Consolidated PCU Labor Law Review 1st Batch Atty Jeff Santos

De Ocampo, Jana Karenina Mae
Constitutional Provisions
ART. 3. Declaration of Basic Policy. The State shall afford protection to labor, promote full
employment, ensure equal work opportunities regardless of sex, race or creed, and regulate the
relations between workers and employers. The State shall assure the rights of workers to self-
organization, collective bargaining, security of tenure, and just and humane conditions of work.
Art.3 of the Labor Code is in line with these Constitutional provisions.
1.Article II, Sections 9, 10, 18, 20
Section 9. The State shall promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that provide adequate
social services, promote full employment, a rising standard of living, and an improved quality of life
for all.
*This section explains that labor is dynamic hence it, the labor laws adapt to the changing times to
cater to the needs of the people to improve the quality of life.
Section 10. The State shall promote social justice in all phases of national development.
* Social justice was perfectly simplified by the late President Magsaysay, stating: He who has less in
life should have more in law.
Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare.
*This section gives importance to the labor force because they are on of the factors in socioeconomic
growth.
Section 20. The State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.
*This provisions explains that the private sectors and capitalists are important as well, the without
them, the labor sector will not grow.
Article III, Sections 4, 8, 10, 16, 18(2)
Section 4. No law shall be passed abridging the freedom of speech, of expression, or of the press, or
the right of the people peaceably to assemble and petition the government for redress of grievances.
* This provision not only protects individuals, but it also covers groups or unions as well,as long as
their way of assembly is in accordance with the law.
Section 8. The right of the people, including those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to law shall not be abridged.
* This provision speaks for itself.
Section 10. No law impairing the obligation of contracts shall be passed.
*This article is limited in application to laws about to be enacted that would in any way derogate from
existing acts or contracts by enlarging, abridging or in any manner changing the intention of the
parties thereto. The prohibition is aligned with the general principle that laws newly enacted have
only a prospective operation, and cannot affect acts or contracts already perfected; however, as to
laws already in existence, their provisions are read into contracts and deemed a part thereof.
Section 16. All persons shall have the right to a speedy disposition of their cases before all judicial,
quasi-judicial, or administrative bodies.
*Like in any sector, speedy is aimed to de-clogging the case dockets system, de-judicializing the
process of handling labor cases, and reducing red tape and opportunities for graft and corruption
towards the fair, just, and transparent settlement of all labor cases.
Section 18.
(2)No involuntary servitude in any form shall exist except as a punishment for afs crime whereof the
party shall have been duly convicted.
*this means that even if a person owes you a ton of debt, if he doesn’t want to work for you in lieu of
his payment, he cannot be forced to work for you. We cannot take the law into our hands.
Article XIII, Sections 3 &14
LABOR
Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights and benefits as may be
provided by law.
The State shall promote the principle of shared responsibility between workers and employers and
the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor
to its just share in the fruits of production and the right of enterprises to reasonable returns to
investments, and to expansion and growth
* This provision says that the state must not only protect the local workers, but also those who work
inside the country, but also those who work outside. One of these measures is the creation of the
POEA and the other special laws that protect our Overseas Foreign workers.
This also promotes the balance of Capital and Labor it also promotes the existence of CBAs and means
and ways of getting redress fro grievances. This serves as a guide for the labor code and other laws on
what the labor sector shall need.
WOMEN
Section 14. The State shall protect working women by providing safe and healthful working
conditions, taking into account their maternal functions, and such facilities and opportunities that will
enhance their welfare and enable them to realize their full potential in the service of the nation.
*This provision aims to give equal protection to women as a class by giving them opportunities in the
labor force, as emulated in the Magna Carta For women:
As discussed Earlier
Art II of the Constitution are not self executing laws. They need an enabling legislation.
Substantive due process
Substantive due process essentially refers to the causes or grounds.
Just causes
For termination, just causes include serious misconduct, willful disobedience, gross and habitual
neglect of duty, fraud, loss of trust and confident, commission of a crime, and analogous causes.
For more detailed discussions, refer to Just Causes.
Authorized causes
For separation, authorized causes include installation of labor-saving devices, redundancy,

retrenchment, closing of a business, disease.
For more detailed discussions, refer to Authorized Causes.
Procedural due process
Procedural due process essentially refers to the steps or procedures.
Just cause procedure
For just cause procedure, the following are the steps:
Step 1: Issuance of 1st Written Notice
Step 2: Observance of Ample Opportunity to Explain
Step 3: Issuance of 2nd Written Notice
For more detailed discussions, refer to Substantive Due Process.
Authorized cause procedure
For authorized cause procedure, the following are the steps:
Step 1: Issuance of 30-day advance notice to DOLE
Step 2: Issuance of 30-day advance notice to employee

Step 3: Payment of Separation Pay (subject to an exception)
For more detailed discussions, refer to Procedural Due Process.
Consequence for non-observance of due process
Non-observance of due process may result in illegal dismissal.
While jurisprudence has consistently regarded Article 290 as an authorized cause for termination, the
Supreme Court, in Deoferio v. Intel Technology Philippines, Inc. (GR No. 202996, June 18, 2014) has
mandated that the twin-notice requirement for just causes of termination likewise applies to cases of
termination due to disease.
Contractual Due process
The employer must follow what is stated in the contract.
Agabon V NLRC
The violation of the petitioners' right to statutory due process by the private respondent warrants the
payment of indemnity in the form of nominal damages.
Constitutional due process protects the individual from the government and assures him of his
rights in criminal, civil or administrative proceedings; while statutory due process found in the
Labor Code and Implementing Rules protects employees from being unjustly terminated without
just cause after notice and hearing.
Social Justice
Labor laws seek to advance the cause of social justice – - to distribute wealth, to protect workers
from exploitation, to multiply and equalize work opportunities, and, also, to assist business growth.
Read Calalang Williams

TAMPENGCO, MICHAEL ALERICK B.
LABOR LAW REVIEW 2020-2021

REPORT
ILLEGAL RECRUITMENT
LICENSE & AUTHORITY
Report on Illegal Recruitment
Definition:
Recruitment and Placement: refers to any act of canvassing, enlisting, contracting, transporting,
utilizing,
hiring or procuring workers, and includes referrals, contract services, promising or advertising for
employment,
locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner,
offers or
promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and
placement (Art. 13).
Private fee-charging employment agency: Any person or entity engaged in recruitment and placement
of
workers for a fee which is charged, directly or indirectly, from the workers or employers or both (Art.
13).
Private recruitment entity: Any person or association engaged in the recruitment and placement of
workers,
locally or overseas, without charging, directly or indirectly, any fee from the workers or employers
(Art. 13).
License: A document issued by the Department of Labor authorizing a person or entity to operate a
private
employment agency (Art. 13).
Authority: A document issued by the Department of Labor authorizing a person or association to
engage in
recruitment and placement activities as a private recruitment entity.
Illegal Recruitment
Definition:
Any recruitment activities, including the prohibited practices enumerated under Article 34 of this
Code, to be
undertaken by non-licensees or non-holders of authority, shall be deemed illegal and punishable
under Article
39 of this Code. The Department of Labor and Employment or any law enforcement officer may
initiate
complaints under this Article (Art. 38).
Republic Act 8042 As amended by R.A. 10022
"SEC. 6. Definition. - For purposes of this Act, illegal recruitment shall mean any act of canvassing,
enlisting,
contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract
services,
promising or advertising for employment abroad, whether for profit or not, when undertaken by non-
licensee
or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442, as
amended,
otherwise known as the Labor Code of the Philippines: Provided, That any such non-licensee or non-
holder
who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be
deemed
so engaged.
Prohibited Practices
Article 34
It shall be unlawful for any individual, entity, licensee, or holder of authority:
- To charge or accept, directly or indirectly, any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount greater
than that
actually received by him as a loan or advance;
- To furnish or publish any false notice or information or document in relation to recruitment or
employment;
- To give any false notice, testimony, information or document or commit any act of
misrepresentation for the
purpose of securing a license or authority under this Code.
- To induce or attempt to induce a worker already employed to quit his employment in order to offer
him to
another unless the transfer is designed to liberate the worker from oppressive terms and conditions
of
employment;
- To influence or to attempt to influence any person or entity not to employ any worker who has not
applied for
employment through his agency;
- To engage in the recruitment or placement of workers in jobs harmful to public health or morality or
to the
dignity of the Republic of the Philippines;
- To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;
- To fail to file reports on the status of employment, placement vacancies, remittance of foreign
exchange
earnings, separation from jobs, departures and such other matters or information as may be required
by the
Secretary of Labor.
- To substitute or alter employment contracts approved and verified by the Department of Labor from
the time
of actual signing thereof by the parties up to and including the periods of expiration of the same
without the
approval of the Secretary of Labor;
- To become an officer or member of the Board of any corporation engaged in travel agency or to be
engaged
directly or indirectly in the management of a travel agency; and
– To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its implementing rules and
regulations.
What constitutes Recruitment and placement?
It refers to any act of :
1. Canvassing
2. Enlisting
3. Contracting
4. Transporting
5. Utilizing
6. Hiring, or
7. Procuring workers
Includes:
1. Referrals,
2. Contract Services,
3. Promising, or
4. Advertising for employment, locally or abroad, whether for profit or not
TAKE NOTE:
Any person or entity which, in any manner, offers or promises for a fee employment to two or more
persons shall be deemed engaged in recruitment and placement. (Art. 13 (b), Labor Code).
G.R. Nos. L-58674-77 July 11, 1990
PEOPLE OF THE PHILIPPINES, petitioner,
vs.
HON. DOMINGO PANIS, Presiding Judge of the Court of First Instance of Zambales & Olongapo City,
Branch III and SERAPIO ABUG, respondents.
ISSUE:
Whether dealing with 2 or more persons is an indispensable requirement to establish recruitement
and
placement as defined under Art 13(b)
FACTS:
1. Four informations were filed on January 9, 1981 in CFI Zambales alleging that Serapio Abug, a
private responded, "without first securing a license from the Ministry of Labor as a holder of authority
to
operate a fee-charging employment agency, did then and there wilfully, unlawfully and criminally
operate a
private fee charging employment agency by charging fees and expenses (from) and promising
employment in
Saudi Arabia" to four separate individuals named therein, in violation of Article 16 in relation to
Article 39 of
the Labor Code.
2. Respondent filed a motion to quash on the ground that the information did not charge an offense
because he was accused of illegally recruiting only one person in each of the four information. The
proviso under Art. 13 (b) provides that there is illegal recruitment only “whenever two or more
persons
are in any manner promised or offered any employment for a fee.”
HELD: Neither interpretation is acceptable
We fail to see why the proviso should speak only of an offer or promise of employment if the purpose
was to
apply the requirement of two or more persons to all the acts mentioned in the basic rule. For its part,
the
petitioner does not explain why dealings with two or more persons are needed where the
recruitment and
placement consists of an offer or promise of employment but not when it is done through
"canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers.
As we see it, the proviso was intended neither to impose a condition on the basic rule nor to provide
an exception thereto but merely to create a presumption. The presumption is that the individual or
entity is engaged in recruitment and placement whenever he or it is dealing with two or more persons
to whom, in consideration of a fee, an offer or promise of employment is made in the course of the
"canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers. "
The number of persons dealt with is not an essential ingredient of the act of recruitment and
placement of workers. Any of the acts mentioned in the basic rule in Article 13(b) will constitute
recruitment
and placement even if only one prospective worker is involved. The proviso merely lays down a rule of
evidence that where a fee is collected in consideration of a promise or offer of employment to two or
more prospective workers, the individual or entity dealing with them shall be deemed to be engaged
in the
act of recruitment and placement. The words "shall be deemed" create that presumption.
WHEREFORE, the Orders of June 24, 1981, and September 17, 1981, are set aside and the four
informations against the private respondent reinstated. No costs.
LICENSE AND AUTHORITY
Definition:
License: is a document issued by DOLE authorizing a person or entity to operate a private
employment
agency. A license is given for a private employment agency which is also authorized to collect fees.
Authority: Is a document issued by DOLE authorizing a person or association to engage in recruitment
and placement activities as a private recruitment agency. An authority does not entitle a private
Recruitment entity to collect fees.
RELOX, Alvin Patrick R.
LABOR LAW REVIEW WRITTEN REPORT #1
TYPES OF ILLEGAL RECRUITMENT

The Labor Code and RA 8042 as amended by RA 10022 also known as “The
migrant workers and overseas Filipinos act of 1995, as amended, further improving the
standard of protection and promotion of the welfare of migrant workers, their families
and overseas Filipinos in distress, and for other purposes”, provides that there are 2 MAIN
TYPES of Illegal recruitment.
I. SIMPLE ILLEGAL RECRUITMENT

Simple Illegal Recruitment is present when a person engaged in recruitment and
placement of workers without valid license or authority to do so and when said person
commits any prohibited practices enumerated in Republic Act 10022 Section 6. It can be
done to LOCAL WORKERS or MIGRANT WORKERS.
A. Prohibited Practices
Under Section 6 of RA 10022, the following acts are prohibited:
1. To charge or accept directly or indirectly any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of
Labor and Employment, or to make a worker pay or acknowledge any
amount greater than that actually received by him as a loan or advance;
2. To furnish or publish any false notice or information or document in
relation to recruitment or employment;
3. To give any false notice, testimony, information or document or commit any
act of misrepresentation for the purpose of securing a license or authority
under the Labor Code, or for the purpose of documenting hired workers
with the POEA, which include the act of reprocessing workers through a job
order that pertains to nonexistent work, work different from the actual
overseas work, or work with a different employer whether registered or not
with the POEA;
4. To include or attempt to induce a worker already employed to quit his
employment in order to offer him another unless the transfer is designed to
liberate a worker from oppressive terms and conditions of employment;
5. To influence or attempt to influence any person or entity not to employ any
worker who has not applied for employment through his agency or who has
formed, joined or supported, or has contacted or is supported by any union
or workers' organization;
6. To engage in the recruitment or placement of workers in jobs harmful to
public health or morality or to the dignity of the Republic of the Philippines;
7. To fail to submit reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures
and such other matters or information as may be required by the Secretary
of Labor and Employment;
8. To substitute or alter to the prejudice of the worker, employment contracts
approved and verified by the Department of Labor and Employment from
the time of actual signing thereof by the parties up to and including the
period of the expiration of the same without the approval of the Department
of Labor and Employment;
9. For an officer or agent of a recruitment or placement agency to become an
officer or member of the Board of any corporation engaged in travel agency
or to be engaged directly or indirectly in the management of travel agency;
10. To withhold or deny travel documents from applicant workers before
departure for monetary or financial considerations, or for any other reasons,
other than those authorized under the Labor Code and its implementing
rules and regulations;
11. Failure to actually deploy a contracted worker without valid reason as
determined by the Department of Labor and Employment;
12. Failure to reimburse expenses incurred by the worker in connection with his
documentation and processing for purposes of deployment, in cases where
the deployment does not actually take place without the worker's fault.
Illegal recruitment when committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage; and
13. To allow a non-Filipino citizen to head or manage a licensed
recruitment/manning agency.
B. Additional Prohibited Acts
The following acts are also prohibited under the law:
1. Grant a loan to an overseas Filipino worker with interest exceeding eight
percent (8%) per annum, which will be used for payment of legal and
allowable placement fees and make the migrant worker issue, either
personally or through a guarantor or accommodation party, postdated checks
in relation to the said loan;
2. Impose a compulsory and exclusive arrangement whereby an overseas
Filipino worker is required to avail of a loan only from specifically
designated institutions, entities or persons;
3. Refuse to condone or renegotiate a loan incurred by an overseas Filipino
worker after the latter's employment contract has been prematurely
terminated through no fault of his or her own;
Filipino worker is required to undergo health examinations only from
specifically designated medical clinics, institutions, entities or persons,
except in the case of a seafarer whose medical examination cost is
shouldered by the principal/shipowner;
Filipino worker is required to undergo training, seminar, instruction or
schooling of any kind only from specifically designated institutions, entities
or persons, except for recommendatory trainings mandated by
principals/shipowners where the latter shoulder the cost of such trainings;
6. For a suspended recruitment/manning agency to engage in any kind of
recruitment activity including the processing of pending workers'
applications; and
7. For a recruitment/manning agency or a foreign principal/employer to pass
on the overseas Filipino worker or deduct from his or her salary the payment
of the cost of insurance fees, premium or other insurance related charges, as
provided under the compulsory worker's insurance coverage.
II. ECONOMIC SABOTAGE ILLEGAL RECRUITMENT

Economic Sabotage type of illegal recruitment is present when acts constituting
illegal recruitment was done by a SYNDICATE or IN LARGE SCALE against LOCAL
or MIGRANT workers.
A. Syndicated Economic Sabotage
This type of economic sabotage illegal recruitment is present when a group of
three or more persons confederating with one another commits any act
recruitment or any prohibited acts enumerated in RA 10022 and the Labor Code
absent any valid license or authority.
B. Large Scale Economic Sabotage
This type of economic sabotage illegal recruitment is present when a person who
has no valid license or authority to engage in recruitment activities or commits
acts prohibited in the Labor Code and RA 10022 commits such against three or
more persons individually or as a group.
ROMNICK C. ERICE
Illegal Recruitment vs. Estafa
In Illegal Recruitment, it is not required that it be shown that the

recruiter wrongfully represented himself as a licensed recruiter. It is the
absence of the necessary license or authority to recruit and deploy
workers that renders the recruitment activity unlawful. To prove
illegal recruitment, it must be shown that "the accused gave the
complainants the distinct impression that she had the power or ability to
deploy the complainants abroad in a manner that they were convinced to
part with their money for that end.”1
On the other hand, Estafa is committed by the accused who
defrauded another by abuse of confidence, or by means of deceit.
In Suliman vs. People,2 the Supreme Court laid down the elements
of estafa by means of deceit under Article 3 l 5(2)(a) of the Revised Penal
Code (RPC), as follows:
(a) that there must be a false pretense or fraudulent representation
as to his power, influence, qualifications, property, credit, agency,
business or imaginary transactions;
(b) that such false pretense or fraudulent representation was made
or executed prior to or simultaneously with the commission of the fraud;
(c) that the offended party relied on the false pretense, fraudulent
act, or fraudulent means and was induced to part with his money or
property; and
(d) that, as a result thereof, the offended party suffered damage.3
Moreover, it is well-settled that a person, for the same acts, may

be convicted separately for illegal recruitment under RA 8042 and
estafa under Article 315(2) (a) of the RPC. In People vs. Daud, the Court
explained:
In this jurisdiction, it is settled that a person who commits
illegal recruitment may be charged and convicted separately
of illegal recruitment under the Labor Code and estafa under
par. 2(a) of Art. 315 of the Revised Penal Code. The offense
of illegal recruitment is malum prohibitum where the criminal
intent of the accused is not necessary for conviction, while
estafa is malum in se where the criminal intent of the
accused is crucial for conviction. Conviction for offenses
under the Labor Code does not bar conviction for offenses
punishable by other laws. Conversely, conviction for estafa
under par. 2(a) of Art. 315 of the Revised Penal Code does
1
People vs. Abat, 661 Phil. 127, 132 (2011).
2
747 Phil. 719, 731 (2014).
3
Ibid. Underscoring supplied.
not bar a conviction for illegal recruitment under the Labor
Code. It follows that one's acquittal of the crime of estafa will
not necessarily result in his acquittal of the crime of illegal
recruitment in large scale, and vice versa. (Citations
omitted)4
Liabilities of Local Recruitment Agency and Foreign Employer
a. Local Recruitment Agency

It is a rule that a Local Recruitment Agency (LRA) shall be jointly
and solidarily liable with its principal or foreign-based employer for
any violation of the recruitment agreement and violation of contracts of
employment.5
In Royal Crown Internationale vs. NLRC,6 it was noted that in
applying for its license to operate, a private employment agency for
overseas recruitment and placement, petitioner (applicant) was required
to submit, among others, a document or verified undertaking whereby it
assumed all responsibilities for the proper use of its license and the
implementation of the contracts of employment with the workers it
recruited and deployed for overseas employment.
However, in Feagle Construction Corporation vs. Gayda,7 the
Supreme Court held for an exception, where the workers themselves
insisted for the recruitment agency to send them back to their foreign
employer despite their knowledge of its inability to pay their wages, the
agency is absolved from liability.
b. Foreign Recruitment Agency

Foreign employer shall assume joint and solidary liability with
the employer for all claims and liabilities which may arise in connection
with the implementation of the contract, including but not limited to
payment of wages, death and disability compensation and repatriation.8
In Datuman vs. First Cosmopolitan Manpower and Promotion
Services, Inc.,9 the Supreme Court explained the purpose of the law for
making a joint and solidarily liability imposed by law against recruitment
agencies and foreign employers, to wit:
The above provisions are clear that the private employment
agency shall assume joint and solidary liability with the
employer. This Court has, time and again, ruled that private
employment agencies are held jointly and severally liable
4
People vs. Daud, 734 Phil. 698, 717-718 (2014), citing People v. Yabut, 374 Phil. 575, 586 (1999).
5
Sec. 10(a)(2), Rule V, Book I, IRR.
6
G.R. No. 78085, 16 October 1989.
7
G.R. No. 82310, 18 June 1990.
8
Sec. 1, Rule II, POEA Rules and Regulations
9
G.R. No. 156029, 14 November 2008, citing Hellenic Philippine Shipping, Inc. v. Siete, G.R. No.
84082, March 13, 1991, 195 SCRA 179, 186; Empire Insurance Company v. NLRC, G.R. 121879,
August 14, 1998, 294 SCRA 263, 271-272; P.I. Manpower Placements, Inc. v. NLRC (Second
Division), G.R. No. 97369, July 31, 1997, 276 SCRA 451, 461; Citations omitted.
with the foreign-based employer for any violation of the
recruitment agreement or contract of employment. This joint
and solidary liability imposed by law against recruitment
agencies and foreign employers is meant to assure the
aggrieved worker of immediate and sufficient payment of
what is due him. This is in line with the policy of the
state to protect and alleviate the plight of the working
class.10
Termination of Contract of migrant worker without just and valid

cause
In case of termination of overseas employment,
 without just, valid or authorized cause as defined by law or
contract, or
 any unauthorized deductions from the migrant worker's
salary
...shall entitle the worker to full reimbursement of:
(1) his placement fee and the deductions made with interest at twelve
percent (12%) per annum, and;
(2) his salaries for the unexpired portion of his employment contract [or
for three (3) months for every year of the unexpired term], whichever is
less.11
Nota Bene:
Rule before Serrano (1995-2009): 3- month salary rule applied
In Flourish Maritime Shipping vs. Almanzor,12 the Supreme Court
held that the employment contract involved in the instant case covers a
two-year period but the overseas contract worker actually worked for
only 26 days prior to his illegal dismissal. Thus, the three months’
salary rule applies.13
Rule after Serrano: invalidated the 3-month salary cap clause

In Serrano vs. Gallant Maritime Services, Inc.,14 the SC there held
that “said clause is unconstitutional for being an invalid classification, in
violation of the equal protection clause.”
Subsequently, the same was overturned in the 2011 SC ruling in
Yap vs. Thenamaris Ship’s Management and Intermare Maritime
Agencies, Inc.,15 where the SC affirmed the Serrano ruling, however, did
not apply the Operative Fact doctrine, reasoning that “As an exception to
10
Emphasis supplied.
11
Sec. 10, R.A. 8042, as amended by R.A. 10022.
12
G.R. No. 177948 (2008)
13
Ibid, Emphasis supplied.
14
G.R. No. 167614 (2009)
15
G.R. No. 179532, 30 May 2011.
the general rule, the doctrine applies only as a matter of equity and fair
play.”
In 2010, a year after Serrano, RA 10022,16 in amending RA 8042,17
reincorporated the nullified 3-month salary cap clause. However, the SC
did not allow this and again struck the revived clause as unconstitutional
in the 2014 case of Sameer Overseas Placement Agency vs. Cabiles.18
There, the SC opined that:
When a law or a provision of law is null because it is
inconsistent with the Constitution, the nullity cannot be cured
by reincorporation or reenactment of the same or a similar
law or provision. A law or provision of law that was already
declared unconstitutional remains as such unless
circumstances have so changed as to warrant a reverse
conclusion. x x x
Hence, the case of Serrano holds as binding precedent, even after
the passage of RA 10022.
Direct Hiring
Direct Hiring occurs when an employer hires a Filipino worker for
overseas employment without going through the Philippine Overseas
Employment Administration (POEA) or entities authorized by the
Secretary of Labor and Employment.
As a general rule, no employer may hire a Filipino worker for
overseas employment except through the Boards and entities authorized
by the Secretary of Labor. This is pursuant to Article 18 of the Labor
Code which explicitly provides that:
Article 18. Ban on Direct-Hiring. - No employer may hire a
Filipino worker for overseas employment except through
the Boards and entities authorized by the Secretary of
Labor. x x x19
Moreover, there are several exceptions to the above-mentioned

rule, as follows:
(1) Members of the diplomatic corps;
(2) International organizations;
(3) Such other employees as may be allowed by the Secretary of
Labor;
(4) Name hirees – those individuals who are able to secure
contracts for overseas employment on their own efforts and
16
“An Act Amending Republic Act No. 8042, otherwise known as The Migrant Workers And Overseas
Filipinos Act of 1995, as amended, Further Improving The Standard of Protection and Promotion of the
Welfare of Migrant Workers, Their Families and Overseas Filipinos In Distress, And For Other
Purposes”
17
“Migrant Workers And Overseas Filipinos Act of 1995”
18
G.R. No. 170139, 05 August 2014.
19
Emphasis supplied.
representation without the assistance or participation of any agency. Their
hiring, nonetheless, has to be processed through the POEA.20
Rebosura, Roy C
SUSPENSION AND/OR CANCELLATION OF LICENSE OR

AUTHORITY
Jurisdiction
20
Part III, Rule III of the POEA Rules Governing Overseas Employment, as amended.
The SOLE and the POEA Administrator are vested with power to suspend or cancel any license or
authority to recruit employees for overseas employment (Azucena, Vol. 1, 2016, p. 100; LC, Art. 35).
The SLE has the power under Article 35 of the LC to apply the penalties of suspension and
cancellation of license and authority; SLE also has the authority, under Article 36 of the LC, not only
to restrict and regulate the recruitment and placement activities of all agencies, but also to promulgate
rules and regulations to carry out the objectives and implement the provisions governing said activities.
Pursuant to this rule-making power, the SLE authorized the POEA to conduct the necessary
proceedings for the suspension or cancellation of license or authority of any agency or entity for certain
enumerated offenses x x x (Trans Action Overseas Corporation vs. The Honorable Secretary of Labor,
GR 109583, September 5, 1997).
Thus, the Court concludes that the power to suspend or cancel any license or authority to recruit
employees for overseas employment is concurrently vested with the POEA and the SLE (People vs.
Diaz, 259 SCRA 441, 1996).
AA. Local Employment
Under REVISED RULES AND REGULATIONS GOVERNING RECRUITMENT AND
PLACEMENT FOR LOCAL EMPLOYMENT, DO 141-14 .
A. Under Section 51, Classification of Offenses- Administrative offenses are classified into serious,
less serious and light, depending on the gravity. The Regional Director, after observance of due
process, shall impose the appropriate administrative penalties in very recruitment violation
a. The following are considered serious offenses with the penalty of cancellation of
license/authority:
1. Recruitment and placement of workers in violation of anti-child labor laws.
2. Engaging in acts of misrepresentation for the purpose of securing a license or renewal thereof.
3. Engaging in the recruitment or placement of workers in jobs harmful to public health or morality or
to the dignity of the Republic of the Philippines.
4. Transferring, conveying or assigning the license/authority to any person or entity other than the one
in whose favor it was issued.
5. Charging or accepting directly or indirectly any amount form the worker.
6. Continuous operation despite suspended license or authority.
7. Conviction for violation of any of the provisions of Republic Act No. 9208, known as the Anti-
Trafficking in Persons Act of 2003, or Republic Act No. 7610, as amended by Republic Act No. 9231
and the Implementing Rules and Regulations.
8. Obstructing or attempting to obstruct inspection by the Secretary, the Regional Director or their duly
authorized representatives.
9. Substituting or altering to the prejudice of the worker, employment contracts to be approved by the
Regional Office form the time of actual signing thereof by the parties up to and including the period of
the expiration of the same without the approval of the Regional Office.
10. Inducing or attempting to induce an already employed worker to transfer from or leave his
employment for another unless the transfer is designed to liberate a worker from oppressive terms and
conditions of employment.
11. Influencing or attempting to influence any person or entity not to employ any worker who has not
applied for employment through his agency.
b. The following are less serious offenses with their corresponding penalties:
First Offense – Suspension of license for two (2) months to six (6) months
Second Offense – Suspension of license for six (6) months to one (1) year
Third Offense – Cancellation of License
1. Engaging in acts of misrepresentation in connection with recruitment and placement of workers.
2. Engaging in recruitment activities in places other than that specified in the license without previous
authorization from the Department.
3. Appointing or designating agents, representatives or employees without prior approval of the

Department.
4. Failure to comply with the undertaking to provide Pre-Employment Orientation (PEO) to workers.
5. Coercing workers to accept prejudicial arrangements in exchange for certain benefits that rightfully
belong to the workers.
6. Disregard of orders, notices and other legal processes issued by the Department.
7. Failure to submit within the prescribed period the required reports related to local recruitment and
placement.
8. Violation of other pertinent provisions of the Code and other relevant laws, rules and regulations,
guidelines and issuances on recruitment and placement of workers for local employment and the
protection of their welfare, including the filing or renewal of license or authority beyond the prescribed
period.
B.. SECTION 53. Penalty for cases involving five or more complainants. – A respondent found
guilty of committing an offense regardless of the number or nature of charges, against five or more
complainants in a single case shall be imposed the penalty of cancellation of license.
C. SECTION 61. Suspension of license pending investigation. – Pending investigation of a

complaint for any offense listed in Section 51 of these rules, the Regional Director, who is hearing the
case, may suspend the license of the agency concerned on any of the following ground:
a. There exist reasonable grounds to believe that the continued operation of the agency will lead to
exploitation of the workers being recruited or further violation of the law or rules;
b. Failure of the agency to submit its position paper/answer on the complaint within ten (10) days upon
receipt of the notice; or
c. Failure to attend the hearing on two occasions despite due notice.
Appeal from the order of suspension/cancellation

D. SECTION 62. Appeal from the order of suspension/cancellation. – The decision of the Regional
Director is appealable to the Secretary by filing a notice of appeal with the appropriate Regional Office
within ten (10) days from receipt of a copy of the order, on any of the following grounds:
a. If there is prima facie evidence of abuse of discretion on the part of the Regional Director;
b. If the decision and/or award was secured through fraud or coercion;
c. If made purely on questions of law; and/or
d. If serious errors in the findings of facts are raised which, if not corrected, would cause grave or
irreparable damage or injury to the appellant.
BB. Overseas Employment/Deployment
Under the REVISED POEA RULES AND REGULATIONS GOVERNING THE
RECRUITMENT AND EMPLOYMENT OF LANDBASED OVERSEAS FILIPINO WORKERS OF
2016.
Under RULE III - Recruitment Violation Cases, Classification of Offenses and Schedule of
Penalties
A. SECTION 143. Grounds for Imposition of Administrative Sanctions Against a Licensed

Recruitment
Agency. — Commission by a licensed recruitment agency of any of the offenses below shall be a
ground for the mposition of the corresponding penalty.
I.. SERIOUS OFFENSES are those that, by their nature and effect, are punishable by
cancellation of license.
a. Knowingly deploying a minor.
Penalty: Cancellation of License
b. Engaging in acts of gross misrepresentation for the purpose of securing a license or renewal thereof,
such as violation of the Anti-Dummy Law, or giving false information or fictitious documents in
relation to a matter that is material for the approval of the license application or renewal.
c. Engaging in an act of reprocessing by documenting workers through a job order that pertains to:
(1)non-existent work; (2) positions different from the actual overseas work or for positions different
from the actual visa category, unless covered by an undertaking of visa usage by the licensed
recruitment agency and an affidavit of awareness and consent by the worker, and a job description
signed by the worker and approved by the Administration; or (3) a different principal/employer
whether or not accredited with the POEA.
d. Engaging in the recruitment or placement of workers in jobs declared by the Administration as
harmful to public health or morality or to the dignity of the Republic of the Philippines.
e. Transfer or change of ownership or control of a single proprietorship licensed to engage in overseas
employment.
f. For the sole proprietor, partner, or officer/s or member/s of the Board of any licensedrecruitment
agency to become an officer or member of the Board of any corporation or partnership engaged
directly or indirectly in the management of a travel agency. Penalty: Cancellation of License
g. Charging and collecting of placement fee for deployment to countries where the prevailing system,
either by law, policy or practice does not allow the charging and collection of placement and
recruitment fees as determined by the Administration. Penalty: Cancellation of License and refund of
the placement and recruitment fee collected from the worker, with interest at 6% per annum from
collection.
h. Charging and accepting directly or indirectly any amount greater than that specified in the schedule
of allowable placement fees, or when such charging or collection is prohibited by any law, rules or
policy, or making a worker pay or acknowledge any amount greater than that actually received by
him/her as loan or advance.
Penalty: Cancellation of License plus refund of the excess placement fee collected from the worker,
with interest at 6% per annum from collection.
i. Passing on to the worker fees and costs chargeable to the principal/employer.
Penalty: Cancellation of License plus refund of the fees and costs collected from the worker, with
interest at 6% per annum from collection.
j. Deploying workers whose employment and travel documents were not processed by the
Administration.
k. Allowing a non-Filipino citizen to head or manage, directly or indirectly, a licensed recruitment
agency. For this purpose, “heading or managing” a licensed recruitment agency shall refer to:
1. controlling and supervising the operations of the licensed recruitment agency or any
branch thereof; or
2. exercising the authority to hire or fire employees and to lay down and execute
management policies of the licensed recruitment agency or branch thereof.
II. LESS SERIOUS OFFENSES are those that by their nature and effect are punishable by the
penalty of suspension to cancellation of license.
l. Knowingly deploying a worker below the minimum age requirement.
Penalty:
1st Offense — Suspension of License (Two Months to Six Months)
2nd Offense — Suspension of License (Six Months and One day to One year)
3rdOffense — Suspension of License (One year and One day to Two years)
4thOffense — Cancellation of License
m. Charging, imposing and accepting directly or indirectly, any amount of money, goods or services, or
any fee or bond for any purpose whatsoever before employment is obtained for an applicant worker.
Penalty:
1stOffense — Suspension of License (Two Months to Six Months)
The penalty shall carry the accessory penalty of refund of the fee collected from the worker in case of
non-deployment, with interest at 6% per annum.
n. Collecting any fee from a worker without issuing the official receipt clearly showing the
amount paid and the purpose for which payment was made.
Penalty:
o. Engaging in any other acts of misrepresentation in connection with recruitment and placement of
workers, such as furnishing or publishing any false notice, information or document in relation to
recruitment or employment.
Penalty:
p. Obstructing inspection by the Secretary, the Administrator or their duly authorized representatives.
Penalty:
1st Offense — Suspension of License (Two Months to Six Months)
2ndOffense — Suspension of License (Six Months and One day to One year)
3rdOffense — Suspension of License (One year to Two years)
q. Substituting or altering, to the prejudice of the worker, a POEA-approved employment contract,
from the time of actual signing thereof by the parties up to and including the period of the expiration of
the same, without the approval of the POLO or POEA.
Penalty:
r. Withholding or denying release of travel or other pertinent documents from a worker despite
demand.
Penalty:
3rdOffense — Suspension of License (One year to Two years)
Plus return of the documents, or refund of the cost of the documents that the licensed recruitment
agency failed to return.
41s. Engaging in recruitment activities in places other than that specified in the license or branch
authority without a special recruitment authority.
Penalty:
t. Appointing or designating, representatives or employees without notice to the Administration, in
accordance with Section 27 of these Rules.
Penalty:
u. Allowing an accredited principal/employer or its representative to conduct or participate in
recruitment activities outside the registered business address of the licensed recruitment agency without
prior approval from the Administration.
Penalty:
v. Allowing persons who are disqualified to participate in the overseas employment program under
existing laws, rules and regulations to participate in the ownership, management and operation of the
recruitment agency.
Penalty:
w. Failure to reimburse expenses incurred by the worker in connection with his/her documentation and
processing for purposes of deployment, where deployment does not take place without any fault on the
part of the worker.
Penalty:
2nd Offense — Suspension of License (Six Months and One day toOne year)
The penalty shall carry the accessory penalty of immediate refund of expenses incurred by the worker.
x. Failure to comply with any of the undertakings submitted to the Administration in relation to Section
4(F).
Penalty:
1stOffense — Suspension of License (Two Months to
Six Months)
y. Imposing a compulsory and exclusive arrangement whereby an OFW is required to undergo health
examinations, training, seminar, instruction or schooling of any kind only from specifically designated
institutions, entities, or persons or medical clinics, as the case may be, unless the cost is shouldered by
the principal or licensed recruitment agency.
Penalty:
z. Imposing a compulsory and exclusive arrangement whereby an OFW is required to avail
of a loan from a specifically designated institution, entity, or person.
Penalty:
2
nd Offense — Suspension of License (Six Months and One day to One year)
aa. Refusing to condone or renegotiate a loan incurred by an OFW after the latter’s
employment contract has been prematurely terminated through no fault of his/her own.
Penalty:
bb. Facilitating, arranging or granting of a loan to an OFW with interest exceeding eight percent
(8%) per annum which will be used for payment of legal and allowable placement fees and
making the OFW issue, either personally or through a guarantor or accommodation party,
postdated checks in relation to the said loan.
Penalty:
cc. Failure to monitor and report significant incidents regarding the condition and status of the
deployed worker in relation to Section 209.
Penalty:
dd. Collecting any amount as payment for documentation costs not prescribed by these Rules
or other issuances of the Administration, or an amount greater than the actual
documentation costs, as covered by official receipts issued by entities which received the
payments.
Penalty:
2 Offense — Suspension of License (Six Months and One day to One year)
The penalty shall carry the accessory penalty of immediate refund of the excess amount of
documentation costs collected.
ee. Falsifying or altering employment or travel documents of applicant worker.
Penalty:
ff. Inducing a worker already pre-qualified/ contracted, whether deployed or not, to withdraw
from or to abandon his/her employment in order to offer him/her another, unless the transfer
is designed to liberate a worker from oppressive terms and conditions of employment.
Penalty:
gg. Willful disobedience of lawful orders, notices, or other legal processes issued by the
Administration.
Penalty:
4
thOffense — Cancellation of License
hh. Failure to submit reports as required under the rules and other issuances of the
Administration.
Penalty:
III. LIGHT OFFENSES are those that by their nature and effect are punishable by the penalty of
reprimand to suspension of license.
ii. Influencing any person or entity not to employ any worker who has not applied for employment
through his/her agency, or influencing any person or entity not to employ any worker who has formed,
joined or supported, or has contacted or is supported by any union or workers’ organization;
Penalty:
1st Offense — Reprimand
2nd Offense — Fine of PhP20,000.00
3rd Offense — Suspension of License (One month to Three months)
4th Offense onwards— Suspension of License (Three months to Six months)
jj. Failure to actually deploy a contracted worker within sixty (60) days from the issuance of
OEC without valid reason.
Penalty:
kk. Violations of other pertinent provisions of the Labor Code and other relevant laws, rules
and regulations, guidelines and other issuances on recruitment and placement of workers
for overseas employment and the protection of their welfare.
Penalty:
B. SECTION 168.Grounds for the Issuance of Order of Preventive Suspension.—

(1) For the recruitment agency:
a. There exist reasonable grounds to believe that the continued operation of the licensed recruitment
agency will lead to further violation or exploitation of workers being recruited or will adversely affect
friendly relations with any country or will prejudice national interest; and b. The evidence of guilt is
strong that there is a case for violation of the pertinent provisions of the Labor Code, its implementing
rules and regulations, and POEA Rules and Regulations pertaining to serious or less serious offenses as
described in these Rules or any issuance of the Administration.
(2) For a Foreign Principal/Employer:
a. When the evidence of guilt is strong; and
b. There is reasonable ground to believe that the continued deployment to the principal will result in
further violation or exploitation of Overseas Filipino Workers.
(3) For a Migrant Worker:
a. When the evidence of guilt is strong; and
b. The charge involves a serious offense.
C. SECTION 169.Imposition of Preventive Suspension. —

A) After submission of the Answer in accordance with Section 153 or after the lapse of the period
within
which to file an Answer and after the conduct of a hearing, the Administrator may issue an Order of
Preventive Suspension in accordance with Section 168.
B) The Administration may, upon docketing of a recruitment violation case and without prior notice
and hearing, issue an Order of Preventive Suspension when the worker is a minor at the time of
deployment.
C) The Administration may likewise issue an Order of Preventive Suspension upon recommendation of
the embassy/POLO, or when recommended by any government agencies who are members of the Inter-
Agency Council Against Trafficking (IACAT) or the Presidential Task Force Against Illegal
Recruitment (PTFAIR), supported by a detailed report, sworn statement/s of worker/s, and other
evidence; Provided that, the concerned party shall be given a period of five (5) days from receipt of the
Show Cause Order within which to file an Answer/Explanation. Failure to file such
Answer/Explanation within the prescribed period may result in the imposition of Order of Preventive
Suspension on the agency concerned. No Motion for Extension to file an Answer/Explanation shall be
allowed.
On the other hand, the Administration may, upon docketing of the case against a principal or employer,
issue an Order of Preventive Suspension in the following instances:
a. When there are five (5) or more complainants and the nature of the offense involves serious or less
serious offense;
b. When the worker involved is an underage migrant worker;
c. When the worker dies or suffers severe physical/psychological maltreatment or sexual abuse in the
course of the employment; or
d. When recommended by the embassy/POLO supported by a detailed report and
sworn statement/s of workers.
In case of a foreign placement agency, an Order of Preventive Suspension shall be issued on the basis
of direct or indirect participation in the above-mentioned circumstances. The Administrator shall render
a decision within ninety (90) days from the date of receipt of the Order of Preventive Suspension.
Otherwise, the suspension shall be deemed lifted without prejudice to the outcome of the investigation.
D. SECTION 170. Effects of Orders of Preventive Suspension and Suspension or Cancellation of

License. — An Order of Preventive Suspension, Suspension or Cancellation of License shall have the
effect of suspending or terminating all activities of the recruitment agency which fall under the
definition of recruitment and placement, including the processing of pending contracts of applicant
workers. The suspension or cancellation shall not, however, affect the transfer of accreditation of the
principal/employer to another licensed recruitment agency.
Dadulla, Steven
REMITTANCE OF FOREIGN EXCHANGE EARNINGS
Is remittance of foreign exchange earnings by OFWs mandatory?

Yes. (Art. 22) GR: It shall be mandatory for all Filipino workers abroad to
remit a portion of their foreign exchange earnings to their families, dependents,
and/or beneficiaries in the country in accordance with rules and regulations
prescribed by the DOLE Secretary. It should be made through the Philippine banking
system.
EXCEPTION: Remittance is not mandatory in the following instance:

(a) Where the worker’s immediate family members, dependents, or beneficiaries
are residing with him abroad;
(b) Filipino servicemen working in the U.S. military installations;
(c) Immigrants and Filipino professionals and employees working with the United
Nations agencies or specialized bodies.
Type of Employment Amount of Remittance required in % of

basic salary
Seamen, mariners 80%
Workers of Filipino contractors and 70%
construction companies
Doctors, engineers, teachers, nurses, and 70%
other professionals with free board and
lodging
Professionals without free board and 50%
lodging
Domestic and other service workers 50%
All other workers 50%
PROHIBITED ACTIVITIES (Art. 34): CAFF-IndIE-OFF-SOW

1. CA – Charge or Accept amount greater than that specified in the schedule of
allowable fees
2. F – Furnish or publish any false notice in relation to recruitment
3. F – False notice for the purpose of securing a license or authority
4. Ind – Induce or attempt to induce worker already employed to quit or
transfer
5. I – Influence or attempt to influence not to employ any worker
6. E – Engage in recruitment of jobs harmful to public health or morality or to
the dignity of PH
7. O – Obstruct or attempt to obstruct inspection by the Secretary of Labor
8. FF – Fail to File required reports to Sec. Labor
9. S – Substitute or alter employment contracts already approved by DOLE
10. O – Officer or BOD of travel agency
11. W – Withhold or deny travel documents from applicant workers before
departure for monetary or financial considerations
Yadao, Marites
LABOR STANDARDS
Definition:
Labor Standards Law – part of labor law which prescribes the minimum terms and condition of
employment which the employer is required to grant to its employees
Conditions of Employment:
Coverage
A. Article 82:
Shall apply to the employees in al establishments and undertaking whether for profit or not are
covered by the law on labor standards
B. The following are excluded from the coverage of the law on labor standards:
B.1 Government employees
B.2 Managerial employees including members of the managerial staff;
B.3 Domestic Helpers or persons in the personal service of another;
B.4 Workers paid by results;
B.5 Non-agricultural field personnel; and
B.6 Members of the family of the employer.
Hours of Work
Normal hours of work of any employee shall not exceed eight (8) hours of a day
The following are considered as compensable hours worked:

A. All time during which an employee is required to be on duty or to be at the employer’s
premise or to the be at a prescribed workplace; and
B. All time during which employee is suffered or permitted to work
The total normal hours of work per day is eight (8) hours daily. Any work exceeding the said eight (8)
normal hours is considered overtime work.
The normal working can be reduced provided that no corresponding reduction is made on the
employee’s wage or salary equivalent to an eight- (8) hour work day. In instance where the number of
hours required by the nature of work is less than 8 hours, such number of hours should be regarded a s
the employee’s full working day.
The flexible work arrangement refers to alternative arrangement or schedule other than the traditional
or standard work hours, workday and workweek. The effectivity and implementation of any of the
flexible work arrangement should be temporary in nature.
In R.A. No. 8972 known as “The Solo Parents’ Welfare Act of 2000”, solo parents are allowed to work
on a flexible schedule, the flexible work schedule is defined in the same law as the right granted to a
solo parent employee to vary his/her arrival and departure time without affecting the core work hours
as defined by the employer.
Compressed Work Week
Compressed Work Week or “CWW” refer to the situation where the normal workweek is reduced to
less than six (6) days but the total number of work-hours of forty-eight (48) per week remains. The
normal workday is increased to more than eight (8) hours but not exceed twelve (12) hours, without
corresponding overtime premium. The CWW scheme is undertaken as a result of an express and
voluntary agreement of majority of the covered employees or their duly authorized representatives.
The compensation be made under valid CWW unless there is more favorable practice existing in the
firm, work beyond eight (8) hours will not be compensable by worked per day shall not exceed twelve
(12) hours. In any case, any work performed beyond twelve (12) hours a day or forty-eight (48) hours
per week shall be subject to overtime pay.
NUÑEZ, EMERSON R.
Power Interruptions / Brownouts

Section 4 (d), Rule I, Book III of the Rules Implementing the Labor Code provides:
The time during which an employee is inactive by reason of interruptions in his work beyond his
control shall be considered working time either if the imminence of the resumption of work
requires the employee’s presence at the place of work or if the interval is too brief to be utilized
effectively and gainfully in the employee’s own interest.
However, there is an exception to this rule, and that is when the brownouts run for more than
twenty (20) minutes and the employees can (1) either leave their workplace or go elsewhere
within or without the work premises or (2) can use the time effectively for their own interest.
(Poquiz, Labor Standards and Social Legislation with Notes and Comments, p. 229).
Meal Break
Article 85 of the Labor Code provides “Subject to such regulations as the Secretary of Labor
may prescribe, it shall be the duty of every employer to give his employees not less than sixty
(60) minutes time-off for their regular meals.”
Remember that the general rule: Employees are entitled to at least one (1) hour time-off for
regular meals (Art. 85) which can be taken inside or outside company premises. In the case of
PAL v. NLRC, G.R. No. 132805, the Supreme Court held that for employees who go out of the
company premises, they should return to their post on time. Moreover, the one-hour period must
be undisturbed where employees can freely and effectively use this hour for eating and resting
for them to have better performance at work.
Employees are not to be compensated for this one complete meal period since they are not
required to work during this time (Sime Darby Pilipinas, Inc. v. NLRC, G.R. No. 119205, 15
April 1998). But it would be compensable overtime where employees are required to stand by for
emergency work during this time (PAN-AM v. PAN-AM Employees Association, 1 SCRA 527).
The exception to the general rule can be found under Section 7, Rule III of the Rules
Implementing the Labor Code in which an employer is allowed to prescribe a shorter meal period
of at least twenty (20 minutes) in the following circumstances:
1. Where the work is non-manual in nature or does not involve strenuous physical exertion;
2. Where the establishment regularly operates not less than sixteen (16) hours a day;
3. In cases of actual or impending emergencies or there is urgent work to be performed on
machineries, equipment or installation to avoid serious loss which the employer would
otherwise suffer; and
4. Where the work is necessary to prevent serious loss of perishable goods.
In all these circumstances, the employees must be compensated.
Waiting Time
Section 5, Rule I, Book III of the Rules Implementing the Labor Code provides:
(a) Waiting time spent by an employee shall be considered as working time if waiting is
an integral part of his work or the employee is required or engaged by the employer to
wait.
(b) An employee who is required to remain on call in the employer’s premises or so close
thereto that he cannot use the time effectively and gainfully for his own purpose shall
be considered as working while on call. An employee who is not required to leave
word at his home or with company officials where he may be reached is not working
while on call.
Here, the payment for this “non-productive time” is called idle-time pay (Poquiz, Labor
Standards and Social Legislation with Notes and Comments, p. 229). However, it is necessary
that the work is unbroken or in other words, continuous, in order to be entitled to idle-time pay.
Espina, Ariane Kae
TOPICS: Night Shift Differential up to Rest Periods
Article 86 Night Shift Differential
Every employee shall be paid a night shift differential of not less than ten percent (10%) of
his regular wage for each hour of work performed between ten o’clock in the evening and six
o’clock in the morning.
Notes:
 According to Section 2 Rule II, Implementing Rules and Regulations, Book III, “An
employee shall be paid night shift differential of no less than ten per cent (10%) of
his regular wage for each hour of work performed between ten o’clock in the evening
and six o’clock in the morning.”
As to Coverage of Night Shift Differential
This rule shall apply to all employees except:
(a) Those of the government and any of its political subdivisions, including
government-owned and/or controlled corporations;
(b) Those of retail and service establishments regularly employing not more than
five (5) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of this Code;
(e) Field personnel and other employees whose time and performance is
unsupervised by the employer including those who are engaged on task or contract
basis, purely commission basis, or those who are paid a fixed amount for performing
work irrespective of the time consumed in the performance thereof. (Section 1, Rule
II, Implementing Rules and Regulations, Book III)
Additional Compensation
Where an employee is permitted or suffered to work on the period covered after his
work schedule, he shall be entitled to his regular wage plus at least twenty-five per
cent (25%) and an additional amount of no less than ten per cent (10%) of such
overtime rate for each hour or work performed between 10 p.m. to 6 a.m. (Section 3,
Rule II, Implementing Rules and Regulations, Book III)
Additional Compensation on Scheduled Rest Day/Special Holiday
An employee who is required or permitted to work on the period covered during rest
days and/or special holidays not falling on regular holidays, shall be paid a
compensation equivalent to his regular wage plus at least thirty (30%) per cent and
an additional amount of not less than ten (10%) per cent of such premium pay rate
for each hour of work performed. (Section 4, Rule II, Implementing Rules and
Regulations, Book III)
Additional Compensation on Regular Holidays
For work on the period covered during regular holidays, an employee shall be entitled
to his regular wage during these days plus an additional compensation of no less
than ten (10%) per cent of such premium rate for each hour of work performed.
(Section 5, Rule II, Implementing Rules and Regulations, Book III)
Relation to Agreements
Nothing in this Rule shall justify an employer in withdrawing or reducing any
benefits, supplements or payments as provided in existing individual or collective
agreements or employer practice or policy. (Section 6, Rule II, Implementing Rules
and Regulations, Book III)
Jurisprudence
In the case of GMA Network Inc vs. Carlos Pabriga, et. al, G.R. No. 176419 November
27, 2013, the Court through Chief Justice Leonardo-De Castro, held that:
“As regards night shift differential, the Labor Code provides that every
employee shall be paid not less than ten percent (10%) of his regular wage for each
hour of work performed between ten o’clock in the evening and six o’clock in the
morning.
As employees of petitioner, respondents are entitled to the payment of this

benefit in accordance with the number of hours they worked from 10:00 p.m. to 6:00
a.m., if any. In the Decision of the NLRC affirmed by the Court of Appeals, the
records were remanded to the Regional Arbitration Branch of origin for the
computation of the night shift differential and the separation pay.
The Regional Arbitration Branch of origin was likewise directed to require

herein petitioner to produce additional documents where necessary.
Therefore, while we are affirming that respondents are entitled to night shift
differential in accordance with the number of hours they worked from 10:00 p.m. to
6:00 a.m., it is the Regional Arbitration Branch of origin which should determine the
computation thereof for each of the respondents, and award no night shift
differential to those of them who never worked from 10:00 p.m. to 6:00 a.m.”
In this case, herein petitioners composed of Television Technicians were forced to file a
complaint against GMA Network before the National Labor Relations Commission, Regional
Arbitration Branch No. VII, Cebu City due to miserable working conditions. Among other
issues that were resolved is the entitlement of petitioners to Night Shift Differential which the
court remanded the case to Regional Arbitration Branch of origin for the computation of the
night shift differential.
Article 87 Overtime Work
Work may be performed beyond eight (8) hours a day provided that the employee is paid for the
overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five
percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an
additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at
least thirty percent (30%) thereof.
Notes:
Overtime pay refers to an additional compensation for work performed beyond eight (8)
hours.
Rules on Overtime work and pay:
1. Demandable only if the employer had knowledge and consented to the overtime
work rendered by the employee.
2. Compensation for work rendered in excess of the right (8) normal working hours in
a day.
3. For ordinary days, additional twenty-five (25%) of the basic hourly rate.
4. For rest day/special holiday/holiday, additional thirty percent (30%) of the basic
hourly rate.
5. Not unless a day is a rest day, the given day is considered an ordinary day. (pp.
138-139 Labor Laws and Social Legislations: A Barrister’s Companion by Atty. Cecilio
Duka)
Claim to Overtime Pay Must be Proven
Pursuant to the case of Robina Farms Cebu/Universal Robina Corporation vs. Elizabeth
Villa, G.R. No. 175869 April 18, 2016, the Supreme Court through Justice Bersamin ruled
that:
“Firstly, entitlement to overtime pay must first be established by proof that

the overtime work was actually performed before the employee may properly claim
the benefit. The burden of proving entitlement to overtime pay rests on the
employee because the benefit is not incurred in the normal course of business.
Failure to prove such actual performance transgresses the principles of fair play and
equity.
And, secondly, the NLRC's reliance on the daily time records (DTRs) showing
that Villa had stayed in the company's premises beyond eight hours was misplaced.
The DTRs did not substantially prove the actual performance of overtime work. The
petitioner correctly points out that any employee could render overtime work only
when there was a prior authorization therefor by the management. Without the prior
authorization, therefore, Villa could not validly claim having performed work beyond
the normal hours of work.”
With respect to working hours of seamen, according to Legahi vs NLRC, G.R. No. 122240,
November 18, 1999, “The correct criterion in determining whether or not sailors are entitled
to overtime pay is not, therefore, whether they were on board and cannot leave ship beyond
the regular eight (8) working hours a day, but whether they actually rendered service in
excess of said number of hours.
Article 88 Undertime not offset by overtime
Undertime work on any particular day shall not be offset by overtime work on any other day.
Permission given to the employee to go on leave on some other day of the week shall not
exempt the employer from paying the additional compensation required in this Chapter.
Article 89 Emergency Overtime Work
Any employee may be required by the employer to perform overtime work in any of the following
cases:
a. When the country is at war or when any other national or local emergency has been declared
by the National Assembly or the Chief Executive;

b. When it is necessary to prevent loss of life or property or in case of imminent danger to public
safety due to an actual or impending emergency in the locality caused by serious accidents,
fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;

c. When there is urgent work to be performed on machines, installations, or equipment, in order
to avoid serious loss or damage to the employer or some other cause of similar nature;

d. When the work is necessary to prevent loss or damage to perishable goods; and

e. Where the completion or continuation of the work started before the eighth hour is necessary
to prevent serious obstruction or prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall be paid the additional
compensation required in this Chapter.
Article 90 Computation of additional compensation
For purposes of computing overtime and other additional remuneration as required by this
Chapter, the “regular wage” of an employee shall include the cash wage only, without
deduction on account of facilities provided by the employer.
Article 91 Right to Weekly Rest Day
a. It shall be the duty of every employer, whether operating for profit or not, to provide each of
his employees a rest period of not less than twenty-four (24) consecutive hours after every six
(6) consecutive normal work days.

b. The employer shall determine and schedule the weekly rest day of his employees subject to
collective bargaining agreement and to such rules and regulations as the Secretary of Labor
and Employment may provide. However, the employer shall respect the preference of
employees as to their weekly rest day when such preference is based on religious grounds.
Weekly rest day
Every employer shall give his employees a rest period of not less than twenty-four
(24) consecutive hours after every six consecutive normal work days. (Section 3, Rule
III, Implementing Rules and Regulations, Book III)
Preference of employee
The preference of the employee as to his weekly day of rest shall be respected by
the employer if the same is based on religious grounds. The employee shall make
known his preference to the employer in writing at least seven (7) days before the
desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based on religious
grounds will inevitably result in serious prejudice or obstruction to the operations of
the undertaking and the employer cannot normally be expected to resort to other
remedial measures, the employer may so schedule the weekly rest day of his choice
for at least two (2) days in a month. (Section 4, Rule III, Implementing Rules and
Regulations, Book III)
Article 92 When Employer may require work on a Rest Day
The employer may require his employees to work on any day:
a. In case of actual or impending emergencies caused by serious accident, fire, flood,

typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and
property, or imminent danger to public safety;
b. In cases of urgent work to be performed on the machinery, equipment, or installation, to

avoid serious loss which the employer would otherwise suffer;
c. In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort to other measures;
d. To prevent loss or damage to perishable goods;

e. Where the nature of the work requires continuous operations and the stoppage of work
may result in irreparable injury or loss to the employer; and
f. Under other circumstances analogous or similar to the foregoing as determined by the

Secretary of Labor and Employment.
Notes:
1. Rest day of not less than twenty-four (24) hours after six (6) consecutive days of
work.
2. No work, no pay policy applies.
3. If one works, he gets a premium pay for rest day.
4. Premium pay is additional thirty percent (30%) of the basic pay.
5. Employer selects the rest day of his employees.
6. Employer must consider religious reason for the choice of the rest days.
7. Concessions can be made between the parties. (pp.145 Labor Laws and Social
Legislations: A Barrister’s Companion by Atty. Cecilio Duka)
Article 93 Compensation for Rest Day, Sunday or Holiday Work
a. Where an employee is made or permitted to work on his scheduled rest day, he shall be paid
an additional compensation of at least thirty percent (30%) of his regular wage. An employee
shall be entitled to such additional compensation for work performed on Sunday only when it
is his established rest day.
b. When the nature of the work of the employee is such that he has no regular workdays and no
regular rest days can be scheduled, he shall be paid an additional compensation of at least
thirty percent (30%) of his regular wage for work performed on Sundays and holidays.
c. Work performed on any special holiday shall be paid an additional compensation of at least
thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on
the employee’s scheduled rest day, he shall be entitled to an additional compensation of at
least fifty per cent (50%) of his regular wage.
d. Where the collective bargaining agreement or other applicable employment contract stipulates
the payment of a higher premium pay than that prescribed under this Article, the employer
shall pay such higher rate.
Rules for Rest Day Compensation
1. No work no pay policy applies
2. Premium pay of 30% is given only when an employee works during his or her rest
day.
3. If an employee reports for work, he is entitled to 100% basic pay and additional
premium pay of 30% of his basic pay or a total of 130% of his basic pay.
Premium Pay for Rest Day which is also a special holiday
1. An additional compensation of at least thirty percent (30%) of the regular wage of

an employee for work performed on any special holiday.
2. An additional compensation of at least fifty percent (50%) for such holiday work
which falls of employee’s scheduled rest day.

Consolidated PCU Labor Law Review 1st Batch Atty Jeff Santos

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De Ocampo, Jana Karenina Mae

Art.3 of the Labor Code is in line with these Constitutional provisions.

1.Article II, Sections 9, 10, 18, 20

Article III, Sections 4, 8, 10, 16, 18(2)

Section 10. No law impairing the obligation of contracts shall be passed.

Article XIII, Sections 3 &14

Substantive due process

Substantive due process essentially refers to the causes or grounds.

For more detailed discussions, refer to Just Causes.

For separation, authorized causes include installation of labor-saving devices, redundancy,

For more detailed discussions, refer to Authorized Causes.

Procedural due process

Procedural due process essentially refers to the steps or procedures.

Just cause procedure

For just cause procedure, the following are the steps:

Step 1: Issuance of 1st Written Notice

Step 2: Observance of Ample Opportunity to Explain

Step 3: Issuance of 2nd Written Notice

For more detailed discussions, refer to Substantive Due Process.

Authorized cause procedure

For authorized cause procedure, the following are the steps:

Step 1: Issuance of 30-day advance notice to DOLE

Step 2: Issuance of 30-day advance notice to employee

For more detailed discussions, refer to Procedural Due Process.

Consequence for non-observance of due process

Non-observance of due process may result in illegal dismissal.

Contractual Due process

The employer must follow what is stated in the contract.

Read Calalang Williams

LABOR LAW REVIEW 2020-2021

LABOR LAW REVIEW WRITTEN REPORT #1

TYPES OF ILLEGAL RECRUITMENT

I. SIMPLE ILLEGAL RECRUITMENT

II. ECONOMIC SABOTAGE ILLEGAL RECRUITMENT

In Illegal Recruitment, it is not required that it be shown that the

Moreover, it is well-settled that a person, for the same acts, may

Liabilities of Local Recruitment Agency and Foreign Employer

a. Local Recruitment Agency

b. Foreign Recruitment Agency

Termination of Contract of migrant worker without just and valid

Rule after Serrano: invalidated the 3-month salary cap clause

Moreover, there are several exceptions to the above-mentioned

SUSPENSION AND/OR CANCELLATION OF LICENSE OR

1. Recruitment and placement of workers in violation of anti-child labor laws.

5. Charging or accepting directly or indirectly any amount form the worker.

6. Continuous operation despite suspended license or authority.

1. Engaging in acts of misrepresentation in connection with recruitment and placement of workers.

3. Appointing or designating agents, representatives or employees without prior approval of the

C. SECTION 61. Suspension of license pending investigation. – Pending investigation of a

Appeal from the order of suspension/cancellation

b. If the decision and/or award was secured through fraud or coercion;

c. If made purely on questions of law; and/or

A. SECTION 143. Grounds for Imposition of Administrative Sanctions Against a Licensed

B. SECTION 168.Grounds for the Issuance of Order of Preventive Suspension.—

C. SECTION 169.Imposition of Preventive Suspension. —

D. SECTION 170. Effects of Orders of Preventive Suspension and Suspension or Cancellation of

REMITTANCE OF FOREIGN EXCHANGE EARNINGS

Is remittance of foreign exchange earnings by OFWs mandatory?

EXCEPTION: Remittance is not mandatory in the following instance:

Type of Employment Amount of Remittance required in % of

PROHIBITED ACTIVITIES (Art. 34): CAFF-IndIE-OFF-SOW

The following are considered as compensable hours worked:

Power Interruptions / Brownouts