hire---how can you j) Such other practices, schemes or
become regular? employment arrangements designed to
It violates the right to security of tenure. circumvent the right of workers to security of
tenure
(Next)
Those are the illicit forms of employment
S: arrangement.

i) Requiring employees under a contracting/ Does the Secretary of Labor have the power
subcontracting arrangement to sign a contract to provide rules and regulations although
fixing   the period of employment to a term they are not found in the labor code?
shorter than the term of the Service Agreement, S: Yes
unless the contract is divisible into phases for
which substantially different skills are required What's your basis?
and this is made known to the employee at the S:
time of engagement
Does not the Secretary of Labor exceed his
What is normally allowed in hiring a power to promulgate rules by declaring as
contractual employee if that is not allowed? illegal those forms of employment
S:  That they work through the service arrangement?
agreement S: No

Atty’s Discussion: What is allowed is to hire What's your basis in saying that the
a contractual worker for a period of Secretary of Labor can validly do that when
employment that is coterminous with the in fact it's not found in the labor code?
service agreement.  S:  The labor code gives the secretary of labor
the power to set rules
Is that contractual agreement?
S: Yes Under the Labor Code Article 106, read it,
3rd paragraph.
What is not allowed is if you require him to
sign a contract that is? The Secretary of Labor and Employment may,
S: That is shorter than the service agreement. by appropriate regulations, restrict or prohibit
the contracting-out of labor to protect the rights
Because if you're hired under a period of of workers established under this Code.
employment that is coterminous, what kind
of employment is that? Regular or non- What does the Sec of Labor do when it
regular? prohibited certain forms of employment
S: Non-regular

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arrangement when in fact those are not A: and what is the effect of the absence of
found in the labor code? registration?
S: 
S: there is a prima facie presumption that they
Atty’s Discussion: He restricted labor- are labor-only contracting
contracting, and he can do that because the
law says he may by appropriate regulations. A: yan. Which has jurisdiction to cancel the
So he has the power to restrict it, he has the registration? in your mcq, you have to choose
power to regulate it. That's exactly what he the right answer. Who has the power and
did when he declared certain forms of authority to cancel the registration of these
employment arrangement as illegal. So that contractors under the rules?
means there is basis for that regulation,
kasi may power siya--by appropriate S: the jurisdiction lies within the regional office
regulation. of the DOLE.

Finally, if there is violation of any of those or A: how many days is the certificate of
all of those, what are the effects? registration valid when issued?
S:  The principal will be solidarily liable; the
contractor will be considered as an agent of the S: 2 years
principal.
A: how much is the fee for the registration
A: ?? under DO 174?

S: my apologies sir, what I meant to say is that S: 100k pesos


the principal would be the direct employer
A: is that certificate of registration renewable?
A: yes. Yan yung sinabi ko, the principal shall
be deemed as the direct employer. That is the S: yes
effects. No. 2 effect? If the contractor violates,
what is the effect on its certificate of A: how much is the fee for that registration?
registration? is that a ground for cancellation?
S: 100k pesos
S: yes sir.
A: why is it too high ang amount of registration
A: check it out. Let us try to see whether what fee? It was only 25k before. 25k-100k all of a
you are telling us is correct or not. So class, the sudden. What could be the purpose of DOLE?
principal is deemed to be the direct employer To make money out of it?
and if you are the employer it is as if you hire
these people as employees and you are liable S: no sir. that is to discourage labor-only
now. contracting

S: yes sir, it is a ground for cancellation. Sec. A: could be. Now DO 174 applies when there
23, grounds for cancellation of registration: in exists a trilateral relationship.
paragraph. e, final findings that the contractor
has engaged in labor-only contracting or in S; yes sir
other illicit forms of arrangements as provided.
A: now the DOLE came out with the
A: oh yan so if you are found guilty of clarificatory order. What is excluded from DO
committing any of these provisions, another 174? What types of services are excluded in
effect is that is also a ground for the revocation this DO?
of your registration. If your registration with the
DOLE is cancelled, can the contractor still S: security of services. The workers mentioned
legally engage in the type of business? in DO 156

S: yes atty. A: have you come across the clarificatory


order?

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S: I cannot remember sir


A: correct. If it is a cooperative?
A: Does DO 174 apply to IT-enabled services?
S: the same with corporation sir.
S: no sir
A: you said that DO 174 applies to security
A: what is the reason why IT-enabled services contractors when it comes to registration but
are excluded by the DOLE in the coverage of with regard to the terms and conditions of the
contracting? Like BPO’s, KPO’s, medical employment of the workers, we have to apply
transcription. DO 150.-16. What about construction
companies?
S: it is covered by another DO, DO 141-11 (??)
S: construction companies also has different
A: it is excluded because according to the DO, DO 19-93(?)
DOLE, IT-enabled services does not involve a
trilateral relationship but one involving vendor- A: oh but that department regulation applies in
vendee relationship. the construction industry. So for purposes of
registration, does the law there require itong
(call another student) mga register companies itong mga (***)
contractor?
A: does DO 174 apply to security service
contractors? S: the registration for construction contractors
are with the Philippine Construction
S: no sir because security service contractors Accreditation Board.
are covered by another DO, DO 150-07 (?).
A: oh so it’s not the DOLE. But does that mean
A: correct. Are you telling me that absolutely, that yung mga construction workers are not
DO 174 has nothing to do at all with security covered by visitorial and enforcement power of
service contractors? the SOLE?

S: it can still be harmonized since they are both S: they are still covered sir since definitely,
implementing rules for labor contracting construction (grabeng hinaya sa tingog dmd)
and the SOLE is not divested of its power
A: so which part in DO 174 is applicable to
Security Service Contractors? A: of course because construction workers are
still employees, workers. The Labor Code still
S: the registration sir applies to them in so far as their entitlement to
overtime, rest day, etc. so are you telling me
A: correct. So while it is true that the security that the SOLE can conduct a labor law
service contractors has different regulation, DO compliance visit on these construction
174 still applies to them with regard to companies?
registration. So if you are the owner of the
security service contractor, you still need to S: yes sir.
register under DO 174 and one of the
requirements for the registration under DO 174 A: oh. So other that IT-enabled services which
is on the matter of capitalization. Oh so how is excluded from the coverage of DO 174
much is the prescribed capitalization that the because it is not contracting, are there any
service contractor must have? So that it can be other type of service that are excluded from DO
registered with DOLE? Contractor as 174?
corporation?
S: --
S: 5M worth of stocks
A: for example, I am USC. If I hire an individual
A: correct. If the contractor is a single professional who is a CPA and his job is to
proprietor, what is the prescribed capitalization? prepare for me for financial statement which I
have to submit to the BIR at the end of the
S: 5M net worth

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year. Is our arrangement covered by DO 174? (calls another student)


Why?
A: on the service agreement, thus the law, thus
S: no sir. because DO 174 applies to trilateral the DO provide for the term or duration of the
relationships and in this case sir, there is no the service agreement
trilateral relationship because there is no
contractor S: no sir, the law does not provide

A: there is a contractor but there is no A: so how long shall it be?


contractor employee. Okay? because they can
also be individual contractors. So do not apply S: as long as it is within a reasonable time in
DO 174. connection with the specific projectof the
principal and the contractor
Let us go to the Security Service Contractors,
DO 150. Is this only for security guards? A: how would you know that it is a reasonable
time?
S: no sir. it also includes private security
personnels S: if the contractors employee sir would be able
to perform the farmed out job within the period
A: is it not the same with security guards?
A: that is correct. So that means that while the
S: no. the difference is that the private security law and the rules will now provide for the rules
personnels are more trained than the security and regulation of the service of agreement, it
guards. must be for such term as may be needed to
complete or perform the specific job or service.
A; so their job is not limited only to “NO ID NO Because the rules require that it must be for a
ENTRY” or “NO CAR STICKER, NO ENTRY” determined or pre-determined period although
it does not tell us how long is it.
S: they also protect a certain person for
example sir, they are ahm the private security Next question is if the service agreement is for
personnel sir is … 1 year, USC hires a janitorial agency for a
period of 1 year, can the contractor hire their
A: a security guard is somehow confined to a janitors for also 1 yr coterminous with the
certain place. But a security personnel can be service agreement?
anywhere. Those persons in higher positions
hire a private security personnel. So you can S: yes sir
hire a contractor for a limited period for a period
where maybe you are campaigning. A: is that not contractualization? When you say
contractualization, is that not fixing a contract?
In terms of administrative fees, under DO 174,
how much can be assessed in a form of admin S: yes sir
fee compared to Security Service Contractor?
A: it is. It is not illegal?
S: admin fee under DO 174 is 10% of the total
contracting cost while under DO 150, admin fee S: no sir
is 20% of the total contracting cost.
A: what then is illegal?
A: why is it higher?
S: illegal sir if they do not define the period of or
S: because security agencies have more shorter than what is agreed in the service
trainings and investment is higher than non- agreement
security service.
A: that is one correct. Another
A: yes. In security services, training is
indispensable. Unlike janitors, not so much S: if there is a repeated process of hiring
training.

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A: correct. So there is nothing wrong under


your DO to hire the workers for a period of S: just causes sir
employment that is coterminous because what
is illegal is what she said. She is correct A: what was the heading?

I though kasi all the while that the present S: closure of the establishment and…
administration would come up with an order
that would really stop this contracting relation A: oh that speaks of authorize causes.
unfortunately not. Do not blame them. Why? Enumerate the authorize causes
because the labor code allows an end of
contract like seasonal or project employment S: First, installation of labor saving device.
contract. There is nothing wrong with project
and seasonal. Alangan naman continue with A: example is when you use computers already
youir job kahit tapos na ang project or wala or machines so no need a lot of workers
nang prutas and pay them, that is unfair with anymore. So you can terminate employment by
the employer. reason of this. Next

The same is true with contracting. The S: Next sir is redundancy.


contractor is heavily dependent to the client for
without a client, there is no business and no A: oh you have workers more than what you
work to provide these workers. So you cannot need. You over hired workers. In fact, you don’t
really blame them if they hire workers on a term need them all. Those workers that you do not
or duration that is coterminous with the service need, you may consider them as excess and if
agreement because they are not assured they are excess, you may terminate their
naman that the duration of the service employment due to redundancy. Next.
agreement will be renewed.
S: retrenchment to provide losses
So, if the contractor hires a contractual worker
for a period coterminous with the service A: for example, for the past 3 years, yung
agreement and at the end of his contract, does company mo has been incurring losses and
the contractor have the obligation to pay him losses were such to an extent which already
separation pay? impaired the earinings of the company or has
eaten up the capital of the company. That
S: no sir would allow the company to terminate workers
on the ground of retrenchment. To provide
A: why not losses. The law does not allow naman to let
you operate at a loss otherwise, that is violation
S: it is not available to the contractual workers. of sue process. Next.
It is not available to them
S: and the closing or cessation of operation
A: correct. So what are those causes when an
employee is entitled to a pay of separation A: oh the service contractor has no client
pay? because of the complaint lodge by your lex
officer and the VPAA acted decisively and
S: it is under ART 297 of the LC. – speaks of decided to terminate the agreement with your
termination due to just causes. First, there is janitorial service agency and this agency could
serious misconduct or willful negligence. not look anymore for another client so they
decided to close their business. They can do
A: if you terminate an employee due to serious that and terminate the workers due to closing or
misconduct you have to pay them separation cessation of operations.
pay?!
In any of those instances, is there an obligation
S: no sir. wrong article sir. ahm the employer to pay separation pay?
may also terminate the employment of any
employee due to the insulation of… S: yes sir.

A: so what kind of cause is that?

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A: so that is the law that requires the payment cause, you cannot terminate an employee
of separation pay. Now, going back to my whose employment is regular.
question where the contractor hires the
employees for a period coterminous to the Are you telling me that if you hire a contractual
agreement, at the end of the service worker for a period coterminous, is that regular
agreement, is there an obligation to pay employment?
separation pay?
S: No sir.
S: No sir because it is not one of the authorized
causes A: that is a non-regular employment. No
security of tenure. At the end of your contract,
A: yes there is no obligation because the employment is ended.
employer did not terminate them at all. Their
contract simply ended, simply expired,
coterminous with the service agreement. Labor Standards – September 18
Nobody terminated them. The provision on
payment of separation pay requires a positive
act on the part of the employer to terminate. So *calls student*
never advice that they are entitled otherwise,
you will not have any basis to support that Atty: Are security service contractors required
advice. to register under DO 174?
Student: Yes they have to register and also in
That is contractualization and that is precisely relation to other requirements they have to
what this large major groups are protesting. undergo training …(sorry beshies di najud nako
They want to end that type of employment madungog klaro iyang answer)
arrangement, they want that when you hire
people, you will hire them as regular A: So without certification, illegal contracting?
employees. But which the contractor also Under DO 174?
cannot do, because what will they do with their S: No not under DO 174 but under DO 18-A
regular workers if they do not have clients. If
they hire them as regular workers, they have to A: Does it mention PADPAO?
make sure that it will provide them employment S: It says Sec 19.2– Mandatory Registration.
until retirement or death. Consistent with the authority of the Secretary of
Labor and Employment to protect the rights of
And if the employer wants to terminate the security guards and other private security
employment of regular workers, is there an personnel, it shall be mandatory for all SSC/
obligation to pay separation pay? PSA to register pursuant to the provisions of
Department Order 174-A. in addition to the
S: yes sir requirements set forth under said Department
Order, the applicant shall submit the following
A: yes! Because a regular worker enjoys documents:
security of tenure and he cannot be terminated
without just or authorized cause. so look at ART (a) Certificate of Membership issued by
279, the old one, yung security of tenure of the Philippine Association of
workers, what art is it now? Detective Agency Operators, Inc.
(PADPAO) or other associations
S: ART 294 sir. Security of tenure – in cases of recognized by the PNP-CSG-
regular employment… SOSIA, and License to Operate
issued by the latter;
A: oh in cases of regular employment, continue A: So what is the implication of that?

S: the employer shall not terminate the services S: It’s not only certificate of PADPAO but it also
of an employee except upon just cause or says other associations recognized by PNP-
authorized by this title CSG-SOSIA
A: So the registration submission of that
A: yes! Without a just cause or authorized by certification will render the service contractor
this title. This means that without any authorize legal?

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S: I think it depends on the license given(?) S: ***


A: Who gives them the license to operate? A: What is the default rule in bankruptcy
proceeding? Do these creditors include the
S: They have to register under the Department unpaid workers and other monetary claims(??)
Order and if they can successfully register then
Will the unpaid workers’ wage be superior than
they can…
those claim by other creditors?
A: Under the DO 174 you register so you do not S: Yes since the law mentions of preference
make them labor only contractor? Hindi naman
siguro because what defines labor only A: If you just read the law and don’t read the
contracting is the Labor Code diba? If at all, it decided cases by the SC interpreting the law,
will only affect the registerability(?) If you are your understanding will be limited. The answer
not registered by the DOLE, what happens? is NO. Workers’ preference is not superior
according to the SC. So what is this workers’
S: It is deemed an indication that you are only a
preference attached to the property of the
labor only contracting employer(?) What type of credit, ordinary or
A: So absent the registration by the DOLE is special? Give example (beshies di najud
conclusive that you are labor only contracting? madungog mas kusog pa ang tingog sa aircon
kaysa tingog nila huhuhu) What about the claim
S: It is a presumption of the government between the workers’
A: It is not conclusive? preference?
S: No So without the declaration of bankruptcy or this
judicial proceeding, the workers cannot file a
A: Why then a presumption if it is not claim for their unpaid wages?
conclusive(??) Can that be not rebutted?
S: No it has to be declared
S: It can be rebutted
A: So you cannot raise it before the LA?
A: So it is a rebuttable presumption, not
conclusive. Kasi if conclusive, patay na wala S: It depends upon the amount
nag pag-aawayan. So it is just a presumption
A: For example a worker with a claim of P10K?
rebuttable by evidence. Read Art. 110. Does this provision stop them from filing a
S: ART. 100. WORKER PREFERENCE IN claim before the LA?
CASE IF BANKRUPTY
S: No
In the event of bankruptcy or liquidation of an A: So they are not prohibited? So if you file a
employer’s business, his workers shall enjoy complaint at the LA or whoever has jurisdiction,
first preference as regards their wages and
can they assert their workers’ preference?
other monetary claims, any provisions of law to
the contrary notwithstanding. Such unpaid S: They can assert their preference
wages and monetary claims shall be paid in full A: How can they assert their worker’s
before claims of the government and other
preference? Will they just file a complaint
creditors may be paid.
before the LA?
A: Does the law require a judicial proceeding to S: I believe they can
declare bankruptcy? Why?
A: And in that case if they file, who are the
S: Yes in order to give creditors the opportunity
parties?
to present their claims.
S: The parties are the employer and
A: Why should the creditors be given the
employee(??)
opportunity to present their claims?
A: In the bankruptcy proceeding? Yun bang sa
S: In the bankruptcy judicial proceeding, they
LA judicial proceeding ba yan? So in that
identify the different entities by the certain *** proceeding the employer is not declared
So after the payment of the creditors, the
bankrupt. ***
unpaid wages will be followed up(?)
Assuming USC becomes bankrupt and in that
A: Why not the other creditors to just file their judicial proceeding can I assert my preference
respective claims before the court?
before the Labor Arbiter? So if it is not a judicial

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proceeding, I can assert my worker ’s S: In such insolvency, it is not only the


preference? employees but they also have other contractors
or…
S: No
A: For example what other contractors?
A: Will be successful against my employer? Will
my employer be obliged to pay me my unpaid S: For example here in USC. Assuming USC
wages? becomes bankrupt, they could not pay anymore
not just their employees but also the janitors
S: Yes
who they contracted.
A: But I cannot assert my worker’s preference?
A: How about those who delivers water(??) or
S: No because it is not a judicial delivers newspaper will they qualify also as
proceeding(??) creditors of they are not paid? Yung mga
publisher ng mga libro na order ni Mam Arlene
A: So what should I do in order for this
if di sila mabayaran will they stand as
provision to apply? creditors? Yung nagsu-supply ng kuryente?
S: In order for this provision to apply *** Ang daming maging posibleng creditors so it is
not only the workers. So since there are many
A: What kind of action should I file to assert my creditors, will all of them have time to present
worker’s preference? (Ana si sir study daw the their respective claims? THAT’S THE REASON
commentary of authors and jurisprudence so FOR A COURT PROCEEDING. What will the
that we can understand about this topic) Action court do in the proceeding?
for damages? Action for recovery of sum of
money? Regular courts have no jurisdiction S: the court will, upon finalizing such decision
over cases arising from ER-EE relationship. that the establishment is insolvent, it will then
proceed to which creditors must have
[SPECTRA: File a petition to declare your preference of payment
company bankrupt in the regular court.
Once the court has declared the company A: And the court will look up on the properties
bankrupt that is the time you can exercise of the establishment if there is any. If there is,
your preference. File in regular courts.] then the court can order for the liquidation for
these properties to pay whom?
*calls another student*
S: The creditors
Student: In order that you may exercise your
worker’s preference, I will first file a petition to A: And if that happens, where is the worker’s
declare my company bankrupt. preference there?
A: So it is not an action for damages? For S: The worker’s preference, in the absence of a
collection of sum of money? It is an action to special **, they shall be prioritized…
declare your company bankrupt? A: Yan bang worker’s preference na yan, does
S: No; Yes that make a lien on the property of the
employer?
A: So action for bankruptcy? What law governs
bankruptcy? Before we have a very old law – S: No since it is only preference of credit(??)
Insolvency Act. A: do you think that’s fair for the court to
S: Financial Rehabilitation and Insolvency distribute the property equitably among the
Act persons(??)
A: So in an insolvency proceeding or S: yes since the creditors have already done
declaration of bankruptcy, it is either voluntary their part on the employers
or involuntary insolvency against the
A: So PREFERENCE of credit so hindi sya
establishment. With the workers, we have automatic
unpaid wages and other monetary claims. Will
there be other creditors? *calls another student*
S: Yes Atty: What is the concept of attorney’s fees?
A: So creditors of the establishment? Why do S: There are 2 types of atty’s fees: Ordinary
the establishment have other creditors? and Extraordinary.

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Ordinary Atty’s Fees – fees given to the lawyer threat or by any other means whatsoever
by the client basing on their agreement without the worker’s consent.
because the atty has rendered legal services
towards his client A: So the rule is that no withholding of wages
shall be allowed. But when is such withholding
Extraordinary – represents as a sort of only allowed?
damages that the court will render to the client
S: Only if the employee has consented to such
A: So there is this atty’s fees in the concept of withholding
damages?
A: Other exception?
S: Yes
S: If the law prescribes such withholding such
A: Does the LC have a provision on atty’s fees? as payment by the employer of contributions
like SSS, PhiHealth
S: Yes the LC provides such provision
regarding attys fees A: Actually di lang yan withholding may
deduction pang kasama (but do not confuse
A: Under the LC when may an award of attys withholding and deduction)
fee provided?
S: Also if there is debt due by the employee to
S: Under the LC, an award of attys fees will be
the employer
given if the losing party…
A: So that is under what law?
A: What kind of case?
S: Already under the Civil Code
S: Unlawful withholding of wages
A: So those are the instances involving the
A: So if there is unlawful withholding of wages withholding of wages. If it does not fall under
then the LC allows the award of attys fees?
these instances then it may fall under unlawful.
S: Yes Pag unlawful yan then the law allows for attys
fees. Equivalent to how much?
A: Against whom and in whose favor?
S: Equivalent to 10% of the..
S: Against the losing party and in favor of the
complainant A: Sakto? Or not more than?
A: Does the LC uses the word losing party? S: Not more than.. shall not exceed 10% of the
total amount of wages recovered.
S: No
A: Read the law
A: What does it uses?
S: Art. 111. Attorney’s fees – (a) In cases of
S: (Art. 111) CULPABLE PARTY – the party unlawful withholding of wages, the culpable
who is negligent or caused the.. party may be assessed attorney’s fees
A: CULPABLE PARTY – the one at fault (hindi equivalent to 10% of the amount of wages
negligent) Who could be that party at fault? recovered.
S: The employer A: So equivalent to 10% of the amount of
wages recovered NOT awarded. Yung na
A: In cases of unlawful withholding of wages. recover lang. What concept of attorney’s fees is
As what we studied earlier, is withholding of that? Ordinary or extraordinary?
wages allowed?
S: Extraordinary concept
S: The general rule is that it is not allowed.
A: So if it is extraordinary, the award will be
A: Is that in the LC? That no withholding of given to the lawyer or to the party?
wages shall be allowed? What’s our topic in
relation to wages? S: To the party in the concept of damages
S: Yes. Under Art 116 – WITHHOLDING OF A: Any other instance that attys fees may be
WAGES AND KICKBACKS PROHIBITED awarded under any other law?
It shall be unlawful for any person, directly or S: Other instance where atty fees will also be
indirectly, to withhold any amount from the awarded is if the court gives such reward to the
wages of a worker or induce him to give up any **
of his wages by force, stealth, intimidation,

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A: Under what law? S: If the case is not unlawful withholding of


wages, it is under Art 2208 under the CC. it
S: Under the Civil Code
does not have limitation of the amount(??) For
Art. 2208. In the absence of stipulation, the LC, only instances of unlawful withholding
attorney’s fees and expenses of litigation, other of wages subject to the 10%.
than judicial costs cannot be recovered, except:
A: So the LA may award more than 10% if it is
(1) When exemplary damages are awarded based under the CC?
(2) When the defendant’s act or omission S: Yes (correct sabi ni atty)
has compelled the plaintiff to litigate
*calls another student*
with 3rd persons or to incur expenses to
protect his interest NEXT TOPIC
(3) I n c r i m i n a l c a s e s o f m a l i c i o u s Student: Topic 14 which is regarding
prosecution against the plaintiff apprenticeship
(4) In case of a clearly unfounded civil A: What are these special types of workers
action or proceeding against the plaintiff under the LC? What are the classification of
special workers?
(5) Where the defendant acted in gross and
evident bad faith in refusing to satisfy S: We have the apprentices, learners and
the plaintiff’s plainly valid, just and handicapped workers
demandable claim
A: Who is a handicapped worker?
(6) In actions for legal support
S: A worker who has disability but is qualified to
(7) In actions for the recovery of wages work under certain conditions
of household helpers, laborers and
A: Is a handicapped worker a contractual
skilled workers
worker under the LC?
A: So there are many instances so the concept
of attorney’s fees there is ordinary or S: Under the LC, a handicapped worker is a
contractual worker
extraordinary?
A: Can an establishment hire a handicapped
S: Still extraordinary
worker?
A: So it is awarded not to the lawyer but to the
S: Basing on the management prerogative, an
party? And does it provide for any amount of
establishment may hire a handicapped worker
attorney’s fees?
S: Under the CC, it does not provide any it is A: If he hires a handicapped worker, does an
ER-EE relationship exist?
only the discretion of the court
S: yes
A: What do you mean by courts there?
A: If ER-EE relationship exists, are
S: Regular courts
handicapped workers entitled to overtime?
A: So the LA can’t award attys fees under the Minimum wage? Holiday pay?
Civil Code? Or in cases lang of unlawful
S: Yes
withholding of wages?
S: Only in cases of unlawful withholding A: So they are not different from regular
workers? Akala ko special workers sila?
A: So if the case does not involve unlawful Because if you say they are entitled to the
withholding? If he has been illegally dismissed, minimum wage, holiday pay, premium pay, SIL,
he can ask for the attys fees under the CC? 13th month pay then you treat them as regular
Hindi sya unlawful withholding but a case of workers
illegal dismissal so bawal to award attys fees?
S: Yes. However, there are…
If there is a valid award? Under the CC, can the
award of attys fees only when there is unlawful A: Are they entitled or not? Look at the heading
withholding? of the chapter in the LC, ano ba ang
nakalagay?
So to sum it up, what is your final answer?
S: EMPLOYMENT OF SPECIAL WORKERS

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A: Special workers pala so there is something operate for charity. That's why may
special about them. incentives.
S: They are in a sense special because the LC
provides special provisions for them because S: Under the labor code, the employer's
of… incentives are:
A: Special provisions?
S: Because of the uniqueness of their 1) Entitled to an additional deduction from their
situation(??) gross income of 25% of the total amount paid
A: So they should not be treated similarly as to disabled
regular workers. Kasi if regular workers,
covered ng LC yan.
2) Deduction from their taxable income of 50%
S: Yes they should be treated in a special of the direct costs of the improvements or
manner modifications.
A: Differently from regular workers. Otherwise,
delete the word special worker. So convince us >Employers  could save labor costs because
in so far as handicapped worker is concerned. the wages of handicapped workers shall not be
Why can we not treat them as regular workers? less than 75% of the applicable legal minimum
--END- wage.

Atty's Discussion(*):The employers are


Labor September 20 2017 allowed to pay them below the prescribed
applicable minimum wage but not less than
75%.
HANDICAPPED WORKERS *75% of P366 is P274, so a lot of savings of
Question (Q): What is a handicapped direct labor cost
worker? *You can pay them the substandard wage
rate (meaning below minimum wage) and
that is allowed by law.
Student (S):  Handicapped are workers whose
earning capacity are impaired by age or
physical or mental deficiency or injury. >They can stipulate the duration of their
employment period
Q: Aside from the labor code on *Employer may do away with the services of
h a n d i c a p p e d w o r k e r, w h a t i s t h e a handicapped worker because he's allowed
supplemental law for Magna Carta for to fix the term of his employment upon the
Disabled Persons? end of such term or period of employment.
You can do away with his services ba and
tell the handicapped worker "The
S: A handicapped worker is always a disabled employment will only be good for 3
person but a disabled person is not always a months" 
handicapped worker.

*Unlike if you hire a regular worker, he has


Atty (A): So mas broader yung concept ng security of tenure. Until he retires or until he
disabled person. dies.

Q: What benefit does an employer derive if *Yung handicapped worker pwede "I'll just
he hires a handicapped worker? hire you for one month", and that's allowed
*Yung mga operators na yan, di ba they by law.
usually operate for profit. They don't

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*He does not become regular worker Q: What is meant by apprenticeship?


because by fixing his period of employment,
h e ' s a k i n t o a c o n t r a c t u a l w o r k e r.
Remember this.  S: Apprenticeship means practical training on
the job supplemented by related theoretical
instruction. 
---- *Not hand job  training LOL; from hand job
Q: On the other hand, Magna Carta for naabot na ang topic about HIV AIDS; 
Disabled Persons, if you hire an able-
body  disabled person, how much do you
pay?
Q: How young may a person be employed
as an apprentice under the labor code?
S: Just like a regular worker

S: He/She must at least be 14 years old.


A disabled person may be an able-body(?)
person or not able-body person. If he's an
able-body person the law requires the Q: What is it in a 14 year old that the law
establishment to pay him the same wage considers employable?
rate as an enabled body worker. Unlike in
the employment of handicapped worker
where employers are allowed to pay him S: I think this is the age when individuals are
with below the prescribed minimum wage. very active and the amount of absorption of
their brain or learning of skills is very effective.
Q: Can the employer be generous enough *So that's why the law chose a person as
just to pay the handicapped worker the daily young as 14 years, not at least 25 or 30
wage? years old.

S: Yes, there's no prohibition. Q: Does this not violate the law against
employment of children?

---
S: Under the codal there is a citation and it's
stated that it should conform with RA 7610 as
APPRENTICE amended, and we should follow the 15 year
old, that the age should not be less than 15
Q: What about this employment of years old.
apprentice under the labor code? What is
apprentice?
Q: Why, do you consider hiring apprentice a
regular employment?
S: An apprentice is a person who is covered by
a written apprenticeship agreement with an
individual employer of any of the entities S: No.
recognized under this chapter

Q: Of course not, so would you agree with


Q: What is an apprenticeship agreement? that? That it should be restricted by this law
on employment of children? 
S: An apprenticeship agreement is an
employment contract wherein the employer What again is meant by apprenticeship?
binds himself to train the apprentice and the
apprentice in turn accepts the terms of training.

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S:  Apprenticeship means practical training on Q: What are you entitled to after completing
the job supplemented by related theoretical your training?
instruction. 

 S: Certificate of completion

Q: Taking cue from that definition, is that


regular employment? Q: For what purpose may you use this
diploma or certificate of training?

S: No. S: In applying for regular job or it may be useful


to take the board exam, or also use for

 graduating purposes, or whatever may be
relevant for that particular purpose
Q: The law on employment of children, is
that apprenticeship?
*If you're a 14 years old, you cannot yet get

 yourself employed, but maybe for future
employment purposes.
S: No 

 Q: Do they get paid?

Q: Of course not, so what's your


conclusion? S: Wage rate of at least 75% of the statutory
minimum wage for the first six months;

 therafter, he shall be paid the full minimum
S: I think the law should speak with the wage, including cost of living allowance.
(inaudible)

Q: Is there any instance when they don't get
paid at all?
*Because it involves employment of trainee,
an apprentice, on the job training di ba,
that's not regular employment. If you're in S: Yes, if such apprenticeship is a requisite in
regular employment, like me, I'm not under the school or curriculum or it's a requisite to
training. You follow? take a board exam.

Q: Insofar as the labor code on employment
*So that law is supposed to apply in terms of apprenticeship is concerned, what
of regular employment. Unlike in industry may qualify to hire them?
employment of an apprentice who is merely
considered a mere trainee. Trainee ka lang,
hindi ka regular worker. S: Only  highly technical industries; these are

 industries which require a high amount of
technical skills
*In fact, after the completion of your
training, do you become a regular worker? Ex: Manufacture of cellphone devices

*It involves high technical knowledge or skills,
S: No it's not easy to make a cellphone right?

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Q: If you have a sari sari store or gasoline


station, can you hire apprentices under the Q: If they are made to work overtime, what
labor code? happens to their hours spent?

S: No, because jobs performed in a sari sari S: They will be compensated/credited as


store or gasoline station are not highly training hours
technical.

*Credited as training hours


*Apprenticeable occupation requires
training more than 3 months. So yung mga
manual jobs for example that are easy to *More than 3 months but not more than 6
learn like a couple of hours, they do not months, di ba, so they are made to work for
qualify as apprenticeable occupation. certain number of hours. If they are able to
complete that then that finishes the
apprenticeship. It should not be beyond that
*On what are the apprenticeable period.
occupations, the TESDA has a long list of
them.
---
Q: Hiring an apprentice, would that require LEARNER
apprenticeship program? Q: What is a learner and a learnership
agreement?
S: Yes.
S: A learner is a person hired as a trainee in
semi-skilled and other industrial occupations
Q: That apprenticeship program, would that which are non-apprenticeable and which may
need approval from a government agency? be learned through practical training on the job
in a relatively short period of time which shall
S: Yes it has to be approved by TESDA not exceed 3 months.

*Without that approval, then the apprentice *That will distinguish an apprenticeship
that is hired is considered a regular worker. from a learnership.

Q: What is the prescribed hours of work of Q: Which is more restrictive in terms of


an apprentice? employment, learnership or apprenticeship?
Difficult to hire ba because the law
prescribes certain provisions.
S:Not more than 8 hours
S: I think it's the learner.
Q: Can you require the apprentice to work
overtime as a general rule?
Q: Yes, learner, because under the law,
when can a learner be hired?
S: No
S: Learners may be hired when
Q: In what instance can you require to 1) When no experienced workers are available
render overtime?
2) The employment of learners is necessary to
prevent curtailment of employment
S:When there's no regular worker available. opportunities

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3) The employment does not create unfair


competition in terms of labor costs or impair or A: isn’t that nice? That is nice. That forms part
lower working standards of your conjugal. That is also the law that
allows women in the PMA.
*You have to fulfill all those conditions
before you can even hire a learner.   Do not compare women with men because you
are part of the nation building. If you compare
Q: When you hire a learner, and he/she yourself to men, you are a weak person. Never
completes his/her training, is the employer compare yourself with men. Always say “we
required to hire him/her as a regular worker women” and not “just like men we are”.
if he so desires?
(chika)
S: Yes, but it must be stated in their learnership
agreement Going back to our topic, it says there “ensure
the equality before the law between women
Q: Would that be the same rule in case of an and men”. Why do they have to put women
employment of apprentice? ahead of men?

S: No, there's is no such stipulation in the S: ---


employment of an apprentice.
A: because women in my opinion belong to the
(calls another student) vulnerable group of workers in the society. You
are more prone to abuse, discrimination, and
etc. that is why we have a topic also on
--- discrimination.
EMPLOYMENT OF WOMEN
(chika)
Q: Can you tell us what's the constitutional
provision on women? Are you aware of an international convention
regarding women?
S: Art II Section 14, The State recognizes the
role of women in nation-building, and shall S: yes sir. The Convention on the Elimination of
ensure the fundamental equality before the law Discrimination Against Women
of women and men.

A: yes. That is an international convention


Q: Do we have a nation building law? passed by the international labor organization
of which Philippines is a member and has been
ratified by our government and adopted as part
S: Yes, Women in Development and Nation of the laws of our land. In fact, in the Ph, can
Building Act (RA 7192) you recall a special law of women alone?

Attorney (A): can you tell us a salient feature of S: VAWC


this Nation Building Act? What does that law
give to women?
A: that is not so comprehensive. That is all
about violence
Student (S): the right to obtain loan even
without the consent of the husband.

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S: Magna Carta of Women A: is that covered by philhealth?


Hospitalization?

A: yes. That was sponsored by former Sen. Pia


Cayetano S: yes sir.

A: another provision in the constitution A: Let us go now to the Labor Code. Read Art.
130

S: Sec 14 Art. 13 of the Consti stating that:


S: ART. 130. [132] Facilities for Women. The
Secretary of Labor and Employment shall
Section 14. The State shall protect working establish standards that will ensure the safety
women by providing safe and healthful working and health of women employees. In appropriate
conditions, taking into account their maternal cases, he shall, by regulations, require any
functions, and such facilities and opportunities employer to:
that will enhance their welfare and enable them
to realize their full potential in the service of the (a) Provide seats proper for women and
nation. permit them to use such seats when
they are free from work and during
working hours, provided they can
A: right of women to the workplace of safe and perform their duties in this position
healthful working conditions. Why is that? Why without detriment to efficiency;
is there a need to have a safe and healthful
working condition?
A: is that seat, does that refer to chairs? Like
your chair here in class?
S: because women have maternal functions.
S: yes sir
A: and what is your maternal function?
A: so when the law says “provide proper seats”
S: to bear children and give birth they are referring to chairs? The law could have
said provide chairs but said seats.

A: so if you bear child and give birth, does the


law provides you a leave of absence? S: not necessary they are not the same sir.

S: yes sir A: this is important in advising your clients

A: what is that leave of absence? S: chair is like this (referring to the classroom
chairs) while seats are those…

S: maternity leave.
A: can you sit on the table?

A: make men understand why you have a


maternity leave S: yes

S: because giving birth is too risky. It requires A: is it a chair?


great energy on the part of the woman. They
might get stressed-out. Strained.
S: no

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A: then what then is its difference? I’d like you A: so it is a form of discrimination. There is no
to check DO 178, s. 17 – all about high heeled substantial distinction between men and
females and workers whose nature of job women in terms of age.
requires them to stand for a long period of time
and walking. (read for purposes of the final
exam)
Labor September 25 2017
Take note that this proper seat under the labor
code speaks about the employment of women. Question (Q). How does DOLE now address
It is regardless of one’s sex, regardless of one’s the workers who by nature of their job
gender (so unsa man jud? Apil ang men or require standing for a long hours?
women ra?)

Student (S): The DOLE issued D.O. 178 which


Next enumeration under Art. 130 requires employers to address this matter
regarding the jobs that requires longer period of
standing.
S:
(b) To establish separate toilet rooms
and lavatories for men and women Q: Does this apply to only to women?
and provide at least a dressing room
for women;
S: No. Not only women. It also applies to men.
It applies to all workers regardless of gender.
A: sosyal kayo ha. what is a lavatory?
Q: Workers who by nature of their work are
S: it is where you can wash your hands required to stand for long hours, how does
the DOLE address it? Dalawa yan ha,
frequent walking and standing for long
A: for men, they don’t need lavatories because hours. Do not mix up the safety measures
after shaking the thing, they go out immediately prescribed by DOLE.
and appearing and shaking hands with
everybody (ewww). Another mentioned in Art.
130. What are the measures provided by DOLE
for the workers who by nature of their work
require standing?
S:
(c) To establish a nursery in a workplace 1. Implement rest periods to break or cut the
f o r t h e b e n e fi t o f t h e w o m e n time spent on standing or walking
employees therein; and
2. Install appropriate flooring or mats that will
mitigate the impact of frequent walking and
(d) To determine appropriate minimum prevent fatigue, such as wood or rubber
age and other standards for floorings
retirement or termination in special 3. Provide tables or work surfaces with
occupations such as those of flight adjustable heights to allow workers to
attendants and the like. alternately sit and stand while performing their
tasks
A: is it valid for an employer to impose an early 4. Provide readily accessible seats to be used
retirement age for women than that of men? during rest periods or even during working
hours, provided the employees can perform
their duties in this position without detriment to
S: No sir. it violates discrimination of ages. efficiency. These can be small foldable stools

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which can be easily stowed away so as not to


hamper the work area. S: 
5. Implement the use of footwear which is
practical and comfortable. These should not
pinch the feet or toes; are well-fitted and non- (2)Lactation station (applicable to nursing
slipping; provide adequate cushion and support employees)
to the arch of the feet; either flat or with low (3) Separate toilet facilities for men and women
heels that must be wide-based or wedge type
and no higher than one inch.
A: Did we not discuss earlier about facilities for
women, that they should be afforded with toilet
Q. What are the rights of the night workers? and lavatory separate from men? So this one is
another facility? For night workers? Will that
include men? (Yes sir)
S:  Right to Health Assessment; night workers
shall have the right to undergo a health
assessment without charge and to receive Well under the Labor Code, when you speak of
advice on how to reduce or avoid health facilities having a toilet and lavatory separate,
problems associated with their work. under the Labor Code diba we discussed
facilities for women. Di ba we discussed among
the facilities for women is a separate toilet and
Q. Why is that needed?  lavatory, di ba? Here, why is there another
separate toilet for men and women? Is that not
S: Because of the nature of their job; it's more a redundancy?
taxing on their part because they work at night. 
S: Um it could be the same sir (inaudible)
Q. Another right.
A: So as the law now stands, does it now make
S: They are also afforded with the right to a distinction between day time work and night
mandatory facilities and right to transfer. time work?

Mandatory facilities those which are 


So this DO, separate toilet facilities for men and
women. Yung sa labor code, facilities for
(1) Suitable first-aid and emergency facilities. women, may difference pa ba?

Q. Why is that needed? S: No difference. (inaudible)

S: Because of the night time, they are more What was in the mind in our legislators to have
prone to sickness. Because in night time, there the night workers a separate facility for men
can be emergencies in the work place. During and women?
night time, the body is not really attentive. They
are more prone to accidents. (Yun gusto ko
marinig) S: Sanitary purposes; to protect women

Atty: You will lose sleep di ba. You might just (Chika)
fall the stairs and hit your head, which may not
happen for day time work because you are not
drowsy, you have good sleep. (d) Facility for eating with potable drinking
water

Next facility.
Q: Why is there a need?

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S: Yes
S: Because the establishments around the
work place are already closed. A: Of course, for example your shift starts
11pm, you may want to go to work at 6pm so
A: So instead of them leaving the workplace you can rest until your shift starts at 11 pm. It
and looking for a place to eat that will endanger could either be reporting to work or going
their safety, whether men or women alike, the home.
law requires that eating facility must be there to
in the establishment itself. (chika about the broadcaster who was killed)

What is potable? Who is a night worker?

S: Safe to drink for health reasons S: A night worker is one who works between
10pm to 6am the following morning provided
(d) Facilities for transportation and/or properly that he/she has rendered no less than 7
ventilated temporary sleeping or resting consecutive hours of work
quarters
A: If you'll just say 10 pm to 6am that's wrong,
A: It says and/or, what's the choice of dapat that he/she has rendered 7 consecutive
employer? hours of work

S: Both or either, choice of the employer What are the exceptions in providing
transportation facility and/or temporary
quarters?
What kind of transportation? Bus?
(calls another student)
S: Maybe
Instances where the employer has no
A: No you read the law. It's transportation obligation to  provide transportation facility and/
facility. Hindi  naman you provide buses. or temporary quarters:
Anything that can transport you from one place 

to another. 
i. Where there is an existing company
Yung resting quarter, dapat properly ventilated, guideline, practice or policy, collective
hindi sa bodega.  bargaining agreement (CBA) or any similar
agreement between management and workers
providing for an equivalent or superior benefit
What's that for? Why are night workers 

entitled to a transportation facility and/or
resting quarters?
ex: Shuttle bus in a specific area

S: After work, maybe they would rather rest
while waiting for morning to come to go home
ii. Where the start of end of the night work does
not fall within 12 midnight to 5 o'clock in the
A: Going to work also? morning 

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*there are no available transportation like divided between the time before and after
jeepneys and buses childbirth. It requires a certification from a
competent physician, aside from the company
physician.
(chika about tarantado people that loiter
between those hours)
A: The right to transfer to day work, is that
absolute?
iii. Where the workplace is located in an area
that is accessible to twenty-four (24) hours to
public transportation S: No. 

iv. Where the number of employees does not A: So if there is no day work available, then
exceed a specified number as may be provided what consideration may be given to
for by the Secretary of Labor and Employment pregnant women aside from the one you
in subsequent issuances. said?

*As of now, no prescribed number S: They will be considered as in the same


position as the employees who are unable to
work due to illness.

A: Under the same law there's also a


provision applicable to pregnant women Can you read? Yung sa pregnant ha. 
who are night workers. Does the law
prohibit employment of pregnant women S: Under the law, where transfer to day work is
during night time? not possible, a woman employee may be
allowed to extend, as recommended by a
S: No competent physician, her maternity leave
without pay or using earned leave credits of the
worker, if any.
A: It should not because that is discrimination
because there are also women who prefer to
work during night time and we should not A: How long is the maternity leave?
deprive them of that opportunity. In fact the
demand of women for equal work opportunity S: Under the SSS, 60 days for normal delivery;
was the reason why the labor code provision on 78 days caesarian delivery
night work prohibition was abolished because
of the clamor of women to be given equal work
opportunities and that includes work during A: In those days, applying that, there is a
night time. possible extension, and it requires a
certification from a competent physician. So
that is one way to accommodate a pregnant
However for pregnant women, although they woman who could not be transferred to day
are not prohibited from being employed during time work.
night time, the law also takes into account their
condition. 
What else?
So what are the rights of pregnant women
or lactating women who are night workers? S: Non-diminution of benefits

S: A pregnant woman who is a night worker is A: What about if there is no more maternity
given the privilege to be transferred to daytime leave extension? If it has been fully
work for a period of 16 weeks which shall be exhausted?

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other workers who are unable to work due to


S: The pregnant woman would still be allowed illness.
to be on leave but it is without pay.
A: So you have to make a distinction,
A: Yes, but never to terminate the woman by whether his unfitness to work at night is
reason of her pregnancy because, is that less than 6 months or more than 6 months?
allowed by law to terminate a woman by reason
of her pregnancy? S: Yes sir.

S: No, it is one of the prohibited acts under the   If less than 6 months, this worker shall be
labor code Article 137 granted the same company benefits as the
Prohibited acts: other workers who are unable to work due to
illness.
(2) To discharge such a woman on account of
her pregnancy or when or leave or in A: So he will be placed under forced leave
confinement due to her pregnancy charged, so if there's no approved leave if any
then no work no pay. That is what the law
says,    because his unfitness to night work is
Aside from that, is there any other special less than 6 months.
law that prohibits termination on account of
one's pregnancy?
S: If more than 6 months, a night worker
certified as temporarily unfit for night work the
S: Magna Carta for Women; Responsible same protection against dismissal or notice of
Parenthood and Reproductive Health Act dismissal as other workers who are prevented
from working for health reasons.
(calls another student)
A: What does that mean?
A: For a person who is declared unfit to
work during night time, what right may he/ S: He shall be treated as those employees who
she be entitled to? cannot work due to health reasons in terms of
being dismissed due to health reasons.
S: If an employee, regardless if man or woman,
is declared unfit to work during night time,-- A: Is there a law allowing termination due to
health reasons?  Because the law that I know
is the law that allows termination on the ground
A: The rule is that he has the right to work for of disease.
transfer di ba? But if there's not position where
he could be transferred?
S: I think under disease sir, I think it is still
considered as health reasons.
S: If there's no position, he/she shall be
considered as those like an employee-- (can
you read daw) A: Yung disease could either be curable or non-
curable. It could be contagious or non-
contagious. Non-contagious example.
If such transfer is not practicable or the workers
are unable to render night work for a
continuous period of not less than six (6) S: Cancer, heart ailment
months upon the certification of a competent
public health authority, these workers shall be
granted the same company benefits as the

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A: So if that is not curable for a period of 6


months despite proper medical treatment, then A: Is it illegal to *inaudible* employer?
this person who is not fit to work at night should
be treated in the same manner, so that means,
what the labor code is saying, the employer S: No. Also to those who exploit or has virtual
may terminate you from your employment on business of sending a child to an employee.
the ground of disease. But of course that law
requires separation pay.
A: So any person can commit child Labor
Again who is a night worker?
Can a person who is 17 years old be made to
work in a hazardous or deleterious workplace?
S: A night worker is an employee that is made
to work for at least 7 consecutive hours
between 10 pm to 6am the following morning. S: No. Because as a general rule, persons
above 15 but below 18 may be allowed to work
except those that are prohibited
A: Consecutive ha, not putol putol.

A: How would we know whether the workplace


Be careful with this sa MCQ, because if he or activity is classified as Hazardous? Does the
is not a night worker, then day time worker Department of Labor have any guidelines to
siya so then we just apply the general assess and determine?
provisions of the labor code. Pag night
worker siya, mas additional benefit siya
because there is the right of health S: Guidelines in Assessing and Determining
assessment free of charge di ba, right to Hazardous Work in the Employment of persons
mandatory facilities which are not available below 18 years of age - DO 149-16.
to day time workers unless there are
provisions that overlap each other.
A: (1) Hazardous Workplace and activity are
classified by its nature
Example of night workers: call center agents,
security guards, hotel employees, hospital      (2) Classification by industry
personnel (their nature of work really requires      (3) Classification by occupation
them to work at night)
S: It includes those that are under mining
industries and construction industries...
LABOR- September 27, 2017
A: Give me an example of a Hazardous
Atty: What is meant by Child Labor? workplace and activiy that is classified as
Hazardous by its nature. Those workplace
which demean or degrade human dignity. 
S: Under the law, child labor is defined as any
work or economic activity that is performed by
the child that subjects him to exploitation and S: In a workplace of an advertising company
harmful environment. that is promoting things that are shouldn't be
promoted by children (i.e tobacco or beers).

A: Is that a crime?
A: That degrades or demeans the human
dignity of children? 
S: It is a crime on the part of an employer who
employs a child...

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S: Yes. Because as a child he/she does not that scenario, there is no occupational work
know what he/she is promoting and as a matter done since she is not really employed.
of fact the child is being used as an instrument
who sells those products that demeans him/her.
A: Under this Domestic Workers Act, does it
require an employment contract between the
A: I'll skip that topic and I'll leave that to you for employer and the domestic worker?
further studies.

S: Yes. It expressly states that there should be


(next topic) a written contract.

What is a domestic worker? A: Why do you think the law requires no less
than a written employment contract?

S: A domestic worker is a person that is made


to work in a household under an employment S: The law always protects the laborers that is
relationship whether live in or out agreement. why it should be made to a written contract. In
order to prevent disagreement or
misunderstanding on the terms and conditions
A: That definition of a domestic worker of employment. 
excludes who?

A: It is for the protection of both parties but


S: It excludes service providers, children under principally the domestic worker. 
foster care, family drivers and any other work
that is by its nature serving the household
occasionally or sporadically or not an Is there a domestic service agreement without
occupational basis. a written contract?

A: Why are children under foster care Can a contract of employment be perfected
excluded? even not in writing? 

S: Because it is governed by another law (RA S: No.


10165, Foster Care Act) and the nature of this
kind of work atty is that the child is made to
work in the household but in exchange the child A: I thought the law has to be interpreted in
is given the opportunity or right to be in school. favor of the worker and now you are protecting
the employer.

A: We should  not treat the foster child as a


domestic worker because in a foster care What kind of contract does an employment
arrangement, there's really no intention to make contract involved? Is it a real contract?
one as a domestic worker. personal contract? consensual contract?

S:Consesual contract.
Give an example to those performing domestic
work not on an occupational basis but A: How is a consesual contract perfected?
sporadically or occasionally.

S: By the consent of both parties. 


S: My Yaya is on vacation leave then we hired
a person just to wash the dishes for that day. In
A: What is now your conclusion?

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S: If there's no written contract, and both S:Yes. 


parties have mutually agreed and consented
the terms and conditions of the domestic
worker's work, they have been deemed entered A: Yes. They are duty bound to observe the
to a valid employment contract. period of employment until its expiration,
otherwise, it will constitute a breach of the
employment contract and the aggrieved party
A: Of course naman, if the contract of may seek relief before the DOLE. 
employment is not written, then that is
considered as a violation committed by the
employer against the domestic worker, but do With regard to compensation, in what form
not use that as  basis to deny the existence of should the monthly wage be paid?
the contract of employment. Remember that
the contract of employment of a domestic
worker is a consensual contract, it is perfected S: Only through cash.
by mere consent. Once th contract is perfected,
rights are born out of the agreement,
otherewise, kawawa naman yung domestic A: What is the proof of payment?
worker.
S: Payslip.
In a contract of employment, why is there a
need to put the duties and responsibilities? for A: How often should the domestic worker be
whose benefit is it that? paid?

S: For the benefit of both parties but primarily S: They should be paid at least once a month. 
for the domestic worker.

(calls another student)


A: Should they be paid compensation?

A: If your domestic worker rendered at least


S: Yes one month of service, do they have the right to
membership with the social security system?
A: In Region VII (Cebu City), how much is the
minimum monthly wage? S: Yes.

S: P 3, 000. Under wage order RO VII-01, it A: Who has the obligation to report them to the
has been adjusted from P 2,500 to P 3, 000.  SSS? 

A: What agency of government is responsible S: The employer.


in the issuance of wage order?adjusment of the
monthly minimum wage?
A: Yung entitlement nila sa membership sa
SSS is regardless of the amount of their
S: Regional Tripartite Wages and Productivity monthly wage?
Board.

S: Yes.
A: The parties are left to determined the period
of employment. Are the parties duty bound to
faithfully observe the term fixed in the contract A: Under the Social Security Act, failure to
of employment?  report an employee to the SSS carries with a

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criminal liability. By the way, membership is


mandatory. It is not something that is left upon S: That should be 24 consecutive hours.
the choice of the employer or employee. All
employees as long as you are not over 60
years old are compulsory members of the A: So at least 1 rest day in a week consisting of
Social Security System. 24 consecutive hours.

If you are a member of the SSS, there are two Are day also entiled to a daily rest period?
types of contributions, the employer
contribution and the employee contribution.
Who pays the contribution under the domestic S: Yes. The law says that they should be given
workers act? an aggregate daily rest period of 8 hours. 

A: How many hours does a day consist of?


S: It depends as to how much the domestic
worker's salary is...
S: 24 hours. 

If it is less P5,000, mandatory premium


payment shall be covered by the employer, A: But that 8 hours need not be consecutive
both the employer and employee's share. naman, it can be broken. 

If it is P 5, 000 and above, the contribution will How about If your domestic worker rendered at
least one month of service, would they be
be born by both the employer and the domestic
worker. entitled to a 13th month pay?

A: So they just have to look at the schedule of S: Yes.


contrbution. With regard to the contribution of
the domestic worker, natural i deduct mo yan A: How much?
sa sweldo and pag deduct wag mong ibulsa, i
remit mo yan sa SSS. 
S: A 13th month pay is equal to not less than
1/12 of the total basic salary earned in a
What is the minimum age of employment of a calendar year.
domestic worker?

A: When is the 13th month pay due?


S: At least 15 years old.

S: It should be given to them before December


A: If you hire a person below 15, is that illegal? 24 or upon separation or termination. 

S: Yes.
Part 2
A: Is the domestic worker under the law entitled
to a weekly rest day?
P: If a domestic worker has rendered at least 1
month of service if you’re the employee, would
S: Yes. you be entitled to 13th month pay?
S: Yes
A: How long? P: How much is it?

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S: The 13th month pay is equal to not less than P: Okay, so you are complying there?
1/12 of the total basic salary earned in a S: Yes
calendar year. It should be  given before
December 24 or upon separation P: So if they are sick you have to provide them
rest?
P: Yes correct. Are you complying with that?If
you want to give them additional money then S: Yes
you can call it bonus but at least the first P: If they need medicine then you have to
amount should be 13th month pay. Okay? Is provide them medical assistance diba? You
that bonus you are giving really more than 13th cannot simply abandon them just because they
month pay? are sick, they also need to rest.  do not require
S: Yes them to work if they are sick, the law requires
you to give them rest, adequate rest, they need
P: Okay. I’m just curious, how much do you pay medicine you provide them with medical
a domestic worker?
 assistance.
S: 6 thousand
55:34 
P: They should be reported to the SSS, kasi
they are there as a matter of their occupation, S: the right to access to outside communication
trabaho talaga nila yun, so not occasionally should be given to the domestic worker during
naman, that’s sporadically but on an their free time and it should also be given even
occupational basis diba? So even if you during their worktime in cases of emergency.
provided them a nice place to stay, it does not P: Alright, so for example during the 8 hours
excuse you from paying them yung mga rest schedule diba? Do not interfere if domestic
benefits under the law. worker has to use her cellphone to call the
P: in case they have rendered service for you neighbor and make chismis because it’s their
for at least 1 year would they be entitled to free time, even if not their free time but during
service incentive give? emergency do not prevent a domestic worker
from making an outside call, but if the domestic
S: Yes worker has no telephone and uses your
P: How much is it? telephone or your cellphone, does the domestic
S: 5 days worker have the obligation to pay you for the
cost?
P: 5 days with pay. If they cannot make use of
that then would that be convertible to cash? 56:35 

S: No S: Yes

P: Are you giving them service incentive give in P: kung mag text2 maubos yung load mong 20
case they will (Inaudible) 1 year, you can’t give lang pwede mo siya i-charge yung domestic
them? worker, sometimes they have this habit of
texting that is the right to access to outside
S: Yes communication. What is this so
P: Next question is, what about  board, lodging called privileged information under the law?
and medical assistance, what does the law say 57:07 
about it?
S: even after-
53:20 
P: before, during and after
S: under the law it  says that domestic worker
should be given at least 3 adequate meals a S: During and after the employment of the
day, humane sleeping conditions domestic worker, the domestic worker should
not divulge any information which is supposed
P: Safe and humane to be kept over the household
S: such as that, on respect on the privacy of the 57:30 
domestic worker it is-in live in arrangement.
Third, is that  domestic worker should be given P: Correct. domestic worker can be held
up to adequate medical assistance in cases of accountable to that diba? But there is an
sickness and injuries. exception when the information that is being
made within the household  will be outside of
53:59  scope of being privileged and confidential, if it

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concerns commission of a crime diba?  If i employer



chismis sa loob ng household patayin yung 1:02:13 
neighbor, that is outside the privileged P: So in those cases then the domestic worker
information diba? Right to education, does the may quit his or her job without incurring any
domestic worker have that right? liability?
58:40  S: Yes
S: The domestic worker does not have the right P: Yes. So there are grounds for termination of
to education but what the law says is that the the part of the employer and on the part of the
domestic worker should be given the domestic worker. What is this certificate of
opportunity to education employment?
P: correct, and that opportunity will include S: The domestic worker has the right to be
what level of education? given a certificate of employment and that
S: Basic education should be given within 5 days after his or
P: Yes. So if the domestic worker has an ample her termination of employment
rest period that he or she wants to devote to go P: yes, and for what purpose do you think will
to school diba? she also has savings, you have that serve?
to give them opportunity  to go to school. S: For future employment
Because what isprohibited is in conclict sa
kanyang domestic duties but if he or she could 1:02:59 
go to school during free time or during S: The law also mentions about the right of the
rest period do not stop him or her because the domestic worker  to be not interfered with the
law also recognizes the opportunity for employer in terms of disposal of wages
education, and also to alternative learning P: The provisions of the labor code, it won’t be
systems.  1:00:05  any other right? The right of applied because you do not interfere with the
the  domestic worker to  indemnity in case of domestic worker to patronize your own product.
unjust dismissal, what is that? loss or damage  you cannot hold her liable to
1:00:14  pay for the property that was broken diba?
Unless it’s authorized by the secretary of labor.
S: the law specified ground as to when an So anyways these are the instances when the
employer may dismissed the domestic worker, employer may enter criminal liability just take
so if the dismissal is not  within the grounds in note of them because we have only tackled
the law then the employee is entitled to the these when you were discussing  benefits for
earned compensation plus indemnity equivalent regular workers. Under the law are you
to 15 days of work. supposed to register a domestic worker in the
P: Yes. So if somebody applies for a job as a nearest barangay?
domestic worker and after 3 days you were S: Yes
jealous of the domestic worker and you fire her P: Yung mga barangay meron silang registry of
or him from the job, then you will be liable for domestic workers, you’re supposed to go there
the unpaid salary plus  indemnity equivalent to and submit the names, it’s also for your
15 days salary. On the other hand, can the protection. Diba?
domestic worker terminate his or her S: Yes
employment for a valid cause?
 P: At least registered siya doon. More for your
1:01:21 protection as the employer and for the
S: Yes protection of the domestic worker in case of
violence on the person, they can just report it to
P: Alright, what ground? the nearest barangay who is also mandated by
S: If there is inhumane physical violence, law to assist yung mga domestic workers, may
emotional abuse, verbal abuse then commision registry of domestic workers sa barangay,
of a crime against the domestic worker- if there you  have to report them. What is meant by a
is any violation on the terms and conditions on household?
the employment contract between the domestic S: Household, it means the  employer and the
worker and the employer and diseases that will immediate members of the family where the
be prejudicial to the domestic worker  or the domestic worker is  working including the

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occupants of the house who may not be S: Article 98 section  title shall not apply to
members of the family persons working in their respective homes
P:  of the house who may not be members of needle work 
the family, for example your friends are also P: So generally they are entitled to the daily
staying there but not immediate members of wage applicable in the region except when they
the family, they will also qualify as a household. perform needle work.  They said that a home
If you require  your domestic worker to work in worker does processing of materials or goods
one of your stores, will they be entitled to into finished products, under the law, what kind
minimum monthly wage or the usual prescribed of materials or goods are prohibited from being
daily wage  undertaken by a home worker? Kasi sa bahay
S: On top of the month's minimum wage of the lang yan eh, but there are certain prohibited
domestic worker, the worker is also entitled to areas. Can he manufacture shabu?
daily wage for working S: No
P: Yes. That’s a regular rule, you will have to be P: Explosives
paid in addition to what is he or she’s getting as S: No
a domestic worker. P: Poison
(Next student) S: No
P: What’s our next topic? P:  He can easily be done at home because
S: Home workers nobody would know, there is always a privacy
P: (what is an industrial home worker? diba? But these are prohibited. You cannot
S: A worker who is engaged in industrial work bring raw materials there and expect them to
P: What does an industrial home worker do?
 make dynamites out of it. Illegal yan eh.
S: He or she  alters certain goods in which  he 1:13:23 
converts into a  product or if an employer
delivers certain goods to industrial home S: Employment of non resident aliens
worker- 1:13:34 
P: So a home worker does  processing and P:  Who are referred to as aliens under our
when we say processing it refers to? labor code?
S: The processing of goods S: Foreigners
P: So when we think of homeworker, it is a P: Okay persons who are not Filipinos, and
system of production where there is this these foreigners may be resident aliens or non-
employment arrangement where the home resident aliens. Let’s go to non-resident aliens,
worker does  manufacturing, fabricating, who’s a non-resident alien?
packing materials or goods into finished S: A non-resident alien is a person seeking
prducts.Where does it go, these processing? admission in the Philippines for the purposes
S: He dose these processing in his home of gainful employment-
P: And when we speak of home, what does it P:  Gainful employment, and who is not
mean? a resident of the Philippines. So one who seeks
S: When we speak of home, dwelling admission to the Philippines in order to gain
1:10:14  employment is considered a non-resident alien.
P:  So, how do we distinguish a  domestic For employment though, not to reside there but
worker from a home worker? for employment,  gainful employment. So the
S: The domestic worker- general rule is that a non-resident alien who
P: Where does a domestic worker perform? s e e k s  g a i n f u l e m p l o y m e n t i n t h e
S: A domestic worker performs his or her work Philippines  must secure a permit, what is that
in the home of the employer, where as the permit called?
home worker performs in his own home. S: Alien Employment Permit
P: And when we speak of home it refers to P: And that is secured from what agency of the
a  dwelling. Is a home worker entitled to the government?
prescribed daily minimum wage applicable? S: Secured from the DOLE
S: Yes P: Alright, now under the existing department
P: Is there an exception? regulations, we have exemptions and
S: Yes exclusions. Let’s start with the exemption, I will
P: What’s one exception? allow you to read
S: One exception is S: All members of the diplomatic service  and
P: When the home worker does needle work, foreign government officials 
you read the law, article 98 P: Example?

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S: Foreign diplomat P: So hindi non-resident but permanent


P: Example of a foreign diplomat resident siya foreign national regardless of
S: Consul status whether permanent or probationary, so if
P: Next a foreign national comes to the Philippines and
S: O f fi c e r s and staff of lawfully marries a Filipino, then after Philippine
international  organization which a PH is a immigration laws he may acquire permanent
member and their legitimate spouse residency, green card na siya, so obviously, you
P: Example of an international will not burden him with securing a AEP to seek
organization accredited by PH government a job because, married na cya sa Filipino
S: World health Organization kailangan pakainin niya yung Pilipino diba?
P: International rice  research institute, Asian kawawa naman kung mag apply2 pa siya ng
development  bank, and of course  including AEP eh married naman siya sa Pilipino, you
their legitimate  spouses who usually come to follow? So permanent resident na although
them, diba? Then they work in the Philippines foreign national siya. That is why exempted
and they are considered exempted. The basis siya. Next, please remember my illustration
there is international law. Next? because I will give you a hypothetical situation
S:  all foreign nationals granted exemption  by S: That is the last example
law P: Now let’s go to exclusion.
P: Yes, if there is a law that grants exemptions S: First exclusion (Inaudible) 
to foreign nationals then we are to abide with P: Governing board referring to what
that. Of course the rules do not enumerate establishment, mga corporation, is there a
them. Next? corporation in the Philippines where the
S :  O w n e r s a n d r e p r e s e n t a t i v e s o f members of the board are foreign nationals?
f o r e i g n  p r i n c i p a l s w h o s e c o m p a n i e s Yung mga members nang board of directors? I
are  accredited by  employment administration know you are not taking up corporation law but
who come to the Philippines solely for the at least you must have an idea, so we have
purpose of recruiting corporations diba sa Pilipinas, may mga foreign
P: Yes, sometimes - if you have been reading a sounding corporations pa dyan. So yung mga
newspaper or watching television there is a corporation na yan if they are for  profit stock
large hospital in the US who is in dire need of corporations, they usually have a board of
Filipino nurses, so you allow them to come to directors, yung board of directors, they are the
the Philippines for a limited purpose for the sole managing board, they run the company, so
purpose of  recruiting Filipino workers, so their have you come across a corporation where the
stay here is among those considered exempted members of the board are foreigners? Does
from AEP. You follow? Although they are Philippine law allow foreign ownership of
performing their work in the recruitment, hiring, corporations in the Philippines?
and employment of workers. You follow? S: Yes
S: Yes P: In some activities not all. Okay?  You will
P: Madalas yan, there’s a Saudi company in learn that they are nationalized activities where
need of Filipino workers, they coordinate  with it should be fully owned by Filipinos, for
POEA and they come to the Philippines for example mass media, but there are also
short period usually, they call this recruitment activities may be party owned by foreigners and
sa mga hotels and they interview Filipino that where your 70%, 30%, 60%,,40%
workers for employment abroad, allowed yan. will come into play. You follow?
They don’t need to secure AEP because they S: Yes
are exempted. Next P: Ngayon, that exclusion mentions  that the
S: Next is foreign nationals who come to the foreigner is a member of the governing board, -
Philippines to teach, present- he is excluded from securing an AEP provided
P:  Exhange professors yan, diba? They teach that he only exercise voting rights, and he does
eh, in colleges and universities diba? exempted not manage or intervene in the operation of the
yan because their purpose here is not really company that means that he does not occupy
for  gainful employment diba? But as an a n e m p l o y m e n t p o s i t i o n . Yo u f o l l o w ? 
exchange professor. Next. Sometimes president siya at the same time
1:22:28  general manager  usually employment position
S: Permanent resident foreign national yan, allowed yon pero kailangan mag apply
siya nang AEP. Pero kung voting right ka lang

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member ka nang board, excluded ka  from yung penalties nyan. Why do you have to
alien employment permit, thats what it means. regulate itong mga non-resident
You follow? nationals employment in the Philippines?
S: Yes P: We want to regulate the influx diba of foreign
P: Hindi exempted, excluded ka. Next nationals  in the Philippines because otherwise
S: Next is  corporate officers as provided in if you will not do that that will displace
corporation code employment for Filipino workers who are willing
P: Corporation code so just to ket you know, sa to work, diba? So that  will create large
corportion code we have the president, the unemployment to Filipino workers diba? and
secretary, and the treasurer. So president, alam mo naman yung foreigner mga employers
secretary, treasurer, these are the corporate they are biased in favor of foreigners.
officers sa corporation law, ans there would be
other officers of the corporation depending on
the corporate bylaws, they are excluded, kasi Labor October 2 2017
hindi namn sila employee. A corporate office is
different from employment position. You follow?
S: yes You were enumerating the exemptions and
P: Next the exclusions from the Alien Employment
S: consultancy services  Permit (AEP) last meeting.
P: Independent contractor mga consultant lang
yan, they have no employer in the Philippines
diba? so they are excluded because Why do we have to make a distinction
they gainful employment. In the first place they between exemption and exclusion?
are not employees. Next
1:29:55 
 For the exempted foreigners, under the law,
they are given the opportunity not to get an
S: An executive within the organization who AEP; but those who are excluded are not within
primarily selects (inaudible), manager the coverage of the law.
P: So for example  PH want to establish a
nuclear plant? So we don’t know naman how to *Resident Alien - is one who is allowed by
do that. So they come here, we do not burden law to reside permanently in the Philippines
them with getting an AEP because their stay for gainful employment or not. 
here is not really for permanent period but
solely to the purpose of giving specialized
advices, diba? Operation- Anything else? *If he comes here, marries a Filipino, then
S: contractual service… he acquires permanent residency. 
P: More or less the same nature, so if they fall
under any of those exclusion, what you need to
do as an employer is to write a letter to the When the DOLE enumerated non-resident
DOLE and ask for a certificate of exclusion, and aliens who are exempted, the truth of the
then you submit yung kanyang agreement with matter is that, the law on exemption secure
them and the Dole will issue a certificate of not an employment permit, otherwise they
exclusion, similar to securing a certificate of are covered by law or that they are given an
exemption.  exemption (wa ko kasabot sorry)

Of course if you do not secure an AEP as


required by law, then the foreigner will be For those excluded, they are not covered by
subject to violation by the DOLE and the law in the first place because they are not
employer who  hires him can be subject to here for gainful employment.
penalties. Yung foreigner who works without an
AEP can be subject to violations on the
conditions of the stay in the Philippines which Let's look at the exclusions. (You must
may be a ground for deportation.  Bureau of distinguish the exemptions and exclusions,
immigration mag deport, magsumbong yung if you mix them up you're wrong)
DOLE, and the employer without getting
anything may be subject to penalties from the
department of labor and employment. Malaki

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In the past, there was only exemption. There then the law excludes you from securing
were so many questions whether one is AEP, although you are a non-resident alien.
exempted or not. So sabi ng DOLE let's just
provide a clear cut distinction between
those who are really covered and those not *Mere membership in the board does not
really covered. automatically exclude you. It is important to
prove that you are not involved with the
management.
Foreign nationals excluded from securing
AEP:
2. Corporate officers as provided under the
1. Members of the governing board with voting Corporation Code of the Philippines, Articles of
rights only and do not intervene in the Incorporation, and By-Laws of the Corporation
management of the corporation or in the day to such as President, Secretary, and Treasurer.
day operation of the enterprise.
 
Do we have a corporation code of the
*That contemplates of a corporation; if a Philippines?
corporation is a stock body corporation and
operating for profit, it has a governing Yes
board, otherwise known as the board of
directors. The board of directors is the one
running the company.  Do you have any idea who are the officers
of the corporation under the corporation
code?
*But before you could be a member of the
board, you must first be a stockholder. You
have to own shares of stock of the company *You have the president, secretary, and
and you will be elected as member of the treasurer--these are corporate officers. You
board. can also create other corporate officers in
the by-laws. 

*The first exclusion contemplates of a


members of the governing board. But the *If you are a corporate officer, you are not
DOLE wants that to be excluded, you must an employee. You are holding an office,
only exercise voting rights. You will vote eh while an employee does not hold any office.
depending on the number of your A corporate officer is not employee because
shareholdings. So if majority shareholder he has an office, unlike an employee. That
ka, usually the decision is deemed carried if being the case, he should be excluded. Sabi
you're the majority owner.  ng dept regulation, the key element there is
gainful employment whether there exist an
employer-employee relationship.
*You must not however participate in the
management. You must not occupy an
employment position kasi if you're the 3. Those providing consultancy services who
president and at the same time you are the do not have employers in the Philippines
general manager, eh being a general
manager is an employment position. When
What do you understand by that?
you say employment, governed by the labor
code. But being a member of the board Example (foreign IT masters) they work
alone with the voting rights, you are not outside, they come to the Philippines to offer
considered an employee.  services

*As long as you do not occupy an Is there an employer-employee


employment position involving the relationship?
management and operation of the company, No

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*No need to get AEP


*If you are a consultant, you come to the
Philippines, example you are a beauty
consultant, you were engaged by Belo
Medical Clinic in order to introduce a 5. Contractual service supplier who is a
special beauty product. So you come to the manager, executive or specialist and an
country as a foreigner, and then you provide employee of a foreign service supplier which
consultation to Belo Medical Clinic. You has no commercial presence in the Philippines.
don't have an employer in the Philippines,
so are excluded because you are an
independent professional. *Ito, supplier. For example, Duterte decides
to operate a nuclear plant sa Pilipinas, that's
a highly technical plant, and then he
4. Intra corporate transferee who is a manager, engages the services of westing house,
executive or specialist as defined below in yung foreigners magpapadala ng managers,
accordance with Trade Agreements and an executives, technicians to oversee the
employee of the foreign service supplier for at establishment and creation of a nuclear
least one (1) year prior to deployment to a plant.
branch, subsidiary, affiliate or representative
office in the Philippines.
*They are not here to compete with the
Filipinos. Kasi walang pilipino na
*Intra corporate transferee- so he is an gumagawa ng nuclear plant eh. Not even
employee of the mother company. For our experts have adequate knowledge
example, procter and gamble in the US, and trainings to make a nuclear plant. So sila
there's a procter and gamble branch in the excluded.
Philippines, mag papadala sila ng
empleyado dito to supervise yung financing
concerns ng branch office.  Intra, internal ---
lang, may assignment siya dun sa
Philippine branch to oversee yung finances
ng branch office. So must know each of these circumstances.
When you become a lawyer to any of these
non-resident aliens, it's either there
*He is an executive, a specialist, or a exempted or excluded. Exemption or
manager. exclusion, unfortunately, is not automatic. 

*He is not competing with anybody. Yung Meaning the employer needs to secure from
mother company doon sa labas, can never the DOLE a certificate of exemption or a
subsidiary in the Philippines. Yung mother certificate of exclusion. Kasi yung Bureau of
company can have a branch office in the Immigration, when they visit
Philippines. Iba yung subsidiary sa branch.  establishments, they see foreigners
working, they will ask "Hey, can I look at
your passport. Oi, you are working here,
*Yung mother company established ng you are not a tourist. Where is your AEP?"
subsidiary in the Philippines. Or pwede din "Here's my certificate of exclusion" 
siya mag establish ng branch office lang. Or "Here's my certificate of exemption"; so
pwede siya mag establish ng headquarters walang problema sa papeles.
diyan. 

*They are not competing with Filipinos kasi


galing siya sa abroad eh. Provided naman How long is the validity of the AEP?
diyan siya as executive and specialist.  Up to one year, renewable

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If you notice the AEP, it's not indefinite There must be a determination of the non-
because having a permit is mere privilege availability of a person in the Philippines who is
sa Pilipinas. Kapag sinumbong mo yan at competent, able, and willing at the time of
nag viviolate ng labor code yan, the DOLE application to perform the services for which
will order the cancellation of that permit. If the alien is desired.
the permit is cancelled, he could no longer
seek gainful employment. If you still work
without that permit, that is a violation of the Does that mean that any filipino who is
conditions of your stay in the Philippines as civic-minded may oppose an application for
a foreigner. issuance of an AEP?
Yes
Under the Immigration law, that's a ground
for deportation. What would be the ground for opposition to
the application for AEP?
Sometimes yung mga trabahante sa mga (inaudible)
multinationals, if they enter the ire of their
foreign bosses, yung mga empleyado
magsumbong yan sa DOLE they will make If you are reading the newspaper, you will
sumbong sa DOLE and DOLE will make notice of filing of application of AEP, you
sumbong to Immigration, if it turns out that will see there several columns, with names
your foreigner is not properly documented, of foreigners, position applied for, duties
patay si boss foreigner. Yung may ari ng and responsibilities, compensation 50-90/
company. month; if you believe that you are qualified
filipino to fulfill that position better than this
alien?
Do not confuse the AEP from the working I will file an opposition to that application
visa.

So you will prove that you are equally


Working visa - kunin yan sa bureau of qualified than this alien to hold that
immigration; ang law is Philippine position.
Immigration Act of 1940 we can find there
the different visas:  Unfortunately, I've yet to see anyone filing
an opposition. The only instance where
there was an opposition was the case of 
Tourist Visa Section 9 A Cone vs PBA (?): There are filipinos who
can better coach the basketball team so the
Pre-arranged Employment Visa (Working opposed and that case went all the way to
visa) Section 9 G the SC. That is the lone example of a strong
Married to a Filipino Visa or Permanent opposition.
Resident visa Section 9 D
(depending on the entry of the foreigner in the Ang problema sa atin, we do not care at all
Philippines) so we are flooded now with so many
foreigners. Some smelling garlic lol
If you see a foreigner working and he has ----
only a tourist visa, that is a violation of his
conditions of his stay, a ground for
deportation. (magsumbong daw tayo ireport WORKING SCHOLARS
na ang mga afam)
What is a working scholar?
---- Working scholar is a student who work for the
school in exchange for the privilege to study
What is the labor market test?

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free of charge provided they are given the SPECIAL LAWS ON EMPLOYMENT OF
reasonable opportunity to finish the course. STUDENTS: 

Like Thalia. Working for the school, college, Dual Training System Act
university, in exchange for the privilege to - a d m i n i s t e r e d b y T E S D A ( Te c h n i c a l
study free of charge provided that they are Educational Skills and Development Authority)
given the reasonable opportunity to finish
the chosen course. -involves a combination a training:  in-plant
training & in-school training 
-involves 2 parties: first party is the technical or
Does the implementing rules consider them vocational school  and the other party is
an employee? the employer
No -students are not employees but mere trainees
-beauty of the law: you are able to acquire skills
Not being an employee, is he entitled to the or get yourself familiar with the job that one day
minimum wage? you will have; what you study in school you're
No able to actually learn because you're exposed
on on the job training
-advantage: when you are able to complete
Is he entitled to overtime, premium pay etc? training, in case the employer would need a
No worker, you would be one of those who are
easily considered
-the student-trainees are paid with the stipend
What does he get out of his working? (allowance) equivalent to the 75% of the
Privilege to study free of charge minimum wage;paid by the establishment, the
establishment pays the school; represents
training allowance
Provided that he is given reasonable -students entitled to daily allowance (gi skip ni
opportunity to finish the course, what does sir)
that mean?
-(naa siyay gi ask about black relish scheme
The working scholar must also have time to (?? ambot mao akong dungog hahahha pero gi
finish graduate skip ni sir soo)

She/he must be given the opportunity to


choose a course that she/he wants and not
only that, he must be given the opportunity Special Program for Employment of
to finish it in regular passion (???) Students
-to qualify, the establishment must have at least
10 employees
Hindi yung "Oh sige you work for us, but
what's your course" "Accounting" "Oh sige -secondary level students: allowed to work
you finish that in 20 years ha" That is not a during summer and/or christmas vacation for a
real opportunity to finish the course. If you span of 10-15 days
do that, you are not a scholar but a regular -tertiary level students/technical-vocational:
worker.  allowed to work anytime of the calendar year
for 20-78 days (amended by Ra 10917)
Also, no employer-employee relationship -they are considered poor but deserving
because the intent there is to encourage students
schools to give them opportunity to study
free of charge. 
-under the amendment, aside from poor but
deserving students, it now includes out of

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school youth, dependents of those who are


displaced workers or would-be displaced Sugarcane - skip
workers (example one of the parents' company
is closing and I am dependent of my parent)
Medical Dental benefits - focus on employees
compensation law 
-as dependent of the parent, the student is
given the opportunity to be employed under the
special program for employment of students Migrant workers act - salient features of this law

-for those who will be working during summer


and/or christmas vacation: the employable
students are secondary level (15 but not more OCT 4, 2017
than 30 years old)
P: So under the  senior citizens act, what
benefits derived by the employer
-for out of school youth & technical vocational:
may be employed at any time of the year (15 to S: If the employer hires a senior citizen act, he
30 years old)  is entitled to a deduction of 15% from the gross
annual income based on the total amount paid
-before it is 15 to 20 years old as salaries to senior citizens provided that the
term of employment is at least 6 months and
-student is entitled to minimum wage but there the senior citizen’s annual income does not
is a sharing (60% from the employer; 40% from exceed the poverty threshold
the government i.e in the form of education
vouchers) P: under existing laws in the Philippines, what
is the maximum age of employment in the
Philippines? Because in the Philippines, there’s
-student is entitled to minimum wage BUT really no minimum age of employment,
period of employment is limited:  because even children below 15 may be
employed, that’s subject to certain conditions
during christmas and summer vacation 10-15 except of course for employment of children,
days (secondary level) they are prohibited in hazardous or dangerous
any time of the year 20-78 days  (tertiary/ work places regardless of age.
technical vocational)
S: I don’t think there’s a maximum age

Jobstart Act P: What changed your mind?


Time na
S: Because under senior citizens act, it gives
already the at least 60 years old of senior
--- citizen to be employed


P: So there is no prohibition to employ a person


Seniors Citizens - I just want to know what is above 60?
the benefit that the employer will derive if he
hires a senior citizen, yun lang. S: Yes

P: But we have a prohibition against


Talents and Workers - what is a talent vs non- employment of children in hazardous or
talent dangerous places, diba?

S: Yes
Employment of Collectors - skip
P: But we don’t have a prohibition against
employment of senior citizen? So you think if
Employment of Fishers - skip

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there’s no maximum age of employment, senior


citizens will also be in danger in their workplace P: What would happen if these people are not
just like children? allowed to be employed? 

S: If we compare the senior citizen and the
children, between the 2 classes the children S: They become passive-
are  weaker and more vulnerable as compared
to senior citizens and if we come to think of it
also, the senior citizens they have already P: Do they become burden to society?
experienced work in their younger years, so
when they already reache 60 years old  senior
citizens  then we can expect that they are S: Yes at some point also that they will just stay
already experienced for quite a long time that at home and-
they were working, unlike with the children they
are really vulnerable.

P: What’s the life blood of the government?
P: I see. So, this law provides employers with
incentives in forms of deduction from their S: Taxes
annual income which if they employ senior
citizens to work with for up to 6 months. Why
does the law give that incentive to P: Why taxes? If you are a senior citizen and
establishments employing senior citizens? you have no employment can you still
contribute something to society?

S: I think its for encouragement also so that
they will want to hire senior citizens because S: No
we know for a fact that there are a lot of
unemployed and these unemployed are
relatively younger as compared to senior P: In terms of taxes being the life blood,  don’t
citizens so to give  at least a chance for senior contribute anything more to the economy diba?
citizens to be employed then the law provides Kasi yung government naman survives on
incentive to the employers- taxes and if you are not earning anything there
is no tax to collect from you right?


P: But previously it is possible that they were S: Precisely


previously employed yung mga senior citizens
so the law is giving them a second chance for
employment, because it is possible that they P: In the eyes of the law you become a burden
were previously employed only that they have to them because they have to make sure
been retired from employment and now this law although you do not contribute anything in the
encourages establishments to hire senior form of taxes they have to make sure that you
citizens who may have retired from their are protected. You are also protected against
previous employment correct? thieves, robbers, burglars, they have to make
sure that you also enjoy the infrastructure and
so on and so forth, but they don’t really get
S: Yes anything from you in form of taxes because you
no longer employed. So by encouraging the
establishments to employ the senior citizens
P: So what do you think is the noble intention of aside from making them productive so as not
the law?  Its possible that he’s already they will not become a burden to society, and
retired, it’s possible that he is not yet retired but aside from that so that they would not also be
Im talking about more than 65 years old.
 dependent on your family. At least, if you are
able to work even during your senior years you
S: It gives already the senior citizen the may able to earn something.
opportunity to be productive again by
employing him or her in an establishment and-

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S: Yes, they will become burden to the society S: One example is a senior citizen can be hired
because they are no longer contributing in the as maybe attendant perhaps in a convenience
payment of taxes store 

S: Yes P: they have to stand up 

P: As not to become a burden to society, then S: I mentioned attendant in a convenience


to be able senior citizens to earn income on his store
or her own and not be too dependent to his
family so we encourage establishments to hire
senior citizens. P: So what will you do there? There is no
attendant in a convenience store except the
cashier. I don’t see anybody helping me when I
S: So therefore sir,  it works both ways? (char go in  a convenience store except to get your
lahi rajud nis Alped hahaha) thing and then bring it there for payment

P: Yes of course, but of course in so far as the S: Telephone operator. Also a call center agent
government is concerned they are more after who is a senior citizen. 
the taxes that they could collect from them  for
all they care whether you are productive or not.
Kasi if there’s no employment for senior P: So there is no impairment of hearing?
citizens  what will happen to them if they get
sick. When they get sick they will be going to a
government hospital which is S: I think no signs
usually  subsidized by government diba? And
then since you get sick your illness becomes
serious you need more medicines and yung P: Do you have grandparents?
mga government hospitals are provided
medicines coming from the pocket of the S: Yes
government.  burden sa gobyerno. All the
government will do is just to pay for all your
medicines to keep you alive. So  in able to not P: How old?
become too burdensome sa government they
will allow you employment if you are still able to
work and give you that opportunity since the S: 70-
opportunity is greyer at that age of yours then
they give incentives to establishments. So what
kind of job do you think will keep a person who P: So I’m sure you have seen him diba?
is a senior citizen, say he’s 70 years old, what
kind of job do you have in mind, after 65 years
old? S: Yes

S: professional prior to retirement P: So you do not notice something unusual?

P: It could be possible but not everybody is S: They cannot read clearly anymore and
professional.  Yung mga construction workers. hearing is impaired
Yung mga professional just counts very small
statistics in terms of population  sa Philippines.
There is no prohibition even P: So it is impaired
hazardous workplace they can be employed.

S: Maybe for those who have hearing
impairments, it’s not fit for them but for those

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who have a good hearing it will not be a employees. But under this department  order,
hindrance for them Dole recognizes that talents can also be
exploited and abused diba?
P: What about in the movie theater yung mga S: Yes
ticket2
P: Correct or not?  20:51  so they can also be
S: It’s okay as long as you are sitting the while abused an exploited hence the reason for
time department regulation
P: of course, to rest  S:  yes, it already provides the they shall not
work in hours exceeding that what is provided
S: Because there are others who are standing
P: By the way I’m just curious who are the non-
P: After senior citizens, we go to talents and talents?
non- talents in television and movie industry.
Can you take a look at that, who are S: They are the workers such as the camera
considered talents and who are considered man, editor, VTR operator, production
workers? Television and movie industry. 
 assistant, news caster, reporters.
S: Under this department regulations  number 22:21 
04 series of 2016, talents are individuals or
independent contractors who possess skills, P: What about a TV host? Are they talents or
abilities, or talents or has celebrity status their workers?
performance are outside of the control of
another 
 S: Talents
P: Now let’s look at the guidelines how the
P: So in other words, they are not employees? workers are protected, can you take a look it
and try to capsulize it for us?
S: They are not
S: In terms of the hours of work, the actual
P: why did not consider them as employees? hours of work of the movie and television
industry work or talents shall exceed 8 hours-
S: Because of this special talents or skills that
they possess- P: Work or talents 

P: Like what? S: Yes, in this regulation, in terms of the  talent


and workers there is no distinction
S: For example an actor, the actor has an
acting skill P: SO not more than?

P: Others do not have? S: 8 hours, then if the worker  is required to


beyond 8 hours the maximum actual hours of
S: Everyone does not have an acting skill work shall not exceed 12 hours


P: Why is it that he is not considered an P: Can you recall in our previous discussion,
employee what type of employment where the work shift
shall not exceed 12 hours also?
S: he is an independent contractor to begin with
therefore his means and methods are not S: Public utility  bus drivers and  conductors in
subject to the control of the employer public transport industry


P: So how the actor speak, smiles, acts is not P: Their hours of work is 8 hours but they could
subject to control of the employer so since  the remain to work up to 12 hours diba? Next.
control test is the most controlling  factor in
determining employer employee relationships S: For the normal hours of work of elderly
then they should not be considered as workers or talents, those age 60 years and

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above shall not exceed 8 hours in a day, S: The accommodation. Safe, adequate and
waiting times spent by a worker talent shall be free lodging or accommodation shall be
considered as working time if he or she is provided by the network
required-
24:30 
 P: So in our previous discussion what
employment did you discuss where there is a
P: Why is there a waiting time for talents and free lodging?
workers in television and-?
P: Domestic workers. So the discussion now
S: I think for the waiting time- becomes holistic. Next.

P: Yeah but when do that happen? S:  The payment of related benefits of the

 workers or talents by the industry regardless of
S: During the actual work where they are told to the nature of engagement shall not be lower
wait for- than the minimum standards under the labor
c o d e . T h e n s o c i a l w e l f a r e b e n e fi t s ,
P: For who? without prejudice to company..

P: Alright. So, this is simply an  reiteration of


S: Most probably when everything is already what our existing under labor standards law
set up or prepared and it only emphasizes that for talents and
25:09 
 workers in th TV division and movie industry,
they also need adequate protection with
P: Who do you think  there is waiting sa regarding the terms and conditions of
television and movie industry? Of course yung employment. Now by  this department relation
mga actors or actress. For example they’re in a you cannot see a definition of talent but of
location shooting there in the mountain so they course if you read this regulation conjunction
have to wait. so pag mag wait sila yung mga with that Sonsa vs ABS-CBN that will give you
camera men, VTR, recorders diba? That should a clear idea of what’s going on in the movie
be considered as working time. So if exceeds 8 industry. So you  better so you will get a better
hours will they be entitled to overtime if they understanding. Now if you want to know how
are covered employees? abusive some of the movie industry companies,
you just have to google ABS-CBN labor
S: Yes. case and you will find out that there is so many
labor case against ABS-CBN where ABS-CBN
P: Next lost because they treated camera men, VTR
recorders as talents when in fact they are
S: For  occupational safety and health, the supposed to be workers using the so-
provisions of occupational safety and health called  four fold test. And that’s all about the
standards shall be observed in all work places television and movie industry.  So everything is
now being addressed with regard to their plight
P: Okay. Next and welfare, yung mga premadona na mga
actors and actresses that keep them waiting
S: Adequate transportation facilities to and from the whole day, waiting time is considered as
the location or set shall be provided to the work. You follow?

workers. If no transportation is provided to the
worker, any cost incurred by the worker shall S: Yes
be reimbursed by the network
P: So that’s a very nice department regulation,
P: So what type of workers enjoy because one day you might end up to be TV
transportation facility? Night workers. host 
(Next Student)
S: Yes
P: Okay let’s go to the employment of students.
P: Next Just quickly, under these special program for
employment of students, what is the age
qualification?

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S: Under the special program for employment S: The government in the form of voucher
of students, the age must be at least 15 years
old to not exceeding 30 years old. P: Voucher?

S: No, I mean
P: Yes, and for those students enrolled in the
secondary level, can they be employed anytime P: Or is it not in cash?
of the year?
S: Under the new law, it is in the form of cash
S: No, but they could be employed during
vacation and summer P: Under the amendment siya

P: Why? Limited to that part of the year? S: Under the amendment it is in the form of
cash for the payment of the tuition, books, 

S: I think the reason why it is limited to those
times because the secondary students spends P: Yung 40% to answer for tuition. Now let’s go
most of their time at school and unlike the to these employees compensation act,  is it
tertiary college student they have sometimes found in the labor code of the Philippines?
underload or they have more time to work.

 S: Yes
P: Now for those studying in the tertiary,
vocational, or technical level,  including out of P: Yes it is found in the labor code, and under
school youth can they be employed anytime of these provision of employee's compensation,
the year? there is created the so-called state insurance
fund, how is this state insurance fund funded?
S: Yes
S: Through the contributions from the employer
34:53 
 alone

P: How long yung period of employment nila? P: Alone?

S: I think it is 20 to 78 days S: Yes

P: 20 days to the 78 days, yan yung period of P: Not from the employees?
employment? And of course they entitled to 

payment of wages diba? Yung mga students. S: No, it is payment in the law that if an
employer will require the employee to pay the
S: Yes contribution that should be declared illegal

35:24  P: If the employer deducts from the worker’s


salary contribution for ECC, is that a valid
P: How much yung kanilang wage? deduction or illegal deduction?

S: The minimum wage. S: I think it is not a valid deduction

P: Yes, and how much should the employer pay P: So it’s an illegal deduction?
them?
S: Yes
S: Under the law their employer is required to
contribute 60% of the wage- P: Because of the  contribution under for the
state insurance fund  should come solely from
P: Should pay them 60% of the daily wage? the employer, and who are covered by this law?

S: Yes S: The ECC covers all employers and it also


covers all employees not over 60 years old
P: While the 40% comes from where?

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P: Including their? S: 1974

P: 1974. When is labor day?


S: Including their dependents
S: May 1
P: So may mga heirs yan they can file in case
of death pf the worker including their P: So under the civil code which some of you
dependents not over 60. This state insurance cited in our online recitation inninvoke parin
fund is supposed to cover what? niyo yung civil code when we have a 1974
labor code diba? What does the labor code
S: It would cover the medical, the death, and says for injuries or death that is work
the- connected? Who is liable?

P: it could cover what kind of incidences? 42:29 


S: It would cover incidence that is arising out of S: Under article 178, the state insurance fund
employee employer relationships shall be liable for compensation to the
employer employee’s dependence
P: So will it cover sickness?

 Who should be liable sana without this law?
S: Yes if-
➢ Employer.
P: Will it cover disability?
Under what law?
S: Yes
➢ Civil code (1950s) and Labor Code
P: So what contingencies? because it was enacted later. So under
the civil code which some of you cited in
S: For disability, sickness and death. The state your online recitation iniinvoke nyo pa
insurance fund covers all  contingencies that is ang civil code, when we have a 1974
arising out of employee employer relationship labor code.

P: Such as? What does the labor code say for injuries,
death that is work connected. Read it. Who
S: Sickness, Disability, Death is liable?

P: These are hazards of work diba? When you ➢ Under article 178.
work, you may get sick, in connection with your
work. When you work you might injure yourself, That speaks of work connected injury or
somebody might kill you, so these are hazards disability including death. You see the state
of work and without this law, this 1974 labor insurance fund pala would be the one liable for
code that incorporates the work connected sickness, disability or death, it
is not the employer.
employees  compensation law, who should be
liable sana? Without this law, who should be What do you think would happen without
liable? this law the employer who always answer
for all work connected sickness disability
41:02
 resulting death, what do you think would
happen to the employer?
S: The employer

P: under what law?


➢ The employer will lose a lot of money,
S: I think the employer could be held liable civil YES. Medical expenses are so
law exorbitant and costly. Kawawa yung
employer they will go bankrupt. And
P: Civil code, 1950s pa yan eh. Labor code? accidents happen in the work place
even without the fault of the employer.

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Not to mention funeral expenses, which services provided for workers who are
is very expensive to bury people now. injured.
Good thing we have this employees
compensation that will cover work What is the scope of the liability of
connected sickness, disability resulting the state insurance fund?Because
to death. the state insurance fund is liable so I
want to know the scope of the
What are the benefits under the EC Law that liability.
workers may be entitled to, para lang we will
understand.
➢ When I say the law, it is the labor code
➢ Medical services, appliances and ha.
supplies
What does that mean ‘shall be exclusive
Why is that important? Anong relevance and shall be in place of all liabilities of the
nyan sa law? employer to the worker’ ?
➢ If you try to analyze the benefits its all ➢ Only the state insurance fund will
connected with sickness injury disability answer not the employer. The liability
and resulting death. Why would you shall be solely against the state
provide medical services if youre not insurance fund and it covers every
sick. Talagang related sya sa law, you liability that the employer may have on
don’t get bonus out of this ECC is all got the employee shall be answered by the
to do when a worker suffers injury, state insurance fund, that is the law.
sickness that is work connected
otherwise known as occupational So what is the purpose of that law? What
diseases. does it intend to achieve for the employer?
Anong appliance and supplies na
related sa benefits? … ➢ Ease the burden of employer. So for the
minimal contribution of the state
Rehabilitation services. Example: when insurance fund, the state insurance fund
a construction worker fell down, and in case of work connected
suffered an injury. That would require a contingencies it will take care of it.
rehabilitation if there is a broken hips or
leg. It is the doctor who will perform.
Now continue, recovery shall not bar… The
payment of …..
Rehabilitation services after undergoing
surgery – Physical therapy. Assist you to Under our present law, all employees not
walk, exercise. over 60 including their employer are
covered by the SS Act under the SS act,
there are two types of contribution,
employer’s contribution and employees
Next, Temporary (?) Total disability contribution. One of the benefits under the
benefit sir. – obviously you don’t Sss is sickness benefit also disability
become disable unless you suffer some benefit. Are you telling me that for work
injury. connected sickness or disability a worker
Next, permanent total disability – same may file a claim against both, under ECC
is true. and Sss?

Next, permanent partial disability ➢ YES. The one who contributes in ECC
is the employer while in SSS both the
Next, Death this may happen in work employer and employee, so being made
place to contribute to sss obviously I should
enjoy benefits on top of what I can get
It is really work connected diba, there is
under ec law. That is why the law says
no cash payment… This is all about recovery shall not bar recovery under

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the other law because they are separate They have different functions.
and distinct laws in the first place.
Is it the policy of the state to encourage the
deployment of filipino workers abroad?
What are the instances when the SSS
which is administering the ECC can ➢ No. it is not a policy but if there are
deny the claim for compensation under fi l i p i n o s w h o w a n t t o s e c u r e
the employees compensation act? employment abroad, we should not also
➢ Injury, death or disability is due to his prohibit them.
intoxication.
Example: a bus driver before Which agency is in charge in banning the
transporting, he was drunk so he deployment of ofw?
suffered injury.
➢ DFA, order the ban on deployment.
What would happen if the law will allow
recovery of compensation in that instance? Who may engage in recruitment and
placement, what is the prescribed
➢ It will consume the fund and benefit nationality requirement, and capitalization
people who are guilty of intoxication and requirement?
that is not good. Deliberate ito ano.
➢ In the case of sole proprietorship,
filipino citizen. For partnership and
Next, willfull intent to injure himself. Is corporation 75% of its capital stock
that self inflicted injuries? Yes. must be owned and controlled by the
filipino and the 25% may be owned by
f o r e i g n e r s . ( N AT I O N A L I T Y
Next, Notorious negligence. REQUIREMENT)
CAPITALIZATION REQUIREMENT:
Example: When a delivery boy from Sole proprietorship, 5millionpesos.
jolibee rode the motorbike even if he Partnership and Corporation,
knows that the brake is defective yet he 5millionpesos.
went there and he was fast.
If it is 25% owned by foreigners, does the
Sir: That is negligence because he philippine law allow the foreigner to be the
knew that the brakes were not working head or the managing partner of a
and he was driving so fast. recruitment and placement agency?
Driving recklessly trying to beat the red ➢ No sir.
light, is that notorious negligence? Why? is it illegal under the law?
➢ YES. To allow a nonfilipino to *** manage
What does notorious mean? Deliberate. head a recruitment, bawal diba, it is
legal.
What is the primary agency that has
jurisdiction over claims involving work Why? Because they care more about
connected injury, illness, disability or the interest of their country than our
resulting to death? country.
➢ Employees Compensation Commission Who will the nonfilipino support or
defend? The foreigner will defend his
Sss that is where you file your claim and then nationality. To avoid conflict of interest.
you process it but subject to the final approval
ng ecc. If you will allow a foreigner to head the
recruitment, there is a possibility if
What are the agencies identified under the conflict if interest because the foreigner
migrant workers act? are presumably will always be loyal to
his country, a foreign country.
➢ DFA, POEA, DOLE, OWWA, LGU, DOH

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Under this migrant and overseas filipino act, ➢ Yes sir, because that is only a
how does the law define ofw? presumption. It does not mean that it
cant be committed against 1 person.
How does the law define migrant workers?
What is the so called ban on direct hiring? I WISH YOU THE BEST OF LUCK.
Under the labor code there is a provision
there on ban on direct hiring.
➢ Article 80 of LC. It Prohibits foreign
companies, individuals corporations are
not allowed to hire filipino workers END!!!!!!!!!!!
directly. Why? They will not be
monitored, they may not be protected.
You will not know if they are abused or
what.

What are the exceptions?


➢ Article 18 or 80.
It will not harm naman the filipino
workers because they are hired by
members of the diplomatic corps, they
will be protected.
What is meant by recruitment and
placement?

When is it considered illegal?


➢ If it is undertaken by a business entity
without authority or license.

When is illegal recruitment and placement


committed by a syndicate and when is it
committed in a large scale? Where lies the
difference? FREQUENTLY ASKED IN THE
BAR.
➢ Syndicate is BY. COMMITTED BY
THREE OR MORE. LARGE SCALE
AGAINST THREE OR MORE

WHEN IS THERE A PRESUMPTION OF


ILLEGAL RECRUITMENT AND
PLACEMENT?
➢ There is a presumption when there is a
fee and it is committed against two or
more persons. (Read the provision
nalang kay di kaayu ko kadungog)

Can there be illegal recruitment committed


against one person considering that the law
says two or more?

138

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