BEDAN RED BOOK A Reviewer based on the 2015 Supreme Court Bar Exam Syllabus Labor Law and Social LegislationLABOR LAW AND SOCIAL. LEGISLATION 1. FUNDAMENTAL PRINCIPLES AND POLICIES ACONSTITUTIONAL PROVISIONS Q: What constitutional provisions are relevant to Labor Law? ‘ANS: The following are the relevant constitutional provisions to Labor Law 4. Article Il, Sections 9, 10, 11, 13, 14, 18, 20 ‘a. Soe. 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 improved quailty of fife for all. b. See 10: The State shall promote social justice in all ohases of national development c. Sea.11; The State values the dignity of every human person and guarantees full respect for human rights. . Sec. 13: The State recognizes the vital role of the youth in nation building and shall promote and protect their physical, moral, spiritual intollectual, and social well-being. It shall inculcate in the youth patriotism and nationalism, and encourage their involvement in public land civic affairs. @. Sec. 14: The State recognizes the role of women in nation-building, and shall ensure the fundamental equslity before the law of women land men. {. See. 12 Tha State affirms labor asa primary social economic force. It shall protect the rights of workers and promote their weltare, g Sec.20: The State recognizes the indispensable role of the privaic Sector, encourages private enterprise, and provides incentives to needed investments. 2. Article Ill, Sections 1, 4, 7, 8, 10, 16, 18 (2) * ‘a Sec. 1: No person shall be deprived of life, liberty. or property without due process of law, nor shall any person be deniod the equa! protection of the laws. b, Soe 4: No law shall be passed abridging the treedom of speech, of ‘expression, or of the press, of the right of the peopls peaceably to assemble and petition the government for redress of grievances. ¢. See. 7. The right of the people 10 information on mattors of public Concer shall be recognized. Access to official records, and to documents and papers pertaining to official acts, transactions, or decisions. as well as to government research data used as basis for policy development, shall be afforded the citizen, subject to such limitations as may be provided by taw. 223d. Sec. & The right of the people, inckiding those employed in tho Public and private sectors. to form unions, associations, or societies {for purposes not contrary to law, shall not be abridged, ©. Sec. 10. No law impairing the obligation of contracts shall be passed. f, Sec. 16. All persons shall Nave the right to a speedy disposition of their cases before all judicial, quasi-judicial, or administrative bodies. 9. Sec. 18. (2) No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted. 3. Article Xill, Sections 1, 2, 3, 13, 14 a. Sec. 1: The Congress shall give highest priority io the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good. ‘To this end, the State shall regulate the acquisition, ownershi and disposition of property and its increments. b. Sec. 2. The promotion of social justice shall include the commitment to create economic opportunities based on freedom of initintive and self-reliance, ©. Sec.3. The State shali 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-organizaton, 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 patticipate in policy and decision: ‘making processes affecting their rights and benefits as may be Provided by law. The Stato chall promote the principle of shared resyursibility between workers and employers and the preferential uso of voluntary modes in seitling disputes, including conciliation, and shail enforce their mutual compliance therewith to foster industrial peace. ‘The State shall regulate the relations between workers and employers, recognizing the right of labor tp iis jus! share in the frults Of production and the right of enterprizos to reasonable retums to investments, and to expansion and growth. . Sec. 13, The state shall establish a special agency for disabled persons for their rehabilitation, self-developmen! and self-reliance and their integration into the mainstream of society. ©. Sec. 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. 224B.CIVIL. CODE ‘Q: What provisions of the Civil Code are relevant to Labor Law? ANS: The following are the relevant provisions to Labor Law: 1. Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and ‘observe honesty and good faith. 2. Article 1700. The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor Contracts must yield to the commen good. Therafore, such contracts are Subject to the special laws on labor unions. collective bargaining, strikes and lockouts, clased shop, wages. working conditions, hours of !abor and similar subjects. 3. Arlicle 1762. In case of doubt, all labor legislation and all fabor contracts ‘Shall be construed in favor of the safety and decent living of the laborer. LABOR CODE Q: What are the basic policies of the state with regard to labor? ANS: The Siate shall afford protection to labor, promote full employment, ensure Gqual work opportunities regardless of sex. race or creed and regulate the felations between workers and employers. The State shall assure the rights of workers 10 self-crganization, collective bargaining, ‘security of tenure, and just ‘and humane conditions of work (LABOR CODE, Art. 3). Q: In case of doubt, how are Labor Code provisions construed? ‘ANS: All doubts in the implementation and interpretation of the provisions of this Code, including its. implementing rules and regulations, shall be resolved in favor cf labor (LABOR CODE. Art. 4). Q: What is the underlying policy.of the new Employer's Compensation Program? ANS. Employees’ compensation program whereby employees and their dependants, in Il fe the pulicy of the state: to promate and davelon a tax-exempt wont of work-connected disability or death, may promptly secure adequate income benefit and medical or related benelits (LABOR CODE, Art. 172) @: What are the policy objectives of our labor relations law? ANS: It ie the policy of the State: : 4. To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of seitling labor or industrial disputes; 2.‘To promote free trade unioniom as an instrument for the enhancement of democracy and the promotion of social justice and development, 3. To foster the free and voluntary organization of a strong and united labor movement; 4, To promote the enlightenment of workers conceming their rights and obligations as union members and as employess; 5. To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes; 6. To ensure a stable but dynamic and just industrial peace: 7-To ensure the participation of workers in decision and policy-mal processes affecting their rights, duties and welfaro; and 225 2 2 z Ea Saye iret bd8.To encourage a truly democratic method of regulating the relations Detween the employers and employees by means of agreements freely entered into trough collective bargaining, no court or administrative ‘agency or official shall have the power to set or fix wages, rates of pay, hours of work or other terms and conditions of employment, except a& ‘otherwise provided under this Code (LABOR CODE. Art 218) Q: Define important terms in labor relations. ANS: The following are important terms to be defined: 1."Employer" includes any person acting in the interest of an employer, directly or indiractly. The term shall not include any labor organization of any of its offers or agents except when acting as employer. 2."Employee" includes any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless the Code so explicitly states. it shall include any individual whose work has ceased as a result of or in connection with any current labor dispute o because of any unfair labor practice if he has net obtained any other ‘substantially equivalent and regular employment. 3.*Labor orgarization” means any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment, “Legitimate labor organization" meens any labor organization duly registered with the Department of Labor and Employment, and includes any branch or local thereof. 5.“Company union” means any labor organization whose formation, function or administration has been assisted by any act defined as unfair labor practice by this Code, 6. Bargaining ropresentative” means a legitimate labor organization whether or not employed by the employer. 7.“Unfair labor practice” means any unfair labor practice as expressly defined by the Code. 8."Labor dispute” includes any controversy or matter concerning terms and vonitiunrs ef enpluyinenit OF the Associaton oF representation oF persons inn negotiating, fixing, maintaining, changing or arranging the terms and. Conditions of employment regardless of whether the disputanis stand in the proximate relation of employer and employee. 9."Manageriai employee’ is one who is vested with the powers or prerogatives io lay down and execute management policies and/or to hire, ranefer, suspend, lay-off, recall, discharge, assign or discipline employees. Supervisory employees are thase who, in the interost of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. All employees not falling within any of the above definitions are considered rank-and-ie employess for purposes of this Book. 10.“Voluntary Arbitrator” means any person accredited by the National Conciliation and Mediation Board as such or any person named or designated in the Collective Bargaining Agreement by the parties to act as their Voluntary Arbitrator, or one chosen with or without the assistance of the said Board, pursuant to a selection procedure agreed upon in the Collective Bargaining Agreement, or any official that may be authorized by 22611. "Strike" means ary temporary stoppage of work by the concerted action lof employees as a result of an industrial or labor dispute 12-"Lockout" means any temporary refusal of an employer to furnish work ‘as a result of an industrial or labor dispute. 13 “Internal union dispute” includes all disputes or grievances arising from ‘any Violation of oF disagreement over any provision of the corstitution and by laws of a union, including ary violation of the rights and conditions of union membership provided for in this Code. 14 "Strixe-breaker means any person who obsiructs, impedes, or interferes ‘with by force, violence, coercion, threats, or intimidation any peavetul picketing affecting wages, ours oF conditions of work or in the exercise of the right of selF-organzation or collective bargaining 15. "Strke arco" meane the establishment, warehouses. depots, plants or offices, including the sites of premises used as runaway shops. of the ‘employer struck against, as well as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance to and Bait from said establishment (LABOR CODE, Art. 219) @: What is the extent of the worker's right to participate in policy and decision-making? ‘ANS: Workers shall have the right to participate in policy and decision-making processes of the establishment where they are employed insotar as said processes will directly affect their rights, benefits and welfare ~ any provision of Jaw to the contrary notwithstanding, and subject {o such rules and regulations as: the Secretary of Labor and Employment may promulgate. For this purpose, workers and Employers may form labor-management councils: Provided that the Topresentatives of the workers in such labor-management councils shall be Glected by at least the majority of all employees in said establishment (LABOR CODE, Art. 266) : Discuss the rights of the unions to collect reasonable fees. JANS: All unions are authorized to collect reasonable membership fees, union ‘ues, assessments and fines and other contributions for labor education anc fesearch, mutual death and hospitalization benefits, welfare fund, sinke fund enc credit and cooperative undertakings (LABOR CQDE, Art, 291, Par a, As amended by R.A. No. 6715, Sec. 33). Q: When will a person be considered membership in a union? ANS: Any employes, whether employed for a definite period or not, shall Deginning on his first day of service, be considered as an employee for purposes of membership in any labor union (LABOR CODE, Art 291, Par. ¢). an employee for purposes of Are docket fees allowed to be assessed in labor standard disputes? ANS: No. No docket fee shall be assessed in labor standards disputes. In all other disputes, docket fees may be assessed against the filing party, provided that in bargaining deadlock, euch foes shall be shared equally by the negotiating parties (LABOR CODE, Art 291, Par. d). 227@: When can labor-management committees be formed? ANS: Labor.management committees may be formed voluntarily by workers and ‘employers for the purpose of promoting industrial peace in establishments whore fo legitimate labor oraanization exist. The Department of Labor and Employment shall endeavor to enlighten and educate the workers and employers on their fights and responsibilities through labor education with emphasis on the policy thrusts of this Code (LABOR CODE, Art. 291, Par. h) Q: Discuss the nature of the periods provided in the Labor Code for rendering a decision or resolution. ANS: The periods provided in this Code within which decisions or resolutions of labor relatons cases or matters should be rendaved shall be mandatory. For this Purpose, a case or matter shall be deemed submitted for decision or resolution upon the filing of the last pleading or memorandum required by the rules of the ‘Commission or by the Commission itself, or the Labor Arbiter, or the Director of the Bureau of Labor Relations or Med-Arbiter, or the Rogional Director. Upon expiration of the corresponding period, a cerfication stating why a decision oF resolution has not been rendered within the said pericd shall be issued forthwith by the Chaitman of the Commission, the Executive Labor Arbiter, or the Director of the Bureau of Labor Relations or Med-Arbiter, or the Regional Director, as the case may be, and a copy thereof aarved upon the parties. Despite the expiration of the applicable mandatory period, the aforesaid officials shall, without prejudice to any liability which may have been incurred as a consequence thereo!, see to it that the case or matter shall be decided or resolved without any further delay (R.A. No. 6715, Sec. 33.; LABOR CODE Art. 291, Par. i) il, RECRUIT! .CEMENT A.RECRUITMENT OF LOCAL AND MIGRANT WORKERS, Q: Define recruitment and placement. ANS: It means any act of canvassing, enlsting, transporting, contracting, hiring, utilizing or procuring workers, and includes contract. services, referrals, advertising or promising for employment, locally or aroad, whether for profit or not: Provided. that any person or entity which, in any manner, offers or promisos for a fee employment to two or more persons shall be deemed engaged in recruitment and placement (LABOR CODE, Art. 13, Par. b), Note: To be engaged in the practice of recruitment and placement, itis plain that there must, at least be a promise or an offer of employment from the person posing as a recruiter whether locally or abroad (People v. Gallardo, GR. Noe. 140067-71, August 29, 2002), @: Who may engage in recruitment and placement? ANS: As a general rule, only public employment offices can engage in recruitment and placement of workers for local or overseas employment. However, the private sector is given the privilege to engage in recruitmer! and placement, but limited to: 228Private employment agency (with a license) ~ any person or entity ‘engaged in the recruitment and placement of workers for a fee which is charged, directly or indirectly, from the workers or employees or both (LABOR CODE, Art. 13, Par. ¢) Private recruitment entity (with ‘an authority) ~ 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 oF ‘employers (LABOR CODE, Art. 13. Par. €): Shipping or manning agency — any person, partnership, or corporation duly licensed by the Secretary of Labor ‘and Employment to recruit Seafarers for vessels plying intemational waters ard for related markime aetwvites (Rules and Regulations Governing Overseas Employment, Book 1, Rule lf, Par. w), acd ‘Such other persons or entities as may be authorized by the Secretary of Labor and Employment (Rules and Regulations Implementing the Labor Code. Book I. Rule IV, Sec.4). 1: Who are not qualified from engaging in recruitment and placement? ANS: They are: 2 3, Travel agencies end sales agenties of airline companies (LABOR CODE, At. 28); Officers or members of the Board of any corporation or members in & partnership engaged in the business of a travel agency: Corporations and parinerships, when any of its officers, members of the bourd o partners, is also an officer, member of the board or partner of a Corporation or partnership engaced in the business of a travel agency: Persons, partnerships or corporations which have derogatory records, such as, but not limited to the folowing: Those certified to have derogatory record or information by the National Bureau of Investigation or by the Anti-lilegal Recruitment Branch of the POEA; Those against whan probable couse of prime focie finding af quit for illegal recruitment or other related cases exists: Those convicted for illegal recruitment or other rotated cases andlor crimes involving moral turpitude: Those agencies whose licenses have been previously cancelled or revoked by POEA for violation of R.A. 8042, P.D. 442 as amended and their implomenting rules and regulations as well as the Labor Code’s Implemanting Rules and Regulations: ‘Any officials or employees of the DOLE, POEA, OWWA, DFA and other ‘government agencies directly involved in tne implementation of RA. 8042 Stherwise known as “Migrant Workers and Overseas Filipino Act of 1995" Gnd/or any of his relatives within the 4" civil degree of consanguinity or affinity: and Persons or partners, officers and directors of corporations whose licenses have been previously cancelled or revoked for violation of recruitment laws (2002 Rules and Regulations on the Recruitment and Employmont of Land-Based Workers, Rule J, Soc. 2). ‘ 229 Bi oa Es % sat = EGISCATION Co ea)Q: Who are the parties involved in recruitment and placement? ANS: The parties are: the worker, the recruiter and the principal. Q: What is the citizenship qualification for a person or entity engaged in the recruitment and placement of workers? ANS: Only Filpino citizens or corporations, partnerships or entities at least seventy five percent (75%) of the authorized and voting capital stock of which is ‘owned and controlled by Filipino citizens shall be permitted to participate in the Fecruitment and placement of workers, locally or overseas (LABOR CODE, Art 27). Megat Recruitment Q: What is illegal recruitment? ANS: Illegal recruitment is any act of canvassing, enlisting, contracting, transporting, utlizing. hiring. of procaring workers and includes referring, contract services. promising or advertising for employment abroad, whether for profit or ot, when undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of the Labor Code of the Philippines: Provided, That any such non-licensee of nen-holder who, in any manner, offers or promises for 2 fee employment abroad to two or more persons. shall be: deemed so engaged. It shall likewise inciude the following acts, whether committed by any person, whether a non-licensee, non-holder, licensee or holder of authority’ 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 Empioyment, or to make a worker pay or acknowledge any amount greater than thal actually received by him as a loan or advance: 2.To funish 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 license or authority under the Labor Caden for the prrrace rf enesimenting 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 ragistered or not with the POEA; 4.To include or attempt to induce a worker already employed to quit hie employment in order to offer him another unless the transfer is designed to liberate @ 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, jeined or supported, or has contacted or ie 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; 7.70 fail to submit reports on the status of employment, placement vacancies, remittance of foreign exchange eamings, separation {rom jobs, departures and such other matters or information as may be required by the Secretary of Labor and Employment: 8. To substtute 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 230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 tavel agency or lo be engaged directly or indirectly in the management of travel agency; 40.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 Eroloyment; 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 (R.A. No. 8042, Sec. 6); and 13.To allow a non-Filipino citizen to head or manage a licensed recruitmentymanning agency (RA No. 10022, Sec.) Note: As defined in Art. 28 of the Labor Code, illega! recruitment are undertaken by nonlicensees or non-holders of authority. This has been changed by RA 8042 which considers as illegal recruiter even a licensee or holder of authorty who ‘Commits any of the acts enumerated in Section 6 thereof as enumerated above, @: Abug was charged in court with violation of Article 16 in relation to Article 39 of the Labor Code in that he promised employment in Saudi ‘Arabia and charged fees and expenses from four separate individuals. He moved to quash the information on the ground that under the provision in ‘Article 13(b) of the Code, there would be illegal recruitment only whenever two or more persons in any manner promised or offered any employment Tor a fea, Decide, (ALCANTARA, Reviewer in Labor and Sacial I egisiatian [2012], p 111) fhereinsfter, AL CANTARA], ANS: The number of persons dealt with is not an essential ingredient of the act of fecruitment 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 fs involved. The proviso merely lays down a rule of evidence that where a feo is collected in consideration of promise or offer of employment to wo or more prospective workers, the individual 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 (People of the Philippines v. Domingo Panis, G.R, No, L-58674-77, July 11, 1986). Q: A,B,C, D, and E filed a complaint against X for illegal recruitment. in her defense, X argued that it is the private complainants who asked for help in ing jobs abroad. As a good neighbor and friend, X only brought the private complainants to the VIVA Agency because X knew the owner of the Said agency and the said act did not constitute recruitment. Decide the ANS: The act of referral, which is included in recruitment, is “the act of passing ‘along or forwarding of af applicant for employment after an initidl interview of 0 231selected applicant for employment to a selected employer, placement officer or bureau.” (Rodolfo v. People, GR. No. 146964, August 10, 2006) License v. Authority License is a document issued by the DOLE authorizing a person or entity to operate a private employment agency ‘Authority is a document Issued by DOLE authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity (LABOR CODE, Art. 13). Q: What are the essential elements of illegal recruitment? ANS: The essential elements are: 1. The offender has no valid license or authority required by law to enable ‘one to lawtully engage in recruitment and placement of workers: and 2.He undertakes either any activity within the meaning of “recruitment and placement’ defined under Article 13 (b), or any prokibited practices enumerated under Article 34 of the Labor Code. (Romero v. People, &.R. No. 171644, Novernber 23, 2011), Q: What are the four types of lliegal Recruitment? ANS: They are: 1. Simple or licensee — illegal recruitment committed by a licensee or holder of authority against one or two persons only; 2.Nen-licensee ~ illegal recruitment committed by any person who is neither a licenses nor a holder of authority; 3. Syndicated ~ illegal recruitment carried out by a group of three (3) or more persons in conspiracy or confederation with one another: and 4. Large Scale or qualified ~ Illegal recruitment committed against three (3) or more persons, individusily or as a group (People v. Sadiosa, G.R. No. 107064,May 15, 1998) despite the lack of the necessary license trom: the POEA. (People v. Alzona, G.R. No. 132029, July 20, 2004). ‘Q: What are the elements of liiegal Recruitment in large scale? ANS: The essential elements of illegal recruitment in large scale, as distinguished from simple illegal recruitment, are as follows: 1. The accused engages in the recruitment and placement of workers as defined in Article 13[b] or in any prohibited activities under Article 34 of the Labor Cod 2 The accused has not complied with the quidelines issued by the Secretary of Labor and Employment, particularly with respect to the Securing of license or an authority to recruit and deploy workers, either locally or overseas: and 3.The accused commits the same against three (3) or more persons, individually or as a group (People v. Lo et.al. G.R. No. 175229, January 29, 2009). Q: Maryrose’s application for the renewal of her license to recruit workers for overseas employment was still pending with POEA. Nevertheless, she recruited Alma and his three sisters, Ana, Joan, and Mavic, for employment 232‘as housemaids in Saudi Arabia, Maryrose represented to the sisters tha: She had a license to recruit workers for overseas employment. Maryros: also demanded and received P30,000 from each of them for hor services. However, Maryrose application for the renewal of her license was deni and consequently failed to employ the four sisters in Saudi Arabia. Tho ‘sisters charged Maryrose with large scale illegal recruitment. Maryrose, her defense, claimed that she acted in good faith believing that her renews license would be renewed and that she refunded the P'120,000 to tirs ANS: Maryrose is stil criminally liable for large scale ilegal recruitment. At t~ {ime of recruitment, she did not have a license to recruit. Good faith is no. = dofence, illegal recruitment is malum prohibitum. Furthermore, refund of the te she received from the complainant does not exinguish her criminal lability: as matter of fact, it proves the she really committed the offense (ALCANTARA, supra at 142), @: When is illegal recruitment considered as a crime of economic sabotage? JMS: tiegal recruitment shall be considered an offense involving economic sabotage # any of the qualifying circumstances exists, namely: | When ilegal recruitment is committed by a syndicate. 1e., if it is carries ov 1 2 gfoub of three OF more persons conspiring and/or confederating wii One another and are not licensed or authorized to do so. eitner locally © When illegal recruitment is committed in large scale, ic. if it is commitied ijainst three or more persons individually or as a group (People v. Duque, GR. No. 100285, August 13, 1992). @: Distinguish illegal recruitment from estofa. ANS: The following are the distinctions between illegal recruitment and esta: Dre rere T or lis malim probit. | The criminal intent of the acu \ isnotnecessary. | [Wis penalized undor the Labor ‘The erminal intent is imperative itis penalized under the Revised Pe iL Code. - Code. iy i Tis wider in scope and covers | Itis limited in scope. deceils whether related or not | related to recruitment activities. | (CHAN, The labor Gade 6f the Philippines Annotated Vol. I. 2nd Ed. (2009), p. 258) Note: A person convicted for illegal recruitment under the Labor Code can be convicted for violation of the Revised Penal Code provisions on estafa provided: tho elements of the crime are present (People v. Calonzo, G.R. Nos. 115150-55, ‘Seplomber 27, 1996). Q: A,B, and C, convinced X and his sister Y, that for a fee they (X and Y) could be employed in Italy and in France, respectively. The father of X and paid P70,000 to A and his companions. But X and Y were never able to leave for abroad. A and B were also able to persuade Z, who was desirous 233to travel to Canada, that they could work for the former's visa application, they were able to get from A down payment of P25,000; other payments were later made by Z’s mother. But nothing happened to Z's. visa application. A and B did not have any license or authority to recruit. (a) May A be charged and convicted of large-scale illegal recruitment? Why? ANS: Yes. He did not have the license or authority to recruit. and yet recruited at st three (3) persons. His acts and those of his wife constituted enlisting, Sontracting or procuring workers or promising them oversees employment (ALCANTARA, supra at 134), (b) May A be also be charged and convicted of estafa? Why? ANS: Yes. Conviction for illegal recruitment does not preclude punishment for ‘other crimes committed in the process. And not all acis which constitute estafa necessarily establish illegal recruitment, for estafa is wider in scope and covers deceits whether or not related to recruitment activities. More importantly, the element of damage, which is essential to estafa cases is immaterial in illegal recruitment: and while estafa is malum in 20, illegal recruitment is malum prohibitum (People v. Turda, G.R. Nos. 97044-46, July 6, 1994) Liabilities @ Who are the persons that may be held criminally liable for illegal recruitment? ANS: The persons criminally liable for illegal recruitment are the principals, accomplices and accessories. In case of juridical persons, the officers having Control, management or direction of their business shall be liable (R.A. No. 6042 Sec. 6; Omnibus Rules and Regulations Implementing Migrant Workers and Overseas Filipino Act of 1998, Sec.11), Q: What ie the natuy unpaid balance ANS: The recruitment agency is solidarily liable with the foreian erincipal for Unpaid salaries of a worker recruited. Before recruiting, the agency is required lo Submit a document containing Its power to sue and be sued jointly and solidarily with the principal or foreign-based employer for any of the violations of the recruitment agreement, and the contracts of employment (POEA Rules and Regulations; RA 8042 Sec. 10 as amended). @: What is the lability of the Foreign Employer? ANS: The foreign employer shall be solidarily llable with the recruitment agency (id) Q: Prieto, Canilio and Azuela were recruited by AR and Sons International Development Corporation to work for Saudi Services and Operating Co. Ltd for 24 months. Their contracts were approved by the POEA. They were however later coerced into signing another employment contract with ‘Saudi Arabia Morrison without the knowledge and approval of the POEA. Still, when they were already in Jeddah, they were asked to sign another contract reducing their salaries. They refused. By reason of such refusal they were not given any work and were later summarily dismissed and repatriated to the Philippin. of the liability of the Local Employment Agency for(a) Are the overseas contract workers entitled to pay although they did not Fender any service? Why? ANS: Yes. The principle of “no work, no pay” does not apply in this case. The fact that they did not work at the jobsite was not of their own doing. They were justified in refusing to sign the third contract providing for another lowering of their Salaries in violation of their agreement as approved by the POEA. They had the fight to ingot -on the higher salaries agreed upon in the original contract (ALCANTARA, supra at 135). (b) Is AR and Sons International Development Corporation liable for the claims of the contract workers? ANS: Yes. A private employment agency is obliged to assume joint and solidary Tiebility with the employer fer all the claims and lables that may have arisen in ‘connection with the implamentation of the contract including but not limited to payment of wages, health and disability compensation and repatriation (Prieto et al v. NLRC ot al., G.R. No. 93694, September 10, 1993). Q: What is the Theory of imputed Knowledge? ANS: The theory of imputed knowledge ascribes the knowledge of the agent. to the principal, not the other way around. The knowledge of the principal foreign employer cannot, therefore, be imputed to its agent (Sunace) Informational ‘Management Services, Inc. v. NLRC, G.R. No. 16178, January 25, 2006). Pretermination of Contract of Migrant Worker G: What are the effects of termination of overseas employment without just, valid or authorized cause? ANS: In ease of termination of overseas einployment without just, valid or duthorized cause as defined by law or contract, or any unauthorized deductions from the migrant worker's salary, the worker shall be entitled to the ful reimbursement if his placement fee and the deductions made with interest at iwelve percent (12%) per annum, plus his salaries for the unexpired portion of his Cinploymon contract or for thrae (2) months for every vear of the unexpired term, whichever is less (R.A. 10022, Sec. 7) Direct Hiring Q: js direct hiring allowed? ANS: As a general rule, diroct hiring of Filipino workers for overseas employment is not allowed, except direct-hiring by: 1. Members of the Diplomatic Corps; 2. Intemational Organizations; 3, Other Employers as may be alowed by DOLE: and a. Name Hires - individual workers who are able to secure contracts for overseas omployment on their own efforts and representations without the Sssistance of participation of any agency. Their hiring, nonetheless, shall pass through the POEA for processing purposes (POEA Rules Governing ‘Overseas Employment as amended in 2002, Rule Il, Part I). |: May @ foreign-based employer or principal hire a Filipino worker for overseas employment without the intervention of the government or private entities authorized to engage in recruitment and placement? ANS: No. An employer may not hire a Filipino worker for overseas employment except through the Boards or entities authorized by the Secretary of Labor. 235Direet-hiring by mombors cf the diplomatic corps, international organizations and such other employers as may be allowed by the Secretary of Labor is exempted “om this provision (ALCANTARA, supra at 116). - REGULATION. AND ENFORCEMENT Suspension or Cancellation of License or Authority @: Who has the power to suspend and/or cancel the license or authority to -eeruit employees for overseas employment? ANS: The power to suspend or cancel any license or authority to recruit employees for overseas employment is concurrently vested with the POEA and he Secretary of Labor (Trans Action Overseas Corporation v. Sec. of Labor, 3.R. No. 109583, September 5, 1997). Regulatory ang visitoriat E Secretar Q: What are the regulatory and visitorial powers of the Secretary of Labor? ANS: As regards the regulatory power, the Secrotary of Labor shall have the sower to restrict and regulate the recruitment and placement activities of all “ecruitment agencies and is authorized to issue orders and promulgate rules and ‘equlations to carry out the objectives and implement the provisions of the Labor vode (LABOR CODE, Ari. 36) Vhile as regards the visitorial power, the Secretary of Labor or hie duly authorized representatives may, at any time. inspect the premises. books of accounts and records of any person or entity covered by the Labor Code on ‘ectuitment require it to submit reports regularly on prescribed forms, and act on volation of any provisions of the ‘av: (LABOR CODE, Art. 37) Re e. “ian. Q: Are ail Overseas Filipino Workers required to remit a portion of their foreign exchange earnings? ANS: As a general rule, all Overseas Filipino Workers are required to romit a Surtion uf their foreigis exchange Batting ranging (Fur 30% (8 BO%, YepENk sn the worker's kind of job, to their families, capendents and/or henefi POEA Rutes, Book Ill, Rule VID, Q: What are the exceptions to the rule on mandatory remittance? ANS: The exceptions a1 : *.Where the workers immediate family members, dependents, or beneficiaries are residing with him abroad 2. Filipino servicemen working in U.S. military installations; and 2 Immagrants and Fiipno professionals and empioyees working with United ‘Nations agencies of specialized bodies (inter Agency Committee for Implementation of €.0. 857, Resolution No, 1-83) The Migrant Workers Act provides that the salaries for the unexpired portion of the employment contract or three (3) months for every year of the unexpired term, whichever is less, shall be awarded to the overseas Filipino worker, in cases of illegal dismissal. However, in 24 March 2009, Serrano v. Gallant Maritime Services and Marlow Navigation Co. Inc., the Court, in an En Banc Decision, declared unconstitutional the clause “or for three months for every year of the unexpired term, whichever is less” and awarded the entire unexpired portion of the employment contract to the 236overseas Filipino worker. On 8 March 2010, however, Section 7 of Republic ‘Act No. 10022 (RA 10022) amended Section 10 of the Migrant Workers Act, ‘and once again reiterated the provision of awarding the unexpired portion Of the employment contract or three (3) months for every year of the Unexpired term, whichever Is less. Is R.A. 10022, Sec. 7, which reinstated the provision R.A. No. 8042 Sec. 10 valid? JANS: No, We observe that the reinstated clause. this time as provided in ‘epublic Act. No. 10022, viclates the constitutional rights to equal protection and due process. We reiterate our finding in Serrano v. Gallant Maritime that liriting wages that should be recovered by an illegally dismissed overseas worker to three months {s both a violation of due process and the equal protection clauses of the Constitution. Butting a cap on the money claims of certain overseas workers does not increase the standard of protection afforded to them. On the other hand, foreign employers aie more incentivized by the reinstated clause to enter into contracts of at feast a Gear because it gives them more flexibility to violete our overseas workers’ Fights Wer lability for arbitrarly terminating overseas workers is decreased at the ‘expense of the workere whose rights they violated. Meanwhile, these overseas carkers who are impressed with an expectation of a stable job overseas for the ‘onaor contract period disregard other opportunities only to be terminated earlier hey 2fe eft with claims that are less than what others in the some situation \eud receive. The ‘einstated clause, therefore, creates a situation where the law Meant to protect thom makes violation of rights easier and simply benign to the jolator (Sameer Overseas Placement Agency, Inc. v. Joy Cabiles, G.R. No 70139, August 05, 2014). lo 22 of the Labor Code Fequires all Filipino recruited and placed overseas employment to remit 2 Gortion of their foreign exchange earnings to their families andlor beneficiaries in the country. What is the amount and form of such remittance? (ALCANTARA, supra at 131) NS! rears STH peeesati — ‘Seamen ‘Workers of Flipino contractors and Construction 70% ‘companies. | Doctors, engineers, teachers, nurses and other 70% | brafecional workers whose enrtract provide for fee |“ _board and lodging — . [TRilather professional workers whose amplovment 30% Contvacts do not provide for res board and lodging \ faciltios 30% ‘llother workers 30%} (RR. Book Vill, Rule Vill, Sec 3, E.0. No. 857 as amended by E.0. No. 920) 237a: What are the penalties in case of failure to remit? ANS: The penalties aro: Workers: ‘Suspension or exclusion from the list of eligible workers for overseas it. Subsequent violations shall warrant repatriation from the job site at the expense of the employer or at his expense. Filipino or foreign employers and/or ‘Exclusion from the overseas their representatives __ employment program. Local private employment agancies | Cancellation or revocation of their or entities licenses or authority to recruit. (EO. 857, Sec. 9). Prohibited Activities Q: What are the other prohibited activities in connection with recruitment and placement? AN: : In addition to the acts that constitute illegal recruitment, as enumerated in Section 34,Labor Code and section 5, RA 10022, the following are the prohibited sctivities: 1. Grant a lean 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, postdaied ‘checks in relation to the said loan; 2. impose a compulsory and exclusive arrangement whereby an overseas: Filipino workor 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 alter the latte’s employment contract has been prematurely terminated through no fault of his or her own, 4.Impose a compulsory and exclusive alrangement whereby an overseas 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; : 5.Impose a compulsory and exclusive ‘arrangement whereby an overseas Jno worker is required to undergo training, seminar, instruction or schooling of any kind only from specifically designated institutions, entities or persons, except for recommendetory trainings mandated by principats/shipowners where the latter shoulder the cost of such trainings; 6. For a suspended recruitmen/manning agency to engage In any kind of recruitment activity including the processing of pending workers’ applications: and 7. For a recruitmentmanning 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 (RA No. 10022, Sec. 5).Q: A Filipina, single, with Bachelor of Science in Education degre recruited by a local private employment agency with contracts abroa job of tutoring in an exclusive private school abroad. Upon arrival Klace of employment, the Filipina wae given work as a housemaid. doing eave her employment since a representative of her employer told her that her transportation fare was advanced by her employer, not to mention ner fein obligations with the recruiter representing a certain percentage of her sronthly wages. If this incident has come to your own attention, what 2uvice will you give the Filipina? (1979 BAR) ANS wit advise the Filpina to commence criminal actons against the aarsbyinent ageney for violation of Avticle 34 of the Labor Cade for prohibited Gratties and “Aricle 315 of the Revised Penal Code for estafa. She was recruited under false pretense; she was told that she woud work as a tutor I an SSelusive private school abroad; instead, she was made to work as a housemaid. Piwil also. tell her that the employer is not entitled to reimbursement of her Iranspertation expenses as the leer is obliged under the contract to pay for the Tar pond that the employment agency is not entited to any portion of her wages (ALCANTARA, supra at 144). ©: What are the penalties for illegal recruitment? ine fellowing are the: penalties for egal recruitment + Guilty f legal recrukment: imprisonment and fine '. Imprisonment Minimum — twelve (12) years and one (1) day Maximum ~ twenty (20) years b.Fine Minimum - P 1,000,000 Maximum - 2,000,000 2.Guitty ‘Ot legal recruitment constituting “economic sabotage: Life imprisonment and fine io mmpricqnment Minimum-2,000,009 ‘Maximum- P3,600,000 +3. Guity of ony of the prohibited acts: imprisonment and fine ‘2 Imprisonment ‘Minimum ~ six (6) years and one (1) day Maximum — twelve (12) years b Fine ‘Minimum- P500,000 ‘Maxirnum- P'1,000,000 Note: The maximum pensity shall be imposed if the person Wegally recruited is ete nen eighteen (18) years of age oF committed by a non-licensee or non holder of authority; Tene fr ine offender is on alien, he or she shall, in addition to the penalties Notsin ‘preseribed, b2 deported without further proceedings. In every caso, Conviction shall cause and carry the automatic revocation of the license or fegistration of the recruimenmanning agency, lending institutions, training ‘School or medical cinic (RA No. 10022, Sec: 6) 239 eae ole} feife are eye ueIll, LABOR STANDARDS ‘A. HOURS. OF WORK Exclusions Who are the employees that are covered under this provision? ANS: All employees in all establishments, whether for profit or not (LABOR CODE, Book Il, Tile | (Working Conditions arkd Rest Periods) Q: Who are the exceptions? ANS: Exceptions are: 1. Government employees, Note: It refers only to employees of govemment agancies, instumentalities, or political subdivisions and of government corporations that are net incorporated under the Corporation Code, i.e., those which have original charters because they are governed by the Civil Service Law 2. Managerial employees and members of the managerial staf te: Managerial employees, if they meet all the ‘ollowing conditions: ‘a. Their primary duty Consists of the management and estabishment | which they are employed or a departmont or subdivicion thereof, b.They cusiomaniy and regularly direct the work of two or more employees: anc ©. They have the authority to hire or fire other employees of lower ran! or their suggestions and recommendations as to the hining and finn and as to the promotion er any other change of status or othe: employees are given particular weight (Rules Implementing the Labo: Code, Book Ill, Rule i, Sec.2. Par. b). Managerial staff, if they perform the following duties and responsibilities. ‘a. The primary duty consists of the performance of work directly relates to management policies of their employer: b. Customarily and regularly exercise discretion and independen' idgmont; and Reaularly and directy assist a proprietor or 3 manageral employee whose primary duty consists of the management c the establishment in which he is employed or subdivison thereof, or Executo under general supervision: work along specialized : technicai lines requiring special iraining. experience. or knowledge; or ili, Execute, under general supervision, special assignments and tasks; and 6. Who do not devote more than twanty (20) percent of their hours worked in a work week to activities which are not directly and ciosaly related to the performance of the work described in paragraphs (1), (2) and (3) above (Rules Implementing the Labor Code, Book lil, Rule |, Sec. 2, Par. ¢) 9.Members of the family of the employer who are dependent on him for Support; 4. Domestic servants and persons in the personal service of another if they perform such services in the employer's home which are usually necessary or desirable for the maintenance and enjoyment thereof, or Wetrinister to the personal comfort, convenience or safety of the employer a8 wwoll as mombers of his employer's household (Sec. 2, Par. oI 5, Workers paid by result (Secs. 1 and 2; Id): 6. Nor-agricultural employees (field personnel) if they regularly perform tho! cakes away from the principal or Branch office or place of business of the ceseyer and whose actual hours of work in the field cannot be Gatermiined with reasonable certainty Note: Tre present Book Il of the Labor Code deals with standards of seSloyment. Those standards apply only if there exists between the parties ths, teltionship of erplover-ompioyee YAZUCENA, Everyone's Labor Code, (2019) p56) Normal Hours or Work @: What are the normal hours of work of an employee? ONS. The normal hours of work of an employee shall not exceed (eight) 8 hours: ‘a day (LABOR CODE, Art. 83). Exceptions: T Health Personnel: For health personnet in cities and mi Population of al least 1 milion or in hospitals and clinics with @ ‘bec cop etity of at least 100; Regular office hours shall be 8 hours a day for 5 sare a Wook, of forty (40) hours a week, exclusive of time for meals. 19 Sere Sr exigencies, they may work for 6 days cf for 48 hours, but they Shall be entited to an additional compensation of at least 20% of Meir Sogular wage for work performed on the 6" day (LABOR CODE, Art 63) ‘Compressed Work Week, Toten tne rrormal eight (8) working hours mandated by law do not always Note: Toetinuoue and uninterrupted eight (8) hours of work. As may be Teguired by pecular circumstances of employment, it may mean Droken fee of sav, four hours in the morning and four hours in the evening OF + votiation tneresf, provided the total of eight (8) hours is eccomplished Waitomne "work day” as this term is understood in law. Hence, the 4-nour wine Sires mine Everiny stiauld not be coneidered overtime work since Were Ght nour period has not yet been exceeded (CHAN, supra at 387), 0: Whatis the rationale behind the normal hours of work? ee ate reionale of the normal work hours is to safeguard the health afe ANS he ye iaborer, and to rinimize unemployment by utilizing different shifts (ania Terminal Co. v. CIR, L-4148, July 16, 1952). : May the normal hours fixed in Article 83 of the Labor Gode be reduced by the employer? Explain. Ree woe the present article provides that the normal hours of work: of an Bhptoyee shall rot exceed eight (8) hours cay. Nonetheless. f by vounaty crpetice or policy, the employer for a considerable period of time has been payne se erlovees’ wages due for eight hours work although the work shift fove than sight hours (ce seven hours) it cannot later on increase the working Nort tan cia increase in the pay of the employees affected. An employer is net wort aD withdraw a benefit which he has voluntarily given (ALCANTARA, ‘supra at 168). 241Compressed Work Week (CWW) Q; Discuss the concept of compressed work week? ANS: The CWW scheme is an altemative arrangement whereby the normal workweek is reduced to less than six (6) days but the total number of normal hours per week remains at forty eight (48) hours, The normal workday is increased to more than 8 hours without corresponding overtime premium. This ‘pplos 28 well to 40 or 44-hour workweek fms (DOLE Advisory No. 02, Series of 2004), Q: What are the conditions of a valid CWW scheme? ANS: The required conditions are: 4.it is expressly and voluntarily supported by majority of the employees afiactad: 2.If work is hazardous, a certification is needed from an accredited safety ‘organization or the firm's safety committoe that work beyond eight (8) hours is within the limits or levels of exposure set by DOLE’s occupational safety and health standares; and 9. The DOLE is duly notified (DOLE Advisory No. 02, Series of 2004) Q: What are the effects of the CWW scheme? ANS: A CW scheme which complies with the foregoing conditions shall have the following effects: 1. Unless there is a more favorable practice existing in the firm, work beyond eight (8) hours will not be compensable by overlime premium provided the tolal number of hours worked por day shail not exceed twelve (12) hours. In any case. any work performed beyond twelve (12) hours a day or forty. eight (48) hours a weak shall be subject to overtime premium. 2. Consistent with Articles 85 of the Labor Code, employees under a CWW Scheme are eniilied to meal periods of not less than sixty (60) minutes. Nothing, however, shall impair the right of employees to rest days as well as to holiday pay, rest day or leaves in accordance with law or applicable ellactive hargaining agrmamant (CRA) ar eampany praclice 3. Adoption of the CWW scheme shall in no case result in diminution of existing benefits. Reversion to the normal eight-hour workday shall not Cconsttute a diminution of benefits. The reversion shall be considered a legitimate exercise of management prerogative provided that the ‘employer shall give the employees prior notice of such reversion within a reasonable period of time (CHAN, supra at 379). Meal Break @; Discuss the rules on meal periods. ANS: The following are the rules on meal periods: 1. Meal periods should not be less than 60 minutes. It is non-componsable ‘except when during the so-called meal period, the laborers are required to standby for emergency work, or said meal hour is not one of complete rest, such period is considered overtime (hours worked) (Pan American World Airways System v. Pan American Employees Association, G.R. No, 116275, February 24, 1961). 2, Meal period may be less than sixty (60) minutes, but should not be less than twenty (20) minutes and the shortened mealtine must be with full pay, under the following instances: 242‘a. Where the work is non-manual work in nature or does not involve strenuous physical exertion; b. Where the establishment regularly operates not less than sixteen (16) hours a day: « Incases of actual or Impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid ‘corious loss which the employer would otherwise suffer; and ¢. Where the work is necessary to prevent serious loss of perishable {goods (Rules Implementing the Labor Code, 800k II, Rule |, Sec. 7) 3.1f lese than twenty (20) minutes, t Decomes only a rest period and is Considered as work ime, Ex. Coffee breaks running from 5-20 minutes Gre considered 2s compencable working time, Q: Discuss the rules on waiting time. ANS: Wailing time is considered as hours worked if: 1. Its an integral part of his work; 2. if the employee is required or engaged by the employer to wait, the time Spent for waiting is campensable, however, if the employee is waiting to pe engaged of the employee is not required to wait, the idle time 1s not Working time; itis not compensabie; or 3, When employee ts required to remain on call in the employor's premises Or so cluse thereto that he cannot use the time effectively and gainfully for his own purpose (See. 5, /0.) ©: 10 utility men were assigned by the supermarket supervisor to the night Shift from 8:00 p.m. to 4:00 a.m. At 8:30 p.m., delivery vans arrived Containing 500 boxes of pineapple juice. They were able to do the job only for 30 minutes. Thus, from 9:00 p.m. to 1:00 a.m. they slept. At 1:30 a.m. the eecond wave of delivery trucks came and they were able to unload the contents again in 30 minutes. From ‘m., until their time-off, they slept. ‘are these sleening time compensable working period? ANS: ‘Yes Sleeping time is compensable working Unie If ths nature of the Employee's work allows sleeping without interrupting or prejudicing | the work requires them to Go Q: X is employed as a mechanic by the Golden Taxi Cab Co. work into tz noon and trom 1:00 pm to 5:00 p.m. During lunch time he is fequired to stand by for emergency call. On many occasions he is called for sonne emergency work even while taking his meals. Because he fs working tp to 8:00 pm, he files a claim for overtime pay. in computing his overtime he includes the one-hour allowed for lunchtime as part of his working time. Is X correct? Reason out your answer. (1976 Ber) RNS. ores An employee who is required to remain on call in the employer's: premises or £0 close theroto that he cannot use the time effectively ang gainfully ier isn pursose, shall be conscered as ‘working while on call (CHAN, supra at 243Q: Discuss the rules on travel time. ANS: The rules on travel time are as follows: 1. The formal travel from home to work is not work time, and hence, generally not compensable because it is a normal incident of employment Exceptions: ‘a.Where the worker is made to work on an emergency call and travel Is necessary in proceeding to the workplace; b.Travel is done through a conveyance provided by the employer; c.Travel is done under the supervision ard control of the employer; and Travel is done under vexing and dangerous circumstances (1 AZUCENA, The Labor Code with Comments and Cases, (2013), p. 199) {hersinafier AZUCENA, Vol. J. 2. The time spent by an employee in travel as part of his principal activity, like travel from jobsite to jobsite during the workday is componsable and must be counted as hours worked (Travel that is All in A Day's Work). 3. Travel that keeps an employee away from home overnight is considered as work time when it cuts across an employee's workday because it Substitutes for the hours that the employee should nave been in the office (Travel Away from Home), Q: What are the rules on work interruption due to brownouts? ANS: The folowing are the rules on work interruption due fo browrouts 1. Brownouts not exceeding twenty (20) minutes shall be treated as worked for compensable hours whether used productively or not. 2. Brownouts move than twenly (20) minutes may not be treated as hours worked provided any of the following conditions are present a. The employees can leave their workplace or go elsewhere whether within or without the work premises: b. The employees can use the time effectively for their own interest (Policy Instruction No. 36 of the DOLE) Overtime Work, Overtime Pay Q: What is overtime work? ANS: Service rendered in excess of and in addition to eight (8) hours on ordinary working days, which are the prescribed daily work period, is overtime work (Caltex Reguiar Employees at Mia Oftice v. Caliex, Phils, GR. No. 117359, August 15, 1995), 4 Q: What is overtime pay? ANS: It is the amount obtained by multiplying the overtime hourly rate by the umber of hours worked in excess of eight hours. gers eer rses cere ‘Ordinary day Plus 25% of the basic hourly rate Rest day or on @ Special Plus 30% of the basic hourly rate which fholiday Rest day which falls on a special holiday“ | includes the 50% additonal compensation 244Regular holiday Pius 30% of the basic hourly rave which includes 100% additional compensetion Rest day which falls on Plus 20% of the basic hourly rate which regular holiday includes 160% of the additional ‘compensation (CHAN, supra at 407-408) Note: Entitlement to overtime pay must first be established by sufficient proof that said overtime work was actually performed before an employes may aval of the same. Q: What ie the basis for computation of overtime pay? ‘ANS: The basis for computation of overtime pay is the regular basic age which includes cash wage only, without any deduction on account of facilitios provided by the employer (LABOR CODE, Art. 90). ‘Simply steted, “regular base pay’ means regular basic pay which necessarily ‘Gxcludes money received in different concepts such as Christmas bonus and Sther fringe benefits (Bisig ng Menggagawa ng Philippine Refining Co. Ine. v Philippine Refining Co., Inc., G.R. No. L-27761, September 30, 1981) Note: It should be clarified that the value of facilities a5 pait of the wage 2s Hefined In Art. 97(6. Being part of the wage, the vatue of facities (such @s board Grd lodging) cannot be excluded before computing the overtime rate (AZUCENA, Everyone's Labor Code (2013), p. 67) Is an employee entitled to overtime pay for work rendered in excess of oH 9a) nourd'a day, if fs employment contract epecifies a 12-hour ciate routaed monthly salary rate that t= above the legal minimum wee? BRE ves. The contract in question could have been deemed in violation of aenent labor lawe, And the provisions of the latter prevail over the terms of the Oerinnel (Doses v NLRC, GR No. 100UC3, AUgUST 22, 1990) G: Juan Dela Cruz works as a clork in ABC Company and has a work Schedule from fam to Spm. He remains in the office beyond his normal 8- hour duty without the approval of his manager. He is now claiming that he is entitled to overtime pay. Decide the case. ANS: Juan Dela Cruz is not entitled to the overtime pay. An employee who fomaits al the office or place of work beyond his normal 8-hour duty is not. as & general rulo, entitled to overtime pay in the absence of any instruction, of varsission from the employer for him to render overtime work (CHAN, supra at 40! Such instruction or epproval of overtime work, however, need not be made Sxpressly by the employer as it is enough that the employee is permitted or Suffered to work beyond his @-hour normal working hours. Moreover, if the work was nevessary or that it benefited the company, the overtime is Compensable even without the approval of the company (Manila Railroad Cov CIR, G.R. No. L-4614, July 31, 1952).