Labor Law

Labor Code
Classifications of Employees
● Regular Employees
● Casual Employees
● Seasonal Employees
● Project Employees
● Probationary Employees
● Fixed term employees
● OFW (Overseas Filipino Workers)
● Special Workers (Apprentice, Learners, & Handicapped workers)
Regular Employees
Employees who are engaged the work activities which are usually necessary or
desirable in the usual trade or business of the employer

Casual employees
Employees who rendered at least one (1) year of service in the company or his
employer, whether his service be continuous or broken, with respect to the activity
in which they are employed.
• They are neither regular, project, nor seasonal employees.
• Their jobs are merely incidental to the business of the employer and the job is to
be done on a definite period of time
Independent Contractor
A person / company that engaged to perform a service for another person/company
according to his own manner or method.
• Independent contractors have their own substantial capital in the form of tools,
equipments, facilities, materials and other resources, that enables them to complete the
work contracted.
• The principal engaged the services of the independent contractor. They agree that the
contractor shall provide for its own labor and assures the principal on the safety and
occupational standards and benefits of its labor force. The contractor controls its labor
force, while the principal controls the output of the work
• Independent contractors are legitimate business contractors. Those in labor-only
contracting are the ones prohibited by the law
Seasonal Employees
● They are employees who work by season, as the nature of business is only
seasonal.
● Regular seasonal employees are those workers who work by season only and
still considered as regular employees because they are continuously engaged
to work every season.

Project employees
● These employees are engaged to the employer for a specific period of time, or
until the certain project which they are engaged has been finished
Probationary employees
● They are employees on trial period of 6 months. Here, the employer
determines whether the employee is qualified for a permanent employee.
● All standards for regular employment shall make known to the probationary
employee, otherwise, he shall be deemed as a regular employee.

Fixed term employees

● Employees are engaged for a specific period of time only.
● An employment contract should voluntarily and knowingly entered upon by the
parties.
Overseas Filipino Workers (OFW)
● They are workers engaged in a remunerated activity in a state or country
outside the Philippines.
● Remunerated activity means that the worker has an assured employment
overseas and his employer abroad shall be liable for any sustain damage or
injury while he was working there.
Special Workers
Apprentice - a worker covered by an apprenticeship agreement while undergoing
a training for an approved apprenticeable occupation during an established period
as stated in the agreement.

Apprenticeable occupation - any trade, form of employment, or occupation

requiring more than 3 months of practical training supplemented by related
theoretical instructions. This shall not exceed 6 months of training. (Labor Code)
Learners - they are trainee in a semi-skilled and industrial occupations. The
occupation is not apprenticeable, as it may be learned through practical training
because of technical skills involved. The practical training shall not exceed 3
months.

Handicapped workers - they are employees who are impaired by age or has
physical or mental defects. Under RA 7277, disabled persons should also be given
the opportunity to be considered as workers as long as their disability does not
impede their capacity to work
Benefits , privileges, & policies affecting employees
● Minimum wage (RA 6727) - it means the lowest wage that a worker should get. The Regional
Tripartite & Productivity Wage Board (RTPWB) is the agency that sets the standard wage for
every region in the Philippines.

● In collective bargaining, the employer and its employees (represented by their labor union)
bargains or negotiates agreements with each other pertaining to wages, hours of work, and
many others related to employments.

● Failure to meet and bargain in good faith, or by grossly violating the Collective bargaining
agreements shall constitutes unfair labor practice, and can lead to strike or lockout during
deadlock.
Employment contract
A contract between the employer and employee. The employer binds himself to
pay the employee based on his length of service, time, quantity and/or quality of
work done, or efforts. While, the employee undertakes to perform his job or work
within the conditions and terms set forth in the employment contract.
Death Benefits (RA 8282)
For all workers registered under SSS:

• In case of death, an SSS member who paid at least 36 monthly contributions

before his death: the primary beneficiary of the deceased shall be entitled to
get the lump sum benefit equivalent to 36 times the monthly pension.

• A P12,000.00 funeral grant shall also be given to the beneficiary for funeral
expenses.
Health Benefits
A SSS member/worker who paid at least 3 monthly contributions in the 12-months
period before being sick or injured, and is convince more than 3 days in a hospital,
shall be paid by sickness benefit of 90% of his average daily salary credit
Retirement (RA 7641)
● An employee may retire upon reaching the retirement age in the employment
contract. (shall not exceed 65 years old)
● If there is no retiree age provided, 60 years old shall be the default age.
● All retiring employees shall be entitled to a retirement benefit provided they
served at least 5 years in the establishment.
● Retirement benefit computation: 1/2 month salary x years of service rendered
Leave Benefits
A. 5 days service incentive leave with pay for employee who has rendered at least 1 year of
service. (Article 95 of the Labor Code, as amended)
B. Maternity Leave - the Expanded Maternity Leave under R.A. No. 11210 is an act increasing
the maternity leave period to one hundred and five (105) days for female workers with pay
and an option to extend for an additional thirty (30) days without pay. This also grants
extension of fifteen (15) days for solo mothers, and for other purposes.
C. 7 days Paternity Leave with pay for all married male employees in the private sector
regardless of status of employment, to allow the husband to lend support to his wife during
her period of recovery and/or in nursing her newborn child, provided he is: (RA 8187)
1. An employee at the time of the delivery of his child;
2. Cohabiting with his spouse at the time that she gives birth or suffers a
miscarriage;
3. Applied for paternity leave with his employer within a reasonable period of time;
and
4. His wife has given birth or suffered a miscarriage.
D. 7 days Solo Parent Leave with pay is granted to a solo parent to enable him/her to perform parental
duties and responsibilities where physical presence is required provided he/she has: (RA 8972)

1. Rendered at least 1 year of service, whether continuous or broken which includes authorized
absences and paid regular holidays;
2. Notified his/her employer that he/she will avail himself/herself of it, within a reasonable period of
time; and
3. Presented Solo Parent Identification Card, which may be obtained from the DSWD office of the
city or municipality where he/she resides.

E. 10 days Leave with pay for Victims of Violence Against Women and their Children (VAWC) is
granted to women employees who are victims of physical, sexual, psychological harm or suffering, or
economic abuse. The leave benefit shall cover the days that the woman employee has to attend to
medical and legal concerns, provided that: (RA 9262)

The victim woman employee presents to her employer a certification from the barangay
chairman (Punong Barangay) or barangay kagawad or prosecutor or the Clerk of Court that an
action relative to the matter is pending.

F. Special Leave for Women of maximum 2 months with full pay who have rendered continuous
aggregate employment service of 6 months for the last 12 months, following surgery caused by
gynecological disorders. (RA 9710)
Termination of employment
● Workers has the constitutional right to have a security of tenure. They may be
terminated only for just & authorized causes under the Labor Code.
● Before termination, the employer shall afford the employee due process.
Meaning, there shall be a notice & hearing requirement before dismissal
Requirements before termination
1. Written notice to be served to the employee stating the grounds for
termination, and giving him the opportunity to explain his side.
2. A hearing or conference shall be set to give the employee the opportunity to
respond to the charges, present his evidence, and rebut those evidence
against him.
3. A written notice of termination shall be served to the employee indicating that
after the hearing and due consideration to the evidence presented, the
grounds for his termination has been justified
Just Causes as ground of
termination
● serious misconduct
● willful disobedience
● gross and habitual neglect of duty
● fraud or breach of trust
● commission of a crime or offense
against the employer, his family or
representative
● other similar causes
Authorized Causes for
Termination
● installation of labor-saving devices
● redundancy
● retrenchment to prevent losses
● closure and cessation of business
● disease / illness
Laws against discrimination
● The State shall afford protection to labor, promote full employment, ensure
equal work opportunities regardless of sex, race or creed and regulate the
relations between workers and employers
● No discrimination for disabled persons, women, and other employee’s
circumstances
Sexual Harassment
Sexual harassment: a sexual favor is made by the employer, superior, or manager
to the employee lower in rank, as a condition for hiring, promotion, or granting
favorable considerations or privileges, that results to a hostile, offensive, and
intimidating environment of the employee.