REGULATORY FRAMEWORK AND LEGAL ISSUES
IN BUSINESS
Anti-Bouncing check Law BP BLG. 22
AN ACT PENALIZING THE MAKING OR DRAWING
AND ISSUANCE OF A CHECK WITHOUT
SUFFICIENT FUNDS OR CREDIT AND FOR OTHER
PURPOSES.
Definition (Section 1.)
ANY PERSON who makes or draws and issues any
check to apply on account or for value, knowing
at the time of issue that he DOES NOT HAVE
SUFFICIENT FUNDS IN OR CREDIT with the
drawee bank for the payment of such check in
full upon its presentment.
Check is subsequently dishonored by the drawee
bank for insufficiency of funds or credit or would
have been dishonored for the same reason had not
the drawer, without any valid reason, ordered the
bank to stop payment.
Penalty Imposed:
• Punished by Imprisonment
o Not <30 days but not >1 year
• Fine
o Not < but not > double the
amount of the check.
o Shall not exceed 200,000 Pesos.
• Both at the discretion of the court
Applicability of Penalty: (Persons Liable)
1. ANY PERSON who has sufficient funds in
or credit the drawee bank makes or
draws and issues a check.
- shall fail to keep sufficient funds or to
maintain a credit to cover the full
amount of the check
- if presented within a period of ninety
(90) days from the date appearing
thereon, for which reason it is
dishonored by the drawee bank.
2. Drawn by the corporation. Company or
entity, or person who signed the check on
behalf of such drawer.
- SHALL BE LIABLE UNDER THIS ACT
PURPOSE: The law punishes the acts of making
or drawing a check with knowledge by the issuer
at the time of check is issued, that he does not
have knowledge thereof, and failure to keep
within a period of 90 days from the date
appearing the check.
Requisites:
1. A person has sufficient funds in or credit
with the drawee bank when he makes or
draws and issues a check.
2. He fails to keep sufficient funds or
maintain a credit to cover the full
amount of the check if presented within
90 days from the date appearing.
3. The check is dishonored by the drawee
bank.
Presumption of Knowledge
Arises: The issuer has knowledge of the
insufficiency of funds is brought into existence
only after it is proved that the issuer had received
notice of dishonor and that within 5 banking
days from receipt thereof, he failed to pay the
amount of the check or to make arrangement for
its payment.’
If the issuer was able to make full payment of the
amount which appears on the check within 5
days from his receipt of notice of dishonor.
Effect: Then he can raise such defense, and a
criminal action against him is already disallowed.
Evidence of knowledge of insufficient funds
(Section 2)
The Act of making, drawing and issuance of
check payment which is refused because of
insufficient of funds or in credit with such bank
(Drawee’s Bank)
= SHALL BE PRIMA FACIE EVIDENCE
If within a period of 90 days from the date of the
check.
Unless: such maker or drawer pays the holder
thereof the amount due thereon or makes
arrangements for payment in full by the drawee
of such check within (5) banking days after
receiving notice that such check has not been
paid by the drawee.
Stop Payment Order
A person becomes liable under this Act.
When the issuer orders his or her bank to make
a stop payment of the check without any valid
reason and the check would have been
dishonored for insufficiency of funds had it not
been for the stop payment order given by the
issuer.
 Philippines though drawn and issued outside
BP. BLG.22 VS. ESTAFA thereof, are within the coverage of said law. The
law likewise applied to checks drawn against
BP BLG .22 ARTICLE 315 current accounts in foreign currency.
Kind of Criminal and Civil Criminal and Civil
Crime Crime against Public Crime against Unclaimed Balances Act of 3936
Interest Property
Nature Mala prohibitum. Mala in se. An act requiring banks, trust companies, and
The mere commission The action is wrong
building and loan associations.
of the act that the law in itself or by nature,
prohibits thus, good faith is a
proper defense. OBLIGATION OF BANKS:
1. Act of making, 1. Postdating To transfer unclaimed balances held by them to
drawing and or issuance the treasurer of the Philippines and for other
the issuance of a check in purposes.
2. Knowledge of payment of
the drawer an REQUISITES:
3. Subsequent obligation 1. Credits or deposits of:
dishonor 2. Insufficiency • Money
4. Again, the of funds • Bullion
presence of all 3. Damage to
• Security or other evidence of
these the payee
indebtedness of any kind
requirements 4. If any of
is important. these is • Interest
absent, a 2. Is made with banks, buildings, and loan
person associations, and trust companies
cannot be 3. In favor of any person known to be dead
held liable or who has not made further deposits or
for Estafa. withdrawals during the preceding 10
Relation Deceit and Deceit years or more.
to its damages and
nature ARE NOT damages DEFINITION OF TERMS:
ESSENTIAL ARE Unclaimed Balances
ESSENTIAL
➢ Includes Credits or deposits of money,
bullion, security, or other evidence of
indebtedness of any kind, and interest
with banks.
➢ In favor of ANY PERSON known to be
dead or who has not made further
deposits or withdrawals during the
preceding 10 years or more
Applicant
➢ The Depositor or his successor-in-
Penalty (ESTAFA):
interest who request for the reactivation
• Prison Correctional in its maximum
of the account which was reported by his
period to prison mayor in its minimum
depository bank.
period, if the amount of Php 12,000.00
Procedure
but does not exceed Php 22,000.00.
➢ The course of action has to be complied
• If the amount exceeds this, the penalty
with by the applicant in order that his
shall be in its maximum period, adding
request be given due course.
one year for each additional Php
Covered Institution
10,000.00; and
➢ Refers to ALL banks, trust companies,
• Shall not exceed 20 years. savings and mortgages banks, mutual
building and loan associations, all
Foreign Checks banking institutions, of every kind.
✓ Are applicable to Anti-Bouncing Affidavit of Undertaking
check Law. ➢ a sworn statement executed by the
Proceedings of the batasang pambansa responsible authorized officer of the
Provided: They are either drawn and issued in bank absolving the Bureau of the
the Philippines though payable outside thereof Treasury from any liability that may arise
or made payable and dishonored in the
 due to the granting of the Applicant’s
request for reactivation.
Section 4
Neglect or refusal of president, cashier or
managing the bank, building and loan
association, or trust corporations to make
and file a sworn statement.
PENALTY:
▪ Shall pay the gov’t the sum of PHP
500,000 a month or fraction thereof
during which such default shall
continue.
Law on Secrecy of Bank Deposit
R.A. 1405
“AN ACT PROHIBITING DISCLOSURE OF OR
INQUIRY INTO, DEPOSITS WITH ANY BANKING
INSTITUTION AND PROVIDING PENALTY
THEREFORE.”
Purpose (Section 1)
It is hereby declared to be the policy of the
Government to give encouragement to the
people to deposit their money in banking
institutions and to discourage private hoarding
so that the same may be properly utilized by
banks in authorized loans to assist in the
economic development of the country.
Prohibited Acts:
Any official or employee of a banking institution
disclose to any person any other than those
mentioned in section 2 hereof any information
concerning said deposits.
PENALTY:
1. Subject the offender upon conviction.
a. Imprisonment of not more than
5 years
b. Fine of not more than PHP
20,000
c. Both in discretion of the court
Covered Deposits (Section2)
General Rule:
Peso Deposits
ALL DEPOSITS of whatever nature with banks
or banking institutions the Philippines
including investments in bonds issued by the
Government of the Philippines, its political
subdivisions and its instrumentalities, are
hereby considered as of an absolutely
confidential nature and may not be
examined, inquired or looked into by any
person, government official, bureau or
office,
Except:
▪ Upon written permission of the
depositor,
▪ in cases of impeachment, or upon
order of a competent court
▪ in cases of bribery or dereliction of
duty of public officials, or
▪ in cases where the money deposited
or invested is the subject matter of
the litigation.
▪ Upon inquiry by the Commissioner of
Internal Revenue for the purpose of
determining the net estate of a
deceased depositor for tax purposes
▪ Report of banks to Anti-Money
Laundering Council of covered
and/or suspicious transactions.
▪ Upon order of the competent court
or tribunal in cases involving
unexplained wealth under the Anti-
Graft and Corrupt Practices Act or
Republic Act No. 3019
▪ In cases of terrorism under the
Human Security Act of 2007 or
Republic Act No. 9372
▪ Disclosure to the Treasurer of the
Philippines for dormant deposits for
at least 10 years under the
Unclaimed Balances Act (RA 3936
Foreign currency deposits
General Rule:
foreign currency deposits in banks are likewise
absolutely confidential and cannot be disclosed:
EXCEPT:
▪ When there is written consent of
depositor under Section 8 of the Foreign
Currency Deposits Act (RA 6426)
▪ Under Section 11 of the Anti-Money
Laundering Act (probable cause
established that it is related to an
unlawful activity as defined or money
laundering)
▪ Under Section 27 and 28 of the Human
Security Act (existence of probable cause
in anti-terrorism cases and those
involving persons charged with or
suspected of the crime of terrorism or
conspiracy to commit terrorism,
judicially declared and outlawed
terrorist organization, association, or
group of persons, or member of such
organization, association, or group of
persons)
Garnishment of deposit
Garnishment - any legal or equitable procedure
through which the earnings of any individual are
required to be withheld for payment of any debt.
Garnishment: Bank accounts may be garnished
by the creditors of the depositor.
 In garnishment, there is no violation of the bank
secrecy law since the amount of the deposit is
not actually disclosed.
Except: Foreign currency deposits, Section 8 of
RA 6426 and Those exempt under Rules of
Court
Trust Accounts: Are likewise covered by the
bank secrecy law.
Applicability to Special Laws
All Acts or parts of Acts, Special Charters,
Executive Orders, Rules and Regulations which
are inconsistent with the provisions of this Act
are hereby repealed.
Truth in Lending Act
R.A. 3765
AN ACT TO REQUIRE THE DISCLOSURE OF
FINANCE CHARGES IN CONNECTION WITH
EXTENSIONS OF CREDIT.
Purpose:
To protect its citizens from a lack of awareness of
the true cost of credit to the user by assuring a
full disclosure of such cost with a view of
preventing the uninformed use of credit to the
detriment of the national economy.
Obligation of creditors to person to whom
credit is extended (shall contain the ff
information)
1. the cash price or delivered price of the
property or service to be acquired.
2. the amounts, if any, to be credited as
down payment and/or trade-in
3. the difference between the amounts set
forth under clauses (1) and (2).
4. the charges, individually itemized, which
are paid or to be paid by such person in
connection with the transaction, but
which are not incident to the extension
of credit.
5. the total amount to be financed.
6. The finance charge expressed in terms of
pesos and centavos.
7. The percentage that the finance bears to
the total amount to be financed
expressed as a simple annual rate on the
outstanding unpaid balance of the
obligation.
Covered and excluded transactions.
The following regulations shall apply to all banks
engaged in the following types of credit
transactions:
1. Any loan, mortgage, deed of trust,
advance and discount.
2. Any conditional sales contract, any
contract to sell, or sale or contract of sale
of property or services, either for
present or future delivery, under which
part or all of the price is payable
subsequent to the making of such sale or
contract.
3. Any rental-purchase contract.
4. Any contract or arrangement for the
hire, bailment, or leasing of property.
5. Any option, demand, lien, pledge, or
other claim against, or for delivery of,
property or money.
6. Any purchase, or other acquisition of, or
any credit upon security of any
obligation or claim arising out of any of
the foregoing.
7. Any transaction or series of transactions
having a similar purpose or effect.
The following categories of credit transactions
are outside the scope of these regulations:
1. Credit transactions which do not involve
the payment of any finance charge by
the debtor.
2. Credit transactions in which the debtor is
the one specifying a definite and fixed
set of credit terms such as bank deposits,
insurance contracts, sale of bonds, etc.
Consequences of non-compliance with
obligation
Any creditor who in connection with any credit
transaction fails to disclose to any person any
information in violation of this Act or any
regulation issued thereunder shall be liable to
such person in:
▪ PHP 100 or an amount equal to twice the
finance charged required by such
creditor in connection with such
transaction whichever is the greater
o Except:
that such liability shall
not exceed P2,000 on
any credit transaction
▪ Action to recover such penalty may be
brought by such person within one year
from the date of the occurrence of the
violation,
o in any court of competent
jurisdiction. In any action under
this subsection in which any
person is entitled to a recovery,
the creditor shall be liable for
reasonable attorney's fees and
court costs as determined by the
court.
 ▪ Except as specified in subsection (a) of
this section, nothing contained in this
Act or any regulation contained in this
Act or any regulation thereunder shall
affect the validity or enforceability of any
contract or transactions.
▪ Any person who willfully violates any
provision of this Act or any regulation
issued thereunder shall be fined not less
than P1,00 or more than P5,000 or
imprisonment for not less than 6
months, nor more than one year or both.
▪ No punishment or penalty provided by
this Act shall apply to the Philippine
Government or any agency or any
political subdivision thereof.
▪ A final judgment hereafter rendered in
any criminal proceeding under this Act
to the effect that a defendant has
willfully violated this Act shall be prima
facie evidence against such defendant in
an action or proceeding brought by any
other party against such defendant
under this Act as to all matters
respecting which said judgment would
be an estoppel as between the parties
thereto.
Philippine Deposit Insurance Corporation
R.A NO.9576
AN ACT INCREASING THE MAXIMUM DEPOSIT INSURANCE
COVERAGE, AND IN CONNECTION THEREWITH, TO
STRENGTHEN THE REGULATORY AND ADMINISTRATIVE
AUTHORITY, AND FINANCIAL CAPABILITY OF THE PHILIPPINE
DEPOSIT INSURANCE CORPORATION (PDIC), AMENDING
FOR THIS PURPOSE REPUBLIC ACT NUMBERED THREE
THOUSAND FIVE HUNDRED NINETY-ONE, AS AMENDED,
OTHERWISE KNOWN AS THE PDIC CHARTER, AND FOR
OTHER PURPOSES
PURPOSE:
to insure the deposits of all banks. PDIC exists to
protect depositors by providing deposit
insurance coverage for the depositing public and
help promote financial stability.
Insurable Deposits
• The PDIC provides a maximum deposit
insurance coverage of PhP500,000 per
depositor per bank. It covers all types of
bank deposits in banks.
Notes: (PWEDE MA ADJUST, ni monetary
board) ( I add and divide if nay existing
account sa 500k) If naa say multiple accounts
• For insurance purposes, all deposit
accounts of a depositor in a closed bank
maintained in the same right and
capacity shall be added together. Joint
accounts shall be insured separately
from any individually owned deposit
accounts.
• the first three (3) years from the
effectivity of this Act, the first Two
hundred fifty thousand pesos
(P250,000.00) of the deposit insurance
coverage shall be for the account of the
Corporation, and those in excess of Two
hundred fifty thousand pesos
(P250,000.00) but not more than five
hundred thousand pesos (P500,000.00)
shall be for the account of the National
Government. The Congress shall
annually appropriate the necessary
funding to reimburse the Corporation for
any payment to insured depositors paid
in excess of Two hundred fifty thousand
pesos (P250,000.00).
Maximum Liability
500,000 Maximum Liability
PDIC ang mo manage sa bangko. Upon actual
takeover of the bank
• Will provide notice of the contacts
provided in the bank and I post sa
newspaper.
• Give notice to different branches of the
bank. (3 consecutive weeks)
Not insured in PDIC
If investment product
- Bonds, Securities, and other similar
If Fraudulent transactions
If the practice is unsafe and unsound practice
(Declared by BSP)
If unlawful activities in AMLA
Insured Deposits – means the amount due to
any bona fide depositor for legitimate deposits in
an insured bank net of any obligation of the
depositor to the insured bank as of date of
closure, but not to exceed Five hundred
thousand pesos (P500,000.00)
Requirements of claims (insurance)
If more than 100 thousand pesos or not updated
and add, nay business sa bank, and dili maintain
ang chucuh
1. Original Evidence of deposit
2. One Valid ID (With name and Signature)
3. Depositors 18 and below (PSA and Valid
ID of the parent
4. Original Copy of SPA
5. Claim Form
If di required kay mag sends of ang PDIC og Postal
chuchu ( Mo initiate)
 ADDITIONAL NOTES: receipts or deposit substitute
Mode of payment; Cash or tagaan kag other bank instruments, trading orders, transaction
details tickets and confirmations of sale or
Usual ma close sa bank kay RURAL BANK investments and money market
(because gamay ra sila) instruments
➢ other similar instruments where title
Anti-Money Laundering Act thereto passes to another by
- Criminalizing the money laundering endorsement, assignment or delivery.
- Gilabhan nila ang money as if its clean
Offender
Definitions ➢ refers to any person who commits a
Covered Institutions money laundering offense.
➢ banks, non-banks, quasi-banks, trust Person
entities, and all other institutions and ➢ refers to any natural or juridical person.
their subsidiaries and affiliates Proceeds
supervised or regulated by the Bangko ➢ refers to an amount derived or realized
Sentral ng Pilipinas (BSP); from an unlawful activity.
Notes: Gakupot og kwarta Supervising Authority
Covered: Mutual Funds, Foreign chuchu, ➢ refers to the appropriate supervisory or
pawnshops (In excess of 1 Million and threshold), regulatory agency, department or office
brokerage, Casino, Lawyers and accountants supervising or regulating the covered
(Quili: Dapat nay client relationship) institutions

Covered Transactions Transaction

➢ refers to any act establishing any right or
A transaction in cash or other equivalent obligation or giving rise to any
monetary instrument exceeding Five Hundred contractual or legal relationship
Thousand pesos (PHP500,000.00) within 1 between the parties thereto. It also
banking day. includes any movement of funds by any
means with a covered institution.
A transaction with or involving jewelry dealers,
dealers in precious metals and dealers in Unlawful Activity
precious stones in cash or other equivalent ➢ refers to any act or omission or series or
monetary instrument exceeding One Million combination thereof involving or having
pesos (Php1,000,000.00). relation to the following: (It involves
money)
A casino cash transaction exceeding Five Million 1. Kidnapping for ransom
Pesos (PHP5,000,000.00) or its equivalent in 2. Dangerous Drugs Act
other currency. 3. Anti-Graft and Corrupt
Practices Act
Ilang buhaton 4. Plunder
Customer ID 5. Robbery and extortion
- Establishment of Identity and system of the 6. Jueteng and Masiao
client punished as illegal gmabling
Record Keeping under presidential deceree
- All records of all institutions should be safely no. 1602. (Unregistered
restored at least 5 years (Retention) gaming)
Report Covered and Suspicious Transactions 7. Privacy on the high seas
I report 5 working days sa AMLA council. (unlawful na barko)
Maka extend if provided but shall not extend 15 8. Qualified theft
working days. 9. Swindling (Estafa)
10. Smuggling
Money Instrument (Misappropriation of assets)
➢ coins or currency of legal tender of the 11. Violations on the Electronic
Philippines, or of any other country Commerce Act of 2000
➢ drafts, checks and notes. 12. Hijacking and other
➢ securities or negotiable instruments, violations
bonds, commercial papers, deposit 13. SIRC
certificates, trust certificates, custodial
 14. Felonies or offenses of a
similar nature are
punishable under the penal
laws of other countries.
Suspicious transactions
are transactions with covered institutions,
regardless of the amounts involved, where any of
the following circumstances exist:
“1. there is no underlying legal or trade
obligation, purpose or economic justification;
“2. the client is not properly identified;
“3. the amount involved is not commensurate
with the business or financial capacity of the
client;
“4. taking into account all known circumstances,
it may be perceived that the client’s transaction
is structured in order to avoid being the subject
of reporting requirements under the Act;
“5. any circumstance relating to the transaction
which is observed to deviate from the profile of
the client and/or the client’s past transactions
with the covered institution;
“6. the transaction is in any way related to an
unlawful activity or offense under this Act that is
about to be, is being or has been committed; or
“7. any transaction that is similar or analogous to
any of the foregoing.
Record Keeping Requirements
All records of all transactions of covered
institutions shall be maintained and safely stored
for five (5) years from the dates of transactions.
With respect to closed accounts, the records on
customer identification, account files and
business correspondence shall be preserved and
safely stored for at least five (5) years from the
dates when they were closed.
LABOR CODE OF THE PHILIPPINES
A DECREE INSTITUTING A LABOR CODE THEREBY
REVISING AND CONSOLIDATING LABOR AND
SOCIAL LAWS TO AFFORD PROTECTION TO
LABOR, PROMOTE EMPLOYMENT AND HUMAN
RESOURCES DEVELOPMENT AND INSURE
INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE
Preliminary Title (General Provisions)
Name of Decree. Shall be known ad the “Labor
Code of the Philippines.”
Date of Effectivity. Shall take effect six months
after its promulgation.
Declaration of basic policy. (PURPOSE) The State
shall afford protection to labor, promote full
employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the
relations between workers and employers. The
State shall assure the rights of workers to self-
organization, collective bargaining, security of
tenure, and just and humane conditions of work.
Construction in Favor of Labor. All doubts in the
implementation and interpretation of the
provisions of this Code, including its
implementing rules and regulations, shall be
resolved in favor of labor.
Rules and Regulations. The Department of Labor
and other government agencies charged with
the administration and enforcement of this Code
or any of its parts shall promulgate the necessary
implementing rules and regulations. Such rules
and regulations shall become effective fifteen
(15) days after the announcement of their
adoption in newspapers of general circulation.
Applicability. All rights and benefits granted to
workers under this Code shall, except as may
otherwise be provided herein, apply alike to all
workers, whether agricultural or non-
agricultural. (As amended by Presidential Decree
No. 570-A, November 1, 1974)
CHAPTER 2
EMANCIPATION OF TENANTS
Statement of objectives. In as much as the old
concept of land ownership by a few has spawned
valid and legitimate grievances that gave rise to
violent conflict and social tension and the
redress of such legitimate grievances being one
of the fundamental objectives of the New
Society, it has become imperative to start
reformation with the emancipation of the tiller
of the soil from his bondage.
Transfer of lands to tenant-workers. Being a vital
part of the labor force, tenant-farmers on private
agricultural lands primarily devoted to rice and
corn under a system of share crop or lease
tenancy whether classified as landed estate or
not shall be deemed owner of a portion
constituting a family-size farm of five (5)
hectares, if not irrigated and three (3) hectares,
if irrigated.
In all cases, the landowner may retain an area of
not more than seven (7) hectares if such
landowner is cultivating such area or will now
cultivate it.
Determination of land value. For the purpose of
determining the cost of the land to be
transferred to the tenant-farmer, the value of the
land shall be equivalent to two and one-half (2-
1/2) times the average harvest of three (3)
normal crop years immediately preceding the
promulgation of Presidential Decree No. 27 on
October 21, 1972.
The total cost of the land, IIin” int’rest at the rate
of six percent (6%) per annum, shall be paid by
the tenant in fifteen (15) years of fifteen (15)
equal annual amortizations. In case of default,
the amortization due shall be paid by the
farmers’ cooperative in which the defaulting
tenant-farmer is a member, with the cooperative
having a right of recourse against him. The
government shall guarantee such amortizations
with shares of stock in government-owned and
government-controlled corporations.
Conditions of ownership. No title to the land
acquired by the tenant-farmer under Presidential
Decree No. 27 shall be actually issued to him
unless and until he has become a full-fledged
member of a duly recognized farmers’
cooperative.
Title to the land acquired pursuant to
Presidential Decree No. 27 or the Land Reform
Program of the Government shall not be
transferable except by hereditary succession or
to the Government in accordance with the
provisions of Presidential Decree No. 27, the
Code of Agrarian Reforms and other existing laws
and regulations.
Implementing agency. The Department of
Agrarian Reform shall promulgate the necessary
rules and regulations to implement the
provisions of this Chapter.
BOOK ONE – PRE-EMPLOYMENT
Statement of Objectives
a) To promote and maintain a state
of full employment through
improved manpower training,
allocation and utilization;
b) To protect every citizen desiring
to work locally or overseas by
securing for him the best
possible terms and conditions of
employment;
c) To facilitate a free choice of
available employment by
persons seeking work in
conformity with the national
interest;
d) To facilitate and regulate the
movement of workers in
conformity with the national
interest;
e) To regulate the employment of
aliens, including the
establishment of a registration
and/or work permit system;
f) To strengthen the network of
public employment offices and
rationalize the participation of
the private sector in the
recruitment and placement of
workers, locally and overseas, to
serve national development
objectives;
g) To insure careful selection of
Filipino workers for overseas
employment in order to protect
the good name of the
Philippines abroad.
Art. 13. Definitions.
a. "Worker" means any member of the labor
force, whether employed or unemployed.
b. "Recruitment and placement" refers to any act
of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring
workers, and includes referrals, contract
services, promising or advertising for
employment, locally or abroad, whether for
profit or not: Provided, That any person or entity
which, in any manner, offers or promises for a
fee, employment to two or more persons shall be
deemed engaged in recruitment and placement.
c. "Private fee-charging employment agency"
means any person or entity engaged in the
recruitment and placement of workers for a fee
which is charged, directly or indirectly, from the
workers or employers or both.
d. "License" means a document issued by the
Department of Labor authorizing a person or
entity to operate a private employment agency.
e. "Private recruitment entity" means any person
or association engaged in the recruitment and
placement of workers, locally or overseas,
without charging, directly or indirectly, any fee
from the workers or employers.
f. "Authority" means a document issued by the
Department of Labor authorizing a person or
association to engage in recruitment and
placement activities as a private recruitment
entity.
g. "Seaman" means any person employed in a
vessel engaged in maritime navigation.
h. "Overseas employment" means employment
of a worker outside the Philippines.
i. "Emigrant" means any person, worker or
otherwise, who emigrates to a foreign country by
virtue of
an immigrant visa or resident permit or its
equivalent in the country of destination
BOOK THREE
TITLE 1
Hours Work
Time sa work
Normal Hours of work
Shall not exceed 8 hours of hours a day
Health personnel in cities and municipalities
with a population of at least – 1 million in
hospitals and clinics with a bed capacity of at
least one hundred (100) shall hold regular office
hours for eight (8) hours a day, for five (5) days a
week, exclusive of time for meals.
EXCEPTION: where the exigencies of the service
require that such personnel work for six (6) days
or forty-eight (48) hours, in which case, they shall
be entitled to an additional compensation of at
least thirty percent (30%) of their regular wage
for work on the sixth day
"Health personnel" shall include resident
physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory
technicians, paramedical technicians,
psychologists, midwives, attendants and all other
hospital or clinic personnel.
Hours Worked
Shall include:
a) all the time during which an employee
is required to be on duty or to be at a
prescribed workplace.
b) all times during which an employee is
suffered or permitted to work.
Rest periods of short duration during working
hours shall be counted as hours worked. (15
Minutes)
Meal Periods
Shall be the duty of every employer to give his
employees not less than 60 minutes time-off
for their regular meals.
Night shift differential.
Every Employee shall be paid a night shift
differential of not less than 10% of his regular
wage for each hour of work performed between
10 o’clock in the evening and 6 o’clock in the
morning.
Overtime Work
Work may be performed beyond 8 hours a day.
Provided: The employee is paid for the overtime
work, additional compensation equivalent to his
regular wage plus at least 25% thereof. Work
performed beyond 8 hours on a holiday (Special
or Regular) or rest day plus 30% thereof.
Undertime not offset by overtime.
GENERAL RULE: Undertime work on any
particular day shall not be offset by overtime
work on any other day. (Strictly not allowed)
ALLOWED: Permission given to the employee to
go on leave on some other day of the week.
Shall not exempt the employer from paying
additional compensation.
Emergency Overtime Work
Any employee may be required by the employer
to perform overtime work in any of the following
cases:
a) When the country is at war or when any
other national or local emergency has
been declared by the National Assembly
or the Chief Executive
b) When it is necessary to prevent loss of
life or property (employer) or in case of
imminent danger to public safety due to
an actual or impending emergency in the
locality caused by serious accidents, fire,
flood, typhoon, earthquake, epidemic,
or other disaster or calamity;
c) When there is urgent work to be
performed on machines, installations, or
equipment, in order to avoid serious loss
or damage to the employer or some
other cause of a similar nature.
d) When the work is necessary to prevent
loss or damage to perishable goods
e) Where the completion or continuation
of the work started before the eighth
hour is necessary to prevent serious
 obstruction or prejudice to the business
or operations of the employer.
Any employee required to render overtime work
under this Article shall be paid the additional
compensation.
Right to weekly rest day
a) It shall be the duty of every employer
(Operating for profit or not) to provide
each of his employees with a rest period
of not less than twenty-four (24)
consecutive hours after every six (6)
consecutive normal workdays.
b) The employer shall determine and
schedule the weekly rest day of his
employees subject to collective
bargaining agreement and to such rules
and regulations as the Secretary of Labor
and Employment may provide. However,
the employer shall respect the
preference of employees as to their
weekly rest day when such preference is
based on religious grounds.
When employer may require work on a rest day
The employer may require his employees to
work on any day:
• In case of actual or impending
emergencies caused by serious accident,
fire, flood, typhoon, earthquake,
epidemic or other disaster or calamity to
prevent loss of life and property, or
imminent danger to public safety.
• In cases of urgent work to be performed
on the machinery, equipment, or
installation, to avoid serious loss which
the employer would otherwise suffer.
• In the event of abnormal pressure of
work due to special circumstances,
where the employer cannot ordinarily be
expected to resort to other measures.
• To prevent loss or damage to perishable
goods.
• Where the nature of the work requires
continuous operations, the stoppage of
work may result in irreparable injury or
loss to the employer.
• Under other circumstances analogous or
similar to the foregoing as determined
by the Secretary of Labor and
Employment.
Compensation for rest day, Sunday or holiday
work:
Where an employee is made or permitted to
work on his scheduled rest day:
a) He shall be paid an additional
compensation of at least thirty percent
(30%) of his regular wage.
b) An employee shall be entitled to such
additional compensation for work
performed on Sunday only when it is his
established rest day.
When the nature of the work of the employee is
such that he has no regular workdays and no
regular rest days can be scheduled:
a) He shall be paid an additional
compensation of at least thirty percent.
(30%) of his regular wage for work
performed on Sundays and holidays.
Work performed on any special holiday shall be
paid an additional compensation of at least thirty
percent (30%) of the regular wage of the
employee:
a) Where such holiday work falls on the
employee’s scheduled rest day, he shall
be entitled to an additional
compensation of at least fifty per cent
(50%) of his regular wage.
Where the collective bargaining agreement or
other applicable employment contract stipulates
the payment of a higher premium pay than that
prescribed under this Article:
a) the employer shall pay such a higher
rate.
Holidays, service incentives leaves and service
charges.
Right to holiday pay
a) Every worker shall be paid his regular
daily wage during regular holidays,
except in retail and service
establishments regularly employing less
than ten (10) workers.
b) The employer may require an employee
to work on any holiday, but such
employee shall be paid a compensation
equivalent to twice his regular rate
c) As used in this Article, "holiday"
includes New Year’s Day, Maundy
Thursday, Good Friday, the ninth of April,
the first of May, the twelfth of June, the
fourth of July, the thirtieth of November,
the twenty-fifth and thirtieth of
December and the day designated by law
for holding a general election.
Right to service incentive leave
a) Every employee who has rendered at
least one year of service shall be entitled
to a yearly service incentive leave of five
days with pay.
 b) This provision shall not apply to those
who are already enjoying the benefit
herein provided, those enjoying vacation
leave with pay of at least five days and
those employed in establishments
regularly employing less than ten
employees or in establishments
exempted from granting this benefit by
the Secretary of Labor and Employment
after considering the viability or financial
condition of such establishment.
c) The grant of benefit in excess of that
provided herein shall not be made a
subject of arbitration or any court or
administrative action.
Service Charges
All service charges collected by hotels,
restaurants and similar establishments shall be
distributed at the rate of eighty-five percent
(85%) for all covered employees and fifteen
percent (15%) for management. The share of the
employees shall be equally distributed among
them. In case the service charge is abolished, the
share of the covered employees shall be
considered integrated in their wages.
Maternity Leave
Pregnant female employees, whether single or
married, are extended leave credits with full pay
to be used in every instance of pregnancy,
miscarriage or emergency termination of
pregnancy, regardless of frequency. That for
cases of miscarriage or emergency termination
of pregnancy, 60 days maternity leave with full
pay.
Additional maternity leave of 30 days (WITHOUT
PAY) can be availed at the option of the female
worker.
PROVIDED: That the employer shall be given due
notice in writing at least 45 days before the end
of her maternity leave
Benefits:
Consist of 105 days maternity leave with full pay
and an option to extend for an additional 30 days
without pay.
Qualified Solo Parent:
The female is granted an additional 15 day
maternity leave with full pay
Paternity leave
Meaning: Are leave credits extended to married
male employees
Purpose: Of enabling him to effectively lend
support to his wife in her period of recovery
and/or in the nursing of the newly-bord child
Benefits:
Consists of 7 days of leave credits with full pay
DOLE, through issuance, INTERPRETATION:
As 7 CALENDAR DAYS and not WORKING DAYS
The benefit applies to the 1st 4 deliveries of the
male employee’s legal wife with whom he is
cohabiting.
Cohabiting – refers to the obligation of the
husband and wife to live together unless there is
a justifying circumstance for them living
separately.
SOLO PARENT LEAVE:
Meaning: are leave credits extended to covered
employees who are solo parents, and who may
want to use them whenever they take a leave
from work to perform parental duties., so that
they remain paid during such absence from
work.
Considered:
1. Woman who gives birth as a result of
rape and other crimes against chastity
even w/out final conviction of offender
2. Parent left solo or alone w/ the
responsibility of parenthood due to the
ff. circumstances:
a. Due to death of spouse
b. The spouse is detained or is
serving sentence for a criminal
conviction for at least 1 year.
c. Physical and/or mental
incapacity of spouse as certified
by a public medical practitioner
d. Legal separation or de facto
separation from spouse for at
least one (1) year, as long as
he/she is entrusted with the
custody of the children.
e. Declaration of 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.
3. Unmarried mother/father
4. Any other person who solely provides
parental care and support to a child or
children.
5. Any family member who assumes the
responsibility of head of family as a
result of the death, abandonment,
disappearance or prolonged absence of
the parents or solo parent.
Termination of benefit
If there is a change in the marriage status
Benefit: Consist of 7 working days of leave
credits with full pay.
SPECIAL LEAVE FOR WOMEN
The special leave for women is given to covered
female employees who undergone surgery
due to gynecological disorder.
The benefit consists of 2 months of leave
credits w/ full pay. The employee is required to
submit a medical certificate verifying her surgery.
Women employee rendered continuous
aggregate employment service of at least 6
months for the last 12 month shall be entitled to
special leave.
SPECIAL LEAVE FOR VAWC
(“Anti-Violence Against Women and Their
Children Act of 2004”)
VAWC leave benefits are extended to covered
female employees who have been the victim of
violence under R.A. 9262, and who may want to
use them whenever they take a leave from work,
so that they remain paid during such absence
from work.
The benefit consists of 10 working days of leave
credits with full pay.
Female employees who have been subjected to
violence, including their children, by their
romantic partners, whether male or female, are
extended with full pay to be used at her own
discretion.
ADDITIONAL NOTES:
Express Pay (Pakyaw) Salary vary by result.
Compressed Work week (not exceed 12 hours)
Ang regular holiday naa sa labor code
Special holiday gibuhat sa president of the ph
Title 2
Wages Of Book Three
Applicability of this title
This Title shall not apply to farm tenancy or
leasehold, domestic service and persons working
in their respective homes in needlework or in any
cottage industry duly registered in accordance
with law.
Minimum Wage Rates
Payment of wages
Forms of payment - No employer shall pay the
wages of an employee by means of promissory
notes, vouchers, coupons, tokens, tickets, chits,
or any object other than legal tender, even when
expressly requested by the employee.
Payment of wages by check or money order
shall be allowed when such manner of payment
is customary on the date of effectivity of this
Code or is necessary because of special
circumstances as specified in appropriate
regulations to be issued by the Secretary of Labor
and Employment or as stipulated in a collective
bargaining agreement.
Time of payment - Wages shall be paid at least
once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. If on
account of force majeure or circumstances
beyond the employer’s control, payment of
wages on or within the time herein provided
cannot be made, the employer shall pay the
wages immediately after such force majeure or
circumstances have ceased. No employer shall
make payment with less frequency than once a
month.
The payment of wages of employees 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 collective
bargaining agreement or arbitration award:
1. That payments are made at intervals not
exceeding sixteen (16) days, in proportion to the
amount of work completed.
2. That final settlement is made upon
completion of the work.
Place of Payment - shall be made at or near the
place of undertaking.
Except: as otherwise provided by such
regulations as the Secretary of Labor and
Employment may prescribe under conditions to
ensure greater protection of wages.
Direct Payment of Wages
Wages shall be paid directly to the workers to
whom they are due, except:
a. In cases of force majeure rendering such
payment impossible or under other special
circumstances to be determined by the Secretary
of Labor and Employment in appropriate
regulations, in which case, the worker may be
paid through another person under written
authority given by the worker for the purpose; or
b. Where the worker has died, in which case, the
employer may pay the wages of the deceased
worker to the heirs of the latter without the
necessity of intestate proceedings. The
claimants, if they are all of age, shall execute an
affidavit attesting to their relationship to the
deceased and the fact that they are his heirs, to
the exclusion of all other persons. If any of the
heirs is a minor, the affidavit shall be executed on
his behalf by his natural guardian or next-of-kin.
The affidavit shall be presented to the employer
who shall make payment through the Secretary
of Labor and Employment or his representative.
The representative of the Secretary of Labor and
Employment shall act as referee in dividing the
amount paid among the heirs. The payment of
wages under this Article shall absolve the
employer of any further liability with respect to
the amount paid.
Contractor or subcontractor
Whenever an employer enters into a contract
with another person for the performance of the
former’s work, the employees of the contractor
and of the latter’s subcontractor, if any, shall be
paid in accordance with the provisions of this
Code.
In the event that the contractor or subcontractor
fails to pay the wages of his employees in
accordance with this Code, the employer shall be
jointly and severally liable with his contractor or
subcontractor to such employees to the extent of
the work performed under the contract, in the
same manner and extent that he is liable to
employees directly employed by him.
The Secretary of Labor and Employment may, by
appropriate regulations, restrict or prohibit the
contracting out of labor to protect the rights of
workers established under this Code. In so
prohibiting or restricting, he may make
appropriate distinctions between labor-only
contracting and job contracting as well as
differentiations within these types of contracting
and determine who among the parties involved
shall be considered the employer for purposes of
this Code, to prevent any violation or
circumvention of any provision of this Code.
There is "labor-only" contracting where the
person supplying workers to an employer does
not have substantial capital or investment in the
form of tools, equipment, machineries, work
premises, among others, and the workers
recruited and placed by such person are
performing activities which are directly related
to the principal business of such employer. In
such cases, the person or intermediary shall be
considered merely as an agent of the employer
who shall be responsible to the workers in the
same manner and extent as if the latter were
directly employed by him.
Indirect Employer
The provisions of the immediately preceding
article shall likewise apply to any person,
partnership, association or corporation which,
not being an employer, contracts with an
independent contractor for the performance of
any work, task, job or project.
Posting of bond
An employer or indirect employer may require
the contractor or subcontractor to furnish a bond
equal to the cost of labor under contract, on
condition that the bond will answer for the
wages due the employees should the contractor
or subcontractor, as the case may be, fail to pay
the same.
Solidary Liability
The indirect employer shall be held responsible
by his contractor or subcontractor for any
violation of any provision of this Code. For the
purpose of determining the extent of their civil
liability under this Chapter, they shall be
considered as direct employers.
Worker Preference in case of bankruptcy
His workers shall enjoy first preference as regards
their wages and other monetary claims, any
provisions of law to the contrary
notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before
claims of the government and other creditors
may be paid.
Prohibitions regarding wages
Non-interference in disposal of wages
No employer shall limit or otherwise interfere
with the freedom of any employee to dispose of
his wages.
He shall not in any manner force, compel, or
oblige his employees to purchase merchandise,
commodities or other property from any other
person, or otherwise make use of any store or
services of such employer or any other person.
Wages Deduction
No employer, in his own behalf or in behalf of
any person, shall make any deduction from the
wages of his employees, except:
a. In cases where the worker is insured with his
consent by the employer, and the deduction is
to recompense the employer for the amount
paid by him as premium on the insurance.
b. 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; and
c. In cases where the employer is authorized by
law or regulations issued by the Secretary of
Labor and Employment.
Deposits for loss or damage
No employer shall 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.
Except: when the employer is engaged in such
trades, occupations or business where the
practice of making deductions or requiring
deposits is a recognized one or is necessary or
desirable as determined by the Secretary of
Labor and Employment in appropriate rules and
regulations.
Limitations
No deduction from the deposits of an employee
for the actual amount of the loss or damage shall
be made unless the employee has been heard
thereon, and his responsibility has been clearly.
Withholding of wages and kickback prohibited
It shall be unlawful for any person, directly or
indirectly, to withhold any amount from the
wages of a worker or induce him to give up any
part of his wages by force, stealth, intimidation,
threat or by any other means whatsoever
without the worker’s consent.
Deduction to ensure employment.
It shall be unlawful to make any deduction from
the wages of any employee for the benefit of
the employer or his representative or
intermediary as consideration of a promise of
employment or retention in employment.
Retaliatory Measures
It shall be unlawful for an employer to refuse to
pay or reduce the wages and benefits, discharge
or in any manner discriminate against any
employee who has filed any complaint or
instituted any proceeding under this Title or has
testified or is about to testify in such
proceedings.
False Reporting
It shall be unlawful for any person to make any
statement, report, or record filed or kept
pursuant to the provisions of this Code knowing
such statement, report or record to be false in
any material respect.
Title 1
Termination of Employment
Coverage
This rule shall apply to all establishments and
undertakings, whether operated for profit or not,
including educational, medical, charitable and
religious institutions and organizations, in cases
of regular employment with the exception of the
Government and its political subdivision
including government-owned or controlled
corporations.
Right to Security of Tenure
In cases of regular employment, the employer
shall not terminate the services of an employee
except for a just cause or when authorized by this
Title. 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 back wages, 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.
Types of Employment
Regular Employment
- the employee has been engaged to perform
activities which are usually necessary or
desirable in the usual business or trade of the
employer.
Except:
where the employment has been fixed for a
specific project or undertaking the completion or
termination of which has been determined at the
time of the engagement of the employee or
where the work or service to be performed is
seasonal in nature and the employment is for the
duration of the season.
Casual Employment
• if it is not covered by the preceding
paragraph
Provided:
 • That any employee who has rendered at
least one year of service, whether such
service is continuous or broken, shall be
considered a regular employee with
respect to the activity in which he is
employed, and his employment shall
continue while such activity exists.
Probationary Employment
Probationary employment shall not
exceed six (6) months from the date the
employee started working.
Unless: it is covered by an
apprenticeship agreement stipulating a
longer period. The services of an
employee who has been engaged on a
probationary basis may be terminated
for a just cause or when he fails to qualify
as a regular employee in accordance
with reasonable standards made known
by the employer to the employee at the
time of his engagement.
An employee who is allowed to work
after a probationary period shall be
considered a regular employee.
Termination by employment
Termination by employer
An employer may terminate an
employment for any of the following
causes: (JUST CAUSES)
1. Serious misconduct or willful
disobedience by the employee of the
lawful orders of his employer or
representative in connection with his
work;
2. Gross and habitual neglect by the
employee of his duties;
3. Fraud or willful breach by the employee
of the trust reposed in him by his
employer or duly authorized
representative;
4. Commission of a crime or offense by
the employee against the person of his
employer or any immediate member of
his family or his duly authorized
representatives; and
5. Other causes analogous to the
foregoing.
1. Closure of establishment and reduction
of personnel
The employer may also terminate the
employment of any employee due to the
installation of labor-saving devices, redundancy,
retrenchment to prevent losses or the closing or
cessation of operation of the establishment or
undertaking.
Unless: the closing is for the purpose of
circumventing the provisions of this Title, by
serving a written notice to the workers and the
Ministry of Labor and Employment at least one
(1) month before the intended date thereof. In
case of termination due to the installation of
labor-saving devices or redundancy, the worker
affected thereby shall be entitled to a separation
pay equivalent to at least his one (1) month pay
or to at least one (1) month pay for every year of
service, whichever is higher. In case of
retrenchment to prevent losses and in cases of
closures or cessation of operations of
establishment or undertaking not due to serious
business losses or financial reverses, the
separation pay shall be equivalent to one (1)
month pay or at least one-half (1/2) month pay
for every year of service, whichever is higher. A
fraction of at least six (6) months shall be
considered one (1) whole year.
1. Disease as grounds for termination
An employer may terminate the services of an
employee who has been found to be suffering
from any disease and whose continued
employment is prohibited by law or is prejudicial
to his health as well as to the health of his co-
employees.
Provided:
That he is paid separation pay equivalent to at
least one (1) month salary or to one-half (1/2)
month salary for every year of service, whichever
is greater, a fraction of at least six (6) months
being considered as one (1) whole year.
Termination by Employee
An employee may terminate without just cause
the employee-employer relationship by serving a
written notice on the employer at least one (1)
month in advance. The employer upon whom no
such notice was served may hold the employee
liable for damages.
An employee may put an end to the relationship
without serving any notice on the employer for
any of the following just causes:
1. Serious insult by the employer or his
representative on the honor and person
of the employee.
2. Inhuman and unbearable treatment
accorded the employee by the employer
or his representative.
3. Commission of a crime or offense by the
employer or his representative against
the person of the employee or any of the
immediate members of his family; and
4. Other causes analogous to any of the
foregoing.

1. When employment not deemed
terminated
The bona-fide suspension of the operation of a
business or undertaking for a period not
exceeding six (6) months, or the fulfillment by
the employee of a military or civic duty shall not
terminate employment. In all such cases, the
employer shall reinstate the employee to his
former position without loss of seniority rights if
he indicates his desire to resume his work not
later than one (1) month from the resumption of
operations of his employer or from his relief from
the military or civic duty.
You can be terminated by providing:
• Cause
• Proper procedure
JUST CAUSES
• Acts attributable to employee’s own
fault or negligence.
• An act or omission performed by an
employee usually is malicious in nature.
An employer may dismiss an employee on the ff.
JUST CAUSES:
1) Serious Misconduct
REQUISITES:
a) There must be misconduct.
b) Misconduct must be of such
grave and aggravated character.
c) Misconduct must relate to the
performance of the employee’s
duties.
d) Showing that the employee
becomes unfit to continue
working for the employer.
2) Willful Disobedience
REQUISITES:
a) There must be disobedience or
insubordination.
b) Disobedience or subordination
must be willful or intentional.
c) Order violated must be
reasonable, lawful and made
known to the employee.
d) Order must pertain to the duties
which he has been engaged in to
discharge.
3) Gross and Habitual neglect of duty
REQUISITES:
a) Neglect of duties
b) Gross and Habitual in character
4) Fraud or breach of trust
REQUISITES:
a) There must be an act, omission
or concealment.
b) Act, omission or concealment
involves a breach of legal duty,
trust or confidence justly
reposed.
c) It must be committed against
the employer or his/her
representative.
d) Must be in connection with the
employees’ work.
5) Loss of confidence
REQUISITES:
a) There must be an act, omission,
or concealment.
b) Act. Omission, or concealment
justifies the loss of trust and
confidence of the employer to
the employee.
c) The employee concerned must
hold a position of trust and
confidence.
d) Loss of trust and confidence
should not be simulated.
e) It should not be used as a
subterfuge for causes which are
improper, illegal, or unjustified.
f) It must be genuine and not a
mere afterthought to justify an
early action taken in bad faith.
6) Commission of a crime or offense
against the employer, his family or
representative
REQUISITES:
a) There must be an act or
omission punishable/prohibited
by law.
b) The act or omission was
committed by the employee
against the person of the
employer, any immediate of
his/her duly authorized
representative.
7) Analogous Causes
REQUISITES:
a) There must be an act or
omission similar to those
specified just causes.
b) The act or omission must be
voluntary and/or willful on the
part of the employees.
c) No act or omission shall be
considered as an analogous
case, unless expressly specified
in the company rules and
regulations and policies.
8) Other similar causes.
AUTHORIZED CAUSES
• Causes that are initiated by an employer.
Unlawful grounds for termination which in
general do not arise from fault or negligence of
the employee:
1) Installation of labor-saving devices
Meaning: Contemplates the installation of
machinery to affect economy and efficiency in
the method of production.
2) Redundancy
Meaning: The services of the employee are in
excess of what is reasonably demanded by the
actual requirements of the enterprise.
(To many employees)
3) Retrenchment to prevent losses.
Meaning: Cut loss of employees
4) Closure and cessation of business
5) Disease/Illness

Termination and Last pay

An employee shall be entitled to
termination pay equivalent to at least
one month salary for every year of
service, a fraction of at least six months
being considered as one whole year, in
case of termination of his employment
due to the installation of labor-saving
devices or redundancy.
The termination pay shall in no case be
less than the employee’s one month pay.

Termination of pay due to retrenchment shall be

entitled to termination pay equivalent to at least
½ month pay for every year for every year of
service, a fraction of at least six months being
considered as one whole year.

Certificate of Employment

A dismissed worker shall be entitled to

receive, or request, a certificate from the
employer specifying the dates of his
engagement and termination of his
employment and the type or types of
work in which he is employed.

ISSUANCE:
After the termination of employment upon
request by an employee

The employer requires the employee to issue

COE within 3 days from the time of request by
the employee.

Ex-employees may request COE from their

employer.
Provided: not issued during their employment or
after the exit of their company.