LABOR STANDARDS LAW
The agreement between the principal and contractor or
ART. 106 – Contractor or Subcontractor
 Whenever an employer enter into a contract with
another person for the performance of the former’s
work, the employees of the contractor and of the
latter’s subcontract shall be paid in accordance
with the provisions of this Code.
 Failure of contractor or subcontractor to pay the
wages of employees = employer shall be jointly
and severally liable to the extent of the work
performed under the contract.
2 Types of Contractor
1. Job Contractor (Legal)
Elements:
1. The contractor or subcontractor carries on a distinct
and independent business and undertakes to perform the
job on his own account and under his own responsibility,
according to its own manner and method and free from
the control and direction of the principal in all matters
connected with the performance of the work except as tot
eh results thereof.
2. The contractor or subcontractor has substantial capital
investment in tools, equipment and machineries.
3. The contractor ahs work premises or a principal office
address.
4.
subcontractor assures the contractual employees
entitlement to all labor and occupational safety and
health standards, free exercise of the right to self-
organization, security of tenure and social and welfare
benefits.
DO No. 174
Substantial capital refers to paid-up capital
stocks/shares of at least 5M in the case of corporations,
partnerships and cooperatives; in the case of single
proprietorship, a net worth of at least 5M.
2. Labor-only contractor (Illegal)
Labor-only contracting is an arrangement wherein
the contractor merely acts as an agent in recruiting
and supplying the principal employer with workers for
the purpose of circumventing labor law provisions setting
down the right of the employees.
Elements:
1. The person supplying worker to an employer does not
have substantial capital or investment in the form of
tools, equipment, machineries, work premises, among
others,; and
2. The workers recruited and placed by such persons are
performing activities directly related to the principal
business of such employer.
INDEPENDENT CONTRACTOR
One who carries on a distinct and independent
business and undertakes to perform the job or to do a
piece of work on its own account and under its own
responsibility, according to its own manner and methods
and free from the control and direction of the principal in
all matters connected with the performance of their work
except as to the results thereof.
A mere statement in a contract with a company
that laborer’s who are paid according to the amount and
quality of work are “independent contractors” does not
change their status as mere employees in contemplation
of labor laws.
Newspaper columnists are independent
contractors
Orozco vs. CA
 Petitioner believes that respondents’ (Inquirer)
acts are meant to control how she executes her
work.
 The court does not agree.
 The Inquirer is the publisher of a newspaper of
general circulation which is widely read
throughout the country. As such, public interest
dictates that every article appearing in the
newspaper should subscribe to the standards set
by the Inquirer. It is not therefore unusual for
Inquirer to control what would be published in the
newspaper.
 This control pertains only to the end result, ie. the
submitted articles.
 The Inquirer has no control over petitioner’s
means or method used by her in the preparation of
her articles. The articles are done by herself
without any intervention from the Inquirer.
 Besides, there were no restraints on her creativity;
petitioner was free to write her column in the
manner and style she was accustomed to and to
use whatever research and method she deemed
suitable for her purpose.
 The apparent limitation that she had to write only
on subjects that benefitted the Lifestyle section did
not translate to control but was simply a logical
consequence of the fact that her column appeared
in that section and therefore had to cater to the
preference of the readers of that section.
 The Court also used the economic reality test.
o The economic realities prevailing within the
activity or between the parties are
examined, taking into consideration the
totality of the circumstances surrounding
the true nature of the relationship between
the parties.
o This is especially appropriate when there is
no written agreement or contract on which
to base the relationship.
o In this, petitioner’s main occupation is not
as a columnist for respondent but as a
 women’s rights advocate working in various
women’s organizations.
o She also admits that she contributes articles
to other publications.
o Hence, it cannot be said that petitioner was
dependent on respondent for her continued
employment in respondent’s line of
business.
Television host is an independent contractor
Sonza vs. ABS
 Individuals with special skills, expertise ro talent,
enjoy the freedom to offer their services as
independent contractors.
 If radio and television program hosts can render
their services only as employees, the station
owners and managers can dictate tot eh radio and
television hosts what they say in their shows. This
is not conducive to freedom of the press.
College professors, not IC
 The university controls the work of the members
of its faculty;
 University prescribes the courses or subjects that
professors teach, and when and where to teach;
 The professor’s work is characterized by regularity
and continuity for a fixed duration;
 Professors are compensated for their services by
wages and salaries, rather than by profits;
 Professors and instructors cannot substitute
others to do their work without the consent of the
university;
 Professors can be laid off if their work is found not
satisfactory.
 All above-mentioned indicate that the university
ahs control over their wok, hence professors are
employees.
 The principal consideration in determining
whether a workman is an employee or an IC is the
right to control the manner of doing the work, and
it is not the actual exercise of the right by
interfering with the work, but the right to
control, which constitutes the test.
Truck drivers, not IC
Chavez vs. NLRC
 Although respondents denied that they exercised
control over the manner and methods by which
the petitioner accomplished his work, their right to
control was manifested by the following attendant
circumstances:
o The truck driven by the petitioner belonged
to respondent company;
o There was an express instruction from the
respondents that the truck shall be used
exclusively to deliver respondent company’s
goods;
 o Respondents directed the petitioner, after By operation of law, the While the contractor
completion of each delivery, to park the contractor is merely himself is the direct
truck in either of two specific places only. considered as an agent of employer of the
o Respondents determined how, where and the employer who is employees, the employer
when the petitioner would perform his task deemed responsible to the is deemed, by operation of
workers to the same law, as an indirect
by issuing to him gate passes and routing
extent as if the latter were employer.
slips. directly employed by him.
 The existence of er-ee relationship cannot be
negated by expressly repudiating it in a contract
when the facts clearly show otherwise.
* The phrase “not an employer” in Art. 107 must be read
in conjunction with Art. 106.
Civil Liability of ER & Contractors * The concept of indirect employer only relates to the
Every er or indirect er shall be jointly and severally liability for unpaid wages. Read together, Arts. 106
liable with his contractor or sub-contractor for the unpaid and 109 simply mean that the party with whom an
wages of the employees of the latter. independent contractor deals is solidarily liable with the
latter for unpaid wages, and only to that extent and for
that purpose that the latter is considered a direct
employer.
ART. 107 – Indirect Employer
* Where a contractor is a labor-only contractor, it is
The provisions of the immediately preceding
equivalent to declaring that there is an er-ee relationship
article shall likewise apply to any person, partnership,
between the owner of the project and the employees of
association or corporation which, not being an
the labor-only contractor. (This is so because the labor-
employer, contracts with an independent contractor for
only contractor is considered as mere agent of an
the performance of any work, task, job or project.
employer).
* In contrast, in job contracting, no er-ee relationship
Art. 106 Art. 107 exists between the owner and the employees of his
Deals with labor-only Deals with job contractor. The owner of the project is not the direct
contracting. contracting. employer but merely an indirect employer, by operation
of law, of his contractor’s employees.

ART. 108 – Posting of Bond
An employer or indirect employer may require the
contractor or subcontractor to furnish a bond equal to the
cost of labor under a contract, on condition that the bond
will answer for the wages due the employees should the
contractor or subcontractor fail to pay the same.
* This is without prejudice on the part of the contractor
or subcontractor to seek reimbursement from the
employer.
ART. 109 – Solidary Liability
The provisions of existing laws to the contrary
notwithstanding, every employer or indirect employer
shall be held responsible with his contractor or
subcontractor for any violation of any provision of this
Code.
For purpose of determining the extent of their civil
liability under this Chapter, they shall be considered as
direct employers.
Liability
In job contracting, the principal is jointly and
severally liable in the payment of the wages of the
employees, and for violation of any provision of the Labor
Code.
ART. 110 – Worker Preference in Case of
Bankruptcy
In the event of bankruptcy or liquidation of an
employer’s business, his workers shall enjoy first
preference as regards their wages and other monetary
claim.
Such unpaid wages and monetary claims shall be
paid in full before claims of the government and other
creditors may be paid.
Special preferred credit
Under Arts. 2241 and 2242 of the Civil Code, a
mortgage credit is a special preferred credit that enjoys a
preference with respect to specific/determinate property
of the debtor
On the other hand, the worker’s preference under
this Article of the Labor Code is an ordinary preferred
credit. While this provision raises the worker’s money
claim to first priority in the order of preference
established under Art. 2244 of the Civil Code, the claim
has no preference over special preferred credits.
* Worker’s claims for unpaid wages and monetary
benefits cannot be paid outside of a bankruptcy or
judicial liquidation proceedings against the employer.
- The application of Art. 110 is contingent upon the
institution of those proceedings, during which all
creditors are convened, their claims ascertained and
inventoried, and their preferences determined.
 - This doctrine is a device to prevent undue
enrichment based on the equitable postulate that it is
ART. 111 – Attorney’s Fees
unjust for a person to retain benefit without paying for it.
(a) In cases of unlawful withholding of wages, the
* Where a lawyer is employed without a price for his
culpable party may be assessed attorney’s fees equivalent
services being agreed upon, the courts shall fix the
to 10% of the amount of wages recovered.
amount on quantum meruit basis. In such a case, he
(b) It shall be unlawful for any person to demand or would be entitled to receive what he merits for his
accept, in any judicial or administrative proceedings for services.
the recovery of wages, attorney’s fees which exceed 10%
of the amount of the wages recovered.
Rule 20.01, Canon 20 of the Code of Professional
Responsibility
Jurisprudence
Guidelines in ascertaining the real worth of a lawyer’s
* Whether there is an agreement or not, the courts can fix services:
a reasonable compensation which lawyers should receive
1. the time spent and the extent of services rendered or
for their professional services.
required;
- However, the value of lawyer’s legal services
2. the novelty and difficulty of the questions involved;
should not be established on the basis of Article 111 alone.
3. the importance of the subject matter;
* Article 111 fixes only the limit on the amount of
attorney’s fees the victorious party may recover in any 4. the skill demanded;
judicial or administrative proceedings, and it does not
5. the probability of losing other employment as a result
even prevent the NLRC from fixing an amount
of acceptance of the proffered case;
lower than 10% ceiling prescribed y the article when
the circumstances warrant it. 6. the customary charges for similar services and the
schedule of fees of the IBP chapter to which the lawyer
* Quantum meruit (“as much as he deserves”) is used
belongs;
as the basis for determining the lawyer’s professional fees
in the absence of a contract, but recoverable by him from 7. the amount involved in the controversy and the
his client. benefits resulting to the client from the services;
8. the contingency or certainty of compensation;
9. the character of the employment, whether occasional
or established; and
10. the professional standing of the lawyer.
PROHIBITIONS REGARDING WAGES
ART. 112 – Non-interference in Disposal of Wages
No employer shall limit or otherwise interfere with
the freedom of any employee to dispose of his wages. He
shall not in any manner force, compel, or oblige his
employees to purchase merchandise, commodities or
other property from any other person, or otherwise make
use of any store or services of such employer or any other
person.
ART. 113 – Wage Deduction
No employer, in his own behalf or in behalf of any
person, shall make any deduction from the wages of his
employees, except:
a. In cases where the worker is insured with his consent
by the employer, and the deduction is to recompense the
employer for the amount paid by him as premium on the
insurance;
b. For union dues, in cases where the right of the worker
or his union to check-off ahs been recognized by the
employer or authorized in writing by the individual
worker concerned; and
c. In cases where the employer is authorized by law or
regulations issued by the Secretary of Labor and
Employment.
Other allowable wage deductions:
1. Income taxes
2. SSS payments
3. Philhealth
4. Contributions to PAG-IBIG Fund
5. Value of facilities supplied by the employer
6. Deduction for payments of demandable debts due to
the employer
7. Deductions made in case of judgment against the
debtor-worker
8.Deductions for absences
9. Worker’s insurance acquired by the employer
10. Union dues, where the right to check-off has been
recognized by the employer
Deductions must be made with Consent of the
Employees
 The Omnibus Rules Implementing the Labor Code
also provide that deductions from wages of the employees
may only be made by the employer in case authorized by
law.
Compulsory purchase of merchandise and
payment of wages by means of tokens –
punishable by law
Art. 288 of the RPC provides for the penalty upon
any person, agent or officer of any association or
corporation who shall force or compel, directly or
indirectly, or shall knowingly permit any laborer or
employee employed by him or by such firm or
corporation to be forced or compelled, to purchase
merchandise or commodities of any kind.
The same penalties shall be imposed upon any
person who shall pay the wages due a laborer or
employee employed by him, by means of tokens or
objects other than the legal tender currency of the laborer
or employee.
ART. 114 – Deposits for Loss or Damage
No employer shall require his worker to make
deposits from which deductions shall be made for the
reimbursement of loss of or damage to tools, materials, or
equipment supplied by the employer, except when the
employer is engaged in such trades, occupations or
business where the practice of making deductions or
requiring deposits is a recognized one, or is necessary or
desirable as determined by the Secretary of Labor and
Employment in appropriate rules and regulations.
ART. 115 – Limitations
Requisites for Valid Deductions from Deposits or
Wages
Where the employer is engaged in such trades,
occupations or business where the practice of making
deductions or requiring deposits is recognized to answer
for the reimbursement of loss or damage to tools,
materials, or equipment supplied by the employer to the
employee, the employer may make wage deductions or
require the employees to make deposits from which
deductions shall be made, subject to the following
conditions:
1. That the employee concerned is clearly shown to be
responsible for the loss or damage;
2. That the employee is given reasonable opportunity to
show cause why deduction should not be made;
3. That the amount of such deduction is fair and
reasonable and shall not exceed the actual loss or
damage; and
4. That the deduction from the wages of the employee
does not exceed 20% of the employee’s wages in a week.

ART. 116 – Withholding of Wages and Kickbacks
Prohibited
It shall be unlawful for any person, directly or
indirectly, to withhold any amount from the wages of a
worker or induce him to give up any part of his wages by
force, stealth, intimidation, threat or by any other means
whatsoever without the worker’s consent.
Kickback – is the payment of something of value to an
individual with the goal of persuading or influencing
his/her decision or performance in a certain situation.
- may be in the form of cash or favors and can be
legal or illegal.
- a common form of kickbacks, in the context of
investing, is a commission rebate for investors who trade
frequently.
- it is unlawful to deduct kickbacks from the wages
of the worker.
XPN:
1. Withholding wages, except for a debt due, shall not be
made by the employer.
- The laborer’s wages shall not be subject to
execution or attachment, except for debts incurred for
food, shelter, clothing and medical attendance.
2. Clearance procedures
- As a general rule, employers are prohibited from
withholding wages from employees based on Arts. 113,
116; and Art. 100 prohibits the elimination or diminution
of benefits.
- However, our law supports the employer’s
institution of clearance procedures before the release of
wages.
- Requiring clearance before the release of last
payments to the employee is a standard procedure among
employers, whether public or private.
- Clearance procedures are instituted to ensure
that the properties, real or personal, belonging to the
employer but are in the possession of the separated
employee, are returned to the employer before the
employee’s departure.
ART. 117 – Deduction to Ensure Employment
It shall be unlawful to make any deduction from
the wages of any employee for the benefit of the employer
or his representative or intermediary as consideration of
a promise of employment or retention in employment.
Reason: To protect the lowly paid workers from the
uncanny and deceptive strategies of some unscrupulous
employers who instead of helping the workers, take
advantage and abuse their situation.
Basis: The constitutional provisions on social justice and
protection to labor in the declaration of Principles and
State Policies, impose upon the courts the duty to ever eb
vigilant in protecting the rights of workers who are placed
in a contractually disadvantaged position and who sign
waivers or provisions contrary to law and public policy.
* This is so even if the worker gave his/her express
consent, the deductions under this article is still
prohibited by law. Any agreement or contract is void ab
initio.
ART. 118 – Retaliatory Measures
It shall be unlawful for an employer to refuse to
pay or reduce the wages and benefits, discharge or in any
manner discriminate against any employee who has filed
any complaint or instituted any proceeding under this
Title or has testified or is about to testify in such
proceedings.
Notes
* It is considered as one of the unfair labor practices
under Art. 248(f) of the Labor Code to dismiss, discharge
or otherwise prejudice or discriminate against an
employee for having given or being about to give
testimony under this Code.
* Example of violations of laws relating to wages and
other labor standards benefits: non-remittance of SSS
contributions, non-payment of PAG-IBIG contributions,
underpayment of wages, etc.
ART. 119 – False Reporting
It shall be unlawful for any person to make any
statement, report, or record filed or kept pursuant to the
provisions of this Code knowing such statement, report
or record to be false in any material respect.
WAGE STUDIES, WAGE AGREEMENTS AND
WAGE DETERMINATION
ART. 120 – Creation of National Wages and
Productivity Commission
National Wages and Productivity Commission
Referred to as the “Commission”, which shall be
attached to the DOLE for policy and program
coordination.
ART. 121 – Powers and Functions of the
Commission
1.) To act as the national consultative and advisory body
to the President of the Philippines and Congress on
matters relating to wages, incomes and productivity;
2. To formulate policies and guidelines on wages,
incomes and productivity improvement at the enterprise,
industry and national levels;
3. To prescribe rules and guidelines for the determination
of appropriate minimum wage and productivity measures
at the regional, provincial, or industry levels;
4. To review regional wage levels set by the Regional
Tripartite Wages and Productivity Boards to determine if
these are in accordance with prescribed guidelines and
national development plans;
5. To undertake studies, researches and survey necessary
for the attainment of its functions and objectives, and to
collect and compile data and periodically disseminate
information on wages and productivity and other related
information, including but not limited to, employment
cost-of-living, labor costs, investments and returns;
6. To review plans and programs of the Regional
Tripartite Wages and Productivity Boards to determine
whether these are consistent with national development
plans.
7. To exercise technical and administrative supervision
over the Regional Tripartite Wages and Productivity
Boards;
8. To call, from time to time, a national tripartite
conference of representatives of government, workers
and employers for the consideration of measures to
promote wage rationalization and productivity; and
9. To exercise such powers and functions as may be
necessary to implement this Act.
Composition of the National Wages and
Productivity Commission
1. Secretary of Labor and Employment as ex-officio
chairman
2. Director-General of the National Economic and
Development Authority as ex-officio vice-chairman
3. Two members each from workers’ and employers’
sectors who shall be appointed by the President of the
Philippines upon recommendation of the Secretary of
Labor.
4. The Executive Director of the Commission.
The Secretariat
1. Headed by an Executive Director; and
2. Two Deputy Directors
ART. 122 – Creation of Regional Tripartite Wages
and Productivity Boards
There is hereby created Regional Tripartite
Wages Productivity Boards or “Regional Boards”
in all regions, including autonomous regions as may be
established by law.
The Commission shall determine the
offices/headquarters of the respective Regional Boards.
POWERS AND FUNCTIONS:
a. To develop plans, programs and projects relative to
wages, incomes and productivity improvement for their
respective regions;
b. To determine and fix wage rates applicable in their
regions, provinces or industries therein and to issue the
corresponding wage orders, subject to guidelines issued
by the Commision;
c. To undertake studies, researches, and survey necessary
for the attainments of their functions, objectives and
programs, and to collect and compile data on wages,
incomes, productivity and other related information and
periodically disseminate the same;
d. To coordinate with the Regional Boards as may be
necessary to attain the policy and intention of this Code;
e. To receive, process and act on applications for
exemption from prescribes wage rates as may be
provided by law or any Wage Order; and
f. To exercise such other powers and functions as may be
necessary to carry out their mandate under this Code.
COMPOSITION OF THE RTWPB (REGIONAL
WAGE BOARD)
1. Regional Director of DOLE - Chairman
2. Regional Director of NEDA - Vice Chairman
3. Regional Director of DTI - Vice Chairman
4. 2 members from the employer sector
5. 2 members from the employee sector
6. Secretariat
* Service of 5 years.
ART. 123 – Wage Order
Whenever conditions in the region so warrant, the
Regional Board shall investigate and study all pertinent
facts; and based on the standards and criteria herein
prescribed, shall proceed to determine whether a Wage
Order should be issued.
Any such Wage Order shall take effect after 15 days
from its complete publication in at least one newspaper of
general circulation in the region.
In the performance of its wage-determining
functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees’ and
employers’ groups, provincial, city and municipal officials
and other interested parties.
Aggrieved Party
Any aggrieved party by the Wage Order may
appeal such order to the Commission within 10 calendar
days from the publication of such order.
Grounds for Appeal:
1. non-conformity with prescribed guidelines and/or
procedures;
2. questions of law;
3. grave abuse of discretion.
It shall be mandatory for the Commission to
decide such appeal within 60 calendar days from the
filing thereof.
Issuance of Wage Order
Within 30 days after conclusion of the last hearing,
the Board shall decide on the merits of the petition, and
where appropriate, issue a wage order establishing the
minimum wage rates to be paid by employers in the
region which shall in no case be lower than the applicable
statutory minimum wage rates.
Frequency of Wage Order
Any wage order issued by the Board may not eb
disturbed for a period of 12 months from its effectivity,
and no petition for wage increase shall be entertained
within the said period.
In the event however, that supervening
conditions, such as extraordinary increase in prices of
petroleum products and basic goods/services, demand a
review of the minimum wage rates as determined by the
Board and confirmed by the Commission, the Board shall
proceed to exercise its wage fixing function even before
the expiration of the said period.
ART. 124 – Standards/Criteria for Minimum
Wage Fixing
Shall be as nearly adequate as is economically
feasible to maintain the minimum standards of living
necessary for the health, efficiency and general well-being
of the employees within the framework of the national
economic and social development program.
1. The demand for living wages;
2. Wage adjustments vis-à-vis the consumer price index;
3. The cost of living and changes or increases therein;
4. The needs of workers and their families;
5. The need to induce industries to invest in the
countryside;
6. Improvements in standards of living;
7. The prevailing wage levels;
8. Fair return of the capital invested and capacity to pay
of employers;
9. Effects on employment generation and family income;
and
10. The equitable distribution of income and wealth along
the imperatives of economic and social development.
WAGE DISTORTION
 A situation where an increase in prescribed wage
rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary
rates between and among employee groups in an
establishment as to effectively obliterate the distinctions
embodied in such wage structure based on skills, length
of service, or other logical bases of differentiation.
Elements:
1. An existing hierarchy of positions with corresponding
salary rates;
2. A significant change in the salary rate of a lower pay
class without a concomitant increase in the salary rate of
a higher one;
3. The elimination of the distinction between the two
levels; and
4. The existence of the distortion in the same region of
the country.
Wage Distortion is a non-strikeable issue/cause
The legislative intent that solution of the problem
of wage distortions shall be sought by voluntary
negotiation or arbitration, and not by strikes lockouts, or
other concerted activities of the employees or
management.
Correction of Wage Distortion
The employer and the union shall negotiate to
correct the distortions.
Any dispute arising from wage distortions shall be
resolved through the grievance procedure under their
collective bargaining agreement and, if it remain
unresolved, through voluntary arbitration.
Unless otherwise agreed by the parties in writing,
such dispute shall eb decided by the voluntary arbitrator
or panel of voluntary arbitrators within 10 days from the
time the said dispute was referred to voluntary
arbitration.
No CBA or Labor Unions
In cases where there are no collective agreements
or recognized labor unions, the employers and workers
shall endeavor to correct such distortions.
Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board
and, if it remains unresolved after 10 days of
conciliation, shall be referred to the appropriate branch
of the NLRC.
It shall be mandatory for the NLRC to conduct
continuous hearings and decide the dispute within 20
days from the time the said dispute is submitted for
compulsory arbitration.
* The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability of
any increase in prescribed wage rates pursuant to the
provisions of the Wage Order.

How to Correct Wage Distortions
a. organized firms – the employer and the union shall
negotiate to correct the distortion using the grievance
procedures in the CBA, or if the dispute remains
unresolved, through voluntary arbitration.
b. unorganized firms – the employers and workers
shall endeavor to correct the distortion.
- any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board;
- if it remains unresolved after 10 days of
conciliation, it shall be referred to the appropriate branch
of NLRC.
ART. 125 – Freedom to Bargain
No wage order shall be construed to prevent
workers in particular firms or enterprises or industries
from bargaining for higher wages with their respective
employers.
Notes
* Bargaining with the employer is a constitutional and a
statutory right of all workers.
Basis: Article XIII, Sec. 3, 1987 Constitution
Creditability Provision in Wage Order
The creditability provision in Wage Order No. 6 is
based on important public policy, that is, the
encouragement of employers to grant wage and
allowance increases to their employees higher than the
minimum rates of increases prescribed by statue or
administrative regulation.
It also prevents the penalizing of employers who
are industry leaders and who do not wait for statutorily
prescribed increases in salary or allowances and pay their
workers more than what the law or regulations require.
ART. 126 – Prohibition Against Injunction
No preliminary or permanent injunction or
temporary restraining order may be issued by any court,
tribunal or other entity against any proceedings before
the Commission or the Regional Boards.
Reason: For the Board to perform its functions freely,
efficiently and speedily, it must be free from unnecessary
obstacles that may impede it from addressing the
important concerns affecting the lives of the working
class.
ART. 127 – Non-diminution of Benefits
No wage order issued by any regional board shall
provide for wage rates lower than the statutory minimum
wage rates prescribed by the Congress.
Purpose: Improving the lives of the workers who toil all
day long shedding blood sweat and tears just to meet
their needs for survival.
- Improvement of economic predicament of
laborers.
- State’s avowed policy to protect labor.
ADMINISTRATION AND ENFORCEMENT
ART. 128 – Visitorial and Enforcement Power
(Full provision in pg. 222, Duka book)
Visitorial Power
 The Regional Director or their authorized
representative shall have access to employers’
records and premises at any time of the day or
night whenever work is being undertaken therein.
 He/she also has the right to copy therefrom, to
question any employee and investigate any fact,
condition or matter which may be necessary to
determine violations or may aid in the
enforcement of the Labor Code and of any labor
law, wage order or rules and regulations.
Complaint Inspection
 All such complaints shall be immediately be
forwarded to the Regional Director who shall refer
the case to the appropriate unit in the Regional
Office for assignment to a Labor Standards and
Welfare Officer (LSWO) for field inspection.
 When the field inspection does not produce the
desired results, the Regional Director shall
summon the parties for summary investigation to
expedite the disposition of the case.
 The investigation shall be concluded within 14
calendar days from the date of the first hearing.
 A proposed order disposing of the case shall be
submitted to the Regional Director within 3
calendar days from the conclusion of the
investigation.
Complaints with No Er-Ee Relationship
 Where er-ee relationship no longer exists by
reason of the fact that it has already been severed,
claims for payment of monetary benefits fall
within the exclusive and original jurisdiction of
the labor arbtiers.
 If on the face of the complaint it can be ascertained
that er-ee relationship no longer exists, the case,
whether or not accompanied by an allegations of
illegal dismissal, shall immediately be endorse by
the Regional Director to the appropriate NLRC
branch.
Compromise Agreement
Should the parties arrive at an agreement as to the
whole or part of the dispute, said agreement shall be
reduced in writing and signed by the parties in the
presence of the Regional Director or his duly authorized
representative.
Nature of Proceedings
 Summary and non-litigious in nature.
 Subject to the requirements of due process, the
technicalities of law and procedure and the rules
governing admissibility and sufficiency of evidence
obtaining in the courts of law shall not strictly
apply thereto.
 The Regional Office may avail itself of all
reasonable means to ascertain the facts or
controversy speedily and objectively, including
ocular inspection and examination of well-
informed persons.
 Substantial evidence, whenever necessary, shall be
sufficient to support a decision or order.
Compliance Order
 If the Regional Director finds after hearing that
violations have been committed, he shall issue an
order directing the employer to restitute other
corrective measures within 10 calendar days upon
receipt of the Order and submit proof of
compliance.
 The Order shall specify the amount due each
worker and shall include computations on which
the Order was based.
 Appeal from Compliance Order: The order of
the Regional Director shall be final and executory
unless appealed to the Secretary of Labor and
Employment within 10 calendar days from receipt
thereof.
 Ground for Appeal
o There is prima facie evidence of abuse of
discretion on the part of the Regional
Director;
o The order was secured through fraud,
coercion or graft and corruption;
o The appeal is made purely on questions of
law; and
o Serious errors in the findings of facts were
committed which, if not corrected, would
cause grave irreparable damage or injury to
the appellant.
 Where to File Appeal
o Shall be filed in 5 legibly typewritten copies
with the Regional Office which issued the
Order.
 Requisites of Appeal
o The appeal shall be filed within the
reglementary period as provided in Sec. 1 of
this Rule.
o It shall be accompanied by a Memorandum
of Appeal which shall state the date
appellant received the Order and the
grounds relied upon arguments in support
thereof.
 o The appellee may file with the Regional
Office his reply or opposition to the appeal
within 10 calendar days from receipt
thereof.
o Failure on the part of the appellee to file his
reply or opposition within the said period
shall be construed as a waiver on his part to
file the same.
ART. 129 – Recovery of Wages, Simple Money
Claims and Other Benefits
(See pg. 234, Duka book)
Jurisdiction of the DOLE Regional Director
The Regional Director or any of the duly
authorized hearing officers of DOLE has jurisdiction over
claims for recovery of wages, simple money claims and
other benefits, provided that the claim is filed by an
employee or person employed in domestic or household
service or househelper and the following must concur:
1. the claim must arise from employer-employee
relationship;
2. the claimant is no longer employed and does not seek
reinstatement;
3. the aggregate money claim of each employee does not
exceed 5K.
In the absence of any of the three requisites, the
Labor Arbiters have exclusive original jurisdiction over
all claims arising from employer-employee relations,
other than claims for employee’s compensation, social
security, Medicare and maternity benefits.
Jurisdiciton of DOLE Regional Director if the
Amount Exceeds 5,000
Even if the amount of the claim exceeds 5k, the
claim is not on that account necessary removed from the
Regional Director’s competence.
He may still exercise the visitorial and
enforcement powers vested in him by Art. 128 of the
Labor Code: he may still direct his labor regulations
officers or industrial safety engineers to inspect the
employer’s premises and examine his records.
The visitorial and enforcement powers of the
Secretary, exercised through his representatives,
encompass compliance with all the labor standards laws
and other labor legislation, regardless of the amount of
the claims filed by workers.
Money Claims of Kasambahay
 Sec. 37 of RA 10361, the Batas Kasambahay
provides:
o All labor-related disputes shall be elevated
to the DOLE Regional Office having
 jurisdiction over the workplace without All money arising from er-ee relationship
prejudice to the filing of a civil or criminal accruing during the effectivity of this Code shall be filed
action in appropriate cases. within 3 years from the time the cause of action accrued.
o The DOLE Regional Office shall exhaust all
Otherwise, they shall be barred forever.
conciliation and mediation efforts before a
decision shall be rendered.
o Ordinary crimes or offenses committed
under the RPC and other special penal laws
by either party shall be filed with the
regular courts.
* Even if the money claims of a kasambahay
exceeds 5,000 for as long as it is a labor related
case, eg. Non-payment of his monthly salary,
the jurisdiction now belongs to the Regional
Director of the Labor and Employment.
Appeals
The Regional Director or hearing officer shall
decide or resolve the complaint within 30 calendar days
from the date of its filing.
Any decision or resolution of the Regional Director
or officer pursuant to this provision may be appealed on
the same grounds provided in Art. 223 , within 5 calendar
days from receipt of copy of said decision or resolution, to
the NLRC.
The NLRC shall resolve the appeal within 10
calendar days from submission of the last pleading
required or allowed under its rules.
Period to File Claims