4.

) Regular Employee
LABOR FINALS 2019
1.) Labor Only Contracting
Art. 106 of the LC - There is "labor-only" contracting where the person
supplying workers to an employer does not have substantial capital or
investment in the form of tools, equipment, machineries, work premises,
among others, and the workers recruited and placed by such person are
performing activities which are directly related to the principal business of
such employer.
The person or intermediary shall be considered merely as an agent of the
employer who shall be responsible to the workers in the same manner and
extent as if the latter were directly employed by him.
Two kinds of regular employees—
1. Those who were engaged to perform activities which are usually
necessary or desirable in the usual business or trade of the
employer
2. Those casual employees who became regular after one year of
service, whether continuous or broken
4.) Project Employees
Project Employees are those workers hired
1. For a specific project or undertaking; and
2. The completion or termination of such project or undertaking has
been determined at the time of the engagement of the employee

2.) Legitimate Contracting Where the employment of project employees is extended long after the
DO-18A Section 4. Legitimate contracting or subcontracting. Contracting or supposed project has been finished, the employees are removed from the
subcontracting shall be legitimate if all the following circumstances concur: scope of project employees and are considered regular employees.
(a) The contractor must be registered in accordance with these Rules and
carries a distinct and independent business and undertakes to perform the 5.) Fixed-Term Employees
job, work or service on its own responsibility, according to its own manner Fixed-term employment contracts are not limited, as they are under the
and method, and free from control and direction of the principal in all present Labor Code, to those by nature seasonal or for specific projects with
matters connected with the performance of the work except as to the predetermined dates of completion; they also include those to which the
results thereof; parties by free choice have assigned a specific date of termination.

(b) The contractor has substantial capital and/or investment; and
(c) The Service Agreement ensures compliance with all the rights and The decisive determinant in term employment is the day certain agreed
benefits under Labor Laws. upon by the parties for the commencement and termination of their
employment relationship, a day certain being understood to be that which
Solidary liability upon failure to pay wages between principal and must necessarily come, although it may not be known when.
contractor.
While the Court has recognized the validity of fixed-term employment
3.) Kinds of Employment contracts, it has consistently held that this is the exception rather than the
1. Regular general rule. More importantly, a fixed-term employment is valid only under
2. Project certain circumstances.
3. Casual
4. Fixed-term
5. Seasonal
6. Probationary

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6.) Project Employees
Requirements in probationary employment:
1. employer must communicate the regularization standards to the
probationary employee;
2. employer must make such communication at the time of the
probationary employee’s engagement.
The services of a probationary employee may be terminated for a just cause
or when he fails to qualify as a regular employee in accordance with
reasonable standards made known by the employer to the employee at the
time of his engagement.
Power of the employer to terminate the services of a probationary
employee is not without limitations.
1. This power must be exercised in accordance with the specific
requirements of the contract.
2. The dissatisfaction on the part of the employer must be real and in
good faith, not feigned so as to circumvent the contract or the law.
3. There must be no unlawful discrimination in the dismissal. In
termination cases, the burden of proving just or valid cause for
dismissing an employee rests on the employer. (Davao Contractors
v. Pasawa)
GR: Probationary period is only for 6 months.
XPNs:
• apprenticeship agreement stipulating a longer period.
• parties to an employment contract agreed otherwise,

• established by company policy
• required by the nature of work to be performed by the employee.
An exercise of managerial prerogatives in requiring a longer period of
probationary employment, especially where the employee must learn a
particular kind of work such as selling, or when the job requires certain
qualifications, skills, experience or training. (Bruiser v. Leogardo)
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7.) Labor Disputes
A labor dispute includes any controversy or matter concerning terms and
conditions of employment or the association or representation of persons
in negotiating, fixing, maintaining, changing, or arranging the terms and
conditions or employment, regardless of whether the disputants stand in
the proximate relation of employer and employee. (Article 212, Labor Code)
Not every controversy or money claim by an employee against the employer
or vice- versa is within the exclusive jurisdiction of the labor arbiter. Actions
between employees and employer where the employer-employee
relationship is merely incidental and the cause of action precedes from a
different source of obligation is within the exclusive jurisdiction of the
regular court. (Halagueña v. PAL)
8.) Recruitment and Placement of overseas Workers
Recruitment and placement' refers to any act of canvassing, 'enlisting,
contracting, transporting, hiring, or procuring workers, and includes
referrals, contract services, promising or advertising for employment, locally
or abroad, whether for profit or not: Provided, That any person or entity
which, in any manner, offers or promises for a fee employment to two or
more persons shall be deemed engaged in recruitment and placement.
The number of persons dealt with is not an essential ingredient of the act of
recruitment and placement of workers. Any of the acts mentioned in the
basic rule in Article 13(b) will constitute recruitment and placement even if
only one prospective worker is involved.
9.) Illegal Recruitment
Illegal recruitment is committed by persons who, without authority from
the government, give the impression that they have the power to send
workers abroad for employment purposes.
Element of Illegal Recruitment in Large Scale:
1. the person charged undertook any recruitment activity as defined
under Section 6 of RA 8042;
2. accused did not have the license or the authority to lawfully engage
in the recruitment of workers; and,
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 3. accused committed the same against three or more persons
individually or as a group.
Elements of syndicated illegal recruitment:
1. the offender undertakes either any activity within the meaning of
“recruitment and placement” defined under the LC
 There is a special undertaking by the employer to hire the learner as regular
2. he has no valid license or authority required by law to enable one
to lawfully engage in recruitment and placement of workers;
3. the illegal recruitment is committed by a group of three (3) or more
persons conspiring or confederating with one another.
 Art. 83. Normal hours of work. The normal hours of work of any employee
When illegal recruitment is committed by a syndicate or in large scale, it is
considered an offense involving economic sabotage.
10.) Enforcement and Sanctions
3 Kinds of Inspection:
1. Assessment prior to the grant of provisional license
2. Regular assessment prior to upgrading from provisional to regular
license
3. Spot Inspection in response to complaint
11.) Alien Employment Regulation
Art. 40. Employment permit of non-resident aliens. Any alien seeking
admission to the Philippines for employment purposes and any domestic or
foreign employer who desires to engage an alien for employment in the
Philippines shall obtain an employment permit from the Department of
Labor.
The employment permit may be issued to a non-resident alien or to the
applicant employer after a determination of the non-availability of a person
in the Philippines who is competent, able and willing at the time of
application to perform the services for which the alien is desired.
12.) Apprenticeship; Learners
Apprenticeship – trained for skilled jobs for 3-6 months.
Prior approval by the DOLE of the proposed apprenticeship program is, a
condition sine qua non before an apprenticeship agreement can be validly
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entered into. The act of filing the proposed apprenticeship program is a
preliminary step towards final approval and does not ipso facto give rise to
an employer-apprentice relationship. (Century Canning v. CA)
Learners – trained for semi-skilled jobs for a period not exceeding 3 months.
employee after training.
13.) Hours of Work
shall not exceed eight (8) hours a day.
Shall apply to employees in all establishments and undertakings whether for
profit or not, but not to government employees, managerial employees,
field personnel, members of the family of the employer who are dependent
on him for support, domestic helpers, persons in the personal service of
another, and workers who are paid by results as determined by the
Secretary of Labor in appropriate regulations. (Art. 82, LC)
14.) Managerial Employees; Supervisors; Not covered by 8
hour working time and OT pay
“Managerial employees” refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a
department or subdivision thereof, and to other officers or members of the
managerial staff. Also includes supervisors.
Managerial employees are not entitled to overtime pay for services
rendered in excess of eight hours a day.
Managerial employees are entrusted with trust and confidence. Only
managerial employees can be terminated for breach of trust and
confidence. It does not apply to ordinary rank-and-file employees.
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15.) Field Personnel; Not covered by 8 hour working time and
OT pay
“Field personnel” shall refer to non-agricultural employees who regularly
perform their duties away from the principal place of business or branch
office of the employer and whose actual hours of work in the field cannot
be determined with reasonable certainty.
Field/Sales personnel are employees who are evaluated by the result of their
work and not by the actual hours of field work which are hardly susceptible
to determination.
16.) Change in work hours
Management retained the prerogative, whenever exigencies of the service
so require, to change the working hours of its employees. And as long as
such prerogative is exercised in good faith for the advancement of the
employer’s interest and not for the purpose of defeating or circumventing
the rights of the employees under special laws or under valid agreements,
this Court will uphold such exercise. (Union Carbide v. Union Carbide)
Compressed work week - under this scheme, the generally observed
workweek of six (6) days is shortened to five (5) days but prolonging the
working hours from Monday to Friday without the employer being obliged
for pay overtime premium compensation for work performed in excess of
eight (8) hours on weekdays, in exchange for the benefits that will accrue to
the employees.
17.) Meal Period
The eight-hour work period does not include the meal break. Nowhere in
the law may it be inferred that employees must take their meals within the
company premises. Employees are not prohibited from going out of the
premises as long as they return to their posts on time. (PAL v. NLRC)
Art. 85. Meal periods. Subject to such regulations as the Secretary of Labor
may prescribe, it shall be the duty of every employer to give his employees
not less than sixty (60) minutes time-off for their regular meals.
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GR: Meal period not less than 1 hour.
XPNs: Meal period less than 1 hour but not less than 20 mins.
(a) Where the work is non-manual work in nature or does not involve
strenuous physical exertion;
(b) Where the establishment regularly operates not less than sixteen (16)
hours a day;
(c) In case of actual or impending emergencies or there is urgent work to be
performed on machineries, equipment or installations to avoid serious loss
which the employer would otherwise suffer; and
(d) Where the work is necessary to prevent serious loss of perishable goods.
18.) Overtime Pay; Computation
Overtime pay is compensation for effort beyond what is contemplated in
the employment contract, any additional pay given for a different purpose
cannot be considered in the computation of overtime pay.
Overtime work is actually the lengthening of hours developed to the
interests of the employer and the requirements of his enterprise. It follows
that the wage or salary to be received must likewise be increased, and more
than that, a special additional amount must be added to serve either as
encouragement or inducement or to make up for the things he loses. The
payment of overtime wage is indisputably intended as payment for work
done or services rendered.
The rendition of overtime work and the submission of sufficient proof that
said work was actually performed are conditions to be satisfied before a
seaman could be entitled to overtime pay
Method used by NAWASA in offsetting the overtime with the undertime and
at the same time charging said undertime to the accrued leave of the
employee is UNFAIR, for under such method the employee is made to pay
twice for his undertime
Proper method: deduct the undertime from the accrued leave, but pay the
employee the overtime to which he is entitled. (NAWASA v. NAWASA)
OT Pay/Hour = Applicable OT Rate x Applicable Hourly Rate
Applicable OT Rate = 25% if ordinary day/ 30% if any other day not ordinary
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19.) Night work; OT Regular Holiday
Art. 86. Night shift differential. Every employee shall be paid a night shift GR: With pay even if no work 

differential of not less than ten percent (10%) of his regular wage for each Worked: 200% of regular wage
hour of work performed between ten o’clock in the evening and six o’clock If 2 regular holidays fall on the same day:
in the morning. (10PM – 6AM) If unworked - 200%
If worked - 300%
Night Work pay/hour = NSD x Basic Hourly Rate If worked and also fell on rest day - 390%

NSD = Night Shift Differential = 110% 21.) Service Incentive Leave; Paternity & Maternity Leave
GR: holiday and SIL pay provisions cover all employees.
20.) Holidays XPN: field personnel and other employees whose time and performance is
GR: Every worker shall be paid his regular daily wage during regular holidays, unsupervised by the employer including those who are engaged on task or
XPNs: contract basis
1. in retail and service establishments regularly employing less than
ten (10) workers; Paternity Leave – 7 days with full pay, available only for married men for the
2. Field personnel; or EE whose time and performance are first 4 deliveries of legitimate spouse with whom he is cohabiting
unsupervised Maternity leave – 105 day extended maternity leave

Both Muslim and Christians working within the Muslim areas may not report 22.) No Work, No Pay Principle; Equal Pay for Equal Work
for work on the days designated by law as Muslim holidays (SMC v. CA) Principle
No Work, No Pay Principle - If there is no work performed by the employee
Divisor if HOLIDAY Pay is included - (365 days a year; 52 sundays; 52 there can be no wage or pay unless, of course, the laborer was able, willing
saturdays; 10 legal holidays) and ready to work but was illegally locked out, suspended or dismissed, or
287 = 8 hrs MON-FRI; 4 hrs SAT; No SUN otherwise illegally prevented from working, a situation which we find is not
261 = 8 hrs MON-FRI; No SAT; No SUN present in the instant case.
313 = 8 hrs MON-SAT; No SUN
Equal Pay for Equal Work Principle - Persons who work with substantially
Special Holiday
equal qualifications, skill, effort and responsibility, under similar conditions,
• Ninoy Aquino Day (Aug. 21) 
 should be paid similar salaries. (International School v. Quisumbing)
• All Saints Day (Nov. 1) 

• Last Day of the Year (Dec. 31)
23.) Commissions; Included in determining minimum wage
• Immaculate (Dec. 8) Commissions are direct remunerations for services rendered. There is no
law mandating that commissions be paid only after the minimum wage has
GR: No work, no pay 
 been paid to the employee.
Worked: additional 30% of regular wage 

Worked during holiday and rest day: 50% of regular wage if holiday work
falls on rest day

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GR: Commissions are included in determining the minimum wage provided
it is given for services rendered
XPN: It is not included if commissions are based on bonuses and not service
rendered.
24.) Facilities and supplements
Supplements constitute extra remuneration or special privileges or benefits
given to or received by the laborers over and above their ordinary earnings
or wages. Benefit or privilege granted to the employee for the employer's
convenience.
Facilities are items of expense necessary for the laborers and his family's
existence and subsistence so that by express provision of law, they form part
of the wage and when furnished by the employer are deductible therefrom,
since if they are not so furnished, the laborer would spend and pay for them
just the same.
25.) Wage Fixing Machinery Agencies
NWPC - power to prescribe the rules and guidelines for the determination
of minimum wage and productivity measures.
RTWPB - has the power to issue wage orders and implement such guidelines.
26.) Wage Order; Method of Fixing
Floor-wage method involves the fixing of a determinate amount to be added
to the prevailing statutory minimum wage rates.
Salary-ceiling method involves the wage adjustment to be applied to
employees receiving a certain denominated salary ceiling. In other words,
workers already being paid more than the existing minimum wage are also
to be given a wage increase.
27.) Wage Distortion
Wage distortion means the disappearance or virtual disappearance of pay
differentials between lower and higher positions in an enterprise because of
compliance with a wage order.
Wage distortion involves four elements:
1. An existing hierarchy of positions with corresponding salary rates
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2. A significant change in the salary rate of a lower pay class without a
concomitant increase in the salary rate of a higher one
3. The elimination of the distinction between the two levels
4. The existence of the distortion in the same region of the country
Ways to Correct Wage Distortion
1.) Organized Unions
a. Collective Bargaining
b. Grievance Machinery
c. If both above failed, proceed to Voluntary Arbitration
2.) Unorganized
a. Conciliation in NCMB
b. Labor Arbiter
28.) Wage Payment
Art. 102. Forms of payment. No employer shall pay the wages of an
employee by means of promissory notes, vouchers, coupons, tokens,
tickets, chits, or any object other than legal tender, even when expressly
requested by the employee.
Payment of wages by check or money order shall be allowed when such
manner of payment is customary on the date of effectivity of this Code, or
is necessary because of special circumstances as specified in appropriate
regulations to be issued by the Secretary of Labor and Employment or as
stipulated in a collective bargaining agreement.
Time of Payment – twice a month at intervals not exceeding sixteen (16)
days
Place of Payment - made at or near the place of undertaking
29.) Wage Prohibition
GR: Wages cannot be withheld or deducted by the employer without the
consent of employee.
XPNs:
1. In cases where the worker is insured with his consent by the
employer, and the deduction is to recompense the employer for
the amount paid by him as premium on the insurance;

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 2. For union dues, in cases where the right of the worker or his union
to checkoff has been recognized by the employer or authorized in
writing by the individual worker concerned; and

3. In cases where the employer is authorized by law or regulations
issued by the Secretary of Labor. 
 from the act of the offender. It is not essential for the demand be made as
30.) 13th Month Pay
PD 851 mandates employers to pay their employees a 13th month pay not
later than the 24th of December every year provided that they have worked
for at least one (1) month during a calendar year.
th
The minimum 13 month pay shall not be less than 1/12 the total basic
salary earned by an employee within a calendar year.
31.) Bonus
Bonus is an amount granted and paid to an employee for his industry and
loyalty which contributed to the success of the employer's business and
made possible the realization of profits. It is an act of generosity granted by
an enlightened employer to spur the employee to greater efforts for the
success of the business and realization of bigger profits.
The granting of a bonus is a management prerogative, something given in
addition to what is ordinarily received by or strictly due the recipient.
GR: Bonus is not a demandable and enforceable obligation
XPN: When it is made part of the wage, salary or compensation of the
employee.
32.) Sexual Harassment
Sexual Harassment - committed by a person who, having authority,
influence or moral ascendancy over another, requests or otherwise requires
any sexual favor from the other, regardless of whether the demand, is
accepted.
Safe Spaces Act - Authority, influence or moral ascendancy over another is
not a requirement. Same level of position, or lower position may still commit
said act.
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Prescription of Sexual Harassment - 3 years
Demand for sexual favor need not be oral or written. It may be discerned
a condition for promotion or continued employment. It is enough that the
act resulted to an intimidating, hostile or offensive environment for the
employee. (Rayala v. Domingo)
33.) Recovery of Wages
Double Indemnity Act – Employer must pay double the amount of unpaid
wages as indemnity. (Ex. Unpaid wages 1M = Indemnity 2M)
Art. 111 of LC - In cases of unlawful withholding of wages, the culpable party
may be assessed attorney’s fees equivalent to ten percent of the amount of
wages recovered.
In awarding attorney’s fees, it is not required that the employer acted
maliciously or in bad faith. It is enough that the lawful wages were not paid
to the employee.
34.) Corporation at Loss; Retrenchment
Procedural Steps
Serve written notice to employees and to DOLE at least 1 month prior to the
intended date of closure. Failure to do such will make the closure unlawful.
Failure to serve notice to employees will entitle them nominal damages.
Closure due to serious business losses based on audited financial statement
for the past 5 years, no separation pay must be paid to the employees.
Retrenchment
To prevent losses, financial statement for the 3 years before intended date
of retrenchment are deemed to be the adequate evidence of actual or
imminent serious business losses
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35.) Kasambahay Law
Reliefs available for maltreatment:
1.) Kasambahay may resign or terminate its employment immediately
2.) Claim Indemnity
3.) Rescued by DSWD
4.) File a criminal case

36.) Minor; Child Labor

GR: children below the age of 15 are not allowed to be employed in any
public or private establishment
XPNs:
1. when they work directly under the sole responsibility of their
parents or guardian or
2. when their participation in public entertainment or public
information is essential.

37.) Piece Rate Workers; Underpayment of Wages

Proof:
a) Payment of piece rate set by SOLE
b) Established based on the performance of an “ordinary worker of
minimum skill”

“The righteous person may have many troubles, but

the Lord delivers him from them all.”


Ps. 34:19

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