GENERAL PRINCIPLES

BASIC POLICY ON LABOR

CONSTRUCTION IN FAVOR OF LABOR

BURDEN OF PROOF AND QUANTUM OF

EVIDENCE IN LABOR CASES

LEGAL BASIS UNDER THE 1987 CONSTITUTION,

CIVIL CODE, AND LABOR CODE

Atty. Bathan-Lasco [2022] 1

 RECRUITMENT AND PLACEMENT OF
WORKERS

RECRUITMENT AND PLACEMENT (LABOR CODE

AND R. A. NO. 8042, AS AMENDED BY R.A. NO.
10022)

ILLEGAL RECRUITMENT AND OTHER PROHIBITED

ACTIVITIES
a. Elements
b. Types of illegal recruitment
c. Illegal recruitment vs. estafa

LIABILITY OF LOCAL RECRUITMENT AGENCY AND

FOREIGN EMPLOYER
a. Solidary liability
b. Theory of imputed knowledge

ENTITIES PROHIBITED FROM RECRUITING

CANCELLATION OF LICENSE OR AUTHORITY

TERMINATION OF CONTRACT OF MIGRANT WORKER

WITHOUT JUST OR VALID CAUSE

BAN ON DIRECT HIRING, EXCEPTIONS

EMPLOYMENT OF NON-RESIDENT ALIENS

2
 LABOR STANDARDS accomplishing the
work except the
results thereof.
EMPLOYER-EMPLOYEE RELATIONSHIP
They are considered
TEST TO DETERMINE EXISTENCE as independent
contractors not
needing protection
AGENCY from the Labor
Code.
PRINCIPAL-AGENT RELATIONSHIP
Subordination Employer Independent
in Work exercises control contractors carries a
Art 1868 NCC: By the contract of agency, a person binds
Relation not only the distinct and
himself to render some service or to do something in
means and independent
representation or on behalf of another, with the consent or
methods but also business and
authority of the latter.
the results undertakes to
thereof. perform the job,
- It is the principal who selects the agent. An agent is work, or service on
compensated under the contract of agency of services its own account and
rendered. He is disciplined by the principal as in the case of under its own
an employee because the agent is under the authority of the responsibility,
principal. The principal controls the means and methods of according to its own
the work of an agent. In this relationship, there is only one manner and method
party. The agent is merely an extension of the principal. They and free from the
are regarded as one. So if there is a contractor relationship, it control and
is not among three parties but is between the principal/agent direction of the
and the other party. principal in all
matters connected
- To make a distinction between a principal-agent with the
relationship and that of an employer-employee relationship, performance of the
the four-fold test will not be used because the (1) agent is work except as to
selected by the principal (2) and is also compensated by the the results thereof.
principal (3) and most oftentimes, the principal also Employer- principal-contractor
substitutes his own judgment for that of the agent. employee relationship is
- EMPLOYER-EMPLOYEE v. PRINCIPAL-AGENT relationship is governed by the
governed by the Civil Code,
○ Employer-Employee Relationship –
Labor Code specifically under
governed by the Labor Code
Obligations and
○ Principal-Agent Relationship – governed Contracts
by the Civil Code "Talent" refers to an
independent
EMPLOYEE V. INDEPENDENT CONTRACTOR contractor or
EMPLOYEE INDEPENDENT individual who has
CONTRACTOR unique skills,
Economic Employee cannot Medical doctors, experience and
Dependence bargain the terms lawyers, dentists, talents or celebrity
by the and conditions of engineers in the status and whose
Worker employment. exercise of their means and methods
profession offer in the performance
special services, the of his/her work is
person engaging outside the control
their services cannot of another or the
exercise control hiring party, and
over the means and his/her
methods of service/engagement
contract is governed
Georfo, Recca 3
 by the Civil Code TRILATERAL RELATIONSHIP
provisions on
contracts and other relationship in a contracting or subcontracting arrangement
applicable laws, but where there is a contract for a specific job, work or service
in no case lower between the principal and the contractor, and a contract of
than the standards employment between the contractor and its workers
provided by the PARTIES
Labor Code, as
1. principal who decides to farm out a job, work or
amended. (DOLE
service to a contractor
Labor Advisory No.
2. contractor who has the capacity to independently
04, S. 2016, dated
undertake the performance of the job, work or
April 26, 2016)
service
PRINCIPAL-INDIVIDUAL INDEPENDENT CONTRACTOR (FREE 3. contractual workers engaged by the contractor to
ARTISAN) RELATIONSHIP accomplish the job, work or service
ARTICLE 1713, NCC: By contract for a piece of work, the In job contracting or subcontracting, the four-fold test of
contractor binds himself to execute a piece of work for the employer-employee relationship should be satisfied by the
employer, in consideration of a certain price or consideration. contractor or subcontractor in relation to the employees it
The contractor may either employ only his labor, skill, or also engages to accomplish the subcontracted job or service. In
furnishes the materials. such cases, the subcontractor is also referred to as
independent contractor.
- The principal selects the contractor. The contractor
is compensated for services rendered. The contractor is not LEGITIMATE JOB CONTRACTING
under the discipline of the principal. The definition says that
aside from engaging in the business separately distinct from Department Order No. 174, Series of 2017 allows contracting
the principal, the performed job, work, or services is if contractor or subcontractor:
according to his own means and methods free from the 1. is engaged in a distinct and independent business
control and direction of the principal except as to the results (direct relation to principal’s business test)
thereof. 2. undertakes to perform the job/work on its own
- Contractor may be Individual, Corporate Juridical responsibility, according to its own manner and
Entity – no need of protection from Labor Code because they method
earn better. 3. has substantial capital to carry out the job farmed out
by the principal on his account (substantial capital or
CONTRACTING OUT ARRANGEMENT investment test)
4. has investment in the form of tools, equipment,
A management prerogative where an employer contracts out machinery, and supervision (substantial capital or
to a contractor or subcontractor the performance of a specific investment test)
job or service 5. is free from the control and/or direction of the
principal in all matters, except as to the result. (right of
LABOR CONTRACTING
control test)
- completion or performance of a job, work, or service 6. Service Agreement ensures compliance with all rights
within a given period. It could be either a (1) job and benefits for all employees (legal rights and
contracting or (2) labor-only contracting. benefits test)
- not illegal per se; it becomes unlawful if it is labor-only
DIRECT RELATION TO PRINCIPAL’S BUSINESS TEST
contracting.
If the employees recruited, supplied, or placed by a
INDEPENDENT CONTRACTOR contractor are performing activities which are directly related
An independent contractor may be: to the main business of the principal, the contractor is
deemed a labor-only contractor.
1. an individual person, or
2. an organization which must be registered: Norkis Trading v. Buenavista [2012]
a. Corporation = SEC Mandaue Galeon vs. Andales (March 7,
b. Partnership = SEC
Almeda vs. Asahi [2008]
c. Union = DOLE
d. Cooperative = CDA and DOLE SUBSTANTIAL CAPITAL OR INVESTMENT TEST
Note: Non-registration creates the presumption that whether the contractor has substantial capital or investment
the purported contractor is engaged in labor-only in the form of tools, equipment, machineries, work premises,
contracting. and other materials necessary in the conduct of the business
Substantial Capital (Department Order No. 174)
4
 - Corporations, partnerships, cooperatives = paid up f. Requiring contractor’s employees to perform functions
capital stocks/shares at least 5 million pesos which are currently performed by regular employees
- Single Proprietorship = net worth of at least 5 million g. Requiring contractor’s employees to sign (as a pre-
pesos condition for employment or continued employment)
an antedated resignation letter, blank payroll, waiver
RIGHT OF CONTROL TEST
of labor standards
Manner and method is free from the control and direction of h. Repeated hiring by the contractor of employees under
the principal, except as to the result. an employment contract of short duration
Areas where control is exercised:
EFFECTS OF LABOR-ONLY CONTRACTING
1. hire, fire, and pay contractor’s employees
- Labor-only contractor will be treated as mere agent or
2. power to discipline employees
intermediary of the principal (Alps Transportation v.
3. actual supervision
Rodriguez, 13 June 2013)
MAGO V. SUN POWER MANUFACTURING, JAN. 24, 2018 - Principal will become direct employer
- Principal and labor only contractor will be solidarily
Despite proof of substantial capital, contractor is labor only
treated as employer
contractor if principal actually controls the manner of
- Employees supplied by the labor-only contractor will
employee’s work.
become regular employees of the principal
LEGAL RIGHTS AND BENEFITS TEST
SOLIDARY LIABILITY OF PRINCIPAL
If the Service Agreement (between principal and contractor)
assures employees of the latter farmed out to the former of Article 106, LC (IN A LEGITIMATE JOB CONTRACTING)
their entitlement to all labor standards (including occupation - The contractor is the employer directly responsible to
safety and health standards), then it is a legitimate the employees
contracting arrangement. - Limited Liability of the Principal: liability of the
Entitlements of employees of contractors/subcontractors: principal in the same manner and extent that he/she is
liable to his/her direct employees to the extent of the
a. security of tenure work performed under the contract when the
b. safe and healthful working conditions contractor fails to pay the wages of his/her employees
c. Labor standards o Should the contractor fail to pay the wages, the
i. SIL principal is liable only to the extent of the work
ii. rest days performed and only with respect to the
iii. overtime pay payment of wages.
iv. holiday pay - The principal cannot be accused of illegal dismissal
v. 13th month pay insofar as the contractual employees are concerned
vi. Separation pay because there is no employee-employer relationship.
d. Retirement benefits
e. SSS and other welfare benefits Article 109, LC (IN A LABOR-ONLY CONTRACTING)
f. Self-organization, collective bargaining and peaceful - as direct employer together with the contractor for
concerted activities any violation of any provision of the Labor Code
- The contractor is merely an agent of the employer. The
OTHER ILLICIT FORMS OF EMPLOYMENT principal and contractor will be solidarily treated as the
a. Principal farms out to a “Cabo” (person or group of employer.
persons/labor group which, under the guise of a labor - The principal’s liability pertains not only to unpaid
organization, cooperative or any entity, supplies wages but extends to any and all liability under the
workers to an employer, with or without any monetary Labor laws.
consideration, whether in the capacity of an agent of - The employer is deemed to have directly hired the
the employer) contractual employees and is therefore liable for any
b. Contracting out of a job or work through “In-house and all violations of the Labor Code.
Agency” (contractor owner, managed, or controlled,
directly or indirectly, by the principal or one where RIGHT OF CONTRACTOR’S EMPLOYEES FROM EITHER
principal owns/represents any share of stock OR BOTH PRINCIPAL OR LEGITIMATE CONTRACTOR
c. Contracting out of a job or work through “In-house EPARWA V. LICEO DE CAGAYAN UNIVERSITY [2006]
Cooperative”
d. Contracting out of a job/work by reason of Security guards may collect wage differentials and premium
strike/lockout pay for holiday and rest day from either or both principal
e. Contracting out of a job/work performed by union (Liceo) or contractor Eparwa
members
Georfo, Recca 5
To hold principal liable, no need to prove insolvency of Job
Contractor (Development Bank of the Phil. v. NLRC; Del
Rosario and Sons Logging v. NLRC)
REVIEW QUESTIONS
Q. If USC hired services of a security agency to provide
security guards for the school, is that a contracting
arrangement?
A. Yes. Because USC decided not to hire security guards
directly, instead, they hired the services of an agency to
provide security guards for the school.
Q. Why is it that employers engage in contracting
arrangement rather than direct hiring?
A. Because of the expertise and experience of the agencies,
and also for reasons of economy (reducing cost for trainings
etc).
Q. Is a contracting arrangement the same as recruitment and
placement?
A. No. The rules in contracting arrangement exclude
recruitment and placement.
Q. Who may apply/register as a contractor?
A. Any person (whether natural or juridical including unions)
as long as it complies with the requirements.
Q. What if USC defaults the payment of services of security
agency, is there a cause of action?
A. Yes, breach of duty.
Q. What is the action?
A. File a civil dispute (note: it must be raised in a regular
court)
Q. What is the obligation of USC to the security guards?
A. 1. As an indirect employer - there is a liablity of USC if the
security agency defaults its payment of wages only to the
extent of work performed by the security guards.
2. As a principal – as a rule, USC as an indirect employer of
security guards has no obligation to them. But, in case the
security agency defaulted payment of salary of the security
guards, then, the principal (USC) has the obligation to pay the
wages because he becomes a direct employer only for a
limited purpose of paying wages as if the principal (USC)
employed the guards himself.
Q. What is the constitutional basis for this rule of holding the
principal jointly and severally liable with the contractor?
A. The protection to labor clause.
Q. Is it unfair that the principal will also be held liable for
defaults imputable to the contractor?
A. No, it is not because the principal is allowed
reimbursement with whatever he has paid to the security
guards.
Q. Who are the 2 types of employers in contracting
arrangement?
A. 1. Direct employer – e.g. Security agency of security guards
or any person who have persons in its employ. USC is a direct
employer regarding its teachers.
2. Indirect employer – known as statutory employer. USC as
to security guards of security agency.
Q. If John has no employees and hires services of a building
contractor and the building contractor also hires construction
workers. Is John a direct employer?
A. No, because he has no employees of his own.
Q. What is John’s relation to the construction workers?
A. He is an indirect employer.
Q. What if the construction workers hired by the building
contractor were not paid their wages?
A. John’s liability is that of a direct employer. He is jointly and
severally liable with the contractor. The principal has limited
liability. Should the contractor fail to pay the wages, the
principal is liable only to the extent of the work performed
and only with respect to the payment of wages. The principal
is jointly and severally liable with the subcontractor for
payment of all employees’ wages to the extent of the work
performed under the contract
Q. Who is an individual independent contractor?
A. Individuals with special skills, expertise or talent enjoy the
freedom to offer their services as independent contractors.
Q. What is the meaning of wages in contracting agreement?
A. It is not limited to a minimum wage but it also covers labor
standard benefits (holiday, 13th month, premium pay).
Q. Does it include retirement pay?
A. No.
Q. Does it include separation pay?
A. No, it is the sole obligation of the contractor. It is not found
in Labor Code.
Q. What is the liability of an indirect employer if there is an
increase in wage rates?
A. The contract is deemed amended; therefore USC will
automatically include the increment on the minimum wage.
Q. Who should pay the increase in wage rates?
A. Security agency should pay the security guards as their
employer. The guards should not go after unless the
contractor refuses to pay.
Q. What if contractor refuses to pay the employees on the
increase wage rate?
A. Employees can demand from the principal.
Q. What if the principal refuses to pay the employees on the
increase wage rate, is the principal justified?
A. It is not allowed because he is jointly and severally liable
with the contractor.
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Q. If the principal pays, is he entitled to reimbursement by
the contractor?
A. No. The law is clear that if there is an increase in wage rate
it shall be borne by the principal. (note: this is a different
liability of the principal from the unpayment of wages of the
employees by the contractor because in the latter the
principal is entitled to reimbursement.)

CONDITIONS OF EMPLOYMENT

Georfo, Recca 7
 WAGES 5. Other monetary benefits not considered as part of or
an integral part of the wage
WAGE 6. Payments for sick, vacation and maternity leaves, night
differentials, regular holiday pay and premiums for
- remuneration or earnings, however designated, work done on rest days and special holidays (Honda
capable of being expressed in terms of money, Phils . Vs. Samahan ng Malayang etc . G.R. No. 145561
whether fixed or ascertained on a time, task, piece, or June 15, 2005)
commission basis, or other method of calculating the
same, which is payable by an employer to an employee MINIMUM WAGE
under a written or unwritten contract of employment
for work done or to be done, or for services rendered CONCEPT OF “MINIMUM WAGE”
or to be rendered
- BASIC CASH WAGE
- includes the fair and reasonable value, as determined
- Without deduction free of charge (of aside whatever
by the Secretary of Labor, of board, lodging, or other
from the benefits
facilities customarily furnished by the employer to the
- basic pay
employee (Article 97(f) Labor Code)
NO WORK, NO PAY PRINCIPLE: “FAIR DAY’S WAGE
WAGE V. SALARY
FOR A FAIR DAY’S LABOR”
Wage Salary
compensation for manual denotes a higher degree of PAL VS. NLRC, GR 55159 JUNE 22, 1989
labor, skilled or unskilled, employment or a superior General Rule: If there is no work performed by the employee
paid at stated times, and grade of services, and there can be no wage or pay...
measured by the day, week, implies a position or office
month, or season Exception: ...unless the laborer was able, willing and ready to
artisans, mechanics, clerks, officers of public work but was prevented by management or was illegally
laborers, and other corporations, and public locked out, suspended or dismissed.
employees of like class offices Exception to the exception: Where the employee’s dismissal
pay for a lower and less suggestive of a larger and was for a just cause, it would neither be fair nor just to allow
responsible character of more permanent or fixed the employee to recover something he has not earned and
employment compensation for more could not have earned.
important service
SSS V. SSS SUPERVISOR’S UNION, GR L-31832, OCTOBER
EQUITABLE PCIB V. SADAC, G.R. 164772, JUNE 8, 2006 23, 1982
In Article 1708 of the Civil Code, wage and salary are Where the failure of workers to work was not due to the
distinguished with regards to execution and attachment. employer’s fault, the burden of economic loss suffered by the
Article 1708 mandates that, “the laborer’s wage shall not be employees should not be shifted to the employer. Each party
subject to execution or attachment, except for debts incurred must bear his own loss.
for food, shelter, clothing and medical attendance.”
EQUAL PAY FOR EQUAL WORK
Note: In labor law, however, the distinction appears to be
merely semantics. In some cases, SC ruled that “wages” and Persons who work with substantially equal qualifications,
“salary” are in essence synonymous. Both words generally skill, effort and responsibility, under similar conditions, should
refer to one and the same meaning, that is, a reward or be paid similar salaries.
recompense for services performed. INTERNATIONAL SCHOOL OF ALLIANCE OF EDUCATORS
V. QUISUMBING, G.R. NO. 128845, JUNE 1, 2000
PAYMENT OF WAGES
This rule applies to the School notwithstanding its
BASIC WAGE "international character": If an employer accords employees
the same position and rank, the presumption is that these
all remuneration or earnings paid by an employer for services employees perform equal work. There is no evidence that
rendered on normal working days and hours foreign-hires perform 25% more efficiently or effectively than
local-hires. Both groups have similar functions and
EXCLUSION FROM THE TERM “WAGE”
responsibilities, which they perform under similar conditions.
1. Cost of Living Allowance (COLA)
The “dislocation factor” and the foreign-hires “limited
2. Profit-sharing payments
tenure” also cannot serve as valid bases for the distinction in
3. Premium payments
salary rates. The dislocation factor and limited tenure
4. 13th month pay
affecting foreign-hires are adequately compensated by
certain benefits accorded to them which are not enjoyed by
8
the local-hires such as housing, transportation, shipping cost, services rendered to the of the employee in an
taxes, and home leave travel allowance. non-industrial cases employer’s company
7. Other articles and 5. Paid vacation, sick
We find the point-of-hire classification employed by
services given primarily and maternity leaves
respondent school to justify the distinction in the salary rates
for the benefit of the 6. Tools of the trade or
of foreign-hires and local-hires to be an invalid classification.
worker or his family articles of services
There is no reasonable distinction between the services
(Revised Guidelines on primarily for the
rendered by foreign-hires and local-hires.”
the Conduct of Facility benefit of the
Employees in the Philippines, if they are performing similar Evaluation [DOLE DO No. employer or
functions and responsibilities under similar working 126-13]) necessary to the
conditions, should be paid under this principle. conduct of the
employer’s business
RIGHT TO A “LIVING WAGE” [DOLE DO No. 126-13]
All worker shall be entitled to a living wage. (Section 3, Article 7. overtime rate in
8, 1987 Constitution) excess of what is
required by law
This means that the minimum wage must not only sustain the
8. sick, pension,
employee, but it should be enough to sustain his family, etc.
retirement, and death
FACILITIES V. SUPPLEMENTS benefits
9. profit-sharing
FACILITIES SUPPLEMENTS 10. family allowances
articles/services for the extra remuneration or 11. Christmas, war risk
benefit of the employee or privileges or benefits and cost-of-living
his family but does not given to or received by bonuses
include tools of the trade or the labors over and above 12. other bonuses other
articles or services primarily their ordinary than those paid as a
for the benefit of the reward for extra
employer or necessary to the output or time spent
conduct of the employer’s on the job earnings
business (Atok-Big Wedge wages
case) employer can fix a value for
Wage-deductible: Form part Not wage-deductible: facilities, evaluation
of the wage and when independent of the wage conducted to RTWPB, not the
furnished by the employer DOLE pursuant to the Wage
are deductible therefrom Rationalization Act
(since if they are not so - Employer may provide subsidized meals and snacks to
furnished, the laborer would his employees (provided subsidy shall not be less than
spend and pay for them just 30% of the fair and reasonable value of such facilities
the same) - Free board and lodging furnished to its employees
1. Meals 1. Emergency medical cannot operate as a set-off for the underpayment of
2. Housing for dwelling and dental services wages
purposes (furnished by virtue of
3. Fuel (electricity, water, the requirement MABEZA VS. NLRC, GR 118506, APRIL 18, 1997
gas for personal use of under LC) Requisites For Facilities To Be Considered As An Integral Part
the employee) 2. Cost, rental and/or Of An Employee's Wage (Deductibility):
4. Transportation between laundry of uniform
(1) proof must be shown that such facilities are customarily
home and work where where the nature of
furnished by the trade (Customary – is founded on long-
travel time does not the business requires
established and constant practice connoting regularity)
constitute hours worked the employees to
compensable under the wear a uniform (2) the provision of deductible facilities must be voluntarily
LC and other laws 3. Transportation accepted in writing by the employee
5. School, recreation and charges (3) facilities must be charged at fair and reasonable value
sanitation operated (transportation is in
exclusively for the benefit incident to or Food and lodging, or the electricity and water consumed by
of the worker or his necessary to the the petitioner were not facilities but supplements. A benefit
family employment) or privilege granted to an employee for the convenience of
6. Medical and dental 4. Shares of capital stock the employer is not facility.

Georfo, Recca 9
The criterion in making a distinction between the two not so
much lies in the kind (food, lodging) but the purpose.
Considering that hotel workers are required to work different
shifts and are expected to be available at various odd hours,
their ready availability is a necessary matter in the operations
of a small hotel, such as the private respondent’s hotel.
If the requisites are all present, that facilities may take the
place of the cash payment of the employee’s wage. This is
one exception of the requirement that an employee’s wage
shall be paid in legal tender, you cannot pay it in kind. This
means that an employer may provide, for instance, food and
housing to his employees but he may deduct their values
from the employees’ wages.
PROCESS IN FACILITY EVALUATION
1. File an application with RTWPB having jurisdiction over
the workplace
a. By a union, an individual worker, owner or
manager of an establishment
2. If articles, goods or services are provided for the first
time, then the RTWPB requires that before the
introduction of the proposed facility, the application
must be file with them. BUT if before the passage of
this DO, the employer has been providing these
facilities, then the application may be filed at any time.
3. The end result, the Regional Director of DOLE will issue
a Facility Evaluation Order
4. If the parties affected oppose with the order, it can be
appealed to the NWPC
5. The appeal will never stay the Facility Evaluation Order
of the RD
6. It shall be effective until it is rebuked by the RTWPB.
7. The employer must post such order in a conspicuous
place and submit such proof to the RTWPB.
8. To assure the compliance, the DO provides for the
enforcement power of the SOLE through Visitorial
Enforcement Powers under Article 128.
BENEFITS V. ALLOWANCES
BENEFITS ALLOWANCES
additional non-cash type of benefit; amount of
incentives you would money you give to
provide to your employees employees for a certain
over and above their salary purpose
compensation
- Allowances are always benefits but benefits are not
always allowances.
o Example: Cost of Living Allowance
MEANING OF “SUPPLEMENTS AND OTHER BENEFITS”
UNDER ARTICLE 100
1. compensation and privileges received by an employee
aside from regular salaries or wages (Netlink v. Delmo)
2. monetary benefits or privileges given to the employee
with monetary equivalents: Such benefits or privileges
form part of the employees’ wage, salary or
compensation making them enforceable obligations.
(Royal Plant Union v. Coca-Cola)
3. overtime pay does not fall within the definition of
benefits under Article 100 of LC (San Miguel v. Layoc)
NETLINK V. DELMO
Generally, obligations must be paid in Philippine currency. As
an exception, parties may enter into a written agreement to
pay obligations using foreign currency.
Nonetheless, absence of such written agreement between
the employer and the employee that sales commissions shall
be paid in a foreign currency, the latter has the right to be
paid in such foreign currency once the same has become an
established practice or company policy of the employer.
The principle of non-diminution of benefits, under Article 100
of the Labor Code, forbids any employer from unilaterally
reducing, diminishing, discontinuing or eliminating the
practice.
Verily, the phrase "supplements, or other employee benefits"
in Article 100 is construed to mean the compensation and
privileges received by an employee aside from regular salaries
or wages.
ROYAL PLANT UNION V. COCA-COLA
Procedural Issue: A decision or award of a voluntary
arbitrator is appealable to the CA via a petition for review
under Rule 43.
Substantial Issue: The decision to remove the chairs was done
with good intentions as Coca-Cola wanted to avoid instances
of operators sleeping on the job while in the performance of
their duties and responsibilities and because of the fact that
the chairs were not necessary considering that the operators
constantly move about while working. It was a valid exercise
of management prerogative.
There was no law violated with the removal of chairs because
Article 132 of the LC only requires employers to provide seats
for women. No similar requirement is mandated for men. The
operators here are all men.
The operators’ chairs cannot be considered as one of the
employee benefits covered in Article 100 of the Labor Code.
The term "benefits" mentioned in the non-diminution rule
refers to monetary benefits or privileges given to the
employee with monetary equivalents.
Such benefits or privileges form part of the employees’ wage,
salary or compensation making them enforceable obligations.
SAN MIGUEL V. LAYOC
Note: Supervising security guards are managerial employees.
Managerial employees are not entitled to overtime because
Art. 82 of the LC states that the provisions of the Labor Code
on working conditions and rest periods shall not apply to
managerial employees.
10
Non-payment of overtime pay does not constitute diminution
of benefits because overtime pay does not fall within the
definition of benefits under Article 100 of the Labor Code.
NON-DIMINUTION OF BENEFITS
BASIS
- Proper basis is not really Art. 100 (Arco Metal Products
v. Samahan ng mga Manggagawa)
- Basis
1. Express terms of an employment agreement
2. Company practice (implied terms of an
employment agreement which the employer
has freely, voluntarily, and consistently
extended to its employees)
3. Art. 4, LC: construction of labor laws in favor of
labor
PRINCIPLES OF NON-DIMINUTION OF BENEFITS
Non-diminution rule prohibits employers from eliminating or
reducing benefits if based on the following:
1. Express policy
2. Written contract
3. Company practice (Wesleyan University v. Wesleyan
Faculty and Staff)
Q. DE Transport Inc. included the overtime pay, night-shift
differential pay, and the like in the computation of its
employees' 13th- month pay. Later, an explanatory bulletin
was issued by the DOLE Secretary citing a Supreme Court
decision wherein other monetary claims/benefits are not
included in the computation of the base figure for the
payment of 13th month pay. DE Transport, citing the principle
of solutio indebiti, sought to recover the alleged overpayment
by debiting against future 13th month payments whatever
excess amount it had previously made. As lawyer of DE
Transport, explain your rationale why solutio indebiti may be
applied in this case against the claim of the employees that
this constitutes diminution of benefits?
A. Solutio indebiti may be applied in this case because DE
Transport demanded the recovery of the overpayment.
In Davao Fruits Corporation v. ALU, the Court ruled in favor of
the employees stating the employer cannot invoke solution
indebiti because in solutio indebiti, the obligee is required to
return to the obligor whatever he received from the latter.
But the employer in this case, did not demand the return of
the alleged overpayment. Employer asked for the rectification
of error it made over the years by excluding overtime pay and
the likes from the 13th month pay of the employees.
However, in the case at bar, DE Transport sought to recover
the alleged overpayment by debiting against future 13th
month payments it had previously made. It did not asked for
any rectification of error, instead it has a legal basis which is a
Supreme Court decision.
Georfo, Recca
REQUISITES FOR DIMINUTION OF BENEFITS
1. the grant of the benefit is founded on a policy or has
ripened into a practice over a long period of time
2. the practice is consistent and deliberate
3. the practice is not due to error in the construction or
application of a doubtful or difficult question of law
4. the diminution or discontinuance is done unilaterally
by the employer
EXCEPTIONS TO THE NON-DIMINUTION RULE
1. correction of error
2. negotiated benefits
3. wage order compliance
4. benefits on reimbursement basis
5. reclassification of position
6. contingent benefits or conditional bonus
7. productivity incentives
PROHIBITIONS REGARDING WAGES
NON-INTERFERENCE BY EMPLOYERS IN THE DISPOSAL
BY EMPLOYEES OF THEIR WAGES (ART. 112, LC)
An employer shall NOT force, compel or oblige his employees
to purchase merchandise, commodities or other properties
owned by the employer or from any other person, or to use
any store or services of such employer or any other person.
WORKER’S LIEN
The laborer’s wages shall be a lien on the goods
manufactured or the work done. (Art 1707, NCC)
- Lien: a charge on property usually for the payment of
some debt or obligation
- Laborers who are not paid by an unscrupulous and
irresponsible employers may, by legal means, have the
goods manufactured (personal property only) sold, and
out of the proceeds get their salary, returning the
excess, if any.
- Note: Lien is allowed only if the laborer was directly
employed or engaged by the owner. The rule does not
apply if contractor, with men under him, had
undertaken the job.
EXEMPTION FROM EXECUTION OR ATTACHMENT (Art 1708,
NCC)
General Rule: Wages are not subject to execution or
attachment.
- The rule applies even when the wages are still in the
possession of the employer.
- Salaries due to government employees cannot be
garnished before they are paid to the employees
concerned because (a) the incentive for work would be
lost; (b) generally, the state cannot be sued; and (c)
technically, before disbursements, the money still
belongs to the government.
11
Exception: Debts incurred for support such as food, shelter,
clothing, medical attendance of the laborer may be subject
for execution or attachment.
PROHIBITION AGAINST SEIZURE OR RETENTION
The employer shall neither seize nor retain any tool or other
articles belonging to the laborer. (Art 1709, NCC)
PROHIBITION AGAINST WAGE DEDUCTION
General Rule: No employer shall make any deduction from
the wages of his employees. (Art. 113, LC)
- Deduction to ensure employment. It is unlawful to
make any wage deductions as consideration of a
promise of employment or retention in employment.
(Art. 117, LC)
- Deductions as retaliatory measures is not allowed.
(Art. 118, LC)
Exceptions: Allowable deductions (Art. 113, LC)
1. Employee is insured, with his consent, by the
employer: the deduction is to recompense the
employer for the amount he paid for his employee’s
insurance
2. Union Dues: where the right of the worker of his union
to check off has been recognized by the employer or
authorized in writing by the individual worker
concerned
3. Where employer is authorized by law or regulations
a. Example: Union Service Fee: deductions for
union service fee are authorized by law and do
not require individual check-off authorizations
4. Other Allowable Deductions (cases & other laws)
a. Deductions for value of meals and other
facilities
b. Withholding of wages because employee is
indebted to the employer where such
indebtedness is due and demandable (Art. 1706,
NCC)
c. Debts incurred for support such as food, shelter,
clothing, medical attendance of the laborer (Art.
1708, NCC)
d. Withholding Tax
e. Deductions for premiums (SSS, PhilHealth, ECC
and Pag-Ibig)
f. Written Authorization of the employee for
payment to a third person
g. Reduced pay due to reduced workdays
consistent with the no work, no pay principle:
provided that work reduction is justified and
done in good faith
h. Loss/Damages under Article 114, LC
i. Deductions for Agency Fees
j. Deductions pursuant to a court judgment
k. Salary deductions of a member of a cooperative
Cases of Illegal Deductions:
5. Nonpayment of stock subscriptions cannot be offset
against a money claim of an employee against the
employer because the set-off was without legal basis.
(Apodaca v. NLRC)
6. Deductions from the salaries of taxi drivers due to
deficiencies in boundaries, costs of radio system,
aircon and gas, is illegal because the employer failed to
adduce evidence of any written authorization from
their drivers. (Mejares v. Hyatt Taxi Services)
7. Even though the guards agreed, the practice of a
security agency of deducting 25% from the salary of its
security guards as the agency’s share in procuring job
replacement for the guards is contrary to Art. 117, LC
and public policy. (Commando Security v. NLRC)
8. Business reverses were not proved and, instead it was
shown that the work reduction/rotation was
implemented soon after the affected employees filed
complaints for labor standard violations. (La Rosa v.
Ambassador Hotel)
9. Work reduction was applied only to union officers.
Reduction of workdays was done in bad faith as a
means to retaliate against employees who unionized.
(Unicorn Safety Glass, Inc. v. Basarte)
PROHIBITION AGAINST DEPOSIT FOR LOSS AND
DAMAGES (ART. 114-115, LC)
General Rule: No employer shall require workers to make a
deposits from which deductions may be made for
reimbursement of loss of tools, materials, or equipment
supplied by the employer.
- Example: A kasambahay or domestic worker is not
required to make deposits under Sec. 14, RA 10361.
Exceptions:
1. Where the practice of making deductions or requiring
deposits is recognized
2. Where such practice is necessary or desirable as
determined by the Secretary of Labor
3. Private Security Agencies (DOLE Advisory No. 11, s.
2014)
Requisites for Valid Deduction (Implementing Rules)
Payments for loss or damaged equipment is deductible from
the employee’s salary if the following conditions concur:
1. the employee is clearly shown to be responsible for the
loss or damage;
2. the employee is given ample opportunity to show
cause why deduction should not be made;
3. the amount of the deduction is fair and reasonable and
shall not exceed the actual loss or damage; and
4. the deduction from the employee’s wage does not
exceed 20% of the employee’s wages in a week.
Cases of Illegal Deposits:
1. Requirement of deposit to cover shortage in boundary
is violative of Article 114 because it is not a practice in
the taxi industry. Deposits should be refunded to the
drivers. (Five J Taxi v. NLRC)
12
 a. But payment for car washing should NOT be any proceeding, or gave a testimony against employer. (Art.
refunded because it is a practice in the taxi 118, LC)
industry, and dictated by fair play. This also applies to employees who gave implicit or unspoken
2. Posting of cash bonds was not proven as a recognized testimony such as when the employee refuses to make a false
practice in the jewelry manufacturing business. statement to the labor inspector.
Moreover, the employer failed to establish that the
making of deductions from the salaries was authorized Art. 259(f) v. Art. 118
by law or regulation issued by the Secretary of Labor. Art. 259(f) Art. 118
(Nina Jewelry v. Montecillo) Similarity Prohibit retaliation or reprisal against the
3. Deduction of variances from the employee’s salary employee
(due to negative sale variances) is not a practice in the Subject of Anything under the Wages
retail industry. The employer failed to establish that testimony LC
the employee was responsible for the negative Unfair Constitutes ULP, Employer’s
variance it had in its sales and that said employee was Labor and a reason for retaliatory act is
given the opportunity to show cause that the Practice work stoppage or unlawful but does
deduction from her last salary should not be made. (ULP) strike by the not constitute unfair
(Bluer than Blue v. Glyza Esteban) employees labor practice.
Refund of Cash Deposit
PROHIBITION AGAINST FALSE REPORTING
The full amount of cash deposit deducted shall be returned to
It shall be unlawful for any person to make any statement,
the employee within 10 days from his/her separation from
report, or record filed or kept pursuant to the provisions of
the service.
this Code knowing such statement, report or record to be
PROHIBITIONS AGAINST WITHHOLDING OF WAGES false in any material respect. (Art. 119, LC)
AND KICKBACKS (ART. 116, LC)
WAGE DISTORTION
General Rule: No person, directly or indirectly, may withhold
any amount from the wages of a worker or induce him to give There is wage distortion if the increase in prescribed wage
up any part of his wages by force, stealth, intimidation, threat rates results in:
or by any other means whatsoever without the worker’s a. elimination of the quantitative differences in the rates
consent. of wages or salaries
- Withholding of wages may amount to Constructive b. severe contraction of intentional quantitative
Dismissal differences in wage or salary rates between and among
- An employer cannot simply refuse to pay the wages or employee groups
benefits of its employee because he has either  Intentional quantitative differences
defaulted in paying a loan guaranteed by his employer; i. Skills
or violated their memorandum of agreement; or failed ii. Length of service
to render an accounting of his employer’s property. iii. Other logical bases of differentiation
Exceptions: Wage distortion presupposes an increase in the
1. Withholding of release of Last Payments to employees compensation of lower ranks in an office hierarchy without a
for failure to comply with clearance requirements is corresponding raise for higher tiered employees in the same
valid. (Milan v. NLRC) region of the country.
Illegal Withholding of Wages: It results in the elimination or the severe diminution of the
distinction between the two groups.
1. Employer has no legal authority to withhold
employee’s 13th month pay and other benefits. NOT DISTORTION
(Special Steel Products, Inc. v. Villareal)
A disparity in wages between employees holding similar
2. Withholding of wages for absences not allowed.
positions BUT IN DIFFERENT REGIONS does not constitute
Withholding of wages for even one payroll period
wage distortion (Prubankers Association v. Prudential Bank
amounted to constructive dismissal, despite the
and Trust Company)
alleged resignation letter. (SHS Perforated Materials v.
Diaz) HOW RECTIFIED OR CORRECTED
PROHIBITION AGAINST RETALIATORY MEASURES Wage distortion is not a proper ground for strike
It shall be unlawful for an employer to refuse to pay or Wage distortion can only be corrected if prescribed by law or
reduce the wages and benefits, discharge or discriminate wage order NOT IF VOLUNTARILY INCREASED BY THE
against any employee who has filed a complaint, instituted EMPLOYER (Bankard Employees Union v. NLRC)

Georfo, Recca 13
ORGANIZED ESTABLISHMENT
- Employer and the union should negotiate to correct
the distortion
- Should be resolved through grievance procedure
- If remains unsettled, through voluntary arbitration
UNORGANIZED ESTABLISHMENT
- Should be settled through NCMB
- If it remains unresolved, should be referred to any of
the Labor Arbiters
Distinguish the visitorial and enforcement power under
Article 128 of the Labor Code and that under Article 129
(power to adjudicate money claims) on the basis of the
following: a) the kind and nature of the power granted; b) the
amount included in the scope of such power; and c) where
and when should appeal be filed in case of adverse findings.

a. Art. 128 is about inspection of establishments and issuance

of orders to compel compliance with different wage orders,
labor standards and other labors laws. Meanwhile Art. 129
pertains to a summary proceeding for the adjudication of
claims for wages and benefits by employees, thus, involves
only labor standard laws.

b. Art. 128 does not prescribes any maximum monetary

amount for its enforcement. On the other hand, Art. 129 has
a jurisdictional limit of not exceeding 5,000 pesos per claim.

c. An order issued under Art. 128 is appealable to the

Secretary of Labor within 10 calendar days from receipt of the
records of the case. Meanwhile, an order issued under Art.
129 is appealable within 5 calendar days from receipt of the
decision of the regional director.

14
 LEAVE PRIVILEGES
STATUTORY LEAVE BENEFITS
1. Service incentive leave under the Labor Code
2. Maternity leave under the SSS Act of 1997
3. Paternity leave under the Paternity Leave Act
4. Parental leave for Solo Parents under the Solo Parents
Welfare Act
5. Special Leave Benefits for Women Workers under the
Magna Carta for Women
6. Leave with pay under the Anti-Violence against Women
& their Children’s Act
SERVICE INCENTIVE LEAVE
RIGHT TO SERVICE INCENTIVE LEAVE
- Every employee who has rendered at least 1 year of
service shall be entitled to a yearly service incentive
leave of 5 days with pay. (Art. 95(a), LC)
- 1 year of service: service for not less than 12 months,
whether continuous or broken reckoned from the date
the employee started working
o including authorized absences and paid regular
holidays unless the working days in the
establishment as a matter of practice or policy,
or that provided in the employment contract is
less than 12 months, in which case said period
shall be considered as one year (Sec. 3, Rule 5,
Implementing Rules)
COVERAGE
1. All employees
2. A part-time worker is entitled to service incentive leave
whether the service within 12 months is continuous or
broken or where the working days in the employment
contract as a matter of practice or policy is less than 12
months. The availment and commutation of the same
can be proportionate to the daily work rendered and
the regular daily salary, respectively.
3. Teachers of private schools on contract basis are
entitled to service incentive leave.
EXCLUSIONS FROM COVERAGE
1. Those who are already enjoying the benefit
2. Those enjoying vacation leave with pay at least 5 days
3. Those employed in establishments regularly employing
less than 10 employees
4. Those employed in establishments exempted from
granting SIL by the Secretary of Labor after considering
the viability or financial condition of such
establishment. (Art. 95(b), LC)
5. Government employees: Those in the government and
any of its political subdivisions, including government-
owned and controlled corporations
Georfo, Recca
6. Domestic helpers and persons in the personal service
of another
7. Managerial employees
8. Members of managerial staff
9. Members of family of employer
10. Field personnel and other employees whose
performance is unsupervised by the employer
11. Those who are engaged on task or contract basis,
purely commission basis, or those who are paid a fixed
amount for performing work irrespective of the time
consumed in the performance thereof. (Sec. 1, Rule 5,
Implementing Rules)
12. While piece-rate employees are entitled to minimum
wage, cost of living allowance and 13th-month pay,
they are not entitled to service incentive leave.
CURIOUS ANIMAL DOCTRINE
The service incentive leave shall be commutable to its money
equivalent if not used or exhausted at the end of the year.
(Sec. 5, Rule 5, Implementing Rules)
Availment /commutation of SIL may be on a pro rata basis
AUTO BUS TRANSPORT SYSTEM VS. BAUTISTA MAY 16, 2005
LOURDES C. RODRIGUEZ VS. PARN N RIDE MARCH 20, 2017
OTHER PRINCIPLES
- Basis is SALARY RATE at the date of commutation
- It is the burden of proof of the employer to prove that
he is excluded from coverage of the service incentive
leave.
MATERNITY LEAVE
MATERNITY LEAVE
Period of time which may be availed of by a woman
employee (married/unmarried) to undergo/recuperate from
childbirth, miscarriage/complete abortion
GOVERNING LAW
105-Day Expanded Maternity Law or R.A. No. 11210
COVERAGE
1. Female workers in the Public Sector
2. Female workers in the Private Sector
3. Female workers in the Informal Economy
4. Female members who are voluntary contributors to
the Social Security System (SSS)
5. Female national athletes in the private sector.
CONDITIONS FOR ENTITLEMENT
1. Female member should be employed at the time of
delivery
2. Given the required notification to the SSS thru her
employer
15
 3. Employer must have paid at least 3 months of
maternity contribution within the twelve month period
immediately before the semester of contingency
WHAT ARE THE EXPANDED MATERNITY LEAVE
BENEFITS?
FOR CHILDBIRTH
1. With pay: (105 plus 15 days) All covered females
regardless of civil status, employment status, and the
legitimacy of her child, shall be granted 105 days
maternity leave with full pay, and an additional 15 days
with full pay in case the female worker qualifies as a
solo parent under R.A. No. 8972, or the "Solo Parents'
Welfare Act of 2000.
2. Without pay: (additional 30 days) In cases of live
childbirth, an additional maternity leave of 30 days
without pay can be availed of, at the option of the
female worker, provided that the employer shall be
given due notice. Due notice to the employer must be
in writing and must be given at least 45 days before
the end of the female worker's maternity leave.
However, no prior notice shall be necessary in the
event of a medical emergency but subsequent notice
shall be given to the employer.
The above period of extended maternity leave without
pay shall not be considered as gap in the service.
FOR MISCARRIAGE
In cases of miscarriage or emergency termination of
pregnancy, 60 days maternity leave with full pay shall be
granted.
CONTINUOUS PERIOD
Enjoyment of maternity leave cannot be deferred but should
be availed of either before or after the actual period of
delivery in a continuous and uninterrupted manner…
In all of the above instances, the maternity leave can be
credited as combinations of prenatal and postnatal leave as
long as it does not exceed 105 days or 60 days, as the case
may be. In no case shall postnatal care be less than 60 days.
REGARDLESS OF FREQUENCY OR CIVIL STATUS
Maternity leave shall be granted to a qualified female worker
in every instance of pregnancy, miscarriage or emergency
termination of pregnancy regardless of frequency or
legitimacy of the child.
MATERNITY LEAVE FOR FEMALE WORKERS IN THE
PRIVATE SECTOR
ELIGIBILITY
1. She must have at least 3 monthly contributions in the
twelve-month period immediately preceding the
semester of childbirth, miscarriage, or emergency
termination of pregnancy.
2. She shall have notified her employer of her pregnancy
and the possible date of her childbirth, which notice
shall be transmitted to the SSS in accordance with the
rules and regulations it may provide.
NOTICE REQUIREMENT
The notification process for SSS-covered female workers
and/or members and employers shall be governed by the
following rules:
1. The female members, upon confirmation of pregnancy,
shall immediately inform her employer of such fact and
the expected date of childbirth;
2. The employer shall, in turn, notify the SSS through the
prescribed manner;
3. the above rules notwithstanding, failure of the
pregnant female worker to notify the employer shall
not bar her from receiving the maternity benefits,
subject to the guidelines to be prescribed by the SSS;
and
4. Self-employed female members, including those in the
informal economy, OFWs and voluntary SSS members
may give notice directly to the SSS.
AMOUNT OF BENEFIT
Covered female workers availing of the maternity leave
benefits must receive their full pay. Full payment of the
maternity leave benefit shall be advanced by the employer
within 30 days from the filing of the maternity leave
application. (In the case of self-employed female members,
including those in the informal economy, OFWs and voluntary
SSS members, the SSS shall directly pay the maternity
benefit.)
REIMBURSEMENT
The SSS shall immediately reimburse to the employer the
maternity benefits advanced to the employed female
member, only to the extent of 100% of her average daily
salary credit for 105 days, 120 days or 60 days, as the case
may be, upon receipt of satisfactory and legal proof of such
payment.
SALARY DIFFERENTIAL, EXCEPTIONS
Employers from the private sector shall pay for the difference
between the full salary and the actual cash benefits received
from the SSS. Female workers employed by exempt
establishments and enterprises, which satisfy the
requirements and criteria listed below, shall not be entitled
to the salary differential. The said female workers shall be
entitled to receive only their SSS maternity benefits.
Upon submission of proofs and other necessary documents,
the following establishments in the private sector may be
exempted from paying the salary differential herein
prescribed, provided the criteria below are satisfied:
1. Those operating distressed establishments;
16
 2. Those retail/ service establishments and other
enterprises employing not more than ten (10) workers;
3. Those considered as micro-business enterprises and
engaged in the production, processing, or
manufacturing of products or commodities including
agro-processing, trading, and services, whose total
assets are not more than P3,000,000.00 in accordance
with the Barangay Micro Business Enterprises (BNBE's)
Act of 2002; and
4. Those who are already providing similar or more than
the benefits herein provided under an existing
Collective Bargaining Agreement, company practice or
policy.
BAR TO RECOVERY OF SICKNESS BENEFITS [MAY
SICKNESS BENEFIT BE CLAIMED SIMULTANEOUSLY
WITH MATERNITY BENEFIT?] NO
The payment of daily SSS maternity benefits shall be a bar to
recovery of sickness benefits provided under Republic Act No.
11199 [SSS Law, 2018], for the same period for which daily
maternity benefits have been received.
CONSECUTIVE PREGNANCIES AND MULTIPLE
CHILDBIRTHS
The payment of the SSS maternity benefits in cases of
consecutive pregnancies resulting in overlapping maternity
leaves and in cases of multiple childbirths shall be governed
by the following rules:
1. In case of the overlapping of two (2) maternity benefit
claims, the female member shall be granted maternity
benefits for the two contingencies in a consecutive
manner. However, the amount of benefit
corresponding to the period where there is an overlap
shall be deducted from the current maternity benefit
claim; and
2. The female member shall be paid only one maternity
benefit, regardless of the number of offspring, per
childbirth/ delivery.
LIABILITY OF THE EMPLOYER
The employer shall pay to the SSS damages equivalent to the
benefits which said female member would otherwise have
been entitled to in any of the following instances:
1. Failure of employer to remit to the SSS the required
contributions for the female worker; or
2. Failure of the employer to transmit to SSS the female
worker's notification on the fact of pregnancy and
probable date of birth.
DISPUTE RESOLUTION [THE ABOVE FAULTS ARE
PUNISHABLE UNDER THE SSS LAW. WHAT ARE THE
PENALTIES?]
Any dispute, controversy, or claim as regards the grant of SSS
maternity leave benefit under this Rules shall be filed before
the Social Security Commission (SSC). The filing,
determination, and settlement of disputes shall be governed
Georfo, Recca
by the Rules and Regulations of the SSC, which provide that
all petitions shall be filed with the Office of the Executive
Clerk of the Commission or his/her Deputy, or at any Regional
Commission Legal Department. Any dispute, controversy, or
claim arising out of or relating to the payment of salary
differential shall be filed before the DOLE
Field/Provincial/Regional Office having jurisdiction over the
workplace and shall be subject to existing enforcement
mechanisms of the DOLE.
ALLOCATION OF MATERNITY LEAVE CREDITS
ALLOCATION TO THE CHILD'S FATHER OR ALTERNATE
CAREGIVER
A female worker entitled to maternity leave benefits may, at
her option, allocate up to seven (7) days of said benefits to
the child's father, whether or not the same is married to the
female worker. The allocated benefit granted to the child's
father under this law is over and above that which is provided
under Republic Act No. 8187, or the "Paternity Leave Act of
1996". [Note that lawful marriage is not a requisite for
"allocated leave."]
In case of death, absence, or incapacity of the child's father,
the female worker may allocate to an alternate caregiver who
may be any of the following, upon the election of the mother
taking into account the best interests of the child:
1. A relative within the fourth degree of consanguinity; or
2. The current partner, regardless of sexual orientation or
gender identity, of the female worker sharing the same
household.
The option to allocate maternity leave credits shall not be
applicable in case the female worker suffers miscarriage or
emergency termination of pregnancy.
ALLOCATION FOR THE SSS-COVERED FEMALE WORKERS
In case the female worker avails of the option to allocate, the
SSS shall pay her the amount of the maternity benefit
corresponding to the period not allocated.
As applicable, the father or, in his death, absence, or
incapacity, the alternate caregiver shall be granted by his
employer a leave with pay equivalent to a period from one (1)
to seven (7) days, which may be enjoyed either in a
continuous or in an intermittent manner not later than the
period of the maternity leave availed of.
The female worker shall notify her employer of her option to
allocate with her application for maternity leave. The father
or alternate caregiver, as the case may be, shall notify the
employer concerned of his or her availment of the allocated
leave and the inclusive dates therefor.
This written notice to the employers shall be required even if
the child's father or the alternate caregiver is employed in the
public sector.
ALLOCATION OF MATERNITY LEAVE CREDITS FOR FEMALE
WORKERS IN PUBLIC SECTOR
17
In case the female worker avails of the option to allocate, she
shall submit a written notice to the head of agency or the
head of agency's authorized representative, with her
application for maternity leave.
The allocated maternity leave may be enjoyed by the child's
father or the alternate caregiver either in a continuous or in
an intermittent manner not later than the period of the
maternity leave availed of.
In case full pay has been given to the female worker, the
child's father or the alternate caregiver, as the case may be,
shall only be excused from work (leave without pay). The
leave without pay shall not be considered as a gap in the
service.
DEATH OR PERMANENT INCAPACITY OF THE FEMALE
WORKER
In the event the beneficiary female worker dies or becomes
permanently incapacitated, the balance of her maternity
leave benefits, if any, shall accrue to the child's father or to a
qualified alternate caregiver as provided in the preceding
sections subject to the following conditions:
1. That the maternity leave benefits have not yet been
commuted to cash, if applicable; and
2. That a certified true copy of the death certificate or
medical certificate or abstract is provided to the
employers of both the female worker and the child's
father or alternate caregiver.
In case the maternity leave benefits of the deceased or
permanently incapacitated female worker have already been
paid to the latter in full, the child's father or alternate
caregiver shall be entitled to enjoy the remaining unexpired
leave credits of the female worker, if there be any, without
pay: Provided, That such leave without pay shall not be
considered as a gap in the service of the child's father or
alternate caregiver, in both the public and private sector.
AFTER EMPLOYMENT [IS MATERNITY BENEFIT
CLAIMABLE AFTER SEPARATION FROM
EMPLOYMENT? IS THERE A TIME LIMIT TO CLAIM IT?]
Maternity leave with full pay shall be granted even if the
childbirth, miscarriage, or emergency termination of
pregnancy occurs not more than fifteen (15) calendar days
after the termination of an employee's service, as her right
thereto has already accrued. Such period is not applicable
when the employment of the pregnant woman worker has
been terminated without just cause, in which case the
employer will pay her the full amount equivalent to her salary
for one hundred five (105) days for childbirth and sixty (60)
days for miscarriage or emergency termination of pregnancy
based on her full pay, in addition to the other applicable daily
cash maternity benefits that she should have received had
her employment not been illegally terminated.
MATERNITY LEAVE OF A FEMALE WORKER WITH
PENDING ADMINISTRATIVE CASE
The maternity leave benefits granted under R.A. No. 11210
and this Rules shall be enjoyed by a female worker in the
public sector and in the private sector even if she has a
pending administrative case.
PATERNITY LEAVE
GOVERNING LAW
Paternity Leave Act of 1996 (RA 8187)
PATERNITY LEAVE
Every married male employee in the private and public
sectors shall be entitled to a paternity leave of 7 days with full
pay (basic salary) for the first 4 deliveries of the legitimate
spouse with whom he is cohabiting (Sec. 2)
- Covers married male employee ALLOWING HIM NOT
TO REPORT FOR WORK for 7 Calendar days (but
continues to earn compensation) on condition that his
spouse delivered a child or suffered a miscarriage
- full pay: consists of basic salary, not be less than the
mandated minimum wage
- Spouse = lawful wife
CONDITIONS FOR ENTITLEMENT (SEC. 2, RA 8187)
1. he is employee in the private/public sector at the time
of delivery of his child
2. covers only the first 4 deliveries of the legitimate
spouse with whom he is cohabiting
3. male employee applying for paternity leave shall notify
his employer of the pregnancy of his legitimate spouse
and the expected date of such delivery
Q. Jonathan had been an employee of Tank Transport
Company for the last 7 years. His wife of six (6) years died last
year. They had four (4) children. He availed of paternity leave
for the deliveries of his four children with his deceased wife.
He then fell in love with Garlyn, his co-employee, and they
got married. In May this year, Jonathan's new wife is
expected to give birth to her first child. Jonathan accordingly
filed his application for paternity leave, conformably with the
provisions of the Paternity Leave Law which took effect in
1996. The HRD manager of the transport firm denied his
application, on the ground that Jonathan had already used up
his entitlement under the law. Jonathan argued that he has a
new wife who will be giving birth for the first time, therefore,
his entitlement to paternity leave benefits would begin to run
anew. Who is correct, the HRD or Jonathan?
A. Jonathan. The Paternity Leave Law provides every married
male employee is entitled to a 7-day paternity leave with full
pay for the first four deliveries of the legitimate spouse with
whom he is cohabiting. Legitimate spouse means lawful wife.
In the case at bar, the death of Jonathan’s first wife means
that Jonathan can validly contract another marriage. His
marriage with Garlyn is lawful and the latter is considered as
the legitimate spouse. Thus, the birth of the Jonathan’s first
child with Garlyn is covered under the provision above
because Garlyn is now the legitimate or lawful spouse with
whom Jonathan is cohabiting with.
18
Moreover, the Labor Code also provides that doubtful b. Other spouse is detained etc.
interpretation of labor laws must be construed in favor of c. Physical/mental incapacity of other spouse
labor. Thus, confusion as to whether the paternity leave d. Legal separation/de facto separation
benefit should run anew in case of a new wife, the law should e. Due to declaration of nullity of
be interpreted in favor of the male employee. marriage/annulment of marriage
f. Abandonment of spouse for at least 1 year
CONDITIONS FOR ENTITLEMENT FOR THE PRIVATE g. Unmarried mother/father who preferred to
SECTOR (IMPLEMENTING RULES OF RA 8187) keep and rear her/his child/children
1. he is an employee at the time of delivery of his child
CONDITIONS FOR ENTITLEMENT
2. he is cohabiting with his spouse at the time she gives
birth or suffers a miscarriage 1. Rendered at least 1 year of service
3. he has applied for paternity leave 2. Notified his/her employer of the availment
a. apply for paternity leave with his employer 3. Presented a Solo Parent Identification Card to his/her
within a reasonable period of time from the Employer
expected date of delivery by the pregnant
spouse, or within such period as may be OTHER RULES
provided by company rules and regulations or - Not convertible to cash
by collective bargaining agreement - Crediting of existing leave
b. prior application for leave shall not be required
in case of miscarriage. SPECIAL LEAVE / SURGICAL LEAVE
4. his wife has given birth or suffered a miscarriage
GOVERNING LAW
LIABILITY OF EMPLOYER
Magna Carta of Women (RA 9710) and its implementing rules
SECTION 5. Any person, corporation, trust, firm, partnership,
association or entity found violating this Act or the rules and COVERAGE
regulations promulgated thereunder shall be punished by a any female employee from the private or public sector who
fine not exceeding P25,000 or imprisonment of not less than underwent surgery caused by gynecological disorders
30 days nor more than 6 months.
If the violation is committed by a corporation, trust or firm, CONDITIONS FOR ENTITLEMENT (SEC. 18; DOLE DO
partnership, association or any other entity, the penalty of 112-11)
imprisonment shall be imposed on the entity's responsible 1. Continuous aggregate employment service
officers, including, but not limited to, the president, vice- 2. Such employment service must be at least 6 months
president, chief executive officer,general manager, managing for the last 12 months prior surgery
director or partner directly responsible therefor. 3. Woman employee was under surgery caused by
gynecological disorders.
NON-COMMUTATION OF BENEFITS 4. She applied for special leave with her employer within
In the event that paternity leave benefit is not availed of, said a reasonable period of time from the expected date of
leave shall not be convertible to cash. surgery, or within such period as may be provided by
company rules and regulations or by collective
PARENTAL LEAVE FOR SOLO PARENTS bargaining agreement.
a. Exception: Prior application for leave shall not
PARENTAL LEAVE FOR SOLO PARENTS be necessary in cases requiring emergency
- Leave benefit granted to (male or female) solo parents surgical procedure, provided that the employer
(to enable him/her to perform parental duties and shall be notified verbally or in written form
responsibilities where physical presence is required within a reasonable period of time and provided
- Shall not be more than 7 working days EVERY YEAR further that after the surgery or appropriate
- Solo Parent must have rendered at least 1 year recuperating period, the female employee shall
- Separate and distinct from any other leave benefits immediately file her application using the
provided by existing laws or agreements prescribed form.
Notes:
WHO ARE SOLO PARENTS?
- Employment service includes absences with pay such
1. Woman who gives birth as a result of rape/other as use of other mandated leaves, granted leaves and
crimes against chastity (final conviction not required) maternity leave.
2. Parent left solo/alone with responsibility of - For purposes of determining the period of leave with
parenthood pay that will be allowed to a woman employee, the
a. Due to death

Georfo, Recca 19
 certification of a competent physician as to the
required period of recuperation shall be controlling.
WHAT IS SURGICAL LEAVE? (SEC. 18)
- the 2 months special leave benefit with full pay base
on the gross monthly compensation following surgery
caused by gynecological disorders
- separate and distinct from Maternity Leave
- Two months means 60 calendar days.
WHAT ARE GYNECOLOGICAL DISORDERS?
1. disorders that would require surgical procedures such
as, but not limited to, dilatation and curettage
2. those involving female reproductive organs as certified
by a competent physician
3. hysterectomy, ovariectomy, and mastectomy
OTHER RULES (IMPLEMENTING RULES)
- If extended leave is necessary, female employee may
use her earned leave credits
- Special Leave is not cumulative and non-convertible to
cash
(DOLE Department Order No. 112-A, Series of 2012)
Section 6. Frequency of Availment. A woman employee can
avail of the special leave benefit for every instance of surgery
due to gynecological disorder for a maximum total period of 2
months per year.
Section 7. Special leave benefit vis-à-vis SSS sickness benefit.
The special leave benefit is different from the SSS sickness
benefit. The former is granted by the employer in accordance
with RA 9710, as implemented under this Rules.
It is granted to a woman employee who has undergone
surgery due to gynecological disorder. The SSS sickness
benefit, on the other hand, is administered and given by the
SSS in accordance with the SSS law or RA 1161 as amended by
RA 8282.
Section 8. Special leave benefit vis-à-vis existing statutory
leave. The special leave benefit cannot be taken from existing
statutory leaves (i.e. 5-day Service Incentive Leave. Leave for
victims of VAWC, Parental Leave for Solo Parents). The grant
of the special leave benefit under the law is in recognition of
the fact that patients with gynecological disorder needing
surgery require a longer period for recovery. The benefit is
considered an addition to the leave benefits granted under
existing laws.
If the special leave benefit has already been exhausted, the
company leave and other mandated leave benefits may be
availed of by the woman employee.
Section 9. Special leave benefit vis-à-vis maternity leave
benefit. Where the woman employee had undergone surgery
due to gynecological disorder during her maternity leave, she
is entitled only to the difference between SLB and maternity
leave benefit.
Section 10. Crediting of existing or similar benefits. If there
are existing or similar benefits under a company policy,
practice or CBA providing similar or equal benefits to what is
mandated by law, the same shall be considered as
compliance, unless the company policy, practice or CBA
provides otherwise.
In the event the company policy, practice or CBA provides
lesser benefits, the company shall grant the difference.
More liberal existing or similar benefits cannot be withdrawn
or reduced by reason of the mandate of RA 9710.
The “similar or equal benefits” refers to leave benefits which
are of the same nature and purpose as that of the SLB.
Section 10. Mode of payment. The special leave benefit is a
leave privilege. The woman employee shall not report for
work for the duration of the leave but she will still receive her
salary covering said period. The employer, in its discretion,
may allow said employee to receive her pay for the period
covered by the approved leave before or during the surgery.
The computation of her “pay” shall be based on her prevailing
salary at the time of the surgery.
BATTERED WOMAN LEAVE
GOVERNING LAW
Anti-Violence against Women and Their Children Act of 2004
(RA 9262) and its Implementing Rules
COVERAGE
Victims of violence, which may be physical, sexual or
psychological may apply for a protection order, and paid
leave of absence (battered woman leave [BWL]) up to 10 days
in addition to other paid leaves under the Labor Code, other
laws, and company policies. (Sec. 43)
CONDITIONS FOR ENTITLEMENT (SEC. 42,
IMPLEMENTING RULES)
FOR PRIVATE SECTOR EMPLOYEES
1. She is employed
2. Application of any protection order
3. Certification that application for protection order has
been filed and is pending, from any of the following:
a. Barangay Captain
b. Prosecutor
c. Clerk of Court
FOR GOVERNMENT EMPLOYEES
1. She is employed
2. Application of any protection order
3. Certification that application for protection order has
been filed and is pending, from any of the following:
a. Barangay Captain
b. Prosecutor
c. Clerk of Court
4. File an application for leave citing as basis R.A. 9262
OTHER RULES
- The availment of the ten day-leave shall be at the
option of the woman employee, which shall cover the
20
 days that she has to attend to medical and legal
concerns.
- Leaves not availed of are noncumulative and not
convertible to cash.

JURISDICTION FOR ADMINISTRATIVE ENFORCEMENT

OF BWL
For private sector employees: Regional Director of the DOLE
under Article 129, LC
For government employees: Civil Service Commission

LIABILITY OF EMPLOYER WHO DENOES APPLICATION

FOR LEAVE
The employer/agency head who denies the application for
leave, and who shall prejudice the victim-survivor or any
person for assisting a co-employee who is a victim-survivor
under the Act shall be held liable for discrimination and
violation of R.A 9262.

Georfo, Recca 21
 SPECIAL GROUP OF EMPLOYEES
WOMEN
CONSTITUTIONAL PROTECTION OF WOMEN IN THE
WORKPLACE
Section 14, Article II. The State recognizes the role of women
in nation-building, and shall ensure the fundamental equality
before the law of women and men.
Section 14, Article XIII. 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.
- Men and women are equal before the law. If women’s
rights are violated it is against equal protection clause.
- Treaty against discrimination of women: CONVENTION
ON THE ELIMINATION OF ALL FORMS OF
DISCRIMINATION OF WOMEN (1979)
FACILITIES FOR WOMEN (ART. 130, LC)
The Secretary of Labor and Employment shall establish
standards that will ensure the safety and health of women
employees. In appropriate cases, he shall, by regulations,
require any employer to:
a) Provide seats proper for women and permit them to use
such seats when they are free from work and during
working hours, provided they can perform their duties in
this position without detriment to efficiency;
b)To establish separate toilet rooms and lavatories for men
and women and provide at least a dressing room for
women;
c) To establish a nursery in a workplace for the benefit of
the women employees therein; and
d)To determine appropriate minimum age and other
standards for retirement or termination in special
occupations such as those of flight attendants and the
like.
FAMILY PLANNING SERVICES (ART. 132, LC)
Family Planning Services; Incentives for Family Planning. —
(a) Establishments which are required by law to maintain a
clinic or infirmary shall provide free family planning services
to their employees which shall include, but not be limited to,
the application or use of contraceptive pills and intrauterine
devices.
(b) In coordination with other agencies of the government
engaged in the promotion of family planning, the Department
of Labor and Employment shall develop and prescribe
incentive bonus schemes to encourage family planning
among female workers in any establishment or enterprise.
- What type of employer would need to provide
family planning services in the workplace
○ Nightclubs, Karaoke, Sauna Bath Parlors,
etc.
PROHIBITED DISCRIMINATION (ART. 133, LC)
It shall be unlawful for any employer to discriminate against
any woman employee with respect to terms and conditions
of employment solely on account of her sex.
The following are acts of discrimination:
(a) Payment of a lesser compensation,
including wage, salary or other form of remuneration and
fringe benefits, to a female employee as against a male
employee, for work of equal value; and
(b) Favoring a male employee over a female
employee with respect to promotion, training opportunities,
study and scholarship grants solely on account of their sexes.
XXX
ARTICLE 259. [248], Labor Code
Unfair Labor Practices of Employers. — It shall be unlawful for
an employer to commit any of the following unfair labor
practices:
(e) To discriminate in regard to wages, hours of
work and other terms and conditions of employment in order
to encourage or discourage membership in any labor
organization. Nothing in this Code or in any other law shall
stop the parties from requiring membership in a recognized
collective bargaining agent as a condition for employment,
except those employees who are already members of
another union at the time of the signing of the collective
bargaining agreement. Employees of an appropriate
bargaining unit who are not members of the recognized
collective bargaining agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the
recognized collective bargaining agent, if such non-union
members accept the benefits under the collective bargaining
agreement: Provided, That the individual authorization
required under Article 242, paragraph (o) of this Code shall
not apply to the non-members of the recognized collective
bargaining agent
- A homosexual cannot claim the privileges under
Article 133 because the law is only applied for women. There
is no law in protection against discrimination of one’s gender
(gay, lesbian, male, female); only discrimination between
sexes (male & female)
- Can an employer dismiss an employee on account
of pregnancy? No, because pregnancy is a maternal function
of women.
CRIMINAL LIABILITY
ARTICLE 133. [135], Labor Code
XXX
Criminal liability for the willful commission of any unlawful
act as provided in this article or any violation of the rules and
regulations issued pursuant to Section 2 hereof shall be
22
penalized as provided in Articles 288 and 289 of this Code:
Provided, That the institution of any criminal action under
this provision shall not bar the aggrieved employee from filing
an entirely separate and distinct action for money claims,
which may include claims for damages and other affirmative
reliefs. The actions hereby authorized shall proceed
independently of each other.
PROHIBITED ACTS (ART. 135, LC)
It shall be unlawful for any employer:
(1) To deny any woman employee the benefits
provided for in this Chapter or to discharge any woman
employed by him for the purpose of preventing her from
enjoying any of the benefits provided under this Code;
(2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement due to her
pregnancy;
(3) To discharge or refuse the admission of such
woman upon returning to her work for fear that she may
again be pregnant.
WOMEN WORKING IN NIGHTCLUBS (ART. 136, LC)
Classification of Certain Women Workers. — Any woman who
is permitted or suffered to work, with or without
compensation, in any night club, cocktail lounge, massage
clinic, bar or similar establishments under the effective
control or supervision of the employer for a substantial
period of time as determined by the Secretary of Labor and
Employment, shall be considered as an employee of such
establishment for purposes of labor and social legislation.
- Illustration:
○ I AM A WOMAN AND YOU ARE AN
OWNER OF A BAR. MY COMPENSATION IS BASED ON
PURCHASE OF LADY’S DRINKS.
parents or guardian, and his employment does not in any way
interfere with his schooling.
(b) Any person between 15 and 18 years of age may be
employed for such number of hours and such periods of the
day as determined by the Secretary of Labor and Employment
in appropriate regulations.
(c) The foregoing provisions shall in no case allow the
employment of a person below 18 years of age in an
undertaking which is hazardous or deleterious in nature as
determined by the Secretary of Labor and Employment.
ART. 138. Prohibition against child discrimination. – No
employer shall discriminate against any person in respect to
terms and conditions of employment on account of his age.
KASAMBAHAY
Governing Law
R.A. 10361 (Domestic Worker’s Act) a.k.a. Kasambahay Law
Repeals LC provisions on Househelpers
Domestic Workers
• General househelp
• Yaya
• Cook
• Gardener
• Laundry Person

○ Q: Am I an employee? • A person who regularly performs domestic work in

one household
○ A: No, maybe an independent contractor.
Excluded
○ Q: So, what will make me an employee
then? • Service Providers

○ A: Your employer should have supervision • Family Drivers

and control over the means, manner, and method of your • Children under foster family arrangement A
work and as to the results thereof.
• person who performs work
IN THE CASE OF A MAN WORKING IN A BAR, THERE IS NO occasionally/sporadically NOT ON AN OCCUPATIONAL BASIS
PROTECTION UNDER THIS CLASSIFICATION BECAUSE THE
PROTECTION ONLY APPLIES TO WOMEN WORKING IN
NIGHTCLUBS. Written Employment Contract
• Requirement of Written Contract Employment
MINORS
• Contents
○ Duties and Responsibilities
ART. 137. Minimum employable age. –
○ Period of Employment
(a) No child below 15 years of age shall be employed, except
when he works directly under the sole responsibility of his ○ Compensation
○ Authorized Deduction
Georfo, Recca 23
 ○ Hours of Work
○ Rest Days/allowable leaves
○ Board, lodging, medical attention
○ Agreements on deployment expenses
○ Loan Agreement
○ Termination of Employment
• Standard Employment Contract
• Domestic Workers cannot acquire regularity of
employment under R.A. No. 10361
RIGHTS AND PRIVILEGES OF KASAMBAHAY
• Minimum Wage
• Other mandatory benefits (e.g. daily/weekly rest
periods, SIL, 13th month pay)
• Freedom from employer’s interference in the
disposal of wages
• Coverage under SSS, Philhealth and Pag-Ibig
• Standard of treatment
• Board, lodging, and medical attendance
• Right to Privacy
• Access to outside communication
• Access to education and Training
Terms and Conditions of Employment
a. Employable Age: Below 15 years prohibited
b. Normal Daily Hours of Work: 16 hours a day (note:
Daily rest period is 8 hours)
c. 13th Month Pay: At least 1 month of service; 1/12
of his/her total basic salary
d. Daily Rest Period: 8 hours
e. Weekly Rest Period: 24 hours a week
f. SIL: At least 1 year of service; 5 days SIL
g. Social Security Benefits: At least one month of
service
Other terms and conditions of employment
a. Standard of treatment: Shall be treated with
respect
b. Board, lodging, medical attendance
a. 3 adequate meals
b. Humane sleeping condition
c. Appropriate rest and medical condition
c. Guarantee of privacy: All forms of communication
and personal effects
d. Access to outside communication: During free
time, shall be granted outside communication
e. Prohibition against privileged communication
f. Opportunities for education
g. Membership in labor organization
h. Health and Safety
i. Prohibition on debt bondage
j. Assignment to non-household work
a. Employer shall not assign Kasambahay (in
a commercial, industrial, or agricultural enterprise) at a wage
lower than that provided for agricultural or non-agricultural
work
i. Apex Mining vs. NLRC:
Househelper in the staffhouses of an industrial company are
regular employees
ii. Remington Industrial Sales vs.
Castaneda: Regular employee, not merely cook for Mr. Tan
but to all employees of the company
iii. Barcenas vs. NLRC
Termination of Kasambahay
Pre-Termination of Employment
• May be mutually agreed by employer and
kasambahay
• May be terminated upon prior notice given 5 days
before the intended date of termination
Termination initiated by Kasambahay
• Verbal/emotional abuse
• Inhuman treatment
• Commission of a crime/offense against the
Kasambahay
• Violation of the terms/conditions of the
employment contract
• Any disease prejudicial to health of Kasambahay
• Other analogous causes
Termination initiated by employer
• Misconduct/ willfull disobedience
• Gross and habitual neglect or inefficiency
• Fraud/ willfull breach of the trust reposed by the
employer on the Kasambahay
• Commission of a crime or offense by the
Kasambahay against the person or immediate member of
family of employer
• Violation of Kasambahay of the terms and
conditions of employment contract
24
 • Any disease prejudicial to the health of
Kasambahay
• Other analogous causes
(Note: Employer must issue certificate of employment upon
request)
HOMEWORKERS
Industrial Homeworker
• Worker engaged in industrial homework
Industrial Homework
• System of production
• Work of an employer/ contractor is carried out by
a homeworker at his/her home
• Materials may or may not be furnished by the
employer or contractor
• Decentralized form of production
• Little supervision or regulations of methods of
work
Q: ARE DOMESTIC WORKERS THE SAME AS HOMEWORKERS?
A: NO. A HOUSEHELPER WORKS AT THE EMPLOYERS’S HOME
WHILE HOMEWORKERS WORK AT EMPLOYEE’S HOME;
HOMEWORKER IS ENGAGED IN INDUSTRIAL WORK, THE
MATERIALS ARE GIVEN BY THE EMPLOYER WHILE
HOUSEHELPER RENDERS SERVICES PERSONALLY IN THE
HOUSE OF THE EMPLOYER.
ARTICLE 151. Regulation of Industrial Homeworkers. — The
employment of industrial homeworkers and field personnel
shall be regulated by the government through the
appropriate regulations issued by the Secretary of Labor and
Employment to ensure the general welfare and protection of
homeworkers and field personnel and the industries
employing them.
ARTICLE 152. Regulations of Secretary of Labor. — The
regulations or orders to be issued pursuant to this Chapter
shall be designed to assure the minimum terms and
conditions of employment applicable to the industrial
homeworkers or field personnel involved.
ARTICLE 153. Distribution of Homework. — For purposes of
this Chapter, the "employer" of homeworkers includes any
person, natural or artificial who, for his account or benefit, or
on behalf of any person residing outside the country, directly
or indirectly, or through an employee, agent contractor, sub-
contractor or any other person:
(1) Delivers, or causes to be delivered, any goods,
articles or materials to be processed or fabricated in or about
a home and thereafter to be returned or to be disposed of or
distributed in accordance with his directions; or
(2) Sells any goods, articles or materials to be
processed or fabricated in or about a home and then rebuys
them after such processing or fabrication, either by himself or
through some other person.
Art. 98. Exemption of Minimum Wage. This Title shall not
apply to farm tenancy or leasehold, domestic service and
persons working in their respective
homes in needle work or in any cottage industry duly
registered in accordance with law.

Payment for Homework NIGHT WORKERS

• Immediately upon receipt of the finished goods or
articles, employer required to pay the
homeworker/contractor/subcontractor for work performed PERSONS WITH DISABILITIES
less the corresponding homeworker’s share of SSS, Philhealth
, ECC premium

Prohibitions on Certain Kinds of Homework

No homework on the following
1. Explosives, fireworks, and articles of like character
2. Drugs, poisons, and
3. Other Articles, requiring exposure to toxic
substances

LABOR CODE
CHAPTER IV
Employment of Homeworkers

Georfo, Recca 25
SEXUAL HARASSMENT IN THE WORK
ENVIRONMENT

26

SOCIAL WELFARE LEGISLATION
SSS LAW
COVERAGE AND EXCLUSIONS
COMPULSORY COVERAGE
10. all employees not over 60 years of age and their
employers
11. domestic helpers
a. not over 60 years old
b. their monthly income shall not be less than
P1,000.00 a month
12. Self-Employed - including but not limited to the
following:
a. All self-employed professionals;
b. Partners and single proprietors of businesses;
c. Actors and actresses, directors, scriptwriters and
news correspondents who do not fall within the
definition of the term "employee" in Section 8
(d) of this Act;
d. Professional athletes, coaches, trainers and
jockeys; and
e. Individual farmers and fishermen.
13. all sea-based and land-based OFWs as defined under
R.A. No. 8042 or the Migrant Workers and Overseas
Filipinos Act of 1995, provided they are not over 60
years of age
PRIVATE BENEFIT PLANS
- any benefit already earned by the employees under
private benefit plans existing at the time of the
approval of this Act shall not be discontinued, reduced
or otherwise impaired
- private plans which are existing and in force at the
time of compulsory coverage shall be integrated with
the plan of the SSS in such a way where the employer's
contribution to his private plan is more than that
required of him in this Act, he shall pay to the SSS only
the contribution required of him and he shall continue
his contribution to such private plan less his
contribution to the SSS so that the employer's total
contribution to his benefit plan and to the SSS shall be
the same as his contribution to his private benefit plan
before the compulsory coverage
- any changes, adjustments, modifications, eliminations
or improvements in the benefits to be available under
the remaining private plan, which may be necessary to
adopt by reason of the reduced contributions thereto
as a result of the integration, shall be subject to
agreements between the employers and employees
concerned
- the private benefit plan which the employer shall
continue for his employees shall remain under the
employer's management and control unless there is an
existing agreement to the contrary
Georfo, Recca
- nothing in this Act shall be construed as a limitation on
the right of employers and employees to agree on and
adopt benefits which are over and above those
Provided under this Act.
EFFECTIVE DATE OF SSS COVERAGE
- COMPULSORY COVERAGE OF THE EMPLOYER. -
Compulsory coverage of the employer shall take effect
on the first day of his/her operation. [Sec 10]
- COMPULSORY COVERAGE OF THE EMPLOYEE. -
Compulsory coverage of the employee shall take effect
on the first day of his/her employment. [Sec 10]
- COMPULSORY COVERAGE OF THE SELF-EMPLOYED. -
Compulsory coverage of the self-employed person
shall take effect upon his/her registration with the SSS.
Registration shall mean payment of first contribution.
[Sec 10, proviso]
- EFFECTIVE DATE OF COVERAGE OF THE OFWs. – The
effective date of coverage of the OFW shall be as
follows:
o Compulsory coverage of a sea-based OFW shall
take effect on the first day of his/her
employment;
o Compulsory coverage of a land-based OFW
covered under BLAs shall take effect based on
the provisions of the Agreement and its
implementing arrangement;
o Compulsory coverage of a land-based OFW not
covered under BLAs shall take effect on the
applicable month and year of the first
contribution payment; and
VOLUNTARY COVERAGE
8. A spouse of a member who devotes full time to
managing the household and family affairs, but does
not engage in other vocation or employment which is
subject to compulsory or mandatory coverage; [Sec 9,
(b)]
9. An OFW upon the termination of his/her employment
overseas; [Sec 9-B, (f)]
10. A covered employee who was separated from
employment who continues to pay his/her
contributions; and [Sec 11]
11. A self-employed member who realizes no income in
any given month who continues to pay his/her
contributions. [Sec 11-A]
Voluntary coverage of land-based overseas Filipinos shall take
effect on the applicable month and year of the first
contribution payment.
DEPENDENTS AND BENEFICIARIES
DEPENDENTS
1. The legal spouse entitled by law to receive support
from the member; [Sec 8, (e), (1)]
27
 2. The legitimate, legitimated or legally adopted and UNEMPLOYMENT INSURANCE OR INVOLUNTARY
illegitimate child who is: SEPARATION BENEFITS
a. Unmarried,
b. Not gainfully employed, and
c. Has not reached twenty-one (21) years of age, DISABILITY BENEFITS
or if over 21 years of age, he/she is congenitally
or while still a minor has been permanently
incapacitated and incapable of self-support, DEATH BENEFITS
physically or mentally. [Sec 8, (e), (2)]
FUNERAL BENEFIT
A child who has entered in a common-law
relationship and has not reached the age of
eighteen (18) is still a dependent. However,
EMPLOYEES’ COMPENSATION BENEFITS
upon reaching the age of 18, the child is no
longer qualified as a dependent.
3. The parent who is receiving regular support from the
member. [Sec 8, (e), (3)] GSIS LAW

BENEFICIARIES COVERAGE AND EXCLUSIONS

PRIMARY BENEFICIARIES
COVERAGE
1. The dependent spouse who has not re-married [Sec 8,
(k)], cohabited or entered in a “live-in” relationship
before or after the death of the member, and
EXCLUSIONS
2. The dependent legitimate, legitimated or legally
adopted and illegitimate children. Where there are
legitimate or illegitimate children, the former shall be
preferred. The dependent illegitimate children shall be DEPENDENTS AND BENEFICIARIES
entitled to fifty percent (50%) of the share of the
legitimate, legitimated or legally adopted children. In DEPENDENTS
the absence of the dependent legitimate, legitimated
or legally adopted children of the member, his/her
dependent illegitimate children shall be entitled to one BENEFICIARIES
hundred percent (100%) of the benefits. [Sec 8, (k)]
SECONDARY BENEFICIARIES – In the absence of primary
beneficiaries, the secondary beneficiaries are as follows: BENEFITS
1. The dependent parents of the deceased member; and COMPULSORY LIFE INSURANCE
2. In the absence of dependent parents, any other
person/s designated and reported by the member to
the SSS [Sec 8, (k)]. The person designated by the RETIREMENT BENEFIT
member shall be someone who has a right to claim for
support from the deceased member under the Family
Code of the Philippines, including dependent children
SEPARATION BENEFIT
who have reached the age of majority.

BENEFITS
UNEMPLOYMENT BENEFIT
SOCIAL SECURITY BENEFITS
SICKNESS BENEFIT
DISABILITY BENEFIT

MATERNITY LEAVE BENEFIT

SURVIVORSHIP BENEFIT

RETIREMENT BENEFIT
FUNERAL BENEFITS

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 LIMITED PORTABILITY LAW BENEFICIARIES
KLNKN
DEFINITIONS
Portability: transfer of funds for the account and benefit of a POEA-STANDARD EMPLOYMENT CONTRACT FOR
worker who transfers from one system (SSS or GSIS) to the SEAFARERS
other
MONETARY CLAIMS OF SEAFARERS FOR SICKNESS
Totalization: process of adding up the periods of creditable AND DISABILITY BENEFITS
services or contributions under each of the Systems, for
purposes of eligibility and computation of benefits
Contributions: contributions paid by the employee or worker EXISTENCE AND EXTENT OF SEAFARER’S DISABILITY,
to either the GSIS or the SSS on account of the worker’s HOW DETERMINED AND DECLARED
membership

LIMITED PORTABILITY SCHEME IN THE SOCIAL

MONETARY CLAIMS OF SEAFARERS FOR DEATH
SECURITY INSURANCE SYSTEMS BY TOTALIZING THE
BENEFITS
WORKERS’ CREDITABLE SERVICES OR
CONTRIBUTIONS IN EACH OF THE SYSTEMS
Sec. 3. Provisions of any general or special law or rules and
regulations to the contrary notwithstanding, a covered
worker who transfers employment from one sector to
another or is employed in both sectors shall have his credible
services or contributions in both Systems credited to his
service or contribution record in each of the Systems
[portability] and shall be totalized for purposes of old-age,
disability, survivorship and other benefits [totalization] in
case the covered member does not qualify for such benefits
in either or both Systems without totalization: Provided,
however, That overlapping periods of membership shall be
credited only once for purposes of totalization.
Sec. 4. All contributions paid by such member personally, and
those that were paid by his employers to both Systems shall
be considered in the processing of benefits which he can
claim from either or both Systems: Provided, however, That
the amount of benefits to be paid by one System shall be in
proportion to the number of contributions actually remitted
to that System.

DISABILITY AND DEATH BENEFITS

LABOR CODE

EMPLOYEES’ COMPENSATION PROGRAM

EMPLOYEES’ COMPENSATION BENEFITS

1. Medical Benefits

2. Rehabilitation Servies

3. Disability Benefits

4. Death Benefit

5. Funeral Benefit

Georfo, Recca 29
LABOR RELATIONS

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