1. What is Illegal Dismissal?

Concept of Illegal Dismissal - Illegal dismissal is employee termination without observance of due process.
It may result in reinstatement, full backwages, moral damages, exemplary damages, nominal damages,
and attorney’s fees.

Due process is divided into 2 aspects:

1) Substantive Due Process – refers to the valid grounds for termination (just causes) or separation
(authorized causes)
2) Procedural Due Process – refers to the step-by-step way of implementing termination or separation
2. What is Constructive Dismissal?

Constructive dismissal refers to an involuntary resignation resorted to when continued employment

becomes impossible, unreasonable or unlikely, due to any of the ff:

Demotion – in rank or diminution in pay, or when or when a clear discrimination, insensibility or disdain by
an employer becomes unbearable to an employee (ito yung tungkol sa rank)

Grounds for demotion – Bullying, Discrimination (pumasok na rin ditto yung pagdedemote sayo
dahil ibinaba na ang posisyon mo), Harrassment, Salary decrease

Suspension – the employee is entitled to go back to work after duration of his/her suspension

e.g. si employer nagbigay ng suspension within 30 days kasi nakipagsuntukan sya sa kapwa
employee nya. After ng suspension, ni-require ni employer na iatras ang kaso laban sa mga nakasuntukan
nya bago sya pabalikin sa trabaho, so naghain ng kaso ng constructive dismissal – because sabi sa labor
code, pagkatapos ng 30 days suspension, the worker must be allowed to go back to work. If suspension
exceeds 30 days, hence, it is already constructive dismissal

malalaman mo kung biktima ang isang employee ng constructive dismissal if the intention of the
employer ay idismiss sya ng patago.

Constructive dismissal refers to an involuntary resignation resorted to when continued employment

becomes impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution in pay; or
when a clear discrimination, insensibility or disdain by an employer becomes unbearable to an employee or
an unwarranted transfer or demotion of a employee, or other unjustified action prejudicial to the employee.
The employer has to prove that such managerial actions do not constitute constructive dismissal

Constructive dismissal is defined as quitting or cessation of work because continued employment is

rendered impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution of pay and
other benefits.

The test of constructive dismissal is whether a reasonable person in the employee’s position would have
felt compelled to give up his employment/position under the circumstances.

There is a difference between illegal and constructive dismissal. Illegal dismissal is readily shown by the act
of the employer in openly seeking the termination of an employee while constructive dismissal, being a
dismissal in disguise, is not readily indicated by any similar act of the employer that would openly and
expressly show its desire and intent to terminate the employment relationship.

Thus, constructive dismissal can happen in any number of ways. At its core, however, is the gratuitous,
unjustified, or unwarranted nature of the employer’s action. As it is a question of whether an employer
acted fairly, it is inexorable that any allegation of constructive dismissal be contrasted with the validity of
exercising management prerogative.
3. What are the Consequences of Illegal Dismissal?
 Reinstatement – “Reinstatement is a restoration to the state from which one has been removed or
separated, while the payment of backwages is a form of relief that restores the income that was lost
by reason of the unlawful dismissal.”
 An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss
of seniority rights and other privileges and to his full backwages, inclusive of allowance, and to
his other benefits of their monetary equivalent computed from the time his compensation was
withheld from him up to the time of his actual reinstatement.

Ditto po ay sya ay ibabalik doon sa kanyang previous position and that is without loss of seniority.
(e.g. yung kanyang position ay hindi na available, so the employer give the employee a equivalent position
kung ano man ang previous position nya)

 Reinstatement is due to an illegally dismissed employee

 Separation pay in lieu of reinstatement is an alternative remedy when reinstatement is no longer
feasible
 Separation Pay – in lieu of Reinstatement “… where reinstatement is not advisable or feasible as
when antagonism already caused a severe strain in the relationship between the employer and the
employee, separation pay may also be awarded where… reinstatement is no longer practical or in
the best interest of the parties or when the employee decides not to be reinstated anymore.”

“… where reinstatement is not advisable or feasible as when there is a severe strain in the relationship
between the employer and the employee, separation pay may also be awarded where… reinstatement
is no longer practical or in the best interest of the parties or when the employee decides not to be
reinstated anymore.”

Computation = the date you were hired up to (1 month for every year service x number of years)

 In termination for authorized causes, separation pay is the amount given to an employee
terminated due to installation of labor-saving devices, redundancy, retrenchment, closure or
cessation of business or incurable disease.
 Separation pay may also be granted to an illegally dismissed employee in lieu of reinstatement.
 Full Backwages “… Under Article 279 of the Labor Code, as amended, employees who have been
illegally terminated from employment are entitled to the twin reliefs of reinstatement without loss of
seniority rights and to the payment of full backwages corresponding to the period from their illegal
dismissal up to actual reinstatement…”
 Full backwages refer to all compensations, including allowances and other benefits with
monetary equivalent that should have been earned by the employee but was not collected by
him or her because of unjust dismissal. It includes all the amounts he or she could have earned
starting from the date of dismissal up to the time of reinstatement.

Ito ay ang pagbabayad ng employer sa kanyang employee. Computation = reckoned from the time
his salary was withheld from him by the employer – it has o be reckoned from the time when he ws illegally
dismissed

 an employee who is unjustly dismissed from work shall be entitled to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent computed from
the time his compensation was withheld from him up to the time of his actual reinstatement. (Art.
294 of the Labor Code)
 DAMAGES:
 Moral Damages - “The employee is entitled to moral damages when the employer acted a) in bad
faith or fraud; b) in a manner oppressive to labor; or c) in a manner contrary to morals, good
customs, or public policy.”
 Moral damages are awarded to compensate an employee for mental distress that has been
caused by the bad faith manner by which they were treated by their employer in relation to their
labor claims.

Moral damages include physical suffering, mental anguish, fright, serious anxiety, besmirched
reputation, wounded feelings, moral shocks, social humiliation, and similar injury.

Bad faith "implies a conscious and intentional design to do a wrongful act for a dishonest purpose or
moral obliquity.“ Cathay Pacific Airways v. Spouses Vazquez established that bad faith must be proven
through clear and convincing evidence. This is because "[b]adfaith and fraud… are serious accusations
that can be so conveniently and casually in- voked, and that is why they are never presumed. They
amount to mere slogans or mudslinging unless convincingly substantiated by whoever is alleging
them…"

it is recoverable where the dismissal of the employee was attended by bad faith or fraud or
constituted an act oppressive to labor, or was done in a manner contrary to morals, good customs or
public policy. (Case of San Miguel Corporation v. Teodosio, G.R. No. 163033, 02 October 2009)

 Exemplary Damages – these damages are proper when the dismissal was affected in a wanton,
oppressive, or malevolent manner, and public policy requires that these acts must be suppressed
and discouraged.

Exemplary damages are designed by our civil law to permit the courts to reshape behaviour that is
socially deleterious in its consequence by creating negative incentives or deterrents against such
behaviour.“ “…

 Nominal Damages - “The law and jurisprudence allow the award of nominal damages in favor of an
employee in a case where a valid cause for dismissal exists but the employer fails to observe due
process in dismissing the employee...”

“… nominal damages ‘may be awarded to a plaintiff whose right has been violated or invaded by the
defendant, for the purpose of vindicating or recognizing that right, and not for indemnifying the plaintiff
for any loss suffered by him. Its award is thus not for the purpose of indemnification for a loss but for the
recognition and vindication of a right.’ The amount of nominal damages to be awarded the employee is
addressed to the sound discretion of the court, taking into consideration the relevant circumstances.
Nevertheless, while the amount of damages is left to the discretion of the court…”

 Attorney’s Fees – in cases of unlawful withholding of wages, the culpable party may be assessed
of attorney’s fees equivalent to ten percent of the amount of wages recovered.

It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings
for the recovery of wages, attorney’s fees which exceed ten percent of the amount of wages recovered.

National Labor Relations Commission that there are two commonly accepted concepts of attorney’s
fees – the ordinary and extraordinary. In its ordinary concept, an attorney’s fee is the reasonable
compensation paid to a lawyer by his client for the legal services the former renders; compensation is
paid for the cost and/or results of legal services per agreement or as may be assessed. In its
extraordinary concept, attorney’s fees are deemed indemnity for damages ordered by the court to be
paid by the losing party to the winning party. The instances when these may be awarded are
enumerated in Article 2208 of the Civil Code, specifically in its paragraph 7 on actions for recovery of
wages, and is payable not to the lawyer but to the client, unless the client and his lawyer have agreed
that the award shall accrue to the lawyer as additional or part of compensation

Article 111 of the Labor Code: Art. 111. Attorney’s fees. – (a) In cases of unlawful withholding of
wages, the culpable party may be assessed attorney’s fees equivalent to ten percent of the amount of
wages recovered. (b) It shall be unlawful for any person to demand or accept, in any judicial or
 administrative proceedings for the recovery of wages, attorney’s fees which exceed ten percent of the
amount of wages recovered.

Section 8, Rule VIII, Book III of its Implementing Rules: Section 8. Attorney’s fees. – Attorney’s fees
in any judicial or administrative proceedings for the recovery of wages shall not exceed 10% of the
amount awarded. The fees may be deducted from the total amount due the winning party.’

Article 2208 of the Civil Code: (1) When exemplary damages are awarded; (2) When the
defendant’s act or omission has compelled the plaintiff to litigate with third persons or to incur expenses
to protect his interest; (7) In actions for the recovery of wages of household helpers, laborers and skilled
workers; Attorney’s Fees Labor Code

4. What is Doctrine of strained relations?

The doctrine of strained relations only arises when there is an order for reinstatement that is no longer
feasible. It cannot be invoked by the employer to prevent employee’s return to work nor by the employee to
justify payment of separation pay.

This happened when there is an illegally dismissed employee and the court would order for
reinstatement of the said employee. the doctrine of strained relations would come in if reinstatement is
would no longer feasible due to strain relation between employer and employee. So, instead of reinstating
the employee, the employer in this case would be ordered to pay the separation pay of the employee.

Under the doctrine of strained relations, the payment of separation pay is considered an acceptable
alternative to reinstatement when the latter option is no longer desirable or viable. On one hand, such
payment liberates the employee from what could be a highly oppressive work environment. On the other
hand, it releases the employer from the grossly unpalatable obligation of maintaining in its employ a worker
it could no longer trust.

Nonetheless, the doctrine of strained relations should not be used recklessly or applied loosely nor be
based on impression alone. It cannot be applied indiscriminately since every labor dispute almost invariably
results in "strained relations;" otherwise, reinstatement can never be possible simply because some hostility
is engendered between the parties as a result of their disagreement. Strained relations must be
demonstrated as a fact. It must be adequately supported by substantial evidence showing that the
relationship between the employer and the employee is indeed strained as a necessary consequence of
the judicial controversy.

Republic of the Philippines

Congress of the Philippines
Metro Manila
Fifteenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand twelve.

[REPUBLIC ACT NO. 10361]

AN ACT INSTITUTING POLICIES FOR THE PROTECTION

AND WELFARE OF DOMESTIC WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

ARTICLE I

GENERAL PROVISIONS
SECTION 1. Short Title. – This Act shall be known as the “Domestic Workers Act” or “Batas
Kasambahay”.

SEC. 2. Declaration of Policies. – It is hereby declared that:

(a) The State strongly affirms labor as a primary social force and is committed to respect, promote, protect
and realize the fundamental principles and rights at work including, but not limited to, abolition of child
labor, elimination of all forms of forced labor, discrimination in employment and occupation, and trafficking
in persons, especially women and children;

(b) The State adheres to internationally accepted working conditions for workers in general, and establishes
labor standards for domestic workers in particular, towards decent employment and income, enhanced
coverage of social protection, respect for human rights and strengthened social dialogue;

(c) The State recognizes the need to protect the rights of domestic workers against abuse, harassment,
violence, economic exploitation and performance of work that is hazardous to their physical and mental
health; and

(d) The State, in protecting domestic workers and recognizing their special needs to ensure safe and
healthful working conditions, promotes gender-sensitive measures in the formulation and implementation of
policies and programs affecting the local domestic work.

SEC. 3. Coverage. – This Act applies to all domestic workers employed and working within the country.

SEC. 4. Definition of Terms. – As used in this Act, the term:

(a) Debt bondage refers to the rendering of service by the domestic worker as security or payment for a
debt where the length and nature of service is not clearly defined or when the value of the service is not
reasonably applied in the payment of the debt.

(b) Deployment expenses refers to expenses that are directly used for the transfer of the domestic worker
from place of origin to the place of work covering the cost of transportation. Advances or loans by the
domestic worker are not included in the definition of deployment expenses.

(c) Domestic work refers to work performed in or for a household or households.

(d) Domestic worker or “Kasambahay” refers to any person engaged in domestic work within an
employment relationship such as, but not limited to, the following: general househelp, nursemaid or “yaya”,
cook, gardener, or laundry person, but shall exclude any person who performs domestic work only
occasionally or sporadically and not on an occupational basis.

The term shall not include children who are under foster family arrangement, and are provided access to
education and given an allowance incidental to education, i.e. “baon”, transportation, school projects and
school activities.

(e) Employer refers to any person who engages and controls the services of a domestic worker and is party
to the employment contract.

(f) Household refers to the immediate members of the family or the occupants of the house that are directly
provided services by the domestic worker.

(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership, corporation or entity
licensed to engage in the recruitment and placement of domestic workers for local employment.

(h) Working children, as used under this Act, refers to domestic workers who are fifteen (15) years old and
above but below eighteen (18) years old.
 ARTICLE II

RIGHTS AND PRIVILEGES

SEC. 5. Standard of Treatment. – The employer or any member of the household shall not subject a
domestic worker or “kasambahay” to any kind of abuse nor inflict any form of physical violence or
harassment or any act tending to degrade the dignity of a domestic worker.

SEC. 6. Board, Lodging and Medical Attendance. – The employer shall provide for the basic necessities
of the domestic worker to include at least three (3) adequate meals a day and humane sleeping
arrangements that ensure safety.

The employer shall provide appropriate rest and assistance to the domestic worker in case of illnesses and
injuries sustained during service without loss of benefits.

At no instance shall the employer withdraw or hold in abeyance the provision of these basic necessities as
punishment or disciplinary action to the domestic worker.

SEC. 7. Guarantee of Privacy. – Respect for the privacy of the domestic worker shall be guaranteed at all
times and shall extend to all forms of communication and personal effects. This guarantee equally
recognizes that the domestic worker is obliged to render satisfactory service at all times.

SEC. 8. Access to Outside Communication. – The employer shall grant the domestic worker access to
outside communication during free time: Provided, That in case of emergency, access to communication
shall be granted even during work time. Should the domestic worker make use of the employer’s telephone
or other communication facilities, the costs shall be borne by the domestic worker, unless such charges are
waived by the employer.

SEC. 9. Right to Education and Training. – The employer shall afford the domestic worker the
opportunity to finish basic education and may allow access to alternative learning systems and, as far as
practicable, higher education or technical and vocational training. The employer shall adjust the work
schedule of the domestic worker to allow such access to education or training without hampering the
services required by the employer.

SEC. 10. Prohibition Against Privileged Information. – All communication and information pertaining to
the employer or members of the household shall be treated as privileged and confidential, and shall not be
publicly disclosed by the domestic worker during and after employment. Such privileged information shall
be inadmissible in evidence except when the suit involves the employer or any member of the household in
a crime against persons, property, personal liberty and security, and chastity.

ARTICLE III

PRE-EMPLOYMENT

SEC. 11. Employment Contract. – An employment contract shall be executed by and between the
domestic worker and the employer before the commencement of the service in a language or dialect
understood by both the domestic worker and the employer. The domestic worker shall be provided a copy
of the duly signed employment contract which must include the following:

(a) Duties and responsibilities of the domestic worker;

(b) Period of employment;

(c) Compensation;

(d) Authorized deductions;

(e) Hours of work and proportionate additional payment;

(f) Rest days and allowable leaves;

(g) Board, lodging and medical attention;

(h) Agreements on deployment expenses, if any;

(i) Loan agreement;

(j) Termination of employment; and

(k) Any other lawful condition agreed upon by both parties.

The Department of Labor and Employment (DOLE) shall develop a model employment contract for
domestic workers which shall, at all times, be made available free of charge to domestic workers,
employers, representative organizations and the general public. The DOLE shall widely disseminate
information to domestic workers and employers on the use of such model employment contract.

In cases where the employment of the domestic worker is facilitated through a private employment agency,
the PEA shall keep a copy of all employment contracts of domestic workers and shall be made available for
verification and inspection by the DOLE.

SEC. 12. Pre-Employment Requirement. – Prior to the execution of the employment contract, the
employer may require the following from the domestic worker:

(a) Medical certificate or a health certificate issued by a local government health officer;

(b) Barangay and police clearance;

(c) National Bureau of Investigation (NBI) clearance; and

(d) Duly authenticated birth certificate or if not available, any other document showing the age of the
domestic worker such as voter’s identification card, baptismal record or passport.

However, Section 12(a), (b), (c) and (d) shall be standard requirements when the employment of the
domestic worker is facilitated through the PEA.

The cost of the foregoing shall be borne by the prospective employer or agency, as the case may be.

SEC. 13. Recruitment and Finder’s Fees. – Regardless of whether the domestic worker was hired
through a private employment agency or a third party, no share in the recruitment or finder’s fees shall be
charged against the domestic worker by the said private employment agency or third party.

SEC. 14. Deposits for Loss or Damage. – It shall be unlawful for the employer or any other person to
require a domestic worker to make deposits from which deductions shall be made for the reimbursement of
loss or damage to tools, materials, furniture and equipment in the household.

SEC. 15. Prohibition on Debt Bondage. – It shall be unlawful for the employer or any person acting on
behalf of the employer to place the domestic worker under debt bondage.

SEC. 16. Employment Age of Domestic Workers. – It shall be unlawful to employ any person below
fifteen (15) years of age as a domestic worker. Employment of working children, as defined under this Act,
shall be subject to the provisionsof Section 10(A), paragraph 2 of Section 12-A, paragraph 4 of Section 12-
D, and Section 13 of Republic Act No. 7610, as amended, otherwise known as the “Special Protection of
Children Against Child Abuse, Exploitation and Discrimination Act”.

Working children shall be entitled to minimum wage, and all benefits provided under this Act.
Any employer who has been sentenced by a court of law of any offense against a working child under this
Act shall be meted out with a penalty one degree higher and shall be prohibited from hiring a working child.

SEC. 17. Employer’s Reportorial Duties. – The employers shall register all domestic workers under their
employment in the Registry of Domestic Workers in the barangay where the employer’s residence is
located. The Department of the Interior and Local Government (DILG) shall, in coordination with the DOLE,
formulate a registration system for this purpose.

SEC. 18. Skills Training, Assessment and Certification. – To ensure productivity and assure quality
services, the DOLE, through the Technical Education and Skills Development Authority (TESDA), shall
facilitate access of domestic workers to efficient training, assessment and certification based on a duly
promulgated training regulation.

ARTICLE IV

EMPLOYMENT – TERMS AND CONDITIONS

SEC. 19. Health and Safety. – The employer shall safeguard the health and safety of the domestic worker
in accordance with laws, rules and regulations, with due consideration of the peculiar nature of domestic
work.

SEC. 20. Daily Rest Period. – The domestic worker shall be entitled to an aggregate daily rest period of
eight (8) hours per day.

SEC. 21. Weekly Rest Period. – The domestic worker shall be entitled to at least twenty-four (24)
consecutive hours of rest in a week. The employer and the domestic worker shall agree in writing on the
schedule of the weekly rest day of the domestic worker: Provided, That the employer shall respect the
preference of the domestic worker as to the weekly rest day when such preference is based on religious
grounds. Nothing in this provision shall deprive the domestic worker and the employer from agreeing to the
following:

(a) Offsetting a day of absence with a particular rest day;

(b) Waiving a particular rest day in return for an equivalent daily rate of pay;

(c) Accumulating rest days not exceeding five (5) days; or

(d) Other similar arrangements.

SEC. 22. Assignment to Nonhousehold Work. – No domestic worker shall be assigned to work in a

commercial, industrial or agricultural enterprise at a wage rate lower than that provided for agricultural or
nonagricultural workers. In such cases, the domestic worker shall be paid the applicable minimum wage.

SEC. 23. Extent of Duty. – The domestic worker and the employer may mutually agree for the former to
temporarily perform a task that is outside the latter’s household for the benefit of another household.
However, any liability that will be incurred by the domestic worker on account of such arrangement shall be
borne by the original employer. In addition, such work performed outside the household shall entitle the
domestic worker to an additional payment of not less than the existing minimum wage rate of a domestic
worker. It shall be unlawful for the original employer to charge any amount from the said household where
the service of the domestic worker was temporarily performed.

SEC 24. Minimum Wage. – The minimum wage of domestic workers shall not be less than the following:

(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National Capital
Region (NCR);

(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first class
municipalities; and
(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other municipalities.

After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional Tripartite and
Productivity Wage Boards (RTPWBs) shall review, and if proper, determine and adjust the minimum wage
rates of domestic workers.

SEC 25. Payment of Wages. – Payment of wages shall be made on time directly to the domestic worker to
whom they are due in cash at least once a month. The employer, unless allowed by the domestic worker
through a written consent, shall make no deductions from the wages other than that which is mandated by
law. No employer shall pay the wages of a domestic worker by means of promissory notes, vouchers,
coupons, tokens, tickets, chits, or any object other than the cash wage as provided for under this Act.

The domestic worker is entitled to a thirteenth month pay as provided for by law.

SEC. 26. Pay Slip. – The employer shall at all times provide the domestic worker with a copy of the pay
slip containing the amount paid in cash every pay day, and indicating all deductions made, if any. The
copies of the pay slip shall be kept by the employer for a period of three (3) years.

SEC. 27. Prohibition on Interference in the Disposal of Wages. – It shall be unlawful for the employer to
interfere with the freedom of any domestic worker to dispose of the latter’s wages. The employer shall not
force, compel or oblige the domestic worker to purchase merchandise, commodities or other properties
from the employer or from any other person, or otherwise make use of any store or services of such
employer or any other person.

SEC 28. Prohibition Against Withholding of Wages. – It shall be unlawful for an employer, directly or
indirectly, to withhold the wages of the domestic worker. If the domestic worker leaves without any
justifiable reason, any unpaid salary for a period not exceeding fifteen (15) days shall be forfeited. Likewise,
the employer shall not induce the domestic worker to give up any part of the wages by force, stealth,
intimidation, threat or by any other means whatsoever.

SEC. 29. Leave Benefits. – A domestic worker who has rendered at least one (1) year of service shall be
entitled to an annual service incentive leave of five (5) days with pay: Provided, That any unused portion of
said annual leave shall not be cumulative or carried over to the succeeding years. Unused leaves shall not
be convertible to cash.

SEC. 30. Social and Other Benefits. – A domestic worker who has rendered at least one (1) month of
service shall be covered by the Social Security System (SSS), the Philippine Health Insurance Corporation
(PhilHealth), and the Home Development Mutual Fund or Pag-IBIG, and shall be entitled to all the benefits
in accordance with the pertinent provisions provided by law.

Premium payments or contributions shall be shouldered by the employer. However, if the domestic worker
is receiving a wage of Five thousand pesos (P5,000.00) and above per month, the domestic worker shall
pay the proportionate share in the premium payments or contributions, as provided by law.

The domestic worker shall be entitled to all other benefits under existing laws.

SEC. 31. Rescue and Rehabilitation of Abused Domestic Workers. – Any abused or exploited domestic
worker shall be immediately rescued by a municipal or city social welfare officer or a social welfare officer
from the Department of Social Welfare and Development (DSWD) in coordination with the concerned
barangay officials. The DSWD and the DILG shall develop a standard operating procedure for the rescue
and rehabilitation of abused domestic workers, and in coordination with the DOLE, for possible subsequent
job placement.

ARTICLE V

POST EMPLOYMENT

SEC. 32. Termination of Service. – Neither the domestic worker nor the employer may terminate the
contract before the expiration of the term except for grounds provided for in Sections 33 and 34 of this Act.
If the domestic worker is unjustly dismissed, the domestic worker shall be paid the compensation already
earned plus the equivalent of fifteen (15) days work by way of indemnity. If the domestic worker leaves
without justifiable reason, any unpaid salary due not exceeding the equivalent fifteen (15) days work shall
be forfeited. In addition, the employer may recover from the domestic worker costs incurred related to the
deployment expenses, if any: Provided, That the service has been terminated within six (6) months from
the domestic worker’s employment.

If the duration of the domestic service is not determined either in stipulation or by the nature of the service,
the employer or the domestic worker may give notice to end the working relationship five (5) days before
the intended termination of the service.

The domestic worker and the employer may mutually agree upon written notice to pre-terminate the
contract of employment to end the employment relationship.

SEC. 33. Termination Initiated by the Domestic Worker. – The domestic worker may terminate the
employment relationship at any time before the expiration of the contract for any of the following causes:

(a) Verbal or emotional abuse of the domestic worker by the employer or any member of the household;

(b) Inhuman treatment including physical abuse of the domestic worker by the employer or any member of
the household;

(c) Commission of a crime or offense against the domestic worker by the employer or any member of the
household;

(d) Violation by the employer of the terms and conditions of the employment contract and other standards
set forth under this law;

(e) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the
household; and

(f) Other causes analogous to the foregoing.

SEC. 34. Termination Initiated by the Employer. – An employer may terminate the services of the
domestic worker at any time before the expiration of the contract, for any of the following causes:

(a) Misconduct or willful disobedience by the domestic worker of the lawful order of the employer in
connection with the former’s work;

(b) Gross or habitual neglect or inefficiency by the domestic worker in the performance of duties;

(c) Fraud or willful breach of the trust reposed by the employer on the domestic worker;

(d) Commission of a crime or offense by the domestic worker against the person of the employer or any
immediate member of the employer’s family;

(e) Violation by the domestic worker of the terms and conditions of the employment contract and other
standards set forth under this law;

(f) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the
household; and

(g) Other causes analogous to the foregoing.

SEC. 35. Employment Certification. – Upon the severance of the employment relationship, the employer
shall issue the domestic worker within five (5) days from request a certificate of employment indicating the
nature, duration of the service and work performance.
 ARTICLE VI

PRIVATE EMPLOYMENT AGENCIES

SEC. 36. Regulation of Private Employment Agencies (PEAs). – The DOLE shall, through a system of
licensing and regulation, ensure the protection of domestic workers hired through the PEAs.

The PEA shall be jointly and severally liable with the employer for all the wages, wage-related benefits, and
other benefits due a domestic worker.

The provision of Presidential Decree No. 442, as amended, otherwise known as the “Labor Code of the
Philippines”, on qualifications of the PEAs with regard to nationality, networth, owners and officers, office
space and other requirements, as well as nontransferability of license and commission of prohibited
practices, shall apply.

In addition, PEAs shall have the following responsibilities:

(a) Ensure that domestic workers are not charged or levied any recruitment or placement fees;

(b) Ensure that the employment agreement between the domestic worker and the employer stipulates the
terms and conditions of employment and all the benefits prescribed by this Act;

(c) Provide a pre-employment orientation briefing to the domestic worker and the employer about their
rights and responsibilities in accordance with this Act;

(d) Keep copies of employment contracts and agreements pertaining to recruited domestic workers which
shall be made available during inspections or whenever required by the DOLE or local government officials;

(e) Assist domestic workers with respect to complaints or grievances against their employers; and

(f) Cooperate with government agencies in rescue operations involving abused or exploited domestic
workers.

ARTICLE VII

SETTLEMENT OF DISPUTES

SEC. 37. Mechanism for Settlement of Disputes. – All labor-related disputes shall be elevated to the
DOLE Regional Office having jurisdiction over the workplace without prejudice to the filing of a civil or
criminal action in appropriate cases. The DOLE Regional Office shall exhaust all conciliation and mediation
efforts before a decision shall be rendered.

Ordinary crimes or offenses committed under the Revised Penal Code and other special penal laws by
either party shall be filed with the regular courts.

ARTICLE VIII

SPECIAL PROVISIONS

SEC. 38. Information Program. – The DOLE shall, in coordination with the DILG, the SSS, the PhilHealth
and Pag-IBIG develop and implement a continuous information dissemination program on the provisions of
this Act, both at the national and local level, immediately after the enactment of this law.

SEC. 39. “Araw Ng Mga Kasambahay”. – The date upon which the President shall approve this
“Domestic Workers Act” shall be designated as the “Araw ng mga Kasambahay”.

ARTICLE IX
 PENAL AND MISCELLANEOUS PROVISIONS

SEC. 40. Penalty. – Any violation of the provisions of this Act declared unlawful shall be punishable with a
fine of not less than Ten thousand pesos (P10,000.00) but not more than Forty thousand pesos
(P40,000.00) without prejudice to the filing of appropriate civil or criminal action by the aggrieved party.

SEC. 41. Transitory Provision; Non-Diminution of Benefits. – All existing arrangements between a

domestic worker and the employer shall be adjusted to conform to the minimum standards set by this Act
within a period of sixty (60) days after the effectivity of this Act: Provided, That adjustments pertaining to
wages shall take effect immediately after the determination and issuance of the appropriate wage order by
the RTWPBs: Provided, further, That nothing in this Act shall be construed to cause the diminution or
substitution of any benefits and privileges currently enjoyed by the domestic worker hired directly or through
an agency.

SEC. 42. Implementing Rules and Regulations. – Within ninety (90) days from the effectivity of this Act,
the Secretary of Labor and Employment, the Secretary of Social Welfare and Development, the Secretary
of the Interior and Local Government, and the Director General of the Philippine National Police, in
coordination with other concerned government agencies and accredited nongovernment organizations
(NGOs) assisting domestic workers, shall promulgate the necessary rules and regulations for the effective
implementation of this Act.

ARTICLE X

FINAL PROVISIONS

SEC. 43. Separability Clause. – If any provision or part of this Act is declared invalid or unconstitutional,
the remaining parts or provisions not affected shall remain in full force and effect.

SEC. 44. Repealing Clause. – All articles or provisions of Chapter III (Employment of Househelpers) of
Presidential Decree No. 442, as amended and renumbered by Republic Act No. 10151 are hereby
expressly repealed. All laws, decrees, executive orders, issuances, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 45. Effectivity Clause. – This Act shall take effect fifteen (15) days after its complete publication in
the Official Gazette or in at least two (2) national newspapers of general circulation.