Art.
82 provides who are applicable under the labor code in
terms of overtime pay, premium holiday pay, rest day and
service incentive leave, it also provides who are excluded
from the coverage:
1. Government employees who are covered under the
Civil Law. They have their own benefits in said law.
2. Managerial Employees
2 kinds:
a. Managerial who REALLY MANAGE- conditions
present:
1. Management of the establishment they are
employed of
2. Regularly direct the work of the employee
3. Have the AUTHORITY TO HIRE OR FIRE
EMPLOYEES or promote or any other change in
the status of the employee.
b. MEMBERS OR OFFICERS of the managerial staff-
conditions present:
1. Performance of work directly related to
management policies of their employer.
2. Regularly exercise discretion and independent
judgment
3. Assists the managerial employee
4. Do note devote more than 20% of their hours
worked in a work week to activities which are not
directly and closely related to the performance of
the work.
CASES: NATIONAL SUGAR VS NLRC – Supervisors or supervisory
employees are classified as officers or members of the managerial
staff thus not entitled to overpay, rest day etc.
DELA CRUZ VS NLRC – Being a captain of the ship even
unlicensed are considered as officers or members of the managerial
staff.
c. Field Personnel – conditions:
1. Non-agricultural filed personnel
2. Regularly perform their work away from the
principal or branch office
3. Actual hours of work in the filed cannot be
determined
PRINCIPLES:
 Performance of their job or service is not supervised by
the employer or his representative
 Employee is far away from the principal office and whose
hours and days of work cannot be determined.
CASES: SAN MIGUEL VS DEMOCRATIC
 the 8-hour labor law is only applicable where an employee
or laborer is paid on a monthly or daily basis or is paid a
monthly or daily compensation, if he is made to work
beyond the 8-hour limit additional compensation should be
given.
 8-hour labor law is no applicable to an employee paid on a
piece-work or pakiao basis because they are paid based on
the gross receipts per day.
 The sales routes are so planned that they can be complied
within 8 hours at most.
 The amount of compensation they receive is uncertain is
depending upon their individual efforts or industry
 Night shift differentials shall be granted if there are night
duties made. It is NOT RETROACTIVE and can only be
given during the date of demand.
 Commonwealth No. 444 strictly provides that all employee
who are being rendered to work on Sundays shall be given
an additional 25% of compensation. Except when such
work is with regard to public utilities who perform public
service.
UNION FILIPRO VS VIVAR – the sales personnel were considered
as field personnel because the company has no way in determining
whether or not the sales personnel are doing their work, going from
one place to another.
 Filed personnel are those who regularly perform their
duties away from the principal place of business of the
employer and whose actual hours of work in the field
cannot be determine with reasonable certainty.
AUTO BUS VS BAUTISTA – Service incentive leave shall not be
applied to employees classified as field personnel.
 Drivers of the bus are under constant supervision while in
the performance of their work. He cannot be considered a
field personnel thus are regular employees who perform
task usually and necessary and desirable to the usual
trade of the business.
 They are entitled to the service incentive leave.
 The 3 -year prescriptive period commences when the
employer refuses to pay the monetary equivalent upon the
demand or termination of the employee’s services.
DASCRO VS PHILTRANCO- The definition of a field employee is
not concerned with the location where the employee regularly
performs his duties but also with the fact that the employees
performance is UNSUPERVISED BY THE EMPLOYER.
 The checkers placed on very bus stop are the supervisors
who monitor the bus drivers performance.
 Bus drivers are required to be in a specific place in a
specific time.
d. Employers who hire members of their family
who are DEPENDENT on him for support.
e. Domestic Helpers and Persons in the Personal
Service of Another
f. Workers PAID BY RESULTS as determined by the
Secretary of Labor
Refers to: Piece-work, pakiao, takay
2 kinds of workers:
1. Persons/ Employees paid on a piece-rate basis –
per piece ang bayad
2. Persons/ Employees paid by results – pakiao
basis because they do not have hours of work
but on how many can be finished
Art. 83 – Normal hours of work shall not exceed 8 hours a
day (as prescribed under the 8-hour labor law)
Hours of work refers to 24 hours in a day.
Art. 84 – Hours worked includes:
a. All the time during the employee is required to be on duty
or to be a working place
b. The time when the employee is being suffered to work.
c. Rest periods not exceeding 20 minutes shall be COUNTED
AS HOURS WORK
When will waiting time be considered as compensable working
hours? – if the waiting time is for the benefit of the employer OR
for the employee.
ENGAGED TO WAIT – waiting time is compensable if such waiting
is integral part of his work or if the employee is required or engaged
by an employer to wait.
WAITING TO BE ENGAGED – waiting time is NOT COMPENSABLE
because you are free to do anything
COFFEE BREAKS- are compensable as long as you do not go
outside of the working place
REST PERIODS- should not exceed 20 minutes
 Working while sleeping is compensable if because they are
still engaged to work. Idle time that can be subject to
interruption
ON-CALL ARRANGEMENTS – compensable if required to remain
on call on the employer’s premises or outside the employer’s
premises but so close to the employer’s premises so that he cannot
use his time effectively for his purposes.
TRAVEL TIME – time spent going to or from work is not
compensable unless there is an emergency call to the employee,
travel is part of the work, construction sites, travel away from home
to work.
LECTURES, MEETINGS, TRAINING PROGRAMS – not
compensable if:
a. Attendance is outside of the employees regular working
hours
b. Attendance is voluntary
c. Employee does not perform any productive work during
such attendance.
CASES: PAN AMERICAN VS PAN AMERICAN – The 1-hour period
should be considered as work time because they are required to
standby for emergency work.
 If the services are needed even if they have not yet
finished eating they must tend to the need of the
employer.
SIBAL VS NOTRE DAME- Semestral break are compensable
working hours but only for regular teachers.
 Burden of proof to prove that the employee worked less
than 8-hours rests upon the employer.
Art. 85 – Meal periods or lunch breaks are not compensable
Employers may require a meal period of not less than 20 minutes
provided that such meal period is compensable and on the following
conditions:
a. The work is NON-MANUAL WORK in nature or does not
involve strenuous physical exertion
b. Establishment regularly operates not less than 16 hours a
day
c. Urgent work to be performed on machineries to avoid
serious loss which the employer would suffer
d. Work is necessary to prevent serious loss of perishable
goods
 Requested shortened meal periods by employees are not
compensable because it was them who made the request,
employees still rendered their work in 8 hours.
CASES: NDC VS CIR -The meal periods were compensable as
overtime pay because the work was continuous and did not permit
employees and laborers to rest completely
SIME DARBY VS NLRC – the new lunch schedule made by an
employer is not unfair labor practice because:
1. Employers are given the prerogative to adjust work
schedules for the efficient conduct of work
2. New lunch schedule was even more advantageous to the
employees for it gave them more time to rest.
NIGHT SHIFT DIFFERENTIAL
 Additional 10% of work compensation is given if
the work is between 10pm to 6am
 Night shift is more dangerous compared to day
shift
 Night shift differential is different from overtime
pay so each must be separately paid.
CASE: MERCURY DRUG VS DAVAO – Under RA 875 provides that
work done at night should be paid more than work done at daytime.
 Waiver rule is not applicable because compensation for
nighttime work is founded on public policy hence, it cannot
be waived.
 Burden of proof rests upon the party who will suffer if no
evidence is presented of the payment.
Art. 87 – Overtime work is work performed beyond 8 hours a
day within working day provided that the employee is paid.
 First 8-hours work + 25% = compensation
 First 8 hours work during the holiday + 30% =
compensation.
OVERTIME PAY -additional pay for service or work rendered or
performed in excess of 8 hours a day working day.
NIGHTSHIFT DIFFERENTIAL – payment for work during the
night.
 These 2 are separate and distinct thus an employee is
entitled to both compensations.
PREMIUIM PAY- is the additional compensation for work
performed WITHIN 8 HOURS on NON-WORKING DAYS.
CASES: PNB VS NLRC – COLA and longevity pay is not included in
the computation of overtime pay. Because overtime pay is only
given for the work beyond contemplated in the employment
contract.
 It would be then a violation of the CBA between the
parties.
 Commonwealth Act 444 does not required that COLA
should be included in the computation.
 Reason why an employee is compensated for overtime
work is that he is made to work longer with his agreed
compensation. The effects of working beyond is multi-
faceted.
 Overtime pay must not exceed what Art. 87 already states
unless there is a CBA
 Overtime and night differential are different
compensations to be paid.
BISIG VS PHILIPPINE REFINING - Christmas bonus is not
included in the CBA entered into between the parties.
Nawasa Doctrine does not limit the computation of overtime pay
to be based solely on the employee’s regular wage or salary. What
is important is that the resulting computation must exceed the 25%
statutory requirement. From this the CBA is valid because it gives
additional 50% to the compensation given.
General Rule: Bonuses and Fringe benefits are not included in the
computation of the overtime pay.
Exception: there is a CBA allowing such benefits to be included.
REOTAN VS NATIONAL RICE- if the employers allowes the
employee to work beyond the 8-hour limit even if there is a
memorandum that requires the approval of the management for the
overtime pay, the employee is still entitled to the overtime pay.
If the overtime work is voluntarily given by the employee there is
no
LUZON STEVEDORING CO. INC VS LUZON MARINE
DEPARTMENT UNION- Seamen are not entitled to overtime pay.
 A laborer need not leave the premises whether it’s a
factory shop or boat for rest day to be counted
STOLT NIELSEN VS NLRC - overtime pay to seamen must be
based on the actual work done on board considering they are on
board for 24 hours straight. SC required proof that during the
alleged overtime rendered there must be actual work rendered for
the excess of 8 hours in that ship or vessel.
WILLIAM LINES VS LOPEZ – Seamen are not entitled to
premium pays because the nature of their work requires them to
stay at the ship even though Sunday or Legal Holiday.
The claim must only be for 3 years for money claims under sec. 7-A
of the 8-hour labor law.
Principle of estoppel and laches cannot be invoked against the
employees with regard to overtime pay and such overtime pay
retroacts to the day when the services were actually rendered.
There can be integration of overtime pay in the basic salary as long
as the following requisites are present:
1. There must be a clear written agreement between the
parties
2. It must knowingly and freely entered by the employee
3. It must be shown that the regular wage rate and overtime
pay if computed separately will be equal or higher to the
integration of both.
COMPRESSED WORK WEEK – the number of working days are
limited to 5-6 days BUT in a day the employees will render more
than 8 hours but he is not entitled to overtime pay.
Requisite for compressed work week:
1. Expressly and voluntarily supported by the majority of the
employees affected
2. With regard to firms that are hazardous there must be a
certification that work beyond 8 hours is still within the
limit or levels of exposures in accordance to occupational
safety and health hazards of DOLE.
3. The DOLE must be duly notified of this compressed work
week.
General Rule: Overtime pay cannot be waived
Exception: Compressed work week.
FLEXIBLE WORK ARRANGEMENT – alternative arrangements or
schedules other than the traditional or standard work hours,
workdays, and workweek for employees.
Effects of FWA :
1. Reduction of work days
2. Rotation of workers
3. Forced leave
4. Broken-time schedule
5. Flexi-holiday schedule
PURPOSE OF FWA :
A coping mechanism on the part of the employers and employees as
a better alternative than outright termination of the employees or
total closure of the establishment.
If FWA is not accepted by the employees the employers can
dismissed them for authorized cause and the employees will be
entitled to separation pay because of the valid reason of closure of
business establishment.
PHILIPPINE GRAPHIC ARTS VS NLRC – the decision to resort to
forced leaves is a management prerogative.
Forced leave arrangement is also valid if it was agreed upon by the
parties. This is a way to prevent losses on the part of the employer
but at the same time protecting the employees for them to still have
income.
WORK INTERRUPTIONS DUE TO BROWNOUTS
 Does not exceed 20 minutes = compensable
 Exceed 20 minutes = not treated as work hours provided
that the employees can leave their work and use their
time for their own interest.
 Days when work is not required and then no work could be
done because of lack of materials and among other
things= not considered working hours
 Scheduled power interruptions not compensable because
work may just be adjusted.
Art. 88 Undertime is not offset by overtime.
NWSA VS NWSA – the undertime should be deducted from the
accrued leave but pay the employee the overtime to which he is
entitled.
Undertime hours should not be offset against the overtime hours.
Employers use this kind of method to not pay the overtime to which
the law entitles an employee.
Art. 89 Employee required by the employer to perform
overtime work only on the following conditions:
1. Country is at war, national or local emergency
2. Prevent loss of life property or in case of imminent danger
to public safety caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic or other diseases or
calamity.
3. Wok is necessary to prevent loss or damage to perishable
goods
4. Necessary to prevent serious obstruction or prejudice to
the business or operations.
5. Overtime work is necessary to avail favorable weather or
environmental conditions where quality of the work is
relied upon
 Overtime work is obligation under this provision but only
when the following conditions are present.
 The overtime is compensable
 Waiver for compensation rendered on rest day is invalid
 Blue Sunday Law – rest days are during Sundays.
Art. 90 Computation of additional compensation
REGULAR WAGE X OVERTIME RATE = WAGE
Art. 91 Right to weekly rest day
 Rest period of an employee is NOT LESS THAN 24 HOURS
after every 6 consecutive normal working days
  Employer is the one who will schedule the weekly rest
subject to a CBA. However, employer will still respect the
preference of the employee based on religious grounds.
 General Rule: Employees preference must be respected
by the employer if it is based on serious grounds
Exception: Cause obstruction to the operation rest day
must be scheduled 2 months in accordance with the
preference of the employee.
SAN JUAN DE DIOS VS NLRC – the Secretary of Labor was wrong
to rule that personnel in subject hospitals and clinics are entitled to
a full week wage even they have only complete a 5 day work week
or 40 hours of work.
Art. 92 – Employer require work on a rest day: (conditions
the same with 89)
1. Actual or impending emergencies caused by Accident,
Fire, Flood, Typhone, earthquake, epidemic or other
Regular Working Holidays
disasters or calamity to prevent loss of life and property or
imminent danger to public safety
2. Urgent work to be performed on the MACHINERY,
 EXCEPTIONS: retail and service establishments regularly
employing less than 10 workers are not entitled to receive
holiday pay.
 Work done on a holiday is entitled to twice his wage.
 Purpose of the Holiday is to prevent diminution of the
monthly income earned by an employee on account of
interruption.
 Employees are still entitled to pay even if he would not
report to work.
 If a holiday falls on a rest day there is an additional 30%
of the employees regular holiday rate of 200%
 Where the holiday falls on a Sunday the following Monday
shall not be a holiday unless a proclamation is issued
declaring it a special day. IN order to be entitled for the
regular holiday pay even if you did not work on that day
you can still be entitled provided he is present on the next
working day.
1. New Year's Day

EQUIPMENT or INSTALLATION, to avoid serious loss to the 2. Maundy Thursday

employer.
3. Abnormal pressure of work due to special circumstances
3. The Day of Valor

4. PREVENT loss or damage to perishable goods 4. Good Friday

5. Nature of the work requires continuous operations and the
5. Labor Day
stoppage of work may result in irreparable injury or loss to
the employer 6. Eidul-Fitar Holiday
6. Under other circumstances determined by the Secretary of
7. Independence Day
Labor
8. Eid al-Adha (Feast of the Sacrifice)
IRR Book III Rule 3 (Same with Art. 92 except with )
9. National Heroes Day
1. Nature of the work that the employees have to work 10. Bonifacio Day
continuously for 7 days in a week or more in the case of
crew members of a vessel to complete a voyage and other 11. Christmas Day
similar cases. 12. Rizal Day

If there is work on a rest day but the circumstances mentioned

DOUBLE HOLIDAY RULE – 2 regular holidays on the same day.
under Art. 92 are not present the employee may work during rest
day on a voluntary basis and express his willingness through  No work only 200%
writing.  Working is 300%
 Work and rest day is 390% (30% each holiday and the
Art. 93 Compensation for rest day, Sunday or holiday work.
regular wage day)
A. Rest day-= Wage X 30%
CASES: INSULAR VS INCIONG –
B. Employees having no rest days and if they work on
Sundays or Holidays (presumed to be their rest day) =
Wage x 30%
C. Special non-working holiday + Employees scheduled rest SUCCESSIVE REGULAR HOLIDAYS
day = 30% +50%
 Genera Rule: Employee must work before the holiday
Special non-working days or special holidays: compensation otherwise he is not entitled to the unworked holiday pay.
is only 30%  An employee may not be paid for both holidays if he
absents himself from work on the day preceding the first
Ninoy Aquino Day holiday
 Unless he works on the first holiday he is entitled to the
1. All saints Day
second holiday.
2. Feast of Immaculate conception of mary
 If you work on the first holiday and not on the second
3. Last day of the year
holiday you are still entitled to the 200% and 100%
compensation
 If work is rendered on a Special Working holiday the
employee is only entitled to his daily wage. No premium ABSENCES
pay is required because this is considered as an ordinary
working day.  Employees are entitled to leave of absence with pay .
 Here, no work, no pay  Employees who are on leave of absence without pay on
D. CBA - the applicable rate agreed will be respected the immediately preceding a regular holiday may not be
PROVIDED that it is higher than the premium pay as paid the required holiday pay if he has not worked on such
provided in the Labor Code Art. 93 regular holiday

Art. 94 – Right to Holiday Pay (Compensation is twice the SHUTDOWN

wage 200%)
  Temporary or periodic shutdown and temporary cessation
of work, yearly inventory, repair or cleaning of
machineries and equipment is undertaken the regular
holidays falling within the period shall be compensated.
 Regular holiday during the cessation of operation of an
enterprise due to business reverse may not be paid by the
employer.
 Field personnel are not given regular holiday pay.
SERVICE INCENTIVE LEAVE
 This is mandatory by law.
 This can be converted to money equivalent if the service
incentive leave was not used.
 Vacation and sick leave are not required by law. This is
only voluntary on the part of the employer.
 If there is no SIL, then the vacation or sick leave will be
enough.
 If an employee claims that he is entitled to the vacation
and sick leave for 15 days then he or she has the burden
of proof to prove the entitlement because the SIL only has
5 days minimum incentive.
 If it has been a practice in the company that the 15-day
vacation or sick leave is money equivalent then it should
be given.
 If the company does not give any SIL then the employee
can demand for it but not the vacation and sick leave.
Who are entitled to the service incentive leave?
- Employee who has rendered 1 year (12 months) of service
will be entitled to 5 days with pay.
Who are not covered under the service incentive leave?
- Those who are already enjoying the benefit and those
working in an employment of less than 10 employees or
any other establishments exempted from granting this
benefit by the DOLE
- Piece rate workers
DUTY OF THE EMPLOYER UNDER THE SIL:
1. Burden of proof to prove that he has less than 10
employees in the company
2. Burden of proof to prove that the employee has no
entitlement over the SIL.
CASES: FAR EAST VS LEBATIQUE – Lebatique is not a filed
personnel hence, he is entitled to a service incentive leave and
overtime pay.
MURILLO VS SUN VALLEY REALTY- an allegation was made by
the company that they only have 6 employees excluding others this
in effect considered by the SC that there were other employees of
the corporation except that they were not stationed in Sun Valley.
 It is the duty of the employer to prove that he is exempted
from paying he said service incentive leave.
 It is not enough to allege that there are only 6 employees
in their establishment.
 The labor code means to include all establishment except
a few classes under the coverage of the provision granting
SIL to workers. Hence, alleging that they are part of the
excepted classes should be proven.
What are the proofs that can be shown that there are less
than 10 employees?
1. Employer’s payroll book
2. SSS records
Art. 96 SERVICE CHARGES – shall be distributed between the
employees and employers 85% to the former and 15% to the latter
to answer for losses and breakages and distribution to managerial
employees at the discretion of the management in the latter case.
There is already an amendment made wherein 100% of the service
charges will go to the employees.
R.A 11360 – Bill that proposes that the service charges will be
given to the employees in full.
Who are covered here? – All employees regardless of their positions
except to managerial employees.
Managerial employees referred here are those who have the
powers or prerogatives to lay down and execute management
policies and or to hire, transfer, suspend, lay-off, recall, discharge
or to effectively recommend such managerial actions.
If the employer decides to stop collecting service charges, the share
of the employees will be deemed integrated into their wages. The
basis of the amount will be integrated in their average monthly
share of their employees is for the past 12 months immediately
preceding the abolition or withdrawal.
TIPS- given by the customers voluntarily in recognition of their
excellent service.
 This is a form of reward to the service rendered.
 There is no compulsion to give tips under the law.
What if there are tips collected bit the establishment does not
charge any service charges but they have a practice of monitoring
tips given? effects is that the pulled tips must be distribute with the
same 85%-15% rule based upon service charges.
- Pulling tips must be monitored and accounted for and be
distribute in the same manner as the service charge.
- Pulling tips must be favorable to the employees.
- A waiter who took the tips but does not inform the
manager is a ground for dishonesty.
SERVICE CHARGE- payment that is considered as integral part of
the food, goods or services ordered by the customer.
 Even if the service is not likeable, customer still needs to
pay service charges
 Not in a nature of profit share therefore cannot be
deducted from wage.
13TH MONTH PAY
 Not under the labor code but only in a special law under
PD No. 851
 Required to pay 13 th month pay to all rank and file
employees.
 Purpose: the intention was to grant some relief not to al
workers but only to the unfortunate ones not actually paid
of the 13th month pay or what amounts to it . it was not
envisioned that a double burden would be imposed on the
employer already paying his employees a 13 th month pay
or its equivalent
 In paying the 13th month pay you get to pay for the 1
whole year(basic salary ) / 12= 13th month pay.
 Minimum service requirement to receive 13th month pay is
1 month of service.
Who are not covered here?
 1. Distressed employers incurring substantial losses
2. Government and its political subdivisions, GOCC’s
3. Employer’s already paying their employees 13 th month pay
or its equivalent
4. Employers of household workers or those who render
personal service of another in relation to such workers.
(Based on the Kasambahay Law)
5. Those who are paid on purely commission basis, task basis
paid fix amount for a specific work irrespective of the time
consumed.

CASES: NATIONAL FEDERATION VS OJERA – the grant of a 13th

month pay is not to be given to those who are already receiving the
same. In this case the employees are already receiving bonuses
which is already equivalent to the amount given under PD 851
hence the company is already exempted.

FRAMANLIS VS MINISTER OF LABOR – the argument that they

substantially complied with the requirement to pay 13 th month by
giving yearly bonuses and other non-monetary benefits amounting
to 1/12th of their basic salary is not what is meant by 13 th month. It
does not cover dividends, allowances, as well as monetary-benefits

 Under PD 851 benefits in the form of food or free

electricity were not the proper substitute for the 13 th
month pay required by law.
 Year-end rewards for loyalty and service are not
considered as 13th month pays

KAMAYA VS NLRC – there is a practice of paying 14th month pay to

employees however the company stopped it due to financial losses.

 A 14th month pay has no legal basis hence it cannot be

mandatory.
 Even in the CBA there is no express stipulation to such
payment of the 14th month pay to the employees.
 14th month pay is a misnomer because it can be
considered as bonuses in a gratuitous nature .
 The grant of a 14th month pay is a management
prerogative which cannot be forced upon the employer.

PHILIPPINE DUPLICATORS VS NLRC – the sales commission

comprising a pre-determined percent of the selling price of the
goods are included in the computation of the 13th month pay.

 The sales commission were an integral part of the basic

salary structure of their employees. These commissions
are not overtime payments, nor profit-sharing payments
or fringe benefits.
 The sales commission received for every duplicating
machine sold constituted part of the basic compensation
or remuneration of the salesmen doing their job
 In this case the sales commission are part in the
computation of the 13th month pay because the
commissions earned here by the salesmen in making a
sale of duplicating machines constitute part of their
compensation or renumeration for serving as salesmen.
THESE ARE PART OF THEIR SALARIES.
 The sales commission received for every machine sold
constituted part of the basic pay of the sales men hence it
shall be included in the computation of the 13th month
pay.

Art. 100 Prohibition of diminution of benefits.
CASES: OUR HAUS VS PARIAN – The lodging and meals were not
counted as part of the wages because it is considered as a
supplement.
REQUISITES FOR CHARGING THE VALUE OF THE FACILITIES:
1. Proof must be shown that such facilities are customarily
furnished by the trade
2. Provision of deductible facilities must be voluntarily
accepted in writing by the employee
3. Facilities must be charged at fair and reasonable value
PURPOSE TEST -> If a benefit or privilege granted to the
employee is clearly for the employer’s convenience, it will not be
considered as a facility but a supplement.
FACILTIES -> articles or services for the benefit of the employee
and his family even if not given by the employer, the employee will
still spend for this facility. This is part of the computation of wages.
SUPPLEMENTS -> These are expenses that are free from charge.
This cannot be included in the determination of whether an
employer complied with the prescribed minimum wage rates.
The benefit or privilege granted to the employee is clearly for the
employer’s convenience.
Art. 101 – Payment by results, pakiao, piecework and other
non-time work.
If paid on a piece rate there must be the determination of the
time and motion study to determine how much work is done in
day or in the 8-hour work for such work.
Before going to the SC demanding underpayment of wages there
must first be the determination that you are being paid lower that
what should have been allowed based on your work since you are
being paid by results.
There must be the consideration how much can be finished in an 8-
hour work because that is the basis of our minimum wage. The
average rate should be the basis.
There must be determination if the piece-rate worker belongs to
either supervised (meaning working within the company
premises)and not supervised.
Payment by result is only a method of compensation and does not
define, by itself, what is the relationship between the parties. It
does not determine if there is an employer-employee relationship.
Piece-rate employees can be entitled to holiday pay and 13 th month
pay.
Art. 102- Forms of payment of wages or salaries must only
be through cash. But if is done through check or money order
It will depend when the labor code became affective.
General Rule: wages are paid through legal tender (money) any
other modes are prohibited even if expressly requested by the
employee.
TIME OF PAYMENT - Wages shall be paid at least once every 2
weeks or twice a month
Even if the job was not yet done, the employer has the obligation to
pay every 16 days OR proportion to what has been completed.
PLACE OF PAYMENT-> Generally, the place of payment shall be at
or near the place where the worker is working. In order to protect
them from robbery and from spending his money unnecessarily.
Payment other than the place of work is only allowed when:
a. By reason of DETERIORATION OF PEACE and other
conditions by reason of ACTUAL OR IMPENDING
EMERGENCIES CAUSED BY FIRE, FLOOD, EPIDEMIC OR
OTHER CALAMITY rendering payment impossible.
b. Employer provides free transportation back and forth
c. Under any analogous circumstances provided that the
time spent in collecting their wages shall be compensable
hours worked
d. Only allowed to pay wages to employees who are already
working in a bar, club, massage clinic, dance hall or other
similar place if the employee is not working in any of these
place then payment of wages is not allowed here.
Payment by check, postal checks or money orders is allowed when
such wage payment is customary on the date of the effectivity of
the code. Only allowed under the following conditions:
1. Bank or other facility for encashment is within a radius of
1km from the workplace
2. Employer or the agents does not receive any pecuniary
benefit directly or indirectly from the arrangement
3. Given reasonable time during banking hours to withdraw
and . if done during working hours it should be
compensable working hours.
4. There must be the authorization from the employees if
there is no CBA authorizing such arrangement.
CONTRACTOR or SUBCONTRACTOR
Employer enters into a contract with another person for the
performance of the former’s work, the employees of the contractor
and the latter’s subcontractor’s shall be paid in accordance with the
provisions of this code.
If the contractor or subcontractor fails to pay the employees, the
employers will be jointly liable
Labor only contracting – where the person supplying workers to an
employer
Does not have substantial capital or investment in the form of tools,
equipment, machineris, work premises
Principal or indirect employer-> the one who contract somebody
to perform work for him and that somebody or contractor will hire
employees under his payroll.
LABOR ONLY CONTRACTING – any person who undertakes to supply
workers to an employer.
REQUISITES FOR LABOR-ONLY CONTRACTING:
1. Does not have substantial capital or investment in the
form of tools, machineris, work premises, amonth others
 2. Workers recruited and placed by such person are
performing activities which are directly related to the
principal business operations of the employer in which the
workers are habitually employed .
CASES: PBCOM VS NLRC – the bank and CESI entered into an
agreement whereby CESI will provided 11 messengers for
temporary services.
 The fact that the workers were already assigned to
another place ends their responsibilities.
 Even if there is a legitimate job-contracting the employer
is still solidarily liable with the contractor for the benefits
under the labor laws.
 An indirect employer should not be made liable without a
finding that it had committed or conspired with the illegal
dismissal

 CESI was only engaged in labor-only contracting but GUARIN VS NLRC- the work being rendered by the employees are
PBCOM and CESI are still jointly and severally liable as directly related to the daily operations of a garment factory this is
provided under Art. 106 bolstered by the fact that Novelty kept re-hiring the petitioners for a
 if there is an employee-employer relationship and labor- period of 3 years.
only contracting exists the statute itself implies or
establishes an employer-employee relationship between The employees are not the ones who will have the burden of proof
the employer and the employees of the labor-only whether there is a legitimate job contracting or labor only
contractor contracting.
 Even if Orpiada is considered a casual employee but he
has been working more than 1 year then he is deemed as RHONE POULENC VS NLRC- Even if Rhone bought Union Carbide
a regular employee of PBCOM. they are not compelled to absorb there janitors into its work force.
An innocent transferee of a business establishment has no liability
Remember the four-fold test of an employer-employee to the employees of the transferor to continue employing them.
relationship:
During the transition period, the contract between Union and CSI
1. Power to select was still in effect however whatever benefits Rhone may have are
2. Power of wages merely incidental
3. Power to dismiss
4. Power of control NFA VS MASADA SECURITY ->

DIFFERENCE BETWEEN LABOR-ONLY CONTRACTING FROM
LEGITIMATE JOB CONTRACTING:
LABOR-ONLY
DOES NOT HAVE substantial
capital or investment in the
forms of tools, equipment,
machineries, work premises
and other materials
The workers recruited are
performing activities which are
to the principal business or
operations of the workers are
habitually employed
The person acting as a
contractor is merely an agent
of the employer and both of
them will be liable for those
workers employed by him
LEGITIMATE JOB-
CONTRACTING
DOES HAVE substantial
capital or investment in the
forms of tools, equipment,
machineries, work premises
and other materials
Contractor carries on
independent business and
undertakes the contract work
on his own account under his
own responsibility. Free from
the control of the employer
in all matters connected with
the performance of the work
except as tot eh results
thereof.
Art. 110 WORKER’S PREFERENCE IN CASE OF BANKRUPTCY
When an employer’s business becomes bankrupt, the workers shall
enjoy first preference as regards with their unpaid wages and other
monetary claims.
REQUIREMENTS UNDER ART. 110:
a. There must already be an insolvency, liquidation or
bankruptcy proceeding
b. Art. 110 must be interpreted in connection with the
an
provisions of the Civil Code.
DBP VS NLRC- Sec. 10 Rule 8 of the IRR provides that unpaid
wages earned by the employees before the declaration of
bankruptcy or judicial liquidation of the employer’s business shall be
given first preference and shall be paid in full before the other
creditors.
 The SC categorically stated that a declaration of
bankruptcy or judicial liquidation must be present before
the worker’s preference may be enforced. Hence, Art. 110
or sec. 10 Rule 8 of the IRR cannot be invoked if there is
no declaration made.
 The act of DBP of foreclosing the properties was incorrect
because there was no insolvency proceeding initiated.

DBP VS SECRETARY OF LABOR- What Art. 110 establishes is not

NERI VS NLRC – the contractor in this case had the right of control
over the workers hence, there is no labor-only contracting.
 What is the difference of this case from PBCOM? –
the right of control.
 There is always the presumption of labor-only contracting.
If an entity alleges that it is involved in job contracting it
has the burden of proof to show there is substantial capital
or investments in costs or machineries. BCC was able to
prove that it was a legitimate job contractor.
 SC emphasized that it is not required that the contractor
must be able to prove substantial capital investments
a lien but a preference of credit in favor of employees. This mean s
that during bankruptcy, insolvency or liquidation proceedings
involving the existing properties of the employer, the employees
have the advantage of having their unpaid wages satisfied ahead of
certain claims which may be proved therein.
 Art. 110 is not applicable because it only attains significant
only after the properties of the debtor have be inventoried
and liquidated.
PNB VS CRUZ – SEVERANCE PAY is included in the preference
under Art. 110.

ROSEWOOD PROCESSING VS NLRC – the indirect employer’s  Wages includes not only remunerations or earnings
liability to the contractor’s employees extends only to the period payable by the employer but it also includes all benefit of
during which they were working for the employer.
 the employees under the CBA. Reading Art. 110 it also
includes other monetary claims.
 Art. 110 is not limited to the wages supposedly earned by
an employee it also includes separation pay.
RUBBERWORLD VS NLRC -> If a petition for declaration of
SUSPENSION OF PAYMENTS as well as a PROPOSED
REHABILITATION PLAN this in effects SUSPENDS ALL ACTIONS
FOR CLAIMS AGAINST rubberworld including all labor claims.
Preferential right under Art. 110 will only commence if there is an
institution of insolvency or judicial liquidation proceeding.
The present case involves rehabilitation not liquidation hence, Art.
110 cannot apply yet.
Art. 111 Attorney’s fees
 Payment of attorney’s fees must only be equivalent to
10% of the amount of wages recovered.
 It is unlawful to demand or accept attorney’s fees in any
proceeding for the recovery wages which exceeds 10% of
the amount of wages recovered.
TAGANAS VS NLRC -> a contingent fee that exceeds the 10%
requirement under Art. 111 in a labor suit is considered as
excessive and unreasonable.
 The financial capacity and economic status of the client
have to be taken into account in fixing the reasonableness
of the fee.
 The manifestation of the conformity of a contingent fee
exceeding 10% in a labor suit will not make the
agreement valid.
TRADERS ROYAL VS NLRC -> a retainer agreement was entered
into by a union and a law firm every month for 3k.
2 concepts of attorney’s fees:
Ordinary Attorney’s fees -> the reasonable compensation paid to
a lawyer by his client for the legal services that he has rendered to
the latter.
Extraordinary Fees -> an attorney’s fee is an indemnity for
damages ordered by the court to be paid by the losing party in a
litigation.
General Retainer -> fee paid to a lawyer t secure his future
services as general counsel for any ordinary legal problem that may
arise in the routinary business of the client and referred to him for
legal action.
Special Retainer -> fee for a specific case handled or special
service rendered by the lawyer for a client.
 It was wrong to claim that all attorney’s fees due to the
lawyer were covered by the retainer fee of P3K because
this is provided under their retainer agreement. This
retainer’s fee refers to a general retainer that only covers
the law firm’s pledge to commit to render legal services.
 The retainers fee is not payment for private respondent’s
performance of the services listed in the contract. The 3k
is independent and different from the compensation which
the lawyer should receive in payment.
 Lawyer is entitled to the special retainer fee because the
3k payment to him is considered as a general retainer.
 Art. 11 is not the lone standard in fixing the amount
payable to a lawyer for the legal services he will render.
 Award of attorneys fees must only be given to a lawyer
who has an attorney-client relationship.
 The award of attorney’s fees is not limited to wage
recovert but the totality of the award that can be given to
the employees.
Art. 112 Employers are prohibited to interfere in the disposal
of wages of the employees.
Employers cannot interfere with the employee as to his disposition
of wages but such is not prohibited from giving advice.
Art. 113 -> Wage deductions are not allowed except when:
a. The worker is insured with his consent and the deduction
is to recompense the company from paying the premium
in the insurance.
b. Union Dues
c. Authorized by law or regulations
MORE EXCEPTIONS:
d. Employer as a creditor – debts that are due and
demandable already
e. Tax and social security premiums
f. Debts due to 3rd persons – only allowed when authorized
by the employee in writing and that the employer will not
receive any pecuniary benefit from the 3 rd person creditor.
However, employers are not obliged to do this.
PURPOSE: TO protect the employees against unwarranted practice
that would diminish his compensation without his knowledge or
conset.
CASES: RCPI VS SECRETARY -> RCPI filed an application for
exemption from the coverage of Wage Order No. 1.
MILAN VS NLRC -> Withholding of final wages and benefits of
separated employees is prohibited as a general rule. The exception
applies where the employees refuse to return the company property
and to settle their debts, liabilities, and accountabilities.
 Claims arising from an employer-employee relationship
are not limited to claims by an employee. Employers may
also have claims against the employee, which arise from
the same relationship.
 Clearance procedures are instituted to ensure that the
properties real or personal, belonging to the employer but
are in the possession o the separated employee, are
returned to the employer before the employee’s departure.
 Employees continued possession of the subject property
should be included in the tern accountability.
 Accountabilities of employees are personal. They need not
be uniform among all employees in order to be included in
accountabilities incurred by virtue of an employer-
employee relationship.
MABEZA VS NLRC ->Without doubt, the act of compelling
employees to sign an instrument indicating that the employer
observed labor standards provisions of law when he might have not,
together with the act of terminating or coercing those who refuse to
cooperate with the employer's scheme constitutes unfair labor
practice
 the food and lodging, or the electricity and water
consumed by the petitioner were not facilities but
supplements. A benefit or privilege granted to an
employee for the convenience of the employer is not a
facility.
 SC ruled that the meals and lodging that were given to the
employee Mabeza could not be deducted and therefore not
a valid part of the wages. Remember that the reason that
this were given to her was because of the business, since
 it was a hotel business, so dapat 24/7 merong chamber-
maid sa hotel to assist the guests in their needs. Therefore
this was clearly a supplement because this was for the
benefit of the employer.
 The food and lodging, or the electricity and water
consumed by the petitioner were not facilities but
supplements. A benefit or privilege granted to an
employee for the convenience of the employer is not a
facility.
BLUER THAN BLUE VS ESTEBAN -> In connection to Article 113,
we emphasize the general rule that no employer shall make any
deduction from the wages of his employees, except as those
authorized by law. In this case, the deduction alleged to be negative
variance of Esteban was without basis. Petitioner failed to
sufficiently establish that Esteban was responsible for that variance
and that Esteban was given the opportunity to show cause the
deduction from her last salary could not be made.
 If you say that there is variance just because, as in this
case, that she was considered as a sales clerk in
connection to her duties - it is not sufficient, you have to
show proof that she received this amount, and the only
amount she reported is this much, and then pag-check for
example sa petty cash fund or revolving fund, eto lang
yung naiwan. That could be shown as the basis in case of
variance, but in this case, no such circumstances were
shown.
SPECIAL STEEL VS VILLAREAL-> Take note with regard to
Villareal, Special Steel acted as a surety of the obligation of
Villareal. In other words, Villareal is a debtor in another separate
obligation although the liability of Special Steel is solidary in nature.
 it appears na wala pa man evidence that the obligation is
due and demandable and that there was already a demand
on the part of Special Steel to pay the obligation of
Villareal as a surety.
 Article 2071 is not applicable in this case, but just take
note of that because that is in connection with credit-
trans. What is clear therein is wala pa'y na establish na
obligation si debtor kay surety, who is Special Steel. In
other words, walang debtor-creditor relationship between
these two.
 Special Steel has no legal right to withhold respondent’s
13th month pay and other benefits to recompense
whatever amount it paid as security for Villareal’s car loan
and for the expenses incurred by So in his training
abroad3
Compensation – mode of extinguishing an obligation wherein the
parties are debtors and the creditors of each other.
Art. 114 & 115 Deduction made in case of loss or damage
attributable to an employee requisites:
1. An industry where the deductions for deposits are
recognized
2. Employee must be shown to be clearly responsible
3. Employee is given an opportunity to be heard
4. Deduction must not exceed the actual loss or damages
5. Deduction should not exceed 20% of the weekly wage of
the employee.
CASES: FIVE J TAXI VS NLRC -> P15.00 daily deposits made by
respondents to defray any shortage in their "boundary" is covered
by the general prohibition in Article 114 of the Labor Code against
requiring employees to make deposits, and that there is no showing
that the Secretary of Labor has recognized the same as a "practice"
in the taxi industry. Consequently, the deposits made were illegal
and the respondents must be refunded therefor.
The rule on deposits is not applicable to this case because Art. 114
refers to loss or damages that was already incurred by the
employee. However, what is only left is to be reimbursed because it
was shown there were several withdrawals made.
Art. 116& 117 prohibition against deduction to ensure
employment. This is actually common practice in labor-only
contracts.
CASES: SHS PERFORATED VS DIAZ -> Hartmannshenn
instructed its Account Services Department head to not release
respondent’s salary.
Management prerogative refers "to the right of an employer to
regulate all aspects of employment, such as the freedom to
prescribe work assignments, working methods, processes to be
followed, regulation regarding transfer of employees, supervision of
their work, lay-off and discipline, and dismissal and recall of work. It
cannot be understood to include the right to temporarily withhold
salary/wages without the consent of the employee.
Any withholding of an employee’s wages by an employer may only
be allowed in the form of wage deductions under the circumstances
provided in Article 113 of the Labor Code.
The nature of respondent’s job did not allow close supervision and
monitoring by petitioners. Neither was there any prescribed daily
monitoring procedure established by petitioners to ensure that
respondent was doing his job. Therefore, granting that respondent
failed to answer Hartmannshenn’s mobile calls and to reply to two
electronic mail messages and given the fact that he admittedly
failed to report to work at the SHS plant twice each week during the
subject period, such cannot be taken to signify that he did not work
from November 16 to November 30, 2005.
Withholding of the salary of the petitioner for the remaining payroll
period was not valid as it is contrary to Article 116 of the Labor
Code. Also, any withholding may only be allowed in the form of
wage deductions as provided under Article 113.
Art. 118 – RETALIATORY MEASURES by an employer when an
employee filed an action against the employer. The employer then
retaliates because of such action done.
Art. 119 – FALSE REPORTING
An employee is asked to sign a blank payroll. Tapos later na fill-
up'an ng employer just to show na nag comply sila. Nandyan naman
yung pirma ng employee, so in case merong inspection ang DOLE,
the employer could say “o, nadawat ni sa akong employee. It's
within the minimum wage that is in compliance with what is
required under the law.” But the circumstances therein, gipapirma
pero blanko pa lang. So that is considered as false reporting. This
usually happens when there is an inspection or when they are
expecting an inspection by the Department of Labor.
 Take note, under the law, it is required for the employer
na naay payroll and a copy thereof is given to the
employee. The employee is entitled to the copy of that
payroll or payslip.
 The deductions therein must be clearly indicated, yung
mga usual are SSS, withholding tax, Pag-IBIG, and
PhilHealth. For any other deductions pwede ilagay doon
but again the requirements under the law must be
complied with.
CASE: ROBLEDO VS NLRC -> as in this case, the deceased person
who owned the sole proprietorship na security agency, happens to
be a stockholder of that corporation security agency, does not mean
that the security agency is answerable to the obligations of the
security agency owned by a sole proprietor.
 Sino and pwede habulin on that instance? Yung estate
because in this case it just so happens that the owner of
the sole proprietor security agency had already died. So
ano ang habulin dun? Yung estate, naiwan na properties at
the time of his death. Kung walang naiwan o kulang yung
naiwan, up to that extent lang kung anong meron.
 When you say doctrine of piercing the veil of corporate
entity, you disregard the separate personality of the
corporation and go after the stockholders. But again, you
apply that in case of fraud. However, the claims here of
 the security guard, was first, there was no allegation of
fraud. Second, their claim was not against the corporation
as a circumvention of the liability thereof but rather, really
separate liability of the deceased owner-proprietor of that
single proprietor na security agency.
RA 6727 – WAGE RATIONALIZATION ACT
Wage distortion – a situation where an increase in prescribed
wage results in the elimination of severe contraction of intentional
quantitative differences in wage salary rates between and among
employee groupd in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length
of service or other logical bases of differentiation.
ELEMENTS OF WAGE DISTORTION :
1. An existing hierarchy of positions with corresponding
salary rates
2. Significant change in the salary rate of a lower pay class
without a concomitant increase in the salary rate of a
higher one.
3. Elimination of the distinction between the 2 levels
4. Existence of the distortion in the same region of the
country.
2 ways of adjusting the minimum wage:
1. Floor Wage – involves the fixing of determinate amount
that would be added to the prevailing statutory minimum
wage
2. Salary Ceiling Method – wage adjustment is applied to
employees receiving a certain denominated salary
2 bodies under RA 6727 :
1. National wage and productivity commission
2. Regional tripartite wage and productivity board
CASES: EMPLOYEES CONFEDERATION VS NWPC ->
PRUBANKERS VS PRUDENTIAL BANK -> a disparity in wage
between employees holding similar positions but in different regions
does not constitute wage distortion.
 Different regional wages are mandated by law as there is
recognition that there exist regional disparities in the cost
of living.
 RA 6727 recognizes that there are different needs for the
different situations in different regions of the country.
 Wages in every region will be determined by the wage
board of that region based on the prevailing situation
therein.
 The wages in different regions will not be in uniform.
 There are different minimum wages per region because of
the different socio-economic conditions in the 2 regions.
 Any wage order that would increase the minimum wage of
one employee in another region will not cause a wage
distortion with a similar employee, even if they have a
similar employer.
ILAW AT BUKLOD vs NLRC -> the strike in this case involves the
issue of wage distortion.
 RA 6727 sec. 4 (D) provides that where there is a wage
distortion issues the dispute shall be settled first
voluntarily between the parties and in the event of a
deadlock, it shall then be resolved through compulsory
arbitration.
 The employer and the union shall negotiate to correct the
distortions and dispute shall be resolved through grievance
procedures under the CBA if not present through voluntary
arbitration.
 The legislative intent of RA 6727 is to settle wage
distortions through voluntary negotiation or arbitration an
not by strike, lockouts or other concerted activities.
 A strike is not a solution if there is wage distortion.
METROBANK VS NLRC->there was wage distortion because there
was contraction of 83% in the wage difference of those two classes
and it also agreed that although there was a wage distortion, the
750php a month that was granted to the employees was not the
proper remedy.
METRO TRANSIT VS NLRC -> the Court finds and so holds that a
wage distortion did occur when the salaries of rank-and-file
employees were increased by P500.00 per month on 17 April 1989
as stipulated in their CBA and no corresponding increase was paid
to the supervisory employees.
When we talk about wage distortion, in order to correct the same, it
is NOT required to maintain the same historical gap, the gap prior to
the wage increase. What is essential is that there must be a
substantial gap between those two levels despite the fact that
there is a wage increase.
there is no legal requirement that, in the rectification of that
distortion by re-adjustment of the wage rates of the differing
classes of employees, the gap which had previously or historically
existed be restored in precisely the same amount. In other words,
correction of a wage distortion may be done by re-establishing a
substantial or significant gap (as distinguished from the historical
gap) between the wage rates of the differing classes of employees.
NASIPIT VS NASIPIT -> if there is a wage order increasing the
maximum wage as a rule it would only affect those who are earning
below the minimum wage with the new minimum wage. For those
already earning higher than the minimum wage, they cannot insist
that they be given the same increase. Their salary could only be
increased if the wage order imposing a new wage increase would
cause a wage distortion.
SPECIAL GROUP OF EMPLOYEES ------WOMEN
EXCEPTION TO ART. 136 ----BONA FIDE OCCUPATIONAL
QUALIFICATION:
1. The employment qualification is reasonable related to the
essential operation of the job involved
2. There is factual basis for believing that all person meeting
the qualification would be unable to properly perform the
duties of the job.
PT&T VS NLRC -> Grace’s act of concealing could not be properly
characterized as willful or in bad faith because she wanted to retain
a permanent job but she was forced by that very same illegal
company policy into misrepresenting her civil stays for fear of being
disqualified from work.
This is in violation of the right to discrimination test.
DUNCAN VS GLAXO WELCOME PHILIPPINES -> company policy
prohibiting a relationship with an employee of a competitor
company is a valid exercise of management prerogative.
 The company has the right to guard its trade and company
secrets
 Prohibition against personal or marital relationships with
employees of competitor companies is reasonable because
such relationship might compromise the interests of the
company.
 Glaxo is only committed to protect the possibility that a
competitor company will again access to its secrets and
procedures.
  Glaxo does not impose an absolute prohibition against
relationships between employees and those of competitor
companies but only seeks to avoid conflict of interest
 Tecson’s wife holds a sensitive supervisory position
STARPAPER VS SIMBOL -> the company failed to show how the
marriage between the respondents could be detrimental to its
business operations
 The policy is premised that such marriage would render
the employees to be less efficient.
 Banning spouses from working in the same company is
not a valid exercise of management prerogative
 Justification on the policy could be anchored that it would
result to loss of check and balance, control or a
connivance could arise if ever.
DISPARATE IMPACT THEORY -> to establish disparate
impact, the complainants must prove that a facially neutral
policy has a disproportionate effect on a particular class.
 Women night workers there must be an alternative to
night work
 Night worker are entitled to night shift differential
EMPLOYMENT OF MINORS -> 15 years old is the lowest age that
a person can be employed.
 Child below 15 years old is only allowed to work when the
child is under the responsibility of his parent or guardian
and does not interfere with this schooling.
 The Secretary of Labor will determine the number of hours
a person working within age range of 15-18 years old.
 Age range between 15-18 yrs old are not allowed to work
in a hazardous environment.
RA 7610 - Children below 15 years of age shall not be employed
except when:
1. Under the supervision of the parents or guardian and
where only members of the family are employed. The child
must be provided with the prescribe primary and
secondary education
2. Child’s employment in the media must be entered into
with the consent of the child and concluded by the parents
or guardians and the approval of DOLE
 Children must not promote any advertisement promoting
alcoholic beverages, intoxicating drinks, tobacco, and by
products, gambling or any form of violence.

RA 10361 – KASAMBAHAY LAW

Art. 137 prohibition by reason of pregnancy  Kasambahay – works at home of the employer but he is
not a home worker
Discrimination by reason of pregnancy is not allowed but if the
 Covers all domestic workers living in or outside of the
pregnancy would be couter-productive then the nature of the job
home
must be taken into consideration.
 Regardless if hired through an agency they are under this
RA 7877 - ANTI-SEXUAL HARASSMENT ACT law.
 Employer must pay for the employment cost and can be
Sexual harassments in 3 situations: workplace, education level, reimburse if the kasambahay leaves without justifiable
training-related sexual harassment. reasons within 6 months
 Employment contract must be in writing but does not need
How is Sexual harassments committed? to be notarized
 Kasambahay are not considered as regular employees.
1. Sexual favor made as a condition in the HIRING,
The labor code is not applicable to them. You can
EMPLOYMENT, RE-EMPLOYMENT or CONTINUED
terminate them by mere notice
EMPLOYMENT
 Governmental benefits must be given to them
2. Granting a favorable compensation terms of conditions,
 Minimum wage is given to them
promotions or privileges
 Daily rest period is 8 hours per day
3. Refusal to grant the sexual favors results in limiting,
 They are entitled also to a 24 hours rest period
segregating or classifying the employee that would result
in discriminate or diminish employment opportunities.  Kasambahay who has rendered atleast 1 year of service
shall be entitled to a 5 day leave with pay.
LIBRES VS NLRC -> RA 7877 was not yet promulgated when the
harassment supposedly happened.

NIGHT WORKERS -> persons who are permitted to work at night

except employed in agriculture, stock raising, fisghing, maritime
transport and inland investigation during a period of not less than 7
consecutive hours.

 Health assessment workers have the right to undergo

health assessment for free to receive advice on how to
reduce or avoid health problems associated with their
work
 Mandatory facilities – firs aid facilities must be present.
Safe and healthful working conditions and adequate or
reasonable facilities.
 Night workers who are certified unfit for night work if
practicable shall be transferred to a similar job where they
are fit to work