Reviewer Art.
100) Benefits being given to Ees cannot be
“Equal Pay For Equal Work” Principle
Persons who work with substantially equal
qualifications, skill, effort and responsibility,
under similar conditions, should be paid similar
salaries.
Applicability of The Term Wages
GR: It applies to all employees.
XPNs: 1. Farm tenancy or leasehold;
2. Household or domestic helpers, including
family drivers and persons working in the
personal service of another;
3. Home workers engaged in needlework or in
any cottage industry duly registered in
accordance with law; (LC, Art. 98)
4. Workers in any duly registered cooperatives
when so recommended by the Bureau of
Cooperative Development and upon approval of
the SLE;
5. Workers of a barangay micro business
enterprise; (R.A. 9178)
6. Retail and service establishments regularly
employing not more than 10 workers. (RA 6727,
Sec. 4)
FACILITIES
Facilities As Part Of Wages
Facilities include those articles or services of
benefit to the employee and his family such as
rice ration, housing, recreational facilities,
medical treatment to dependents, school
facilities, cost of light, water, fuel, meals or
snacks.
DETERMINATION OF FACILITIES BENEFICIAL TO
EMPLOYER OR EMPLOYEE
It is significant to determine when articles or
services are beneficial to an employee because
those articles or services which are not of
benefit to the employee cannot be charged
against the cash wage of an employee. Articles
or tools of the trade that are primarily for the
benefit of the employer or necessary to the
conduct of his business cannot be deducted
from the employer's wages because they are
not considered as facilities. (Sec.5,RuleVII,Book
III, Rules Implementing the Labor Code).
Charging of Cost of Facilities
In order that the cost be charged against the Ee,
his/her acceptance of such facilities must be
voluntary.
MINIMUM WAGE NON-NEGOTIABLE; NON WAIVABLE
The minimum wage fixed by law is mandatory;
thus it is non-waivable and nonnegotiable. The
enactment is compulsory in nature in order to
ensure decent living conditions.
NON-DIMINUTION OF BENEFITS
GR: Nothing in the Labor Code shall be construed to
eliminate or in any way diminish supplements,
or other employee benefits being enjoyed at
the time of the promulgation of the Code. (LC,
taken back or reduced unilaterally by the Er
because the benefit has become part of the
employment contract, whether written or
unwritten.
XPN:
1. Correction of error 2. Contingent benefit or
conditional bonus 3. Wage order compliance
4. Benefits on reimbursement basis
5. Reclassification of position 6. Negotiated
benefits 7. Productivity incentives
NOTE: If the error is not corrected in a
reasonable time, it ripens into a company policy
and Ees can demand it as a matter of right.
APPLICABILITY OF THE RULE ON NONDIMINUTION OF
BENEFITS
It is applicable if it is shown that:
1. Grant of benefit is based on a policy or has
ripened into a practice over a long period;
2. Practice is consistent and deliberate;
3. Practice is not due to an error in the
construction or application of a doubtful or
difficult question of law; and,
4. It is done unilaterally by the employer.
BONUS
Refers to the payment in excess of regular or
guaranteed wages. It is granted to an employee
for his tangible contribution to the success of
the employer’s business, without which the
employer may not realize bigger profits. The
contribution may be in the form of an
employee’s commitment to the job, his industry
and loyalty.
GR: The payment of bonus is a management function,
not a demandable and enforceable obligation,
which cannot be enforced upon the employer
who may not be obliged to assume the onerous
burden of granting bonuses or other benefits
aside from the employee’s basic salaries or
wages.
XPN: Bonuses can be demanded as a matter of right if:
a. Given without any condition; hence, part of
the wage or salary.
b. Grant thereof is a result of an agreement
such as the CBA.
c. Given on account of company policy or
practice
d. Grant is mandated by law.
STOPLOCK GATE OR NONCHARGEABILITY CLAUSE
This doctrine was resounded in this manner: the
CBA provides "It is hereby agreed that these
salary increases shall be exclusive of any wage
increase that may be provided by the law as a
result of any economic change.“
The Supreme Court ruled that the above
provision in the CBA is clear that the salary
increases shall not include any wage increase
that may be provided by law as a result of
economic change. The CBA needs no
interpretation as it is not ambiguous. Thus, the
wage increase granted by the petitioner to its
 employees under the CBA cannot be considered
as creditable benefit.
BENEFIT ACQUIRED THROUGH COMPANY PRACTICE
An employee can demand as a matter of right
benefits granted by the employer for a
considerable, long period of time as the same
may ripen into a company practice
PAYMENT BY RESULTS
Workers paid by result are:
1. Paid based on the work completed; and
2. Not on the time spent in working. Pay of
these workers is calculated not on the basis of
time spent on the job but of the quantity and
quality or the kind of work they turn out.
It includes those who are paid on piece work,
“takay” or task basis, who shall be entitled to receive
not less than the prescribed statutory minimum wage
for an eight-hour work or a proportion thereof for less
than eight hours work
CATEGORIES OF WORKERS PAID BY RESULTS
As to Presence of Control
1. Supervised (Piece-rate worker) - works
directly under the supervision of the employer.
2. Unsupervised (Takay or Pakyaw)- works
away from the employer’s premises.
As to Rate of Payment
1. Those who are paid piece rates which are
prescribed in Piece Rate Orders issued by DOLE
–Wages or earnings are determined by simply
multiplying the number of pieces produced by
the rate per piece.
2. Those who are paid output rates which are
prescribed by the Er and are not yet approved
by the DOLE –The number of pieces produced is
multiplied by the rate per piece as determined
by the Er.
PAYMENT OF WAGES
Forms of Payment
GR: The laborer’s wages shall be paid in legal currency
(Art. 1705, NCC) No employer shall pay the
wages of an employee by means of:
1. Promissory notes; 2. Vouchers; 3. Coupons; 4.
Tokens; 5. Tickets; 6. Chits; or 7. Any object
other than legal tender.
XPN: PAYMENT OF WAGES BY CHECK OR MONEY
ORDER SHALL BE ALLOWED IF:
1.It is customary on the date of the effectivity of
the Code;
2.Necessary because of special circumstances as
specified in the regulation issued by the SLE; or,
3. Stipulated in the CBA. (LC,Art.102) 4.Where
the following conditions are met:
a. There is a bank or other facility for
encashment within a radius of one (1)
kilometer from the workplace;
b. The employer or any of his agents or
representatives does not receive any
pecuniary benefit directly or indirectly
from the arrangement;
c. The employees are given reasonable
time during banking hours to withdraw
their wages from the bank which time
shall be considered as compensable
hours worked if done during working
hours; and,
d. The payment by check is with the
written consent of the employees
concerned if there is no collective
agreement authorizing the payment of
wages by bank checks
TIME OF PAYMENT
GR: Wages shall be paid:
1. At least once every two (2) weeks, or,
2. Twice a month at intervals not exceeding
sixteen (16) days.
XPN:
1. On account of force majeure or circumstances
beyond the employer’s control, payment shall be
made immediately after such force majeure or
circumstances have ceased;
2. If engaged to perform a task which cannot be
completed in two (2) weeks shall be subject to the
following conditions, in the absence of a CBA or
arbitration award:
a. That payments are made at intervals not
exceeding sixteen (16) days, in proportion to
the amount of work completed;
b. That final settlement is made upon
completion of the work. (LC,Art.103)
PROHIBITIONS REGARDING WAGES
Non-Interference in Disposal of Wages
Employer shall not limit or interfere with the
freedom of any employee to dispose of his
wages. He shall not force, compel or oblige his
Ees to purchase merchandise, commodities or
other property from any other person, or
otherwise make use of any store services of
such employer or any other person. (LC,Art.112)
WAGE DEDUCTION
GR: No employer, in his own behalf or in behalf of any
person, shall make any deduction from the
wages of his employees (LC,Art.113).
XPNs:
1. Where the worker is insured with his
consent by the employer; and,
2. For union dues, in cases where the right of
the worker or his union to check off has
been recognized by the employer or
authorized in writing by the individual
worker concerned (LC,Art.113). NOTE: Art.
241(o) of the LC provides that special
assessments may be validly checked-off
provided that there is an individual written
authorization duly signed by every
employee.
3. In cases where the employer is authorized
by law or regulations issued by the SLE:
 a. Deductions for value of meals and
facilities freely agreed upon;
b. In case where the employee is
indebted to the employer where such
indebtedness has become due and
demandable; (NCC, Art. 1706)
c. In court awards, wages may be
subject of execution or attachment, but
only for debts incurred for food, shelter,
clothing, and medical attendance;
d. Taxes withheld pursuant to the Tax
Code;
e. Salary deduction of a member of a
legally established cooperative;
f. Deductions for SSS, PhilHealth and
Pag-ibig premiums;
g. Deductions for loss or damage;
h. Deductions made with the written
authorization of the Ee for payment to a
third person;
i. Deductions as disciplinary measures
for habitual tardiness;
j. Agency fees. (LC, Art. 248[e])
The law prohibits the employer from making
deductions from the wages of an employee. The
evil sought to be prevented is to forestall the
commission of unwarranted practices of
employers by making unnecessary deductions
without employee's knowledge or authorization
DEPOSIT FOR LOSS OR DAMAGE
GR: Employer shall not require his worker to make
deposits from which deductions shall be made
for the reimbursement of loss of or damage to
tools, materials, or equipment supplied by the
employer. (LC, Art.114)
XPN: Er is engaged in such trade or business where the
practice of making deductions or requiring
deposits is a recognized one, or is necessary or
desirable as determined by the SOLE.
• Requisites for Payment Of Loss And Damage
1. It is clearly shown that the employee is
responsible for the loss or damage;
2. The employee is given reasonable
opportunity to show cause why deduction
should not be made;
3. The total amount of such deductions is fair
and reasonable and shall not exceed the actual
loss or damage; and,
4. The deduction from the wages of the
employee does not exceed 20% of his wages in
a week
WAGE STUDIES, WAGE AGREEMENTS AND WAGE
DETERMINATION
Minimum wage is the lowest wage rate fixed by
law that an employer can pay his workers. (RA
6727, Implementing Rules) Compensation
which is less than such minimum rate is
considered an underpayment that violates the
law. Wage Order This is an order issued by the
RTWPB whenever conditions in the region so
warrant after investigating and studying all
pertinent facts and based on the standards and
criteria prescribed by the Labor Code.
FREQUENCY OF WAGE ORDER
G.R: Any wage order issued by the RTWPB may not be
disturbed for a period of 12 months from its
effectivity, and no petition for wage increase
shall be entertained within the said period.
XPNS: Supervening conditions, e.g. extraordinary
increase in prices of petroleum products and
basic goods/services, demand a review of the
minimum wage rates as determined by the
Board. The Board shall proceed to exercise its
wage fixing function even before the expiration
of the said period
EFFECTIVITY OF WAGE ORDER
A Wage Order shall take effect 15 days after its
publication in at least one (1) newspaper of
general circulation in the region.
NOTE: It is the RTWPB who approves the wage
order, not the NWPC.
METHODS OF MINIMUN WAGE ADJUSTMENT
METHODS OF FIXING
a. Floor Wage Method- fixing a determinate
amount to be added to the prevailing statutory
minimum wage rates (e.g. setting P25 increase
for min. wage rates).
b. Salary-Ceiling Method- Wage adjustment to
be applied to EEs receiving a certain
denominated salary or workers being paid more
than existing min. wage (e.g. WO granting
P25 increase to those earning up to P250)
WAGE DISTORTION/RECTIFICATION
A situation where an increase in wage results in
the elimination or severe contraction of
intentional quantitative differences in wage or
salary rates between and among- the
employee-groups in an establishment as to
effectively obliterate the distinctions embodied
in such wage structure based on skills, length of
service or other logical bases of differentiation
(LC,Art.124).
Elements of Wage Distortion
1. An existing hierarchy of positions with
corresponding salary rates.
2. A significant change or increase in the salary
rate of a lower pay class without a
corresponding increase in the salary rate of a
higher one;
3. The elimination of the distinction between
the 2 groups or classes; and
4. The WD exists in the same region of the
country
• In mandating an adjustment, the law did not require
that there be an elimination or total abrogation of
quantitative wage or salary differences; a severe
contraction is enough
CAUSES
Wage distortions have often been the result of:
1. Government decreed increases in minimum
wages
2. Merger of two companies (with differing
classifications of employees and different wage
rates) where the surviving company absorbs all
the employees of the dissolved corporation,
3. Wage distortion arose because the effectivity
dates of wage increases given to each of the
two classes of employees (rank-and-file and
supervisory) had not been synchronized in their
respective CBAs
SERVICE INCENTIVE LEAVE
Service incentive leave (SIL) It is 5-days leave
with pay for every Ee who has rendered at least
1 year of service. It is commutable to its money
equivalent if not used or exhausted at the end
of the year.
“At least 1 year of service”: Service for not less
than 12 months, whether continuous or broken
reckoned from the date the Ee started working,
including authorized absences and paid regular
holidays unless the working days in the
establishment as a matter of practice or policy,
or that provided in the employment contract is
less than 12 months, in which case said period
shall be considered as one year.
(Sec.3,RuleV,Book III,IRR)
RIGHT TO SIL
GR: Every employee who has rendered at least 1 year of
service shall be entitled to a yearly SIL of 5 days
with pay. Leave pay means an employee gets
paid despite absence from work (1 Azucena,
2016 page 295).
Part-time Workers Are Entitled To The Full Benefit Of
The Yearly 5-Day Service Incentive Leave:
A part-time worker is entitled to service
incentive leave whether the service within 12
months is continuous or broken or where the
working days in the employment contract as a
matter of practice or policy is less than 12
months. The availment and commutation of the
same can be proportionate to the daily work
rendered and the regular daily salary.
ENTITLEMENT OF PIECE-RATE WORKERS TO SIL
Piece-rate workers are entitled to the full
benefit of the yearly 5-day service incentive
leave. Under P.D. 851 or the SIL Law, the
exclusion from its coverage of workers who are
paid on a purely commission basis is only with
respect to field personnel. Ees engaged on task
or contract basis or paid on purely commission
basis are not automatically exempted from the
grant of SIL, unless, they fall under the
classification of field personnel
BASIS FOR CASH CONVERSIO
The basis shall be the salary rate at the date of
commutation. The availment and commutation
of the SIL may be on a pro-rata basis
MATERNITY LEAVE
Coverage:
This benefit applies to all female employees,
whether married or unmarried. A covered
female Ee, regardless of her civil status, is
entitled to a daily maternity benefit equivalent
to 100% of her present basic salary, allowances
and other benefits or the cash equivalent of
such benefits for 105days (extendable to 30
w/o pay, additional 15 days for solo parents) RA
11210.
REQUIREMENTS IN ORDER THAT MATERNITY BENEFITS
MAY BE CLAIMED
1. The female member should be employed at
the time of delivery, miscarriage or abortion;
2. She must have notified SS through her
employer; and
3. She has paid at least three months of
maternity contributions within the 12-month
period immediately before the semester of
contingency.
Entitlement to maternity leave benefits is not
dependent on the civil status of the pregnant
woman. Entitlement to maternity benefit
forecloses entitlement to sick benefit.
MATERNITY LEAVE BENEFITS EXCLUDED IN THE
COMPUTATION OF 13TH MONTH PAY
Maternity leave benefits and other benefits
provided by Social Security Act are granted to
employees in lieu of wages. Thus, the same are
excluded in computing the employee's 13th
month pay for the calendar year.
SELF-EMPLOYED MEMBERS NOT ENTITLED TO
MATERNITY LEAVE BENEFITS; EXCEPTION
Self-employed members not entitled to
maternity leave benefits since Voluntary or self-
employed members have no employers to remit
such contributions. However, if they have
qualifying contributions using the new
contribution schedule, they shall be entitled to
maternity benefits.
PATERNITY LEAVE
It refers to the benefits granted to a married
male Ee allowing him not to report for work for
7 days but continues to earn the compensation
therefore, on the condition that his spouse has
delivered a child or suffered a miscarriage for
purposes of enabling him to effectively lend
support to his wife in her period of recovery
and/or in the nursing of the newly-born child. In
the even it is not availed of, such leave is not
convertible to cash.
CONCEPT OF PATERNITY LEAVE BENEFITS
Every married male Ee in the private and public
sectors shall be entitled to a paternity leave of 7
 days with full pay for the first 4 deliveries of the
legitimate spouse with whom he is cohabiting.
CONDITIONS FOR ENTITLEMENT TO PATERNITY LEAVE
The male Ee is:
1. Legally married to, and is cohabiting with the
woman who delivers the baby;
2. Ee of private or public sector;
3. Maybe availed of only for the first 4 deliveries
of the legitimate spouse with whom he is
cohabiting; and
4. Notify his Er of the pregnancy of his
legitimate spouse and the expected date of
such delivery
PARENTAL LEAVE FOR SOLO PARENTS
Governing Law: R.A.No.8972 (The Solo Parent’s
Welfare Act of 2000)
Parental leave Leave benefits granted to a solo
parent to enable him/her to perform parental
duties and responsibilities - where physical
presence is required. In addition to leave
privileges under existing laws, parental leave of
not more than 7 working days every year shall
be granted to any solo parent Ee who has
rendered service of at least 1 year.
CONDITIONS FOR ENTITLEMENT OF PARENTAL LEAVE
1. He or she must fall among those referred to
as a solo parent;
2. Must have the actual and physical custody of
the child or children;
3. Must have at least rendered service of one
year to his or her employer;
4. He or she must remain a solo parent;
5. He or she must have a SOLO PARENT ID
issued by the DSWD; and
6. He must notify the employer of the availment
thereof within reasonable period of time.
PERSONS CONSIDERED A SOLO PARENT ENTITLED TO
PARENTAL LEAVE
Any individual who falls under any of the ff. categories:
1. A woman who gives birth as a result of rape
and other crimes against chastity even without
a final conviction of the offender; Provided,
That the mother keeps and raises the child;
2. Parent left solo or alone with the
responsibility of parenthood due to:
a. Death of spouse;
b. Detention or service of sentence of
spouse for a criminal conviction for at
least 1 yr;
c. Physical and/or mental incapacity of
spouse
d. Legal separation or de facto
separation from spouse for at least 1
year as long as he/she is entrusted with
the custody of the children;
e. Nullity or annulment of marriage as
decreed by a court or by a church as
long as he/she is entrusted with the
custody of the children;
f. Abandonment of spouse for at least 1
yr;
Unmarried mother/father who has preferred
to keep and rear his or her child/children
instead of:
a. having others care for them or
b. give them up to a welfare institution;
Any other person who solely provides:
a. parental care and
b. support to a child or children;
Any family member who assumes the responsibility of
head of family as a result of the:
a. death, b. abandonment, c. disappearance or
d. prolonged absence of the parents or solo
parent.
TERMINATION OF THE BENEFIT
A change in the status or circumstance of the
parent claiming benefits under this Act, such
that he/she is no longer left alone with the
responsibility of parenthood, shall terminate
his/her eligibility for these benefits. (Sec. 3, RA
8972)
LEAVES FOR VICTIMS OF VIOLENCE AGAINST WOMEN
AND THEIR CHILDREN (R.A. 9262)
Violence against women and their children
refers to any act or a series of acts committed
by any person against a woman who is his wife,
former wife, or against a woman with whom
the person has or had a sexual or dating
relationship, or with whom he has a common
child, or against her child whether legitimate or
illegitimate, within or without the family abode,
which result in or is likely to result in physical,
sexual, psychological harm or suffering, or
economic abuse including threats of such acts,
battery, assault, coercion, harassment or
arbitrary deprivation of liberty
A female Ee who is a victim of violence
(physical, sexual, or psychological) is entitled to
a paid leave of 10 days in addition to other paid
leaves (R.A. 9262, Anti-VAWC Act). This is
known as the battered woman leave.
LEAVE ENTITLEMENT
It allows the victim of violence, which may be
physical, sexual, or psychological, to apply for
the issuance of a protection order. If such victim
is an employee, she is entitled to a paid leave of
up to 10 days in addition to other paid leaves
under the Labor Code, other laws and company
policies.
The employee has to submit a certification from
the Punong Barangay or Kagawad, prosecutor
or clerk of court that an action under RA 9262
has been filed and is pending. For government
employees in addition to the certification, the
employee concerned must file an application
for leave citing as basis R.A.9262.
NONCUMULATIVE/ NON-CONVERSION TO CASH
The availment of the ten day-leave shall be at
the option of the woman employee, which shall
cover the days that she has to attend to medical
and legal concerns. Leaves not availed of are
noncumulative and not convertible to cash.
SPECIAL LEAVE BENEFIT FOR WOMEN
A woman Ee having rendered continuous
aggregate employment service of at least 6
months for the last 12 months shall be entitled
to a special leave benefit of 2 months with full
pay based on her gross monthly compensation
following surgery caused by gynecological
disorders
CONDITIONS TO CLAIM BENEFIT
1. She has rendered at least six (6) months
continuous aggregate employment service for
the last twelve (12) months prior to surgery;
2. In the event that an extended leave is
necessary, the female employee may use her
earned leave credits; and
3. This special leave shall be non-cumulative
and nonconvertible to cash
GYNECOLOGICAL DISORDERS
Refers to disorders that would require surgical
procedures such as, but not limited to,
dilatation and curettage and those involving
female reproductive organs such as the vagina,
cervix, uterus, fallopian tubes, ovaries, breast,
adnexa and pelvic floor, as certified by a
competent physician. For purposes of the Act
and these Rules and Regulations, gynecological
surgeries shall also include hysterectomy,
ovariectomy, and mastectomy
FREQUENCY OF AVAILMENT
A female employee can avail of the special leave
benefit for every instance of surgery due to
gynecological disorder for a maximum total
period of 2 months per year (Sec. 6, DO 112-A,
DOLE, Series of 2012).
Special Leave Benefit vis-à-vis SSS Sickness
Benefit The SLB is different from the SSS
sickness benefit. The former is granted by the
employer in accordance with RA 9710.
It is granted to a woman employee who has
undergone surgery due to gynecological
disorder. The SSS sickness benefit, on the other
hand, is administered and given by the SSS in
accordance with RA 1161 as amended by RA
8282. [Sec.7,D.O.No.112,as amended]
BATTERED WOMAN LEAVE
[RA 9262 (Anti-Violence Against Women and
Their Children Act of 2004 or VAWC)] Victims
of any of the acts covered by VAWC shall be
entitled to take a paid leave of absence up to
ten (10) days in addition to other paid leaves
under the Labor Code and Civil Service Rules
and Regulations, extendible when the necessity
arises as specified in the protection order
[Sec.43,RA 9262]
Acts covered by VAWC
1. “Physical violence” - refers to acts that
include bodily or physical harm
2. “Sexual violence” - refers to an act which is
sexual in nature, committed against a woman or
her child.
3. “Psychological violence” - acts or omissions
causing or likely to cause mental or emotional
suffering of the victim.
4. “Economic abuse” - acts that make or
attempt to make a woman financially
dependent.
WOMEN WORKERS
Discriminatory Acts Against Women EState Policy On
Non-Discrimination Against Women
The State condemns discrimination against
women in all its forms and pursues by all
appropriate means and without delay the policy
of eliminating discrimination against women in
keeping with the Convention on the Elimination
of All Forms of Discrimination Against Women
(CEDAW) and other international instruments
consistent with Philippine law. The State shall
accord women the rights, protection, and
opportunities available to every member of
society (R.A. 9710 or the Magna Carta of
Women, Sec.2).
DISCRIMINATORY ACTS AGAINST WOMEN
EMPLOYEE
1. Discrimination with respect to the terms and
conditions of employment solely on account of
sex.
a. Discrimination in pay – Payment of a
lesser compensation including wage,
salary or other forms of remuneration
and fringe benefits, to a female
employee as against a male employee;
b. Discrimination in employment
opportunity – favoring a male
employee over a female employee with
respect to promotion, assignment,
transfer, training opportunities, study
and scholarship grants solely in account
or their sexes;(LC,Art.133)
c. Discrimination in hiring – favoring a
male applicant with respect to hiring
where the particular job can equally be
handled by a woman;
d. Discrimination in dismissal –
favoring a male employee over a female
employee with respect to dismissal of
personnel or the application of the last
in / first out principle or other
retrenchment policy of the employer.
1. Stipulating, whether as a condition for
employment or continuation of employment:
a. That a woman employee shall not get
married; or
 b. That upon marriage, such woman
employee shall be deemed resigned or
separated
2.Dismissing, discriminating or otherwise
prejudice a woman employee by reason of her
being married (LC,Art.134).
STANDARD OF REASONABLE TEST
The Er has the burden of proof to prove the
existence of a reasonable business necessity
that would justify an employment policy.
STIPULATION AGAINST MARRIAGE
It shall be unlawful for an employer to require
as a condition of employment or continuation
of employment that a woman employee shall
not get married, or to stipulate expressly or
tacitly that upon getting married, a woman
employee shall be deemed resigned or
separated, or to actually dismiss, discharge,
discriminate or otherwise prejudice a woman
employee merely by reason of her marriage (LC,
Art. 134).
NO-SPOUSE EMPLOYMENT POLICY
It is a policy banning spouses from working in
the same company. Generally, spouses are
allowed from working in the same company,
provided it is not in the same department,
where there is direct supervision or control. In
case spouses are in the same department, one
of them may be reassigned to another
department. XPN: Bona Fide Occupational
Qualification (BFOQ) Rule
Where the job itself necessarily requires a
particular question, then the job applicant or
worker who does not possess it may be
disqualified on that basis. This will not be
unlawful discrimination
NOTE: There must be a finding of any BFOQ to
justify an Er’s no spouse employment rule, the
Er must prove two factors:
1. That the employment qualification is
reasonably related to the essential
operation of the job involved; and
2. That there is a factual basis for believing
that all or substantially all persons
meeting the qualification would be
unable to properly perform the duties of
the job
PROHIBITED ACTS
It shall be unlawful for any employer to:
1. Deny any woman employee benefits
provided by law.
2. Discharge any woman for the purpose of
preventing her from enjoying any of the
benefits provided by law.
3. Discharge such woman on account of her
pregnancy, or while on leave or in confinement
due to her pregnancy.
4. Discharge or refuse the admission of such
woman upon returning to her work for fear that
she may again be pregnant. (LC, Art. 135)
ANTI-SEXUAL HARASSMENT ACT (R.A. 7877)
Requisites:
1. Act is committed in a work, education, or
training-related environment;
2. The doer, the harasser, is any person who has
authority, influence or moral ascendancy over
another;
3. Doer demands or requests, or requires a
sexual favor from the victim;
4. It does not matter whether such demand is
accepted or not. (RA 7877,Sec.3)
The definition of sexual harassment does not
require a categorical demand or request for
sexual favor.
It may be discerned, with equal certitude, from
the acts of the offender. Likewise, it is not
essential that the demand, request or
requirement be made as a condition for
continued employment or for promotion to a
higher position. It is enough that the
respondent’s acts result in creating an
intimidating, hostile or offensive environment
for the employee
PLACES WHERE SEXUAL HARASSMENT ARE
COMMITTED
1. In a work-related or employment
environment.
ELEMENTS: a. The sexual favor is made as
a condition in the hiring or in the
employment, re-employment or continued
employment of said individual, or in
granting said individual favorable
compensation, terms, conditions,
promotions, or privileges; or the refusal to
grant the sexual favor results in limiting,
segregating or classifying the employee
which in a way would discriminate, deprive
or diminish employment opportunities or
otherwise adversely affect said employee
(Quid Pro Quo Sexual Harassment);
b. The above acts would impair the
employees’ rights or privileges under
existing labor laws; or
c. The above acts would result in an
intimidating, hostile, or offensive
environment for the employee (Hostile
Environment Harassment).
2. In an education or training environment
ELEMENTS: a. Sexual harassment is
employed:
i.Against one who is under the
care, custody or supervision of
the offender;
ii. Against one whose
education, training,
 apprenticeship or tutorship is
entrusted to the offender;
c. When sexual favor is made a condition to
the giving of a passing grade, or the
granting of honors and scholarships, or the
payment of a stipend, allowance or other
benefits, privileges, or considerations; or c.
When sexual advances result in an
intimidating, hostile or offensive
environment for the student, trainee or
apprentice.
LIABILITY OF THE ER, HEAD OF OFFICE, EDUCATIONAL
OR TRAINING INSTITUTION
Er shall be solidarily liable for damages arising from the
acts of Sexual Harassment committed in the
employment, education or training environment,
provided:
1.The Er or head of office, educational or
training institution is informed of such acts by
the offended party; and
2. No immediate action is taken thereon (R.A.
7877, Sec. 5). Nothing under R.A. 7877 shall
preclude the victim of work, education or
training-related Sexual Harassment from
instituting a separate and independent action
for damages and other affirmative relief. An act
of Sexual Harassment may give rise to civil,
criminal and administrative liability on the part
of the offender, each proceeding independently
of the others.
Prescription of action: The civil, criminal and
administrative action shall prescribe in 3 years.
EMPLOYMENT OF MINOR WORKERS; ACT AGAINST
CHILD LABOR (R.A. 9231) AND CHILD ABUSE LAW (R.A.
7610)
GR:
1. No person under 18 years of age will be
allowed to be employed in an undertaking
which is hazardous or deleterious in nature.
2. No Er shall discriminate against any person in
respect to terms and conditions of employment
on account of his age.
XPNs: A. Below 15 yrs. Old
1. The child works directly under the sole
responsibility of his parents or legal guardian
and where only members of the family are
employed, subject to the following conditions:
a. Employment does not endanger the
child’s safety, health and morals
b. Employment does not impair the
child’s normal development
c. Er-parent or legal guardian provides
the child with the primary and/or
secondary education prescribed by the
Department of Education
2. The child’s employment or participation in
public entertainment or information through
cinema, theater, radio or television is essential
provided:
a. Employment contract is concluded by
the child’s parents or legal guardian,
b. With the express agreement of the
child concerned, if possible, and
c. The approval of DOLE, the following
must be complied with:
i. The employment does not
involve advertisement or
commercials promoting
alcoholic beverages,
intoxicating drinks, tobacco and
its byproducts or exhibiting
violence
ii. There is a written contract
approved by DOLE
iii. The conditions provided in
the first instance are met
B. Above 15 but below 18 – May be employed
in any non-hazardous work
C. Above 18 – No prohibition Ownership, Usage
and Administration of the Working Child’s
Income The wages, salaries, earnings and other
income of the working child shall belong to
him/her in ownership and shall be set aside
primarily for his/her support, education or skills
acquisition and secondarily to the collective
needs of the family: Provided, That not more
than twenty percent (20%) of the child's income
may be used for the collective needs of the
family. (Sec.12-B,R.A.7610)
Duty of the employer before engaging a minor
into employment The employer shall first
secure a work permit from the DOLE which shall
ensure observance of the requirements (R.A.
7160, Sec. 12).
CHILD LABOR
Any work or economic activity performed by a
child that subjects him or her to any form of
exploitation or is harmful to his or her health
and safety or physical, mental or psychosocial
development.
Worst forms of labor
1. All forms of slavery (Anti-Trafficking of
Persons Act of 2003) or practices similar to
slavery such as sale and trafficking of children,
debt bondage and serfdom and forced or
compulsory labor, Including recruitment of
children for use in armed conflict;
2. The use, procuring, offering of a child for
prostitution, for the production of pornography
or for pornographic performances;
3. The use, procuring, offering or exposing of a
child for illegal or illicit activities, including the
production and trafficking of dangerous drugs
and volatile substances prohibited under
existing laws;
4. Employing child models in all commercials or
advertisements promoting alcoholic beverages,
intoxicating drinks, tobacco and its by-products
and violence; and
5. Work which, by its nature or circumstances in
which it is carried out, is hazardous or likely to
be harmful to the health, safety or morals of
children.

EMPLOYMENT OF HOUSEHELPERS AND
HOMEWORKERS
Persons covered by R.A. 10361 otherwise
known as “Batas Kasambahay” All kasambahay
engaged in domestic work, whether on a live-in
or live-out arrangement, such as, but not
limited to, the following:
1. General house help; 2. Nursemaid or Yaya; 3.
Cook; 4. Gardener; 5. Laundry person;
6. Working children or domestic workers 15
years and above but below 18 years of age; or
7. Any person who regularly performs domestic
work in one household on an occupational basis
(live-out arrangement). (Sec.3[d],R.A.10361)
Persons not covered by the batas kasambahay
1. Service providers 2. Family drivers 3. Children
under foster family arrangement; and
4. Any other person who performs work
occasionally or sporadically and not on an
occupational and regular basis
EMPLOYABLE AGE FOR A KASAMBAHAY
The employable age for a kasambahay is 15
years old and above.
NOTE: The employment of children 15 but
below 18 years of age may be made under the
following conditions:
1. They shall not be allowed to work for
more than 8 hours a day, and in no case
beyond 40 hours a week;
2. They shall not be allowed to work
between 10 p.m. to 6 a.m. of the
following day;
3. They shall not be allowed to do
hazardous work; and
4. They shall not be denied access to
education and training.
The consent of the parent/guardian of working
children is required in the employment
contract.
EMPLOYER’S HOUSEHOLD
Household refers to the immediate family
members or other occupants of the house who
are directly and regularly provided services by
the kasambahay. 13th month pay The
kasambahay is entitled to 13th month pay
after 1 month of service.
Computation of the 13thmonth pay
In computing the 13thmonth pay, the total
basic wage received in a given calendar year
shall be divided by 12. The amount derived shall
be paid not later than December 24.
SSS, PHILHEALTH, AND PAG-IBIG
The kasambahay is covered by SSS, PhilHealth
and Pag-IBIG after 1 month of service.
GR: The Er shall pay the SSS premium, and
PHILHEALTH and PAG-IBIG contributions of the
kasambahay
XPN: If the wage of the kasambahay is Php
5,000.00 or more, the kasambahay will pay
his/her share in the premiums/contributions.
PRE-EMPLOYMENT REQUIREMENTS
Before entering into an employment contract,
the employer has the option to require the
following from a kasambahay:
1. Medical certificate or health
certificate issued by a local government
health officer;
2. Barangay and police clearance;
3. NBI clearance; and
4. Duly authenticated birth certificate
or, if not available, voter’s identification
card, baptismal record, or passport
showing the kasambahay’s age.
NOTE: All expenses made pursuant to the
availment of pre-employment requirements
should be shouldered by the employer.
Requirements are mandatory when the
employment of the kasambahay is facilitated
through a private employment agency
MANDATORY BENEFITS OF A KASAMBAHAY
1. Monthly minimum wage;
2. Daily rest period of 8 (total) hours;
3. Weekly rest period of 24 (uninterrupted)
hours
4. 5 days annual service incentive leave with
pay;
5. 13th month pay; 6. SSS benefit; 7. PhilHealth
benefit; and 8. Pag-IBIG benefit
OTHER RIGHTS AND PRIVILEGES OF A KASAMBAHAY
1. Freedom from employer’s interference in
wage disposal;
2. Standard of treatment;
3. Board, lodging, and medical attendance;
4. Right to privacy;
5. Access to outside communication;
6. Access to education and training;
7. Right to be provided a copy of the
employment contract;
8. Right to Certificate of Employment;
9. Right to form, join, or assist labor
organization;
10. Right to terminate employment based on
just cause; and
11. Right to exercise religious beliefs and
cultural practices
BASIC NECESSITIES OF A KASAMBAHAY
1. At least 3 adequate meals a day, taking into
consideration the kasambahay’s religious
beliefs and cultural practices;
2. Humane sleeping condition; and
3. Appropriate rest and basic medical
assistance.
MONTHLY MINIMUM WAGE OF A KASAMBAHAY
NCR – P5,000
Grounds for termination of contract by the
kasambahay
 1. Verbal or emotional abuse of the
kasambahay by the employer or any member of
the household;
2. Inhuman treatment including physical abuse
of the kasambahay by the employer or any
member of the household;
3. Commission of a crime or offense against the
kasambahay by the employer or any member of
the household;
4. Violation by the employer of the terms and
conditions of the employment contract and
other standards set forth under the law;
5. Any disease prejudicial to the health of the
kasambahay, the employer,or member/s of the
household; and
6.Other causes analogous to the foregoing
GROUNDS FOR TERMINATION OF CONTRACT BY THE
EMPLOYER
1. Misconduct or willful disobedience by the
kasambahay of the lawful order of the employer
in connection with the former’s work;
2. Gross or habitual neglect or inefficiency by
the kasambahay in the performance of duties;
3. Fraud or willful breach of the trust reposed
by the employer on the kasambahay;
4. Commission of a crime or offense by the
kasambahay against the person of the employer
or any immediate member of the employer’s
family;
5. Violation by the kasambahay of the terms
and conditions of the employment contract and
other standards set forth under the law;
6. Any disease prejudicial to the health of the
kasambahay, the employer, or member/s of the
household; and
7. Other causes analogous to the foregoing
EFFECT OF UNJUST DISMISSAL BY THE EMPLOYER
The kasambahay shall receive the following if
he/she is unjustly dismissed by the employer:
1. Outright payment of earned wage;
and
2. Indemnity benefit in the form of
wage equivalent to 15 days work.
LIABILITIES OF A KASAMBAHAYWHO LEAVES HIS/HER
EMPLOYER WITHOUT JUSTIFIABLE REASON
Forfeiture of wage equivalent to 15 days work;
andReimbursement of the deployment
expenses, if the employment contract is
terminated within 6 months from employment.
NOTE: A househelp, a laundrywoman, a driver,
houseboy or gardener working in staff houses of
a company who attends to the needs of the
company’s guests is not a househelper or
domestic servant. He is an industrial worker
who must be paid the industrial rate.
Homeworkers They are those who perform in or
about his own home any processing or
fabrication of goods or materials, in whole or in
part, which have been furnished directly or
indirectly, by an employer and sold thereafter to
the latter NOTE:DO No.05-92,DOLE (February
4,1992) amended Rule XIV of the IRR.
INDUSTRIAL HOMEWORK
It is a system of production under which work
for an employer or contractor is carried out by a
homeworker at his/her home. Materials may or
may not be furnished by the employer or
contractor. It differs from regular factory
production principally in that, it is a
decentralized form of production where there is
ordinarily very little supervision or regulation of
methods of work.
HOUSEHELPERS V. HOMEWORKERS
PROHIBITIONS FOR HOMEWORK
The following shall be prohibited as
homework:
1. Explosives, fireworks and similar
articles;
2. Drugs and poisons; and
3. Other articles, the processing of
which requires exposure to toxic
substances (DO No. 05-92, Sec. 13).
CONDITIONS FOR DEDUCTION FROM HOMEWORKER’S
EARNINGS
GR: The employer, contractor or subcontractor
shall not make any deduction from the
homeworker’s earnings for the value of
materials which have been lost, destroyed,
soiled or otherwise damage.
XPNs: Unless the following conditions are met:
1. The homeworker is clearly shown to
be responsible for the loss or damage;
2. The employee is given reasonable
opportunity to show cause why
deductions should not be made;
3. The amount of such deduction is fair
and reasonable and shall not exceed
the actual loss or damages; and
4. The deduction is made at such rate
that the amount deducted does not
exceed 20% of the homeworker’s
earnings in a week (DO No.05-
92,Sec.8).
APPRENTICES AND LEARNERS
Apprenticeship
It is practical training on the job supplemented
by related theoretical instruction involving a
contract between an apprentice and an
employer on an approved apprenticeable
occupation
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.
APPRENTICE
Any worker who is covered by a written
apprenticeship agreement with an individual Er
or any of the entities recognized under the LC.
GR: Apprenticeship programs shall be primarily
voluntary.
XPNs: CompulsoryApprenticeship:
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).
In the country, it is the TESDA which
implements this APPRENTICESHIP PROGRAM.
The TESDA Act of 1994 expressly empowers
TESDA to implement and administer the
apprenticeship programs because it normally
involves “highly” skilled jobs.
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.
NOTE: Prior approval by TESDA (formerly DOLE)
of the proposed apprenticeship program is a
condition sine qua non. Otherwise, an
apprentice becomes a regular employee
QUALIFICATIONS OF AN APPRENTICE
1. At least 15 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
LEARNERS
1. They are persons hired as trainees in semi
skilled and other industrial occupations.
2. Which are non-apprenticeable and
3. Which may be learned through practical
training on the job in a relatively short period of
time
4. Which shall not exceed 3 months
5.Whether or not such practical training is
supplemented by theoretical instructions
EMPLOYMENT OF LEARNERS
Learners may be employed when:
1.No experienced worker is available
2. It is necessary to prevent curtailment of
employment opportunities; and
3. Employment does not create unfair
competition in terms of labor costs or impair or
lower working standards.
Employment of minors as learners A learner
must be at least 15 years of age.
NOTE: Those below 18 years of age shall not
work in hazardous occupations.
Persons who may employ learners
Only employers in semi-skilled and other
industrial occupations which are non
apprenticeable may employ learners.
PERSONS WITH DISABILITY (R.A. 7277 AS AMENDED
BY R.A. 9442)
The Magna Carta for Disabled Persons ensures
equal opportunities for disabled persons and
prohibits discrimination against them.
No PWD shall be denied access to opportunities
for suitable employment. Handicaped workers
are entitled to not less than seventy-five
percent (75%) of the applicable adjusted
minimum wage. (Article 80,LC)
PERSONS WITH DISABILITY (PWD)
Those whose earning capacity is impaired by:
1. Physical deficiency
2. Age 3. Injury 4. Disease 5. Mental deficiency
6. Illness
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
able-bodied person.
A qualified individual with disability is an
individual with disability who, with or without
reasonable accommodation, can perform the
essential functions of the employment position
that such individual holds or desires.
1. When their employment is necessary
to prevent curtailment of employment
opportunities; and
2. When it will not create unfair
competition in labor costs or lower
working standards (LC,Art.79).
Employment period of PWD
There is no minimum or maximum duration. It
depends on the agreement but it is necessary
that there is a specific duration stated. Persons
with disability can be a regular employee
Persons with disability can be a regular
employee if work is usually or necessarily
desirable to the business
RIGHTS OF PERSONS WITH DISABILITY
Rights and privileges of PWD
1. Equal opportunity for employment- 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 occupations
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
5. Vocational guidance and counselling
EMPLOYER-EMPLOYEE RELATIONSHIP
FOUR- FOLD TEST
Employer is any person, natural or juridical,
domestic or foreign, who carries on it the
Philippines any trade, business, industry,
undertaking or activity of any kind and uses the
services of another person who is under his
orders as regards the employment, except the
Government and any of its political
subdivisions, branches or instrumentalities,
including corporations owned or controlled by
the Government.
Employee is any person who performs services
for an employer in which either or both mental
and physical efforts are used and who receives
compensation for such services, where there is
an employer‐employee relationship.
Existence of an employment relationship
Employment relationship is determined by law
and not by contract
Employer-Employee Relation as a Question of Law
(Stipulation that No Er-Ee Relationship Exists)
It is axiomatic that the existence of an Er-Ee
relationship cannot be negated by expressly
repudiating it in the management contract and
providing therein that the Ee is an independent
contractor when the terms of the agreement
clearly show otherwise. For the employment
status of a person is defined and prescribed by
law and not by what the parties say it should
be. In determining the status of the
management contract, the FourFold Test on
employment has to be applied
Employer-Employee Relation As A Question Of
Fact The existence of an employer employee
relationship depends upon the facts of each
case
The four–fold test (indicia of determination):
1. Selection and engagement of the employee;
2. Payment of wages;
3. Power of dismissal; and
4.Power of control (Azucena,Vol.I).
Among the four, the control test assumes
primacy in the overall consideration. The power
of control is the right to control not only the
end to be achieved but also the means to be
used in reaching such end
Not every form of control establishes employer
employee relationship.
A demarcation line should be drawn between:
(a) rules that merely serve as guidelines which
only promote the result, and
(b) rules that fix the methodology and bind or
restrict the party hired to the use of such means
or methods. Under the first category, there
exists no employer employee relationship. In
the second category, it has the effect of
establishing employer-employee relationship
ECONOMIC DEPENDENCY (TWO-TIERED TEST)
This two-tiered test would provide us with a
framework of analysis, which would take into
consideration the totality of circumstances
surrounding the true nature of the relationship
between the parties. This is especially
appropriate in this case where there is no
written agreement or terms of reference to
base the relationship on and due to the
complexity of the relationship based on the
various positions and responsibilities given to
the worker over the period of the latter’s
employment
Two-tiered test
The putative Er’s power to control the Ee with
respect to the means and methods by which the
work is to be accomplished (Four-fold test); 2.
The underlying economic realities of the activity
or relationship (economic reality test).
Proper standard for economic dependence
The proper standard is whether the worker is
dependent on the alleged Er for his continued
employment in that line of business. Mode Of
Compensation; Not Determinative Of Er-Ee
Relationship Piece-rate, boundary, and pakyaw
are merely methods of pay computation and do
not prove whether the payee is an employee or
not
ARTICLE 295 PRESUPPOSES EMPLOYMENT
RELATIONSHIP
Article 295 applies where the existence of
Employer-Employee relationship is not the issue
of the dispute. If the issue is whether or not the
claimant is an employee, the tests of
employment relationship shall be resorted to.
Article 295 limits itself to differentiating four
kinds of employment arrangement: regular,
project, seasonal, and casual. The article
presupposes that employment relationship
exists between the parties.
PROBATIONARY EMPLOYMENT
Probationary employment Employment where the Ee,
upon his engagement:
1. Is made to undergo a trial period;
2. During which the Er determines his fitness to
qualify for regular employment; and
 3. Based on reasonable standards made known
to the Ee at the time of engagement
Rules on probationary employment
1. Er shall make known to the Ee at the time he
is hired, the standards by which he will qualify
as a regular Ee;
2. An Ee allowed to continue work after the
probationary period shall be considered a
regular Ee;
3. During the probationary period, the Ee enjoys
security of tenure; his services can only be
terminated for just or authorized causes and
when he fails to qualify as a regular Ee in
accordance with reasonable standards made
known by the Er to the Ee at the time of his
GR: It shall not exceed 6 months.
XPNs:
1. Covered by an Apprenticeship or Learnership
agreement stipulating a different period
2. Voluntary agreement of parties (especially
when the nature of work requires a longer
period)
3. The Er gives the Ee a second chance to pass
the standards set
4. When the same is required by the nature of
the work, e.g. the probationary period set for
professors, instructors and teachers is 3
consecutive years of satisfactory service
pursuant to DOLE Manual of Regulations for
Private Schools.
5. When the same is established by company
policy.
NOTE: After the lapse of the probationary period (6
months), Ee becomes regular
The Er and Ee may validly agree to extend the
probationary period beyond six months.
Such an extension may be lawfully agreed upon.
Extension is allowed only when:
1. Nature of the job requires extensive
training, or
2. If it is a company policy that the
period of probationary employment
should be an extended period Double
or successive probation is NOT allowed.
REGULAR EMPLOYMENT
NOTE: Regularization is not a management
prerogative; rather, it is the nature of
employment that determines it. It is a mandate
of the law. What determines regularity or
casualness is not the employment contract,
written or otherwise, but the nature of the job
TESTS TO DETERMINE REGULAR EMPLOYMENT
The primary standard of determining regular
employment is the reasonable connection
between the particular activity performed by
the Ee to the usual trade or business of the Er.
The test is whether the former is usually
necessary or desirable in the usual business or
trade of the Er
NOTE: The connection can be determined by
considering the nature of the work performed
and its relation to the scheme of the particular
business or trade in its entirety
2. Also, the performance of a job for at least a
year is sufficient evidence of the job’s necessity
if not indispensability to the business. This is the
rule even if its performance is not continuous
and merely intermittent. The employment is
considered regular, but only with respect to
such activity and while such activity exists
NOTE: Seafarers cannot be considered as
regular Ees. The contract which they sign every
time they are hired governs their employment.
Their employment is terminated when the
contract expires. Their employment is fixed for a
certain period of time,
PROJECT EMPLOYMENT
Project employment is employment that has
been fixed for a specific project or undertaking
the completion for which has been determined
at the time of engagement of the Ee (IRR, Book
VI, Rule I, Sec. 5(a)]. The period is not the
determining factor, so that even if the period is
more than 1 year, the Ee does not necessarily
become regular.
Repeated hiring on a project-to-project basis is
considered necessary and desirable to the
business of the Er. The Ee is regular.
REQUISITES IN DETERMINING WHETHER AN EE IS A
PROJECT EE
1. Designation of named Ees as “Project Ees”;
2. The project Ee was assigned to carry out a
specific project or undertaking,
3. The duration and scope of which were
specified at the time the Ee was engaged for
that project
4. The Ee must have been dismissed every after
completion of his project or phase;
5. Report to the DOLE of Ee’s dismissal on
account of completion of contract to satisfy due
process requirements.
ENTITLEMENT TO SEPARATION PAY
GR: Project Ees are not entitled to separation
pay if their services are terminated as a result of
the completion of project.
XPN: If the projects they are working on have
not yet been completed when their services are
terminated; project Ees also enjoy security of
tenure during the limited time of their
employment
WORK POOL
Requisites to acquire regular Ee status of
project Ee or a member of work pool
The following must concur to acquire a status of a
regular Ee status:
1. There is a continuous rehiring of project Ee’s
even after cessation of a project; and
 2. The tasks performed by the alleged “project
Ee” are vital, necessary and indispensable to the
usual business or trade of the Er
The length of time during which the Ee was
continuously re-hired is not controlling, but
merely serves as a badge of regular
employment.
A work pool may exist although the workers in
the pool do not receive salaries and are free to
seek other employment during temporary
breaks in the business, provided that the
worker shall be available when called to report
for a project. Although primarily applicable to
regular seasonal workers, this set-up can
likewise be applied to project workers insofar as
the effect of temporary cessation of work is
concerned. This is beneficial to both the Er and
Ee for it prevents the unjust situation of
“coddling labor at the expense of capital” and at
the same time enables the workers to attain the
status of regular Ees
SEASONAL EESAS REGULAR EES
Seasonal Ees can be considered regular Ees.
Seasonal workers who are repeatedly engaged
from season to season performing the same
tasks are deemed to have acquired regular
employment. During off-season, the
relationship of Er-Ee is not severed; the
Seasonal Ee is merely considered on LOA
without pay.
If the Ee has been performing the job for at
least a year, even if the performance is not
continuous and merely intermittent, the law
deems repeated and continuing need for its
performance as sufficient evidence of the
necessity if not indispensability of that activity
to the business. Hence, the employment is
considered regular, but only with respect to
such activity and while such activity exists
CASUAL EMPLOYMENT
I. It is an employment where the Ee is engaged
in an activity which is not usually necessary or
desirable in the usual business or trade of the
Er, Provided: such employment is neither
Project nor Seasonal (LC, Art. 281). He performs
only an incidental job in relation to the principal
activity of the Er.
2. An Ee is engaged to perform a job, work or
service which is merely incidental to the
business of the Er, and such job, work or service
is for a definite period made known to the Ee at
the time of engagement
CASUAL EE BECOMINGA REGULAR EE
If he has rendered at least 1 year of service,
whether such service is continuous or broken,
he is considered as regular Ee with respect to
the activity in which he is employed and his
employment shall continue while such activity
exists. A casual Ee is only casual for 1 year, and
it is the passage of time that gives him a regular
status
FIXED TERM EMPLOYMENT
Term employment
A contract of employment for a definite period
terminates by its own terms at the end of such
period.
Decisive determinant in term employment
It is the day certain agreed upon by the parties
for the commencement and the termination of
their employment relation. A day certain being
understood to be that which must necessarily
come, although it may not be known when and
not whether the work is usually necessary and
desirable to the business of the Er.
FIXED-TERM EMPLOYMENT V. PROJECT EMPLOYMENT
Both employments are time bound or for a
certain period as agreed upon at the time of
engagement, however in project employment,
the employee is tasked to do specific
undertaking, which is not present in fixed-term
employment
JOB CONTRACTING
Job contracting (independent contracting/
subcontracting)
"Contracting" or "subcontracting" refers to an
arrangement whereby a principal agrees to
farm out to a contractor the performance or
completion of specific job or work within a
definite or predetermined period, regardless of
whether such job or work is to be performed or
completed within or outside the premises of
the principal
CONDITIONS IN ORDER TO BE CONSIDERED AS
LEGITIMATE JOB CONTRACTING OR SUBCONTRACTING
I. The contractor must be registered in
accordance with these Rules and carries a
distinct and independent business and
undertakes to perform the job, work or service
on its own responsibility, according to its own
manner and method, and free from control and
direction of the principal in all matters
connected with the performance of the work
except as to the results thereof;
2.The contractor has substantial capital and/or
investment; and
3. The Service Agreement ensures compliance
with all the rights and benefits under Labor
Laws (DO 18-A, Sec. 4). In legitimate Job
Contracting, the principal is jointly and severally
liable with the contractor for the payment of
unpaid wages (LC,Arts.106,107 & 109)
LABOR-ONLY CONTRACTING
There is labor-only contracting when:
1. The contractor does not have substantial
capital, or; a. The contractor or subcontractor
does not have investments in the form of tools,
equipment, machineries, work premises, among
 others, AND b. the contractor or
subcontractor’s Ees recruited and placed are
performing activities which are usually
necessary or desirable to the operation of the
company, or directly related to the main
business of the principal within a definite or
predetermined period, regardless of whether
such job, work or service is to be performed or
completed within or outside the premises of
the principal; OR
2.The contractor does not exercise the right to
control over the performance of the work of the
Ee (Sec.5,DOLE D.O.No.174 s.2017)
CONFIRMING ELEMENTS
To have labor-only contracting, the essential
element of supplying workers to another is not
enough. To it must be added either one of two
confirming elements:
1. Lack of substantial capital or
investment and performance of
activities directly related or usually
necessary or desirable to the principal’s
main business;
2. The contractor does not exercise
control over the performance of the
employees.
5-5-5 SCHEME OR “ENDO”
The “5-5-5” or “endo” workers refers to the
hiring practice that is deliberately resorted to
prevent workers from acquiring regular status
by reason of length of service of at least 6
months and one day. Under a subcontracting
arrangement, this is done through:
a. repeated short-term arrangements
(e.g., “5 months, 5 months”, “5-5-5”, or
less) by one principal through the same
contractor, or under different
contractors, or
b. repeated short term arrangements
(e.g., “5 months, 5 months”, “5-5-5”, or
less) through a Service Agreement of
short duration under the same
contractor, or different contractors
Section 7(A)[7) of DOLE Department Order No
18- A series of 2011 makes subcontracting a
prohibited activity when it is done through
repeated hiring of workers for a 5 to 6 months
employment contract under the same employer
or Service Agreement of the same duration.
In case of violation, the Contractor’s Certificate
of Registration can be cancelled, after due
process, and the worker becomes regular
employee of the principal, and all benefits due
to him/her shall be the liability of the principal.
TERMINATION OF EMPLOYMENT
TERMINATION BY EMPLOYER
DISMISSAL FROM EMPLOYMENT
In cases of regular employment, substantive
due process (Security of Tenure) is when the Er
shall not terminate the services of an Ee except
for a just cause or when authorized by the LC on
Termination of Employment (LC, Art. 279).
In every employee dismissal case, the employer
bears the burden of proving the validity of the
employee's dismissal.
Types of dismissal
1. Dismissal for a just cause with due process
2. Dismissal for authorized cause with due
process
3. Dismissal for health reasons with due process
4. Dismissal without just or authorized cause
with due process
5. Dismissal for just or authorized cause without
due process (belated due process rule)
JUST CAUSES
1. Serious misconduct or willful disobedience by
the Ee of the lawful orders of his Er or
representative in connection with his work;
2. Gross and habitual neglect by the Ee of his
duties;
3. Fraud or willful breach by the Ee of the trust
reposed in him by his Er or duly organized
representative;
4. Commission of a crime or offense by the Ee
against the person of his Er or any immediate
member of his family or his duly authorized
representative;
5.Other causes analogous to the foregoing
PREVENTIVE SUSPENSION
The employer may place the employee under
preventive suspension, during the pendency of
the investigation, if his continued employment
poses a serious and imminent threat to life and
property of the employer or his employees. It
must not be more than 30 days; otherwise it
will amount to constructive dismissal
SERIOUS MISCONDUCT OR WILLFUL DISOBEDIENCE
Elements of serious misconduct:
1. It must be serious or of such a grave and
aggravated character;
2. Must relate to the performance of the Ees’
duties;
3. Ee has become unfit to continue working for
the Er
Examples of serious misconduct:
1. Sexual Harassment
2. Fighting within the company premises
3. Uttering obscene, insulting or offensive
words against a superior
4. Falsification of time records
5. Gross immorality
REQUISITES OF WILLFUL DISOBEDIENCE:
1. The Ees assailed conduct must have been
willful or intentional, the willfulness being
characterized by a wrongful and perverse
attitude.
 2. The disobeyed orders, regulations or
instructions of the Er must be:
a. Reasonable and lawful
b. Sufficiently known to the Ee
c. In connection with the duties which
the Ee has been engaged to discharge
There is no law that compels an Ee to accept a
promotion for the reason that a promotion is in
the nature of a gift or reward, which a person
has the right to refuse. The exercise of the Ee of
the right to refuse a promotion cannot be
considered in law as insubordination or willful
disobedience
GROSS AND HABITUAL NEGLIGENCE
An employee who was grossly negligent in the
performance of his duty, though such
negligence committed was not habitual, may be
dismissed especially if the grossly negligent act
resulted in substantial damage to the company.
It implies a want or absence of or failure to
exercise diligence that an ordinary prudent man
would use in his own affairs. However, such
neglect must not only be gross but must also be
habitual in character (DOLE Manual)
DEGREE OF NEGLIGENCE AS A JUST CAUSE FOR
TERMINATION
GR: Gross and habitual negligence.
a. Gross neglect has been defined as the
want or absence of or failure to exercise
slight care or diligence, or the entire
absence of care. It evinces a thoughtless
disregard of consequences without
exerting any effort to avoid them
b. Habitual neglect implies repeated
failure to perform one’s duties over a
period of time, depending upon the
circumstance
LOSS OF TRUST AND CONFIDENCE
It applies only to cases involving:
a. Ees occupying positions of trust and
confidence - confidential and managerial Ee’s
Distinction should be made between
managerial and rank and file employees. With
respect to rank -and-file personnel, loss of trust
and confidence, as ground for valid dismissal,
requires proof of involvement in the alleged
events while for managerial employees, the
mere existence of a basis for believing that such
employee has breached the trust of his
employer would suffice for his dismissal
b. Ees routinely charged with the care and
custody of the Er’s money or property – To this
class belong those who, in the normal and
routine exercise of their functions, regularly
handle significant amounts of money or
property
ABANDONMENT AS A JUST CAUSE FOR TERMINATION
It means deliberate and unjustified refusal of an
employee to resume his employment.
Two factors must be present:
1. The failure to report for work, or absence
without valid or justifiable reason; and
2. A clear intention to sever Er-Ee relationship,
with the 2nd element as the more
determinative factor, being manifested by some
overt acts
COMMISSION OF A CRIME OR OFFENSE
When an offense is committed by the Ee against
the person of his Er or any immediate member
of his family or his duly authorized
representative, conviction of a crime involving
moral turpitude is not analogous thereto as the
element of relation to his work or to his Er is
lacking. A criminal case need not be actually
filed. Commission of acts constituting a crime
itself is sufficient
ANALOGOUS CASES
To fall within the ambit of “analogous cases”
the act or omission must have an element
similar to those found in the specific just cause
enumerated under Art. 282.
Previous offenses may be so used as a valid
justification for dismissal from work ONLY if the
infractions are related to the subsequent
offense upon which the basis the termination of
employment is decreed
DOCTRINE OF INCOMPATIBILITY
Where the Ee has done something that is
contrary or incompatible with the faithful
performance of his duties, his Er has a just
cause for terminating his employment
DOCTRINE OF COMMENSURATE PENALTY/
PROPORTIONALITY RULE
In this regard, it is a hornbook doctrine that
infractions committed by an employee should
merit only the corresponding penalty
demanded by the circumstance. The penalty
must be commensurate with the act, conduct or
omission imputed to the employee and must be
imposed in connection with the disciplinary
authority of the employer.
AUTHORIZED CAUSES
Authorized causes of termination by the Er:
1. Installation of labor-saving devices
(automation/robotics)
2. Redundancy (superfluity in the performance
of a particular work) – Exists where the services
of an Ee are in excess of what is reasonably
demanded by the actual requirements of the
enterprise. Er must be in good faith in
abolishing redundant position and has fair and
reasonable criteria in ascertaining what
positions are to be declared redundant
3. Reorganization
4. Retrenchment –Er must be in good faith, has
Proof of expected or actual losses, and uses fair
and reasonable criteria in ascertaining who
would be retained among the Ees, such as
 status, efficiency, seniority, physical fitness, age,
and financial hardship of certain workers Actual
losses need not set in prior to retrenchment.
2 KINDS OF CLOSURE:
1. Partial Closure – although grounded on
economic losses, partial closure is a form of
retrenchment.
2. Total Closure due to economic reverses or
losses.
TEST FOR THE VALIDITY OF CLOSURE OR CESSATION OF
ESTABLISHMENT OR UNDERTAKING
To be a valid ground for termination the following
must be present:
1. There must be a decision to close or cease
operation of the enterprise by the
management;
2. The decision was made in good faith
3.There is no other option available to the
employer except to close or cease operations.
6. Disease –
(1) Must be incurable within 6 months
and the continued employment is
prohibited by law or prejudicial to his
health as well as to the health of his co-
Ees
(2) with a certification from the public
health officer that the disease is
incurable within 6 months despite due
to medication and treatment. The
burden of proving compliance with
these requisites is on the employer.
Non-compliance leads to the conclusion
that the dismissal was illegal
OTHER AUTHORIZED CAUSE
1. Total and permanent disability of Ee
2. Valid application of union security clause
3. Expiration of period in term of employment
4. Completion of project in project employment
5. Failure in probation
6. Relocation of business to a distant place
7. Defiance of return-to work-order
8. Commission of Illegal acts in strike
9. Violation of contractual agreement
10. Retirement
STEPS REQUIRED IN TERMINATION OF AN EE’S
EMPLOYMENT FOR AUTHORIZED CAUSES
1. Written Notice to DOLE 30 days prior to the
intended day of termination. Purpose: To
enable it to ascertain the veracity of the cause
of termination.
2. Written notice to Ee concerned 30 days prior
the intended date of termination.
3. Payment of separation pay
THERE IS NO OBLIGATION TO PAY SEPARATION PAY:
A. When the closure of the business is due to
serious business loss
B. when the closure is due to an act of the
Government.
c. Where closure of business is by compulsion of
law because closure of business is not
attributed to Er’s will. (e.g.: the land where the
building is situated was declared covered by the
Comprehensive Agrarian Reform Law)
When an employee is placed under "floating
status" for more than six months, he is
considered to have been constructively
dismissed.
DUE PROCESS TWIN NOTICE REQUIREMENT
Two-fold requirements of a valid dismissal for a just
cause
1. Substantive – It must be for a just cause.
2. Procedural –There must be notice and
hearing.
TWIN REQUIREMENTS OF PROCEDURAL DUE
PROCESS [ART. 277(B), LC]
1. Notice – “Twin-notice rule”
a. First notice – Necessity of first notice
to inform the worker of the violation
and preparation for the defense (Pre-
notice)
b. Last notice – To give the worker a
notice of the Er’s final decision (Post
notice)
2. Hearing – Two fundamental rules:
a. Hearing means ample opportunity to
be heard
b. What the law prohibits is total
absence of opportunity to be heard If
ample opportunity to be heard is given,
there is no violation.
Position paper – A position paper is a valid
alternative because not all cases are of litigation
concerns. It should suffice in matters that only
involve a question of law.
PROCEDURE TO BE OBSERVED BY THE ER FOR THE
TERMINATION OF EMPLOYMENT BASED ON ANY OF
THE JUST CAUSES FOR TERMINATION
1. A written notice should be served to the Ee
specifying the ground/s for termination and
giving the said Ee reasonable opportunity to
explain.
2. A hearing or conference should be held
during which the Ee concerned, with the
assistance of counsel, if the Ee so desires, is
given the opportunity to respond to the charge,
provide for his evidence and present the
evidence offered against him.
3. A written notice of termination – If
termination is the decision of the Er, it should
be served on the Ee indicating that upon due
consideration of all the circumstance, grounds
have been established to justify his termination.
TERMINATION BY EMPLOYEERESIGNATION
Resignation refers the voluntary act of an
employee who finds himself in a situation
where he believes that personal reason cannot
be sacrificed in favour of the exigency of the
 service, then he has no other choice but to
dissociate himself from his employment.
CONSTRUCTIVE DISMISSAL
Constructive dismissal occurs when there is
cessation of work because continued
employment is rendered impossible,
unreasonable, or unlikely as when there is a
demotion in rank or diminution in pay or when
a clear discrimination, insensibility, or disdain
by an Er becomes unbearable to the Ee leaving
the latter with no other option but to quit
MANAGEMENT PREROGATIVE
This prerogative flows from the established rule
that labor laws do not authorize the
substitution of judgment of the employer in the
conduct of his business. The employer can
exercise this prerogative without fear of liability
as long as it is done in good faith for the
advancement of his interests, and not for the
purpose of defeating or circumventing the
rights of the employees under special laws or
valid agreements. It is valid as long as it is not
performed in a malicious, harsh, oppressive,
vindictive or wanton manner, or out of malice
or spite.
GR: An employer is free to regulate, according to his
own discretion and judgment, all aspects of
employment, including:
1. Hiring;
2. Work assignments;
3. Working methods, time, place and manner of
work;
4. Tools to be used;
5. Processes to be followed;
6. Supervision of workers;
7. Working regulations;
8. Transfer of employees;
9. Work supervision;
10. Layoff of workers; and,
11. Discipline, dismissal and recall of workers.
Limitations on management prerogative It is
circumscribed by limitations found in:
1. Law,
2. CBA, or
3. General principles of fair play and justice
NOTE: It must be established that the prerogative being
invoked is clearly a managerial one.
DISCIPLINE
Er's right to discipline his EesThe Er has the
prerogative to instill discipline in his Ees and to
impose reasonable penalties, including
dismissal, on erring Ees pursuant to company
rules and regulations
Limitation on the Er’s power to discipline
While management has the prerogative to
discipline its Ees and to impose appropriate
penalties on erring workers, pursuant to
company rules and regulations, however, such
management prerogative must be exercised in
good faith for the advancement of the Er’s
interest and not for the purpose of defeating or
circumventing the rights of the Ees under
special laws and valid agreements.
EMPLOYER’S RIGHT TO TRANSFER AND REASSIGN EES
In the pursuit of its legitimate business
interests, especially during adverse business
conditions, management has the prerogative to
transfer or assign Ees from one office or area of
operation to another provided there is no
demotion in rank or diminution of salary,
benefits and other privileges and the action is
not motivated by discrimination, bad faith, or
effected as a form of punishment or demotion
without sufficient cause. This privilege is
inherent in the right of Ers to control and
manage their enterprises effectively.
CHANGE OF WORKING HOURS
Er’s right to change working hours The working
hours may be changed, at the discretion of the
company, should such change be necessary for
its operations, and that employees shall
observe such rules as have been laid down by
the company.
POST-EMPLOYMENT BAN
A non-involvement clause is not necessarily
void for being in restraint of trade as long as
there are reasonable limitations as to time,
trade, and place. It was also stated in this case
that the Labor Law validity of a non-
involvement clause depends upon the nature of
work of the subject employee. Since petitioner
was the Senior Assistant Vice-President and
Territorial Operations Head in charge of
respondent’s Hong Kong and ASEAN operations,
she had been privy to confidential and highly
sensitive marketing strategies of respondent’s
business. To allow her to engage in a rival
business soon after she leaves would make
respondent’s trade secrets vulnerable especially
in a highly competitive marketing environment.
In sum, we find the non-involvement clause not
contrary to public welfare and not greater than
is necessary to afford a fair and reasonable
protection to respondent.
SOCIAL WELFARE LEGISLATION
1. Compulsory Coverage
a. All Ees not over 60 years of age and
their Ers;
b. Domestic helpers whose income is
not less than P 1000/month and not
over 60 years of age and their Ers;
Limitations:
i. Any benefit earned by the Ees under private
benefit plans existing at the time of the
approval of the Act shall not be discontinued,
reduced or otherwise impaired;
ii. Existing private plans shall be integrated with
the SSS but if the Er under such plan is
contributing more than what is required by this
Act, he shall pay to the SSS the amount required
 to him, and he shall continue with his
contributions less the amount paid to SSS;
iii. Any changes, adjustments, modifications,
eliminations or improvements in the benefits of
the remaining private plan after the integration
shall be subject to agreements between the Ers
and the Ees concerned; and
iv. The private benefit plan which the Er shall
continue for his Ees shall remain under the Ers
management and control unless there is an
existing agreement to the contrary
All self-employed – considered both an Er and Ee
NOTE: A self-employed person is one whose income is
not derived from employment as well as those
mentioned in Sec. 9-A of the law [RA 8282, Sec. 8(s)].
All self-employed professionals;
e. Partners and single proprietors of business;
f. Actors and actresses, directors, scriptwriters
and news correspondents who do not fall
within the definition of the term “Ee”;
g. Professional athletes, coaches, trainers and
h. jockeys; AND
i. Individual farmers and fisherman.
2. VOLUNTARY
a. Spouses who devote full time to managing
the household and family affairs, unless they
are also engaged in other vocation or
employment which is subject to mandatory
coverage;
b. Filipinos recruited by foreign-based Ers for
employment abroad may be covered by the SSS
on a voluntary basis; (Sec. 9[c], R.A. 8282)
c. Ee separated from employment to maintain
his right to full benefits
d. Self-employed who realizes no income for a
certain month.
3. BY AGREEMENT
Any foreign government, international
organization, or their wholly-owned
instrumentality employing workers in the
Philippines, may enter into an agreement with
the Philippine government for the inclusion of
such Ees in the SSS except those already
covered by their respective civil service
retirement systems.
SICKNESS BENEFITS
It is a daily allowance paid to a covered Ee who
becomes sick and is confined in a hospital for
more than 3 days or elsewhere with the
Commission’s approval. Reimbursement by SSS
GR: SSS shall reimburse the Er or pay the
unemployed member only for confinement
within 1 year immediately preceding the date
the claim for benefit or reimbursement is
received by the SSS.
XPN: Confinement in a hospital in which case
the claim for benefit or reimbursement must be
filed within 1 year from the last day of
confinement
PERMANENT DISABILITY BENEFITS
It is a cash benefit paid to a member who
becomes permanently disabled, either partially
or totally.
Permanent total disability
The following are deemed permanent total disabilities:
1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or
wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility
or insanity; and
5. Such cases as determined and approved by
the SSS [RA 8282, Sec. 13-A (d)].
RETIREMENT BENEFIT
Retirement benefit It is a cash benefit paid to a
member who can no longer work due to old
age. Children of the retiree member who are
entitled to dependent’s pension Only 5 minor
children, beginning from the youngest, are
entitled to the dependent’s pension. No
substitution is allowed. Where there are more
than 5 legitimate and illegitimate children, the
legitimate ones will be preferred (RA 8282, Sec.
12-A).
PRESCRIPTIVE PERIOD TO CLAIM THE BENEFITS
GR: 10 years from the date of contingency The
term “parents” in the phrase “dependent
parents” in the afore-quoted Article 167 (j) of
the Labor Code is used and ought to be taken in
its general sense and cannot be unduly limited
to “legitimate parents” as what the ECC did. The
phrase “dependent parents” should, therefore,
include all parents, whether legitimate or
illegitimate and whether by nature or by
adoption. When the law does not distinguish,
one should not distinguish. Plainly, “dependent
parents” are parents, whether legitimate or
illegitimate, biological or by adoption, who are
in need of support or assistance
GSIS LAW (R.A. 8291)
Coverage of life insurance, retirement and other
social security protection
GR: All members of the GSIS shall have life
insurance, retirement, and all other social
security protections such as disability,
survivorship, separation, and unemployment
benefits (R.A.8291,Sec.3).
XPNs: The members of the following shall have
life insurance only:
1. The Judiciary; and
2. Constitutional Commissions
Compulsory coverage of life insurance
GR: All Ees receiving compensation who have
not reached the compulsory retirement age,
irrespective of employment status
 XPNs: All members of the Armed Forces of the
Philippines and the Philippine National Police
(PNP). SEPA
SEPARATION BENEFITS
Effects of separation from service with regard to
membership A member separated from the
service shall continue to be a member and shall
be entitled to whatever benefits he has
qualified to (once a member always a member).
evidence. It no longer prescribes a sweeping
classification that unduly prejudices the
legitimate surviving spouse and defeats the
purpose for which Congress enacted the social
legislation
Prescriptive period to claim the benefits
GR: 4 years from the date of contingency
XPNs: Life insurance and retirement (R.A. 8291,
Sec. 28

NOTE: A member separated for a valid cause

shall automatically forfeit his benefits, unless
the terms of resignation or separation provide
otherwise. In the case of forfeiture, the
separated employee shall be entitled to receive
only ½ of the cash surrender value of his
insurance.

RETIREMENT BENEFITS
Rule in case of extension of service in order to
be entitled for retirement benefits The Supreme
Court held that the head of the government
agency concerned is vested with discretionary
authority to allow or disallow extension of the
service of an official or Ee who has reached 65
years old without completing the 15 years of
government service. However, this discretion is
to be exercise conformably with the provisions
of Civil Service Memorandum Circular No. 27,
series of 1990 which provides that the
extension shall not exceed 1 year

PERMANENT DISABILITY BENEFITS

Total disability Complete incapacity to continue
with present employment or engage in any
gainful occupation due to the loss or
impairment of the normal functions of the
physical and/or mental faculties of the member
Instances when recovery is precluded If the
permanent disability was due to the following
acts of the subject Ee, recovery from the GSIS
is precluded:
1. Grave misconduct
2. Notorious negligence
3. Habitual intoxication
4. Willful intention to kill himself or
another

TEMPORARY DISABILITY BENEFITS

Temporary total disability It accrues or arises
when the impaired physical and/or mental
faculties can be rehabilitated and/or restored to
their normal functions

SURVIVORSHIP BENEFITS
No presumption of Sham Marriages The present
GSIS law does not presume that marriages
contracted within three years before retirement
or death of a member are sham marriages
contracted to avail of survivorship benefits. The
law acknowledges that whether the surviving
spouse contracted the marriage mainly to
receive survivorship benefits is a matter of