Labor legislation - consists of statutes, regulations and
jurisprudence governing the relations between capital
and labor, by providing for certain employment
standards and a legal framework for negotiating,
adjusting and administering those standards and other
incidents of employment.
Labor standards law - sets out the least or basic terms,
conditions and benefits of employment that employers
must provide or comply with and to which employees
are entitle as a matter of legal right.
- the minimum requirements prescribed by existing
laws, rules and regulations relating to wages, hours of
work, cost-of-living allowance, and other monetary and
welfare benefits, including occupational, safety, and
health standards.
Labor relations law – defines the status, rights and
duties, and the institutional mechanisms that govern
the individual and collective interactions of employers,
employees or their representatives.
Note: Although the distinction between labor
standards and labor relations is useful for academic
purposes, they in reality overlap. Figuratively, one may
think of labor standards as the material or the
substance to be processed while labor relations is the
mechanism that processes the substance.
Labor Code – principal labor law of the country. But
even now, there are Labor Laws that are not found in
the Labor Code.
Social Legislation – the promotion of the welfare of all
the people, the adoption by the government of
measures calculated to insure economic stability of all
the component elements of society thru the
maintenance of proper economic and social equilibrium
in the interrelations of the members of the community,
constitutionally, thru the adoption of measures legally
justifiable, or extra-constitutionally, thru the exercise of
powers underlying the existence of all governments, on
the time honored principle of salus populi esta
suprema lex (Calalang v. Williams, 02 December 1940)
Social Justice – humanization of laws and the
equalization of social and economic forces by the State
so that justice in its rational and objective secular
conception may at least be approximated.
- neither communism, nor despotism, nor
atomism, nor anarchy, but the humanization of
laws and the equalization of social and
economic forces by the State so that justice in
its rational and objectively secular conception
may at least be approximated.
Fundamental Principles and Policies
CONSTITUTIONAL PROVISIONS
a) ARTICLE II, SECS. 9, 10, 11, 13, 14, 18, 20.
Welfare state - found in the constitutional clause on the
promotion of social justice to ensure the well-being and
economic security of all the people, and in the pledge of
protection to labor with specific authority to regulate
the relations between landowners and tenants and
between labor and capital.
Limits of Social Justice
Social justice should be used only to correct an
injustice. It must be founded on the recognition of the
necessity of interdependence among diverse units of a
society, and of the protection that should be equally
and evenly extended to all groups as a combined force
in our social and economic life. As partners in nation-
building, labor and management need each other to
foster productivity and economic growth; hence, the
need to weigh and balance the rights and welfare of
both the employee and employer. [Agabon vs. NLRC,
2004]
Prohibition to impair the obligation of contracts (Liberty
of Contract/Laissez Faire)
- not absolute and unqualified.
- the fact that both parties are of full age and
competent to contract, it does not necessarily
deprive the State of the power to interfere
where the parties do not stand upon an
equality, or where the public health demands
that one party to the contract shall be
protected against himself.
b) ARTICLE III, SECS. 1, 4, 8.
Due process requirements are two-fold – substantive
[dismissal should be for a valid and authorized cause as
provided by law] and procedural (due notice and
hearing).
Note: One’s employment is a property right, and the
wrongful interference therewith is an actionable wrong.
c) ART. XIII, SECS. 1, 2, 3, 13, 14.
Participation in Decision-Making Process
Management Rights / Prerogative – except as limited
by special laws (must be exercised without grave abuse
of discretion, bearing in mind the basic elements of
justice and fair play), an employer is free to regulate,
according to his own discretion and judgment, all
aspects of employment, including hiring, work
assignments, working methods, time, place and manner
of work, tools to be used, processes to be followed,
supervision of workers, working regulations, transfer of
employees, work supervision, lay-off of workers and the
discipline, dismissal and recall of workers. An employer
has a free reign and enjoys wide latitude of discretion to
regulate all aspects of employment.
Note: Management should see to it that its employees
are at least properly informed of its decisions or modes
action. Indeed, industrial peace cannot be achieved if
the employees are denied their just participation in the
discussion of matters affecting their rights.
The law in protecting the rights of the employees
authorizes neither oppression nor self-destruction of
the employer. It should be made clear that when the
law tilts the scale of justice in favor of labor, it is but a
recognition of the inherent economic inequality
between labor and management. Never should the
scale be so tilted if the result is an injustice to the
employer.
d) CIVIL CODE - ARTICLE 19, 1700 – 1712
Contracts of labor - subject to the police power of the
state because they are not ordinary contracts but are
impressed with public interest. Contract in question
would have been deemed in violation of pertinent labor
laws, the provisions of said laws would prevail over the
terms of the contract.
Collective Bargaining Agreement (CBA) - constitute the
law between the parties. Not an ordinary contract to
which is applied the principles of law governing ordinary
contracts, but impressed with public interest, thus, it
must yield to the common good. It must be construed
liberally rather than narrowly and technically, and the
courts must place a practical and realistic construction
upon it, giving due consideration to the context in which
it is negotiated and purpose which it is intended to
serve.
Fair treatment - right of an employer to dismiss an
employee must not be oppressive and abusive since it
affects one's person and property.
Mutual obligation - employer's obligation to give his
workers just compensation and treatment carries with it
the corollary right to expect from the workers adequate
work, diligence and good conduct.
Compliance with law - the return-to-work order not so
much confers a right as it imposes a duty; and while as a
right it may be waived, it must be discharged as a duty
even against the worker's will.
Employee's compliance and obedience to employer's
orders - The measure of the responsibility of an
employee is that if he performed his assigned task
efficiently and according to the usual standards, then he
may not be held personally liable for any damage
arising therefrom. Failing in this, the employee must
suffer the consequences of his negligence if not lack of
due care in the performance of his duties.
e) LABOR CODE
Salient Features of the Labor Code
a. It re-orients labor laws towards development
and employment goals;
b. It institutionalizes the NLRC to facilitate the
speedy settlement of labor disputes;
c. It establishes a new system of workmen’s
compensation;
d. It establishes a system for employment of
overseas workers and optimizes national
benefit therefrom in the form of dollar
remittances and improved skills and technology
for our people; and
e. It institutionalizes voluntary arbitration as a
mode of settling labor disputes.
Labor - exertion by human beings of physical or mental
efforts, or both, towards the production of goods and
services.
Note: The State affirms labor as a primary social
economic force. It shall protect the rights of workers
and promote their welfare.
Labor Law - The law that governs the rights and duties
of the employer (Er) and employees (Ee) with respect
to:
1. The terms and conditions of employment, and
2. Labor disputes arising from collective bargaining or
other concerted activity respecting such terms and
conditions.
Labor Legislation vs. Social Legislation
Labor Legislation Social Legislation
Directly affects Governs effects of
employment (e.g. employment (e.g.
wages) compensation for
injuries)
Refers to labor Refers to Social
statutes like Labor Security Laws
Relations Law and
Labor Standards Law
Focuses on the rights Focuses on the
 of the worker in the particular part of the
workplace society or segment
thereof
NOTE: Labor laws are social legislation, but not all social
legislations are labor laws. In relation to each other,
social legislation as a concept is broader, labor laws
narrower.
SOURCES OF LABOR LAWS
1. Constitution;
2. Labor Code and other related special legislation
(including their respective IRR);
3. Contracts;
4. CBA;
5. Company practices; and
6. Company policies.
Declaration of basic policy
1. Reason for Affording Protection to Labor - Protection
to labor is intended to raise the worker to equal footing
with the employer and shield him from abuses brought
about by the necessity for survival. Employer stands on
higher footing than the employee. First, there is greater
supply than demand for labor. Second, the need for
employment by labor comes from vital and even
desperate necessity.
2. Extent of the Protection - The protective mantle is
available not only against oppressive employees but
also against unscrupulous union leaders. The union is an
agent of its members for the purpose of securing for
them fair and just wages and good working conditions
and is subject to the obligation of giving the members
as its principals all information relevant to union and
labor matters entrusted to it.
3. Limitations
a. Protection to labor cannot be used as a
pretext to defeat the rights and prerogatives of an
employer. Thus, the validity of the dismissal of an
employee found guilty of violating rules designed for
the safety of the employees themselves, should be
upheld because it protects labor and at the same time
gives the employer its due.
b. Protection to labor cannot be used as an
excuse to distribute charities at the expense of an
employer. Courts cannot render judgment on the basis
of sympathies and inclinations, and consequently,
distribute charities at the expense of the employer,
because our constitutional government assures the
latter against deprivation of property except in
accordance with the statues and supplementary
equitable principles.
c. Protection to labor is not available where
both parties have violated the law because in such a
case, neither party is entitled to protection.
Construction in Favor of Labor
Note: All doubts in the implementation and
interpretation of the provisions of this Code, including
its implementing rules and regulations, shall be resolved
in favor of labor
Reason for the Law - Doubts are resolved in favor of
labor in line with the principle that those who have less
in life should have more in law.
Applicability - Article 4 applies only when there is a
doubt. When there is no doubt, there is no room for
construction. Where the evidence is clear that an
employee is not an asset but a liability that delays
production and sets a bad example to his co-workers,
the courts should not hesitate to confirm or order his
dismissal.
Limitation - The fundamental principles of due process
should sternly be applied on both the poor and the rich
in order to attain proper justice. The benevolent policy
of the law towards the employee does not oblige courts
to be unjust and unfair to employers.
1. Recognition of management rights. The law also
recognizes that management has rights which are also
entitled to respect and enforcement in the interest of
fair play.
2. Principle of Non-Oppression. Neither capital nor
labor shall act oppressively against the other, or impair
the interest or convenience of the public. The principle
mandates capital and labor not to act oppressively
against each other or impair the interest and
convenience of the public. The protection to labor
clause in the Constitution is not designed to oppress or
destroy capital
Q: What is the quantum of evidence required in labor
case? (2012 Bar)
A: In labor cases, as in other administrative and quasi-
judicial proceedings, the quantum of proof necessary is
substantial evidence, or such amount of relevant
evidence which a reasonable mind might accept as
adequate to justify a conclusion.
Limitations in Invoking the Principle of Social Justice
 1. Social justice does not champion division of
property or equality of economic status . It
should not tolerate usurpation of property,
public or private.
2. May only protect the laborers who come to
court with clean hands and their motives
blameless.
3. Never result in an injustice or oppression of
the employer.
4. If it is used to shield wrongdoings, it cannot
be permitted to be the refuge of scoundrels .
Q: May social justice as a guiding principle in labor law
be so used by the courts in sympathy with the working
man if it collides with the Equal Protection clause of the
Constitution? (2003 Bar)
A: YES. The State is bound under the Constitution to
afford full protection to Labor and when conflicting
interests collide and they are to be weighed on the
scales of social justice, the law should accord more
sympathy and compassion to the less privileged working
man (Fuentes v. NLRC, G.R. No. 110017, January 2,
1997).
However, it should be borne in mind that social justice
ceases to be an effective instrument for the
“equalization of the social and economic forces” by the
State when it is used to shield wrongdoing (Corazon
Jamer v. NLRC, G.R. No. 112630, September 5, 1997).
Basic Rights of Workers Guaranteed by the
Constitution:
1. Security of tenure
2. Living wage
3. Share in the fruits of production
4. Just and humane working conditions
5. Self-organization
6. Collective bargaining
7. Collective negotiations
8. Engage in peaceful concerted activities,
including the right to strike
9. Participate in policy and decision making
processes
Fundamental Management Rights
1. Right to return of investments
2. Right to prescribe rules
3. Right to select employees
4. Right to transfer or discharge employees
Rules and Regulations
The Department of Labor and other government
agencies charged with the administration and
enforcement of this Code or any of its parts shall
promulgate the necessary IRRs. A grant of quasi-
legislative power to the DOLE and other gov’t agencies
charged with the administration and enforcement of
the Labor Code or any part thereof.
- POEA
- National Wages and Productivity Commission
- Employees’ Compensation Commission
- NLRC
Limitation: cannot enlarge or amend the provisions of
the Labor Code.
Employer - Employee criteria: (Viana v. Al-LAgadan)
1. Selection and engagement of employee
- Hiring
- Written contract, not necessary
- An understanding that one is to render service
to the other, and a recognition by them of the
right of one to order and control the other is
sufficient
2. Payment of wages
- Wages – remuneration of earnings
- Considered wages if paid in consideration of:
a) The labor being performed
b) The results or finished work
3. Power of dismissal - Person hired is subjected to the
rules of discipline of the employer
4. Power to control the employee’s conduct - Most
important element.
Control test: the person for whom the services are
performed reserves the rights to control not only the
end to be achieved but also the means to be used in
reaching such end. The control should be on both the
means and the end.
Any competent and relevant evidence may be admitted
as proof of E-E relationship.
The E-E relationship is deemed suspended in the ff
cases:
1. When the employee is under suspension,
either as a disciplinary penalty or as a
preventive measure during the pendency of a
disciplinary proceedings against him
2. During off season, in case of regular seasonal
employees
 3. When fishing vessels are drydocked or
undergoing repairs
4. When an employee is laid-off for a period not
exceeding 6mos due to suspension of business
operations
5. When an employee fulfills a civic or military
duty
Termination of E-E relationship:
1. Dismissal
2. Resignation or abandonment of employment
3. Expiration of employment period
Factors that do not interrupt employment
relationship:
1. Leave of absence with pay
2. Illegal dismissal
3. Strike
A. The employer has the ability (need not be actual) to
exercise control over the following:
1. Payment of Wages - payment of compensation by
way of commission does not militate against the
conclusion EER exists. Under Art. 97 of the Labor Code,
"wage" shall mean "however designated, capable of
being expressed in terms of money, whether fixed or
ascertained on a time, task, price or commission
basis…"
Wages are defined as remuneration or earnings,
however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a
time, task, piece or commission basis, or other method
of calculating the same, which is payable by an
employer to an employee under a written or unwritten
contract of employment for work done or to be done,
or for services rendered or to be rendered, and included
the fair and reasonable value, as determined by the
Secretary of Labor, of board, lodging, or other facilities
customarily furnished by the employer to the employee.
2. Hiring – employment relation arises from contract of
hire, express or implied. Selection and engagement of
the workers rests with the employers. Not a conclusive
test since it can be avoided by the use of subcontracting
agreements or other contracts other than employment
contracts.
3. Firing – disciplinary power exercised by employer
over the worker and the corresponding sanction
imposed in case of violation of any of its rules and
regulations.
4. Control, not only over the end product / RESULT of
the work, but more importantly, control over the
MEANS through which the work is accomplished. (most
essential element; without it, there is no EER)
B. Economic Relations Test – a subordinate / alternative
test. Existing economic conditions between the parties
are used to determine whether EER exists.
1. payment of PAG-IBIG Fund contributions
2. payment / remittance of contributions to the
State Insurance Fund
3. deduction of withholding tax
4. deduction / remittance of SSS contributions
RECRUITMENT OF LOCAL AND MIGRANT WORKERS
License vs. Authority
A license is a document issued by the Department of
Labor and Employment (DOLE) authorizing a person or
entity to operate a private employment agency, while
an authority is a document issued by the DOLE
authorizing a person or association to engage in
recruitment and placement activities as a private
recruitment agency.
License Authority
Authorize an entity to Authorize an entity to
operate as a private operate as a private
employment agency recruitment entity
When a license is given, Does not entitle a private
one is also authorized to recruitment entity to
collect fees collect fees.
Entities disqualified from being issued a license
(T-O-C-P-A)
1) Travel agencies and sales agencies of airline
companies. [Art. 26];
2) Officers or members of the Board of any
corporation or members in partnership engaged
in the business of a travel agency;
3) Corporations and partnerships, when any of
its officers, members of the board or partners,
is also an officer member of the board of a
corporation or partner in a partnership
engaged in the business of a travel agency;
(4) Persons, partnerships or corporations which
have derogatory records; and
(5) Any official or employee of the DOLE, POEA,
OWWA, DFA and other government agencies
directly involved in the implementation of R.A.
8042 as amended and/or any of his/her
relatives within the 4th civil degree of
 consanguinity and affinity. [POEA Rules of
2002].
Non-transferability of license or authority
(1) No license or authority shall be used directly or
indirectly by any person other than the one in whose
favor it was issued or at any place other than that
stated in the license or authority,
(2) Nor may such license or authority be transferred,
conveyed, or assigned to any other person or entity.
Essential elements of illegal recruitment
“Definition of recruitment and placement”
“Recruitment and placement"
-refers to any act of (C-E-C-T-U-H)
(a) canvassing,
(b) enlisting,
(c) contracting,
(d) transporting,
(e) utilizing, or
(f) hiring/procuring workers,
And also includes (R-C-P-A)
(a)referrals,
(b)contract services,
(c)promising, or
(d)advertising for employment, locally or abroad,
whether for profit or not
Provided, That any person or entity which, in any
manner, offers or promises for a fee employment to
two or more persons shall be deemed engaged in
recruitment and placement. [Labor Code, Art. 13 (b)]
(a) Any of the acts mentioned above constitutes
recruitment and placement.
(b) The proviso provides for a presumption that a
person or entity so described engages in recruitment
and placement.
The act of referral, which is included in recruitment, is
"the act of passing along or forwarding of an applicant
for employment after an initial interview of a selected
applicant for employment to a selected employer,
placement officer or bureau."
Petitioner’s admission that she brought private
complainants to the agency whose owner she knows
and her acceptance of fees including those for
processing betrays her guilt.
Promising employment
The Court finds that accused-appellant was engaged in
unlawful recruitment and placement activities. The
prosecution established that accused-appellant
promised three complainants employment as factory
workers and he asked them for money in order to
process their papers and procure their passports.
Relying completely upon such representations,
complainants entrusted hard-earned money to
accused-appellant in exchange for what they would
later discover to be a vain hope of obtaining
employment abroad. It is not disputed that accused-
appellant is not authorized nor licensed by the DOLE to
engage in recruitment and placement activities. The
absence of the necessary license or authority renders
all of accused-appellant’s recruitment activities
criminal.
Illegal recruitment for local workers [governed by the
labor code]
Simple Illegal Recruitment
Elements:
(1) The person charged with the crime must have
undertaken recruitment activities defined under Art.
13(b) or prohibited activities defined under Art. 34; and
(2) The said person does not have a license or authority
to do so. [Art. 38, LC]
- To prove illegal recruitment, it must be shown
that the accused gave the distinct impression
that he had the power or ability to send
complainants abroad for work such that the
latter were convinced to part with their money
in order to be deployed.
- A person is guilty of illegal recruitment when
he gives the impression that he has the power
to send workers abroad.
Art. 38. Illegal recruitment
Any recruitment activities, including the prohibited
practices enumerated under Article 34 of this Code, to
be undertaken by non-licensees or non-holders of
authority, shall be deemed illegal and punishable under
Article 39 of this Code. The Department of Labor and
Employment or any law enforcement officer may
initiate complaints.
To prove illegal recruitment, it must be shown that the
accused gave the distinct impression that he had the
power or ability to send complainants abroad for work
such that the latter were convinced to part with their
money in order to be deployed.
A person is guilty of illegal recruitment when he gives
the impression that he has the power to send workers
abroad.
Illegal Recruitment as Economic Sabotage
- It is economic sabotage when complex illegal
recruitment is committed.
a. Syndicated – committed by a syndicate if carried out
by a group of three (3) or more persons in conspiracy or
confederation with one another.
b. Large Scale or qualified – committed against three
(3) or more persons individually or as a group despite
the lack of necessary license from POEA .
Prescription of action:
a. Art. 290 of the LC (local employment)- 3 yrs
b. Migrant – 5 yrs, except those involving economic
sabotage which prescribe in 20 yrs.
NOTE: “Illegal recruitment in large scale” pertains to the
number of victims while “syndicated illegal recruitment”
pertains to the number of recruiters.
The Secretary of Labor and Employment or his duly
authorized representatives shall have the power to
cause the arrest and detention of such non-licensee or
non-holder of authority if after investigation it is
determined that his activities constitute a danger to
national security and public order or will lead to further
exploitation of job-seekers. The Secretary shall order
the search of the office or premises and seizure of
documents, paraphernalia, properties and other
implements used in illegal recruitment activities and
the closure of companies, establishments and entities
found to be engaged in the recruitment of workers for
overseas employment, without having been licensed
or authorized to do so.
(Declared unconstitutional in Salazar v. Achacoso)
Persons Criminally Liable
The persons criminally liable for the above offenses are
the principals, accomplices and accessories. In case of
juridical persons, the officers having control,
management or direction of their business shall be
liable.
Where illegal recruitment is proved but the elements of
“large scale” or “syndicate” are absent, the accused can
be convicted only of “simple illegal recruitment”.
Estafa – a person convicted for illegal recruitment
under Labor Code can be convicted for violation of the
Revised Penal Code provisions on estafa provided the
elements of the crime are present.
Venue – filed with the RTC of the province or city,
 Where offense committed; OR
 Where offended party actually resides at the
time of the commission of the offense
Two Kinds of Illegal Recruiter
1. Non-licensee or Non-holder of Authority – performs:
a. Any of the acts defined under Article 13(b); or
b. Any of the prohibited practices enumerated under
Section 5 of RA 10022.
2. Licensed or Holder of Authority – performs any of
the prohibited practices enumerated under Section 5 of
RA 10022.
Entities authorized to engage in Recruitment and
Placement
(PEO-POEA-PRE-PEA-SMAR-SOPEADOLES-CC)
a) Public Employment Offices
b) Philippine Overseas Employment
Administration (POEA)
c) Private Recruitment Entities
d) Private Employment Agencies
e) Shipping or Manning Agents or Representatives
f) Such Other Persons or Entities as may be
Authorized by the DOLE Secretary
g) Construction Contractors
Is direct-hiring of OFWs allowed? Why?
No. Employers cannot directly hire workers for
overseas employment except through authorized
entities see (enumeration above). The reason for the
ban is to ensure full regulation of employment in order
to avoid exploitation.
XPNs:
1. Public employment offices
2. Private employment offices
3. Private recruitment entities
4. Shipping or manning agents or representatives
5. The POEA
6. Construction contractors if authorized by the DOLE
and Construction Industry Authority
7. Members of the diplomatic corps (but hiring must be
processed through POEA)
8. Other persons or entities as may be authorized by the
SOLE
9. Name hires - Individual workers who are able to
secure contracts for overseas employment
opportunities with employers without the assistance or
participation of any agency.
NOTE: Name hires shall pass through the POEA for
processing purposes and should be registered under
POEA for protection.
Registration of Name Hires
Name hires should register with the POEA by
submitting the following documents:
(EC-VP-EVWPED-COMF-COA)
a) Employment contract;
b) Valid passport;
c) Employment visa or work permit, or equivalent
document;
d) Certificate of medical fitness;
e) Certificate of attendance to the required
employment orientation/ briefing.
Power to Terminate or Impose a Ban on Employment
of Migrant Workers
The POEA may at any time terminate or impose a ban
on employment of migrant workers, to do so, in
consultation with the DFA based on the ff. grounds:
1. In pursuit of the national interest; or
2. When public welfare so requires.
Regulatory and Adjudicatory Functions of the POEA
1. Regulatory
a. It regulates the private sector participation in the
recruitment and overseas placement of workers
through its licensing and registration system;
b. Formulate and implement, in coordination with
appropriate entities concerned, when necessary, a
system for promoting and monitoring the overseas
employment of Filipino workers taking into
consideration their welfare and the domestic
manpower requirements;
c. Inform migrant workers not only of their rights as
workers but also of their rights as human beings;
d. Instruct and guide the workers how to assert their
rights;
e. Provide the available mechanism to redress
violation of their rights; and
f. In the recruitment and placement of workers to
service the requirements for trained and competent
Filipino workers of foreign governments and their
instrumentalities, and such other employers as public
interests may require, the administration shall deploy
only to countries:
1. Where the Philippines has concluded
bilateral labor agreements or arrangements;
2. Guaranteeing to protect the rights of Filipino
migrant workers; and,
3. Observing and/or complying with the
international laws and standards for migrant workers.
2. Adjudicatory
a. Administrative cases involving violations of licensing
rules and regulations and registration of recruitment
and employment agencies or entities.
b. Disciplinary action cases and other special cases
which are administrative in character involving
employers, principals, contracting partners and Filipino
migrants.
Guarantees of the Receiving Country for the Protection
of the Rights of OFWs
1. It has existing labor and social laws protecting the
rights of workers, including migrant workers;
2. It is a signatory to and/or a ratifier of multilateral
conventions, declarations or resolutions relating to the
protection of workers, including migrant workers; and
3. It has concluded a bilateral agreement or
arrangement with the government on the protection
of the rights of OFWs (Sec. 3, R.A. 10022 amending
R.A. 8042).
NOTE: In the absence of a clear showing that any of the
guarantees exists in the country of destination of the
migrant workers, no permit for deployment shall be
issued by the POEA.
REMITTANCE OF FOREIGN EXCHANGE EARNING
It shall be mandatory for all Filipino workers abroad to
remit a portion of their foreign earnings to their
families, dependents, and/or beneficiaries in the
country [Art. 22, LC]
Under Executive Order No. 857, the amount of one’s
salary required to be remitted depends on the type or
nature of work performed by the employee. The
following are the percentages of foreign exchange
remittance required from various kinds of migrant
workers:
(1) Seaman or mariner – 80% of their basic salary
(2) Workers for Filipino contractors and construction
companies – 70%
(3) Doctors, engineers, teachers, nurses and other
professional workers whose contract provide for free
board and lodging – 70%
(4) All other professional workers whose employment
contracts do not provide for free board and lodging
facilities – 50%
(5) Domestic and other service workers – 50%
(6) All other workers not falling under the
aforementioned categories – 50%
(7) Performing artists – 50%
The following individuals, however, are exempted
from the mandatory remittance requirement:
(1) The immediate family members, dependents or
beneficiaries of migrant workers residing with the
latter abroad;
(2) Filipino servicemen working within US military
installations;
(3) Immigrants and Filipino professionals working with
the United Nations and its agencies or other
specialized bodies.
Fees to be Paid by Workers:
 No worker shall be charged with any fee until
employee: (1) obtained work through recruiter’s
efforts; and (2) worker has actually commenced
working.
 Placement fee in an amount equivalent to one
month’s salary of the worker and documentation
costs are the ONLY AUTHORIZED PAYMENTS that
may be collected from a hired worker.
Fees Chargeable to the Worker
1. Placement fee in an amount equivalent to one
month basic salary of the worker (Revised POEA Rules,
Rule 5, Sec. 51);
2. Documentation costs; and
3. Membership with Philhealth, Pag-IBIG and SSS
(Revised POEA Rules, Rule 5, Sec. 50).
Nature of the liability of local recruitment agency and
foreign principal
1. Local Agency is solidarily liable with foreign
principal.
2. Severance of relations between local agent
and foreign principal does not affect liability of
local recruiter.
Joint and solidary liability of recruiter with Foreign
Principal
 A recruitment agency is solidarily liable for the
unpaid salaries of a worker it recruited for
employment overseas.
 Even if the recruiter and the principal had
already severed their agency agreement at the
time employee was injured, the recruiter may
still be sued for a violation of the employment
contract because no notice of the agency
agreement's termination was given to the
employee.
Power to suspend or cancel any license or authority to
recruit employees for overseas employment is
concurrently vested with the POEA and the Secretary
of Labor.
The penalties of suspension and cancellation of license
or authority are prescribed for violations of the above
quoted provisions, among others. And the Secretary of
Labor has the power under Section 35 of the law to
apply these sanctions, as well as the authority,
conferred by Section 36, not only to 'restrict and
regulate the recruitment and placement activities of all
agencies,' but also to 'promulgate rules and
regulations to carry out the objectives and implement
the provisions' governing said activities. Pursuant to
this rulemaking power thus granted, the Secretary of
Labor gave the POEA on its own initiative or upon filing
of a complaint or report or upon request for
investigation by any aggrieved person, (authority to)
conduct the necessary proceedings for the suspension
or cancellation of the license or authority of any
agency or entity' for certain enumerated offenses
including:
1. the imposition or acceptance, directly or indirectly,
of any amount of money, goods or services, or any fee
or bond in excess of what is prescribed by the
Administration; and
2. any other violation of pertinent provisions of the
Labor Code and other relevant laws, rules and
regulations.
 The Administrator was also given the power to
'order the dismissal of the case or the suspension
of the license or authority of the respondent
agency or contractor or recommend to the
Minister (now Secretary) the cancellation thereof.
Capitalization
All applicants for authority to hire or renewal of license
to recruit are required to have such substantial
capitalization as determined by the Secretary of Labor.
• Recruitment agency for local employment:
o 200k in the case of single proprietorship
o 500k in the case of a corporation
• Recruitment or manning agency for overseas
employment:
o 2M for single proprietorship
o 5M for corporations
Three or more complainants must be in a single case
When the Labor Code speaks of illegal recruitment
"committed against three (3) or more persons
individually or as a group," it must be understood as
referring to the number of complainants in each case
who are complainants therein, otherwise, prosecutions
for single crimes of illegal recruitment can be cumulated
to make out a case of large scale illegal recruitment.
Illegal Recruitment VS Estafa
Illegal recruitment and estafa are entirely different
offenses and neither one necessarily includes or is
necessarily included in the other. A person who is
convicted of illegal recruitment may, in addition, be
convicted of estafa by false pretenses or fraudulent acts
under Article 315, paragraph 2(a) of the Revised Penal
Code. In the same manner, a person acquitted of illegal
recruitment may be held liable for estafa. Double
jeopardy will not set in because illegal recruitment is
malum prohibitum, in which there is no necessity to
prove criminal intent, whereas estafa is malum in se,
in the prosecution of which, proof of criminal intent is
necessary. [Rosita Sy vs. People of the Philippines,
2010]
Prohibited practices (Local Employment)
It shall be unlawful for any individual, entity, licensee,
or holder of authority:
(a) To charge or accept, directly or indirectly, any
amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor, or
to make a worker pay any amount greater than that
actually received by him as a loan or advance;
(b) To furnish or publish any false notice or
information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or
document or commit any act of misrepresentation for
the purpose of securing a license or authority under
this Code.
(d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him
to another unless the transfer is designed to liberate
the worker from oppressive terms and conditions of
employment;
(e) To influence or to attempt to influence any person
or entity not to employ any worker who has not
applied for employment through his agency;
(f) To engage in the recruitment or placement of
workers in jobs harmful to public health or morality or
to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the
Secretary of Labor or by his duly authorized
representatives;
(h) To fail to file reports on the status of employment,
placement vacancies, remittance of foreign exchange
earnings, separation from jobs, departures and such
other matters or information as may be required by
the Secretary of Labor.

(i) To substitute or alter employment contracts
approved and verified by the Department of Labor
from the time of actual signing thereof by the parties
up to and including the periods of expiration of the
same without the approval of the Secretary of Labor;
(j) To become an officer or member of the Board of any
corporation engaged in travel agency or to be engaged
directly or indirectly in the management of a travel
agency; and
(k) To withhold or deny travel documents from
applicant workers before departure for monetary or
financial considerations other than those authorized
under this Code and its implementing rules and
regulations. [Art. 34, LC]
Other prohibited acts (Overseas Employment)
It shall likewise include the following acts, whether
committed by any person, whether a non-licensee,
non-holder, licensee or holder of authority:
(a) To charge or accept directly or indirectly any
amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor
and Employment, or to make a worker pay or
acknowledge any amount greater than that actually
received by him as a loan or advance;
(b) To furnish or publish any false notice or
information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or
document or commit any act of misrepresentation for
the purpose of securing a license or authority under
the Labor Code, or for the purpose of documenting
hired workers with the POEA, which include the act of
reprocessing workers through a job order that pertains
to nonexistent work, work different from the actual
overseas work, or work with a different employer
whether registered or not with the POEA;
(d) To include or attempt to induce a worker already
employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a
worker from oppressive terms and conditions of
employment;
(e) To influence or attempt to influence any person or
entity not to employ any worker who has not applied
for employment through his agency or who has
formed, joined or supported, or has contacted or is
supported by any union or workers' organization;
(f) To engage in the recruitment or placement of
workers in jobs harmful to public health or morality or
to the dignity of the Republic of the Philippines;
(g) To fail to submit reports on the status of
employment, placement vacancies, remittance of
foreign exchange earnings, separation from jobs,
departures and such other matters or information as
may be required by the Secretary of Labor and
Employment;
(h) To substitute or alter to the prejudice of the
worker, employment contracts approved and verified
by the Department of Labor and Employment from the
time of actual signing thereof by the parties up to and
including the period of the expiration of the same
without the approval of the Department of Labor and
Employment;
(i) For an officer or agent of a recruitment or
placement agency to become an officer or member of
the Board of any corporation engaged in travel agency
or to be engaged directly or indirectly in the
management of travel agency;
(j) To withhold or deny travel documents from
applicant workers before departure for monetary or
financial considerations, or for any other reasons,
other than those authorized under the Labor Code and
its implementing rules and regulations;
(k) Failure to actually deploy a contracted worker
without valid reason as determined by the
Department of Labor and Employment;
(l) Failure to reimburse expenses incurred by the
worker in connection with his documentation and
processing for purposes of deployment, in cases where
the deployment does not actually take place without
the worker's fault. Illegal recruitment when committed
by a syndicate or in large scale shall be considered an
offense involving economic sabotage; and
(m) To allow a non-Filipino citizen to head or manage a
licensed recruitment/manning agency.
In addition to the acts enumerated above, it shall also
be unlawful for any person or entity to commit the
following prohibited acts (not illegal recruitment
activities but prohibited acts in relation to
recruitment):

(1) Grant a loan to an overseas Filipino worker with
interest exceeding eight percent (8%) per annum,
which will be used for payment of legal and allowable
placement fees and make the migrant worker issue,
either personally or through a guarantor or
accommodation party, postdated checks in relation to
the said loan;
(2) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to
avail of a loan only from specifically designated
institutions, entities or persons (xpt in case of a
seafarer whose medical examination cost is
shouldered by the principal or shipowner);
(3) Refuse to condone or renegotiate a loan incurred
by an overseas Filipino worker after the latter's
employment contract has been prematurely
terminated through no fault of his or her own;
(4) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to
undergo health examinations only from specifically
designated medical clinics, institutions, entities or
persons, except in the case of a seafarer whose
medical examination cost is shouldered by the
principal/shipowner;
(5) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to
undergo training, seminar, instruction or schooling of
any kind only from specifically designated institutions,
entities or persons, except for recommendatory
trainings mandated by principals/shipowners where
the latter shoulder the cost of such trainings;
(6) For a suspended recruitment/manning agency to
engage in any kind of recruitment activity including the
processing of pending workers' applications; and
(7) For a recruitment/manning agency or a foreign
principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment of
the cost of insurance fees, premium or other insurance
related charges, as provided under the compulsory
worker's insurance coverage. [Sec. 6, RA 8042 as
amended]
Private Sector Participation in the Recruitment and
Placement of Workers
Private employment sector shall participate in the
recruitment and placement of workers, locally and
overseas, under such guidelines, rules and regulations
as may be issued by the SOLE (LC, Art. 25).
Private Sectors that can participate
(SMAR-PRO-PEO-CC-PASOLE-PEA)
1. Shipping or manning agents or representatives
2. Private recruitment offices
3. Public employment offices
4. Construction contractors if authorized by the DOLE
and Construction Industry Authority.
5. Persons that may be authorized by the SOLE
6. Private employment agencies (Sec. 1, Rule VII,
Book I, IRR of the LC).
Qualifications for Participation
1. Citizenship Requirement
a. Filipino citizens
b. Partnerships or corporations
with at least 75% of the
authorized capital stock is
owned and controlled by
Filipino citizens (LC, Art. 27);
2. Capitalization (LC, Art. 28)
a. Local employment
- A minimum networth/paid-up capital of P1
million for single proprietorship and
partnership/corporation;
b. Overseas employment
- A minimum capitalization/paid-up capital of
P5 million for single proprietorship and
partnership/ corporation (Sec. 2, Rule 1, Part II,
Revised POEA Rules of 2016).
3. Not otherwise disqualified by law or other
government regulations to engage in the recruitment
and placement of workers for overseas employment
(Rule 1, Part II, Revised POEA Rules of 2016).
4. Payment of registration fees
5. Posting of surety or cash bonds
Note: Regulation of the private sector’s participation in
the recruitment and overseas placement of workers is
made by setting up a licensing and registration system
(Sec. 14, R.A. 10022).
Validity of License to Recruit

1. Local Employment – license shall be valid for a
period of three (3) years from the date of issuance
unless sooner revoked or cancelled(DO 141-4, Sec. 12).
2. Overseas Employment – regular license is valid up to
the full term of four (4) years from the date of issuance
of the provisional license.
Provisional license is issued by the POEA which is valid
for two (2) years (POEA Revised Rules 2016).
POEA may upgrade the provisional license during its
validity to a regular license after the recruiter has
deployed at least one hundred workers to its new
principal(s). A provisional license does not authorize
recruitment for domestic employment.
Persons and Entities Disqualified to Engage in the
Business of Recruitment and Placement of Workers
1. Travel agencies and sales agencies of airline
companies(LC, Art. 26);
2. Officers or members of the board of any
corporation or members in a partnership
engaged in the business of a travel agency;
3. Corporations and partnerships, when any of its
officers, members of the board or partners, is
also an officer, member of the board or
partner of a corporation or partnership
engaged in the business of a travel agency;
4. Persons, partnerships or corporations which
have derogatory records, such as but not
limited to those:
a. Certified to have derogatory record or
information by the NBI or by the Anti-
Illegal Recruitment Branch of the
POEA;
b. Against whom probable cause or prima
facie finding of guilt for illegal
recruitment or other related cases
exists (no convIction yet);
c. Convicted for illegal recruitment or
other related cases and/or crimes
involving moral turpitude; and
d. Agencies whose licenses have been
previously revoked or cancelled by the
POEA for violation of R.A. 8042, P.D.
442 as amended and their IRRs.
5. Any official or employee of the DOLE, POEA,
OWWA, DFA and other government agencies
directly involved in the implementation of R.A.
8042 and/or any of his/her relatives within the
4th civil degree of consanguinity or affinity;
and
6. Persons or partners, officers and directors of
corporations whose licenses have been
previously cancelled or revoked for violation of
recruitment laws (Sec. 2, Rule I, 2002 Rules and
Regulations on the Recruitment and
Employment of Land-Based Workers)
Prohibition on Travel Agencies and Sales Agencies of
Airline Companies to Recruit
They are prohibited from engaging in the business of
recruitment and placement of workers for overseas
employment whether for profit or not due to conflict
of interest.
This is so, for travel agencies under the supervisory
powers of the Department of Tourism, not the
Department of Labor and Employment. Otherwise,
confusion may arise to the detriment and disadvantage
of an overseas applicant-worker or may lead to
exploitation of the applicant-worker who will be at the
economic mercy of the travel agency or sales agencies
of airline company from the time his papers are
processed to the time he departs.
Relief of a Worker When Terminated Without
Valid Cause
1. Full reimbursement of his placement fee with 12%
interest per annum;
2. Plus salaries for the unexpired portion of his
employment contract (R.A. 10022).
NOTE: The three-month option is declared
unconstitutional for violating the equal protection
clause and the substantive due process rule in the
Constitution.
Criminal Actions
RTC of the province or city:
1. Where the offense was committed; or,
2. Where the offended party actually resides at the
time of the commission of the offense (RA 8042, Sec. 9).
Money Claims
NLRC has the original and exclusive jurisdiction to hear
and decide claims arising out of an Er-Ee relationship
or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for
actual, moral, exemplary and other forms of damages.
Administrative Actions
POEA has the original and exclusive jurisdiction to hear
and decide:
1. All cases which are administrative in character,
involving or arising out of violations of rules and
regulations relating to licensing and registration of
recruitment and employment agencies or entities; and,
2. Disciplinary action cases and other special cases
which are administrative in character, involving Ers,
principals, contracting partners and Filipino migrant
workers.
a. It may be filed with the POEA Adjudication
Office or the DOLE/POEA regional office of the
place where the complaint applied or was
recruited at the option of the complainant. The
office with which the complaint was first filed
shall take cognizance of the case.
b. Disciplinary action cases and other special
cases, as mentioned in the preceding Section,
shall be filed with POEA Adjudication Office.
Consequence Of Conviction For Illegal Recruitment –
see UST reviewer page 41 for table.
EMPLOYMENT PERMIT OF NON-RESIDENT ALIENS
An employment permit may be issued to:
1. a non-resident alien; or
2. the applicant employer after a determination of the
non-availability of a person in the Philippines who is
competent, able and willing at the time of application
to perform the services for which the alien is desired.
NOTE: For an enterprise registered in preferred areas
of investments, said permit may be issued upon
recommendation of the Government agency charged
with the supervision of said registered enterprise (LC,
Art. 40).
Requisites for Employment of Non-Resident Aliens
1. working permit from DOLE;
2. certification that there is no available Filipino
willing and competent to do the job for the employer;
3. alien must train at least two Filipino understudies
for such undertaking;
4. FOR ENTERPRISES REGISTERED IN PREFERRED AREAS
OF INVESTMENT – employment permit issued upon
recommendation of government agency charged with
the supervision of said registered enterprise.
Persons Required to Obtain Employment Permit
GR: All non-resident foreign nationals who intend to
engage in gainful employment in the Philippines and
any domestic or foreign employer who desires to
engage an alien for employment in the Philippines.
XPNs:
1. Members of the diplomatic services and foreign
government officials accredited by the Philippine
government;
2. Officers and staff of international organizations of
which the Philippine government is a cooperating
member, and their legitimate spouses desiring to work
in the Philippines;
3. Foreign nationals elected as members of the
Governing Board who do not occupy any other
position, but have only voting rights in the
corporation;
4. All foreign nationals granted exemption by special
laws and all other laws that may be promulgated by
the Congress;
5. Owners and representatives of foreign principals,
whose companies are accredited by the Philippine
Overseas Employment Administration (POEA), who
come to the Philippines for a limited period solely for
the purpose of interviewing Filipino applicants for
employment abroad;
6. Foreign nationals who come to the Philippines to
teach, present and/or conduct research studies in
universities and colleges provided that the exemption
is on a reciprocal basis; and
7. Resident foreign nationals and temporary or
probationary resident visa holders employed or
seeking employment in the Philippines (DO 97-09,
Series of 2009).
Other Persons Required to Obtain an Alien
Employment Permit
1. Non-resident foreign nationals admitted to the
Philippines on non-working visas and who wish to seek
employment.
2. Missionaries or religious workers who intend to
engage in gainful employment.
NOTE: No alien employees for nationalized industries
such as:
a. Educational institutions;
b. Media;
c. Public utilities
 After the issuance of an employment permit, the
alien shall not transfer to another job or change his
Er without prior approval of the SLE [LC, Art.
41(a)].
 Any non-resident alien who shall take up
employment in violation of the provisions of the
Code shall be punished [LC, Art. 41(b)].
 Alien worker shall be subject to deportation after
service of his sentence(LC, Art. 41). Duration of the
Employment Permitl
GR: Minimum of 1 year
XPN: If the employment contract, consultancy services,
or other modes of engagement provides otherwise,
which in no case shall exceed 5 years [DOLE D.O. 97-09,
Revised Rules for the Issuance of Employment Permits
to Foreign Nationals (2009)].
Employment of Aliens in Entities Engaged in
Nationalized Activities
GR: Aliens may not be employed or engaged in
nationalized activities
XPNs:
1. Secretary of Justice specifically authorizes the
employment of technical personnel;
2. Aliens are elected members of the board of directors
or governing body of corporations or associations
engaging in partially nationalized activities shall be
allowed in proportion to their allowable participation or
share in the capital of such entities [Sec. 2(A), Anti-
Dummy Law, as amended by P.D. 715]; or
3. Enterprises registered under the Omnibus Investment
Code in case of technical, supervisory or advisory
positions, but for a limited period.
Any alien seeking admission to the Philippines for
employment purposes and any domestic or foreign
employer who desires to engage an alien for
employment in the Philippines shall obtain an
employment permit from the Department of Labor.
The employment permit may be issued to a non-
resident alien or to the applicant employer after a
determination of the non-availability of a person in the
Philippines who is competent, able and willing at the
time of application to perform the services for which
the alien is desired.
GR: Philippine laws apply even to overseas
employment contracts. This rule is rooted in the
constitutional provision of Section 3, Article XIII that
the State shall afford full protection to labor, whether
local or overseas. Hence, even if the OFW has his
employment abroad, it does not strip him of his rights
to security of tenure, humane conditions of work and a
living wage under our Constitution.
XPN: Parties may agree that a foreign law shall govern
the employment contract subject to the following
requisites:
1. That it is expressly stipulated in the overseas
employment contract that a specific foreign law shall
govern;
2. That the foreign law invoked must be proven before
the courts pursuant to the Philippine rules on
evidence;
3. That the foreign law stipulated in the overseas
employment contract must not be contrary to law,
morals, good customs, public order, or public policy of
the Philippines; and
4. That the overseas employment contract must be
processed through the POEA.
Labor Standards
COVERAGE
General rule: Shall apply to employees in all
establishments and undertakings whether for profit or
not. [Art. 82, LC]
Exceptions (NOT Covered) GMFF-DPR:
(1) Government employees [Art. 82; Art. 76]
(2) Managerial Employees including members of the
managerial staff [Art. 82]
(3) Field Personnel [Art. 82]
(4) Members of the family of the employer who are
dependent on him for support [Art. 82];
(5) Domestic helpers and persons in personal service of
another [Art. 141]
(6) Workers who paid by result as determined by DOLE
regulation [Art. 82].
GOVERNMENT EMPLOYEES
The terms and conditions of employment of all
government employees, including employees of GOCCs,
are governed by the Civil Service rules and regulations,
not by the Labor Code. But this exclusion DOES NOT
refer to employees of government agencies and
government corporations that are incorporated under
the Corporation Code.
All rights and benefits granted to workers under
this Code shall, except as may otherwise be provided
herein, apply alike to all workers, whether agricultural
or non-agricultural.
• The LC applies only to employees in the private
sector, whether agricultural or non-agricultural.
• Government employees: Civil Service Law
• GOCCs created by special charter: Civil Service Law
• GOCCs organized under the Corporation Law: LC
• To be covered by the LC, there must be employer-
employee relationship.
Who are covered
All employees in all establishments
Who are NOT covered
(1) Government employees
See: Civil Service Law
Magna Carta of Public Health Workers (R.A.
7305)
(2) Managerial employees
(a) managerial employees
(b) officers of the managerial staff
(c) members of the managerial staff
For purposes of the exemption, managerial employees
“are those whose primary duty consists of the
management of the establishment in which they are
employed or of a department or subdivision.” A
purported “manager” whose function is simply to carry
out the company’s orders, plans and policies is not a
managerial employee. If their functions, duties and
responsibilities do not bear relation with the
management of the establishment, nor participate in
the formulation of its policies, nor in the hiring and
firing of its employees, then they are NOT managerial
employees. Managerial employee is not required to
report at a fixed hour or to keep fixed hours of work.
(3) Field Personnel - refers to non-agricultural
employees who:
1. Regularly perform their duties away from
the principal place of business or branch office
of the employer; and
2. Whose actual hours of work in the field
cannot be determined with reasonable
certainty.
 exempted from the coverage due to the nature of
their functions which requires performance of
service away from the principal place of business.
 they are free from the personal supervision of the
employer and the latter cannot determine with
reasonable certainty the actual number of hours of
work expended for the employer's interest.
Xpn to the Xpn:
Drivers/Bus Conductors
- along the routes that are plied by these bus
companies, there are its inspectors assigned at
strategic places who board the bus and inspect the
passengers, the punched tickets, and the conductors
reports. There is also the mandatory once-a-week car
barn or shop day, where the bus is regularly checked
as to its mechanical, electrical, and hydraulic aspects,
whether or not there are problems thereon as
reported by the driver and/or conductor. They too,
must be at specific place as [sic] specified time, as they
generally observe prompt departure and arrival from
their point of origin to their point of destination. In
each and every depot, there is always the dispatcher
whose function is precisely to see to it that the bus
and its crew leave the premises at specific times and
arrive at the estimated proper time.
(4) Dependent Family Members - They are exempted
from the coverage, for the support given by the
employer may exceed the benefit for which an
employee is entitled under appropriate labor
provisions.
(5) Domestic Workers and Persons in the Personal
Service of Another - employed in the employer's home
to minister exclusively to the personal comfort and
enjoyment of the employer's family.
Note: Househelp or laundrywomen working in
staffhouses or a company, who attends to the needs of
company guests and other persons availing of said
facilities should not be included in this definition. The
mere fact that the househelper or domestic servant is
working within the premises of the employer and in
relation to or in connection with its business, as in its
staffhouses, warrants the conclusion that such
househelper or domestic servant is and should be
considered as a regular employee. On the other hand, a
personal driver of the owner of the company cannot
claim regular employment with the company itself
absent proof of his employment relations therewith.
(6) Piece Workers - workers paid by results.
Note: while the mode of compensation is on piece-rate
basis, they are considered as regular employees for as
long as the nature of the tasks they perform are
necessary and desirable in the usual business of the
employer, and their employment is not dependent on
specific projects or season.
APPRENTICESHIP – training within employment with
compulsory related theoretical instructions involving a
contract between an apprentice and an employer on
an approved apprenticeable occupation.
APPRENTICE – a person undergoing training for an
approved apprenticeable occupation during an
established period assured by an apprenticeship
agreement.
APPRENTICESHIP AGREEMENT – a contract wherein a
prospective employer binds himself to train the
apprentice who in turn accepts
TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
APPRENTICES
ART. 57 STATEMENT OF OBJECTIVES
1. To help meet the demand of the economy for
trained manpower;
2. To establish a national apprenticeship program
through the participation of employers, workers and
government and non-government agencies; and
3. To establish apprenticeship standards for the
protection of apprentices.
SALIENT FEATURES OF THE APPRENTICESHIP LAW
1. It liberalizes the application of training principles to
facilitate the use of the training method for
development of manpower in many other occupations
aside from the skilled trades.
2. It lowers the minimum qualifying age for
apprenticeship to 14 instead of 16 as prescribed in the
old law.
3. It eliminates the unrealistic requirement that a
prospective apprentice should be a high school
graduate.
4. Unlike the old law which required that training should
be undertaken in the premises of the employer alone,
the Labor Code gives an employer the option to
conduct the training in its premises, in a Department
of Labor and Employment training center or other
public training institution, or a combination of both.
5. Associations and civic groups are now allowed to
organize or sponsor apprenticeship programs.
6. The limitation imposed by P.D. No. 173 on the
number of apprentices whose compulsory
employment and training may be required during the
emergency situations has been eliminated.
QUALIFICATIONS OF APPRENTICE
1. Be at least (14) years of age.
NOTE: Those below 18 years of age may be eligible for
apprenticeship only in nonhazardous occupations;
2. Physically fit for the occupation;
3. Possess vocational aptitude and capacity;
4. Possess:
a. The ability to comprehend, and
b. Follow oral and written instructions;
5. The company must have an apprenticeship program
duly approved by the SOLE.
Trade and industry associations may recommend to the
Secretary of Labor appropriate educational
requirements for different occupations.
Requisites for employment of apprentices
1. The employer should be engaged in a business that is
considered a highly technical industry;
2. The job which the apprentice will work on should be
an apprenticeable occupation.
- It is no longer the SOLE, but the TESDA, who approves
apprenticeable occupations
GR: Apprenticeship programs shall be primarily
voluntary.
XPNs: Compulsory Apprenticeship:
1. National security or economic development so
demand, the President may require compulsory
training;
2. Services of foreign technicians are utilized by private
companies in apprenticeable trades (LC, Art. 70).
Apprenticeable occupation
Any trade, form of employment or occupation which
requires more than three (3) months of practical
training with theoretical instruction officially endorsed
by the tripartite body and approved for apprenticeship
by the TESDA.
On the job training (OJT)
It is practical work experience through actual
participation in productive activities given to or
acquired by an apprentice.
When occupation deemed hazardous
1. Nature of work exposes worker to dangerous
environmental elemental contaminants or work
conditions;
2. Workers are engaged in construction work, logging,
firefighting, mining, quarrying, blasting, stevedoring,
deep-sea fishing, and mechanized farming;
3. Workers are engaged in the manufacture or handling
of explosives and other pyrotechnic products;
4. Workers use, or are exposed to heavy or power-
driven machinery or equipment.
Employers of apprentices
1. Only employers in highly technical industries; and
2. Only in apprenticeable occupations approved by
SOLE
Conditions for employment of an apprentice
1. Should be an apprenticeable trade as determined by
TESDA.
2. Prior approval by the DOLE of the proposed
apprenticeship program is a condition sine qua non
before an apprenticeship agreement can be validly
entered into.
Period of apprenticeship
Apprenticeship must not exceed 6 months.
NOTE:
1. 2 months/400 hours: Trades or occupations which
normally require 1 year or more for proficiency.
2. 1 month/200 hours: Occupations and jobs which
require more than 3 months but less than 1 year for
proficiency..
Status of an apprentice after the lapse of the period of
apprenticeship
He is deemed a regular employee. He cannot be hired
as a probationary employee since the apprenticeship is
deemed the probationary period.
Deductibility of training costs
An additional deduction from taxable income of
(1/2) of the value of labor training expenses incurred
for developing the productivity and efficiency of
apprentices shall be granted to the organizers.
Conditions:
1. The apprenticeship program is duly recognized by
TESDA;
2. Deduction shall not exceed ten (10%) percent of
direct labor wage; and
3. The person or enterprise who wishes to avail itself
of this incentive should pay his apprentices the
minimum wage.
Compensation of an Apprentice
GR: It starts at not less than 75% of the statutory
minimum wage for the 1st 6 months (except OJT);
thereafter, shall be paid in full minimum wage,
including the full COLA.
XPN: Art. 72 of the LC provides that the SLE may
authorize the hiring of apprentices without
compensation whose training on the job is required:
1. By the school or;
2. By a training program curriculum or;
3. As requisite for graduation or
4. As requisite for board examination.
Apprenticeship Without Compensation
(a) those who undergo apprenticeship for the purposes
of complying with academic requirements for
graduation
(b) those who undergo apprenticeship for the purposes
of complying with government requirements for board
examinations
Learners Defined
Persons who may employ learners
Only employers in semi-skilled and other industrial
occupations which are non-apprenticeable may employ
learners.
Pre-termination of Learnership contract; Regular
employment

-those who are hired as trainees in semi-skilled and If training is terminated by the employer before the
other industrial occupations which are non- end of the stipulated period through no fault of the
apprenticeable and which may be learned through Learners, they are deemed regular employees (IRR,
practical training on-the-job. Book II, Rule VII, Sec. 4). Provided, they have already
-must not exceed 3 months. been trained for 2 months.
-employer must have Leadership Program duly
approved by TESDA. Basis Learnership Apprenticeship
-need not be supplemented by theoretical instructions. Nature Training on the Training in
job in semi- trades which
When Learners May Be hired— Conditions: skilled and are
other industrial apprenticeable,
(a) the job is semi-skilled and non-apprenticeable and occupation or that is, practical
can be learned in a practical way within a period of not trades which training on the
more than 3 months are non- job
(b) there are no available experienced workers apprenticeable supplemented
(c) the employment of learners is necessary to prevent and which may by
curtailment of employment opportunities be learned thru related
practical theoretical
training on the instruction for
job in a more than 3
(d) their employment does not create unfair relatively short months.
competition in terms of labor costs or impair working period of time.
standards. Duration of Max: 3 months Min: 3 months
Training Max: 6 months
Age Requirement: Commitment to With No
- below 15 cannot be employed as a learner employ commitment commitment
- below 18 can be employed only in non-hazardous, to employ the to hire
safe occupations learner as a
regular
Contents of a Learnership Agreement: employee
if he desires
Any employer desiring to employ learners shall enter upon
into a learnership agreement with them, which completion of
agreement shall include: learnership
In case of Pre- Considered a Worker not
1. The names and addresses of the learners; termination of regular considered as
2. The duration of the learnership period, which shall Contract employee regular
not exceed 3 months; if pre- employee.
3. The wages or salary rates of the learners which shall termination
begin at not less than 75% of the applicable minimum occurs after 2
wage; and months of
4. A commitment to employ the learners if they so training and the
desire, as regular employees upon completion of the dismissal is
learnership. without fault of
 the Learner. before advertising or interviewing applicants for the job
Coverage Semi-skilled/ Highly technical (RA 7277, Sec. 4[1]).
Industrial industries and
occupations only in Employment of PWD
industrial
occupation 1. When their employment is necessary to prevent
List There is a list of No list curtailment of employment opportunities; and
learnable trades 2. When it will not create unfair competition in labor
by TESDA costs or lower working standards (LC, Art. 79).
Written Requires Requires
Agreement learnership apprenticeship Employment period of PWD
agreement agreement
There is no minimum or maximum duration. It depends
PERSONS WITH DISABILITY (R.A. 7277 as amended by on the agreement but it is necessary that there is a
R.A. 9442) specific duration stated.

The Magna Carta for Disabled Persons ensures equal
opportunities for disabled persons and prohibits
discrimination against them.
Persons With Disability (PWD)
Those whose earning capacity is impaired by:
Persons with disability can be a regular employee
if work is usually or necessarily desirable to the
business (Bernardo v. NLRC, G.R No. 122917, July 12,
1999).
Persons who may employ persons with
disability

1. Physical deficiency; Employers in all industries: Provided, the disability is

2. Age; not such as to effectively impede the performance of
3. Injury; job operations in the particular occupations for which
4. Disease; they are hired.

5. Mental deficiency; and Not all workers with a disability are considered
6. Illness. disabled workers

Qualified Disabled Employee
It provides for Equal Opportunity for Employment by
stating that no disabled person shall be denied access
to opportunities for suitable employment.
A qualified disabled employee shall be subject to the
same terms and conditions of employment and the
same compensation, privileges, benefits, fringe
benefits, incentives or allowances as a qualified
ablebodied person.
The mere fact that a worker has a disability does not
make him a disabled worker because his disability may
not impair his efficiency or the quality of his work. If
despite his disability he can still efficiently perform his
work, he would be considered a qualified disabled
worker entitled to the same treatment as qualified
able-bodied workers (Bernardo v. NLRC, G.R. No.
122917, July 12, 1999).
Rights and privileges of PWD

A qualified individual with disability is an individual 1. Equal Opportunity for Employment

with disability who, with or without reasonable
accommodation, can perform the essential functions
of the employment position that such individual holds
or desires.
NOTE: Consideration shall be given to the employer’s
judgment as to what functions of job are essential, and
if an employer has prepared a written description
No PWD shall be denied access to opportunities for
suitable employment. Five percent (5%) of all casual
emergency and contractual positions in the DSWD,
Health, Education and other government agencies,
offices or corporations engaged in social development
shall be reserved for PWDs (Section 5, Chapter 1, Title
II, RA 7277).

XPN: Bona Fide Occupational Qualification


2. Sheltered Employment
The Government shall endeavor to provide them work
if suitable employment for disabled persons cannot be
found through open employment.
3. Apprenticeship
PWD may be hired as apprentices or learners if their
disability is not such as to effectively impede the
performance of job/operations in the particular
occupation for which they are hired (LC, Art. 81).
4. Vocational Rehabilitation
To develop the skills and potentials of disabled
workers and enable them to compete in the labor
market.
2. Private entities that improve or modify their
physical facilities in order to provide reasonable
accommodation for disabled persons shall also be
entitled to an additional deduction from their net
taxable income, equivalent to 50% of the direct costs
of the improvements or modifications (R.A. 7277, Sec.
8).
The financial incentive, if any, granted by law to SPQ
Garments whose cutters and sewers in its garments-
for-export operations are 80% staffed by deaf and
deaf-mute workers is additional deduction from its
gross income equivalent to 25% of amount paid as
salaries to persons with disability (2013 Bar).
Basis: Magna Carta for Disabled Persons.

5. Vocational Guidance and Counselling

Wage Rate (2013 Bar)

GR: Handicapped workers are entitled to not less than

seventy-five percent (75%) of the applicable adjusted
minimum wage (Article 80, LC).

XPN: All QUALIFIED handicapped workers shall receive

the full amount of the minimum wage rate prescribed
herein pursuant to RA 7277 (Wage Order No. NCR-18,
Effective October 4, 2013).

NOTE: Generally, if a PWD is hired as an apprentice or

learner, he shall be paid not less than seventy-five
percent (75%) of the applicable minimum wage. Persons with Disability vs. Differently Abled

XPN: If the PWD, however is hired as a learner and Persons with Differently Abled
employed in piece or incentive-rate jobs during the Disability
training period, he shall be paid one hundred percent Earning capacity is Refers to all suffering
(100%) of the applicable minimum wage (Chan, 2014). impaired by age, or from restriction of
physical or mental different abilities as a
INCENTIVES of Employer Employing Disabled Workers deficiency or injury. result of mental, physical
or sensory impairment to
1. Entitled to an additional deduction, from their gross perform an activity in the
income, equivalent to 25% of the total amount paid as manner or within range
salaries and wages to disabled persons. Provided, considered normal for a
however, that such entities present proof as certified human being.
by the DOLE that disabled persons are under their Covers only workers. Covers all activities or
employ. Provided further, that the disabled Ee is endeavors.
accredited with the DOLE and the Department of Basis: loss/impairment of Basis: range of activity
Health as to his disability, skills and qualifications. earning capacity. which is normal for a
human being.
Loss due to injury or Restriction due to
physical or mental impairment of mental/
defect or age. physical/ sensory defect.
If hired, entitled to 75% If qualified, entitled to all
of minimum wage. terms and conditions as
Subject to definite qualified able-bodied
periods of employment. person.
Employable only when No restrictions on
necessary to prevent employment. Must get
curtailment of equal opportunity and no
employment unfair competition.
opportunity.