Course Outline in Labor Laws - A - PDF PDF

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Notes in Labor Laws & Social Legislation

2020 Edition
By: Atty. Alfredo F. Benzon. Bachelor of Arts & Letters &
Bachelor of Civil Law, University of Santo Tomas
Part-time Instructor, CBAA University of Northern Philippines
Preliminary Matters
1. Labor Code of the Philippines or Presidential Decree No. 442 which took effect on
November 1, 1974.
2. Two concepts (meaning) of “labor’’: (a) effort exerted, either physical, intellectual,
or both, to create something new; or (b) class of people, ex: “labor group”.
3. Scope of Labor Law: (a) law governing the relationship between employers
(capital) and employees (labor) with respect to terms and conditions of
employment (wages, hours of work, working conditions, place of work, time of
work, etc.; and (b) law governing the resolution of labor disputes regarding terms
and conditions of work.).
4. Major divisions of Labor Law: (a) Law on Labor Standards; and (b) Law on
Labor Relations.
5. Meaning of Labor Standards – labor laws that fix the minimum standards
requirements that employers must provide their workers with respect to wages,
hours of work, time of work, place of work and other terms and conditions of
employment. Ex. If the law requires that workers be paid a minimum daily wage of
P300.00 for 8 hours of work, the employer cannot pay less, but he can out of his
on benevolence volunteer to pay more than P300.00
6. Meaning of Labor Relations – laws that promote harmonious relationship
between labor and capital, and provide mechanisms, ways and means of peacefully
resolving labor disputes or controversies
7 Meaning of Social Legislation – laws that provide benefits or protection to the
working class, or require payment of benefits by government agencies (ex.
Employees Compensation Commission) to the worker or his family because the
worker cannot work by reason of disability, illness, injury, old age, death, childbirth;
etc.
8. Basic rights of workers under Labor Standards: (a) to security of tenure; (b) to
receive a living wage; (c) to share in the fruits of production; and (d) to work
under humane conditions (Ex. RA No. 11058) .
9. Republic Act No. 11058 signed into law by Pres. Rodrigo R. Duterte on August
17, 2018 entitled “An Act Strengthening Compliance with Occupational Safety and
Health Standards and Providing Penalties for Violations thereof”, the salient
features of which are:
every employer, contractor or sub-contractor shall:
- furnish a place of employment free from hazardous conditions that are causing or
likely to cause death, illness or physical harm to the workers;
- give complete job safety instructions or orientation to all workers especially to
those entering the job for the first time;
- inform the workers of the hazards associated with their work, health risks
involved, preventive measures to minimize the risks, and steps to be taken in
cases of emergency;
- use only approved devices and equipment for the workplace;
- comply with Occupational Safety and Health (OSH) Standards such as the use of
personal protective equipment (PPE);
Atty. Alfredo F. Benzon

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- allow workers to participate in planning, implementing and evaluating safety

standards;
- workers’ RIGHT TO KNOW or informed by the employer about all types of
hazard in the place of work (Sec. 5);
- workers’ RIGHT TO REFUSE UNSAFE WORK without threat or reprisal from
the employer if, as determined by the DOLE, an imminent danger may result in
illness, injury or death, and corrective actions or measures to eliminate the
danger have not been undertaken by the employer.
10. Rights of workers under Labor Relations: (a) organize (labor unions); (collective
bargaining/negotiation with the employer; (c) to engage in peaceful in concerted
activities (strike, picketing); and (d) right to participate in policy/decision-making.
11. Special Laws on Labor and Social Legislation (SSS, GSIS, Paternity Leave, Maternity
Leave, Anti-Sexual Harassment Law, Kasambahay Law, Anti-Age Discrimination in
Employment Act, etc.)
12. Meaning of Employee/Employer
Employee – he/she works for an employer for a salary or wage; he/she provides
the effort; any member of the labor force;
Employer – he/she for whom an employee works and who pays the employee’s
salary or wage.
13. Republic Act No. 10911 or the “Anti-Age Discrimination in Employment Act”,
July 21, 2016. The purpose of the law is to promote employment of individuals on
the basis of their skills, abilities, knowledge and qualifications other than age.
Salient features: It shall be unlawful for an employer to (Sec. 5):
-print or publish any in any form of media, including the internet, any notice or
advertisement relating to employment suggesting preferences, limitations,
specifications, and discrimination based on age;
-require the declaration of age or birth date during the application process;
-decline any employment because of the individual’s age;
-deny any employee’s promotion or employment opportunity because of age;
- discrimination against an individual in terms of compensation, terms and
conditions or privileges of employment on account of such individual’s age;
-forcibly lay-off an employee because of his age;
- deny any worker’s promotion or opportunity for training because of age; or
- impose early retirement on the basis of the worker’s age.
-Exceptions: It shall not be unlawful for an employer to set age limitations in
employment if: (a) age is a bona fide occupational qualification reasonably
necessary in the normal operation of a particular business or where the
differentiation is based on reasonable factors other than age (Sec. 14, RA 8551 or
the Philippine National Police Reform and Reorganization Act of 1998, PNP
applicant must not be less than 21 nor more than 30 years of age); (b) the intent
is to observe the terms of a bona fide seniority system; (c) the intent is to observe
the terms of a bona fide employee retirement or voluntary retirement plan; and
(d) the action is duly certified by the Secretary of the DOLE.
14. Kinds of employees/workers: (a) Regular; (b) casual; (c) probationary; (d)
seasonal; (e) contractual or project; (f) managerial; (g) confidential; and
(h) rank and file.
15. Characteristics Regular Employment
(a) employee’s service is necessary or indispensable to employer’s business;
(b) employee has rendered at least 1 year of service be it continuous or
broken; and
(c) employee becomes a regular employee if he is allowed to work beyond
the probationary period.
16. Characteristics of Casual Employment
(a) Employee performs a work which is only incidental to the employer’s

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business;
(b) a casual employee is only a casual employee for 1 year; and
(c) becomes a regular employee after 1 year of service be it continuous
or broken for as long as that activity exists.
17. Characteristics of Project Employment
(a) project employees are not regular employees;
(b) employment is for the completion of a specific undertaking;
(c) where the employment of the project employees goes beyond
or long after the project has been completed, they become
regular employees;
(d) where project employees are repeatedly or continuously rehired
for the same undertaking they become regular employees;
(e) project employees are not entitled to separation pay upon
completion of the project; but they are entitled to separation pay
if their services are terminated and the project has not
yet been completed; and
(f) project employees have security of tenure during their employment.
18. Characteristics of Seasonal Employment
(a) employer is engaged to work during a particular season in an activity
which is necessary to the employer’s business; and
(b) seasonal employees become regular employees when repeatedly
hired to perform the same activity.
19. Characteristics of a Fixed Period (Temporary) Employment
(a) employment arrangement is a specific undertaking covering a period of time;
(b) the service of the employee is necessary to the business of the employer;
(c) employee enjoys security of tenure during the limited time that he is
employed;
(d) employee becomes a regular employee if allowed to work beyond the
employment period without a new contract; and
employee becomes a regular employee in case of successive renewal
of employment contract.
20. Characteristics of Probationary Employment
(a) Employee undergoes a trial period to prove his competence and fitness
for a particular type of work requiring certain qualifications based on
employer’s standards which are made known to the employee (St. Paul
College, Quezon City vs. Ancheta, 2011);
(b)a probationary employment not exceed 6 months computed from
date of appointment;
(c) employment becomes regular if probationary employee is
allowed to work beyond 6 months or agreed probationary period; and
(d) employer must comply with two requirements:
First – employer must communicate the regularization standards
to the probationary employee; and
second – the employer must make the communication at the time of
the probationary employee’s engagement.
(e)Consequence of failure to communicate: If employer fails to
comply with these requirements, the employee is deemed a regular
employee (Abbot Laboratories, Philippines, vs. Alcaraz, 2013.)
21. Managerial employee – one who has the power to formulate and
execute management policies and/or to hire, transfer, suspend,
dismiss, recall or discipline employee.
22. Supervisory employee – one who works in the interest of the employer
by recommending managerial actions and policies.
23. Confidential employees – one who has access to labor management

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and labor relationship and assists executives in planning, deciding,

executing or implementing management policies.
24. Rank-and-File employees are neither managerial or supervisory employees.
25. Doctrine of Managerial Prerogative – It is the right of the employer to conduct
his business in a manner that he or she may deem fit. Ex. Temporary lay-off or
suspension of operations for sometime to recover financial losses. Limitations: The
labor code and due process.
26. Drug testing by employers. Under Section 36 (d) of RA No. 9165 or the
Comprehensive Dangerous Drugs Act of 2002 “Officers and Employees of public
and private offices, whether domestic or overseas, shall be subjected to undergo
random drug testing x x x which shall be borne by the employer, for the purpose of
reducing risk in the workplace. Any officer of employee found positive for use of
dangerous drugs shall be dealt with administratively which shall be a ground for
suspension or termination, subject to the provisions of Article 282 of the Labor
Code and pertinent provisions of the Civil Service Law; x x x.”
27. First time Jobseekers. Under Section 4 of Republic Act No. 11261 or Act Waiving
Government Fees and Charges in the Issuance of Documents Required in the
Application for Employment of First Time Jobseekers” “No fees and other charges
shall be collected from first time jobseekers when obtaining the following x x x (a)
Police clearance certificate; (b) National Bureau of Investigation Clearance; (c)
Barngay clearance; (d) Medical certificate from a public hospital , provided that fees
and charges collected for laboratory tests and other medical procedures required
for the grant of medical certificates shall not be free of charge; (e) Birth certificate;
(f) Marriage certificate; (g) Transcript of academic records issued by state colloges
and universities; Tax Identification Number (TIN); (h) Unified Multi-purpose TD
(UMID) card; and (i) Other documentary requirements issued by the government
that may be required by employers from job applicants;” and under Section 5 of
the law a first time jobseeker shall a present a barangay certification stating that
the applicant is a first time jobseeker.
28. Republic Act No. 11165 or the Telecommuting Act or “Work-from-home set up”“An
employer in the private sector may offer a telecommuting program to its employees
on a voluntary basis, upon such terms and conditions as they may mutually agree
upon: Provided, that such terms and conditions shall not be less than the minimum
labor standards set by law, and shall include compensable work hours, minimum
number of work hours, overtime, rest days and entitlement to leave benefits. x x
x.”
29. Stages of employment: (a) Pre-employment; (b) Actual employment;
(c) Termination of employment; and (d) Post employment.
30. In general - Employees covered by the Labor Code: Covers all workers whether
the (a) in agricultural sector; (b) non-agricultural sector; and (c) employees of
government corporations incorporated under the Corporation Code of the
Philippines.
31. Exceptions: - Employees not covered by the Labor Code: (a) government
employees; (b) employees of government corporations created by special charter;
(c) employees of foreign government; (d) employees of international agencies; and
(e) employees of Local Water Districts.
32. Private School Teachers – Their right to security of tenure is governed by the
Manual of Regulations for Private Schools and not the Labor Code.
Pre-Employment
01. State policies on Employment (Art. 12)

02. Meaning of: (a) Recruitment and Placement; (b) Private Fee-charging Employment
Agency; (c) License; (d) Private Recruitment entity; (e) Authority; (f) Seaman;

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(g) Overseas Employment; (h) Overseas Filipino Worker (Migrant Worker); and (i)
emigrant (Art. 13).
03. Department of Labor and Employment (DOLE) – Government Agency whose
responsibility is to promote employment opportunities/Employment Promotion
(Art. 14)
04. Government agencies in-charge of the allocation of manpower resources:
(a) Bureau of Local Employment (BLE) which replaced the Bureau of Employment
(Art.15) per Executive Oder 797, May 1, 1982);
(b) Philippine Overseas and Employment Administration (POEA) – for
overseas employment; and
(c) under Republic Act No. 8759 there shall be established in every
capital town and cities Public Employment Service Office (PESO).
05. Private Recruitment. General Rule: No person or entity shall engage
in the recruitment and placement of workers (Art. 16). Exceptions: (a) Public
employment offices; (b) Private recruitment entities; (c) construction
contractors if authorized by the DOLE and the Construction Industry Authority;
and (d) Name hirees.
06. Philippine Overseas Employment Administration (POEA) created per EO
No. 797, May 1, 1982 which replaced and took over the functions of the Overseas
Employment Development Board (OEAB) (Art. 17).
07. Government agencies tasked to protect OFWs (migrant workers): (a)
Department of Foreign Affairs (DFA); (b) DOLE; (c) POEA; (d) Overseas Workers
Welfare Administration (OWWA); (e) Re-Placement and Monitoring Center (RPMC);
and (f) National Labor Relations Commission.
08. Functions of the Overseas Workers Welfare Administration (OWWA):
Provides (a) insurance coverage; (b) legal assistance; (c) placement assistance;
and (d) remittance services – to OFWs.
09. Kinds of OFWs (migrant workers): (a) Sea-based or seamen; and
(b) Land-based.
10. General rule - Ban on direct-hiring (no direct-hiring) by an employer of a
Filipino worker for overseas employment except thru agencies authorized by the
Secretary of Labor (DOLE).(Art. 18). Exceptions: Direct-hiring by the following
is allowed: (a) Members of the diplomatic corps; (b) international organizations;
(c) other employers allowed by the DOLE; and (d) name-hirees.
11. Who is a “name-hiree”?
12. Commission on Filipinos Overseas (CFO) which replaced the Office of Emigrant
Workers (Art. 19).
13. National Seaman Board. (Money claims by OFWs is now under the jurisdiction
of the National Labor Commission (NLRC) (Art. 20).
14. Mandatory remittance of foreign exchange earnings by OFWs ranging from 50
to 80 percent. Exceptions: (a) Filipino service men working in military
installations of the USA; (b) immediate family members of OFW are residing with
the OFW abroad; and (c) immigrants and Filipino professional working with
agencies of the United Nations. (Art. 22).
15. Mandatory remittance is done by remitting a portion of an OFW’s foreign
exchange earnings through the Bangko Sentral ng Pilipinas (BSP) and DOLE
authorized agents, based on the following PERCENTAGE OF REMITTANCE:
(a) Seaman or mariner – 80% of basic salary;

(b) Workers for Filipino contractors & Construction Companies – 70% of basic
salary;
(c) Professionals whose employment contracts provide for free lodging
facilities – 70% of basic salary;
(d) Professionals with free lodging benefits – 50% of basic salary;

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(e) Domestic and Other service workers – 50% of basic salary;

(f) All other workers – 50% of basic salary.
16. Participation of the private sector in recruitment and placement of workers.
These are: (a) Private employment agencies; (b) private recruitment entities;
(c) shipping or manning agencies; (d) other persons authorized by the DOLE; and
(e) construction contractors with authority to recruit. (Art. 25).
17. The following are disqualified from recruitment and placement of workers for
overseas employment: (a) travel agencies; (b) officers and members of a
travel agency; (c) those having derogatory records; (d) employees of the DOLE;
and (e) those whose license have been previously revoked.
18. Non-transferability of license or authority to recruit (Art. 29). Limitations: (a)
to be used only by the person to whom it is issued; (b) it cannot be transferred to
another person; (c) to be used only in the place/region where license is issued; (d)
recruitment activities shall be done by the licensee at its/his authorized official
address; and (e) job fairs allowed if authorized by the DOLE.
19. Grounds for the revocation of license/authority to recruit: (a) three previous
suspensions; (b) violation of the conditions of the license; (c) misrepresentation in
the application for a license; and (d) recruitment of workers to jobs which are
harmful to the health or morality of workers or to the dignity of the Republic of the
Philippines.
Illegal Recruitment
Republic Act No. No. 8042 (Migrant Workers and Filipino Overseas Act
Of 1995, in relation to Arts.34 & 38 of the Labor Code)
01. Definition of Recruitment and Placement (Sec. 13). – Any act of any person
CANVASING, ENLISTING, TRANSPORTING, CNTRACTING, HIRING, UTILIZING or
PROCURING WORKERS, and includes CONTRACT SERVICES, REFERRALS,
ADVERTISING or PROMISING 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 engage in
recruitment and placement.
02. How illegal recruitment is committed:
(a) Acts of recruitment (Art. 13-b) without authority (non-licensee); and
(b) Commission of the prohibited acts enumerated in Art. 34 of the Labor Code
by a licensee or non-licensee: (a) charging more than the allowable fees
fixed by the DOLE; (b) publishing false information regarding recruitment
activities; (c) failure to reimburse the expenses of the worker in case of
failure to deploy without the fault of the worker; (d) giving false information
for the purpose of securing a license; (e) inducing a worker to leave his
employer and offering to transfer him to another employer; (f) engaging in
recruitment activities which are harmful to the morality and health of the
workers or to the dignity of the Republic of the Philippines; (g) obstructing
inspection by the Secretary of Labor or his representative; (h) filing false
reportsregarding the employment status of a worker; (i) substituting or
altering employment contracts; (j) becoming a member or officer of a travel
agency; and (k) to withhold or deny travel documents of the worker before
departure.
(c) Commission of the following prohibited acts under Section 6 of RA 8042
(Migrant Workers and Overseas Filipino Act, as amended by RA No. 10022) by
a licensee or non-licensee: (a) failure to deploy without a valid reason; (b)
failure to reimburse expenses of worker in case of failure to deploy without the
workers fault; and (c) recruitment by agents of the licensee whose
appointments were not approved by the POEA.

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03. Requisites of Simple Illegal Recruitment – (a) not constituting economic

sabotage; (b) without any license or authority. Penalty: 12 – 20 years
imprisonments; and fine of P1 – P2 million.
04. Illegal Recruitment constitutes Economic Sabotage:
(a) When committed or carried out by a syndicate of 3 or more recruiters

who conspire to commit an illegal transaction (known as Syndicated Illegal
Recruitment);
(b) When committed or carried out against 3 or more persons, individually

or as a group (known as Large Scale Illegal recruitment). Penalty: Life
imprisonment and fine of P2-5 million.
Employment of Non-resident Aliens
01. Requirements for non-resident alien seeking admission for empolyment in the
Philippines: (a) muss secure an ALIEN EMPLOYMENT PERMIT (AEP) from the
DOLE; (b) the AEP shall be issued after determination by the DOLE that there is no
person available in the Philippines who is willing, able and competentto
perform the services for which the alien is being employed (Art. 40).
02. The validity of an AEP is one (1) year unless the employment contract states
otherwise, but not to exceed five (5) years.
03. Immigrant and resident aliens are not required to secure an AEP. But they must
secure ALIEN EMPLOYMENT REGISTRATION CERTIFICATE (AERC).
Human Resources
04. The TECHNICAL EDUCATION& SKILLS DEVELOPEN AUTHORITY (TESDA).

Created under Republic Act No. 7796 or the TESDA Act of 1994. It replaced the
NATIONAL MANPOWER AND YOUTH COUCIL (NMYC).
05. Goals of the TESDA. (a) development of a middle-level manpower; (b)
development of skills based on scientific and technical knowledge; (c) to
encourage public and private institution to play a roll in the development of
middle-level manpower; (d) to attain international competiveness; and (e) to
develope good work ethic and values.
06. Meaning of middle-level manpower: (a) those who have practical skillslearned
thru formal or non-formal education equivalent to a secondary education; or
(b)persons who have become highly SKILLED and COMPETENT in their craft
thru experience.
Types of Special Workers

Apprentices (Arts 40-72), Learners (Arts. 73-77),
Handicapped Workers (Arts. 78-81)
01. Who is an apprentice? Is one who undergoes practical training on the job
(actual participation), supplemented by theoretical instructions in an
apprenticeable occupation.
02. What is an apprenticeable occupation? (a) an occupation which requires
training period of more than 3 months but not more than 6 months; and (b) the
occupation must be determined by theTesda as apprenticiable.
03. Who can employ apprentices? (a) employers in highly technical industries; and (b)
the occupation must be an apprenticeable occupation as determined by the Tesda.
04. Meaning of “highly technical industry”. An industry which uses advance technology.

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05. Qualifications of an apprentice: (a) at least 15 years old, but if he is below 18, he
shall be allowed to do hazardous work; (b) physical fit for occupation; (c) aptitude
to be trained; and (d) can understand oral and written instructions.
06. Salary of an apprentice: 75% of the applicable minimum wage.
07. Apprenticeship Agreement: Is the employment contract between the apprentice
and the employer
08. Apprentices without compensation: (a) those required by a School Training
Program/Curriculum as a requisite for graduation; and (b) apprenticeship as a
requisite for board examination.
09. Who is a learner? He is a trainee in a semi-skilled industry or occupation which is
non-apprenticeable thru practical training on the job in a short period of not more
than three (3) months.
10. Qualifications of a learner: (a) at least 15 years old but if he is below 18 he must
not be allowed to do hazardous work.
11. A learner’s wage shall be at least 75% of the applicable minimum wage.
12. Who is a handicapped worker? A worker whose earning capacity is impaired
by (a) age; (b) physical deficiency; (c) mental deficiency; (d) injury; or (e) disease.
(Art. 78).
13. There must be a connection between the deficiency and the work to justify the
employer to pay him a lesser wage.
14. The compensation of a handicapped worker must be at least 75% of the prevailing
minimum wage. A worker whose handicap does not affect his work must be paid
100% of the wage rate (Art. 80).
Labor Standards
01. Labor Standards covers: (a) Normal hours of work (Art. 83); (b) Hours
worked (Art. 84); (c) Meal periods (Art. 85); (d) Night Shift Differential pay
(Art. 86); (e) Overtime work (Art. 87); (f) Undertime not off-set by overtime
(Art. 88); (g) Emergency overtime work(Art. 89); (h) Computation of additional
compensation (Art. 90); (i) Right to weekly rest day (Art. 91); (j) When employer
may require work on a rest day (Art. 92); (k) Compensation for work on rest
day,Sunday or holiday work (Art. 93); (l) Right to Holiday pay (Art. 94);
(m) Right to service incentive leave; and (n) Service charges.
02. Tests to determine the existence of employer-employee relationship: (a) selection
and engagement of the employee test; (b) payment of wages test; (c) power of
dismissal test; (d) power to control test.
03. Contract of perpetual employment
04. Who are covered by labor standards? Employees in all establishment whether for
profit or not. (Art. 82).
05. Who are not covered by labor standards? (a) government employees; (b)
managerial employees; (c) field personnel; (d) members of the family of the
employer who are dependent on him for support; (e) domestic helpers or persons
in the personal service of another.
06. A managerial employee is one whose primary duty is the management of an
establishment, and a department thereof. Members of the managerial staff are
includes in term.
07. A field personnel is a non-agricultural employee who performs his work away
from the principal place of business or branch of the employer and whose
hours of work cannot be determined with reasonable certainty. Distinguish
08. Distinguish: (a) work day; (a) normal hours of work; and (c) work week
. (Art. 83) Normal hours of work – shall not exceed 8 hours a day.
Rationale: To safeguard the health of workers.
09. Part-time work or work for less than 8 hours allowed.

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10. (Art. 84) Hours worked include: (a) all time during which the employee is
required to be on duty or to be at the place of work; (b) all the time that the
employee is allowed to work; and (c) rest period of short duration not to exceed 20
minutes.
11. Waiting time is considered hours worked if: (a) employee is engaged by the
employer to wait; and (b) employee is required to remain on call.
12. Rule on travel time from home to workplace, and work place towards home.
13. Rule on travel time from job site to another job site during the work day.
14. Rule on semestral break of regular full time teachers.
15. (Art. 85) Meal period of not less than 60 minutes.
16. (Art. 86) Night shift differential (NSD) pay – is additional pay of not less than
10% of the daily regular wage for work performed between 10 p.m. to 6 a.m. the
next day. Computation: Schedule of work (7 p.m. to 3 a.m.): First – determine
hourly wage. Daily wage (P400) ÷ by number of hours worked (8) = P50; Second
– determine wage between 7 p.m. to 3 a.m. 8 hours x P50 = P400. Third:
Compute NSD. 10% of regular wage per hour (10% of P50 = P5.) P5 X 5 hours =
P25.00. Total wage: P400 + P25 = P425.00.
17. (Art. 87) Overtime pay (OP) – additional pay for work done beyond 8 hours
which is 25% of the regular wage Computation of OP on regular workdays:
(Regular basic wage + 25% of regular basic wage. Daily wage (P400). Work
schedule (8-12 then 1-5. Overtime work 5-10 or 5 hours. (25% x P50 hourly pay =
P12.50) + P50 = P62.50 x 5 hours overtime = P312.50 + P400 = P712.50.
Computation of OP on legal or regular holidays: Holiday wage rate (200%) +
30% of holiday rate.
First: Determine hourly wage rate. Daily basic wage (P400) ÷ by 8 hours = P50 x
200% = P100. Second: Compute wage 8 between 8-12, 1-5 using holiday wage
rate = 8 hours x P100 = P800. Third: Compute overtime pay (OP) from 5 p.m. to
10 p.m. 30% of P100 = P30 + P100 = P130 x 5 hours = P650 OP. Third: Compute
holiday wage of P800 + P650 OP = P1,450 total wage earned. Computation of
OP on rest days or special holidays: Rest day or special holiday wage rate
(130%) + 30% of rest day or special holiday wage rate. First: Determine hourly
wage rate. Daily wage (P400) ÷ by 8 hours = P50 x 130% = P65. Second:
Compute wage from 8-12, 1-5 or 8 hours x P65 = P520. Third: Compute OP from
5-10 or 30% of P65 = P19.50 + P65 = P84.50 x 5 hours overtime work = P422.50
total wage earned. Computation of OP on scheduled rest day which is also
a Special Holiday. Rest day and special holiday wage rate (150%) + 30% of
special holiday and special holiday wage rate. First: Determine hourly wage. Daily
wage (P400) ÷ 8 hours = P50 x 150% = P75. Second: Compute wage from 8-12
1-5 or 8 hours x P75 = P600.Third: Compute OP from 5-10 or 30% of P75 =
P22.50 + P75 = P97.50 x 5 hours overtime work = P487.50. P600 (wage) +
P487.50 (overtime pay) = P1,087.50 total wage earned. Computation of OP on
rest day which is also a legal or regular holiday (Dec. 30 or Rizal Day).
Rest day and legal holiday wage rate + 30% of rest day and legal holiday wage
rate (260%). First: Determine hourly wage rate. Daily wage P400 ÷ 8 = P50 x
260% = P130. Second: Determine wage from 8-12 1-5 or 8 hours x P130 =
P1,040.00. Third: Determine OP from 5-10 or 5 hours or 30% P130 = P39 + P130
= P169 x 5 hours overtime work = P845. P1,040 (wage for 8 hours) + P845
(overtime pay) = P1,885 total wage earned. Computation of OP double holiday
(Good Friday & Araw ng Kagitingan April 9). Double holiday rate of 400% +
30% of double holiday wage rate. First: Compute hourly wage rate. Daily wage
P400 ÷ 8 = P50 x 400% = P200. Second: Compute wage from 8-12 1-5 or 8
hours x P200 = P1,600.00. Third: Determine OP from 5 – 10 or 5 hours or 30% of
P200 = P60 +P200 =P260 x 5 hours overtime work = P1,300.00. P1,600 (wage for
8 hours) + P1,300.00 (overtime pay) = P2,900.00 total wage earned.

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18. (Art. 88) Undertime not offset by overtime.

19. (Art. 90) – The regular wage of an employee shall include the cash wage only. The
cash wage shall be the basis for computing the overtime pay and other additional
remunerations due the worker without deductions on account of facilities provided
by the employer.
20. (Art. 91) Right to weekly rest day of not less than 24 consecutive hours after
every 6 consecutive normal work days. The rest day is determined by the
employer subject to: (a) CBA agreement; (b) DOLE rules and regulations; and
(c) employees religion.
Regular & Special Holidays

(Pursuant to Presidential Proclamation
No. 555 issued on August 15, 2018
01 Regular Holidays are days of observance that recur every year. These are
declared by Presidential Proclamation or a law enacted by Congress.
02. Special Holidays are days of observance are generally declared thru
Presidential Executive Orders or by a law enacted by Congress.
03. Local Holidays are those declared by local ordinances. Ex. Quirino Day;
Vigan City Foundation Day.
04. The regular holidays are: (a) January 1 – New Year’s Day; (b) Maundy Thursday-
movable; (c) Good Friday – movable; (d) Araw ng Kagitingan – Monday nearest
April 9; (e) Labor Day – May 1; (f) Independence Day – June 12; (g) National
Heroes Day – August 26; (h) Bonifacio Day – November 30; (i) Christmas Day –
December 25; (j) Rizal Day – December 30; (j) Eidul Fitr – movable; and (k) Eidul
Adha – movable. (The Presidential Proclamation for these Muslim Holidays shall be
issued after the approximate dates are determined by the Islamic Calendar or the
lunar calendar or upon Islamic astronomical calculations).
05. The SPECIAL (non-working) HOLIDAYS are: (a) Chinese New Year – February
5; (b) EDSA People Power Revolution Anniversary – February 25; (c) Black
Saturday (April 20); (d) Ninoy Aquino Day – August 21; (e) All Saints day –
November 1; (f) Feast of the Immaculate Concepcion – December 8; and (f) last
day of the year – December 31.
Additional Compensation
For Work Done on Holidays
06. (Arts. 93-94) Additional compensation for work done on:

(a) Regular holiday – 200% of the regular rate;
(b) Sunday - when established worker’s rest day – 30% of regular wage;
(c) Special holiday – 30% of regular wage;
(d) Special holiday falling on rest day – 50% of regular wage;
(e) Regular holiday falling on rest day – 260% of regular wage;
(f) No regular workdays and no specific rest days – 30% of regular wage on
work done on Sundays and holidays;
(g) two regular holidays falling on the same date (double holiday)– 400% of
basic wage; and
(h) two regular holidays falling on the same day which is also the
scheduled rest day – 560% of basic wage.
Leaves

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01. Leaves from work are benefits given to employees that they may have time to:
(a) attend to personal needs, problems and activities; (b) relax; (c) recover from
sickess; and (d) the like.
02. Vacation leaves (VLs) and Sick leaves (SLs). There is no law in the
Philippines requiring the employer to grant employees VLs and SLs. Grant of VLs
and SLs is discretionary to the employer and these are usually stipulated in the
employment agreement or contract. But once given, the employer may not
unilaterally withdraw it because it will amount to diminution of benefits already
granted.
03. (Art. 95) Service incentive leave (SIL) – an employee who has rendered
at least 1 year of service, is entitled to 5 days incentive leave, with pay.
The phrase “one year of service” means service within 12 months, whether
continuous or unbroken. An employee may use his SIL benefits or he may
convert his unused SILs into cash upon termination of his employment.
04. Workers not covered by Service Incentive Leave: (a) government
employees; (b) domestic helpers and persons in personal service of another; (c)
field personnel whose work is not supervised or those paid a fixed amount
regardless of time worked; (d) those already enjoying the benefit; (e) those
enjoying vacation leave of five days with pay; and (f) those employed in
establishments employing less than 10 workers.
05. Maternity leave (ML) (Republic Act No. 11210 or expanded Maternity Leave
Law, February 20, 2019) – Features: (a) coverage: all covered female
employees in the private and government sector, including those in the informal
economy (self-employed, family workers in households, operators of sari-sari
stores), regardless of civil status, legitimacy or illegitimacy of her child; female
workers who are voluntary contributors to the SSS and female national athletes;
(b) duration: uninterrupted 105 days with full pay and an option to extend for
30 days without pay in case of live childbirth; 60 days paid leave for miscarriage
or emergency termination of pregnancy; (c) ML benefits are granted to a female
worker whether she gave birth by Caesarian procedure or natural delivery; (d)
ML benefits to female workers for every pregnancy, miscarriage, regardless of
frequency; (e) under RA No. 8972 or the Solo Parents Welfare Act of 2000, if
female worker is a solo parent she is entitled to an additional 15 days ML with
full pay; (g) female worker has the option to allocate up to 7 days of her ML
credits to the child’s father; (h) the following are the requirements for female
workers in the private sector, informal economy and voluntary SSS contributors
to qualify for maternity leave benefits:
- paid at least 3 monthly contributions in the 12-month period immediately

preceding the semester of childbirth, miscarriage, emergency termination of
pregnancy;
- must notify the employer of the pregnancy and the probable date of childbirth;
the notice must be transmitted to the SSS; female OFW’s, voluntary members
and workers in the informal economy shall notify the SSS directly;
(i) requirements for female workers in the government or public sector

(regardless of employment status, length of service) to qualify for maternity
leave benefits:
- 30 days advance notice to the head of agency of her pregnancy and availment of
maternity leave benefits, and specifying effective date of leave.
06. Paternity leave (RA 8187) – Features: (a) 7 calendar days leave to
legally married male employees with full pay, regardless of their employment
status (regular, contractual, etc.); (b) purpose – to allow the husband
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to lend support to his wife during her period of recovery and/or nursing her
newborn; (c) applies to the first 4 deliveries of the employee’s lawful wife;
(c) employee must be cohabiting with his wife; and (e) applies to employees
in the private or public sector. (Note: under Sec. 6 of RA No. 11210 or the
Expanded Maternity Leave Law, February 20, 2019, a female worker entitled to
ML benefits has the option to allocate 7 days of her 105 days ML to the father of
the child, whether or not the man is married to her.
07. Special Leave for Victims of Violence against Women and their Children
or Battered Woman Leave (RA No. 9262 or Anti-Violence Act against Women
and their Children Law of 2004).
Features: (a) Violence - refers to any act or series of acts committed by any
person against a woman who is his wife, former wife, or against a woman with
whom the person has or had sexual or dating relationship, or with whom he has
a common child whether legitimate or illegitimate, within or without the family
abode, which results in or is likely to result in physical, sexual, psychological
harm or suffering, or economic abuse including threats of such acts, battery,
assault, coercion, harassment or arbitrary deprivation of liberty; (b) victim
employee is entitled to a paid leave of 10 days so that she may attend legal
concerns (to include application for PROTECTION ORDER; (c) to avail
of the benefit, the only requirement is for the victim-employee to present
to the employer a certification from the Barangay Captain or Barangay
Kagawad or prosecutor or Clerk of Court, as the case may be, that a
complaint or case for violence is pending; (d) employer who denies application
for leave liable for discrimination; and (e) the 10-day leave is extendible if
specified in the Protection Order.
08. Parental Leave for Solo Parents or Solo Parent Leave (Solo Parents
Welfare Act of 2000) –
Features: (a) A solo parent or individual who is left alone with the
responsiFeatures: not more than yearly 7 days leave ; granted to a solo
parent employee who has rendered at least one year of service; eligibility
terminated the moment employee is no longer left alone to perform parental
duties.
09. Special Surgical Leave Benefits for Women (RA No. 9710, Sec. 10) –
Requirements: female employee has rendered at least 6 months work for the last
12 months is entitled to 2 months special leave benefit with full pay based on her
gross monthly pay after surgery caused by gynecological disorder.
10. Other Leaves: birthday leave, study leave, bereavement leave, emergency
leave, calamity and rehabilitation leave may be granted by the employer at his
discretion.
Service Charges & Pooled-Tips
01. (Art. 96) Service charges. Features: collected by restaurants hotels and like
establiskments; 85% for covered employees distributed equally twice a month;
15% for management to answer for losses and breakages.
02. Pooled tips – shall be distributed in the same manner as service charges.
Wages
01. (Art. 97) Wage defined – (a) remuneration or earnings which is payable by an
employer to an employee pursuant to a written or unwritten contract of
employment; (b) it is capable of being expressed in terms money; (c) it is paid
work done or to be done or the services rendered or to be rendered; (d) wage

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may be fixed, or ascertained on time basis (hourly, daily, monthly), task basis,
(specific work to be done, like cleaning a building) piece basis (piecework- for
every chair), commission basis (10% of the sale price) or other method of
calculating it; (e) it includes the fair and reasonable value, as determined by the
Secretary of labor, of board, lodging, or other facilities customarily furnished by
the employer to the employee.
02. “No work, No pay” principle.
03. “Equal Pay for Equal Work” principle. – same rank, equal work.
04. Wage distinguished from salary. Wage: (a) paid to blue collar workers or
those performing manual work whether skilled or unskilled; (b) under Art. 1708
of the Civil Code, wage is exempted from execution, garnishment or execution
except for debts incurred for medicine, food and clothing. Salary: (a) paid to
white collar workers; and (b) it is not exempt from execution, garnishment or
attachment.
05. The following are included in salary or wages: (a) commission; (b) facilities; and
(c) supplements.
06. Commission – an agreed percentage of a transaction paid to an agent or
broker.
07. Facilities – services or articles for the benefit of worker or his family. It is
deductible from the wage. Ex. Board and lodging.
08. Supplements – are extra pay or benefits by a worker on top of his regular pay.
It is not deductible from the wage.
09. Gratuity – something given for free to an employee to reward him for efficient
service. It is not a part of the wage.
10. Allowance – money given to the employee to meet certain expenditures. It is
not part of the wage. Ex. Transportation allowance. Representation expenses.
11. Bonus – money given to an employee to reward him for his loyalty.
12. (Art. 98) Rule on Wages applicable to all employees. The exceptions are: (a)
farm tenancy; (b) domestic helpers; (c) workers in duly registered
cooperatives;(d) workers in barangay micro-business; (e) persons who work
intheir respective homes in needle work or cottage industry; and (f) retail
establishments regularly employing less than 10 workers (but must apply for an
exemption with Regional Wage Board).
Minimum Wage Rates (Regional Wage Boards)
13. (Art. 99) – Minimum wage is the lowest amount of wage fixed by law that an
employer must pay his worker. It is also known as Statutory Wage.
14. (Art. 122) Regional Tripartite Wages and Productivity Board in ever
region (RTWPB). – Government agency that sets or fixes the minimum wage
for a particular region, geographical area, province, city, municipality or
particular industry. Composition: (a) DOLE Regional Director; (b) NEDA
Regioan Director; (c) DTI Regional Director; (d) 2 members- employers’ sector;
(e) 2 members – workers’ sector; and (f) Secretariat.
15. (Art. 123). Wage Order – It is an Order issues by the RTWPB fixing the
minimum wage for a particular region or geographical area. It shall not be
disturbed for a period of 12 months. Exceptions: (a) Congress enacts a law fixing
the minimum wage; and (b) supervening events. Ex. Extraordinary increase I
prices of basic needs.
16. Methods of fixing minimum wage: (a) Floor Wage Method; and (b) Salary
Ceiling method.
17. Floor Wage Method, how done: (a) determine prevailing wage; and (b) fix an
amount to be added to the prevailing wage.

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18. Salary Ceiling Method, how done: (a) fix and amount above the wage being
received; and (b) adjust it up to the amount fixed in the wage order.
19.(Art. 124.) Criteria for fixing minimum wage. (a) needs of the worker and
his family; (b) cost of living; (c) fair return of employer’s investment
20. (Art. 100) – Non-diminution of benefits already enjoyed.
21. (Art. 101) – Wage paid by result. Those who are paid a fixed amount for every
piece produced or work accomplished. (a) piece rate worker; and (b) pakyaw
worker.
22. (Art. 102) – Form of payment: General Rule: Payment by Philippine legal
tender. Exception: Payment by means of check or postal money order may be
allowed if: (a) customary in the place; (b) necessary by reason of special
circumstances; (c) agreed upon in the CBA; (d) if there is no CBA payment by
means of check shall be with the written consent of the worker; (e) presence of
a bank within one kilometer from the work place; and (f) workers given ample
time to encash their checks at the bank the .
23. Prohibitions: Employer cannot pay workers by: (a) promissory notes; (b)
vouchers; (c) coupons; (d) tokens; (e) tickets; (f) chits; and (g) any other object
other than legal tender.
24. (Art. 103) – Time of Payment: General Rule: (a) at least once every two
weeks; or (b) twice a month at intervals not exceeding 16 days. Exception: In
case of force majeure or fortuitous event, payment shall be made immediately
after after the event has ceased.
25. (104) – Place of Payment: General Rule: At or near the workplace.
Exceptions: (a) when there is disorder at or near the workplace; and (b)
calamity (like fire, flood) at or near the workplace.
26. Prohibitions: Payment of wages shall not be made at: (a) bars; (b) night or day
clubs; (c) drinking (liquor) establishments; (d) massage clinic; (e) dance hall;
and (g) gambling places.
27. Payment by means of ATM allowed if: (a) with the written consent of the
worker; and (b) presence of a bank or ATM facility within one kilometer.
28. (Art. 105) Direct payment of wages. General rule: Shall be paid directly to
the workers to whom they are due. Exceptions: Payment thru another person
is allowed if: (a) in case of force majeure, another person may be given a written
authority to receive the wage; (b) another person is authorized in writing to
receive it; and (c) CBA authorizes check-off of union dues.
29. Payment of wages in case of worker’s death: Requirements: (a)
claimants must execute an affidavit or sworn statement (AFFIDAVIT OF
HEIRSHIP) that they are the exclusive heirs of the deaceased worker; (c) if the
heir is a minor, the affidavit of heirship shall be executed by the minor’s guardian
or nearest kin; (c) the affidavit shall be presented by the heirs to the employer
and the employer shall make payment thru a representative of the DOLE or
Secretary of Labor; (d) the DOLE representative shall as referee in distributing
and dividing the wages among the heir. Effect: After payment, employer is
relieved of all responsibility.
30. (Art. 112) – Freedom of Worker in the disposition of his wages. Employer
shall not interefere with the freedom of the employee on how to spend his
wages. Employer shall not compel worker to buy commodities from him or any
other person or make use of the store or services of such person.
31. Summary of prohibitions regarding payment of wages: (a) not to be paid in
kind; ( b) not to be paid in bars, night/day clubs, massage parlors and similar
places; (c) wages shall not be diminished; and (d) worker not to interfere in
freedom of worker to spend his wages.
CONTRACTORS/SUB-CONTRACTORS

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01. (Art. 106) Types of contractors
a. Job-Contracting/Sub-contracting - Parties are: the principal , contractor/sub-

contractor; and contractual workers.
b. Labor only contracting – Parties are: the principal; contractor; contractual
workers.
02. Characteristics of Job-Contracting
a. It is an arrangement wherein the principal assigns to a job-contractor the

performance of a specific job for the principal;
b. The job-contractor undertakes to perform the job according to his own
methods and the principal does not interfere on how the job is done;
c. The job-contractor has substantial capital, tools, machineries and workplace
to do the job;
d. The job-contractor is considered the direct employer of the contractual
workers and the principal the indirect employer;
e. The contractor is responsible in observing labor standards and labor relations
and social welfare benefits;
f. In the event that contractor is unable to pay wages of contractual workers or
violates labor standards, the principal and contractor become solidarily liable
for payment of the wages; and
g. It is allowed by law (but must be registered with the DOLE).
03. Characteristics of Labor-only Contracting
a. The contractor recruits workers to perform a work for the principal;

b. The contractor does not have substantial capital, tools or work place;
c. The contractual workers are recruited to perform job which is directly related
to the business of the principal;
d. The principal exercises control in the workers’ performance of the job;
e. The principal is considered the employer of the contractual workers, the
contractor being merely an agent of the principal;
f. The principal and contractor are solidarily liable for the wages and benefits of
the workers; and
g. It is not allowed by law.
04. (Art. 128) Visitorial Power of the Secretary of Labor – It is the power of the
Secretary of Labor to inspect the employer’s records and workplace anytime of the
night or day to determine compliance with labor laws; and to compel the employer
to correct violations of labor laws.
WOMEN WORKERS
01. (Arts. 130-136) – Facilities/Benefits for Women – (a) seats appropriate for
women; (b) separate toilets for women; (c) appropriate retirement age for women
working in special occupations (flight stewardesses); (d) nursery room; (e)
maternity leave benefits; (f) battered woman leave; (g) solo parent leave; (h)
special surgical leave; (i) family planning services; (j) not to be discriminated in
pay, employment opportunity, hiring or dismissal on account of sex; and (k)
prohibit a woman from getting married.
ANTI-SEXUAL HARASSMENT ACT (RA NO. 7877)

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01. Purposes: (a) to uphold the dignity of every person and respect for every human
being; (b) enhance the development of human resources; (c) protect the dignity
work applicants, workers, applicants for employment, students and trainees.
02. Definition: To demand, request, or require a sexual favor from another,
regardless of whether th demand, request or requirement is accepted.
03. Where committed: Sexual harassment may be committed in (a) a work
environment (work related), (b) education environment, and (c) training
environment.
04. Who may commit sexual harassment:
In a work environment by:

a. Supervisor; b. agent or employer’s representative; c. manager; d. employer;
and e. employee.
In an education environment by:

a. Teacher; b. Instructor; and c. professor.
In a training environment by:

a. Coach; and b. trainor
- It can also be committed by any person who has moral authority or ascendancy
over another; and
- It can also be committed by a person who directs or induces another to commit
sexual harassment or cooperates in its commission.
05. How sexual environment is committed in a work environment:

a. sexual favor is demanded or required as a condition to hiring;
re-employment; continued employment; or granting promotion,
privileges or favorable compensation;
b. the refusal to accede to the demand results in discrimination or
diminishes employment opportunities;
c. harassment impairs rights and privileges of employee protected
by labor laws; or
d. harassment creates a hostile and offensive environment for the worker.
06. How sexual harassment is committed in an education or training

environment:
a. against one who is under the care or supervision of the offender;
b. against one whose education or training is entrusted to the offender;
c. when the sexual favor is demanded in exchange to the giving
of a passing grade, honors, allowance or other benefits; and
c. results to an offensive and hostile environment.
07. It is the duty of the employer or head of office to create a COMMITTEE ON

DECORUM to investigate sexual harassment cases.
08. Penalty: Imprisonment of 1 month nor more than 6 months, or a fine of not less
than P10,000.00 nor more than P20,000.00, or both fine and imprisonment at the
discretion of the court.
09. Online Sexual Harassment (Sec. 12, Art. II of Republic Act No. 11313 or the
“Safe Spaces Act of 2018” approved into law on April 17, 2018, states that: “12.
Gender-based Sexual Harassment – x x x includes acts that use information in
terrorizing and intimidating victims through physical, psychological and emotional
threats, unwanted sexual misogynistic, transphobic, homophobic and sexist
remarks and comments online whether publicly or through and direct messages ,

17
invasion of victims privacy through cyberstalking and incessant messaging and

uploading and sharing without consent of the victim, any form of media that
contains photos, voice or videos, or any information online, impersonating
identities of victims online or posting lies about victims to harm their reputation, or
filing false abuse reports to online platforms to silence victims.” (Ex. Sending nude
photos with sexual remarks.”
Employment of Minors
(Arts. 139-140, superseded by Sec. 12, Art. VIII, RA 7610
or the law on “Special Protection of Children against
Child Abuse, Exploitation & Discrimination Act)
01. Who is a child? Any person under 18 years of age.

02. Define Child Labor – Any work that subjects the child to:
(a) exploitation; or
(b) is harmful to his/her health; or (c) harmful to his safety; or
(d) harmful to his physical, mental or psychological development.
03. Who is a Working Child – A working child is:
a. A child below 18 years of age and is engaged in work that does not
constitute child labor; or
b. A child below 15 years of age:
– who is engaged in work where he/she is under the direct responsibility of
his/her parents or legal guardian and where only members of the family are
employed; or
– whose participation in a public entertainment or information is essential.
04. General rule: A child under 15 years of age shall not be employed.
Exceptions:
- A child who is engaged in a work under the direct responsibility of his/her
parents or guardian and where only members of the family are employed.
Conditions: (a) work does not endanger his life, safety, health, morals and
normal development. and (b) the parent or guardian shall provide the child with
at least primary and/or secondary education.
- A child who is employed in public entertainment or information through
radio, cinema, theatre, television or other firms of media. Conditions: (a)
employment contract must be concluded by the child’s parents or legal
guardian with the express agreement of the child and approval of the DOLE;
(b) the employer shall protect health, safety, morals and child’s normal
development; and (c) child shall be provided with at least elementary or
secondary education.
05. Working hours of a working child
a. below 15 years of age – not more than 4 hours a day; not more than 20
hours a week; shall not be allowed to work from 8 p.m. to 6 a.m. the next
day;
b. 15 years old and below 18 – not more than 8 hours a day; not more than
40 hours a week; shall not be allowed to work from 10 p.m. to 6 a.m. the
next day beyond 40 hours a week.
06. Ownership of working child’s income.
a. child’s earnings shall belong to him/her to be administered by
his/her parents or guardian; his/her earnings shall primarily
be for his/her education and skills development, and
secondarily for the collective needs of the family of not more
20 % of the child’s earnings.
b. where the income of the working child amounts to at least P200,000.00

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annually the parent or guardian shall set up a TRUST FUND of at least

30% of his/her income in order to preserve a portion of the child’s
income. The parent or guardian shall render a semi-annual accounting
of the child’s earnings to the DOLE.
07. Prohibitions: No child shall be employed as a model in any advertisement
promoting alcoholic/intoxicating drinks, tobacco, gambling, violence or
pornography.
SOCIAL SECURITY SYSTEM

RA No. 1161 as amended
01. Purpose: To provide social security protection to members and beneficiaries

against the hazards of disability, sickness, maternity, old age, and other
contingencies resulting to loss of income.
02. Covered employer: any person who carries on a business in the Philippines,
except the government or its subdivisions and instrumentalities.
03. Covered employee: any person who performs services for the employer and
receives compensation by virtue of an employee-employer relationship.
04. Self-employed – A person whose income is not derived from employment, shall
be the employer and the employer at the same time.
05. Employment – service rendered by an employee for his employer.
06. Excluded employment – (a) purely casual; (b) services in connection with an alien
vessel; (c) employment in the Philippine Government; (d) employment in foreign
governments and international agencies.
07. Primary Beneficiaries :
a. spouse until she/he remarries; b. legitimate child;
c. legitimated child; d. legally adopted child; e. illegitimate child
(50% of the share of b, c and d; 100% in the absence of b, c and d.)
Secondary Beneficiaries:
a. parents.
Designated Beneficiary:
a. in the absence of all the above, any person desjgnated by covered
employee.
08. Covered contingencies: retirement, death, disability, injury, sickness.
09. Compulsory Coverage:
a. all employees not over 60 years old and their employers;
b. domestic helpers;
c. self-employed persons (farmers, fishermen actors, actresses,
self-employed professionals, partners, single proprietors, etc.)
10. Voluntary Coverage:
a. spouses who are full time housekeepers
b. Filipinos working abroad for foreign-based employers; and
c. self-employed without income for a certain month.
11. Coverage by Agreement: foreign governments and international agencies
employing workers in the Philippines by agreement with the
Philippine government.
12. Effective Date of Coverage:
a. employer – 1st day of operation;
b. employee – 1st day of employment; and
c. self-employed – upon registration with the SSS.
13. Pension benefits – upon reaching age 60 and is separated from
employment or has ceased to be employed; upon reaching the age of 65..
14. Retirement benefits. Member must have paid at least 120 monthly
contributions.

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15. Death Benefits – must have paid at least 36 contributions; benefits

payable to beneficiaries.
16. Permanent total disability (complete loss of sight of both eyes,
paralysis of both limbs, loss of both limbs above the ankle,
brain injury, etc.) – payable to the member
17. Sickness Benefits – sick leave 3 days or more – 120 days
18. Funeral Benefits – P12,000.00 – cost of funeral expenses
19. Burial Benefits – P20,000.00 – to whoever spends for burial
P13th Month Pay

(Presidential Decree 851)
01. Definition: 13th month pay is equivalent to not less than 1/12 of the basic
wage of an employee within a year.
02. Meaning of Basic Wage: all earnings paid by the employer to the employee but
does not include: (a) allowances, (b) profit sharing payments; and (c) overtime
pay.
03. Covered employers: All employers, except: (a) employers suffering
substantial losses; (b) non-profit institutions whose income have substantially
declined by 40%; (c) the government; (d) employers already paying their
employees 13th month pay or its equivalent (Christmas bonus not less than
1/12); (e) house helpers; (f) employers of those paid on purely commission
basis, task basis, boundary basis.(Note: An employee who is paid a fixed or
guaranteed wage plus commission is entitled to 13th month pay.)
04. Covered employees: (a) All rank and file employees regardless of the
amount of their basic wage who have rendered at least one month of service
within the year; (b) Private school teachers, faculty members of private colleges
and universities if they have rendered service for at least one month within the
year; and (c) resigned or employees separated from work before the time for
payment of the 13th month pay in proportion to the time they have worked.
05. Time of payment: (a) not later than December 24; or (b) ½ before the
opening of the school year and the other half before December 24.
06. 14th Month Pay: It is a management prerogative. It is gratuitously given akin
to a bonus. It is not legally demandable.
Labor Relations
01. (Art. 212) Labor Organization or Union - an association of employees for the
purpose of collective bargaining or negotiating with the employer concerning
terms and conditions of work.
02. Kinds of Labor Unions:
(a) Independent Labor Union – It is an association of employees in a
workplace which is not a member of a national union (federation of unions);
(b) Affiliated Labor Union – It is a local labor union which is a member or
affiliated with a national union (federation of unions); and
(c) National Union – It is a federation of at least ten (10) affiliated local
unions.
(d) Legitimate Labor Union – Is a labor union which is duly registered with
the DOLE.
(e) Company Union – employer assisted labor unions.
03. Labor Dispute – (a) controversy concerning compensation (ex.
underpayment), benefits (ex. non-payment of holiday pay), or working
conditions (ex. hazards) – known as LABOR STANDARDS DISPUTE; or (b)
controversy regarding violations of the right to self-organization (unfair labor

20
practice) or controversy regarding the proper bargaining representative of the

workers – known as LABOR RELATIONS DISPUTE.
04. Define Right to Self-Organization – It is the right of workers to (a) organize,

(b) join, or (c) assist in organizing a labor union.
05. Purposes of the Right to Self-Organization – (a) collective bargaining; or
(b) mutual aid or protection.
06. Define Collective Barganing – It is the process where the employees, thru
their bargaining representative (labor union) and the employer, meet in good
faith for the purpose of (a) bargaining and negotiating an agreement with
respect to wages, hours of work and other terms and conditions of work; and (b)
proposals for solving labor disputes.
07. Define Collective Bargaining Agreement – The written contract executed by
and between the employer embodying the terms and conditions of work agreed
upon during the collective bargaining process.
08. Exclusive Bargaining Representative – It is a labor union duly registered
with the DOLE and certified by the Bureau of Labor Relations as the exclusive
bargaining representative of the majority of ALL the workers in an appropriate
bargaining unit (or group of workers in a work place having a common
interest), and recognized by the employer as the representing the majority of
the workers in an appropriate bargaining unit.
Adversarial Modes of Solving Labor Disputes
01. Strike – workers temporarily stop working as a consequence of a labor dispute.

02. Lockout – temporary refusal of the employer to furnish work as a consequence
of a labor dispute.
Non-Adversarial Modes of Solving Labor Disputes
01. Conciliation - A process of peacefully solving a labor dispute where a

disinterested third person (conciliator) is requested by the employer and
employees aids the parties to reach an agreement by cooling tempers.
02. Mediation – A process of peacefully solving a labor dispute where a
disinterested third party (mediator) listens and studies the respective position
and arguments of both sides, and afterwards gives a proposal to disputants on
how to solve the dispute. He mediator does not render a decision but only makes
a proposal which the disputants may or may not accept.
03. Arbitration. Kinds:
(a) Voluntary Arbitration – It is a process of peacefully solving a labor
dispute wherein the disputants (employer and employees) voluntarily agree
to submit to an impartial third person (arbiter) who shall study the
respective positions evidence and arguments of the disputants and after
study renders a decision. The arbiter’s decision is binding and enforceable
upon the disputants.
(b) Compulsory Arbitration – It is a process where the disputants in a labor
dispute involving an industry which is indispensable to and affects
the interest of the nation, are compelled by force or operation of law to
submit their controversy for resolution to a government officer or agency
(Office of the President, DOLE, NLRC).
04. Compromise Agreement – A give and take.
National Labor Relations Commission (NLRC)

Labor Arbitters & Provincial Extension Units

21
01. NLRC (Art. 220) – The principal administrative government agency task with
hearing and deciding labor disputes
02. Composition of the NLRC:
(a) 1 Chairman and 23 members;
(b) 8 members shall be chosen from among the nominees of the workers sector;
8 members shall be chosen from among the nominees of the employers
sector;
(c) The Chairman and the remaining 7 members shall be chosen from the
Public sector;
(d) the Commission may sit en banc or in 8 divisions composed of 3 members
each;
(e) the Commission, 1st, 2nd, 3rd, 4th, 5th and 6th Divisions shall have their main
offices in Metropolitan Manila;
(f) the 7th Division shall have its office in the City of Cebu; and
(g) the 8th Division shall have its office in Cagayan de Oro City.
03. The Commission shall have Regional Branches or Provincial Extension Units.
04. Labor Arbiters in every region to hear labor disputes.
Unfair Labor Practice
01. Unfair Labor Practice – is an act committed by either an employer or a labor

union which violates the twin rights of the workers to (a) self-organization and (b)
collective bargaining by: INTERFERING, RESTRAINING, COERCING (prohibit by
force) in the exercise of these rights. Ex. The employer requires employees not to
join a labor union as a condition for employment or continuing employment. Ex. A
labor union restrains or prevents a worker from joining a labor union of his choice.
Kinds of Strike
01. Legal Strike – one called for a purpose allowed by law and conducted peacefully.
02. Illegal Strike – one called for a purpose not allowed by law, or conducted
purpose allowed by law but conducted violently and in adisorderly manner.
03. Economic Strike – one staged by the workers to demand wage increase or to
force the employer to grant them economic concessions not required by law.
04. Unfair Labor Practice (UPL) Strike – one called to protest against the acts of the
employer in interfering with rights of the workers to collective bargaining and self
organization.
05. Wildcat Strike – one staged without notice to the DOLE.
06. Cause Oriented Strike – one staged to make a stand on national of political
issues.
07. Requisites of a legal strike:
(a) must be based on Unfair Labor Practice (ULP) or economic demands;
(b) 30 days notice before the intended date of strike plus 7 days cooling-off
period in case of an economic strike; and
(c) 15 days notice before the intended date of strike plus 7 days cooling-off period.
Laws Governing Labor-Management

Relationship in the Government Service
01. The following laws govern labor management relationship in the

government service:
(a) The Civil Service Law;

22
(b) Executive Order No. 180 (1987) entitled “Providing Guidelines for the Exercise of
the Right to Organize of Government Employees, Creating a Public Sector
Management Council, and for Other Purposes”.
02. The employees of the government are the following:
(a) those employed by the National Government
(b) those employed by the Local Government Units (LGUs), i.e. Provincies, Cities,
Municipalities and Barangays; and
(c) Government-owned and controlled corporations created by Special Laws. Ex.
GSIS, SSS.
03. Right of Government Employees to Self-Organization: Art. IX-B, Sec. 2 {5}
and Executive Order 180 guarantee the right of government employees to self-
organization to advance their interest.
04. Government Employees who do not have the right to self-organization
because of the nature of their work:
(a) Members of the Armed Forces;
(b) Police Officers and policemen;
(c) Jail Guards; and
(d) Firemen.
05. Prohibited activities of government employees:
(a) they cannot go on strike; and
(b) they cannot perform concerted activities like picketing.
However, government employees may, during non-working hours or while
off-duty, peaceably assemble to make known their grievances and seek
solutions to these.
Termination of Employment
O1. Security of Tenure – Right granted by the Constitution of the Philippines to the
worker, that the employer shall not terminate the services of the worker except for
(a) just cause and (b) observance of due process of law (an opportunity to explain
one’s side). The right covers permanent employment (regular) and temporary
employment (non-regular).
02. Illegal Dismissal – Termination of employment in violation of the worker’s right
to security of tenure.
03. Effects of Illegal Dismissal. The worker is entitled to: (a) reinstatement; and
(b) payment of backwages.
04. Reinstatement – The employer is admitted back to work.
05. Instances when separation pay is given to the worker in lieu of
reinstatement:
(a) reinstatement no longer feasible because of the long passage of time and
substantial changes in employment realities;
(b) reinstatement is inimical to the interest of the employer;
(c) worker’s former position no longer exists;
(d) closure of employer’s business;
(e) worker has attained retirement age;
(f) abolition of worker’s position;
(g) injury or illness of the worker; and
(f) STRAINED RELATIONS between the employer and the employee.
06. The DOCTRINE OF STRAINED RELATIONS – When the employer and/or the
employer can no longer trust each other and their relationship has become very
unfriendly that reinstatement is no longer prudent and feasible.

23
07. Backwages – monetary relief paid to the worker to compensate earnings lost by
the worker from the time that the worker was illegally dismissed to the time that
he is actually reinstated. Included in computation of backwages are:( (a)
13th month pay; (b) transportation allowance; and (b) service incentive leave.
08. Constructive Dismissal - Dismissal of the worker in disguise. Acts done by the
employer amounting to dismissal but is made to appear that it is not. Acts done
by the employer against the worker are so unbearable, insensible and
discriminatory that the worker can no longer work leaving the worker no option
but to forego with his continued employment.
Termination by Employer
(Just Causes of Dismissal by Employer)
01. Just Causes: (a) Serious Misconduct; (b) Willful Disobedience or Insubordination;
(c) Gross and habitual neglect of duties; (d) Fraud or willful breach of trust; (e)
Commission of a crime by the worker against the employer or immediate members of
his family or employer’s representative; and (f) analogous cases.
Serious Misconduct
O1. Misconduct – a forbidden act or violation of a established rule of action

committed willfully and wrongful intent.
O2. Requisites:
(a) the misconduct must be serious or grave in character;
(b) the misconduct relates to the performance of the worker’s duties;
(c) the misconduct shows that the worker is unfit to continue working for the
employer; and
(d) the misconduct is performed with wrongful intent.
03. Examples: sexual harassment; uttering insulting, obscene words against a
Superior, falsification of time records, sexual intercourse inside company premises,
Serious immorality.
Willful Disobedience
01. Willful Disobedience (Insubordination) – a wrongful, deliberate or

intentional refusal to perform one’s duties.
02. Requisites:
(a)The disobedience is intentional characterized by a perverse attitude;
(a) The order violated must be lawful;
(b) The order violated was made known to the worker; and
(c) The order violated must be in connection with the worker’s duties.
O3. Examples: refusal to answer a memo to explain, refusal to undergo random drug
testing, refusing to perform overtime work to meet production deadlines.
Gross and Habitual Neglect of Duty
01. Negligence – lack of care or failure to observe the diligence that a prudent
person must ordinarily observe in the performance of his own affairs.
02. Habitual – repeated failure to perform one’s duties over a period of time.
03. Requisites:
(a) The negligence must be gross or serious;
(b) The negligence is committed repeatedly; and
(c) The negligence must be work related.
04. Examples: habitual tardiness, absenteeism, abandonment of work.

24
05. Requisites of ABANDONMENT: (a) absence from work without any justifiable
cause; (b) overt acts showing clear intention on the worker to abandonment
of work; (c) due process must be observe. How? a first written notice to the
worker to explain why he should not be declared to have abandoned his work; and
a second written notice to inform the worker of the employer’s decision to
dismiss him on the ground of abandonment.
06. Examples of Abandonment. An illegally dismissed employee fails to comply
with the order for his reinstatement, working in another company, worker fails to
report for work after the expiration of his leave of absence.
Fraud or Willful Breach of Trust
01. Fraud – willful or intentional evasion of a duty or an obligation. Fraud will

necessarily result to breach and loss of trust or confidence.
02. Requisites of fraud:
(a) Fraud is committed against the employer or his representative; and
(b) It is committed in connection with the employee’s work.
03. Examples of fraud: Falsification of time record; theft of employer’s
property; unauthorized used of company vehicle.
04. Requisites of breach of trust as ground to terminate:
a) employee holds a position of trust;
b) employee commits a real act of betrayal;
c) the breach of trust is willful; and
d) the breach of trust must be in connection with the employee’s work.
05. Two examples of position of trust:
(a) managerial employee;
(b) employees who handle amounts of money or property (cashiers, property
custodians.
Commission of a Crime
01. Requisites: (a) a crime is committed by the employee; (b) the crime is committed
against the employer, or immediate members of employer’s family or employer’s
duly authorized representative.
Analogous Cases
01. Examples: violation of company rules; drunkenness; gross inefficiency;

illegaly diverting employer’s products; attitude problem.
Standards of Due Process

To be Observed by Employer in Termination Cases
01. Twin Notice Rule – The employer is required to furnish an employee who
is to be dismissed two written notices before termination.
(a) First Written Notice - to inform the employee of the charges against him
and giving him an opportunity to answer followed by a Conference where the
employee is given the opportunity to explain his side.
(b) Second Written Notice – to inform the employee of the employer’s decision.
Requisites of Preventive Suspension
01. An employee may be placed under preventive suspension:

(a) if the evidence of guilt is strong;

25
(b) employee’s continued stay during the investigation disturbs

the normal operation of the business;
(c) employee’s continued stay poses a serious threat to the life or
property of the employer or co-employees; and
(d) not to last for more than 30 days.
02. Instances when hearing is not required:

a) Employee admits guilt;
b) Resignation by the employee;
c) Completion of project employment;
d) Termination of seasonal employment;
e) Termination of contractual employment;
f) Expiration of a probationary employment; and
g) Termination due to closure of work by order of the government.
Other Authorized Causes of Termination of Employment

By the Employer (Arts. 298-297)
01. Automation or Robotics - means the installation of labor-saving devices.

(c) Worker is entitled to a separation pay of 1 month pay or at least 1 month
pay for every year of service whichever is higher, a fraction of at least 6 months
shall be considered as 1 whole year.
02. Redundancy – means the number of workers are in excess of what is needed by
the business.
(a) Reorganization or restructuring the work force is a labor-saving device for a
more economical and effective management to save the employer from substantial
business losses.
(b) Redundancy must be real. Employer must prove the existence of the
redundancy by submitting a staffing pattern and job description of the created
positions to justify dismissal of affected workers.
(c) Separation pay – same as in automation.
03. Retrenchment (downsizing) – means the employer reduces the number of

workers to stave off further business losses.
(a) existence of poor return of investment;
(b) the purpose is to cut production expenses in terms of salaries to prevent
bankruptcy;
(c) “Last in, First Out” rule – if there are 2 or more occupying the same position
or same line of work, the last one employed shall be the first one to go;
(d) if not due to serious losses separation pay – 1 month pay or ½ month pay
for every year of service whichever is higher, a fraction of at least 6 months shall be
considered as 1 year; (e) if due to serious business losses, no separation pay.
04. Closure of business (Cessation of business operations) - means the complete or

partial shutdown of business operations.
(a) purpose is to stave off employer’s financial ruin;
(b) if not due to serious business losses separation pay – 1 month pay or ½
month pay for every year of service whichever is higher, a fraction of at least 6
months shall be considered 1 whole year;
(c) if closure is due to serious business losses, no separation pay;
(d) if closure is due to government action, no separation pay.
05. Disease.

26
Requisites:
(a) worker is suffering from a disease;
(b) worker’s continued employment is prohibited by law, prejudicial to his health, or
prejudicial to the health of his co-worker;
(c) certification by a competent government doctor that the disease cannot be cured
within a period of 6 months even with proper medical treatment; (d) employer must
give written notice of termination to the employee concerned and the DOLE at least
30 days before the effectivity of the termination; (e) separation pay of at least one
month salary or ½ month salary for every year of service whichever is higher, a
fraction of at least 6 months being considered as 1 year.
Termination by Employee
01. Dismissal – termination of employment by the employer.
02. Resignation. It may be voluntary or involuntary.
03. Voluntary resignation – intentional act of the employee in giving-up or

relinquishing his employment relationship with his employer for personal reasons
which to the employee are more important than his employment. Employee is not
entitled to separation pay. Once accepted, cannot be withdrawn without
employer’s consent.
04. Involuntary resignation – akin to constructive dismissal.
05. Termination by the employee may be (a) without just cause; or (b) with just
cause.
06. Requirements of termination without just cause:

(a) notice of resignation by employee to employer;
(b) notice must served or given to the employer at least 1 month in advance;
(c) failure to give notice will render employee liable for damages.
07. Grounds for termination with just cause:

(a) serious insult by the employer or his representative on the person
or honor of the employee;
(d) inhuman and unbearable treatment by the employer or representative
of the employee;
(e) commission of a crime by the employer or his representative against the
employee or the immediate members of the employee’s family; or
(f) analogous circumstances.
08. Employment is not deemed terminated in the following cases:

(a) suspension in good faith (bona fide) of business operation for a period not
exceeding 6 months; and
(b) fulfillment by the employee of a civic or military duty.
Retirement (Art. 302)
01. Art. 302 – Applies to all employees of the private sector.

02. Art. 302 – Does not apply: (a) to employees of the government and its political
subdivisions; and (b) eomployees of retail and service establishments employing
not more than 10 employees.

27
03. Retirement – It is a voluntary agreement between the employer and the

employees whereby the latter (employees) agree after reaching a certain age,
consents to severe or end his employment with the former (employer).
04. Retirement age:
(a) age fixed or specified or agreed upon in the CBA;
(b) in the absence of an agreement :
- optional - 60 less than 65 years, but the employee must have served
for at least 5 years; and
- compulsory – 65 years.
(c) Mining employees - for underground and surface mining employees upon
reaching the age of 50 years or more but not beyond 60 years.
05. Retirement Pay – at least ½ month salary for every year of service, a fraction of at
least 6 months being considered as 1 year.

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1

Notes in Labor Laws & Social Legislation

Atty. Alfredo F. Benzon

- allow workers to participate in planning, implementing and evaluating safety

Atty. Alfredo F. Benzon

Atty. Alfredo F. Benzon

and labor relationship and assists executives in planning, deciding,

01. State policies on Employment (Art. 12)

Atty. Alfredo F. Benzon

(a) Seaman or mariner – 80% of basic salary;

Atty. Alfredo F. Benzon

(e) Domestic and Other service workers – 50% of basic salary;

Atty. Alfredo F. Benzon

03. Requisites of Simple Illegal Recruitment – (a) not constituting economic

(a) When committed or carried out by a syndicate of 3 or more recruiters

(b) When committed or carried out against 3 or more persons, individually

Employment of Non-resident Aliens

04. The TECHNICAL EDUCATION& SKILLS DEVELOPEN AUTHORITY (TESDA).

Types of Special Workers

Atty. Alfredo F. Benzon

Atty. Alfredo F. Benzon

Atty. Alfredo F. Benzon

18. (Art. 88) Undertime not offset by overtime.

Regular & Special Holidays

06. (Arts. 93-94) Additional compensation for work done on:

Atty. Alfredo F. Benzon

- paid at least 3 monthly contributions in the 12-month period immediately

(i) requirements for female workers in the government or public sector

Service Charges & Pooled-Tips

Atty. Alfredo F. Benzon

Minimum Wage Rates (Regional Wage Boards)

Atty. Alfredo F. Benzon

Atty. Alfredo F. Benzon

01. (Art. 106) Types of contractors

a. Job-Contracting/Sub-contracting - Parties are: the principal , contractor/sub-

a. It is an arrangement wherein the principal assigns to a job-contractor the

03. Characteristics of Labor-only Contracting

a. The contractor recruits workers to perform a work for the principal;

ANTI-SEXUAL HARASSMENT ACT (RA NO. 7877)

Atty. Alfredo F. Benzon

In a work environment by:

In an education environment by:

In a training environment by:

05. How sexual environment is committed in a work environment:

06. How sexual harassment is committed in an education or training

07. It is the duty of the employer or head of office to create a COMMITTEE ON

Atty. Alfredo F. Benzon

invasion of victims privacy through cyberstalking and incessant messaging and

01. Who is a child? Any person under 18 years of age.

Atty. Alfredo F. Benzon

annually the parent or guardian shall set up a TRUST FUND of at least

SOCIAL SECURITY SYSTEM

01. Purpose: To provide social security protection to members and beneficiaries

Atty. Alfredo F. Benzon

15. Death Benefits – must have paid at least 36 contributions; benefits

P13th Month Pay

Atty. Alfredo F. Benzon

practice) or controversy regarding the proper bargaining representative of the

04. Define Right to Self-Organization – It is the right of workers to (a) organize,

Adversarial Modes of Solving Labor Disputes

01. Strike – workers temporarily stop working as a consequence of a labor dispute.

Non-Adversarial Modes of Solving Labor Disputes

01. Conciliation - A process of peacefully solving a labor dispute where a