LABOR STANDARDS 1.

Those retail and service establishments regularly

LABOR STANDARDS employing not more than five(5) workers;
2. Field personnel and those whose time and performance
are unsupervised by the employer.
Coverage

Book III of the Labor Code on Labor Standards shall apply to

employees in all establishments and undertakings whether for Overtime Pay
profit or not, but not to the following:
Refers to the additional compensation for work performed beyond
1. Government employees; 8 hours and shall be compensated with additional:
2. Managerial employees
3. Field personnel; 1. Twenty-five percent (25%) of hourly rate – regular
4. Person in the personal service of another; working day.
5. Domestic helpers; 2. Thirty percent (30%) of the hourly rate – rest day or
6. Workers who are paid by results; holiday – special or regular.
7. Members of the family of the employer who are
depended on him for support; Basis: employee’s regular wage for work performed beyond eight
(8) hours within the worker’s 24-hour workday.
Managerial employees – refer to those whose primary duty
consists of the management of the establishment in which they are Work day: refers to the twenty-four (24) hour period commencing
employed or of a department or subdivision thereof, and to other from the time an employee regularly starts to work.
officers or members of the managerial staff.
Calendar day: refers to the twenty-four (24) hour commencing at
Field personnel – refer to non-agricultural employees who 12 am and ending at 11:59 pm the following day.
regularly perform their duties away from the principal place or
Undertime not offset by overtime: Undertime work on any
business or branch office of the employer and whose actual hours
particular day shall not be offset by overtime work on any other
in the field cannot be determined with reasonable certainty.
day. Permission given to the employee to go on leave on some
other day of the week shall not exempt the employer from paying
the additional compensation required.
Normal work hours
Emergency overtime work: An employee may be required by the
not exceed 8 hours. employer to perform overtime work in any of the following cases:

Hours worked shall include: 1. When the country is at war or when any other national or
local emergency has been declared by the National
1. All time during which an employee is required to be on Assembly or the Chief Executive;
duty or to be at a prescribed workplace; and 2. When it is necessary to prevent loss of life or property or
2. All time during which an employee is suffered or in case of imminent danger to public safety due to an
permitted to work. actual or impending emergency in the locality caused by
3. Rest periods and short duration during working hours serious accidents, fire, flood, typhoon, earthquake,
shall be counted as hours worked. epidemic, or other disaster or calamity;
3. When there is urgent work to be performed on machines,
installations, or equipment, in order to avoid serious loss
or damage to the employer or some other cause of
Meal Periods similar nature;
4. When the work is necessary to prevent loss or damage to
Subject to such regulations as the Secretary of Labor may perishable goods; and
prescribe, it shall be the duty of every employer to give his 5. Where the completion or continuation of the work
employees not less than sixty (60) minutes time-off for their started before the eighth hour is necessary to prevent
regular meals. serious obstruction or prejudice to the business or
operation of the employer.

Health Personnel An employee required to render emergency overtime work shall be

1. In locality has a population of at least 1 million or in a
hospital or clinic with a bed capacity of at least 100:
regular work hours is 8 hours a day for 5 days a week,
exclusive of time for meals.
2. Exception: when there are exigencies, the health
personnel may be required to work for 6 days or 48
hours in a week, in which case they are entitled to
additional compensation of 30% of their regular wage
on the 6th day
Night Shift Differential
Refers to the additional compensation of not less than ten percent
(10%) of an employee’s regular wage for every hour of work
done between 10:00pm and 6:00am, whether or not such period
is part of the worker’s regular shift.
paid additional compensation required.
Exception: Field personnel, if they regularly perform their duties
away from the principal or branch office or place of business or the
employer and whose actual hours of work in the field cannot be
determined with reasonable certainty
Weekly Rest Period and Holiday/Rest Day Pay
Refers to additional compensation for rest day, Sunday or holiday
work:
1. At least thirty percent (30%) of regular wage – an
employee is permitted to work on his scheduled rest day.
An employee shall be entitled to an additional
compensation on worked performed on Sunday only
when it is his established rest day.

Exceptions:
 2. At least thirty percent (30%) of regular wage – When worked or not," and irrespective of the number of working days
the nature of work is such that he has no regular therein.
workdays or no regular rest days can be scheduled,
additional compensation is entitled for work performed
on Sundays and holidays.
Holiday Pay
3. At least thirty percent (30%) of regular wage – work
The employer may require an employee to work on any holiday
performed on special holiday.
but such employee shall be paid a compensation to twice his
regular rate (200%).
4. At least fifty percent (50%) of regular wage – special
holiday falls on the employee’s scheduled rest day. Every worker shall be paid his regular daily wage during regular
holidays, except in retail and service establishments regularly
5. Where the collective bargaining agreement or other employing less that ten (10) workers.
applicable employment contract stipulates the payment
of a higher premium pay than that prescribed above, the Regular Holidays includes:
employer shall pay such higher rate.
1. New Year’s Day – January 1
Exclusion: This rule shall apply to all employees except: 2. Maundy Thursday
3. Good Friday
1. Government and any of the political subdivision, 4. Araw ng Kagitingan – April 9
including GOCC; 5. Labor Day – May 1
2. Retail and service establishments regularly employing 6. Eid’l Fitr – varies per year
less than ten (10) workers; 7. Independence Day – June 12
3. Domestic helpers and persons in the personal service of 8. Eid’l Adha – varies per year
another; 9. National Heroes Day – last Monday of August
4. Managerial employees; 10. Bonifacio Day- November 30
5. Field personnel, purely commissioned jobs, and those 11. Christmas Day – December 25
who are paid a fixed amount for performing work 12. Rizal Day Day – December 30
irrespective of the time consumed in the performance 13. The day designated by law for holding a general
thereof. election.
Right to Weekly Rest Day: It shall be the duty of every employer, Employee is Not Entitled to Holiday Pay:
whether operating for profit or not, to provide each of his
employees a rest period of not less than twenty-four (24) 1. If he was absent without pay on the day prior a regular
consecutive hours after every six (6) consecutive normal work holiday
days, 2. If he was absent without pay on the day prior to
successive regular holidays like Maundy Thursday and
The employer shall determine and schedule the weekly rest day of Good Friday.
his employees However, the employer shall respect the preference 3. If he was absent without pay on the day prior to his rest
of employees as to their weekly rest day when such preference is day or a special holiday that is followed by a regular
based on religious grounds. holiday.
4. If he was absent without leave on the day prior to
Employer may require work on rest day:
successive regular holidays but he worked in the first
1. In case of actual or impending emergencies caused by holiday, he is only entitled to holiday pay for the
serious accident, fire, flood, typhoon, earthquake, following day.
epidemic or other disaster or calamity to prevent loss of
Special Holidays
life and property, or imminent danger to public safety;
2. In cases of urgent work to be performed on the
machinery, equipment, or installation, to avoid serious Additional compensation of at least 30% of daily basic wage.
loss which the employer would otherwise suffer; Muslim Holidays- PD 1083 (Code of Muslim Personal Laws of
3. In the event of abnormal pressure of work due to special the Phils.
circumstances, where the employer cannot ordinarily be
expected to resort to other measures; 1. Amun Jadid- (New Year) - movable date
4. To prevent loss or damage to perishable goods; 2. Maulid-un-Nabi (Birthday of Prophet Muhammad) –
5. Where the nature of the work requires continuous Movable date
operations and the stoppage of work may result in 3. Lailatul Isra Wal Mi raj - ( Nocturnal journey
irreparable injury or loss to the employer; and andAscension of the Prophet Muhammad) - Movable
6. Under other circumstances analogous or similar to the date
foregoing as determined by the Secretary of Labor and
Employment. Proclamation No. 1236- Oct. 29, 2021

Monthly-Paid Employees Not Entitled To Additional Pay If Special (non-working) Days- E.O. 292, as amended by RA
Holiday Falls On A Sunday: 9492-

There is no provision of law requiring any employer to make such 1. Ninoy Aquino Day- Monday nearest August 21
adjustments in the monthly salary rate set by him to take account 2. All Saints Day - Nov. 1
of legal holidays falling on Sundays in a given year, or, contrary to 3. Chinese New Year- Feb. 1 EDSA People Power
the legal provisions bearing on the point, otherwise to reckon a Revolution Anniversary - Feb. 25
year at more than 365days. 4. Black Saturday - April16
5. Feast of Immaculate Conception of Mary - Dec. 8
What the law requires of employers opting to pay by the month is
to assure that "the monthly minimum wage shall not be less than Special (working Days)
the statutory minimum wage multiplied by 365 days divided by
twelve," and to pay that salary "for all days in the month whether 1. All Souls’ Day - Nov. 2
2. Christmas Eve - December 24
 3. Last day of the year – Dec. 31 May not be waived May be impliedly waived
through acquiescence
Regular vs. Special Holiday Commutable to cash Can be made not commutable
to cash
Regular Special
No work, With Pay No work, No Pay
Generally limited to the 10 Not exclusive since a law or Maternity Leave (RA 8282)
enumerated in the Labor Code ordinance may provide for
plus the two Muslim Holidays other special holidays ➢ shall be for one hundred five(105) days with full pay, and
Twice of worked Atleast 30% additional fifteen(15) days with full pay in case the female
employee qualifies as a solo parent under RA 8972, or the “ Solo
Parents’ Welfare Act of 2000”.
Faculty Members:

1. Regular Holiday – no pay. ➢ In case of miscarriage or emergency termination of pregnancy,

2. Special Holiday – no pay. the maternity leave shall be for sixty (60) days with full pay.

➢ In cases of live childbirth, an additional maternity leave of

thirty (30) days without pay, can be availed of, at the option of the
Service Incentive Leave female employee, provided the employer shall be given due notice

Every employee who has rendered at least one year of service
shall be entitled to a yearly service incentive leave of 5 days with
pay.
Exclusion I: This shall not apply to:
1. Those who are enjoying the benefit herein provided;
2. Those enjoying vacation leave with pay of at least five
days.
3. Those employed in establishments from granting this
benefit by the Secretary of Labor and Employment after
considering the viability or financial condition of such
establishment.
Definition of Terms:
 Pregnancy - refers to the period from conception up to
the time before actual delivery or birth of a child,
miscarriage, or emergency termination of pregnancy.
 Emergency termination of pregnancy- refers to
pregnancy loss on or after the 20th week of gestation,
including stillbirth.
 Miscarriage – refers to pregnancy loss before the 20 th
week of gestation.
Paternity Leave

Exclusion II: under DOLE Implementing Rules: Every married male employee in the private and public sectors
shall be entitled to a paternity leave of seven (7) days with full
1. Those of the government and any of its political
pay.
subdivisions, including GOCC;
2. Domestic helpers and persons in the personal service of This shall applied to the first four (4) deliveries (including
another; miscarriages) of the legitimate spouse with whom he is cohabiting.
3. Managerial employees/ Officers or members of
managerial staff/; The male employee applying for the paternity leave shall notify his
4. Field personnel, contract based jobs, purely employer of the pregnancy of his legitimate spouse and the
commissioned jobs, and those who are paid a fixed expected date of such delivery.
amount for performing work irrespective of the time
consumed in the performance thereof. Conditions for entitlement:
5. Those employed establishments regularly employing less
than ten (10) workers. 1. He is employed at the time of delivery of his child;
2. He has notified his employer of the pregnancy of his
At least One Year of Service: Not less than12 months, whether wide and her expected date of delivery (notification does
continuous or broken reckoned from the date the employee started not apply to miscarriage or abortion); and
working, including authorized absences and paid regular holidays 3. His wife has given birth, suffers a miscarriage or an
unless the working days in the establishment as a matter of practice abortion.
or policy, or that provided in the employment contract is less than
12 months, in which case said period shall be considered as one Availment: This may be enjoyed by the qualified employee
year. before, during, or after the delivery by his wife; provided, not
later than sixty (60) days after the date of said delivery.
Part-time Workers: They are entitled to full benefit of the yearly
five (5) days Service Incentive Leave. The law speaks of at least Benefits, coverage and non-convertibility:
one (1) year of service without any distinction for entitled to the 1. Seven (7) working days paternity leave;
said benefit. 2. Basic salary, all allowances and other monetary benefits
Service Incentive Leave vs. Vacation/Sick Leave 3. If the same is not availed of, the same is not convertible
to cash
Service Incentive Vacation/Sick
Mandatory labor standard Voluntary: it may result from
employer’s discretionary Solo Parent Leave
policy or CBA
Intended to alleviate the Intended to afford a laborer a This is granted to any solo parent or individual who is left alone
economic condition of the chance to get a much needed with the responsibility of parenthood.
workers for it acts as rest to replenish his worn out
replacement for regular energies and acquire new Parental leave of not more than seven (7) working days every
income that would not be vitality to enable him to year shall be granted to any solo parent employee who has
earned during such instance. efficiently perform his duties rendered service of at least one (1) year, which shall not be
and not merely to give him cumulative.
additional salary
The parent shall render full pay, consisting of basic salary and
mandatory allowances.
Conditions for Entitlement:
A solo parent employee shall be entitled to the parental leave,
provided that:
1. He/she has rendered at least one (1) year of service,
whether continuous or broken;
2. He/she has notified his/her employer that he/she will
avail himself/herself of it, within a reasonable period of
time; and
3. He/she has presented to his/her employer a Solo Parent
Identification Card, which may be obtained from the
DSWD office of the city or municipality where he/she
resides.
Termination of the Benefit
➢ A change in the status or circumstance, such that he/she is no
longer left alone with the responsibility of parenthood, shall
terminate his/her eligibility for this benefit.
Victims of Violence Against Women and their Children
(VAWC) Leave - RA 9262
At any time during the application of any protection order,
investigation, prosecution and/or trial of the criminal case, a victim
of VAWC who is employed shall be entitled to a fully paid leave
of up to ten (10) days in addition to other paid leaves.
The availment shall be at the option of the woman employee,
which shall cover the days that she has to attend to medical
concerns. Leaves not availed are noncumulative and
nonconvertible to cash.
Special Leave Benefits for Women – RA 9710
A woman employee having rendered continuous aggregate
employment service of at least six (6) months for the last twelve
(12) months shall be entitled to a special leave benefit of two (2)
months with full pay based on her gross monthly compensation
following surgery caused by gynecological disorders.
Female worker – member of SSS: entitled to the following leave
incentives:
1. 105 days with full pay
2. If qualified as a “solo parent,” with an additional 15 days
3. At the option of the female worker, she may avail an
additional 30 days, without pay
4. In case of miscarriage or emergency termination of
pregnancy – 60 days leave with pay.
Wages
Wage: paid to an employee shall mean the 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 service rendered or to be rendered and includes fair and
reasonable value, as determined by the Secretary of Labor and
Employment, of board, lodging, or other facilities customarily
furnished by the employer to the employee.
Payment of Wages:
➢ Wages shall be paid in cash, legal tender at or near the place of
work.
➢ Payment shall be made directly to the employees.
➢ Wages shall be given not less than once every two (2) weeks or
twice within a month at intervals not exceeding 16 days.
Fair Day’s Wage for a Fair Day’s Labor: There is no work
performed by the employee, there can be no wage or pay unless the
laborer was able, willing and ready to work but was prevented by
management or was illegally locked out, suspended or dismissed.
Facilities: are items of expense necessary for the laborer’s and his
family’s existence and subsistence. It is part of the wage and is
deductive from it.
Supplements: constitute extra remuneration or special privileges
or benefits given to or received by the laborers over and above
their ordinary earnings wages. It is independent of the wage and is
not deductible from it.
Non-diminution of Benefits: The rule provides that benefits being
given to employees cannot be taken back or reduced unilaterally
by the employer because the benefit become part of the
employment contract, written or unwritten.
This rule is applicable if it is shown that the grant of the benefit is
based on an express policy, or has ripened into practice over a long
period of time, and the practice is consistent and deliberate, and it
is not due to an error in the construction/application of a doubtful
or difficult question of law.
But even in cases of error. It should be shown that the correction is
being done soon after the discovery of the error.
Bonus: This is a supplement or employment benefit given under
certain conditions, such as success of the business or greater
production or output.
Rule: It is an amount granted voluntarily to an employee for his
industry and loyalty which contributed to the success and
realization of profits of the employer’s business.
Legal POV: It is not demandable and enforceable obligation unless
it was promised to be given without any conditions imposed for its
payment in which case it is deemed part of the wage
13th Month Pay
Refers to the additional income based on wage required by P.D.
851 which is equivalent to the 1/12 of the total basic salary
earned by an employee within a calendar year.
Payment: anytime not later than December 24.
Entitlement: All rank-and-file employees regardless of their
designation or employment status and irrespective of the method
by which their wages are paid, are entitled to this benefit,
provided, they have worked for at least one (1) month during the
calendar year.
Form: It may be in the form of Christmas bonus, midyear bonus,
profit sharing payments, and other cash bonuses amounting to not
less than 1/12 of the employees’ basic salary.
Not valid substitutes: Free rice, electricity cash, stock dividends,
Cost of Living Allowances.
Separation Pay – Art. 298 – 299
One-half (1/2) month pay for every year of service, if his/her
separation from the service is due to any of the following
authorized causes:
 1. Retrenchment to prevent losses (i.e., reduction of
personnel effected by management to prevent losses);
2. Closure or cessation of operation of an establishment not
due to serious losses or financial reverses; and
3. When the employee is suffering from a disease not
curable within a period of six (6) months and his/her
continued employment is prejudicial to his/her health or
to the health of his/her co-employees.

One-Month Pay per Year of Service

Separation from service is due to any of the following:

1. Installation by employer of labor-saving devices;

2. Redundancy
1. Impossible reinstatement of the employee to his or her
former position or to a substantially equivalent position

Basis: The computation of separation pay of an employee shall be

based on his/her latest salary rate.

Notice of Termination: Serve a written notice on the employee

and the Department of Labor and Employment through its regional
office having jurisdiction over the place of business at least one
(1) month before the intended date thereof.

Retirement Pay

Coverage:

1. Employees shall be retired upon reaching the age of sixty

(60) years or more but not beyond sixty-five (65) years
old [and have served the establishment for at least five
(5) years].
2. The COLA shall not be included in the computation of
retirement pay.

Exclusions: This benefit applies to all employees except:

1. government employees;
2. employees of retail, service and agricultural
establishments/operations regularly employing not more
than ten (10) employees.

Amount: The minimum retirement pay shall be equivalent to one-

half (1/2) month salary for every year of service, a fraction of at
least six (6) months being considered as one (1) whole year.

For the purpose of computing retirement pay, "one-half month

salary" shall include all of the following:

1. Fifteen (15) days salary based on the latest salary rate;

2. Cash equivalent of five (5) days of service incentive
leave;
3. One-twelfth (1/12) of the thirteenth-month pay. (1/12 x
365/12 = .083 x 30.41 = 2.5) Thus, “one-half month
salary” is equivalent to 22.5 days

Employees’ Compensation Program (ECP)

is a government program designed to provide a compensation

package to public and private sector employees or their dependents
in the event of work related sickness, injury, disability, or death.

LABOR CODE OF THE PHILIPPINES
Presidential Decree No. 442
May 01, 1974
A decree instituting a labor code, thereby revising and
consolidating labor and social laws to afford protection to labor,
promote employment and human resources development and
insure industrial peace based on social justice.
Preliminary Title
Chapter I
General Provisions
Article I. Name of Decree — This Decree shall be known as the
"Labor Code of the Philippines."
Article II. Date of Effectivity. - This Code shall take effect six (6)
months after its promulgation. (November 1, 1974).
Notes
This book retains the text of the Labor Code of the Philippines in
the original or in its latest legislative amendment or revision.
Provisions expressly repealed by subsequent laws are duly noted
for reference.
The current Department of Labor and Employment (DOLE) may
be referred to in some provisions as “Ministry of Labor and
Employment,” "Ministry of Labor,” or "Department of Labor."
Similarly, in line with Sec. 30 of E.O. No. 1 2ó, ”Reorganizing the
Ministry of Labor and Employment and for Other Purposes”
(1987), the titles of Minister, Deputy Minister, and Assistant
Minister shall be understood to refer to Secretary, Undersecretary,
and Assistant Secretary, respectively. The new terms and names
pertaining to DOLE offices and attached agencies likewise appear
in the footnotes.
This reflects the most recent amendments pursuant to recently
enacted laws, such as:
➢ R.A. No. 11360 (2019), An Act Providing that Service Charges
Collected by Hotels, Restaurants and Other Similar Establishments
be Distributed in Full to All Covered Employees, Amending for
the Purpose Presidential Decree No. 442, as Amended, Otherwise
Known as the “Labor Code of the Philippines.”
➢ R.A. No. 11210 (2019), “An Act Increasing the Maternity
Leave Period to One Hundred Five (105) Days for Female
Workers with an Option to Extend for an Additional Thirty (30)
Days Without Pay, and Granting an Additional Fifteen (15) Days
for Solo Mothers, and for Other Purposes.”
➢ R.A. No. 11058 (2018), “An Act Strengthening Compliance
with Occupational Safety and Health Standards and Providing
Penalties for Violations Thereof.”
➢ R.A. No. 10911 (2016), “An Act Prohibiting Discrimination
Against Any Individual in Employment on Account of Age and
Providing Penalties Therefor,” or the “Anti-Age Discrimination in
Employment Act.”
➢ R.A. No. 10917 (2016), “An Act Amending Certain Provisions
of R.A. No. 9547, Otherwise Known as An Act Strengthening and
Expanding the Coverage of the Special Program for Employment
of Students, Amending for the Purpose Provisions of R.A. No.
7323, Otherwise Known as the Special Program for Employment
of Students (SPES).”
➢ R.A. No. 10741 (2016), “An Act Strengthening the Operations
of the National Labor Relations Commission.”
➢ R.A. No. 10911 (2016), “An Act Prohibiting Discrimination
Against Any Individual in Employment on Account of Age and
Providing Penalties Therefor,” or the “Anti-Age Discrimination in
Employment Act.”
➢ R.A. No. 10917 (2016), “An Act Amending Certain Provisions
of R.A. No. 9547, Otherwise Known as An Act Strengthening and
Expanding the Coverage of the Special Program for Employment
of Students, Amending for the Purpose Provisions of R.A. No.
7323, Otherwise Known as the Special Program for Employment
of Students (SPES).”
➢ R.A. No. 10741 (2016), “An Act Strengthening the Operations
of the National Labor Relations Commission.”
➢ R.A. No. 10706 (2015), “An Act Protecting Seafarers Against
Ambulance Chasing and Imposition of Excessive Fees, and
Providing Penalties Therefor” or the Seafarers Protection Act
which provides that attorney’s fees or fees for representation /
appearance before the NLRC, NCMB, POEA, and any of the
DOLE offices, shall not exceed ten percent (10%) of the
compensation or benefit awarded to the seafarer of his/her heirs.
➢ R.A. No. 10691 (2015), “An Act Defining the Role of the
DOLE, LGUs, and Accredited NGOs in the Establishment and
Operation of the PESO, and the Operation of Job Placement
Offices in Educational Institutions, Otherwise Known as the PESO
Act of 1999.” The DOLE issued D.O. No. 157 (2016) to serve as
its Implementing Rules and Regulations, as mandated under Sec. 6
of the said law.
 Termination of employment can be initiated:

1. By the employer
a. Actual (Termination)
b. Constructive Dismissal
2. By the employee
a. Resignation

Just Causes For Termination ART. 297 [282] LCP

1. Serious Misconduct
2. Gross and Habitual Neglect of Duty
3. Fraud or Willful Breach of Trust; Loss of Confidence
4. Commission of a Crime or Offense by Employee
5. Other Analogous Cases

Authorized Causes for Termination ART. 298-299 [ 283-284]

LCP

1. Redundancy - employees’ positions are “superfluous”

because their work is duplicated or unnecessary (e.g.
installation of labor saving devices, merger of two
LABOR STANDARDS companies, streamlining of operations)
2. Retrenchment - serious and imminent losses force the
The employment relationship is governed by human and labor employer to let some employees go.
relations 3. Closure/Cessation of Business – the employer stops
doing business
Contract of Employment – It is where the employer-employee
relationship starts. If termination is of Authorized Cause, the employer should:

The 4-Point Test of an Employer-Employee Relationship 1. Payment of separation pay

2. Provide written notice to concerned employee thirty (30)
1. selection of employees days before the effectivity of the termination
2. payment of wages 3. Notice of Termination to DOLE thirty (30) days prior
3. power to dismiss effectivity
4. power to control employee’s conduct, output and means
of delivering the output When an employee is illegally terminated, he has the right to:

Right of Employee 1. Reinstatement

2. Backwages
1. Right to self-organization   3. Damages
2. Right to join a union or disaffiliate from it 4. Attorney’s Fees
3. Right to collective bargaining and negotiation
4. Right to Strike
5. Right to be given an opportunity to be heard in
disciplinary cases Department of Labor and Employment (DOLE)

Right of Employer
1. Right to reasonable returns on investments, expansion,
& growth
2. Right to select person to be hired
3. Right to adopt, implement, modify, amend, or revoke
reasonable employment regulations
4. Right to transfer employees   Department by virtue of Republic Act 4121. Since then, it has
5. Rights to determine work assignments, working
methods, time , place, & manner of work, tools to be
used and processes to be followed (TERMS &
CONDITIONS OF EMPLOYMENT)
6. Right to determine standard of work and levels of
efficiency
7. To introduce new or improved methods, facilities and
devices (e.g. labor-saving devices)
8. To create, merge, divide, reclassify & abolish
departments or positions in the company.
9. Right to sell or close business
10. Right to lockout in a labor dispute
11. Right to suspend or terminate employees
This agency was established as a small bureau in 1908 under the
Department of Commerce and Police. It had, for its principal
functions, the registration of laborers, the compilation and analysis
of statistics pertaining to labor market situation, the organization of
employment agencies, and the settlement of disputes.
December 8, 1933 - The Bureau of Labor was constituted as a
continuously evolved its thrusts and strategies to respond to
emerging socio-political and economic challenges while keeping
as primary concern the protection and promotion of the welfare of
local and overseas Filipino workers (OFWs).
Present - the DOLE is the national government agency mandated
to formulate policies, implement programs and serve as the policy-
coordinating arm of the Executive Branch in the field of labor and
employment.
Composition - DOLE has 16 regional offices, 83 Field Offices
with four (4) Satellite Offices, 38 overseas posts, 7 bureaus, 7 staff
services and 12 agencies attached to it for policy and program
supervision and/or coordination. It has a total manpower
complement of 8,518.

Termination DOLE supports the promotion of industrial peace through

education, expeditious and fair resolution of labor disputes,
enhancement of labor-management cooperation and promotion of
tripartism in policy and decision making in order to preserve jobs
and enhance the quality of employment in the country.
The Philippine Overseas Employment Agency (POEA) is a
government agency that is responsible for the administration of
overseas employment programs in the Philippines. It is also
responsible for safeguarding the rights and welfare of Filipino
workers abroad.
Work Basic Rights
The State shall protect labor, promote full employment, provide
equal work opportunity regardless of gender, race, or creed; and
regulate employee-employer relations.
➢ Male and female employees are entitled to equal compensation
for work of equal value and to equal access to promotion and
training opportunities.
➢ Discrimination against female employees is unlawful.
➢ Male and female employees are entitled to equal compensation
for work of equal value and to equal access to promotion and
training opportunities.
➢The minimum age of employment is 18 years for hazardous
jobs, and 15 years for non-hazardous jobs.
Security of Tenure- Art. 294 [ 279]
Every employee shall be assured security of tenure. No employee
can be dismissed from work except for a just or authorized cause,
and only after due process.
Just Cause - refers to any wrongdoing committed by an employee
including:
1. serious misconduct
2. willful disobedience of employers' lawful orders
connected with work
3. gross and habitual neglect of duty
4. fraud or willful breach of trust
5. commission of crime or offense against the employer,
employer's family member/s or representative
6. other analogous cases
Authorized Cause - refers to an economic circumstance not due to
the employee's fault, including:
1. the introduction of labor-saving devices
2. redundancy
3. retrenchment to prevent losses
4. closure or cessation of business
5. Disease as ground for termination(Art.299)
Due Process in cases of just cause involves:
1. notice to employee of intent to dismiss and grounds for
dismissal
2. opportunity for employee to explain his or her side
3. notice of decision to dismiss
Art. 295 [280] – Regular and Casual Employment
➢ The provisions of written agreement to the contrary
notwithstanding and regardless of the oral agreement of the parties,
an employment shall be deemed to be regular where the employee
engaged to performed activities which are usually necessary and
desirable in the usual business or trade of the employer;
➢ Except where the employment has been fixed for a specific
project or undertaking the completion or termination of which has
been determined at the time of the engagement of employee or;
➢ Where the work or services to be performed is seasonal in
nature and the employment is for the duration of the season.
Art. 296 [ 281]- Probationary Employment
➢ Probationary employment shall not exceed six (6) months from
the date the employee started working, unless it is covered by an
apprenticeship agreement stipulating a longer period.
➢ The services of an employee who has been engaged on a
probationary may be terminated for a just cause or when he fails to
qualify as a regular in accordance with reasonable standards made
known by the employer to the employee at the time of his
engagement
➢ An employee who is allowed to work after a probationary
period shall be considered as regular employee.
Art. 300 [285]- Termination by Employee
a) An Employee may terminate w/ out just cause the employee-
employer relationship by serving a written notice on the employer
at least one (1) month in advance. The employer upon whom no
such notice was served may hold the employee liable for damages
b) An employee may put an end to the relationship without just
serving any notice on the employer for any of the following just
causes:
1. Serious insult by the employer or his representative on
the honor and person of the employee
2. Inhuman or unbearable treatment accorded the employee
by the employer or his representative.
3. Commission of crime or offense by the employer or his
representative against the person of the employee or any
of the immediate members of his family; and
4. Other causes analogous to any of the foregoing
Definition of Terms
Work Days – refers to any day during which an employee is
regularly required to work.
Hours of work (Work hours) – refers to all the time an employee
renders actual work, or is required to be on duty or to be at a
prescribed workplace. Normal work hours in a day is 8 hours.
Compressed workweek –refers to one where the normal
workweek is reduced to less than six (6) days but the total number
of work-hours of 48 hours per week shall remain.
The normal workday is increased to more than eight (8) hours but
not to exceed twelve (12) hours, without corresponding overtime
premium.
Reduction of Workdays – refers to one where the normal
workdays per week are reduced but should not last for more than
six (6) months.
Rotation of Workers – refers to one where the employees are
rotated or alternately provided work within the workweek.
Forced Leave – refers to one where the employees are required to
go on leave for several days or weeks utilizing their leave credits if
there are any.
Broken-time Schedule – refers to one where the work schedule is
not continuous but the work-hour within the day or week remain.
Flexi-holidays Schedule – refers to one where the employees
agree to avail the holidays at some other days provided there is no
diminution of existing benefits as a result of such arrangement.

Prior to its implementation, the employer shall notify the

Department through the Regional Office which has jurisdiction
over the workplace, of the adoption of any of the above flexible
work arrangements, the notice shall be in the Report Form attach
to this advisory. The Regional Office shall conduct an ocular visit
to validate whether the adoption of the flexible work arrangements
is in accordance with this issuance.

Employment Conditions

Employment of Women

➢ Night work prohibition unless allowed by the Rules:

1. in industrial undertakings from 10PM to 6AM

2. in commercial/non-industrial undertakings from 12MN
to 6AM
3. in agricultural undertakings, at night time unless given
not less than 9 consecutive hours of rest.

Welfare facilities must be installed at the workplace such as seats,

separate toilet rooms, lavatories, and dressing rooms.

Employment of Children

➢ Minimum employable age is 15 years.

➢ Worker below 15 years of age should be directly under the sole

responsibility of parents or guardians; work does not interfere with
child's schooling/normal development.

➢ No person below 18 years of age can be employed in a

hazardous or deleterious undertaking.

Safe Working Conditions

➢ Employers must provide workers with every kind of on-the-job

protection against injury, sickness or death through safe and
healthful working conditions.

Right to Self-Organization and Collective Bargaining

➢ The right to self-organization is the right of every worker, free

of any interference from the employer or from government, to
form or join any legitimate worker's organization, association or
union of his or her own choice.

➢ An employee is eligible for membership in an appropriate union

on the first day of his or her employment. PRICE TAG REQUIREMENT OF CONSUMER
ACT OF THE PHILIPPINES
➢ The result of collective bargaining is a contract called collective
bargaining agreement (CBA). A CBA generally has a term of five Article 81 of the Republic Act 7394, otherwise known as the
years. Consumer Act of the Philippines.
It is a process where the parties agree:

1. to fix and administer terms and conditions of Price tag - means any device, written, printed, affixed or attached
employment which must not be below the minimum to a consumer product or displayed in a consumer repair or service
standards fixed by law establishment for the purpose of indicating the retail price per unit
2. to set a mechanism for resolving their grievances. or service.

Price Tag Requirement – It shall be unlawful to offer any

consumer product for retail sale to the public without an
appropriate price tag, label or marking publicly displayed to
indicate the price of each article and said products shall not be sold
at a price higher than that stated therein and without discrimination
to all buyers:
Lumber sold: Provided, that lumber sold, displayed or offered for
sale to the public shall be tagged or labeled by indicating thereon
the price and the corresponding official name of the wood:

Small consumer products: Provided, further, that if consumer

products for sale are too small or the nature of which makes it
impractical to place a price tag thereon price list placed at the
nearest point where the products are displayed indicating the retail
price of the same

One Price Tag Requirement - Every retailer is required to

display a price tag to indicate the price of each consumer good
and/or services, as required in Articles 8.1 to 83 of the Consumer
Act of the Philippines or R.A. No. 7394.

The price tag must be written clearly, indicating the price of the
consumer product including Value Added Tax (VAT) whenever
the consumer product is VATABLE. Service charge, if any, shall
not be included in the price tag. The said product or service may
not be sold at a price higher than that stated therein;

Manner of Placing Price Tags – Price tags, labels or markings

must be written clearly, indicating the price of the consumer
product per unit in pesos and centavos.

Regulations for Price Tag Placement – The concerned

department shall prescribe rules and regulations for the visible
placement of price tags for specific consumer products and
services. There shall be no erasures or alterations of any sort of
price tags, labels or markings.

Penalties:

Fine P 200 – P 5,000

Imprisonment 1 month – 6 months, or both

A second conviction shall also carry with it the penalty of

revocation of business permit and license.